Alphatec Holdings, Inc. (“Alphatec” or the “Company”)
(Nasdaq:ATEC), a provider of innovative spine surgery solutions
with a mission to improve patient lives through the relentless
pursuit of superior outcomes, today announced preliminary estimates
of financial results for the third quarter ended September 30,
2017. The Company also announced several corporate
updates.
Preliminary, Unaudited Third Quarter
2017 Financial Results
- Total revenue of $22.8 million to $23.1 million
- U.S. commercial revenue of $20.4 million to $20.7 million
- U.S. commercial gross margin of 68% to 69%
- Total operating expenses decreased to a range of $15.7 million
to $16.0 million
- Cash burn improved to approximately $3.7 million; cash balance
of approximately $15.4 million at September 30, 2017
“Third quarter revenue was down sequentially due
to the impacts of the hurricanes in Texas, Florida, and Puerto
Rico, and fewer selling days in the quarter,” said Terry Rich,
Alphatec’s Chief Executive Officer. “In spite of the
weather-related challenges, we successfully managed operating
expenses and substantially decreased cash burn for a fourth
consecutive quarter. As well, with the momentum we are
experiencing in our sales channel, we expect to drive sequential
revenue growth in the fourth quarter.”
The Company will report final third quarter 2017
financial results and will hold a conference call on Thursday,
November 9, 2017, at 1:30 p.m. PT / 4:30 p.m. ET to discuss the
results. The dial-in numbers are (877) 556-5251 for domestic
callers and (720) 545-0036 for international callers. The
conference ID number is 4698936. A live webcast of the conference
call will be available online from the investor relations page of
the Company's corporate website at www.atecspine.com.
A replay of the webcast will remain available on
the Company’s website, www.atecspine.com, until the Company
releases its fourth quarter and full year 2017 financial results.
In addition, a telephonic replay of the call will be available
until November 16, 2017. The replay dial-in numbers are (855)
859-2056 for domestic callers and (404) 537-3406 for international
callers. Please use the replay conference ID number 4698936.
Ward W. Woods Appointed to Board of
Directors
Alphatec has appointed Ward W. Woods to its
board, adding his decades of capital markets and business
expertise. Mr. Woods is former President and Chief Executive
Officer of Bessemer Securities Corporation and Founding Partner of
Bessemer Holdings, L.P., a private equity firm, a senior partner
and member of the Management Committee of Lazard Freres &
Company, and Managing Director, Partner and co-head of the
Corporate Finance Department at Lehman Brothers. Mr. Woods
currently serves as Chairman of the Advisory Board of the Stanford
Woods Institute, as Chair Emeritus and trustee of the Wildlife
Conservation Society and as a trustee of the David & Lucille
Packard Foundation. He is a former Trustee of Stanford University,
former Chairman of The Stanford Management Company and a former
trustee of the National Fish and Wildlife Foundation. Mr. Woods has
also served as former Governor and Treasurer of The Nature
Conservancy, Vice-Chair and trustee of The Asia Society and a
trustee of The Boys Club of New York. Mr. Woods graduated
from Stanford University.
“The new leadership team at Alphatec has begun
to execute an important mission to improve patient outcomes and
expand market share. I look forward to contributing to the
Company’s advancement into a major spine market player,” said
Woods.
Mike Plunkett, President and Chief
Operating Officer Resigns
On October 18, 2017, the Company accepted the
resignation of its President and Chief Operating Officer, Mike
Plunkett, who is stepping down from his position to pursue other
interests. Mr. Plunkett’s resignation is effective as of November
15, 2017, and it is anticipated that he will remain available
to the Company in a consulting capacity through the end of 2017 to
transition his duties.
Mr. Rich stated, “Mike has contributed solidly
to the commencement of the Alphatec transformation. We
sincerely appreciate his years of service and leadership, and wish
him the best in his future endeavors.”
Shelf Registration Filed
Alphatec has filed a shelf registration
statement with the Securities and Exchange Commission (SEC).
The filing will register up to $100 million in aggregate of equity,
debt, or other types of securities described in the registration
statement in one or more offerings. The terms of any future
offering will be established at the time of the offering, subject
to market conditions and approval by the Company's board of
directors. Each time securities are offered and sold, the
Company will provide a supplement to the registration statement
with specific information about the offering and the amounts,
prices, and terms of the securities. The supplement may also add,
update or change information contained in the registration
statement. The filing may enable the Company to offer and sell
securities on an expedited basis if market opportunities present
themselves.
A registration statement relating to these
securities has been filed with the SEC, but has not yet become
effective. These securities may not be sold, nor may offers to buy
be accepted prior to the time the registration statement becomes
effective. This press release shall not constitute an offer to sell
or the solicitation of an offer to buy, nor shall there be any sale
of these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
About Alphatec Holdings,
Inc.
Alphatec Holdings, Inc., through its wholly
owned subsidiary Alphatec Spine, Inc., is a medical device company
that designs, develops, and markets spinal fusion technology
products and solutions for the treatment of spinal disorders
associated with disease and degeneration, congenital deformities,
and trauma. The Company's mission is to improve lives by providing
innovative spine surgery solutions through the relentless pursuit
of superior outcomes. The Company markets its products in the U.S.
via independent sales agents and a direct sales force. Additional
information can be found at www.atecspine.com.
Disclosure Regarding Preliminary
Unaudited Results
The preliminary financial results presented
above reflect Alphatec’s estimates based solely upon information
available to it as of the date hereof, is not a comprehensive
statement of its financial results or position as of or for the
three months ended September 30, 2017, and has not been audited,
reviewed or compiled by its independent registered public
accounting firm, Mayer Hoffman McCann P.C. (“MHM”). Accordingly,
MHM does not express an opinion or any other form of assurance with
respect thereto. Alphatec’s actual third quarter results may differ
materially from these estimates. Accordingly, investors should not
place undue reliance upon these estimates
Forward Looking Statements
This press release contains "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. The Company 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 the references to the
Company’s strategy in significantly repositioning the Alphatec
brand and turning the Company into a growth organization. The
important factors that could cause actual operating results to
differ significantly from those expressed or implied by such
forward-looking statements include, but are not limited to:
the uncertainty of success in developing new products or products
currently in the Company’s pipeline; the uncertainties in the
Company’s ability to execute upon its strategic operating plan; the
uncertainties regarding the ability to successfully license or
acquire new products, and the commercial success of such products;
failure to achieve acceptance of the Company’s products by the
surgeon community, including Battalion and Arsenal Deformity;
failure to obtain FDA or other regulatory clearance or approval for
new products, or unexpected or prolonged delays in the process;
continuation of favorable third party reimbursement for procedures
performed using the Company’s products; unanticipated expenses or
liabilities or other adverse events affecting cash flow or the
Company’s ability to successfully control its costs or achieve
profitability; uncertainty of additional funding; the Company’s
ability to compete with other competing products and with emerging
new technologies; product liability exposure; an unsuccessful
outcome in any litigation in which the Company is a defendant;
patent infringement claims; claims related to the Company’s
intellectual property and the Company’s ability to meet its
financial obligations under its credit agreements and the Orthotec
settlement agreement. The words “believe,” “will,” “should,”
“expect,” “intend,” “estimate” and “anticipate,” variations of such
words and similar expressions identify forward-looking statements,
but their absence does not mean that a statement is not a
forward-looking statement. A further list and description of
these and other factors, risks and uncertainties can be found in
the Company's most recent annual report, and any subsequent
quarterly and current reports, filed with the Securities and
Exchange Commission. Alphatec 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.
Investor/Media Contact:Zack
KubowThe Ruth Group(646) 536-7000alphatec@theruthgroup.com
Company Contact:Jeff
BlackExecutive Vice President and Chief Financial OfficerAlphatec
Holdings, Inc. (760)
431-9286Investorrelations@alphatecspine.com
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