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Xtant Medical Announces First Quarter 2021 Financial Results
First Quarter 2021 Financial Highlights:
- Revenue for the first quarter of 2021 totaled
$12.5 million , compared to$14.8 million for the prior-year period - Operating expenses in the first quarter of 2021 totaled
$8.1 million , compared to$11.0 million for the prior-year period - Loss from operations totaled
$5,000 compared to an operating loss of$1.4 million for the prior-year period - Net loss incurred in the first quarter of 2021 totaled
$29,000 compared to a net loss of$2.5 million for the prior-year period - Non-GAAP Adjusted EBITDA for the first quarter of 2021 totaled
$0.8 million , compared to$0.3 million for the prior-year period - Received net cash proceeds of approximately
$18.4 million from a private placement to a single healthcare-focused institutional investor - Recently closed
$20 million debt refinancing withMidCap Financial
“We continued to navigate through challenging conditions as COVID-19 had a significant impact on elective spinal procedures in January and February in our two largest markets, which represent nearly one-third of our revenue. Since then, we have seen a significant uptick in elective surgeries in both March and April, and are cautiously optimistic that this trend will continue in the months ahead,” said
“During the first quarter, we raised
First Quarter 2021 Financial Results
First quarter 2021 revenue was
Gross profit for the first quarter of 2021 was 64.5%, compared to 65.0% for the same period in 2020. The reduction in gross profit was primarily attributable to diminished economies of scale, partially offset by reduced depreciation expense.
Operating expenses for the first quarter of 2021 totaled
First quarter 2021 net loss totaled
Non-GAAP Adjusted EBITDA for the first quarter of 2021 totaled
2021 Annual Meeting of Stockholders
The Company also announced that its Board of Directors established
Debt Financing
As previously announced, on May 6, 2021, the Company and its subsidiaries entered into credit agreements with
Conference Call
About
The symbols ™ and ® denote trademarks and registered trademarks of
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements prepared in accordance with
Cautionary Statement Regarding Forward-Looking Statements
This 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,” similar expressions or the negative thereof, and the use of future dates. Forward-looking statements in this release include the Company’s belief that a recent uptick in the number of elective surgeries will continue and its ability to execute on future growth opportunities. . 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; the ability to increase or maintain revenue; the ability to remain competitive; the ability to innovate and develop new products; the ability to engage and retain qualified personnel; the effect of the COVID-19 pandemic on the Company’s business, operating results and financial condition; 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 obtain and protect Company intellectual property and proprietary rights and operate without infringing the rights of others; the ability to service Company debt, comply with its debt covenants and access additional indebtedness; the ability to obtain additional 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
Investor Relations Contact
Lazar FINN
Ph: 212-867-1762
Email: david.carey@finnpartners.com
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands, except number of shares and par value) | ||||||||
March 31, 2021 | December 31, 2020 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 18,643 | $ | 2,341 | ||||
Trade accounts receivable, net of allowance for credit losses and doubtful accounts of |
7,027 | 6,880 | ||||||
Inventories | 21,641 | 21,408 | ||||||
Prepaid and other current assets | 1,165 | 736 | ||||||
Total current assets | 48,476 | 31,365 | ||||||
Property and equipment, net | 4,666 | 4,347 | ||||||
Right-of -use asset, net | 1,585 | 1,690 | ||||||
3,205 | 3,205 | |||||||
Intangible assets, net | 443 | 457 | ||||||
Other assets | 322 | 402 | ||||||
Total Assets | $ | 58,697 | $ | 41,466 | ||||
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 2,490 | $ | 2,947 | ||||
Accrued liabilities | 4,569 | 5,462 | ||||||
Current portion of lease liability | 431 | 423 | ||||||
Current portion of finance lease obligations | 30 | 20 | ||||||
Current portion of long-term debt | 16,490 | 16,797 | ||||||
Total current liabilities | 24,010 | 25,649 | ||||||
Long-term Liabilities: | ||||||||
Lease liability, less current portion | 1,192 | 1,303 | ||||||
Finance lease obligation, less current portion | 129 | - | ||||||
Total Liabilities | 25,331 | 26,952 | ||||||
Stockholders' Equity (Deficit) | ||||||||
Preferred stock | - | - | ||||||
Common stock | - | - | ||||||
Additional paid-in capital | 263,731 | 244,850 | ||||||
Accumulated deficit | (230,365 | ) | (230,336 | ) | ||||
Total Stockholders’ Equity | 33,366 | 14,514 | ||||||
Total Liabilities & Stockholders’ Equity (Deficit) | $ | 58,697 | $ | 41,466 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
(Unaudited, in thousands, except number of shares and per share amounts) |
||||||||||
Three Months Ended |
||||||||||
2021 |
2020 | |||||||||
Revenue | ||||||||||
Orthopedic product sales | $ | 12,509 | $ | 14,735 | ||||||
Other revenue | 33 | 43 | ||||||||
Total revenue | 12,542 | 14,778 | ||||||||
Cost of sales | 4,451 | 5,165 | ||||||||
Gross profit | 8,091 | 9,613 | ||||||||
Gross profit % | 64.5 | % | 65.0 | % | ||||||
Operating expenses | ||||||||||
General and administrative | 3,027 | 4,318 | ||||||||
Sales and marketing | 4,855 | 6,413 | ||||||||
Research and development | 214 | 245 | ||||||||
8,096 | 10,976 | |||||||||
Loss from operations | (5) | (1,363) | ||||||||
Other income | ||||||||||
Interest expense | (1) | (1,108) | ||||||||
Total Other Expense | (1) | (1,108) | ||||||||
Net Loss from Operations Before Provision for Income Taxes | (6) | (2,471) | ||||||||
Provision for income taxes | ||||||||||
Current and deferred | (23) | (22) | ||||||||
Net Loss from Operations | $ | (29) | $ | (2,493) | ||||||
Net loss per share: | ||||||||||
Basic | $ | (0.00) | $ | (0.19) | ||||||
Dilutive | $ | (0.00) | $ | (0.19) | ||||||
Shares used in the computation: | ||||||||||
Basic | 81,248,875 | 13,175,345 | ||||||||
Dilutive | 81,248,875 | 13,175,345 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited, in thousands) | ||||||||
Three Months Ended |
||||||||
2021 | 2020 | |||||||
Operating activities: | ||||||||
Net loss | $ | (29 | ) | $ | (2,493 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 375 | 685 | ||||||
Gain on disposal of fixed assets | (32 | ) | (105 | ) | ||||
Non-cash interest | - | 1,101 | ||||||
Non-cash rent | 3 | 4 | ||||||
Stock-based compensation | 456 | 269 | ||||||
Provision for reserve on accounts receivable | (63 | ) | 138 | |||||
Provision for excess and obsolete inventory | 150 | 31 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (83 | ) | 195 | |||||
Inventories | (383 | ) | (1,974 | ) | ||||
Prepaid and other assets | (349 | ) | (340 | ) | ||||
Accounts payable | (459 | ) | 1,610 | |||||
Accrued liabilities | (893 | ) | (910 | ) | ||||
Net cash provided by (used in) operating activities | (1,307 | ) | (1,789 | ) | ||||
Investing activities: | ||||||||
Purchases of property and equipment | (542 | ) | (258 | ) | ||||
Proceeds from sale of fixed assets | 59 | 83 | ||||||
Net cash used in investing activities | (483 | ) | (175 | ) | ||||
Financing activities: | ||||||||
Payments on financing leases | (25 | ) | (34 | ) | ||||
Payments on long-term debt | (308 | ) | - | |||||
Proceeds from private place, net of cash issuance costs | 18,425 | - | ||||||
Net cash provided by (used in) financing activities | 18,092 | (34 | ) | |||||
Net change in cash and cash equivalents | 16,302 | (1,998 | ) | |||||
Cash and cash equivalents at beginning of period | 2,341 | 5,237 | ||||||
Cash and cash equivalents at end of period | $ | 18,643 | $ | 3,239 | ||||
CALCULATION OF NON-GAAP CONSOLIDATED EBITDA AND ADJUSTED EBITDA |
||||||||
(Unaudited, in thousands) | ||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
Net Loss | $ | (29 | ) | $ | (2,493 | ) | ||
Depreciation and amortization | 375 | 685 | ||||||
Interest expense | 1 | 1,108 | ||||||
Tax expense | 23 | 22 | ||||||
Non-GAAP EBITDA | 370 | (678 | ) | |||||
Non-GAAP EBITDA/Total revenue | 3.0 | % | -4.6 | % | ||||
NON-GAAP ADJUSTED EBITDA CALCULATION | ||||||||
Stock-based compensation | 456 | 269 | ||||||
Separation-related expenses | - | 749 | ||||||
Non-GAAP Adjusted EBITDA | $ | 826 | $ | 340 | ||||
Non-GAAP Adjusted EBITDA/Total revenue | 6.6 | % | 2.3 | % |
Source: Xtant Medical, Inc.