Xtant Medical Holdings, Inc. · AMEX:XTNT
Xtant Medical — IPO Roadshow (September 2016)
23 slides from Xtant Medical's IPO roadshow presentation, Sep 29, 2016
Slide 1: Encompassing Excellence: September/October 2016 Investor Presentation
Encompassing Excellence NYSE MKT: XTNT September/October 2016 Investor Presentation NYSE MKT: XTNT | September/October 2016 1
Slide 2: Important Cautions Regarding Forward Looking Statements
Important Cautions Regarding Forward Looking Statements This presentation contains certain disclosures that may be deemed forward - looking statements within the meaning of the Private S ecurities Litigation Reform Act of 1995 that are subject to significant risks and uncertainties. Forward - lookin
Slide 3: Introduction
Introduction NYSE MKT: XTNT | September/October 2016 3 The Company’s comprehensive portfolio serves the specialized needs of orthopedic and neurological surgeons including: Orthobiologics for the promotion of bone healing, and Implants and instrumentation for the treatment of spinal diseases Xtant o
Slide 4: Comprehensive and Diversified Product Portfolio
Comprehensive and Diversified Product Portfolio NYSE MKT: XTNT | September/October 2016 4 ANTERIOR CERVICAL FIXATION POSTERIOR CERVICAL/THORACIC SACROILIAC FUSION FIXATION BIOLOGICS THORACOLUMBAR INTERBODY This image cannot currently be displayed. THORACOLUMBAR STRUCTURAL ALLOGRAFT ANTERIOR CERVICAL
Slide 5: Large US Market Opportunity
Large US Market Opportunity 1 Source: BioMed GPS 2014 2 Source: iData 2014 NYSE MKT: XTNT | September/October 2016 5
Slide 6: Revenue Mix
Revenue Mix NYSE MKT: XTNT | September/October 2016 6
Slide 7: Operating Results: Increasing Gross Margins
Operating Results NYSE MKT: XTNT | September/October 2016 7 Increasing Gross Margins $20.9M 3Q15* $22.3M 4Q15 $21.0M 1Q16 $21.5M 2Q16 65.5% 3Q15* 67.0% 4Q15 67.2% 1Q16 68.5% 2Q16 Revenue Gross Margin * 3Q15 Results are presented as pro forma consolidated, all other data is as reported; all are unaud
Slide 8: Full Year 2016 Guidance
Full Year 2016 Guidance NYSE MKT: XTNT | September/October 2016 8 **The Company defines earnings before interest, taxes, depreciation and amortization ("EBITDA") as net income/loss from operations bef ore depreciation, amortization, impairment charges, non - recurring expenses and non - cash stock -
Slide 9: Growth Drivers
Growth Drivers NYSE MKT: XTNT | September/October 2016 9 Now that the integration of X - spine is complete, management is focused on driving growth Portfolio sales (Biologics sold through the legacy X - spine channel and Fixation products sold through the legacy Bacterin c hannel) could provide subs
Slide 10: Portfolio Selling Example: Posterior Lumbar Solutions
NYSE MKT: XTNT | September/October 2016 10 Portfolio Selling Example: Posterior Lumbar Solutions $1.5M 2Q16 Revenue from portfolio selling, 6.6% of total revenue, up from $935K in 1Q16 10 - 12% Management goal for portfolio selling
Slide 11: Growing Demand for 3Demin since launch
Growing Demand for 3Demin since launch NYSE MKT: XTNT | September/October 2016 11 3Demin Revenue $905,983 1Q16 $746,678 4Q15 $667,019 3Q15 $461,700 2Q15 $221,525 1Q15 $1,020,766 2 Q16
Slide 12: New Products Announced Since Completion of the X-spine Acquisition
New Products Announced Since Completion of the X - spine Acquisition NYSE MKT: XTNT | September/October 2016 12 • $75,000+ revenue in 2Q16 (Pilot Launch) • Total Addressable Market approximately $282M • 510(k) clearance Announced March 30, 2016 • Total Addressable Market approximately $110M • Revenu
Slide 13: Announced March 24, 2016: MIAMI cell line product
NYSE MKT: XTNT | September/October 2016 13 Announced March 24, 2016 $252 million total addressable market* Unique, viable cell line (MIAMI) Launched end of Q2 2016 *Source: BioMed GPS 2014
Slide 14: Financial Overview
FINANCIAL OVERVIEW NYSE MKT: XTNT | September/October 2016 14
Slide 15: Financial Overview: Second Quarter 2016 Summary
Financial Overview Second Quarter 2016 Summary ($000’s) **The Company defines earnings before interest, taxes, depreciation and amortization ("EBITDA") as net income/loss from operations bef ore depreciation, amortization, impairment charges and non - cash stock - based compensation . See the reconc
Slide 16: Capitalization
Capitalization NYSE MKT: XTNT | September/October 2016 16 *Results listed under “As Of June 30, 2016” are unaudited (000’s) As of June 30, 2016* Cash & Cash Equivalents $2,217 Debt: Revolving Line of Credit $5,481 Non - Convertible Debt $47,072 Convertible Debt ( Conv. Prices: ~$ 2.2MM at $2.90 and
Slide 17: 2016 Non-GAAP Profitability & Break Even
2016 Non - GAAP Profitability & Break Even Non - GAAP profitability is defined as EBITDA adjusted for cash based interest expense Revised guidance for full year 2016 non - GAAP profitability is ($3.2M) to ($2.2M) Break even revenues occur at approximately $24.2M per quarter NYSE MKT: XTNT | Septembe
Slide 18: Estimated Incremental Revenue Flow Through
Estimated Incremental Revenue Flow Through NYSE MKT: XTNT | September/October 2016 18 ($000’s) Break Even Incremental Quarterly Revenue $24,250 $1,000 Gross Profit $16,611 $750 Gross Margin 68.5% 75% Commissions $7,275 $300 All Other Operations & Cash - Based Interest Expense $9,336 $0 Income From O
Slide 19: Summary
SUMMARY NYSE MKT: XTNT | September/October 2016 19 JG2
Slide 20: Financial Guidance
Financial Guidance **The Company defines earnings before interest, taxes, depreciation and amortization ("EBITDA") as net income/loss from operations before depreciation, amortization, impairment charges and non - cash stock - based compensation. NYSE MKT: XTNT | September/October 2016 20 ($000’s) F
Slide 21: Growth Drivers
Growth Drivers Xtant is a substantial revenue stage, spine - product business with expanding margins Sales growth in 2016 and 2017 driven by Portfolio Sales and additional inventory and surgical instrumentation to service existing accounts and open new ones Meaningful contribution from new products
Slide 22: Contact Us
664 Cruiser Ln. Belgrade, MT 59714 1.406.388.0480 info@xtantmedical.com CONTACT US xtantmedical.com Investor Relations CG Capital 1.877.889.1972 investorrelations@cg.capital c g.capital NYSE MKT: XTNT
Slide 23: Reconciliation of EBITDA
Reconciliation of EBITDA NYSE MKT: XTNT | September/October 2016 Appendix A (000’s) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015* Twelve Months Ended December 31, 2015 Net Loss from Operations ($2,122) ($1,375) ($12,475) Impairment of Assets $0 $0 $234 Acquisition and Integratio
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