ATEC Reports Fourth Quarter and Full Year 2021 Financial Results and Recent Corporate Highlights
Alphatec Holdings, Inc. (ATEC) reported a 68% revenue growth for 2021, with total revenue reaching $243.2 million and Q4 revenue at $74 million. Organic growth in the U.S. was 50%, with a 3-year CAGR of 36%. The GAAP gross margin stood at 64.9%, while operating expenses totaled $285.8 million. ATEC expects 2022 revenue to approximate $305 million, marking a 25% increase. EOS imaging-related revenue contributed $12.8 million. The company trained over 400 surgeons in 2021, enhancing its market presence.
- Revenue growth of 68% for full year 2021.
- Expecting 25% revenue growth in 2022, targeting $305 million.
- Generated $12.8 million in EOS imaging-related revenue.
- GAAP operating loss of $128.1 million for the year.
- Operating expenses increased to $285.8 million.
-
Revenue growth of
68% for full year 2021, including organic revenue growth of50% -
U.S. organic revenue 3-year CAGR of36% -
Fourth quarter EOS imaging-related revenue of
$12.8 million
Fourth Quarter and Full Year 2021 Financial Results
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Quarter Ended
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Year Ended
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Total revenue |
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GAAP gross margin |
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Non-GAAP gross margin |
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Operating expenses |
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Non-GAAP operating expenses |
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GAAP operating loss |
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Non-GAAP adjusted EBITDA |
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Ending cash balance |
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Recent Highlights
-
Accelerated adoption of Prone Trans-Psoas (PTP) Technique, with ATEC lateral procedures delivering over
40% of Q4 revenue growth; - Expanded momentum of the recently launched ALIF System advancing anterior column prowess;
-
Trained over 400 surgeons in 2021, contributing to a
23% increase in surgeon users in Q4 compared to prior year; -
Generated
in EOS-related revenue, with significant momentum in sales, product development and data management since close of transaction.$12.8 million
“2021 marks the highest revenue on record for ATEC and another year of sector-leading growth,” remarked
Financial Outlook for the Full Year 2022
The Company continues to expect total revenue for the fiscal year ended
Investor 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 at investors.alphatecspine.com for twelve months. In addition, a dial-in replay will be available beginning two hours after the webcast’s completion until
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
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except per share amounts) |
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Three Months Ended |
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Year Ended |
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2021 |
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2020 |
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2021 |
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2020 |
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|
unaudited |
|
|
|
|
||||||||||
Revenue: | ||||||||||||||||
Revenue from products and services | $ |
73,922 |
|
$ |
43,123 |
|
$ |
242,258 |
|
$ |
141,079 |
|
||||
Revenue from international supply agreement |
|
40 |
|
|
831 |
|
|
954 |
|
|
3,782 |
|
||||
Total revenue |
|
73,962 |
|
|
43,954 |
|
|
243,212 |
|
|
144,861 |
|
||||
Cost of sales |
|
28,737 |
|
|
12,563 |
|
|
85,450 |
|
|
42,360 |
|
||||
Gross profit |
|
45,225 |
|
|
31,391 |
|
|
157,762 |
|
|
102,501 |
|
||||
Operating expenses: | ||||||||||||||||
Research and development |
|
8,984 |
|
|
5,355 |
|
|
32,015 |
|
|
18,745 |
|
||||
Sales, general and administrative |
|
66,692 |
|
|
39,725 |
|
|
229,271 |
|
|
129,156 |
|
||||
Litigation-related expenses |
|
5,412 |
|
|
3,045 |
|
|
11,123 |
|
|
8,552 |
|
||||
Amortization of acquired intangible assets |
|
1,956 |
|
|
172 |
|
|
5,348 |
|
|
688 |
|
||||
Transaction-related expenses |
|
209 |
|
|
130 |
|
|
6,365 |
|
|
4,223 |
|
||||
Restructuring expenses |
|
110 |
|
|
— |
|
|
1,697 |
|
|
— |
|
||||
Total operating expenses |
|
83,363 |
|
|
48,427 |
|
|
285,819 |
|
|
161,364 |
|
||||
Operating loss |
|
(38,138 |
) |
|
(17,036 |
) |
|
(128,057 |
) |
|
(58,863 |
) |
||||
Interest and other expense, net: | ||||||||||||||||
Interest expense, net |
|
(1,504 |
) |
|
(3,700 |
) |
|
(7,108 |
) |
|
(12,374 |
) |
||||
Loss on debt extinguishment, net |
|
— |
|
|
(6,057 |
) |
|
(7,434 |
) |
|
(7,612 |
) |
||||
Other expenses, net |
|
(544 |
) |
|
— |
|
|
(1,563 |
) |
|
— |
|
||||
Total interest and other expenses, net |
|
(2,048 |
) |
|
(9,757 |
) |
|
(16,105 |
) |
|
(19,986 |
) |
||||
Net loss before taxes |
|
(40,186 |
) |
|
(26,793 |
) |
|
(144,162 |
) |
|
(78,849 |
) |
||||
Income tax provision |
|
1 |
|
|
5 |
|
|
164 |
|
|
145 |
|
||||
Net loss | $ |
(40,187 |
) |
$ |
(26,798 |
) |
$ |
(144,326 |
) |
$ |
(78,994 |
) |
||||
Net loss per share, basic and diluted | $ |
(0.40 |
) |
$ |
(0.35 |
) |
$ |
(1.50 |
) |
$ |
(1.18 |
) |
||||
Weighted average shares outstanding, basic and diluted |
|
99,300 |
|
|
77,098 |
|
|
96,197 |
|
|
67,020 |
|
||||
Stock-based compensation included in: | ||||||||||||||||
Cost of revenue | $ |
248 |
|
$ |
138 |
|
$ |
737 |
|
$ |
512 |
|
||||
Research and development |
|
1,454 |
|
|
632 |
|
|
4,056 |
|
|
2,114 |
|
||||
Sales, general and administrative |
|
8,024 |
|
|
4,202 |
|
|
31,657 |
|
|
15,033 |
|
||||
$ |
9,726 |
|
$ |
4,972 |
|
$ |
36,450 |
|
$ |
17,659 |
|
|||||
|
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands) |
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|
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|
|
|
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|
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ASSETS |
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Current assets: | ||||||
Cash and cash equivalents | $ |
187,248 |
$ |
107,765 |
||
Accounts receivable, net |
|
41,893 |
|
23,527 |
||
Inventories |
|
91,703 |
|
46,001 |
||
Prepaid expenses and other current assets |
|
10,313 |
|
5,439 |
||
Withholding tax receivable from Officer |
|
— |
|
1,076 |
||
Current assets of discontinued operations |
|
— |
|
352 |
||
Total current assets |
|
331,157 |
|
184,160 |
||
Property and equipment, net |
|
87,401 |
|
36,670 |
||
Right-of-use asset |
|
25,283 |
|
1,177 |
||
|
39,689 |
|
13,897 |
|||
Intangible assets, net |
|
85,274 |
|
24,720 |
||
Other assets |
|
3,249 |
|
541 |
||
Noncurrent assets of discontinued operations |
|
— |
|
58 |
||
Total assets | $ |
572,053 |
$ |
261,223 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current liabilities: | ||||||
Accounts payable | $ |
25,737 |
$ |
17,599 |
||
Accrued expenses and other current liabilities |
|
55,549 |
|
35,264 |
||
Contract liability |
|
15,255 |
|
— |
||
Short-term debt |
|
342 |
|
4,167 |
||
Current portion of operating lease liability |
|
4,212 |
|
885 |
||
Current liabilities of discontinued operations |
|
— |
|
397 |
||
Total current liabilities |
|
101,095 |
|
58,312 |
||
Total long-term liabilities |
|
367,933 |
|
49,428 |
||
Redeemable preferred stock |
|
23,603 |
|
23,603 |
||
Stockholders' equity |
|
79,422 |
|
129,880 |
||
Total liabilities and stockholders' equity | $ |
572,053 |
$ |
261,223 |
||
|
||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
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(in thousands) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
unaudited | ||||||||||||||||
Gross profit, GAAP | $ |
45,225 |
|
$ |
31,391 |
|
$ |
157,762 |
|
$ |
102,501 |
|
||||
Add: amortization of intangible assets |
|
268 |
|
|
269 |
|
|
1,075 |
|
|
1,075 |
|
||||
Add: stock-based compensation |
|
248 |
|
|
138 |
|
|
737 |
|
|
512 |
|
||||
Add: purchase accounting adjustments on acquisitions |
|
2,083 |
|
|
— |
|
|
6,423 |
|
|
— |
|
||||
Add: excess and obsolete write-down |
|
4,305 |
|
|
1,615 |
|
|
11,147 |
|
|
7,044 |
|
||||
Non-GAAP gross profit | $ |
52,129 |
|
$ |
33,413 |
|
$ |
177,144 |
|
$ |
111,132 |
|
||||
Gross margin, GAAP |
|
61.1 |
% |
|
71.4 |
% |
|
64.9 |
% |
|
70.8 |
% |
||||
Add: amortization of intangible assets |
|
0.4 |
% |
|
0.6 |
% |
|
0.4 |
% |
|
0.7 |
% |
||||
Add: stock-based compensation |
|
0.3 |
% |
|
0.3 |
% |
|
0.3 |
% |
|
0.4 |
% |
||||
Add: purchase accounting adjustments on acquisitions |
|
2.8 |
% |
|
0 |
% |
|
2.6 |
% |
|
0.0 |
% |
||||
Add: excess and obsolete write-down |
|
5.8 |
% |
|
3.7 |
% |
|
4.6 |
% |
|
4.9 |
% |
||||
Non-GAAP gross margin |
|
70.5 |
% |
|
76.0 |
% |
|
72.8 |
% |
|
76.7 |
% |
||||
Three Months Ended |
|
Year Ended |
||||||||||||||
|
|
|
||||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
unaudited | ||||||||||||||||
Operating expenses, GAAP | $ |
83,363 |
|
$ |
48,427 |
|
$ |
285,819 |
|
$ |
161,364 |
|
||||
Adjustments: | ||||||||||||||||
Stock-based compensation |
|
(9,478 |
) |
|
(4,834 |
) |
|
(35,713 |
) |
|
(17,147 |
) |
||||
Litigation-related expenses |
|
(5,412 |
) |
|
(3,045 |
) |
|
(11,123 |
) |
|
(8,552 |
) |
||||
Amortization of intangible assets |
|
(1,956 |
) |
|
(172 |
) |
|
(5,348 |
) |
|
(688 |
) |
||||
Transaction-related expenses |
|
(209 |
) |
|
(130 |
) |
|
(6,365 |
) |
|
(4,223 |
) |
||||
Restructuring expenses |
|
(110 |
) |
|
— |
|
|
(1,697 |
) |
|
— |
|
||||
Non-GAAP operating expenses | $ |
66,198 |
|
$ |
40,246 |
|
$ |
225,573 |
|
$ |
130,754 |
|
||||
Three Months Ended |
|
Year Ended |
||||||||||||||
|
|
|
||||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
unaudited | ||||||||||||||||
Operating loss, GAAP | $ |
(38,138 |
) |
$ |
(17,036 |
) |
$ |
(128,057 |
) |
$ |
(58,863 |
) |
||||
Depreciation |
|
6,544 |
|
|
2,704 |
|
|
20,332 |
|
|
9,186 |
|
||||
Amortization of intangible assets |
|
2,226 |
|
|
441 |
|
|
6,424 |
|
|
1,763 |
|
||||
EBITDA |
|
(29,368 |
) |
|
(13,891 |
) |
|
(101,301 |
) |
|
(47,914 |
) |
||||
Add back significant items: | ||||||||||||||||
Stock-based compensation |
|
9,726 |
|
|
4,972 |
|
|
36,450 |
|
|
17,659 |
|
||||
Purchase accounting adjustments on acquisitions |
|
2,083 |
|
|
— |
|
|
6,423 |
|
|
— |
|
||||
Excess & obsolete write-down |
|
4,305 |
|
|
1,615 |
|
|
11,147 |
|
|
7,044 |
|
||||
Litigation-related expenses |
|
5,412 |
|
|
3,045 |
|
|
11,123 |
|
|
8,552 |
|
||||
Transaction-related expenses |
|
209 |
|
|
130 |
|
|
6,365 |
|
|
4,223 |
|
||||
Restructuring expenses |
|
110 |
|
|
— |
|
|
1,697 |
|
|
— |
|
||||
Adjusted EBITDA | $ |
(7,523 |
) |
$ |
(4,129 |
) |
$ |
(28,096 |
) |
$ |
(10,436 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220301005574/en/
Investor/Media Contact:
Investor Relations
(760) 494-6790
investorrelations@atecspine.com
Company Contact:
Chief Financial Officer
investorrelations@atecspine.com
Source:
FAQ
What were Alphatec's 2021 revenue results?
What is Alphatec's projected revenue for 2022?
How much revenue did Alphatec generate from EOS imaging in Q4 2021?
What were Alphatec's operating expenses for 2021?