We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Alphatec Holdings Inc | NASDAQ:ATEC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.075 | -0.66% | 11.265 | 11.26 | 11.27 | 11.59 | 11.095 | 11.38 | 1,139,816 | 20:03:49 |
Alphatec Holdings, Inc. (Nasdaq: ATEC), a provider of innovative solutions dedicated to revolutionizing the approach to spine surgery, today announced financial results for the quarter and full year ended December 31, 2023, and business highlights.
Fourth Quarter and Full Year 2023 Financial Results
Quarter EndedDecember 31, 2023 Year EndedDecember 31, 2023 Total revenues$
138
$
482
GAAP gross margin
69.0
%
64.3
%
Non-GAAP gross margin (prior definition)*
72.9
%
72.6
%
Non-GAAP gross margin (updated definition)*
69.7
%
69.8
%
Operating expenses$
140
$
484
Non-GAAP operating expenses
$
106
$
387
GAAP net loss
$
(49
)
$
(187
)
Non-Gaap adjusted EBITDA (prior definition)*$
6
$
4
Non-Gaap adjusted EBITDA (updated definition)*
$
2
$
(9
)
Ending cash balance$
221
*Refer to discussion of updated non-GAAP financial definition. Numbers and percentages may not foot due to rounding.
Business Highlights
Pat Miles, Chairman and Chief Executive Officer, said, "The success we’ve achieved to date is testament: ATEC lateral sophistication, alone, is capable of building a good, profitable company. But we aspire for much more. We are building a spine monster, and the informatics and procedural innovation that our 100% spine-focused knowhow will unleash in the years ahead will further our mission to truly revolutionize spine care. We are all systems go in the pursuit of ATEC’s best, which is yet to come."
Non-GAAP Financial Definition Update
The Company is updating its non-GAAP financial measures to include the non-cash impact of the provision for excess and obsolete inventory (“E&O”) in the calculation of Cost of Goods Sold. With the majority of ATEC’s strategic portfolio transformation complete, the Company has determined that E&O charges are a normal and recurring aspect of operating the business and should be included in the assessment of operating performance. For detail on the impact of this reporting change on previously reported periods and 2024 guidance, a reconciliation of non-GAAP financial measures under both the updated and prior definitions has been included in this release and on the Investor Relations Section of ATEC’s Corporate Website.
Financial Outlook for the Full Year 2024
The Company continues to expect total revenue for the fiscal year ended December 31, 2024, to approximate $595 million, reflecting growth of approximately 23% compared to 2023. This includes surgical revenue of $530 million and approximately $65 million of EOS revenue. The Company expects full year 2024 non-GAAP adjusted EBITDA to approximate $22 million, which implies 560 basis points of improvement in adjusted EBITDA margin compared to full year 2023. Under the prior non-GAAP financial definition, adjusted EBITDA guidance would have approximated $40 million.
Financial Results Webcast
The Company will host a live webcast today at 1:30 p.m. PT / 4:30 p.m. ET. To access the live webcast, please visit the Investor Relations Section of ATEC’s Corporate Website.
To dial into the live webcast, please register at this link. Access details will be shared via email.
A replay of the webcast will be available beginning approximately two hours after the webcast’s completion through March 5, 2024. Access the replay by dialing (800) 770-2030 and referencing conference ID number 97241.
Non-GAAP Financial Information
To supplement the Company’s financial statements presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), the Company reports certain non-GAAP financial measures, including non-GAAP 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 and a discussion of the Company’s non-GAAP definitions. We have not reconciled our adjusted operating expenses and adjusted EBITDA estimates for full year 2024 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of 2024 adjusted operating expenses and adjusted EBITDA estimates is not available without unreasonable effort.
Inducement Awards Granted
As an inducement material to accepting employment with the Company, and in accordance with Nasdaq Listing Rule 5635(c)(4), ATEC today announced that the independent Compensation Committee of the Board of Directors has approved aggregate grants to 22 new employees (who are not executive officers) of, collectively, 31,780 restricted stock units (“RSUs”) under the Company’s 2016 Employment Inducement Award Plan. The RSUs will vest in equal annual installments on each of the first four anniversaries of the grant date, provided that the recipient remains continuously employed by ATEC as of such vesting date. In addition, the RSUs will vest fully upon a change of control of ATEC.
About Alphatec Holdings, Inc.
ATEC, through its wholly owned subsidiaries, Alphatec Spine, Inc., EOS imaging S.A.S. 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 Company’s expanding AlphaInformatiX Platform to better inform surgery and more safely and reproducibly achieve the goals of spine surgery. ATEC’s vision is to become the Standard Bearer in Spine. For more information, visit us 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 will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors. Forward-looking statements include, but are not limited to: references to the Company’s revenue, balance sheet, growth and financial outlook; planned product launches, introductions, regulatory submissions or clearances; efforts to transform sales and distribution channels; the Company’s ability to compel surgeon adoption; and the Company’s future ability to finance its operations and sufficiency of its cash runway. 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 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 or unexpected or prolonged delays in the process; continuation of favorable third-party reimbursement; unanticipated expenses or liabilities or other adverse events affecting cash flow or the Company’s ability to achieve profitability; uncertainty of additional funding; the Company’s ability to compete with other products or with emerging technologies; product liability exposure; an unsuccessful outcome in any litigation; patent infringement claims; claims related to the Company’s intellectual property; and the Company’s ability to meet its financial obligations. 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.
Alphatec Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Year Ended December 31, December 31,
2023
2022
2023
2022
(unaudited) Revenue: Revenue from products and services$
137,970
$
105,944
$
482,262
$
350,852
Revenue from international supply agreement
—
—
—
15
Total revenue
137,970
105,944
482,262
350,867
Cost of sales
42,780
37,093
172,059
117,808
Gross profit
95,190
68,851
310,203
233,059
Operating expenses: Research and development
22,284
11,604
70,115
44,033
Sales, general and administrative
104,120
81,920
374,080
300,013
Litigation-related expenses
9,472
7,314
22,287
23,943
Amortization of acquired intangible assets
3,823
2,934
14,284
10,115
Transaction-related expenses
(65
)
—
2,113
120
Restructuring expenses
386
106
719
1,810
Total operating expenses
140,020
103,878
483,598
380,034
Operating loss
(44,830
)
(35,027
)
(173,395
)
(146,975
)
Interest expense, net: Interest expense, net
(4,416
)
(1,329
)
(16,641
)
(5,505
)
Other income, net
44
1,049
3,121
471
Total interest expense, net
(4,372
)
(280
)
(13,520
)
(5,034
)
Net loss before taxes
(49,202
)
(35,307
)
(186,915
)
(152,009
)
Income tax benefit
(124
)
(524
)
(277
)
(716
)
Net loss$
(49,078
)
$
(34,783
)
$
(186,638
)
$
(151,293
)
Net loss per share, basic and diluted$
(0.37
)
$
(0.33
)
$
(1.54
)
$
(1.46
)
Weighted average shares outstanding, basic and diluted
133,750
105,858
121,242
103,373
Stock-based compensation included in: Cost of sales
$
481
$
1,157
$
25,082
$
2,597
Research and development
9,154
1,029
18,741
5,016
Sales, general and administrative
10,880
7,906
37,421
32,943
$
20,515
$
10,092
$
81,244
$
40,556
Alphatec Holdings, Inc.
Consolidated Balance Sheets
(in thousands)
December 31,2023 December 31,2022 ASSETS Current assets: Cash and cash equivalents
$
220,970
$
84,696
Accounts receivable, net
72,613
60,060
Inventories
136,842
101,521
Prepaid expenses and other current assets
20,666
9,357
Total current assets
451,091
255,634
Property and equipment, net
149,835
101,952
Right-of-use assets
26,410
28,360
Goodwill
73,003
47,367
Intangible assets, net
102,451
82,781
Other assets
2,418
4,874
Total assets$
805,208
$
520,968
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable
$
48,985
$
34,742
Accrued expenses and other current liabilities
87,712
72,382
Contract liabilities
13,910
11,956
Short-term debt
1,808
14,948
Current portion of operating lease liabilities
5,159
4,842
Total current liabilities
157,574
138,870
Total long-term liabilities
545,915
393,162
Redeemable preferred stock
23,603
23,603
Stockholders' equity (deficit)
78,116
(34,667
)
Total liabilities and stockholders' equity (deficit)$
805,208
$
520,968
Alphatec Holdings, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands)
Three Months Ended Year Ended December 31, December 31,
2023
2022
2023
2022
(unaudited) Gross profit, GAAP$
95,190
$
68,851
$
310,203
$
233,059
Add: amortization of intangible assets
278
27
939
64
Add: stock-based compensation
481
1,157
25,082
2,597
Add: purchase accounting adjustments on acquisitions
198
565
393
1,349
Non-GAAP gross profit
$
96,147
$
70,600
$
336,617
$
237,069
Add: excess and obsolete write-down
4,420
2,769
13,608
9,792
Prior definition non-GAAP gross profit
$
100,567
$
73,369
$
350,225
$
246,861
Gross margin, GAAP
69.0
%
65.0
%
64.3
%
66.4
%
Add: amortization of intangible assets
0.2
%
0.0
%
0.2
%
0.0
%
Add: stock-based compensation
0.3
%
1.1
%
5.2
%
0.7
%
Add: purchase accounting adjustments on acquisitions
0.1
%
0.5
%
0.1
%
0.4
%
Non-GAAP gross margin
69.7
%
66.6
%
69.8
%
67.6
%
Add: excess and obsolete write-down
3.2
%
2.6
%
2.8
%
2.8
%
Prior definition non-GAAP gross margin
72.9
%
69.3
%
72.6
%
70.4
%
Three Months Ended Year Ended December 31, December 31,2023
2022
2023
2022
(unaudited) Operating expenses, GAAP$
140,020
$
103,878
$
483,598
$
380,034
Adjustments: Stock-based compensation
(20,034
)
(8,935
)
(56,162
)
(37,959
)
Litigation-related expenses
(9,472
)
(7,314
)
(22,287
)
(23,943
)
Amortization of intangible assets
(3,823
)
(2,934
)
(14,284
)
(10,115
)
Transaction-related expenses
65
—
(2,113
)
(120
)
Restructuring expenses
(386
)
(106
)
(719
)
(1,810
)
Other non-recurring expenses1
—
—
(1,349
)
—
Non-GAAP operating expenses
$
106,370
$
84,589
$
386,684
$
306,087
Three Months Ended Year Ended December 31, December 31,
2023
2022
2023
2022
(unaudited) Net loss, GAAP$
(49,078
)
$
(34,783
)
$
(186,638
)
$
(151,293
)
Interest expense, net4,372
280
13,520
5,034
Income tax benefit(124
)(524
)(277
)(716
) Depreciation
11,918
8,388
40,916
30,989
Amortization of intangible assets
4,101
2,961
15,223
10,179
EBITDA
(28,811
)
(23,678
)
(117,256
)
(105,807
)
Add back significant items: Stock-based compensation
20,515
10,092
81,244
40,556
Purchase accounting adjustments on acquisitions
198
565
393
1,349
Litigation-related expenses
9,472
7,314
22,287
23,943
Transaction-related expenses
(65
)
—
2,113
120
Restructuring expenses
386
106
719
1,810
Other non-recurring expenses1
—
—
1,349
—
Adjusted EBITDA
$
1,695
$
(5,601
)
$
(9,151
)
$
(38,029
)
Excess & obsolete write-down
4,420
2,769
13,608
9,792
Prior definition adjusted EBITDA
$
6,115
$
(2,832
)
$
4,457
$
(28,237
)
1 Non-recurring consulting fees associated with the implementation of our state tax-planning strategy
Non-GAAP Definitions
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227112817/en/
Investor/Media Contact: Tina Jacobsen, CFA Investor Relations (760) 494-6790 investorrelations@atecspine.com
Company Contact: J. Todd Koning Chief Financial Officer investorrelations@atecspine.com
1 Year Alphatec Chart |
1 Month Alphatec Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions