Alphatec Holdings, Inc.

Good afternoon, everyone, and welcome to the webcast of ATEC's fourth 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 the SEC. During this call, you may hear the company refer to non-GAAP or pro forma measures. I do apologize. Reconciliations of non-GAAP measures to US GAAP can be found in the supplemental financial tables included in the 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. Now I will turn the call over to Pat Miles.

Thank you, Angela, and welcome everybody to the Q4 2022 ATEC conference call. We will be providing some forward-looking statements, so please review that at your leisure. Our momentum by revolutionizing the approach to spine surgery continues. Our finish for 2022 was $351 million. We grew 44% over four years. We've grown at least 25% each year and had a 40% four-year taker. And that comes via a year where we launched 10 new products, including Our first expandable implant, we expanded lateral procedural sophistication with PTP and LTP, which includes a midline ALIF. We drove $48 million in EOS revenue, trained greater than 500 surgeons, achieved greater than 20% growth in surgeon users, and increased our access to cash and liquidity to approximately $275 million. I believe much of our value creation is unlocked by our culture. So it is worthwhile describing who we are and who we're not. And I would say who we are is a winning culture focused solely on spine surgery, committed to moving the field of spine forward through informatic and procedural innovation. So who are we not? I would say we're not a division of a division. We're not a conglomerate acquiring growth and disinterested in furthering technology, or an implant-only transaction is uncommitted to the full clinical experience. Our commitments haven't changed. We focus exclusively on spine, fulfilling unmet clinical needs through integrating technology to create predictability. That we call creating clinical distinction. And so when we create clinical distinction, we believe that we compel surgeon adoption. When we compel surgeon adoption, We believe we have access to a more effective sales force and an expanding sales force. So our clinical distinction view is different. Our 100% spine focus allows us to invest in procedural technology that furthers the predictability of spine surgery. Around here, we have the propensity to make up words, like proceduralization. At the heart of our proceduralization is lateral. We like to say more distinctions, you draw to a subject, you're more sophisticated. Lateral is a place of great sophistication at ATEC. Why would it not be? The gang who pioneered it is here. What makes a procedure predictable is removing variables. That requires designing from the ground up and applying technology where it is most required. To be successful in lateral surgery, you must not only have automated EMGs, but also automated SSEPs. It only makes sense when you start to think about lateral spine surgeries. What exists between the skin and the spine from lateral is soft tissue. A key part of that soft tissue is the lumbar plexus. The number one complication potential in lateral surgery is injury to the lumbar plexus. So it's a requirement to have automated EMGs to know where the nerve is and automated SSEPs. We are the only company with those two technologies combined in a workflow that makes the information actionable. So we believe that actionable information drives improved clinical decision-making. Our view additionally is that experience should not stop with lateral. It is really the reason behind the informatic ecosystem that we are building. In that system is a standard. No other company has a front-to-back standard from which to build.

Our opportunity to affect the operative experience through information starts with EOS. Bring that information from pre-op, to plan into the operating room is really key.