Xtant Medical (XTNT) - 2018 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q4 2018 was $18.3 million, down from $19.3 million in Q4 2017. Full year 2018 revenue was $72.2 million compared to $82.6 million in 2017, primarily due to decreased sales in the spinal hardware implant product line [19][20] - Gross margin for Q4 2018 was 39.7%, a decrease from 53.2% in Q4 2017. Full year 2018 gross margin was 60.2%, slightly down from 60.6% in 2017 [20] - Operating expenses for Q4 2018 were $62 million, up from $37.4 million in Q4 2017. Full year operating expenses were $103.6 million in 2018 compared to $87.9 million in 2017 [22] - Net loss from operations was $56.7 million or $4.31 per share for Q4 2018, compared to a loss of $28.4 million or $18.77 per share in Q4 2017. Year-to-date net loss for 2018 was $70.1 million or $5.97 per share, compared to $52.4 million or $34.76 per share in 2017 [25][26] - Non-GAAP adjusted EBITDA for Q4 2018 was $1.3 million, compared to a loss of $900,000 in Q4 2017. For 2018, adjusted EBITDA was $4.7 million compared to $500,000 in 2017 [27] Business Line Data and Key Metrics Changes - The decrease in revenue was primarily attributed to lower sales in the spinal hardware implant product line, indicating challenges in this specific segment [19] Company Strategy and Development Direction - The company is focusing on enhancing its sales strategy and execution through the addition of experienced sales executives, aiming to improve revenue growth [8][10] - Recent personnel changes, including the appointment of a new Chief Operations Officer, are expected to improve operational efficiency and reduce costs, which are critical for profitability [12][13] - The company has amended its credit facility to provide financial flexibility, which is essential for supporting growth strategies [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to realize value creation through recent strategic hires and operational improvements [8][14] - The company is actively searching for a new CEO to lead its transition and implement transformative strategies for growth and cost reduction [18] Other Important Information - As of December 31, 2018, the company had $6.8 million in cash and cash equivalents, $10 million in net accounts receivable, and $17.3 million in inventory [28] - The company is making significant progress in repositioning itself, driven by cost reductions and improvements in sales channels [29] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.