Full Press Release Details
Reports First Half 2015 Financial Results
First Half Xtant(TM) Medical Pro Forma Combined 2015
BELGRADE, Mont., Aug. 12, 2015 (GLOBE NEWSWIRE) - Xtant Medical
Holdings, Inc. (OTCQX:BONE), formerly Bacterin International Holdings, Inc., a leader in the development of class-leading regenerative
medicine products and medical devices, today reported stand alone financial results for the second quarter of 2015 and pro forma
combined results for the six months ended June 30, 2015.
Pro Forma Combined First Half 2015 Results
First half 2015 pro forma combined revenue was approximately $43.4
million, an increase of 12.6% compared to approximately $38.5 million for the same period during 2014. The higher revenues reflect
increased penetration of targeted markets and an increase in internal and external sales resources compared to prior periods.
Gross Profit and Gross Margin
Combined gross profit for the first half of 2015 was $28.0 million
or 64.6% of revenues, compared to $24.5 million or 63.6% of revenues for the first half of 2014, a gross profit improvement of
14.3%. The higher gross margin reflects the combination of Bacterin and X-spine, and continued respective sales mix and operational
improvements compared to prior periods.
Loss from Operations
Pro forma first half 2015 loss from operations was approximately
$3.4 million, compared to a pro forma operating loss of $1.6 million in the first half 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. Pro forma combined company EBITDA for the first half of 2015 was $1.2 million. On a pro
forma combined basis, during the first quarter of 2015, the combined company incurred approximately $700,000 of one time, non-recurring
expenses. Excluding this figure, EBITDA for the first half of 2015 would have been approximately $1.9 million.
Financial Resources and Liquidity
Concurrent with the acquisition of X-spine, the Company completed
an offering of $65 million aggregate principal amount of 6% convertible senior unsecured notes due 2021. The initial conversion
price of the notes is approximately $3.88 per share.
In addition, the Company refinanced its existing senior secured
$24 million term loan with affiliates of Orbimed Advisors and borrowed an additional $18 million under an amended and restated
credit agreement. Interest at approximately 15% per annum is bifurcated into cash payments and payments in kind at different percentages
throughout the term of the loan. No principal payments are due until the maturity of the loan, on July 31, 2020.
On July 31, 2015, after payment of the acquisition consideration
and expenses related to the acquisition and financing transactions referenced above, we received net proceeds of approximately
$5.6 million which will be used for general corporate and working capital purposes.
On August 10, 2015, the Company received a notice from Leerink Partners,
LLC of their intention to partially exercise their over allotment option to purchase an additional $3.0 million aggregate principal
amount of our convertible notes.
As of June 30, 2015, cash and cash equivalents were $2.0 million.
On a combined basis, cash and cash equivalents including the proceeds from the convertible debt offering and partial over allotment
option were approximately $10.4 million.
2015 and 2016 Company Guidance
For the second half of 2015, the Company has updated its guidance
to reflect its recent acquisition of X-spine. The Company is providing second half 2015 revenue guidance for the combined company
in the range of $43 million to $46 million and second half 2015 EBITDA guidance within the range of $2.0 million and $2.5 million,
excluding one time, non-recurring transaction expenses.
For full year 2016, the Company is projecting revenues in the range
of $100 million to $105 million and EBITDA of approximately $7.0 to $9.0 million.
Second Quarter 2015 Bacterin Results
Second quarter 2015 revenue for Bacterin was approximately $9.9
million, an increase of 11.4% compared to approximately $8.9 million for the same period during 2014. Sequentially, revenues increased
4.1% compared to the first quarter of 2015. The higher revenues reflect increased penetration of targeted markets and an increase
in internal and external sales resources compared to prior periods.
Gross Profit and Gross Margin
Gross profit for Bacterin in the second quarter of 2015 was $6.5
million or 66% of revenues, compared to $5.6 million or 63% of revenues for the second quarter of 2014. Bacterin's reported gross
profit for the quarter improved 16.5% compared to the second quarter of 2014 and 8.1% compared to the first quarter of 2015.
Loss from Operations
The second quarter 2015 loss from operations was approximately $1.4
million, compared to approximately $1.3 million in the second quarter of 2014. The increased loss primarily reflects increased
sales and marketing expenses associated with the Company's ongoing execution of its strategy to increase and enhance field sales
assets to drive future revenue growth.
The reported second quarter 2015 net loss for Bacterin was approximately
$2.9 million, or ($0.41) per share.
The Company also announced that it will hold a conference call 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 August 13, 2015. Please refer to the information below for conference call dial-in information and webcast
Conference date: August 13, 2015, 10:00 AM ET
Conference dial-in: 877-269-7756
International dial-in: 201-689-7817
Conference Call Name: Xtant Medical Holdings, Inc. Second Quarter 2015 Results Call
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 Xtant Medical Holdings
Xtant Medical Holdings, Inc. (OTCQX:BONE) develops, manufactures
and markets class-leading 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, 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.
Important Cautions Regarding Forward-looking Statements
This press 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