RTI Surgical (RTIX) 8-K Rti Surgical® Announces 2015 Fourth Quarter, Full Year Results, 2016 Financial Guidance

Exhibit 99.1

FOR DISTRIBUTION ON	For more information, contact:
TUESDAY, FEBRUARY 16 AT 8:00 A.M.	Robert Jordheim
	Executive Vice President,
	Chief Financial Officer
	rjordheim@rtix.com
	Wendy Crites Wacker, APR
	Vice President, Global Communications
	wwacker@rtix.com
	Phone (386) 418-8888

RTI SURGICAL^® ANNOUNCES 2015 FOURTH QUARTER, FULL YEAR RESULTS, 2016 FINANCIAL GUIDANCE

– Company Achieves Record Annual Revenues –

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

ALACHUA, Fla. (Feb. 16, 2016) –RTI Surgical Inc. (RTI) (Nasdaq: RTIX), a global surgical implant company, reported operating results for the fourth quarter and full year of 2015 as follows:

Quarterly Highlights:

• Achieved worldwide revenues of $76.1 million, a 7 percent increase over the fourth quarter of 2014 (8 percent on a constant currency basis).

• Achieved adjusted net income per fully diluted share of $0.09 compared to adjusted net income per fully diluted share of $0.05 for the fourth quarter 2014.

• Achieved revenues of $18.2 million in the orthofixation business, a 61 percent increase over the fourth quarter of 2014.

• Achieved revenues of $11.1 million in the BGS and general orthopedic business, an 8 percent increase over the fourth quarter of 2014.

• Achieved revenues of $6.6 million in the dental business, a 10 percent increase over the fourth quarter of 2014.

• Achieved revenues of $5.5 million in the international business, an 11 percent increase on a constant currency basis over the fourth quarter of 2014.

2015 Full Year Highlights:

• Achieved record worldwide revenues of $282.3 million, a 7 percent increase over the full year of 2014 (9 percent on a constant currency basis).

• Achieved adjusted net income per fully diluted share of $0.23 compared to adjusted net income per fully diluted share of $0.11 for the full year 2014.

• Achieved revenues of $55.6 million in the orthofixation business, a 50 percent increase over the full year of 2014.

• Achieved revenues of $42.3 million in the BGS and general orthopedic business, a 15 percent increase over the full year of 2014.

• Achieved revenues of $23.6 million in the dental business, a 14 percent increase over the full year of 2014.

• Achieved revenues of $21.9 million in the international business, a 4 percent increase on a constant currency basis over the full year of 2014.

• nanOss^® 3D advanced bone graft substitute was awarded a 2015 Becker’s Healthcare Spine Device Award. Becker’s Healthcare recognized 25 spine devices throughout the industry for their contributions to advancing spine technology and patient care.

Fourth Quarter 2015

Worldwide revenues were $76.1 million for the fourth quarter of 2015 compared to revenues of $70.9 million for the fourth quarter of 2014. Domestic revenues were $70.6 million for the fourth quarter of 2015 compared to revenues of $65.4 million for the fourth quarter of 2014. International revenues were $5.5 million for the fourth quarter of 2015, which were comparable to the fourth quarter of 2014. On a constant currency basis, international revenues for the fourth quarter of 2015 increased 11 percent compared to the fourth quarter of 2014.

For the fourth quarter of 2015, the company reported net income applicable to common shares of $3.3 million and net income per fully diluted common share of $0.06, based on 58.5 million fully diluted shares outstanding, compared to net loss applicable to common shares of $136 thousand and net loss per fully diluted common share of $0.00 for the fourth quarter of 2014, based on 56.9 million fully diluted shares outstanding.

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), as detailed in the reconciliation provided later in this release, was $14.1 million for the fourth quarter of 2015 (18 percent of fourth quarter 2015 revenues) compared to $10.2 million for the fourth quarter of 2014 (14 percent of fourth quarter 2014 revenues).

Full Year 2015

Worldwide revenues were $282.3 million for the full year of 2015 compared to revenues of $262.8 million for the full year of 2014. Domestic revenues were $260.4 million for the full year of 2015 compared to revenues of $238.9 million for the full year of 2014. International revenues were $21.9 million for the full year of 2015, compared to revenues of $23.9 million for the full year of 2014. On a constant currency basis, international revenues for the full year of 2015 increased 4 percent compared to the full year of 2014.

For the full year of 2015, the company reported net income applicable to common shares of $11.6 million and net income per fully diluted common share of $0.20, based on 58.6 million fully diluted shares outstanding, compared to net loss applicable to common shares of $417 thousand and net loss per fully diluted common share of $0.01 for the full year of 2014, based on 56.7 million fully diluted shares outstanding.

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), as detailed in the reconciliation provided later in this release, was $46.3 million for the full year of 2015 (16 percent of full year 2015 revenues) compared to $34.0 million for the full year of 2014 (13 percent of full year 2014 revenues).

“At the beginning of the year we laid out a plan for growth based on our key value drivers of capturing market share in spine hardware, driving growth in our focused products, growing international revenue and controlling spending,” said Brian K. Hutchison, president and chief executive officer. “During 2015, we executed on all our value drivers and delivered strong annual growth of 7 percent. In addition, we more than doubled our adjusted net income per fully diluted common share from $0.11 for the full year 2014 to $0.23 for the full year 2015.”

Fiscal 2016 and First Quarter Outlook

The company expects full year revenues for 2016 to be between $280 million and $290 million, based on growth in its direct businesses offset by declines in its commercial business. The company expects full year revenue from its direct business to be between $156 million to $160 million, compared to $138.8 million for the full year 2015, and expects full year revenue from its commercial/other business to be between $124 million and $130 million, compared to $143.5 million for the full year 2015. Full year net income per fully diluted common share is expected to be in the range of $0.18 to $0.21, based on 59.8 million fully diluted common shares outstanding. During 2016, the company plans to

spend an incremental amount of approximately $1.4 million, or $0.02 per fully diluted common share, in research and development expenses related to ongoing development of the company’s long-term xenograft tendon project.

For the first quarter of 2016, the company expects revenues to be between $65 million and $66 million and net income per fully diluted common share to be approximately $0.03, based on 59 million fully diluted shares outstanding.

“As a company, we are focused on driving growth in our direct business,” Hutchison said. “In order to provide clarity on our performance we are adjusting the way we report revenue. Specifically, we will break out our total direct business revenue into the following components: spine, sports/orthopedics, surgical specialties, cardiothoracic and international. In addition, we will consolidate our commercial business into a single revenue category. We believe this will provide better visibility into our direct businesses as well as correlate to identifiable end markets. For convenience, we are showing both the traditional revenue reporting and the new revenue reporting in this release. We have also posted a three year quarterly history of both the traditional and new revenue reporting on our website www.rtix.com.”

Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the fourth quarter and full year 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 following the call.

About RTI Surgical Inc.

RTI Surgical is a leading global surgical implant company providing surgeons with safe biologic, metal and synthetic implants. Committed to delivering a higher standard, RTI’s implants are used in sports medicine, general surgery, spine, orthopedic, trauma and cardiothoracic procedures and are distributed in nearly 50 countries. RTI is headquartered in Alachua, Fla., and has four manufacturing facilities throughout the U.S. and Europe. RTI is accredited in the U.S. by the American Association of Tissue Banks and is a member of AdvaMed. For more information, please visitwww.rtix.com.

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 actions or 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 SURGICAL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except share and per share data)

	Three months ended						Twelve months ended
	December 31,						December 31,
	2015			2014			2015			2014
Revenues	$	76,121		$	70,873		$	282,293		$	262,810
Costs of processing and distribution		35,814			33,021			132,551			129,013
Gross profit		40,307			37,852			149,742			133,797
Expenses:
Marketing, general and administrative		27,351			28,091			107,439			107,653
Research and development		3,573			4,138			15,065			15,536
Asset abandonments		814			—			814			—
Litigation and settlement charges		804			185			804			185
Severance charges		995			4,341			995			4,798
Total operating expenses		33,537			36,755			125,117			128,172
Operating income		6,770			1,097			24,625			5,625
Total other expense - net		(425	)		(300	)		(1,411	)		(1,436	)
Income before income tax provision		6,345			797			23,214			4,189
Income tax provision		(2,179	)		(138	)		(8,299	)		(1,493	)
Net income		4,166			659			14,915			2,696
Convertible preferred dividend		(845	)		(795	)		(3,305	)		(3,113	)
Net income (loss) applicable to common shares	$	3,321		$	(136	)	$	11,610		$	(417	)
Net income (loss) per common share - basic	$	0.06		$	(0.00	)	$	0.20		$	(0.01	)
Net income (loss) per common share - diluted	$	0.06		$	(0.00	)	$	0.20		$	(0.01	)
Weighted average shares outstanding - basic		57,793,509			56,910,377			57,611,231			56,735,924
Weighted average shares outstanding - diluted		58,450,690			56,910,377			58,590,494			56,735,924

RTI SURGICAL, INC. AND SUBSIDIARIES

Reconciliation of Net Income (Loss) Applicable to Commons Shares to Adjusted EBITDA

(Unaudited, in thousands)

	Three Months						Twelve Months
	Ended December 31,						Ended December 31,
	2015			2014			2015			2014
Net income (loss)	$	3,321		$	(136	)	$	11,610		$	(417	)
Interest expense, net		511			301			1,489			1,348
Provision for income taxes		2,179			138			8,299			1,493
Depreciation		3,028			2,906			12,240			11,010
Amortization of intangible assets		1,037			1,076			4,282			4,385
EBITDA		10,076			4,285			37,920			17,819
Reconciling items impacting EBITDA
Preferred dividend		845			795			3,305			3,113
Non-cash stock based compensation		633			552			2,548			2,247
Foreign exchange (gain) loss		(86	)		(1	)		(78	)		88
Other reconciling items(1)
Asset abandonments		814			—			814			—
Litigation and settlement charges		804			185			804			185
Severance charges		995			4,341			995			4,798
Inventory purchase accounting adjustment		—			—			—			5,708
Adjusted EBITDA	$	14,081		$	10,157		$	46,308		$	33,958
Adjusted EBITDA as a percent of revenues		18	%		14	%		16	%		13	%

(1) See explanations in Use of Non-GAAP Financial Measures section later in this release

RTI SURGICAL, INC. AND SUBSIDIARIES

Reconciliation of Net Income (Loss) Applicable to Common Shares and Net Income (Loss) Per Diluted Share to

Adjusted Net Income Applicable to Common Shares and Adjusted Net Income Per Diluted Share

(Unaudited, in thousands except per share data)

	Three Months Ended
	December 31, 2015					December 31, 2014
	Net					Net
	Income			Amount		Loss			Amount
	Applicable to			per Diluted		Applicable to			per Diluted
	Common Shares			Share		Common Shares			Share
As reported	$	3,321		$	0.06	$	(136	)	$	(0.00	)
Asset abandonments, net of tax effect (1)		584			0.01		—			—
Litigation and settlement charges, net of tax effect (2)		543			0.01		133			0.00
Severance charges, net of tax effect (3)		615			0.01		2,710			0.05
Adjusted	$	5,063		$	0.09	$	2,707		$	0.05
	Twelve Months Ended
	December 31, 2015					December 31, 2014
	Net					Net
	Income			Amount		Loss			Amount
	Applicable to			per Diluted		Applicable to			per Diluted
	Common Shares			Share		Common Shares			Share
As reported	$	11,610		$	0.20	$	(417	)	$	(0.01	)
Asset abandonments, net of tax effect (1)		584			0.01		—			—
Litigation and settlement charges, net of tax effect (2)		543			0.01		133			0.00
Severance charges, net of tax effect (4)		615			0.01		3,007			0.05
Inventory purchase accounting adjustment, net of tax effect (5)		—			—		3,467			0.06
Adjusted	$	13,352		$	0.23	$	6,190		$	0.11
Note: Amounts may not foot due to rounding.
Footnotes:	2015					2014
(1) Asset abandonments, net of tax effect, as follows:
Asset abandonments	$	814
Tax effect on asset abandonments		(230	)
Asset abandonments, net of tax effect	$	584
(2) Litigation and settlement charges, net of tax effect, as follows:
Litigation and settlement charges	$	804				$	185
Tax effect on litigation and settlement charges		(261	)				(52	)
Litigation and settlement charges, net of tax effect	$	543				$	133
(3) Severance charges, net of tax effect, as follows:
Severance charges	$	995				$	4,341
Tax effect on severance charges		(380	)				(1,631	)
Severance charges, net of tax effect	$	615				$	2,710
(4) Severance charges, net of tax effect, as follows:
Severance charges	$	995				$	4,798
Tax effect on severance charges		(380	)				(1,791	)
Severance charges, net of tax effect	$	615				$	3,007
(5) Inventory purchase accounting adjustment, net of tax effect, as follows:
Inventory purchase accounting adjustment						$	5,708
Tax effect on inventory purchase accounting adjustment							(2,241	)
Inventory purchase accounting adjustment, net of tax effect						$	3,467

Use of Non-GAAP Financial Measures

To supplement the Company’s condensed consolidated financial statements presented on a GAAP basis, the Company discloses adjusted EBITDA, a non-GAAP financial measure that excludes certain amounts. This non-GAAP financial measure is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. A reconciliation of the non-GAAP financial measure to the corresponding GAAP measure is included in the table above.

The following is an explanation of the adjustment that management excluded as part of adjusted measures for the three and twelve month period ended December 31, 2015 and 2014 as well as the reason for excluding the individual items:

(1) 2015 Asset abandonments – This adjustment represents an abandonment of certain long-term assets at our German facility. Management removes the amount of these costs from our operating results to assist in assessing our operating performance in the year-to-date period and to supplement a comparison to our past operating performance.

(2) 2015 and 2014 Litigation and settlement charges – This adjustment represent charges relating to settlements of domestic and international distributor disputes. Management removes the amount of these costs from our operating results to assist in assessing our operating performance in the year-to-date period and to supplement a comparison to our past operating performance.

(3) 2015 and 2014 Severance charges – This adjustment represents charges relating to the termination of former employees. Management removes the amount of these costs from our operating results to assist in assessing our operating performance in the year-to-date period and to supplement a comparison to our past operating performance.

(4) 2015 and 2014 Severance charges – This adjustment represents charges relating to the termination of former employees. Management removes the amount of these costs from our operating results to assist in assessing our operating performance in the year-to-date period and to supplement a comparison to our past operating performance.

(5) 2014 Inventory purchase accounting adjustment – This adjustment represents the purchase price effects on the sale of inventory acquired in the Pioneer Surgical Technologies, Inc. acquisition in 2013, which have been included in costs of processing and distribution. Management removes the amount of these nonrecurring costs from the Company’s operating results to assist in assessing its operating performance in the periods affected and to supplement a comparison to the Company’s past operating performance.

Material Limitations Associated with the Use of Non-GAAP Financial Measures

Adjusted EBITDA should not be considered in isolation, or as a replacement for GAAP measures.

Usefulness of Non-GAAP Financial Measures to Investors

The Company believes that presenting adjusted EBITDA in addition to the related GAAP measures provide investors greater transparency to the information used by management in its financial decision-making which excludes the inventory purchase accounting adjustment. The Company further believes that providing this information better enables the Company’s investors to understand the Company’s overall core performance and to evaluate the methodology used by management to assess and measure such performance.

Traditional revenue reporting:

RTI SURGICAL, INC. AND SUBSIDIARIES

Condensed Consolidated Revenues

(Unaudited, in thousands)

	Three Months Ended				Twelve months ended
	December 31,				December 31,
	2015		2014		2015		2014
Revenues:
Spine	$	19,417	$	21,768	$	76,968	$	82,663
Ortho fixation		18,200		11,296		55,585		37,133
Sports medicine		12,051		12,582		46,735		46,758
Bone graft substitutes and general orthopedic		11,132		10,275		42,283		36,747
Dental		6,630		6,003		23,621		20,810
Surgical specialties		5,826		5,792		23,499		26,999
Other revenues		2,865		3,157		13,602		11,700
Total revenues	$	76,121	$	70,873	$	282,293	$	262,810
Domestic revenues		70,636		65,438		260,387		238,936
International revenues		5,485		5,435		21,906		23,874
Total revenues	$	76,121	$	70,873	$	282,293	$	262,810

New revenue reporting:

RTI SURGICAL, INC. AND SUBSIDIARIES

Condensed Consolidated Revenues

(Unaudited, in thousands)

	Three Months Ended				Twelve months ended
	December 31,				December 31,
	2015		2014		2015		2014
Revenues:
Spine	$	15,608	$	15,566	$	57,983	$	52,270
Sports / Ortho		13,058		13,501		50,712		48,975
Surgical specialties		1,025		570		3,029		1,631
Cardiothoracic		2,296		1,776		8,699		6,997
International		4,400		4,504		18,338		20,327
Total Direct		36,387		35,917		138,761		130,200
Global Commercial		36,869		31,799		129,930		120,910
Other		2,865		3,157		13,602		11,700
Total revenues	$	76,121	$	70,873	$	282,293	$	262,810
Domestic revenues		70,636		65,438		260,387		238,936
International revenues		5,485		5,435		21,906		23,874
Total revenues	$	76,121	$	70,873	$	282,293	$	262,810

RTI SURGICAL, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

	December 31,			December 31,
	2015			2014
Assets
Cash and cash equivalents	$	12,614		$	15,703
Accounts receivable - net		47,243			38,833
Inventories - net		118,673			113,464
Prepaid and other assets		13,184			29,496
Total current assets		191,714			197,496
Property, plant and equipment - net		84,992			77,028
Goodwill		54,887			54,887
Other assets - net		49,472			48,724
Total assets	$	381,065		$	378,135
Liabilities and Stockholders’ Equity
Accounts payable	$	20,446		$	26,834
Accrued expenses and other current liabilities		33,474			30,673
Current portion of long-term obligations		6,009			6,479
Total current liabilities		59,929			63,986
Deferred revenue		9,354			12,460
Long-term liabilities		74,103			81,020
Total liabilities		143,386			157,466
Preferred stock		56,323			52,834
Stockholders’ equity:
Common stock and additional paid-in capital		417,337			415,570
Accumulated other comprehensive loss		(7,042	)		(3,881	)
Accumulated deficit		(228,939	)		(243,854	)
Total stockholders’ equity		181,356			167,835
Total liabilities and stockholders’ equity	$	381,065		$	378,135

RTI SURGICAL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

	Three Months						Twelve Months
	Ended December 31,						Ended December 31,
	2015			2014			2015			2014
Cash flows from operating activities:
Net income	$	4,166		$	659		$	14,915		$	2,696
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		4,065			3,982			16,522			15,395
Stock-based compensation		633			1,337			2,548			3,032
Amortization of deferred revenue		(1,160	)		(1,207	)		(6,225	)		(5,420	)
Other items to reconcile to net cash provided by operating activities		(1,131	)		659			(18,764	)		(8,809	)
Net cash provided by operating activities		6,573			5,430			8,996			6,894
Cash flows from investing activities:
Purchases of property, plant and equipment		(4,771	)		(4,305	)		(17,740	)		(15,577	)
Patent and acquired intangible asset costs		(249	)		(331	)		(498	)		(737	)
Net cash used in investing activities		(5,020	)		(4,636	)		(18,238	)		(16,314	)
Cash flows from financing activities:
Proceeds from long-term obligations		2,000			2,000			8,750			7,000
Net (payments) proceeds from short-term obligations		(86	)		(493	)		422			658
Payments on long-term obligations		(1,133	)		(12	)		(5,294	)		(682	)
Other financing activities		88			210			2,396			894
Net cash provided by financing activities		869			1,705			6,274			7,870
Effect of exchange rate changes on cash and cash equivalents		(116	)		(726	)		(121	)		(1,468	)
Net increase (decrease) in cash and cash equivalents		2,306			1,773			(3,089	)		(3,018	)
Cash and cash equivalents, beginning of period		10,308			13,930			15,703			18,721
Cash and cash equivalents, end of period	$	12,614		$	15,703		$	12,614		$	15,703