Paragon 28 Announces CFO Transition, Provides Preliminary Unaudited Net Revenue for First Quarter 2024, and Reaffirms Net Revenue Guidance for Fiscal Year 2024
April 04 2024 - 8:01AM
Business Wire
- Stephen Deitsch resigns from his position as Chief Financial
Officer to pursue another opportunity; Kristina Wright appointed
interim Chief Financial Officer
- Preliminary, unaudited first quarter 2024 net revenue expected
to be in a range of $60.8 to $61.1 million, representing 16.8% to
17.4% reported growth, compared to the prior year period
- Reaffirms Net Revenue Guidance for Fiscal Year 2024 of $249 to
$259 million, representing 15.1% and 19.7% reported growth compared
to 2023
- Paragon 28 to Report First Quarter 2024 Financial Results on
May 8, 2024
Paragon 28, Inc. (NYSE: FNA), (“Paragon 28” or “the Company”), a
leading medical device company exclusively focused on the foot and
ankle orthopedic market, today announced that Stephen Deitsch,
Chief Financial Officer (“CFO”), has notified the Company of his
intent to pursue an opportunity with OrganOx Limited, a commercial
stage UK-based medical device company focused on therapeutic
applications of isolated organ perfusion. Mr. Deitsch will depart
from the Company on April 5, 2024. The Company has formed a
sub-committee of its Board of Directors and has engaged an
executive search firm to assist in identifying a permanent
successor.
The Company concurrently announced the appointment of Kristina
Wright as Interim CFO, effective April 3, 2024. Ms. Wright has been
a member of the Board of Directors since 2021 and currently serves
as Chair of the Company’s Audit Committee and as a member of the
Nominating and Corporate Governance Committee of Paragon 28, Inc.
Ms. Wright brings deep medical device experience to the interim CFO
role. Upon assuming the Interim CFO position, Ms. Wright will step
down temporarily from her roles as Chair of the Audit Committee and
as a member of the Nominating and Corporate Governance Committee.
Thomas Schnettler, lead independent director for Paragon 28, will
assume the role of interim Chair of the Audit Committee.
“I would like to thank Steve for his many contributions to our
organization, including his leadership during the Company’s initial
public offering. He has been a trusted partner since joining the
company in 2020, helping to steer our strong growth through a
transformative time for Paragon 28. Further, Steve has been
instrumental in building our operational capabilities and
fortifying our balance sheet to position the Company for
sustainable long-term growth. We wish him continued success with
his new venture. We are also very fortunate to have Krissy in our
organization. She is an experienced financial executive whose
knowledge of the Company will enable her to successfully lead our
finance team through this interim period,” said Albert DaCosta,
Chief Executive Officer.
Mr. Deitsch said, “It has been a privilege to be part of Paragon
28 and to work with such a passionate team to advance our mission
to improve foot and ankle outcomes. I want to thank Albert, the
Board of Directors and the leadership team for my time at Paragon
28. I am incredibly proud of our accomplishments over the past
several years to scale the business and I look forward to seeing
the Company continue its remarkable mission.”
Preliminary Unaudited Net Revenue for First Quarter
2024
Preliminary unaudited net revenue for the first quarter of 2024
is expected to be in a range of $60.8 to $61.1 million,
representing reported growth of approximately 16.8% to 17.4%
compared to the first quarter of 2023. Foreign currency impact on
first quarter 2024 reported net revenue growth is not expected to
be immaterial.
The estimated unaudited financial results for the first quarter
of 2024 presented above are preliminary and are subject to the
completion of our quarter-end closing procedures and further
financial review. Our independent registered public accounting firm
has not audited, reviewed, compiled or performed any procedures
with respect to this preliminary financial information. Our actual
results may differ from these estimates as a result of the
completion of our quarter-end closing procedures, review
adjustments and other developments that may arise between now and
the time our financial results for the first quarter are
finalized.
Paragon 28 Reaffirms Net Revenue Guidance for Fiscal Year
2024
The Company reaffirms its prior 2024 net revenue guidance and
continues to expect 2024 net revenue to be $249 million to $259
million, representing 15.1% and 19.7% reported growth compared to
2023. The Company’s 2024 net revenue guidance assumes foreign
currency translation rates remain consistent with current foreign
currency translation rates, and further, is based on a number of
assumptions that are subject to change, many of which are outside
the Company’s control. If actual results vary from these
assumptions, the Company’s expectations may change. There can be no
assurance that the Company will achieve these results.
First Quarter 2024 Webcast and Conference Call
Information
Paragon 28 will report first quarter 2024 financial results
after market close on Wednesday, May 8, 2024. The Company’s
management team will webcast a corresponding conference call at
2:30 p.m. Mountain Time / 4:30 p.m. Eastern Time. Investors
interested in listening to the conference call may do so by dialing
(833-470-1428) for domestic callers or (404-975-4839) for
international callers, using conference ID: 483904. Live audio of
the webcast will be available on the “Investors” section of the
Company’s website at: ir.paragon28.com. The webcast will be
archived and available for replay for at least 90 days after the
event.
About Paragon 28, Inc.
Based in Englewood, CO., Paragon 28 is a leading medical device
company exclusively focused on the foot and ankle orthopedic market
and is dedicated to improving patient lives. From the onset,
Paragon 28® has provided innovative orthopedic solutions,
procedural approaches and instrumentation that cover a wide range
of foot and ankle ailments including fracture fixation, forefoot,
ankle, progressive collapsing foot deformity (PCFD) or flatfoot,
Charcot foot and orthobiologics. The Company designs products with
both the patient and surgeon in mind, with the goal of improving
outcomes, reducing ailment recurrence and complication rates, and
making the procedures simpler, consistent, and reproducible.
Forward Looking Statements
Except for the historical information contained herein, the
matters set forth in this press release are forward-looking
statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, including,
but not limited to: Paragon 28’s potential to shape a better future
for foot and ankle patients, its estimated net revenue for the
first quarter 2024 and its estimated net revenue for full year
2024. You are cautioned not to place undue reliance on these
forward-looking statements. Forward-looking statements are only
predictions based on our current expectations, estimates, and
assumptions, valid only as of the date they are made, and subject
to risks and uncertainties, some of which we are not currently
aware. Forward‐looking statements should not be read as a guarantee
of future performance or results and may not necessarily be
accurate indications of the times at, or by, which such performance
or results will be achieved. These forward‐looking statements are
based on Paragon 28’s current expectations and inherently involve
significant risks and uncertainties. Actual results and the timing
of events could differ materially from those anticipated in such
forward‐looking statements as a result of these risks and
uncertainties. For a further description of the risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to Paragon 28’s business in general, see Paragon 28’s
current and future reports filed with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the fiscal
year ended December 31, 2023, as updated periodically with its
other filings with the SEC. These forward-looking statements are
made as of the date of this press release, and Paragon 28 assumes
no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those
projected in the forward-looking statements, except as required by
law. Paragon 28’s unaudited estimated net revenue for the first
quarter of 2024 is not necessarily indicative of our operating
results for any future periods.
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Investor Contact Matthew Brinckman Senior Vice President,
Strategy and Investor Relations Phone: (720) 912-1332
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