Enovis Announces Second Quarter 2024 Results
Enovis (NYSE: ENOV) reported strong Q2 2024 results with 23% sales growth to $525 million and adjusted EBITDA margin expansion of 190 basis points to 17.2%. The company saw 60% reported growth in Recon and 2% in P&R. Despite a net loss of $0.34 per share, adjusted earnings were $0.62 per share. Enovis received FDA clearances for Arvis 2.0 Shoulder and Altivate Reverse Glenoid system, opened a Business Technology Center in Lisbon, and a new manufacturing facility in San Daniele. The company narrowed its 2024 revenue guidance to $2.08-$2.13 billion, reaffirmed adjusted EBITDA expectations of $368-$383 million, and raised adjusted EPS guidance to $2.62-$2.77.
Enovis (NYSE: ENOV) ha riportato risultati solidi nel secondo trimestre del 2024, con una crescita delle vendite del 23% a 525 milioni di dollari e un'espansione del margine EBITDA rettificato di 190 punti base, raggiungendo il 17,2%. L'azienda ha registrato una crescita del 60% in Recon e del 2% in P&R. Nonostante una perdita netta di 0,34 dollari per azione, gli utili rettificati sono stati di 0,62 dollari per azione. Enovis ha ricevuto approvazioni dalla FDA per il sistema Arvis 2.0 per spalla e Altivate Reverse Glenoid, ha aperto un Centro per la Tecnologia Aziendale a Lisbona e un nuovo stabilimento produttivo a San Daniele. L'azienda ha ridotto le previsioni di fatturato per il 2024 a 2,08-2,13 miliardi di dollari, ha confermato le aspettative di EBITDA rettificato tra 368-383 milioni di dollari e ha aumentato le previsioni di EPS rettificato a 2,62-2,77 dollari.
Enovis (NYSE: ENOV) reportó resultados sólidos en el segundo trimestre de 2024, con un crecimiento de ventas del 23% alcanzando 525 millones de dólares y una expansión del margen EBITDA ajustado de 190 puntos básicos a 17.2%. La compañía vio un crecimiento reportado del 60% en Recon y del 2% en P&R. A pesar de una pérdida neta de 0,34 dólares por acción, las ganancias ajustadas fueron de 0,62 dólares por acción. Enovis recibió aprobaciones de la FDA para el sistema Arvis 2.0 para hombros y Altivate Reverse Glenoid, abrió un Centro de Tecnología Empresarial en Lisboa y una nueva instalación de fabricación en San Daniele. La compañía redujo sus proyecciones de ingresos para 2024 a entre 2,08 y 2,13 mil millones de dólares, reafirmó sus expectativas de EBITDA ajustado de entre 368 y 383 millones de dólares, y elevó su guía de EPS ajustada a entre 2,62 y 2,77 dólares.
Enovis (NYSE: ENOV)는 2024년 2분기 결과를 발표하며 23%의 매출 성장으로 5억 2500만 달러를 기록하고 조정된 EBITDA 마진이 190bp 증가한 17.2%를 기록했습니다. 회사는 Recon에서 60%의 성장과 P&R에서 2%의 성장을 보았습니다. 주당 순손실이 0.34달러에도 불구하고, 조정된 수익은 주당 0.62달러였습니다. Enovis는 Arvis 2.0 어깨 및 Altivate Reverse Glenoid 시스템에 대해 FDA 승인을 받았으며, 리스본에 비즈니스 기술 센터를 개설하고 산 다니엘리에 새로운 제조 시설을 열었습니다. 회사는 2024년 수익 가이던스를 20억 8000만~21억 3000만 달러로 좁히고, 조정된 EBITDA 기대치를 3억 6800만~3억 8300만 달러로 재확인했으며, 조정된 EPS 가이던스를 2.62~2.77달러로 상향 조정했습니다.
Enovis (NYSE: ENOV) a rapporté de bons résultats au deuxième trimestre 2024, avec une croissance des ventes de 23% à 525 millions de dollars et une expansion de la marge EBITDA ajustée de 190 points de base à 17,2%. L'entreprise a enregistré une croissance de 60% dans le secteur Recon et de 2% dans P&R. Malgré une perte nette de 0,34 dollar par action, les bénéfices ajustés s'élevaient à 0,62 dollar par action. Enovis a obtenu des autorisations de la FDA pour le système d'épaule Arvis 2.0 et le système Glenoid inversé Altivate, a ouvert un Centre de Technologie d'Affaires à Lisbonne, et une nouvelle installation de fabrication à San Daniele. L'entreprise a réajusté ses prévisions de revenus pour 2024 à 2,08-2,13 milliards de dollars, a réaffirmé ses attentes d'EBITDA ajusté entre 368 et 383 millions de dollars, et a relevé ses prévisions de BPA ajusté à 2,62-2,77 dollars.
Enovis (NYSE: ENOV) hat im zweiten Quartal 2024 solide Ergebnisse bekannt gegeben, mit einem Umsatzwachstum von 23% auf 525 Millionen Dollar und einer Erweiterung der bereinigten EBITDA-Marge um 190 Basispunkte auf 17,2%. Das Unternehmen verzeichnete ein wachstum von 60% in Recon und 2% in P&R. Trotz eines Nettoverlusts von 0,34 Dollar pro Aktie betrugen die bereinigten Erträge 0,62 Dollar pro Aktie. Enovis erhielt FDA-Zulassungen für das Arvis 2.0 Schulter- und Altivate Reverse Glenoid-System, eröffnete ein Business Technology Center in Lissabon und ein neues Produktionswerk in San Daniele. Das Unternehmen hat die Umsatzprognose für 2024 auf 2,08 bis 2,13 Milliarden Dollar eingegrenzt, die Erwartungen an das bereinigte EBITDA von 368 bis 383 Millionen Dollar bekräftigt und die Prognose für das bereinigte EPS auf 2,62 bis 2,77 Dollar angehoben.
- 23% reported sales growth to $525 million in Q2 2024
- Adjusted EBITDA margin expanded 190 basis points to 17.2%
- 60% reported growth in Recon segment
- FDA clearances received for Arvis 2.0 Shoulder and Altivate Reverse Glenoid system
- Raised full-year adjusted EPS guidance to $2.62-$2.77
- Reported net loss from continuing operations of $0.34 per share in Q2 2024
- P&R segment grew only 2% on a reported basis
Insights
Enovis' Q2 2024 results show strong growth with sales up
The adjusted EBITDA margin improved by
Investors should note the successful integration of recent acquisitions (Lima and Novastep) and the potential impact of new product launches (Arvis 2.0 Shoulder and Altivate Reverse Glenoid system) on future growth.
Enovis' Q2 results highlight its strategic focus on innovation in the medical technology sector. The FDA 510k clearance for Arvis 2.0 Shoulder and Altivate Reverse Glenoid system is a significant milestone, potentially driving future growth in the Recon segment.
The opening of the Business Technology Center in Lisbon demonstrates Enovis' commitment to digitization and improving customer experience, which could lead to increased market share and customer loyalty. The new manufacturing facility in San Daniele suggests a focus on supply chain optimization and capacity expansion, which could improve margins and support growth initiatives.
These developments, combined with the strong performance in International Recon, position Enovis well in the competitive medical device market.
Enovis' Q2 performance reflects robust demand in the medical technology sector, particularly in reconstructive procedures. The
The company's focus on geographic expansion, evident in the strong International Recon growth, is a smart strategy to diversify revenue streams. The narrowed revenue guidance (
Investors should monitor the impact of new product introductions and the integration of acquisitions on Enovis' market position. The company's ability to maintain growth while improving margins will be important for long-term success in this competitive landscape.
- Continued strong momentum with second-quarter sales growth of
23% on a reported basis and strong adjusted margin expansion - Reported second-quarter net loss from continuing operations of
$0.34 per share with adjusted net income per diluted share of$0.62 - Advanced strategic goals with solid first half of 2024, slightly ahead of expectations, and set up to accelerate in the second half of the year
Wilmington, DE, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Enovis™ Corporation (NYSE: ENOV), an innovation-driven medical technology growth company, today announced its financial results for the second quarter ended June 28, 2024. The Company will host an investor conference call and live webcast to discuss these results today at 8:00 am ET.
Second Quarter 2024 Financial Results
Enovis’ second-quarter net sales of
Enovis also reported second-quarter net loss from continuing operations of
The Company reported second-quarter 2024 net loss from continuing operations of
“We continue to execute against our plan for the year and are off to a great start integrating our transformational Lima acquisition,” said Matt Trerotola, Chief Executive Officer of Enovis. “The progress we have made year-to-date, as well as our robust lineup of important new product introductions, sets us up well for accelerating growth and profitability into 2025 and beyond.”
Second Quarter 2024 Business Highlights
- Received FDA 510k clearance for Arvis 2.0 Shoulder and Altivate Reverse Glenoid system with both launches expected to occur in Q3 2024
- Opened our Business Technology Center in Lisbon to support the digitization of the Company and an improved customer experience
- Celebrated the grand opening of a new manufacturing facility in San Daniele to support the expansion and optimization of our global manufacturing capabilities
- Q2 adjusted EBITDA margin improved 190 basis points year over year, driven by the addition of Lima, product and geographic mix, new product introductions, and execution on key EGX initiatives
2024 Financial Outlook
Enovis narrowed its revenue range and reaffirmed adjusted EBITDA expectations for 2024. Full-year revenue is estimated at
Conference call and Webcast
Investors can access the webcast via a link on the Enovis website, www.enovis.com. For those planning to participate on the call, please dial (833) 685-0901 (U.S. callers) or +1 (412) 317-5715 (International callers) and ask to join the Enovis call. A link to a replay of the call will also be available on the Enovis website later in the day.
ABOUT ENOVIS
Enovis Corporation (NYSE: ENOV) is an innovation-driven medical technology growth company dedicated to developing clinically differentiated solutions that generate measurably better patient outcomes and transform workflows. Powered by a culture of continuous improvement, global talent and innovation, the Company’s extensive range of products, services and integrated technologies fuels active lifestyles in orthopedics and beyond. The Company’s shares of common stock are listed in the United States on the New York Stock Exchange under the symbol ENOV. For more information about Enovis, please visit www.enovis.com.
Availability of Information on the Enovis Website
Investors and others should note that Enovis routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Enovis Investor Relations website. While not all of the information that the Company posts to the Enovis Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in Enovis to review the information that it shares on ir.enovis.com.
Forward-Looking Statements
This press release includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Enovis’ plans, goals, objectives, outlook, expectations and intentions, including the potential benefits of the recently completed acquisition of Lima, and other statements that are not historical or current fact. Forward-looking statements are based on Enovis’ current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Enovis’ results to differ materially from current expectations include, but are not limited to, risks related to Enovis’ recently completed acquisition of Lima; the impact of public health emergencies and global pandemics (including COVID-19); disruptions in the global economy caused by escalating geopolitical tensions including in connection with Russia’s invasion of Ukraine; macroeconomic conditions, including the impact of increasing inflationary pressures; supply chain disruptions; increasing energy costs and availability concerns, particularly in the European market; other impacts on Enovis’ business and ability to execute business continuity plans; and the other factors detailed in Enovis’ reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption “Risk Factors,” as well as the other risks discussed in Enovis’ filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. Enovis disclaims any duty to update the information herein.
Non-GAAP Financial Measures
Enovis has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America (“non-GAAP”). These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations (“Adjusted net income”), Adjusted net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted gross profit, Adjusted gross profit margin, Comparable sales, Comparable sales growth, and Comparable sales growth on constant currency basis.
Adjusted net income and Adjusted net income per diluted share excludes restructuring and other charges, European Union Medical Device Regulation (“MDR”) and other costs, amortization of acquired intangibles, inventory step up costs, property plant and equipment step-up depreciation, strategic transaction costs, stock compensation costs, other income/expense, and it includes the tax effect of adjusted pre-tax income at applicable tax rates and other tax adjustments. Enovis also presents Adjusted net income margin, which is subject to the same adjustments as Adjusted net income.
Adjusted EBITDA represents Adjusted net income excluding interest, taxes, and depreciation and amortization. Enovis presents Adjusted EBITDA margin, which is subject to the same adjustments as Adjusted EBITDA.
Adjusted gross profit represents gross profit excluding the fair value charges of acquired inventory and the impact of restructuring and other charges. Adjusted gross profit margin is subject to the same adjustments as Adjusted gross profit.
Comparable sales adjusts net sales for prior periods to include the sales of acquired businesses (including Lima and Novastep) prior to our ownership from acquisitions that closed in the periods presented and to exclude the net sales of certain non-core product lines that were divested or discontinued, as applicable, during the periods presented.
Comparable sales growth represents the change in Comparable sales for the current period from Comparable sales for the prior year period.
Comparable sales growth on constant currency basis represents Comparable sales growth excluding the impact of foreign exchange rate fluctuations.
Comparable sales, comparable sales growth and comparative sales growth on a constant currency basis are presented for illustrative purposes only and do not and are not intended to comply with Article 11 of Regulation S-X promulgated by the SEC in respect of proforma financial information, and may differ, including materially, from proforma financial statements presented in accordance therewith.
These non-GAAP financial measures assist Enovis management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete restructuring plans that are fundamentally different from the ongoing productivity improvements of the Company. Enovis management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release. Enovis does not provide reconciliations of adjusted EBITDA or adjusted earnings per share on a forward-looking basis to the closest GAAP financial measures, as such information is not available without unreasonable efforts on a forward-looking basis due to uncertainties regarding, and the potential variability of, reconciling items excluded from these measures. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period.
Kyle Rose
Vice President, Investor Relations
Enovis Corporation
+1-917-734-7450
investorrelations@enovis.com
Enovis Corporation
Condensed Consolidated Statements of Operations
Dollars in thousands, except per share data
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||
| Net sales | $ | 525,160 | $ | 428,502 | $ | 1,041,426 | $ | 834,653 | ||||||||
| Cost of sales | 236,277 | 180,143 | 454,647 | 351,229 | ||||||||||||
| Gross profit | 288,883 | 248,359 | 586,779 | 483,424 | ||||||||||||
| Gross profit margin | 55.0 | % | 58.0 | % | 56.3 | % | 57.9 | % | ||||||||
| Selling, general and administrative expense | 264,100 | 207,881 | 519,791 | 415,046 | ||||||||||||
| Research and development expense | 23,479 | 18,918 | 46,856 | 37,111 | ||||||||||||
| Amortization of acquired intangibles | 40,936 | 32,249 | 81,867 | 64,289 | ||||||||||||
| Restructuring and other charges | 4,587 | 3,805 | 17,498 | 6,440 | ||||||||||||
| Operating loss | (44,219 | ) | (14,494 | ) | (79,233 | ) | (39,462 | ) | ||||||||
| Operating loss margin | (8.4) % | (3.4) % | (7.6) % | (4.7) % | ||||||||||||
| Interest expense, net | 16,969 | 4,076 | 36,965 | 9,728 | ||||||||||||
| Other (income) expense, net | (33,836 | ) | 753 | (9,601 | ) | 92 | ||||||||||
| Loss from continuing operations before income taxes | (27,352 | ) | (19,323 | ) | (106,597 | ) | (49,282 | ) | ||||||||
| Income tax benefit | (8,908 | ) | (4,713 | ) | (16,312 | ) | (11,826 | ) | ||||||||
| Net loss from continuing operations | (18,444 | ) | (14,610 | ) | (90,285 | ) | (37,456 | ) | ||||||||
| (Loss) income from discontinued operations, net of taxes | (68 | ) | 4,797 | (68 | ) | 4,485 | ||||||||||
| Net loss | (18,512 | ) | (9,813 | ) | (90,353 | ) | (32,971 | ) | ||||||||
| Net loss margin | (3.5) % | (2.3) % | (8.7) % | (4.0) % | ||||||||||||
| Less: net income attributable to noncontrolling interest from continuing operations - net of taxes | 126 | 182 | 283 | 374 | ||||||||||||
| Net loss attributable to Enovis Corporation | $ | (18,638 | ) | $ | (9,995 | ) | $ | (90,636 | ) | $ | (33,345 | ) | ||||
| Net income (loss) per share - basic and diluted | ||||||||||||||||
| Continuing operations | $ | (0.34 | ) | $ | (0.27 | ) | $ | (1.65 | ) | $ | (0.70 | ) | ||||
| Discontinued operations | $ | — | $ | 0.09 | $ | — | $ | 0.08 | ||||||||
| Consolidated operations | $ | (0.34 | ) | $ | (0.18 | ) | $ | (1.65 | ) | $ | (0.61 | ) | ||||
Enovis Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
Dollars in millions, except per share data
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||
| Adjusted Net Income and Adjusted Net Income Per Share | |||||||||||||||
| Net loss from continuing operations attributable to Enovis Corporation(1) (GAAP) | $ | (18.6 | ) | $ | (14.8 | ) | $ | (90.6 | ) | $ | (37.8 | ) | |||
| Restructuring and other charges - pretax(2) | 4.6 | 3.8 | 17.5 | 6.7 | |||||||||||
| MDR and other costs - pretax(3) | 4.5 | 9.0 | 9.5 | 16.8 | |||||||||||
| Amortization of acquired intangibles - pretax | 40.9 | 32.2 | 81.9 | 64.3 | |||||||||||
| Inventory step-up and PPE step-up depreciation - pretax(4) | 26.1 | — | 31.2 | 0.1 | |||||||||||
| Strategic transaction costs - pretax(5) | 22.7 | 5.4 | 43.5 | 17.1 | |||||||||||
| Stock-based compensation | 7.6 | 8.9 | 14.0 | 15.8 | |||||||||||
| Other (income) expense, net(6) | (33.8 | ) | 0.8 | (9.6 | ) | 0.1 | |||||||||
| Tax adjustment(7) | (19.6 | ) | (12.0 | ) | (35.2 | ) | (25.5 | ) | |||||||
| Adjusted net income from continuing operations (non-GAAP) | $ | 34.4 | $ | 33.4 | $ | 62.2 | $ | 57.5 | |||||||
| Adjusted net income margin from continuing operations | 6.6 | % | 7.8 | % | 6.0 | % | 6.9 | % | |||||||
| Weighted-average shares outstanding - diluted (GAAP) | 54,856 | 54,511 | 54,772 | 54,419 | |||||||||||
| Net loss per share - diluted from continuing operations (GAAP) | $ | (0.34 | ) | $ | (0.27 | ) | $ | (1.65 | ) | $ | (0.70 | ) | |||
| Adjusted weighted-average shares outstanding - diluted (non-GAAP) | 55,220 | 54,934 | 55,248 | 54,885 | |||||||||||
| Adjusted net income per share - diluted from continuing operations (non-GAAP) | $ | 0.62 | $ | 0.61 | $ | 1.13 | $ | 1.05 | |||||||
__________
(1) Net loss from continuing operations attributable to Enovis Corporation for the respective periods is calculated using Net loss from continuing operations less the continuing operations component of the income attributable to noncontrolling interest, net of taxes.
(2) Restructuring and other charges includes $— million and
(3) Primarily related to costs specific to compliance with medical device reporting regulations and other requirements of the European Union MDR. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.
(4) Includes
(5) Strategic transaction costs includes integration costs related to recent acquisitions and Separation-related costs.
(6) Other (income) expense, net primarily includes the fair value gain on Contingent Acquisition shares, partially offset by the first quarter of 2024 loss on the non-designated forward currency hedge for managing exchange rate risk related to the Euro-denominated purchase price of the Lima Acquisition.
(7) The effective tax rates used to calculate adjusted net income and adjusted net income per share were
Enovis Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
Dollars in millions
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||
| (Dollars in millions) | |||||||||||||||
| Net loss from continuing operations (GAAP) | $ | (18.4 | ) | $ | (14.6 | ) | $ | (90.3 | ) | $ | (37.5 | ) | |||
| Income tax benefit | (8.9 | ) | (4.7 | ) | (16.3 | ) | (11.8 | ) | |||||||
| Other (income) expense, net | (33.8 | ) | 0.8 | (9.6 | ) | 0.1 | |||||||||
| Interest expense, net | 17.0 | 4.1 | 37.0 | 9.7 | |||||||||||
| Operating loss (GAAP) | (44.2 | ) | (14.5 | ) | (79.2 | ) | (39.5 | ) | |||||||
| Adjusted to add: | |||||||||||||||
| Restructuring and other charges(1) | 4.6 | 3.8 | 17.5 | 6.7 | |||||||||||
| MDR and other costs(2) | 4.5 | 9.0 | 9.5 | 16.8 | |||||||||||
| Strategic transaction costs(3) | 22.7 | 5.4 | 43.5 | 17.1 | |||||||||||
| Stock-based compensation | 7.6 | 8.9 | 14.0 | 15.8 | |||||||||||
| Depreciation and other amortization | 30.1 | 20.8 | 57.3 | 40.7 | |||||||||||
| Amortization of acquired intangibles | 40.9 | 32.2 | 81.9 | 64.3 | |||||||||||
| Inventory step-up | 23.9 | — | 29.0 | 0.1 | |||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 90.2 | $ | 65.7 | $ | 173.4 | $ | 122.1 | |||||||
| Adjusted EBITDA margin (non-GAAP) | 17.2 | % | 15.3 | % | 16.7 | % | 14.6 | % | |||||||
__________
(1) Restructuring and other charges includes $— million and
(2) Primarily related to costs specific to compliance with medical device reporting regulations and other requirements of the European Union MDR. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.
(3) Strategic transaction costs includes integration costs related to recent acquisitions and Separation-related costs.
Enovis Corporation
Reconciliation of Gross Margin (GAAP) to Adjusted Gross Margin (non-GAAP)
Dollars in millions
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||
| Net sales | $ | 525.2 | $ | 428.5 | $ | 1,041.4 | $ | 834.7 | |||||||
| Gross profit | $ | 288.9 | $ | 248.4 | $ | 586.8 | $ | 483.4 | |||||||
| Gross profit margin (GAAP) | 55.0 | % | 58.0 | % | 56.3 | % | 57.9 | % | |||||||
| Gross profit (GAAP) | $ | 288.9 | $ | 248.4 | $ | 586.8 | $ | 483.4 | |||||||
| Inventory step-up | 23.9 | — | 29.0 | 0.1 | |||||||||||
| Restructuring and other charges | — | — | — | 0.3 | |||||||||||
| Adjusted gross profit (Non-GAAP) | $ | 312.8 | $ | 248.4 | $ | 615.8 | $ | 483.9 | |||||||
| Adjusted gross profit margin (Non-GAAP) | 59.6 | % | 58.0 | % | 59.1 | % | 58.0 | % | |||||||
Enovis Corporation
Condensed Consolidated Balance Sheets
Dollars in thousands, except share amounts
(Unaudited)
| June 28, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 35,004 | $ | 36,191 | |||
| Trade receivables, less allowance for credit losses of | 394,736 | 291,483 | |||||
| Inventories, net | 615,037 | 468,832 | |||||
| Prepaid expenses | 40,550 | 28,901 | |||||
| Other current assets | 87,426 | 71,112 | |||||
| Total current assets | 1,172,753 | 896,519 | |||||
| Property, plant and equipment, net | 378,449 | 270,798 | |||||
| Goodwill | 2,353,456 | 2,060,893 | |||||
| Intangible assets, net | 1,380,478 | 1,127,363 | |||||
| Lease asset - right of use | 68,243 | 63,506 | |||||
| Other assets | 88,649 | 90,255 | |||||
| Total assets | $ | 5,442,028 | $ | 4,509,334 | |||
| LIABILITIES AND EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Current portion of long-term debt | $ | 15,028 | $ | — | |||
| Accounts payable | 159,832 | 132,475 | |||||
| Accrued liabilities | 343,145 | 237,132 | |||||
| Total current liabilities | 518,005 | 369,607 | |||||
| Long-term debt, less current portion | 1,329,427 | 466,164 | |||||
| Non-current lease liability | 50,455 | 48,684 | |||||
| Other liabilities | 255,203 | 204,178 | |||||
| Total liabilities | 2,153,090 | 1,088,633 | |||||
| Equity: | |||||||
| Common stock, | 55 | 55 | |||||
| Additional paid-in capital | 2,911,254 | 2,900,747 | |||||
| Retained earnings | 451,835 | 542,471 | |||||
| Accumulated other comprehensive loss | (76,730 | ) | (24,881 | ) | |||
| Total Enovis Corporation equity | 3,286,414 | 3,418,392 | |||||
| Noncontrolling interest | 2,524 | 2,309 | |||||
| Total equity | 3,288,938 | 3,420,701 | |||||
| Total liabilities and equity | $ | 5,442,028 | $ | 4,509,334 | |||
Enovis Corporation
Condensed Consolidated Statements of Cash Flows
Dollars in thousands
(Unaudited)
| Six Months Ended | |||||||
| June 28, 2024 | June 30, 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (90,353 | ) | $ | (32,971 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 139,167 | 105,033 | |||||
| Impairment of assets | 5,555 | — | |||||
| Stock-based compensation expense | 14,102 | 16,981 | |||||
| Non-cash interest expense | 2,558 | 1,481 | |||||
| Fair value gain on contingent acquisition shares | (20,068 | ) | — | ||||
| Loss on currency hedges | 11,123 | — | |||||
| Deferred income tax expense (benefit) | (19,412 | ) | (107 | ) | |||
| Loss on sale of property, plant and equipment | 383 | 533 | |||||
| Changes in operating assets and liabilities: | |||||||
| Trade receivables, net | (24,807 | ) | (25,912 | ) | |||
| Inventories, net | 1,953 | (10,476 | ) | ||||
| Accounts payable | (6,744 | ) | 8,324 | ||||
| Other operating assets and liabilities | (41,840 | ) | (27,326 | ) | |||
| Net cash provided by (used in) operating activities | (28,383 | ) | 35,560 | ||||
| Cash flows from investing activities: | |||||||
| Purchases of property, plant and equipment and intangibles | (76,333 | ) | (67,248 | ) | |||
| Payments for acquisitions, net of cash received, and investments | (758,190 | ) | (98,740 | ) | |||
| Payment for settlement of derivatives | (4,645 | ) | — | ||||
| Net cash used in investing activities | (839,168 | ) | (165,988 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from borrowings on term credit facility | 400,000 | — | |||||
| Repayments of borrowings under term credit facility | (15,000 | ) | (219,468 | ) | |||
| Proceeds from borrowings on revolving credit facilities and other | 940,000 | 370,000 | |||||
| Repayments of borrowings on revolving credit facilities and other | (446,479 | ) | (11,538 | ) | |||
| Payment of debt issuance costs | (703 | ) | — | ||||
| Payments of tax withholding for stock-based awards | (4,772 | ) | — | ||||
| Proceeds from issuance of common stock, net | 1,177 | 1,385 | |||||
| Deferred consideration payments and other | (7,174 | ) | (1,668 | ) | |||
| Net cash provided by financing activities | 867,049 | 138,711 | |||||
| Effect of foreign exchange rates on Cash and cash equivalents | (906 | ) | (87 | ) | |||
| Increase (decrease) in Cash, cash equivalents and restricted cash | (1,408 | ) | 8,196 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 44,832 | 24,295 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 43,424 | $ | 32,491 | |||
| Supplemental disclosures: | |||||||
| Fair value of contingently issuable shares in business acquisition | $ | 107,877 | $ | — | |||
Enovis Corporation
GAAP and Comparable Net Sales
Change in Sales
Dollars in millions
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 28, 2024 | June 30, 2023 | Growth Rate | June 28, 2024 | June 30, 2023 | Growth rate | ||||||||||||
| GAAP | GAAP | ||||||||||||||||
| (In millions) | |||||||||||||||||
| Prevention & Recovery: | |||||||||||||||||
| U.S. Bracing & Support | $ | 117.5 | $ | 115.0 | 2.2 | % | $ | 222.1 | $ | 219.3 | 1.3 | % | |||||
| U.S. Other P&R | 68.0 | 67.7 | 0.3 | % | 134.3 | 130.1 | 3.2 | % | |||||||||
| International P&R | 92.3 | 90.8 | 1.6 | % | 180.4 | 174.8 | 3.2 | % | |||||||||
| Total Prevention & Recovery | 277.8 | 273.5 | 1.6 | % | 536.8 | 524.2 | 2.4 | % | |||||||||
| Reconstructive: | |||||||||||||||||
| U.S. Reconstructive | 122.1 | 106.1 | 15.0 | % | 245.8 | 209.6 | 17.2 | % | |||||||||
| International Reconstructive | 125.3 | 48.9 | 156.4 | % | 258.9 | 100.8 | 156.8 | % | |||||||||
| Total Reconstructive | 247.4 | 155.0 | 59.6 | % | 504.7 | 310.4 | 62.6 | % | |||||||||
| Total | $ | 525.2 | $ | 428.5 | 22.6 | % | $ | 1,041.4 | $ | 834.7 | 24.8 | % | |||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | Growth Rate | Constant Currency Growth Rate | June 28, 2024 | June 30, 2023 | Growth Rate | Constant Currency Growth Rate | ||||||||||||||||
| Comparable Sales (1) | Comparable Sales (1) | ||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Prevention & Recovery: | |||||||||||||||||||||||
| U.S. Bracing & Support | $ | 117.5 | $ | 115.0 | 2.2 | % | 2.2 | % | $ | 222.1 | $ | 219.3 | 1.3 | % | 1.3 | % | |||||||
| U.S. Other P&R | 68.0 | 65.3 | 4.0 | % | 4.0 | % | 131.6 | 125.2 | 5.1 | % | 5.1 | % | |||||||||||
| International P&R | 92.3 | 89.4 | 3.2 | % | 4.2 | % | 178.7 | 172.1 | 3.8 | % | 4.0 | % | |||||||||||
| Total Prevention & Recovery | 277.8 | 269.7 | 3.0 | % | 3.3 | % | 532.4 | 516.7 | 3.0 | % | 3.1 | % | |||||||||||
| Reconstructive: | |||||||||||||||||||||||
| U.S. Reconstructive | 122.1 | 120.7 | 1.1 | % | 1.1 | % | 245.8 | 239.6 | 2.6 | % | 2.6 | % | |||||||||||
| International Reconstructive | 125.3 | 111.4 | 12.5 | % | 13.5 | % | 258.4 | 229.9 | 12.4 | % | 11.7 | % | |||||||||||
| Total Reconstructive | 247.4 | 232.1 | 6.6 | % | 7.1 | % | 504.2 | 469.5 | 7.4 | % | 7.0 | % | |||||||||||
| Total | $ | 525.2 | $ | 501.8 | 4.7 | % | 5.0 | % | $ | 1,036.6 | $ | 986.2 | 5.1 | % | 5.0 | % | |||||||
(1) Comparable sales adjusts net sales for prior periods to include the sales of acquired businesses prior to our ownership from acquisitions that closed after March 31, 2023 and to exclude the sales of divested businesses and certain discontinued Recon products lines in conjunction with the Lima acquisition. The acquired businesses include the Lima and Novastep acquisitions in the Recon segment and the divested business includes a minor product line in the P&R segment.
FAQ
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