Alphatec (US:ATEC)2022-08-03 16:00Revenue Performance - Total revenue for the three months ended June 30, 2022, was $84.2 million, a 35% increase from $62.2 million in the same period in 2021[153] - Revenue from products and services increased by $22.3 million, or 36%, for the three months ended June 30, 2022, compared to the same period in 2021, with EOS acquisition contributing approximately $5.7 million, or 26%[153] Cost and Expenses - Cost of sales for the three months ended June 30, 2022, was $28.7 million, a 35% increase from $21.2 million in the same period in 2021[155] - Operating expenses for the three months ended June 30, 2022, totaled $91.2 million, a 19% increase from $76.8 million in the same period in 2021[157] - Research and development expenses increased by $2.8 million, or 35%, for the three months ended June 30, 2022, compared to the same period in 2021[157] - Sales, general and administrative expenses rose by $12.0 million, or 20%, for the three months ended June 30, 2022, compared to the same period in 2021[157] - Litigation-related expenses surged by $4.3 million, or 371%, for the three months ended June 30, 2022, compared to the same period in 2021[159] Strategic Initiatives - The company aims to expand its sales network by adding new high-quality independent sales agents and direct sales representatives to reach untapped markets[145] - Future growth is expected to be driven by continued investment in research and development to differentiate solutions and improve spine surgery[144] - The company is focused on integrating new approaches with its Alpha InformatiX™ product platform to enhance surgical outcomes[143] Financial Position - Total interest and other expense, net decreased by 43% to $(1,368) thousand for the three months ended June 30, 2022, compared to $(2,410) thousand for the same period in 2021[161] - Income tax provision increased by 372% to $203 thousand for the three months ended June 30, 2022, compared to $43 thousand for the same period in 2021[162] - Cash and cash equivalents were $107.5 million as of June 30, 2022, down from $187.2 million as of December 31, 2021[164] Cash Flow - Cash used in operating activities was $(52.1) million for the six months ended June 30, 2022, compared to $(35.1) million for the same period in 2021[167] - Cash used in investing activities was $(27.8) million for the six months ended June 30, 2022, primarily for the purchase of surgical instruments[168] - Financing activities provided $0.8 million of cash for the six months ended June 30, 2022, related to proceeds from financed insurance and warrant exercises[169] Debt and Commitments - As of June 30, 2022, the company had $316.3 million outstanding under the 2026 Notes, accruing interest at a rate of 0.75%[170] - The company assumed $5.2 million in other debts with the acquisition of EOS, due in monthly and quarterly installments beginning in 2023[171] - The remaining minimum purchase commitment under the inventory purchase agreement with a third-party supplier was $28.9 million as of June 30, 2022[171] - The company anticipates future capital requirements will depend on revenue growth, development spending, and new product introductions[163]