ATEC Reports First Quarter 2022 Financial Results and Increases Full-Year Revenue Guidance
Alphatec Holdings (ATEC) reported 61% revenue growth for Q1 2022, with total revenue reaching $71 million. Organic growth stood at 39%. The company generated over $10 million in EOS imaging revenue, contributing to an improved full-year guidance of $316 million, reflecting a 30% increase year-over-year. Operating expenses were noted at $90 million, leading to a GAAP operating loss of $41 million. ATEC emphasizes its focus on innovative technologies to enhance surgical outcomes and is poised for continued growth, showcasing an optimistic outlook for the future.
- 61% revenue growth in Q1 2022.
- Total revenue expected to reach $316 million for FY 2022, up 30% YoY.
- Organic revenue growth of 39% in Q1.
- EOS imaging revenue exceeded $10 million.
- GAAP operating loss of $41 million in Q1 2022.
- Operating expenses increased to $90 million.
-
Revenue growth of
61% , including organic revenue growth of39% -
EOS imaging revenue of over
$10 million -
Full-year revenue guidance increased to
, reflecting$316 million 30% growth -
Investor Day on
May 25 to detail strategic and financial long-term outlook
First Quarter 2022 Financial Results
|
Quarter Ended |
Total revenue |
|
GAAP gross margin |
|
Non-GAAP gross margin |
|
Operating expenses |
|
Non-GAAP operating expenses |
|
GAAP operating loss |
|
Non-GAAP adjusted EBITDA |
|
Ending cash balance |
|
First Quarter Highlights
-
ATEC lateral procedures, including the Prone Trans-Psoas (PTP) Technique, delivered approximately
40% of revenue growth; -
Grew average revenue per surgery by
11% on strong adoption of procedures with greater complexity; -
Trained over 100 surgeons, contributing to an
18% increase in surgeon users compared to prior year; -
Generated over
in EOS-related revenue with strong order book growth.$10 million
“Momentum accelerated throughout the first quarter, marking a strong start to the new year,” said
Financial Outlook for the Full Year 2022
The Company now expects total revenue for the fiscal year ended
Financial Results Webcast
ATEC will present these results via a live webcast today at
To dial in to the webcast, please register via this link.
A replay of the webcast will remain available through the Investor Relations Section of ATEC’s Corporate Website for twelve months. In addition, a dial-in replay will be available beginning two hours after the webcast’s completion until
Investor Day on
ATEC will host an Investor Day at the Company’s headquarters in
At approximately
To register to attend the Investor Day, either in-person or virtually, visit the Investor Relations Section of the Company’s website.
Non-GAAP Financial Information
To supplement the Company’s financial statements presented in accordance with generally accepted accounting principles in
About
ATEC, through its wholly owned subsidiaries,
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 and growth outlook; planned product launches, introductions, regulatory submissions or clearances; efforts to transform sales and distribution channels; the Company’s ability to compel surgeon adoption; the Company’s future ability to finance its operations and sufficiency of its cash runway; and statements about the potential benefits and synergies of the acquisition of EOS imaging, S.A. 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; the Company’s ability to meet its financial obligations; the impact of the COVID-19 pandemic on the Company and economy; and uncertainties and risks related to the integration of EOS imaging, S.A. 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) |
||||||||
Three Months Ended | ||||||||
2022 |
2021 |
|||||||
unaudited | ||||||||
Revenue: | ||||||||
Revenue from products and services | $ |
70,918 |
|
$ |
43,716 |
|
||
Revenue from international supply agreement |
|
15 |
|
|
405 |
|
||
Total revenue |
|
70,933 |
|
|
44,121 |
|
||
Cost of sales |
|
21,717 |
|
|
12,263 |
|
||
Gross profit |
|
49,216 |
|
|
31,858 |
|
||
Operating expenses: | ||||||||
Research and development |
|
9,722 |
|
|
5,801 |
|
||
Sales, general and administrative |
|
69,471 |
|
|
40,426 |
|
||
Litigation-related expenses |
|
7,532 |
|
|
3,335 |
|
||
Amortization of acquired intangible assets |
|
2,230 |
|
|
172 |
|
||
Transaction-related expenses |
|
120 |
|
|
1,012 |
|
||
Restructuring expenses |
|
1,370 |
|
|
158 |
|
||
Total operating expenses |
|
90,445 |
|
|
50,904 |
|
||
Operating loss |
|
(41,229 |
) |
|
(19,046 |
) |
||
Interest and other expense, net: | ||||||||
Interest expense, net |
|
(1,456 |
) |
|
(1,938 |
) |
||
Other expenses, net |
|
(30 |
) |
|
(1,889 |
) |
||
Total interest and other expenses, net |
|
(1,486 |
) |
|
(3,827 |
) |
||
Net loss before taxes |
|
(42,715 |
) |
|
(22,873 |
) |
||
Income tax provision |
|
129 |
|
|
30 |
|
||
Net loss | $ |
(42,844 |
) |
$ |
(22,903 |
) |
||
Net loss per share, basic and diluted | $ |
(0.43 |
) |
$ |
(0.26 |
) |
||
Weighted average shares outstanding, basic and diluted |
|
99,978 |
|
|
87,223 |
|
||
Stock-based compensation included in: | ||||||||
Cost of revenue | $ |
256 |
|
$ |
95 |
|
||
Research and development |
|
972 |
|
|
498 |
|
||
Sales, general and administrative |
|
8,956 |
|
|
3,881 |
|
||
$ |
10,184 |
|
$ |
4,474 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands) | ||||||
unaudited | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ |
151,812 |
$ |
187,248 |
||
Accounts receivable, net |
|
40,438 |
|
41,893 |
||
Inventories |
|
99,043 |
|
91,703 |
||
Prepaid expenses and other current assets |
|
12,085 |
|
10,313 |
||
Total current assets |
|
303,378 |
|
331,157 |
||
Property and equipment, net |
|
96,185 |
|
87,401 |
||
Right-of-use asset |
|
24,661 |
|
25,283 |
||
|
40,831 |
|
39,689 |
|||
Intangible assets, net |
|
82,090 |
|
85,274 |
||
Other assets |
|
1,544 |
|
3,249 |
||
Total assets | $ |
548,689 |
$ |
572,053 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ |
34,036 |
$ |
25,737 |
||
Accrued expenses and other current liabilities |
|
61,152 |
|
55,549 |
||
Contract liability |
|
14,893 |
|
15,255 |
||
Short-term debt |
|
1,789 |
|
342 |
||
Current portion of operating lease liability |
|
4,034 |
|
4,212 |
||
Total current liabilities |
|
115,904 |
|
101,095 |
||
Total long-term liabilities |
|
367,198 |
|
367,933 |
||
Redeemable preferred stock |
|
23,603 |
|
23,603 |
||
Stockholders' equity |
|
41,984 |
|
79,422 |
||
Total liabilities and stockholders' equity | $ |
548,689 |
$ |
572,053 |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands) |
||||||||
Three Months Ended | ||||||||
2022 |
2021 |
|||||||
unaudited | ||||||||
Gross profit, GAAP | $ |
49,216 |
|
$ |
31,858 |
|
||
Add: amortization of intangible assets |
|
- |
|
|
269 |
|
||
Add: stock-based compensation |
|
256 |
|
|
95 |
|
||
Add: excess and obsolete write-down |
|
1,706 |
|
|
2,096 |
|
||
Non-GAAP gross profit | $ |
51,178 |
|
$ |
34,318 |
|
||
Gross margin, GAAP |
|
69.4 |
% |
|
72.2 |
% |
||
Add: amortization of intangible assets |
|
0.0 |
% |
|
0.6 |
% |
||
Add: stock-based compensation |
|
0.4 |
% |
|
0.2 |
% |
||
Add: excess and obsolete write-down |
|
2.4 |
% |
|
4.8 |
% |
||
Non-GAAP gross margin |
|
72.1 |
% |
|
77.8 |
% |
||
Three Months Ended | ||||||||
2022 |
2021 |
|||||||
unaudited | ||||||||
Operating expenses, GAAP | $ |
90,445 |
|
$ |
50,904 |
|
||
Adjustments: | ||||||||
Stock-based compensation |
|
(9,928 |
) |
|
(4,379 |
) |
||
Litigation-related expenses |
|
(7,532 |
) |
|
(3,335 |
) |
||
Amortization of intangible assets |
|
(2,230 |
) |
|
(172 |
) |
||
Transaction-related expenses |
|
(120 |
) |
|
(1,012 |
) |
||
Restructuring expenses |
|
(1,370 |
) |
|
(158 |
) |
||
Non-GAAP operating expenses | $ |
69,265 |
|
$ |
41,848 |
|
||
Three Months Ended | ||||||||
2022 |
2021 |
|||||||
unaudited | ||||||||
Operating loss, GAAP | $ |
(41,229 |
) |
$ |
(19,046 |
) |
||
Depreciation |
|
7,085 |
|
|
3,409 |
|
||
Amortization of intangible assets |
|
2,230 |
|
|
441 |
|
||
EBITDA |
|
(31,914 |
) |
|
(15,196 |
) |
||
Add back significant items: | ||||||||
Stock-based compensation |
|
10,184 |
|
|
4,474 |
|
||
Excess & obsolete write-down |
|
1,706 |
|
|
2,096 |
|
||
Litigation-related expenses |
|
7,532 |
|
|
3,335 |
|
||
Transaction-related expenses |
|
120 |
|
|
1,012 |
|
||
Restructuring expenses |
|
1,370 |
|
|
158 |
|
||
Adjusted EBITDA | $ |
(11,002 |
) |
$ |
(4,121 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220505005783/en/
Investor/Media Contact:
Investor Relations
(760) 494-6790
investorrelations@atecspine.com
Company Contact:
Chief Financial Officer
investorrelations@atecspine.com
Source:
FAQ
What is Alphatec Holdings' revenue guidance for 2022?
How did Alphatec's revenue perform in the first quarter of 2022?
What were the non-GAAP financial results for Alphatec in Q1 2022?