Xtant Medical (US:XTNT)2022-03-08 15:26Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $14 million, comparable to the same quarter of the prior year, while total revenue for the full year 2021 was $55.3 million, an increase from $53.3 million in 2020, marking a 4% growth overall [18] - Gross margin for Q4 2021 was 55.1%, down from 64.1% in Q4 2020, and for the full year 2021, gross margin was 58.8%, compared to 64.5% in 2020, attributed to increased under-absorption of labor and overhead [19] - Operating expenses for Q4 2021 were $9.6 million, up from $8.7 million in the same period a year ago, and for the full year 2021, operating expenses were $36.3 million compared to $35.1 million in 2020 [20] - Net loss for Q4 2021 was $2.3 million or $0.3 per share, compared to a loss of $700,000 or $0.01 per share in Q4 2020; net loss for 2021 was $4.8 million or $0.06 per share, an improvement from $7 million or $0.25 per share in 2020 [21][22] Business Line Data and Key Metrics Changes - The established biologics business grew by 8% in 2021, contributing significantly to overall revenue growth [7] - Revenue benefited from additional private label and OEM orthobiologics sales, partially offset by reduced implant sales [18] Market Data and Key Metrics Changes - Overall spine procedures were down by at least 10% compared to 2019 due to COVID-19 impacts, including cancellations and postponements of procedures [8][9] - Despite challenges, the company achieved top-line growth driven by key growth initiatives and diversification of revenue streams [9] Company Strategy and Development Direction - The company focuses on four key growth initiatives: new product introductions, expansion of the distribution network, penetration of adjacent markets, and strategic acquisitions [10][12][13] - In 2021, the company launched four new products and added over 47 new agents to its distribution network, exceeding its goal [11][12] - The company aims to continue rolling out new products and expanding into new markets while exploring strategic acquisition opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for improved conditions as COVID-19 cases decline and restrictions are loosened, which may enhance elective procedure volumes [9][24] - The company is positioned for future growth with a solid foundation laid in 2021 and anticipates higher production costs but expects gross profit to improve as surgical procedure effects diminish [15][24] Other Important Information - As of December 31, 2021, the company had $18.2 million in cash and cash equivalents, $7.2 million in net accounts receivable, and $17.9 million in inventory [22] Q&A Session Summary Question: What are the expectations for future growth? - Management believes achieving topline annual growth for the first time in six years is the beginning of a long-term trend for the company, with several initiatives planned to drive future growth [24] Question: How is the company addressing the impact of COVID-19 on procedures? - Management noted that while the effects of COVID-19 continue to impact elective procedures, they are looking forward to easing restrictions and higher procedure volumes to ramp up sales and production [24]