Alphatec Spine Announces Intent to Restructure Scient'x Business Operations
16 September 2013 - 10:05PM
Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of
Alphatec Spine, Inc., a medical device company that provides
physician–inspired solutions for patients with spinal disorders,
announced that its French affiliate, Scient'x S.A.S. and its
subsidiary Surgiview S.A.S. (collectively, "Scient'x") has begun a
process aimed at significantly restructuring its business
operations. This restructuring plan, when completed in accordance
with French laws, is expected to reduce Scient'x's workforce by 76
positions in total. It is anticipated that the restructuring will
reduce operating expenditures between $2 to 6 million on an
annualized basis and is part of the Company's strategy of
streamlining the organization and lowering cost structures, with an
expectation to improve its profitability in 2014 and beyond.
Scient'x is working cooperatively with its Works Councils on
this restructuring plan and the corresponding collective redundancy
plan.
"The decision to begin the process of restructuring our
operations in France was very difficult but ultimately was based on
the management team undertaking a thorough analysis of the current
and future market environment and Scient'x's ability to remain
competitive while meeting our customers' needs with the best and
most affordable solutions," said Les Cross, Chairman and CEO of
Alphatec Spine, Inc. "Upon completion, this restructuring should
leverage Alphatec Spine's current global investment in
manufacturing, infrastructure, and sales distribution capacity,
while still providing Scient'x's customers, distributors, and
suppliers with immediate and long-term benefits."
This restructuring plan should result in multi-year reductions
in operating expense, yielding improvements in international gross
margins and increasing overall operating margins. The Company would
incur one-time restructuring costs associated with the
implementation of this plan consisting primarily of transition,
severance and other costs related to work force reductions.
"We appreciate the significant contributions of those employees
who could be impacted by this plan and their dedication to Scient'x
and their customers. We will do everything possible to assist all
affected employees and their families," said Mr. Cross.
During their Q3 2013 earnings call, Alphatec Spine will provide
additional details on the longer-term financial benefits related to
the proposed changes as well as more information on one-time costs,
including the timing of those expenses, which would impact the
Company's ongoing financial performance.
Further information regarding the Company's recommendation to
restructure Scient'x business operations in France is set forth in
a Current Reports on Form 8-K that was filed with the U.S.
Securities and Exchange Commission (SEC) and is available on both
the SEC's website at www.sec.gov and the Company's website at
www.alphatecspine.com.
About Alphatec Spine
Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec
Holdings, Inc., is a medical device company that designs, develops,
manufactures and markets physician-inspired products and solutions
for the treatment of spinal disorders associated with trauma,
congenital deformities, disease and degeneration. The Company's
mission is to combine innovative surgical solutions with
world-class customer service to improve outcomes and patient
quality of life. The Company and its affiliates market products in
the U.S. and in over 50 countries internationally via a direct
sales force and independent distributors.
Additional information can be found at
www.alphatecspine.com.
Forward Looking Statements
This press release may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 that involve risks and uncertainty. Such statements are
based on management's current expectations and are subject to a
number of risks and uncertainties that could cause actual results
to differ materially from those described in the forward looking
statements. Alphatec Spine cautions investors that there can be no
assurance that actual results or business conditions will not
differ materially from those projected or suggested in such
forward-looking statements as a result of various factors. Forward
looking statements include references to Alphatec Spine's 2013
growth, revenue, and adjusted EBITDA projections; the Company's
ability to successfully complete the restructuring of its French
operations; the Company's ability to reduce its operating
expenditures between $2 million and $6 million, or at all as a
result of the French restructuring; the Company's ability to
realize multi-year reductions in operating expense, and yield
improvements in international gross margins overall operating
margins as a result of the French restructuring; the Company's
ability to accurately forecast the restructuring costs associated
with the implementation of the French Restructuring; and the
Company's ability to provide Scient'x's customers, distributors,
and suppliers with immediate and long-term benefits following the
French restructuring. Please refer to the risks detailed from
time to time in Alphatec Spine's SEC reports, including its Annual
Report Form 10-K for the year ended December 31, 2012, filed on
March 4, 2013 with the Securities and Exchange Commission, as well
as other filings on Form 10-Q and periodic filings on Form 8-K.
Alphatec Spine disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, unless required by
law.
CONTACT: Investor/Media Contact:
Christine Zedelmayer
Investor Relations
Alphatec Spine, Inc.
(760) 494-6610
czedelmayer@alphatecspine.com
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