Recent Highlights
- Fourth quarter 2023 net sales of $200.4 million, an increase
of 64% on a reported basis and 7% 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 of 11% for the full year
2023
- U.S. spine fixation1 net sales growth of 13.5% in Q4 2023
with net distributor additions since the third quarter of
2023
- Fourth quarter 2023 net loss of $22 million; Non-GAAP
Adjusted EBITDA of $20 million, or 10% of sales, representing 96%
growth over the fourth quarter of 2022
- Achieved $32 million in annualized merger-related synergies
for the full year ended December 31, 2023
Orthofix Medical Inc. (NASDAQ:OFIX) today reported its financial
results for the fourth quarter and year ended December 31, 2023,
and issued guidance for the full year 2024.
Fourth quarter net sales were $200.4 million, an increase of 64%
on a reported basis and 7% on a pro forma constant currency basis.
Net loss was $(22.2) million and earnings per share ("EPS") was
$(0.59) on a reported basis, representing an improvement of 19%
when compared to pro forma results for the prior year period.
Non-GAAP adjusted EBITDA was $19.6 million for the fourth quarter,
representing 96% growth over pro forma results for the fourth
quarter of 2022.
Full year net sales were $746.6 million, an increase of 62% on a
reported basis and 6% on a pro forma constant currency basis. Net
loss was $(151.4) million and EPS was $(4.12). Non-GAAP adjusted
EBITDA was $46.3 million for the full year, representing 69% growth
over pro forma results for the full year of 2022.
“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, U.S. Dollars, in
millions)
2023
2022
Change
Constant Currency
Change
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, U.S. Dollars, in
millions)
2023
2022 Pro Forma
Change
Constant Currency
Change
Bone Growth Therapies
$
58.8
$
51.0
15.3
%
15.3
%
U.S. Spinal Implants, Biologics and
Enabling Technologies
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 68.2% for the fourth quarter ended December
31, 2023 and were 72.2% on a non-GAAP adjusted basis compared to
pro-forma non-GAAP adjusted gross margin of 68.9% in the prior year
period.
Net loss was $(22.2) million, or $(0.59) per share, compared to
pro forma net loss of $(26.0) million, or $(0.73) per share in the
prior year period. Non-GAAP adjusted EBITDA was $19.6 million, or
9.8% of net sales, compared to pro forma non-GAAP adjusted EBITDA
of $10.0 million, or 5.4% of pro forma net sales, in the prior year
period.
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, U.S. Dollars, in
millions)
2023
2022
Change
Constant Currency
Change
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, U.S. Dollars, in
millions)
2023
2022 Pro Forma
Change
Constant Currency
Change
Bone Growth Therapies
$
212.5
$
187.2
13.5
%
13.5
%
U.S. Spinal Implants, Biologics and
Enabling Technologies
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 6.3%
on a pro forma reported basis and pro forma constant currency
basis.
*** 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 8.4% on a pro forma reported
basis and 8.1% on a pro forma constant currency basis.
Gross margins were 65.1% and were 71.4% on a non-GAAP adjusted
basis compared to pro forma non-GAAP adjusted gross margin of 68.7%
in the prior year.
Net loss was $(151.4) million, or $(4.12) per share, compared to
pro forma net loss of $(84.8) million, or $(2.39) per share in the
prior year. Non-GAAP adjusted EBITDA was $46.3 million, or 6.2% of
net sales, compared to pro forma non-GAAP adjusted EBITDA of $27.4
million, or 3.9% of pro forma net sales, in the prior year
period.
Liquidity
As of December 31, 2023, cash, cash equivalents, and restricted
cash totaled $37.8 million compared to $50.7 million on December
31, 2022. As of December 31, 2023, the Company had $100.0 million
in borrowings outstanding under its four year $150.0 million
Financing Agreement. The Company subsequently borrowed an
additional $15.0 million in January 2024.
Business Outlook
The Company is providing 2024 full year guidance as follows:
- Net sales to range between $785 million to $795 million,
representing implied growth of 5% to 7% 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 to $67 million,
representing a $15.7 million to $20.7 million increase, over the
full year 2023
- 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 U.S. and Canada, and (240)
789-2735 in all other locations, and referencing the access code
9556380. A replay of the call will be available for three weeks by
dialing (800) 770-2030 in the U.S. and Canada, and (647) 362-9199
in all other locations, and entering the access code 9556380. A
webcast of the conference call may be accessed at
ir.Orthofix.com.
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 Lewisville, Texas and has
primary offices in Carlsbad, CA, with a focus on spine and
biologics product innovation and surgeon education, and Verona,
Italy, with an emphasis on product innovation, production, and
medical education for orthopedics. The combined company’s global
R&D, commercial and manufacturing footprint also includes
facilities and offices in Irvine, CA, Toronto, Canada, Sunnyvale,
CA, Wayne, PA, Olive Branch, MS, Maidenhead, UK, Munich, Germany,
Paris, France, and São Paulo, Brazil. For more information, please
visit www.orthofix.com.
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 Ukraine and resulting sanctions, 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.
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,
(U.S. Dollars, in thousands, except
share and per share data)
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
(U.S. Dollars, in thousands, except par
value data)
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
$7,130 and $6,419, respectively
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 $0.10 par value; 100,000
shares authorized; 37,165 and 20,162 issued and outstanding as of
December 31, 2023 and 2022, respectively
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 U.S. generally
accepted accounting principles (“GAAP”), to various non-GAAP
financial measures that exclude (or in the case of free cash flow,
include) items specified in the tables. The GAAP measures shown in
the tables below represent the most comparable GAAP measure to the
applicable non-GAAP measure(s) shown in the table. For further
information regarding the nature of these exclusions, why the
Company believes that these non-GAAP financial measures provide
useful information to investors, the specific manner in which
management uses these measures, and some of the limitations
associated with the use of these measures, please refer to the
Company's Current Report on Form 8-K regarding this press release
filed today with the SEC available on the SEC's website at
www.sec.gov and on the “Investors” page of the Company’s website at
www.orthofix.com.
Adjusted Gross Profit and Adjusted Gross Margin
Three Months Ended December
31,
(Unaudited, U.S. Dollars, in
thousands)
2023
Orthofix 2022
SeaSpine 2022
Pro Forma 2022
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, U.S. Dollars, in
thousands)
2023
Orthofix 2022
SeaSpine 2022
Pro Forma 2022
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, U.S. Dollars, in
thousands)
2023
Orthofix 2022
SeaSpine 2022
Pro Forma 2022
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, U.S. Dollars, in
thousands)
2023
Orthofix 2022
SeaSpine 2022
Pro Forma 2022
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, U.S. Dollars, in
thousands)
2023
Orthofix 2022
SeaSpine 2022
Pro Forma 2022
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, U.S. Dollars, in
thousands)
2023
Orthofix 2022
SeaSpine 2022
Pro Forma 2022
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, U.S. Dollars, in thousands,
except share and per share data)
2023
Orthofix 2022
SeaSpine 2022
Pro Forma 2022
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, U.S. Dollars, in thousands,
except share and per share data)
2023
Orthofix 2022
SeaSpine 2022
Pro Forma 2022
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
Orthofix Medical (NASDAQ:OFIX)
Graphique Historique de l'Action
De Fév 2025 à Mar 2025
Orthofix Medical (NASDAQ:OFIX)
Graphique Historique de l'Action
De Mar 2024 à Mar 2025
