Orthofix Medical Inc. · NASDAQ:OFIX

Orthofix Medical — Q4 2023 Earnings Presentation

15 slides from Orthofix Medical's earnings presentation, Mar 5, 2024

  1. Slide 1: Supplemental Financials 4Q23 and FY23 Earnings

    Supplemental Financials 4Q23 and FY23 Earnings March 5, 2024 ©2024 Orthofix Medical Inc. All rights reserved | 1

  2. 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

  3. Slide 3: Q4 and Full Year 2023 Results Summary

    Q4 and Full Year 2023 Results Summary Fourth Quarter 2023 Results Summary (in millions) Q4 Total Net Sales: $200M; 6.9% y/y growth Pro Forma Constant FY Total Net Sales: $747M; 6.2% y/y growth Q4 2023 Currency Change Bone Growth Therapies $ 58.7 15.1% Spinal Implants, Biologics, and Enabling Technol

  4. Slide 4: Q4 2023 Key Messages

    Q4 2023 Key Messages Strong fundamentals with compelling growth opportunity and value proposition across diverse portfolio Merger thesis remains intact Capitalizing on market disruption through expansion of distributor network Solid operational execution with sequential gains in Adjusted EBITDA and

  5. Slide 5: Fourth Quarter and Full Year Revenues

    Fourth Quarter and Full Year Revenues Diversified and complementary portfolio platform with broad clinical reach Q4 FY23 Total Revenues Total Revenues $200.3M $746.6M +6.9%* +6.2%* Global Orthopedics Global Orthopedics $30.6M; +2.7%* $115.3M; +5.2%* Bone Growth Therapies Bone Growth Therapies $58.8M

  6. Slide 6: Complementary High Growth Portfolio

    Complementary High Growth Portfolio $7B of Focused High-Growth Market Segments* | 6.1% CAGR Spinal Implants Orthopedics Motion Preservation Limb Reconstruction Spinal Fixation Deformity Correction Synergistic Product Platform Biologics Bone Growth Therapies Cellular Allograft Bone Growth Stimulation

  7. Slide 7: 2024 Full Year Guidance: $785–795M Revenue, $62–67M Adjusted EBITDA

    2024 $785 – 795M Revenue Full Year Guidance* $62 – 67M Adjusted EBITDA Cash Flow Positive Exiting Q4 2024 Revenue ranges above represent 5% to 7% year-over-year growth Guidance information is as of March 5, 2024, based on guidance provided by Orthofix leadership on that date. Inclusion of this infor

  8. Slide 8: 2024 Key Priorities

    2024 Key Priorities Synergistic Product Profitable Growth Innovation Platform • Sustainable differentiated growth engine • Leverage technologies and sales channels • Continued innovation as a growth driver • Adjusted EBITDA improvements across all product segments • Allocation of resources to high v

  9. Slide 9: Condensed Consolidated Balance Sheets

    Condensed Consolidated Balance Sheets (U.S. Dollars, in thousands, except par value data) December 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents $ 33,107 $ 50,700 Restricted cash 4,650 — Accounts receivable, net of allowances of $7,130 and $6,419, respectively 128,098 82

  10. Slide 10: 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) 2023 2022 2023 2022 (Unaudited) Net sales $ 200,415 $ 122,229 $ 746,641 $ 460,713 Cost of sales 63,785 33,053 260,368 123,544 Gross pr

  11. Slide 11: Net Sales by Major Product Category (as reported)

    Net Sales by Major Product Category (as reported) Three Months Ended December 31, Constant Currency (Unaudited, U.S. Dollars, in millions) 2023 2022 Change Change Bone Growth Therapies $ 58.8 $ 51.0 15.3% 15.3% Spinal Implants, Biologics, and Enabling Technologies 111.0 42.5 161.2% 160.7% Global Spi

  12. Slide 12: Net Sales by Major Product Category (pro forma)

    Net Sales by Major Product Category (pro forma) Three Months Ended December 31, Constant Currency (Unaudited, U.S. Dollars, in millions) 2023 2022 Pro Forma Change Change Bone Growth Therapies $ 58.8 $ 51.0 15.3% 15.3% U.S. Spinal Implants, Biologics and Enabling Technologies 100.6 96.4 4.4% 4.4% In

  13. Slide 13: Proforma Non-GAAP Financial Measures

    Proforma Non-GAAP Financial Measures On the Company’s Q4 2023 earnings call held on March 5, 2024, Orthofix management presented Proforma Adjusted EBITDA and Adjusted Proforma Gross Margin, both of which are non- GAAP financial measures, for the 4th quarter of 2022. Those proforma non-GAAP financial

  14. Slide 14: Historical 2022 Quarterly Proforma Adjusted EBITDA

    Historical 2022 Quarterly Proforma Adjusted EBITDA Proforma Historical Adjusted EBITDA Q1 22 Q2 22 Q3 22 Q4 22 FY 2022 ($ in millions) OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo Loss before income taxes $ (4.389) $ (16.832) $ (21.221) $ 3.042 $ (15.094) $ (12.052

  15. Slide 15: Historical 2022 Quarterly Proforma Adjusted Gross Margin

    Historical 2022 Quarterly Proforma Adjusted Gross Margin Proforma Historical Adjusted Gross Margin Q1 22 Q2 22 Q3 22 Q4 22 FY 2022 ($ in millions) OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo Total revenue, net $ 106.418 $ 51.263 $ 157.681 $ 118.070 $ 56.942 $ 175.

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