Orthofix Medical Inc. · NASDAQ:OFIX
Orthofix Medical — Q4 2024 Earnings Presentation
33 slides from Orthofix Medical's earnings presentation, Feb 25, 2025
Slide 1: Clear Course for Profitable Growth
Clear Course for Profitable Growth 4Q and Full-Year 2024 Earnings Call February 25, 2025
Slide 2: Forward-Looking Statements
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 cur
Slide 3: Non-GAAP Financial Measures
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 p
Slide 4: Vision and Values
VISION The unrivaled partner in Med Tech, delivering exceptional experiences and life-changing solutions. VALUES TAKE INNOVATE WIN OWNERSHIP BOLDLY TOGETHER 4
Slide 5: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights $215.7M $23.9M $15.2M 12% 9% 21% 71.1% Net Sales Non-GAAP Free Cash Flow2 U.S. Spine Bone Growth U.S. Orthopedics Non-GAAP 8% Growth YoY Adjusted EBITDA2 Significant Fixation3 YoY Net Therapies YoY YoY Net Sales Adjusted as reported $4.3M YoY improvement in Sales Growth
Slide 6: Q4 and Full-Year 2024 Key Messages
Q4 and Full-Year 2024 Key Messages Record Q4 net sales results reflect strong execution across all three major product lines 01 where performance was led by strength in our U.S. markets Solid operational execution – Achieved profitability objectives, including $15.2M in free cash 02 flow for Q4, muc
Slide 7: Q4 2024 Results Summary
Q4 2024 Results Summary Fourth Quarter 2024 Results Summary (in millions) Q4 Total Net Sales: $215.7M; Constant Currency 7.8% YoY constant currency growth Q4 2024 Q4 2023 Change Bone Growth Therapies $ 63.9 $ 58.8 8.6% Spinal Implants, Biologics, and Enabling Technologies 116.0 111.0 4.5% Q4 Non-GAA
Slide 8: Full-Year 2024 Results Summary
Full-Year 2024 Results Summary Full-Year 2024 Results Summary (in millions) FY24 Total Net Sales: $799.5M; Constant Currency 7.1% YoY constant currency growth FY 2024 FY 2023 Change Bone Growth Therapies $ 233.4 $ 212.5 9.8% Spinal Implants, Biologics, and Enabling Technologies 441.9 418.8 5.5% FY24
Slide 9: Q4 2024 Business Segment Highlights
Q4 2024 Business Segment Highlights Bone Growth Therapies Spine Orthopedics BGT net sales grew 9% and U.S. Spine Fixation grew 12%, U.S. Orthopedics delivered BGT Fracture grew 10% more than 2x the market rate record net sales and grew 21% • Successful cross-selling • Healthy double-digit growth acr
Slide 10: Improving Financial Strength and Driving Strong, Positive Free Cash Flow
Improving Financial Strength and Driving Strong, Positive Free Cash Flow Driving Positive Free Cash Flow Free Cash Flow ($M) • Expect to be free cash flow positive for full-year 20251 − Drop-through to EBITDA of incremental revenue − Working Capital improvements $15.2 $5.9 $(0.8) $(29.4) Efficient W
Slide 11: Building on a Strong Foundation – Transformation Focused on Accelerating Excellence
Building on a Strong Foundation – Transformation Focused on Accelerating Excellence RECENT ACCOMPLISHMENTS CONTINUED LEADERSHIP FOCUS AREAS – AND TRANSFORMATIVE ACTIONS MULTIPLE LEVERS FOR PROFITABLE GROWTH • Building on clear competitive Innovation Focus advantages Continued development of differen
Slide 12: Capitalizing on Clear Competitive Advantages
Capitalizing on Clear Competitive Advantages Comprehensive Established World-Class, Portfolio of Distribution Channels Visionary Leadership Transformative and Extensive Global Team with Deep Solutions Commercial Reach Sector Expertise Improved Large Addressable Clinical Efficiencies and Markets with
Slide 13: Addressable Markets ~$15B within Full Continuum of Care
Addressable Markets ~$15B within Full Continuum of Care 2025 – 2027 Total Expected Well-Positioned for Favorable Macro Trends Addressable Market Market Growth Rate Spinal Implants ~$10.1B ~3% – 4% Aging Digital Bone Growth Population Healthcare ~$0.6B ~2% – 3% Therapies Biologics ~$2.1B ~2% – 3% Evo
Slide 14: Spinal Implants
Spinal Implants Executing Innovation and Taking Share • Comprehensive, best-in-class spinal implants designed to work in concert Market Overview with 7D Navigation and biologics to support improved clinical outcomes Thoracolumbar • Focus on deformity correction and experts in cervical fixation and F
Slide 15: Bone Growth Therapies
Bone Growth Therapies Maximizing #1 Market Position • Safe, effective, non-surgical alternative to aid in bone healing of fracture Market Overview management and high-risk spine fusions • Most comprehensive portfolio of bone growth stimulation devices • Most indications on the market to aid in bone
Slide 16: Biologics
Biologics Growing from a Position of Strength • Full spectrum of biologic solutions to enhance fusion process and Market Overview Demineralized Bone promote bone repair and growth • Provide industry leading, best-in-class products in each of the major Matrix bone grafting categories • #2 Position •
Slide 17: Orthopedics
Orthopedics Redefining Limb Reconstruction • Unique portfolio of limb reconstruction solutions, addressing the most Market Overview Extremity Deformity challenging orthopedic conditions in patients of all ages Correction & Limb Restoration Select Product Examples • Significant share capture opportun
Slide 18: Enabling Technologies
Enabling Technologies Empowering Excellence with Real-Time, Integrated Smart Technologies • FLASHTM Navigation with 7D Technology, world’s leading, zero-radiation1 Market Overview spine image-guided surgery system • Allows surgeons to perform fast, cost-effective, and radiation-free surgery • Pacese
Slide 19: Innovation Spotlight – FLASH Navigation with 7D Technology
Innovation Spotlight – FLASHTM Navigation with 7D Technology Revolutionizing Spinal Navigation Created Meaningful Advantages with FLASHTM Navigation with 7D Technology reduction in intraoperative 97.8% radiation during adult degenerative spinal fusions1* First and only image-guided surgery system re
Slide 20: Significant Cross-Portfolio Commercial Opportunities
Significant Cross-Portfolio Commercial Opportunities Bone Growth Therapies (BGT) • Combined portfolio with Biologics to target Trauma surgeons Spine • Combine with select Orthopedics product lines Orthopedics • Maximize procedural • Expanding domestically through legacy • Maximize procedural selling
Slide 21: Looking Forward – Accelerating Our Profitable Growth Engine
Looking Forward – Accelerating Our Profitable Growth Engine Invest in Capitalize on Differentiated Multiple Access Improve Technologies Points to Grow Operate Financial Strength in Areas Where Business at with Discipline for and Drive We Can Win Sustained, Margin Expansion Strong, Positive and Lead
Slide 22: Full-Year 2025 Guidance
Full-Year 2025 Guidance1 $818M – $82M – $826M $86M Net Sales 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 oth
Slide 23: Strategy is Driving Long-Term Profitable Growth – 2027 Financial Goals
Strategy is Driving Long-Term Profitable Growth – Increased Net Sales CAGR in 2027 Financial Goals 2027 **6.5% – 7.5%** Mid-Teens Positive Financial Net Sales CAGR Adj. EBITDA Free Cash Flow Generation1 Targets (2025 – 2027) (Full-year 2027) (2025 – 2027) Growth Differentiated Multiple Margin Strong
Slide 24: Investment Summary – Why Invest in Orthofix?
Investment Summary – Why Invest in Orthofix? Strong fundamentals with profitable growth opportunity and compelling value 01 proposition across diverse portfolio More focused commercial strategy with robust innovation pipeline complemented 02 by successful cross-selling New leadership team well-posit
Slide 25: For additional information, please contact
For additional information, please contact: www.Orthofix.com Julie Dewey, IRC NASDAQ: OFIX Chief IR & Communications Officer juliedewey@orthofix.com 209-613-6945 25
Slide 26: Appendix
Appendix Financial and Non-GAAP Reconciliation Tables
Slide 27: Net Sales by Major Product Category by Reporting Segment
Net Sales by Major Product Category by Reporting Segment Three Months Ended December 31, Constant Currency (Unaudited, U.S. Dollars, in millions) 2024 2023 Change 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 % Glob
Slide 28: Condensed Consolidated Balance Sheets
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 134,71
Slide 29: Condensed Consolidated Statements of Operations
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 pr
Slide 30: Adjusted Gross Profit and Adjusted Gross Margin
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
Slide 31: Adjusted EBITDA
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 a
Slide 32: Adjusted Net Income
Adjusted Net Income Three Months Ended Year Ended December 31, 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 (
Slide 33: Cash Flow and Free Cash Flow
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