false000088462400008846242025-02-252025-02-25
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): February 25, 2025 |
ORTHOFIX MEDICAL INC.
(Exact name of Registrant as Specified in Its Charter)
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Delaware |
000-19961 |
98-1340767 |
(State or Other Jurisdiction
of Incorporation) |
(Commission File Number) |
(IRS Employer
Identification No.) |
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3451 Plano Parkway |
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Lewisville, Texas |
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75056 |
(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s Telephone Number, Including Area Code: (214) 937-2000 |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s) |
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Name of each exchange on which registered
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Common stock, $0.10 par value per share |
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OFIX |
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Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 25, 2025, Orthofix Medical Inc. (the “Company”) issued a press release announcing, among other things, its financial results for the fourth quarter and year ended December 31, 2024. A copy of the press release is furnished herewith as Exhibit 99.1 and attached hereto.
The information furnished in this Item 2.02, including the exhibit furnished herewith as Exhibit 99.1, will not be treated as “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. This information will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or into another filing under the Exchange Act, unless that filing expressly incorporates by reference this Item 2.02 of this report.
Discussion of Non-GAAP Financial Measures
In addition to using standard measures of performance and liquidity that are recognized in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company uses additional financial measures excluding certain GAAP items ("non-GAAP measures"), such as:
Constant Currency
Constant currency is a non-GAAP measure, which the Company calculates by using foreign currency rates from the comparable, prior-year period, to present net sales at comparable rates. Constant currency can be presented for numerous GAAP measures, but is most commonly used by management to analyze net sales without the impact of changes in foreign currency rates.
Free Cash Flow
Free cash flow is a non-GAAP financial measure, which is calculated by subtracting capital expenditures from cash flow provided by or used in operating activities. Free cash flow is an important indicator of how much cash is generated or used by the Company's business operations, including capital expenditures. Management uses free cash flow to measure progress on its capital efficiency and cash flow initiatives.
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted gross profit represents GAAP gross profit with adjustments to exclude the impact of the certain items recorded to cost of goods sold. Such potential adjustments are listed within the section below under the header "Non-GAAP Adjustments." Adjusted gross margin represents adjusted gross profit as a percentage of GAAP net sales.
Adjusted Net Income (Loss)
Adjusted net income (loss) represents GAAP net loss with adjustments to exclude the impact of certain items recorded in such GAAP net loss. Potential adjustments are listed within the sections below under the header "Non-GAAP Adjustments."
Adjusted Operating Expenses
Adjusted operating expenses represents GAAP expenses, such as sales, general, and administrative expense, and research and development expense, with adjustments to exclude the impact of certain items recorded in such GAAP operating expenses. Potential adjustments are listed within the section below under the header "Non-GAAP Adjustments."
Adjusted Non-Operating Expenses
Adjusted non-operating expenses represents GAAP expenses, such as interest income (expense), net and other income (expense), net, with adjustments to exclude the impact of certain items recorded in such GAAP non-operating expenses. Potential adjustments are listed within the section below under the header "Non-GAAP Adjustments."
EBITDA
EBITDA is a non-GAAP financial measure, which the Company calculates by adding interest expense (income), net; income tax expense (benefit); and depreciation and amortization to net income (loss). EBITDA provides management with additional insight to the Company's results of operations. Adjusted EBITDA, which is the primary metric used by the Company's Chief Operating Decision Maker in managing the business, consists of EBITDA with adjustments to exclude certain items listed within the section below under the header "Non-GAAP Adjustments."
Non-GAAP Adjustments
The Company's non-GAAP financial measures provide management with additional insight to the Company's results of operations and reflect the exclusion of the following items:
•Share-based compensation expense – Costs related to awards granted under the Company's share-based compensation plans, which include stock options, performance-based or market-based stock options, restricted stock units, performance-based or market-based restricted stock units, and stock issued under the Company's stock purchase plan; see the share-based compensation footnote in the Company's Form 10-K for the year ended December 31, 2024, for an allocation of
these costs by consolidated statement of operations line item. Management excludes this item when evaluating the Company's operating performance as it represents a non-cash expense.
•Foreign exchange impact – Gains and losses related to foreign currency transactions, which are recorded as other income (expense), net. Management excludes this item when evaluating the Company's operating results as it is primarily a non-cash expense or benefit and is non-operating in nature.
•SeaSpine merger-related costs – Costs related to the Company's merger with SeaSpine Holdings Corporation ("SeaSpine"), which was consummated in January 2023, including costs relating to integration efforts, severance and retention costs, product rationalization charges, contract termination penalties, and professional fees related to the merger. Management excludes this item when evaluating the Company's operating results as these costs associated with this event are of a temporary nature, are not related to the Company's core operating performance, and are not expected to recur at a similar frequency and magnitude in the future.
•Strategic investments – Costs related to the Company's strategic investments, such as due diligence and integration costs (unrelated to the merger with SeaSpine), which are primarily recorded as sales, general, and administrative expenses. These costs are not factored into the evaluation of the Company's performance by management because they are of a temporary nature, not related to the Company's core operating performance, and because the frequency and amount of such costs vary significantly based on the timing and magnitude of the Company's strategic investments.
•Acquisition-related fair value adjustments – Comprised of (i) gains and losses related to remeasurement of contingent consideration to fair value, which are recorded as operating expenses, (ii) recognized costs related to acquired in-process research and development ("IPR&D") assets, which are expensed immediately, and (iii) amortization of acquired inventory fair market value adjustments. Management excludes this item when evaluating the Company's operating results as the remeasurement of contingent consideration is primarily non-cash in nature, the frequency and amount of IPR&D charges can vary significantly based on the timing and magnitude of the Company's acquisition transactions, and inventory fair market value adjustments are of a temporary and non-cash nature.
•Amortization of acquired long-lived assets – Amortization of intangible assets acquired in business combinations or asset acquisitions, including items such as developed technologies, customer relationships, trade names, manufacturing agreements, and other intangible assets, and any impairment of acquired goodwill, which are recorded in cost of sales or operating expenses. This item also includes depreciation recognized on adjustments to the fair value of certain long-lived assets acquired in the merger with SeaSpine. Management excludes this item when evaluating the Company's operating performance as it represents a non-cash expense.
•(Gain) Loss on investment securities – Interest income and net gains or losses recognized (realized or unrealized) within interest income (expense), net and other income (expense), net, respectively, relating to certain of the Company's investments. Management excludes these items when evaluating the Company's operating performance as it typically represents a non-cash gain or loss and is not related to the Company's core operating performance.
•Litigation and investigation-related costs – Inclusive of (i) adverse or favorable legal judgments or negotiated legal settlements and certain related legal expenses and (ii) amounts incurred in relation to and as a result of the Board of Directors’ investigation conducted by independent outside legal counsel that resulted in the departure of three former executive officers and certain charges stemming from these actions. These charges are primarily recorded within sales, general, and administrative expenses. Management excludes these items when evaluating the Company's operating results as these costs and/or benefits can vary significantly based on the timing, frequency, and magnitude of litigation matters.
•Medical device regulation – Incremental costs incurred (i) to establish initial compliance with the regulations set forth by the European Union Medical Device Regulation (“MDR”) related to the Company's currently-approved medical devices, which are recorded primarily as research and development expenses, and (ii) related to rationalization of certain product lines that the Company does not expect to continue to market subsequent to the effective date of these regulations, which are recorded primarily as costs of sales. Management excludes this item when evaluating the Company's operating results as these costs are temporary in nature and associated with events that are not expected to recur at a similar frequency and magnitude in the future.
•Succession charges – Costs related to the transition of certain executive officers, including any cessation and onboarding amounts, consulting services, and other related expenses, which are primarily recorded as sales, general, and administrative expenses. Management excludes this item when evaluating the Company's operating results as these costs associated with events that are not expected to recur at a similar frequency and magnitude in the future.
•Long-term income tax rate adjustment – Reflects management’s expectation of a long-term normalized effective tax rate of 28% for 2023 and 2024 results, which is based on current tax law and current expected adjusted income; actual reported tax expense will ultimately be based on GAAP earnings and may differ from the expected long-term normalized effective tax rate due to a variety of factors, including the resolutions of issues arising from tax audits with various tax authorities, the ability to realize deferred tax assets, and the tax impact of certain reconciling items that are excluded in determining Adjusted Net Income (Loss).
Usefulness and Limitations of Non-GAAP Financial Measures
Management uses non-GAAP measures to evaluate performance period-over-period, analyze the underlying trends in the Company's business, assess the Company's performance relative to its competitors, and establish operational goals and forecasts used in allocating resources. Management uses these non-GAAP measures as the basis for evaluating the ability of the Company's underlying operations to generate cash, prior to required investments in working capital, and to further its understanding of the performance of the Company's business units.
Material Limitations Associated with the Use of Non-GAAP Financial Measures
The non-GAAP financial measures described above may have limitations as analytical tools, and should not be considered in isolation or as a replacement for GAAP financial measures. Some of the limitations associated with the use of these non-GAAP financial measures are that they exclude items that reflect an economic cost and can have a material effect on cash flows. Similarly, certain non-cash expenses, such as share-based compensation, do not directly impact cash flows, but are part of total compensation costs accounted for under GAAP.
Compensation for Limitations Associated with Use of Non-GAAP Financial Measures
The Company compensates for the limitations of its non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company's performance. GAAP results provide management with the ability to understand the Company's performance based on a defined set of criteria. The Company provides reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures and encourages investors to review these reconciliations.
Usefulness of Non-GAAP Financial Measures to Investors
The Company believes that providing non-GAAP financial measures that exclude certain items provides investors with greater transparency to the information used by management in its financial and operational decision-making. Management believes it is important to provide investors with the same non-GAAP financial measures it uses to supplement information regarding the performance and underlying trends of the Company's business operations in order to facilitate comparisons to the Company's historical operating results and internally evaluate the effectiveness of the Company's operating strategies. The Company believes that these non-GAAP financial measures also facilitates comparisons of the Company's underlying operating performance with other companies in the industry that also supplement their GAAP results with non-GAAP financial measures.
Item 7.01 Regulation FD Disclosure.
The Company expects to use the corporate investor relations presentation furnished as Exhibit 99.2 to this report, in whole or in part, and possibly with modifications, in connection with presentations to investors, analysts, and others during the fiscal year ending December 31, 2025.
The information furnished in this Item 7.01, including the exhibit furnished herewith as Exhibit 99.2, will not be treated as “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. This information will not be deemed incorporated by reference into any filing under the Securities Act, or into another filing under the Exchange Act, unless that filing expressly incorporates by reference this Item 7.01 of this report.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Orthofix Medical Inc. |
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By: |
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/s/ JULIE ANDREWS |
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Julie Andrews Chief Financial Officer |
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Date: February 25, 2025
Exhibit 99.1
News Release
Orthofix Reports Fourth Quarter and Full-Year 2024 Results and
Provides 2025 Financial Guidance
Record Results Reflect Strong Execution as Company Focuses on Most Profitable Growth Opportunities in Spine, Orthopedics and Bone Growth Therapies
LEWISVILLE, Texas — February 25, 2025 — Orthofix Medical Inc. (NASDAQ:OFIX), a leading global medical technology company, today reported its financial results for the fourth quarter and full-year ended December 31, 2024, and provided full-year 2025 financial guidance.
Highlights
•Record fourth quarter 2024 net sales of $215.7 million, an increase of 8% on a reported and constant currency basis compared to fourth quarter 2023
•U.S. Spine Fixation1 net sales growth of 12% compared to fourth quarter 2023, driven by distribution expansion and further penetration in existing accounts
•Record Bone Growth Therapies ("BGT") net sales of $63.9 million, representing growth of 9% and BGT Fracture net sales growth of 10% compared to fourth quarter 2023
•Record Global Orthopedics net sales of $35.8 million, representing constant currency growth of 18% and U.S. Orthopedics net sales growth of 21% compared to fourth quarter 2023
•Company entered into record number of 7D FLASH™ Navigation System placements for the full-year 2024
•Fourth quarter 2024 net loss of $(29.1) million; Non-GAAP adjusted EBITDA of $23.9 million, an increase of $4.3 million, with adjusted EBITDA margin expanding approximately 130 basis points compared to fourth quarter 2023
•Free cash flow of $15.2 million in fourth quarter 2024, a significant improvement in cash usage compared to previous quarters
•Company increases long-term net sales compound annual growth rate ("CAGR") target to 6.5% to 7.5% from previous net sales CAGR target of 6% to 7%
Fourth quarter 2024 net sales were $215.7 million, an increase of 8% on a reported and constant currency basis. Net loss was $(29.1) million and earnings per share ("EPS") was $(0.75) on a reported basis, representing a decline of 27% when compared to the same prior year period. Non-GAAP adjusted EBITDA was $23.9 million for the fourth quarter, representing 22% growth compared to the fourth quarter of 2023.
Full-year 2024 net sales were $799.5 million, an increase of 7% on a reported and constant currency basis. Net loss was $(126.0) million and EPS was $(3.30), representing an improvement of 20% when compared to the same prior year period. Non-GAAP adjusted EBITDA was $67.4 million for the full-year, representing 46% growth compared to the full-year of 2023.
“We are pleased with the performance of the Orthofix team to serve our surgeons and patients and successfully execute our plans throughout 2024,” said Massimo Calafiore, President and CEO. “Our fourth quarter results reflect outstanding performance across all three major product lines, providing further evidence that Orthofix’s balanced and complementary product mix offers a differentiated advantage across multiple markets. We enter 2025 with great momentum as two integrated organizations. The entire team remains focused on executing our priorities, and I look forward to leveraging our unique portfolio platform to drive value creation through profitable growth in 2025 and beyond."
1 Spine fixation is comprised of the Company's Spinal Implants product category, excluding motion preservation product offerings
1
Financial Results Overview
Fourth Quarter 2024 Net Sales and Financial Results
The following table provides net sales by major product category by reporting segment:
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Three Months Ended December 31, |
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(Unaudited, U.S. Dollars, in millions) |
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2024 |
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2023 |
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Change |
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Constant
Currency
Change |
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Bone Growth Therapies |
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$ |
63.9 |
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$ |
58.8 |
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8.6 |
% |
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8.6 |
% |
Spinal Implants, Biologics, and Enabling Technologies |
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116.0 |
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111.0 |
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4.5 |
% |
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4.5 |
% |
Global Spine |
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179.9 |
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169.8 |
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5.9 |
% |
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6.0 |
% |
Global Orthopedics |
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35.8 |
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30.6 |
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16.8 |
% |
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18.1 |
% |
Net sales |
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$ |
215.7 |
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$ |
200.4 |
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7.6 |
% |
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7.8 |
% |
Gross margins were 69.0% for the quarter and were 71.1% on a non-GAAP adjusted basis.
Net loss was $(29.1) million, or $(0.75) per share, compared to net loss of $(22.2) million, or $(0.59) per share in the prior year period. Non-GAAP adjusted EBITDA was $23.9 million, or 11.1% of net sales, compared to non-GAAP adjusted EBITDA of $19.6 million, or 9.8% of net sales, in the prior year period.
Full-Year 2024 Net Sales and Financial Results
The following table provides net sales by major product category by reporting segment:
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Year Ended December 31, |
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(Unaudited, U.S. Dollars, in millions) |
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2024 |
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2023 |
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Change |
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Constant
Currency
Change |
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Bone Growth Therapies |
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$ |
233.4 |
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$ |
212.5 |
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9.8 |
% |
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9.8 |
% |
Spinal Implants, Biologics, and Enabling Technologies |
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441.9 |
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418.8 |
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5.5 |
% |
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5.5 |
% |
Global Spine |
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675.3 |
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631.3 |
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7.0 |
% |
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7.0 |
% |
Global Orthopedics |
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124.2 |
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115.3 |
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7.7 |
% |
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7.9 |
% |
Net sales |
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$ |
799.5 |
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$ |
746.6 |
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7.1 |
% |
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7.1 |
% |
Gross margins were 68.3% for the year and were 71.0% on a non-GAAP adjusted basis.
Net loss was $(126.0) million, or $(3.30) per share, compared to net loss of $(151.4) million, or $(4.12) per share in the prior year period. Non-GAAP adjusted EBITDA was $67.4 million, or 8.4% of net sales, compared to non-GAAP adjusted EBITDA of $46.3 million, or 6.2% of net sales, in the prior year period.
Liquidity
Cash, cash equivalents, and restricted cash on December 31, 2024 totaled $85.7 million compared to $37.8 million on December 31, 2023.
M6 Artificial Disc Update
Consistent with Orthofix’s strategic focus on spinal fixation and deformity correction, the Company has decided to discontinue its M6-C™ artificial cervical disc and M6-L™ artificial lumbar disc product lines and allocate associated resources and investment to more profitable growth opportunities in those focus areas. Global net sales for the M6-C artificial cervical and M6-L artificial lumbar discs were $23.4 million in 2024. Orthofix intends to fulfill all requirements related to post-market surveillance activities and meet its obligations with respect to premarket approval of M6 devices, including completion of the IDE study in the United States.
Business Outlook
The Company is providing full-year 2025 guidance as follows:
•Net sales expected to range between $818 million to $826 million, excluding sales from the discontinued M6 artificial disc product lines and including a negative impact from foreign currency of approximately $4 million, or 50 basis points, on a reported basis, as compared to the full-year 2024. The Company’s expected net sales represent implied constant currency growth of 6.5% year-over-year at the midpoint of the range. This guidance range is based on the current foreign currency exchange rates and does not take into account any additional potential exchange rate changes that may occur this year.
•Non-GAAP adjusted EBITDA expected to be $82 million to $86 million. This range includes the anticipated impact from the discontinuation of the M6 product lines.
•Positive free cash flow expected for full-year 2025, excluding the impact of restructuring charges related to the discontinuation of the M6-C artificial cervical and M6-L artificial lumbar disc product lines.
•The Company is also increasing its long-term net sales CAGR target to 6.5% to 7.5% from the previous net sales CAGR target of 6% to 7%, reflecting the discontinuation of the M6 artificial disc product lines.
The Company will provide a full update on the accounting treatment and financial impact for the discontinuation of the M6 product lines on its first quarter 2025 earnings call.
An investor presentation for the Company's fourth quarter and full-year 2024 financial results is available in the "Events & Presentations" section of the Orthofix investor relations website at ir.orthofix.com.
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 December 31, 2024. Interested parties may access the conference call by dialing (888) 596-4144 in the U.S., and (646) 968-2525 in all other locations, and referencing the access code 5184023. A webcast and replay of the conference call may be accessed in the "Events & Presentations" section of the Orthofix investor relations website at ir.orthofix.com.
Internet Posting of Information
Orthofix routinely posts information that may be important to investors in the “Investor Relations” section of its website at www.orthofix.com. The Company encourages investors and potential investors to consult the Orthofix website regularly for important information about Orthofix.
About Orthofix
Orthofix is a global medical technology company headquartered in Lewisville, Texas. By providing medical technologies that heal musculoskeletal pathologies, we deliver exceptional experiences and life-changing solutions to patients around the world. Orthofix offers a comprehensive portfolio of spinal hardware, bone growth therapies, specialized orthopedic solutions, biologics and enabling technologies, including the 7D FLASH™ navigation system. To learn more, visit Orthofix.com and follow on LinkedIn.
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, 2025. 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, 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 net 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.
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Company Contact |
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Investors and Media |
Julie Dewey, IRC Chief Investor Relations & Communications Officer |
JulieDewey@Orthofix.com |
209.613.6945 |
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ORTHOFIX MEDICAL INC.
Condensed Consolidated Statements of Operations
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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(U.S. Dollars, in thousands, except share and per share data) |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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Net sales |
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$ |
215,657 |
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$ |
200,415 |
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$ |
799,491 |
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$ |
746,641 |
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Cost of sales |
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66,816 |
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63,785 |
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253,606 |
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260,368 |
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Gross profit |
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148,841 |
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136,630 |
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545,885 |
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486,273 |
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Sales, general, and administrative |
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136,479 |
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132,284 |
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532,525 |
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530,395 |
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Research and development |
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18,807 |
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18,941 |
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73,643 |
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80,231 |
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Acquisition-related amortization and remeasurement |
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5,031 |
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3,720 |
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24,336 |
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14,757 |
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Operating loss |
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(11,476 |
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(18,315 |
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(84,619 |
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(139,110 |
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Interest expense, net |
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(14,920 |
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(4,500 |
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(29,631 |
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(8,631 |
) |
Other income (expense), net |
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(3,315 |
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766 |
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(9,625 |
) |
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(938 |
) |
Loss before income taxes |
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(29,711 |
) |
|
|
(22,049 |
) |
|
|
(123,875 |
) |
|
|
(148,679 |
) |
Income tax benefit (expense) |
|
|
564 |
|
|
|
(125 |
) |
|
|
(2,122 |
) |
|
|
(2,716 |
) |
Net loss |
|
$ |
(29,147 |
) |
|
$ |
(22,174 |
) |
|
$ |
(125,997 |
) |
|
$ |
(151,395 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.75 |
) |
|
$ |
(0.59 |
) |
|
$ |
(3.30 |
) |
|
$ |
(4.12 |
) |
Diluted |
|
|
(0.75 |
) |
|
|
(0.59 |
) |
|
|
(3.30 |
) |
|
|
(4.12 |
) |
Weighted average number of common shares (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
38.7 |
|
|
|
37.3 |
|
|
|
38.1 |
|
|
|
36.7 |
|
Diluted |
|
|
38.7 |
|
|
|
37.3 |
|
|
|
38.1 |
|
|
|
36.7 |
|
ORTHOFIX MEDICAL INC.
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
(U.S. Dollars, in thousands, except par value data) |
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
83,238 |
|
|
$ |
33,107 |
|
Restricted cash |
|
|
2,500 |
|
|
|
4,650 |
|
Accounts receivable, net of allowances of $7,418 and $7,130, respectively |
|
|
134,713 |
|
|
|
128,098 |
|
Inventories |
|
|
189,452 |
|
|
|
222,166 |
|
Prepaid expenses and other current assets |
|
|
23,382 |
|
|
|
32,422 |
|
Total current assets |
|
|
433,285 |
|
|
|
420,443 |
|
Property, plant, and equipment, net |
|
|
139,804 |
|
|
|
159,060 |
|
Intangible assets, net |
|
|
98,803 |
|
|
|
117,490 |
|
Goodwill |
|
|
194,934 |
|
|
|
194,934 |
|
Other long-term assets |
|
|
26,468 |
|
|
|
33,388 |
|
Total assets |
|
$ |
893,294 |
|
|
$ |
925,315 |
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
48,803 |
|
|
$ |
58,357 |
|
Current portion of long-term debt |
|
|
— |
|
|
|
1,250 |
|
Current portion of finance lease liability |
|
|
755 |
|
|
|
708 |
|
Other current liabilities |
|
|
119,070 |
|
|
|
104,908 |
|
Total current liabilities |
|
|
168,628 |
|
|
|
165,223 |
|
Long-term debt |
|
|
157,015 |
|
|
|
93,107 |
|
Long-term portion of finance lease liability |
|
|
17,835 |
|
|
|
18,532 |
|
Other long-term liabilities |
|
|
46,692 |
|
|
|
49,723 |
|
Total liabilities |
|
|
390,170 |
|
|
|
326,585 |
|
Contingencies |
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
Common shares $0.10 par value; 100,000 shares authorized;
38,486 and 37,165 issued and outstanding as of December 31,
2024 and 2023, respectively |
|
|
3,849 |
|
|
|
3,717 |
|
Additional paid-in capital |
|
|
779,718 |
|
|
|
746,450 |
|
Accumulated deficit |
|
|
(276,141 |
) |
|
|
(150,144 |
) |
Accumulated other comprehensive loss |
|
|
(4,302 |
) |
|
|
(1,293 |
) |
Total shareholders’ equity |
|
|
503,124 |
|
|
|
598,730 |
|
Total liabilities and shareholders’ equity |
|
$ |
893,294 |
|
|
$ |
925,315 |
|
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, |
|
|
Year Ended December 31, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Gross profit |
|
$ |
148,841 |
|
|
$ |
136,630 |
|
|
$ |
545,885 |
|
|
$ |
486,273 |
|
Share-based compensation expense |
|
|
477 |
|
|
|
462 |
|
|
|
2,068 |
|
|
|
1,878 |
|
SeaSpine merger-related costs |
|
|
660 |
|
|
|
214 |
|
|
|
6,239 |
|
|
|
6,861 |
|
Strategic investments |
|
|
32 |
|
|
|
125 |
|
|
|
192 |
|
|
|
389 |
|
Acquisition-related fair value adjustments |
|
|
3,047 |
|
|
|
7,037 |
|
|
|
12,188 |
|
|
|
36,044 |
|
Amortization/depreciation of acquired long-lived assets |
|
|
313 |
|
|
|
372 |
|
|
|
1,153 |
|
|
|
1,196 |
|
Medical device regulation |
|
|
— |
|
|
|
(72 |
) |
|
|
— |
|
|
|
604 |
|
Adjusted gross profit |
|
$ |
153,370 |
|
|
$ |
144,768 |
|
|
$ |
567,725 |
|
|
$ |
533,245 |
|
Adjusted gross margin |
|
|
71.1 |
% |
|
|
72.2 |
% |
|
|
71.0 |
% |
|
|
71.4 |
% |
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net loss |
|
$ |
(29,147 |
) |
|
$ |
(22,174 |
) |
|
$ |
(125,997 |
) |
|
$ |
(151,395 |
) |
Income tax expense (benefit) |
|
|
(564 |
) |
|
|
125 |
|
|
|
2,122 |
|
|
|
2,716 |
|
Interest expense, net |
|
|
14,920 |
|
|
|
4,500 |
|
|
|
29,631 |
|
|
|
8,631 |
|
Depreciation and amortization |
|
|
15,994 |
|
|
|
13,969 |
|
|
|
60,061 |
|
|
|
53,063 |
|
Share-based compensation expense |
|
|
7,165 |
|
|
|
3,167 |
|
|
|
32,455 |
|
|
|
35,707 |
|
Foreign exchange impact |
|
|
3,133 |
|
|
|
(2,638 |
) |
|
|
4,395 |
|
|
|
(1,581 |
) |
SeaSpine merger-related costs |
|
|
1,493 |
|
|
|
2,261 |
|
|
|
14,485 |
|
|
|
36,577 |
|
Strategic investments |
|
|
440 |
|
|
|
389 |
|
|
|
910 |
|
|
|
2,272 |
|
Acquisition-related fair value adjustments |
|
|
3,737 |
|
|
|
6,486 |
|
|
|
19,088 |
|
|
|
33,393 |
|
(Gain) loss on investments |
|
|
— |
|
|
|
1,781 |
|
|
|
5,120 |
|
|
|
1,781 |
|
Litigation and investigation costs |
|
|
5,452 |
|
|
|
8,842 |
|
|
|
15,770 |
|
|
|
14,453 |
|
Succession charges |
|
|
1,315 |
|
|
|
1,006 |
|
|
|
9,376 |
|
|
|
1,176 |
|
Medical device regulation |
|
|
— |
|
|
|
1,927 |
|
|
|
— |
|
|
|
9,492 |
|
Adjusted EBITDA |
|
$ |
23,938 |
|
|
$ |
19,641 |
|
|
$ |
67,416 |
|
|
$ |
46,285 |
|
Adjusted EBITDA as % of net sales |
|
|
11.1 |
% |
|
|
9.8 |
% |
|
|
8.4 |
% |
|
|
6.2 |
% |
Adjusted Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, |
|
|
Year Ended
December 31, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net loss |
|
$ |
(29,147 |
) |
|
$ |
(22,174 |
) |
|
$ |
(125,997 |
) |
|
$ |
(151,395 |
) |
Share-based compensation expense |
|
|
7,165 |
|
|
|
3,167 |
|
|
|
32,455 |
|
|
|
35,707 |
|
Foreign exchange impact |
|
|
3,132 |
|
|
|
(2,637 |
) |
|
|
4,395 |
|
|
|
(1,581 |
) |
SeaSpine merger-related costs |
|
|
4,430 |
|
|
|
2,029 |
|
|
|
17,864 |
|
|
|
37,609 |
|
Strategic investments |
|
|
470 |
|
|
|
405 |
|
|
|
1,036 |
|
|
|
2,037 |
|
Acquisition-related fair value adjustments |
|
|
3,737 |
|
|
|
6,486 |
|
|
|
19,088 |
|
|
|
33,393 |
|
Amortization/depreciation of acquired long-lived assets |
|
|
4,837 |
|
|
|
5,023 |
|
|
|
19,323 |
|
|
|
19,994 |
|
Litigation and investigation costs |
|
|
5,452 |
|
|
|
8,842 |
|
|
|
15,770 |
|
|
|
14,453 |
|
Succession charges |
|
|
1,315 |
|
|
|
1,007 |
|
|
|
9,376 |
|
|
|
1,176 |
|
Medical device regulation |
|
|
— |
|
|
|
1,954 |
|
|
|
— |
|
|
|
9,493 |
|
Interest and loss on investments |
|
|
— |
|
|
|
1,759 |
|
|
|
5,070 |
|
|
|
2,098 |
|
Long-term income tax rate adjustment |
|
|
(796 |
) |
|
|
(1,551 |
) |
|
|
1,981 |
|
|
|
1,120 |
|
Adjusted net income |
|
$ |
595 |
|
|
$ |
4,310 |
|
|
$ |
361 |
|
|
$ |
4,104 |
|
Cash Flow and Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
(U.S. Dollars, in thousands) |
|
2024 |
|
|
2023 |
|
Net cash provided by (used in) operating activities |
|
$ |
25,790 |
|
|
$ |
(45,753 |
) |
Net cash used in investing activities |
|
|
(27,580 |
) |
|
|
(33,131 |
) |
Net cash provided by financing activities |
|
|
50,709 |
|
|
|
65,322 |
|
Effect of exchange rate changes on cash |
|
|
(938 |
) |
|
|
619 |
|
Net change in cash, cash equivalents, and restricted cash |
|
$ |
47,981 |
|
|
$ |
(12,943 |
) |
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2024 |
|
|
2023 |
|
Net cash from operating activities |
|
$ |
25,790 |
|
|
$ |
(45,753 |
) |
Capital expenditures |
|
|
(34,876 |
) |
|
|
(62,050 |
) |
Free cash flow |
|
$ |
(9,086 |
) |
|
$ |
(107,803 |
) |
Reconciliation of Non-GAAP Financial Measures to Reported Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Sales, general, and administrative |
|
$ |
136,479 |
|
|
$ |
132,284 |
|
|
$ |
532,525 |
|
|
$ |
530,395 |
|
Reconciling items impacting sales, general, and administrative: |
|
|
|
|
|
|
|
|
|
|
|
|
Strategic investments |
|
|
(4,073 |
) |
|
|
(1,808 |
) |
|
|
(11,674 |
) |
|
|
(28,523 |
) |
Amortization/depreciation of acquired long-lived assets |
|
|
(183 |
) |
|
|
(381 |
) |
|
|
(734 |
) |
|
|
(1,393 |
) |
Litigation and investigation costs |
|
|
(5,451 |
) |
|
|
(8,842 |
) |
|
|
(15,769 |
) |
|
|
(14,453 |
) |
Succession charges |
|
|
(160 |
) |
|
|
(1,007 |
) |
|
|
(8,221 |
) |
|
|
(1,176 |
) |
Medical device regulation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11 |
) |
Sales, general, and administrative expense, as adjusted |
|
$ |
126,612 |
|
|
$ |
120,246 |
|
|
$ |
496,127 |
|
|
$ |
484,839 |
|
Sales, general, and administrative expense as a percentage of net sales, as adjusted |
|
|
58.7 |
% |
|
|
60.0 |
% |
|
|
62.1 |
% |
|
|
64.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Research and development expense, as reported |
|
$ |
18,807 |
|
|
$ |
18,941 |
|
|
$ |
73,643 |
|
|
$ |
80,231 |
|
Reconciling items impacting research and development: |
|
|
|
|
|
|
|
|
|
|
|
|
Strategic investments |
|
|
(135 |
) |
|
|
(331 |
) |
|
|
(780 |
) |
|
|
(3,061 |
) |
Medical device regulation |
|
|
— |
|
|
|
(2,029 |
) |
|
|
— |
|
|
|
(8,883 |
) |
Succession charges |
|
|
(1,155 |
) |
|
|
— |
|
|
|
(1,155 |
) |
|
|
- |
|
Research and development expense, as adjusted |
|
$ |
17,517 |
|
|
$ |
16,581 |
|
|
$ |
71,708 |
|
|
$ |
68,287 |
|
Research and development expense as a percentage of net sales, as adjusted |
|
|
8.1 |
% |
|
|
8.3 |
% |
|
|
9.0 |
% |
|
|
9.1 |
% |
Reconciliations of Non-GAAP Financial Measures to Reported Non-Operating (Income) Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Non-operating expense |
|
$ |
18,235 |
|
|
$ |
3,734 |
|
|
$ |
39,256 |
|
|
$ |
9,569 |
|
Reconciling items impacting non-operating expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange impact |
|
|
(3,133 |
) |
|
|
2,637 |
|
|
|
(4,396 |
) |
|
|
1,580 |
|
Strategic investments |
|
|
— |
|
|
|
19 |
|
|
|
— |
|
|
|
(876 |
) |
Interest and loss on investments |
|
|
— |
|
|
|
(1,759 |
) |
|
|
(5,070 |
) |
|
|
(2,098 |
) |
Non-operating expense, as adjusted |
|
$ |
15,102 |
|
|
$ |
4,631 |
|
|
$ |
29,790 |
|
|
$ |
8,175 |
|
Non-operating expense as a percentage of net sales, as adjusted |
|
|
7.0 |
% |
|
|
2.3 |
% |
|
|
3.7 |
% |
|
|
1.1 |
% |
Source
Orthofix Medical Inc.
###
Clear Course for Profitable Growth 4Q and Full-Year 2024 Earnings Call February 25, 2025
Forward-Looking Statements This presentation 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 presentation include the Company's expectations regarding net sales, adjusted EBITDA, and free cash flow for the year ended December 31, 2025, 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, 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 net income (loss), 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.
Non-GAAP Financial Measures Management uses certain non-GAAP financial measures in this presentation, most specifically Adjusted EBITDA, Adjusted Gross Margin, Adjusted Net Income and Free Cash Flow, as a supplement to GAAP financial measures to further evaluate the company’s operating performance period over period, analyze the underlying business trends, assess performance relative to competitors and establish operational objectives. Management believes it is important to provide investors with the same non-GAAP metrics it uses to evaluate the performance and underlying trends of the company’s business operations to facilitate comparisons to its historical operating results and evaluate the effectiveness of its operating strategies. Disclosure of these non-GAAP financial measures also facilitates comparisons of the Company’s underlying operating performance with other companies in the industry that also supplement their GAAP results with non-GAAP financial measures. Unless noted otherwise, full-year guidance is based on the current foreign currency exchange rates and does not take into account any additional potential exchange rate changes that may occur this year. These non-GAAP financial measures should not be considered in isolation from, or as replacements for, the most directly comparable GAAP financial measures, as these measures are not prepared in accordance with U.S. GAAP. Reconciliations between GAAP and non‐GAAP results are included at the end of this presentation and represent the most comparable GAAP measure(s) 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. Amounts may not add due to rounding.
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We are pleased with the performance of the Orthofix team to serve our surgeons and patients and successfully execute our plans throughout 2024. Our fourth quarter results reflect outstanding performance across all three major product lines, providing further evidence that Orthofix’s balanced and complementary product mix offers a differentiated advantage across multiple markets. We enter 2025 with great momentum as two integrated organizations. The entire team remains focused on executing our priorities, and I look forward to leveraging our unique portfolio platform to drive value creation through profitable growth in 2025 and beyond. “ Massimo Calafiore President & Chief Executive Officer ” 5 $23.9M Non-GAAP Adjusted EBITDA2 $4.3M YoY increase and ~130 bps margin expansion $15.2M Free Cash Flow2 Significant improvement in cash usage compared to previous quarters 12% U.S. Spine Fixation3 YoY Net Sales Growth Driven by distribution expansion and penetration in existing accounts 9% Bone Growth Therapies YoY Net Sales Growth 10% Growth in BGT Fracture 71.1% Non-GAAP Adjusted Gross Margin2 Compared to 72.2% for Q4 2023 $215.7M Net Sales 8% Growth YoY as reported and constant currency1 21% U.S. Orthopedics YoY Net Sales Growth U.S. Orthopedics delivered a record quarter, benefiting from strong execution 1 Constant Currency is calculated by applying foreign currency rates applicable to the comparable, prior-year period to present the current period net sales at comparable rates. Constant currency can be presented for numerous GAAP measures, but is commonly used by management to analyze net sales excluding the impact of changes in foreign currency rates. 2 The reasons for and nature of non-GAAP disclosures by the Company, descriptions of the adjustments used to calculate those non-GAAP financial measures, and reconciliations of those non-GAAP financial measures to the most comparable GAAP financial measure, are provided in the Company’s press release issued and Annual Report on Form 10-K filed on February 25, 2025. 3 Spine fixation is comprised of the Company's Spinal Implants product category, excluding motion preservation product offerings. Q4 2024 Financial Highlights
6 Record Q4 net sales results reflect strong execution across all three major product lines where performance was led by strength in our U.S. markets 01 Solid operational execution – Achieved profitability objectives, including $15.2M in free cash flow for Q4, much earlier than originally anticipated 02 Company entered into record number of 7D FLASH™ Navigation System placements for full-year 2024 03 Prudently deploying capital and prioritizing investment in profitable growth opportunities and increased penetration of our technology and product platforms in areas where we can win 04 Executing toward three-year financial targets and building on positive momentum – Company increases long-term net sales CAGR target to 6.5% to 7.5% from previous 6% to 7% 05 Q4 and Full-Year 2024 Key Messages
Q4 2024 Results Summary Fourth Quarter 2024 Results Summary (in millions) Q4 2024 Q4 2023 Constant Currency Change Bone Growth Therapies $ 63.9 $ 58.8 8.6% Spinal Implants, Biologics, and Enabling Technologies 116.0 111.0 4.5% Global Spine 179.9 169.8 6.0% Global Orthopedics 35.8 30.6 18.1% Total Net Sales $ 215.7 $ 200.4 7.8% Non-GAAP Adjusted Gross Margins 71.1% 72.2% -110 bps Non-GAAP Adjusted EBITDA $ 23.9 $ 19.6 22.3% Q4 Total Net Sales: $215.7M; 7.8% YoY constant currency growth Q4 Non-GAAP Adjusted EBITDA: $23.9M; 11.1% of net sales vs $19.6M in 4Q23; 9.8% of net sales Q4 Non-GAAP Adjusted Gross Margin: 71.1% vs 72.2% in 4Q23 Q4 Non-GAAP Sales & Marketing: $101.1M; 46.9% of net sales vs $96.8M in 4Q23; 48.3% of net sales Q4 Non-GAAP R&D: $17.5M; 8.1% of net sales vs $16.6M in 4Q23; 8.3% of net sales 7 Q4 2024 Total Revenues $215.7M +8% YoY* Bone Growth Therapies $63.9M +9% Global Orthopedics $35.8M +18%* Global Spinal Implants, Biologics, & Enabling Technologies $116.0M +4.5%* International Spinal Implants, Biologics & Enabling Technologies $9.8M (-6.1%)* U.S. Spinal Implants, Biologics & Enabling Technologies $106.2M +5.6% 92% 8% * YoY Growth on Constant Currency basis
Full-Year 2024 Results Summary FY24 Total Net Sales: $799.5M; 7.1% YoY constant currency growth FY24 Non-GAAP Adjusted EBITDA: $67.4M; 8.4% of net sales vs $46.2M in FY23; 6.2% of net sales FY24 Non-GAAP Adjusted Gross Margin: 71.0% vs 71.4% in FY23 FY24 Non-GAAP Sales & Marketing: $394.5M; 49.3% of net sales vs $378.3M in FY23; 50.7% of net sales FY24 Non-GAAP R&D: $71.7M; 9.0% of net sales vs $68.3M in FY23; 9.1% of net sales 8 FY 2024 Total Revenues $799.5M +7% YoY* Bone Growth Therapies $233.4M +9.8% Global Orthopedics $124.2M +7.9%* Global Spinal Implants, Biologics, & Enabling Technologies $441.9M +5.5%* International Spinal Implants, Biologics & Enabling Technologies $36.1M (8.3%)* U.S. Spinal Implants, Biologics & Enabling Technologies $405.8M +7% 92% 8% * YoY Growth on Constant Currency basis Full-Year 2024 Results Summary (in millions) FY 2024 FY 2023 Constant Currency Change Bone Growth Therapies $ 233.4 $ 212.5 9.8% Spinal Implants, Biologics, and Enabling Technologies 441.9 418.8 5.5% Global Spine 675.3 631.3 7.0% Global Orthopedics 124.2 115.3 7.9% Total Net Sales $ 799.5 $ 746.6 7.1% Non-GAAP Adjusted Gross Margins 71.0% 71.4% -40 bps Non-GAAP Adjusted EBITDA $ 67.4 $ 46.2 46.0%
Q4 2024 Business Segment Highlights Bone Growth Therapies BGT net sales grew 9% and BGT Fracture grew 10% Successful cross-selling Continued focus on adding new surgeons and competitive surgeon conversions BGT Fracture with AccelStim™ bone growth therapy device continuing to outperform the market Spine U.S. Spine Fixation grew 12%, more than 2x the market rate Healthy double-digit growth across all three franchises: Cervical Fusion, Interbodies and Thoracolumbar Fixation Ongoing limited market release of Reef™ L Lateral Lumbar Interbody and WaveForm™ A Interbody Orthopedics U.S. Orthopedics delivered record net sales and grew 21% Growth led by combination of TrueLok™ and Fitbone™ products and growth in GALAXY™ fixation product family 510(k) clearance and first patient surgeries with TrueLok™ Elevate TBT System – limited launch in progress 9 TBT = Transverse Bone Transport
Improving Financial Strength and Driving Strong, Positive Free Cash Flow Strong Execution and Positive Momentum Towards Free Cash Flow Driving Positive Free Cash Flow Expect to be free cash flow positive for full-year 20251 Drop-through to EBITDA of incremental revenue Working Capital improvements Efficient Working Capital Management Reduction in Inventory Days on Hand (DOH) and Instrument Efficiency Continued improvement in Days Sales Outstanding (DSO) 1 Excluding impact of restructuring charges related to the discontinuation of the M6-C artificial cervical and M6-L artificial lumbar disc product lines, which we expect to be a headwind to 2025 free cash flow
Building on a Strong Foundation – Transformation Focused on Accelerating Excellence At an Inflection Point in Our Journey Focused on Strategic, Operational, and Financial Discipline RECENT ACCOMPLISHMENTS AND TRANSFORMATIVE ACTIONS Building on clear competitive advantages Delivering consistent execution – reached profitability objectives, including positive free cash flow (FCF) for 2H24 Supporting profitable growth with disciplined capital deployment Continuing on track with SeaSpine integration and capturing synergies Driving a culture of execution and accountability through new, world-class management team CONTINUED LEADERSHIP FOCUS AREAS – MULTIPLE LEVERS FOR PROFITABLE GROWTH Innovation Focus Continued development of differentiated products to meet diverse surgeon preferences Commercial Strategy Enhancement Deeper market penetration through comprehensive portfolio offerings Technology Leadership Harnessing advanced systems for improved surgical outcomes and efficiency Growth Sustainability Emphasis on high-quality revenue streams and operational excellence Cash Flow Management Strategic financial planning to sustain positive FCF
Comprehensive Portfolio of Transformative Solutions Improved Clinical Efficiencies and Economic Value with 7D Enabling Technology Established Distribution Channels and Extensive Global Commercial Reach Large Addressable Markets with High- Growth Opportunities Across Continuum of Care World-Class, Visionary Leadership Team with Deep Sector Expertise Expanding and Deepening Customer Relationships 12 Capitalizing on Clear Competitive Advantages
Total Addressable Market 2025 – 2027 Expected Market Growth Rate Spinal Implants ~$10.1B ~3% – 4% Bone Growth Therapies ~$0.6B ~2% – 3% Biologics ~$2.1B ~2% – 3% Orthopedics ~$1.7B ~5% – 6% Enabling Technologies ~$0.4B ~10% – 12% Addressable Markets ~$15B within Full Continuum of Care Significant Runway Ahead for Further Above-Market Growth Well-Positioned for Favorable Macro Trends Aging Population Digital Healthcare AI and Machine Learning Enabling Technology Advancement Evolving Standards of Care
Spinal Implants Executing Innovation and Taking Share Select Product Examples Market Overview Sales channel optimization for growth, cross-selling, and OPEX leverage Pull through from lateral, cervical, and 7D earnouts Best-in-class implants to improve patient outcomes Interbody Cervical Thoracolumbar Fixation NorthStar™ OCT Mariner™ Deformity WaveForm™ (3D Printed) Explorer™ (Expandable) Reef™ (IBDs) ~$10.1B TAM1 Thoracolumbar Fixation Significant share capture opportunity ~3% – 4% market growth rate (2025 – 2027) Interbody Significant share capture opportunity ~3% – 4% market growth rate (2025 – 2027) Cervical Significant share capture opportunity ~3% – 4% market growth rate (2025 – 2027) OFIX Growth Drivers Shoreline™ ACS Wayfinder™ Phoenix™ MIS Meridian™ 1 U.S. Total Addressable Market. Sources: iData Research Inc.; U.S. Market Report for Spinal Implants and VCF; SmartTrak US Spine Market Report; Internal OFIX estimates Supporting Clinicians and Patients through Continuous Innovation of Procedure Solutions Comprehensive, best-in-class spinal implants designed to work in concert with 7D Navigation and biologics to support improved clinical outcomes Focus on deformity correction and experts in cervical fixation and material science
AccelStim™ SpinalStim™ PhysioStim™ CervicalStim™ Complex Foot & Ankle Reconstruction and Fracture Management Bone Growth Therapies Maximizing #1 Market Position Growing Above Market through Innovation and Expansion Safe, effective, non-surgical alternative to aid in bone healing of fracture management and high-risk spine fusions Most comprehensive portfolio of bone growth stimulation devices Most indications on the market to aid in bone healing solutions Select Product Examples #1 prescribed bone growth stimulator First to offer free recycling for patients to properly dispose their devices PEMF technology approved since 1986 Prescribed devices 1,100,000+ Spine Fusion Therapy Market Overview Procedural selling focused on cross-selling with orthopedics and spine New market channels with established sales representatives AccelStim growth to penetrate Fracture market ~$0.6B TAM1 Spine #1 Position ~2% – 3% market growth rate (2025 – 2027) Fracture #2 Position ~2% – 3% market growth rate (2025 – 2027) OFIX Growth Drivers Note: PEMF = Pulsed Electromagnetic Field. 1 U.S. Total Addressable Market.
Biologics Growing from a Position of Strength Strategically Introducing New Products to Capture Additional Market Share Full spectrum of biologic solutions to enhance fusion process and promote bone repair and growth Provide industry leading, best-in-class products in each of the major bone grafting categories Select Product Examples Demineralized Bone Matrix OsteoSurge™ 300 OsteoStrand™ Plus Synthetic Procedure-Specific OsteoCove™ OsteoBallast™ Market Overview Opportunities in current portfolio and spine Product innovation with clinical research Disc regeneration, channel expansion options ~$2.1B TAM1 Synthetic Significant share capture opportunity ~2% – 3% market growth rate (2025 – 2027) Cellular Allograft #2 Position ~2% – 3% market growth rate (2025 – 2027) OFIX Growth Drivers Trinity Elite™ Cellular Allograft Growth Factors, Other Do not participate 1 Global Total Addressable Market, including Growth Factors. Demineralized Bone Matrix #2 Position ~2% – 3% market growth rate (2025 – 2027)
Orthopedics Redefining Limb Reconstruction Proven Leader with Room to Grow through Innovation of Hardware and Digital Solutions Enabling Technologies - OrthoNext™ 1 Global Total Addressable Market. Select Product Examples Unique portfolio of limb reconstruction solutions, addressing the most challenging orthopedic conditions in patients of all ages Galaxy Gemini™ Complex Fracture Management Fitbone™ Limb Lengthening TL-HEX™ Extremity Deformity Correction TrueLok Elevate™ TBT Market Overview Accelerating U.S. growth and expanding position Global sales channel optimization through execution and focused distribution New product platforms with next-gen digital capabilities OFIX Growth Drivers ~$1.7B TAM1 Complex Fracture Management Significant share capture opportunity ~3% – 4% market growth rate (2025 – 2027) Limb Lengthening Significant share capture opportunity ~7% – 8% market growth rate (2025 – 2027) Extremity Deformity Correction & Limb Restoration Significant share capture opportunity ~5% – 6% market growth rate (2025 – 2027) Limb Preservation
Enabling Technologies Empowering Excellence with Real-Time, Integrated Smart Technologies Capturing Significant Opportunity to Leverage Technology and Expand Share in Spine FLASHTM Navigation with 7D Technology, world’s leading, zero-radiation1 spine image-guided surgery system Allows surgeons to perform fast, cost-effective, and radiation-free surgery Pacesetting leader for open spine procedures and deformity correction Open and Percutaneous Spine Modules2 Market Overview OFIX Growth Drivers 7D deployments through commercial financing structures and product pull through Product integration with spinal implant portfolio Digital ecosystem expansion (pre-op planning, intra-op navigation, and post-op care) ~$0.4B TAM3 Spinal Navigation Significant share capture opportunity ~10% – 12% market growth rate (2025 – 2027) FLASH™ Navigation with 7D Technology Product Example Significant Focus in Spine 1 Based on a pre-op CT or MRI, no intra-op radiation is required using Open Spine Module, eliminating exposure to surgeons, staff, and patients. Intra-op radiation is required for Percutaneous Module. 2 ~40% of U.S. installed base has cranial module. 3 Global Total Addressable Market.
Innovation Spotlight – FLASHTM Navigation with 7D Technology Technology Differentiates Portfolio While Enabling Service to Full Continuum of Surgical Care 97.8% reduction in intraoperative radiation during adult degenerative spinal fusions1* Revolutionizing Spinal Navigation Created Meaningful Advantages with FLASHTM Navigation with 7D Technology 61% reduction in intraoperative radiation during complex pediatric deformity spinal fusions2* 98.8% accurate with no pedicle breach1* 94% faster than intraoperative CT-based systems3* 63.6 minutes saved per case4* Flexible Selling Models to Meet Unique Needs of Facility First and only image-guided surgery system featuring 7D’s machine-vision technology, allowing surgeons to perform fast, cost-effective, radiation-free IGS Capital Purchase Lease “Earnout” through purchase of spine hardware and/or biologics; creating recurring revenue stream and stronger customer relationships Voyager Earnout Program *Not an Orthofix sponsored clinical study. 1 Malham GM, Munday NR. Comparison of novel machine vision spinal image guidance system with existing 3D fluoroscopy-based navigation system: a randomized prospective study. Spine J. 2022 Apr;22(4):561-569. doi: 10.1016/j.spinee.2021.10.002. Epub 2021 Oct 16. PMID: 34666179. 2 Comstock, Christopher P. MD; Wait, Eric MD. Novel Machine Vision Image Guidance System Significantly Reduces Procedural Time and Radiation Exposure Compared With 2-dimensional Fluoroscopy-based Guidance in Pediatric Deformity Surgery. Journal of Pediatric Orthopaedics ():10.1097/BPO.0000000000002377, March 6, 2023. | DOI: 10.1097/ BPO.0000000000002377 3 Jakubovic R, Guha D, Gupta S, et al. High speed, high density intraoperative 3D optical topographical imaging with efficient registration to MRI and CT for craniospinal surgical navigation. Sci Rep. 2018;8:14894. doi:10.1038/s41598-018-32424-z. 4 Lim KBL, Yeo ISX, Ng SWL, Pan WJ, Lee NKL. The machine-vision image guided surgery system reduces fluoroscopy time, ionizing radiation and intraoperative blood loss in posterior spinal fusion for scoliosis. Eur Spine J. 2023 Jul 10. doi: 10.1007/s00586-023-07848-5. Epub ahead of print. PMID: 37428212.Stewart G. Visible Light Navigation in Spine Surgery: My Experience With My First 150 Cases. Int J Spine Surg. 2022 Oct;16(S2):S28-S36. doi: 10.14444/8274. Epub 2022 Aug 5. PMID: 36456113; PMCID: PMC9808787.
Significant Cross-Portfolio Commercial Opportunities Bone Growth Therapies (BGT) Combined portfolio with Biologics to target Trauma surgeons Combine with select Orthopedics product lines Expanding domestically through legacy SeaSpine distribution and orthopedics Expand internationally via Orthopedics Channels Biologics Expand cross-selling with U.S. Orthopedics channels Spine Maximize procedural selling opportunity with Biologics, 7D, and BGT Orthopedics Maximize procedural selling opportunity with Biologics, BGT, and Enabling Technologies Enabling Technologies (ET) Focus on 7D equipment placements to drive recurring implant usage Leverage investment and drive synergistic approach across the portfolio
Looking Forward – Accelerating Our Profitable Growth Engine Advancing Toward Our Goals for Consistent Above-Market Growth, Improved Profitability, and Positive Free Cash Flow Invest in Differentiated Technologies in Areas Where We Can Win and Lead Innovation Capitalize on Multiple Access Points to Grow Business at Sustained, Above-Market Rates Operate with Discipline for Margin Expansion Improve Financial Strength and Drive Strong, Positive Cash Flow
Full-Year 2025 Guidance1 $818M – $826M Net Sales $82M – $86M Adjusted EBITDA Positive Free Cash Flow for 2025² 1 As of the Company’s Q4 2024 Earnings Call hosted on 2/25/2025. Inclusion of this information in this presentation is not a confirmation or an update of, and should not be construed or otherwise assumed to reflect any confirmation or update of, that guidance by Orthofix leadership as of any date other than 2/25/2025. Net sales range of $818 million to $826 million excludes sales from the discontinued M6 artificial disc product lines and includes a negative impact from foreign currency of approximately $4 million, or 50 basis points, on a reported basis, as compared to the full-year 2024. The Company’s expected net sales represent implied constant currency growth of 6.5% year-over-year at midpoint of the range. This guidance range is based on current foreign currency exchange rates and does not take into account any additional potential exchange rate changes that may occur this year. 2 Excluding impact of restructuring charges related to the discontinuation of the M6-C artificial cervical and M6-L artificial lumbar disc product lines, which we expect to be a headwind to 2025 free cash flow
Strategy is Driving Long-Term Profitable Growth – Increased Net Sales CAGR in 2027 Financial Goals Growth Engine Pillars Assumptions **6.5% – 7.5%** Net Sales CAGR (2025 – 2027) Mid-Teens Adj. EBITDA (Full-year 2027) Positive Free Cash Flow Generation1 (2025 – 2027) Sustained market demand: weighted average market growth of ~4% – 5% Includes negative pricing impact of 1% to 2% No material change in reimbursement or regulatory environment ~300 bps of Gross Margin expansion over period Capture remaining merger synergies Fixed cost leverage, moderating expense growth Driven by continued Adj. EBITDA improvement Reduction in inventory DOH Improved instrument utilization Differentiated Technologies Multiple Access Points Margin Expansion Strong Cash Flow 2027 Financial Targets **Increased from 6% - 7%** 1 Excluding impact of restructuring charges related to the discontinuation of the M6-C artificial cervical and M6-L artificial lumbar disc product lines, which we expect to be a headwind to 2025 free cash flow
Investment Summary – Why Invest in Orthofix? 01 Strong fundamentals with profitable growth opportunity and compelling value proposition across diverse portfolio 02 More focused commercial strategy with robust innovation pipeline complemented by successful cross-selling 03 New leadership team well-positioned to implement strategic vision and achieve sustainable, profitable growth across portfolio 04 Improved operational execution; achieved profitability objectives, including positive free cash flow for second half of 2024, much earlier than originally anticipated 05 New 2027 financial targets reflect confidence in sustainable growth trends and commercial strategy and execution
For additional information, please contact: Julie Dewey, IRC Chief IR & Communications Officer juliedewey@orthofix.com 209-613-6945 www.Orthofix.com NASDAQ: OFIX
Financial and Non-GAAP Reconciliation Tables Appendix
Net Sales by Major Product Category by Reporting Segment Three Months Ended December 31, (Unaudited, U.S. Dollars, in millions) 2024 2023 Change Constant Currency Change Bone Growth Therapies $ 63.9 $ 58.8 8.6 % 8.6 % Spinal Implants, Biologics, and Enabling Technologies 116.0 111.0 4.5 % 4.5 % Global Spine 179.9 169.8 5.9 % 6.0 % Global Orthopedics 35.8 30.6 16.8 % 18.1 % Net sales $ 215.7 $ 200.4 7.6 % 7.8 % Year Ended December 31, (Unaudited, U.S. Dollars, in millions) 2024 2023 Change Constant Currency Change Bone Growth Therapies $ 233.4 $ 212.5 9.8 % 9.8 % Spinal Implants, Biologics, and Enabling Technologies 441.9 418.8 5.5 % 5.5 % Global Spine 675.3 631.3 7.0 % 7.0 % Global Orthopedics 124.2 115.3 7.7 % 7.9 % Net sales $ 799.5 $ 746.6 7.1 % 7.1 %
Condensed Consolidated Balance Sheets (U.S. Dollars, in thousands, except par value data) December 31, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 83,238 $ 33,107 Restricted cash 2,500 4,650 Accounts receivable, net of allowances of $7,418 and $7,130, respectively 134,713 128,098 Inventories 189,452 222,166 Prepaid expenses and other current assets 23,382 32,422 Total current assets 433,285 420,443 Property, plant, and equipment, net 139,804 159,060 Intangible assets, net 98,803 117,490 Goodwill 194,934 194,934 Other long-term assets 26,468 33,388 Total assets $ 893,294 $ 925,315 Liabilities and shareholders’ equity Current liabilities Accounts payable $ 48,803 $ 58,357 Current portion of long-term debt — 1,250 Current portion of finance lease liability 755 708 Other current liabilities 119,070 104,908 Total current liabilities 168,628 165,223 Long-term debt 157,015 93,107 Long-term portion of finance lease liability 17,835 18,532 Other long-term liabilities 46,692 49,723 Total liabilities 390,170 326,585 Contingencies Shareholders’ equity Common shares $0.10 par value; 100,000 shares authorized; 38,486 and 37,165 issued and outstanding as of December 31, 2024 and 2023, respectively 3,849 3,717 Additional paid-in capital 779,718 746,450 Accumulated deficit (276,141 ) (150,144 ) Accumulated other comprehensive loss (4,302 ) (1,293 ) Total shareholders’ equity 503,124 598,730 Total liabilities and shareholders’ equity $ 893,294 $ 925,315
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) 2024 2023 2024 2023 (Unaudited) Net sales $ 215,657 $ 200,415 $ 799,491 $ 746,641 Cost of sales 66,816 63,785 253,606 260,368 Gross profit 148,841 136,630 545,885 486,273 Sales, general, and administrative 136,479 132,284 532,525 530,395 Research and development 18,807 18,941 73,643 80,231 Acquisition-related amortization and remeasurement 5,031 3,720 24,336 14,757 Operating loss (11,476 ) (18,315 ) (84,619 ) (139,110 ) Interest expense, net (14,920 ) (4,500 ) (29,631 ) (8,631 ) Other income (expense), net (3,315 ) 766 (9,625 ) (938 ) Loss before income taxes (29,711 ) (22,049 ) (123,875 ) (148,679 ) Income tax benefit (expense) 564 (125 ) (2,122 ) (2,716 ) Net loss $ (29,147 ) $ (22,174 ) $ (125,997 ) $ (151,395 ) Net loss per common share: Basic $ (0.75 ) $ (0.59 ) $ (3.30 ) $ (4.12 ) Diluted (0.75 ) (0.59 ) (3.30 ) (4.12 ) Weighted average number of common shares (in millions): Basic 38.7 37.3 38.1 36.7 Diluted 38.7 37.3 38.1 36.7
Adjusted Gross Profit and Adjusted Gross Margin Three Months Ended December 31, Year Ended December 31, (Unaudited, U.S. Dollars, in thousands) 2024 2023 2024 2023 Gross profit $ 148,841 $ 136,630 $ 545,885 $ 486,273 Share-based compensation expense 477 462 2,068 1,878 SeaSpine merger-related costs 660 214 6,239 6,861 Strategic investments 32 125 192 389 Acquisition-related fair value adjustments 3,047 7,037 12,188 36,044 Amortization/depreciation of acquired long-lived assets 313 372 1,153 1,196 Medical device regulation — (72 ) — 604 Adjusted gross profit $ 153,370 $ 144,768 $ 567,725 $ 533,245 Adjusted gross margin 71.1 % 72.2 % 71.0 % 71.4 %
Adjusted EBITDA Three Months Ended December 31, Year Ended December 31, (Unaudited, U.S. Dollars, in thousands) 2024 2023 2024 2023 Net loss $ (29,147 ) $ (22,174 ) $ (125,997 ) $ (151,395 ) Income tax expense (benefit) (564 ) 125 2,122 2,716 Interest expense, net 14,920 4,500 29,631 8,631 Depreciation and amortization 15,994 13,969 60,061 53,063 Share-based compensation expense 7,165 3,167 32,455 35,707 Foreign exchange impact 3,133 (2,638 ) 4,395 (1,581 ) SeaSpine merger-related costs 1,493 2,261 14,485 36,577 Strategic investments 440 389 910 2,272 Acquisition-related fair value adjustments 3,737 6,486 19,088 33,393 (Gain) loss on investments — 1,781 5,120 1,781 Litigation and investigation costs 5,452 8,842 15,770 14,453 Succession charges 1,315 1,006 9,376 1,176 Medical device regulation — 1,927 — 9,492 Adjusted EBITDA $ 23,938 $ 19,641 $ 67,416 $ 46,285 Adjusted EBITDA as % of net sales 11.1 % 9.8 % 8.4 % 6.2 %
Adjusted Net Income Three Months Ended December 31, Year Ended December 31, (Unaudited, U.S. Dollars, in thousands) 2024 2023 2024 2023 Net loss $ (29,147 ) $ (22,174 ) $ (125,997 ) $ (151,395 ) Share-based compensation expense 7,165 3,167 32,455 35,707 Foreign exchange impact 3,132 (2,637 ) 4,395 (1,581 ) SeaSpine merger-related costs 4,430 2,029 17,864 37,609 Strategic investments 470 405 1,036 2,037 Acquisition-related fair value adjustments 3,737 6,486 19,088 33,393 Amortization/depreciation of acquired long-lived assets 4,837 5,023 19,323 19,994 Litigation and investigation costs 5,452 8,842 15,770 14,453 Succession charges 1,315 1,007 9,376 1,176 Medical device regulation — 1,954 — 9,493 Interest and loss on investments — 1,759 5,070 2,098 Long-term income tax rate adjustment (796 ) (1,551 ) 1,981 1,120 Adjusted net income $ 595 $ 4,310 $ 361 $ 4,104
Cash Flow and Free Cash Flow Year Ended December 31, (U.S. Dollars, in thousands) 2024 2023 Net cash provided by (used in) operating activities $ 25,790 $ (45,753 ) Net cash used in investing activities (27,580 ) (33,131 ) Net cash provided by financing activities 50,709 65,322 Effect of exchange rate changes on cash (938 ) 619 Net change in cash, cash equivalents, and restricted cash $ 47,981 $ (12,943 ) Year Ended December 31, (Unaudited, U.S. Dollars, in thousands) 2024 2023 Net cash from operating activities $ 25,790 $ (45,753 ) Capital expenditures (34,876 ) (62,050 ) Free cash flow $ (9,086 ) $ (107,803 )
v3.25.0.1
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Orthofix Medical (NASDAQ:OFIX)
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Orthofix Medical (NASDAQ:OFIX)
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