Xtant Medical Announces Record Third Quarter Revenue of $25 Million

Increases 2023 annual revenue guidance to $88 million – $91 million

BELGRADE, Mont., November 09, 2023 (GLOBE NEWSWIRE) — Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global medical technology company focused on surgical solutions for the treatment of spinal conditions, today reported financial and operating results for the third quarter ended September 30, 2023.

“Driven by strong organic growth of 18% and contributions from our recent acquisitions, we achieved record third quarter revenue of $25 million, up 73% year over year, and exceeded our 2023 revenue guidance for the second consecutive quarter increased. ” said Sean Browne, president and CEO of Xtant Medical. “I am extremely proud of our team’s efforts to integrate Surgalign’s hardware and biologics businesses while growing our core businesses. These results and execution are a testament to their steadfast commitment and dedication. With the integration with Surgalign running smoothly, we remain focused on optimizing our distribution network and further scaling our operations. We look forward to building on this momentum by providing comprehensive solutions to patients in need and maximizing value for our shareholders.”

Financial results third quarter 2023

Third quarter 2023 revenue grew 73% to $25.0 million, compared to $14.5 million for the same quarter in 2022. Revenue includes 18% organic growth plus a 55% increase from products added in the acquisition of the Coflex and CoFix lines and Surgalign hardware and products. biological matters. These sales increases are primarily attributed to increased sales from independent agents and private label brands, sales from the acquired Coflex and CoFix product lines, and sales from the Surgalign acquisition.

Gross margin for the third quarter of 2023 was 61.3%, compared to 54.6% for the same period in 2022. The increase is primarily due to greater production efficiencies, lower costs for excess and obsolete inventory and product mix, in part offset by higher product yields. cost.

Operating expenses for the third quarter of 2023 totaled $18.7 million, compared to $9.8 million for the third quarter of 2022. The increase was primarily due to additional independent agent sales commissions, higher personnel costs, legal fees and amortization of intangible assets related to the Coflex and CoFix product lines.

Net income in the third quarter of 2023 was $9.2 million, or $0.07 per share, compared to the net loss in the third quarter of 2022 of $2.4 million, or $0.03 per share.

Non-GAAP Adjusted EBITDA for the third quarter of 2023 was $0.5 million, compared to a Non-GAAP Adjusted EBITDA loss of $0.9 million in the prior year period. The Company defines Adjusted EBITDA as net income/loss from operations before depreciation, amortization and interest expense and provision for income taxes, and as further adjusted to add or exclude, as applicable, non-cash compensation, acquisition-related expenses, acquisition costs. -related fair value adjustments, gain on bargain purchase and dispute settlement reserve. A calculation and reconciliation of the Adjusted EBITDA with the net loss can be found in the attached financial tables.

Financial guidance 2023

Xtant Medical is raising its full-year 2023 revenue guidance to $88 million to $91 million, compared to the company’s previous guidance of $75 million to $77 million. The revised guidance represents annual revenue growth of approximately 52% to 57% compared to full-year 2022 revenue and includes contributions from the Surgalign transaction.

Conference call

Xtant Medical will host a webcast and conference call to discuss its third quarter 2023 financial results on Thursday, November 9, 2023 at 9:00 AM ET. To access the webcast, click here. To access the conference call, call 877-407-6184 within the US or 201-389-0877 outside the US. A replay of the call will be available at www.xtantmedical.com, under ‘Investor Info’.

About Xtant Medical Holdings, Inc.

Xtant Medical’s mission to honor the gift of donation so that our patients can live the fullest and most complete lives possible is the driving force behind our company. Xtant Medical Holdings, Inc. (www.xtantmedical.com) is a global medical technology company focused on the design, development and commercialization of a comprehensive portfolio of orthobiology spinal products and implant systems to facilitate spinal fusion in complex spine, deformity and degenerative procedures. ease . Xtant’s people are dedicated and talented and work with the highest integrity to serve our customers.

The symbols ™ and ® indicate trademarks and registered trademarks of Xtant Medical Holdings, Inc. or its affiliates, registered as indicated in the United States and other countries. All other trademarks and trade names referred to in this press release are the property of their respective owners.

Non-GAAP Financial Measures

To supplement the Company’s consolidated financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company uses certain non-GAAP financial measures in this press release, including Adjusted EBITDA and Organic Sales Growth. Reconciliations of the non-GAAP financial measures used in this release to the most comparable GAAP measures for the respective periods can be found in tables later in this release. The Company’s management believes that the presentation of these measures provides useful information to investors. These measures can help investors evaluate the Company’s operations from period to period. Management uses the non-GAAP measures in this release internally to evaluate the company’s performance, including resource allocation. Investors should consider non-GAAP financial measures only as a supplement to, and not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, that depend on or refer to future events or circumstances, or that contain words such as “intends” , “expects”, “anticipates”, “plans”, “believes”, “estimates”, “continues”, “future”, “will”, “potential”, “moving forward”, “guidance”, similar expressions or the negative thereof, and the use of future data. Forward-looking statements in this press release include the Company’s 2023 financial guidance. The Company cautions that its forward-looking statements, by their nature, involve risks and uncertainties, and actual results could differ materially depending on a number of important factors, including among others other: the future operating results and financial performance of the Company; its ability to increase or maintain revenues; risks associated with the recent acquisitions and integration of these companies; expected stem cell shortages that will negatively impact future revenues; possible future impairments on long-lived assets and goodwill and write-downs on excess inventories; the ability to remain competitive; the ability to innovate, develop and introduce new products; the ability to attract and retain new and existing independent distributors and agents and qualified personnel and the Company’s dependence on key independent agents for a significant portion of its revenue; the effect of COVID-19, labor and hospital staff shortages on the Company’s business, results of operations and financial condition, particularly as they impact key markets; the company’s ability to successfully implement its future growth initiatives and the risks associated therewith; the effect of inflation, higher interest rates and other recessionary factors and supply chain disruptions; the effect of changes in product sales mix on the company’s financial results; government and third party coverage and reimbursement for company products; the ability to obtain and maintain regulatory approvals and comply with government regulations; the effects of product liability claims and other legal proceedings to which the Company may be subject; the effect of product recalls and defects; the ability to obtain and protect the Company’s intellectual property and proprietary rights and operate without violating the rights of others; risks associated with the Company’s clinical trials; international risks; the ability to service the company’s debt, comply with debt covenants and access additional debt; the ability to obtain additional financing on favorable terms or at all; and other factors. Additional risk factors are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (SEC) on March 8, 2023 and subsequent SEC filings by the Company, including but not limited to the most recent quarterly report on Form 10-Q for the quarterly period ended September 30, 2023 is expected to be filed with the SEC. Investors are encouraged to read the company’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement.

Contact person for Investor Relations

David Carey
Lazar FIND
Phone: 212-867-1762
Email: david.carey@finnpartners.com

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