RTI Surgical (RTIX) 8-K Rti Biologics Announces 2012 First Quarter Results

Exhibit 99.1

FOR RELEASE ON	For more information, contact:
THURSDAY, APRIL 26, 2012	Robert Jordheim
8:00 A.M. ET	Chief Financial Officer
	rjordheim@rtix.com
	Wendy Crites Wacker, APR
	Corporate Communications
	wwacker@rtix.com
	Phone (386) 418-8888

RTI BIOLOGICS ANNOUNCES 2012 FIRST QUARTER RESULTS

– Company Will Hold Conference Call at 8:30 a.m. ET –

ALACHUA, Fla. (April 26, 2012) –RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the first quarter of 2012 as follows:

Quarterly Highlights:

• Achieved quarterly revenues of $43.7 million, an increase of 8 percent compared to the first quarter of 2011 and exceeding the company’s guidance of between $41 and $42 million.

• Achieved quarterly earnings per fully diluted share of $0.04, an increase of $0.02 compared to the first quarter of 2011 and exceeding the company’s guidance of $0.03 per fully diluted share.

• Achieved quarterly revenues of $13.4 million in the direct sports medicine business, a 15 percent increase compared to the first quarter of 2011.

• Achieved quarterly revenues of $7.0 million in the bone graft substitutes and general orthopedic (BGS/GO) business, a 15 percent increase compared to the first quarter of 2011.

• Achieved international revenues of $5.9 million, a 9 percent increase compared to the first quarter of 2011.

• Achieved quarterly revenues of $14.1 million in the U.S. direct distribution organization, a 16 percent increase over the first quarter of 2011. The U.S. direct distribution organization includes sports medicine and some BGS/GO implants.

“We are pleased with our first quarter results, which exceeded our expectations and were driven primarily by growth in our direct sports medicine and BGS/GO businesses, as well as in our dental business,” said Brian K. Hutchison, president and CEO of RTI.

Worldwide revenues of $43.7 million for the first quarter of 2012 were up 8 percent compared to the first quarter of 2011. Domestic revenues of $37.9 million for the first quarter of 2012 were up 7 percent compared to the first quarter of 2011, primarily based on the strength of the sports medicine, BGS/GO and dental businesses. International revenues of $5.9 million increased 9 percent compared to the first quarter of 2011 due to the strength of the surgical specialties business and the export of sports medicine and BGS/GO implants. On a constant currency basis, international revenues increased 12 percent compared to the first quarter of 2011.

For the first quarter of 2012, the company reported net income of $2.0 million and net income per fully diluted share of $0.04, based on 55.9 million fully diluted shares outstanding, compared to net income of $1.2 million and net income per fully diluted share of $0.02 based on 55.0 million fully diluted shares outstanding.

Fiscal 2012 and Second Quarter Outlook

As a result of better than expected results in the first quarter, the company is raising its full year revenue guidance for 2012. The company now expects full year revenues for 2012 to be between $176 million and $178 million, as compared to prior guidance of between $174 million and $176 million. Full year net income is expected to be between $0.16 and $0.17 per fully diluted share, based on 56.1 million shares outstanding, as compared to our prior guidance of between $0.15 and $0.17 per fully diluted share.

For the second quarter of 2012, the company expects revenues to be between $43 million and $44 million, and net income per fully diluted share to be approximately $0.04.

“We had a strong start to the year with solid results for the first quarter of 2012,” Hutchison said. “Based on the strength of the first quarter, we elected to raise our full year revenue guidance and have tightened our earnings guidance. As stated in our January 2012 release, we are investing in new product development initiatives and direct distribution during this year, which we anticipate will positively impact our future revenue growth.”

Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the first quarter 2012 results at 8:30 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website atwww.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterilebiologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensivetesting and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – theBioCleanse® Tissue Sterilization Process and theTutoplast® Tissue Sterilization Process – have a combined record of more than two million implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,”

“believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website atwww.rtix.com or the SEC’s website atwww.sec.gov.

RTI BIOLOGICS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

	Three Months Ended March 31,
	2012			2011
Revenues:
Fees from tissue distribution	$	42,121		$	39,519
Other revenues		1,622			1,127
Total revenues		43,743			40,646
Costs of processing and distribution		23,637			22,309
Gross profit		20,106			18,337
Expenses:
Marketing, general and administrative		14,374			13,909
Research and development		2,827			2,418
Asset abandonments		16			57
Total operating expenses		17,217			16,384
Operating income		2,889			1,953
Total other income (expense) - net		55			(84	)
Income before income tax provision		2,944			1,869
Income tax provision		(942	)		(621	)
Net income	$	2,002		$	1,248
Net income per common share - basic	$	0.04		$	0.02
Net income per common share - diluted	$	0.04		$	0.02
Weighted average shares outstanding - basic		55,712,485			54,889,759
Weighted average shares outstanding - diluted		55,923,946			54,984,707

RTI BIOLOGICS, INC. AND SUBSIDIARIES

Condensed Consolidated Revenues

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2012		2011
Revenues from tissue distribution:
Sports medicine	$	13,425	$	11,689
Spine		8,560		9,710
Surgical specialties		7,797		7,911
Bone graft substitutes and general orthopedic		7,015		6,107
Dental		5,324		4,102
Other revenues		1,622		1,127
Total revenues	$	43,743	$	40,646
Domestic revenues		37,873		35,245
International revenues		5,870		5,401
Total revenues	$	43,743	$	40,646

RTI BIOLOGICS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

	March 31, 2012			December 31, 2011
Assets
Cash and cash equivalents	$	47,588		$	46,178
Accounts receivable - net		19,576			20,674
Inventories - net		75,657			76,598
Prepaid and other current assets		16,205			16,231
Total current assets		159,026			159,681
Property, plant and equipment - net		46,337			44,532
Other assets - net		26,365			25,814
Total assets	$	231,728		$	230,027
Liabilities and Stockholders’ Equity
Accounts payable	$	11,142		$	11,141
Accrued expenses and other current liabilities		20,983			24,028
Current portion of long-term obligations		357			448
Total current liabilities		32,482			35,617
Deferred revenue		22,425			20,589
Long-term liabilities		1,176			1,402
Total liabilities		56,083			57,608
Stockholders’ equity:
Common stock and additional paid-in capital		412,373			411,741
Accumulated other comprehensive loss		(1,592	)		(2,184	)
Accumulated deficit		(235,136	)		(237,138	)
Total stockholders’ equity		175,645			172,419
Total liabilities and stockholders’ equity	$	231,728		$	230,027

RTI BIOLOGICS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2012			2011
Cash flows from operating activities:
Net income	$	2,002		$	1,248
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		1,909			1,925
Stock-based compensation		525			499
Amortization of deferred revenue		(1,164	)		(1,006	)
Other items to reconcile to net cash provided by operating activities		1,093			3,814
Net cash provided by operating activities		4,365			6,480
Cash flows from investing activities:
Purchases of property, plant and equipment		(2,803	)		(494	)
Patent and acquired intangible asset costs		(65	)		(1,021	)
Net cash used in investing activities		(2,868	)		(1,515	)
Cash flows from financing activities:
Proceeds from exercise of common stock options		100			185
Payments on long-term obligations		(199	)		(276	)
Other		(20	)		—
Net cash used in financing activities		(119	)		(91	)
Effect of exchange rate changes on cash and cash equivalents		32			60
Net increase in cash and cash equivalents		1,410			4,934
Cash and cash equivalents, beginning of period		46,178			28,212
Cash and cash equivalents, end of period	$	47,588		$	33,146