Enovis™ Corporation (NYSE: ENOV), an innovation-driven
medical technology growth company, today announced its financial
results for the first quarter ended March 29, 2024. The
Company will host an investor conference call and live webcast to
discuss these results today at 8:00 am ET.
First Quarter 2024 Financial
Results
Enovis’ first-quarter net sales of $516 million
grew 27% on a reported basis and 5% on a proforma basis from the
same quarter in 2023. First-quarter results reflect continued
execution in P&R, strong growth in Recon, and the addition of
recent acquisitions – Lima and Novastep. Compared to the same
quarter in 2023, net sales in Recon grew 66% on a reported basis,
with 7% proforma sales growth, and P&R grew 3% on both a
reported and an organic sales growth basis.
Enovis also reported first-quarter net loss from
continuing operations of $72 million, or a loss of 13.9% of sales
on a reported basis, and adjusted EBITDA of $83 million, or 16.1%
of sales on a reported basis, an increase of 220 basis points
versus the comparable prior-year quarter.
The Company reported first-quarter 2024 net loss
from continuing operations of $1.32 per share and adjusted earnings
per diluted share of $0.50.
“We had a great start to 2024, with both
revenues and operating margins exceeding expectations,” said Matt
Trerotola, Chief Executive Officer of Enovis. “Our acquisition of
Lima is a transformative milestone and reinforces our ability to
innovate and take incremental market share in the global orthopedic
market. The integration is progressing according to plan and we
remain in the early stages of a multi-year cadence of new product
introductions across Recon and P&R.”
First Quarter 2024 Business
Highlights
- Closed the acquisition of LimaCorporate S.p.A.
- Formally launched Arvis 2.0, Lima Trabecular Titanium Cones for
use with EMPOWR, and ROAM OA at the American Academy of Orthopaedic
Surgeons Annual Meeting in February
- Adjusted EBITDA margin improved 220 basis points year over
year, driven by the addition of Lima, product and geographic mix,
new product introductions, and execution on key EGX
initiatives
2024 Financial Outlook
Enovis updated financial expectations for 2024. Full-year
revenue is expected to approximate $2.06-2.16 billion versus prior
expectations of $2.05-2.15 billion, and adjusted EBITDA is
forecasted to be $368-383 million as compared with the previous
outlook of $365-380 million. Full-year forecasted adjusted earnings
per diluted share was updated from $2.50-$2.65 to $2.52-$2.67.
Conference call and Webcast
Investors can access the webcast via a link on
the Enovis website, www.enovis.com. For those planning to
participate on the call, please dial (833) 685-0901 (U.S. callers)
or +1 (412) 317-5715 (International callers) and ask to join the
Enovis call. A link to a replay of the call will also be available
on the Enovis website later in the day.
ABOUT ENOVIS
Enovis Corporation (NYSE: ENOV) is an
innovation-driven medical technology growth company dedicated to
developing clinically differentiated solutions that generate
measurably better patient outcomes and transform workflows. Powered
by a culture of continuous improvement, global talent and
innovation, the Company’s extensive range of products, services and
integrated technologies fuels active lifestyles in orthopedics and
beyond. The Company’s shares of common stock are listed in the
United States on the New York Stock Exchange under the symbol ENOV.
For more information about Enovis, please visit www.enovis.com.
Forward-Looking Statements
This press release includes forward-looking
statements, including forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, but are not limited to,
statements concerning Enovis’ plans, goals, objectives, outlook,
expectations and intentions, including the potential benefits of
the recently completed acquisition of Lima, and other statements
that are not historical or current fact. Forward-looking statements
are based on Enovis’ current expectations and involve risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in such forward-looking statements.
Factors that could cause Enovis’ results to differ materially from
current expectations include, but are not limited to, risks related
to Enovis’ recently completed acquisition of Lima; the impact of
public health emergencies and global pandemics (including
COVID-19); the war in Ukraine and escalating geopolitical
tensions including in connection with Russia’s invasion of Ukraine;
macroeconomic conditions, including the impact of increasing
inflationary pressures; supply chain disruptions; increasing energy
costs and availability concerns, particularly in the European
market; the impacts of the completed spin-off of ESAB Corporation
into an independent publicly traded company (the “Separation”); the
potential to incur significant liability if the Separation is
determined to be a taxable transaction; the ability to realize the
anticipated benefits of the Separation, the financial and operating
performance of the Company following the Separation; other impacts
on Enovis’ business and ability to execute business continuity
plans; and the other factors detailed in Enovis’ reports filed with
the U.S. Securities and Exchange Commission (the “SEC”), including
its most recent Annual Report on Form 10-K and subsequent Quarterly
Reports on Form 10-Q under the caption “Risk Factors,” as well as
the other risks discussed in Enovis’ filings with the SEC. In
addition, these statements are based on assumptions that are
subject to change. This press release speaks only as of the date
hereof. Enovis disclaims any duty to update the information
herein.
Non-GAAP Financial Measures
Enovis has provided in this press release
financial information that has not been prepared in accordance with
accounting principles generally accepted in the United States of
America (“non-GAAP”). These non-GAAP financial measures may include
one or more of the following: adjusted net income from continuing
operations (“Adjusted net income”), Adjusted net income per diluted
share, adjusted EBITDA, adjusted EBITDA margin and organic sales
growth.
Adjusted net income and Adjusted net income per
diluted share excludes restructuring and other charges, European
Union Medical Device Regulation (“MDR”) and other costs,
amortization of acquired intangibles, inventory step up costs,
strategic transaction costs, stock compensation costs, other
income/expense, and it includes the tax effect of adjusted pre-tax
income at applicable tax rates and other tax adjustments. Enovis
also presents Adjusted net income margin, which is subject to the
same adjustments as Adjusted net income.
Adjusted EBITDA represents Adjusted net income
excluding interest, taxes, and depreciation and amortization.
Enovis presents adjusted EBITDA margin, which is subject to the
same adjustments as adjusted EBITDA.
Adjusted gross profit represents gross profit
excluding the fair value charges of acquired inventory and the
impact of restructuring and other charges. Adjusted gross profit
margin is subject to the same adjustments as adjusted gross
profit.
Pro forma sales adjusts net sales for prior
periods to include the sales of acquired businesses (including Lima
and Novastep) prior to our ownership from acquisitions that closed
after March 31, 2023. Pro forma sales growth represents the
change in net sales for the current period compared to pro forma
sales for the comparable prior year period.
Organic sales growth calculates sales growth
period over period, after excluding the impact of acquisitions and
foreign exchange rate fluctuations.
These non-GAAP financial measures assist Enovis
management in comparing its operating performance over time because
certain items may obscure underlying business trends and make
comparisons of long-term performance difficult, as they are of a
nature and/or size that occur with inconsistent frequency or relate
to discrete restructuring plans that are fundamentally different
from the ongoing productivity improvements of the Company. Enovis
management also believes that presenting these measures allows
investors to view its performance using the same measures that the
Company uses in evaluating its financial and business performance
and trends. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
calculated in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP measures to their most
directly comparable GAAP financial measures. A reconciliation of
non-GAAP financial measures presented above to GAAP results has
been provided in the financial tables included in this press
release. Enovis does not provide reconciliations of adjusted EBITDA
or adjusted earnings per share on a forward-looking basis to the
closest GAAP financial measures, as such information is not
available without unreasonable efforts on a forward-looking basis
due to uncertainties regarding, and the potential variability of,
reconciling items excluded from these measures. These items are
uncertain, depend on various factors, and could have a material
impact on GAAP reported results for the guidance period.
Kyle RoseVice President, Investor
RelationsEnovis
Corporation+1-917-734-7450investorrelations@enovis.com
Enovis
CorporationCondensed Consolidated Statements of
OperationsDollars in thousands, except per share
data(Unaudited)
|
Three Months Ended |
|
March 29, 2024 |
|
March 31, 2023 |
Net sales |
$ 516,266 |
|
$ 406,151 |
Cost of
sales |
218,370 |
|
171,086 |
Gross profit |
297,896 |
|
235,065 |
Gross profit
margin |
57.7 % |
|
57.9 % |
Selling, general
and administrative expense |
255,691 |
|
207,165 |
Research and
development expense |
23,377 |
|
18,193 |
Amortization of
acquired intangibles |
40,931 |
|
32,040 |
Restructuring and
other charges |
12,911 |
|
2,635 |
Operating
loss |
(35,014) |
|
(24,968) |
Operating loss
margin |
(6.8) % |
|
(6.1) % |
Interest expense,
net |
19,996 |
|
5,652 |
Other (income)
expense, net |
24,235 |
|
(661) |
Loss from
continuing operations before income taxes |
(79,245) |
|
(29,959) |
Income tax
benefit |
(7,404) |
|
(7,113) |
Net loss from
continuing operations |
(71,841) |
|
(22,846) |
Loss from
discontinued operations, net of taxes |
— |
|
(312) |
Net loss |
(71,841) |
|
(23,158) |
Less: net income
attributable to noncontrolling interest from continuing operations
- net of taxes |
157 |
|
192 |
Net loss
attributable to Enovis Corporation |
$ (71,998) |
|
$ (23,350) |
Net loss per
share - basic and diluted |
|
|
|
Continuing operations |
$
(1.32) |
|
$
(0.42) |
Discontinued operations |
$
— |
|
$
(0.01) |
Consolidated operations |
$
(1.32) |
|
$
(0.43) |
Enovis
CorporationReconciliation of GAAP to Non-GAAP
Financial MeasuresDollars in millions, except per
share data(Unaudited)
|
Three Months Ended |
|
March 29, 2024 |
|
March 31, 2023 |
Adjusted
Net Income and Adjusted Net Income Per Share |
|
Net loss from
continuing operations attributable to Enovis Corporation(1)
(GAAP) |
$
(72.0) |
|
$
(23.0) |
Restructuring and
other charges - pretax(2) |
12.9 |
|
2.9 |
MDR and other
costs - pretax(3) |
4.9 |
|
7.8 |
Amortization of
acquired intangibles - pretax |
40.9 |
|
32.0 |
Inventory step-up - pretax |
5.1 |
|
0.1 |
Strategic transaction costs -
pretax(4) |
20.8 |
|
11.6 |
Stock-based compensation |
6.4 |
|
6.9 |
Other (income)
expense, net |
24.2 |
|
(0.7) |
Tax adjustment(5) |
$
(15.6) |
|
(13.6) |
Adjusted net
income from continuing operations (non-GAAP) |
$
27.7 |
|
$
24.1 |
Adjusted net income margin from continuing
operations |
5.4 % |
|
5.9 % |
Weighted-average
shares outstanding - diluted (in thousands) |
54,687 |
|
54,325 |
Adjusted net
income per share - diluted from continuing operations
(non-GAAP) |
$
0.50 |
|
$
0.44 |
Net loss per
share - diluted from continuing operations (GAAP) |
$
(1.32) |
|
$
(0.42) |
__________(1) Net loss from continuing
operations attributable to Enovis Corporation for the respective
periods is calculated using Net loss from continuing operations
less the continuing operations component of the income attributable
to noncontrolling interest, net of taxes.(2) Restructuring and
other charges includes $0.3 million of expense classified as Cost
of sales on our Condensed Consolidated Statements of Operations for
the three months ended March 31, 2023.(3) Primarily related to
costs specific to compliance with medical device reporting
regulations and other requirements of the European Union MDR. These
costs are classified as Selling, general and administrative expense
on our Condensed Consolidated Statements of Operations.(4)
Strategic transaction costs includes integration costs related to
recent acquisitions and Separation-related costs.(5) The effective
tax rates used to calculate adjusted net income and adjusted net
income per share were 22.7% and 21.0% for the three months ended
March 29, 2024 and March 31, 2023, respectively.
Enovis
CorporationReconciliation of GAAP to Non-GAAP
Financial MeasuresDollars in
millions(Unaudited)
|
Three Months Ended |
|
March 29, 2024 |
|
March 31, 2023 |
|
(Dollars in millions) |
Net loss from
continuing operations (GAAP) |
$
(71.8) |
|
$
(22.8) |
Income tax benefit |
(7.4) |
|
(7.1) |
Other (income) expense, net |
24.2 |
|
(0.7) |
Interest expense, net |
20.0 |
|
5.7 |
Operating loss
(GAAP) |
(35.0) |
|
(25.0) |
Adjusted to
add: |
|
|
|
Restructuring and other charges(1) |
12.9 |
|
2.9 |
MDR and other costs(2) |
4.9 |
|
7.8 |
Strategic transaction costs(3) |
20.8 |
|
11.6 |
Stock-based compensation |
6.4 |
|
6.9 |
Depreciation and other amortization |
27.2 |
|
20.0 |
Amortization of acquired intangibles |
40.9 |
|
32.0 |
Inventory step-up |
5.1 |
|
0.1 |
Adjusted EBITDA
(non-GAAP) |
$
83.2 |
|
$
56.4 |
Adjusted EBITDA
margin (non-GAAP) |
16.1 % |
|
13.9 % |
__________(1) Restructuring and other charges
includes $0.3 million of expense classified as Cost of sales on our
Condensed Consolidated Statements of Operations for the three
months ended March 31, 2023.(2) Primarily related to costs specific
to compliance with medical device reporting regulations and other
requirements of the European Union MDR. These costs are classified
as Selling, general and administrative expense on our Condensed
Consolidated Statements of Operations.(3) Strategic transaction
costs includes integration costs related to recent acquisitions and
Separation-related costs.
Enovis
CorporationReconciliation of Gross Margin (GAAP)
to Adjusted Gross Margin (non-GAAP)Dollars in
millions(Unaudited)
|
Three Months Ended |
|
March 29, 2024 |
|
March 31, 2023 |
Net sales |
$
516.3 |
|
$
406.2 |
Gross profit |
$
297.9 |
|
$
235.1 |
Gross profit
margin (GAAP) |
57.7 % |
|
57.9 % |
|
|
|
|
Gross profit
(GAAP) |
$
297.9 |
|
$
235.1 |
Inventory
step-up |
5.1 |
|
0.1 |
Restructuring and
other charges |
— |
|
0.3 |
Adjusted gross
profit (Non-GAAP) |
$
303.0 |
|
$
235.5 |
Adjusted gross
profit margin (Non-GAAP) |
58.7 % |
|
58.0 % |
Enovis CorporationGAAP
and Proforma Net salesDollars in
millions(Unaudited)
|
Three Months Ended |
|
March 29, 2024 |
|
March 31, 2023 |
|
Growth Rate (GAAP) |
|
March 31, 2023 |
|
Growth Rate (Pro forma) |
|
GAAP |
|
Proforma(1) |
|
(In millions) |
Prevention &
Recovery: |
|
|
|
|
|
|
|
|
|
U.S. Bracing & Support |
104,574 |
|
104,375 |
|
0.2 % |
|
104,375 |
|
0.2 % |
U.S. Other P&R |
66,350 |
|
62,347 |
|
6.4 % |
|
62,347 |
|
6.4 % |
International P&R |
88,089 |
|
84,018 |
|
4.8 % |
|
84,018 |
|
4.8 % |
Total Prevention
& Recovery |
259,013 |
|
250,740 |
|
3.3 % |
|
250,740 |
|
3.3 % |
|
|
|
|
|
|
|
|
|
|
Reconstructive: |
|
|
|
|
|
|
|
|
|
U.S. Reconstructive |
123,735 |
|
103,492 |
|
19.6 % |
|
118,903 |
|
4.1 % |
International Reconstructive |
133,518 |
|
51,919 |
|
157.2 % |
|
121,433 |
|
10.0 % |
Total
Reconstructive |
257,253 |
|
155,411 |
|
65.5 % |
|
240,336 |
|
7.0 % |
|
|
|
|
|
|
|
|
|
|
Total |
516,266 |
|
406,151 |
|
27.1 % |
|
491,076 |
|
5.1 % |
Enovis
CorporationCondensed Consolidated Balance
SheetsDollars in thousands, except share
amounts(Unaudited)
|
March 29, 2024 |
|
December 31, 2023 |
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$
66,267 |
|
$
36,191 |
Trade receivables, less allowance for credit losses of $9,752 and
$9,731 |
381,053 |
|
291,483 |
Inventories, net |
586,002 |
|
468,832 |
Prepaid expenses |
36,033 |
|
28,901 |
Other current assets |
81,364 |
|
71,112 |
Total current assets |
1,150,719 |
|
896,519 |
Property, plant and equipment, net |
345,701 |
|
270,798 |
Goodwill |
2,414,611 |
|
2,060,893 |
Intangible assets, net |
1,408,310 |
|
1,127,363 |
Lease asset - right of use |
70,146 |
|
63,506 |
Other assets |
89,194 |
|
90,255 |
Total assets |
$
5,478,681 |
|
$
4,509,334 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current portion of long-term debt |
$
20,101 |
|
$
— |
Accounts payable |
155,748 |
|
132,475 |
Accrued liabilities |
373,283 |
|
237,132 |
Total current liabilities |
549,132 |
|
369,607 |
Long-term debt, less current portion |
1,318,463 |
|
466,164 |
Non-current lease liability |
51,190 |
|
48,684 |
Other liabilities |
249,054 |
|
204,178 |
Total
liabilities |
2,167,839 |
|
1,088,633 |
Equity: |
|
|
|
Common stock, $0.001 par value; 133,333,333 shares authorized;
54,840,581 and 54,597,142 shares issued and outstanding as of
March 29, 2024 and December 31, 2023, respectively |
55 |
|
55 |
Additional paid-in capital |
2,903,277 |
|
2,900,747 |
Retained earnings |
470,473 |
|
542,471 |
Accumulated other comprehensive loss |
(65,378) |
|
(24,881) |
Total Enovis
Corporation equity |
3,308,427 |
|
3,418,392 |
Noncontrolling
interest |
2,415 |
|
2,309 |
Total equity |
3,310,842 |
|
3,420,701 |
Total liabilities
and equity |
$
5,478,681 |
|
$
4,509,334 |
Enovis
CorporationCondensed Consolidated Statements of
Cash FlowsDollars
in thousands(Unaudited)
|
Three Months Ended |
|
March 29, 2024 |
|
March 31, 2023 |
|
|
|
|
Cash
flows from operating activities: |
|
|
|
Net loss |
$
(71,841) |
|
$
(23,158) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation, amortization and other impairment charges |
73,404 |
|
51,991 |
Stock-based compensation expense |
6,431 |
|
7,606 |
Non-cash interest expense |
1,245 |
|
838 |
Fair value loss on contingent acquisition shares |
13,443 |
|
— |
Loss on currency hedges |
11,123 |
|
— |
Deferred income tax expense (benefit) |
(9,966) |
|
831 |
Loss on sale of property, plant and equipment |
265 |
|
429 |
Changes in operating assets and liabilities: |
|
|
|
Trade receivables, net |
(12,009) |
|
(12,288) |
Inventories, net |
(11,051) |
|
(9,249) |
Accounts payable |
(11,752) |
|
15,621 |
Other operating assets and liabilities |
(25,448) |
|
(25,164) |
Net cash
provided by (used in) operating activities |
(36,156) |
|
7,457 |
Cash
flows from investing activities: |
|
|
|
Purchases of property, plant and equipment and intangibles |
(36,928) |
|
(30,443) |
Payments for acquisitions, net of cash received, and
investments |
(760,914) |
|
(3,942) |
Net cash
used in investing activities |
(797,842) |
|
(34,385) |
Cash
flows from financing activities: |
|
|
|
Proceeds from borrowings on term credit facility |
400,000 |
|
— |
Repayments of borrowings under term credit facility |
(5,000) |
|
(219,468) |
Proceeds from borrowings on revolving credit facilities and
other |
480,000 |
|
250,000 |
Repayments of borrowings on revolving credit facilities and
other |
(1,956) |
|
(5,672) |
Payment of debt issuance costs |
(703) |
|
— |
Proceeds from issuance of common stock, net |
871 |
|
438 |
Deferred consideration payments and other |
(8,672) |
|
(800) |
Net cash
provided by financing activities |
864,540 |
|
24,498 |
Effect of
foreign exchange rates on Cash and cash equivalents |
(828) |
|
35 |
Increase
(decrease) in Cash, cash equivalents and restricted cash |
29,714 |
|
(2,395) |
Cash, cash
equivalents and restricted cash, beginning of period |
44,832 |
|
24,295 |
Cash,
cash equivalents and restricted cash, end of period |
$
74,546 |
|
$
21,900 |
|
|
|
|
Supplemental disclosures: |
|
|
|
Fair value of
contingent acquisition shares |
$
107,877 |
|
$
— |
Enovis (NYSE:ENOV)
過去 株価チャート
から 4 2024 まで 5 2024
Enovis (NYSE:ENOV)
過去 株価チャート
から 5 2023 まで 5 2024