Full Press Release Details
Xtant Medical Reports
Record Fourth Quarter Revenue of $24.5 million, 10% Growth Compared to Prior Year Period See footnote about the use of pro forma
financial information
Fourth Quarter 2016 Highlights:
| - | Consolidated total revenue increased 9.9% to a record $24.5 million compared to fourth quarter 2015 revenue of | |
| - | $22.3 million Consolidated gross profit increased 17.4% to $17.5 million compared to fourth quarter 2015 gross | |
| - | profit of $14.9 million Consolidated gross margins improved to 71.6%, compared to 67.0% reported in the fourth quarter of 2015 |
Full-Year 2016 Highlights:
| - | Consolidated gross profit increased 10.1% to $62.3 million compared to pro forma 2015 gross profit of | |
| - | $56.6 million Consolidated gross margins for the year were 69.2%, compared to pro forma 2015 gross margin of 65.4% |
BELGRADE, Mont., March 9, 2017
(GLOBE NEWSWIRE) -- Xtant Medical Holdings, Inc. (NYSE MKT: XTNT, a leader in the development of regenerative medicine products
and medical devices, today reported its financial results for the period ended December 31st, 2016. The Company reported annual
revenues of approximately $90.0 million and a net loss for the year of approximately $19.5 million.
Consolidated fourth quarter 2016
revenue was approximately $24.5 million, an increase of 9.9% compared to revenue of approximately $22.3 million for the same period
Consolidated revenue for the
full year 2016 was approximately $90.0 million, compared to pro forma 2015 revenue of approximately $86.5 million, representing
an increase of 4.0% over the prior year.
Consolidated gross profit for
the fourth quarter of 2016 was $17.5 million or 71.6% of revenues, compared to gross profit of $14.9 million or 67.0% of revenues
for the fourth quarter of 2015.
For the year, gross profit was
approximately $62.3 million, compared with pro forma 2015 gross profit of $56.6 million. Gross margin for the year was 69.2%, compared
to 2015 pro forma gross margin of 65.4%
Sales and Marketing Expenses
Consolidated fourth quarter 2016
sales and marketing expenses increased to $11.9 million, as compared to sales and marketing expenses of $10.6 million during the
same period in 2015. For the quarter, sales and marketing as a percentage of revenues increased slightly to 48.8%, compared to
47.6% in the fourth quarter of 2015.
For the year, sales and marketing
expenses increased to $44.1 million for 2016, as compared to pro forma 2015 sales and marketing expenses of $39.3 million. As a
percentage of revenues, sales and marketing expenses increased to 48.9% compared to 45.5% reported for the pro forma full year
General and Administrative Expenses
In the fourth quarter, consolidated general and administrative
expenses remained flat at $4.5 million as compared to general and administrative expenses of $4.2 million reported for the same
period last year. As a percentage of revenues, general and administrative expenses were 18.3% during the period as compared to
18.9% for the same period during 2015.
2016 general and administrative
expenses decreased to $15.8 million as compared with $16.6 million reported for the pro forma period last year. As a percentage
of revenues, general and administrative expenses were 17.5% as compared to 19.2% for 2015.
The fourth quarter 2016 consolidated
net loss was $4.5 million, compared to the same period a year-ago net income of $11.6 million. The decrease was primarily due to
a one-time recording of a deferred tax benefit of $17.5 million that occurred during the fourth quarter 2015.
The fourth quarter 2016 consolidated
loss per share of $0.31 compared to earnings per share of $0.97 in the fourth quarter of 2015.
For the full-year 2016, the Company
had a net loss of $19.5 million compared to a pro forma net loss of $5.8 million for 2015. Net loss per share for the full-year
2016 was $1.54 a share compared to pro forma net loss per share of $0.65 for 2015.
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 2016 was a gain of $1.2 million compared to a loss of $350,000 for the same period during 2015.
Full year 2016 EBITDA was a gain
of $2.0 million compared to a zero pro forma loss in the prior year.
Cash on hand as of December 31,
2016, was $2.6 million, as compared to $6.4 million as of December 31, 2015. Net working capital as of December 31, 2016 decreased
$5.7 million to $17.9 million, as compared to $23.6 million as of December 31, 2015.
Outlook for Full Year 2017
The Company plans to have an immediate focus on operational
and cash flow efficiencies throughout 2017. As a result, we have reduced revenue guidance while expanding projected EBITDA margins
as we get to the latter part of 2017. The Company's revised full year 2017 revenue and EBITDA guidance is based on the following:
| Stated in 000's | FY '15* | FY '16 | 2017 Guidance | |||||||||
| Revenue | $ | 86,518 | $ | 90,003 | $96,000 - $98,000 | |||||||
| Growth | 4 | % | 6.7% - 8.9% | |||||||||
| EBITDA | ($ | 33 | ) | $ | 2,050 | $6,900 - $7,700 | ||||||
| *Pro forma results |
Conference Call to be Held March
An accompanying listen-only conference
call will be hosted by Carl O'Connell, 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 10, 2017. Please refer to the information below for conference call dial-in information
and webcast registration.
Conference date: March 10, 2017, 10:00 AM ET
Conference dial-in: 877-269-7756
International dial-in: 201-689-7817
Conference Call Name: Xtant Medical's Fourth Quarter 2016 Results Call
Webcast Registration: Click Here
Following the live call, a replay
will be available on the Company's website, www.xtantmedical.com, under "Investor Info."
Use of 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 for the three months ended December 31,2015, the results presented for the full 2015 year
are on a pro 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 acquisition.
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, 2016, which will be filed with the Securities and Exchange Commission on or about March
30, 2017 and will include the Company's audited consolidated financial statements as of and for the years ended December
31, 2016 and December 31, 2015
About Xtant Medical Holdings,
Xtant Medical Holdings, Inc.
(NYSE MKT: XTNT) 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, 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.
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