Full Press Release Details
Bacterin International Announces Second Quarter
and Six Months 2012 Financial Results
-Second Quarter Revenue Increases
9% to $8.2 Million Year over Year
-Six Month Revenue Increases
18% to $16.0 Million Year over Year
- Company Exits a Backorder Status
on a Large Production Push, and Expects a Stronger Second Half of 2012
-Company Generates Positive EBITDA
for Q2 on Reduced Operating Expenses and Gross Margins of 72%.
Conference Call at 4:30pm ET to Discuss Second Quarter
BELGRADE, Mont. August
09, 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 second quarter ended June 30,
Management Commentary
"We have already achieved 45% of the low end of our annual
revenue guidance in the first half of this year, said Guy Cook, CEO of Bacterin. "With our backorder behind us, inventory
levels up and planned clean room expansion for Q3, we expect continuing increased revenues in the second half of 2012 enabling
us to achieve our stated 2012 annual revenue guidance. Gross margin of 72% was within our previous guidance and operating expenses
decreased from the 1q of 2012 enabling us to report positive EBITDA for the quarter, and a 54% reduction in EBTIDA loss for the
first half of 2012 compared to the prior periods."
"We expect uptake in the wound care
market for hMatrix to accelerate next year with the expected issuance of a Q code by January 1, 2013. In the interim, we are gaining
traction with our shifted manufacturing and marketing focus, beginning in the second quarter, for hMatrix to address additional
markets in sports medicine and reconstructive surgery.
"OsteoSelect DBM putty is gaining sales momentum, leveraging
recent animal data equivalency to autologous bone graft, the current gold standard for spinal fusion."
"Data for our coatings remains on track for the second
half of this year, as well as independent data on OsteoSponge SC."
Q2 2012 Financial Results
for the quarter was $8.2 million compared to $7.8 million in the previous quarter and an increase of 9.3% compared to $7.5 million
in the second quarter of 2011. The year over year increase was largely the result of increased sales generated from the
Company's direct sales force and independent distributors compared to the second quarter of 2011.
sales consist primarily of tissue and medical device manufacturing costs. Costs of sales increased by 33.7% to $2.3 million
compared to $1.7 million for the three months ended June 30, 2011. The increase was largely the result of increased costs associated
with our higher sales. As a percentage of tissue sales, cost of tissue sales was 28% of revenues for the second quarter of 2012
compared to 23% in the comparable prior year period.
Gross profit margin for the quarter was 72%, as compared to
76% in the previous quarter and 77% in the year-ago quarter.
Operating expenses increased 3%, or $179,869, to $6.2 million
for the three months ended June 30, 2012 compared to the three months ended June 30, 2011.
General and administrative expenses increased 54%, or $814,686,
to$2.3 million, for the three months ended June 30, 2012 compared to the same period of 2011. The increase is primarily due to
higher administrative costs supporting the higher revenue in addition to added rental and maintenance expense for increased operational
As a percentage of revenue, selling and marketing expenses decreased
to 47% in the second quarter of 2012 from 58% in the second quarter of 2011. The decreases were primarily the result of more variable
compensation paid to our direct sales force compared to salaries earned in the comparable period of 2011 and a lower corporate
sales commission structure.
EBITDA for the quarter totaled $8,000, compared an EBITDA loss
of $(541,000) for the previous quarter, and EBITDA of $35,000 for the second quarter of 2011.
YTD 2012 Financial Results
six months ended June 30 2012 increased 18% to $16.0 million compared to $13.5 million in the first half of 2011. The increase
of $2.5 million was largely the result of increased sales generated from our direct sales force and independent distributors compared
to the first half of 2011.
sales consist primarily of tissue and medical device manufacturing costs. Costs of sales increased by 53% or $1.5 million to $4.2
million for the first half of 2012. The increase was largely the result of increased costs associated with our higher sales. As
a percentage of tissue sales, cost of tissue sales was 26% of revenues for the second quarter of 2012 compared to 20% in the comparable
Gross profit margin was 74%, as compared to 80% in the previous
Operating expenses increased 3%, or $414,507, for the six months
ended June 30, 2012 compared to the six months ended June 30, 2011.
General and administrative expenses increased 26%, or $1.0 million,
to $4.9 million, for the six months ended June 30, 2012 compared to the same period of 2011. The increase is primarily due to higher
administrative costs supporting the higher revenue in addition to added rental and maintenance expense for increased operational
As a percentage of revenue, selling and marketing expenses decreased
to 50% in the second half of 2012 from 64% in the first six months of 2011. The decreases were primarily the result of more variable
compensation paid to our direct sales force compared to salaries earned in the comparable period of 2011 and a lower corporate
sales commission structure.
EBITDA loss for the first half of 2012 totaled $(527,497) compared
an EBITDA loss of $(1.1) million for the comparable period of 2011.
Cash and cash equivalents and net accounts receivable was $7.8
million at June 30, 2012, compared to a total of $9.0 million at March 31, 2012.
"We believe that product constraints were a short term
issue we have resolved and that the future and long term opportunity for Bacterin products, in multi-billion dollar addressable
markets, remain very strong."Accordingly, we are reiterating our 2012 revenue guidance of $35 to $40 million.
Conference Call Details:
Conference Call Details:
Date: Thursday, August 9, 2012
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-877-941-1429
International: 1-480-629-9857
Conference ID#: 4557186
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://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 September 9, 2012.
Replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay pin number: 4557186
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