Enovis Announces Third Quarter 2024 Results
Enovis (ENOV) reported third-quarter 2024 results with net sales of $505 million, showing 21% growth on a reported basis and 6% on a comparable basis. The company's Reconstructive segment grew 57% reported (9% comparable), while P&R grew 1% reported (3% comparable). Despite reporting a net loss from continuing operations of $34 million ($0.61 per share), adjusted earnings were $0.73 per share, up 30% Y/Y. Adjusted EBITDA reached $90 million or 17.9% of sales. The company narrowed its 2024 revenue guidance to $2.10 billion and adjusted EBITDA to $373-$378 million, while raising full-year adjusted EPS guidance to $2.75-$2.80.
Enovis (ENOV) ha riportato i risultati del terzo trimestre 2024 con vendite nette di 505 milioni di dollari, mostrando una crescita del 21% su base riportata e del 6% su base comparabile. Il segmento Ricostruttivo dell'azienda è cresciuto del 57% (9% comparabile), mentre P&R è aumentato dell'1% (3% comparabile). Nonostante abbia registrato una perdita netta dalle operazioni continuative di 34 milioni di dollari (0,61 dollari per azione), gli utili rettificati sono stati di 0,73 dollari per azione, in aumento del 30% su base annua. L'EBITDA rettificato ha raggiunto i 90 milioni di dollari, pari al 17,9% delle vendite. L'azienda ha ristretto le sue previsioni di fatturato per il 2024 a 2,10 miliardi di dollari e l'EBITDA rettificato a 373-378 milioni di dollari, aumentando al contempo le previsioni di EPS rettificato per l'intero anno a 2,75-2,80 dollari.
Enovis (ENOV) reportó los resultados del tercer trimestre de 2024 con ventas netas de 505 millones de dólares, mostrando un crecimiento del 21% en base reportada y del 6% en base comparable. El segmento de Reconstrucción de la compañía creció un 57% reportado (9% comparable), mientras que P&R creció un 1% reportado (3% comparable). A pesar de reportar una pérdida neta de operaciones continuas de 34 millones de dólares (0,61 dólares por acción), las ganancias ajustadas fueron de 0,73 dólares por acción, un aumento del 30% interanual. El EBITDA ajustado alcanzó los 90 millones de dólares o el 17,9% de las ventas. La compañía ajustó su guía de ingresos para 2024 a 2,10 mil millones de dólares y el EBITDA ajustado a 373-378 millones de dólares, mientras que elevó la guía de EPS ajustado para el año completo a 2,75-2,80 dólares.
Enovis (ENOV)는 2024년 3분기 실적을 발표하며 순매출 5억 5백만 달러를 기록하였고, 이는 보고 기준으로 21%, 비교 기준으로 6% 성장한 수치입니다. 회사의 재건축 부문은 보고 기준으로 57% (비교 기준으로 9%) 성장했으며, P&R은 보고 기준으로 1% (비교 기준으로 3%) 성장했습니다. 계속 운영에서 3,400만 달러(주당 0.61 달러)의 순손실을 보고했음에도 불구하고, 조정된 주당순이익은 주당 0.73 달러로, 전년 대비 30% 증가했습니다. 조정된 EBITDA는 9천만 달러 또는 매출의 17.9%에 달했습니다. 회사는 2024년 수익 가이드를 21억 달러로, 조정된 EBITDA를 3억 7천3백만 달러에서 3억 7천8백만 달러로 좁혔으며, 연간 조정된 EPS 가이드를 2.75-2.80 달러로 상향 조정했습니다.
Enovis (ENOV) a annoncé les résultats du troisième trimestre 2024 avec des ventes nettes de 505 millions de dollars, montrant une croissance de 21% sur une base déclarée et de 6% sur une base comparable. Le segment Reconstruire de l'entreprise a connu une croissance de 57% sur la base déclarée (9% comparable), tandis que P&R a crû de 1% sur la base déclarée (3% comparable). Bien qu'un perte nette des opérations continues de 34 millions de dollars (0,61 dollar par action) ait été rapportée, le bénéfice ajusté était de 0,73 dollar par action, en hausse de 30% d'une année sur l'autre. L'EBITDA ajusté a atteint 90 millions de dollars ou 17,9% des ventes. L'entreprise a ajusté ses prévisions de revenus pour 2024 à 2,10 milliards de dollars et l'EBITDA ajusté à 373-378 millions de dollars, tout en révisant à la hausse ses prévisions de BPA ajusté pour l'année entière à 2,75-2,80 dollars.
Enovis (ENOV) hat die Ergebnisse des dritten Quartals 2024 mit Nettoumsätzen von 505 Millionen US-Dollar veröffentlicht, was einem Wachstum von 21% auf Basis der Berichterstattung und 6% auf vergleichbarer Basis entspricht. Das Rekonstruktionssegment des Unternehmens wuchs um 57% (9% vergleichbar), während P&R um 1% (3% vergleichbar) wuchs. Trotz eines Nettverlusts aus fortgeführtem Geschäft von 34 Millionen US-Dollar (0,61 US-Dollar pro Aktie) betrugen die bereinigten Erträge 0,73 US-Dollar pro Aktie, ein Anstieg von 30% im Jahresvergleich. Das bereinigte EBITDA erreichte 90 Millionen US-Dollar oder 17,9% des Umsatzes. Das Unternehmen hat die Umsatzprognose für 2024 auf 2,10 Milliarden US-Dollar und das bereinigte EBITDA auf 373-378 Millionen US-Dollar eingeengt und gleichzeitig die Prognose für das bereinigte EPS für das Gesamtjahr auf 2,75-2,80 US-Dollar angehoben.
- Net sales increased 21% to $505 million
- Reconstructive segment showed strong growth of 57% reported
- Adjusted EBITDA margin expanded 220 basis points
- Adjusted earnings per share grew 30% year-over-year
- Raised full-year adjusted EPS guidance to $2.75-$2.80
- Reported net loss from continuing operations of $34 million
- Net loss of $0.61 per share in Q3 2024
- P&R segment showed minimal growth of only 1% reported
Insights
The Q3 results demonstrate strong financial performance with
While the
- Continued commercial momentum with third-quarter sales growth of
21% on a reported basis and strong adjusted EBITDA margin expansion - Reconstructive sales grew
57% Y/Y on a reported basis and9% on a Comparable basis - Reported third-quarter net loss from continuing operations of
$0.61 per share, adjusted net income per diluted share of$0.73 , up +30% Y/Y
Wilmington, DE, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Enovis™ Corporation (NYSE: ENOV), an innovation-driven medical technology growth company, today announced its financial results for the third quarter ended September 27, 2024. The Company will host an investor conference call and live webcast to discuss these results today at 8:30 am ET.
Third Quarter 2024 Financial Results
Enovis’ third-quarter net sales of
Enovis also reported third-quarter net loss from continuing operations of
The Company reported third-quarter 2024 net loss from continuing operations of
“Our performance this quarter reflects the significant progress of our integration efforts and represents a return to above market growth rates in Recon,” said Matt Trerotola, Chief Executive Officer of Enovis. “We are closing in on a strong finish for 2024 that will propel us into 2025 as we shift our focus from integration to growth, fueled by a robust lineup of important new product introductions across all areas of our business.”
2024 Financial Outlook
Enovis narrowed its revenue range and 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 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 | Nine Months Ended | |||||||||||||||
| September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | |||||||||||||
| Net sales | $ | 505,222 | $ | 417,524 | $ | 1,546,648 | $ | 1,252,177 | ||||||||
| Cost of sales | 218,763 | 174,558 | 673,410 | 525,787 | ||||||||||||
| Gross profit | 286,459 | 242,966 | 873,238 | 726,390 | ||||||||||||
| Gross profit margin | 56.7 | % | 58.2 | % | 56.5 | % | 58.0 | % | ||||||||
| Selling, general and administrative expense | 249,854 | 204,248 | 769,645 | 619,294 | ||||||||||||
| Research and development expense | 20,491 | 19,901 | 67,347 | 57,012 | ||||||||||||
| Amortization of acquired intangibles | 42,786 | 33,967 | 124,653 | 98,256 | ||||||||||||
| Restructuring and other charges | 5,065 | 5,342 | 22,563 | 11,782 | ||||||||||||
| Operating loss | (31,737 | ) | (20,492 | ) | (110,970 | ) | (59,954 | ) | ||||||||
| Operating loss margin | (6.3) % | (4.9) % | (7.2) % | (4.8) % | ||||||||||||
| Interest expense, net | 11,066 | 5,768 | 48,031 | 15,496 | ||||||||||||
| Other (income) expense, net | (202 | ) | (757 | ) | (9,803 | ) | (665 | ) | ||||||||
| Loss from continuing operations before income taxes | (42,601 | ) | (25,503 | ) | (149,198 | ) | (74,785 | ) | ||||||||
| Income tax benefit | (9,096 | ) | (6,052 | ) | (25,408 | ) | (17,878 | ) | ||||||||
| Net loss from continuing operations | (33,505 | ) | (19,451 | ) | (123,790 | ) | (56,907 | ) | ||||||||
| Income from discontinued operations, net of taxes | 2,243 | 16,611 | 2,175 | 21,096 | ||||||||||||
| Net loss | (31,262 | ) | (2,840 | ) | (121,615 | ) | (35,811 | ) | ||||||||
| Net loss margin | (6.2) % | (0.7) % | (7.9) % | (2.9) % | ||||||||||||
| Less: net income attributable to noncontrolling interest from continuing operations - net of taxes | 259 | 40 | 542 | 414 | ||||||||||||
| Net loss attributable to Enovis Corporation | $ | (31,521 | ) | $ | (2,880 | ) | $ | (122,157 | ) | $ | (36,225 | ) | ||||
| Net income (loss) per share - basic and diluted | ||||||||||||||||
| Continuing operations | $ | (0.61 | ) | $ | (0.36 | ) | $ | (2.26 | ) | $ | (1.05 | ) | ||||
| Discontinued operations | $ | 0.04 | $ | 0.30 | $ | 0.04 | $ | 0.39 | ||||||||
| Consolidated operations | $ | (0.58 | ) | $ | (0.05 | ) | $ | (2.23 | ) | $ | (0.67 | ) | ||||
Enovis Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
Dollars in millions, except per share data
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||||||||||
| Adjusted Net Income and Adjusted Net Income Per Share | |||||||||||||||
| Net loss from continuing operations attributable to Enovis Corporation(1) (GAAP) | $ | (33.8 | ) | $ | (19.5 | ) | $ | (124.3 | ) | $ | (57.3 | ) | |||
| Restructuring and other charges - pretax(2) | 7.8 | 5.3 | 25.3 | 12.1 | |||||||||||
| MDR and other costs - pretax(3) | 5.3 | 6.2 | 14.8 | 23.0 | |||||||||||
| Amortization of acquired intangibles - pretax | 42.8 | 34.0 | 124.7 | 98.3 | |||||||||||
| Inventory step-up and PPE step-up depreciation - pretax(4) | 9.1 | — | 40.2 | 0.1 | |||||||||||
| Strategic transaction costs - pretax(5) | 21.4 | 10.5 | 65.0 | 27.5 | |||||||||||
| Stock-based compensation | 7.8 | 8.4 | 21.9 | 24.1 | |||||||||||
| Other (income) expense, net(6) | (0.2 | ) | (0.8 | ) | (9.8 | ) | (0.7 | ) | |||||||
| Tax adjustment(7) | (19.2 | ) | (13.1 | ) | (54.5 | ) | (38.6 | ) | |||||||
| Adjusted net income from continuing operations (non-GAAP) | $ | 41.0 | $ | 31.0 | $ | 103.2 | $ | 88.6 | |||||||
| Adjusted net income margin from continuing operations | 8.1 | % | 7.4 | % | 6.7 | % | 7.1 | % | |||||||
| Weighted-average shares outstanding - diluted (GAAP) | 55,666 | 54,549 | 55,072 | 54,462 | |||||||||||
| Net loss per share - diluted from continuing operations (GAAP) | $ | (0.61 | ) | $ | (0.36 | ) | $ | (2.26 | ) | $ | (1.05 | ) | |||
| Adjusted weighted-average shares outstanding - diluted (non-GAAP) | 56,030 | 55,065 | 55,511 | 54,945 | |||||||||||
| Adjusted net income per share - diluted from continuing operations (non-GAAP) | $ | 0.73 | $ | 0.56 | $ | 1.86 | $ | 1.61 | |||||||
__________
(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
(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 | Nine Months Ended | ||||||||||||||
| September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||||||||||
| (Dollars in millions) | |||||||||||||||
| Net loss from continuing operations (GAAP) | $ | (33.5 | ) | $ | (19.5 | ) | $ | (123.8 | ) | $ | (56.9 | ) | |||
| Income tax benefit | (9.1 | ) | (6.1 | ) | (25.4 | ) | (17.9 | ) | |||||||
| Other (income) expense, net | (0.2 | ) | (0.8 | ) | (9.8 | ) | (0.7 | ) | |||||||
| Interest expense, net | 11.1 | 5.8 | 48.0 | 15.5 | |||||||||||
| Operating loss (GAAP) | (31.7 | ) | (20.5 | ) | (111.0 | ) | (60.0 | ) | |||||||
| Adjusted to add: | |||||||||||||||
| Restructuring and other charges(1) | 7.8 | 5.3 | 25.3 | 12.1 | |||||||||||
| MDR and other costs(2) | 5.3 | 6.2 | 14.8 | 23.0 | |||||||||||
| Strategic transaction costs(3) | 21.4 | 10.5 | 65.0 | 27.5 | |||||||||||
| Stock-based compensation | 7.8 | 8.4 | 21.9 | 24.1 | |||||||||||
| Depreciation and other amortization | 28.4 | 21.5 | 85.7 | 62.2 | |||||||||||
| Amortization of acquired intangibles | 42.8 | 34.0 | 124.7 | 98.3 | |||||||||||
| Inventory step-up | 8.4 | — | 37.4 | 0.1 | |||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 90.2 | $ | 65.4 | $ | 263.7 | $ | 187.5 | |||||||
| Adjusted EBITDA margin (non-GAAP) | 17.9 | % | 15.7 | % | 17.0 | % | 15.0 | % | |||||||
__________
(1) Restructuring and other charges includes
(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 | Nine Months Ended | ||||||||||||||
| September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||||||||||
| Net sales | $ | 505.2 | $ | 417.5 | $ | 1,546.6 | $ | 1,252.2 | |||||||
| Gross profit | $ | 286.5 | $ | 243.0 | $ | 873.2 | $ | 726.4 | |||||||
| Gross profit margin (GAAP) | 56.7 | % | 58.2 | % | 56.5 | % | 58.0 | % | |||||||
| Gross profit (GAAP) | $ | 286.5 | $ | 243.0 | $ | 873.2 | $ | 726.4 | |||||||
| Inventory step-up | 8.4 | — | 37.4 | 0.1 | |||||||||||
| Restructuring and other charges | 2.7 | — | 2.7 | 0.3 | |||||||||||
| Adjusted gross profit (Non-GAAP) | $ | 297.6 | $ | 243.0 | $ | 913.3 | $ | 726.8 | |||||||
| Adjusted gross profit margin (Non-GAAP) | 58.9 | % | 58.2 | % | 59.1 | % | 58.0 | % | |||||||
Enovis Corporation
Condensed Consolidated Balance Sheets
Dollars in thousands, except share amounts
(Unaudited)
| September 27, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 35,425 | $ | 36,191 | |||
| Trade receivables, less allowance for credit losses of | 400,216 | 291,483 | |||||
| Inventories, net | 609,665 | 468,832 | |||||
| Prepaid expenses | 45,587 | 28,901 | |||||
| Other current assets | 112,172 | 71,112 | |||||
| Total current assets | 1,203,065 | 896,519 | |||||
| Property, plant and equipment, net | 403,250 | 270,798 | |||||
| Goodwill | 2,393,691 | 2,060,893 | |||||
| Intangible assets, net | 1,396,428 | 1,127,363 | |||||
| Lease asset - right of use | 63,387 | 63,506 | |||||
| Other assets | 90,320 | 90,255 | |||||
| Total assets | $ | 5,550,141 | $ | 4,509,334 | |||
| LIABILITIES AND EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Current portion of long-term debt | $ | 20,029 | $ | — | |||
| Accounts payable | 158,037 | 132,475 | |||||
| Accrued liabilities | 352,156 | 237,132 | |||||
| Total current liabilities | 530,222 | 369,607 | |||||
| Long-term debt, less current portion | 1,325,440 | 466,164 | |||||
| Non-current lease liability | 47,420 | 48,684 | |||||
| Other liabilities | 313,760 | 204,178 | |||||
| Total liabilities | 2,216,842 | 1,088,633 | |||||
| Equity: | |||||||
| Common stock, | 56 | 55 | |||||
| Additional paid-in capital | 2,964,997 | 2,900,747 | |||||
| Retained earnings | 420,314 | 542,471 | |||||
| Accumulated other comprehensive loss | (54,951 | ) | (24,881 | ) | |||
| Total Enovis Corporation equity | 3,330,416 | 3,418,392 | |||||
| Noncontrolling interest | 2,883 | 2,309 | |||||
| Total equity | 3,333,299 | 3,420,701 | |||||
| Total liabilities and equity | $ | 5,550,141 | $ | 4,509,334 | |||
Enovis Corporation
Condensed Consolidated Statements of Cash Flows
Dollars in thousands
(Unaudited)
| Nine Months Ended | |||||||
| September 27, 2024 | September 29, 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (121,615 | ) | $ | (35,811 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 210,394 | 160,493 | |||||
| Impairment of assets | 5,555 | — | |||||
| Stock-based compensation expense | 21,928 | 25,758 | |||||
| Non-cash interest expense | 3,539 | 2,117 | |||||
| Fair value gain on contingent acquisition shares | (19,922 | ) | — | ||||
| Loss on currency hedges | 11,123 | — | |||||
| Deferred income tax benefit | (29,472 | ) | (20,612 | ) | |||
| Loss on sale of property, plant and equipment | (2,116 | ) | (14,832 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Trade receivables, net | (29,187 | ) | (6,527 | ) | |||
| Inventories, net | (2,844 | ) | (29,917 | ) | |||
| Accounts payable | (11,503 | ) | (12,379 | ) | |||
| Other operating assets and liabilities | (10,706 | ) | (1,717 | ) | |||
| Net cash provided by operating activities | 25,174 | 66,573 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of property, plant and equipment and intangibles | (127,522 | ) | (94,279 | ) | |||
| Payments for acquisitions, net of cash received, and investments | (765,422 | ) | (131,387 | ) | |||
| Payment for settlement of derivatives | (4,645 | ) | — | ||||
| Net cash used in investing activities | (897,589 | ) | (183,095 | ) | |||
| 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 | 400,000 | |||||
| Repayments of borrowings on revolving credit facilities and other | (447,005 | ) | (47,345 | ) | |||
| Payment of debt issuance costs | (703 | ) | (8,000 | ) | |||
| Payments of tax withholding for stock-based awards | (4,772 | ) | — | ||||
| Proceeds from issuance of common stock, net | 1,555 | 1,489 | |||||
| Deferred consideration payments and other | (7,174 | ) | (1,668 | ) | |||
| Net cash provided by financing activities | 866,901 | 125,008 | |||||
| Effect of foreign exchange rates on Cash and cash equivalents | 480 | (652 | ) | ||||
| Increase (decrease) in Cash, cash equivalents and restricted cash | (5,034 | ) | 7,834 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 44,832 | 24,295 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 39,798 | $ | 32,129 | |||
| 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 | Nine Months Ended | ||||||||||||||||
| September 27, 2024 | September 29, 2023 | Growth Rate | September 27, 2024 | September 29, 2023 | Growth rate | ||||||||||||
| GAAP | GAAP | ||||||||||||||||
| (In millions) | |||||||||||||||||
| Prevention & Recovery: | |||||||||||||||||
| U.S. Bracing & Support | $ | 123.0 | $ | 118.4 | 3.9 | % | $ | 345.1 | $ | 337.7 | 2.2 | % | |||||
| U.S. Other P&R | 66.2 | 68.2 | (3.0) % | 200.5 | 198.3 | 1.1 | % | ||||||||||
| International P&R | 85.0 | 83.7 | 1.6 | % | 265.4 | 258.5 | 2.7 | % | |||||||||
| Total Prevention & Recovery | 274.2 | 270.3 | 1.5 | % | 811.0 | 794.5 | 2.1 | % | |||||||||
| Reconstructive: | |||||||||||||||||
| U.S. Reconstructive | 120.8 | 99.7 | 21.2 | % | 366.6 | 309.4 | 18.5 | % | |||||||||
| International Reconstructive | 110.2 | 47.5 | 131.8 | % | 369.0 | 148.3 | 148.8 | % | |||||||||
| Total Reconstructive | 231.0 | 147.2 | 56.9 | % | 735.6 | 457.7 | 60.7 | % | |||||||||
| Total | $ | 505.2 | $ | 417.5 | 21.0 | % | $ | 1,546.6 | $ | 1,252.2 | 23.5 | % | |||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 27, 2024 | September 29, 2023 | Growth Rate | Constant Currency Growth Rate | September 27, 2024 | September 29, 2023 | Growth Rate | Constant Currency Growth Rate | ||||||||||||||||
| Comparable Sales (1) | Comparable Sales (1) | ||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Prevention & Recovery: | |||||||||||||||||||||||
| U.S. Bracing & Support | $ | 123.0 | $ | 118.4 | 3.9 | % | 3.9 | % | $ | 345.1 | $ | 337.7 | 2.2 | % | 2.2 | % | |||||||
| U.S. Other P&R | 66.2 | 66.1 | 0.2 | % | 0.2 | % | 197.8 | 191.3 | 3.4 | % | 3.4 | % | |||||||||||
| International P&R | 85.0 | 82.2 | 3.5 | % | 2.6 | % | 263.8 | 254.3 | 3.7 | % | 3.6 | % | |||||||||||
| Total Prevention & Recovery | 274.2 | 266.6 | 2.9 | % | 2.6 | % | 806.7 | 783.3 | 3.0 | % | 2.9 | % | |||||||||||
| Reconstructive: | |||||||||||||||||||||||
| U.S. Reconstructive | 120.8 | 110.9 | 8.9 | % | 8.9 | % | 366.6 | 350.5 | 4.6 | % | 4.6 | % | |||||||||||
| International Reconstructive | 110.2 | 100.6 | 9.5 | % | 8.2 | % | 368.6 | 330.5 | 11.5 | % | 10.6 | % | |||||||||||
| Total Reconstructive | 231.0 | 211.5 | 9.2 | % | 8.6 | % | 735.2 | 681.0 | 8.0 | % | 7.5 | % | |||||||||||
| Total | $ | 505.2 | $ | 478.1 | 5.7 | % | 5.2 | % | $ | 1,541.8 | $ | 1,464.3 | 5.3 | % | 5.1 | % | |||||||
(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
What was Enovis (ENOV) revenue growth in Q3 2024?
What was Enovis (ENOV) earnings per share in Q3 2024?
What is Enovis (ENOV) full-year 2024 revenue guidance?
How did Enovis (ENOV) Reconstructive segment perform in Q3 2024?
