Orthofix Reports Fourth Quarter and Full Year 2023 Results
- Strong Q4 2023 performance with $200.4 million in net sales, a 64% increase.
- 15% growth in Bone Growth Therapies sales for four consecutive quarters.
- Non-GAAP Adjusted EBITDA of $20 million in Q4, a 96% growth over the previous year.
- Full-year net sales of $746.6 million, a 62% increase, with Non-GAAP adjusted EBITDA of $46.3 million, a 69% growth over the prior year.
- Company provided 2024 full-year guidance of $785 million to $795 million in net sales and Non-GAAP adjusted EBITDA of $62 million to $67 million.
- Cash, cash equivalents, and restricted cash totaled $37.8 million as of December 31, 2023.
- Orthofix will host a conference call to discuss the financial results for the year ended December 31, 2023.
- None.
Insights
The reported 64% increase in net sales on a reported basis and 7% on a pro forma constant currency basis for Orthofix Medical Inc. in Q4 2023 is a notable achievement, particularly given the 15% growth in Bone Growth Therapies. This performance indicates a robust demand for the company's products, which may be attributed to the effectiveness of their therapies and the strength of their sales strategies. The substantial growth in the Spinal Implants, Biologics and Enabling Technologies segment, with a reported 161.2% increase, is particularly impressive and warrants attention from investors considering the potential for this segment to drive future revenue.
However, the reported net loss of $22 million for the quarter and $151.4 million for the full year, alongside a decrease in cash and cash equivalents, raises concerns about the company's profitability and cash flow management. Although the non-GAAP adjusted EBITDA grew significantly, it is important to analyze the sustainability of these margins and the impact of non-recurring items on the reported figures. Investors should also consider the company's guidance for 2024, which forecasts continued growth and assess the realism of these projections in the context of the company's recent financial performance and market conditions.
The consistent double-digit sales increases in Bone Growth Therapies over four consecutive quarters suggest that Orthofix has a competitive edge in this niche market. The company's ability to achieve the strongest quarter of Bone Growth Therapies sales in its history could be indicative of successful market penetration and the potential for sustained growth in this area. Furthermore, the 13.5% growth in U.S. spine fixation net sales indicates a healthy demand for spinal solutions, which is a positive sign for the company's market position within the orthopedic sector.
When examining the broader industry, Orthofix's performance should be contextualized within the competitive landscape of medical devices, particularly in orthopedics and spine. Market trends, such as the increasing prevalence of musculoskeletal disorders and advancements in medical technology, are likely contributing to the company's growth. The international performance, especially the decline in International Spinal Implants, Biologics and Enabling Technologies, should be analyzed to understand the strategic adjustments needed to maintain growth in different regions.
The achievement of $32 million in annualized merger-related synergies suggests effective integration between Orthofix and SeaSpine, which could be a positive indicator for investors looking at the company's ability to realize cost efficiencies and scale operations. The impact of such synergies typically materializes in the form of reduced operational costs and increased bargaining power with suppliers, which can lead to improved margins over time.
It is also crucial to assess the long-term value creation potential from this merger, as the initial post-merger years are often characterized by integration efforts and realization of synergies. The company's guidance for the upcoming year and the projected increase in non-GAAP adjusted EBITDA may reflect the management's confidence in the merger's ongoing benefits. However, investors should closely monitor the execution of the integration strategy and the actual cost savings versus the projected figures.
Recent Highlights
-
Fourth quarter 2023 net sales of
$200.4 million 64% on a reported basis and7% on a pro forma constant currency basis -
Bone Growth Therapies net sales growth of
15% for the fourth quarter of 2023, marking four consecutive quarters with double-digit net sales increases, representing the strongest quarter of Bone Growth Therapies sales in the history of Orthofix -
U.S. Orthopedic net sales growth of11% for the full year 2023 -
U.S. spine fixation1 net sales growth of13.5% in Q4 2023 with net distributor additions since the third quarter of 2023 -
Fourth quarter 2023 net loss of
$22 million $20 million 10% of sales, representing96% growth over the fourth quarter of 2022 -
Achieved
$32 million
Fourth quarter net sales were
Full year net sales were
“We are pleased to report another quarter of strong performance as Orthofix completes its first full year as a combined company with SeaSpine. We delivered accelerated growth exiting 2023 and demonstrated resilience, increased internal efficiencies and cost synergies,” said Massimo Calafiore, President and Chief Executive Officer of Orthofix. “I am thrilled to join Orthofix at such a pivotal moment in the Company’s story, wherein the business fundamentals are strong, we are well positioned to deliver profitable growth in 2024, and we are continuing to accelerate our leverage on revenue. After reflecting on my first two months in this role, it is evident that Orthofix’s balanced and complementary product mix offers a differentiated advantage across multiple markets. I look forward to leveraging that unique portfolio platform to drive future value through profitable growth.”
1 Spine fixation is comprised of the Company's Spinal Implants product category, excluding motion preservation product offerings
Financial Results Overview
Fourth Quarter 2023 Net Sales and Financial Results
The following table provides net sales by major product category by reporting segment on a reporting basis:
|
|
Three Months Ended December 31, |
|
|||||||||||||
(Unaudited, |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
Constant
|
|
||||
Bone Growth Therapies |
|
$ |
58.8 |
|
|
$ |
51.0 |
|
|
|
15.3 |
% |
|
|
15.3 |
% |
Spinal Implants, Biologics, and Enabling Technologies |
|
|
111.0 |
|
|
|
42.5 |
|
|
|
161.2 |
% |
|
|
160.7 |
% |
Global Spine |
|
|
169.8 |
|
|
|
93.5 |
|
|
|
81.6 |
% |
|
|
81.4 |
% |
Global Orthopedics |
|
|
30.6 |
|
|
|
28.7 |
|
|
|
6.8 |
% |
|
|
2.7 |
% |
Net sales |
|
$ |
200.4 |
|
|
$ |
122.2 |
|
|
|
64.0 |
% |
|
|
62.9 |
% |
Further, the following table provides net sales by major product category by reporting segment on a pro forma basis:
|
|
Three Months Ended December 31, |
|
|||||||||||||
(Unaudited, |
|
2023 |
|
|
2022 Pro Forma |
|
|
Change |
|
|
Constant
|
|
||||
Bone Growth Therapies |
|
$ |
58.8 |
|
|
$ |
51.0 |
|
|
|
15.3 |
% |
|
|
15.3 |
% |
|
|
|
100.6 |
|
|
|
96.4 |
|
|
|
4.4 |
% |
|
|
4.4 |
% |
International Spinal Implants, Biologics, and Enabling Technologies |
|
|
10.4 |
|
|
|
10.3 |
|
|
|
0.7 |
% |
|
|
0.1 |
% |
Total Spinal Implants, Biologics, and Enabling Technologies |
|
|
111.0 |
|
|
|
106.7 |
|
|
|
4.0 |
% |
|
|
4.0 |
% |
Global Spine |
|
|
169.8 |
|
|
|
157.7 |
|
|
|
7.7 |
% |
|
|
7.6 |
% |
Global Orthopedics |
|
|
30.6 |
|
|
|
28.7 |
|
|
|
6.8 |
% |
|
|
2.7 |
% |
Net sales |
|
$ |
200.4 |
|
|
$ |
186.4 |
|
|
|
7.5 |
% |
|
|
6.9 |
% |
Gross margins were
Net loss was
Full Year 2023 Net Sales and Financial Results
The following table provides net sales by major product category by reporting segment on a reporting basis:
|
|
Year Ended December 31, |
|
|||||||||||||
(Unaudited, |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
Constant
|
|
||||
Bone Growth Therapies |
|
$ |
212.5 |
|
|
$ |
187.2 |
|
|
|
13.5 |
% |
|
|
13.5 |
% |
Spinal Implants, Biologics, and Enabling Technologies |
|
|
418.8 |
|
|
|
166.0 |
|
|
|
152.4 |
% |
|
|
152.4 |
% |
Global Spine |
|
|
631.3 |
|
|
|
353.2 |
|
|
|
78.8 |
% |
|
|
78.7 |
% |
Global Orthopedics |
|
|
115.3 |
|
|
|
107.5 |
|
|
|
7.2 |
% |
|
|
5.2 |
% |
Net sales |
|
$ |
746.6 |
|
|
$ |
460.7 |
|
|
|
62.1 |
% |
|
|
61.6 |
% |
Further, the following table provides net sales by major product category by reporting segment on a pro forma basis:
|
|
Year Ended December 31, |
||||||||||||||
(Unaudited, |
|
2023 |
|
|
2022 Pro Forma |
|
|
Change |
|
Constant
|
||||||
Bone Growth Therapies |
|
$ |
212.5 |
|
|
$ |
187.2 |
|
|
|
13.5 |
% |
|
|
13.5 |
% |
|
|
|
379.4 |
|
|
|
352.5 |
|
|
|
7.6 |
% |
|
|
7.6 |
% |
International Spinal Implants, Biologics, and Enabling Technologies |
|
|
39.4 |
|
|
|
53.6 |
|
|
|
(26.5 |
%) |
|
|
(26.6 |
%) |
Total Spinal Implants, Biologics, and Enabling Technologies** |
|
|
418.8 |
|
|
|
406.0 |
|
|
|
3.1 |
% |
|
|
3.1 |
% |
Global Spine |
|
|
631.3 |
|
|
|
593.3 |
|
|
|
6.4 |
% |
|
|
6.4 |
% |
Global Orthopedics |
|
|
115.3 |
|
|
|
107.5 |
|
|
|
7.2 |
% |
|
|
5.2 |
% |
Net sales*** |
|
$ |
746.6 |
|
|
$ |
700.8 |
|
|
|
6.5 |
% |
|
|
6.2 |
% |
** Pro forma net sales for 2022 for Spinal Implants, Biologics, and Enabling Technologies include the impact of final Spinal Implant stocking orders to European distributors prior to SeaSpine's exit from that market. Excluding the impact of these transactions, net sales growth for this product category was
*** Pro forma net sales for 2022 include the impact of final Spinal Implant stocking orders to European distributors prior to SeaSpine's exit from that market. Excluding the impact of these transactions, net sales growth was
Gross margins were
Net loss was
Liquidity
As of December 31, 2023, cash, cash equivalents, and restricted cash totaled
Business Outlook
The Company is providing 2024 full year guidance as follows:
-
Net sales to range between
$785 million $795 million 5% to7% year-over-year on a constant currency basis. These expectations are based on the current foreign currency exchange rates and do not take into account any additional potential exchange rate changes that may occur this year. -
Non-GAAP adjusted EBITDA of
$62 million $67 million $15.7 million $20.7 million - Exit Q4 2024 free cash flow positive
Conference Call
Orthofix will host a conference call today at 4:30 PM Eastern time to discuss the Company's financial results for the year ended December 31, 2023. Interested parties may access the conference call by dialing (888) 330-2508 in the
About Orthofix
Orthofix is a leading global spine and orthopedics company with a comprehensive portfolio of biologics, innovative spinal hardware, bone growth therapies, specialized orthopedic solutions and a leading surgical navigation system. Its products are distributed in more than 60 countries worldwide.
The Company is headquartered in
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, relating to our business and financial outlook, which are based on our current beliefs, assumptions, expectations, estimates, forecasts and projections. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “intends,” “predicts,” “potential,” or “continue” or other comparable terminology. Forward-looking statements in this communication include the Company's expectations regarding net sales and adjusted EBITDA for the year ended December 31, 2024. Forward-looking statements are not guarantees of our future performance, are based on our current expectations and assumptions regarding our business, the economy and other future conditions, and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, including the risks described in Part I, Item 1A under the heading Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). Factors that could cause future results to differ from those expressed by forward-looking statements include, but are not limited to, (i) our ability to maintain operations to support our customers and patients in the near-term and to capitalize on future growth opportunities, (ii) risks associated with acceptance of surgical products and procedures by surgeons and hospitals, (iii) development and acceptance of new products or product enhancements, (iv) clinical and statistical verification of the benefits achieved via the use of our products, (v) our ability to adequately manage inventory, (vi) our ability to recruit and retain management and key personnel, (vii) global economic instability and potential supply chain disruption caused by Russia’s invasion of
This list of risks, uncertainties, and other factors is not complete. We discuss some of these matters more fully, as well as certain risk factors that could affect our business, financial condition, results of operations, and prospects, in reports we file from time-to-time with the SEC, which are available to read at www.sec.gov. Any or all forward-looking statements that we make may turn out to be wrong (due to inaccurate assumptions that we make or otherwise), and our actual outcomes and results may differ materially from those expressed in these forward-looking statements. You should not place undue reliance on any of these forward-looking statements. Further, any forward-looking statement speaks only as of the date hereof, unless it is specifically otherwise stated to be made as of a different date. We undertake no obligation to update, and expressly disclaim any duty to update, our forward-looking statements, whether as a result of circumstances or events that arise after the date hereof, new information, or otherwise, except as required by law.
The Company is unable to provide expectations of GAAP income (loss) before income taxes, the closest comparable GAAP measures to Adjusted EBITDA (which is a non-GAAP measure), on a forward-looking basis because the Company is unable to predict without unreasonable efforts the ultimate outcome of matters (including acquisition-related expenses, accounting fair value adjustments, and other such items) that will determine the quantitative amount of the items excluded in calculating Adjusted EBITDA, which items are further described in the reconciliation tables and related descriptions below. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP.
ORTHOFIX MEDICAL INC. Condensed Consolidated Statements of Operations |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
( |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
(Unaudited) |
|
|
||||||||||||
Net sales |
|
$ |
200,415 |
|
|
$ |
122,229 |
|
|
$ |
746,641 |
|
|
$ |
460,713 |
|
Cost of sales |
|
|
63,785 |
|
|
|
33,053 |
|
|
|
260,368 |
|
|
|
123,544 |
|
Gross profit |
|
|
136,630 |
|
|
|
89,176 |
|
|
|
486,273 |
|
|
|
337,169 |
|
Sales and marketing |
|
|
97,749 |
|
|
|
59,324 |
|
|
|
385,736 |
|
|
|
228,810 |
|
General and administrative |
|
|
34,535 |
|
|
|
25,470 |
|
|
|
144,659 |
|
|
|
79,966 |
|
Research and development |
|
|
18,941 |
|
|
|
13,152 |
|
|
|
80,231 |
|
|
|
49,065 |
|
Acquisition-related amortization and remeasurement |
|
|
3,720 |
|
|
|
2,274 |
|
|
|
14,757 |
|
|
|
(7,404 |
) |
Operating loss |
|
|
(18,315 |
) |
|
|
(11,044 |
) |
|
|
(139,110 |
) |
|
|
(13,268 |
) |
Interest expense, net |
|
|
(4,500 |
) |
|
|
(229 |
) |
|
|
(8,631 |
) |
|
|
(1,288 |
) |
Other income (expense), net |
|
|
766 |
|
|
|
4,286 |
|
|
|
(938 |
) |
|
|
(3,150 |
) |
Loss before income taxes |
|
|
(22,049 |
) |
|
|
(6,987 |
) |
|
|
(148,679 |
) |
|
|
(17,706 |
) |
Income tax expense |
|
|
(125 |
) |
|
|
(75 |
) |
|
|
(2,716 |
) |
|
|
(2,043 |
) |
Net loss |
|
$ |
(22,174 |
) |
|
$ |
(7,062 |
) |
|
$ |
(151,395 |
) |
|
$ |
(19,749 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.59 |
) |
|
$ |
(0.35 |
) |
|
$ |
(4.12 |
) |
|
$ |
(0.98 |
) |
Diluted |
|
|
(0.59 |
) |
|
|
(0.35 |
) |
|
|
(4.12 |
) |
|
|
(0.98 |
) |
Weighted average number of common shares (in millions): |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
37.3 |
|
|
|
20.2 |
|
|
|
36.7 |
|
|
|
20.1 |
|
Diluted |
|
|
37.3 |
|
|
|
20.2 |
|
|
|
36.7 |
|
|
|
20.1 |
|
ORTHOFIX MEDICAL INC. Condensed Consolidated Balance Sheets |
||||||||
( |
|
December 31, 2023 |
|
December 31, 2022 |
||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
33,107 |
|
|
$ |
50,700 |
|
Restricted cash |
|
|
4,650 |
|
|
|
— |
|
Accounts receivable, net of allowances of |
|
|
128,098 |
|
|
|
82,857 |
|
Inventories |
|
|
222,166 |
|
|
|
100,150 |
|
Prepaid expenses and other current assets |
|
|
32,422 |
|
|
|
22,283 |
|
Total current assets |
|
|
420,443 |
|
|
|
255,990 |
|
Property, plant, and equipment, net |
|
|
159,060 |
|
|
|
58,229 |
|
Intangible assets, net |
|
|
117,490 |
|
|
|
47,388 |
|
Goodwill |
|
|
194,934 |
|
|
|
71,317 |
|
Other long-term assets |
|
|
33,388 |
|
|
|
25,705 |
|
Total assets |
|
$ |
925,315 |
|
|
$ |
458,629 |
|
Liabilities and shareholders’ equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
58,357 |
|
|
$ |
27,598 |
|
Current portion of long-term debt |
|
|
1,250 |
|
|
|
— |
|
Current portion of finance lease liability |
|
|
708 |
|
|
|
652 |
|
Other current liabilities |
|
|
104,908 |
|
|
|
55,374 |
|
Total current liabilities |
|
|
165,223 |
|
|
|
83,624 |
|
Long-term debt |
|
|
93,107 |
|
|
|
— |
|
Long-term portion of finance lease liability |
|
|
18,532 |
|
|
|
19,239 |
|
Other long-term liabilities |
|
|
49,723 |
|
|
|
18,906 |
|
Total liabilities |
|
|
326,585 |
|
|
|
121,769 |
|
Contingencies |
|
|
|
|
||||
Shareholders’ equity |
|
|
|
|
||||
Common shares |
|
|
3,717 |
|
|
|
2,016 |
|
Additional paid-in capital |
|
|
746,450 |
|
|
|
334,969 |
|
Retained earnings (accumulated deficit) |
|
|
(150,144 |
) |
|
|
1,251 |
|
Accumulated other comprehensive loss |
|
|
(1,293 |
) |
|
|
(1,376 |
) |
Total shareholders’ equity |
|
|
598,730 |
|
|
|
336,860 |
|
Total liabilities and shareholders’ equity |
|
$ |
925,315 |
|
|
$ |
458,629 |
|
ORTHOFIX MEDICAL INC.
Non-GAAP Financial Measures
The following tables present reconciliations of various financial measures calculated in accordance with
Adjusted Gross Profit and Adjusted Gross Margin
|
|
Three Months Ended December 31, |
||||||||||||||
(Unaudited, |
|
2023 |
|
|
Orthofix
|
|
SeaSpine
|
|
Pro Forma
|
|||||||
Gross profit |
|
$ |
136,630 |
|
|
$ |
89,176 |
|
|
$ |
38,515 |
|
|
$ |
127,691 |
|
Share-based compensation expense |
|
|
462 |
|
|
|
217 |
|
|
|
102 |
|
|
|
319 |
|
SeaSpine merger-related costs |
|
|
214 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Strategic investments |
|
|
125 |
|
|
|
439 |
|
|
|
— |
|
|
|
439 |
|
Acquisition-related fair value adjustments |
|
|
7,037 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amortization/Depreciation of Acquired Long-Lived Assets |
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Medical device regulation |
|
|
(72 |
) |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Adjusted gross profit |
|
$ |
144,768 |
|
|
$ |
89,833 |
|
|
$ |
38,617 |
|
|
$ |
128,450 |
|
Adjusted gross margin |
|
|
72.2 |
% |
|
|
73.5 |
% |
|
|
60.2 |
% |
|
|
68.9 |
% |
|
|
Year Ended December 31, |
||||||||||||||
(Unaudited, |
|
2023 |
|
|
Orthofix
|
|
SeaSpine
|
|
Pro Forma
|
|||||||
Gross profit |
|
$ |
486,273 |
|
|
$ |
337,169 |
|
|
$ |
141,834 |
|
|
$ |
479,003 |
|
Share-based compensation expense |
|
|
1,878 |
|
|
|
827 |
|
|
|
365 |
|
|
|
1,192 |
|
SeaSpine merger-related costs |
|
|
6,861 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Strategic investments |
|
|
389 |
|
|
|
1,334 |
|
|
|
— |
|
|
|
1,334 |
|
Acquisition-related fair value adjustments |
|
|
36,044 |
|
|
|
— |
|
|
|
208 |
|
|
|
208 |
|
Amortization/Depreciation of Acquired Long-Lived Assets |
|
|
1,196 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Medical device regulation |
|
|
604 |
|
|
|
15 |
|
|
|
— |
|
|
|
15 |
|
Adjusted gross profit |
|
$ |
533,245 |
|
|
$ |
339,345 |
|
|
$ |
142,407 |
|
|
$ |
481,752 |
|
Adjusted gross margin |
|
|
71.4 |
% |
|
|
73.7 |
% |
|
|
59.3 |
% |
|
|
68.7 |
% |
Adjusted EBITDA
|
|
Three Months Ended December 31, |
|||||||||||||||||
(Unaudited, |
|
2023 |
|
|
|
Orthofix
|
|
|
|
SeaSpine
|
|
|
Pro Forma
|
||||||
Loss before income taxes |
|
$ |
(22,049 |
) |
|
$ |
(6,987 |
) |
|
$ |
(20,287 |
) |
|
$ |
(27,274 |
) |
|||
Interest expense, net |
|
|
4,500 |
|
|
|
229 |
|
|
|
202 |
|
|
|
431 |
|
|||
Depreciation and amortization |
|
|
13,969 |
|
|
|
7,421 |
|
|
|
4,349 |
|
|
|
11,770 |
|
|||
Share-based compensation expense |
|
|
3,167 |
|
|
|
4,923 |
|
|
|
3,412 |
|
|
|
8,335 |
|
|||
Foreign exchange impact |
|
|
(2,638 |
) |
|
|
(4,195 |
) |
|
|
(147 |
) |
|
|
(4,342 |
) |
|||
SeaSpine merger-related costs |
|
|
2,261 |
|
|
9,073 |
|
|
2,616 |
|
|
|
11,689 |
|
|||||
Strategic investments |
|
|
389 |
|
|
|
771 |
|
|
|
(16 |
) |
|
|
755 |
|
|||
Acquisition-related fair value adjustments |
|
|
6,486 |
|
|
|
200 |
|
|
|
— |
|
|
|
200 |
|
|||
(Gain) loss on investments |
|
|
1,781 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|||
Litigation and investigation costs |
|
|
8,842 |
|
|
|
337 |
|
|
|
1,066 |
|
|
|
1,403 |
|
|||
Medical device regulation |
|
|
1,927 |
|
|
|
3,481 |
|
|
|
— |
|
|
|
3,481 |
|
|||
Business interruption - COVID-19 |
|
|
— |
|
|
|
513 |
|
|
|
— |
|
|
|
513 |
|
|||
Succession charges |
|
|
1,006 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|||
Spinal set instrument replacement expense |
|
|
— |
|
|
|
— |
|
|
|
2,630 |
|
|
|
2,630 |
|
|||
European sales and marketing organization restructuring |
|
|
— |
|
|
|
— |
|
|
|
426 |
|
|
|
426 |
|
|||
Adjusted EBITDA |
|
$ |
19,641 |
|
|
$ |
15,766 |
|
|
$ |
(5,749 |
) |
|
$ |
10,017 |
|
|||
|
|
Year Ended December 31, |
|||||||||||||||||
(Unaudited, |
|
2023 |
|
|
|
Orthofix
|
|
|
|
SeaSpine
|
|
|
Pro Forma
|
||||||
Loss before income taxes |
|
$ |
(148,679 |
) |
|
$ |
(17,706 |
) |
|
$ |
(67,324 |
) |
|
$ |
(85,030 |
) |
|||
Interest expense, net |
|
|
8,631 |
|
|
|
1,288 |
|
|
|
644 |
|
|
|
1,932 |
|
|||
Depreciation and amortization |
|
|
53,063 |
|
|
|
29,019 |
|
|
|
17,187 |
|
|
|
46,206 |
|
|||
Share-based compensation expense |
|
|
35,707 |
|
|
|
18,443 |
|
|
|
13,584 |
|
|
|
32,027 |
|
|||
Foreign exchange impact |
|
|
(1,581 |
) |
|
|
3,291 |
|
|
|
387 |
|
|
|
3,678 |
|
|||
SeaSpine merger-related costs |
|
|
36,623 |
|
|
|
12,010 |
|
|
|
4,028 |
|
|
|
16,038 |
|
|||
Strategic investments |
|
|
2,272 |
|
|
|
4,018 |
|
|
|
362 |
|
|
|
4,380 |
|
|||
Acquisition-related fair value adjustments |
|
|
33,393 |
|
|
|
(15,595 |
) |
|
|
208 |
|
|
|
(15,387 |
) |
|||
(Gain) loss on investments |
|
|
1,781 |
|
|
|
188 |
|
|
|
— |
|
|
|
188 |
|
|||
Litigation and investigation costs |
|
|
14,453 |
|
|
|
803 |
|
|
|
1,610 |
|
|
|
2,413 |
|
|||
Medical device regulation |
|
|
9,446 |
|
|
|
10,261 |
|
|
|
— |
|
|
|
10,261 |
|
|||
Business interruption - COVID-19 |
|
|
— |
|
|
|
2,387 |
|
|
|
— |
|
|
|
2,387 |
|
|||
Succession charges |
|
|
1,176 |
|
|
|
146 |
|
|
|
— |
|
|
|
146 |
|
|||
Spinal set instrument replacement expense |
|
|
— |
|
|
|
— |
|
|
|
7,179 |
|
|
|
7,179 |
|
|||
European sales and marketing organization restructuring |
|
|
— |
|
|
|
— |
|
|
|
984 |
|
|
|
984 |
|
|||
Adjusted EBITDA |
|
$ |
46,285 |
|
|
$ |
48,553 |
|
|
$ |
(21,151 |
) |
|
$ |
27,402 |
|
|||
Cash Flow and Free Cash Flow
|
|
Year Ended December 31, |
|||||||||||||||||
(Unaudited, |
|
2023 |
|
|
|
Orthofix
|
|
|
SeaSpine
|
|
|
Pro Forma
|
|||||||
Net cash from operating activities |
|
$ |
(45,753 |
) |
|
$ |
(11,538 |
) |
|
$ |
(38,157 |
) |
|
$ |
(49,695 |
) |
|||
Net cash from investing activities |
|
|
(33,131 |
) |
|
|
(24,534 |
) |
|
|
(40,325 |
) |
|
|
(64,859 |
) |
|||
Net cash from financing activities |
|
|
65,322 |
|
|
|
(78 |
) |
|
|
24,654 |
|
|
|
24,576 |
|
|||
Effect of exchange rate changes on cash |
|
|
619 |
|
|
|
(997 |
) |
|
|
140 |
|
|
|
(857 |
) |
|||
Net change in cash, cash equivalents, and restricted cash |
|
$ |
(12,943 |
) |
|
$ |
(37,147 |
) |
|
$ |
(53,688 |
) |
|
$ |
(90,835 |
) |
|||
|
|
Year Ended December 31, |
|||||||||||||||||
(Unaudited, |
|
2023 |
|
|
|
Orthofix
|
|
|
SeaSpine
|
|
|
Pro Forma
|
|||||||
Net cash from operating activities |
|
$ |
(45,753 |
) |
|
$ |
(11,538 |
) |
|
$ |
(38,157 |
) |
|
$ |
(49,695 |
) |
|||
Capital expenditures |
|
|
(62,050 |
) |
|
|
(23,160 |
) |
|
|
(37,752 |
) |
|
|
(60,912 |
) |
|||
Free cash flow |
|
$ |
(107,803 |
) |
|
$ |
(34,698 |
) |
|
$ |
(75,909 |
) |
|
$ |
(110,607 |
) |
|||
Net Income and EPS
|
|
Three Months Ended December 31, |
|||||||||||||||||
(Unaudited, |
|
2023 |
|
|
|
Orthofix
|
|
|
SeaSpine
|
|
|
Pro Forma
|
|||||||
Net loss |
|
$ |
(22,174 |
) |
|
$ |
(7,062 |
) |
|
$ |
(18,958 |
) |
|
$ |
(26,020 |
) |
|||
Weighted average shares outstanding (in millions) |
|
|
37.3 |
|
|
|
20.2 |
|
|
|
15.4 |
|
|
|
35.6 |
|
|||
EPS |
|
$ |
(0.59 |
) |
|
$ |
(0.35 |
) |
|
$ |
(1.23 |
) |
|
$ |
(0.73 |
) |
|||
|
|
Year Ended December 31, |
|||||||||||||||||
(Unaudited, |
|
2023 |
|
|
|
Orthofix
|
|
|
SeaSpine
|
|
|
Pro Forma
|
|||||||
Net loss |
|
$ |
(151,395 |
) |
|
$ |
(19,749 |
) |
|
$ |
(65,009 |
) |
|
$ |
(84,758 |
) |
|||
Weighted average shares outstanding |
|
|
36.7 |
|
|
|
20.1 |
|
|
|
15.4 |
|
|
|
35.5 |
|
|||
EPS |
|
$ |
(4.12 |
) |
|
$ |
(0.98 |
) |
|
$ |
(4.22 |
) |
|
$ |
(2.39 |
) |
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305883308/en/
Company Contact
Louisa Smith, Gilmartin Group
ir@orthofix.com
Source: Orthofix Medical Inc.
FAQ
What were Orthofix Medical Inc.'s (OFIX) net sales for the fourth quarter of 2023?
How much was the net loss for Orthofix in the fourth quarter of 2023?
What was the Non-GAAP Adjusted EBITDA for Orthofix in the fourth quarter of 2023?
What was the full-year net sales for Orthofix in 2023?
What is Orthofix's 2024 full-year guidance for net sales?
