Full Press Release Details
Medical Reports Record $22.3 Million Revenue and 14.1% Growth for the Fourth Quarter 2015
See footnote about the use of pro forma financial
Consolidated total revenue increased 14.1% to a record $22.3 million compared
to pro forma fourth quarter 2014 revenue of $19.5 million
profit increased 14.9%
forma fourth quarter 2014 gross profit of $13.0
the fourth quarter of 2014
Consolidated net income for the quarter improved to $11.6 million compared to a
Consolidated earnings
total revenue increased
pro forma 2014 revenue of $77.7
gross profit increased
pro forma 2014 gross profit of $51.2
of $15.6 million in 2014
BELGRADE, Mont., March 15, 2016 (GLOBE NEWSWIRE)
-- Xtant Medical Holdings, Inc. (NYSE:XTNT), a leader in the development of
regenerative medicine products and medical devices, today reported its financial results for the period ended December 31st, 2015.
On a pro forma basis, the Company reported annual revenues
of approximately $86.5
approximately $5.8 million.
Consolidated fourth quarter 2015 revenue was
approximately $22.3 million, an increase of 14.1% compared to pro forma revenue of approximately $19.5 million for the same period
Pro forma revenue for the full year 2015 was
approximately $86.5 million, compared to pro forma 2014 revenue of approximately $77.7 million, representing an increase of 11.4%
over the prior year. Excluding revenue associated with an Original Equipment Manufacturer (OEM) customer, pro forma full year 2015
revenue increased 14.8% to $81.4 million.
| FY '14 | FY '15 | |||||||
| Pro Forma Revenue | $ | 77,651 | $ | 86,518 | ||||
| Growth | 11.4 | % | ||||||
| Pro Forma OEM Revenue | $ | 6,751 | $ | 5, 81,425 | ||||
| Pro Forma Revenue Excluding OEM | $ | 70,900 | $ | 81,425 | ||||
| Growth | 14.8 | % |
Consolidated gross profit for the fourth quarter
of 2015 was $14.9 million or 67.0% of revenues, compared to pro
For the year, pro forma gross profit was approximately
$56.6 million, compared with pro forma 2014 gross profit of $51.2 million. Pro forma gross margin for the year was 65.4%, slightly
lower than 2014 pro forma gross margin of 66.0%
Consolidated fourth quarter 2015 sales and marketing
expenses increased to $10.6 million, as compared to pro forma sales and marketing expenses of $9.3 million during the same period
in 2014. For the quarter, sales and marketing as a percentage of revenues increased slightly to 47.6%, compared to 47.4% in the
fourth quarter of 2014, on a pro forma basis.
Pro forma 2015 sales and marketing expenses
increased to $39.3 million, as compared to pro forma 2014 sales and marketing expenses of $33.3 million. As a percentage of revenues,
sales and marketing expenses increased to 45.5% compared to 42.9% reported for the full year 2014. The increase was mainly due
to the Company's planned and strategic expansion of its salesforce, combined with its acquisition of X- spine during the third
and Administrative Expenses
In the fourth quarter, consolidated general
and administrative expenses increased to $4.2 million as compared to pro forma general and administrative expenses of $3.3 million
reported for the same period last year. As a percentage of revenues, general and administrative expenses were 18.9% during the
period as compared to 16.7% for the same period during 2014. The increase in general and administrative expenses was primarily
attributable to increased headcount for the X-spine subsidiary.
Pro forma 2015 general and administrative expenses
increased to $16.6 million as compared with $13.9 million reported for the same pro forma period last year. As a percentage of
revenues, general and administrative expenses were 19.2% as compared to 17.9% for 2014.
The fourth quarter 2015 consolidated net income
was $11.6 million, compared to the pro forma year-ago period net loss of $5.0 million. The increase was primarily due to a one-time
recording of a deferred tax benefit of $17.5 million. Consolidated earnings per share improved to $0.97 compared to pro forma loss
per share of $0.35 in the fourth quarter of 2014.
For the full-year 2015, the Company had a pro
forma net loss of $5.8 million compared to a pro forma net loss of $15.6 million for 2014. Pro forma net loss per share for the
full-year 2015 was $0.65 a share compared to pro forma net loss per share of $1.11 for 2014.
The Company defines earnings before interest,
taxes, depreciation and amortization ("EBITDA") as net income/loss from operations before depreciation, amortization,
impairment charges, non-recurring expenses and non-cash stock-based compensation. Consolidated EBITDA for the fourth quarter of
2015 was a loss of $350,000 compared to a pro forma gain of $403,000 for the same period during 2014. The unfavorable change in
EBITDA was due to higher sales and marketing and general and administrative expenses.
Full year 2015 pro forma EBITDA was a loss of
$33,000 compared to a pro forma gain of $3.9 million in the prior year.
Cash on hand as of December 31, 2015, was $6.4
million, as compared to $4.5 million as of December 31, 2014. Net working capital as of December 31, 2015 increased $13.3 million
to $23.9 million, as compared to $10.6 million as of December 31, 2014.
The Company also provided full year 2016 revenue
guidance based on the following:
| Stated in 000's | 2014 | 2015 | 2016 Guidance | |||||||||
| Pro Forma Revenue | $ | 77,651 | $ | 86,518 | $94,000 - $99,000 | |||||||
| Growth | 11.4 | % | 8.7% - 14.4% | |||||||||
| Pro Forma Revenue | $ | 6,751 | $ | 5,093 | $250 - $500 | |||||||
| Pro Forma Revenue Excluding OEM | $ | 70,900 | $ | 81,425 | $93,750 - $98,500 | |||||||
| Growth | 14.8 | % | 15.1% - 21.0% | |||||||||
| EBITDA | $ | 3,854 | $ | (33 | ) | $4,300 - $6,300 |
Call to be Held March 16,
An accompanying conference call will be 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 March 16, 2016. Please refer
below for conference
call dial-in information
and webcast registration.
Date: March 16, 2016, 10:00 AM
Dial-in: 877-269-7756
Dial-in: 201-689-7817
Call Name: Xtant Medical's Fourth Quarter 2015 Results Call
Registration: Click Here
Following the live call, a replay will be available
on the Company's website, www.xtantmedical.com, under "Investor
Pro Forma Financial Information
On July 31, 2015, Bacterin International Holdings, Inc.
acquired all of the issued and outstanding stock of X- Spine Systems, Inc. and the combined company was renamed Xtant Medical
Holdings, Inc. Except for the financial results
months ended December
results presented are
forma basis as if the two companies were combined for the periods shown. Certain pro forma adjustments have been made to
reflect the impact of the purchase transaction, primarily consisting of amortization of intangible assets with determinable lives
and interest expense on long-term debt. In addition, certain historical expenses, such as warrant expense and interest expense
associated with debt that was immediately repaid, were eliminated from these pro-forma results. The pro forma information does
not necessarily reflect the actual results of operations had the acquisition been consummated at the beginning of the fiscal reporting
period indicated nor is it indicative of future operating results. The pro forma information does not include any adjustment for
potential revenue enhancements, cost synergies or other operating efficiencies that could result from the
Additional information regarding the business
combination and its impact on the Company's financial position will be set forth in the Company's Form 10-K for the
fiscal year ended December 31, 2015, which will be filed with the Securities and Exchange Commission on or about March 30, 2016
and will include the Company's audited consolidated financial statements as of and for the years ended December 31, 2015