Alphatec Holdings, Inc. (NASDAQ:ATEC) Q3 2024 Earnings Conference Call October 30, 2024 4:30 PM ET

Company Participants

Pat Miles - Chairman and CEO
Todd Koning - CFO

Conference Call Participants

Brooks O'Neil - Lake Street Capital Markets
Mathew Blackman - Stifel
Matt Miksic - Barclays
Matthew O'Brien - Piper Sandler
Caitlin Cronin - Cannacord
David Saxon - Needham
Sean Lee - H.C. Wainwright
Drew Ranieri - Morgan Stanley

Operator

Good afternoon, everyone. And welcome to the webcast of ATEC’s Third Quarter Financial Results. We would like to remind everyone that participants on the call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with SEC. During this call, you may hear the company refer to non-GAAP or adjusted measures. Reconciliations of non-GAAP measures to US GAAP can be found in the supplemental financial tables included in today’s press release, which identify and quantify all excluded items and provide management’s view of why this information is useful to investors.

Leading today’s call will be ATEC’s Chairman and CEO, Pat Miles; and CFO, Todd Koning. And now, I will turn the call over to Pat Miles.

Pat Miles

Thank you, Kathleen. So really a great Q3. So super excited about what's going on here. We've outgrown everyone in the spine business again by at least 2x. I'm expecting more. And our focus is on perpetuating profitable growth. And so just a couple of stats from a Q3 highlight perspective, $151 million in total revenue, which is 27% growth. 30% surgical revenue growth, excited about that, means a lot of volume. So 20% surgical volume. 9% growth in revenue per procedure, 19% in new surgeon users, so that's back up and good. Increase -- we did over 200 surgeon training engagements. EOS Insight is launched and we have a record number of orders year-to-date. The profitability is good at $7.4 million in adjusted EBITDA, greater than 50% sequential reduction in cash burn. So we're on track to generate cash in Q4 ‘24. And we increased our term loan capacity by $50 million. So that's helpful. Our value creation and cash generation is really the focus of what we're doing. So as a spine focused company, creating value clearly is our intention. And so we're accomplishing this through multiple means. And the first one is, and I think that nobody questions our capacity to do this because we've done it for five straight years, which is really lead in revenue generation. And so by leading in revenue generation and increasing profitability, clearly, it will reflect in cash flow.