ZimVie (ZIMV) Q2 2024 earnings summary

Executive summary

• Completed the sale of the spine business in April 2024 for $377.2 million, transitioning to a pure-play dental company and recording a gain of $11.3 million on the sale.

• Q2 2024 net sales were $116.8 million, down 1.5% year-over-year, with U.S. sales flat and international sales down 3.8% reported (1.2% constant currency).

• Net loss from continuing operations was $9.6 million (8.2% margin), with adjusted net income of $3.6 million and adjusted EPS of $0.13.

• Focused on innovation in implants, biomaterials, and digital solutions, including FDA clearance and U.S. launch of GenTek restorative components and RealGUIDE software updates.

• Paid down $275 million of debt using sale proceeds, significantly improving balance sheet health and capital allocation flexibility.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $16.1 million (13.8% margin), up 250 basis points year-over-year.

• Adjusted EPS was $0.13 per share, impacted by $5.7 million in share-based compensation.

• Cash balance at quarter-end was $78.6 million; gross debt $235 million; net debt $156 million.

• Adjusted cost of product sold was 37.0–37.3% of sales, flat year-over-year.

• SG&A expenses were 53.4% of net sales; R&D expenses were 5.4–5.6% of net sales.

Outlook and guidance

• Reaffirmed full-year 2024 revenue guidance of $450–$460 million, adjusted EBITDA of $60–$65 million (13.3–14.1% margin), and adjusted EPS of $0.55–$0.70.

• Q3 2024 revenue expected to be sequentially and year-over-year lower by 3–4% due to seasonality.

• Management expects available cash, cash flows from operations, and credit facility access to be sufficient for liquidity needs over the next 12 months.

• Strategic focus is on investing in and growing the dental business following the spine segment divestiture.