附表99.1
zimvie inc報告2024年第三季度財務業績
| • | 來自持續營運的第三方淨銷售額為103.2百萬美元 |
| • | 持續營運的淨虧損為（3.0）百萬美元； 淨虧損率為（3.0%） |
| • | 調整後的稅前利潤減除折舊及攤銷後的費用[1] 持續營運的營業收入為13.1百萬美元; 調整後的EBITDA[1] 邊際值為12.7% |
| • | 持續營運的GAAP 攤薄後每股收益為（0.11），調整後的攤薄後每股收益為0.12 |
佛羅里達州帕姆海灘花園，2024年10月30日（全球新聞社）- 全球牙科市場的生命科學領導者zimvie inc（納斯達克：ZIMV）今天公布了截至2024年9月30日季度的財務結果。管理層將於今天的東部時間下午4:30舉行相應的電話會議，時間為2024年10月30日。
“在第三季度，我們看到了北美最大市場收入增長的改善，實現了製造效率提升，並看到我們數碼產品的採用增加，” ZimVie Inc總裁兼首席執行官Vafa Jamali說，“除了我們繼續專注於推動業務改善外，我們還在銷售團隊、研發倡議和培訓計劃上進行了增量投資，旨在確保zimvie inc為未來擴張做好充分準備。”
2024年第三季度財務結果：持續營運
2024年第三季度第三方凈銷售額為1.032億美元，按報告基準下降了2.0%，按恆定貨幣計算下降了2.2%，較2023年第三季度有所下降。[1]與2023年第三季度相比。
2024年第三季度淨虧損為300萬美元，較2023年第三季度的淨虧損1020萬美元有所改善。2024年第三季度淨虧損率占第三方凈銷售的3.0%，較2023年第三季度的淨虧損率9.7%改善了670個基點。
凈利潤調整後[1] 2024年第三季度凈利潤為330萬美元，較2023年第三季度增加210萬美元。
基本和稀釋後的每股收益分別為$(0.11)及調整後的攤薄後每股收益。[1]2024年第三季度，基本和調整後的攤薄後每股收益均為$0.12。基本和調整後的攤薄後每股收益的加權平均股數均為27.6百萬。
調整後的稅前利潤減除折舊及攤銷後的費用[1] 2024年第三季度營收為$13.1百萬美元，佔第三方凈銷售額的12.7%，較2023年第三季度增加$0.9百萬美元，增幅為110個基點。
更新全年2024年持續營運財務指引：
| 預計截至2024年12月31日的全年。 |
指導方針 | |||
| 淨銷售額 |
$ | 450M to $455M | ||
| 調整後的稅前利潤減除折舊及攤銷後的費用[2] |
$ | 6000萬to $62M | ||
| 調整後每股收益[2] |
$ | 0.57 to $0.62 | ||
| [1] | This is a 非核心概念（non-GAAP） financial measure. Refer to “Note on 非美國通用會計準則 財務指標及本公告中的協調資料，請參考以獲得更多資訊。 |
| [2] | 這是一個財務指標，若要進行與最直接可比GAAP財務指標的協調需要過多不合理的努力。請參閱本公告中的“前瞻性財務指標”。 非核心概念（non-GAAP） 財務指標，若要進行與最直接可比GAAP財務指標的協調需要過多不合理的努力。請參閱本公告中的“前瞻性財務指標”，其中標示了需要不合理努力才能取得的資訊並提供額外資訊。 非美國通用會計準則 這個前瞻性 非核心概念（non-GAAP） 財務指標可能與相應的GAAP財務指標有顯著不同。 |
看漲會議通話
ZimVie將於2024年10月30日下午4:30 Et舉行一次电话会议，討論其2024年第三季度的財務結果。欲參加此电话会议， 請在線註冊 https://investor.zimvie.com/events-presentations/event-calendar。本網站還將提供现场和存档的音頻網路轉播。
有关ZimVie
ZimVie是全球牙科市場的生命科學領军企業，致力於開發、製造和交付全面的產品和解决方案組合，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術基础。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 非美國通用會計準則 未經審計的財務數據
本新聞稿包含 非核心概念（non-GAAP） 與符合美國通用會計準則（“GAAP”）計算的財務指標不同的財務指標。 這些財務指標可能與其他公司報告的類似指標不可比擬，應視為 依照GAAP準備的其他指標之外的參考，而非替代或優於。 非核心概念（non-GAAP） 調整後的EBITDA是
调整后的EBITDA是 非核心概念（non-GAAP） 本公告提供的財務指標涵蓋某些特定時期，通過從符合GAAP基礎上的持續業務淨利潤中排除某些項目來計算，詳情請參見稍後在本新聞稿中提供的對帳清單。調整後EBITDA利潤率是指調整後EBITDA除以相應時期持續業務的第三方淨銷售額。
本公告中的銷售變化信息以GAAP（報告）基礎和恆常貨幣基礎呈現。恆常貨幣百分比變化不包括外匯匯率的影響，是通過以相同預定匯率將當前和前期持續業務銷售金額進行轉換來計算。然後使用轉換後的結果來判斷年度百分比增加或減少。
本公告中的凈利潤（損失）和每股稀釋盈利（損失）以GAAP（報告）基礎和調整基礎呈現。調整後凈利潤（損失）和調整後每股稀釋盈利（損失）不包括某些項目的影響，詳情請參見稍後在本新聞稿中提供的這些指標與最相應GAAP財務指標的對帳清單。非核心概念（non-GAAP） 將這些財務指標與最相應的GAAP財務指標對帳的調和表列在本新聞稿中。
這些指標與最相應的GAAP財務指標的對帳清單已包含在本新聞稿中。 非核心概念（non-GAAP） 這些指標與最相應的GAAP財務指標的對帳清單已包含在本新聞稿中。
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 這些財務措施與非財務措施應被視作GAAP準備的財務信息的補充，並非其替代品。 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） 措施可以通過讓讀者更好地識別可能通過這些排除在外的項目而被掩蓋或扭曲的營運趨勢，從而評估營運結果和趨勢分析。 非核心概念（non-GAAP） 措施。
展望。 非美國通用會計準則 未經審計的財務數據
本新聞稿還包括某些前瞻性。非核心概念（non-GAAP） 截至2024年12月31日的財務措施。我們根據內部預測計算前瞻性 非核心概念（non-GAAP） 財務措施是基於省略了在GAAP財務措施中會包含的某些金額的內部預測。我們並未提供這些前瞻性 非核心概念（non-GAAP） 財務措施與最直接可比的前瞻性GAAP財務措施之間的量化對比，因為被排除的項目在未來基礎上無法合理地獲得。例如，由於管理層的計劃可能會變化，某些交易的時間很難預測。此外，公司認為這樣的對比將意味著一種可能會讓投資者困惑的精確度和確定性。很可能這些前瞻性 非核心概念（non-GAAP） 財務措施與相應的GAAP財務措施有可能存在重大差異。
2
關於前瞻性聲明的注意事項
本新聞稿包含根據聯邦證券法定義的前瞻性陳述，包括但不限於，關於我們的 期望、計劃、意圖、策略或前景的任何陳述。我們通常使用「可能」、「將」、「預期」、「相信」、「預計」、「計劃」、「估計」、「項目」、「假設」、「指南」、「目標」、「預測」、「看到」、「尋求」、「應該」、「可以」、「將」、「預測」、「潛在」、「策略」、「未來」、「機會」、「努力實現」、「打算」、「指導」、「信心」、「定位」、「設計」、「努力」、「繼續」、「追蹤」、「期待」、「樂觀」及類似表述來識別前瞻性陳述。除歷史或當前事實陳述外，所有陳述均被視爲或可能被視爲前瞻性陳述。這些陳述基於管理層當前的信念、期望和假設，並且可能受到重大風險、不確定性及可能導致實際結果與前瞻性陳述存在重大差異的情況變化。這些風險、不確定性和情況變化包括但不限於：對新產品開發、技術進步和創新的依賴；我們產品與服務的產品類別或區域銷售組合的變化；原材料和產品的供應及價格；競爭者、客戶、牙科實踐和保險提供者的價格壓力；因人口變化或其他因素導致的客戶對我們產品和服務的需求變化；與符合影響我們美國及國際業務的政府法律法規有關的挑戰，包括美國食品藥品管理局及外國政府監管機構的規定，如產品監管審批要求更加嚴格；競爭；醫療改革措施的影響；第三方支付者對報銷水平的削減；由政府機構、立法機構、私營部門和醫療集團採購組織發起的成本控制努力，包括中國的基於成交量的採購流程；對關鍵原材料和外包活動的有限供應商的依賴；獲取和維持充足的知識產權保護的能力；我們信息技術系統或產品的故障或失效，包括網絡攻擊、未經授權訪問或盜竊；留住營銷我們產品的獨立代理商和經銷商的能力；吸引、留住和發展支持我們業務所需的高素質員工的能力；併購對我們與客戶、供應商和貸方的關係以及我們經營結果和業務整體的影響；形成和實施聯盟的能力；由於稅收改革措施變化而引起的稅收義務變化，包括歐盟關於國家援助的規則，或稅務機構的審計；產品責任、知識產權和商業訴訟損失；一般行業和市場條件的變化，包括國內和國際的增長率；一般國內和國際經濟條件的變化，包括通貨膨脹、利率和貨幣兌換率波動；全球大流行及其他不利公共衛生髮展對全球經濟、我們的業務和運營及我們供應商和客戶的業務和運營的影響，包括選定程序的延期及我們收款的能力；以及歐元區國家持續的金融和政治不確定性對收款能力的影響。請您謹慎對待這些前瞻性陳述，因爲無法保證這些前瞻性陳述將被證明是準確的。前瞻性陳述僅以作出時的日期爲準，我們明確拒絕任何更新或修訂前瞻性陳述的意圖或義務，無論是由於新信息、未來事件或其他原因。
媒體聯繫人信息：
ZimVie
Grace Flowers • Grace.Flowers@ZimVie.com
(561) 319-6130
投資者聯繫人信息：
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 |
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| 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 | ) | ||||
|
|
|
|
|
|||||
| Total Stockholders’ Equity |
406,638 | 409,493 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Stockholders’ Equity |
$ | 782,948 | $ | 1,205,345 | ||||
|
|
|
|
|
|||||
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: |
|
|||||||
| 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: |
||||||||
| 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 | ) | ||||
|
|
|
|
|
|||||
| Net cash (used in) provided by operating activities |
(7,276 | ) | 15,694 | |||||
|
|
|
|
|
|||||
| Cash flows provided by (used in) investing activities: |
||||||||
| 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 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by (used in) investing activities |
285,169 | (12,443 | ) | |||||
|
|
|
|
|
|||||
| Cash flows used in financing activities: |
||||||||
| 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 | ||||||
|
|
|
|
|
|||||
| 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