Alphatec Holdings reported first quarter financial results.
Here are five things to know:
1. First quarter revenues dropped 19.8 percent compared with the same period last year. The revenues reached $23.4 million, with the decrease due to financial and operational challenges over the past year. The company sold its international business in 2016 to sustain operations, which reduced the volume from several distributors and surgeons.
Alphatec also exited the stocking distributor and terminated its distributor relationships that didn't represent the company's long-term business and rebranding strategy.
2. Gross profit for the first quarter was $16 million and the gross margin was 68.3 percent. The gross margins declined from 80.6 percent last year due to increased supply cost after reducing sourcing and manufacturing volumes. The company also increased inventory kit write-offs due to distributor turnover.
3. Operating expenses for the first quarter decreased by $7.8 million to $20.2 million, reflecting the impact of cost reduction initiatives including workforce reduction.
4. The loss from continuing operations was $5.4 million for the first quarter. Adjusted EBITDA was $0.5 million.
5. Alphtec reported current debt including $34.2 million in term debt and $10.3 million in outstanding debt under the company's revolving credit facility. The company has $25.5 million cash and cash equivalents.
"Our strategy for the company centers on combining our broad product portfolio with new leadership, dedicated distribution partners and a high performance culture in order to significantly re-position the Alphatec brand to customers, investors, employees and business partners," said Alphatec CEO Terry Rich.