Full Press Release Details
Medical Announces First Quarter 2021 Financial Results
MT, May 11, 2021 - 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 first quarter ended March 31,
Quarter 2021 Financial Highlights:
| Revenue for the first quarter of 2021 totaled $12.5 million, compared to $14.8 million for the prior-year period | ||
| Operating expenses in the first quarter of 2021 totaled $8.1 million, compared to $11.0 million for the prior-year period | ||
| Loss from operations totaled $5,000 compared to an operating loss of $1.4 million for the prior-year period | ||
| Net loss incurred in the first quarter of 2021 totaled $29,000 compared to a net loss of $2.5 million for the prior-year period | ||
| Non-GAAP Adjusted EBITDA for the first quarter of 2021 totaled $0.8 million, compared to $0.3 million for the prior-year period | ||
| Received net cash proceeds of approximately $18.4 million from a private placement to a single healthcare-focused institutional investor | ||
| Recently closed $20 million debt refinancing with MidCap Financial |
continued to navigate through challenging conditions as COVID-19 had a significant impact on elective spinal procedures in January and
February in our two largest markets, which represent nearly one-third of our revenue. Since then, we have seen a significant uptick in
elective surgeries in both March and April, and are cautiously optimistic that this trend will continue in the months ahead," said
Sean Browne, President and CEO of Xtant Medical. "With a renewed focus on innovative product introductions and expansion of our
distribution network, we remain committed to driving our overall commercial performance."
the first quarter, we raised $18.4 million in net cash proceeds from a private placement, providing the resources needed
to invest in growth. We also recently announced a new five-year, $12 million secured term loan facility and an $8 million secured
revolving credit facility, providing us with additional capital resources. We believe our improved balance sheet and stronger
operating position will enable us to execute on our future growth opportunities," Mr. Browne added.
Quarter 2021 Financial Results
quarter 2021 revenue was $12.5 million, compared to $14.8 million for the same period in 2020. The decline in revenue was largely attributed
to the impact of COVID-19 on the occurrence of elective procedures.
profit for the first quarter of 2021 was 64.5%, compared to 65.0% for the same period in 2020. The reduction in gross profit was primarily
attributable to diminished economies of scale, partially offset by reduced depreciation expense.
expenses for the first quarter of 2021 totaled $8.1 million, compared to $11.0 million for the first quarter of 2020. The decrease was
primarily due the result of reduced sales commissions due to lower sales and lower levels of salaries and wages, severance expense, costs
related to enterprise resource planning system upgrades, and research and development expenses compared to the prior-year period.
quarter 2021 net loss totaled $29,000 or $0.00 per share, compared to the first quarter 2020 net loss of $2.5 million, or $0.19 per share.
Adjusted EBITDA for the first quarter of 2021 totaled $0.8 million, compared to $0.3 million for the same period in 2020. 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 and separation related expenses. A calculation
and reconciliation of Adjusted EBITDA to net loss can be found in the attached financial tables.
Annual Meeting of Stockholders
Company also announced that its Board of Directors established July 27, 2021 as the date of the Company's 2021 Annual Meeting of
Stockholders. The exact time and location of the meeting will be specified in the Company's proxy statement for the meeting, which
it anticipates will be printed on or about June 10, 2021 and sent or made available to stockholders commencing on or about June 14, 2021.
previously announced, on May 6, 2021, the Company and its subsidiaries entered into credit agreements with MidCap Financial Trust (MidCap).
The agreements provide for a $12 million secured term loan at an annual rate of 7.00%, plus one-month LIBOR, and an $8 million secured
revolving credit facility at an annual rate of 4.50%, plus one-month LIBOR. Both facilities have a five-year term. These new credit agreements
replace the Company's second amended and restated credit agreement, as subsequently amended, with OrbiMed Royalty Opportunities
II, which was terminated in accordance with its terms and all indebtedness outstanding thereunder, together with all accrued interest
and other fees, were repaid in full with proceeds of loans under the credit agreements. Additional availability under the revolving credit
facility is available for working capital needs and other corporate purposes.
Medical will host a webcast and conference call to discuss the first quarter 2021 financial results on Tuesday, May 11, 2021 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."
Xtant Medical Holdings, Inc.
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.
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.
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.
Statement Regarding Forward-Looking Statements
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 belief that a recent uptick in the number of elective surgeries will continue
and its ability to execute on future growth opportunities. . 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; the ability
to remain competitive; the ability to innovate and develop new products; the ability to engage and retain qualified personnel; the effect
of the COVID-19 pandemic on the Company's business, operating results and financial condition; 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, 2020 filed with the Securities and Exchange Commission (SEC) on February 24, 2021 and subsequent
SEC filings by the Company, including without limitation its most recent Quarterly Report on Form 10-Q for the quarter ended March 31,
2021 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 Carey | |
| Lazar FINN | |
| Ph: 212-867-1762 | |
| Email: david.carey@finnpartners.com |
MEDICAL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
thousands, except number of shares and par value)
| March 31, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 18,643 | $ | 2,341 | ||||
| Trade accounts receivable, net of allowance for credit losses and doubtful accounts of $554 and $653, respectively | 7,027 | 6,880 | ||||||
| Inventories | 21,641 | 21,408 | ||||||
| Prepaid and other current assets | 1,165 | 736 | ||||||
| Total current assets | 48,476 | 31,365 | ||||||
| Property and equipment, net | 4,666 | 4,347 | ||||||
| Right-of -use asset, net | 1,585 | 1,690 | ||||||
| Goodwill | 3,205 | 3,205 | ||||||
| Intangible assets, net | 443 | 457 | ||||||
| Other assets | 322 | 402 | ||||||
| Total Assets | $ | 58,697 | $ | 41,466 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,490 | $ | 2,947 | ||||
| Accrued liabilities | 4,569 | 5,462 | ||||||
| Current portion of lease liability | 431 | 423 | ||||||
| Current portion of finance lease obligations | 30 | 20 | ||||||
| Current portion of long-term debt | 16,490 | 16,797 | ||||||
| Total current liabilities | 24,010 | 25,649 | ||||||
| Long-term Liabilities: | ||||||||
| Lease liability, less current portion | 1,192 | 1,303 | ||||||
| Finance lease obligation, less current portion | 129 | - | ||||||
| Total Liabilities | 25,331 | 26,952 | ||||||
| Stockholders' Equity (Deficit) | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | - | - | ||||||
| Additional paid-in capital | 263,731 | 244,850 | ||||||
| Accumulated deficit | (230,365 | ) | (230,336 | ) | ||||
| Total Stockholders' Equity | 33,366 | 14,514 | ||||||
| Total Liabilities & Stockholders' Equity (Deficit) | $ | 58,697 | $ | 41,466 |
MEDICAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
in thousands, except number of shares and per share amounts)
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenue | ||||||||
| Orthopedic product sales | $ | 12,509 | $ | 14,735 | ||||
| Other revenue | 33 | 43 | ||||||
| Total revenue | 12,542 | 14,778 | ||||||
| Cost of sales | 4,451 | 5,165 | ||||||
| Gross profit | 8,091 | 9,613 | ||||||
| Gross profit % | 64.5 | % | 65.0 | % | ||||
| Operating expenses | ||||||||
| General and administrative | 3,027 | 4,318 | ||||||
| Sales and marketing | 4,855 | 6,413 | ||||||
| Research and development | 214 | 245 | ||||||
| 8,096 | 10,976 | |||||||
| Loss from operations | (5 | ) | (1,363 | ) | ||||
| Other income | ||||||||
| Interest expense | (1 | ) | (1,108 | ) | ||||
| Total Other Expense | (1 | ) | (1,108 | ) | ||||
| Net Loss from Operations Before Provision for Income Taxes | (6 | ) | (2,471 | ) | ||||
| Provision for income taxes | ||||||||
| Current and deferred | (23 | ) | (22 | ) | ||||
| Net Loss from Operations | $ | (29 | ) | $ | (2,493 | ) | ||
| Net loss per share: | ||||||||
| Basic | $ | (0.00 | ) | $ | (0.19 | ) | ||
| Dilutive | $ | (0.00 | ) | $ | (0.19 | ) | ||
| Shares used in the computation: | ||||||||
| Basic | 81,248,875 | 13,175,345 | ||||||
| Dilutive | 81,248,875 | 13,175,345 |
MEDICAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (29 | ) | $ | (2,493 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 375 | 685 | ||||||
| Gain on disposal of fixed assets | (32 | ) | (105 | ) | ||||
| Non-cash interest | - | 1,101 | ||||||
| Non-cash rent | 3 | 4 | ||||||
| Stock-based compensation | 456 | 269 | ||||||
| Provision for reserve on accounts receivable | (63 | ) | 138 | |||||
| Provision for excess and obsolete inventory | 150 | 31 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (83 | ) | 195 | |||||
| Inventories | (383 | ) | (1,974 | ) | ||||
| Prepaid and other assets | (349 | ) | (340 | ) | ||||
| Accounts payable | (459 | ) | 1,610 | |||||
| Accrued liabilities | (893 | ) | (910 | ) | ||||
| Net cash provided by (used in) operating activities | (1,307 | ) | (1,789 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (542 | ) | (258 | ) | ||||
| Proceeds from sale of fixed assets | 59 | 83 | ||||||
| Net cash used in investing activities | (483 | ) | (175 | ) | ||||
| Financing activities: | ||||||||
| Payments on financing leases | (25 | ) | (34 | ) | ||||
| Payments on long-term debt | (308 | ) | - | |||||
| Proceeds from private place, net of cash issuance costs | 18,425 | - | ||||||
| Net cash provided by (used in) financing activities | 18,092 | (34 | ) | |||||
| Net change in cash and cash equivalents | 16,302 | (1,998 | ) | |||||
| Cash and cash equivalents at beginning of period | 2,341 | 5,237 | ||||||
| Cash and cash equivalents at end of period | $ | 18,643 | $ | 3,239 |
MEDICAL HOLDINGS, INC.
OF NON-GAAP CONSOLIDATED EBITDA AND ADJUSTED EBITDA
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Net Loss | $ | (29 | ) | $ | (2,493 | ) | ||
| Depreciation and amortization | 375 | 685 | ||||||
| Interest expense | 1 | 1,108 | ||||||
| Tax expense | 23 | 22 | ||||||
| Non-GAAP EBITDA | 370 | (678 | ) | |||||
| Non-GAAP EBITDA/Total revenue | 3.0 | % | -4.6 | % | ||||
| NON-GAAP ADJUSTED EBITDA CALCULATION | ||||||||
| Stock-based compensation | 456 | 269 | ||||||
| Separation-related expenses | - | 749 | ||||||
| Non-GAAP Adjusted EBITDA | $ | 826 | $ | 340 | ||||
| Non-GAAP Adjusted EBITDA/Total revenue | 6.6 | % | 2.3 | % |