Alphatec Spine Announces Intent to Restructure Scient'x Business Operations
Recommended Changes Will Result in Multi-Year Improvements in International
CARLSBAD, Calif., Sept. 16, 2013 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc.
(Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., a medical device
company that provides physician–inspired solutions for patients with spinal
disorders, announced that its French affiliate, Scient'x S.A.S. and its
subsidiary Surgiview S.A.S. (collectively, "Scient'x") has begun a process
aimed at significantly restructuring its business operations. This
restructuring plan, when completed in accordance with French laws, is expected
to reduce Scient'x's workforce by 76 positions in total. It is anticipated
that the restructuring will reduce operating expenditures between $2 to 6
million on an annualized basis and is part of the Company's strategy of
streamlining the organization and lowering cost structures, with an
expectation to improve its profitability in 2014 and beyond.
Scient'x is working cooperatively with its Works Councils on this
restructuring plan and the corresponding collective redundancy plan.
"The decision to begin the process of restructuring our operations in France
was very difficult but ultimately was based on the management team undertaking
a thorough analysis of the current and future market environment and
Scient'x's ability to remain competitive while meeting our customers' needs
with the best and most affordable solutions," said Les Cross, Chairman and CEO
of Alphatec Spine, Inc. "Upon completion, this restructuring should leverage
Alphatec Spine's current global investment in manufacturing, infrastructure,
and sales distribution capacity, while still providing Scient'x's customers,
distributors, and suppliers with immediate and long-term benefits."
This restructuring plan should result in multi-year reductions in operating
expense, yielding improvements in international gross margins and increasing
overall operating margins. The Company would incur one-time restructuring
costs associated with the implementation of this plan consisting primarily of
transition, severance and other costs related to work force reductions.
"We appreciate the significant contributions of those employees who could be
impacted by this plan and their dedication to Scient'x and their customers. We
will do everything possible to assist all affected employees and their
families," said Mr. Cross.
During their Q3 2013 earnings call, Alphatec Spine will provide additional
details on the longer-term financial benefits related to the proposed changes
as well as more information on one-time costs, including the timing of those
expenses, which would impact the Company's ongoing financial performance.
Further information regarding the Company's recommendation to restructure
Scient'x business operations in France is set forth in a Current Reports on
Form 8-K that was filed with the U.S. Securities and Exchange Commission (SEC)
and is available on both the SEC's website at www.sec.gov and the Company's
website at www.alphatecspine.com.
About Alphatec Spine
Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec Holdings, Inc., is
a medical device company that designs, develops, manufactures and markets
physician-inspired products and solutions for the treatment of spinal
disorders associated with trauma, congenital deformities, disease and
degeneration. The Company's mission is to combine innovative surgical
solutions with world-class customer service to improve outcomes and patient
quality of life. The Company and its affiliates market products in the U.S.
and in over 50 countries internationally via a direct sales force and
Additional information can be found at www.alphatecspine.com.
Forward Looking Statements
This press release may contain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 that involve risks and
uncertainty. Such statements are based on management's current expectations
and are subject to a number of risks and uncertainties that could cause actual
results to differ materially from those described in the forward looking
statements. Alphatec Spine cautions investors that there can be no assurance
that actual results or business conditions will not differ materially from
those projected or suggested in such forward-looking statements as a result of
various factors. Forward looking statements include references to Alphatec
Spine's 2013 growth, revenue, and adjusted EBITDA projections; the Company's
ability to successfully complete the restructuring of its French operations;
the Company's ability to reduce its operating expenditures between $2 million
and $6 million, or at all as a result of the French restructuring; the
Company's ability to realize multi-year reductions in operating expense, and
yield improvements in international gross margins overall operating margins as
a result of the French restructuring; the Company's ability to accurately
forecast the restructuring costs associated with the implementation of the
French Restructuring; and the Company's ability to provide Scient'x's
customers, distributors, and suppliers with immediate and long-term benefits
following the French restructuring.Please refer to the risks detailed from
time to time in Alphatec Spine's SEC reports, including its Annual Report Form
10-K for the year ended December 31, 2012, filed on March 4, 2013 with the
Securities and Exchange Commission, as well as other filings on Form 10-Q and
periodic filings on Form 8-K. Alphatec Spine disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise, unless required by
CONTACT: Investor/Media Contact:
Alphatec Spine, Inc.
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