Alphatec (US:ATEC)2024-10-30 20:54Revenue Growth - Total revenue from products and services increased by $32.5 million, or 27%, for the three months ended September 30, 2024, and by $90.5 million, or 26%, for the nine months ended September 30, 2024, compared to the same periods in 2023[103]. - The increase in product volume is attributed to the growth in the surgeon user base and the expansion of the new product portfolio[103]. - The company has achieved an approximately 40% revenue compound annual growth rate since its transformation commenced in 2018[92]. - The company continues to invest in building its strategic distribution channel to support revenue growth[107]. Expenses - Cost of sales increased by $9.8 million, or 26%, for the three months ended September 30, 2024, and by $2.8 million, or 2%, for the nine months ended September 30, 2024, compared to the same periods in 2023[105]. - Research and development expenses increased by $0.4 million, or 2%, for the three months ended September 30, 2024, and by $9.6 million, or 20%, for the nine months ended September 30, 2024, compared to the same periods in 2023[106]. - Sales, general and administrative expenses rose by $17.8 million, or 19%, for the three months ended September 30, 2024, and by $65.7 million, or 24%, for the nine months ended September 30, 2024, compared to the same periods in 2023[107]. - Litigation-related expenses decreased by $0.6 million, or 23%, for the three months ended September 30, 2024, and by $4.2 million, or 33%, for the nine months ended September 30, 2024, compared to the same periods in 2023[108]. - Amortization of acquired intangible assets increased by $1.1 million, or 10%, during the nine months ended September 30, 2024, compared to the same period in 2023[109]. - Restructuring expenses increased by $0.8 million, or 624%, for the three months ended September 30, 2024, and by $1.5 million, or 459%, for the nine months ended September 30, 2024, compared to the same periods in 2023[110]. Interest and Other Income - Interest expense, net increased by $2.1 million, or 47%, and $5.5 million, or 45%, for the three and nine months ended September 30, 2024, respectively, compared to the same period in 2023, primarily due to an additional $50.0 million drawn on the Braidwell Term Loan and higher interest rates[111]. - Other income, net increased by $0.6 million, or 1,226%, for the three months ended September 30, 2024, but decreased by $2.2 million, or 71%, for the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to foreign currency fluctuations and an employee retention credit received in 2023[112]. Cash Flow and Financing - Cash and cash equivalents decreased to $81.0 million as of September 30, 2024, from $221.0 million as of December 31, 2023[118]. - Cash used in operating activities was $55.2 million for the nine months ended September 30, 2024, primarily related to inventory purchases[118]. - Cash used in investing activities was $89.4 million for the nine months ended September 30, 2024, mainly for the purchase of surgical instruments[119]. - Financing activities provided cash of $5.6 million for the nine months ended September 30, 2024, primarily from net draws on the revolving line of credit[120]. - As of September 30, 2024, the company had $150.0 million outstanding under the Braidwell Term Loan, which matures on January 6, 2028[121]. - As of September 30, 2024, the company had $63.2 million outstanding under the Revolving Credit Facility, maturing on September 29, 2027, or 90 days prior to the final maturity date of any of the 2026 Notes[122]. - The company has an inventory purchase commitment agreement with a remaining minimum purchase commitment of $8.9 million through December 2026[125]. - The company anticipates future capital requirements will depend on revenue growth, development spending, and international expansion efforts[114].