Full Press Release Details
Medical Reports Third Quarter 2024 Financial Results
Quarter Revenue Growth of 12%
Full Year 2024 Revenue Guidance of $116 Million to $120 Million
Growth of 27% to 31%
Mont., Nov. 12, 2024 - 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 third quarter ended September
Quarter 2024 Financial Highlights
| Revenue of $27.9 million, up 12%, compared to the prior year quarter; year to date revenue of $85.8 million, up 36% compared to prior year period | ||
| Gross margin of 58.4% compared to 61.3% for the prior year quarter | ||
| Net loss of $5.0 million compared to net income of $9.2 million in the prior year quarter which included a $11.0 million bargain purchase gain related to the acquisition of Surgalign Holdings | ||
| Adjusted EBITDA of $(196,000) compared to $440,000 in the prior year quarter |
| Launched OsteoVive+, a moldable, viable bone matrix for use in a variety of grafting procedures | ||
| Launched Cortera Posterior Fixation System, a comprehensive solution designed to streamline thoracolumbar fixation surgeries | ||
| Signed a license agreement for Q-Codes and corresponding SimpliMax Dual Layer Amniotic Membrane, which provides for a minimum of $5.25 million in licensing and royalty fees | ||
| Completed $5.0 million private placement on August 9, 2024 |
Browne, President and CEO of Xtant Medical, stated, "During the third quarter, we expanded our market opportunities with the launch
of two new products, OsteoVive+ (stem cells) and Cortera Posterior Fixation System. Importantly, OsetoVive+ is produced internally to
our high standards, giving us greater control over the supply chain and enabling a higher margin contribution on incremental sales, which
we expect to accelerate in the fourth quarter."
continued, "2024 is shaping up largely as we planned with revenue growth of 36% year-to-date. We are therefore reaffirming our
full year revenue guidance of $116 million to $120 million. The growth we expect in the fourth quarter will be driven by the strength
of our products, continued strong operational execution and importantly, it will be entirely organic. The market opportunities in biologics
are expansive, and we are striving to build a resilient and scalable business, which we believe will drive long-term growth and increase
profitability for our stockholders."
Quarter 2024 Financial Results
revenue for the three months ended September 30, 2024 was $27.9 million, an increase of 12%, compared to $25.0 million in the prior year
quarter. The increase is primarily due to the contribution of additional sales resulting from the acquisition of the Surgalign Holdings'
hardware and biologics business, which was partially offset by reduced surgical procedures using our products.
margin for the third quarter of 2024 was 58.4%, compared to 61.3% for the prior year quarter. The decrease is primarily due to reduced
production throughput, partially offset by additional scale.
expenses for the third quarter of 2024 totaled $20.1 million, an increase of 7.3% compared to $18.7 million for the third quarter of
2023. The increase was primarily due to additional commission expense resulting from revenue growth, additional compensation expense
related to additional headcount and additional stock-based compensation.
loss for the third quarter of 2024 was $5.0 million, or $(0.04) per share, compared to net income of $9.2 million, or $0.07 per share
in the prior year quarter. Net income for the third quarter of 2023 includes a bargain purchase gain of $11.0 million related to the
acquisition of Surgalign Holdings' hardware and biologics business in August 2023.
Adjusted EBITDA for the third quarter of 2024 was a loss of $196,000, compared to non-GAAP Adjusted EBITDA of $440,000 for the prior-year
period. The Company defines Adjusted EBITDA as net income/loss from operations before depreciation, amortization and interest expense
and provision for income tax/benefit, and as further adjusted to add back in or exclude, as applicable, separation related expenses,
legal settlements, non-cash compensation, acquisition-related expenses, acquisition-related fair value adjustments, gain on bargain purchase
and foreign currency exchange gains/losses. A calculation and reconciliation of Adjusted EBITDA to net loss can be found in the attached
of September 30, 2024, the Company had $6.6 million of cash and cash equivalents compared to $5.7 million as of December 31, 2023.
Medical reaffirmed its full year 2024 revenue guidance of $116 million to $120 million. Revenue guidance for 2024 represents annual growth
Medical will host a webcast and conference call to discuss third quarter 2024 financial results at 4:30 pm ET on Tuesday, November 12,
access the webcast, visit https://www.webcaster4.com/Webcast/Page/3039/51623.
access the conference call, dial 888-999-3182 within the U.S. or 848-280-6330 outside the U.S. Passcode: Xtant Medical Holdings.
replay of the call will be available on the Investor section of the Company's website at www.xtantmedical.com.
Xtant Medical Holdings, Inc.
Medical's mission of honoring the gift of donation so that our patients can live as full and complete a life as possible, is the
driving force behind our company. Xtant 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," "guidance," similar expressions or the negative thereof, and the use
of future dates. Forward-looking statements in this release include the Company's financial guidance for 2024, expectations for
the acceleration of incremental sales in the fourth quarter, the Company's ability to build a resilient and scalable business,
the Company's anticipated long-term growth and increased profitability for stockholders. 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; its ability to increase or
maintain revenue; the Company's ability to become operationally self-sustaining and less reliant on third-party manufacturers and
suppliers; risks associated with its acquisitions and the integration of those businesses; anticipated shortages of stem cells which
will adversely affect future revenues; the ability to implement successfully its future growth initiatives and risks associated therewith;
possible future impairment charges to long-lived assets and goodwill and write-downs of excess inventory; the ability to remain competitive;
the ability to innovate, develop and introduce new products and the success of those products; the ability to engage and retain new and
existing independent distributors and agents and qualified personnel and the Company's dependence on key independent agents for
a significant portion of its revenue; the effect of labor and hospital staffing shortages on the Company's business, operating
results and financial condition, especially when they affect key markets; the effect of inflation, increased interest rates and other
recessionary factors and supply chain disruptions; the effect of product sales mix changes on the Company's financial results;
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 license certain of the Company's intellectual property on commercially
reasonable terms and to maintain any such licenses; the ability to obtain and protect Company intellectual property and proprietary rights
and operate without infringing the rights of others; risks associated with the Company's clinical trials; international risks;
the ability to service Company debt, comply with its debt covenants and access additional indebtedness; the ability to maintain sufficient
liquidity to fund its operations and obtain 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, 2023 filed with the Securities and Exchange Commission
(SEC) on April 1, 2024 and subsequent SEC filings by the Company, including without limitation its most recent Quarterly Report on Form
10-Q for the quarterly period ended September 30, 2024 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.
MEDICAL HOLDINGS, INC.
Consolidated Balance Sheets
thousands, except number of shares and par value)
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 6,596 | $ | 5,715 | ||||
| Restricted cash | 490 | 208 | ||||||
| Trade accounts receivable, net of allowance for credit losses and doubtful accounts of $1,038 and $920, respectively | 20,545 | 20,731 | ||||||
| Inventories | 41,886 | 36,885 | ||||||
| Prepaid and other current assets | 1,893 | 1,330 | ||||||
| Total current assets | 71,410 | 64,869 | ||||||
| Property and equipment, net | 10,284 | 8,692 | ||||||
| Right-of -use asset, net | 995 | 1,523 | ||||||
| Goodwill | 7,302 | 7,302 | ||||||
| Intangible assets, net | 8,788 | 10,085 | ||||||
| Other assets | 103 | 141 | ||||||
| Total Assets | $ | 98,882 | $ | 92,612 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 8,298 | $ | 7,054 | ||||
| Accrued liabilities | 8,871 | 10,419 | ||||||
| Current portion of lease liability | 795 | 830 | ||||||
| Current portion of finance lease obligations | 68 | 65 | ||||||
| Line of credit | 12,887 | 4,622 | ||||||
| Current portion of long-term debt | 2,750 | - | ||||||
| Total current liabilities | 33,669 | 22,990 | ||||||
| Long-term Liabilities: | ||||||||
| Lease liability, less current portion | 247 | 759 | ||||||
| Finance lease obligations, less current portion | 65 | 116 | ||||||
| Long-term debt, plus premium and less issuance costs | 19,138 | 17,167 | ||||||
| Other liabilities | 38 | 231 | ||||||
| Total Liabilities | 53,157 | 41,263 | ||||||
| Commitments and Contingencies | - | - | ||||||
| Stockholders' Equity | ||||||||
| Preferred stock, $0.000001 par value; 10,000,000 shares authorized; no shares issued and outstanding | - | - | ||||||
| Common stock, $0.000001 par value; 300,000,000 shares authorized; 138,680,874 shares issued and outstanding as of September 30, 2024 and 130,180,031 shares issued and outstanding as of December 31, 2023 | - | - | ||||||
| Additional paid-in capital | 301,966 | 294,330 | ||||||
| Accumulated other comprehensive (loss) income | 54 | 29 | ||||||
| Accumulated deficit | (256,295 | ) | (243,010 | ) | ||||
| Total Stockholders' Equity | 45,725 | 51,349 | ||||||
| Total Liabilities & Stockholders' Equity | $ | 98,882 | $ | 92,612 |
MEDICAL HOLDINGS, INC.
Consolidated Statements of Operations
in thousands, except number of shares and per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 27,937 | $ | 25,019 | $ | 85,754 | $ | 63,195 | ||||||||
| Cost of sales | 11,630 | 9,685 | 33,562 | 24,865 | ||||||||||||
| Gross Profit | 16,307 | 15,334 | 52,192 | 38,330 | ||||||||||||
| Gross Profit % | 58.4 | % | 61.3 | % | 60.9 | % | 60.7 | % | ||||||||
| Operating Expenses | ||||||||||||||||
| General and administrative | 7,493 | 7,144 | 22,991 | 16,983 | ||||||||||||
| Sales and marketing | 11,890 | 11,085 | 37,530 | 26,855 | ||||||||||||
| Research and development | 701 | 490 | 1,863 | 844 | ||||||||||||
| Total Operating Expenses | 20,084 | 18,719 | 62,384 | 44,682 | ||||||||||||
| Loss from Operations | (3,777 | ) | (3,385 | ) | (10,192 | ) | (6,352 | ) | ||||||||
| Other (Expense) Income | ||||||||||||||||
| Interest expense | (1,199 | ) | (760 | ) | (3,026 | ) | (2,120 | ) | ||||||||
| Interest income | - | 48 | - | 133 | ||||||||||||
| Foreign currency exchange gain | 27 | - | 106 | - | ||||||||||||
| Other expense | (13 | ) | - | (6 | ) | - | ||||||||||
| Bargain purchase gain | - | 11,028 | - | 11,028 | ||||||||||||
| Total Other (Expense) Income | (1,185 | ) | 10,316 | (2,926 | ) | 9,041 | ||||||||||
| Net (Loss) Income from Operations Before Provision for Income Taxes | (4,962 | ) | 6,931 | (13,118 | ) | 2,689 | ||||||||||
| Provision for Income Taxes | ||||||||||||||||
| Current and Deferred | (62 | ) | 2,300 | (166 | ) | 2,274 | ||||||||||
| Net (Loss) Income | $ | (5,024 | ) | $ | 9,231 | $ | (13,284 | ) | $ | 4,963 | ||||||
| Net (Loss) Income Per Share: | ||||||||||||||||
| Basic | $ | (0.04 | ) | $ | 0.07 | $ | (0.10 | ) | $ | 0.04 | ||||||
| Dilutive | $ | (0.04 | ) | $ | 0.07 | $ | (0.10 | ) | $ | 0.04 | ||||||
| Shares used in the computation: | ||||||||||||||||
| Basic | 135,100,233 | 128,140,238 | 131,881,302 | 115,380,792 | ||||||||||||
| Dilutive | 135,100,233 | 135,663,274 | 131,881,302 | 123,832,401 |