Paragon 28, Inc. (NYSE: FNA) (“PARAGON”), a leading medical device company exclusively focused on the foot and ankle orthopedic market, today reported financials showing a stellar performance in the third quarter of 2022. The company reported a 20% year-over-year increase in net revenue, with total sales reaching $51.2 million.
The company also reported a record income from operations of $11.9 million, a remarkable 130% increase compared to the same period last year. This growth was driven by strong sales of PARAGON’s flagship product, the Paragon 28 Orthopedic System, which saw a 20% increase in sales this quarter compared to the same quarter last year.
Paragon 28 also reported strong growth in its international business, with international sales up 41% compared to the same period last year. The company’s international presence has been bolstered by new distribution agreements in Europe and Asia, as well as increased demand in these markets.
The company also reported a healthy balance sheet, with total assets and liabilities both increasing significantly from the same period last year. In particular, the company reported total liabilities of $24.4 million, up 37% compared to the same period last year.
Looking to the future, PARAGON is forecasting continued growth in the fourth quarter of 2022 and beyond. The company expects fourth quarter revenue to reach $51.2 million, with earnings from operations to reach $13.2 million. The company also noted that it expects to have a strong balance sheet in the fourth quarter of 2022, with total assets of $42.3 million, and total liabilities of $25.1 million.
In addition, Paragon 28 announced that it has raised $50 million in a public offering of shares. The company has granted the underwriters a 30-day option to purchase up to an additional 562,500 and 412,500 shares. The offering is expected to close on January 30, 2023.
Overall, Paragon 28’s earnings performance has been outstanding. The company has seen strong growth in both revenue and earnings, and has a healthy balance sheet that is expected to remain strong going into the fourth quarter of 2022. Investors should keep an eye on Paragon 28’s performance in the fourth quarter, as it could be an indicator of the company’s future performance.
