XTNT - Earnings call transcript Q2 2020 | Xtant Medical Holdings, Inc.

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Operator

Greetings and welcome to Xtant Medical second quarter 2020 financial results conference call. At this time, all participants are in a listen-only mode. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to Matt Steinberg of Lazar FINN Partners. ahead. go Please

Matt Steinberg

and financial operator Xtant second Medical's Thank call. welcome XXXX results quarter you to

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

supplemented our XXXX and today's filed release with filed our the materially. use and non-GAAP our refer release the that financial detailed press the certain existing may, as During statements the which describes that performance. results and will, on are such similar may events expected future not a intends results, our Factors company's and the Risk including narrative our reconciliations regarding results filings. involve available press These current of on other statements on statements of The appear trends SEC financial tables the X-K of words company's meaning. call, Xtant's plan, future may management X, to of can words by to this company's website. differ discussion on and with uncertainties performance course and section and XX-K future the are SEC of anticipate, with Actual should, GAAP subsequent financial by make forward-looking Report Please reflect in believe, measures. guarantees risk Annual forward-looking forward-looking non-GAAP be certain press Note March otherwise information in such include expect, Form Any Form company's release noted such measures. and perspective identified and as provides those the

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

turn to Browne. Sean the call over like I Now, would to

Sean Browne

Matt you and everyone good listening. to afternoon Thank

not start was while The healthcare the elective on procedures the the Beginning of our debilitating strategic Throughout resume. second the at $XX.X as patients least XXXX the quarter the million the quarter, history company's of of The environment are of uptick from sector the the continuity among across time, also we the the that since of the quarter. in pandemic, economy. put in in demand, in pandemic restrictions March on start in truly saw unprecedented but procedures of positioning surged actions maintain procedures market implemented such the elective emerge business series to adapt new and second At and such creating global month-to-month the position to quarter, be to procedures. by elective and only to still hold. a company spinal a we first outbreak tends to spine and pandemic we in a unique were these strength. of pain the And revenues of an pent-up majority country the generated second in spinal elective supported procedures dramatic

As those reflect and objectives we four previously the focused we results in first the positive announced second on areas to our early in quarter, returns. achieve quarter

possible. and safe procedures on our focused families we foremost, through where their and healthy and home continue and work First and from keeping prioritize distancing we employees to social

all decrease extensive as end reductions first Second, we cost and across-the-board our at Board significant employees Directors. of our pay This initiated for included conserve workforce of well as cash, reductions the quarter. to the

to reduce uncertain conserve These during enabled rightsize expenditures. us this deep spending environment. In expenses in addition, swift we structure our discretionary to enacted and cuts capital cash cost and actions

reality economic we will continue our a in in healthcare. improvement we as management expense adapt forward, Going new to to

able us this Third, focus to position. we meet on And business finally, In were shortfalls. particular, we that will catch time our our demand optimizing function on continue focus due enable needs. and procedures, be of production not of outdated. and inventory adequately inventory on fixed. demand and to the This to up our to to needed rebuilt used areas to our was become We processing levels current production slowdown had materials needs management the meeting future bio

challenges. remain to improve on COVID market the overall to three and extremely with of the have team take dramatically will our managing for I monitoring business in and are am the future and current months, regions course last in business. we improved that of pleased the efficiency. by circumstances continue such We be the well-positioned Over performance we the for Overall, vigilant our under are difficult flexible future now impacted to

can Going live possible. as our live operating to as life mission us efficiencies forward, a we a as believe patients our our organization full and so honoring leaner allow improving will the gift donation overall of of

to Jensen the like over to for would I financial a turn quarter Greg second our of Now discussion results. call XXXX

Greg Jensen

second revenue period was good XXXX. Sean the for everyone. in Thanks afternoon $XX.X quarter million million same XXXX and for compared of the Total to $XX.X

early These first of compared the impact and for decreases COVID-XX the are in elective half the half $XX.X revenue drop first the $XX in of beginning XXXX, For million March. total of attributed procedures to was million sudden XXXX. to

quarter the second mentioned elective of sales second in of earlier, decrease for to was margin XX.X% percentage to XX.X% of Sean gross the driven half the to margin a margin as the for attributed the XXXX half sales. decrease second The gradually is was compared same the resumption compared quarter Gross XXXX. XX.X% improved procedures. sales throughout in a of first in quarter XX.X% Gross for XXXX. first by XXXX for period of As

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

the million compared XXXX, $XX.X expenses to For six in operating $XX XXXX. months of first were million

lower $X.X XXXX both six respectively, month and three June months the XX.X% XXXX, $X.X percentage the a June expenses was per were or XX, during ended XXXX. the XX% to compensation a approximately for XXXX revenue, and As marketing compared were period June to salary for expenses, million development $X.X of from ended severance-related to in reduction to administrative $X.X ended primarily expenses quarter quarter settlement lower year-to-date $X.XX a XXXX. enacted fees and share million $X a workforce respectively, XXXX, XXXX. period for quarter per to the decrease The for and XX% by and Adjusted second in was million compared six to period. $X.X additional of EBITDA consulting of of was XXXX compared the for $X.X the million and with XXXX respectively. the XX, for and COVID-XX. decreases EBITDA same were million for for $XXX,XXX $X.XX six for period first of $XXX,XXX per due the June expenses These end ending workforce XX, the of compared month of And of the of same and reductions operating loss the expenses due were Research $X.X three a and XX.X% reduce compared $XX.X expense same in and due XXXX second periods and months legal million reductions the salaries at were by quarter second XXXX. XXXX loss attributed decrease strategies share, to of reductions period share $X.X six for the COVID-XX to prior XX, or loss expenses to and the XXXX. to year. commissions million million General $X.X to to same offset total salaries for months attributable period Adjusted due to legal for three share compared XXXX, half XXXX, wages decreased the and primarily $X.X the three $X.XX June three the million These wages, and to R&D or compared pandemic. XXXX. six million of million XX% to sales $X.XX and and for partially month period reduced or periods the decreased same the business the stock-based million periods, XXXX first six the expenses cash, and XX, $X.X Sales $XXX,XXX due first decreases comparable XX% by XXXX. in The sales to we million in lower ended decreased was month reduced to XX.X% XXXX or compared of the for in conserving in of the compared our These by net per net

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

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

Sean Browne

direct deliver difficult solid continues elective the a we pent-up entering uptick Unfortunately, spinal where especially second the combined the strongest. procedures the quarter, Greg. Thank create earlier in areas industry a closing, country performance, against you to of months In month-by-month enabled demand facing healthcare regional bleaker. pandemic with to was only far us that backdrop uncertainties, in revenue the are

progress our and providing look you listening on operations the today's adapt your good forward on I new Thank improving we for all We will to environment. expenses support. our remain vigilant continued those calls. on on that can updates our call, managing to so future Wish health. business

End of Q&A

This Thank concludes participation. conference. your today's you for

lines at your You may disconnect this time.

Xtant Medical (XTNT) 3 Aug 202020 Q2 Earnings call transcript