XTNT - Earnings call transcript Q3 2019 | Xtant Medical Holdings, Inc.

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Operator

Greetings, and welcome to the Xtant Medical Third Quarter 2019 Financial Results Conference Call. At this time all participants are in listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to David Carey of Lazar FINN Partners. Please go ahead. Carey David

David Carey

and Medical’s operator, Financial Quarter to Call. Results welcome you, Third Xtant XXXX Thank

is President Chief Sean Officer; today company’s and me Joining Browne, on posted Jensen, call being the President, will Today’s be and for and Vice Finance Officer. and playback. Financial website is webcast Greg Executive Chief

other and on perspective Risk future and forward-looking April this company’s of filed expected may the and the intends and of course may similar statements the identified performance involve SEC forward-looking such words and risks on Xtant’s the results differ with materially. management by company’s trends believe, make as will, and the annual performance. Factors events These on statements certain can section be report During expect, those call, should, Any forward-looking Form the information are may, words uncertainties, reflect current XX-K X, guarantees statements in future existing with regarding not such future Actual anticipate, of including XXXX. meaning. noted plan,

otherwise our website. non-GAAP our release results that X-K, financial appear The certain provides discussion detailed in our include release, reconciliations, to a measures. tables with to Please and narrative Note describes refer the that on today’s our financial of press the are which our release and non-GAAP measures. company’s available filed financial on GAAP press such Form results press use

by declines X, be approximately any you company law. its of recorded may those listening the Daylight November of who held as statements benefit except update Eastern to Time. X call at the and required forward-looking replay, to For applicable on obligation Thursday, a.m. The this was

over turn to Browne. the like Sean to I’d Now call

Sean Browne

impressed listening. to to the despite also solutions Xtant a morning team. challenges. to shared When approached pool talent was I Thank to Xtant, first that the enormous I opportunity on excited long-term I real products I of by work I has you, innovative company and near- by recent like at team David, for the Medical that, Xtant am to developing potential. clinical at join was everyone challenges, saw the and would of good how the express to offer and everyone extensive commitment

my expertise number my just dedication that strategies can already my I’ve one will productive position that we have the in month, with future join first The and this through and initial success. the been me for give factor impressions team In execute Xtant, interactions confidence commitment exceeded team. the was of decision company their and had value collective and to develop the

I’m now Xtant in beyond for achieve will the process and allow to vision to develop of working team growth potential. that with full our its XXXX executive a

challenges, more We its the the forward execution While shareholders. will for new of: developing detail prior with initial three innovative culture network; additional our updates three, focus in in one, Xtant strategic our to continues company excellence. my creation core value to on our continuing providing long-term coming and a to with throughout operational and customers these patients, be of I to establish two, products; reengaging believe to plan the months. is distributor address achieve our goals look our items

achieved results is as new to on we improving generate regain putting Chief marketing Commercial second Led distributors a are promising and in track by momentum. our channel with recruiting on our third the quarter, to the increase revenues sequential initiatives These quarter trajectory. Brandt, revenue quarter. our to and back Officer, sales compared beginning us quarter. for third we to our focused several turning performance the stabilize Now our sales In implemented designed increase Kevin measures our

and featured innovative which Calix-C and Implant. addition our product Plasma interbody on introductions. the spacer; Annual products Atrix-C three and products, recently Congress NASS greater options. portfolio We Spacer; a Interbody Neurological and our the cervical new we new PEEK more are focusing at introduced XXXX patients Titanium give Intice-C of to These revenue these In Coated surgeons Meeting. Cervical showed drivers, Surgeons we These products PC Union, the included at expand our

are commitment and At to development new additional Xtant, roll product expect we XXXX. new making products in a to

we In company’s enhancing is track complete upgrading to we remain efficiencies. of half drivers, the first existing addition platform, first in to phase the on enterprise during are XXXX this phase second operational area upgrade particular and XXXX. the of our resource focused our of quarter the we revenue remain growth that our planning One and in fourth on

We topic, Xtant, continue New in progress York American listing, Exchange important with believe this sales that necessary serve upgrade we regain outlined improve deployed. for for are to performance and certain is resources make which maintaining achieving our greatly customers, we our will to another our better enable our Stock how the listing employees by requirements. to On to milestones improving our compliance

Xtant October granted reminder, plan period X, has a such so to XXXX, been date. is prior through and compliance regain to As to doing a committed

the I of and financial results. XXXX quarter Jensen over to year-to-date turn Greg third would call to our Now like discussion for a

Greg Jensen

same Sean. in $XX.X Thanks, quarter revenue Total was of for for third million XXXX. compared $XX.X the the to period million XXXX

was an margin advisory services XXXX, products, part These reduced for that demand to and of customers an were million internal meet to For with that of our the to total provided to do our our continued transitioning certain the of was contribution agreement of decreases independent parameters. million sales which agents XXXX. entity the termination the of $XX.X not some in attributed compared primarily first due months first nine for nine months $XX.X revenue hardware

to XX.X%, nine margin in comparable third XXXX. nine which same was margin compared the for the for XX.X% was of XXXX. XX.X% period the quarter first of to XXXX the Gross first of months was Gross XXXX for months

were the Third year quarter to expenses a in million $XX.X XXXX operating period million compared $XX same ago.

of expense for operating of XXXX. $XX.X million were million $XX.X to months nine XXXX first first For nine compared months the the

revenue, and three XXXX, the the were XX.X% XX, for and expenses compared of respectively. September nine and XX.X% months a and for total operating As September months XX.X% XX, ended nine three to ended XXXX, respectively, percentage XX%

million and months in period and General period ended three expenses compared $X.X for to increased the nine same compared increased the XXXX, XXXX the to months in by $X by $X.X September XX, million million to $X.X for to first of for administrative XXXX million XXXX. $XX million for the same million $XX.X

bad increases and finance settlements. for These in executive increase in debt fees, recruiting comparison accounting nine-month of the to legal consultants due and and primarily expense, retention were increases the

the by lower intangibles were offset amortization the both in XXXX, periods For of X-spine hardware in expense expenses increase reporting and from general acquisition. administrative partially

decrease Sales for million attributable to XX% XX, and the nine-month team for the expenses periods the and sales the nine-month and reorganization periods, $X.X and marketing of were commissions. commercial September and sales respectively, $XX.X a ended were XXXX, and XX% of three- respectively. million lower The primarily three- decreases

was the loss million XXXX The headcount or compared per $X.X prior a in and approximately year. share expenses XX% a Research $XXX,XXX $X.XX share to And or compared $X.X XXXX XXXX, third net in decrease to for in period. for quarter XX% or the decreased expenses development due lower period for million September per the were business same XXXX. third of by nine-month the loss the of $X.XX for compared with XX, R&D the the quarter $XXX,XXX to ending comparable of period

million XXXX XXXX. loss $XXX,XXX of net XXXX. $XX.X same was was period year-to-date $X.XX to per compared for million the $X.XX XXXX share months to to of million share million The of compared nine the in adjusted first the Non-GAAP EBITDA period was the $X.X $X.X compared for or quarter XXXX for for same $X.X or per Non-GAAP XXXX. EBITDA million for third $X.X adjusted of

under have and equivalents, XXXX, our $X.X we XX, cash of $X.X September of million of accounts million cash million receivable credit of facility. $XX.X inventory and million As net $XX and available

call Now for additional comments. Sean back I’ll the turn to

Sean Browne

Thank closing, in have Medical the believe business include high-value our to solutions. expand stabilize team my I’d operational to emphasize product I efficiencies. of the to taken position potential to realize In our the clinical truly steps growth the enhancing that and recent team. additional positive you, right revenues to in place for and Greg. we we quarters, products excitement our have Xtant portfolio while current In joining full like

a long-term future providing value create integrating I’m of on focus our culture customers forward for will you to listening. updates that confident in with achieving for to shareholders. execution laser-like patients, and our look our a progress Thank calls. us our strategic position objectives I on

Operator

today’s concludes Thank joining. parties disconnect. That call. All Thank may for you you. now

Xtant Medical (XTNT) 9 Nov 192019 Q3 Earnings call transcript