Xtant Medical net sales decrease 12.6% in Q2: 5 things to know

Spinal Tech

Xtant Medical reported revenues dropped during the second quarter of 2018.

Here are five things to know:

1. Second quarter revenue was $18.7 million, down from $21.4 million during the same period last year. Xtant Medical attributed the revenue drop to a decrease in the company's fixation product lines from competitive factors and a strategic focus to reduce unprofitable sales channel arrangements; the strategic decision was implemented in the third quarter of 2017.

2. The company reported $5 million in net loss, down from $9.7 million in the same period last year.

3. Operating expenses hit $14.7 million, 78.6 percent of net revenue, down from the same period last year where the operating expenses were 92.9 percent of net revenue. The company reported "moving on" from some high-commission sales arrangements as well as cost reduction and efficiency programs.

4. The adjusted EBITDA for the second quarter was around $800,000, compared to $2.1 million loss in the second quarter of 2017.

5. During the second quarter, Xtant brought on Kevin Brandt as chief commercial officer, responsible for executing the company's sales and marketing initiatives as well as driving the organization's commercial strategy.

"We have made positive strides and changes so far in 2018, including the restructuring of our balance sheet with the recent debt conversion, improved gross margins, efficiencies in consolidation of operations to Belgrade, MT, and now importantly, expansion of our leadership team with the recent addition of Kevin Brandt as chief commercial officer," said Carl O'Connell, Xtant Medical's CEO.

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