Layoffs at X-Pine Systems Inc to Start in December
X-Spine Systems, Inc filed a notice with the Ohio Department of Job and Family Services, stating that it plans to close its facility and lay off approximately 54 workers. The closure will be permanent, with layoffs beginning on December 8 and continuing through the end of February 2018.
X-Spine Systems, which creates implants and instruments for medical services, was acquired by Montana-based Bacterin International Holdings Inc. in 2015 in a cash-and-stock-deal valued at about $86.0 million. The company was rebranded as Xtant Medical Holdings Inc (NYSEAMERICAN:XTNT).
Commenting on the 2015 merger, Bacterin CEO Dan Goldberger said, “We are excited to leverage further our combined operating platform and exceptional talent to drive, [sic] significant and ongoing value for our stockholders. With the addition of X-spine, we will have a stronger financial profile with over $80 million of revenue and positive EBITDA.”
That optimism didn’t last long.
Xtant Medical Holdings announced it was closing its Dayton, Ohio facility and moving the operations to the company’s headquarters in Belgrade, Montana. The closure is related to the 2015 acquisition of X-Spine.
“In an effort to maximize the benefit of the 2015 merger with X-Spine, and optimize synergies including efficiencies and cost savings, we made the difficult decision of transitioning operations to Montana and closing the Dayton facility,” said Xtant CEO Carl O’Connell.
The facility in Dayton employs around 55 people. The company expects to save more than $2.0 million annually.
Even with the recently announced layoffs, Xtant Medical needs to look for additional ways to reduce costs. In the second quarter of 2017, the company announced that revenue slipped to about $21.4 million from about $21.5 year-over-year. The company’s second-quarter net loss widened to $9.7 million ($0.54 per share) from $4.5 million ($0.37 per share) in the same prior-year period.
Cash on hand as of June 30, 2017, was $1.7 million, as compared to $2.6 million as of December 31, 2016. Net working capital at the end of the second quarter of 2017 decreased to $17.9 million, from $21.6 million at the end of 2016.
“Current Public Notices of Layoffs and Closures,” Ohio Department of Job and Family Services, last accessed October 31, 2017.
“Bacterin to buy X-Spine, rebrand as Xtant Medical in $86m deal,” MassDevice, July 28, 2015.
“Xtant Medical Announces Consolidation of Fixation Operations to Montana and Closure of Dayton Facility,” Xtant Medical Holdings, Inc., October 6, 2017.
“Xtant Medical Reports Second Quarter 2017 Financial Results,” Xtant Medical Holdings, Inc., August 9, 2017.