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Xtant Medical Announces Second Quarter 2021 Financial Results
Second Quarter 2021 Financial Highlights:
- Revenue for the second quarter of 2021 totaled
$15.0 million , an increase of 42% over the prior-year period - Gross margin in the second quarter of 2021 was 63.5%, compared to 62.2% for the prior-year period
- Loss from operations totaled
$0.5 million compared to an operating loss of$0.4 million for the prior-year period - Net loss incurred in the second quarter of 2021 totaled
$0.7 million compared to a net loss of$2.5 million for the prior-year period - Non-GAAP Adjusted EBITDA for the second quarter of 2021 totaled
$0.9 million , compared to$0.3 million for the prior-year period - Closed
$20 million debt refinancing
“We are pleased with our second quarter performance reflecting solid revenue growth on a sequential and year-over-year basis driven by the elective spinal procedure market rebound,” said
Second Quarter 2021 Financial Results
Second quarter 2021 revenue was
Gross margin for the second quarter of 2021 was 63.5%, compared to 62.2% for the same period in 2020. The increase is primarily attributable to greater economies of scale.
Operating expenses for the second quarter of 2021 totaled
Second quarter 2021 net loss totaled
Non-GAAP Adjusted EBITDA for the second quarter of 2021 totaled
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 continued investment in its future through the combination of new product introductions, penetration of underserved markets and further distribution network expansion. 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 new and existing independent distributors and qualified personnel; the effect of the COVID-19 pandemic on the Company’s business, operating results and financial condition; the Company’s ability to implement successfully its future growth initiatives; 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) | ||||||||
As of |
As of |
|||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 20,312 | $ | 2,341 | ||||
Restricted Cash | 215 | - | ||||||
Trade accounts receivable, net of allowance for credit losses and doubtful accounts of |
6,985 | 6,880 | ||||||
Inventories | 21,093 | 21,408 | ||||||
Prepaid and other current assets | 827 | 736 | ||||||
Total current assets | 49,432 | 31,365 | ||||||
Property and equipment, net | 4,869 | 4,347 | ||||||
Right-of -use asset, net | 1,477 | 1,690 | ||||||
3,205 | 3,205 | |||||||
Intangible assets, net | 428 | 457 | ||||||
Other assets | 265 | 402 | ||||||
Total Assets | $ | 59,676 | $ | 41,466 | ||||
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 2,639 | $ | 2,947 | ||||
Accrued liabilities | 5,728 | 5,462 | ||||||
Current portion of lease liability | 441 | 423 | ||||||
Finance lease obiligations | 30 | 20 | ||||||
Line of credit | 4,077 | - | ||||||
- | 16,797 | |||||||
Total current liabilities | 12,915 | 25,649 | ||||||
Long-term Liabilities: | ||||||||
Lease liability, less current portion | 1,076 | 1,303 | ||||||
Finance lease obligations, less current portion | 118 | - | ||||||
Long-term debt, plus premium and less issuance costs | 11,683 | - | ||||||
Total Liabilities | 25,792 | 26,952 | ||||||
Stockholders' Equity (Deficit) | ||||||||
Preferred stock, |
- | - | ||||||
Common stock, |
- | - | ||||||
Additional paid-in capital | 264,981 | 244,850 | ||||||
Accumulated deficit | (231,097 | ) | (230,336 | ) | ||||
Total Stockholders’ Equity (Deficit) | 33,884 | 14,514 | ||||||
Total Liabilities & Stockholders’ Equity (Deficit) | $ | 59,676 | $ | 41,466 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited, in thousands, except number of shares and per share amounts) | ||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | ||||||||||||||||
Orthopedic product sales | $ | 14,942 | $ | 10,493 | $ | 27,451 | $ | 25,227 | ||||||||
Other revenue | 33 | 36 | 66 | 80 | ||||||||||||
Total revenue | 14,975 | 10,529 | 27,517 | 25,307 | ||||||||||||
Cost of sales | 5,460 | 3,979 | 9,911 | 9,144 | ||||||||||||
Gross profit | 9,515 | 6,550 | 17,606 | 16,163 | ||||||||||||
Gross profit % | 63.5 | % | 62.2 | % | 64.0 | % | 63.9 | % | ||||||||
Operating expenses | ||||||||||||||||
General and administrative | 4,173 | 2,931 | 7,200 | 7,250 | ||||||||||||
Sales and marketing | 5,590 | 3,895 | 10,445 | 10,309 | ||||||||||||
Research and development | 243 | 111 | 458 | 353 | ||||||||||||
Total operating expenses | 10,006 | 6,937 | 18,103 | 17,912 | ||||||||||||
Income (Loss) from operations | (491 | ) | (387 | ) | (497 | ) | (1,749 | ) | ||||||||
Other income | ||||||||||||||||
Interest expense | (199 | ) | (2,054 | ) | (201 | ) | (3,163 | ) | ||||||||
Total Other Expense | (199 | ) | (2,054 | ) | (201 | ) | (3,163 | ) | ||||||||
Net Loss Before Provision for Income Taxes | (690 | ) | (2,441 | ) | (698 | ) | (4,912 | ) | ||||||||
Provision for income taxes | (43 | ) | (23 | ) | (64 | ) | (45 | ) | ||||||||
Net Loss | $ | (733 | ) | $ | (2,464 | ) | $ | (762 | ) | $ | (4,957 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.19 | ) | $ | (0.01 | ) | $ | (0.38 | ) | ||||
Dilutive | $ | (0.01 | ) | $ | (0.19 | ) | $ | (0.01 | ) | $ | (0.38 | ) | ||||
Shares used in the computation: | ||||||||||||||||
Basic | 86,707,286 | 13,223,565 | 83,993,159 | 13,199,455 | ||||||||||||
Dilutive | 86,707,286 | 13,223,565 | 83,993,159 | 13,199,455 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Six Months Ended |
|||||||
2021 | 2020 | ||||||
Operating activities: | |||||||
Net loss | $ | (762 | ) | $ | (4,957 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 731 | 1,153 | |||||
Gain on disposal of fixed assets | (108 | ) | (118 | ) | |||
Non-cash interest | 16 | 3,149 | |||||
Non-cash rent expense | 5 | 8 | |||||
Stock-based compensation | 921 | 489 | |||||
Provision for reserve on accounts receivable | (143 | ) | 204 | ||||
Provision for excess and obsolete inventory | 211 | 377 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 38 | 2,290 | |||||
Inventories | 104 | (4,164 | ) | ||||
Prepaid and other assets | (29 | ) | (153 | ) | |||
Accounts payable | (308 | ) | 1,067 | ||||
Accrued liabilities | 266 | (921 | ) | ||||
Net cash provide by (used in) operating activities | 942 | (1,576 | ) | ||||
Investing activities: | |||||||
Purchases of property and equipment | (1,079 | ) | (673 | ) | |||
Proceeds from sale of fixed assets | 125 | 106 | |||||
Net cash used in investing activities | (954 | ) | (567 | ) | |||
Financing activities: | |||||||
Payments on financing leases | (34 | ) | (75 | ) | |||
Costs associated with refinancing | (105 | ) | - | ||||
Payments on long-term debt | (411 | ) | - | ||||
Borrowings on line of credit | 9,331 | ||||||
Repayments of line of credit | (9,009 | ) | - | ||||
Proceeds from private placement, net of cash issuance costs | 18,426 | - | |||||
Net cash used in financing activities | 18,198 | (75 | ) | ||||
Net change in cash and cash equivalents | 18,186 | (2,218 | ) | ||||
Cash and cash equivalents at beginning of period | 2,341 | 5,237 | |||||
Cash and cash equivalents at end of period | $ | 20,527 | $ | 3,019 | |||
Reconciliation of cash and restricted cash reported in the condensed consolidated balance sheets | |||||||
Cash and cash equivelants | $ | 20,312 | $ | 3,019 | |||
Restricted cash | 215 | - | |||||
Total cash and restricted cash reported in the condensed consolidated balance sheets | $ | 20,527 | $ | 3,019 | |||
CALCULATION OF NON-GAAP CONSOLIDATED EBITDA AND ADJUSTED EBITDA | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net Loss | $ | (733 | ) | $ | (2,464 | ) | $ | (762 | ) | $ | (4,957 | ) | ||||
Other expense | 5 | 1 | 42 | 6 | ||||||||||||
Depreciation and amortization | 357 | 468 | 731 | 1,153 | ||||||||||||
Interest expense | 199 | 2,054 | 201 | 3,163 | ||||||||||||
Tax expense | 43 | 23 | 64 | 45 | ||||||||||||
Non-GAAP EBITDA | (129 | ) | 82 | 276 | (590 | ) | ||||||||||
Non-GAAP EBITDA/Total revenue | -0.9 | % | 0.8 | % | 1.0 | % | -2.3 | % | ||||||||
NON-GAAP ADJUSTED EBITDA CALCULATION | ||||||||||||||||
Non-cash compensation | 465 | 219 | 921 | 489 | ||||||||||||
Separation-related expenses | - | - | - | 749 | ||||||||||||
Litigation reserve | 550 | - | 550 | - | ||||||||||||
Non-GAAP Adjusted EBITDA | $ | 886 | $ | 301 | $ | 1,747 | $ | 648 | ||||||||
Non-GAAP Adjusted EBITDA/Total revenue | 5.9 | % | 2.9 | % | 6.3 | % | 2.6 | % | ||||||||
Source: Xtant Medical, Inc.