BELGRADE, Mont., Aug. 5, 2022 (GLOBE NEWSWIRE) — Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global medical technology company focused on surgical solutions for the treatment of spine disorders, today reported financial and operating results for the second quarter ended June 30, 2022.
“We are pleased to have achieved our highest revenue quarter since the start of the pandemic. Our second quarter revenue was up 2% year-over-year, including year-over-year growth of 8% in our biologics business, driven by strong demand for our new biologics and the expansion of our distributor network,” said Sean Browne. , President and CEO of Xtant Medical. “With the strength of our four key pillars of growth, our strategic initiatives are gaining momentum, giving us greater confidence in our future prospects. Despite the impact on our business from the broader supply chain and macroeconomic challenges, our team continues to work to deliver life-changing orthobiologic systems and spinal implants to patients who need them.”
Financial results for the second quarter of 2022
Revenue for the second quarter of 2022 was $15.3 million, compared to $14.9 million for the same quarter of 2021. The increase in revenue is primarily attributable to the introduction of new products and ‘increased original equipment manufacturer (OEM) and private label sales.
Gross margin for the second quarter of 2022 was 54.8%, compared to 63.5% for the same period in 2021. The decrease was primarily due to higher product costs and higher expenses due to excess and obsolete existence.
Operating expenses for the second quarter of 2022 were $9.7 million compared to $10.0 million for the second quarter of 2021. The decrease was primarily due to legal settlement expenses in 2021, partially offset by higher sales and marketing expenses in 2022.
Second quarter 2022 net loss was $1.7 million, or $0.02 per share, compared to second quarter 2021 net loss of $0.7 million, or $0.01 by action
Adjusted non-GAAP EBITDA for the second quarter of 2022 was a loss of $0.4 million, compared to adjusted non-GAAP EBITDA of $0.9 million for the prior year period. The Company defines Adjusted EBITDA as net income/loss from operations before depreciation, amortization and interest expense and the provision for income taxes, and is adjusted to add or exclude, if where applicable, non-cash compensation, separation-related expenses and litigation. liquidation reserves. A calculation and reconciliation of adjusted EBITDA with net loss can be found in the attached financial tables.
Xtant Medical will host a webcast and conference call to discuss its second quarter 2022 financial results on Thursday, August 4, 2022 at 9:00 am ET. To access the webcast, Click here. To access the conference call, please dial 877-407-6184 within the US or 201-389-0877 outside the US. There will be a replay of the call at www.xtantmedical.com under “Investor Information”.
About Xtant Medical Holdings, Inc.
Xtant Medical Holdings, Inc. (www.xtantmedical.com) is a global medical technology company focused on the design, development and commercialization of a complete portfolio of spinal orthobiologics and implant systems to facilitate spinal fusion in complex spinal procedures, deformities and degenerations. The people at Xtant are dedicated and talented, and operate with the utmost integrity to serve our customers.
The ™ and ® symbols denote trademarks and registered trademarks of Xtant Medical Holdings, Inc. or its subsidiaries, registered as indicated in the United States and other countries. All other trademarks and trade names referred to in this release are the property of their respective owners.
Non-GAAP financial measures
To supplement the Company’s consolidated financial statements prepared in accordance with US 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 the tables later in this release. The management of the Company considers that the presentation of these measures provides useful information to investors. These measures can help investors evaluate the Company’s operations on a period-by-period basis. Non-GAAP measures in this release are used internally by management to evaluate business performance, including resource allocation. Investors should consider non-GAAP financial measures only as a supplement to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.
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 on or refer to future events or conditions, or that include words such as “intends,” “expect”, “anticipate”, “plan”, “believe”, “love”, “continue”, “future”, “will fly”, “potential”. ”, “hereafter”, similar expressions or their negative, and the use of future dates. Forward-looking statements in this release include the future success of the Company’s four key growth pillars and strategic initiatives and their future prospects. 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, but not limited to: future operating results and financial performance of the company; the ability to increase or maintain income; possible future impairment charges on long-lived assets and goodwill and write-downs of excess inventory if revenues continue to decline; the ability to remain competitive; the ability to innovate, develop and introduce new products; the ability to recruit and retain new and existing distributors and independent agents and qualified personnel and the Company’s reliance on key independent agents for a significant portion of its revenue; the effect of the COVID-19 pandemic and hospital staffing shortages on the Company’s business, operating results and financial condition, particularly as they affect key markets; the Company’s ability to successfully implement its future growth initiatives and the risks associated therewith; the effect of changes in product sales mix on the Company’s financial results; government and third party coverage and reimbursement for the Company’s products; the ability to obtain and maintain regulatory approvals and comply with governmental regulations; the effect of product liability claims and other litigation to which the Company may be subject; the effect of product recall and defects; the ability to obtain and protect the company’s intellectual property and proprietary rights and to operate without infringing the rights of others; the company’s ability to repay its 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 set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (SEC) on March 8, 2022 and at subsequent SEC filings by the Company, including, without limitation, its most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 is expected 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 publicly release any revisions to 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.
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