Orthofix Reports Second Quarter 2024 Results and Raises Full-Year 2024 Financial Guidance
Orthofix Medical Inc. (NASDAQ:OFIX) reported strong Q2 2024 results, with net sales of $198.6 million, up 6% year-over-year. The company saw significant growth across all segments, particularly in Bone Growth Therapies (12% increase) and U.S. Spine Fixation (12% growth). Despite a net loss of $(33.4) million, Orthofix achieved a non-GAAP adjusted EBITDA of $16.6 million, marking a substantial improvement from the previous year.
Based on these positive results, Orthofix has raised its full-year 2024 guidance. The company now expects net sales between $795-$800 million and non-GAAP adjusted EBITDA of $64-$69 million. Notably, Orthofix anticipates achieving positive free cash flow in the second half of 2024, earlier than initially expected.
Orthofix Medical Inc. (NASDAQ:OFIX) ha riportato risultati solidi per il secondo trimestre 2024, con vendite nette pari a 198,6 milioni di dollari, in aumento del 6% rispetto all'anno precedente. L'azienda ha registrato una crescita significativa in tutti i segmenti, in particolare nelle terapie per la crescita ossea (aumento del 12%) e nella fissazione spinale negli Stati Uniti (crescita del 12%). Nonostante una perdita netta di $(33,4) milioni, Orthofix ha raggiunto un EBITDA rettificato non-GAAP di 16,6 milioni di dollari, segnando un miglioramento sostanziale rispetto all'anno precedente.
Basandosi su questi risultati positivi, Orthofix ha aumentato le previsioni per l'intero anno 2024. L'azienda si aspetta ora vendite nette comprese tra 795 e 800 milioni di dollari e un EBITDA rettificato non-GAAP tra 64 e 69 milioni di dollari. È importante notare che Orthofix prevede di raggiungere un flusso di cassa libero positivo nella seconda metà del 2024, prima del previsto inizialmente.
Orthofix Medical Inc. (NASDAQ:OFIX) reportó sólidos resultados del segundo trimestre de 2024, con ventas netas de 198.6 millones de dólares, un aumento del 6% interanual. La compañía experimentó un crecimiento significativo en todos los segmentos, especialmente en terapias de crecimiento óseo (aumento del 12%) y fijación de columna en EE.UU. (crecimiento del 12%). A pesar de una pérdida neta de $(33.4) millones, Orthofix logró un EBITDA ajustado no-GAAP de 16.6 millones de dólares, marcando una mejora sustancial con respecto al año anterior.
Con base en estos resultados positivos, Orthofix ha aumentado su guía para todo el año 2024. La compañía ahora espera ventas netas entre 795 y 800 millones de dólares y un EBITDA ajustado no-GAAP de 64 a 69 millones de dólares. Cabe destacar que Orthofix anticipa lograr flujo de caja libre positivo en la segunda mitad de 2024, antes de lo inicialmente esperado.
Orthofix Medical Inc. (NASDAQ:OFIX)은 2024년 2분기 실적을 발표하며 1억9860만 달러의 순매출을 기록하였고, 이는 전년 대비 6% 증가한 수치입니다. 회사는 모든 세그먼트에서 상당한 성장을 경험했으며, 특히 골 성장 요법(12% 증가)과 미국 척추 고정(12% 성장)에서 두각을 나타냈습니다. 3천3백40만 달러의 순손실에도 불구하고 Orthofix는 비-GAAP 조정 EBITDA 1천660만 달러를 달성하여 지난해보다 크게 개선된 성과를 보였습니다.
이러한 긍정적인 결과를 바탕으로 Orthofix는 2024년 전체 매출 가이던스를 상향 조정했습니다. 회사는 이제 순매출이 7억9500만~8억 달러, 비-GAAP 조정 EBITDA가 6천400만~6천900만 달러에 이를 것으로 예상하고 있습니다. 특히 Orthofix는 2024년 하반기에는 긍정적인 자유 현금 흐름을 달성할 것으로 예상합니다, 이는 원래 예상보다 빠른 시점입니다.
Orthofix Medical Inc. (NASDAQ:OFIX) a rapporté de bons résultats pour le deuxième trimestre 2024, avec des ventes nettes de 198,6 millions de dollars, en hausse de 6 % par rapport à l'année précédente. L'entreprise a connu une croissance significative dans tous les segments, en particulier dans les thérapies de croissance osseuse (augmentation de 12 %) et la fixation spinale aux États-Unis (croissance de 12 %). Bien qu'elle ait enregistré une perte nette de $(33,4) millions, Orthofix a atteint un EBITDA ajusté non-GAAP de 16,6 millions de dollars, marquant une amélioration substantielle par rapport à l'année précédente.
Sur la base de ces résultats positifs, Orthofix a relevé ses prévisions pour l'ensemble de l'année 2024. L'entreprise s'attend désormais à des ventes nettes comprises entre 795 et 800 millions de dollars et un EBITDA ajusté non-GAAP de 64 à 69 millions de dollars. Il est à noter qu'Orthofix anticipe d'atteindre un flux de trésorerie libre positif au deuxième semestre 2024, plus tôt que prévu initialement.
Orthofix Medical Inc. (NASDAQ:OFIX) berichtete über starke Q2 2024 Ergebnisse, mit Nettoumsätzen von 198,6 Millionen Dollar, was einem Anstieg von 6 % im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete ein signifikantes Wachstum in allen Segmenten, insbesondere in den Knochenwachstums-Therapien (12 % Zuwachs) und US-Spinalfixationen (12 % Wachstum). Trotz eines Nettoverlusts von $(33,4) Millionen erzielte Orthofix ein nicht-GAAP angepasstes EBITDA von 16,6 Millionen Dollar, was eine wesentliche Verbesserung gegenüber dem Vorjahr darstellt.
Basierend auf diesen positiven Ergebnissen hat Orthofix seine Prognose für das Gesamtjahr 2024 angehoben. Das Unternehmen erwartet nun Nettoumsätze zwischen 795 und 800 Millionen Dollar sowie ein nicht-GAAP angepasstes EBITDA zwischen 64 und 69 Millionen Dollar. Bemerkenswerterweise erwartet Orthofix, dass es in der zweiten Jahreshälfte 2024 einen positiven freien Cashflow erreichen wird, früher als zunächst erwartet.
- Q2 2024 net sales increased 6% to $198.6 million
- Bone Growth Therapies sales grew 12% year-over-year
- U.S. Spine Fixation sales increased 12%, outpacing market growth
- Non-GAAP adjusted EBITDA improved to $16.6 million, with margin expansion of 310 basis points
- Full-year 2024 guidance raised for both net sales and adjusted EBITDA
- Company expects positive free cash flow in second half of 2024, earlier than anticipated
- Reported net loss of $(33.4) million in Q2 2024
- Earnings per share (EPS) of $(0.88) on a reported basis
Insights
Orthofix's Q2 2024 results show strong performance and improved financial health. Key highlights include:
- Net sales of
$198.6 million , up6% year-over-year - Bone Growth Therapies segment grew
12% , marking six consecutive quarters of double-digit growth - U.S. Spine Fixation grew
12% , outpacing market growth - Non-GAAP adjusted EBITDA of
$16.6 million , up$6.7 million from Q2 2023 - Adjusted EBITDA margin expanded 310 basis points to
8.4%
The company's raised guidance for 2024 indicates management's confidence in sustained growth. The expected positive free cash flow in H2 2024 is particularly noteworthy, suggesting improved operational efficiency and financial stability. However, the continued net loss of
Orthofix's Q2 results demonstrate strong market positioning in key segments. The
The appointment of four new executive team members could bring fresh perspectives and expertise, potentially driving further innovation and market expansion. However, investors should monitor how these changes impact operational efficiency and strategy execution in the coming quarters.
The raised guidance and earlier-than-expected positive free cash flow projection indicate improving financial health, which could support future R&D investments and market expansion efforts.
Orthofix's Q2 performance reflects positive market trends in the orthopedic and spine sectors. The consistent double-digit growth in Bone Growth Therapies suggests increasing adoption of non-invasive treatments. The strong performance in U.S. Spine Fixation, growing at
The
The raised full-year guidance suggests management's confidence in sustaining this growth trajectory. However, investors should remain cautious of potential market saturation and increasing competition in these high-growth segments.
Recent Highlights
-
Second quarter 2024 net sales of
$198.6 million 6% on a reported and constant currency basis compared to second quarter 2023 -
Bone Growth Therapies (BGT) net sales growth of
12% compared to second quarter 2023, marking six consecutive quarters with double-digit net sales increases -
U.S. Spine Fixation1 net sales growth of12% compared to second quarter 2023, driven by distribution expansion and further penetration in existing accounts -
Global Orthopedics net sales growth of
5% on a reported basis and6% on a constant currency basis compared to second quarter 2023 -
Second quarter 2024 net loss of
$(33.4) million $16.6 million $6.7 million - Significant improvement in cash usage, paving the way for earlier than expected positive free cash flow for the second half of 2024
- Announced appointments of four new executive team members, further strengthening the breadth and depth of the Company's leadership team
-
Increases full-year 2024 net sales guidance to
$795 million $800 million $790 million $795 million $64 million $69 million $62 million $67 million
Second quarter net sales were
“We delivered another strong quarter driven by successful execution of our key growth priorities,” said Massimo Calafiore, President and Chief Executive Officer. “Highlights in the quarter included notable revenue growth across each of our business segments where our performance was led primarily by strength in our
1 |
Spine fixation is comprised of the Company's Spinal Implants product category, excluding motion preservation product offerings |
Financial Results Overview
Second Quarter 2024 Net Sales and Financial Results
The following table provides net sales by major product category by reporting segment:
|
|
Three Months Ended June 30, |
|
|||||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
Change |
|
|
Constant
|
|
||||
Bone Growth Therapies |
|
$ |
59.1 |
|
|
$ |
52.7 |
|
|
|
12.3 |
% |
|
|
12.3 |
% |
Spinal Implants, Biologics and Enabling Technologies |
|
|
108.9 |
|
|
|
105.3 |
|
|
|
3.4 |
% |
|
|
3.4 |
% |
Global Spine |
|
|
168.0 |
|
|
|
158.0 |
|
|
|
6.4 |
% |
|
|
6.4 |
% |
Global Orthopedics |
|
|
30.6 |
|
|
|
29.0 |
|
|
|
5.3 |
% |
|
|
6.3 |
% |
Net sales |
|
$ |
198.6 |
|
|
$ |
187.0 |
|
|
|
6.2 |
% |
|
|
6.4 |
% |
Gross margins were
Net loss was
Liquidity
Cash, cash equivalents, and restricted cash on June 30, 2024, totaled
Business Outlook
The Company is increasing its 2024 full-year guidance as follows:
-
Net sales are expected to range between
$795 million $800 million 6.7% to7.4% year-over-year on a constant currency basis, an increase from the previous guidance range of$790 million $795 million -
Non-GAAP adjusted EBITDA is expected to range from
$64 million $69 million $62 million $67 million - Company now expects to be free cash flow positive for the second half of 2024.
Conference Call
Orthofix will host a conference call today at 8:30 AM Eastern time to discuss the Company's financial results for the quarter ended June 30, 2024. 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, adjusted EBITDA, and free cash flow 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”), and in Part II, Item 1A under the heading Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. 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, and (vii) the other risks and uncertainties more fully described in our periodic filings with the Securities and Exchange Commission (the “SEC”). As a result of these various risks, our actual outcomes and results may differ materially from those expressed in these forward-looking statements.
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 |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
|
$ |
198,620 |
|
|
$ |
187,016 |
|
|
$ |
387,228 |
|
|
$ |
362,220 |
|
Cost of sales |
|
|
63,871 |
|
|
|
67,465 |
|
|
|
125,237 |
|
|
|
132,340 |
|
Gross profit |
|
|
134,749 |
|
|
|
119,551 |
|
|
|
261,991 |
|
|
|
229,880 |
|
Sales and marketing |
|
|
100,224 |
|
|
|
99,249 |
|
|
|
200,267 |
|
|
|
193,040 |
|
General and administrative |
|
|
33,994 |
|
|
|
34,177 |
|
|
|
65,642 |
|
|
|
82,988 |
|
Research and development |
|
|
18,049 |
|
|
|
19,424 |
|
|
|
37,541 |
|
|
|
42,731 |
|
Acquisition-related amortization and remeasurement |
|
|
7,388 |
|
|
|
3,333 |
|
|
|
12,784 |
|
|
|
7,467 |
|
Operating loss |
|
|
(24,906 |
) |
|
|
(36,632 |
) |
|
|
(54,243 |
) |
|
|
(96,346 |
) |
Interest expense, net |
|
|
(4,943 |
) |
|
|
(1,266 |
) |
|
|
(9,501 |
) |
|
|
(2,555 |
) |
Other income (expense), net |
|
|
(2,510 |
) |
|
|
(20 |
) |
|
|
(3,784 |
) |
|
|
656 |
|
Loss before income taxes |
|
|
(32,359 |
) |
|
|
(37,918 |
) |
|
|
(67,528 |
) |
|
|
(98,245 |
) |
Income tax expense |
|
|
(1,084 |
) |
|
|
(1,508 |
) |
|
|
(1,935 |
) |
|
|
(2,119 |
) |
Net loss |
|
$ |
(33,443 |
) |
|
$ |
(39,426 |
) |
|
$ |
(69,463 |
) |
|
$ |
(100,364 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.88 |
) |
|
$ |
(1.07 |
) |
|
$ |
(1.84 |
) |
|
$ |
(2.77 |
) |
Diluted |
|
|
(0.88 |
) |
|
|
(1.07 |
) |
|
|
(1.84 |
) |
|
|
(2.77 |
) |
Weighted average number of common shares (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
38.0 |
|
|
|
36.8 |
|
|
|
37.8 |
|
|
|
36.3 |
|
Diluted |
|
|
38.0 |
|
|
|
36.8 |
|
|
|
37.8 |
|
|
|
36.3 |
|
ORTHOFIX MEDICAL INC. Condensed Consolidated Balance Sheets |
||||||||
( |
|
June 30,
|
|
|
December 31,
|
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
26,366 |
|
|
$ |
33,107 |
|
Restricted Cash |
|
|
2,500 |
|
|
|
4,650 |
|
Accounts receivable, net of allowances of |
|
|
125,361 |
|
|
|
128,098 |
|
Inventories |
|
|
210,040 |
|
|
|
222,166 |
|
Prepaid expenses and other current assets |
|
|
21,798 |
|
|
|
32,422 |
|
Total current assets |
|
|
386,065 |
|
|
|
420,443 |
|
Property, plant, and equipment, net |
|
|
154,111 |
|
|
|
159,060 |
|
Intangible assets, net |
|
|
108,310 |
|
|
|
117,490 |
|
Goodwill |
|
|
194,934 |
|
|
|
194,934 |
|
Other long-term assets |
|
|
38,578 |
|
|
|
33,388 |
|
Total assets |
|
$ |
881,998 |
|
|
$ |
925,315 |
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
50,362 |
|
|
$ |
58,357 |
|
Current portion of long-term debt |
|
|
4,688 |
|
|
|
1,250 |
|
Current portion of finance lease liability |
|
|
734 |
|
|
|
708 |
|
Other current liabilities |
|
|
100,183 |
|
|
|
104,908 |
|
Total current liabilities |
|
|
155,967 |
|
|
|
165,223 |
|
Long-term debt |
|
|
113,315 |
|
|
|
93,107 |
|
Long-term portion of finance lease liability |
|
|
18,160 |
|
|
|
18,532 |
|
Other long-term liabilities |
|
|
48,552 |
|
|
|
49,723 |
|
Total liabilities |
|
|
335,994 |
|
|
|
326,585 |
|
Contingencies |
|
|
|
|
|
|
||
Shareholders’ equity |
|
|
|
|
|
|
||
Common shares |
|
|
3,804 |
|
|
|
3,717 |
|
Additional paid-in capital |
|
|
764,538 |
|
|
|
746,450 |
|
Accumulated deficit |
|
|
(219,607 |
) |
|
|
(150,144 |
) |
Accumulated other comprehensive loss |
|
|
(2,731 |
) |
|
|
(1,293 |
) |
Total shareholders’ equity |
|
|
546,004 |
|
|
|
598,730 |
|
Total liabilities and shareholders’ equity |
|
$ |
881,998 |
|
|
$ |
925,315 |
|
ORTHOFIX MEDICAL INC.
|
The following tables present reconciliations of various financial measures calculated in accordance with |
Adjusted Gross Profit and Adjusted Gross Margin |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Gross profit |
|
$ |
134,749 |
|
|
$ |
119,551 |
|
|
$ |
261,991 |
|
|
$ |
229,880 |
|
Share-based compensation expense |
|
|
497 |
|
|
|
482 |
|
|
|
1,034 |
|
|
|
953 |
|
SeaSpine merger-related costs |
|
|
3,115 |
|
|
|
3,782 |
|
|
|
4,418 |
|
|
|
4,486 |
|
Strategic investments |
|
|
63 |
|
|
|
29 |
|
|
|
128 |
|
|
|
210 |
|
Acquisition-related fair value adjustments |
|
|
3,047 |
|
|
|
9,449 |
|
|
|
6,094 |
|
|
|
21,085 |
|
Amortization/depreciation of acquired long-lived assets |
|
|
209 |
|
|
|
544 |
|
|
|
527 |
|
|
|
544 |
|
Medical device regulation |
|
|
— |
|
|
|
41 |
|
|
|
— |
|
|
|
669 |
|
Adjusted gross profit |
|
$ |
141,680 |
|
|
$ |
133,878 |
|
|
$ |
274,192 |
|
|
$ |
257,827 |
|
Adjusted gross margin |
|
|
71.3 |
% |
|
|
71.6 |
% |
|
|
70.8 |
% |
|
|
71.2 |
% |
Adjusted EBITDA
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss |
|
$ |
(33,443 |
) |
|
$ |
(39,426 |
) |
|
$ |
(69,463 |
) |
|
$ |
(100,364 |
) |
Income tax expense (benefit) |
|
|
1,084 |
|
|
|
1,508 |
|
|
|
1,935 |
|
|
|
2,119 |
|
Interest expense, net |
|
|
4,943 |
|
|
|
1,266 |
|
|
|
9,501 |
|
|
|
2,555 |
|
Depreciation and amortization |
|
|
14,032 |
|
|
|
13,327 |
|
|
|
28,894 |
|
|
|
25,997 |
|
Share-based compensation expense |
|
|
9,959 |
|
|
|
13,246 |
|
|
|
18,759 |
|
|
|
26,266 |
|
Foreign exchange impact |
|
|
851 |
|
|
|
(269 |
) |
|
|
2,439 |
|
|
|
(852 |
) |
SeaSpine merger-related costs |
|
|
5,897 |
|
|
|
8,206 |
|
|
|
10,376 |
|
|
|
28,946 |
|
Strategic investments |
|
|
311 |
|
|
|
309 |
|
|
|
431 |
|
|
|
970 |
|
Acquisition-related fair value adjustments |
|
|
6,117 |
|
|
|
8,149 |
|
|
|
10,334 |
|
|
|
19,785 |
|
Interest and loss on investments |
|
|
1,813 |
|
|
|
— |
|
|
|
1,553 |
|
|
|
— |
|
Litigation and investigation costs |
|
|
(277 |
) |
|
|
1,291 |
|
|
|
1,983 |
|
|
|
1,760 |
|
Succession charges |
|
|
5,346 |
|
|
|
262 |
|
|
|
7,556 |
|
|
|
262 |
|
Medical device regulation |
|
|
— |
|
|
|
2,050 |
|
|
|
— |
|
|
|
5,679 |
|
Adjusted EBITDA |
|
$ |
16,633 |
|
|
$ |
9,919 |
|
|
$ |
24,298 |
|
|
$ |
13,123 |
|
Adjusted EBITDA as a percentage of net sales |
|
|
8.4 |
% |
|
|
5.3 |
% |
|
|
6.3 |
% |
|
|
3.6 |
% |
Adjusted Net Income |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss |
|
$ |
(33,443 |
) |
|
$ |
(39,426 |
) |
|
$ |
(69,463 |
) |
|
$ |
(100,364 |
) |
Share-based compensation expense |
|
|
9,959 |
|
|
|
13,246 |
|
|
|
18,759 |
|
|
|
26,266 |
|
Foreign exchange impact |
|
|
851 |
|
|
|
(269 |
) |
|
|
2,439 |
|
|
|
(852 |
) |
SeaSpine merger-related costs |
|
|
5,967 |
|
|
|
8,049 |
|
|
|
10,815 |
|
|
|
30,353 |
|
Strategic investments |
|
|
371 |
|
|
|
348 |
|
|
|
497 |
|
|
|
1,046 |
|
Acquisition-related fair value adjustments |
|
|
6,117 |
|
|
|
8,149 |
|
|
|
10,334 |
|
|
|
19,785 |
|
Amortization/depreciation of acquired long-lived assets |
|
|
4,648 |
|
|
|
5,810 |
|
|
|
9,440 |
|
|
|
9,944 |
|
Litigation and investigation costs |
|
|
(277 |
) |
|
|
1,291 |
|
|
|
1,983 |
|
|
|
1,760 |
|
Succession charges |
|
|
5,346 |
|
|
|
262 |
|
|
|
7,556 |
|
|
|
262 |
|
Medical device regulation |
|
|
— |
|
|
|
2,055 |
|
|
|
— |
|
|
|
5,689 |
|
Interest and loss on investments |
|
|
1,764 |
|
|
|
— |
|
|
|
1,504 |
|
|
|
— |
|
Long-term income tax rate adjustment |
|
|
416 |
|
|
|
1,224 |
|
|
|
3,112 |
|
|
|
3,238 |
|
Adjusted net income (loss) |
|
$ |
1,719 |
|
|
$ |
739 |
|
|
$ |
(3,024 |
) |
|
$ |
(2,873 |
) |
Cash Flow and Free Cash Flow |
||||||||
|
|
Six Months Ended June 30, |
|
|||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
||
Net cash from operating activities |
|
$ |
(9,611 |
) |
|
$ |
(39,536 |
) |
Net cash from investing activities |
|
|
(20,583 |
) |
|
|
4,265 |
|
Net cash from financing activities |
|
|
21,678 |
|
|
|
21,791 |
|
Effect of exchange rate changes on cash |
|
|
(375 |
) |
|
|
387 |
|
Net change in cash and cash equivalents |
|
$ |
(8,891 |
) |
|
$ |
(13,093 |
) |
|
|
Six Months Ended June 30, |
|
|||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
||
Net cash from operating activities |
|
$ |
(9,611 |
) |
|
$ |
(39,536 |
) |
Capital expenditures |
|
|
(20,533 |
) |
|
|
(24,654 |
) |
Free cash flow |
|
$ |
(30,144 |
) |
|
$ |
(64,190 |
) |
Reconciliation of Non-GAAP Financial Measures to Reported Operating Expenses
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Sales and marketing expense, as reported |
|
$ |
100,224 |
|
|
$ |
99,249 |
|
|
$ |
200,267 |
|
|
$ |
193,040 |
|
Reconciling items impacting sales and marketing: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Strategic investments |
|
|
(1,193 |
) |
|
|
(1,422 |
) |
|
|
(3,412 |
) |
|
|
(3,521 |
) |
Litigation and investigation costs |
|
|
— |
|
|
|
(752 |
) |
|
|
— |
|
|
|
(857 |
) |
Medical device regulation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
Amortization/depreciation of acquired long-lived assets |
|
|
(119 |
) |
|
|
(297 |
) |
|
|
(297 |
) |
|
|
(297 |
) |
Sales and marketing expense, as adjusted |
|
$ |
98,912 |
|
|
$ |
96,778 |
|
|
$ |
196,558 |
|
|
$ |
188,360 |
|
Sales and marketing expense as a percentage of net sales, as adjusted |
|
|
49.8 |
% |
|
|
51.7 |
% |
|
|
50.8 |
% |
|
|
52.0 |
% |
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
General and administrative expense, as reported |
|
$ |
33,994 |
|
|
$ |
34,177 |
|
|
$ |
65,642 |
|
|
$ |
82,988 |
|
Reconciling items impacting general and administrative: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Strategic investments |
|
|
(1,623 |
) |
|
|
(2,694 |
) |
|
|
(2,834 |
) |
|
|
(19,992 |
) |
Amortization/depreciation of acquired long-lived assets |
|
|
(2 |
) |
|
|
(336 |
) |
|
|
(72 |
) |
|
|
(336 |
) |
Litigation and investigation costs |
|
|
277 |
|
|
|
(538 |
) |
|
|
(1,983 |
) |
|
|
(902 |
) |
Succession charges |
|
|
(5,346 |
) |
|
|
(262 |
) |
|
|
(7,556 |
) |
|
|
(262 |
) |
General and administrative expense, as adjusted |
|
$ |
27,300 |
|
|
$ |
30,347 |
|
|
$ |
53,197 |
|
|
$ |
61,496 |
|
General and administrative expense as a percentage of net sales, as adjusted |
|
|
13.7 |
% |
|
|
16.2 |
% |
|
|
13.7 |
% |
|
|
17.0 |
% |
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Research and development expense, as reported |
|
$ |
18,049 |
|
|
$ |
19,424 |
|
|
$ |
37,541 |
|
|
$ |
42,731 |
|
Reconciling items impacting research and development: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Strategic investments |
|
|
(340 |
) |
|
|
(490 |
) |
|
|
(576 |
) |
|
|
(2,374 |
) |
Medical device regulation |
|
|
— |
|
|
|
(2,027 |
) |
|
|
— |
|
|
|
(5,017 |
) |
Research and development expense, as adjusted |
|
$ |
17,709 |
|
|
$ |
16,907 |
|
|
$ |
36,965 |
|
|
$ |
35,340 |
|
Research and development expense as a percentage of net sales, as adjusted |
|
|
8.9 |
% |
|
|
9.0 |
% |
|
|
9.5 |
% |
|
|
9.8 |
% |
Reconciliation of Non-GAAP Financial Measures to Reported Non-Operating (Income) Expense |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Non-operating expense |
|
$ |
7,453 |
|
|
$ |
1,286 |
|
|
$ |
13,285 |
|
|
$ |
1,899 |
|
Reconciling items impacting non-operating expense: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange impact |
|
|
(851 |
) |
|
|
269 |
|
|
|
(2,439 |
) |
|
|
852 |
|
Strategic investments |
|
|
— |
|
|
|
(15 |
) |
|
|
— |
|
|
|
(895 |
) |
Interest and (gain) loss on investments |
|
|
(1,787 |
) |
|
|
30 |
|
|
|
(1,504 |
) |
|
|
60 |
|
Non-operating expense, as adjusted |
|
$ |
4,815 |
|
|
$ |
1,570 |
|
|
$ |
9,342 |
|
|
$ |
1,916 |
|
Non-operating expense as a percentage of net sales, as adjusted |
|
|
2.4 |
% |
|
|
0.8 |
% |
|
|
2.4 |
% |
|
|
0.5 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806732152/en/
Investor Relations
Julie Dewey, Chief Investor Relations and Communications Officer
JulieDewey@Orthofix.com
(209) 613-6945
Media Relations
Denise Landry, Vice President, Global Corporate Communications
DeniseLandry@Orthofix.com
(214) 937-2529
Source: Orthofix Medical Inc.
FAQ
What were Orthofix's (OFIX) Q2 2024 financial results?
How did Orthofix's (OFIX) Bone Growth Therapies segment perform in Q2 2024?
What is Orthofix's (OFIX) updated full-year 2024 financial guidance?
When does Orthofix (OFIX) expect to achieve positive free cash flow?
