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ATEC Spine reported 1Q20 orthopedic revenue of USD $30.1 million, +22.6% vs. 1Q19. Company leadership said that early 1Q run rates were approaching the same levels as 4Q (+28%) before COVID-related procedure deferrals abruptly impacted March sales. Still, ATEC made gains across a wide band of metrics including an increasing share of revenue from new products to 56% (up from 22% the year prior) and growing revenue per case by +15% vs. prior year. ATEC is not only increasing its volume of cases, but also the complexity of those cases as its portfolio continues to evolve.
The company shed more light on the decision to terminate its agreement to acquire EOS imaging, saying that near-term focus for hospitals made capital acquisitions a lower priority. Still, the “clinical thesis” of collaborating with EOS remains unchanged and ATEC is pursuing new ways for the companies to commercially partner.
The company ended 1Q with $27.5 million in cash and made an early April draw on its credit facility with Squadron Capital in addition to executing a letter of commitment for a $35 million expansion of that facility. Cost containment measures were undertaken with an eye toward preserving the company’s employee base and maintaining key product development initiatives.
“We know hospitals need to generate revenue. The way they generate revenue is through elective surgery. The closest thing to non-elective surgery in orthopedics is spine.” – Patrick Miles, ATEC Spine Chairman and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $27.4 | $22.3 | $5.1 | 23% |
| Orthobiologics | $2.7 | $2.3 | $0.4 | 18.7% |
| Total | $30.1 | $24.6 | $5.6 | 22.6% |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $29.1 | $23.0 | $6.1 | 26.6% |
| Ex-US | $1.0 | $1.6 | ($0.6) | (34.7%) |
| Total | $30.1 | $24.6 | $5.6 | 22.6% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $30.1 | |
| Cost of Sales | $9.1 | 30.2% |
| Selling and Admin | $28.0 | 93% |
| R & D | $3.7 | 12.4% |
| Other | $10.0 | 33.2% |
| Net Earnings | ($20.7) | (68.8%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ATEC Spine reported 1Q20 orthopedic revenue of USD $30.1 million, +22.6% vs. 1Q19. Company leadership said that early 1Q run rates were approaching the same levels as 4Q (+28%) before COVID-related procedure deferrals abruptly impacted March sales. Still, ATEC made gains across a wide band of metrics including an increasing share of revenue...
ATEC Spine reported 1Q20 orthopedic revenue of USD $30.1 million, +22.6% vs. 1Q19. Company leadership said that early 1Q run rates were approaching the same levels as 4Q (+28%) before COVID-related procedure deferrals abruptly impacted March sales. Still, ATEC made gains across a wide band of metrics including an increasing share of revenue from new products to 56% (up from 22% the year prior) and growing revenue per case by +15% vs. prior year. ATEC is not only increasing its volume of cases, but also the complexity of those cases as its portfolio continues to evolve.
The company shed more light on the decision to terminate its agreement to acquire EOS imaging, saying that near-term focus for hospitals made capital acquisitions a lower priority. Still, the “clinical thesis” of collaborating with EOS remains unchanged and ATEC is pursuing new ways for the companies to commercially partner.
The company ended 1Q with $27.5 million in cash and made an early April draw on its credit facility with Squadron Capital in addition to executing a letter of commitment for a $35 million expansion of that facility. Cost containment measures were undertaken with an eye toward preserving the company’s employee base and maintaining key product development initiatives.
“We know hospitals need to generate revenue. The way they generate revenue is through elective surgery. The closest thing to non-elective surgery in orthopedics is spine.” – Patrick Miles, ATEC Spine Chairman and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $27.4 | $22.3 | $5.1 | 23% |
| Orthobiologics | $2.7 | $2.3 | $0.4 | 18.7% |
| Total | $30.1 | $24.6 | $5.6 | 22.6% |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $29.1 | $23.0 | $6.1 | 26.6% |
| Ex-US | $1.0 | $1.6 | ($0.6) | (34.7%) |
| Total | $30.1 | $24.6 | $5.6 | 22.6% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $30.1 | |
| Cost of Sales | $9.1 | 30.2% |
| Selling and Admin | $28.0 | 93% |
| R & D | $3.7 | 12.4% |
| Other | $10.0 | 33.2% |
| Net Earnings | ($20.7) | (68.8%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
