RTI Surgical Holdings, Inc. (Nasdaq: RTIX), a global surgical
implant company, reported operating results for the second quarter
of 2019.
Second Quarter 2019 Highlights:
- Revenue of $82.3 million, up approximately 16% compared to the
second quarter of 2018
- Net income of $0.7 million
- Adjusted EBITDA of $9.9 million, or 12% of revenue
“RTI Surgical experienced accelerated revenue growth in the
second quarter of 2019 resulting from strong performance across our
global Spine and OEM franchises, and further improved by the
addition of coflex,” said Camille Farhat, President and CEO, RTI
Surgical. “We’re very pleased with the double-digit topline growth
of our legacy spine hardware portfolio, particularly as we work to
establish a new sales channel to drive the growth of our Novel
Therapies portfolio, which includes coflex.”
Farhat continued, “The OEM franchise had a record quarter as we
continue to deliver meaningful value to our customers. We offer a
unique and innovative OEM solution, which includes product design
and development, regulatory support, and product fulfillment across
tissue, biologics and hardware. Increasingly, medical device
companies are seeking our domain expertise in the creation of
distribution-ready products to address their portfolio-specific
needs, as well as the demands of surgeons and patients. Overall, we
are extremely pleased to see continued success from our efforts to
reduce complexity, drive operational excellence and accelerate the
growth of RTI.”
Second Quarter 2019
RTI’s worldwide revenues for the second quarter of 2019 were
$82.3 million, an increase of $11.6 million, or 16% compared with
$70.7 million during the same period in the prior year. The second
quarter 2019 revenue included $10.1 million global contribution
from the acquisition of Paradigm Spine, closed on March 9, 2019.
Gross profit for the second quarter of 2019 was $44.7 million, or
54.4% of revenues, a 49% increase compared to $30.0 million, or
42.5% of revenues, in the second quarter of 2018. Gross profit for
the second quarter of 2019 included $2.9 million for the purchase
accounting step-up of coflex inventory. Gross profit for the second
quarter of 2018 was impacted by an inventory charge of $6.8 million
from the write-off of inventory related to decreased distributions
of our map3® implant and the purchase accounting step-up on Zyga
inventory. Gross profit adjusted for the impact of non-recurring
charges was 57.9% of revenue for the second quarter of 2019
compared to 52.1% of revenue for the prior year quarter.
During the second quarter of 2019, RTI incurred $2.0 million in
non-recurring pre-tax acquisition and integration costs related
primarily to its acquisition and integration of Paradigm Spine LLC
and a $1.6 million gain on acquisition contingency due to an
adjustment to our estimate of obligation for future milestone
payments.
Net income applicable to common shares was $0.7 million, or
$0.01 per fully diluted common share in the second quarter of 2019,
compared to net loss applicable to common shares of $6.4 million,
or $0.10 per fully diluted common share in the second quarter of
2018. As outlined in the reconciliation tables that follow,
excluding the impact of non-recurring charges, adjusted net income
applicable to common shares was $0.7 million, or $0.01 per fully
diluted common share in the second quarter of 2019 compared to $2.0
million, or $0.03 per fully diluted common share, in the second
quarter of 2018.
Adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA), for the second quarter of 2019 was
$9.9 million, or 12% of revenues, compared with $9.1 million, or
13% of revenues for the second quarter of 2018. The increase in
Adjusted EBITDA was primarily driven by increase in gross profit
associated with efforts to drive operational excellence, partially
offset by incremental operating costs from the acquisition of
Paradigm Spine completed in early March of 2019.
Fiscal 2019 Outlook
Based on our recent financial results and current business
outlook, the Company confirms the following financial guidance for
2019:
- The Company expects full year revenues in the range of $325
million to $335 million, representing approximately 15% to 19%
growth over the prior year.
- The Company expects full year Adjusted EBITDA to be in the
range of $36 million to $40 million, representing approximately 7%
to 19% growth over the prior year.
The Company noted that guidance is based on the following
assumptions:
- Relatively stable economic and market conditions and regulatory
environment;
- Ongoing positive impacts from efforts to reduce complexity and
implement operational excellence;
- The continuing successful integration of Paradigm Spine, which
closed in early March 2019 and a positive EBITDA contribution from
Paradigm Spine;
- Sustained favorable reimbursement from private payers;
and,
- The successful ongoing transition from map3® to ViBone®.
Conference CallRTI will host a
conference call and audio webcast at 9:00 a.m. ET today. The
conference call can be accessed by dialing (877) 383-7419 (U.S.) or
(760) 666-3754 (International), using conference ID 4267595. The
webcast can be accessed through the investor section of RTI’s
website at www.rtix.com/investors. A replay of the conference call
will be available on RTI’s website for one month following the
call.
About RTI Surgical Holdings, Inc.RTI Surgical
is a leading global surgical implant company providing surgeons
with safe biologic, metal and synthetic implants. Committed to
delivering a higher standard, RTI’s implants are used in sports
medicine, plastic surgery, spine, orthopedic and trauma procedures
and are distributed in over 50 countries. RTI has four
manufacturing facilities throughout the U.S. and Europe. RTI is
accredited in the U.S. by the American Association of Tissue Banks
and is a member of AdvaMed. For more information, please visit
www.rtix.com. Connect with us
on LinkedIn and Twitter.
Forward-Looking Statements
This communication contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, which may include statements regarding various
initiatives by the Company to reduce complexity, drive operational
excellence and accelerate growth, the impact of operational
priorities on costs and their impact on RTI’s financial
performance, RTI’s ability to meet its financial and other
commitments, the implementation of RTI’s strategic initiatives,
future performance and organic growth, , RTI’s ability
to expand the number of patients it is able to serve, the impact of
the transition from map3® to ViBone®, our growth strategy in spine,
the expected integration of, and potential impact from, the
Paradigm Spine, LLC acquisition, the integration of Zyga’s
operations, the success of our new product development efforts,
anticipated financial results, growth rates, new product
introductions, future operational improvements, fiscal 2019
guidance and underlying assumptions. These forward-looking
statements are based on management’s current expectations,
estimates and projections about our industry, our management's
beliefs and certain assumptions made by our management. Words such
as "anticipates," "expects," "intends," "plans," "believes,"
"seeks," "estimates," variations of such words and similar
expressions are intended to identify such forward-looking
statements. The forward-looking statements are not guarantees of
future performance and are based on certain assumptions including
RTI’s ability to reduce inventory, manage expenses and accomplish
its goals and strategies, the quality of the new product offerings
from RTI, general economic conditions, as well as those within
RTI’s industry, RTI’s ability to integrate acquisitions into
existing operations, and numerous other factors and risks
identified in the Company’s Form 10-K for the fiscal year ended
December 31, 2018 and other filings with the Securities and
Exchange Commission (SEC). Our actual results may differ materially
from the anticipated results reflected in these forward-looking
statements. Copies of the Company's SEC filings may be obtained by
contacting the Company or the SEC or by visiting RTI's website
at www.rtix.com or the SEC's website at www.sec.gov.
We undertake no obligation to update these forward-looking
statements except as may be required by law.
MEDIA AND INVESTOR CONTACT:Molly
Poarchmpoarch@rtix.com+1 224 287 2661
|
RTI SURGICAL HOLDINGS, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of
Operations |
(Unaudited, in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Revenues |
$ |
82,307 |
|
|
$ |
70,685 |
|
|
$ |
152,048 |
|
|
$ |
140,575 |
|
Costs of processing and
distribution |
|
37,562 |
|
|
|
40,645 |
|
|
|
69,299 |
|
|
|
76,853 |
|
Gross profit |
|
44,745 |
|
|
|
30,040 |
|
|
|
82,749 |
|
|
|
63,722 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Marketing, general and
administrative |
|
38,993 |
|
|
|
29,266 |
|
|
|
70,876 |
|
|
|
57,655 |
|
Research and development |
|
3,868 |
|
|
|
3,270 |
|
|
|
8,204 |
|
|
|
6,691 |
|
Severance and restructuring
costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
884 |
|
Gain on acquisition
contingency |
|
(1,590 |
) |
|
|
- |
|
|
|
(1,590 |
) |
|
|
- |
|
Asset impairment and
abandonments |
|
- |
|
|
|
4,515 |
|
|
|
15 |
|
|
|
4,644 |
|
Acquisition and integration
expenses |
|
1,953 |
|
|
|
- |
|
|
|
10,910 |
|
|
|
800 |
|
Total operating expenses |
|
43,224 |
|
|
|
37,051 |
|
|
|
88,415 |
|
|
|
70,674 |
|
Operating income (loss) |
|
1,521 |
|
|
|
(7,011 |
) |
|
|
(5,666 |
) |
|
|
(6,952 |
) |
Total other expense - net |
|
(3,628 |
) |
|
|
(1,151 |
) |
|
|
(5,132 |
) |
|
|
(1,926 |
) |
Income (loss) before income
tax benefit |
|
(2,107 |
) |
|
|
(8,162 |
) |
|
|
(10,798 |
) |
|
|
(8,878 |
) |
Income tax benefit |
|
2,851 |
|
|
|
2,702 |
|
|
|
2,455 |
|
|
|
2,453 |
|
Net income (loss) |
|
744 |
|
|
|
(5,460 |
) |
|
|
(8,343 |
) |
|
|
(6,425 |
) |
Convertible preferred
dividend |
|
- |
|
|
|
(981 |
) |
|
|
- |
|
|
|
(1,947 |
) |
Net income (loss) applicable
to common shares |
$ |
744 |
|
|
$ |
(6,441 |
) |
|
$ |
(8,343 |
) |
|
$ |
(8,372 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per common
share - basic |
$ |
0.01 |
|
|
$ |
(0.10 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.13 |
) |
Net income (loss) per common
share - diluted |
$ |
0.01 |
|
|
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.13 |
) |
Weighted average shares
outstanding - basic |
|
75,144,488 |
|
|
|
63,405,708 |
|
|
|
70,409,839 |
|
|
|
63,400,737 |
|
Weighted average shares
outstanding - diluted |
|
91,120,956 |
|
|
|
63,405,708 |
|
|
|
70,409,839 |
|
|
|
63,400,737 |
|
|
|
|
|
|
|
|
|
|
RTI SURGICAL HOLDINGS, INC. AND SUBSIDIARIES |
Reconciliation of Revenues to Adjusted Gross
Profit |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
Revenues |
$ |
82,307 |
|
$ |
70,685 |
|
$ |
152,048 |
|
$ |
140,575 |
Costs of processing and
distribution |
|
37,562 |
|
|
40,645 |
|
|
69,299 |
|
|
76,853 |
Gross profit, as reported |
|
44,745 |
|
|
30,040 |
|
|
82,749 |
|
|
63,722 |
Inventory write-off |
|
- |
|
|
6,559 |
|
|
- |
|
|
7,582 |
Inventory purchase price
adjustment |
|
2,936 |
|
|
250 |
|
|
2,936 |
|
|
456 |
Non-GAAP gross profit,
adjusted |
$ |
47,681 |
|
$ |
36,849 |
|
$ |
85,685 |
|
$ |
71,760 |
Non-GAAP gross profit
percentage, adjusted |
|
57.9% |
|
|
52.1% |
|
|
56.4% |
|
|
51.0% |
|
|
|
|
|
|
|
|
|
RTI SURGICAL HOLDINGS, INC. AND SUBSIDIARIES |
Reconciliation of Net Loss Applicable to Commons Shares to
Adjusted EBITDA |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net income (loss)
applicable to common shares |
$ |
744 |
|
|
$ |
(6,441 |
) |
|
$ |
(8,343 |
) |
|
$ |
(8,372 |
) |
|
Interest expense,
net |
|
3,609 |
|
|
|
771 |
|
|
|
5,082 |
|
|
|
1,595 |
|
|
Provision for
income taxes |
|
(2,851 |
) |
|
|
(2,702 |
) |
|
|
(2,455 |
) |
|
|
(2,453 |
) |
|
Depreciation |
|
2,800 |
|
|
|
2,524 |
|
|
|
5,539 |
|
|
|
5,147 |
|
|
Amortization of
intangible assets |
|
995 |
|
|
|
960 |
|
|
|
1,952 |
|
|
|
1,921 |
|
EBITDA |
|
5,297 |
|
|
|
(4,888 |
) |
|
|
1,775 |
|
|
|
(2,162 |
) |
Reconciling items
impacting EBITDA |
|
|
|
|
|
|
|
|
Preferred
dividend |
|
- |
|
|
|
981 |
|
|
|
- |
|
|
|
1,947 |
|
|
Non-cash stock
based compensation |
|
1,267 |
|
|
|
1,290 |
|
|
|
2,430 |
|
|
|
2,570 |
|
|
Foreign exchange
gain (loss) |
|
19 |
|
|
|
71 |
|
|
|
50 |
|
|
|
22 |
|
|
Other reconciling
items * |
|
|
|
|
|
|
|
|
|
Inventory write-off |
|
- |
|
|
|
6,559 |
|
|
|
- |
|
|
|
7,582 |
|
|
|
Inventory purchase price
adjustment |
|
2,936 |
|
|
|
250 |
|
|
|
2,936 |
|
|
|
456 |
|
|
|
Severance and restructuring
costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
884 |
|
|
|
Gain on acquisition
contingency |
|
(1,590 |
) |
|
|
- |
|
|
|
(1,590 |
) |
|
|
- |
|
|
|
Loss on extinguishment of
debt |
|
- |
|
|
|
309 |
|
|
|
- |
|
|
|
309 |
|
|
|
Asset impairment and
abandonments |
|
- |
|
|
|
4,515 |
|
|
|
- |
|
|
|
4,515 |
|
|
|
Acquisition and integration
expenses |
|
1,953 |
|
|
|
- |
|
|
|
10,910 |
|
|
|
800 |
|
Adjusted
EBITDA |
$ |
9,882 |
|
|
$ |
9,087 |
|
|
$ |
16,511 |
|
|
$ |
16,923 |
|
Adjusted EBITDA as
a percent of revenues |
|
12 |
% |
|
|
13 |
% |
|
|
11 |
% |
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
* |
See explanations
in Use of Non-GAAP Financial Measures section later in this
release. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RTI SURGICAL HOLDINGS, INC. AND SUBSIDIARIES |
Reconciliation of Net Income (Loss) Applicable to Common
Shares and Net Income Per Diluted Share to |
Adjusted Net Income Applicable to Common Shares and
Adjusted Net Income Per Diluted Share |
(Unaudited, in thousands except per share
data) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
June 30, 2019 |
|
June 30, 2018 |
|
Net |
|
|
|
Net |
|
|
|
Income (Loss) |
|
Amount |
|
Income (Loss) |
|
Amount |
|
Applicable to |
|
Per Diluted |
|
Applicable to |
|
Per Diluted |
|
Common Shares |
|
Share |
|
Common Shares |
|
Share |
As reported |
$ |
744 |
|
|
$ |
0.01 |
|
|
$ |
(6,441 |
) |
|
$ |
(0.10 |
) |
Gain on acquisition
contingency |
|
(1,590 |
) |
|
|
(0.02 |
) |
|
|
- |
|
|
|
- |
|
Asset impairment and
abandonments |
|
- |
|
|
|
- |
|
|
|
4,515 |
|
|
|
0.07 |
|
Inventory purchase price
adjustment |
|
2,936 |
|
|
|
0.03 |
|
|
|
250 |
|
|
|
0.00 |
|
Loss on extinguishment of
debt |
|
- |
|
|
|
- |
|
|
|
309 |
|
|
|
0.00 |
|
Inventory write-off |
|
- |
|
|
|
- |
|
|
|
6,559 |
|
|
|
0.10 |
|
Acquisition and integration
expenses |
|
1,953 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
- |
|
Tax effect on
adjustments |
|
(3,313 |
) |
|
|
(0.04 |
) |
|
|
(3,161 |
) |
|
|
(0.05 |
) |
Adjusted * |
$ |
730 |
|
|
$ |
0.01 |
|
|
$ |
2,031 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
June 30, 2019 |
|
June 30, 2018 |
|
Net |
|
|
|
Net |
|
|
|
Income (Loss) |
|
Amount |
|
Income (Loss) |
|
Amount |
|
Applicable to |
|
Per Diluted |
|
Applicable to |
|
Per Diluted |
|
Common Shares |
|
Share |
|
Common Shares |
|
Share |
As reported |
$ |
(8,343 |
) |
|
$ |
(0.12 |
) |
|
$ |
(8,372 |
) |
|
$ |
(0.13 |
) |
Severance and restructuring
costs |
|
- |
|
|
|
- |
|
|
|
884 |
|
|
|
0.01 |
|
Gain on acquisition
contingency |
|
(1,590 |
) |
|
|
(0.02 |
) |
|
|
- |
|
|
|
- |
|
Asset impairment and
abandonments |
|
- |
|
|
|
- |
|
|
|
4,515 |
|
|
|
0.07 |
|
Inventory purchase price
adjustment |
|
2,936 |
|
|
|
0.03 |
|
|
|
456 |
|
|
|
0.01 |
|
Loss on extinguishment of
debt |
|
- |
|
|
|
- |
|
|
|
309 |
|
|
|
0.00 |
|
Inventory write-off |
|
- |
|
|
|
- |
|
|
|
7,582 |
|
|
|
0.12 |
|
Acquisition and integration
expenses |
|
10,910 |
|
|
|
0.13 |
|
|
|
800 |
|
|
|
0.01 |
|
Tax effect on
adjustments |
|
(2,696 |
) |
|
|
(0.03 |
) |
|
|
(3,654 |
) |
|
|
(0.06 |
) |
Adjusted * |
$ |
1,217 |
|
|
$ |
0.01 |
|
|
$ |
2,520 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
* See
explanations in Use of Non-GAAP Financial Measures section later in
this release. |
|
|
Amount Per
Diluted Share may not foot due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial
Measures
To supplement the Company’s unaudited condensed
consolidated financial statements presented on a GAAP basis, the
Company discloses certain non-GAAP financial measures that exclude
certain amounts, including EBITDA, Adjusted EBITDA and Adjusted Net
Income Applicable to Common Shares. The calculation of the tax
effect on the adjustments between GAAP net loss applicable to
common shares and non-GAAP net income applicable to common shares
is based upon our estimated annual GAAP tax rate, adjusted to
account for items excluded from GAAP net loss applicable to common
shares in calculating Adjusted Net Income Applicable to Common
Shares-Diluted. A reconciliation of the non-GAAP financial measures
to the corresponding GAAP measures is included in the tables listed
above.
The following are explanations of the
adjustments that management excluded as part of the non-GAAP
measures for the three and six months ended June 30, 2019 and 2018.
Management removes the amount of these costs including the tax
effect on the adjustments from our operating results to supplement
a comparison to our past operating performance.
Severance and restructuring costs – These costs relate to the
reduction of our organizational structure, primarily driven by
simplification of our international operating infrastructure,
specifically our distribution model.
Gain on acquisition contingency – The gain on acquisition
contingency relates to an adjustment to our estimate of obligation
for future milestone payments.
Asset impairment and abandonments – This adjustment represents
an asset impairment and abandonments related to the suspension of
the map3® implant.
Inventory purchase price adjustment – These costs relate to the
purchase price effects of acquired Paradigm and Zyga, respectively,
inventory that was sold during the six months ended June 30, 2019
and 2018, respectively.
Loss on extinguishment of debt – This adjustment represents
costs relating to refinancing our debt.
Inventory write-off – These costs relate to an inventory
write-off due to the rationalization of our international
distribution infrastructure.
Acquisition and integration expenses – These costs relate to
acquisition and integration expenses due to the purchase of
Paradigm and Zyga in 2019 and 2018, respectively.
Material Limitations Associated with the Use of Non-GAAP
Financial Measures
EBITDA, Adjusted EBITDA and Adjusted Net Income Applicable to
Common Shares should not be considered in isolation, or as a
replacement for GAAP measures.
Usefulness of Non-GAAP Financial Measures to Investors
The Company believes that presenting EBITDA, Adjusted EBITDA and
Adjusted Net Income Applicable to Common Shares in addition to the
related GAAP measures provide investors greater transparency to the
information used by management in its financial
decision-making. The Company further believes that providing
this information better enables the Company’s investors to
understand the Company’s overall core performance and to evaluate
the methodology used by management to assess and measure such
performance.
|
RTI SURGICAL HOLDINGS, INC. AND SUBSIDIARIES |
Condensed Consolidated Revenues |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
(In thousands) |
Spine |
$ |
26,671 |
|
$ |
18,934 |
|
$ |
46,676 |
|
$ |
38,197 |
Sports |
|
14,024 |
|
|
14,190 |
|
|
27,803 |
|
|
27,625 |
OEM |
|
32,483 |
|
|
31,170 |
|
|
61,474 |
|
|
61,290 |
International |
|
9,129 |
|
|
6,391 |
|
|
16,095 |
|
|
13,463 |
Total revenues |
$ |
82,307 |
|
$ |
70,685 |
|
$ |
152,048 |
|
$ |
140,575 |
|
|
|
|
|
|
|
|
|
RTI SURGICAL HOLDINGS, INC. AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(Unaudited, in thousands) |
|
|
June 30, |
|
December 31, |
|
|
2019 |
|
|
|
2018 |
|
Assets |
|
|
|
Cash |
$ |
4,518 |
|
|
$ |
10,949 |
|
Accounts receivable - net |
|
56,163 |
|
|
|
48,351 |
|
Inventories - net |
|
127,906 |
|
|
|
107,471 |
|
Prepaid and other assets |
|
8,733 |
|
|
|
8,791 |
|
Total current assets |
|
197,320 |
|
|
|
175,562 |
|
|
|
|
|
Non-current inventories -
net |
|
20,445 |
|
|
|
- |
|
Property, plant and equipment
- net |
|
79,691 |
|
|
|
77,954 |
|
Goodwill |
|
271,429 |
|
|
|
59,798 |
|
Other assets - net |
|
52,526 |
|
|
|
47,872 |
|
Total assets |
$ |
621,411 |
|
|
$ |
361,186 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Accounts payable |
$ |
20,766 |
|
|
$ |
26,309 |
|
Accrued expenses and other
current liabilities |
|
29,412 |
|
|
|
29,591 |
|
Total current liabilities |
|
50,178 |
|
|
|
55,900 |
|
|
|
|
|
Deferred revenue |
|
325 |
|
|
|
744 |
|
Long-term liabilities |
|
266,015 |
|
|
|
54,692 |
|
Total liabilities |
|
316,518 |
|
|
|
111,336 |
|
|
|
|
|
Preferred stock |
|
66,318 |
|
|
|
66,226 |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
Common stock and additional paid-in capital |
|
491,630 |
|
|
|
428,338 |
|
Accumulated other comprehensive loss |
|
(7,268 |
) |
|
|
(7,270 |
) |
Accumulated deficit |
|
(245,787 |
) |
|
|
(237,444 |
) |
Total stockholders' equity |
|
238,575 |
|
|
|
183,624 |
|
Total liabilities and stockholders' equity |
$ |
621,411 |
|
|
$ |
361,186 |
|
|
|
|
|
|
RTI SURGICAL HOLDINGS, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
June 30, |
|
|
2019 |
|
|
|
2018 |
|
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(8,343 |
) |
|
$ |
(6,425 |
) |
Adjustments to reconcile net
loss to net cash (used in) provided by operating activities: |
|
|
|
Depreciation and amortization
expense |
|
7,491 |
|
|
|
7,068 |
|
Stock-based compensation |
|
2,430 |
|
|
|
2,570 |
|
Amortization of deferred
revenue |
|
(2,585 |
) |
|
|
(2,435 |
) |
Other items to
reconcile to net cash |
|
|
|
used in operating
activities |
|
(12,104 |
) |
|
|
8,600 |
|
Net cash (used in) provided by
operating activities |
|
(13,111 |
) |
|
|
9,378 |
|
Cash flows from
investing activities: |
|
|
|
Purchases of property, plant
and equipment |
|
(6,912 |
) |
|
|
(3,856 |
) |
Patent and acquired intangible
asset costs |
|
(1,126 |
) |
|
|
(728 |
) |
Acquisition of Zyga
Technology |
|
- |
|
|
|
(21,000 |
) |
Acquisition of Paradigm
Spine |
|
(99,921 |
) |
|
|
- |
|
Net cash used in investing
activities |
|
(107,959 |
) |
|
|
(25,584 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from long-term
obligations |
|
115,000 |
|
|
|
74,425 |
|
Payments of debt issuance
costs |
|
(729 |
) |
|
|
- |
|
Payments on long-term
obligations |
|
- |
|
|
|
(66,750 |
) |
Other financing
activities |
|
395 |
|
|
|
403 |
|
Net cash provided by financing
activities |
|
114,666 |
|
|
|
8,078 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(27 |
) |
|
|
(7 |
) |
Net decrease in cash and cash
equivalents |
|
(6,431 |
) |
|
|
(8,135 |
) |
Cash and cash equivalents,
beginning of period |
|
10,949 |
|
|
|
22,381 |
|
Cash and cash equivalents, end
of period |
$ |
4,518 |
|
|
$ |
14,246 |
|
|
|
|
|
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