ZimVie Inc. (Nasdaq: ZIMV), a global life sciences leader in the
dental market, today reported financial results for the quarter
ended June 30, 2024. Management will host a corresponding
conference call today, August 1, 2024, at 4:30 p.m. Eastern Time.
“We continued to execute in the second quarter,
successfully engaging with our dental customers and advancing our
innovative product portfolio, with several recent updates to our
implant and workflow technologies,” said Vafa Jamali, President and
Chief Executive Officer. “We made meaningful progress improving the
operational profile of our business, reducing our debt and
continuing to progress as a standalone, pure-play dental company.
We are pleased to be in a position to reaffirm our full year net
sales, margin, and adjusted earnings per share guidance.”
Second Quarter 2024 Financial Results: Continuing
Operations
Third party net sales for the second quarter of
2024 were $116.8 million, a decrease of 1.5% on a reported basis
and 0.4% in constant currency[1], versus the second quarter of
2023.
Net loss for the second quarter of 2024 was
$(9.6) million, an increase of $3.7 million versus a net loss of
$(5.9) million in the second quarter of 2023. Net loss
margin for the second quarter of 2024 was 8.2% of third party net
sales, an increase of 320 basis points over a net loss margin of
5.0% in the second quarter of 2023.
Adjusted net income[1] for the second quarter of
2024 was $3.6 million, an increase of $2.4 million versus the
second quarter of 2023.
Basic and diluted EPS were $(0.35) and adjusted
diluted EPS[1] was $0.13 for the second quarter of
2024, and were largely impacted by the timing of share-based
compensation expense in the second quarter. Weighted average shares
outstanding for both basic and adjusted diluted EPS was 27.4
million.
Adjusted EBITDA[1] for the second quarter of
2024 was $16.1 million, or 13.8% of third party net sales, an
increase of $2.7 million or 250 basis points versus the second
quarter of 2023.
Reiterating Full Year 2024 Continuing Operations
Financial Guidance:
Projected Year Ending December 31, 2024 |
Guidance |
Net Sales |
$450 to $460M |
Adjusted
EBITDA[2] |
$60M to $65M |
Adjusted
EPS[2] |
$0.55 to $0.70 |
[1] This is a non-GAAP financial measure. Refer
to “Note on Non-GAAP Financial Measures” and the reconciliations in
this release for further information.
[2] This is a non-GAAP financial measure for
which a reconciliation to the most directly comparable GAAP
financial measure is not available without unreasonable efforts.
Refer to “Forward-Looking Non-GAAP Financial Measures” in this
release, which identifies the information that is unavailable
without unreasonable efforts and provides additional information.
It is probable that this forward-looking non-GAAP financial measure
may be materially different from the corresponding GAAP financial
measure.
Conference Call
ZimVie will host a conference call today, August
1, 2024, at 4:30 p.m. ET to discuss its second quarter 2024
financial results. To access the call, please register online at
https://investor.zimvie.com/events-presentations/event-calendar. A
live and archived audio webcast will also be available on this
site.
About ZimVie
ZimVie is a global life sciences leader in the
dental market that develops, manufactures, and delivers a
comprehensive portfolio of products and solutions designed to
support dental tooth replacement and restoration procedures. From
its headquarters in Palm Beach Gardens, Florida, and additional
facilities around the globe, ZimVie works to improve smiles,
function, and confidence in daily life by offering comprehensive
tooth replacement solutions, including trusted dental implants,
biomaterials, and digital workflow solutions. As a worldwide leader
in this space, ZimVie is committed to advancing clinical science
and technology foundational to restoring daily life. For more
information about ZimVie, please visit us at www.ZimVie.com. Follow
@ZimVie on Twitter, Facebook, LinkedIn, or Instagram.
Note on Non-GAAP Financial Measures
This press release includes non-GAAP financial
measures that differ from financial measures calculated in
accordance with U.S. generally accepted accounting principles
(“GAAP”). These non-GAAP financial measures may not be comparable
to similar measures reported by other companies and should be
considered in addition to, and not as a substitute for, or superior
to, other measures prepared in accordance with GAAP.
Adjusted EBITDA is a non-GAAP financial measure
provided in this release for certain periods and is calculated by
excluding certain items from net income/loss from Continuing
Operations on a GAAP basis, as detailed in the reconciliations
presented later in this press release. Adjusted EBITDA margin is
Adjusted EBITDA divided by third party net sales from Continuing
Operations for the applicable period.
Sales change information in this release is
presented on a GAAP (reported) basis and on a constant currency
basis. Constant currency percentage changes exclude the effects of
foreign currency exchange rates. They are calculated by translating
current and prior-period sales from Continuing Operations at the
same predetermined exchange rate. The translated results are then
used to determine year-over-year percentage increases or
decreases.
Net income (loss) and diluted earnings (loss)
per share in this release are presented on a GAAP (reported) basis
and on an adjusted basis. Adjusted net income (loss) and adjusted
diluted earnings (loss) per share exclude the effects of certain
items, which are detailed in the reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures presented later in this press release.
Reconciliations of these non-GAAP measures to
the most directly comparable GAAP financial measures are included
in this press release.
Management uses non-GAAP financial measures
internally to evaluate the performance of the business.
Additionally, management believes these non-GAAP measures provide
meaningful incremental information to investors to consider when
evaluating the performance of the company. Management believes
these measures offer the ability to make period-to-period
comparisons that are not impacted by certain items that can cause
dramatic changes in reported income, but that do not impact the
fundamentals of our operations. The non-GAAP measures enable the
evaluation of operating results and trend analysis by allowing a
reader to better identify operating trends that may otherwise be
masked or distorted by these types of items that are excluded from
the non-GAAP measures.
Forward-Looking Non-GAAP Financial Measures
This press release also includes certain
forward-looking non-GAAP financial measures for the year ending
December 31, 2024. We calculate forward-looking non-GAAP financial
measures based on internal forecasts that omit certain amounts that
would be included in GAAP financial measures. We have not provided
quantitative reconciliations of these forward-looking non-GAAP
financial measures to the most directly comparable forward-looking
GAAP financial measures because the excluded items are not
available on a prospective basis without unreasonable efforts. For
example, the timing of certain transactions is difficult to predict
because management’s plans may change. In addition, the company
believes such reconciliations would imply a degree of precision and
certainty that could be confusing to investors. It is probable that
these forward-looking non-GAAP financial measures may be materially
different from the corresponding GAAP financial measures.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of federal securities laws,
including, among others, any statements about our expectations,
plans, intentions, strategies, or prospects. We generally use the
words “may,” “will,” “expects,” “believes,” “anticipates,” “plans,”
“estimates,” “projects,” “assumes,” “guides,” “targets,”
“forecasts,” “sees,” “seeks,” “should,” “could,” “would,”
“predicts,” “potential,” “strategy,” “future,” “opportunity,” “work
toward,” “intends,” “guidance,” “confidence,” “positioned,”
“design,” “strive,” “continue,” “track,” “look forward to,”
“optimistic” and similar expressions to identify forward-looking
statements. All statements other than statements of historical or
current fact are or may be deemed to be forward-looking statements.
Such statements are based upon the current beliefs, expectations,
and assumptions of management and are subject to significant risks,
uncertainties, and changes in circumstances that could cause actual
outcomes and results to differ materially from the forward-looking
statements. These risks, uncertainties and changes in circumstances
include, but are not limited to: dependence on new product
development, technological advances and innovation; shifts in the
product category or regional sales mix of our products and
services; supply and prices of raw materials and products; pricing
pressures from competitors, customers, dental practices and
insurance providers; changes in customer demand for our products
and services caused by demographic changes or other factors;
challenges relating to changes in and compliance with governmental
laws and regulations affecting our U.S. and international
businesses, including regulations of the U.S. Food and Drug
Administration and foreign government regulators, such as more
stringent requirements for regulatory clearance of products;
competition; the impact of healthcare reform measures; reductions
in reimbursement levels by third-party payors; cost containment
efforts sponsored by government agencies, legislative bodies, the
private sector and healthcare group purchasing organizations,
including the volume-based procurement process in China; control of
costs and expenses; dependence on a limited number of suppliers for
key raw materials and outsourced activities; the ability to obtain
and maintain adequate intellectual property protection; breaches or
failures of our information technology systems or products,
including by cyberattack, unauthorized access or theft; the ability
to retain the independent agents and distributors who market our
products; our ability to attract, retain and develop the highly
skilled employees we need to support our business; the effect of
mergers and acquisitions on our relationships with customers,
suppliers and lenders and on our operating results and businesses
generally; the ability to form and implement alliances; changes in
tax obligations arising from tax reform measures, including
European Union rules on state aid, or examinations by tax
authorities; product liability, intellectual property and
commercial litigation losses; changes in general industry and
market conditions, including domestic and international growth
rates; changes in general domestic and international economic
conditions, including inflation and interest rate and currency
exchange rate fluctuations; the effects of global pandemics and
other adverse public health developments on the global economy, our
business and operations and the business and operations of our
suppliers and customers, including the deferral of elective
procedures and our ability to collect accounts receivable; and the
impact of the ongoing financial and political uncertainty on
countries in the Euro zone on the ability to collect accounts
receivable in affected countries. You are cautioned not to rely on
these forward-looking statements, since there can be no assurance
that these forward-looking statements will prove to be accurate.
Forward-looking statements speak only as of the date they are made,
and we expressly disclaim any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Media Contact Information:
ZimVieAllison Johnson •
Allison.Johnson@ZimVie.com(774) 266-8046
Grace Flowers • Grace.Flowers@ZimVie.com(561) 319-6130
Investor Contact Information:
Gilmartin Group LLCMarissa Bych •
Marissa@gilmartinir.com
|
ZIMVIE INC.CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS(in thousands, except per
share data) |
|
|
|
|
|
(unaudited) |
|
(unaudited) |
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net Sales |
|
|
|
|
|
|
|
Third party, net |
$ |
116,811 |
|
|
$ |
118,649 |
|
|
$ |
235,006 |
|
|
$ |
238,819 |
|
Related party, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
236 |
|
Total Net
Sales |
|
116,811 |
|
|
|
118,649 |
|
|
|
235,006 |
|
|
|
239,055 |
|
Cost of products sold,
excluding intangible asset amortization |
|
(43,517 |
) |
|
|
(44,465 |
) |
|
|
(87,775 |
) |
|
|
(87,340 |
) |
Related party cost of products
sold, excluding intangible asset amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(231 |
) |
Intangible asset
amortization |
|
(5,999 |
) |
|
|
(6,806 |
) |
|
|
(12,022 |
) |
|
|
(13,600 |
) |
Research and development |
|
(6,579 |
) |
|
|
(6,458 |
) |
|
|
(13,359 |
) |
|
|
(13,688 |
) |
Selling, general and
administrative |
|
(62,384 |
) |
|
|
(62,573 |
) |
|
|
(122,714 |
) |
|
|
(129,547 |
) |
Restructuring and other cost
reduction initiatives |
|
(398 |
) |
|
|
(1,365 |
) |
|
|
(2,977 |
) |
|
|
(2,538 |
) |
Acquisition, integration,
divestiture and related |
|
(4,621 |
) |
|
|
(1,370 |
) |
|
|
(5,657 |
) |
|
|
(2,711 |
) |
Operating expenses |
|
(123,498 |
) |
|
|
(123,037 |
) |
|
|
(244,504 |
) |
|
|
(249,655 |
) |
Operating
Loss |
|
(6,687 |
) |
|
|
(4,388 |
) |
|
|
(9,498 |
) |
|
|
(10,599 |
) |
Other income (expense), net |
|
3,010 |
|
|
|
(170 |
) |
|
|
2,701 |
|
|
|
(201 |
) |
Interest income |
|
1,965 |
|
|
|
735 |
|
|
|
2,472 |
|
|
|
1,360 |
|
Interest expense |
|
(5,066 |
) |
|
|
(5,934 |
) |
|
|
(9,940 |
) |
|
|
(11,633 |
) |
Loss from continuing operations before income taxes |
|
(6,778 |
) |
|
|
(9,757 |
) |
|
|
(14,265 |
) |
|
|
(21,073 |
) |
(Provision) benefit for income taxes from continuing
operations |
|
(2,775 |
) |
|
|
3,847 |
|
|
|
(6,849 |
) |
|
|
(1,230 |
) |
Net Loss from
Continuing Operations of ZimVie Inc. |
|
(9,553 |
) |
|
|
(5,910 |
) |
|
|
(21,114 |
) |
|
|
(22,303 |
) |
Earnings (Loss) from discontinued operations, net of tax |
|
5,539 |
|
|
|
(17,463 |
) |
|
|
9,339 |
|
|
|
(31,038 |
) |
Net Loss of ZimVie
Inc. |
$ |
(4,014 |
) |
|
$ |
(23,373 |
) |
|
$ |
(11,775 |
) |
|
$ |
(53,341 |
) |
|
|
|
|
|
|
|
|
Basic (Loss) Earnings
Per Common Share: |
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.35 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.77 |
) |
|
$ |
(0.85 |
) |
Discontinued operations |
|
0.20 |
|
|
|
(0.67 |
) |
|
|
0.34 |
|
|
|
(1.17 |
) |
Net Loss |
$ |
(0.15 |
) |
|
$ |
(0.89 |
) |
|
$ |
(0.43 |
) |
|
$ |
(2.02 |
) |
|
|
|
|
|
|
|
|
Diluted (Loss)
Earnings Per Common Share |
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.35 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.77 |
) |
|
$ |
(0.85 |
) |
Discontinued operations |
|
0.20 |
|
|
|
(0.67 |
) |
|
|
0.34 |
|
|
|
(1.17 |
) |
Net Loss |
$ |
(0.15 |
) |
|
$ |
(0.89 |
) |
|
$ |
(0.43 |
) |
|
$ |
(2.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZIMVIE INC.CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)(in thousands, except per share
data) |
|
|
|
As of |
|
June 30, 2024 |
|
December 31, 2023 |
ASSETS |
|
|
|
Current
Assets: |
|
|
|
Cash and cash equivalents |
$ |
78,601 |
|
|
$ |
71,511 |
|
Accounts receivable, less allowance for credit losses of $2,394 and
$3,222 respectively |
|
70,526 |
|
|
|
65,168 |
|
Inventories |
|
71,831 |
|
|
|
79,600 |
|
Prepaid expenses and other current assets |
|
19,504 |
|
|
|
23,825 |
|
Current assets of discontinued operations |
|
33,391 |
|
|
|
242,773 |
|
Total Current Assets |
|
273,853 |
|
|
|
482,877 |
|
Property, plant and equipment, net of accumulated depreciation of
$129,165 and $126,624, respectively |
|
50,394 |
|
|
|
54,167 |
|
Goodwill |
|
259,769 |
|
|
|
262,111 |
|
Intangible assets, net |
|
103,038 |
|
|
|
114,354 |
|
Note receivable |
|
60,270 |
|
|
|
— |
|
Other assets |
|
29,862 |
|
|
|
26,747 |
|
Noncurrent assets of discontinued operations |
|
12,600 |
|
|
|
265,089 |
|
Total
Assets |
$ |
789,786 |
|
|
$ |
1,205,345 |
|
LIABILITIES AND
EQUITY |
|
|
|
Current
Liabilities: |
|
|
|
Accounts payable |
$ |
27,160 |
|
|
$ |
27,785 |
|
Income taxes payable |
|
2,498 |
|
|
|
2,863 |
|
Other current liabilities |
|
61,685 |
|
|
|
67,108 |
|
Current liabilities of discontinued operations |
|
49,781 |
|
|
|
75,858 |
|
Total Current Liabilities |
|
141,124 |
|
|
|
173,614 |
|
Deferred income taxes |
|
57 |
|
|
|
265 |
|
Lease liability |
|
9,835 |
|
|
|
9,080 |
|
Other long-term liabilities |
|
9,171 |
|
|
|
9,055 |
|
Non-current portion of debt |
|
235,110 |
|
|
|
508,797 |
|
Noncurrent liabilities of discontinued operations |
|
390 |
|
|
|
95,041 |
|
Total
Liabilities |
|
395,687 |
|
|
|
795,852 |
|
Commitments and
Contingencies |
|
|
|
Stockholders'
Equity: |
|
|
|
Common stock, $0.01 par value, 150,000 shares authorized Shares,
issued and outstanding, of 27,571 and 27,076, respectively |
|
276 |
|
|
|
271 |
|
Preferred stock, $0.01 par value, 15,000 shares authorized, 0
shares issued and outstanding |
|
— |
|
|
|
— |
|
Additional paid in capital |
|
930,471 |
|
|
|
922,996 |
|
Accumulated deficit |
|
(452,589 |
) |
|
|
(440,814 |
) |
Accumulated other comprehensive loss |
|
(84,059 |
) |
|
|
(72,960 |
) |
Total Stockholders'
Equity |
|
394,099 |
|
|
|
409,493 |
|
Total Liabilities and
Stockholders' Equity |
$ |
789,786 |
|
|
$ |
1,205,345 |
|
|
|
|
|
|
ZIMVIE INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)(in
thousands) |
|
|
|
For the Six Months Ended June 30, |
|
2024 |
|
2023 |
Cash flows used in operating
activities: |
|
|
Net loss of ZimVie Inc. |
$ |
(11,775 |
) |
|
$ |
(53,341 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
16,917 |
|
|
|
64,588 |
|
Share-based compensation |
|
9,150 |
|
|
|
10,656 |
|
Deferred income tax provision |
|
(3,458 |
) |
|
|
(7,935 |
) |
Loss on disposal of fixed assets |
|
430 |
|
|
|
1,129 |
|
Other non-cash items |
|
2,370 |
|
|
|
1,380 |
|
Gain on sale of spine disposal group |
|
(22,427 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
Income taxes |
|
5,706 |
|
|
|
(16,023 |
) |
Accounts receivable |
|
(8,648 |
) |
|
|
1,271 |
|
Related party receivables |
|
— |
|
|
|
8,483 |
|
Inventories |
|
10,580 |
|
|
|
8,401 |
|
Prepaid expenses and other current assets |
|
(927 |
) |
|
|
(2,097 |
) |
Accounts payable and accrued liabilities |
|
(6,206 |
) |
|
|
(4,825 |
) |
Related party payable |
|
— |
|
|
|
(13,177 |
) |
Other assets and liabilities |
|
(187 |
) |
|
|
(5,450 |
) |
Net cash used in operating activities |
|
(8,475 |
) |
|
|
(6,940 |
) |
Cash flows provided by (used
in) investing activities: |
|
|
Additions to instruments |
|
(1,316 |
) |
|
|
(1,951 |
) |
Additions to other property, plant and equipment |
|
(2,093 |
) |
|
|
(3,154 |
) |
Proceeds from sale of spine disposal group, net of cash
disposed |
|
291,123 |
|
|
|
— |
|
Other investing activities |
|
(2,015 |
) |
|
|
(1,994 |
) |
Net cash provided by (used in) investing activities |
|
285,699 |
|
|
|
(7,099 |
) |
Cash flows used in financing
activities: |
|
|
Proceeds from debt |
|
— |
|
|
|
4,760 |
|
Payments on debt |
|
(275,000 |
) |
|
|
(15,279 |
) |
Payments related to tax withholding for share-based
compensation |
|
(1,670 |
) |
|
|
(419 |
) |
Proceeds from stock plan activity |
|
— |
|
|
|
1,167 |
|
Net cash used in financing activities |
|
(276,670 |
) |
|
|
(9,771 |
) |
Effect of exchange rates on
cash and cash equivalents |
|
(5,627 |
) |
|
|
421 |
|
Decrease in cash and cash equivalents |
|
(5,073 |
) |
|
|
(23,389 |
) |
Cash and cash equivalents,
beginning of year |
|
87,768 |
|
|
|
89,601 |
|
Cash and cash equivalents, end
of period |
$ |
82,695 |
|
|
$ |
66,212 |
|
Presentation includes cash of both continuing and discontinued
operations |
|
RECONCILIATION OF CONSTANT CURRENCY NET SALES:
Continuing Operations ($ in
thousands)
|
For the Three Months EndedJune
30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
Change (%) |
|
ForeignExchangeImpact |
|
ConstantCurrency %Change |
United States |
$ |
69,316 |
|
|
$ |
69,264 |
|
|
0.1 |
% |
|
0.0 |
% |
|
0.1 |
% |
International |
|
47,495 |
|
|
|
49,385 |
|
|
(3.8 |
%) |
|
(2.6 |
%) |
|
(1.2 |
%) |
Total Dental Third Party
Sales (Continuing Operations of ZimVie Inc.) |
|
116,811 |
|
|
|
118,649 |
|
|
(1.5 |
%) |
|
(1.1 |
%) |
|
(0.4 |
%) |
Related Party Net Sales |
|
- |
|
|
|
- |
|
|
0.0 |
% |
|
0.0 |
% |
|
0.0 |
% |
Total Dental Net Sales
(Continuing Operations of ZimVie Inc.) |
$ |
116,811 |
|
|
$ |
118,649 |
|
|
(1.5 |
%) |
|
(1.1 |
%) |
|
(0.4 |
%) |
|
|
|
|
|
|
|
|
|
|
For the Six Months EndedJune
30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
Change (%) |
|
ForeignExchangeImpact |
|
ConstantCurrency %Change |
United States |
$ |
137,064 |
|
|
$ |
139,171 |
|
|
(1.5 |
%) |
|
0.0 |
% |
|
(1.5 |
%) |
International |
|
97,942 |
|
|
|
99,648 |
|
|
(1.7 |
%) |
|
(1.6 |
%) |
|
(0.1 |
%) |
Total Dental Third Party
Sales (Continuing Operations of ZimVie Inc.) |
|
235,006 |
|
|
|
238,819 |
|
|
(1.6 |
%) |
|
(0.7 |
%) |
|
(0.9 |
%) |
Related Party Net Sales |
|
- |
|
|
|
236 |
|
|
(100.0 |
%) |
|
0.0 |
% |
|
(100.0 |
%) |
Total Dental Net Sales
(Continuing Operations of ZimVie Inc.) |
$ |
235,006 |
|
|
$ |
239,055 |
|
|
(1.7 |
%) |
|
(0.7 |
%) |
|
(1.0 |
%) |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF ADJUSTED NET INCOME AND DILUTED EPS:
Continuing Operations (in thousands, except per share
data)
|
For the Three Months Ended June 30, 2024 |
|
Net Sales |
|
Cost of products sold, excluding intangible asset
amortization |
|
Operating expenses, excluding cost of products
sold |
|
Operating (Loss) Income |
|
Net (Loss) Income |
|
Diluted EPS |
Continuing Operations of ZimVie Inc. |
$ |
116,811 |
|
|
$ |
(43,517 |
) |
|
$ |
(79,981 |
) |
|
$ |
(6,687 |
) |
|
$ |
(9,553 |
) |
|
$ |
(0.35 |
) |
Restructuring and other cost
reduction initiatives[1] |
|
- |
|
|
|
- |
|
|
|
398 |
|
|
|
398 |
|
|
|
398 |
|
|
|
0.01 |
|
Acquisition, integration,
divestiture and related[2] |
|
- |
|
|
|
- |
|
|
|
4,621 |
|
|
|
4,621 |
|
|
|
4,621 |
|
|
|
0.17 |
|
European union medical device
regulation[3] |
|
- |
|
|
|
- |
|
|
|
311 |
|
|
|
311 |
|
|
|
311 |
|
|
|
0.01 |
|
Other charges[4] |
|
- |
|
|
|
287 |
|
|
|
- |
|
|
|
287 |
|
|
|
287 |
|
|
|
0.01 |
|
Intangible asset
amortization |
|
- |
|
|
|
- |
|
|
|
5,999 |
|
|
|
5,999 |
|
|
|
5,999 |
|
|
|
0.22 |
|
Tax effect of above
adjustments & other[5] |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,517 |
|
|
|
0.06 |
|
Adjusted |
$ |
116,811 |
|
|
$ |
(43,230 |
) |
|
$ |
(68,652 |
) |
|
$ |
4,929 |
|
|
$ |
3,580 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2023 |
|
Net Sales |
|
Cost of products sold, excluding intangible asset
amortization |
|
Operating expenses, excluding cost of products
sold |
|
Operating (Loss) Income |
|
Net (Loss) Income |
|
Diluted EPS |
Continuing Operations of ZimVie Inc. |
$ |
118,649 |
|
|
$ |
(44,465 |
) |
|
$ |
(78,572 |
) |
|
$ |
(4,388 |
) |
|
$ |
(5,910 |
) |
|
$ |
(0.22 |
) |
Restructuring and other cost
reduction initiatives[1] |
|
- |
|
|
|
- |
|
|
|
1,365 |
|
|
|
1,365 |
|
|
|
1,365 |
|
|
|
0.05 |
|
Acquisition, integration,
divestiture and related[2] |
|
- |
|
|
|
- |
|
|
|
1,370 |
|
|
|
1,370 |
|
|
|
1,370 |
|
|
|
0.05 |
|
European union medical device
regulation[3] |
|
- |
|
|
|
- |
|
|
|
729 |
|
|
|
729 |
|
|
|
729 |
|
|
|
0.03 |
|
Intangible asset
amortization |
|
- |
|
|
|
- |
|
|
|
6,806 |
|
|
|
6,806 |
|
|
|
6,806 |
|
|
|
0.26 |
|
Other charges[4] |
|
- |
|
|
|
287 |
|
|
|
- |
|
|
|
287 |
|
|
|
287 |
|
|
|
0.01 |
|
Spin-related share-based
compensation expense[6] |
|
- |
|
|
|
- |
|
|
|
800 |
|
|
|
800 |
|
|
|
800 |
|
|
|
0.03 |
|
Tax effect of above
adjustments & other[5] |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,263 |
) |
|
|
(0.17 |
) |
Adjusted |
$ |
118,649 |
|
|
$ |
(44,178 |
) |
|
$ |
(67,502 |
) |
|
$ |
6,969 |
|
|
$ |
1,184 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
[1] Restructuring
activities to better position the organization and the expenses
incurred were primarily related to severance and professional
fees.[2] Acquisition, integration, divestiture and related expenses
for the three months ended June 30, 2024 include professional
services fees ($3.0 million), fair value adjustment of the seller
note related to the sale of the spine segment ($1.2 million) and
stranded costs ($0.4 million) related to sale of the spine segment.
Acquisition, integration, divestiture and related expenses for the
three months ended June 30, 2023 include professional services fees
($0.8 million) and technology costs ($0.3 million) incurred to
prepare for and complete the separation from our former parent.[3]
Expenses incurred for initial compliance with the European Union
(“EU”) Medical Device Regulation (“MDR”) for previously-approved
products.[4] Inventory write-offs resulting from restructuring
activities and property, plant, and equipment step-up amortization
from prior acquisitions.[5] Reflects the tax effect of the
adjustments from reported to adjusted, as well as an adjustment for
management’s expectation of ZimVie’s statutory tax rate based on
current tax law and adjusted pre-tax income.[6] Spin-related
share-based compensation expense from grants provided due to the
successful separation from Zimmer Biomet. |
|
RECONCILIATION OF ADJUSTED EBITDA: Continuing Operations
($ in thousands)
|
For the Three MonthsEnded June 30, |
|
For the Six MonthsEnded June
30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net Sales |
|
|
|
|
|
|
|
Total Third Party Sales |
$ |
116,811 |
|
|
$ |
118,649 |
|
|
$ |
235,006 |
|
|
$ |
238,819 |
|
Related Party Sales |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
236 |
|
Total Net
Sales |
$ |
116,811 |
|
|
$ |
118,649 |
|
|
$ |
235,006 |
|
|
$ |
239,055 |
|
Net Loss |
$ |
(9,553 |
) |
|
$ |
(5,910 |
) |
|
$ |
(21,114 |
) |
|
$ |
(22,303 |
) |
Interest expense, net |
|
3,101 |
|
|
|
5,199 |
|
|
|
7,468 |
|
|
|
10,273 |
|
Income tax provision (benefit) |
|
2,775 |
|
|
|
(3,847 |
) |
|
|
6,849 |
|
|
|
1,230 |
|
Depreciation and amortization |
|
8,463 |
|
|
|
9,014 |
|
|
|
16,893 |
|
|
|
17,642 |
|
EBITDA |
|
4,786 |
|
|
|
4,456 |
|
|
|
10,096 |
|
|
|
6,842 |
|
Share-based compensation |
|
5,677 |
|
|
|
5,195 |
|
|
|
8,437 |
|
|
|
9,419 |
|
Restructuring and other cost reduction initiatives[1] |
|
398 |
|
|
|
1,365 |
|
|
|
2,977 |
|
|
|
2,538 |
|
Acquisition, integration, divestiture and related[2] |
|
4,621 |
|
|
|
1,370 |
|
|
|
5,657 |
|
|
|
2,711 |
|
Related party gain |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5 |
) |
European union medical device regulation[3] |
|
311 |
|
|
|
729 |
|
|
|
712 |
|
|
|
1,931 |
|
Other charges[4] |
|
287 |
|
|
|
287 |
|
|
|
573 |
|
|
|
571 |
|
Adjusted
EBITDA |
$ |
16,080 |
|
|
$ |
13,402 |
|
|
$ |
28,452 |
|
|
$ |
24,007 |
|
Net Loss Margin[5] |
|
-8.2 |
% |
|
|
-5.0 |
% |
|
|
-9.0 |
% |
|
|
-9.3 |
% |
Adjusted EBITDA Margin[6] |
|
13.8 |
% |
|
|
11.3 |
% |
|
|
12.1 |
% |
|
|
10.1 |
% |
[1] Restructuring activities
to better position our organization for future success based on the
current business environment and sale of the spine business.[2]
Acquisition, integration, divestiture and related expenses for the
three and six months ended June 30, 2024 include professional
services fees ($3.0 million and $4.0 million, respectively), fair
value adjustment of the seller note related to the sale of the
spine segment ($1.2 million and $1.2 million, respectively) and
stranded costs ($0.4 million and $0.4 million, respectively)
related to sale of the spine segment. Acquisition, integration,
divestiture and related expenses for the three and six months ended
June 30, 2023 include professional services fees ($0.8 million and
$1.6 million, respectively) and technology costs ($0.3 million and
$0.7 million, respectively) incurred to prepare for and complete
the separation from our former parent.[3] Expenses incurred for
initial compliance with the EU MDR for previously-approved
products.[4] Inventory write-offs resulting from restructuring
activities and property, plant, and equipment step-up amortization
from prior acquisitions.[5] Net Loss Margin is calculated as Net
Loss divided by third party net sales for the applicable period.[6]
Adjusted EBITDA Margin is Adjusted EBITDA divided by third party
net sales for the applicable period. |
|
RECONCILIATION OF COST OF PRODUCTS SOLD (excluding
intangible asset amortization), R&D and SG&A: Continuing
Operations ($ in thousands)
|
Three MonthsEnded June 30, |
|
Percentage of Third Party Net Sales |
|
Six MonthsEnded June 30, |
|
Percentage of Third Party Net Sales |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Cost of products sold, excluding intangible asset
amortization |
$ |
(43,517 |
) |
|
$ |
(44,465 |
) |
|
(37.3 |
%) |
|
(37.5 |
%) |
|
$ |
(87,775 |
) |
|
$ |
(87,340 |
) |
|
(37.4 |
%) |
|
(36.6 |
%) |
Other charges[1] |
|
287 |
|
|
|
287 |
|
|
0.3 |
% |
|
0.3 |
% |
|
|
573 |
|
|
|
571 |
|
|
0.3 |
% |
|
0.3 |
% |
Adjusted cost of
products sold, excluding intangible asset
amortization |
$ |
(43,230 |
) |
|
$ |
(44,178 |
) |
|
(37.0 |
%) |
|
(37.2 |
%) |
|
$ |
(87,202 |
) |
|
$ |
(86,769 |
) |
|
(37.1 |
%) |
|
(36.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Research and
development |
$ |
(6,579 |
) |
|
$ |
(6,458 |
) |
|
(5.6 |
%) |
|
(5.4 |
%) |
|
$ |
(13,359 |
) |
|
$ |
(13,688 |
) |
|
(5.7 |
%) |
|
(5.7 |
%) |
European union medical device regulation[2] |
|
311 |
|
|
|
729 |
|
|
0.2 |
% |
|
0.5 |
% |
|
|
712 |
|
|
|
1,931 |
|
|
0.3 |
% |
|
0.7 |
% |
Spin-related share-based compensation expense[3] |
|
- |
|
|
|
80 |
|
|
0.0 |
% |
|
0.1 |
% |
|
|
- |
|
|
|
160 |
|
|
0.0 |
% |
|
0.1 |
% |
Adjusted research and
development |
$ |
(6,268 |
) |
|
$ |
(5,649 |
) |
|
(5.4 |
%) |
|
(4.8 |
%) |
|
$ |
(12,647 |
) |
|
$ |
(11,597 |
) |
|
(5.4 |
%) |
|
(4.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Selling, general and
administrative |
$ |
(62,384 |
) |
|
$ |
(62,573 |
) |
|
(53.4 |
%) |
|
(52.7 |
%) |
|
$ |
(122,714 |
) |
|
$ |
(129,547 |
) |
|
(52.2 |
%) |
|
(54.2 |
%) |
Spin-related share-based compensation expense[3] |
|
- |
|
|
|
720 |
|
|
0.0 |
% |
|
0.6 |
% |
|
|
- |
|
|
|
1,440 |
|
|
0.0 |
% |
|
0.6 |
% |
Adjusted selling,
general and administrative |
$ |
(62,384 |
) |
|
$ |
(61,853 |
) |
|
(53.4 |
%) |
|
(52.1 |
%) |
|
$ |
(122,714 |
) |
|
$ |
(128,107 |
) |
|
(52.2 |
%) |
|
(53.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Inventory
write-offs resulting from restructuring activities and property,
plant, and equipment step-up amortization from prior
acquisitions.[2] Expenses incurred for initial compliance with the
EU MDR for previously-approved products.[3] Spin-related
share-based compensation expense from grants provided due to the
successful separation from Zimmer Biomet. |
|
ZimVie (NASDAQ:ZIMV)
Gráfica de Acción Histórica
De Jul 2024 a Ago 2024
ZimVie (NASDAQ:ZIMV)
Gráfica de Acción Histórica
De Ago 2023 a Ago 2024