Alphatec Holdings, Inc. (“ATEC” or the “Company”) (Nasdaq: ATEC), a
provider of innovative spine surgery solutions dedicated to
revolutionizing the approach to spine surgery, today announced
financial results for the quarter ended June 30, 2020, and recent
corporate highlights.
Second Quarter 2020 Financial
Results
- Total revenue of $29.6 million; U.S. revenue of $28.8
million, up 11% year-over-year;
- U.S. gross margin of 72.3%; and
- Cash and cash equivalents of $31.2 million as
of June 30, 2020.
Recent Corporate Highlights
- Increased contribution from new products to 61% of Q2 U.S.
revenue, up from 32% in Q2 2019;
- Increased U.S. revenue and average product categories sold per
case year-over-year by 14%, more than offsetting 4% decrease in
surgery volume;
- Continued sales network transformation, resulting in 15%
year-over-year revenue growth from strategic distribution;
- Increased revenue from top 20 surgeons by 25% year-over-year;
and
- Commenced significant upgrades of ATEC cervical portfolio
sophistication with FDA 510(k) clearance of the InsigniaTM Anterior
Cervical Plate System and InVictusTM CT Spinal Fixation System,
which expands the elegance of InVictus across cervical, thoracic
and lumbar procedures.
“I am proud of the way our team continues to
methodically execute the plan,” said Pat Miles, Chairman and Chief
Executive Officer. “Three years ago, we committed to creating
clinical distinction, compelling surgeon adoption and revitalizing
our sales channel. We described a time when unmatched
procedural innovation would attract an increasingly influential
surgeon base and a more professionalized salesforce, which would
lead to increased case complexity, more products per procedure, and
improved revenue per surgery. We’re beginning to see this vision
reflected in our financial performance. While other companies
commit to advertising campaigns, our commitment is to improving
spine care. We are just getting started. We expect to see
continued strong interest and enthusiasm for the 8 to 10 new
solutions we will deliver in the second half of 2020. We could not
be more viscerally and personally engaged in our mission and our
ability to continue to drive industry-leading growth. We know our
best is yet to come.”
Comparison of Selected GAAP and Non-GAAP
Financial Results for the Second Quarter 2020 to
Second Quarter 2019
Revenue from U.S. products for the second
quarter 2020 was $28.8 million, up 11% compared to $26.1 million in
the second quarter 2019. Revenue growth generated by new products
and the strategic distribution channel continues to outpace the
ongoing revenue impacts of transitioning or discontinuing
non-strategic distributor relationships.
Gross profit and gross margin from U.S. products
for the second quarter 2020 were $20.8 million and 72.3%,
respectively, compared to $18.8 million and 72.2%, respectively,
for the second quarter 2019. On a non-GAAP basis, excluding
non-cash excess and obsolete charges, U.S. gross margin was 78.2%
in the second quarter of 2020, compared to 80.6% in the second
quarter 2019. Non-GAAP U.S. gross margin was impacted by product
mix and amortization of SafeOp-related intangibles, which commenced
in late 2019.
Total operating expenses for the second quarter
2020 were $32.0 million compared to $29.3 million in the second
quarter 2019. On a non-GAAP basis, excluding stock-based
compensation, fair value adjustments, litigation-related expenses
and transaction-related expenses, total operating expenses
increased to $26.4 million from $25.8 million in 2019, reflecting
increased selling costs from U.S. revenue growth, as well as
increased investments in organic product development to support new
product launches.
Non-GAAP adjusted operating loss, which excludes
stock-based compensation, fair value adjustments,
litigation-related expenses, transaction-related expenses and
excess and obsolescence charges, was $3.7 million for the second
quarter 2020, compared to a loss of $4.7 million for the second
quarter 2019.
Non-GAAP adjusted EBITDA, which excludes
stock-based compensation, fair value adjustments,
litigation-related expenses, transaction-related expenses and
excess and obsolescence charges in the second quarter 2020 was a
loss of $1.1 million, compared to a loss of $3.0 million in the
second quarter 2019.
For more detailed information on non-GAAP
operating expenses, non-GAAP adjusted operating loss and non-GAAP
adjusted EBITDA, please refer to the table, “Alphatec Holdings,
Inc. Reconciliation of Non-GAAP Financial Measures,” that
follows.
Cash and cash equivalents at June 30, 2020 were
$31.2 million, with an additional $25 million available under the
credit facility with Squadron Capital (the “Squadron
facility”).
Current and long-term debt at face value as of
June 30, 2020 includes $75 million in term debt under the Squadron
facility. During the second quarter of 2020, the Company retired
its revolving credit facility with MidCap Funding.
2020 Financial Outlook
As a result of hospitals globally postponing
elective procedures to preserve capacity for COVID-19 patients,
ATEC suspended its previously announced 2020 revenue guidance on
April 8, 2020. While recovery of surgical volumes has been more
robust than initially anticipated, the Company continues to have
limited visibility into any continuing or future impact of the
global pandemic.
Investor Conference Call
ATEC will present the results via a live webcast
today at 1:30 p.m. PT / 4:30 p.m. ET to discuss the results. At
that time, please click here to access the live webcast. An
audiocast of the presentation will be also be available
domestically at (877) 556-5251 and internationally at (720)
545-0036. The conference ID number is 5682075.
A replay of the webcast will remain available on
ATEC’s corporate website at www.atecspine.com until the
Company releases second quarter financial results. In addition, a
replay of the audiocast will be available until August 14,
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 5682075.
Non-GAAP Financial
Information
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.
Filing of Shelf Registration Statement
on Form S-3
The Company intends to file a “universal shelf”
registration statement on Form S-3 (the “Registration Statement”)
with the United States Securities and Exchange Commission
(“SEC”). ATEC equity securities may not be sold, nor may
offers to buy the securities under the Registration Statement be
accepted, prior to the time the Registration Statement becomes
effective by the SEC. If the Registration Statement is
declared effective, ATEC may offer and sell, from time to time, up
to $200 million, separately or together, of its securities.
The terms of any such offering, including the specific terms and
prices of the securities, will be determined at the time of such
offering and be made solely by means of the prospectus included in
the Registration Statement and any prospectus supplement that may
be filed with the SEC relating to such offering. 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 the Securities
in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities law of any such state.
On August 6, 2020, ATEC entered into an
“at-the-market” (“ATM”) Sales Agreement with Cowen. Under the ATM
Sales Agreement, ATEC may sell its common shares from time to time,
for up to $50 million, separately or together, in aggregate sales
proceeds in “at-the-market” transactions. While ATEC has no
current need to utilize the Registration Statement to issue its
securities, under the ATM Sales Agreement or otherwise, the
Registration Statement will provide ATEC with added flexibility to
strategically access capital markets.
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 architects and commercializes
approach-based technology that integrates seamlessly with the
SafeOp Neural InformatiX System to provide real-time, objective
nerve information that can enhance the safety and reproducibility
of spine surgery. Additional information can be found
at www.atecspine.com.
Additional information can be found at
www.atecspine.com.
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 references to the
impact of the COVID-19 pandemic on the Company's business and
financial results, references to the Company’s revenue and growth
outlook, planned commercial launches, product introduction and
surgeon adoption, salesforce revitalization and growth of strategic
distribution network, the Company’s strategy in significantly
repositioning the ATEC brand, turning the Company into a growth
organization, creating future market disruption, and the Company’s
future ability to finance its operations. 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
impact of COVID-19 pandemic on the Company's business and the
economy; 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; 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 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 products and with emerging new
technologies; product liability exposure; an unsuccessful outcome
in any litigation asserted against the Company. 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:
Josh BergInvestor Relations(760) 494-6790ir@atecspine.com
Company Contact:
Jeff Black Chief Financial Officer Alphatec Holdings, Inc.
ir@atecspine.com
ALPHATEC HOLDINGS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except per share amounts
– unaudited)
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from U.S. products |
|
$ |
28,834 |
|
|
$ |
26,093 |
|
|
$ |
57,904 |
|
|
$ |
49,048 |
|
|
Revenue from international supply agreement |
|
|
795 |
|
|
|
1,226 |
|
|
|
1,840 |
|
|
|
2,826 |
|
|
Total revenues |
|
|
29,629 |
|
|
|
27,319 |
|
|
|
59,744 |
|
|
|
51,874 |
|
|
Cost of revenues |
|
|
8,787 |
|
|
|
8,433 |
|
|
|
17,871 |
|
|
|
16,420 |
|
|
Gross profit |
|
|
20,842 |
|
|
|
18,886 |
|
|
|
41,873 |
|
|
|
35,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
3,672 |
|
|
|
3,241 |
|
|
|
7,421 |
|
|
|
6,613 |
|
|
Sales, general and administrative |
|
|
27,033 |
|
|
|
24,687 |
|
|
|
55,036 |
|
|
|
45,784 |
|
|
Litigation-related |
|
|
1,304 |
|
|
|
1,200 |
|
|
|
3,947 |
|
|
|
3,823 |
|
|
Amortization of acquired intangible assets |
|
|
172 |
|
|
|
172 |
|
|
|
344 |
|
|
|
354 |
|
|
Transaction-related |
|
|
(181 |
) |
|
|
— |
|
|
|
4,091 |
|
|
|
— |
|
|
Restructuring |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60 |
|
|
Total operating expenses |
|
|
32,000 |
|
|
|
29,300 |
|
|
|
70,839 |
|
|
|
56,634 |
|
|
Operating loss |
|
|
(11,158 |
) |
|
|
(10,414 |
) |
|
|
(28,966 |
) |
|
|
(21,180 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense, net |
|
|
(3,032 |
) |
|
|
(1,921 |
) |
|
|
(5,906 |
) |
|
|
(4,040 |
) |
|
Loss on debt extinguishment |
|
|
(1,555 |
) |
|
|
— |
|
|
|
(1,555 |
) |
|
|
- |
|
|
Total other expenses, net |
|
|
(4,587 |
) |
|
|
(1,921 |
) |
|
|
(7,461 |
) |
|
|
(4,040 |
) |
|
Loss from continuing
operations before taxes |
|
|
(15,745 |
) |
|
|
(12,335 |
) |
|
|
(36,427 |
) |
|
|
(25,220 |
) |
|
Income tax provision |
|
|
60 |
|
|
|
71 |
|
|
|
100 |
|
|
|
102 |
|
|
Loss from continuing
operations |
|
|
(15,805 |
) |
|
|
(12,406 |
) |
|
|
(36,527 |
) |
|
|
(25,322 |
) |
|
Loss from discontinued operations |
|
|
— |
|
|
|
(30 |
) |
|
|
— |
|
|
|
(82 |
) |
|
Net loss |
|
$ |
(15,805 |
) |
|
$ |
(12,436 |
) |
|
$ |
(36,527 |
) |
|
$ |
(25,404 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.25 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.55 |
) |
|
Discontinued operations |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
Net loss per share, basic and
diluted |
|
$ |
(0.25 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating
basic and diluted net loss per share |
|
|
63,713 |
|
|
|
46,880 |
|
|
|
63,140 |
|
|
|
45,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation included in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
128 |
|
|
$ |
28 |
|
|
$ |
235 |
|
|
$ |
56 |
|
|
Research and development |
|
|
396 |
|
|
|
174 |
|
|
|
687 |
|
|
|
317 |
|
|
Sales, general and
administrative |
|
|
4,051 |
|
|
|
2,149 |
|
|
|
7,221 |
|
|
|
3,590 |
|
|
|
|
$ |
4,575 |
|
|
$ |
2,351 |
|
|
$ |
8,143 |
|
|
$ |
3,963 |
|
ALPHATEC HOLDINGS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands)
|
|
June 30, |
|
|
|
December 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
31,163 |
|
|
|
$ |
47,113 |
|
|
Accounts
receivable, net |
|
|
19,785 |
|
|
|
|
16,150 |
|
|
Inventories,
net |
|
|
41,466 |
|
|
|
|
34,854 |
|
|
Prepaid
expenses and other current assets |
|
|
2,651 |
|
|
|
|
9,880 |
|
|
Withholding
tax receivable from Officer |
|
|
577 |
|
|
|
|
— |
|
|
Current
assets of discontinued operations |
|
|
322 |
|
|
|
|
321 |
|
|
Total current
assets |
|
|
95,964 |
|
|
|
|
108,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net |
|
|
24,671 |
|
|
|
|
19,722 |
|
|
Right-of-use
asset |
|
|
1,333 |
|
|
|
|
1,860 |
|
|
Goodwill |
|
|
13,897 |
|
|
|
|
13,897 |
|
|
Intangibles,
net |
|
|
24,724 |
|
|
|
|
25,605 |
|
|
Other assets |
|
|
493 |
|
|
|
|
493 |
|
|
Noncurrent assets
of discontinued operations |
|
|
53 |
|
|
|
|
53 |
|
|
Total assets |
|
$ |
161,135 |
|
|
|
$ |
169,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
15,955 |
|
|
|
$ |
7,772 |
|
|
Accrued
expenses |
|
|
24,637 |
|
|
|
|
26,416 |
|
|
Current
portion of long-term debt |
|
|
399 |
|
|
|
|
489 |
|
|
Current
portion of lease liability |
|
|
1,404 |
|
|
|
|
1,314 |
|
|
Current
liabilities of discontinued operations |
|
|
400 |
|
|
|
|
399 |
|
|
Total current
liabilities |
|
|
42,795 |
|
|
|
|
36,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long
term liabilities |
|
|
75,915 |
|
|
|
|
66,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
preferred stock |
|
|
23,603 |
|
|
|
|
23,603 |
|
|
Stockholders' equity |
|
|
18,822 |
|
|
|
|
43,631 |
|
|
Total liabilities
and stockholders' equity |
|
$ |
161,135 |
|
|
|
$ |
169,948 |
|
|
ALPHATEC HOLDINGS,
INC.RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(in thousands – unaudited)
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
32,000 |
|
|
|
29,300 |
|
|
|
70,839 |
|
|
|
56,634 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
|
|
(4,447 |
) |
|
|
(2,323 |
) |
|
|
(7,908 |
) |
|
|
(3,907 |
) |
|
Contingent consideration fair value adjustment |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
(289 |
) |
|
Litigation-related expenses |
|
|
|
|
(1,304 |
) |
|
|
(1,200 |
) |
|
|
(3,947 |
) |
|
|
(3,823 |
) |
|
Restructuring |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(60 |
) |
|
Transaction-related expenses |
|
|
|
|
181 |
|
|
|
— |
|
|
|
(4,091 |
) |
|
|
— |
|
|
Non-GAAP operating
expenses |
|
|
|
$ |
26,430 |
|
|
$ |
25,777 |
|
|
$ |
54,893 |
|
|
$ |
48,555 |
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
Operating loss, as
reported |
|
|
|
$ |
(11,158 |
) |
|
$ |
(10,414 |
) |
|
$ |
(28,966 |
) |
|
$ |
(21,180 |
) |
|
Add back significant
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
|
|
4,575 |
|
|
|
2,351 |
|
|
|
8,143 |
|
|
|
3,963 |
|
|
Contingent consideration fair value adjustment |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
289 |
|
|
Litigation-related expenses |
|
|
|
|
1,304 |
|
|
|
1,200 |
|
|
|
3,947 |
|
|
|
3,823 |
|
|
Restructuring |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60 |
|
|
Transaction-related expenses |
|
|
|
|
(181 |
) |
|
|
— |
|
|
|
4,091 |
|
|
|
— |
|
|
Excess & obsolete charges |
|
|
|
|
1,712 |
|
|
|
2,200 |
|
|
|
3,434 |
|
|
|
4,175 |
|
|
Adjusted operating loss |
|
|
|
$ |
(3,748 |
) |
|
$ |
(4,663 |
) |
|
$ |
(9,351 |
) |
|
$ |
(8,870 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss, as
reported |
|
|
|
$ |
(11,158 |
) |
|
$ |
(10,414 |
) |
|
$ |
(28,966 |
) |
|
$ |
(21,180 |
) |
|
Depreciation |
|
|
|
|
2,161 |
|
|
|
1,473 |
|
|
|
4,175 |
|
|
|
3,076 |
|
|
Amortization of intangible assets |
|
|
|
|
441 |
|
|
|
172 |
|
|
|
881 |
|
|
|
354 |
|
|
EBITDA |
|
|
|
|
(8,556 |
) |
|
|
(8,769 |
) |
|
|
(23,910 |
) |
|
|
(17,750 |
) |
|
Add back significant
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
|
|
4,575 |
|
|
|
2,351 |
|
|
|
8,143 |
|
|
|
3,963 |
|
|
Contingent consideration fair value adjustment |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
289 |
|
|
Litigation-related expenses |
|
|
|
|
1,304 |
|
|
|
1,200 |
|
|
|
3,947 |
|
|
|
3,823 |
|
|
Restructuring |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60 |
|
|
Transaction-related expenses |
|
|
|
|
(181 |
) |
|
|
— |
|
|
|
4,091 |
|
|
|
— |
|
|
Excess & obsolete charges |
|
|
|
|
1,712 |
|
|
|
2,200 |
|
|
|
3,434 |
|
|
|
4,175 |
|
|
Adjusted EBITDA |
|
|
|
$ |
(1,146 |
) |
|
$ |
(3,018 |
) |
|
$ |
(4,295 |
) |
|
$ |
(5,440 |
) |
ALPHATEC HOLDINGS,
INC.RECONCILIATION OF GEOGRAPHIC SEGMENT REVENUES
AND GROSS PROFIT(in thousands, except percentages
– unaudited)
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenues by source |
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
Revenue from U.S.
products |
$ |
28,834 |
|
|
$ |
26,093 |
|
|
$ |
57,904 |
|
|
$ |
49,048 |
|
Revenue from international
supply agreement |
|
795 |
|
|
|
1,226 |
|
|
|
1,840 |
|
|
|
2,826 |
|
Total revenues |
$ |
29,629 |
|
|
$ |
27,319 |
|
|
$ |
59,744 |
|
|
$ |
51,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit by source |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from U.S.
products |
$ |
20,834 |
|
|
$ |
18,841 |
|
|
$ |
41,788 |
|
|
$ |
35,235 |
|
Revenue from international
supply agreement |
|
8 |
|
|
|
45 |
|
|
|
85 |
|
|
|
219 |
|
Total gross profit |
$ |
20,842 |
|
|
$ |
18,886 |
|
|
$ |
41,873 |
|
|
$ |
35,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin by
source |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from U.S.
products |
|
72.3 |
% |
|
|
72.2 |
% |
|
|
72.2 |
% |
|
|
71.8 |
% |
Revenue from international
supply agreement |
|
1.0 |
% |
|
|
3.7 |
% |
|
|
4.6 |
% |
|
|
7.7 |
% |
Total gross profit margin |
|
70.3 |
% |
|
|
69.1 |
% |
|
|
70.1 |
% |
|
|
68.3 |
% |
RECONCILIATION OF NON-GAAP GROSS PROFIT
AND GROSS MARGIN (in thousands, except percentages
– unaudited)
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
GAAP-based gross profit from
U.S. products |
$ |
20,834 |
|
|
$ |
18,841 |
|
|
$ |
41,788 |
|
|
$ |
35,235 |
|
Add: non-cash excess and
obsolete charges |
|
1,712 |
|
|
|
2,200 |
|
|
|
3,434 |
|
|
|
4,175 |
|
Non-GAAP gross profit from
U.S. products |
$ |
22,546 |
|
|
$ |
21,041 |
|
|
$ |
45,222 |
|
|
$ |
39,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP-based gross margin from
U.S. products |
|
72.3 |
% |
|
|
72.2 |
% |
|
|
72.2 |
% |
|
|
71.8 |
% |
Add: non-cash excess and
obsolete charges |
|
5.9 |
% |
|
|
8.4 |
% |
|
|
5.9 |
% |
|
|
8.5 |
% |
Non-GAAP gross margin from
U.S. products |
|
78.2 |
% |
|
|
80.6 |
% |
|
|
78.1 |
% |
|
|
80.3 |
% |
Alphatec (NASDAQ:ATEC)
Historical Stock Chart
From Apr 2024 to May 2024
Alphatec (NASDAQ:ATEC)
Historical Stock Chart
From May 2023 to May 2024