Orthofix Reports Third Quarter 2024 Results, Reiterates Full-Year 2024 Financial Guidance, and Introduces New Three-Year Financial Targets
Orthofix Medical (NASDAQ:OFIX) reported Q3 2024 financial results with net sales of $196.6 million, representing a 7% increase year-over-year. The company reported a net loss of $(27.4) million, or $(0.71) per share. Notable highlights include 18% growth in U.S. Spine Fixation, 9% growth in Bone Growth Therapies, and a record quarter for U.S. Orthopedics with 15% growth. The company maintained its full-year 2024 guidance of $795-800 million in net sales and $64-69 million in adjusted EBITDA, while introducing new 2027 financial targets including 6-7% net sales CAGR from 2025-2027.
Orthofix Medical (NASDAQ:OFIX) ha riportato i risultati finanziari del terzo trimestre 2024 con vendite nette di $196,6 milioni, rappresentando un aumento del 7% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di $(27,4) milioni, ovvero $(0,71) per azione. Tra i punti salienti si evidenziano 18% di crescita nella fissazione spinale negli Stati Uniti, 9% di crescita nelle terapie per la crescita ossea e un trimestre record per l'ortopedia statunitense con un 15% di crescita. L'azienda ha mantenuto le previsioni per l'intero anno 2024, indicando vendite nette tra $795 e $800 milioni e un EBITDA rettificato tra $64 e $69 milioni, introducendo nel contempo nuovi obiettivi finanziari per il 2027, incluso un CAGR delle vendite nette del 6-7% dal 2025 al 2027.
Orthofix Medical (NASDAQ:OFIX) informó sobre los resultados financieros del tercer trimestre de 2024, con ventas netas de $196.6 millones, lo que representa un aumento del 7% en comparación anual. La empresa reportó una pérdida neta de $(27.4) millones, o $(0.71) por acción. Los aspectos destacados incluyen un crecimiento del 18% en la fijación de columna en EE. UU., un crecimiento del 9% en las terapias de crecimiento óseo, y un trimestre récord para la ortopedia en EE. UU. con un 15% de crecimiento. La empresa mantuvo su guía para todo el año 2024 de ventas netas entre $795 y $800 millones, y un EBITDA ajustado de $64 a $69 millones, al tiempo que introdujo nuevos objetivos financieros para 2027, incluyendo un CAGR de ventas netas del 6-7% de 2025 a 2027.
Orthofix Medical (NASDAQ:OFIX)는 2024년 3분기 재무 결과를 보고하며 순매출 $196.6백만 달러를 기록했으며, 이는 전년 대비 7% 증가한 수치입니다. 회사는 순손실 $(27.4)백만 달러, 즉 $(0.71) 주당 손실을 보고했습니다. 주요 하이라이트로는 미국 척추 고정 분야에서 18% 성장, 골 성장 치료 분야에서 9% 성장, 그리고 미국 정형외과에서 15% 성장이라는 기록적인 분기가 포함됩니다. 회사는 2024년 전체 매출 목표를 $795-800백만으로 유지하고, 조정된 EBITDA는 $64-69백만으로 설정하며, 2025-2027년 동안 6-7%의 순매출 CAGR을 포함한 2027년 재무 목표를 새롭게 제시했습니다.
Orthofix Medical (NASDAQ:OFIX) a annoncé les résultats financiers du troisième trimestre 2024 avec des ventes nettes de 196,6 millions de dollars, représentant une augmentation de 7 % par rapport à l'année précédente. L'entreprise a enregistré une perte nette de (27,4) millions de dollars, soit (0,71) par action. Parmi les points saillants, on note une croissance de 18 % dans la fixation de la colonne vertébrale aux États-Unis, une croissance de 9 % dans les thérapies de croissance osseuse, et un trimestre record pour l'orthopédie américaine avec une croissance de 15 %. L'entreprise a maintenu son estimation de ventes nettes pour l'année 2024 entre 795 et 800 millions de dollars et un EBITDA ajusté entre 64 et 69 millions de dollars, tout en présentant de nouveaux objectifs financiers pour 2027, incluant un CAGR des ventes nettes de 6 à 7 % de 2025 à 2027.
Orthofix Medical (NASDAQ:OFIX) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit Nettoumsätzen von $196,6 Millionen, was einem Anstieg von 7 % im Jahresvergleich entspricht. Das Unternehmen meldete einen Nettoverlust von $(27,4) Millionen, oder $(0,71) pro Aktie. Zu den bemerkenswerten Highlights gehören 18 % Wachstum im Bereich der Wirbelsäulenfixierung in den USA, 9 % Wachstum bei den Knochenwachstums-Therapien, sowie ein Rekordquartal für die US-Orthopädie mit 15 % Wachstum. Das Unternehmen bestätigte seine Prognose für das Gesamtjahr 2024 mit Nettoumsätzen zwischen $795 und $800 Millionen und einem bereinigten EBITDA zwischen $64 und $69 Millionen, während es neue finanzielle Ziele für 2027 einführte, darunter ein CAGR von 6-7 % für Nettoumsätze von 2025 bis 2027.
- Net sales increased 7% to $196.6 million in Q3 2024
- U.S. Spine Fixation grew 18% year-over-year
- Record quarter for U.S. Orthopedics with 15% growth
- Adjusted EBITDA improved by $5.7 million with 250 basis points margin expansion
- Achieved positive free cash flow of $5.9 million in Q3
- Secured new $275 million credit facility
- Net loss of $(27.4) million in Q3 2024
- EPS loss of $(0.71) per share
Insights
The Q3 2024 results demonstrate solid operational execution with
The new
The strong performance in U.S. markets, particularly the record quarter in Orthopedics with
Building on Positive Momentum from Compelling Combination of Profitable, Above-Market Growth with a Stronger Financial Profile
Recent Highlights
-
Third quarter 2024 net sales of
, an increase of$196.6 million 7% on a reported and constant currency basis compared to third quarter 2023 -
U.S. Spine Fixation1 net sales growth of18% compared to third quarter 2023, driven by distribution expansion and further penetration in existing accounts -
Bone Growth Therapies (BGT) net sales growth of
9% and BGT Fracture net sales growth of13% compared to third quarter 2023 -
U.S. Orthopedics delivered a record net sales quarter with net sales growth of15% compared to third quarter of 2023 - Company entered into record number of 7D FLASH™ Navigation System earnout agreements and matched record for highest number of 7D placements in any quarter to date
-
Third quarter 2024 net loss of
; Non-GAAP adjusted EBITDA of$(27.4) million , an increase of$19.2 million , with adjusted EBITDA margin expanding approximately 250 basis points compared to third quarter 2023$5.7 million -
Achieves free cash flow of
in third quarter 2024, a significant improvement in cash usage compared to previous quarters$5.9 million -
Announces new
credit facility that replaces existing financing and further optimizes the Company's capital structure to support long-term profitable growth$275 million -
Maintains full-year 2024 net sales guidance of
to$795 million and full-year 2024 non-GAAP adjusted EBITDA guidance of$800 million to$64 million ; continue to expect positive free cash flow for the second half of 2024$69 million - Introduces new 2027 financial targets to increase transparency and maximize value creation
Third quarter net sales were
“Our third quarter net sales results were driven by focused execution of our key growth priorities, and we also delivered strong adjusted EBITDA margin expansion and positive free cash flow, all of which we believe keeps us on a clear course to achieve our 2024 and long-term financial targets,” said Massimo Calafiore, President and Chief Executive Officer. “Highlights in the quarter included year-over-year revenue growth across each of our business segments where our performance once again was led by strength in our
Financial Results Overview
Third Quarter 2024 Net Sales and Financial Results
The following table provides net sales by major product category by reporting segment:
|
|
Three Months Ended September 30, |
|
|||||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
Change |
|
|
Constant
|
|
||||
Bone Growth Therapies |
|
$ |
57.9 |
|
|
$ |
53.4 |
|
|
|
8.6 |
% |
|
|
8.6 |
% |
Spinal Implants, Biologics and Enabling Technologies |
|
|
108.2 |
|
|
|
101.0 |
|
|
|
7.1 |
% |
|
|
7.1 |
% |
Global Spine |
|
|
166.1 |
|
|
|
154.4 |
|
|
|
7.6 |
% |
|
|
7.6 |
% |
Global Orthopedics |
|
|
30.5 |
|
|
|
29.7 |
|
|
|
2.9 |
% |
|
|
2.5 |
% |
Net sales |
|
$ |
196.6 |
|
|
$ |
184.0 |
|
|
|
6.8 |
% |
|
|
6.8 |
% |
Gross margins were
Net loss was
Liquidity
Cash, cash equivalents, and restricted cash on September 30, 2024, totaled
Orthofix Announces New Three-Year Financial Targets
The Company is providing new three-year financial targets for 2025 through 2027:
-
6% to7% net sales CAGR from 2025 through 2027 - Mid-teens non-GAAP adjusted EBITDA as a percent of net sales for the full-year 2027
- Positive free cash flow generation from 2025 through 2027
Calafiore concluded, “With a compelling combination of profitable, above-market growth and a stronger financial profile, I believe our focused commercial strategy and broad, differentiated technologies, combined with a robust innovation pipeline and our pace-setting, enabling technologies position us well to achieve these targets and deliver increased value to our shareholders.”
Business Outlook
The Company is reiterating its 2024 full-year guidance as follows:
-
Net sales are expected to range between
to$795 million , representing implied growth of$800 million 6.6% to7.2% 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 is expected to range from
to$64 million .$69 million - The Company expects to continue to be free cash flow positive for the remainder of 2024.
These guidance ranges do not contemplate any potential impact to elective procedures as a result of IV fluid shortages or other hurricane-related effects.
An investor presentation for the Company's third quarter 2024 financial results, corporate strategy and new three-year financial targets is available in the "Investors" section of Orthofix's website at https://ir.orthofix.com/events-and-presentations.
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 September 30, 2024. Interested parties may access the conference call by dialing (888) 330-2508 in the
About Orthofix
Orthofix is a global medical technology company 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, intentions, plans, 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, and its three-year financial targets for 2025 through 2027. 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 September 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, (vii) our success in defending legal proceedings brought against us, and (viii) 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.
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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
|
$ |
196,606 |
|
|
$ |
184,006 |
|
|
$ |
583,834 |
|
|
$ |
546,226 |
|
Cost of sales |
|
|
61,553 |
|
|
|
64,243 |
|
|
|
186,790 |
|
|
|
196,583 |
|
Gross profit |
|
|
135,053 |
|
|
|
119,763 |
|
|
|
397,044 |
|
|
|
349,643 |
|
Sales and marketing |
|
|
96,576 |
|
|
|
94,947 |
|
|
|
296,843 |
|
|
|
287,987 |
|
General and administrative |
|
|
33,561 |
|
|
|
27,136 |
|
|
|
99,203 |
|
|
|
110,124 |
|
Research and development |
|
|
17,294 |
|
|
|
18,559 |
|
|
|
54,835 |
|
|
|
61,290 |
|
Acquisition-related amortization and remeasurement |
|
|
6,521 |
|
|
|
3,570 |
|
|
|
19,305 |
|
|
|
11,037 |
|
Operating loss |
|
|
(18,899 |
) |
|
|
(24,449 |
) |
|
|
(73,142 |
) |
|
|
(120,795 |
) |
Interest expense, net |
|
|
(5,210 |
) |
|
|
(1,576 |
) |
|
|
(14,711 |
) |
|
|
(4,131 |
) |
Other expense, net |
|
|
(2,528 |
) |
|
|
(2,360 |
) |
|
|
(6,312 |
) |
|
|
(1,704 |
) |
Loss before income taxes |
|
|
(26,637 |
) |
|
|
(28,385 |
) |
|
|
(94,165 |
) |
|
|
(126,630 |
) |
Income tax expense |
|
|
(751 |
) |
|
|
(472 |
) |
|
|
(2,686 |
) |
|
|
(2,591 |
) |
Net loss |
|
$ |
(27,388 |
) |
|
$ |
(28,857 |
) |
|
$ |
(96,851 |
) |
|
$ |
(129,221 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.71 |
) |
|
$ |
(0.77 |
) |
|
$ |
(2.55 |
) |
|
$ |
(3.53 |
) |
Diluted |
|
|
(0.71 |
) |
|
|
(0.77 |
) |
|
|
(2.55 |
) |
|
|
(3.53 |
) |
Weighted average number of common shares (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
38.5 |
|
|
|
37.2 |
|
|
|
37.9 |
|
|
|
36.6 |
|
Diluted |
|
|
38.5 |
|
|
|
37.2 |
|
|
|
37.9 |
|
|
|
36.6 |
|
ORTHOFIX MEDICAL INC. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
( |
|
September 30,
|
|
|
December 31,
|
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
30,054 |
|
|
$ |
33,107 |
|
Restricted Cash |
|
|
2,500 |
|
|
|
4,650 |
|
Accounts receivable, net of allowances of |
|
|
124,845 |
|
|
|
128,098 |
|
Inventories |
|
|
205,812 |
|
|
|
222,166 |
|
Prepaid expenses and other current assets |
|
|
23,003 |
|
|
|
32,422 |
|
Total current assets |
|
|
386,214 |
|
|
|
420,443 |
|
Property, plant, and equipment, net |
|
|
146,685 |
|
|
|
159,060 |
|
Intangible assets, net |
|
|
104,546 |
|
|
|
117,490 |
|
Goodwill |
|
|
194,934 |
|
|
|
194,934 |
|
Other long-term assets |
|
|
35,493 |
|
|
|
33,388 |
|
Total assets |
|
$ |
867,872 |
|
|
$ |
925,315 |
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
47,060 |
|
|
$ |
58,357 |
|
Current portion of long-term debt |
|
|
6,250 |
|
|
|
1,250 |
|
Current portion of finance lease liability |
|
|
743 |
|
|
|
708 |
|
Other current liabilities |
|
|
107,845 |
|
|
|
104,908 |
|
Total current liabilities |
|
|
161,898 |
|
|
|
165,223 |
|
Long-term debt |
|
|
112,215 |
|
|
|
93,107 |
|
Long-term portion of finance lease liability |
|
|
18,027 |
|
|
|
18,532 |
|
Other long-term liabilities |
|
|
49,808 |
|
|
|
49,723 |
|
Total liabilities |
|
|
341,948 |
|
|
|
326,585 |
|
Contingencies |
|
|
|
|
|
|
||
Shareholders’ equity |
|
|
|
|
|
|
||
Common shares |
|
|
3,821 |
|
|
|
3,717 |
|
Additional paid-in capital |
|
|
770,000 |
|
|
|
746,450 |
|
Accumulated deficit |
|
|
(246,995 |
) |
|
|
(150,144 |
) |
Accumulated other comprehensive loss |
|
|
(902 |
) |
|
|
(1,293 |
) |
Total shareholders’ equity |
|
|
525,924 |
|
|
|
598,730 |
|
Total liabilities and shareholders’ equity |
|
$ |
867,872 |
|
|
$ |
925,315 |
|
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 September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Gross profit |
|
$ |
135,053 |
|
|
$ |
119,763 |
|
|
$ |
397,044 |
|
|
$ |
349,643 |
|
Share-based compensation expense |
|
|
557 |
|
|
|
463 |
|
|
|
1,591 |
|
|
|
1,416 |
|
SeaSpine merger-related costs |
|
|
1,161 |
|
|
|
2,161 |
|
|
|
5,579 |
|
|
|
6,647 |
|
Strategic investments |
|
|
32 |
|
|
|
55 |
|
|
|
160 |
|
|
|
264 |
|
Acquisition-related fair value adjustments |
|
|
3,047 |
|
|
|
7,922 |
|
|
|
9,141 |
|
|
|
29,007 |
|
Amortization/depreciation of acquired long-lived assets |
|
|
313 |
|
|
|
280 |
|
|
|
840 |
|
|
|
824 |
|
Medical device regulation |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
676 |
|
Adjusted gross profit |
|
$ |
140,163 |
|
|
$ |
130,650 |
|
|
$ |
414,355 |
|
|
$ |
388,477 |
|
Adjusted gross margin |
|
|
71.3 |
% |
|
|
71.0 |
% |
|
|
71.0 |
% |
|
|
71.1 |
% |
Adjusted EBITDA |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss |
|
$ |
(27,388 |
) |
|
$ |
(28,857 |
) |
|
$ |
(96,851 |
) |
|
$ |
(129,221 |
) |
Income tax expense (benefit) |
|
|
751 |
|
|
|
472 |
|
|
|
2,686 |
|
|
|
2,591 |
|
Interest expense, net |
|
|
5,210 |
|
|
|
1,576 |
|
|
|
14,711 |
|
|
|
4,131 |
|
Depreciation and amortization |
|
|
15,173 |
|
|
|
13,097 |
|
|
|
44,067 |
|
|
|
39,094 |
|
Share-based compensation expense |
|
|
6,531 |
|
|
|
6,274 |
|
|
|
25,290 |
|
|
|
32,540 |
|
Foreign exchange impact |
|
|
(1,176 |
) |
|
|
1,909 |
|
|
|
1,263 |
|
|
|
1,057 |
|
SeaSpine merger-related costs |
|
|
2,616 |
|
|
|
5,416 |
|
|
|
12,992 |
|
|
|
34,362 |
|
Strategic investments |
|
|
39 |
|
|
|
484 |
|
|
|
470 |
|
|
|
1,454 |
|
Acquisition-related fair value adjustments |
|
|
5,017 |
|
|
|
7,122 |
|
|
|
15,351 |
|
|
|
26,907 |
|
Interest and loss on investments |
|
|
3,567 |
|
|
|
429 |
|
|
|
5,120 |
|
|
|
429 |
|
Litigation and investigation costs |
|
|
8,335 |
|
|
|
3,851 |
|
|
|
10,318 |
|
|
|
5,611 |
|
Succession charges |
|
|
505 |
|
|
|
(92 |
) |
|
|
8,061 |
|
|
|
170 |
|
Medical device regulation |
|
|
— |
|
|
|
1,840 |
|
|
|
— |
|
|
|
7,519 |
|
Adjusted EBITDA |
|
$ |
19,180 |
|
|
$ |
13,521 |
|
|
$ |
43,478 |
|
|
$ |
26,644 |
|
Adjusted EBITDA as a percentage of net sales |
|
|
9.8 |
% |
|
|
7.3 |
% |
|
|
7.4 |
% |
|
|
4.9 |
% |
Adjusted Net Income |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss |
|
$ |
(27,388 |
) |
|
$ |
(28,857 |
) |
|
$ |
(96,851 |
) |
|
$ |
(129,221 |
) |
Share-based compensation expense |
|
|
6,531 |
|
|
|
6,274 |
|
|
|
25,290 |
|
|
|
32,540 |
|
Foreign exchange impact |
|
|
(1,176 |
) |
|
|
1,909 |
|
|
|
1,263 |
|
|
|
1,057 |
|
SeaSpine merger-related costs |
|
|
2,619 |
|
|
|
5,247 |
|
|
|
13,434 |
|
|
|
35,600 |
|
Strategic investments |
|
|
69 |
|
|
|
525 |
|
|
|
566 |
|
|
|
1,631 |
|
Acquisition-related fair value adjustments |
|
|
5,017 |
|
|
|
7,122 |
|
|
|
15,351 |
|
|
|
26,907 |
|
Amortization/depreciation of acquired long-lived assets |
|
|
5,046 |
|
|
|
5,026 |
|
|
|
14,486 |
|
|
|
14,970 |
|
Litigation and investigation costs |
|
|
8,335 |
|
|
|
3,851 |
|
|
|
10,318 |
|
|
|
5,611 |
|
Succession charges |
|
|
505 |
|
|
|
(94 |
) |
|
|
8,061 |
|
|
|
168 |
|
Medical device regulation |
|
|
— |
|
|
|
1,842 |
|
|
|
— |
|
|
|
7,531 |
|
Interest and loss on investments |
|
|
3,567 |
|
|
|
399 |
|
|
|
5,071 |
|
|
|
339 |
|
Long-term income tax rate adjustment |
|
|
(335 |
) |
|
|
(569 |
) |
|
|
2,777 |
|
|
|
2,669 |
|
Adjusted net income (loss) |
|
$ |
2,790 |
|
|
$ |
2,675 |
|
|
$ |
(234 |
) |
|
$ |
(198 |
) |
Cash Flow and Free Cash Flow |
||||||||
|
|
Nine Months Ended September 30, |
|
|||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
||
Net cash from operating activities |
|
$ |
2,060 |
|
|
$ |
(39,059 |
) |
Net cash from investing activities |
|
|
(26,445 |
) |
|
|
(18,078 |
) |
Net cash from financing activities |
|
|
19,222 |
|
|
|
40,042 |
|
Effect of exchange rate changes on cash |
|
|
(40 |
) |
|
|
58 |
|
Net change in cash and cash equivalents |
|
$ |
(5,203 |
) |
|
$ |
(17,037 |
) |
|
|
Nine Months Ended September 30, |
|
|||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
||
Net cash from operating activities |
|
$ |
2,060 |
|
|
$ |
(39,059 |
) |
Capital expenditures |
|
|
(26,345 |
) |
|
|
(46,997 |
) |
Free cash flow |
|
$ |
(24,285 |
) |
|
$ |
(86,056 |
) |
Reconciliation of Non-GAAP Financial Measures to Reported Operating Expenses |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Sales and marketing expense, as reported |
|
$ |
96,576 |
|
|
$ |
94,947 |
|
|
$ |
296,843 |
|
|
$ |
287,987 |
|
Reconciling items impacting sales and marketing: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Strategic investments |
|
|
65 |
|
|
|
(1,680 |
) |
|
|
(3,347 |
) |
|
|
(5,201 |
) |
Litigation and investigation costs |
|
|
377 |
|
|
|
— |
|
|
|
377 |
|
|
|
(857 |
) |
Medical device regulation |
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
(11 |
) |
Amortization/depreciation of acquired long-lived assets |
|
|
(178 |
) |
|
|
(178 |
) |
|
|
(475 |
) |
|
|
(475 |
) |
Sales and marketing expense, as adjusted |
|
$ |
96,840 |
|
|
$ |
93,083 |
|
|
$ |
293,398 |
|
|
$ |
281,443 |
|
Sales and marketing expense as a percentage of net sales, as adjusted |
|
|
49.3 |
% |
|
|
50.6 |
% |
|
|
50.3 |
% |
|
|
51.5 |
% |
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
General and administrative expense, as reported |
|
$ |
33,561 |
|
|
$ |
27,136 |
|
|
$ |
99,203 |
|
|
$ |
110,124 |
|
Reconciling items impacting general and administrative: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Strategic investments |
|
|
(1,420 |
) |
|
|
(1,522 |
) |
|
|
(4,254 |
) |
|
|
(21,514 |
) |
Amortization/depreciation of acquired long-lived assets |
|
|
(4 |
) |
|
|
(201 |
) |
|
|
(76 |
) |
|
|
(537 |
) |
Litigation and investigation costs |
|
|
(8,712 |
) |
|
|
(3,852 |
) |
|
|
(10,695 |
) |
|
|
(4,754 |
) |
Succession charges |
|
|
(505 |
) |
|
|
93 |
|
|
|
(8,061 |
) |
|
|
(169 |
) |
General and administrative expense, as adjusted |
|
$ |
22,920 |
|
|
$ |
21,654 |
|
|
$ |
76,117 |
|
|
$ |
83,150 |
|
General and administrative expense as a percentage of net sales, as adjusted |
|
|
11.7 |
% |
|
|
11.8 |
% |
|
|
13.0 |
% |
|
|
15.2 |
% |
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Research and development expense, as reported |
|
$ |
17,294 |
|
|
$ |
18,559 |
|
|
$ |
54,835 |
|
|
$ |
61,290 |
|
Reconciling items impacting research and development: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Strategic investments |
|
|
(69 |
) |
|
|
(356 |
) |
|
|
(645 |
) |
|
|
(2,730 |
) |
Medical device regulation |
|
|
— |
|
|
|
(1,837 |
) |
|
|
— |
|
|
|
(6,854 |
) |
Research and development expense, as adjusted |
|
$ |
17,225 |
|
|
$ |
16,366 |
|
|
$ |
54,190 |
|
|
$ |
51,706 |
|
Research and development expense as a percentage of net sales, as adjusted |
|
|
8.8 |
% |
|
|
8.9 |
% |
|
|
9.3 |
% |
|
|
9.5 |
% |
Reconciliation of Non-GAAP Financial Measures to Reported Non-Operating (Income) Expense
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
(Unaudited, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Non-operating expense |
|
$ |
7,738 |
|
|
$ |
3,936 |
|
|
$ |
21,023 |
|
|
$ |
5,835 |
|
Reconciling items impacting non-operating expense: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange impact |
|
|
1,176 |
|
|
|
(1,909 |
) |
|
|
(1,263 |
) |
|
|
(1,057 |
) |
Strategic investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(895 |
) |
Interest and loss on investments |
|
|
(3,566 |
) |
|
|
(399 |
) |
|
|
(5,070 |
) |
|
|
(339 |
) |
Non-operating expense, as adjusted |
|
$ |
5,348 |
|
|
$ |
1,628 |
|
|
$ |
14,690 |
|
|
$ |
3,544 |
|
Non-operating expense as a percentage of net sales, as adjusted |
|
|
2.7 |
% |
|
|
0.9 |
% |
|
|
2.5 |
% |
|
|
0.6 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107805269/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
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