Enovis Corporation · NYSE:ENOV
Enovis — Q2 2024 Earnings Presentation
22 slides from Enovis's earnings presentation, Aug 7, 2024
Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 7, 2024
Slide 2: Forward-looking Statements Non-GAAP Financial Information
Forward-looking Statements Non-GAAP Financial Information This presentation includes forward-looking statements, including forward-looking statements Enovis has provided in this presentation financial information that has not been prepared in accordance with within the meaning of the U.S. Private Se
Slide 3: Q2 2024 Highlights
Q2 2024 Highlights • +23% reported growth, +5% on a comparable basis • +7% comparable growth in Recon • +3% comparable growth in P&R • Lima integration going very well • Channel integration largely complete • Executing against identified synergies • Expanded adjusted EBITDA margin by 190 basis point
Slide 4: Q2 Reconstructive Segment Sales Performance
Q2 Reconstructive Segment Sales Performance Reconstructive Q2 Sales • Combined performance tracking in line with plan • +7% recon growth on a comparable basis Growth: +60% Y/Y, +7% Comparable • ~3% negative growth impact from integration headwinds • US comparable growth of 1% • US channel integratio
Slide 5: Lima Integration On Track
Lima Integration On Track • Aligning contracts, territories, product bags and compensation plans Channel • Full consolidation under Legacy ENOV Rep Structure in US, Hybrid OUS Integration • ~100% complete in the US, ~70% OUS • Tracking slightly ahead of original guidance for revenue • Negative Q1 im
Slide 6: US Recon H1 Focus on Integration, H2 Focus on Growth
US Recon H1 Focus on Integration, H2 Focus on Growth US Hip & Knee US Extremities Knee Hip Shoulder Foot & Ankle 10 Year CAGR +17% +14% H1 ‘24 +1% +5% • EMPOWR 3D (7% H1 • Impactor – 4Q24 • Augmented • Arsenal Reloaded growth) • New Hip Stems – Glenoids – 3Q24 recently launched • EMPOWR Revision 1Q2
Slide 7: Q2 Prevention & Recovery Segment Sales Performance
Q2 Prevention & Recovery Segment Sales Performance P&R Q2 Sales • Comparable growth of 3% • Global Bracing growth of LSD Growth: +2% Y/Y, +3% Comparable • Stable market environment • Adjusted EBITDA margin +50bps Y/Y • Continue to leverage EGX to drive positive mix, underlying GM improvements and op
Slide 8: P&L Performance
P&L Performance • +23% sales growth as reported, +5% comparable millions Q2 2023 Q2 2024 • Adjusted gross margin expansion of +160bps driven Net Sales $429 $525 by product mix/Lima and EGX business system Adj. Gross Profit $248 $313 Margin 58.0% 59.6% • Continued investments in R&D spend to support
Slide 9: Full Year 2024 Outlook
Full Year 2024 Outlook February May August Comments Reported Revenue $2.05-$2.15B $2.06-$2.16B $2.08-$2.13B • Global markets grow in line with historical averages $365-$380mm $368-$383mm $368-$383mm • 5-6% comparable growth aEBITDA • ~HSD comparable recon growth – weighted to 2H24 Depreciation $115-
Slide 10: Phasing Considerations
Phasing Considerations 2024 growth vs PY – Comparable Basis Comments LDD HSD 7% 7% • Higher 3Q seasonality due to larger OUS mix Recon from Lima, cross-selling and new launches Q1 Q2 Q3e Q4e weighted to the 4Q 3% L/MSD 3% LSD P&R • Stable global market backdrop against strong prior year in P&R Q1 Q2
Slide 11: Summary
Summary • Solid H1 vs. 2024 Strategic Goals • Lima integration milestones on track, exciting momentum building globally • Underlying growth fundamentals in position to accelerate in H2 with new product launches • Narrowing 2024 Revenue outlook, reaffirming adjusted EBITDA Guidance and raising adjust
Slide 12: Appendix
Appendix enovis. Creating Better Together” 2
Slide 13: QTD Comparable Sales
QTD Comparable Sales © 2024 Enovis Corporation
Slide 14: QTD Adjusted EPS Reconciliation
QTD Adjusted EPS Reconciliation © 2024 Enovis Corporation
Slide 15: QTD Adjusted EBITDA Reconciliation
QTD Adjusted EBITDA Reconciliation © 2024 Enovis Corporation
Slide 16: QTD Adjusted Gross Margin Reconciliation
QTD Adjusted Gross Margin Reconciliation © 2024 Enovis Corporation
Slide 17: Q2'24 GAAP to Adjusted Non-GAAP Financial Measures
Q2’24 GAAP to Adjusted Non-GAAP Financial Measures Dollars in millions (Unaudited) Acquisition- Enovis Related Non- Restructuring Continuing Cash & Other Other Income Tax a Operations Adjustments Adjustments b Adjustments c Adjustmentd Adjusted Net sales $ 525.2 $ - $ - $ - $ - $ 525.2 Cost of goods
Slide 18: Q2'23 GAAP to Adjusted Non-GAAP Financial Measures
Q2’23 GAAP to Adjusted Non-GAAP Financial Measures Dollars in millions (Unaudited) Acquisition- Enovis Related Non- Restructuring Continuing Cash & Other Other Income Tax a Operations Adjustments Adjustments b Adjustments c Adjustmentd Adjusted Net sales $ 428.5 $ - $ - $ - $ - $ 428.5 Cost of goods
Slide 19: YTD Q2'24 GAAP to Adjusted Non-GAAP Financial Measures
YTD Q2’24 GAAP to Adjusted Non-GAAP Financial Measures Dollars in millions (Unaudited) Acquisition- Enovis Related Non- Restructuring Continuing Cash & Other Other Income Tax Operations Adjustments a Adjustments b Adjustments c Adjustmentd Adjusted Net sales $ 1,041.4 $ - $ - $ - $ - $ 1,041.4 Cost
Slide 20: YTD Q2'23 GAAP to Adjusted Non-GAAP Financial Measures
YTD Q2’23 GAAP to Adjusted Non-GAAP Financial Measures Dollars in millions (Unaudited) Acquisition- Enovis Related Non- Restructuring Continuing Cash & Other Other Income Tax a Operations Adjustments Adjustments b Adjustments c Adjustmentd Adjusted Net sales $ 834.7 $ - $ - $ - $ - $ 834.7 Cost of g
Slide 21: Selected Historical Financial Information With Lima – Q224
Selected Historical Financial Information With Lima – Q224 3-months ended 6/28/2024 (Unaudited: $ in millions) A B C D = (A + B + C) E F G H = (D + E + F + G) ENOV (1) Divestiture / Comparable LIMA Other M&A Legacy ENOV LIMA Other M&A FX Impact 10-Q - Reported Exited Business Combined 28-Jun 28-Jun
Slide 22: enovis. Creating Better Together
enovis. Creating Better Together”