BELGRADE, MT / ACCESSWIRE / April 2, 2018 / Xtant™ Medical Holdings, Inc. (NYSE American: XTNT), a leader in
the development of regenerative medicine products and medical devices, today reported its financial results for the period ended
December 31st, 2017.
''2017 represented a significant year for the Company as we completed transformational restructuring activities that were
necessary for the future growth of Xtant Medical,'' said Carl O'Connell, Chief Executive Officer, ''Our team has worked with
focused effort towards repositioning Xtant for operational excellence. We made improvements to our sales structure and channel for
long-term success, and continue to stay keenly focused on differentiating our sales approach by adding talent in key markets. I am
pleased with the work we have achieved, and look forward to leading this Company through this next era of profitable
performance.''
Revenue
Consolidated fourth quarter 2017 revenue was approximately $19.3 million, compared to consolidated revenue of approximately
$24.5 million for the same period during 2016.
Annual consolidated revenue for 2017 was approximately $82.6 million, compared to consolidated revenue of approximately $90.0
million in 2016. While the Company achieved above-market growth in biologics revenue, the decline in total revenue was due to
decreased hardware sales. This was due in part to an aging hardware product line and the termination of some stocking reseller
agreements and independent distributor agreements with poor contribution margins, thus allowing the company to focus on more
profitable sales channels moving forward.
Gross Profit
Consolidated gross profit for the fourth quarter of 2017 was approximately $10.3 million or 53.2% of revenues, compared to gross
profit of approximately $17.5 million or 71.6% of revenues for the fourth quarter of 2016. The shift in gross margin as a
percentage of revenue is primarily due to a total charge of $2.5 million, or 12.7% of revenues, related to additional reserves for
estimated excess inventory and inventory on consignment that may be missing and not returned, as well as impairment charges for
estimated missing and damaged consigned surgical instruments. The remaining shift in gross margin compared to the prior year is due
to a change in sales mix to biologics which has a lower margin than fixation products.
For the year, consolidated gross profit was approximately $50.1 million, compared with 2016 consolidated gross profit of
approximately $62.3 million. Gross margin for the year was 60.6%, compared to 2016 gross margin of 69.2%. The impact of increased
inventory reserves and surgical instrument impairment, as noted above, was a decline in gross profit of $4.0 million for the full
year of 2017. In addition, a reserve of $0.9 million was recorded in 2017 for additional inventory reserves and surgical instrument
impairment related to litigation with a distributor. The impact of these additional reserves reduced gross margin by 6.0% for the
year. The remaining reduction in gross profit is primarily due to a shift in the sales mix towards biologics which have a lower
gross margin than fixation products.
General and Administrative Expenses
In the fourth quarter, consolidated general and administrative expenses decreased to approximately $3.3 million as compared to
approximately $4.5 million reported for the same period of 2016. As a percentage of revenues, general and administrative expenses
were 17.2% during the fourth quarter of 2017 as compared to 18.6% for the same period during 2016. The expense reduction in the
fourth quarter is a result of cost containment, primarily attributable to reduction in personnel cost and rental facilities, as
part of the Company-wide initiatives in 2017 to improve profitability.
Full-year 2017 consolidated general and administrative expenses decreased to approximately $15.2 million as compared with
approximately $15.8 million reported during the prior year. As a percentage of revenues, general and administrative expenses
decreased to 18.5% in 2017 as compared to 19.1% for 2016. This reduction in the general and administrative expense structure is due
to personnel costs and occupancy expenses offset by a net receivable reserve of $414,174 in 2017 related to litigation with a
distributor.
Sales and Marketing Expenses
Fourth quarter 2017 consolidated sales and marketing expenses decreased to approximately $9.5 million, as compared to
approximately $11.9 million during the same period in 2016. For the fourth quarter, sales and marketing as a percentage of revenues
was 49.0% compared to 48.8% of revenue in 2016.
For the year, consolidated sales and marketing expenses declined 8.0% to approximately $40.5 million for 2017, as compared to
2016 of approximately $44.1 million. As a percentage of revenues, sales and marketing expenses were 49.0% compared to 48.9%
reported for 2016.
Sales and marketing expense fluctuates with the level of revenue as commissions expense is the main component of this expense
category.
Other Operating Expenses
In the fourth quarter, the Company evaluated its acquired intangible assets and recorded an impairment of $17.6 million.
Restructuring costs were incurred by the Company in 2017 related to the recapitalization of the Company and performance
improvement measures. Restructuring costs were $1.9 million in the fourth quarter and $4.7 million for the year ended December 31,
2017.
During the fourth quarter, the Company incurred $0.5 million in separation related expenses related to reduction in personnel,
primarily related to the wind down of its Miamisburg, Ohio facility. For the year ended December 31, 2017, the Company incurred
$1.9 million in separation costs related to this winddown effort and other reductions in personnel related to its initiatives to
reduce costs and improve profitability.
Net Loss
On February 13, 2018, the Company implemented a 1:12 reverse stock split. All per share information noted below and in the
attached financial tables has been adjusted for this reverse stock split.
Fourth quarter 2017 consolidated net loss was approximately $28.4 million, compared to fourth quarter consolidated net loss of
approximately $4.5 million in 2016. Fourth quarter 2017 consolidated loss per share was $18.76 compared to fourth quarter 2016
consolidated loss per share of $3.76. The increase in the net loss was impacted by a total of $22.0 million in additional expense
related to impairment charges, restructuring costs, severance related expenses, additional interest expense, and other
non-recurring expenses. In addition, the Company recorded additional inventory reserves of $1.9 million in the fourth quarter
related to excess inventory and consigned inventory which may not be recoverable.
For the full-year 2017, the Company had a net loss of approximately $52.4 million compared to a net loss of approximately $19.5
million for 2016. Net loss per share for 2017 was $34.76 per share compared to a net loss per share of $18.46 for 2016. The
increase in net loss was impacted by $29.4 million of net additional expense related to asset impairment charges, restructuring
costs, additional interest expense, litigation reserves, and other one-time costs. In addition, in 2017, the Company recorded $2.4
million in additional inventory reserves related to excess inventory and consigned inventory which may not be recoverable.
Adjusted EBITDA
The Company defines adjusted earnings before interest, taxes, depreciation and amortization (''Adjusted EBITDA'') as net
income/loss from operations before depreciation, amortization, impairment charges, non-recurring expenses and non-cash stock-based
compensation.
Consolidated Adjusted EBITDA for the fourth quarter of 2017 was approximately ($1.1) million compared to approximately $0.7
million in the fourth quarter of 2016.
Full-year 2017 Adjusted EBITDA was approximately ($1.9) million compared to 2016 of approximately $1.6 million.
The lower Adjusted EBITDA for the fourth quarter and year ended December 31, 2017, is the result of lower sales revenue, and the
impact of inventory reserves taken in the fourth quarter of $1.9 million and $2.7 million for the full year 2017.
Financial Liquidity and Capitalization
As previously announced, the Company completed a reverse stock split of 1:12 on February 14, 2018 in addition to a conversion of
its convertible debt into equity, and a private placement of common stock, which net of expense, increased the Company's liquidity
by $4.8 million. In addition, the Company's credit facility has been amended and the Company contemplates a stockholder rights
offering in the near future. Further information on these events can be found in the Company's Form 8K-'s filed on February 13 and
February 15, 2018, and its S-1 Registration Statement filed on February 7, 2018.
As a result of the restructuring transactions noted above, the Company believes that its December 31, 2017 cash on hand,
accounts receivable of approximately $15.6 million along with proceeds of the private placement, anticipated net operating cash
receipts and availability under its credit facility are sufficient to meet anticipated cash requirements through March 31,
2019.
Conference Call to be Held April 3rd, 2018
An accompanying listen-only conference call will be hosted by Carl O'Connell, Chief Executive Officer, to discuss the results.
The call will be held at 9:00 AM ET, on April 3, 2018. Please refer to the information below for conference call dial-in
information and webcast registration.
Conference date: April 3, 2018, 9:00 AM ET
Conference dial-in: 877-269-7756
International dial-in: 201-689-7817
Conference Call Name: Xtant Medical's Fourth Quarter 2017 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.''
About Xtant™ Medical Holdings, Inc.
Xtant Medical Holdings, Inc. (NYSE American: 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 1995 that are subject to significant risks and uncertainties. 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 ''continue,'' ''efforts,'' ''expects,'' ''anticipates,'' ''intends,'' ''plans,'' ''believes,'' ''estimates,'' ''projects,''
''forecasts,'' ''strategy,'' ''will,'' ''goal,'' ''target,'' ''prospects,'' ''potential,'' ''optimistic,'' ''confident,''
''likely,'' ''probable'' or similar expressions or the negative thereof. Statements of historical fact also may be deemed to be
forward-looking statements. We caution that these 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 ability to comply with covenants in
the Company's senior credit facility; the ability to increase revenue; the ability to achieve expected results; the ability to
remain competitive; government regulations; the ability to innovate and develop new products; the ability to obtain donor cadavers
for products; the ability to engage and retain qualified technical personnel and members of the Company's management team; the
availability of Company facilities; government and third-party coverage and reimbursement for Company products; the ability to
obtain regulatory approvals; the ability to successfully integrate recent and future business combinations or acquisitions; the
ability to use net operating loss carry-forwards to offset future taxable income; the ability to service Company debt; product
liability claims and other litigation to which we may be subjected; product recalls and defects; timing and results of clinical
studies; the ability to obtain and protect Company intellectual property and proprietary rights; infringement and ownership of
intellectual property; the ability to remain accredited with the American Association of Tissue Banks; influence by Company
management; the ability to pay dividends; and the ability to issue preferred stock; and other factors. Additional risk factors are
listed in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading ''Risk Factors.'' You
should carefully consider the trends, risks and uncertainties described in this document, the Form 10-K and other reports filed
with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or
uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely
affected, the trading prices of our securities could decline, and you could lose all or part of your investment. 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 us or persons acting on our behalf are expressly qualified in their entirety by this cautionary
statement.
XTANT MEDICAL HOLDINGS, INC.
Consolidated Statements of Operations
*All dollars herein (000's) except per share amounts
|
|
Twelve Months Ended
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
Amount
|
|
|
% of Revenue
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orthopedic product sales
|
|
$ |
82,513 |
|
|
|
99.9 |
% |
|
|
89,388 |
|
|
|
99.3 |
% |
|
$ |
19,528 |
|
|
|
101.0 |
% |
|
|
24,362 |
|
|
|
99.6 |
% |
Other revenue
|
|
|
99 |
|
|
|
0.1 |
% |
|
|
615 |
|
|
|
0.7 |
% |
|
|
(195 |
) |
|
|
-1.0 |
% |
|
|
109 |
|
|
|
0.4 |
% |
Total Revenue
|
|
|
82,612 |
|
|
|
100.0 |
% |
|
|
90,003 |
|
|
|
100.0 |
% |
|
|
19,333 |
|
|
|
100.0 |
% |
|
|
24,471 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
32,511 |
|
|
|
39.4 |
% |
|
|
27,710 |
|
|
|
30.8 |
% |
|
|
9,039 |
|
|
|
46.8 |
% |
|
|
6,961 |
|
|
|
28.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
50,101 |
|
|
|
60.6 |
% |
|
|
62,293 |
|
|
|
69.2 |
% |
|
|
10,294 |
|
|
|
53.2 |
% |
|
|
17,510 |
|
|
|
71.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
15,246 |
|
|
|
18.5 |
% |
|
|
15,763 |
|
|
|
17.5 |
% |
|
|
3,325 |
|
|
|
17.2 |
% |
|
|
4,546 |
|
|
|
18.6 |
% |
Sales and marketing
|
|
|
40,512 |
|
|
|
49.0 |
% |
|
|
44,056 |
|
|
|
48.9 |
% |
|
|
9,474 |
|
|
|
49.0 |
% |
|
|
11,940 |
|
|
|
48.8 |
% |
Research and development
|
|
|
2,441 |
|
|
|
3.0 |
% |
|
|
3,411 |
|
|
|
3.8 |
% |
|
|
598 |
|
|
|
3.1 |
% |
|
|
798 |
|
|
|
3.3 |
% |
Depreciation and amortization
|
|
|
5,485 |
|
|
|
6.6 |
% |
|
|
4,941 |
|
|
|
5.5 |
% |
|
|
1,381 |
|
|
|
7.1 |
% |
|
|
1,250 |
|
|
|
5.1 |
% |
Acquisition and integration related expenses
|
|
|
- |
|
|
|
0.0 |
% |
|
|
1,401 |
|
|
|
1.6 |
% |
|
|
- |
|
|
|
0.0 |
% |
|
|
132 |
|
|
|
0.5 |
% |
Impairment intangible assets
|
|
|
17,586 |
|
|
|
21.3 |
% |
|
|
|
|
|
|
0.0 |
% |
|
|
17,586 |
|
|
|
91.0 |
% |
|
|
- |
|
|
|
0.0 |
% |
Restructuring expenses
|
|
|
4,680 |
|
|
|
5.7 |
% |
|
|
|
|
|
|
0.0 |
% |
|
|
1,853 |
|
|
|
9.6 |
% |
|
|
- |
|
|
|
0.0 |
% |
Separation related expenses
|
|
|
1,901 |
|
|
|
2.3 |
% |
|
|
- |
|
|
|
0.0 |
% |
|
|
505 |
|
|
|
2.6 |
% |
|
|
- |
|
|
|
0.0 |
% |
Non-cash consulting expense
|
|
|
85 |
|
|
|
0.1 |
% |
|
|
267 |
|
|
|
0.3 |
% |
|
|
(132 |
) |
|
|
-0.7 |
% |
|
|
- |
|
|
|
0.0 |
% |
Total Operating Expenses
|
|
|
87,936 |
|
|
|
106.4 |
% |
|
|
69,839 |
|
|
|
77.6 |
% |
|
|
34,590 |
|
|
|
178.9 |
% |
|
|
18,666 |
|
|
|
76.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations
|
|
|
(37,835 |
) |
|
|
-45.8 |
% |
|
|
(7,546 |
) |
|
|
-8.4 |
% |
|
|
(24,296 |
) |
|
|
-125.7 |
% |
|
|
(1,156 |
) |
|
|
-4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(14,705 |
) |
|
|
-17.8 |
% |
|
|
(12,263 |
) |
|
|
-13.6 |
% |
|
|
(4,166 |
) |
|
|
-21.5 |
% |
|
|
(3,288 |
) |
|
|
-13.4 |
% |
Change in warrant derivative liability
|
|
|
203 |
|
|
|
|
|
|
|
717 |
|
|
|
|
|
|
|
66 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Other income (expense)
|
|
|
(75 |
) |
|
|
-0.1 |
% |
|
|
(352 |
) |
|
|
-0.4 |
% |
|
|
(11 |
) |
|
|
-0.1 |
% |
|
|
(42 |
) |
|
|
-0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Total Other Income (Expense)
|
|
|
(14,577 |
) |
|
|
-17.6 |
% |
|
|
(11,898 |
) |
|
|
-13.2 |
% |
|
|
(1,361 |
) |
|
|
-7.0 |
% |
|
|
(3,330 |
) |
|
|
-13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Net Loss from Operations
|
|
$ |
(52,411 |
) |
|
|
-63.4 |
% |
|
$ |
(19,443 |
) |
|
|
-21.6 |
% |
|
$ |
(28,420 |
) |
|
|
-147.0 |
% |
|
$ |
(4,487 |
) |
|
|
-18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ |
(34.76 |
) |
|
|
|
|
|
$ |
(18.46 |
) |
|
|
|
|
|
$ |
(18.76 |
) |
|
|
|
|
|
$ |
(3.76 |
) |
|
|
|
|
Dilutive
|
|
$ |
(34.76 |
) |
|
|
|
|
|
$ |
(18.46 |
) |
|
|
|
|
|
$ |
(18.76 |
) |
|
|
|
|
|
$ |
(3.76 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,507,769 |
|
|
|
|
|
|
|
1,055,974 |
|
|
|
|
|
|
|
1,514,501 |
|
|
|
|
|
|
|
1,206,600 |
|
|
|
|
|
Dilutive
|
|
|
1,507,769 |
|
|
|
|
|
|
|
1,055,974 |
|
|
|
|
|
|
|
1,514,501 |
|
|
|
|
|
|
|
1,206,600 |
|
|
|
|
|
XTANT MEDICAL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
*All dollars herein (000's) except per share amounts
|
|
As of
|
|
|
As of
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,856
|
|
|
$
|
2,578
|
|
Trade accounts receivable, net of allowance for doubtful accounts of $2,135 and $1,653, respectively
|
|
|
12,714
|
|
|
|
18,992
|
|
Current Inventories, net
|
|
|
22,229
|
|
|
|
26,266
|
|
Prepaid and other current assets
|
|
|
1,706
|
|
|
|
1,150
|
|
Total current assets
|
|
|
39,505
|
|
|
|
48,986
|
|
|
|
|
|
|
|
|
|
|
Non-current inventories, net
|
|
|
194
|
|
|
|
972
|
|
Property and equipment, net
|
|
|
9,913
|
|
|
|
15,841
|
|
Goodwill
|
|
|
41,535
|
|
|
|
41,535
|
|
Intangible assets, net
|
|
|
13,826
|
|
|
|
35,941
|
|
Other assets
|
|
|
731
|
|
|
|
827
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
105,705
|
|
|
$
|
144,102
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,315
|
|
|
$
|
10,472
|
|
Accounts payable - related party
|
|
|
160
|
|
|
|
640
|
|
Revolving line of credit
|
|
|
-
|
|
|
|
10,448
|
|
Accrued liabilities
|
|
|
15,845
|
|
|
|
8,982
|
|
Warrant derivative liability
|
|
|
131
|
|
|
|
334
|
|
Current portion of capital lease obligations
|
|
|
365
|
|
|
|
245
|
|
Total current liabilities
|
|
|
25,818
|
|
|
|
31,121
|
|
|
|
|
|
|
|
|
|
|
Long-term Liabilities:
|
|
|
|
|
|
|
|
|
Capital lease obligation, less current portion
|
|
|
623
|
|
|
|
832
|
|
Long-term convertible debt, less issuance costs
|
|
|
70,853
|
|
|
|
68,937
|
|
Long-term debt, less issuance costs
|
|
|
67,109
|
|
|
|
50,284
|
|
Total Liabilities
|
|
|
164,404
|
|
|
|
151,175
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
Stockholders' Equity (Deficit):
|
|
|
|
|
|
|
|
|
Preferred stock, $0.000001 par value; 10,000,000 shares authorized; no shares issued and Outstanding
|
|
|
-
|
|
|
|
-
|
|
Common stock, $0.000001 par value; 50,000,000 shares authorized; 1,514,899 shares issued and outstanding as of December
31, 2017 and 1,437,442 shares issued and outstanding as of December 31, 2016 (Not in 000's)
|
|
|
2
|
|
|
|
1
|
|
Additional paid-in capital
|
|
|
86,247
|
|
|
|
85,461
|
|
Accumulated deficit
|
|
|
(144,946
|
)
|
|
|
(92,535
|
)
|
Total Stockholders' Equity (Deficit)
|
|
|
(58,699
|
)
|
|
|
(7,073
|
)
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Stockholders' Equity (Deficit)
|
|
$
|
105,705
|
|
|
$
|
144,102
|
|
XTANT MEDICAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
*All dollars herein (000's) except per share amounts
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(52,411
|
)
|
|
$
|
(19,494
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
8,409
|
|
|
|
7,242
|
|
Loss on intangible impairment and disposal of fixed assets
|
|
|
21,242
|
|
|
|
-
|
|
Non-cash interest
|
|
|
14,685
|
|
|
|
6,785
|
|
Loss on sale of fixed assets
|
|
|
10
|
|
|
|
25
|
|
Non-cash consulting expense/stock option expense
|
|
|
212
|
|
|
|
523
|
|
Provision for losses on accounts receivable and inventory
|
|
|
4,213
|
|
|
|
224
|
|
Change in derivative warrant liability
|
|
|
(203
|
)
|
|
|
(717
|
)
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts receivable
|
|
|
4,747
|
|
|
|
(2,680
|
)
|
Inventories
|
|
|
2,122
|
|
|
|
(4,074
|
)
|
Prepaid and other assets
|
|
|
(460
|
)
|
|
|
(484
|
)
|
Accounts payable
|
|
|
(1,637
|
)
|
|
|
319
|
|
Accrued liabilities
|
|
|
(1,472
|
)
|
|
|
(2,076
|
)
|
Net cash used in operating activities
|
|
|
(543
|
)
|
|
|
(14,407
|
)
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment and intangible assets
|
|
|
(1,641
|
)
|
|
|
(5,833
|
)
|
Proceeds from sale of fixed assets
|
|
|
33
|
|
|
|
16
|
|
Net cash used in investing activities
|
|
|
(1,608
|
)
|
|
|
(5,816
|
)
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from long-term and convertible debt, net of deferred and financing costs
|
|
|
12,787
|
|
|
|
3,238
|
|
Payments on capital leases
|
|
|
(88
|
)
|
|
|
(145
|
)
|
Net proceeds from the revolving line of credit
|
|
|
(10,448
|
)
|
|
|
10,253
|
|
Net proceeds from issuance of stock and warrants
|
|
|
178
|
|
|
|
3,087
|
|
Net cash provided by financing activities
|
|
|
2,429
|
|
|
|
16,434
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
278
|
|
|
|
(3,790
|
)
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
2,578
|
|
|
|
6,368
|
|
Cash and cash equivalents at end of year
|
|
$
|
2,856
|
|
|
$
|
2,578
|
|
XTANT MEDICAL HOLDINGS, INC.
Calculation of Adjusted EBITDA for the Periods Ended December 31, 2017
*All dollars herein (000's) except per share amounts
Unaudited
|
|
Twelve Months Ending (in 000's)
|
|
|
Three Months Ending (in 000's)
|
|
|
|
2017
|
|
|
2016
|
|
|
variance
|
|
|
|
Q4 2017 |
|
|
|
Q4 2016 |
|
|
|
variance |
|
Net loss
|
|
$ |
(52,411 |
) |
|
$ |
(19,493 |
) |
|
$ |
(32,918 |
) |
|
$ |
(28,420 |
) |
|
$ |
(4,536 |
) |
|
$ |
(23,883 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense
|
|
|
11 |
|
|
|
402 |
|
|
|
(391 |
) |
|
|
11 |
|
|
|
154 |
|
|
|
(143 |
) |
Depreciation & amortization
|
|
|
8,684 |
|
|
|
7,242 |
|
|
|
1,442 |
|
|
|
2,418 |
|
|
|
1,690 |
|
|
|
727 |
|
Interest expense
|
|
|
14,704 |
|
|
|
12,263 |
|
|
|
2,441 |
|
|
|
4,166 |
|
|
|
3,288 |
|
|
|
878 |
|
EBITDA
|
|
$ |
(29,012 |
) |
|
$ |
414 |
|
|
$ |
(29,426 |
) |
|
$ |
(21,825 |
) |
|
$ |
596 |
|
|
$ |
(22,421 |
) |
EBITDA/Total Revenue
|
|
|
|
% |
|
|
2 |
% |
|
|
|
|
|
|
-77 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA CALCULATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment intangible assets
|
|
|
17,586 |
|
|
|
|
|
|
|
17,586 |
|
|
|
17,586 |
|
|
|
|
|
|
|
17,586 |
|
Restructuring expenses
|
|
|
4,680 |
|
|
|
|
|
|
|
4,680 |
|
|
|
1,853 |
|
|
|
|
|
|
|
1,853 |
|
Separation related expenses
|
|
|
1,901 |
|
|
|
|
|
|
|
1,901 |
|
|
|
505 |
|
|
|
|
|
|
|
505 |
|
Litigation reserve
|
|
|
1,342 |
|
|
|
|
|
|
|
1,342 |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
Impairment surgical instruments
|
|
|
1,322 |
|
|
|
|
|
|
|
1,322 |
|
|
|
552 |
|
|
|
|
|
|
|
552 |
|
Non-cash compensation
|
|
|
212 |
|
|
|
522 |
|
|
|
(310 |
) |
|
|
(5 |
) |
|
|
- |
|
|
|
(5 |
) |
Dayton transition costs
|
|
|
|
|
|
|
|
|
|
|
290 |
|
|
|
290 |
|
|
|
|
|
|
|
290 |
|
Acquisition and integration related expenses
|
|
|
- |
|
|
|
1,401 |
|
|
|
(1,401 |
) |
|
|
|
|
|
|
131 |
|
|
|
(131 |
) |
Change in warrant derivative liability
|
|
|
(202 |
) |
|
|
(716 |
) |
|
|
514 |
|
|
|
(65 |
) |
|
|
- |
|
|
|
(65 |
) |
ADJUSTED EBITDA gain (loss)
|
|
$ |
(1,881 |
) |
|
$ |
1,621 |
|
|
$ |
(3,502 |
) |
|
$ |
(1,109 |
) |
|
$ |
727 |
|
|
$ |
(1,836 |
) |
ADJUSTED EBITDA/Total revenue
|
|
|
-2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
-6 |
% |
|
|
3 |
% |
|
|
|
|
Investor Contact
CG CAPITAL
877.889.1972
investorrelations@cg.capital
Company Contact
Xtant Medical
Molly Mason
mmason@xtantmedical.com
SOURCE: Xtant Medical Holdings, Inc.