Business
ATEC Reports First Quarter 2020 Financial Results and Recent Corporate Highlights
• New Product Adoption Drives U.S. Revenue Growth of 27%• Additional $35 Million Capital Commitment Provides Runway for Continued Execution CARLSBAD, Calif.,
About this update from Alphatec Holdings, Inc.
[{"type":"text","content":"• New Product Adoption Drives U.S. Revenue Growth of 27%• Additional $35 Million Capital Commitment Provides Runway for Continued Execution \n CARLSBAD, Calif., May 11, 2020 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc. (“ATEC” or the “Company”) (Nasdaq: ATEC), a provider of innovative spine surgery solutions dedicated to revolutionizing the approach to spine surgery, today announced financial results for the quarter ended March 31, 2020, and recent corporate highlights. First Quarter 2020 Financial Results Total revenue of $30.1 million; U.S. revenue of $29.1 million, up 27% year over year;U.S. gross margin of 72.1%; andCash and cash equivalents of $27.5 million as of March 31, 2020; pro forma cash of $47.5 million, including recent draw against credit facility. Recent Corporate Highlights Increased contribution from new products to 56% of Q1 2020 U.S. revenue up from 22% in Q1 2019 and 48% in Q4 2019;Grew Q1 2020 revenue per case by 15% over Q1 2019;Continued progress transforming the sales network with Q1 2020 U.S. revenue growth from strategic distribution up 34% compared to Q1 2019 and significant sales talent additions in key geographies;Completed three FDA 510K new product regulatory submissions; andSecured an additional $35 million capital commitment from Squadron Capital. “During the first quarter, we saw continued solid business momentum,” said Pat Miles, Chairman and Chief Executive Officer. “While that momentum was interrupted by circumstances outside of our control, we will navigate through the current challenges with the same focus and execution that has driven our success to date. We are bringing clinical distinction to a market that yearns for it by fulfilling our commitment to launch 8 to 10 new products this year and continuing to expand our sales network with savvy distributors who know that the future of spine innovation is at ATEC. This company has faced and overcome a lot of adversity over the last few years. We are confident that we have the proven team and resilient culture to not only weather this crisis, but to emerge as the leader in spine innovation.” Comparison of Selected GAAP and Non-GAAP Financial Results Revenue from U.S. products for the first quarter 2020 was $29.1 million, up 27% compared to $23.0 million in the first quarter 2019. Revenue growth was generated by new products and the strategic d...