Full Press Release Details
Bacterin Announces Fourth Quarter and
Year-End 2014 Results
Fourth Quarter Highlights:
BELGRADE, Mont., March 17, 2015 (GLOBE NEWSWIRE) -- Bacterin
International Holdings, Inc. (NYSE MKT:BONE), a leader in the development of bone graft material, today reported financial results
for the fourth quarter and full year ended December 31, 2014. The Company reported annual revenues of approximately $35.3 million
and a net loss for the year of approximately $10.5 million, or ($1.76) per common share.
Fourth quarter 2014 revenue was approximately $9.1 million,
an increase of 10.0% compared to approximately $8.3 million for the same period during 2013. Sequentially, fourth quarter 2014
revenue increased 7.4% over third quarter 2014 revenue of $8.5 million.
The reported fourth quarter 2014 revenue figure represents the
fifth consecutive quarter of increased year-over-year revenue growth since Dan Goldberger joined Bacterin as Chief Executive Officer
"We have transitioned from a turn around project to a revenue
growth story," said Mr. Goldberger. "New sales leadership joined the company in the second half of 2014 and we plan to
continue increasing the number of sales assets representing Bacterin products in the field throughout 2015 in order to accelerate
our future revenue growth."
Revenue for the full year 2014 was approximately $35.3 million,
compared to approximately $33.1 million reported for full year 2013, representing an increase of 6.8% over the prior year.
Gross profit for the fourth quarter of 2014 was $5.8 million
or 63.5% of revenues, compared to $4.1 million or 49.5% of revenues for the fourth quarter of 2013.
For the year, gross profit was approximately $22.3 million,
compared to $18.9 million in 2013. Gross margin for the year was 63.1%, which compares to a gross margin of 57.1% reported for
The increase in gross profit and gross margins are the result
of an increased focus on operations which has yielded improved manufacturing efficiencies. Management expects Gross Margins for
2015 to be between 61.0% and 63.0%.
Sales and Marketing Expenses
Fourth quarter 2014 sales and marketing expenses increased to
$4.5 million, as compared to $4.0 million during the same period in 2013. For the quarter, sales and marketing as a percentage
of revenues increased to 49.8%, compared to 48.0% in the fourth quarter of 2013 due to increases in sales and marketing headcount
between the two periods.
Full-year 2014 sales and marketing expenses increased to $16.9
million, as compared to $16.0 million for 2013. As a percentage of revenues, sales and marketing expenses decreased to 47.9% compared
to 48.4% reported for the full year 2013.
General and Administrative Expenses
In the fourth quarter, general and administrative expenses decreased
to $2.2 million as compared to $2.6 million reported for the same period last year. As a percentage of revenues, general and administrative
expenses were 24.5% during the period as compared to 30.9% for the same period 2013.
Full year 2014 general and administrative expenses decreased
to $8.9 million as compared to $10.2 million reported for the same period last year. As a percentage of revenues, general and administrative
expenses were 25.2% as compared to 30.9% for 2013.
Loss from Operations before impairment
The fourth quarter 2014 loss from operations before impairment
was approximately $1.6 million, compared to approximately $2.8 million in the fourth quarter of 2013.
Full-year 2014 loss from operations before impairment was approximately
$5.4 million compared to a 2013 loss from operations before impairment of approximately $8.3 million.
Loss from Operations after impairment
During the fourth quarter of 2014, the Company made the strategic
decision to discontinue its Cranial Maxillofacial Fixation (CMF) and coatings product lines since they are not integral to the
Company's core strategy and represent an immaterial portion of the Company's current revenue stream. In connection with this decision,
the Company reported a one-time, non-recurring impairment charge of approximately $913,000 during the fourth quarter of 2014. In
the fourth quarter of 2013, the Company recorded an impairment charge of approximately $729,000 associated with the write off of
goodwill from a previous acquisition.
The fourth quarter 2014 loss from operations after impairment
was approximately $2.5 million compared to $3.6 million for the prior year.
For full-year 2014, the Company reported an operating loss after
impairment of approximately $6.3 million, compared to $9.0 million for 2013.
The reported fourth quarter 2014 net loss was $3.3 million,
a 20.7% decrease from the year-ago period operating loss of $4.2 million.
For the full-year 2014, the Company reported a net loss of $10.5
million compared to $12.7 million for 2013. Net loss per share for the full-year 2014 was $1.76 a share compared to a net loss
per share of $2.80 for 2013.
The Company defines earnings before interest, taxes, depreciation
and amortization ("EBITDA") as net income/loss from operations before depreciation, amortization, impairment charges
and non-cash stock-based compensation. EBITDA for the fourth quarter of 2014 was a loss of $1.1 million compared to a loss of $1.6
million for the same period during 2013.
Full year 2014 EBITDA was a loss of $3.5 million compared to
an EBITDA loss of $5.8 million in the prior year.
Cash, cash equivalents and net accounts receivable were $8.9
million on December 31, 2014.
In addition, the Company entered into a common stock purchase
agreement on March 16, 2015 with Aspire Capital Fund, LLC, a Chicago based investment fund. The agreement provides that once the
Company receives additional listing approval from the NYSE MKT, Aspire Capital shall purchase $750,000 of unregistered common shares.
The Company can, from time to time, elect to sell to Aspire Capital up to $10 million of common shares over a two-year period.
The sale price of common shares purchased by Aspire Capital from the Company will be based upon the market price of our common
stock at the time of each sale. The Company may not sell any additional shares to Aspire Capital until a registration statement
related to the transaction has been declared effective by the U.S. Securities & Exchange Commission. No warrants were issued
in connection with the transaction. Please refer to the Company's Current Report on Form 8-K filed concurrently with this press
release for a copy of the agreements associated with this transaction. The Company believes the agreement with Aspire Capital provides
flexibility in obtaining working capital under terms which are less dilutive to common shareholders compared to other available
options at this time. The Company does not presently intend to sell additional shares to Aspire Capital. However, the Company will
evaluate market conditions and may sell additional shares opportunistically to Aspire Capital following NYSE MKT approval and after
a registration statement has been declared effective.
Full Year 2015 Guidance
Based on the planned growth of the Company's hybrid salesforce,
combined with new product launches, the Company currently anticipates 2015 full-year revenue to be in the range of $40 million
to $42 million compared to $35.3 million reported for 2014.
Conference date: March 18, 2015, 10:00 AM ET
Conference dial-in: 877-269-7756
International dial-in: 201-689-7817
Conference Call Name: Bacterin's Fourth Quarter 2014
Webcast Registration: Click Here
Following the live call, a replay will be available on the Company's
website, www.bacterin.com, under "Investor Info."
About Bacterin International Holdings
Bacterin International Holdings, Inc. (NYSE MKT:BONE) develops,
manufactures and markets biologics products to domestic and international markets. These products are used in a variety of applications
including enhancing fusion in spine surgery, relief of back pain, promotion of bone growth in foot and ankle surgery, promotion
of cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.
For further information, please visit www.bacterin.com.
Important Cautions Regarding Forward-looking Statements