Alphatec Holdings, parent company for Alphatec Spine, reported third quarter net revenue at $43 million.
Here are six key notes on the financial report:
1. The company reported standardized U.S. business revenue of $27.4 million, up sequentially from the second quarter of 2015. However, U.S. net revenues for the third quarter were down 21.3 percent compared to the same period last year, reaching $27.4 million.
2. International revenue for the third quarter was down 3.7 percent, reaching $15.6 million.
3. Total operating expenses were $193.4 million, an increase of $158.9 million over the same period last year. The increase is due to non-cash, goodwill and intangible asset impairment charges and restructuring expenses.
4. Alphatec reported a $160.3 net loss in the third quarter, or $1.61 per share. This is up significantly compared to $3 million net loss over the same period last year. The adjusted EBITDA for the third quarter was $5.3 million, or 12.2 percent of revenues.
5. Cash and cash equivalents for the quarter were $10.5 million, up from $8.9 million over the same period last year. The company reported $3.5 million of restricted cash which must be used for future payment obligations associated with the Orthotec settlement.
6. Alphatc expects full year revenue to reach $188.7 million and adjusted EBITDA of approximately $22 million.
"In the third quarter we continued to execute overall corporate transformation and we are very encouraged by the recent progress we've made in our commercial expansion efforts, especially in the U.S.," said CFO Mike O'Neill. "We believe that the efforts we are making there will help provide a path for future growth for us. That said, we recognize that our revenues for the first nine months of 2015 were softer than anticipated. Accordingly we are revising our full-year guidance for revenue and adjusted EBITDA. Looking forward, we view 2015 as a building year where we are laying the foundation for us to evolve and strengthen our position in the global spinal market."
The company reported three strategic pillars as well:
• Go-to-market product portfolio and research and development pipeline
• Transform manufacturing and distribution operations
• Expand global commercial participation