Alphatec Shares Rise After Firm Announces Strong Organic Revenue Growth in Q2

Source: Streetwise Reports   07/12/2021

Alphatec Holdings Inc. shares traded 12% higher after the company reported preliminary Q2/21 financial results that included a larger than 90% increase in YoY organic revenue.

Medical technology company Alphatec Holdings Inc. (ATEC:NASDAQ), which is focused on designing, developing, manufacturing and selling products for surgically treating spine disorders, today announced select preliminary revenue data for Q2/21 ended June 30, 2021.

Alphatec Holdings advised that on a preliminary basis, U.S. organic revenue in Q2/21 is expected to increase to between $55.4 and 56.0 million, representing an increase of 92.1-94.2% compared to Q2/20.

During the same corresponding period, the company indicated that it expects total revenue will increase by 88.2-90.2% to $55.80-56.4 million. The firm noted that each of these preliminary estimates exclude the impact of EOS imaging on operations,

The company stated that as of the end of the quarter on June 30, 2021, it had approximately $74.0 million in cash on its balance sheet and another $40.0 million available if needed on its existing term loan.

The firm noted that it intends to report it full Q2/21 financial results and FY/21 revenue guidance after the close of U.S. markets on August 3, 2021. The company stated that at that time it will incorporate the data from its EOS imaging acquisition into the full-year estimates.

Alphatec Holdings’ Chairman and CEO Pat Miles commented, “Portfolio-wide momentum is driving aggressive U.S. revenue growth and gives us confidence that organic U.S. revenue growth will exceed 50% this year…The spine prowess we are building has clearly begun to deliver, but we are just getting started. The PTP technique is gaining momentum and can not only penetrate, but more importantly, expand the minimally invasive market for spine. Our increasingly competitive portfolio is enabling us to capture more of each procedural opportunity, and we have vast potential to continue to grow ATEC’s U.S. footprint.”

“We also just closed the EOS imaging transaction, which will bring unprecedented clinical information into the O.R. and extend our reach into EOS’ high-caliber account base. ATEC is exceptionally well-positioned to continue to earn surgeon confidence and market share,” Miles added.

The company reiterated that the preliminary unaudited financial results released today are based upon the firm’s present expectations and may be adjusted somewhat after customary quarter-end close financial and procedural reviews.

The firm stated additionally that for FY/21, it expects that U.S. organic revenue growth will exceed 50%.

Alphatec, based in Carlsbad, Calif., which operates primarily through two “wholly owned subsidiaries, Alphatec Spine, Inc., EOS imaging S.A. and SafeOp Surgical, Inc., is a medical device company dedicated to revolutionizing the approach to spine surgery through clinical distinction.”

Alphatec Holdings started the day with a market cap of around $1.4 billion with approximately 97.5 million shares outstanding and a short interest of about 2.2%. ATEC shares opened nearly 14% higher today at $16.11 (+$1.96, +13.85%) over Friday’s $14.15 closing price. The stock has traded today between $15.47 and $16.47 per share and is currently trading at $15.91 (+$1.76, +12.44%).

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