Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global
medical technology company focused on surgical solutions for the
treatment of spinal disorders, today reported financial and
operating results for the first quarter ended March 31, 2023. The
Company also introduced financial guidance for the full year 2023.
“Highlighted by solid revenue growth and the
Coflex® acquisition, we are off to a strong start in 2023,” said
Sean Browne, President & CEO of Xtant Medical. “Guided by our
strategic growth pillars, we are generating robust demand across
our biologics and fixation products while expanding our total
addressable orthobiologic market opportunity to drive future
growth. Moving forward, we will focus on continuing to build on
this positive momentum as our business achieves scale and
fulfilling our mission of honoring the gift of donation.”
First Quarter 2023 Financial
Results
First quarter 2023 revenue grew 38%, including
organic growth of 29% and a 9% contribution from the acquisition of
the Coflex and Cofix product lines, to $17.9 million, compared to
$13.0 million for the same period in 2022. The increase in revenue
was attributed primarily to greater independent agent sales and
sales from the recently acquired Coflex and Cofix product
lines.
Gross margin for the first quarter of 2023 was
58.7%, compared to 58.3% for the same period in 2022. The increase
was primarily attributable to the contribution of Coflex and Cofix
products, partially offset by higher production costs.
Operating expenses for the first quarter of 2023
totaled $12.1 million, compared to $9.4 million for the first
quarter of 2022. The increase was primarily due to additional
independent agent sales commission and employee compensation
expenses, partially offset by costs related to enterprise resource
planning system upgrades incurred last year.
First quarter 2023 net loss totaled $2.1
million, or $0.02 per share, compared to the first quarter 2022 net
loss of $2.2 million, or $0.03 per share.
Non-GAAP Adjusted EBITDA for the first quarter
of 2023 totaled a loss of $0.3 million, compared to a loss of $0.9
million for the same period in 2022. The Company defines Adjusted
EBITDA as net income/loss from operations before depreciation,
amortization and interest expense and provision for income taxes,
and as further adjusted to add back in or exclude, as applicable,
stock-based compensation and acquisition-related expenses. A
calculation and reconciliation of Adjusted EBITDA to net loss can
be found in the attached financial tables.
2023 Financial Guidance
Xtant Medical expects full year 2023 revenue of
$73 million to $75 million, representing annual growth of
approximately 26% to 29% compared to full year 2022.
Conference Call
Xtant Medical will host a webcast and conference
call to discuss the first quarter 2023 financial results on
Thursday, May 4, 2023 at 9:00 AM ET. To access the webcast, Click
Here. To access the conference call, dial 877-407-6184 within the
U.S. or 201-389-0877 outside the U.S. A replay of the call will be
available at www.xtantmedical.com, under “Investor Info.”
About Xtant Medical Holdings,
Inc.
Xtant Medical Holdings, Inc.
(www.xtantmedical.com) is a global medical technology company
focused on the design, development, and commercialization of a
comprehensive portfolio of orthobiologics and spinal implant
systems to facilitate spinal fusion in complex spine, deformity and
degenerative procedures. Xtant people are dedicated and talented,
operating with the highest integrity to serve our customers.
The symbols ™ and ® denote trademarks and
registered trademarks of Xtant Medical Holdings, Inc. or its
affiliates, registered as indicated in the United States, and in
other countries. All other trademarks and trade names referred to
in this release are the property of their respective owners.
Non-GAAP Financial Measures
To supplement the Company’s consolidated
financial statements prepared in accordance with U.S. generally
accepted accounting principles (GAAP), the Company uses certain
non-GAAP financial measures in this release, including Adjusted
EBITDA and organic revenue growth. Reconciliations of the non-GAAP
financial measures used in this release to the most comparable GAAP
measures for the respective periods can be found in tables later in
this release. The Company’s management believes that the
presentation of these measures provides useful information to
investors. These measures may assist investors in evaluating the
Company’s operations, period over period. Management uses the
non-GAAP measures in this release internally for evaluation of the
performance of the business, including the allocation of resources.
Investors should consider non-GAAP financial measures only as a
supplement to, not as a substitute for or as superior to, measures
of financial performance prepared in accordance with GAAP.
Cautionary Statement Regarding
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include statements
that are predictive in nature, that depend upon or refer to future
events or conditions, or that include words such as “intends,”
‘‘expects,’’ ‘‘anticipates,’’ ‘‘plans,’’ ‘‘believes,’’
‘‘estimates,’’ “continue,” “future,” ‘‘will,’’ “potential,” “going
forward,” similar expressions or the negative thereof, and the use
of future dates. Forward-looking statements in this release include
the Company’s financial guidance for 2023 and belief that it will
continue to generate robust demand for its biologics products and
improve its operating efficiencies by increasing its production
capacity and is well-positioned to sustain its momentum during the
rest of 2023. The Company cautions that its forward-looking
statements by their nature involve risks and uncertainties, and
actual results may differ materially depending on a variety of
important factors, including, among others: the Company’s future
operating results and financial performance; its ability to
increase or maintain revenue; risks associated with its recent
acquisition of the Coflex product line; possible future impairment
charges to long-lived assets and goodwill and write-downs of excess
inventory if revenues decrease; the ability to remain competitive;
the ability to innovate, develop and introduce new products; the
ability to engage and retain new and existing independent
distributors and agents and qualified personnel and the Company’s
dependence on key independent agents for a significant portion of
its revenue; the effect of COVID-19, labor and hospital staffing
shortages on the Company’s business, operating results and
financial condition, especially when they affect key markets; the
Company’s ability to implement successfully its future growth
initiatives and risks associated therewith; the effect of
inflation, increased interest rates and other recessionary factors
and supply chain disruptions; the effect of product sales mix
changes on the Company’s financial results; government and
third-party coverage and reimbursement for Company products; the
ability to obtain and maintain regulatory approvals and comply with
government regulations; the effect of product liability claims and
other litigation to which the Company may be subject; the effect of
product recalls and defects; the ability to obtain and protect
Company intellectual property and proprietary rights and operate
without infringing the rights of others; the ability to service
Company debt, comply with its debt covenants and access additional
indebtedness; the ability to obtain additional financing on
favorable terms or at all; and other factors. Additional risk
factors are contained in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2022 filed with the Securities and
Exchange Commission (SEC) on March 8, 2023 and subsequent SEC
filings by the Company, including without limitation its most
recent Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2023 anticipated to be filed with the SEC. Investors are
encouraged to read the Company’s filings with the SEC, available at
www.sec.gov, for a discussion of these and other risks and
uncertainties. The Company undertakes no obligation to release
publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events, except as required by law. All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
this cautionary statement.
Investor Relations Contact
David CareyLazar FINNPh: 212-867-1762Email:
david.carey@finnpartners.com
XTANT MEDICAL HOLDINGS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands, except number of shares and par value) |
|
March 31, 2023 |
|
December 31, 2022 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
5,410 |
|
|
$ |
20,507 |
|
Trade accounts receivable, net of allowance for credit losses and
doubtful accounts of $621 and $515, respectively |
|
11,902 |
|
|
|
10,853 |
|
Inventories |
|
18,522 |
|
|
|
17,285 |
|
Prepaid and other current assets |
|
753 |
|
|
|
673 |
|
Total current assets |
|
36,587 |
|
|
|
49,318 |
|
|
|
|
|
Property and equipment, net |
|
6,826 |
|
|
|
5,785 |
|
Right-of -use asset, net |
|
1,269 |
|
|
|
1,380 |
|
Goodwill |
|
7,639 |
|
|
|
3,205 |
|
Intangible assets, net |
|
10,810 |
|
|
|
344 |
|
Other assets |
|
185 |
|
|
|
197 |
|
Total Assets |
$ |
63,316 |
|
|
$ |
60,229 |
|
|
|
|
|
LIABILITIES & STOCKHOLDERS' EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
3,421 |
|
|
$ |
3,490 |
|
Accrued liabilities |
|
5,595 |
|
|
|
5,496 |
|
Current portion of lease liability |
|
473 |
|
|
|
458 |
|
Current portion of finance lease obligations |
|
63 |
|
|
|
62 |
|
Line of credit |
|
3,002 |
|
|
|
3,379 |
|
Current portion of long-term debt |
|
4,722 |
|
|
|
2,333 |
|
Total current liabilities |
|
17,276 |
|
|
|
15,218 |
|
Long-term Liabilities: |
|
|
|
Lease liability, less current portion |
|
847 |
|
|
|
972 |
|
Finance lease obligation, less current portion |
|
165 |
|
|
|
181 |
|
Long-term debt, plus premium and less issuance cost |
|
12,318 |
|
|
|
9,687 |
|
Total Liabilities |
|
30,606 |
|
|
|
26,058 |
|
|
|
|
|
Stockholders' Equity |
|
|
|
Preferred stock |
|
- |
|
|
|
- |
|
Common stock |
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
278,458 |
|
|
|
277,841 |
|
Accumulated deficit |
|
(245,748 |
) |
|
|
(243,670 |
) |
Total Stockholders’ Equity |
|
32,710 |
|
|
|
34,171 |
|
|
|
|
|
Total Liabilities & Stockholders’ Equity |
$ |
63,316 |
|
|
$ |
60,229 |
|
|
|
|
|
XTANT MEDICAL HOLDINGS, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(Unaudited, in thousands, except number of shares and per share
amounts) |
|
|
|
|
Three Months Ended March 31, |
|
|
2023 |
|
|
2022 |
Revenue |
|
|
|
|
|
|
|
Orthopedic product sales |
$ |
17,942 |
|
|
$ |
12,950 |
|
Other revenue |
|
1 |
|
|
|
9 |
|
Total revenue |
|
17,943 |
|
|
|
12,959 |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
7,407 |
|
|
|
5,399 |
|
Gross profit |
|
10,536 |
|
|
|
7,560 |
|
|
|
|
|
|
|
|
|
Gross profit % |
|
58.7% |
|
|
|
58.3% |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
General and administrative |
|
4,884 |
|
|
|
3,969 |
|
Sales and marketing |
|
7,054 |
|
|
|
5,209 |
|
Research and development |
|
174 |
|
|
|
213 |
|
|
|
12,112 |
|
|
|
9,391 |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(1,576 |
) |
|
|
(1,831 |
) |
|
|
|
|
|
|
|
|
Other expense |
|
|
|
|
|
|
|
Interest expense |
|
(575 |
) |
|
|
(359 |
) |
Interest income |
|
86 |
|
|
|
- |
|
Total Other Expense |
|
(489 |
) |
|
|
(359 |
) |
Net Loss from Operations Before Provision for Income
Taxes |
|
(2,065 |
) |
|
|
(2,190 |
) |
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
|
|
|
|
|
Current and deferred |
|
(13 |
) |
|
|
(23 |
) |
Net Loss |
$ |
(2,078 |
) |
|
$ |
(2,213 |
) |
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.02 |
) |
|
$ |
(0.03 |
) |
Dilutive |
$ |
(0.02 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
Shares used in the computation: |
|
|
|
|
|
|
|
Basic |
|
108,893,588 |
|
|
|
87,191,341 |
|
Dilutive |
|
108,893,588 |
|
|
|
87,191,341 |
|
|
|
|
|
|
|
|
|
XTANT MEDICAL HOLDINGS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited, in thousands) |
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
Operating activities: |
|
|
|
Net loss |
$ |
(2,078 |
) |
|
$ |
(2,213 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
471 |
|
|
|
281 |
|
Gain on disposal of fixed assets |
|
(11 |
) |
|
|
(73 |
) |
Non-cash interest |
|
61 |
|
|
|
58 |
|
Non-cash rent |
|
2 |
|
|
|
- |
|
Stock-based compensation |
|
617 |
|
|
|
613 |
|
Provision for reserve on accounts receivable |
|
106 |
|
|
|
191 |
|
Provision for excess and obsolete inventory |
|
90 |
|
|
|
318 |
|
Changes in operating assets and liabilities, net of the effects of
the acquisition: |
|
|
|
Accounts receivable |
|
(1,155 |
) |
|
|
(582 |
) |
Inventories |
|
(309 |
) |
|
|
327 |
|
Prepaid and other assets |
|
(68 |
) |
|
|
(78 |
) |
Accounts payable |
|
(69 |
) |
|
|
159 |
|
Accrued liabilities |
|
98 |
|
|
|
(5 |
) |
Net cash used in operating activities |
|
(2,245 |
) |
|
|
(1,004 |
) |
|
|
|
|
Investing activities: |
|
|
|
Purchases of property and equipment |
|
(456 |
) |
|
|
(484 |
) |
Proceeds from sale of fixed assets |
|
35 |
|
|
|
93 |
|
Acquisition of Surgalign SPV, Inc. |
|
(17,000 |
) |
|
|
- |
|
Net cash used in investing activities |
|
(17,421 |
) |
|
|
(391 |
) |
|
|
|
|
Financing activities: |
|
|
|
Payments on financing leases |
|
(15 |
) |
|
|
(8 |
) |
Borrowings on line of credit |
|
16,495 |
|
|
|
12,316 |
|
Repayments on line of credit |
|
(16,871 |
) |
|
|
(12,329 |
) |
Net proceeds from issuance of long term debt, net of issuance
costs |
|
4,960 |
|
|
|
- |
|
Net cash provided by (used in) financing
activities |
|
4,569 |
|
|
|
(21 |
) |
|
|
|
|
Net change in cash and cash equivalents |
|
(15,097 |
) |
|
|
(1,416 |
) |
Cash and cash equivalents at beginning of period |
|
20,507 |
|
|
|
18,387 |
|
Cash and cash equivalents at end of period |
$ |
5,410 |
|
|
$ |
16,971 |
|
|
|
|
|
XTANT MEDICAL HOLDINGS, INC. |
|
CALCULATION OF NON-GAAP CONSOLIDATED EBITDA AND ADJUSTED
EBITDA |
|
(Unaudited, in thousands) |
|
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net Loss |
$ |
(2,078 |
) |
|
$ |
(2,213 |
) |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
457 |
|
|
|
281 |
|
Interest expense |
|
490 |
|
|
|
359 |
|
Tax expense |
|
13 |
|
|
|
23 |
|
Non-GAAP EBITDA |
|
(1,118 |
) |
|
|
(1,550 |
) |
|
|
|
|
|
|
|
|
Non-GAAP EBITDA/Total revenue |
|
-6.2% |
|
|
|
-12.0% |
|
|
|
|
|
|
|
|
|
NON-GAAP ADJUSTED EBITDA CALCULATION |
|
|
|
|
|
|
|
Stock-based compensation |
|
617 |
|
|
|
614 |
|
Acquisition related expenses |
|
211 |
|
|
|
- |
|
Non-GAAP Adjusted EBITDA |
$ |
(290 |
) |
|
$ |
(936 |
) |
|
|
|
|
|
|
|
|
Non-GAAP Adjusted EBITDA/Total revenue |
|
-1.6% |
|
|
|
-7.2% |
|
|
|
|
|
|
|
|
|
Xtant Medical (AMEX:XTNT)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Xtant Medical (AMEX:XTNT)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024