Alphatec Holdings, Inc. (“ATEC” 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 reported financial results for the second
quarter ended June 30, 2018.
Second Quarter 2018 Financial
Highlights
- Total net revenue of $22.0 million; U.S. commercial revenue of
$20.4 million, up 6% compared to the first quarter of 2018
- U.S. commercial gross margin of 69.5%
- Cash and cash equivalents of $44.9 million at June 30,
2018
- Operating cash burn (excluding debt service and
transaction-related costs) of $3.0 million
Second Quarter
Organizational, Commercial, and Product
Highlights
- Continued transition of sales organization and increased
contribution from dedicated distribution partners and agents to 57%
of U.S. commercial revenue
- Increased revenue attributable to newly converted surgeons,
which more than doubled sequentially
- Obtained FDA 510(k) clearance for IdentiTi porous titanium
interbody implants; successfully completed first surgery in
conjunction with alpha launch
- Obtained two significant, favorable rulings in the patent
litigation brought by NuVasive, Inc.
- Made three key additions to ATEC leadership team: David
Sponsel, Area Vice President, South Central United States; Emory
Rooney, Vice President, Sales Channel Development; and Robert Judd,
Vice President, Finance & Controller, who collectively bring
decades of additional spine industry experience to ATEC
“Our second quarter results, and numerous
leading indicators, drive our growing confidence in the bright
future for ATEC,” said Pat Miles, Chairman and Chief Executive
Officer. “While we continue to anticipate some short-term
variability, we expect that our organic product development machine
will accelerate growth. The spine market needs surgeon-driven,
outcome-focused innovation, and we are absolutely committed to
providing it. We are confident that we are building an organization
that will create significant, long-term value.”
Comparison of Financial Results for the
Second Quarter 2018 to First Quarter 2018
The following table compares key second quarter
2018 results to first quarter 2018 results.
|
|
|
|
|
|
|
|
|
|
|
Change |
|
June 30, 2018 |
|
March 31, 2018 |
|
$ |
|
% |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial
revenue |
$ |
20,409 |
|
|
$ |
19,201 |
|
|
$ |
1,208 |
|
|
6 |
% |
U.S. gross profit |
|
14,178 |
|
|
|
13,432 |
|
|
|
746 |
|
|
6 |
% |
U.S. gross margin |
|
69.5 |
% |
|
|
70.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
Research
and development |
$ |
2,009 |
|
|
$ |
1,786 |
|
|
$ |
223 |
|
|
12 |
% |
Sales and
marketing |
|
10,673 |
|
|
|
10,060 |
|
|
|
613 |
|
|
6 |
% |
General
and administrative |
|
7,815 |
|
|
|
6,442 |
|
|
|
1,373 |
|
|
21 |
% |
Amortization of intangible assets |
|
187 |
|
|
|
177 |
|
|
|
10 |
|
|
6 |
% |
Transaction-related expenses |
|
(62 |
) |
|
|
1,542 |
|
|
|
(1,604 |
) |
|
(104 |
%) |
Gain on
settlement |
|
- |
|
|
|
(6,168 |
) |
|
|
6,168 |
|
|
(100 |
%) |
Restructuring |
|
193 |
|
|
|
398 |
|
|
|
(205 |
) |
|
(52 |
%) |
Total
operating expenses |
$ |
20,815 |
|
|
$ |
14,237 |
|
|
$ |
6,578 |
|
|
46 |
% |
|
|
|
|
|
|
|
|
Operating loss |
$ |
(6,545 |
) |
|
$ |
(667 |
) |
|
$ |
(5,878 |
) |
|
881 |
% |
|
|
|
|
|
|
|
|
Interest and other
expense |
$ |
(1,784 |
) |
|
$ |
(1,645 |
) |
|
$ |
(139 |
) |
|
8 |
% |
|
|
|
|
|
|
|
|
Loss from continuing
operations |
$ |
(7,064 |
) |
|
$ |
(1,854 |
) |
|
$ |
(5,210 |
) |
|
281 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA |
$ |
(3,677 |
) |
|
$ |
(2,390 |
) |
|
$ |
(1,287 |
) |
|
54 |
% |
|
|
|
|
|
|
|
|
U.S. commercial revenue for the second quarter
of 2018 was $20.4 million, compared to $19.2 million in the first
quarter of 2018. Results reflect the continued transition of
the Company’s distribution channel to more dedicated, scalable
partners. Revenue growth generated by the expansion of the
dedicated sales channel, coupled with new surgeon adoption, offset
the revenue losses associated with the intentional reduction of
non-strategic distributor relationships.
U.S. gross profit and gross margin for the
second quarter of 2018 were $14.2 million and 69.5%, respectively,
compared to $13.4 million and 70.0%, respectively, for the first
quarter of 2018. U.S. gross margin stabilized as the Company
continued to reduce product costs and optimize its supply
chain.
Total operating expenses for the second quarter
of 2018 were $20.8 million, compared to $14.2 million in the first
quarter of 2018. The increase is primarily the result of a
$6.2 million contract settlement gain recorded in the first quarter
of 2018. On a non-GAAP basis (excluding restructuring
charges, stock-based compensation, transaction-related expenses,
and the contract settlement gain), total operating expenses in the
second quarter increased to $19.5 million, compared to $17.9
million in the first quarter of 2018. The increase primarily
reflects increased sales expenses, litigation support costs, and
investments in product development.
Operating loss for the second quarter of 2018
was $6.5 million, compared to a loss of $0.7 million for the first
quarter of 2018. The increase is primarily the result of the $6.2
million contract settlement gain recorded in the first quarter of
2018.
Non-GAAP Adjusted EBITDA for the second quarter
of 2018 was $(3.7) million, compared to $(2.4) million in the first
quarter of 2018. For more detailed information, please refer
to the table, “Alphatec Holdings, Inc. Reconciliation of Non-GAAP
Financial Measures,” that follows.
Current and long-term debt includes $30.6
million in term debt and $8.2 million outstanding under the
Company’s revolving credit facility at June 30, 2018. This compares
to $31.5 million in term debt and $8.4 million outstanding under
the Company’s revolving credit facility at March 31, 2018.
Cash and cash equivalents were $44.9 million at
June 30, 2018, compared to $47.6 million reported at March 31,
2018.
Comparison of Financial Results for the
Three and Six Months Ended June 30, 2018 and 2017
Revenue decreased on a year-over-year basis as a
result of the continued transition of the Company’s distribution
channel to more dedicated, scalable partners and the
discontinuation of non-strategic distributor relationships. The
year-over-year increase in operating expenses was attributable to
litigation support costs, transaction-related expenses associated
with the Company’s acquisition of SafeOp Surgical, Inc., and
increased investment in product development initiatives as the
Company expands its product pipeline. For additional information,
please reference the following financial statement tables and the
Company’s Quarterly Report on Form 10-Q to be filed with the
Securities and Exchange Commission on or before August 3, 2018.
2018 Financial Outlook
ATEC continues to anticipate total revenue in
2018 to approximate $95.0 million, with revenue growth expected to
accelerate in the second half of the year.
Favorable Patent Litigation
Rulings
ATEC obtained two significant, favorable rulings
in the patent litigation brought by NuVasive, Inc.: the first
dismissed NuVasive’s design patent counts, covering the implant and
sequential dilators used in lateral surgery; the second denied
NuVasive’s Motion for Preliminary Injunction, finding that NuVasive
had not met its burden of proving either likelihood of success or
irreparable harm. The latter ruling allows ATEC to continue
to sell its lateral surgery offering while the lawsuit is
pending.
Key Executive Additions
Mr. Sponsel has nearly 20 years’ sales
experience, including 13 years in the spine industry. He
spent a decade with Stryker Spine, before leaving to lead Medacta
USA’s Spine Division. Mr. Rooney has accumulated over a decade
of leadership in spine sales. He joins ATEC from Stryker
Spine, where he most recently served as Vice President, Sales,
Southeast. Mr. Judd brings nearly 15 years of accounting and
strategic finance experience to ATEC. He joins ATEC following three
years with NuVasive, Inc., where he served most recently as Vice
President, Finance – Global Process Transformation, after holding
finance and accounting leadership positions with Thermo Fisher
Scientific, Life Technologies, Allergan, and KPMG.
Non-GAAP 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 such as Adjusted EBITDA. Adjusted EBITDA included in
this press release is a non-GAAP financial measure that represents
net income (loss), excluding the effects of interest, taxes,
depreciation, amortization, stock-based compensation expenses, and
other non-recurring income or expense items, such as sale of
assets, settlement gains, impairments, restructuring expenses,
severance expenses and transaction-related expenses. The
Company believes that non-GAAP Adjusted EBITDA provides 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. For completeness,
management uses non-GAAP Adjusted EBITDA in conjunction with GAAP
earnings and earnings per common share measures. The
Company’s Adjusted EBITDA measure 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. Adjusted EBITDA 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 measure.
Investor Conference Call
ATEC will hold a conference call today at 1:30
p.m. PT / 4:30 p.m. ET to discuss second quarter 2018 results. The
dial-in numbers are (877) 556-5251 for domestic callers and (720)
545-0036 for international callers. The conference ID number is
1956197. A live webcast of the conference call will also 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 third quarter 2018 financial results. In addition, a
telephonic replay of the call will be available until November 2,
2018. 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 1956197.
Inducement Awards Granted
As an inducement to accepting employment with
the Company, and in accordance with applicable Nasdaq listing
requirements, the Compensation Committee of the Board of Directors
approved grants of inducement stock options to purchase,
collectively, an aggregate of 115,000 shares of the Company’s
common stock (“Options”) and approved the grants of, collectively,
115,000 restricted stock units (RSUs) to the three new employees
noted above. The grants are dated as of May 29, June 18, and
July 16, 2018 — the respective dates of employment of each new
employee.
The RSUs will vest in equal annual installments
on each of the first four anniversaries of the respective dates of
employment set forth above. The Options, which have exercise
prices of $3.86, $3.01 and $2.84 per share (based on the closing
prices of the Company’s common stock on the respective effective
dates of the grants), will vest 25 percent on the first anniversary
of the grants and in equal monthly installments of 1/36th of the
balance of the Options, provided the recipient remains continuously
employed by ATEC as of such vesting date. In addition,
the RSUs and Options will fully vest upon a change in control
of ATEC.
ATEC is providing this information in accordance
with Nasdaq Listing Rule 5635(c)(4).
About Alphatec Holdings,
Inc.
Alphatec Holdings, Inc., through its wholly
owned subsidiaries, Alphatec Spine, Inc. and SafeOp Surgical, Inc.,
is a medical device company that designs, develops, and markets
technology 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.
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 ATEC 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. 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
Relationstjacobsen@moreeffectiveir.com
Company Contact:
Jeff BlackExecutive Vice President and Chief
Financial OfficerAlphatec 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, |
|
2018 |
|
2017 |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
22,042 |
|
|
$ |
24,379 |
|
|
|
$ |
43,349 |
|
|
$ |
52,357 |
|
Cost of revenues |
|
7,772 |
|
|
|
8,631 |
|
|
|
|
15,509 |
|
|
|
19,830 |
|
Gross profit |
|
14,270 |
|
|
|
15,748 |
|
|
|
|
27,840 |
|
|
|
32,527 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
2,009 |
|
|
|
990 |
|
|
|
|
3,795 |
|
|
|
2,439 |
|
Sales and
marketing |
|
10,673 |
|
|
|
10,298 |
|
|
|
|
20,733 |
|
|
|
21,401 |
|
General
and administrative |
|
7,815 |
|
|
|
5,351 |
|
|
|
|
14,257 |
|
|
|
11,574 |
|
Amortization of intangible assets |
|
187 |
|
|
|
172 |
|
|
|
|
364 |
|
|
|
344 |
|
Transaction-related expenses |
|
(62 |
) |
|
|
- |
|
|
|
|
1,480 |
|
|
|
- |
|
Gain on
settlement |
|
- |
|
|
|
- |
|
|
|
|
(6,168 |
) |
|
|
- |
|
Gain on
sale of assets |
|
- |
|
|
|
(856 |
) |
|
|
|
- |
|
|
|
(856 |
) |
Restructuring expenses |
|
193 |
|
|
|
528 |
|
|
|
|
591 |
|
|
|
1,759 |
|
Total operating
expenses |
|
20,815 |
|
|
|
16,483 |
|
|
|
|
35,052 |
|
|
|
36,661 |
|
Operating loss |
|
(6,545 |
) |
|
|
(735 |
) |
|
|
|
(7,212 |
) |
|
|
(4,134 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest
expense, net |
|
(1,709 |
) |
|
|
(1,881 |
) |
|
|
|
(3,416 |
) |
|
|
(3,862 |
) |
Other
income, net |
|
(75 |
) |
|
|
2 |
|
|
|
|
(13 |
) |
|
|
7 |
|
Total other expense,
net |
|
(1,784 |
) |
|
|
(1,879 |
) |
|
|
|
(3,429 |
) |
|
|
(3,855 |
) |
Loss from continuing
operations before taxes |
|
(8,329 |
) |
|
|
(2,614 |
) |
|
|
|
(10,641 |
) |
|
|
(7,989 |
) |
Income
tax (benefit) provision |
|
(1,265 |
) |
|
|
15 |
|
|
|
|
(1,723 |
) |
|
|
64 |
|
Loss from continuing
operations |
|
(7,064 |
) |
|
|
(2,629 |
) |
|
|
|
(8,918 |
) |
|
|
(8,053 |
) |
Loss from
discontinued operations |
|
(12 |
) |
|
|
(68 |
) |
|
|
|
(74 |
) |
|
|
(159 |
) |
Net loss |
$ |
(7,076 |
) |
|
$ |
(2,697 |
) |
|
|
$ |
(8,992 |
) |
|
$ |
(8,212 |
) |
|
|
|
|
|
|
|
|
|
Net loss per
share, basic and diluted: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.21 |
) |
|
$ |
(0.24 |
) |
|
|
$ |
(0.32 |
) |
|
$ |
(0.80 |
) |
Discontinued operations |
|
(0.00 |
) |
|
|
(0.01 |
) |
|
|
|
(0.00 |
) |
|
|
(0.02 |
) |
Net loss per share,
basic and diluted |
$ |
(0.21 |
) |
|
$ |
(0.24 |
) |
|
|
$ |
(0.33 |
) |
|
$ |
(0.82 |
) |
Shares used
in calculating basic and diluted net loss per share |
|
|
|
|
|
|
|
|
|
34,030 |
|
|
|
11,047 |
|
|
|
|
27,656 |
|
|
|
10,033 |
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation included in: |
|
|
|
|
|
|
|
|
Cost of revenue |
|
11 |
|
|
|
11 |
|
|
|
|
33 |
|
|
|
14 |
|
Research and
development |
|
129 |
|
|
|
(20 |
) |
|
|
|
13 |
|
|
|
291 |
|
Sales and
marketing |
|
193 |
|
|
|
151 |
|
|
|
|
304 |
|
|
|
224 |
|
General and
administrative |
|
815 |
|
|
|
269 |
|
|
|
|
1,417 |
|
|
|
690 |
|
|
$ |
1,148 |
|
|
$ |
411 |
|
|
|
$ |
1,767 |
|
|
$ |
1,219 |
|
|
|
|
|
|
|
|
|
|
|
ALPHATEC HOLDINGS, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(in
thousands) |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2018 |
|
2017 |
|
(unaudited) |
|
|
ASSETS |
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
44,912 |
|
$ |
22,466 |
|
Accounts
receivable, net |
|
11,405 |
|
|
14,822 |
|
Inventories, net |
|
28,177 |
|
|
27,292 |
|
Prepaid
expenses and other current assets |
|
1,778 |
|
|
1,767 |
|
Current
assets of discontinued operations |
|
251 |
|
|
131 |
|
Total current
assets |
|
86,523 |
|
|
66,478 |
|
|
|
|
|
Property and equipment,
net |
|
12,060 |
|
|
12,670 |
|
Goodwill |
|
14,250 |
|
|
- |
|
Intangibles, net |
|
26,382 |
|
|
5,248 |
|
Other assets |
|
225 |
|
|
208 |
|
Noncurrent assets of
discontinued operations |
|
55 |
|
|
56 |
|
Total assets |
$ |
139,495 |
|
$ |
84,660 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) |
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
3,354 |
|
$ |
3,878 |
|
Accrued
expenses |
|
24,607 |
|
|
22,246 |
|
Current
portion of long-term debt |
|
6,682 |
|
|
3,306 |
|
Current
liabilities of discontinued operations |
|
385 |
|
|
312 |
|
Total current
liabilities |
|
35,028 |
|
|
29,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
long term liabilities |
|
50,644 |
|
|
57,973 |
|
Redeemable preferred stock |
|
23,603 |
|
|
23,603 |
|
Stockholders' equity |
|
30,220 |
|
|
(26,658 |
) |
Total liabilities and
stockholders' deficit |
$ |
139,495 |
|
$ |
84,660 |
|
|
|
|
|
|
ALPHATEC HOLDINGS, INC. |
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
(in thousands - unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ThreeMonthsEnded |
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
June 30, |
|
June 30, |
|
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
14,237 |
|
|
|
20,815 |
|
|
|
16,483 |
|
|
|
35,052 |
|
|
|
36,661 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(597 |
) |
|
|
(1,137 |
) |
|
|
(400 |
) |
|
|
(1,734 |
) |
|
|
(1,205 |
) |
Restructuring |
|
|
(398 |
) |
|
|
(193 |
) |
|
|
(528 |
) |
|
|
(591 |
) |
|
|
(1,759 |
) |
Transaction-related expenses |
|
|
(1,542 |
) |
|
|
62 |
|
|
|
- |
|
|
|
(1,480 |
) |
|
|
- |
|
Gain on
settlement |
|
|
6,168 |
|
|
|
- |
|
|
|
- |
|
|
|
6,168 |
|
|
|
- |
|
Gain on
sale of assets |
|
|
|
|
|
|
856 |
|
|
|
|
|
856 |
|
Non-GAAP operating
expenses |
|
$ |
17,868 |
|
|
$ |
19,547 |
|
|
$ |
16,411 |
|
|
$ |
37,415 |
|
|
$ |
34,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ThreeMonthsEnded |
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
June 30, |
|
June 30, |
|
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Operating loss, as
reported |
|
$ |
(667 |
) |
|
$ |
(6,545 |
) |
|
$ |
(735 |
) |
|
$ |
(7,212 |
) |
|
$ |
(4,134 |
) |
Add back: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
1,592 |
|
|
|
1,457 |
|
|
|
1,636 |
|
|
|
3,049 |
|
|
|
3,270 |
|
Amortization of intangible assets |
|
|
294 |
|
|
|
132 |
|
|
|
234 |
|
|
|
426 |
|
|
|
468 |
|
Total EBITDA |
|
|
1,219 |
|
|
|
(4,956 |
) |
|
|
1,135 |
|
|
|
(3,737 |
) |
|
|
(396 |
) |
|
|
|
|
|
|
|
|
|
|
|
Add back significant
items: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
619 |
|
|
|
1,148 |
|
|
|
411 |
|
|
|
1,767 |
|
|
|
1,219 |
|
Restructuring |
|
|
398 |
|
|
|
193 |
|
|
|
528 |
|
|
|
591 |
|
|
|
1,759 |
|
Transaction-related expenses |
|
|
1,542 |
|
|
|
(62 |
) |
|
|
- |
|
|
|
1,480 |
|
|
|
- |
|
Gain on
settlement |
|
|
(6,168 |
) |
|
|
- |
|
|
|
- |
|
|
|
(6,168 |
) |
|
|
- |
|
Gain on
sale of assets |
|
|
|
|
|
|
(856 |
) |
|
|
|
|
(856 |
) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(2,390 |
) |
|
$ |
(3,677 |
) |
|
$ |
1,218 |
|
|
$ |
(6,067 |
) |
|
$ |
1,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
Revenues by source |
|
|
|
|
|
|
|
U.S. commercial
revenue |
$ |
20,409 |
|
|
$ |
21,877 |
|
|
$ |
39,610 |
|
|
$ |
45,314 |
|
Other |
|
1,633 |
|
|
|
2,502 |
|
|
|
3,739 |
|
|
|
7,043 |
|
Total revenues |
$ |
22,042 |
|
|
$ |
24,379 |
|
|
$ |
43,349 |
|
|
$ |
52,357 |
|
|
|
|
|
|
|
|
|
Gross profit by
source |
|
|
|
|
|
|
|
U.S. |
$ |
14,178 |
|
|
$ |
15,521 |
|
|
$ |
27,610 |
|
|
$ |
31,789 |
|
Other |
|
92 |
|
|
|
227 |
|
|
|
230 |
|
|
|
738 |
|
Total gross profit |
$ |
14,270 |
|
|
$ |
15,748 |
|
|
$ |
27,840 |
|
|
$ |
32,527 |
|
|
|
|
|
|
|
|
|
Gross profit margin by
source |
|
|
|
|
|
|
|
U.S. |
|
69.5 |
% |
|
|
70.9 |
% |
|
|
69.7 |
% |
|
|
70.2 |
% |
Other |
|
5.6 |
% |
|
|
9.1 |
% |
|
|
6.1 |
% |
|
|
10.5 |
% |
Total gross profit
margin |
|
64.7 |
% |
|
|
64.6 |
% |
|
|
64.2 |
% |
|
|
62.1 |
% |
|
|
|
|
|
|
|
|
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