- FY 2023 Third Party
Net Sales from Continuing Operations of$457.2 million - FY 2023 Third Party
Net Sales from Discontinued Operations of$409.2 million - Updated Reporting Framework: Continuing Operations consists of the Dental Business and the majority of Corporate while Discontinued Operations consists of the Spine Business
- Advancing plan to complete sale of Spine Business for
$375M in total consideration; sale remains on track to be completed in 1H 2024
“We had significant accomplishments in 2023. We invested to further differentiate our portfolio which helped us make gains in the markets we serve, and we improved our operating efficiency through restructuring and cost reduction initiatives,” said
Fourth Quarter 2023 Financial Results: Continuing Operations
Third party net sales for the fourth quarter of 2023 were
Net loss for the fourth quarter of 2023 was
Adjusted net income[1] for the fourth quarter of 2023 was
Basic and diluted EPS were (
Adjusted EBITDA[1] for the fourth quarter of 2023 was
Cash and cash equivalents at the end of the fourth quarter of 2023 were
Fourth Quarter 2023 Financial Results: Discontinued Operations
Third party net sales from Discontinued Operations for the fourth quarter of 2023 were
Net loss from Discontinued Operations was
Adjusted net income[1] from Discontinued Operations for the fourth quarter of 2023 was
Basic and diluted EPS from Discontinued Operations were (
Adjusted EBITDA[1] from Discontinued Operations for the fourth quarter of 2023 was
Cash and cash equivalents from Discontinued Operations at the end of the fourth quarter of 2023 were
Full Year 2023 Financial Results: Continuing Operations
Third party net sales for the full year 2023 were
Net loss for the full year 2023 was
Adjusted net income[1] for the full year 2023 was
Basic and diluted EPS were (
Adjusted EBITDA[1] for the full year 2023 was
Full Year 2023 Financial Results: Discontinued Operations
Third party net sales from Discontinued Operations were
Net loss from Discontinued Operations for the full year 2023 was
Basic and diluted EPS from Discontinued Operations were (
Adjusted EBITDA[1] from Discontinued Operations for the full year 2023 was
First Quarter 2024 Financial Guidance:
Projected Quarter Ending | Guidance |
Management Raises Financial Targets for Continuing Operations for the 12 Month Period Post-Spine Sale:
Year 1 Post-Close | Guidance |
$455M+ | |
Adjusted EBITDA Margin[2] | 15%+ |
Net Debt | < |
[1] This is a non-GAAP financial measure. Refer to “Note on Non-GAAP Financial Measures” and the reconciliations in this release for further information.
[2] This is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. Refer to “Forward-Looking Non-GAAP Financial Measures” in this release, which identifies the information that is unavailable without unreasonable efforts and provides additional information. It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.
[3] Represents projected net debt one year following the closing of the sale of the spine business and excludes proceeds from expected future repayment of seller note to ZimVie.
Financial Information
The financial information included in this release for periods prior to
Conference Call
About
Note on Non-GAAP Financial Measures
This press release includes non-GAAP financial measures that differ from financial measures calculated in accordance with
Adjusted EBITDA is a non-GAAP financial measure provided in this release for certain periods, and is calculated by excluding certain items from net loss from Continuing Operations or Discontinued Operations, as applicable, on a GAAP basis, as detailed in the reconciliations presented later in this press release. Adjusted EBITDA margin is Adjusted EBITDA divided by third party net sales from Continuing Operations or Discontinued Operations, as applicable, for the applicable period.
Sales change information in this release is presented on a GAAP (reported) basis and on a constant currency basis. Constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales from Continuing Operations or Discontinued Operations, as applicable, at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases.
Net loss and diluted loss per share in this release are presented on a GAAP (reported) basis and on an adjusted basis. Adjusted net income and adjusted diluted earnings per share exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in this press release.
Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are included in this press release.
Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures.
Forward-Looking Non-GAAP Financial Measures
This press release also includes certain forward-looking non-GAAP financial measures for the quarter ending
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including, among others, any statements about our expectations, plans, intentions, strategies, or prospects. We generally use the words “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “assumes,” “guides,” “targets,” “forecasts,” “sees,” “seeks,” “should,” “could,” “would,” “predicts,” “potential,” “strategy,” “future,” “opportunity,” “work toward,” “intends,” “guidance,” “confidence,” “positioned,” “design,” “strive,” “continue,” “track,” “look forward to,” “optimistic” and similar expressions to identify forward-looking statements. All statements other than statements of historical or current fact are, or may be deemed to be forward-looking statements. Such statements are based upon the current beliefs, expectations, and assumptions of management and are subject to significant risks, uncertainties, and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: uncertainties as to the timing of the sale of our spine business and the risk that the transaction may not be completed in a timely manner or at all; the possibility that any or all of the conditions to the consummation of the sale of our spine business may not be satisfied or waived; the effect of the announcement or pendency of the transaction on our ability to retain and hire key personnel and to maintain relationships with customers, suppliers and other business partners; management’s attention being diverted from our ongoing business operations due to the sale of our spine business; uncertainties and matters related to the sale of our spine business beyond the control of management; dependence on new product development, technological advances and innovation; shifts in the product category or regional sales mix of our products and services; supply and prices of raw materials and products; pricing pressures from competitors, customers, dental practices and insurance providers; changes in customer demand for our products and services caused by demographic changes or other factors; challenges relating to changes in and compliance with governmental laws and regulations affecting our
Media Contact Information:
(774) 284-1606
Investor Contact Information:
CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Third party, net | $ | 113,066 | $ | 115,798 | $ | 457,197 | $ | 459,681 | ||||||||
Related party, net | — | 747 | 236 | 3,611 | ||||||||||||
Total | 113,066 | 116,545 | 457,433 | 463,292 | ||||||||||||
Cost of products sold, excluding intangible asset amortization | (42,573 | ) | (42,197 | ) | (166,819 | ) | (165,960 | ) | ||||||||
Related party cost of products sold, excluding intangible asset amortization | — | (731 | ) | (231 | ) | (3,386 | ) | |||||||||
Intangible asset amortization | (6,134 | ) | (6,599 | ) | (26,512 | ) | (26,982 | ) | ||||||||
Research and development | (6,893 | ) | (6,993 | ) | (26,162 | ) | (31,147 | ) | ||||||||
Selling, general and administrative | (62,909 | ) | (66,820 | ) | (248,964 | ) | (253,158 | ) | ||||||||
Restructuring and other cost reduction initiatives | 717 | (1,545 | ) | (4,489 | ) | (2,559 | ) | |||||||||
Acquisition, integration, divestiture and related | (10,548 | ) | (4,221 | ) | (15,195 | ) | (26,587 | ) | ||||||||
Operating expenses | (128,340 | ) | (129,106 | ) | (488,372 | ) | (509,779 | ) | ||||||||
Operating Loss | (15,274 | ) | (12,562 | ) | (30,939 | ) | (46,487 | ) | ||||||||
Other income, net | 1,515 | 2,631 | 326 | 2,857 | ||||||||||||
Interest expense, net | (4,976 | ) | (3,599 | ) | (20,234 | ) | (10,870 | ) | ||||||||
Loss from continuing operations before income taxes | (18,735 | ) | (13,530 | ) | (50,847 | ) | (54,500 | ) | ||||||||
(Provision) benefit for income taxes from continuing operations | (3,428 | ) | (1,822 | ) | (5,202 | ) | 7,596 | |||||||||
Net Loss from Continuing Operations of | (22,163 | ) | (15,352 | ) | (56,049 | ) | (46,904 | ) | ||||||||
Loss from discontinued operations, net of tax | (312,689 | ) | (14,992 | ) | (337,233 | ) | (16,977 | ) | ||||||||
Net Loss of | $ | (334,852 | ) | $ | (30,344 | ) | $ | (393,282 | ) | $ | (63,881 | ) | ||||
Basic Loss Per Common Share: | ||||||||||||||||
Continuing operations | $ | (0.83 | ) | $ | (0.59 | ) | $ | (2.12 | ) | $ | (1.80 | ) | ||||
Discontinued operations | (11.76 | ) | (0.57 | ) | (12.75 | ) | (0.65 | ) | ||||||||
Net Loss | $ | (12.59 | ) | $ | (1.16 | ) | $ | (14.87 | ) | $ | (2.45 | ) | ||||
Diluted Loss Per Common Share: | ||||||||||||||||
Continuing operations | $ | (0.83 | ) | $ | (0.59 | ) | $ | (2.12 | ) | $ | (1.80 | ) | ||||
Discontinued operations | (11.76 | ) | (0.57 | ) | (12.75 | ) | (0.65 | ) | ||||||||
Net Loss | $ | (12.59 | ) | $ | (1.16 | ) | $ | (14.87 | ) | $ | (2.45 | ) |
CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands, except per share data) | |||||||
As of | |||||||
2023 | 2022 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 71,511 | $ | 68,275 | |||
Accounts receivable, less allowance for credit losses | 65,168 | 67,031 | |||||
Related party receivable | — | 3,154 | |||||
Inventories | 79,600 | 77,425 | |||||
Prepaid expenses and other current assets | 23,825 | 28,340 | |||||
Current assets of discontinued operations | 242,773 | 293,638 | |||||
Total Current Assets | 482,877 | 537,863 | |||||
Property, plant and equipment, net | 54,167 | 58,500 | |||||
262,111 | 259,999 | ||||||
Intangible assets, net | 114,354 | 138,685 | |||||
Other assets | 26,747 | 17,377 | |||||
Noncurrent assets of discontinued operations | 265,089 | 629,632 | |||||
Total Assets | $ | 1,205,345 | $ | 1,642,056 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 27,785 | $ | 26,498 | |||
Related party payable | — | 2,632 | |||||
Income taxes payable | 2,863 | 13,769 | |||||
Other current liabilities | 67,108 | 78,879 | |||||
Current liabilities of discontinued operations | 75,858 | 95,531 | |||||
Total Current Liabilities | 173,614 | 217,309 | |||||
Deferred income taxes | 265 | 2,152 | |||||
Lease liability | 9,080 | 9,960 | |||||
Other long-term liabilities | 9,055 | 8,925 | |||||
Non-current portion of debt | 508,797 | 532,233 | |||||
Noncurrent liabilities of discontinued operations | 95,041 | 112,873 | |||||
Total Liabilities | 795,852 | 883,452 | |||||
Commitments and Contingencies (Note 16) | |||||||
Stockholders' Equity: | |||||||
Common stock, | 271 | 262 | |||||
Preferred stock, | — | — | |||||
Additional paid in capital | 922,996 | 897,028 | |||||
Accumulated deficit | (440,814 | ) | (47,532 | ) | |||
Accumulated other comprehensive loss | (72,960 | ) | (91,154 | ) | |||
Total Stockholders' Equity | 409,493 | 758,604 | |||||
Total Liabilities and Stockholders' Equity | $ | 1,205,345 | $ | 1,642,056 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
For the Years Ended | |||||||
2023 | 2022 | ||||||
Cash flows provided by operating activities: | |||||||
Net loss of | $ | (393,282 | ) | $ | (63,881 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 121,686 | 122,789 | |||||
Share-based compensation | 27,020 | 30,289 | |||||
Deferred income tax provision | (17,088 | ) | (70,422 | ) | |||
Loss on disposal of fixed assets | 2,996 | 3,358 | |||||
Other non-cash items | 3,245 | 1,172 | |||||
Write-down of spine disposal group to fair value (Note 3) | 289,456 | — | |||||
Changes in operating assets and liabilities, net of acquired assets and liabilities: | |||||||
Income taxes | (15,054 | ) | 5,485 | ||||
Accounts receivable | 21,083 | (26,156 | ) | ||||
Related party receivables | 8,483 | (8,483 | ) | ||||
Inventories | 25,446 | 10,210 | |||||
Prepaid expenses and other current assets | 5,340 | (19,951 | ) | ||||
Accounts payable and accrued liabilities | (24,759 | ) | 21,842 | ||||
Related party payable | (13,176 | ) | 13,176 | ||||
Other assets and liabilities | (4,248 | ) | 5,200 | ||||
Net cash provided by operating activities | 37,148 | 24,628 | |||||
Cash flows used in investing activities: | |||||||
Additions to instruments | (5,978 | ) | (10,089 | ) | |||
Additions to other property, plant and equipment | (6,509 | ) | (16,457 | ) | |||
Other investing activities | (2,687 | ) | (2,117 | ) | |||
Net cash used in investing activities | (15,174 | ) | (28,663 | ) | |||
Cash flows (used in) provided by financing activities: | |||||||
Net transactions with Zimmer Biomet | — | 6,920 | |||||
Dividend paid to Zimmer Biomet | — | (540,567 | ) | ||||
Proceeds from debt | 4,760 | 595,000 | |||||
Payments on debt | (29,304 | ) | (58,544 | ) | |||
Debt issuance costs | — | (5,170 | ) | ||||
Payments related to tax withholding for share-based compensation | (3,402 | ) | — | ||||
Proceeds from stock option activity | 2,280 | 1,059 | |||||
Other financing activities | — | (5 | ) | ||||
Net cash (used in) provided by financing activities | (25,666 | ) | (1,307 | ) | |||
Effect of exchange rates on cash and cash equivalents | 1,859 | (5,456 | ) | ||||
(Decrease) increase in cash and cash equivalents | (1,833 | ) | (10,798 | ) | |||
Cash and cash equivalents, beginning of year | 89,601 | 100,399 | |||||
Cash and cash equivalents, end of period | $ | 87,768 | $ | 89,601 | |||
Presentation includes cash of both continuing and discontinued operations | |||||||
Supplemental cash flow information: | |||||||
Income taxes paid, net | $ | 20,152 | $ | 25,730 | |||
Interest paid | 37,709 | 17,283 | |||||
Derecognition of right-of-use assets | (1,222 | ) | (14,174 | ) | |||
Derecognition of lease liabilities | 1,225 | 15,303 |
Net Sales Continuing Operations and Discontinued Operations ($ in thousands)
For the Three Months Ended | ||||||||||||||||||||||
2023 | 2022 | Change (%) | Foreign Exchange Impact | Constant Currency % Change | ||||||||||||||||||
$ | 65,383 | $ | 67,535 | (3.2 | %) | - | (3.2 | %) | ||||||||||||||
International | 47,683 | 48,263 | (1.2 | %) | 2.9 | % | (4.1 | %) | ||||||||||||||
Total Dental Third Party Sales (Continuing Operations of | 113,066 | 115,798 | (2.4 | %) | 1.2 | % | (3.6 | %) | ||||||||||||||
Related Party | — | 747 | (100.0 | %) | - | - | ||||||||||||||||
Total Dental | 113,066 | 116,545 | (3.0 | %) | 1.2 | % | (4.2 | %) | ||||||||||||||
81,528 | 90,902 | (10.3 | %) | - | (10.3 | %) | ||||||||||||||||
International | 18,927 | 21,465 | (11.8 | %) | 0.1 | % | (11.9 | %) | ||||||||||||||
Total Spine Third Party Sales (Discontinued Operations) | 100,455 | 112,367 | (10.6 | %) | 0.0 | % | (10.6 | %) | ||||||||||||||
Related Party | — | 208 | (100.0 | %) | - | - | ||||||||||||||||
Total Spine | 100,455 | 112,575 | (10.8 | %) | 0.0 | % | (10.8 | %) | ||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||
2023 | 2022 | Change (%) | Foreign Exchange Impact | Constant Currency % Change | ||||||||||||||||||
$ | 269,557 | $ | 272,726 | (1.2 | %) | - | (1.2 | %) | ||||||||||||||
International | 187,640 | 186,955 | 0.4 | % | 0.1 | % | 0.3 | % | ||||||||||||||
Total Dental Third Party Sales (Continuing Operations of | 457,197 | 459,681 | (0.5 | %) | 0.0 | % | (0.6 | %) | ||||||||||||||
Related Party | 236 | 3,611 | (93.5 | %) | - | - | ||||||||||||||||
Total Dental | 457,433 | 463,292 | (1.3 | %) | 0.1 | % | (1.4 | %) | ||||||||||||||
327,343 | 357,416 | (8.4 | %) | - | (8.4 | %) | ||||||||||||||||
International | 81,838 | 92,390 | (11.4 | %) | 0.6 | % | (12.0 | %) | ||||||||||||||
Total Spine Third Party Sales (Discontinued Operations) | 409,181 | 449,806 | (9.0 | %) | 0.1 | % | (9.2 | %) | ||||||||||||||
Related Party | 103 | 764 | (86.5 | %) | - | - | ||||||||||||||||
Total Spine | 409,284 | 450,570 | (9.2 | %) | 0.2 | % | (9.4 | %) |
Continuing Operations Q4 FY23 (in thousands, except per share data)
For the Three Months Ended | |||||||||||||||||||
Cost of products sold, excluding intangible asset amortization | Operating expenses, excluding cost of products sold | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | |||||||||||||||
Continuing Operations of | $ | 113,066 | $ | (42,573 | ) | $ | (85,767 | ) | $ | (15,274 | ) | $ | (22,163 | ) | $ | (0.83 | ) | ||
Restructuring and other cost reduction initiatives[1] | - | - | (717 | ) | (717 | ) | (717 | ) | (0.03 | ) | |||||||||
Acquisition, integration, divestiture and related[2] | - | - | 10,548 | 10,548 | 10,548 | 0.41 | |||||||||||||
European medical device regulation[3] | - | - | 347 | 347 | 347 | 0.01 | |||||||||||||
Related party | - | - | - | - | - | - | |||||||||||||
Other charges[4] | - | 278 | 286 | 564 | 564 | 0.02 | |||||||||||||
Intangible asset amortization | - | - | 6,134 | 6,134 | 6,134 | 0.23 | |||||||||||||
Spin-related share-based compensation expense[5] | - | - | 5,335 | 5,335 | 5,335 | 0.20 | |||||||||||||
Tax effect of above adjustments & other[6] | - | - | - | - | 2,524 | 0.09 | |||||||||||||
Adjusted | $ | 113,066 | $ | (42,295 | ) | $ | (63,834 | ) | $ | 6,937 | $ | 2,572 | $ | 0.10 |
[1] In
[2] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses increased by
[3] Expenses incurred for initial compliance with the
[4] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
[5] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet, including the impact of accelerating the vesting of these awards in Q4 2023.
[6] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
Continuing Operations Q4 FY22 (in thousands, except per share data)
For the Three Months Ended | |||||||||||||||||||
Cost of products sold, excluding intangible asset amortization | Operating expenses, excluding cost of products sold | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | |||||||||||||||
Continuing Operations of | $ | 116,545 | $ | (42,928 | ) | $ | (86,178 | ) | $ | (12,561 | ) | $ | (15,352 | ) | $ | (0.59 | ) | ||
Restructuring and other cost reduction initiatives[1] | - | - | 1,545 | 1,545 | 1,545 | 0.06 | |||||||||||||
Acquisition, integration, divestiture and related[2] | - | - | 4,221 | 4,221 | 4,221 | 0.16 | |||||||||||||
European union medical device regulation[3] | - | - | 1,005 | 1,005 | 1,005 | 0.04 | |||||||||||||
Intangible asset amortization | - | - | 6,599 | 6,599 | 6,599 | 0.25 | |||||||||||||
Related party | (747 | ) | 731 | - | (16 | ) | (16 | ) | - | ||||||||||
Spin-related share-based compensation expense[4] | - | - | 856 | 856 | 856 | 0.03 | |||||||||||||
Other charges[5] | - | 1,875 | - | 1,875 | 1,875 | 0.07 | |||||||||||||
Tax effect of above adjustments & other[6] | - | - | - | - | 1,158 | 0.05 | |||||||||||||
Adjusted | $ | 115,798 | $ | (40,322 | ) | $ | (71,952 | ) | $ | 3,524 | $ | 1,891 | $ | 0.07 |
[1] In
[2] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses decreased by
[3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[4] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet.
[5] Expenses captured through allocations made for purposes of the GAAP carve-out financial statement results.
[6] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
Continuing Operations FY23 (in thousands, except per share data)
For the Twelve Months Ended | |||||||||||||||||||
Cost of products sold, excluding intangible asset amortization | Operating expenses, excluding cost of products sold | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | |||||||||||||||
Continuing Operations of | $ | 457,433 | $ | (167,050 | ) | $ | (321,322 | ) | $ | (30,939 | ) | $ | (56,049 | ) | $ | (2.12 | ) | ||
Restructuring and other cost reduction initiatives[1] | - | - | 4,489 | 4,489 | 4,489 | 0.17 | |||||||||||||
Acquisition, integration, divestiture and related[2] | - | - | 15,195 | 15,195 | 15,195 | 0.57 | |||||||||||||
European medical device regulation[3] | - | - | 2,574 | 2,574 | 2,574 | 0.10 | |||||||||||||
Related party | (236 | ) | 231 | - | (5 | ) | (5 | ) | - | ||||||||||
Other charges[4] | - | 1,143 | 1,145 | 2,288 | 2,288 | 0.09 | |||||||||||||
Intangible asset amortization | - | - | 26,512 | 26,512 | 26,512 | 1.00 | |||||||||||||
Spin-related share-based compensation expense[5] | - | - | 7,679 | 7,679 | 7,679 | 0.29 | |||||||||||||
Tax effect of above adjustments & other[6] | - | - | - | - | 3,152 | 0.12 | |||||||||||||
Adjusted | $ | 457,197 | $ | (165,676 | ) | $ | (263,728 | ) | $ | 27,793 | $ | 5,835 | $ | 0.22 |
[1] In
[2] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses decreased by
[3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[4] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
[5] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet, including the impact of accelerating the vesting of these awards in Q4 2023.
[6] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
Continuing Operations FY22 (in thousands, except per share data)
For the Twelve Months Ended | |||||||||||||||||||
Cost of products sold, excluding intangible asset amortization | Operating expenses, excluding cost of products sold | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | |||||||||||||||
Continuing Operations of | $ | 463,292 | $ | (169,346 | ) | $ | (340,433 | ) | $ | (46,487 | ) | $ | (46,904 | ) | $ | (1.80 | ) | ||
Pre vs. post-spin Cost Structure Differences[1] | - | - | 5,271 | 5,271 | 5,271 | 0.20 | |||||||||||||
Restructuring and other cost reduction initiatives[2] | - | - | 2,559 | 2,559 | 2,559 | 0.10 | |||||||||||||
Acquisition, integration, divestiture and related[3] | - | - | 26,587 | 26,587 | 26,587 | 1.02 | |||||||||||||
European union medical device regulation[4] | - | - | 3,146 | 3,146 | 3,146 | 0.12 | |||||||||||||
Intangible asset amortization | - | - | 26,982 | 26,982 | 26,982 | 1.03 | |||||||||||||
Related party | (3,611 | ) | 3,386 | - | (225 | ) | (225 | ) | (0.01 | ) | |||||||||
Spin-related share-based compensation expense[5] | - | 1,331 | 10,386 | 11,717 | 11,717 | 0.45 | |||||||||||||
Tax effect of above adjustments & other[6] | - | - | - | - | (13,196 | ) | (0.50 | ) | |||||||||||
Adjusted | $ | 459,681 | $ | (164,629 | ) | $ | (265,502 | ) | $ | 29,550 | $ | 15,937 | $ | 0.61 |
[1] Reflects certain items captured in the GAAP carve-out financial statements that have not continued post-spin, including, but not limited to, facilities that did not convey with
[2] In
[3] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses increased by
[4] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[5] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet.
[6] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
Reconciliation of Adjusted EBITDA ($ in thousands) – Continuing Operations
RECONCILIATION OF ADJUSTED EBITDA ($ in thousands) | |||||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||||
Continuing Operations of | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Total Third Party Sales | $ | 113,066 | $ | 115,798 | $ | 457,197 | $ | 459,681 | |||||||||
Related Party Sales | - | 747 | 236 | 3,611 | |||||||||||||
Total | $ | 113,066 | $ | 116,545 | $ | 457,433 | $ | 463,292 | |||||||||
Net Loss | $ | (22,163 | ) | $ | (15,352 | ) | $ | (56,049 | ) | $ | (46,904 | ) | |||||
Interest expense, net | 4,976 | 3,599 | 20,234 | 10,870 | |||||||||||||
Income tax benefit | 3,428 | 1,822 | 5,202 | (7,596 | ) | ||||||||||||
Depreciation and amortization | 7,908 | 9,017 | 34,507 | 37,198 | |||||||||||||
EBITDA | (5,851 | ) | (914 | ) | 3,894 | (6,432 | ) | ||||||||||
Share-based compensation | 9,316 | 4,660 | 23,476 | 25,821 | |||||||||||||
Restructuring and other cost reduction initiatives[1] | (717 | ) | 1,545 | 4,489 | 2,559 | ||||||||||||
Acquisition, integration, divestiture and related[2] | 10,548 | 4,221 | 15,195 | 26,587 | |||||||||||||
Related party (loss) income | - | (16 | ) | (5 | ) | (225 | ) | ||||||||||
European medical device regulation[3] | 347 | 1,005 | 2,574 | 3,146 | |||||||||||||
Pre vs. post-spin cost structure differences[4] | - | - | - | 5,271 | |||||||||||||
Other charges[5] | 278 | 1,875 | 1,143 | 336 | |||||||||||||
Adjusted EBITDA | $ | 13,921 | $ | 12,376 | $ | 50,766 | $ | 57,063 | |||||||||
Net Loss Margin[6] | -19.6 | % | -13.3 | % | -12.3 | % | -10.2 | % | |||||||||
Adjusted EBITDA Margin[7] | 12.3 | % | 10.7 | % | 11.1 | % | 12.4 | % |
[1] In
[2] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses increased by
[3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[4] Reflects certain items captured in the GAAP carve-out financial statements that have not continued post-spin, including, but not limited to, facilities that did not convey with
[5] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
[6] Net Loss Margin is calculated as Net Loss divided by third party net sales for the applicable period.
[7] Adjusted EBITDA Margin is Adjusted EBITDA divided by third party net sales for the applicable period.
Discontinued Operations Q4 FY23 (in thousands, except per share data)
For the Three Months Ended | |||||||||||||||||||||||||
Cost of products sold, excluding intangible asset amortization | Operating expenses, excluding cost of products sold | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | |||||||||||||||||||||
Discontinued Operations | $ | 100,455 | $ | (27,648 | ) | $ | (369,052 | ) | $ | (296,245 | ) | $ | (312,689 | ) | $ | (11.76 | ) | ||||||||
Restructuring and other cost reduction initiatives[1] | - | - | 2,423 | 2,423 | 2,423 | 0.09 | |||||||||||||||||||
Acquisition, integration, divestiture and related[2] | - | - | (203 | ) | (203 | ) | (203 | ) | (0.01 | ) | |||||||||||||||
European medical device regulation[3] | - | - | 778 | 778 | 778 | 0.03 | |||||||||||||||||||
Other charges[4] | - | 251 | 801 | 1,052 | 1,052 | 0.04 | |||||||||||||||||||
Intangible asset amortization | - | - | 11,431 | 11,431 | 11,431 | 0.43 | |||||||||||||||||||
Spin-related share-based compensation expense[5] | - | - | 1,014 | 1,014 | 1,014 | 0.04 | |||||||||||||||||||
Tax effect of above adjustments & other[6] | - | - | - | - | 9,648 | 0.36 | |||||||||||||||||||
Write-down of spine disposal group to fair value[7] | - | - | 289,456 | 289,456 | 289,456 | 10.89 | |||||||||||||||||||
Adjusted | $ | 100,455 | $ | (27,397 | ) | $ | (63,352 | ) | $ | 9,706 | $ | 2,910 | $ | 0.11 |
[1] In
[2] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses in 4Q 2023 were comparable to 4Q 2022.
[3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[4] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
[5] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet, including the impact of accelerating the vesting of these awards in Q4 2023.
[6] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
[7] We performed an impairment analysis of the spine segment in
Discontinued Operations Q4 FY22 (in thousands, except per share data)
For the Three Months Ended | |||||||||||||||||||
Cost of products sold, excluding intangible asset amortization | Operating expenses, excluding cost of products sold | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | |||||||||||||||
Discontinued Operations | $ | 112,575 | $ | (31,349 | ) | $ | (93,076 | ) | $ | (11,850 | ) | $ | (14,992 | ) | $ | (0.57 | ) | ||
Restructuring and other cost reduction initiatives[1] | - | - | 3,323 | 3,323 | 3,323 | 0.13 | |||||||||||||
Acquisition, integration, divestiture and related[2] | - | - | (239 | ) | (239 | ) | (239 | ) | (0.01 | ) | |||||||||
European medical device regulation[3] | - | - | 2,506 | 2,506 | 2,506 | 0.10 | |||||||||||||
Intangible asset amortization | - | - | 14,089 | 14,089 | 14,089 | 0.54 | |||||||||||||
Related party | (208 | ) | 198 | - | (10 | ) | (10 | ) | - | ||||||||||
Spin-related share-based compensation expense[4] | - | - | 214 | 214 | 214 | 0.01 | |||||||||||||
Tax effect of above adjustments & other[5] | - | - | - | - | (2,445 | ) | (0.10 | ) | |||||||||||
Adjusted | $ | 112,367 | $ | (31,151 | ) | $ | (73,183 | ) | $ | 8,033 | $ | 2,446 | $ | 0.10 |
[1] In
[2] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses decreased by
[3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[4] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet.
[5] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
Discontinued Operations FY23 (in thousands, except per share data)
For the Twelve Months Ended | |||||||||||||||||||||||||
Cost of products sold, excluding intangible asset amortization | Operating expenses, excluding cost of products sold | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | |||||||||||||||||||||
Discontinued Operations | $ | 409,284 | $ | (113,964 | ) | $ | (630,024 | ) | $ | (334,704 | ) | $ | (337,232 | ) | $ | (12.75 | ) | ||||||||
Restructuring and other cost reduction initiatives[1] | - | - | 13,068 | 13,068 | 13,068 | 0.49 | |||||||||||||||||||
Acquisition, integration, divestiture and related[2] | - | - | 175 | 175 | 175 | 0.01 | |||||||||||||||||||
European medical device regulation[3] | - | - | 4,259 | 4,259 | 4,259 | 0.16 | |||||||||||||||||||
Related party | (103 | ) | 97 | - | (6 | ) | (6 | ) | - | ||||||||||||||||
Other charges[4] | - | 2,768 | 4,554 | 7,322 | 7,322 | 0.28 | |||||||||||||||||||
Intangible asset amortization | - | - | 52,840 | 52,840 | 52,840 | 2.00 | |||||||||||||||||||
Spin-related share-based compensation expense[5] | - | - | 1,600 | 1,600 | 1,600 | 0.06 | |||||||||||||||||||
Tax effect of above adjustments & other[6] | - | - | - | - | (18,804 | ) | (0.71 | ) | |||||||||||||||||
Write-down of spine disposal group to fair value[7] | - | - | 289,456 | 289,456 | 289,456 | 10.94 | |||||||||||||||||||
Adjusted | $ | 409,181 | $ | (111,099 | ) | $ | (264,072 | ) | $ | 34,010 | $ | 12,677 | $ | 0.48 |
[1] In
[2] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses decreased by
[3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[4] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
[5] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet, including the impact of accelerating the vesting of these awards in Q4 2023.
[6] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
[7] We performed an impairment analysis of the spine segment in
Discontinuing Operations FY22 (in thousands, except per share data)
For the Twelve Months Ended | |||||||||||||||||||
Cost of products sold, excluding intangible asset amortization | Operating expenses, excluding cost of products sold | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | |||||||||||||||
Discontinued Operations | $ | 450,570 | $ | (131,440 | ) | $ | (367,886 | ) | $ | (48,756 | ) | $ | (16,977 | ) | $ | (0.65 | ) | ||
Pre vs. post-spin Cost Structure Differences[1] | - | (164 | ) | 4,890 | 4,726 | 4,726 | 0.18 | ||||||||||||
Restructuring and other cost reduction initiatives[2] | - | - | 8,795 | 8,795 | 8,795 | 0.34 | |||||||||||||
Acquisition, integration, divestiture and related[3] | - | - | 2,850 | 2,850 | 2,850 | 0.11 | |||||||||||||
European medical device regulation[4] | - | - | 6,917 | 6,917 | 6,917 | 0.27 | |||||||||||||
Intangible asset amortization | - | - | 53,885 | 53,885 | 53,885 | 2.07 | |||||||||||||
Related party | (764 | ) | 721 | - | (43 | ) | (43 | ) | - | ||||||||||
Spin-related share-based compensation expense[5] | - | 333 | 2,596 | 2,929 | 2,929 | 0.11 | |||||||||||||
Tax effect of above adjustments & other[6] | - | - | - | - | (25,443 | ) | (0.99 | ) | |||||||||||
Favorable Puerto Rico Tax Filing[7] | - | - | - | - | (5,712 | ) | (0.22 | ) | |||||||||||
Adjusted | $ | 449,806 | $ | (130,550 | ) | $ | (287,953 | ) | $ | 31,303 | $ | 31,927 | $ | 1.22 |
[1] Reflects certain items captured in the GAAP carve-out financial statements that have not continued post-spin, including, but not limited to, facilities that did not convey with
[2] In
[3] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses decreased by
[4] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[5] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet.
[6] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
[7] Tax benefit in Q3 2022 from a favorable
Reconciliation of Adjusted EBITDA ($ in thousands) – Discontinued Operations
RECONCILIATION OF ADJUSTED EBITDA ($ in thousands) | |||||||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||||||
Discontinued Operations | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Total Third-Party Sales | $ | 100,455 | $ | 112,367 | $ | 409,181 | $ | 449,806 | |||||||||||
Related Party Sales | - | 208 | 103 | 764 | |||||||||||||||
Total | $ | 100,455 | $ | 112,575 | $ | 409,284 | $ | 450,570 | |||||||||||
Net Loss | $ | (312,689 | ) | $ | (14,992 | ) | $ | (337,233 | ) | $ | (16,977 | ) | |||||||
Interest expense, net | 4,500 | 2,833 | 16,422 | 7,409 | |||||||||||||||
Income tax benefit | 10,670 | 305 | (14,350 | ) | (38,442 | ) | |||||||||||||
Depreciation and amortization | 18,690 | 21,303 | 87,179 | 85,591 | |||||||||||||||
EBITDA | (278,829 | ) | 9,449 | (247,982 | ) | 37,581 | |||||||||||||
Share-based compensation | 1,575 | 649 | 3,544 | 4,468 | |||||||||||||||
Write-down of spine disposal group to fair value[1] | 289,456 | 0 | 289,456 | 0 | |||||||||||||||
Restructuring and other cost reduction initiatives[2] | 2,423 | 3,323 | 13,068 | 8,795 | |||||||||||||||
Acquisition, integration, divestiture and related[3] | (203 | ) | (239 | ) | 175 | 2,850 | |||||||||||||
Related party (loss) income | - | (10 | ) | (6 | ) | (43 | ) | ||||||||||||
European medical device regulation[4] | 778 | 2,506 | 4,259 | 6,917 | |||||||||||||||
Other charges[5] | 311 | 0 | 3,108 | 4,912 | |||||||||||||||
Adjusted EBITDA | $ | 15,511 | $ | 15,678 | $ | 65,622 | $ | 65,480 | |||||||||||
Net Loss Margin[6] | -311.3 | % | -13.3 | % | -82.4 | % | -3.8 | % | |||||||||||
Adjusted EBITDA Margin[7] | 15.4 | % | 14.0 | % | 16.0 | % | 14.6 | % |
[1] We performed an impairment analysis of the spine segment in
[2] In
[3] Acquisition, integration, divestiture, and related expenses include costs incurred to prepare for and complete the separation from our former parent (such as professional fees, transition services agreements, costs to stand up our corporate organization and infrastructure), changes in the fair value of contingent consideration for acquisitions closed prior to the separation date and costs related to the evaluation of strategic options for our portfolio. Acquisition, integration, divestiture and related expenses in 4Q 2023 were comparable to 4Q 2022. Acquisition, integration, divestiture and related expenses decreased by
[4] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[5] The 2023 amounts represent inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions. The 2022 amounts represent expenses captured through allocations made for purposes of the GAAP carve-out financial statement results.
[6] Net Loss Margin is calculated as Net Loss divided by third party net sales for the applicable period.
[7] Adjusted EBITDA Margin is Adjusted EBITDA divided by third party net sales for the applicable period.
Reconciliation of Cost of Products Sold, excluding intangible asset amortization, R&D, and SG&A ($ in thousands)
Continuing Operations | Percentage of Third Party | Discontinued Operations | Percentage of Third Party | |||||||||||||||||||
For the Three Months Ended | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Cost of products sold, excluding intangible asset amortization | $ | (42,573 | ) | $ | (42,197 | ) | (37.7 | %) | (36.4 | %) | $ | (27,648 | ) | $ | (31,151 | ) | (27.5 | %) | (27.7 | %) | ||
Other charges[1] | 278 | 1,875 | 0.2 | % | 1.6 | % | 251 | — | 0.2 | % | 0.0 | % | ||||||||||
Spin-related share-based compensation expense[2] | — | — | 0.0 | % | 0.0 | % | — | — | 0.0 | % | 0.0 | % | ||||||||||
Adjusted cost of products sold, excluding intangible asset amortization | $ | (42,295 | ) | $ | (40,322 | ) | (37.5 | %) | (34.8 | %) | $ | (27,397 | ) | $ | (31,151 | ) | (27.3 | %) | (27.7 | %) | ||
Continuing Operations | Percentage of Third Party | Discontinued Operations | Percentage of Third Party | |||||||||||||||||||
For the Twelve Months Ended | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Cost of products sold, excluding intangible asset amortization | $ | (166,819 | ) | $ | (165,960 | ) | (36.5 | %) | (36.1 | %) | $ | (113,867 | ) | $ | (130,719 | ) | (27.9 | %) | (29.1 | %) | ||
Other charges[1] | 1,143 | — | 0.3 | % | 0.0 | % | 2,768 | (164 | ) | 0.6 | % | (0 | %) | |||||||||
Spin-related share-based compensation expense[2] | — | 1,331 | 0.0 | % | 0.3 | % | — | 333 | 0.1 | % | 0.1 | % | ||||||||||
Adjusted cost of products sold, excluding intangible asset amortization | $ | (165,676 | ) | $ | (164,629 | ) | (36.2 | %) | (35.8 | %) | $ | (111,099 | ) | $ | (130,550 | ) | (27.2 | %) | (29.0 | %) | ||
Continuing Operations | Percentage of Third Party | Discontinued Operations | Percentage of Third Party | |||||||||||||||||||
For the Three Months Ended | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Research and development | $ | (6,893 | ) | $ | (6,993 | ) | (6.1 | %) | (6.0 | %) | $ | (5,767 | ) | $ | (8,261 | ) | (5.7 | %) | (7.4 | %) | ||
European medical device regulation[3] | 347 | 1,005 | 0.3 | % | 0.9 | % | 778 | 2,506 | 0.8 | % | 2.2 | % | ||||||||||
Spin-related share-based compensation expense[2] | 80 | 80 | 0.1 | % | 0.1 | % | 120 | 20 | 0.1 | % | 0.0 | % | ||||||||||
Adjusted research and development | $ | (6,466 | ) | $ | (5,908 | ) | (5.7 | %) | (5.1 | %) | $ | (4,869 | ) | $ | (5,735 | ) | (4.8 | %) | (5.1 | %) |
Continuing Operations | Percentage of Third Party | Discontinued Operations | Percentage of Third Party | |||||||||||||||||||
For the Three Months Ended | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Selling, general and administrative | $ | (62,909 | ) | $ | (66,820 | ) | (55.6 | %) | (57.7 | %) | $ | (60,179 | ) | $ | (67,642 | ) | (59.9 | %) | (60.2 | %) | ||
Other charges[1] | 286 | — | 0.3 | % | 0.0 | % | 801 | — | 0.8 | % | 0.0 | % | ||||||||||
Spin-related share-based compensation expense[2] | 5,255 | 776 | 4.6 | % | 0.7 | % | 894 | 194 | 0.9 | % | 0.2 | % | ||||||||||
Adjusted selling, general and administrative | $ | (57,368 | ) | $ | (66,044 | ) | (50.7 | %) | (57.0 | %) | $ | (58,483 | ) | $ | (67,448 | ) | (58.2 | %) | (60.0 | %) |
Continuing Operations | Percentage of Third Party | Discontinued Operations | Percentage of Third Party | |||||||||||||||||||
For the Twelve Months Ended | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Selling, general and administrative | $ | (248,964 | ) | $ | (253,158 | ) | (54.5 | %) | (55.1 | %) | $ | (247,926 | ) | $ | (270,812 | ) | (60.6 | %) | (60.2 | %) | ||
Pre vs. post-spin cost structure differences[4] | — | 5,271 | 0.0 | % | 1.1 | % | — | — | 0.0 | % | 0.0 | % | ||||||||||
Other charges[1] | 1,145 | — | 0.3 | % | 0.0 | % | 4,554 | 4,890 | 1.1 | % | 1.1 | % | ||||||||||
Spin-related share-based compensation expense[2] | 7,359 | 8,630 | 1.6 | % | 1.9 | % | 1,420 | 2,157 | 0.3 | % | 0.5 | % | ||||||||||
Adjusted selling, general and administrative | $ | (240,460 | ) | $ | (239,257 | ) | (52.6 | %) | (52.0 | %) | $ | (241,952 | ) | $ | (263,765 | ) | (59.1 | %) | (58.6 | %) |
[1] The 2023 amounts represent inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions. The 2022 amounts represent expenses captured through allocations made for purposes of the GAAP carve-out financial statement results.
[2] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet, including the impact of accelerating the vesting of these awards in Q4 2023.
[3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
[4] Reflects certain items captured in the GAAP carve-out financial statements that have not continued post-spin, including, but not limited to, facilities that did not convey with
Source:
2024 GlobeNewswire, Inc., source