XTNT - Earnings call transcript Q1 2021 | Xtant Medical Holdings, Inc.

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Operator

Greetings, and welcome to the Xtant Medical First Quarter 2021 Financial Results Conference Call. All participants are in a listen-only mode for today's presentation. [Operator Instructions] As a reminder, this conference call is being recorded. I'd now like to turn the conference over to Matt Steinberg of Lazar FINN Partners. Please go ahead.

Matt Steinberg

welcome Medical's and financial quarter operator, call. results you, to first 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

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

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

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

Sean Browne

Three, global pandemic time our At financial much on consisted operations. their we as world, year family we stronger those four, goals, begin took and would later, that as can now transform and and Matt, cash emerge Two, as outlined the worst and a pandemic, say we do ever. up business shortfalls, year, to conserve over that bioproduction not production catch everyone our keep is of much a four we Xtant goals and last A to good position. stronger as possible. morning Thank in listening. one, from people back goals the look our following; hardware only operational and this this as you, Medical Xtant safe. the of Those but meet than

the distribution a is the for much initiatives business needed Xtant growth our of point our transformation operational financial future initiatives several on position. private expansion innovative $XX February to and to brought products, placement we our Case capital focused Our million new implementation with closed in in designed growth network. of underwent position support strengthen and and that strategic significant in

rates. interest on we more and In debt addition, million financing $XX favorable week, and closed of terms last

impacted Now the across results, COVID reduction our markets sales turning our as elective serve. top of quarter slow first we procedures of hospitalizations the were by to the increase to off started spinal the

is a spinal which saw months two and of have However, of the nature procedures, of first solid indicating of in compared March other rebound April, elective procedures indicative recovery procedures. the a we typically quicker This from rebound a the to sales year.

customers highest the we number other In over past fact, with did in of business the month any year. than March

future of upcoming our growth. we focus COVID, a steps will an initiatives we believe commercial part While have that we through continue the necessary as to operational of to take managing from drive in shift several focus the impacts

introductions and product that product OsteoVive First, two PLUS. improve offering. several and the year, biologics lines we portfolio our new SI are advancing will Last launched Matriform the expand new of we release

four release in growth some contribute ahead. to products the plans years in have will new meaningful XXXX, that biologic We to including revenue we exciting believe products

markets well. distributors profitably, and our the open up network. helping We our touch distribution markets. and more expanding Xtant meetings. plan as our at to help our model in customers We and grow of committed other our grow reengage high shows trade product distributors do marketing We their enable process products existing greater showcase and program regional leading we're as turn our believe in programs Second, incentive in and to revamped penetration service continue with to that drive and national remain help will releases to

markets In these team country our rebuilding to where the and we're pandemic we of see position, at actions promising supported aggressive of in reduce the the our by plans, salesforce. process commercial by costs, marketing start addition the across opportunities. excited into took to our expanding adjacent stronger reinvest the talent to in regions we and we're in new After financial bringing

Looking can ahead, commercial be position we growth execution. to we're in a and on pleased where focus

that grow us give our the over the substantially initiatives confidence we strategic can business Our long-term.

our months, Over work continue costs and to will manage prudently to our mitigate while adjacent COVID-XX advantage the markets. growth opportunities of and of we the taking target pandemic, within impact coming

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

Greg Jensen

procedures you, revenue of morning year. same million, to prior largely largest good revenue the in and of attributed quarter in the in was Total $XX.X for was first quarter of $XX.X COVID-XX our the decline of The to the everyone. the impact Thank million markets. occurrence Sean compared elective XXXX on

margin recover March period gross the and same for to reduction economies lower scale XXXX partially XX.X% for after due procedures quarter A of offset XXXX. by was the reduced attributed depreciation margin Gross sales, to of electric compared slight to primarily challenging a XX% February. in first in diminished was January expense. However, in did

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

$XX,XXX, loss decrease first to the the of compared was The of to to associated in quarter system and XXXX because year. for expenses a of to XXXX. by in ERP first of in first XX.X% the million the the total to primarily the XX.X% of marketing percentage first in $X.X quarter a or $X.X XXXX, severance lower to in $X.XX million related loss costs in due decreased expenses was million in compensation Net a administrative the and Adjusted General lower period of As first quarter quarter sales decrease share primarily $X million due sales Sales first XX%. XXXX. expenses. revenue, XXXX related quarter to upgrades operating of the quarter same same of and million compared The $X.X EBITDA lower were in expenses with point period. in quarter last XXXX, were compared decrease expenses, XXXX commissions first compared the XXXX, period and of per first was share, to of of $X.X reduced per XXXX. net for compared or $X.X XXXX quarter $X.X million was comparable $X.XX for million

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

for net proceeds resulted private in corporate As working approximately we and that we total $XX.X previously purposes. of general we announced, placement capital cash closed be which expect million, a other used will

The funds a of Advisors offer to LLC universal the statement with common will debt to stock, Financial increase securities over believe then on to our May allow effective a with to OrbiMed replacing effective offerings to today, future the of registration statement in at secured allows allow Opportunities does off and statement agreements effectiveness hopefully mean also filing this amount such statement OrbiMed that, supplement paying credit $X the of with on credit by us finance registration type a shares on initiatives. public future offering business connection growth cost time-to-time if in approximately time. this this strategic upon existing and registration once we will registration as our our an X, to matter of of continue million. basis. a addition, that markets provide at II. filed various to entered shelf into we sell which announced credit in financing is flexibility or any right-sizes us the Please and our any this new secured MidCap stock. enhances three-year will focusing described affiliated and shelf will are The Trust, of mere stockholders such and Royalty and our offering. occurs agreements declared will a and debt, determined the million accessing time liquidity Fund earlier contemplating million governance, bring new offer SEC growth that credit term facility filing In either The float XX.X from our with note this opportunities million not specific OrbiMed be certain facility. will revolving filed sell balance initiatives Also, and shares a $XX with we We from give time-to-time good up us loan up period in our timely total and be $XXX sheet specifics and capital These of number prospectus more

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

Sean Browne

Greg. you, Thank

initiatives. our distribution of establishing our on pathway XXXX, it introductions, investing provide our long-term network, and on to our sales execute a For our cadence new strategy will furthering growth By a will operational product engaging regular with force and us doing this, broadening efficiencies. solid focus

see While vaccine hospitalizations, counts, the we of first the and lower two very news months case were challenging, trends. good XXXX of COVID positive lower

over the procedure optimistic are volumes elective of that normalize year. course the will We

needs, remain of to possible. of so markets. as continued you pent-up today live for us as As doing honoring In the fulfilling fuller there's joining life the so donation our our usually dedicated patients largest procedures we Thank gift support. spinal are your for given can return we patient first believe demand our and in elective mission

Operator

may This concludes All disconnect. parties call. today's now

Xtant Medical (XTNT) 11 May 212021 Q1 Earnings call transcript