Xtant Medical (US:XTNT)2022-08-06 12:51Financial Data and Key Metrics Changes - Total revenue for Q2 2022 was $15.3 million, a 2% increase from $14.9 million in Q2 2021, primarily driven by new product introductions and increased private label and OEM sales [24] - Gross margin decreased to 54.8% in Q2 2022 from 63.5% in Q2 2021, attributed to higher product costs and charges for excess and obsolete inventory [25] - Operating expenses totaled $9.7 million in Q2 2022, down from $10 million in Q2 2021, with operating expenses as a percentage of total revenue improving to 63% from 67% [25] - Net loss for Q2 2022 was $1.7 million or $0.02 per share, compared to a loss of $0.7 million or $0.01 per share in the same period of 2021 [27] - Non-GAAP adjusted EBITDA for Q2 2022 was a loss of $0.4 million, compared to a gain of $0.9 million in the prior year [27] Business Line Data and Key Metrics Changes - Revenue growth was led by biologics products, which increased by 8% year-over-year, marking the highest revenue quarter since the pandemic began [9] - Strong demand was noted for newer biologics products, particularly OsteoFactor and OsteoVive Plus [11] Market Data and Key Metrics Changes - The company has established contracts with all major group purchasing organizations (GPOs) and over 385 integrated delivery networks (IDNs) across the U.S. [14] - The adjacent market penetration represents a total market opportunity of $625 million, with current focus on existing private label and OEM business [16] Company Strategy and Development Direction - The company’s growth strategy focuses on four key initiatives: new product introductions, distribution network expansion, adjacent market penetration, and strategic acquisitions [12] - The company aims to penetrate the $2.4 billion U.S. orthobiologics market and is optimistic about building on momentum in the second half of 2022 [21] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter represented a more normalized environment for elective procedures, with strong demand across selling channels [10] - The company is facing higher production costs due to supply chain challenges and inflationary pressures, which are expected to persist in the near term [18] - Efforts are being made to expand the production team and enhance production efficiencies to meet heightened demand [19] Other Important Information - As of June 30, 2022, the company had $16.8 million in cash and cash equivalents, $8.6 million in net accounts receivable, and $16.5 million in inventory [28] - The company is temporarily outsourcing non-core product lines to optimize capacity and enhance bottom line [19] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented in the provided content [34]