Orthofix Medical Inc. · NASDAQ:OFIX
Orthofix Medical — Q2 2024 Earnings Presentation
20 slides from Orthofix Medical's earnings presentation, Aug 6, 2024
Slide 1: 2nd Quarter 2024 Earnings Call
2nd Quarter 2024 Earnings Call August 6, 2024
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: Q2 2024 Financial Highlights
Orthofix $198.6M 12% Q2 2024 Financial Highlights Q2 2024 Revenue 6% Growth YoY as reported Q2 2024 U.S. Spine Fixation(3) YoY Growth Driven by distribution expansion and 6% Growth YoY constant currency(1) penetration in existing accounts We delivered another strong quarter driven by successful exec
Slide 4: Seasoned Executive Leadership Team
Seasoned Executive Leadership Team 250+ years in spine/orthopedics Massimo Calafiore Julie Andrews Max Reinhardt Jason Shallenberger New Hire (starts mid-August) Beau Standish, PhD, PEng President and Chief Financial Officer President, Global Spine President, Bone Growth Therapies President, Global
Slide 5: Q2 2024 Key Messages
Q2 2024 Key Messages Strong fundamentals with compelling growth opportunity and value proposition across diverse portfolio More focused commercial strategy with innovation in spine complemented by successful cross-selling New leadership team well positioned to implement strategic vision and achieve
Slide 6: Q2 2024 Results Summary
Q2 2024 Results Summary Q2 Total Net Sales: $198.6M; 6% YoY constant currency growth Q2 Non-GAAP Adjusted EBITDA: $16.6M; 8% of sales Second Quarter 2024 Results Summary (in millions) vs $9.9M in 2Q23; 5% of sales Constant Currency Q2 2024 Q2 2023 Change Bone Growth Therapies $ 59.1 $ 52.7 12.3% Spi
Slide 7: Notable growth across each business segment
Notable growth across each business segment Led primarily by strength in U.S. markets Q2 Total Revenues $198.6M +6% YoY* Global Orthopedics $30.6M +6%* International Spinal Implants, Biologics & Enabling Technologies 8% $8.8M (17%)* 92% U.S. Spinal Implants, Biologics & Enabling Technologies $100.1M
Slide 8: Q2 2024 Business Segment Highlights
Q2 2024 Business Segment Highlights SPINE BONE GROWTH ORTHOPEDICS THERAPIES • U.S. Spine Fixation grew 12% - • Sixth consecutive quarter of • Global Orthopedics grew 6% more than 2x the market rate double-digit net sales on constant currency basis; increases in both spine and U.S. Orthopedics grew 7
Slide 9: Synergistic product platforms lay foundation for sustainable, profitable growth
Synergistic product platforms lay foundation for sustainable, profitable growth $7B of Focused, High-Growth Market Segments* | 6% CAGR Spinal Implants Orthopedics Motion Preservation Limb Reconstruction Spinal Fixation Deformity Correction Synergistic Product Platform Biologics Bone Growth Therapies
Slide 10: Enabling Technologies
FLASH Navigation with 7D Technology Enabling Technologies World’s First Machine-Vision image-guided surgical system, registering spinal anatomy in mere seconds without the need for intraoperative radiation Servicing the full continuum of surgical care Scan QR Code to see simplicity of FLASH Navigati
Slide 11: 7D FLASH Navigation is revolutionizing spinal navigation
7D FLASH Navigation is revolutionizing spinal navigation Eliminates Radiation Based off preoperative CT or MRI, no intraoperative radiation is required, eliminating exposure to surgeons, staff and patients Cuts Registration Time Fastest 3D reconstruction in under 30 seconds Flash Fix enables automat
Slide 12: Meaningful advantages with FLASH 7D technology
Meaningful advantages with FLASH 7D technology 97.8% 61.0% 98.8% 94.8% 63.6 reduction in reduction in accurate with no faster than intraoperative minutes saved intraoperative intraoperative pedicle breach1* CT-based systems3* per case2* radiation during radiation during adult degenerative complex pe
Slide 13: Key Priorities for 2024
Key Priorities for 2024 Synergistic and Balanced Profitable Growth Strategic Innovation Product Platforms Sustainable, differentiated growth engine – Leverage technologies and sales channels Focus on continuous innovation to drive avoid “growth at all cost” across complementary product segments grow
Slide 14: Increased Full-Year Financial Guidance
2024 $795M - $800M Revenue (Was $790M - $795M) Increased Full-Year $64M - $69M Adjusted EBITDA (Was $62M - $67M) Financial Guidance* Free cash flow positive for 2nd Half of 2024 Revenue range above represents 6.7% to 7.4% year-over-year constant currency growth Guidance information is as of August 6
Slide 15: For additional information, please contact
For additional information, please contact: Julie Dewey, IRC www.Orthofix.com Chief IR & Communications Officer juliedewey@orthofix.com 209-613-6945 NASDAQ: OFIX ©2024 Orthofix Medical Inc. All rights reserved | 15
Slide 16: Appendix
Appendix ©2024 Orthofix Medical Inc. All rights reserved | 16
Slide 17: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets June 30, December 31, (U.S. Dollars, in thousands, except par value data) 2024 2023 (Unaudited) Assets Current assets Cash and cash equivalents $ 26,366 $ 33,107 Restricted Cash 2,500 4,650 Accounts receivable, net of allowances of $8,368 and $7,130, respectivel
Slide 18: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations Three Months Ended Six Months Ended June 30, June 30, (Unaudited, U.S. Dollars, in thousands, except share and per share data) 2024 2023 2024 2023 Net sales $ 198,620 $ 187,016 $ 387,228 $ 362,220 Cost of sales 63,871 67,465 125,237 132,340 Gross profi
Slide 19: Net Sales by Major Product Category by Reporting Segment
Net Sales by Major Product Category by Reporting Segment Three Months Ended June 30, Constant Currency (Unaudited, U.S. Dollars, in millions) 2024 2023 Change Change Bone Growth Therapies $ 59.1 $ 52.7 12.3% 12.3% Spinal Implants, Biologics and Enabling Technologies 108.9 105.3 3.4% 3.4% Global Spin
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures On the Company’s Q2 2024 earnings call held on August 6, 2024, Orthofix management presented Adjusted EBITDA and Adjusted Gross Margin, both of which are non-GAAP financial measures, for the 2nd quarter of 2024. These tables present reconciliations of various financial me