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 third quarter ended September 30, 2022.
“I am pleased that third quarter revenues
increased by 5% year-over-year, led by 12% growth in our biologics
business. Driven by the successful launches of our OsteoFactor™ and
OsteoVive® Plus biologics products and expansion of our
distribution network, we are encouraged with the trajectory of our
revenue and progress to date in 2022,” said Sean Browne, President
and CEO of Xtant Medical. “Our team is focused on the continued
execution of our growth strategy, and supported by the recently
closed $9.75 million private placement, we are well-positioned to
deliver on our objectives. Looking ahead, we expect to be at full
operating capacity by the first quarter of 2023 enabling our team
to take advantage of the robust demand environment.”
Third Quarter 2022 Financial
Results
Third quarter 2022 revenue was $14.5 million,
compared to $13.8 million for the same quarter in 2021. The
increase in revenue was largely attributable to introductions of
new products.
Gross margin for the third quarter of 2022 was
54.6%, compared to 52.2% for the same period in 2021. The increase
is primarily attributable to improved capacity utilization.
Operating expenses for the third quarter of 2022
totaled $9.8 million, compared to $8.6 million for the third
quarter of 2021. The increase was primarily due to greater
independent agent sales commissions, product registration expense
and employee compensation expense.
Third quarter 2022 net loss totaled $2.4
million, or $0.03 per share, compared to the third quarter 2021 net
loss of $1.8 million, or $0.02 per share.
Non-GAAP Adjusted EBITDA for the third quarter
of 2022 totaled a loss of $0.9 million, compared to Non-GAAP
Adjusted EBITDA loss of $0.6 million for the prior-year period. 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, non-cash compensation, separation
related expenses, and litigation settlement reserves. A calculation
and reconciliation of Adjusted EBITDA to net loss can be found in
the attached financial tables.
Conference Call
Xtant Medical will host a webcast and conference
call to discuss the third quarter 2022 financial results on
Thursday, November 3, 2022 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. 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 expectations to be at full operating capacity by the
first quarter of 2023 and to continue to execute its growth
strategy and deliver on its objectives. 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; the
ability to increase or maintain revenue; possible future impairment
charges to long-lived assets and goodwill and write-downs of excess
inventory if revenues continue to 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 the COVID-19 pandemic and
labor and 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
indicators 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, 2021 filed with the Securities and
Exchange Commission (SEC) on March 8, 2022 and subsequent SEC
filings by the Company, including without limitation its most
recent Quarterly Report on Form 10-Q for the quarter ended
September 30, 2022 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: 212-867-1762 Email:
david.carey@finnpartners.com
XTANT
MEDICAL HOLDINGS, INC. |
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
(In thousands,
except number of shares and par value) |
|
|
|
As of September 30, 2022 |
|
As of December 31, 2021 |
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
17,363 |
|
|
$ |
18,243 |
|
|
Restricted Cash |
|
|
240 |
|
|
|
144 |
|
|
Trade accounts receivable, net of allowance for credit losses and
doubtful accounts of $549 and $552, respectively |
|
|
9,839 |
|
|
|
7,154 |
|
|
Inventories |
|
|
16,993 |
|
|
|
17,945 |
|
|
Prepaid and other current assets |
|
|
673 |
|
|
|
844 |
|
|
Total current assets |
|
|
45,108 |
|
|
|
44,330 |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
5,669 |
|
|
|
5,212 |
|
|
Right-of -use asset, net |
|
|
1,490 |
|
|
|
1,258 |
|
|
Goodwill |
|
|
3,205 |
|
|
|
3,205 |
|
|
Intangible assets, net |
|
|
358 |
|
|
|
400 |
|
|
Other assets |
|
|
219 |
|
|
|
287 |
|
|
Total Assets |
|
$ |
56,049 |
|
|
$ |
54,692 |
|
|
|
|
|
|
|
|
LIABILITIES
& STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
3,779 |
|
|
$ |
2,615 |
|
|
Accrued liabilities |
|
|
5,021 |
|
|
|
4,349 |
|
|
Current portion of lease liability |
|
|
443 |
|
|
|
462 |
|
|
Finance lease obiligations |
|
|
61 |
|
|
|
31 |
|
|
Line of credit |
|
|
720 |
|
|
|
3,620 |
|
|
Current portion of long-term debt |
|
|
1,335 |
|
|
|
- |
|
|
Total current liabilities |
|
|
11,359 |
|
|
|
11,077 |
|
|
Long-term Liabilities: |
|
|
|
|
|
Lease liability, less current portion |
|
|
1,094 |
|
|
|
842 |
|
|
Finance lease obligations, less current portion |
|
|
197 |
|
|
|
103 |
|
|
Long-term debt, plus premium and less issuance costs |
|
|
10,626 |
|
|
|
11,787 |
|
|
Total Liabilities |
|
|
23,276 |
|
|
|
23,809 |
|
|
|
|
|
|
|
|
Stockholders' Equity (Deficit) |
|
|
|
|
|
Preferred stock, $0.000001 par value; 10,000,000 shares authorized;
no shares issued and outstanding |
|
|
- |
|
|
|
- |
|
|
Common stock, $0.000001 par value; 300,000,000 shares authorized;
101,981,250 shares issued and outstanding as of September 30, 2022
and 87,068,980 shares issued and outstanding as of December 31,
2021 |
|
|
- |
|
|
|
- |
|
|
Additional paid-in capital |
|
|
274,234 |
|
|
|
266,068 |
|
|
Accumulated deficit |
|
|
(241,461 |
) |
|
|
(235,185 |
) |
|
Total Stockholders’ Equity |
|
|
32,773 |
|
|
|
30,883 |
|
|
|
|
|
|
|
|
Total Liabilities & Stockholders’ Equity |
|
$ |
56,049 |
|
|
$ |
54,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XTANT
MEDICAL HOLDINGS, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited, in
thousands, except number of shares and per share amounts) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
|
|
|
|
|
|
|
Orthopedic product sales |
|
$ |
14,462 |
|
|
$ |
13,743 |
|
|
$ |
42,689 |
|
|
$ |
41,193 |
|
Other revenue |
|
|
- |
|
|
|
34 |
|
|
|
10 |
|
|
|
100 |
|
Total revenue |
|
|
14,462 |
|
|
|
13,777 |
|
|
|
42,699 |
|
|
|
41,293 |
|
|
|
|
|
|
|
|
|
|
Cost of
sales |
|
|
6,566 |
|
|
|
6,586 |
|
|
|
18,868 |
|
|
|
16,498 |
|
Gross profit |
|
|
7,896 |
|
|
|
7,191 |
|
|
|
23,831 |
|
|
|
24,795 |
|
|
|
|
|
|
|
|
|
|
Gross profit % |
|
|
54.6 |
% |
|
|
52.2 |
% |
|
|
55.8 |
% |
|
|
60.0 |
% |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
General and administrative |
|
|
3,729 |
|
|
|
3,107 |
|
|
|
11,496 |
|
|
|
10,307 |
|
Sales and marketing |
|
|
5,838 |
|
|
|
5,267 |
|
|
|
16,683 |
|
|
|
15,712 |
|
Research and development |
|
|
229 |
|
|
|
262 |
|
|
|
683 |
|
|
|
719 |
|
Total operating expenses |
|
|
9,796 |
|
|
|
8,636 |
|
|
|
28,862 |
|
|
|
26,738 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,900 |
) |
|
|
(1,445 |
) |
|
|
(5,031 |
) |
|
|
(1,943 |
) |
|
|
|
|
|
|
|
|
|
Other
Expense |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(440 |
) |
|
|
(329 |
) |
|
|
(1,197 |
) |
|
|
(529 |
) |
Total Other Expense |
|
|
(440 |
) |
|
|
(329 |
) |
|
|
(1,197 |
) |
|
|
(529 |
) |
Net Loss Before Provision for Income Taxes |
|
|
(2,340 |
) |
|
|
(1,774 |
) |
|
|
(6,228 |
) |
|
|
(2,472 |
) |
|
|
|
|
|
|
|
|
|
Provision
for income taxes |
|
|
(13 |
) |
|
|
(30 |
) |
|
|
(48 |
) |
|
|
(94 |
) |
Net Loss |
|
$ |
(2,353 |
) |
|
$ |
(1,804 |
) |
|
$ |
(6,276 |
) |
|
$ |
(2,566 |
) |
|
|
|
|
|
|
|
|
|
Net loss per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
Dilutive |
|
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
Shares used
in the computation: |
|
|
|
|
|
|
|
|
Basic |
|
|
93,278,610 |
|
|
|
86,763,210 |
|
|
|
89,236,832 |
|
|
|
84,926,656 |
|
Dilutive |
|
|
93,278,610 |
|
|
|
86,763,210 |
|
|
|
89,236,832 |
|
|
|
84,926,656 |
|
|
|
|
|
|
|
|
|
|
XTANT
MEDICAL HOLDINGS, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited, in
thousands) |
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
|
|
2021 |
|
Operating
activities: |
|
|
|
Net loss |
$ |
(6,276 |
) |
|
$ |
(2,566 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
971 |
|
|
|
1,041 |
|
Gain on disposal of fixed assets |
|
(91 |
) |
|
|
(164 |
) |
Non-cash interest |
|
175 |
|
|
|
38 |
|
Non-cash rent expense |
|
2 |
|
|
|
8 |
|
Stock-based compensation |
|
1,825 |
|
|
|
1,501 |
|
Provision for reserve (recovery) on accounts receivable |
|
277 |
|
|
|
(25 |
) |
Provision for excess and obsolete inventory |
|
1,568 |
|
|
|
572 |
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(2,962 |
) |
|
|
584 |
|
Inventories |
|
(616 |
) |
|
|
1,128 |
|
Prepaid and other assets |
|
239 |
|
|
|
(126 |
) |
Accounts payable |
|
1,164 |
|
|
|
(592 |
) |
Accrued liabilities |
|
671 |
|
|
|
(1,383 |
) |
Net cash (used in) provided by operating activities |
|
(3,053 |
) |
|
|
16 |
|
Investing
activities: |
|
|
|
Purchases of property and equipment |
|
(1,321 |
) |
|
|
(1,489 |
) |
Proceeds from sale of fixed assets |
|
184 |
|
|
|
194 |
|
Net cash used in investing activities |
|
(1,137 |
) |
|
|
(1,295 |
) |
Financing
activities: |
|
|
|
Payment of taxes from withholding of common stock on vesting of
restricted stock units |
|
- |
|
|
|
(23 |
) |
Payments on financing leases |
|
(35 |
) |
|
|
(42 |
) |
Costs associated with refinancing |
|
- |
|
|
|
(136 |
) |
Payments on long-term debt |
|
- |
|
|
|
(411 |
) |
Borrowings on line of credit |
|
36,680 |
|
|
|
22,767 |
|
Repayments of line of credit |
|
(39,580 |
) |
|
|
(23,029 |
) |
Proceeds from private placement, net of cash issuance costs |
|
6,341 |
|
|
|
18,426 |
|
Net cash provided by financing activities |
|
3,406 |
|
|
|
17,552 |
|
|
|
|
|
Net change
in cash and cash equivalents and restricted cash |
|
(784 |
) |
|
|
16,273 |
|
Cash and
cash equivalents and restricted cash at beginning of period |
|
18,387 |
|
|
|
2,341 |
|
Cash and
cash equivalents and restricted cash at end of period |
$ |
17,603 |
|
|
$ |
18,614 |
|
|
|
|
|
|
|
|
|
Reconciliation of cash and restricted cash reported in the
condensed consolidated balance sheets |
|
|
|
Cash
and cash equivelants |
$ |
17,363 |
|
|
$ |
18,175 |
|
Restricted
cash |
|
240 |
|
|
|
439 |
|
Total cash
and restricted cash reported in the condensed consolidated balance
sheets |
$ |
17,603 |
|
|
$ |
18,614 |
|
|
|
|
|
XTANT
MEDICAL HOLDINGS, INC. |
|
CALCULATION
OF NON-GAAP CONSOLIDATED EBITDA AND ADJUSTED EBITDA |
|
(Unaudited, in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
|
$ |
(2,353 |
) |
|
$ |
(1,804 |
) |
|
$ |
(6,276 |
) |
|
$ |
(2,566 |
) |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
372 |
|
|
|
310 |
|
|
|
971 |
|
|
|
1,041 |
|
|
Interest expense |
|
|
440 |
|
|
|
329 |
|
|
|
1,197 |
|
|
|
529 |
|
|
Tax expense |
|
|
13 |
|
|
|
30 |
|
|
|
48 |
|
|
|
94 |
|
|
Non-GAAP EBITDA |
|
|
(1,528 |
) |
|
|
(1,135 |
) |
|
|
(4,060 |
) |
|
|
(902 |
) |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA/Total revenue |
|
|
-10.6 |
% |
|
|
-8.2 |
% |
|
|
-9.5 |
% |
|
|
-2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP ADJUSTED EBITDA CALCULATION |
|
|
|
|
|
|
|
|
|
Non-cash compensation |
|
|
640 |
|
|
|
580 |
|
|
|
1,825 |
|
|
|
1,501 |
|
|
Separation-related expenses |
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
Litigation reserve |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
550 |
|
|
Non-GAAP Adjusted EBITDA |
|
$ |
(888 |
) |
|
$ |
(555 |
) |
|
$ |
(2,232 |
) |
|
$ |
1,149 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted EBITDA/Total revenue |
|
|
-6.1 |
% |
|
|
-4.0 |
% |
|
|
-5.2 |
% |
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Xtant Medical (AMEX:XTNT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Xtant Medical (AMEX:XTNT)
Historical Stock Chart
From Sep 2023 to Sep 2024