Full Press Release Details
Bacterin Announces Record
2011 Revenue of $30.1 Million; Up 96% Year-over-Year
Conference Call at 4:30pm ET to Discuss Full Year and
Fourth Quarter 2011 Results
BELGRADE, Mont. March
22, 2012 - Bacterin International Holdings, Inc. (NYSE Amex: BONE), a leader in the development of revolutionary bone graft material
and antimicrobial coatings for medical applications, today announced its financial results for the fourth quarter and full year
ended December 31, 2011:
Fourth Quarter 2011 Highlights:
Full Year 2011 Highlights:
Management Commentary
"We increased our revenue on a quarterly basis by 21% sequentially,
72% year over year, and 96% for the full year 2011 over the full year 2010, showing accelerating progress," said Guy Cook,
Bacterin's chairman and CEO. "While our full year gross margin slid to 70% primarily due to increased discounting on stocking
purchase orders and non recurring adjustments and increased reserves , we are poised for overall operating margins to expand considerably
as we gain operating leverage from our sales force and largely established infrastructure."
"This quarter, we received further validation of OsteoSponge
from an important two-year study, showing equivalence to rhBMP-2 in spinal fusion," Mr. Cook continued. "We expect
sales to grow even more rapidly on the back of this strong data set. We also signed a distribution agreement with Jeil Medical
Corporation that will leverage our direct sales force, providing additional craniomaxillofacial (CMF) product, to sell into the
"Our products target markets that in aggregate amount
to several billion dollars in annual revenue, which provides significant runway for us to capture share and grow quickly,"
Mr. Cook added. "Our proprietary processing technology is also a unique asset that we believe provides shareholder value.
The key driver of our revenue growth in 2012 will once again be the Osteo family of products, supported by the acceleration of
hMatrix, medical device, and royalty revenue. With an increase in our sales force, the new data validation and distribution agreement
adding even more product to sell, we remain comfortable with our previously stated expectation of $53 million to $56 million in
Q4 2011 Financial Results
Revenue for the quarter was a record $9.1 million, up 21% from
the previous quarter, and an increase of 72% compared to $5.3 million in the fourth quarter of 2010. The increase in revenue was
primarily attributed to the company's continued market penetration, driven by unique product benefits for both the patient and
medical care provider, combined with the continued expansion of the company's direct sales force.
Cost of sales in the fourth quarter included the following:
Fourth Quarter 2011 EBITDA loss was $1.5 million compared to
an EBITDA loss of $316,000 in the prior quarter and an EBITDA loss of $2.7 million in the fourth quarter of 2010. Excluding the
non-recurring write off of the West Coast Tissue Accounts Receivable of $795,000 and inventory reserve and write offs of $400,000,
fourth quarter 2011 negative EBITDA was $354,000, unchanged from the prior quarter. This was largely due to an increase in our
allowance for doubtful accounts on a stocking order sale made in 2011.
Gross profit margin for the quarter was 44%, as compared to
83% in the previous quarter and 82% in the year-ago quarter. Excluding the above adjustments, Q4 2011 gross margin would have been
58% of sales. The decrease in Q4 2011 gross margin (excluding the above items) compared to prior quarters is due to an increased
sales discount on $1.4 million of stocking order sales during the quarter and the increase of corporate general and administrative
expenses allocated to cost of sales due to increased production.
Operating expenses for the quarter totaled $6.7 million, as
compared to $7.8 million in the previous quarter, and $7.1 million in the fourth quarter of 2010. Operating loss for the quarter
was $2.7 million, compared to $1.6 million in the previous quarter, and $3.4 million in the fourth quarter of 2010. Net loss was
$4.4 million or $(0.11) per basic share for the quarter. This compares to a net loss of $3.2 million or $(0.08) per basic share
in the previous quarter, and a net loss in fourth quarter of 2010 of $6.7 million or $(0.18) per basic share.
Cash and cash equivalents and net accounts receivable was $7.8
million at December 31, 2011, compared to a total of $3.8 million at December 31, 2010.
Full Year Financial Results
Revenue for the year ended December 31, 2011 was a record $30.1
million, up 96%, compared to $15.4 million for the full year in 2010. Gross profit margin was 70%, compared to 78% in the previous
year. Excluding the cost of sales adjustments, FY 2011 gross margin would have been 74% of sales. Operating expenses for the year
totaled $27.5 million, compared to $20.7 million in the previous year. Operating loss for the year was $6.5 million, compared to
$8.6 million in the previous year. Net loss was $3.0 million or $(0.08) per basic share for the year. This compares to a net loss
of $19.5 million or $(0.61) per basic share for the previous year.
EBITDA for the year totaled a loss of $3.0 million, compared
EBITDA loss of $5.8 million in 2010.
Conference Call Details:
Date: Thursday, March 22, 2012
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-877-941-1427
International: 1-480-629-9664
Conference ID#: 4519974
The conference call will be broadcast simultaneously and available
for replay here and at the investor section of the company's Web site at http://www.bacterin.com/index.htm.
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference
call, please contact Hayden IR at 1-646-755-7412.
A replay of the call will be available after 7:30 p.m. Eastern
time on the same day and until April 22, 2012.
About the Presentation of EBITDA
EBITDA is not a financial measure calculated and presented in
accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income,
operating income or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating
activities as a measure of liquidity. The company defines EBITDA as net income/(loss) from operations before depreciation, amortization
and non-cash stock-based compensation. Other companies (including competitors) may define EBITDA differently. The company presents
EBITDA because management believes it to be an important supplemental measure of performance that is commonly used by securities
analysts, investors and other interested parties in the evaluation of companies in our industry. Management also uses this information
internally for forecasting and budgeting. It may not be indicative of the historical operating results of Bacterin nor is it intended
to be predictive of potential future results. Investors should not consider EBITDA in isolation or as a substitute for analysis
of the company's results as reported under GAAP. See "GAAP to non-GAAP Reconciliation" below for further information
on this non-GAAP measure.
Bacterin International
of Net (Loss) Income From Operations to EBITDA
| Three Months Ended | Three Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||
| 31-Dec-11 | 31-Dec-10 | 31-Dec-11 | 31-Dec-10 | |||||||||||||
| Net Loss from operations | (2,668,540 | ) | (3,385,759 | ) | (6,450,468 | ) | (8,614,156 | ) | ||||||||
| Depreciation | 220,128 | 140,219 | 755,387 | 633,827 | ||||||||||||
| Option compensation | 321,695 | 177,916 | 1,030,400 | 605,113 | ||||||||||||
| Non cash stock comp | 578,003 | 332,453 | 1,675,008 | 1,560,324 | ||||||||||||
| (1,548,714 | ) | (2,735,171 | ) | (2,989,673 | ) | (5,814,892 | ) |
About Bacterin International
Bacterin International
Holdings, Inc. (NYSE Amex: BONE) develops, manufactures and markets biologics products to domestic and international markets. Bacterin's
proprietary methods optimize the growth factors in human allografts to create the ideal stem cell scaffold to promote bone, subchondral
repair and dermal growth. 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.
Device division develops, employs, and licenses bioactive coatings for various medical device applications. Bacterin's strategic
coating initiatives include antimicrobial coatings designed to inhibit biofilm formation and microbial contamination. For further
information, please visit www.bacterin.com.
Regarding Forward-looking Statements
This news release contains
certain disclosures that may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995 that are subject to significant risks and uncertainties. Forward-looking statements include statements that are predictive