Alphatec Spine, Inc. (ATEC)
Q4 2008 Earnings Call Transcript
March 02, 2009 at 4:30 pm ET
Dirk Kuyper - President and Chief Executive Officer
Peter Wulff - Chief Financial Officer
Glenn Novarro - RBC Capital Markets
William Plovanic - Canaccord Adams
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Okay. Thank you and good afternoon everyone. Welcome to Alphatec Spine's conference call to discuss our fourth quarter and fiscal year ended December 31, 2008 financial and operating results.
With me today are Dirk Kuyper, President and Chief Executive Officer and Ebun Garner, General Counsel. By now you should have seen the copy of today’s press release announce our fourth quarter and fiscal year 2008 financial and operating results. If you do not have a copy of today's press release, you can find it in the Investor Relations section on our website at www.alphatecspine.com.
Before we start, there are a couple of items we would like to cover. I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available later today, on our website and will remain available for at least 30 days following the call.
We would like to remind you that our discussions today include forward-looking statements. These statements are based on certain assumptions made by us based on historical trends, current conditions, expected future developments, including business prospects, product development objectives, future financial performance and other factors we believe to be appropriate in the circumstances. Risks and uncertainties may cause our actual results to differ materially from these projected and these forward-looking statements.
You can find a discussion of these factors and more information about us in our filings with the SEC, including the risk factor section on our annual report on Form 10-K and subsequently, quarterly reports on Form 10-Q and periodic filings on Form 8-K. These forward-looking statements are made as of the date of this call and we assume no obligation to update these statements publicly, even if new information becomes available in the future. This broadcast is covered by US copyright laws and any use or rebroadcast of all or any portion of this conference call may only be done with our expressed written permission.
I will now hand the call over to Dirk Kuyper, Alphatec Spine's President and CEO.
Thank you, Peter. Good afternoon and thank you for joining us today. As most of you know, we previously preannounced our fourth quarter 2008 revenue performance on Tuesday, January 13th of 2009. At that time, we announced continued record revenue growth, preliminary 2009 revenue and EBITDA guidance, announced the launch of the OsseoFix spinal fracture reduction system in Europe as well as gave update on improvement to our US sale distribution.
This afternoon, we will provide additional highlights of our operating performance form the fourth quarter of 2008 as well as an overview of new product introductions and accomplishments that we achieved. Our focus my remarks on updating you on the four primary drivers and growth in Alphatec: first, the continued expansion of our co-product portfolio; second, future product development initiatives, addressing the aging spine; third, US sales force and distribution improvements; and fourth, international expansion opportunities. I will then turn the call over to our CFO Peter Wulff, who will provide a more detailed review of our financial performance and following Peter, I will come back and discuss 2009 growth initiatives and review our 2009 financial guidance before opening up the call for questions.
Our revenues for the fourth quarter of 2008 were a record $28.4 million representing a 33% increase of our revenues for the same period last year. This represents the sixth consecutive quarter of record revenue and an accelerating growth rate of our prior period. In the US, we grew fourth quarter 2008 revenues by approximately 29% over last year's quarterly revenues, due primarily to the ongoing strength of our core business growth rate.
For the full year 2008, revenues were $101.3 million, an increase of 27% over the full year 2007. Full year 2008 revenue for the US of $81.5 million grew approximately 22% over 2007 US revenues. We had an extremely busy year in 2008 and are pleased with our accomplishments especially in achieving record revenue and positioning Alphatec Spine for long term growth to our focus on the aging spine.
We continue to grow revenues and rate significantly higher than the spine market through the introduction of innovative new products, improvements in our US sales force and expansion of our international operations.
Highlights of 2008 regarding our four primary growth drivers are as follows. First, we launched eight new products throughout the year, including line extension and upgrades to our core product portfolio. These products include the new Novel Cervical Interbody and protect the knee systems, the ILLICO Minimally Invasive Retractor and Cannulated Screw System and our ProFUSE demineralized bone scaffold.
We are particularly pleased toward the growth rate of our cervical business segment which grew at greater than 50% in 2008 as compared to 2007. This sector includes in the Trestle Anterior Cervical Plate which is launched in late 2007 as well as the Solanas Posterior Cervical Thoracic product line which both continue to show strong demand.