 U.S. Revenue Grows 11 Seventh Consecutive Quarter of Year-Over-Year Double-Digit Revenue IncreaseCARLSBAD, Calif., Aug. 06, 2020 GLOBE NEWSWIRE -- Alphatec Holdings, Inc. ATEC or the Company Nasdaq: ATEC, a provider of innovative spine surgery solutions dedicated to revolutionizing the approach to spine surgery, today announced financial results for the quarter ended June 30, 2020, and recent corporate highlights.Second Quarter 2020 Financial Results Total revenue of 29.6 million; U.S. revenue of 28.8 million, up 11 year-over-year; U.S. gross margin of 72.3; and Cash and cash equivalents of 31.2 million as of June 30, 2020.Recent Corporate Highlights Increased contribution from new products to 61 of Q2 U.S. revenue, up from 32 in Q2 2019; Increased U.S. revenue and average product categories sold per case year-over-year by 14, more than offsetting 4 decrease in surgery volume; Continued sales network transformation, resulting in 15 year-over-year revenue growth from strategic distribution; Increased revenue from top 20 surgeons by 25 year-over-year; and Commenced significant upgrades of ATEC cervical portfolio sophistication with FDA 510k clearance of the InsigniaTM Anterior Cervical Plate System and InVictusTM CT Spinal Fixation System, which expands the elegance of InVictus across cervical, thoracic and lumbar procedures.I am proud of the way our team continues to methodically execute the plan, said Pat Miles, Chairman and Chief Executive Officer. Three years ago, we committed to creating clinical distinction, compelling surgeon adoption and revitalizing our sales channel. We described a time when unmatched procedural innovation would attract an increasingly influential surgeon base and a more professionalized salesforce, which would lead to increased case complexity, more products per procedure, and improved revenue per surgery. Were beginning to see this vision reflected in our financial performance. While other companies commit to advertising campaigns, our commitment is to improving spine care. We are just getting started. We expect to see continued strong interest and enthusiasm for the 8 to 10 new solutions we will deliver in the second half of 2020. We could not be more viscerally and personally engaged in our mission and our ability to continue to drive industry-leading growth. We know our best is yet to come. Comparison of Selected GAAP and Non-GAAP Financial Results for the Second Quarter 2020 to Second Quarter 2019Revenue from U.S. products for the second quarter 2020 was 28.8 million, up 11 compared to 26.1 million in the second quarter 2019. Revenue growth generated by new products and the strategic distribution channel continues to outpace the ongoing revenue impacts of transitioning or discontinuing non-strategic distributor relationships.Gross profit and gross margin from U.S. products for the second quarter 2020 were 20.8 million and 72.3, respectively, compared to 18.8 million and 72.2, respectively, for the second quarter 2019. On a non-GAAP basis, excluding non-cash excess and obsolete charges, U.S. gross margin was 78.2 in the second quarter of 2020, compared to 80.6 in the second quarter 2019. Non-GAAP U.S. gross margin was impacted by product mix and amortization of SafeOp-related intangibles, which commenced in late 2019.Total operating expenses for the second quarter 2020 were 32.0 million compared to 29.3 million in the second quarter 2019. On a non-GAAP basis, excluding stock-based compensation, fair value adjustments, litigation-related expenses and transaction-related expenses, total operating expenses increased to 26.4 million from 25.8 million in 2019, reflecting increased selling costs from U.S. revenue growth, as well as increased investments in organic product development to support new product launches.Non-GAAP adjusted operating loss, which excludes stock-based compensation, fair value adjustments, litigation-related expenses, transaction-related expenses and excess and obsolescence charges, was 3.7 million for the second quarter 2020, compared to a loss of 4.7 million for the second quarter 2019.Non-GAAP adjusted EBITDA, which excludes stock-based compensation, fair value adjustments, litigation-related expenses, transaction-related expenses and excess and obsolescence charges in the second quarter 2020 was a loss of 1.1 million, compared to a loss of 3.0 million in the second quarter 2019. For more detailed information on non-GAAP operating expenses, non-GAAP adjusted operating loss and non-GAAP adjusted EBITDA, please refer to the table, Alphatec Holdings, Inc. Reconciliation of Non-GAAP Financial Measures, that follows.Cash and cash equivalents at June 30, 2020 were 31.2 million, with an additional 25 million available under the credit facility with Squadron Capital the Squadron facility.Current and long-term debt at face value as of June 30, 2020 includes 75 million in term debt under the Squadron facility. During the second quarter of 2020, the Company retired its revolving credit facility with MidCap Funding.2020 Financial OutlookAs a result of hospitals globally postponing elective procedures to preserve capacity for COVID-19 patients, ATEC suspended its previously announced 2020 revenue guidance on April 8, 2020. While recovery of surgical volumes has been more robust than initially anticipated, the Company continues to have limited visibility into any continuing or future impact of the global pandemic.Investor Conference CallATEC will present the results via a live webcast today at 1:30 p.m. PT 4:30 p.m. ET to discuss the results. At that time, please click here to access the live webcast. An audiocast of the presentation will be also be available domestically at 877 556-5251 and internationally at 720 545-0036. The conference ID number is 5682075.A replay of the webcast will remain available on ATECs corporate website at until the Company releases second quarter financial results. In addition, a replay of the audiocast will be available until August 14, 2020. The replay dial-in numbers are 855 859-2056 for domestic callers and 404 537-3406 for international callers. Please use the replay conference ID number 5682075.Non-GAAP Financial InformationTo supplement the Companys financial statements presented in accordance with U.S. generally accepted accounting principles GAAP, the Company reports certain non-GAAP financial measures, including non-GAAP U.S. gross margin, non-GAAP operating expenses, non-GAAP operating loss, and non-GAAP Adjusted EBITDA. The Company believes that these non-GAAP financial measures provide investors with an additional tool for evaluating the Companys core performance, which management uses in its own evaluation of continuing operating performance, and a baseline for assessing the future earnings potential of the Company. The Companys non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Companys industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Non-GAAP financial results should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Included below are reconciliations of the non-GAAP financial measures to the comparable GAAP financial measures.Filing of Shelf Registration Statement on Form S-3 The Company intends to file a universal shelf registration statement on Form S-3 the Registration Statement with the United States Securities and Exchange Commission SEC. ATEC equity securities may not be sold, nor may offers to buy the securities under the Registration Statement be accepted, prior to the time the Registration Statement becomes effective by the SEC. If the Registration Statement is declared effective, ATEC may offer and sell, from time to time, up to 200 million, separately or together, of its securities. The terms of any such offering, including the specific terms and prices of the securities, will be determined at the time of such offering and be made solely by means of the prospectus included in the Registration Statement and any prospectus supplement that may be filed with the SEC relating to such offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state.On August 6, 2020, ATEC entered into an at-the-market ATM Sales Agreement with Cowen. Under the ATM Sales Agreement, ATEC may sell its common shares from time to time, for up to 50 million, separately or together, in aggregate sales proceeds in at-the-market transactions. While ATEC has no current need to utilize the Registration Statement to issue its securities, under the ATM Sales Agreement or otherwise, the Registration Statement will provide ATEC with added flexibility to strategically access capital markets.About Alphatec Holdings, Inc.Alphatec Holdings, Inc. ATEC, through its wholly-owned subsidiaries, Alphatec Spine, Inc. and SafeOp Surgical, Inc., is a medical device company dedicated to revolutionizing the approach to spine surgery through clinical distinction. ATEC architects and commercializes approach-based technology that integrates seamlessly with the SafeOp Neural InformatiX System to provide real-time, objective nerve information that can enhance the safety and reproducibility of spine surgery. Additional information can be found at information can be found at www. 