Alphatec Holdings, Inc. (“ATEC” or the “Company”) (Nasdaq:
ATEC), a medical device company dedicated to revolutionizing the
approach to spine surgery, announced today preliminary, unaudited
financial results for the third quarter ended September 30,
2020.
Preliminary, Unaudited
Third Quarter 2020
Financial Results
Preliminary, unaudited third quarter 2020
results are expected to reflect U.S. revenue growth of
41% to 43% compared to third quarter 2019. Growth was driven
primarily by the continuing rapid adoption of recently released
ATEC technologies and strong pull-through from the SafeOp Neural
InformatiX System. New product sales represented over 70% of
estimated U.S. revenue for the quarter.
|
Quarter Ended September 30, 2020(Unaudited) |
|
|
Total revenue |
$40.7 million to $41.1 million |
|
|
U.S. revenue |
$39.7 million to $40.0 million |
|
|
U.S. gross margin |
71% to 73% |
|
|
Operating loss |
$(12.0) million to $(13.5) million |
|
|
Non-GAAP adjusted EBITDA |
$(1.7) million to $(2.2) million |
|
At September 30, 2020, the Company had
approximately $41 million in cash and available borrowings under
its senior secured credit facility.
“In a year of considerable uncertainty, ATEC is
bringing predictability to both the clinical experience and
financial performance,” said Pat Miles, Chairman and Chief
Executive Officer. “We continue to deliver against the priorities
that we committed to early this year: creating clinical
distinction, revitalizing the sales force, and compelling surgeon
adoption. This team has created significant value by advancing
surgical outcomes in spine before, and we are fully committed to
doing it again.”
The Company expects to announce third quarter
financial and operating results on November 5, 2020, after the
market close. On that day, the Company will host a live webcast
at 1:30 p.m. PT / 4:30 p.m. ET. The live webcast
will be accessible via this link. An audiocast of the
presentation will also be available domestically at (877) 556-5251
and internationally at (720) 545-0036. The conference ID number is
5178028.
A replay of the webcast will remain available on
ATEC’s corporate website at www.atecspine.com until the
Company releases fourth quarter financial results. In addition, a
replay of the audiocast will be available until November 15,
2020. 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 5178028.
About Alphatec
Holdings, Inc.
Alphatec Holdings, Inc. (ATEC), through its
wholly-owned subsidiaries, Alphatec Spine,
Inc. and SafeOp Surgical, Inc., is a medical device
company dedicated to revolutionizing the approach to spine surgery
through clinical distinction. ATEC’s Organic Innovation Machine is
focused on developing new approaches that integrate seamlessly with
the SafeOp Neural InformatiX System to safely and reproducibly
treat spine’s various pathologies and achieve the goals of spine
surgery. Alphatec’s vision is to become the Standard Bearer in
Spine. For more information, visit us
at www.atecspine.com.
Financial Disclosure
Advisory
The Company reports its financial results in
accordance with U.S. generally accepted accounting principles. The
expected financial results discussed in this press release are
preliminary and represent the most current information available to
the Company’s management, as financial closing procedures for the
quarter ended September 30, 2020 are not yet complete. These
estimates are not a comprehensive statement of the Company’s
financial results for the quarter ended September 30, 2020 and
actual results may differ materially from these estimates as a
result of the completion of normal quarter-end accounting
procedures and adjustments, including the execution of the
Company’s internal control over financial reporting, the completion
of the preparation and review of the Company’s financial statements
for the quarter ended September 30, 2020 and the subsequent
occurrence or identification of events prior to the formal issuance
of the first quarter financial results.
Reconciliation of Non-GAAP Financial
Measures
|
|
Three Months
Ended |
|
|
|
September 30, 2020 |
|
|
|
(preliminary, unaudited) |
|
|
|
|
|
|
|
(Numbers in
millions:) |
|
|
|
|
Operating loss, as reported |
$ |
(12.0 |
) |
to |
$ |
(13.5 |
) |
|
|
Depreciation |
|
2.2 |
|
to |
|
2.3 |
|
|
|
Amortization of intangible assets |
|
0.4 |
|
to |
|
0.4 |
|
|
|
EBITDA |
|
(9.4 |
) |
to |
|
(10.8 |
) |
|
|
Add back
significant items: |
|
|
|
|
Stock-based compensation |
|
4.2 |
|
to |
|
4.5 |
|
|
|
Litigation-related expenses |
|
1.7 |
|
to |
|
1.9 |
|
|
|
Excess & obsolete charges |
|
1.8 |
|
to |
|
2.2 |
|
|
|
Adjusted
EBITDA |
$ |
(1.7 |
) |
to |
$ |
(2.2 |
) |
|
To supplement the Company’s financial statements
presented in accordance with U.S. generally accepted accounting
principles (GAAP), the Company reports certain non-GAAP financial
measures, including non-GAAP U.S. gross margin, non-GAAP operating
expenses, non-GAAP operating loss, and non-GAAP Adjusted
EBITDA. The Company believes that these non-GAAP financial
measures provide investors with an additional tool for evaluating
the Company's core performance, which management uses in its own
evaluation of continuing operating performance, and a baseline for
assessing the future earnings potential of the Company. The
Company’s non-GAAP financial measures may not provide information
that is directly comparable to that provided by other companies in
the Company’s industry, as other companies in the industry may
calculate non-GAAP financial results differently, particularly
related to non-recurring, unusual items. Non-GAAP financial results
should be considered in addition to, and not as a substitute for,
or superior to, financial measures calculated in accordance with
GAAP. Included below are reconciliations of the non-GAAP financial
measures to the comparable GAAP financial measures.
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 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 the impact of the
COVID-19 pandemic on the Company's business and financial results,
the Company’s ability to create clinical distinction, revitalize
its sales force, compel surgeon adoption, and the Company’s
expectations with respect to future revenue and growth. 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: changes
to our financial results for the quarter ended September 30,
2020 due to the completion of financial closing procedures;
the extent of the impact of COVID-19 pandemic on the Company's
business; the uncertainty of success in developing new products;
failure to achieve acceptance of the Company’s products; failure to
obtain FDA or other regulatory clearance or approval, or
unexpected or prolonged delays in the process; continuation of
favorable third party reimbursement; the Company’s ability to
compete with other products and with emerging new technologies;
product liability exposure, and other legal claims. The words
“believe,” “will,” “should,” “expect,” “intend,” “estimate,” “look
forward” 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.
ATEC 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:Tina
JacobsenInvestor Relations (760)
494-6790ir@atecspine.com
Company Contact:Jeff BlackChief
Financial OfficerAlphatec Holdings, Inc.ir@atecspine.com
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