ZimVie (ZIMV) Q3 2024 earnings summary

Executive summary

• Completed sale of the spine segment in April 2024 for $377.2M, transitioning to a pure-play dental business and recording an $11.3M gain from the transaction.

• Q3 2024 net sales from continuing operations were $103.2M, down 2% year-over-year, with net loss improving to $(3.0)M from $(10.2)M a year ago.

• Adjusted EBITDA rose to $13.1M (12.7% margin), up from $12.2M (11.6% margin) year-over-year.

• Focused on expanding adoption of premium dental implants, biomaterials, and digital dentistry solutions through innovation, education, and new product launches.

• Investments increased in sales force, R&D, and training to support future expansion.

Financial highlights

• Q3 2024 net sales were $103.2M, down 2% reported and 2.2% in constant currency year-over-year; U.S. sales grew 0.5%, international sales declined 6%.

• Adjusted EBITDA for Q3 2024 was $13.1M (12.7% margin); adjusted EPS was $0.12 per share on 27.6M shares.

• Net loss margin improved to (3.0%) from (9.7%) in Q3 2023.

• Year-to-date, reduced gross debt by $290M; cash and cash equivalents were $66.8M–$68.1M at September 30, 2024.

• Adjusted cost of products sold was 34.4%–34.7%, down year-over-year and sequentially.

Outlook and guidance

• Full-year 2024 net sales projected at $450M–$455M; adjusted EBITDA guidance raised to $60M–$62M (13.3%–13.6% margin).

• Adjusted EPS guidance narrowed to $0.57–$0.62 per share.

• Committed to achieving 15%+ adjusted EBITDA margin by April 2025.

• Management expects to use proceeds from the spine segment sale to repay debt and invest in the dental business, though anticipated benefits may not be fully realized.

• Available cash, cash equivalents, and credit facility expected to meet liquidity needs for at least the next 12 months.