Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of
Alphatec Spine, Inc., a global provider of spinal fusion
technologies, announced today financial results for the fourth
quarter and full year ended December 31, 2015.
- Fourth quarter revenue of $47.0 million.
- Fourth quarter adjusted EBITDA of $5.2 million, 11.1% of
revenue.
- Annual total revenue of $185.3 million.
- Full year adjusted EBITDA of $20.7 million, 11.2% of
revenue.
- Continued improvement of U.S. business – up 7.6% sequentially
from Q3 2015.
- Record revenue for international business – $70.7 million, up
16.9% in constant currency, and representing 38% of full year 2015
revenue.
Recent Positive Progress Made Towards
Alphatec's Corporate Strategic Objectives
Strategic Pillar #1: "Go-to-Market" Product Portfolio and
R&D Pipeline
- Arsenal™ Degenerative system is in full launch in US and Japan,
increasing degenerative product user base by 52%.
- Arsenal CBX™ full launch underway, further expanding the
Arsenal spinal fusion platform offerings.
- Arsenal™ Deformity received 510k clearance and is ready for
launch in Q1 2016.
- Battalion™ titanium-coated PEEK interbody fusion system is now
in full launch.
- Neocore™ Osteoconductive Matrix, a synthetic scaffold for the
regeneration of bone, is now in full launch.
Strategic Pillar #2: Transform Manufacturing and
Distribution Operations
- Completed outsourcing of manufacturing to drive overall
reduction in implant unit costs and capital expense.
- Completed pilot phase of partnership with UPS for outsourcing
physical distribution of implant and instrument sets to enhance
customer service and drive set utilization improvements.
Expect outsourcing to be complete in Q3 2016.
Strategic Pillar #3: Expand Global Commercial
Participation
- Made progress in commercial expansion in large U.S.
metropolitan markets through new distributor relationships, direct
selling representatives and new surgeon customers enabled by
compelling new additions to product portfolio.
- Expanded into new international geographies, including
establishing a new distribution partner in Australia in Q1
2016.
“In 2015 we made substantial progress toward furthering our
corporate strategic initiatives within each of our three pillars,”
said Jim Corbett, President and Chief Executive Officer of Alphatec
Spine. “I am particularly pleased with the speed at which we are
bringing new products to the large spinal fusion segments of the
market; the headway we have made in efforts to outsource implant
manufacturing and physical distribution and our progress in
expanding our commercial footprint in new markets and to new
surgeon customers. We believe we have laid the foundation for
future profitable growth and will continue to focus on our
strategic objectives while finding the right capital structure to
support our business.”
Extension of MidCap Financial Credit
Facility
In conjunction with its earnings announcement, the Company
announced that on March 11, 2016, it entered into a third amendment
and waiver (the “Third Amendment”) to the Amended Credit Facility
(the “Facility”) with MidCap Financial (“MidCap”). The Third
Amendment extends the maturity date of the Facility from August 30,
2016 to December 31, 2016. In addition, the Third Amendment
contains a waiver of the Company’s failure to achieve the minimum
fixed charge coverage ratio required by the Facility for December
of 2015 and January of 2016. This constituted an event of
default under the Facility. With the Third Amendment, the
Company is not required to calculate such ratio in February of
2016. The Company’s other lender, Deerfield, which had
previously provided a waiver for December of 2015 has also provided
a waiver for January of 2016.
“The extension of the MidCap facility provides us with
additional flexibility as we work toward a long-term solution for
our capital structure,” said Jim Corbett, President and CEO of
Alphatec Spine. “We are grateful to the team at MidCap Financial
that has taken the time to understand our business, our prospects
and our capital needs.”
The Company will delay issuance of its 2016 financial guidance
as it works to reach resolution regarding its capital structure and
liquidity position.
Quarter Ended December 31, 2015
Consolidated net revenues for the fourth quarter of 2015 were
$47.0 million, down 12.4% compared to $53.6 million reported for
the fourth quarter of 2014, or down 9.4% on a constant currency
basis. Consolidated revenues were impacted by $1.6 million in
foreign currency changes in the fourth quarter due primarily to
declines in the valuation of the Japanese Yen and Euro against the
U.S. dollar. Sequentially, consolidated net revenue for the
fourth quarter was up 9.3% compared to the third quarter of
2015.
U.S. net revenues for the fourth quarter of 2015 were $29.5
million, compared to $35.7 million reported for the fourth quarter
of 2014. Sequentially, U.S. revenue for the fourth quarter was up
7.6% from the third quarter of 2015.
International net revenues for the fourth quarter of 2015 were
$17.5 million, down 2.3% compared to $17.9 million for the fourth
quarter of 2014, or up 6.3% on a constant currency basis.
Consolidated gross profit and gross margin for the fourth
quarter of 2015 were $31.1 million and 66.2%, respectively,
compared to $37.7 million and 70.3%, respectively, for the fourth
quarter of 2014.
Gross profit in the fourth quarter of 2015 declined 17% from the
fourth quarter of 2014 primarily a result of lower U.S. sales
volume, foreign currency translation effects and global geographic
mix.
Gross margin declined 4.1 percentage points compared to a strong
quarter for gross margin in the fourth quarter of 2014. The
decline over prior year is primarily attributable to unfavorable
regional mix, product mix and currency (1.4 percentage points),
increased depreciation expense related to instruments (0.4
percentage points) and non-recurring accelerated depreciation
associated with the cessation of manufacturing activities (2.1
percentage points).
Total operating expenses for the fourth quarter of 2015 were
$36.9 million, reflecting an increase of approximately 6% over the
fourth quarter of 2014. This variance is primarily
attributable to a stock-based compensation adjustment associated
with a third party consulting agreement in research and
development, as well as non-recurring restructuring expenses
related to the outsourcing of manufacturing and restructuring of
international operations.
GAAP net loss for the fourth quarter of 2015 was $9.9 million or
($0.10) per share (basic and diluted), compared to a net loss of
$273 thousand, or ($0.00) per share basic and ($0.03) per share
diluted for the fourth quarter of 2014. Please refer to the table,
"Alphatec Holdings, Inc. Reconciliation of Non-GAAP Financial
Measures" that follows for more detailed information.
Adjusted EBITDA in the fourth quarter of 2015 was $5.2 million,
or 11.1% of revenues, compared to $8.3 million, or 15.4% of
revenues reported in the fourth quarter of 2014. Fourth quarter
2015 adjusted EBITDA represents net income excluding effects of
interest and other expenses, taxes, depreciation, amortization and
stock-based compensation. Please refer to the table, "Alphatec
Holdings, Inc. Reconciliation of Non-GAAP Financial Measures" that
follows for more detailed information.
Unrestricted cash and cash equivalents were $11.2 million at
December 31, 2015, compared to $19.7 million reported at December
31, 2014. Additionally, the Company reported $2.4 million of
restricted cash, which must be used for future payment obligations
associated with the Orthotec settlement.
Current portion of long-term debt, which includes both MidCap
Financial and Deerfield, was $80.1 million at December 31,
2015.
Year Ended December 31, 2015
Consolidated net revenues for full year 2015 were $185.3
million, representing a decrease of 10.5%, compared to $207.0
million reported for full year 2014. Consolidated revenues
were adversely impacted by $11.0 million in foreign currency
changes against the U.S. dollar for the full year 2014,
predominately changes against the Japanese Yen and Euro.
U.S. net revenues for full year 2015 were $114.6 million,
representing decrease of 16.4%, compared to $137.1 million reported
for full year 2014.
International net revenues for full year 2015 were $70.7
million, representing an increase of $800 thousand on an as
reported basis compared to $69.9 million for full year 2014, or up
16.9% on a constant currency basis.
Consolidated gross profit and gross margin for full year 2015
were $120.1 million and 64.8%, respectively, compared to $143.4
million and 69.3%, respectively, for full year 2014.
Gross margin for the full year 2015 decreased 4.5 percentage
points over the prior year primarily due to unfavorable variation
in regional mix, product mix and currency (2.4 percentage points)
and one-time charges, including manufacturing restructuring
(2.4 percentage points), offset by a decrease in amortization
expense (0.3 percentage points).
Total operating expenses for full year 2015 were $292.5 million,
reflecting an increase of $151.0 million compared to full year
2014. This variance is driven primarily by non-cash, goodwill and
intangible asset impairment charges totaling $165.2 million and
restructuring expenses totaling $1.2 million.
When adjusted for non-recurring impairment and restructuring
expenses, total operating expenses for the full year of 2015 would
be $126.2 million, reflecting an improvement of 10.4%, or $14.7
million compared to the full year of 2014. This decrease is
primarily attributable to lower commission expense as a result of
lower U.S. sales volume, as well as savings in marketing and
general and administrative functions and litigation expense.
Please refer to the tables titled, "Alphatec Holdings, Inc.
Non-GAAP Condensed Consolidated Statement of Operations" that
follow for more detailed information.
GAAP net loss for full year 2015 was $178.7 million or ($1.79)
per share (basic and diluted), compared to a net loss of $12.9
million, or ($0.13) per share basic and ($0.16) per share diluted
for full year 2014. GAAP net loss for full year 2015 was
unfavorably impacted by $165.2 million of non-cash impairment
charges.
Adjusted EBITDA for full year 2015 was $20.7 million, or 11.2%
of revenues, compared to $30.8 million, or 14.9% of revenues
reported for full year 2014. Full year 2015 adjusted EBITDA
represents net income excluding effects of interest and other
expenses, taxes, depreciation, amortization, stock-based
compensation, and IPR&D. Please refer to the table, "Alphatec
Holdings, Inc. Reconciliation of Non-GAAP Financial Measures" that
follows for more detailed information.
Non-GAAP Information
Alphatec Spine reports certain non-GAAP financial measures such
as non-GAAP earnings and earnings per share, adjusted for effects
of amortization and other non-recurring or expense items, such as
impairments, loss on extinguishment of debt, and restructuring
expenses. 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, in process
research and development (IPR&D) expenses and other
non-recurring income or expense items, such as impairments,
restructuring expenses, severance expenses, litigation expenses,
damages associated with ongoing litigation 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 base-line 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. These non-GAPP financial measures 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.
About Alphatec Spine
Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec
Holdings, Inc., is a global medical device company that designs,
develops, manufactures 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 delivering
advancements in spinal fusion technologies. The Company and its
affiliates market products in the U.S. and internationally via a
direct sales force and independent distributors.
Additional information can be found at
www.alphatecspine.com.
Forward Looking Statements
This press release may contain “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. Alphatec Spine 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 success of
the Company’s initiatives to drive global sales growth and expand
its geographical sales coverage; increase margins and increase
operating efficiencies; the success of the Company in achieving its
three strategic pillars, the Company’s ability to implement a plan
that will ensure that it competes more effectively in the
marketplace, expands global participation, and improves operations
through the Company’s plan to outsource manufacturing and
distribution; the ability of the Company to remain listed on the
NASDAQ Stock Market; and the ability of the Company to restructure
its capital structure and raise additional capital in order to
continue to operate its business and service its ongoing debt
obligations; and the ability of the Company to meet the financial
covenants under its debt facilities or obtain waivers in the event
that such covenants are not met. 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 Company's ability to
execute its business plan in light of its cash position and its
current liabilities, which includes $80.1 million of debt; the
Company's ability to restructure its capital structure and raise
additional capital as necessary to continue to operate its business
and service its ongoing debt obligations; the uncertainty of
success in developing new products or products currently in
Alphatec Spine’s pipeline, including the products discussed in this
press release; the uncertainties in the Company’s ability to
execute upon its strategic operating plan to outsource
manufacturing and distribution; the uncertainties regarding the
ability to successfully license or acquire new products, and the
commercial success of such products; failure to achieve acceptance
of Alphatec Spine’s products by the surgeon community, including
Battalion, Neocore, Arsenal Deformity and Arsenal CBX; failure to
successfully implement outsourcing, streamlining and lean
activities to create anticipated savings; failure to obtain FDA
clearance or approval or international regulatory approvals for new
products, including the products discussed in this press release,
or unexpected or prolonged delays in the process; continuation of
favorable third party payor 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.
Please refer to the risks detailed from time to time in Alphatec
Spine’s SEC reports, including its Annual Report Form 10-K for the
year ended December 31, 2015, filed on March 15, 2016 with the
Securities and Exchange Commission, as well as other filings on
Form 10-Q and periodic filings on Form 8-K. Alphatec Spine
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. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(in thousands, except
per share amounts - unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
47,003 |
|
|
$ |
53,627 |
|
|
|
$ |
185,279 |
|
|
$ |
206,980 |
|
|
|
Cost of revenues |
|
15,508 |
|
|
|
15,529 |
|
|
|
|
63,742 |
|
|
|
61,834 |
|
|
|
Amortization of
acquired intangible assets |
|
360 |
|
|
|
408 |
|
|
|
|
1,453 |
|
|
|
1,736 |
|
|
|
Total cost of revenues |
|
15,868 |
|
|
|
15,937 |
|
|
|
|
65,195 |
|
|
|
63,570 |
|
|
|
Gross profit |
|
31,135 |
|
|
|
37,690 |
|
|
|
|
120,084 |
|
|
|
143,410 |
|
|
|
|
|
66.2 |
% |
|
|
70.3 |
% |
|
|
|
64.8 |
% |
|
|
69.3 |
% |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
|
8,106 |
|
|
|
3,661 |
|
|
|
|
17,767 |
|
|
|
16,799 |
|
|
|
In-process research and
development |
|
- |
|
|
|
- |
|
|
|
|
274 |
|
|
|
527 |
|
|
|
Sales and marketing |
|
18,883 |
|
|
|
20,634 |
|
|
|
|
70,856 |
|
|
|
77,179 |
|
|
|
General and administrative |
|
8,394 |
|
|
|
9,705 |
|
|
|
|
34,867 |
|
|
|
43,381 |
|
|
|
Amortization of acquired intangible
assets |
|
533 |
|
|
|
717 |
|
|
|
|
2,400 |
|
|
|
2,974 |
|
|
|
Impairment of goodwill and
intangibles |
|
- |
|
|
|
- |
|
|
|
|
165,171 |
|
|
|
- |
|
|
|
Restructuring expenses |
|
1,025 |
|
|
|
- |
|
|
|
|
1,188 |
|
|
|
706 |
|
|
|
Total operating expenses |
|
36,941 |
|
|
|
34,717 |
|
|
|
|
292,523 |
|
|
|
141,566 |
|
|
|
Operating (loss)
income |
|
(5,806 |
) |
|
|
2,973 |
|
|
|
|
(172,439 |
) |
|
|
1,844 |
|
|
|
Interest and other income
(expense), net |
|
(2,854 |
) |
|
|
(3,107 |
) |
|
|
|
(5,556 |
) |
|
|
(13,639 |
) |
|
|
Pretax net loss |
|
(8,660 |
) |
|
|
(134 |
) |
|
|
|
(177,995 |
) |
|
|
(11,795 |
) |
|
|
Income tax provision |
|
1,243 |
|
|
|
139 |
|
|
|
|
681 |
|
|
|
1,087 |
|
|
|
Net loss |
$ |
(9,903 |
) |
|
$ |
(273 |
) |
|
|
$ |
(178,676 |
) |
|
$ |
(12,882 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
share |
$ |
(0.10 |
) |
|
$ |
(0.00 |
) |
|
|
$ |
(1.79 |
) |
|
$ |
(0.13 |
) |
|
|
Diluted net loss per
share |
$ |
(0.10 |
) |
|
$ |
(0.03 |
) |
|
|
$ |
(1.79 |
) |
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
- basic |
|
100,511 |
|
|
|
98,261 |
|
|
|
|
99,574 |
|
|
|
97,347 |
|
|
|
Weighted-average shares
- diluted |
|
100,511 |
|
|
|
98,477 |
|
|
|
|
99,574 |
|
|
|
97,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALPHATEC HOLDINGS, INC. |
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
(in thousands -
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
11,229 |
|
|
$ |
19,735 |
|
|
|
Restricted
Cash |
|
2,350 |
|
|
|
4,400 |
|
|
|
Accounts
receivable, net |
|
38,319 |
|
|
|
40,440 |
|
|
|
Inventories,
net |
|
44,908 |
|
|
|
41,747 |
|
|
|
Prepaid expenses
and other current assets |
|
5,052 |
|
|
|
5,466 |
|
|
|
Deferred income
tax assets |
|
- |
|
|
|
1,324 |
|
|
|
Total current
assets |
|
101,858 |
|
|
|
113,112 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
21,945 |
|
|
|
26,040 |
|
|
|
Goodwill |
|
- |
|
|
|
171,333 |
|
|
|
Intangibles, net |
|
21,616 |
|
|
|
30,259 |
|
|
|
Other assets |
|
1,285 |
|
|
|
4,179 |
|
|
|
Total assets |
$ |
146,704 |
|
|
$ |
344,923 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
14,169 |
|
|
$ |
10,130 |
|
|
|
Accrued
expenses |
|
29,791 |
|
|
|
35,393 |
|
|
|
Deferred
revenue |
|
648 |
|
|
|
1,300 |
|
|
|
Common stock
warrant liabilities |
|
687 |
|
|
|
8,702 |
|
|
|
Current portion
of long-term debt |
|
80,105 |
|
|
|
8,076 |
|
|
|
Total current
liabilities |
|
125,400 |
|
|
|
63,601 |
|
|
|
|
|
|
|
|
|
Total long term
liabilities |
|
34,277 |
|
|
|
108,765 |
|
|
|
Redeemable
preferred stock |
|
23,603 |
|
|
|
23,603 |
|
|
|
Stockholders'
(deficit) equity |
|
(36,576 |
) |
|
|
148,954 |
|
|
|
Total liabilities and
stockholders' (deficit) equity |
$ |
146,704 |
|
|
$ |
344,923 |
|
|
|
|
|
|
|
|
ALPHATEC HOLDINGS, INC. |
|
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
|
(in thousands, except per share amounts -
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss), as reported |
$ |
(5,806 |
) |
|
$ |
2,973 |
|
|
|
$ |
(172,439 |
) |
|
$ |
1,844 |
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
3,907 |
|
|
|
2,913 |
|
|
|
|
12,974 |
|
|
|
12,160 |
|
|
|
Amortization of intangible
assets |
|
132 |
|
|
|
341 |
|
|
|
|
2,204 |
|
|
|
1,515 |
|
|
|
Amortization of acquired intangible
assets |
|
893 |
|
|
|
1,125 |
|
|
|
|
3,853 |
|
|
|
4,710 |
|
|
|
Total EBITDA |
|
(874 |
) |
|
|
7,352 |
|
|
|
|
(153,407 |
) |
|
|
20,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back significant
items: |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
203 |
|
|
|
913 |
|
|
|
|
2,643 |
|
|
|
4,554 |
|
|
|
In-process research and
development |
|
- |
|
|
|
- |
|
|
|
|
274 |
|
|
|
527 |
|
|
|
Goodwill and intangible
impairment |
|
- |
|
|
|
- |
|
|
|
|
165,171 |
|
|
|
- |
|
|
|
Litigation expenses and trial
costs |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
4,779 |
|
|
|
Stock price guarantee |
|
4,877 |
|
|
|
- |
|
|
|
|
4,877 |
|
|
|
- |
|
|
|
Restructuring and other
charges |
|
1,025 |
|
|
|
- |
|
|
|
|
1,188 |
|
|
|
742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted for
significant items |
$ |
5,231 |
|
|
$ |
8,265 |
|
|
|
$ |
20,745 |
|
|
$ |
30,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss, as
reported |
$ |
(9,903 |
) |
|
$ |
(273 |
) |
|
|
$ |
(178,676 |
) |
|
$ |
(12,882 |
) |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquired intangible
assets |
|
893 |
|
|
|
1,125 |
|
|
|
|
3,853 |
|
|
|
4,710 |
|
|
|
Amortization of intangible
assets |
|
132 |
|
|
|
341 |
|
|
|
|
2,204 |
|
|
|
1,515 |
|
|
|
In-process research and
development |
|
- |
|
|
|
- |
|
|
|
|
274 |
|
|
|
527 |
|
|
|
Goodwill and intangible
impairment |
|
- |
|
|
|
- |
|
|
|
|
165,171 |
|
|
|
- |
|
|
|
Litigation settlement and trial
costs |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
4,779 |
|
|
|
Restructuring and other
charges |
|
1,025 |
|
|
|
- |
|
|
|
|
1,188 |
|
|
|
742 |
|
|
|
Fair value adjustments to stock
warrants and guarantees |
|
4,877 |
|
|
|
(2,870 |
) |
|
|
|
(3,138 |
) |
|
|
(2,578 |
) |
|
|
|
|
|
|
|
|
|
|
. |
|
|
|
|
Net loss, as adjusted
for significant items |
$ |
(2,976 |
) |
|
$ |
(1,677 |
) |
|
|
$ |
(9,124 |
) |
|
$ |
(3,187 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share - basic |
$ |
(0.10 |
) |
|
$ |
(0.00 |
) |
|
|
$ |
(1.79 |
) |
|
$ |
(0.13 |
) |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Amortization of acquired intangible
assets |
|
0.01 |
|
|
|
0.01 |
|
|
|
|
0.04 |
|
|
|
0.05 |
|
|
|
Amortization of intangible
assets |
|
0.00 |
|
|
|
0.00 |
|
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
In-process research and
development |
|
- |
|
|
|
- |
|
|
|
|
0.00 |
|
|
|
0.01 |
|
|
|
Goodwill and intangible
impairment |
|
- |
|
|
|
- |
|
|
|
|
1.66 |
|
|
|
- |
|
|
|
Litigation settlement and trial
costs |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
0.05 |
|
|
|
Restructuring and other
charges |
|
0.01 |
|
|
|
- |
|
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
Warrant fair value adjustment |
|
0.05 |
|
|
|
(0.03 |
) |
|
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share - basic |
|
|
|
|
|
|
|
|
|
as adjusted for
significant items |
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
|
$ |
(0.09 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
- basic |
|
100,511 |
|
|
|
98,261 |
|
|
|
|
99,574 |
|
|
|
97,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALPHATEC HOLDINGS, INC. |
|
|
|
RECONCILIATION OF GEOGRAPHIC SEGMENT REVENUES
AND GROSS PROFIT |
|
|
(in thousands, except percentages -
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
% Change |
|
|
|
December 30, |
|
% Change |
|
% Change |
|
Foreign |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
As Reported |
|
Operations |
|
Currency |
|
|
|
|
|
|
|
|
Revenues by geographic
segment |
|
|
|
|
|
U.S. |
$ |
29,479 |
|
|
$ |
35,684 |
|
|
|
-17.4 |
% |
|
|
-17.4 |
% |
|
|
0.0 |
% |
|
|
International |
|
17,524 |
|
|
|
17,943 |
|
|
|
-2.3 |
% |
|
|
6.3 |
% |
|
|
-8.6 |
% |
|
|
Total revenues |
$ |
47,003 |
|
|
$ |
53,627 |
|
|
|
-12.4 |
% |
|
|
-9.4 |
% |
|
|
-3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit by
geographic segment |
|
|
|
|
|
U.S. |
$ |
20,933 |
|
|
$ |
26,358 |
|
|
|
International |
|
10,202 |
|
|
|
11,332 |
|
|
|
Total gross profit |
$ |
31,135 |
|
|
$ |
37,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin by
geographic segment |
|
|
|
|
|
U.S. |
|
71.0 |
% |
|
|
73.9 |
% |
|
|
International |
|
58.2 |
% |
|
|
63.2 |
% |
|
|
Total gross profit
margin |
|
66.2 |
% |
|
|
70.3 |
% |
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
% Change |
|
|
|
December 30, |
|
% Change |
|
% Change |
|
Foreign |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
As Reported |
|
Operations |
|
Currency |
|
|
|
|
|
|
|
|
Revenues by geographic
segment |
|
|
|
|
|
U.S. |
$ |
114,578 |
|
|
$ |
137,060 |
|
|
|
-16.4 |
% |
|
|
-16.4 |
% |
|
|
0.0 |
% |
|
|
International |
|
70,701 |
|
|
|
69,920 |
|
|
|
1.1 |
% |
|
|
16.9 |
% |
|
|
-15.8 |
% |
|
|
Total revenues |
$ |
185,279 |
|
|
$ |
206,980 |
|
|
|
-10.5 |
% |
|
|
-5.2 |
% |
|
|
-5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit by
geographic segment |
|
|
|
|
|
U.S. |
$ |
77,538 |
|
|
$ |
100,568 |
|
|
|
International |
|
42,546 |
|
|
|
42,842 |
|
|
|
Total gross profit |
$ |
120,084 |
|
|
$ |
143,410 |
|
|
|
|
|
|
|
|
|
Gross profit margin by
geographic segment |
|
|
|
|
|
U.S. |
|
67.7 |
% |
|
|
73.4 |
% |
|
|
International |
|
60.2 |
% |
|
|
61.3 |
% |
|
|
Total gross profit
margin |
|
64.8 |
% |
|
|
69.3 |
% |
|
|
|
Footnotes: |
|
|
1)
The impact from foreign currency represents the percentage change
in 2015 revenues due to the change in foreign |
|
|
exchange rates for the
periods presented. |
|
|
|
|
CONTACT: Investor/Media Contact:
Christine Zedelmayer
Investor Relations
Alphatec Spine, Inc.
(760) 494-6610
czedelmayer@alphatecspine.com
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