Full Press Release Details
Medical Holdings, Inc. Reports Third Quarter 2015 Results
Third Quarter 2015 Consolidated Pro Forma
Nov. 11, 2015 (GLOBE NEWSWIRE) -- Xtant Medical Holdings, Inc. (NYSE MKT:XTNT), a leader in the development of class-leading
regenerative medicine products and medical devices, today reported consolidated actual and consolidated pro forma financial
results for the third quarter of 2015 and for the nine-months ended September 30, 2015. As previously announced, the Company
completed its acquisition of X-spine Systems, Inc. on July 31, 2015. The consolidated pro forma results are presented as if
the Company's current subsidiaries were combined for all periods presented below.
Consolidated Pro Forma Third Quarter
Consolidated pro forma revenue for the third
quarter 2015 was approximately $20.9 million, an increase of 6.5% compared to approximately $19.6 million for the same period of
2014. During the third quarter of 2015 and 2014, the Company generated approximately $745,000 and $1.9 million, respectively, of
Original Equipment Manufacturer ("OEM") sales from a large orthopedic device manufacturer. Excluding those sales, third
quarter 2015 consolidated pro forma revenue increased approximately 13.8% compared to the same period last year.
| Consolidated Pro Forma Third Quarter 2015 Summary of Revenue | ||||||||||||
| (Stated in $'000's) | ||||||||||||
| 3Q15 | 3Q14 | Growth % | ||||||||||
| Biologics | $ | 9,761 | $ | 8,454 | 15.5 | % | ||||||
| Fixation (excluding OEM) | $ | 10,396 | $ | 9,256 | 12.3 | % | ||||||
| Consolidated Pro Forma Revenue (excluding OEM) | $ | 20,157 | $ | 17,710 | 13.8 | % | ||||||
| OEM | $ | 745 | $ | 1,909 | -61 | % | ||||||
| Consolidated Pro Forma Revenue | $ | 20,902 | $ | 19,619 | 6.5 | % |
For the nine-months ended September 30, 2015,
consolidated pro forma revenue was approximately $64.4 million, an increase of $6.3 million or 10.8% compared to $58.1 million
reported for the same period of 2014. Excluding OEM revenue, revenue increased 15.0% compared to the same period last year.
Gross Profit and Gross Margin
Consolidated pro forma gross profit for the
third quarter of 2015 was approximately $13.7 million or 65.5% of revenue compared to $13.2 million or 67.3% of revenue reported
for the same period of 2014. Gross margin was at the high end of company guidance of 64% to 66%.
For the nine-months ended September 30, 2015,
consolidated pro forma gross margin was 65.7% compared to 65.8% in the prior year.
Loss from Operations
Consolidated pro forma loss from operations
for the third quarter of 2015 was approximately $3.5 million compared to a loss of approximately $1.4 million for the same period
of 2014. The loss for the period also includes approximately $610,000 of non-recurring general and administrative expenses and
a non-cash impairment charge of $234,000 on net carrying value of pre-acquisition intangible assets.
For the nine-months ended September 30, 2015,
on a consolidated pro forma basis, the Company's loss from operations was approximately $7.1 million compared to $3.3 million for
the same period of 2014.
On a consolidated pro forma
basis, the company had a net loss of approximately $5.4 million and $16.1 million for the three months and nine months ended September
30, 2015, respectively, as compared to approximately $2.8 million and $11.3 million, respectively, for the same periods of 2014.
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. On a pro forma combined basis, third quarter 2015 EBITDA loss was approximately
$915,000. Excluding the non-recurring increase
in general and administrative expenses referenced above, third quarter 2015 combined EBITDA loss was approximately $305,000.
Financial Resources and Liquidity
As of September 30, 2015, the Company reported
cash and cash equivalents of approximately $8.0 million. On September 4, 2015, the company sold 140,053 shares of restricted common
stock to certain members of the Company's board of directors in a private placement transaction at $3.68 per share, which was the
closing price on that date. Total proceeds were approximately $516,000.
The Company believes its cash resources are sufficient
to execute its strategy through December 31, 2016.
2015 and 2016 Company Guidance
The Company reiterates its 2015 revenue guidance
to be within the range of $43 to $46 million for the second half of 2015 and second half 2015 EBITDA guidance to be in the range
of $2.0 to $2.5 million, excluding one-time, non-recurring expenses. The Company also reiterates its 2016 revenue guidance of approximately
$100 million to $105 million and EBITDA guidance of approximately $7.0 to $9.0 million.
Actual Results for the Three Months ended
The actual operating results of Xtant Medical
Holdings, Inc presented below and to be reported in the Company's Quarterly Report on Form 10-Q include three months of operating
results for Bacterin International, Inc. and two months of operating results for X-spine Systems, Inc.
In connection with the acquisition of X-spine,
the Company recorded approximately $3.9 million of acquisition and integration related expenses during the third quarter of 2015.
Additional integration related expenses are expected during the fourth quarter of 2015 and first half of 2016.
The Company also reported
a one-time gain on the extinguishment of debt of approximately $2.3 million associated with the refinancing and restructuring of
the Company's senior secured term loan with an affiliate of Orbimed Advisors as part of the acquisition financing.
The company will also hold a conference hosted
by Dan Goldberger, Chief Executive Officer, and John Gandolfo, Chief Financial Officer, to discuss the results. The call will be
held at 10:00 AM ET, on November 12, 2015. Please refer to the information below for conference call dial-in information and webcast
Conference date: November 12, 2015, 10:00
Conference dial-in: 877-269-7756
International dial-in: 201-689-7817
Call Name: Xtant Medical Holdings, Inc. Third Quarter 2015 Results Call
Registration: Click Here
the live call, a replay will be available on the Company's website, www.xtantmedical.com, under "Investor Info".
About Xtant Medical Holdings
Medical Holdings, Inc. (NYSE MKT:XTNT) develops, manufactures and markets regenerative medicine products and medical devices for
domestic and international markets. Xtant products serve the specialized needs of orthopedic and neurological surgeons, including
orthobiologics for the promotion of bone healing, implants and instrumentation for the treatment of spinal disease, tissue grafts
for the treatment of orthopedic disorders, and biologics to promote healing following cranial, and foot and ankle surgeries. With
core competencies in both biologic and non-biologic surgical technologies, Xtant can leverage its resources to successfully compete
in global neurological and orthopedic surgery markets. For further information, please visit www.xtantmedical.com.
Regarding Forward-looking Statements
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 in nature, that depend upon or refer to future events or conditions, or that include
words such as "continue," "efforts," "expects," "anticipates," "intends,"
"plans," "believes," "estimates," "projects," "forecasts,"
"strategy," "will," "goal," "target," "prospects," "potential,"
"optimistic," "confident," "likely," "probable" or similar expressions or the
negative thereof. Statements of historical fact also may be deemed to be forward-looking statements. We caution that these
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 ability to successfully integrate the acquisition of X-spine;
the ability of the Company's sales force to achieve expected results; the Company's ability to meet its existing
and anticipated contractual obligations, including financial covenant and other obligations contained in the Company's
secured lending facility; the Company's ability to manage cash flow; the Company's ability to develop, market, sell and
distribute desirable applications, products and services and to protect its intellectual property; the ability of the
Company's customers to pay and the timeliness of such payments; the Company's ability to obtain financing as and when needed;
changes in consumer demands and preferences; the Company's ability to attract and retain management and employees with
appropriate skills and expertise; the impact of changes in market, legal and regulatory conditions and in the applicable
business environment, including actions of competitors; and other factors. Additional risk factors are listed in the
Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors." 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.
Pro forma, projected and estimated numbers used