Xtant Medical (XTNT) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q2 2020 was $10.5 million, down from $15.3 million in Q2 2019, and for the first half of 2020, total revenue was $25.3 million compared to $32 million in the same period of 2019, attributed to COVID-19 impacts [18][24] - Gross margin for Q2 2020 was 62.2%, down from 64.9% in Q2 2019, and for the first half of 2020, it was 63.9% compared to 64.8% in the same period of 2019 [19] - Net loss for Q2 2020 was $2.5 million or $0.19 per share, compared to a loss of $1.9 million or $0.15 per share in Q2 2019, with a year-to-date net loss of $5 million or $0.38 per share compared to $4.7 million or $0.36 per share in 2019 [24] Business Line Data and Key Metrics Changes - Operating expenses for Q2 2020 were $6.9 million, down from $10.5 million in Q2 2019, and for the first half of 2020, they were $17.9 million compared to $22 million in 2019 [20] - General and administrative expenses decreased by $1.3 million to $2.9 million for Q2 2020 compared to the same period in 2019 [21] - Research and development expenses were approximately $110,000 for Q2 2020, a decrease of 47% compared to Q2 2019 [23] Market Data and Key Metrics Changes - The company noted a dramatic uptick in spinal elective procedures month-to-month during Q2 2020, supported by pent-up demand [10] - The spine market is characterized as the least elective of elective procedures, leading to a quicker resumption of these procedures compared to others [10] Company Strategy and Development Direction - The company focused on four strategic areas during the pandemic: employee safety, cash conservation through cost reductions, inventory optimization, and improving business processes [11][12][15] - Management emphasized the importance of operating as a leaner organization and improving overall efficiencies to adapt to the new healthcare environment [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance under difficult circumstances and highlighted the importance of remaining vigilant in monitoring the market impacted by COVID-19 [16][27] - The company aims to adapt its business to the new environment while managing expenses and improving operations [27] Other Important Information - As of June 30, 2020, the company had $3 million in cash and cash equivalents, $7.6 million in net accounts receivable, $19.9 million in inventory, and $12.2 million available under its credit facility [25] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented in the provided content [28]