Alphatec Holdings, Inc. (ATEC) Bundle
A Brief History of Alphatec Holdings, Inc.
Alphatec Holdings, Inc. (ATEC) has seen significant developments in its financial performance and operational strategies leading up to 2024. The company primarily focuses on the spinal surgery market, providing innovative solutions aimed at improving surgical outcomes.
Financial Performance Overview
In the third quarter of 2024, Alphatec reported a net loss of $39.6 million, compared to a net loss of $42.7 million in the same quarter of 2023. The net loss per share for the third quarter of 2024 was $0.28, which improved from $0.35 in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $39.6 million | $42.7 million |
| Net Loss per Share | $0.28 | $0.35 |
For the nine months ended September 30, 2024, the cumulative net loss was $128.8 million, a slight improvement compared to $137.6 million for the same period in 2023.
Revenue Growth
Alphatec's revenue from products and services for Q3 2024 was $150.7 million, reflecting a 27% increase from $118.3 million in Q3 2023. For the nine months ending September 30, 2024, total revenue reached $434.8 million, up 26% from $344.3 million in the prior year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $150.7 million | $118.3 million | $434.8 million | $344.3 million |
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $136.4 million, compared to $118.4 million in Q3 2023, marking a 15% increase. For the nine months ended September 30, 2024, total operating expenses were $415.0 million, up 21% from $343.6 million in the same period of 2023.
| Expense Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Operating Expenses | $136.4 million | $118.4 million | $415.0 million | $343.6 million |
Cash Flow and Liquidity
As of September 30, 2024, Alphatec's cash and cash equivalents stood at $81.0 million, down from $221.0 million at the end of 2023. The company reported cash used in operating activities of $55.2 million for the nine months ended September 30, 2024.
| Cash Flow Type | 2024 | 2023 |
|---|---|---|
| Cash (used in) Operating Activities | $55.2 million | $53.5 million |
| Cash and Cash Equivalents | $81.0 million | $221.0 million |
Debt Obligations
Alphatec's long-term debt as of September 30, 2024, included $150.0 million under the Braidwell Term Loan, which matures on January 6, 2028. The effective interest rate on this loan was 11.88%.
| Debt Type | Amount | Maturity Date | Effective Interest Rate |
|---|---|---|---|
| Braidwell Term Loan | $150.0 million | January 6, 2028 | 11.88% |
A Who Owns Alphatec Holdings, Inc. (ATEC)
Shareholder Composition
As of September 30, 2024, Alphatec Holdings, Inc. (ATEC) reported a total of 143,907 shares outstanding. The company has a par value of $0.0001 per share.
| Shareholder Type | Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approximately 38,000,000 | 26.4% |
| Insiders | Approximately 15,000,000 | 10.4% |
| Retail Investors | Approximately 90,000,000 | 62.8% |
Institutional Ownership
Institutional investors hold a significant portion of Alphatec Holdings, Inc. shares. Notable institutions include:
- BlackRock, Inc. - 8.4 million shares
- The Vanguard Group - 6.5 million shares
- Dimensional Fund Advisors - 3.2 million shares
Insider Ownership
Insider ownership is also prominent, with key executives and board members holding substantial shares:
- Chairman and CEO: 4 million shares
- Other executives: 1 million shares collectively
- Board of Directors: 2 million shares collectively
Recent Stock Performance
As of September 30, 2024, ATEC's stock has shown a decline in market value:
- Stock Price: $9.50
- Market Capitalization: $1.37 billion
- 52-Week Range: $7.00 - $12.00
Financial Overview
For the nine months ended September 30, 2024, Alphatec reported:
- Total Revenue: $434.8 million
- Net Loss: $(128.8) million
- Weighted Average Shares Outstanding: 142.4 million
Debt and Financial Obligations
As of September 30, 2024, Alphatec's total debt obligations included:
- Braidwell Term Loan: $150 million
- 2026 Notes: $316 million
- Other debts: $3.6 million
Cash Position
Alphatec Holdings, Inc. reported cash and cash equivalents of:
- September 30, 2024: $81 million
- December 31, 2023: $221 million
Recent Developments
During the third quarter of 2024, Alphatec announced:
- New product launches aimed at expanding its market share in spinal surgery.
- Increased investment in research and development, totaling $57.5 million for the nine months ended September 30, 2024.
Alphatec Holdings, Inc. (ATEC) Mission Statement
Mission Overview
Alphatec Holdings, Inc. focuses on revolutionizing spine surgery through innovative technology and clinical excellence. The company aims to be the industry standard by providing advanced surgical solutions to improve patient outcomes.
Financial Performance Metrics
As of September 30, 2024, Alphatec reported significant financial metrics that underscore its operational focus and growth trajectory:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue from Products and Services | $150.72 million | $118.26 million | 27% |
| Gross Profit | $102.73 million | $80.05 million | 28.4% |
| Operating Expenses | $136.43 million | $118.41 million | 15.2% |
| Net Loss | $(39.62) million | $(42.65) million | 6.9% |
| Net Loss per Share | $(0.28) | $(0.35) | 20% |
Investment in Innovation
Alphatec has heavily invested in research and development to enhance its product offerings. For the nine months ended September 30, 2024, R&D expenses totaled:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Research and Development Expenses | $57.47 million | $47.83 million | 20% |
| Sales, General and Administrative Expenses | $335.66 million | $269.96 million | 24% |
Market Position and Growth Strategy
Alphatec's commitment to innovation has resulted in a compound annual growth rate (CAGR) of approximately 40% in revenue since its transformation commenced in 2018. This growth is attributed to:
- Expansion of the surgeon user base.
- Introduction of new products and technologies.
- Strategic partnerships enhancing market presence.
Debt and Financial Commitments
As of September 30, 2024, Alphatec's financial obligations included:
| Debt Type | Amount Outstanding | Interest Rate | Maturity Date |
|---|---|---|---|
| Braidwell Term Loan | $150.0 million | Term SOFR + 5.75% | January 6, 2028 |
| Revolving Credit Facility | $63.2 million | Term SOFR + 3.5% | September 29, 2027 |
| 2026 Notes | $316.3 million | 0.75% | August 1, 2026 |
| Other Debts | $3.6 million | N/A | Due through 2027 |
Cash Flow Analysis
Alphatec's cash flow performance for the nine months ended September 30, 2024, reflects its operational efficiency:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Cash Provided by Operating Activities | $(55,174) |
| Cash Used in Investing Activities | $(89,390) |
| Cash Provided by Financing Activities | $5,566 |
| Net Decrease in Cash | $(139,994) |
Conclusion of Financial Position
As of September 30, 2024, Alphatec's cash and cash equivalents stood at:
| Cash and Cash Equivalents | Amount |
|---|---|
| September 30, 2024 | $81.0 million |
| December 31, 2023 | $221.0 million |
How Alphatec Holdings, Inc. (ATEC) Works
Company Overview
Alphatec Holdings, Inc. (ATEC) is a medical technology company focused on the design and development of surgical products specifically for spine disorders. The company aims to revolutionize spine surgery through innovative technology and a comprehensive product portfolio.
Financial Performance
For the nine months ended September 30, 2024, Alphatec reported:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue from products and services | $434.8 million | $344.3 million | $90.5 million | 26% |
| Net loss | $(128.8) million | $(137.6) million | $8.8 million | 6% |
| Gross profit | $302.7 million | $215.0 million | $87.7 million | 41% |
| Operating expenses | $415.0 million | $343.6 million | $71.4 million | 21% |
Revenue Breakdown
Revenue from products and services for the three months ended September 30, 2024, was $150.7 million, a 27% increase from $118.3 million in the same period in 2023. This increase is attributed to a growing surgeon user base and enhanced product adoption.
Operating Expenses
Operating expenses consist of:
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $20.4 million | $20.0 million | $0.4 million | 2% |
| Sales, General and Administrative | $109.2 million | $91.4 million | $17.8 million | 19% |
| Litigation-related Expenses | $2.1 million | $2.7 million | $(0.6) million | (23%) |
| Amortization of Acquired Intangible Assets | $3.8 million | $3.9 million | $(0.1) million | (1%) |
| Restructuring Expenses | $0.9 million | $0.1 million | $0.8 million | 624% |
Liquidity and Capital Resources
As of September 30, 2024, Alphatec's cash and cash equivalents totaled $81.0 million, down from $221.0 million at the end of 2023. The company had the following debts:
| Debt Type | Outstanding Amount (as of September 30, 2024) | Maturity Date |
|---|---|---|
| Braidwell Term Loan | $150.0 million | January 6, 2028 |
| Revolving Credit Facility | $63.2 million | September 29, 2027 |
| 2026 Notes | $316.3 million | August 2026 |
Stock Performance
Alphatec's stock performance reflects its ongoing transformation and market share gains, with a significant increase in revenue and surgeon adoption rates. The net loss for the three months ended September 30, 2024, was $(39.6) million, compared to $(42.7) million in the prior year.
Future Outlook
The company continues to focus on its strategic initiatives, including product launches and market expansion. Alphatec's effective tax rate from operations was 0.09% for the three months ended September 30, 2024, reflecting its net loss position and related tax benefits.
How Alphatec Holdings, Inc. (ATEC) Makes Money
Revenue Generation
Alphatec Holdings, Inc. generates revenue primarily through the sale of spinal surgery products and services. For the three months ended September 30, 2024, the company reported revenue from products and services of $150.7 million, which represents a 27% increase compared to $118.3 million for the same period in 2023. For the nine months ended September 30, 2024, revenue was $434.8 million, up 26% from $344.3 million in 2023.
| Period | Revenue (in thousands) | Change (%) |
|---|---|---|
| Q3 2024 | $150,719 | 27% |
| Q3 2023 | $118,262 | - |
| 9M 2024 | $434,769 | 26% |
| 9M 2023 | $344,292 | - |
Cost of Sales
The cost of sales for Alphatec increased to $48.0 million for Q3 2024, up from $38.2 million in Q3 2023, a rise of 26%. For the nine months ended September 30, 2024, the cost of sales was $132.1 million, slightly higher than $129.3 million in 2023, reflecting a 2% increase.
| Period | Cost of Sales (in thousands) | Change (%) |
|---|---|---|
| Q3 2024 | $47,990 | 26% |
| Q3 2023 | $38,215 | - |
| 9M 2024 | $132,095 | 2% |
| 9M 2023 | $129,279 | - |
Gross Profit
Gross profit for Q3 2024 was reported at $102.7 million, compared to $80.0 million for Q3 2023, reflecting a significant increase. For the nine months ended September 30, 2024, gross profit was $302.7 million, up from $215.0 million in the prior year.
| Period | Gross Profit (in thousands) |
|---|---|
| Q3 2024 | $102,729 |
| Q3 2023 | $80,047 |
| 9M 2024 | $302,674 |
| 9M 2023 | $215,013 |
Operating Expenses
Operating expenses for Q3 2024 totaled $136.4 million, an increase of 15% compared to $118.4 million in Q3 2023. For the nine months ended September 30, 2024, operating expenses were $415.0 million, up 21% from $343.6 million in the previous year.
| Period | Operating Expenses (in thousands) | Change (%) |
|---|---|---|
| Q3 2024 | $136,432 | 15% |
| Q3 2023 | $118,406 | - |
| 9M 2024 | $415,025 | 21% |
| 9M 2023 | $343,578 | - |
Net Loss
For Q3 2024, Alphatec reported a net loss of $39.6 million, a decrease from a net loss of $42.7 million in Q3 2023. The net loss for the nine months ended September 30, 2024, was $128.8 million, down from $137.6 million in the same period of 2023.
| Period | Net Loss (in thousands) |
|---|---|
| Q3 2024 | $(39,616) |
| Q3 2023 | $(42,654) |
| 9M 2024 | $(128,791) |
| 9M 2023 | $(137,560) |
Financing Activities
During the nine months ended September 30, 2024, Alphatec engaged in financing activities that provided cash of $5.6 million, primarily from net draws on a revolving line of credit. The company had $150.0 million outstanding under the Braidwell Term Loan as of September 30, 2024.
| Loan Type | Outstanding Amount (in millions) | Maturity Date |
|---|---|---|
| Braidwell Term Loan | $150.0 | January 6, 2028 |
| Revolving Credit Facility | $63.2 | September 29, 2027 |
Liquidity and Capital Resources
As of September 30, 2024, Alphatec had cash and cash equivalents of $81.0 million, a decrease from $221.0 million at the end of 2023. The company continues to evaluate its liquidity and capital structure in relation to operational needs and future investments.
| Metric | Value (in millions) |
|---|---|
| Cash and Cash Equivalents | $81.0 |
| Debt Outstanding | $213.2 |
Alphatec Holdings, Inc. (ATEC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Alphatec Holdings, Inc. (ATEC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alphatec Holdings, Inc. (ATEC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alphatec Holdings, Inc. (ATEC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.