XTNT - Earnings call transcript Q3 2020 | Xtant Medical Holdings, Inc.

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Operator

Greetings, and welcome to the Xtant Medical's Q3 2020 Financial Results. 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 your host.

David Carey

Thank you, Operator, and welcome to Xtant Medical's third quarter 2020 financial results call.

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

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

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

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

Sean Browne

morning a of good the under to and down quarter although light the year. had Thank to solid and you, everyone third of second the and revenue year, compared COVID-XX this strong achieving of David, third to pandemic compared Xtant In last understandably still challenging quarter, conditions, quarter listening. unique growth

We have and million, volumes. procedure the compared an of quarter are of elective primarily rebound generated spinal revenues of pleased to $XX in to increase XXXX, reflecting a second domestic XX%

We revenues from quarter. are a ago, XX% now spinal majority considering accomplishment a were last hold procedures at of a is which that year early on approximately major of

continue impact remainder Going forward, into we will to at pandemic the of revenue XXXX, for a do minimum, and anticipate the that XXXX. early

business restructuring These on current based align of year the realize trends. business in March optimizing production to focused one, Taking allowing our and market remain in we following current the processes on more eliminate to allowed COVID on evolving button, reset the business. reengineering initiated situation, April. rebuilt to of hit we The three, everything enabled quarter However, with prior with further and allowed we cash, conserved us bioproduction reductions, inventory doing, what shortfalls live was actions sales our to our back the approach These produce COVID. our prior by our and donation cost while implemented to so structure else. life aggressive took patience levels of mission-critical extensive and actions efficiently cost catch determine honoring a In possible. to measures; two, in full up mission our and fourth expect cost-effectively, gift consistent the our as as products of us us anticipation moves to at current to overall levels environment, conditions, an market approximately took back XX% of market revenue step we

be will position a in forward revenue growth. towards targeted make investments going we're Now, future that the we

a As rights there's the this a million of to in offering pathway was add profit proposed of major will us for great one thereby the on us American underscores compliance the of capital milestone to we've to dramatically shareholders quarter, shareholder The our debt our to helped but We're successful, if changes will Moreover, last growth. our enhance restructuring. opportunity elaborate recently as NYSE approximately significant our in for access $XXX,XXX announced restructuring moment, we improve the company. share our strategy. full our capital per the towards Thursday. and the provided of years. our giving rights to third service not more $X.XX take the at business price we we long-term capital restructuring our more Xtant Xtant details completed of per our used support Greg cash offering, common that stock achievement opportunity markets. made, more advantage operating a initiatives. our which $XX specific which a also a price the use having debt direct to with the and is It the allowing in debt purchase an believe largest growth the We support debt exchange same our regain shareholders result of in confidence Moreover, and realized the generated in structure, our cost to lower, recent the share

access. Now business, to changes end, Xtant the an that group several in intend signed in on purchasing a with strategically agreement completes not agreement market to organizations, one and our presence. historically This better America. just the five important more country's our had focus we to largest leverage as To the base regions access contract the have have amongst largest one missing or implemented to that growth known GPOs of strengths strong GPOs, giving we a of country where Xtant customer we

on Together second procedures we this products meet country of our sales our across Happily, footprint that The spinal contracts improved Si new the Another invest ability closed six in biologic our our new to the signed commercial US continue increases recently GPO contracts we Si. and Si and the can focus a cleared with with the Matriform the capital expand growth procedures. elective demand markets, with financial compared Matriform for graft product position quarter offering the to portfolio come. in quarter through of increasing Matriform network our and now in Matriform market. launch of orthopedic and fusion cadence can Si, the biologics bone silicated year, With like and more we're ensuring key in introductions, US to distribution to designed channels. rise the we our the access achievement was on expands synthetic strip new for

Now, over Jensen, our third financial like call our to the CFO, turn quarter XXXX I'd Greg of to for results. discussion

Greg Jensen

months same COVID-XX the the for million, year. Thank March year. good morning This you, in quarter was was of representing Sean, prior to pandemic decline this of the XX.X% decrease million that due $XX of ended Total XXXX began XX, everyone. in in primarily of $XX.X September revenue and the compared a revenue the three to impact

XXXX However, representing recovered have quarter by elective third close revenue, some of procedures to quarter third extent XX% evident to revenue. as XXXX

for for same scale, margin quarter earlier, XXXX primarily were sales. of X.X sales XXXX. expense. As of of quarter These XX.X% the nine by in million margin third for to months period XX.X% attributed nine offset Gross compared second to Sean the the XXXX. decreases Gross XXXX diminished for the or increased was reduced compared XX% first compared of XX% XXXX economies partially months first to was XX.X% depreciation mentioned to

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

period first the to months the same nine For operating compared of were expenses $XX.X XXXX, XXXX. in million million for $XX.X

and of due legal settlement Sales the period million reduction cash reduced fees, were in expense XXXX the partially by $XX.X $XX.X decreases by first to expenses third $X As cost decreases and back XX% compared expenses, period three and lower from expenses. XX% to XX.X% XXXX of for of we marketing XXXX quarter to million environment. and month with ended current months September due commissions nine the and operating preserve month market XX.X% and three million legal to operating attributable for same the compared of in XXXX, a to a revenue, and nine XXXX. to expenses in three XXXX in salaries to by the respectively; for The for to These initiatives containment were million COVID-XX. stock-based reduced first XX, and and months due workforce primarily ended same a September million month the been expenses consulting ended that $X.X and of reductions periods compensation and XX.X% $X.X and were XX.X% reductions XXXX business the lower sales period quarter total to and were the travel salaries additional have compared enacted These lower our decrease because XXXX, wages, the expenses XX, respectively and are for three XX, severance offset respectively. to lower for General percentage XXXX wages decreased decreased evident decreases related to and and primarily align in sales, effective administrative nine million September period our the in March $X.X nine respectively. workforce and nine the expense

million XXXX XXXX share period our same $X.X loss the an significant XXXX. the XXXX to million Adjusted result of of in profit for first the of in months loss XXXX million compared Net of share nine $X.X share $X.X the million million per $X.X XXXX was EBITDA to $X.X compared per million EBITDA year-to-date was million for As comparable or for $X.XX a for in loss net compared a $X.X approximately $X.XX share third same million of quarter, financial quarter generated $X.X $XXX,XXX company third or was the of to above, $X.X operating or compared period a Adjusted $X.XX third performance per by The or XXXX. $X.XX in the period. per quarter the the in was achievement in for team. XXXX. to

receivable, XX, $X.X inventory, our million million debt completed available net and and of our As transaction under cash equivalence, $X cash million of XXXX, month, facility. primary of purposes. had we September of Earlier credit million served we $X.X this two accounts that $XX.X restructuring

growth to investment enables and also under helped delusion. million us standards. reduced credit $XX the to our than it The to our compliance initiatives, listing markets second, while our service future NYSE capital American's shareholder access the for thereby in us debt standing it debt debt facilitating regain less further our with eliminating First, restructuring facility,

for to As we $XX common announced proposed stock. million we our the a date offering the November of mailed last about of XXXX of announcement, anticipated holders materials to as offering or week, we our The X, date December Pursuant of rights subscription for the stock be rights on record date. November will expect X have common of this is expiration up set record XXXX. to X, that company's

its However, company for may of in extend the periods offering the sole discretion. additional rights time

For please further earlier regarding quarter our results, see XX-Q our today. details third file

For filed with registration amendments additional Form the the see prospectus on the SEC. rights offering, please statement S-X included on in related the and information

Now, remarks. I'll Sean turn the call back closing to for

Sean Browne

Thanks, Greg.

are volumes. with rebound supported trended performance revenue the third the spinal quarter We in which throughout quarter, procedure by the domestic pleased positively elective

this leaner by our the capital you compliance access investing offering, preserve stronger care, patient increased financial NYSE system enable support. organization. as for Xtant initiatives. our earlier this year invest exciting expand and have restructuring believe initiatives our perspective, mission, and and We our in today growth time product actions drive have American rights enhancements for with us decisive your better our to an to Our coupled drive proposed our to shareholders. deliver return and our recent on and as a growth distribution markets we is with in regaining us to Thank while future cash us network joining debt value and to From well-positioned completing to a continued

Operator

concludes today's This conference.

disconnect at your this may lines You Thank your participation. you for time.

Xtant Medical (XTNT) 31 Oct 202020 Q3 Earnings call transcript