附表99.1
zimvie inc报告2024年第三季度财务业绩
| • | 来自持续营运的第三方净销售额为103.2百万美元 |
| • | 持续营运的净亏损为（3.0）百万美元； 净亏损率为（3.0%） |
| • | 调整后的税前利润减除折旧及摊销后的费用[1] 持续营运的营业收入为13.1百万美元; 调整后的EBITDA[1] 边际值为12.7% |
| • | 持续营运的GAAP 摊薄后每股收益为（0.11），调整后的摊薄后每股收益为0.12 |
佛罗里达州帕姆海滩花园，2024年10月30日（全球新闻社）- 全球牙科市场的生命科学领导者zimvie inc（纳斯达克：ZIMV）今天公布了截至2024年9月30日季度的财务结果。管理层将于今天的东部时间下午4:30举行相应的电话会议，时间为2024年10月30日。
“在第三季度，我们看到了北美最大市场收入增长的改善，实现了制造效率提升，并看到我们数码产品的采用增加，” ZimVie Inc总裁兼首席执行官Vafa Jamali说，“除了我们继续专注于推动业务改善外，我们还在销售团队、研发倡议和培训计划上进行了增量投资，旨在确保zimvie inc为未来扩张做好充分准备。”
2024年第三季度财务结果：持续营运
2024年第三季度第三方净销售额为1.032亿美元，按报告基准下降了2.0%，按恒定货币计算下降了2.2%，较2023年第三季度有所下降。[1]与2023年第三季度相比。
2024年第三季度净亏损为300万美元，较2023年第三季度的净亏损1020万美元有所改善。2024年第三季度净亏损率占第三方净销售的3.0%，较2023年第三季度的净亏损率9.7%改善了670个基点。
净利润调整后[1] 2024年第三季度净利润为330万美元，较2023年第三季度增加210万美元。
基本和稀释后的每股收益分别为$(0.11)及调整后的摊薄后每股收益。[1]2024年第三季度，基本和调整后的摊薄后每股收益均为$0.12。基本和调整后的摊薄后每股收益的加权平均股数均为27.6百万。
调整后的税前利润减除折旧及摊销后的费用[1] 2024年第三季度营收为$13.1百万美元，占第三方净销售额的12.7%，较2023年第三季度增加$0.9百万美元，增幅为110个基点。
更新全年2024年持续营运财务指引：
| 预计截至2024年12月31日的全年。 |
指导方针 | |||
| 净销售额 |
$ | 450M to $455M | ||
| 调整后的税前利润减除折旧及摊销后的费用[2] |
$ | 6000万to $62M | ||
| 调整后每股收益[2] |
$ | 0.57 to $0.62 | ||
| [1] | This is a 非核心概念（non-GAAP） financial measure. Refer to “Note on 非美国通用会计准则 财务指标及本公告中的协调资料，请参考以获得更多资讯。 |
| [2] | 这是一个财务指标，若要进行与最直接可比GAAP财务指标的协调需要过多不合理的努力。请参阅本公告中的“前瞻性财务指标”。 非核心概念（non-GAAP） 财务指标，若要进行与最直接可比GAAP财务指标的协调需要过多不合理的努力。请参阅本公告中的“前瞻性财务指标”，其中标示了需要不合理努力才能取得的资讯并提供额外资讯。 非美国通用会计准则 这个前瞻性 非核心概念（non-GAAP） 财务指标可能与相应的GAAP财务指标有显著不同。 |
看涨会议通话
ZimVie将于2024年10月30日下午4:30 Et举行一次电话会议，讨论其2024年第三季度的财务结果。欲参加此电话会议， 请在线注册 https://investor.zimvie.com/events-presentations/event-calendar。本网站还将提供现场和存档的音频网路转播。
有关ZimVie
ZimVie是全球牙科市场的生命科学领军企业，致力于开发、制造和交付全面的产品和解决方案组合，旨在支持牙科牙齿替换和修复程序。ZimVie总部位于佛罗里达州棕榈滩花园，并在全球范围内设有其他设施，致力于通过提供可信赖的牙科植体、生物材料和数字工作流解决方案等全面的牙齿替换解决方案，改善微笑、功能和日常生活中的信心。作为此领域的全球领袖，ZimVie致力于推动恢复日常生活的临床科学和技术基础。有关ZimVie的更多信息，请访问我们的网站www.ZimVie.com。在Twitter、Facebook、LinkedIn或Instagram关注 @ZimVie。
关于 非美国通用会计准则 未经审计的财务数据
本新闻稿包含 非核心概念（non-GAAP） 与符合美国通用会计准则（“GAAP”）计算的财务指标不同的财务指标。 这些财务指标可能与其他公司报告的类似指标不可比拟，应视为 依照GAAP准备的其他指标之外的参考，而非替代或优于。 非核心概念（non-GAAP） 调整后的EBITDA是
调整后的EBITDA是 非核心概念（non-GAAP） 本公告提供的财务指标涵盖某些特定时期，通过从符合GAAP基础上的持续业务净利润中排除某些项目来计算，详情请参见稍后在本新闻稿中提供的对帐清单。调整后EBITDA利润率是指调整后EBITDA除以相应时期持续业务的第三方净销售额。
本公告中的销售变化信息以GAAP（报告）基础和恒常货币基础呈现。恒常货币百分比变化不包括外汇汇率的影响，是通过以相同预定汇率将当前和前期持续业务销售金额进行转换来计算。然后使用转换后的结果来判断年度百分比增加或减少。
本公告中的净利润（损失）和每股稀释盈利（损失）以GAAP（报告）基础和调整基础呈现。调整后净利润（损失）和调整后每股稀释盈利（损失）不包括某些项目的影响，详情请参见稍后在本新闻稿中提供的这些指标与最相应GAAP财务指标的对帐清单。非核心概念（non-GAAP） 将这些财务指标与最相应的GAAP财务指标对帐的调和表列在本新闻稿中。
这些指标与最相应的GAAP财务指标的对帐清单已包含在本新闻稿中。 非核心概念（non-GAAP） 这些指标与最相应的GAAP财务指标的对帐清单已包含在本新闻稿中。
Management uses 非核心概念（non-GAAP） financial measures internally to evaluate the performance of the business. Additionally, management believes these 非核心概念（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 这些财务措施与非财务措施应被视作GAAP准备的财务信息的补充，并非其替代品。 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 非核心概念（non-GAAP） 措施可以通过让读者更好地识别可能通过这些排除在外的项目而被掩盖或扭曲的营运趋势，从而评估营运结果和趋势分析。 非核心概念（non-GAAP） 措施。
展望。 非美国通用会计准则 未经审计的财务数据
本新闻稿还包括某些前瞻性。非核心概念（non-GAAP） 截至2024年12月31日的财务措施。我们根据内部预测计算前瞻性 非核心概念（non-GAAP） 财务措施是基于省略了在GAAP财务措施中会包含的某些金额的内部预测。我们并未提供这些前瞻性 非核心概念（non-GAAP） 财务措施与最直接可比的前瞻性GAAP财务措施之间的量化对比，因为被排除的项目在未来基础上无法合理地获得。例如，由于管理层的计划可能会变化，某些交易的时间很难预测。此外，公司认为这样的对比将意味著一种可能会让投资者困惑的精确度和确定性。很可能这些前瞻性 非核心概念（non-GAAP） 财务措施与相应的GAAP财务措施有可能存在重大差异。
2
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:
ZimVie
Grace Flowers • Grace.Flowers@ZimVie.com
(561) 319-6130
Investor Contact Information:
Gilmartin Group LLC
Marissa Bych • Marissa@gilmartinir.com
3
ZIMVIE INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
| For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
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| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Sales |
||||||||||||||||
| Third party, net |
$ | 103,222 | $ | 105,311 | $ | 338,228 | $ | 344,131 | ||||||||
| Related party, net |
— | — | — | 236 | ||||||||||||
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| Total Net Sales |
103,222 | 105,311 | 338,228 | 344,367 | ||||||||||||
| Cost of products sold, excluding intangible asset amortization |
(35,820 | ) | (36,907 | ) | (123,596 | ) | (124,246 | ) | ||||||||
| Related party cost of products sold, excluding intangible asset amortization |
— | — | — | (231 | ) | |||||||||||
| Intangible asset amortization |
(6,037 | ) | (6,778 | ) | (18,059 | ) | (20,378 | ) | ||||||||
| Research and development |
(6,926 | ) | (5,677 | ) | (20,285 | ) | (19,365 | ) | ||||||||
| Selling, general and administrative |
(57,313 | ) | (56,505 | ) | (180,024 | ) | (186,054 | ) | ||||||||
| Restructuring and other cost reduction initiatives |
(687 | ) | (1,391 | ) | (3,664 | ) | (3,929 | ) | ||||||||
| Acquisition, integration, divestiture and related |
(1,276 | ) | (1,936 | ) | (6,934 | ) | (4,647 | ) | ||||||||
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| Operating expenses |
(108,059 | ) | (109,194 | ) | (352,562 | ) | (358,850 | ) | ||||||||
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| Operating Loss |
(4,837 | ) | (3,883 | ) | (14,334 | ) | (14,483 | ) | ||||||||
| Other income (expense), net |
3,462 | (990 | ) | 6,161 | (1,189 | ) | ||||||||||
| Interest income |
2,466 | 569 | 4,938 | 1,929 | ||||||||||||
| Interest expense |
(4,827 | ) | (5,553 | ) | (14,766 | ) | (17,187 | ) | ||||||||
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| Loss from continuing operations before income taxes |
(3,736 | ) | (9,857 | ) | (18,001 | ) | (30,930 | ) | ||||||||
| Benefit (provision) for income taxes from continuing operations |
688 | (325 | ) | (6,161 | ) | (1,555 | ) | |||||||||
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| Net Loss from Continuing Operations of ZimVie Inc. |
(3,048 | ) | (10,182 | ) | (24,162 | ) | (32,485 | ) | ||||||||
| Earnings (loss) from discontinued operations, net of tax |
764 | 5,093 | 10,103 | (25,945 | ) | |||||||||||
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| Net Loss of ZimVie Inc. |
$ | (2,284 | ) | $ | (5,089 | ) | $ | (14,059 | ) | $ | (58,430 | ) | ||||
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| Basic (Loss) Earnings Per Common Share: |
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| Continuing operations |
$ | (0.11 | ) | $ | (0.38 | ) | $ | (0.88 | ) | $ | (1.23 | ) | ||||
| Discontinued operations |
0.03 | 0.19 | 0.37 | (0.98 | ) | |||||||||||
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| Net Loss |
$ | (0.08 | ) | $ | (0.19 | ) | $ | (0.51 | ) | $ | (2.21 | ) | ||||
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| Diluted (Loss) Earnings Per Common Share |
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| Continuing operations |
$ | (0.11 | ) | $ | (0.38 | ) | $ | (0.88 | ) | $ | (1.23 | ) | ||||
| Discontinued operations |
0.03 | 0.19 | 0.37 | (0.98 | ) | |||||||||||
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| Net Loss |
$ | (0.08 | ) | $ | (0.19 | ) | $ | (0.51 | ) | $ | (2.21 | ) | ||||
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4
ZIMVIE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data)
| As of | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS |
||||||||
| Current Assets: |
||||||||
| Cash and cash equivalents |
$ | 66,808 | $ | 71,511 | ||||
| Accounts receivable, less allowance for credit losses of $2,392 and $3,222 respectively |
69,581 | 65,168 | ||||||
| Inventories |
77,087 | 79,600 | ||||||
| Prepaid expenses and other current assets |
24,162 | 23,825 | ||||||
| Current assets of discontinued operations |
28,036 | 242,773 | ||||||
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| Total Current Assets |
265,674 | 482,877 | ||||||
| Property, plant and equipment, net of accumulated depreciation of $131,717 and $126,624, respectively |
49,614 | 54,167 | ||||||
| Goodwill |
262,767 | 262,111 | ||||||
| Intangible assets, net |
98,251 | 114,354 | ||||||
| Note receivable |
63,072 | — | ||||||
| Other assets |
31,271 | 26,747 | ||||||
| Noncurrent assets of discontinued operations |
12,299 | 265,089 | ||||||
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| Total Assets |
$ | 782,948 | $ | 1,205,345 | ||||
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| LIABILITIES AND EQUITY |
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| Current Liabilities: |
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| Accounts payable |
$ | 27,403 | $ | 27,785 | ||||
| Income taxes payable |
2,440 | 2,863 | ||||||
| Other current liabilities |
58,363 | 67,108 | ||||||
| Current liabilities of discontinued operations |
48,432 | 75,858 | ||||||
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| Total Current Liabilities |
136,638 | 173,614 | ||||||
| Deferred income taxes |
276 | 265 | ||||||
| Lease liability |
9,477 | 9,080 | ||||||
| Other long-term liabilities |
9,269 | 9,055 | ||||||
| Non-current portion of debt |
220,281 | 508,797 | ||||||
| Noncurrent liabilities of discontinued operations |
369 | 95,041 | ||||||
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| Total Liabilities |
376,310 | 795,852 | ||||||
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| Commitments and Contingencies |
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| Stockholders’ Equity: |
||||||||
| Common stock, $0.01 par value, 150,000 shares authorized Shares, issued and outstanding, of 27,587 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 |
933,735 | 922,996 | ||||||
| Accumulated deficit |
(454,873 | ) | (440,814 | ) | ||||
| Accumulated other comprehensive loss |
(72,500 | ) | (72,960 | ) | ||||
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| Total Stockholders’ Equity |
406,638 | 409,493 | ||||||
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| Total Liabilities and Stockholders’ Equity |
$ | 782,948 | $ | 1,205,345 | ||||
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5
ZIMVIE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| For the Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows (used in) provided by operating activities: |
||||||||
| Net loss of ZimVie Inc. |
$ | (14,059 | ) | $ | (58,430 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
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| Depreciation and amortization |
25,697 | 95,088 | ||||||
| Share-based compensation |
12,473 | 16,129 | ||||||
| Deferred income tax provision |
(4,201 | ) | (11,967 | ) | ||||
| Loss on disposal of fixed assets |
418 | 2,411 | ||||||
| Other non-cash items |
2,818 | 2,762 | ||||||
| Gain on sale of spine disposal group |
(22,427 | ) | — | |||||
| Changes in operating assets and liabilities: |
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| Income taxes |
2,548 | (34,061 | ) | |||||
| Accounts receivable |
(5,742 | ) | 13,019 | |||||
| Related party receivables |
— | 8,483 | ||||||
| Inventories |
7,139 | 18,246 | ||||||
| Prepaid expenses and other current assets |
(2,447 | ) | 4,187 | |||||
| Accounts payable and accrued liabilities |
(6,314 | ) | (18,216 | ) | ||||
| Related party payable |
— | (13,177 | ) | |||||
| Other assets and liabilities |
(3,179 | ) | (8,780 | ) | ||||
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| Net cash (used in) provided by operating activities |
(7,276 | ) | 15,694 | |||||
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| Cash flows provided by (used in) investing activities: |
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| Additions to instruments |
(1,316 | ) | (4,341 | ) | ||||
| Additions to other property, plant and equipment |
(2,677 | ) | (5,340 | ) | ||||
| Proceeds from sale of spine disposal group, net of cash disposed |
291,123 | — | ||||||
| Other investing activities |
(1,961 | ) | (2,762 | ) | ||||
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| Net cash provided by (used in) investing activities |
285,169 | (12,443 | ) | |||||
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| Cash flows used in financing activities: |
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| Proceeds from debt |
— | 4,760 | ||||||
| Payments on debt |
(290,000 | ) | (22,291 | ) | ||||
| Business combination contingent consideration payments |
(3,712 | ) | — | |||||
| Payments related to tax withholding for share-based compensation |
(1,729 | ) | (419 | ) | ||||
| Proceeds from stock plan activity |
— | 1,167 | ||||||
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|
|
|||||
| Net cash used in financing activities |
(295,441 | ) | (16,783 | ) | ||||
|
|
|
|
|
|||||
| Effect of exchange rates on cash and cash equivalents |
(2,124 | ) | (620 | ) | ||||
|
|
|
|
|
|||||
| Decrease in cash and cash equivalents |
(19,672 | ) | (14,152 | ) | ||||
| Cash and cash equivalents, beginning of year |
87,768 | 89,601 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents, end of period |
$ | 68,096 | $ | 75,449 | ||||
|
|
|
|
|
|||||
| Presentation includes cash of both continuing and discontinued operations |
| |||||||
6
RECONCILIATION OF CONSTANT CURRENCY NET SALES
Continuing Operations ($ in thousands)
| For the Three Months Ended September 30, |
||||||||||||||||||||
| 2024 | 2023 | Change (%) | Foreign Exchange Impact |
Constant Currency % Change |
||||||||||||||||
| United States |
$ | 65,350 | $ | 65,003 | 0.5 | % | 0.0 | % | 0.5 | % | ||||||||||
| International |
37,872 | 40,308 | (6.0 | %) | 0.6 | % | (6.6 | %) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Dental Third Party Sales |
103,222 | 105,311 | (2.0 | %) | 0.2 | % | (2.2 | %) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Related Party Net Sales |
— | — | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Dental Net Sales |
$ | 103,222 | $ | 105,311 | (2.0 | %) | 0.2 | % | (2.2 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| For the Nine Months Ended September 30, |
||||||||||||||||||||
| 2024 | 2023 | Change (%) | Foreign Exchange Impact |
Constant Currency % Change |
||||||||||||||||
| United States |
$ | 202,414 | $ | 204,173 | (0.9 | %) | 0.0 | % | (0.9 | %) | ||||||||||
| International |
135,814 | 139,958 | (3.0 | %) | (1.0 | %) | (2.0 | %) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Dental Third Party Sales |
338,228 | 344,131 | (1.7 | %) | (0.4 | %) | (1.3 | %) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Related Party Net Sales |
— | 236 | (100.0 | %) | 0.0 | % | (100.0 | %) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Dental Net Sales |
$ | 338,228 | $ | 344,367 | (1.8 | %) | (0.4 | %) | (1.4 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
7
RECONCILIATION OF ADJUSTED NET INCOME AND DILUTED EPS
Continuing Operations (in thousands, except per share data)
| For the Three Months Ended September 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 | |||||||||||||||||||
| Reported |
$ | 103,222 | $ | (35,820 | ) | $ | (72,239 | ) | $ | (4,837 | ) | $ | (3,048 | ) | $ | (0.11 | ) | |||||||
| Restructuring and other cost reduction initiatives [1] |
— | — | 687 | 687 | 687 | 0.02 | ||||||||||||||||||
| Acquisition, integration, divestiture and related [2] |
— | — | 1,276 | 1,276 | 1,276 | 0.05 | ||||||||||||||||||
| European union medical device regulation [3] |
— | — | 406 | 406 | 406 | 0.01 | ||||||||||||||||||
| Other charges [4] |
— | 287 | — | 287 | 287 | 0.01 | ||||||||||||||||||
| Intangible asset amortization |
— | — | 6,037 | 6,037 | 6,037 | 0.22 | ||||||||||||||||||
| Share-based compensation modification [5] |
— | — | (521 | ) | (521 | ) | (521 | ) | (0.02 | ) | ||||||||||||||
| Tax effect of above adjustments & other [6] |
— | — | — | — | (1,841 | ) | (0.06 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted |
$ | 103,222 | $ | (35,533 | ) | $ | (64,354 | ) | $ | 3,335 | $ | 3,283 | $ | 0.12 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| For the Three Months Ended September 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 | |||||||||||||||||||
| Reported |
$ | 105,311 | $ | (36,907 | ) | $ | (72,287 | ) | $ | (3,883 | ) | $ | (10,182 | ) | $ | (0.38 | ) | |||||||
| Restructuring and other cost reduction initiatives [1] |
— | — | 1,391 | 1,391 | 1,391 | 0.05 | ||||||||||||||||||
| Acquisition, integration, divestiture and related [2] |
— | — | 1,936 | 1,936 | 1,936 | 0.07 | ||||||||||||||||||
| European union medical device regulation [3] |
— | — | 295 | 295 | 295 | 0.01 | ||||||||||||||||||
| Intangible asset amortization |
— | — | 6,778 | 6,778 | 6,778 | 0.26 | ||||||||||||||||||
| Other charges [4] |
— | 293 | — | 293 | 293 | 0.01 | ||||||||||||||||||
| Spin-related share-based compensation expense [7] |
— | — | 800 | 800 | 800 | 0.03 | ||||||||||||||||||
| Tax effect of above adjustments & other [6] |
— | — | — | — | (100 | ) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted |
$ | 105,311 | $ | (36,614 | ) | $ | (61,087 | ) | $ | 7,610 | $ | 1,211 | $ | 0.05 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| [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 September 30, 2024 include professional services fees ($1.9 million) and stranded costs ($0.4 million) related to sale of the spine segment, partially offset by a fair value adjustment benefit of the seller note related to the sale of the spine segment ($1.2 million). Acquisition, integration, divestiture and related expenses for the three months ended September 30, 2023 include professional services fees ($1.6 million) and rebranding costs ($0.3 million) related to the separation from our former parent. |
| [3] | Expenses incurred for initial compliance with the European Union (“EU”) Medical Device Regulation (“MDR”) for previously-approved products. |
| [4] | Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions. |
| [5] | Net impact to share-based compensation expense of converting outstanding restricted stock units (“RSUs”) with performance-based metrics based on the consolidated results of the spine and dental segments into time-based RSUs following the sale of the spine segment. |
8
| [6] | Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income. |
| [7] | Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet. |
9
RECONCILIATION OF ADJUSTED EBITDA:
Continuing Operations ($ in thousands)
| For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Sales |
||||||||||||||||
| Total Third Party Sales |
$ | 103,222 | $ | 105,311 | $ | 338,228 | $ | 344,131 | ||||||||
| Related Party Sales |
— | — | — | 236 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Net Sales |
$ | 103,222 | $ | 105,311 | $ | 338,228 | $ | 344,367 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Loss |
$ | (3,048) | $ | (10,182 | ) | $ | (24,162 | ) | $ | (32,485 | ) | |||||
| Interest expense, net |
2,361 | 4,984 | 9,828 | 15,258 | ||||||||||||
| Income tax (benefit) provision |
(688 | ) | 325 | 6,161 | 1,555 | |||||||||||
| Depreciation and amortization |
8,490 | 8,415 | 25,383 | 26,057 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
7,115 | 3,542 | 17,210 | 10,385 | ||||||||||||
| Share-based compensation |
3,323 | 4,741 | 11,761 | 14,159 | ||||||||||||
| Restructuring and other cost reduction initiatives [1] |
687 | 1,391 | 3,664 | 3,929 | ||||||||||||
| Acquisition, integration, divestiture and related [2] |
1,276 | 1,936 | 6,934 | 4,647 | ||||||||||||
| Related party gain |
— | — | — | (5 | ) | |||||||||||
| European Union medical device regulation [3] |
406 | 295 | 1,118 | 2,227 | ||||||||||||
| Other charges [4] |
287 | 293 | 860 | 864 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ | 13,094 | $ | 12,198 | $ | 41,547 | $ | 36,206 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Loss Margin [5] |
-3.0 | % | -9.7 | % | -7.1 | % | -9.4 | % | ||||||||
| Adjusted EBITDA Margin [6] |
12.7 | % | 11.6 | % | 12.3 | % | 10.5 | % | ||||||||
| [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 nine months ended September 30, 2024 include professional services fees ($1.9 million and $5.8 million, respectively) and stranded costs ($0.4 million and $0.9 million, respectively) related to sale of the spine segment, partially offset by fair value adjustment benefit of the seller note related to the sale of the spine segment ($1.2 million and $0, respectively). Acquisition, integration, divestiture and related expenses for the three and nine months ended September 30, 2023 include professional services fees ($1.6 million and $3.2 million, respectively), rebranding costs related to the separation from our former parent ($0.3 million and $0.5 million, respectively) and technology costs ($0 and $0.7 million, respectively) incurred to prepare for and complete the separation from our former parent. |
| [3] | Expenses incurred for initial compliance with the EU MDR for previously-approved products. |
| [4] | Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions. |
| [5] | Net Loss Margin is calculated as Net Loss divided by third party net sales for the applicable period. |
| [6] | Adjusted EBITDA Margin is Adjusted EBITDA divided by third party net sales for the applicable period. |
10
RECONCILIATION OF COST OF PRODUCTS SOLD (excluding intangible asset amortization), R&D and SG&A:
Continuing Operations ($ in thousands)
| Three Months Ended September 30, |
Percentage of Third Party Net Sales |
Nine Months Ended September 30, |
Percentage of Third Party Net Sales |
|||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
| Cost of products sold, excluding intangible asset amortization |
$ | (35,820 | ) | $ | (36,907 | ) | (34.7 | %) | (35.0 | %) | $ | (123,596 | ) | $ | (124,246 | ) | (36.5 | %) | (36.1 | %) | ||||||||||||
| Other charges [1] |
287 | 293 | 0.3 | % | 0.2 | % | 860 | 864 | 0.2 | % | 0.2 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted cost of products sold, excluding intangible asset amortization |
$ | (35,533 | ) | $ | (36,614 | ) | (34.4 | %) | (34.8 | %) | $ | (122,736 | ) | $ | (123,382 | ) | (36.3 | %) | (35.9 | %) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
| Research and development |
$ | (6,926 | ) | $ | (5,677 | ) | (6.7 | %) | (5.4 | %) | $ | (20,285 | ) | $ | (19,365 | ) | (6.0 | %) | (5.6 | %) | ||||||||||||
| European union medical device regulation [2] |
406 | 295 | 0.3 | % | 0.3 | % | 1,118 | 2,227 | 0.3 | % | 0.6 | % | ||||||||||||||||||||
| Share-based compensation modification [3] |
(45 | ) | — | 0.0 | % | 0.0 | % | (45 | ) | — | 0.0 | % | 0.0 | % | ||||||||||||||||||
| Spin-related share-based compensation expense [4] |
— | 80 | 0.0 | % | 0.1 | % | — | 240 | 0.0 | % | 0.1 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted research and development |
$ | (6,565 | ) | $ | (5,302 | ) | (6.4 | %) | (5.0 | %) | $ | (19,212 | ) | $ | (16,898 | ) | (5.7 | %) | (4.9 | %) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
2024 |
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
| Selling, general and administrative |
$ | (57,313 | ) | $ | (56,505 | ) | (55.5 | %) | (53.7 | %) | $ | (180,024 | ) | $ | (186,054 | ) | (53.2 | %) | (54.1 | %) | ||||||||||||
| Share-based compensation modification [3] |
(476 | ) | — | (0.5 | %) | 0.0 | % | (476 | ) | — | (0.2 | %) | 0.0 | % | ||||||||||||||||||
| Spin-related share-based compensation expense [4] |
— | 720 | 0.0 | % | 0.7 | % | — | 2,160 | 0.0 | % | 0.7 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted selling, general and administrative |
$ | (57,789 | ) | $ | (55,785 | ) | (56.0 | %) | (53.0 | %) | $ | (180,500 | ) | $ | (183,894 | ) | (53.4 | %) | (53.4 | %) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| [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] | Net impact to share-based compensation expense of converting outstanding RSUs with performance-based metrics based on the consolidated results of the spine and dental segments to time-based RSUs following the sale of the spine segment. |
| [4] | Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet. |
11