BELGRADE, Mont., Nov. 07, 2019 (GLOBE NEWSWIRE) — 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 30, 2019.
Third Quarter 2019 Financial Highlights and Recent Announcements:
- Revenue for the third quarter of 2019 was $15.7 million, compared to $17.3 million for the same prior year period
- Operating expenses in the third quarter of 2019 were $11.2 million, compared to $13.0 million for the same prior year period
- Net loss incurred in the third quarter of 2019 was $1.9 million, compared to a net loss of $3.2 million for the same prior year period
- Non-GAAP Adjusted EBITDA for the third quarter of 2019 was $0.6 million, compared to $1.8 million for the same prior year period
- Board of Directors appoints Sean Browne President and Chief Executive Officer effective October 7, 2019 and a member of the Board effective October 30, 2019
Sean Browne, President and CEO of Xtant Medical, said, “After my first month with Xtant, I am excited about the Company, our unique products and dedicated employees. I am pleased with our efforts and results over the past three quarters enhancing the operational effectiveness of our business. We remain committed to continuing to develop and release new products, expand our marketing programs, and pursue operational improvements intended to assist us in our overall commercial performance.”
Third Quarter 2019 Financial Results
Third quarter 2019 revenue was $15.7 million, compared to $17.3 million for the same period in 2018. This decrease was due primarily to reduced demand for hardware products, which was attributable in part to the termination of an advisory agreement with an entity that provided services to certain customers, and the continued transition of independent sales agents.
Gross margin for the third quarter of 2019 was 66.6%, which was comparable to the same period in 2018.
Operating expenses for the third quarter of 2019 were $11.2 million, compared to $13.0 million for the third quarter of 2018, a decrease of 13.7%. The decrease was primarily attributable to lower sales commissions and travel expenses, restructuring expenses incurred during the year-ago period, and a decrease in amortization expense related to the impairment of intangible assets that occurred in the fourth quarter of 2018, which were partially offset by higher general and administrative expenses.
Third quarter 2019 net loss was $1.9 million, or $0.14 per share, compared to third quarter 2018 net loss of $3.2 million, or $0.24 per share.
Non-GAAP Adjusted EBITDA for the third quarter of 2019 was $0.6 million compared to $1.8 million for the same period of 2018. The Company defines non-GAAP Adjusted EBITDA as net income/loss from operations before depreciation, amortization and interest expense, and as further adjusted to add back in or exclude, as applicable, non-cash special charges, provision for losses on accounts receivable and inventory, non-cash compensation, changes in warrant derivative liability, field action expenses, separation related expenses, litigation reserves, and restructuring expenses. A calculation and reconciliation of non-GAAP Adjusted EBITDA to net loss can be found in the attached financial tables.
Xtant Medical will host a webcast and conference call to discuss the third quarter 2019 financial results on Thursday, November 7, 2019 at 9:00 AM ET. To access the webcast, Click Here. To access the conference call, dial 877-407-6184 within the U.S. or 201-389-0877 outside the U.S. A replay of the call will be available at www.xtantmedical.com, under “Investor Info.”
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 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.
The 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.
Non-GAAP Financial Measures
To 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.