(Sonoranweeklyreview.com)–RTI Surgical (NASDAQ:RTIX) dissident shareholder Krensavage Asset Management Wednesday urged shareholders to vote for the dissident’s four nominees to the company’s board at the pending Thursday annual meeting. Krensavage, a 6.0% shareholder in RTI, said since it published a press release on May 18 noting that shareholder advisory service Glass, Lewis supports Krensavage’s call for change, RTI has again rejected a Krensavage settlement offer. Krensavage said RTI is instead is rehashing an 18-month-old plan to grow the company’s annualized revenue to $500 million by an unspecified deadline.
Krensavage said that in Q1 2016 RTI’s revenue was down 1% YOY, and that RTI expects H1 2016 revenue to drop 4.1% YOY, as earnings decline more than 40%. Krensavage repeated its objection to RTI’s use of “adjusted EBITDA” to measure its performance. The metric ignores capital spending of $36.9 million between 2013 and 2015, compared with operating cash flow of $11.4 million. Glass, Lewis issued a report that stated in part, “Having thoroughly evaluated Krensavage’s arguments, we believe the dissident makes a reasonable case that RTI has significantly underperformed on a total shareholder return basis for a prolonged period, that management has failed to successfully execute a winning strategy and poorly allocated capital, and that the board has failed to properly oversee the company.”
The stock increased 4.29% or $0.16 during the last trading session, hitting $3.89. RTI Surgical Inc (NASDAQ:RTIX) has declined 23.27% since October 19, 2015 and is downtrending. It has underperformed by 25.36% the S&P500.
RTI Surgical, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes orthopedic and other surgical implants for use in various surgical procedures worldwide. The company provides natural tissue implants, as well as metal and synthetic implants for the treatment of spinal and other orthopedic disorders. It processes donated human musculoskeletal and other tissues, including bone, cartilage, tendons, ligaments, fascia lata, pericardium, sclera, cornea, and dermal tissues, as well as bovine and porcine animal tissues to produce allograft and xenograft implants by using its proprietary BIOCLEANSE, TUTOPLAST, and CANCELLE SP sterilization processes.
The company´s implants are used in the fields of spine, sports medicine, ortho fixation, bone graft substitutes and general orthopedic, surgical specialties, and dental. RTI Surgical, Inc. markets its products through its direct distribution force, as well as through a network of independent distributors to hospitals and surgeons. The company was formerly known as RTI Biologics, Inc. and changed its name to RTI Surgical, Inc. in July 2013. RTI Surgical, Inc. was founded in 1997 and is headquartered in Alachua, Florida.
Source: Sonoranweeklyreview.com
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