SeaSpine Holdings Corporation (SPNE) Q1 2021 Earnings Conference Call May 3, 2021 4:30 PM ET Company Participants Leigh Salvo - IR Keith Valentine - CEO John Bostjancic - CFO Conference Call Participants Matthew O'Brien - Piper Sandler Ryan Zimmerman - BTIG Kyle Rose - Canaccord Mathew Blackman - Stifel Samuel Brodovsky - Truist Brandon Folkes - Cantor Fitzgerald Jeffrey Cohen - Ladenburg Thalmann Operator Welcome to SeaSpine's 2021 First Quarter Financial Results Conference Call. [Operator Instructions] As ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark one) Commission File Number: 0-19961 ORTHOFIX MEDICAL INC. (Exact name of registrant as specified in its charter) Delaware 98-1340767 (State or other jurisdiction of incorporation or organization) 3451 Plano Parkway, Lewisville, Texas 75056 (Address of principal executive offices) (Zip Code) (214) 937-2000 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period end ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2020 was $46.4 million, a 6.2% increase compared to the prior year [9][22] - U.S. revenue increased 7.2% to $42.1 million, while international revenue declined by 3.2% to $4.3 million [22] - Gross margin for Q4 2020 was 62.8%, down from 64.2% in Q4 2019 due to higher excess and obsolete inventory provisions [25] - Net loss for Q4 2020 was $10.3 million, compared to a net loss of $8.6 million in Q4 2019 [28] Business Line Data and Key Metrics Changes - U.S. spinal implant revenue increased 8.3% year-over-year to $20.7 million, driven by new product launches [23] - U.S. orthobiologics revenue increased 6.2% year-over-year to $21.4 million, primarily due to growth in the OsteoStrand Plus product [25] - Average SeaSpine products used per procedure increased from 1.8 in Q4 2019 to 1.9 in Q4 2020 [10] Market Data and Key Metrics Changes - Worldwide revenue per day grew more than 17% over the prior year in the second half of Q4 2020 [6] - U.S. spinal implants and orthobiologics portfolios generated double-digit growth, although growth slowed due to COVID-19 restrictions on elective surgeries [7] Company Strategy and Development Direction - The company plans to launch more than a dozen products in 2021, focusing on expanding its core distributor network and increasing market share [33][36] - The strategic alliance with 7D Surgical aims to co-market their image-guided surgery platform and develop SeaSpine-specific instrumentation [19] - Continued investment in product innovation and expanding the distribution network is expected to support aggressive growth plans post-COVID [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 20% total revenue growth in 2021, assuming a decline in COVID-19 cases [8] - The company anticipates that most revenue growth will occur later in the year due to the impact of COVID-19 on surgery volumes in early 2021 [8] - Management remains optimistic about returning to sustained double-digit revenue growth as the market stabilizes [36] Other Important Information - Free cash flow burn for Q4 2020 was $17.1 million, a significant increase attributed to higher investments in inventory and capital expenditures [29] - The company expects free cash flow burn for 2021 to be slightly higher than in 2020 due to increased investments in spinal implant inventory [31] Q&A Session Summary Question: What should be factored into models for 2021 outlook? - Management indicated that international visibility remains low due to reliance on stocking distributors, but U.S. spinal implants are expected to drive growth [39] Question: What stage are the 19 product launches from last year? - Most significant launches included the Mariner MIS and Revision systems, which are expected to contribute to revenue growth moving forward [41] Question: What is the state of the commercial team and revenue mix? - The company has added new distributor partners and expects a higher mix of revenues from core distributors in 2021 [45][47] Question: Does guidance consider market disruptions? - Management focused on internal factors such as distributor additions and product launches rather than external disruptions from competitors [55] Question: What is the expected inventory increase for 2021? - Inventory is expected to increase in 2021 due to the deployment of more sets for full commercial launches [72] Question: Can you clarify the gross margin expectations? - Long-term expectations for gross margin growth remain at 100 to 150 basis points, with potential for higher growth in 2021 due to operational efficiencies [73]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ORTHOFIX MEDICAL INC. FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 0-19961 (214) 937-2000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) o ...

[Report Overview](index=1&type=section&id=Report%20Overview) This section provides an overview of the company's SEC filing, forward-looking statements, and associated risks [Filing Information](index=1&type=section&id=Filing%20Information) This section details the company's SEC filing information, including its status as a large accelerated filer and common stock details - Orthofix Medical Inc. filed a Quarterly Report on Form 10-Q for the period ended September 30, 2020[2](index=2&type=chunk) - The registrant is a **large accelerated filer** and not a shell company[3](index=3&type=chunk)[4](index=4&type=chunk) Common Stock Information as of November 2, 2020 | Title of Class | Trading Symbol | Exchange Registered | |---|---|---| | Common stock, $0.10 par value per share | OFIX | Nasdaq Global Select Market | **Shares Issued and Outstanding:** 19,333,698 shares [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a cautionary note regarding forward-looking statements, highlighting inherent risks and uncertainties, particularly those related to the COVID-19 pandemic, and disclaims any obligation to update these statements - The report contains forward-looking statements based on current beliefs, assumptions, expectations, estimates, forecasts, and projections[10](index=10&type=chunk) - These statements are not guarantees of future performance and involve risks and uncertainties, including those detailed in Part II Item 1A (Risk Factors) and the 2019 Form 10-K[10](index=10&type=chunk) - Specific risks related to COVID-19 include delayed/cancelled surgeries, workforce disruptions, supply chain issues, customer payment defaults, and general economic weakness[10](index=10&type=chunk) - The company disclaims any obligation to update forward-looking statements[11](index=11&type=chunk) [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, changes in shareholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, recent acquisitions, and the impact of the COVID-19 pandemic [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (September 30, 2020 vs. December 31, 2019) | Metric (in thousands) | Sep 30, 2020 | Dec 31, 2019 | Change (Absolute) | Change (%) | |---|---|---|---|---| | **Assets** | | | | | | Cash and cash equivalents | $79,810 | $69,719 | $10,091 | 14.5% | | Total current assets | $254,669 | $260,553 | $(5,884) | -2.3% | | Total assets | $517,132 | $495,620 | $21,512 | 4.3% | | **Liabilities** | | | | | | Total current liabilities | $93,379 | $84,883 | $8,496 | 10.0% | | Total liabilities | $162,236 | $167,989 | $(5,753) | -3.4% | | **Shareholders' Equity** | | | | | | Total shareholders' equity | $354,896 | $327,631 | $27,265 | 8.3% | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Operations (Three Months Ended September 30) | Metric (in thousands) | 2020 | 2019 | Change (Absolute) | Change (%) | |---|---|---|---|---| | Net sales | $110,985 | $113,499 | $(2,514) | -2.2% | | Gross profit | $84,742 | $88,603 | $(3,861) | -4.4% | | Operating income (loss) | $4,175 | $(18,882) | $23,057 | 122.1% | | Net income (loss) | $4,654 | $(40,498) | $45,152 | 111.5% | | Basic EPS | $0.24 | $(2.14) | $2.38 | 111.2% | | Diluted EPS | $0.24 | $(2.14) | $2.38 | 111.2% | Condensed Consolidated Statements of Operations (Nine Months Ended September 30) | Metric (in thousands) | 2020 | 2019 | Change (Absolute) | Change (%) | |---|---|---|---|---| | Net sales | $288,943 | $338,461 | $(49,518) | -14.6% | | Gross profit | $216,125 | $264,045 | $(47,920) | -18.1% | | Operating income (loss) | $(9,971) | $(22,879) | $12,908 | 56.4% | | Net income (loss) | $11,895 | $(40,148) | $52,043 | 129.6% | | Basic EPS | $0.62 | $(2.13) | $2.75 | 129.1% | | Diluted EPS | $0.61 | $(2.13) | $2.74 | 128.6% | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Changes in Shareholders' Equity (Nine Months Ended September 30, 2020) | Metric (in thousands) | At Dec 31, 2019 | At Sep 30, 2020 | Change (Absolute) | |---|---|---|---| | Common Shares | $1,902 | $1,927 | $25 | | Additional Paid-in Capital | $271,019 | $285,203 | $14,184 | | Retained Earnings | $57,749 | $68,757 | $11,008 | | Accumulated Other Comprehensive Loss | $(3,039) | $(991) | $2,048 | | Total Shareholders' Equity | $327,631 | $354,896 | $27,265 | - Key changes include **net income of $11.9 million**, share-based compensation of **$12.4 million**, and common shares issued (net) of **$1.8 million** for the nine months ended September 30, 2020[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Nine Months Ended September 30) | Cash Flow Activity (in thousands) | 2020 | 2019 | Change (Absolute) | |---|---|---|---| | Net cash from operating activities | $51,981 | $20,090 | $31,891 | | Net cash from investing activities | $(42,944) | $(21,281) | $(21,663) | | Net cash from financing activities | $583 | $(12,610) | $13,193 | | Net change in cash, cash equivalents, and restricted cash | $9,897 | $(14,686) | $24,583 | | Cash, cash equivalents, and restricted cash at end of period | $80,300 | $57,503 | $22,797 | - Operating cash flows significantly increased due to higher net income and changes in working capital, while investing activities saw a substantial increase in outflows primarily due to business acquisitions[19](index=19&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Business, basis of presentation, COVID-19 update, and CARES Act](index=8&type=section&id=Note%201.%20Business,%20basis%20of%20presentation,%20COVID-19%20update,%20and%20CARES%20Act) - Orthofix Medical Inc. is a global medical device company focused on musculoskeletal products and therapies, headquartered in Lewisville, Texas, distributing products in over 70 countries[20](index=20&type=chunk) - The COVID-19 pandemic negatively impacted net sales, particularly from March to May 2020, due to deferred elective surgeries, travel restrictions, and economic factors, with future impacts remaining uncertain[23](index=23&type=chunk)[25](index=25&type=chunk) - The company received **$13.9 million** from the CMS Accelerated and Advance Payment Program and **$4.7 million** from the Provider Relief Fund under the CARES Act, also deferring **$2.2 million** in employer social security payroll taxes[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Note 2. Recently adopted accounting standards and recently issued accounting pronouncements](index=9&type=section&id=Note%202.%20Recently%20adopted%20accounting%20standards%20and%20recently%20issued%20accounting%20pronouncements) This note details the adoption of new accounting standards, including those for credit losses, goodwill impairment, fair value measurement, cloud computing, and reference rate reform, and their financial impact - Adopted ASU 2016-13 (Credit Losses) effective January 1, 2020, increasing allowance for expected credit losses by **$1.1 million** and decreasing retained earnings by **$0.9 million**[31](index=31&type=chunk)[66](index=66&type=chunk) - Adopted ASU 2017-04 (Goodwill Impairment) and ASU 2018-13 (Fair Value Measurement Disclosure) effective January 1, 2020, with no material impact on financial statements but affecting future impairment measurement and disclosures[32](index=32&type=chunk)[33](index=33&type=chunk) - Adopted ASU 2018-15 (Cloud Computing Implementation Costs) and ASU 2020-04 (Reference Rate Reform) effective January 1, 2020, and March 12, 2020, respectively, with no material current impact but expected future effects[34](index=34&type=chunk)[35](index=35&type=chunk) - Currently evaluating ASU 2019-12 (Simplifying the accounting for income taxes) effective January 1, 2021[36](index=36&type=chunk) [Note 3. Acquisitions](index=10&type=section&id=Note%203.%20Acquisitions) This note outlines the company's recent acquisition activities, including the purchase of FITBONE assets and a medical device distributor, detailing the consideration transferred and assets acquired - Acquired FITBONE intramedullary lengthening system assets from Wittenstein SE for **$18.0 million cash** on March 26, 2020, recording **$11.3 million in goodwill**[37](index=37&type=chunk)[39](index=39&type=chunk) FITBONE Acquisition - Preliminary Fair Values of Assets Acquired (in thousands) | Asset Acquired | Fair Value | |---|---| | Inventories | $528 | | Developed technology | $4,500 | | Customer relationships | $800 | | Trade name | $600 | | In-process research and development ("IPR&D") | $300 | | **Total identifiable assets acquired** | **$6,728** | | Goodwill | $11,272 | | **Total fair value of consideration transferred** | **$18,000** | - Acquired certain assets of a medical device distributor in July 2020 for up to **$7.6 million**, primarily customer relationships (**$7.34 million**) and assembled workforce (**$0.235 million**)[43](index=43&type=chunk) [Note 4. Inventories](index=12&type=section&id=Note%204.%20Inventories) This note provides a breakdown of inventory categories and their changes between reporting periods Inventories (in thousands) | Category | Sep 30, 2020 | Dec 31, 2019 | |---|---|---| | Raw materials | $7,779 | $9,587 | | Work-in-process | $12,050 | $14,027 | | Finished products | $26,384 | $20,712 | | Field/consignment | $36,646 | $38,071 | | **Total Inventories** | **$82,859** | **$82,397** | - Total inventories increased slightly by **$0.462 million** from December 31, 2019, to September 30, 2020, with a notable increase in finished products and a decrease in raw materials and work-in-process[44](index=44&type=chunk) [Note 5. Leases](index=12&type=section&id=Note%205.%20Leases) This note summarizes the company's lease portfolio and significant lease agreements Lease Portfolio Summary (in thousands) | Category | Sep 30, 2020 | Dec 31, 2019 | |---|---|---| | Total Right-of-Use (ROU) assets | $25,973 | $26,005 | | Total lease liabilities | $28,126 | $26,930 | - In March 2020, the company entered into a Contract Manufacturing and Supply Agreement (CMSA) with Wittenstein, accounted for as a finance lease, recognizing a **$1.9 million** finance lease liability and ROU asset[46](index=46&type=chunk) [Note 6. Other current liabilities](index=13&type=section&id=Note%206.%20Other%20current%20liabilities) This note details other current liabilities, specifically focusing on accruals and payments related to a U.S. restructuring plan - As of September 30, 2020, the company had a **$3.7 million** liability associated with a U.S. restructuring plan initiated in December 2019, primarily involving severance payments[47](index=47&type=chunk) - Additional accruals of **$1.1 million** and **$2.5 million** were recorded for the three and nine months ended September 30, 2020, respectively, with payments totaling **$1.1 million** and **$2.1 million**[47](index=47&type=chunk) [Note 7. Long-term debt](index=13&type=section&id=Note%207.%20Long-term%20debt) This note describes the company's long-term debt activities, including borrowings and repayments under its credit facilities - The company borrowed **$100.0 million** under its $300 million secured revolving credit facility in April 2020 as a precautionary measure due to COVID-19, but fully repaid the outstanding balance in the third quarter of 2020[48](index=48&type=chunk) - As of September 30, 2020, there were no outstanding borrowings under the secured revolving credit facility or the €5.5 million lines of credit in Italy, and the company was in compliance with all financial covenants[48](index=48&type=chunk)[49](index=49&type=chunk) [Note 8. Fair value measurements and investments](index=13&type=section&id=Note%208.%20Fair%20value%20measurements%20and%20investments) This note provides information on the fair value of financial liabilities, particularly contingent consideration related to acquisitions Fair Value of Financial Liabilities (in thousands) | Liability | Sep 30, 2020 | Dec 31, 2019 | |---|---|---| | Spinal Kinetics contingent consideration | $(35,100) | $(42,700) | | Other contingent consideration | $(375) | $0 | | Deferred compensation plan | $(1,366) | $(1,255) | | **Total Liabilities** | **$(36,841)** | **$(43,955)** | - The estimated fair value of Spinal Kinetics contingent consideration decreased by **$7.6 million** to **$35.1 million** as of September 30, 2020, primarily due to changes in management's forecast of future net sales of artificial discs, impacted by COVID-19 uncertainty[52](index=52&type=chunk)[53](index=53&type=chunk) - The company expects to pay **$14.7 million** of the Spinal Kinetics contingent consideration within the next twelve months, classifying it as a current liability[52](index=52&type=chunk) [Note 9. Contingencies](index=15&type=section&id=Note%209.%20Contingencies) This note details various contingencies, including accruals for the Italian Medical Device Payback and a legal dispute in Brazil - The company accrued **$6.3 million** related to the Italian Medical Device Payback (IMDP) as of September 30, 2020, with **$0.4 million** and **$1.1 million** expensed for the three and nine months ended September 30, 2020, respectively, though the actual liability remains uncertain[60](index=60&type=chunk) - Approximately **$0.5 million** of cash in Brazil was frozen in September 2019 due to a legal dispute with a former distributor, reclassified as restricted cash, with an accrual of **$1.3 million** as of September 30, 2020[61](index=61&type=chunk) [Note 10. Accumulated other comprehensive loss](index=15&type=section&id=Note%2010.%20Accumulated%20other%20comprehensive%20loss) This note explains the changes in accumulated other comprehensive loss, primarily driven by currency translation adjustments Changes in Accumulated Other Comprehensive Loss (in thousands) | Metric | Dec 31, 2019 | Sep 30, 2020 | Change | |---|---|---|---| | Currency Translation Adjustments | $(3,039) | $(991) | $2,048 | | **Total Accumulated Other Comprehensive Loss** | **$(3,039)** | **$(991)** | **$2,048** | - The accumulated other comprehensive loss improved by **$2.048 million**, primarily due to positive currency translation adjustments for the nine months ended September 30, 2020[62](index=62&type=chunk) [Note 11. Revenue recognition and accounts receivable](index=15&type=section&id=Note%2011.%20Revenue%20recognition%20and%20accounts%20receivable) This note provides a detailed breakdown of net sales by product category, discusses the impact of new accounting standards on credit losses, and outlines contract liabilities Net Sales by Product Category (Three Months Ended September 30) | Product Category (in thousands) | 2020 | 2019 | Change (%) | |---|---|---|---| | Bone Growth Therapies | $47,066 | $48,836 | -3.6% | | Spinal Implants | $25,505 | $22,947 | 11.1% | | Biologics | $15,245 | $16,308 | -6.5% | | **Global Spine** | **$87,816** | **$88,091** | **-0.3%** | | **Global Extremities** | **$23,169** | **$25,408** | **-8.8%** | | **Net sales** | **$110,985** | **$113,499** | **-2.2%** | Net Sales by Product Category (Nine Months Ended September 30) | Product Category (in thousands) | 2020 | 2019 | Change (%) | |---|---|---|---| | Bone Growth Therapies | $120,888 | $146,228 | -17.3% | | Spinal Implants | $67,025 | $69,076 | -3.0% | | Biologics | $40,319 | $48,784 | -17.4% | | **Global Spine** | **$228,232** | **$264,088** | **-13.6%** | | **Global Extremities** | **$60,711** | **$74,373** | **-18.4%** | | **Net sales** | **$288,943** | **$338,461** | **-14.6%** | - The adoption of ASU 2016-13 resulted in a **$1.1 million** increase in the allowance for expected credit losses and a **$0.9 million** decrease in retained earnings as of January 1, 2020[66](index=66&type=chunk) - Contract liabilities include a **$13.9 million** prepayment from CMS under the CARES Act, with **$6.9 million** classified as current and **$6.9 million** as long-term[71](index=71&type=chunk)[73](index=73&type=chunk) [Note 12. Business segment information](index=18&type=section&id=Note%2012.%20Business%20segment%20information) This note provides a breakdown of EBITDA by reporting segment and net sales by geographic destination EBITDA by Reporting Segment (in thousands) | Segment | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | |---|---|---|---|---| | Global Spine | $19,960 | $(6,033) | $38,670 | $21,065 | | Global Extremities | $1,258 | $1,229 | $(3,995) | $3,806 | | Corporate | $(6,196) | $(15,949) | $(16,259) | $(38,356) | | **Total EBITDA** | **$15,022** | **$(20,753)** | **$18,416** | **$(13,485)** | Net Sales by Geographic Destination (Nine Months Ended September 30, 2020) | Segment | U.S. (in thousands) | International (in thousands) | Total (in thousands) | |---|---|---|---| | Global Spine | $215,819 | $12,413 | $228,232 | | Global Extremities | $16,439 | $44,272 | $60,711 | | **Consolidated** | **$232,258** | **$56,685** | **$288,943** | [Note 13. Acquisition-related amortization and remeasurement](index=18&type=section&id=Note%2013.%20Acquisition-related%20amortization%20and%20remeasurement) This note details the changes in acquisition-related amortization and remeasurement, primarily driven by adjustments to contingent consideration fair value Acquisition-related Amortization and Remeasurement (in thousands) | Component | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | |---|---|---|---|---| | Changes in fair value of contingent consideration | $(700) | $22,270 | $(7,600) | $28,140 | | Amortization of acquired intangibles | $1,838 | $1,338 | $4,834 | $3,733 | | **Total** | **$1,138** | **$23,608** | **$(2,766)** | **$31,873** | - The significant decrease in total acquisition-related amortization and remeasurement for both periods is primarily due to a **$23.0 million** (Q3) and **$35.7 million** (YTD) decrease in the fair value of contingent consideration, largely driven by COVID-19's impact on estimated milestone payments[116](index=116&type=chunk) [Note 14. Share-based compensation](index=19&type=section&id=Note%2014.%20Share-based%20compensation) This note provides a breakdown of share-based compensation expense by category and highlights the overall decrease in expense Share-based Compensation Expense (in thousands) | Category | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | |---|---|---|---|---| | Stock options | $786 | $599 | $1,840 | $3,637 | | Time-based restricted stock awards and units | $1,632 | $3,805 | $6,804 | $8,462 | | Market-based restricted stock units | $1,049 | $1,092 | $2,529 | $4,015 | | Stock purchase plan | $374 | $348 | $1,226 | $1,264 | | **Total** | **$3,841** | **$5,844** | **$12,399** | **$17,378** | - Total share-based compensation decreased by **$2.0 million** for the three months and **$5.0 million** for the nine months ended September 30, 2020, primarily due to lower time-based and market-based restricted stock awards and units[80](index=80&type=chunk) [Note 15. Income taxes](index=19&type=section&id=Note%2015.%20Income%20taxes) This note presents the income tax expense (benefit) and effective tax rate, explaining significant factors influencing the rate Income Tax Expense (Benefit) and Effective Tax Rate | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | |---|---|---|---|---| | Income tax expense (benefit) (in thousands) | $607 | $13,656 | $(17,833) | $8,869 | | Effective tax rate | 11.5% | (50.9%) | 300.3% | (28.4%) | - The effective tax rate for the nine months ended September 30, 2020, was **300.3%**, significantly impacted by statute expirations related to unrecognized tax benefits and financial deductions not recognized for tax purposes[82](index=82&type=chunk)[120](index=120&type=chunk) - The CARES Act is not expected to have a significant impact on income tax expense for fiscal year 2020[83](index=83&type=chunk) [Note 16. Earnings per share ("EPS")](index=20&type=section&id=Note%2016.%20Earnings%20per%20share%20(%22EPS%22)) This note provides details on the calculation of basic and diluted earnings per share, including the weighted average common shares and the effect of dilutive securities Weighted Average Common Shares for Diluted EPS | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | |---|---|---|---|---| | Weighted average common shares-basic | 19,335,718 | 18,957,876 | 19,217,057 | 18,847,728 | | Effect of dilutive securities | 62,849 | 0 | 102,245 | 0 | | **Weighted average common shares-diluted** | **19,398,567** | **18,957,876** | **19,319,302** | **18,847,728** | - Approximately **1.77 million** (Q3 2020) and **1.53 million** (YTD 2020) weighted average outstanding stock options and restricted stock awards were excluded from diluted EPS calculations due to being anti-dilutive or not meeting vesting conditions[88](index=88&type=chunk) [Note 17. Subsequent Events](index=20&type=section&id=Note%2017.%20Subsequent%20Events) This note describes significant events occurring after the reporting period, including a new partnership and related financial investments - On October 1, 2020, the company partnered with Neo Medical SA, including a co-development agreement for cervical spine instruments and exclusive distribution rights for thoracolumbar solutions in certain U.S. accounts[89](index=89&type=chunk)[140](index=140&type=chunk) - As part of the Neo Medical partnership, Orthofix purchased **$5.0 million** in preferred stock and provided a CHF 4.6 million convertible loan (approx. **$5.0 million**) with an **8.0% interest rate**, maturing October 1, 2024[90](index=90&type=chunk)[141](index=141&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and operational results, highlighting the impact of COVID-19, key financial metrics, segment performance, liquidity, and critical accounting estimates [Executive Summary](index=21&type=section&id=Executive%20Summary) This summary provides an overview of Orthofix's business, recent financial performance, and the ongoing impact of the COVID-19 pandemic - Orthofix is a global medical device company focused on musculoskeletal products and therapies, distributing in over 70 countries[95](index=95&type=chunk) - Q3 2020 net sales were **$111.0 million**, an increase of **52% sequentially** and within **2%** of 2019 performance[100](index=100&type=chunk) - US Spinal Implants net sales increased **19% year-over-year** in Q3, and Motion Preservation sales increased over **400% year-over-year**[100](index=100&type=chunk) - The COVID-19 pandemic significantly impacted business, particularly from March to May 2020, due to deferred elective surgeries, with future effects remaining uncertain[96](index=96&type=chunk)[98](index=98&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing changes in net sales, gross profit, operating expenses, and net income, and the factors influencing these changes Key Financial Metrics as % of Net Sales (Three Months Ended September 30) | Metric | 2020 (%) | 2019 (%) | Change (pp) | |---|---|---|---| | Net sales | 100.0 | 100.0 | 0.0 | | Cost of sales | 23.6 | 21.9 | 1.7 | | Gross profit | 76.4 | 78.1 | -1.7 | | Sales and marketing | 47.7 | 48.3 | -0.6 | | General and administrative | 14.9 | 18.6 | -3.7 | | Research and development | 9.0 | 7.0 | 2.0 | | Operating income (loss) | 3.8 | (16.6) | 20.4 | | Net income (loss) | 4.2 | (35.7) | 39.9 | Net Sales by Product Category (Three Months Ended September 30) | Product Category (in thousands) | 2020 | 2019 | Reported Change (%) | Constant Currency Change (%) | |---|---|---|---|---| | Bone Growth Therapies | $47,066 | $48,836 | -3.6% | -3.6% | | Spinal Implants | $25,505 | $22,947 | 11.1% | 10.7% | | Biologics | $15,245 | $16,308 | -6.5% | -6.5% | | **Global Spine** | **$87,816** | **$88,091** | **-0.3%** | **-0.4%** | | **Global Extremities** | **$23,169** | **$25,408** | **-8.8%** | **-11.5%** | | **Net sales** | **$110,985** | **$113,499** | **-2.2%** | **-2.9%** | - Gross profit decreased by **$3.9 million (4.4%)** for Q3 2020 and **$47.9 million (18.1%)** for the nine months, primarily due to non-cash inventory charges and lower procedure volumes from COVID-19[105](index=105&type=chunk)[110](index=110&type=chunk) - Sales and marketing expense decreased by **$1.9 million** (Q3) and **$14.6 million** (YTD) due to shifts in national sales conferences and increased virtual training[108](index=108&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk) - General and administrative expense decreased by **$4.5 million** (Q3) and **$14.0 million** (YTD), driven by lower succession/transition charges, reduced strategic investment costs, and lower legal judgments[109](index=109&type=chunk)[112](index=112&type=chunk) - Research and development expense increased by **$2.0 million** (Q3) and **$2.5 million** (YTD) due to efforts to build internal teams for new product innovation and compliance with medical device reporting regulations[114](index=114&type=chunk)[115](index=115&type=chunk) - Acquisition-related amortization and remeasurement decreased significantly by **$22.5 million** (Q3) and **$34.6 million** (YTD), mainly due to a decrease in the fair value of contingent consideration related to the Spinal Kinetics acquisition, impacted by COVID-19 uncertainty[116](index=116&type=chunk) - Net income (loss) improved significantly, with a **$45.2 million** increase for Q3 2020 and a **$52.0 million** increase for the nine months, largely driven by the decrease in acquisition-related remeasurement and other income[17](index=17&type=chunk) [Segment Review](index=27&type=section&id=Segment%20Review) This section reviews the financial performance of the company's operating segments, focusing on EBITDA contributions and changes EBITDA by Segment (in thousands) | Segment | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | |---|---|---|---|---| | Global Spine | $19,960 | $(6,033) | $38,670 | $21,065 | | Global Extremities | $1,258 | $1,229 | $(3,995) | $3,806 | | Corporate | $(6,196) | $(15,949) | $(16,259) | $(38,356) | | **Total EBITDA** | **$15,022** | **$(20,753)** | **$18,416** | **$(13,485)** | - Global Spine EBITDA significantly improved, turning from a loss of **$6.0 million** in Q3 2019 to a profit of **$19.9 million** in Q3 2020, and increasing from **$21.1 million** to **$38.7 million** year-to-date[121](index=121&type=chunk) - Corporate EBITDA losses decreased substantially, from **$(15.9) million** to **$(6.2) million** in Q3 and from **$(38.4) million** to **$(16.3) million** year-to-date[121](index=121&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash flows, liquidity position, and capital resources, including the impact of operating, investing, and financing activities Cash Flow Summary (Nine Months Ended September 30) | Cash Flow Activity (in thousands) | 2020 | 2019 | Change (Absolute) | |---|---|---|---| | Net cash from operating activities | $51,981 | $20,090 | $31,891 | | Net cash from investing activities | $(42,944) | $(21,281) | $(21,663) | | Net cash from financing activities | $583 | $(12,610) | $13,193 | | **Net change in cash, cash equivalents and restricted cash** | **$9,897** | **$(14,686)** | **$24,583** | Free Cash Flow (Nine Months Ended September 30) | Metric (in thousands) | 2020 | 2019 | Change (Absolute) | |---|---|---|---| | Net cash from operating activities | $51,981 | $20,090 | $31,891 | | Capital expenditures | $(12,704) | $(14,881) | $2,177 | | **Free cash flow** | **$39,277** | **$5,209** | **$34,068** | - Cash, cash equivalents, and restricted cash increased to **$80.3 million** at September 30, 2020, from **$70.4 million** at December 31, 2019[121](index=121&type=chunk) - Operating cash flows increased by **$31.9 million**, driven by a **$52.0 million** increase in net income and a **$23.3 million** increase from changes in working capital, including a **$13.9 million** prepayment from CMS[123](index=123&type=chunk)[124](index=124&type=chunk) - Investing cash outflows increased by **$21.7 million**, primarily due to the **$18.0 million** FITBONE acquisition and a **$5.0 million** purchase of Neo Medical preferred stock[126](index=126&type=chunk) - Financing cash flows increased by **$13.2 million**, largely due to the repayment of the **$100.0 million** revolving credit facility, offsetting the prior year's contingent consideration payment[126](index=126&type=chunk) - The company fully repaid its **$100.0 million** secured revolving credit facility in Q3 2020 and had no outstanding borrowings as of September 30, 2020[126](index=126&type=chunk) - The COVID-19 pandemic's impact on liquidity remains uncertain, with potential for continued decreases in elective surgeries and payment delays[134](index=134&type=chunk) [Critical Accounting Estimates](index=30&type=section&id=Critical%20Accounting%20Estimates) This section discusses the critical accounting estimates, specifically focusing on the allowance for expected credit losses and the significant judgments involved in its estimation - The allowance for expected credit losses, following ASU 2016-13 adoption, represents the uncollectible portion of receivables over their contractual life, considering past events, current conditions, and future economic forecasts[148](index=148&type=chunk) - Estimating ultimate collection involves significant assumptions and judgments, including contractual life, aging, historical collections, and payor reimbursement experience, with quarterly analysis and periodic testing[149](index=149&type=chunk) [Recently Issued Accounting Pronouncements](index=30&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section directs readers to Note 2 for detailed information on recently issued accounting pronouncements - Refer to Note 2 for detailed information regarding the status of recently issued accounting pronouncements[150](index=150&type=chunk) [Non-GAAP Financial Measures](index=31&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the company's use of non-GAAP financial measures to provide enhanced transparency and facilitate financial comparisons - Non-GAAP measures like Constant Currency, EBITDA, and Free Cash Flow are used to provide greater transparency into management's financial and operational decision-making and to facilitate comparisons[152](index=152&type=chunk) - Constant currency adjusts net sales for foreign exchange rate changes, EBITDA is earnings before interest, taxes, depreciation, and amortization, and Free Cash Flow is operating cash flow minus capital expenditures[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the company's market risks since its Form 10-K for the year ended December 31, 2019 - No material changes to market risks were disclosed compared to the Form 10-K for the year ended December 31, 2019[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of September 30, 2020, and reports no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of September 30, 2020[158](index=158&type=chunk) - There were no material changes in internal control over financial reporting during the quarter[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part provides additional information beyond the financial statements, covering legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 of the financial statements for information regarding legal proceedings - Information regarding legal proceedings is incorporated by reference from Note 9 to the Unaudited Condensed Consolidated Financial Statements[160](index=160&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section supplements previously disclosed risk factors, focusing on the ongoing and unpredictable effects of the COVID-19 pandemic, the potential impact of FDA reclassification of bone growth stimulators, and the risks associated with the investment in Neo Medical SA - The COVID-19 pandemic has materially affected the business in 2020, primarily through significant reductions in elective surgery volumes, and is expected to cause further unpredictable effects[162](index=162&type=chunk)[164](index=164&type=chunk) - An FDA panel's recommendation to reclassify bone growth stimulator devices from Class III to Class II could increase future competition and negatively affect sales of these products[169](index=169&type=chunk)[172](index=172&type=chunk) - The company's **$10 million** investment and loan to Neo Medical SA carries the risk of not being recouped if Neo Medical's business is unsuccessful[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that the company did not repurchase any common stock during the third quarter of 2020 - No repurchases of common stock were made during the third quarter of 2020[176](index=176&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there are no applicable defaults upon senior securities - Not applicable[177](index=177&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that there are no applicable mine safety disclosures - Not applicable[178](index=178&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) This section states that there are no other matters to be reported under this heading - No matters to be reported under this heading[179](index=179&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including consulting agreements, certifications, and XBRL documents - Exhibits include consulting agreements, change in control and severance agreements, CEO/CFO certifications (Rule 13a-14(a)/15d-14(a) and Section 1350), and Inline XBRL documents[180](index=180&type=chunk) [SIGNATURES](index=35&type=section&id=SIGNATURES) This section contains the official signatures of the registrant's authorized officers, confirming the filing of the report [Signatures Details](index=35&type=section&id=Signatures%20Details) This section contains the official signatures of the registrant's authorized officers, confirming the filing of the report - The report was signed on November 5, 2020, by Jon Serbousek, President and Chief Executive Officer, Director, and Doug Rice, Chief Financial Officer[184](index=184&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR (Registrant's telephone number, including area code) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Not applicable For the transition period from to . (Former name, former address and former fiscal year, if changed since last report) Commi ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Orthofix Medical Inc.'s unaudited Q1 2020 and 2019 consolidated financial statements are presented, detailing balance sheets, income, equity, cash flows, and notes on operations, acquisitions, and COVID-19 impact [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (U.S. Dollars, in thousands) | Metric (U.S. Dollars, in thousands) | March 31, 2020 | December 31, 2019 | | :---------------------------------- | :------------- | :---------------- | | **Assets** | | | | Total current assets | $239,995 | $260,553 | | Property, plant and equipment, net | $64,836 | $62,727 | | Intangible assets, net | $58,770 | $54,139 | | Goodwill | $82,646 | $71,177 | | Total assets | $493,490 | $495,620 | | **Liabilities** | | | | Total current liabilities | $65,961 | $84,883 | | Total liabilities | $138,121 | $167,989 | | **Shareholders' Equity** | | | | Total shareholders' equity | $355,369 | $327,631 | [Condensed Consolidated Statements of Income and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (U.S. Dollars, in thousands, except per share data) | Metric (U.S. Dollars, in thousands, except per share data) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change (YoY) | | :--------------------------------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Net sales | $104,823 | $109,112 | -3.9% | | Gross profit | $81,414 | $85,404 | -4.7% | | Operating income (loss) | $6,854 | $(4,448) | +$11,302 | | Income (loss) before income taxes | $5,633 | $(5,109) | +$10,742 | | Net income | $25,665 | $897 | +$24,768 | | Basic Net income per common share | $1.33 | $0.05 | +$1.28 | | Diluted Net income per common share | $1.32 | $0.05 | +$1.27 | | Comprehensive income (loss) | $23,954 | $(1,504) | +$25,458 | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Condensed Consolidated Statements of Changes in Shareholders' Equity (U.S. Dollars, in thousands) | Metric (U.S. Dollars, in thousands) | At December 31, 2019 | At March 31, 2020 | | :---------------------------------- | :------------------- | :---------------- | | Total Shareholders' Equity | $327,631 | $355,369 | | Net income | - | $25,665 | | Other comprehensive loss, net of tax| - | $(1,711) | | Share-based compensation | - | $3,859 | | Common shares issued, net | - | $812 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (U.S. Dollars, in thousands) | Metric (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change (YoY) | | :---------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Net cash from operating activities | $12,464 | $(1,039) | +$13,503 | | Net cash from investing activities | $(24,184) | $(11,316) | -$12,868 | | Net cash from financing activities | $315 | $(10,396) | +$10,711 | | Net change in cash, cash equivalents, and restricted cash | $(12,135) | $(22,981) | +$10,846 | | Cash, cash equivalents, and restricted cash at end of period | $58,268 | $49,208 | +$9,060 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Business, basis of presentation, and COVID-19 update](index=8&type=section&id=1.%20Business,%20basis%20of%20presentation,%20and%20COVID-19%20update) - Orthofix Medical Inc. is a global medical device company specializing in musculoskeletal products and therapies, distributed in over 70 countries[20](index=20&type=chunk) - The COVID-19 pandemic has introduced significant uncertainty, impacting elective surgical procedures, potentially delaying customer payments, disrupting supply chains, and affecting overall financial conditions and liquidity, with the full extent of the impact still uncertain[24](index=24&type=chunk) - The CARES Act provided a **$3.0 million benefit** to the Company's Q1 2020 financial statements due to a beneficial rate difference on a potential federal loss carryback[25](index=25&type=chunk)[26](index=26&type=chunk) [Note 2. Recently adopted accounting standards and recently issued accounting pronouncements](index=9&type=section&id=2.%20Recently%20adopted%20accounting%20standards%20and%20recently%20issued%20accounting%20pronouncements) - The Company adopted ASU 2016-13 (Credit Losses) effective January 1, 2020, increasing the allowance for expected credit losses by **$1.1 million** and decreasing retained earnings by **$0.9 million**[27](index=27&type=chunk)[63](index=63&type=chunk) - ASU 2017-04 (Goodwill Impairment) was adopted prospectively, simplifying goodwill impairment measurement without immediate financial statement impact[28](index=28&type=chunk) - ASU 2020-04 (Reference Rate Reform) was adopted prospectively, providing temporary guidance for the transition away from LIBOR, with no material immediate financial impact but expected to affect future borrowing rates[31](index=31&type=chunk) - The Company is currently evaluating the impact of ASU 2019-12 (Simplifying the accounting for income taxes), effective January 1, 2021[33](index=33&type=chunk) [Note 3. Acquisitions](index=10&type=section&id=3.%20Acquisitions) - On March 26, 2020, Orthofix acquired assets related to the FITBONE intramedullary lengthening system from Wittenstein SE for **$18 million in cash**, recorded as a business combination[34](index=34&type=chunk) Acquired Asset (U.S. Dollars, in thousands) | Acquired Asset (U.S. Dollars, in thousands) | Fair Value | | :------------------------------------------ | :--------- | | Inventories | $528 | | Developed technology | $4,500 | | Customer relationships | $800 | | Trade name | $600 | | In-process research and development (IPR&D) | $440 | | Goodwill | $11,132 | | Total fair value of consideration transferred | $18,000 | - The acquisition resulted in **$11.1 million in goodwill**, assigned to the Global Extremities segment and expected to be tax-deductible[36](index=36&type=chunk) [Note 4. Inventories](index=11&type=section&id=4.%20Inventories) Inventory Category (U.S. Dollars, in thousands) | Inventory Category (U.S. Dollars, in thousands) | March 31, 2020 | December 31, 2019 | | :---------------------------------------------- | :------------- | :---------------- | | Raw materials | $7,479 | $9,587 | | Work-in-process | $10,618 | $14,027 | | Finished products | $35,242 | $20,712 | | Field/consignment | $29,405 | $38,071 | | Total Inventories | $82,744 | $82,397 | [Note 5. Leases](index=11&type=section&id=5.%20Leases) Lease Metric (U.S. Dollars, in thousands) | Lease Metric (U.S. Dollars, in thousands) | March 31, 2020 | December 31, 2019 | | :---------------------------------------- | :------------- | :---------------- | | Total Right-of-use assets | $27,441 | $26,005 | | Total lease liabilities | $28,516 | $26,930 | - In March 2020, the Company entered into a Contract Manufacturing and Supply Agreement (CMSA) with Wittenstein for the FITBONE product line, accounted for as a finance lease, resulting in a **$1.9 million lease finance liability** and related ROU asset[42](index=42&type=chunk)[43](index=43&type=chunk) [Note 6. Other current liabilities](index=12&type=section&id=6.%20Other%20current%20liabilities) - As of March 31, 2020, the Company had a **$4.4 million liability** related to a U.S. restructuring plan initiated in December 2019, which included personnel realignment and severance payments, with an additional **$1.2 million accrual** in Q1 2020 for a former executive's departure[44](index=44&type=chunk) [Note 7. Long-term debt](index=12&type=section&id=7.%20Long-term%20debt) - As of March 31, 2020, Orthofix had no borrowings under its **$300 million secured revolving credit facility** or its **€5.5 million lines of credit** in Italy, and was in compliance with all financial covenants[45](index=45&type=chunk) - Subsequent to quarter-end, on April 16, 2020, the Company borrowed **$100.0 million** under its secured revolving credit facility as a precautionary measure to increase cash position and preserve financial flexibility due to COVID-19 uncertainty[46](index=46&type=chunk) [Note 8. Fair value measurements and investments](index=12&type=section&id=8.%20Fair%20value%20measurements%20and%20investments) Liability (U.S. Dollars, in thousands) | Liability (U.S. Dollars, in thousands) | March 31, 2020 | December 31, 2019 | | :------------------------------------- | :------------- | :---------------- | | Contingent consideration | $(33,700) | $(42,700) | | Deferred compensation plan | $(1,235) | $(1,255) | | Total Liabilities | $(34,935) | $(43,955) | - The estimated fair value of the remaining contingent consideration for the Spinal Kinetics acquisition was **$33.7 million** as of March 31, 2020, a decrease of **$9.0 million** from December 31, 2019, primarily due to the impact of COVID-19 on future net sales forecasts[49](index=49&type=chunk)[50](index=50&type=chunk) [Note 9. Contingencies](index=14&type=section&id=9.%20Contingencies) - The Company accrued **$5.2 million** related to the Italian Medical Device Payback (IMDP) as of March 31, 2020, with significant judgment involved due to uncertainties in the law's implementation[58](index=58&type=chunk) - Approximately **$0.5 million of cash in Brazil** was reclassified to restricted cash due to an ongoing legal dispute with a former distributor, with an accrual of **$1.3 million** related to this matter as of March 31, 2020[59](index=59&type=chunk) [Note 10. Accumulated other comprehensive loss](index=14&type=section&id=10.%20Accumulated%20other%20comprehensive%20loss) Metric (U.S. Dollars, in thousands) | Metric (U.S. Dollars, in thousands) | Balance at December 31, 2019 | Other comprehensive loss | Balance at March 31, 2020 | | :---------------------------------- | :--------------------------- | :----------------------- | :------------------------ | | Currency Translation Adjustments | $(3,039) | $(1,711) | $(4,750) | | Total Accumulated Other Comprehensive Loss | $(3,039) | $(1,711) | $(4,750) | [Note 11. Revenue recognition and accounts receivable](index=14&type=section&id=11.%20Revenue%20recognition%20and%20accounts%20receivable) Product Category (U.S. Dollars, in thousands) | Product Category (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change (YoY) | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Bone Growth Therapies | $45,443 | $47,283 | -3.9% | | Spinal Implants | $22,926 | $22,903 | 0.1% | | Biologics | $13,949 | $15,732 | -11.3% | | Global Spine Total | $82,318 | $85,918 | -4.2% | | Global Extremities | $22,505 | $23,194 | -3.0% | | Net sales Total | $104,823 | $109,112 | -3.9% | Net Sales Component (U.S. Dollars, in thousands) | Net Sales Component (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :----------------------------------------------- | :-------------------------------- | :-------------------------------- | | Product sales | $91,421 | $93,934 | | Marketing service fees | $13,402 | $15,178 | | Total Net sales | $104,823 | $109,112 | Allowance for Expected Credit Losses (U.S. Dollars, in thousands) | Allowance for Expected Credit Losses (U.S. Dollars, in thousands) | 2020 | | :---------------------------------------------------------------- | :--- | | Balance at December 31, 2019 | $3,987 | | Impact of adoption of ASU 2016-13 | $1,120 | | Current period provision for expected credit losses | $679 | | Writeoffs charged against the allowance and other | $(114) | | Effect of changes in foreign exchange rates | $(81) | | Balance at March 31, 2020 | $5,591 | [Note 12. Business segment information](index=16&type=section&id=12.%20Business%20segment%20information) Segment EBITDA (U.S. Dollars, in thousands) | Segment EBITDA (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Global Spine | $22,417 | $10,575 | | Global Extremities | $(1,894) | $(173) | | Corporate | $(8,140) | $(9,527) | | Total EBITDA | $12,383 | $875 | Net Sales by Geography (U.S. Dollars, in thousands) | Net Sales by Geography (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :-------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Global Spine U.S. | $77,106 | $79,526 | | Global Spine International | $5,212 | $6,392 | | Global Extremities U.S. | $6,043 | $6,598 | | Global Extremities International | $16,462 | $16,596 | | Consolidated U.S. | $83,149 | $86,124 | | Consolidated International | $21,674 | $22,988 | | Total Net sales | $104,823 | $109,112 | [Note 13. Acquisition-related amortization and remeasurement](index=17&type=section&id=13.%20Acquisition-related%20amortization%20and%20remeasurement) Component (U.S. Dollars, in thousands) | Component (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :------------------------------------- | :-------------------------------- | :-------------------------------- | | Changes in fair value of contingent consideration | $(9,000) | $5,400 | | Amortization of acquired intangibles | $1,418 | $1,057 | | Total | $(7,582) | $6,457 | [Note 14. Share-based compensation](index=17&type=section&id=14.%20Share-based%20compensation) Expense Category (U.S. Dollars, in thousands) | Expense Category (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Cost of sales | $181 | $187 | | Sales and marketing | $696 | $610 | | General and administrative | $2,530 | $4,564 | | Research and development | $452 | $324 | | Total Share-based compensation | $3,859 | $5,685 | Share-based Compensation Type (U.S. Dollars, in thousands) | Share-based Compensation Type (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Stock options | $304 | $2,112 | | Time-based restricted stock awards and units | $2,421 | $1,706 | | Market-based restricted stock units | $670 | $1,347 | | Stock purchase plan | $464 | $520 | | Total | $3,859 | $5,685 | [Note 15. Income taxes](index=18&type=section&id=15.%20Income%20taxes) Income Tax Metric | Income Tax Metric | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :---------------- | :-------------------------------- | :-------------------------------- | | Effective tax rate| (355.6%) | 117.6% | - The effective tax rate for Q1 2020 was significantly impacted by a **$17.8 million net benefit** from statute expirations related to unrecognized tax benefits and anticipated benefits from the CARES Act[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Note 16. Earnings per share ("EPS")](index=18&type=section&id=16.%20Earnings%20per%20share%20(%22EPS%22)) Weighted Average Common Shares | Weighted Average Common Shares | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :----------------------------- | :-------------------------------- | :-------------------------------- | | Basic | 19,143,934 | 18,750,184 | | Diluted | 19,299,820 | 19,191,146 | [Note 17. Subsequent Events](index=19&type=section&id=17.%20Subsequent%20Events) - In April 2020, the Company received **$13.9 million** from the CMS Accelerated and Advance Payment Program and **$4.7 million** from the CARES Act Provider Relief Fund, both subject to repayment or eligibility criteria[81](index=81&type=chunk)[82](index=82&type=chunk) - As precautionary measures due to COVID-19, the Company borrowed **$100.0 million** from its credit facility, initiated temporary salary reductions for U.S. employees and the Board, and suspended its 401(k) match program until September 30, 2020[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Orthofix's Q1 2020 financial performance and condition, focusing on COVID-19's impact on operations, sales, liquidity, revenue, expenses, and cash flows [Executive Summary](index=20&type=section&id=Executive%20Summary) - Orthofix is a global medical device company focused on musculoskeletal products and therapies, distributing in over 70 countries[87](index=87&type=chunk) - Q1 2020 highlights include net sales of **$104.8 million** (-3.9%), net income of **$25.7 million** (+$24.8 million YoY), and an **$11.5 million increase in EBITDA**, largely due to reduced acquisition-related remeasurement expenses[90](index=90&type=chunk) - The Company completed the acquisition of assets for the FITBONE intramedullary lengthening system on March 26, 2020[90](index=90&type=chunk) [COVID-19 Update and Outlook](index=20&type=section&id=COVID-19%20Update%20and%20Outlook) - The COVID-19 pandemic has created significant uncertainty, impacting elective surgical procedures, capital markets, and potentially leading to economic recession, which could materially affect the Company's business, operations, and liquidity[89](index=89&type=chunk) - Future results and liquidity are expected to be materially impacted by decreased elective surgeries, potential payment delays from customers, supply chain disruptions, and extended 'shelter in place' orders[89](index=89&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Metric (as % of net sales) | Metric (as % of net sales) | Three Months Ended March 31, 2020 (%) | Three Months Ended March 31, 2019 (%) | | :------------------------- | :------------------------------------ | :------------------------------------ | | Net sales | 100.0 | 100.0 | | Cost of sales | 22.3 | 21.7 | | Gross profit | 77.7 | 78.3 | | Sales and marketing | 51.8 | 49.2 | | General and administrative | 17.0 | 18.8 | | Research and development | 9.5 | 8.5 | | Acquisition-related amortization and remeasurement | (7.2) | 5.9 | | Operating income (loss) | 6.6 | (4.1) | | Net income | 24.5 | 0.8 | Metric (U.S. Dollars, in thousands) | Metric (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | % Change | | :---------------------------------- | :-------------------------------- | :-------------------------------- | :------- | | Gross profit | $81,414 | $85,404 | (4.7%) | | Sales and marketing | $54,313 | $53,694 | 1.2% | | General and administrative | $17,865 | $20,472 | (12.7%) | | Research and development | $9,964 | $9,229 | 8.0% | | Acquisition-related amortization and remeasurement | $(7,582) | $6,457 | (217.4%) | | Interest expense, net | $(423) | $(257) | 64.6% | | Other expense, net | $(798) | $(404) | 97.5% | | Income tax expense (benefit) | $(20,032) | $(6,006) | 233.5% | - Gross profit decreased by **$4.0 million** due to lower net sales and increased inventory reserve expense, both impacted by COVID-19[96](index=96&type=chunk) - General and administrative expense decreased by **$2.6 million**, primarily due to lower succession and transition charges for executive officers and reduced strategic investment expenses[99](index=99&type=chunk) - Acquisition-related amortization and remeasurement decreased by **$14.0 million**, mainly due to a **$13.0 million reduction** in the fair value of contingent consideration for the Spinal Kinetics acquisition, driven by COVID-19's impact on future revenue forecasts[101](index=101&type=chunk)[103](index=103&type=chunk) [Net Sales by Product Category and Reporting Segment](index=21&type=section&id=Net%20Sales%20by%20Product%20Category%20and%20Reporting%20Segment) Product Category (U.S. Dollars, in thousands) | Product Category (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Reported Change | Constant Currency Change | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | :-------------- | :----------------------- | | Bone Growth Therapies | $45,443 | $47,283 | (3.9%) | (3.9%) | | Spinal Implants | $22,926 | $22,903 | 0.1% | 0.5% | | Biologics | $13,949 | $15,732 | (11.3%) | (11.3%) | | Global Spine Total | $82,318 | $85,918 | (4.2%) | (4.1%) | | Global Extremities | $22,505 | $23,194 | (3.0%) | (0.6%) | | Net sales Total | $104,823 | $109,112 | (3.9%) | (3.4%) | - Global Spine net sales decreased by **4.2%**, primarily due to a **3.9% decrease** in Bone Growth Therapies (COVID-19 impact on order volume) and an **11.3% decrease** in Biologics (loss of key distributor and COVID-19 impact) while Spinal Implants remained flat with Motion Preservation growth offset by declines in legacy Spine Fixation due to COVID-19[92](index=92&type=chunk)[93](index=93&type=chunk) - Global Extremities net sales decreased by **3.0%**, with a **$0.5 million negative impact** from foreign currency exchange rates and a **$0.6 million decrease** in U.S. sales due to COVID-19, partially offset by a **$0.4 million increase** in international sales (excluding currency effects)[93](index=93&type=chunk)[94](index=94&type=chunk) [Segment Review (EBITDA)](index=24&type=section&id=Segment%20Review) Segment EBITDA (U.S. Dollars, in thousands) | Segment EBITDA (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Global Spine | $22,417 | $10,575 | | Global Extremities | $(1,894) | $(173) | | Corporate | $(8,140) | $(9,527) | | Total EBITDA | $12,383 | $875 | [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) Cash Flow Activity (U.S. Dollars, in thousands) | Cash Flow Activity (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Net cash from operating activities | $12,464 | $(1,039) | $13,503| | Net cash from investing activities | $(24,184) | $(11,316) | $(12,868)| | Net cash from financing activities | $315 | $(10,396) | $10,711| | Net change in cash, cash equivalents and restricted cash | $(12,135) | $(22,981) | $10,846| Free Cash Flow (U.S. Dollars, in thousands) | Free Cash Flow (U.S. Dollars, in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | | Net cash from operating activities | $12,464 | $(1,039) | $13,503| | Capital expenditures | $(4,944) | $(4,916) | $(28) | | Free cash flow | $7,520 | $(5,955) | $13,475| - Cash, cash equivalents, and restricted cash decreased to **$58.3 million** at March 31, 2020, from **$70.4 million** at December 31, 2019, primarily due to the **$18.0 million cash payment** for the FITBONE acquisition[106](index=106&type=chunk) - Operating cash flows increased by **$13.5 million**, driven by a **$24.8 million increase** in net income and a **$3.5 million increase** from working capital changes, partially offset by a **$14.7 million net decrease** from non-cash gains/losses (contingent consideration fair value changes)[108](index=108&type=chunk) - Investing cash flows decreased by **$12.9 million**, mainly due to the **$18.0 million cash payment** for the FITBONE acquisition, partially offset by a **$5.2 million change** in cash paid for former distributor asset acquisitions[109](index=109&type=chunk)[116](index=116&type=chunk) - Financing cash flows increased by **$10.7 million**, primarily due to a **$13.7 million increase** from the payment of the Spinal Kinetics FDA Milestone in Q1 2019, offset by a **$3.2 million decrease** in net proceeds from common share issuance[109](index=109&type=chunk)[116](index=116&type=chunk) - The Company borrowed **$100.0 million** under its secured revolving credit facility in April 2020 as a precautionary measure to enhance liquidity amidst COVID-19 uncertainty[110](index=110&type=chunk)[116](index=116&type=chunk) [Critical Accounting Estimates](index=26&type=section&id=Critical%20Accounting%20Estimates) - The primary change to critical accounting estimates is the adoption of ASU 2016-13, which now requires the allowance for expected credit losses to represent the portion of receivables not expected to be collected over their contractual life, considering past events, current conditions, and future economic forecasts[125](index=125&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) - The Company uses non-GAAP measures like Constant Currency (net sales without foreign currency impact), EBITDA (earnings before interest, taxes, depreciation, and amortization), and Free Cash Flow (net cash from operating activities minus capital expenditures) to provide transparency and facilitate comparisons of underlying operating performance[128](index=128&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the Company's market risks were reported compared to the 2019 Form 10-K disclosure - No material changes to market risks were reported compared to the 2019 Form 10-K[133](index=133&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, deemed disclosure controls effective as of March 31, 2020, with no material changes to internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2020[134](index=134&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[135](index=135&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference from Note 9 of the unaudited condensed consolidated financial statements - Legal proceedings information is referenced from Note 9 of the financial statements[137](index=137&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors from the 2019 Form 10-K highlight COVID-19's significant negative impact on business, operations, and financial condition, and potential increased competition from FDA down-classification of bone growth stimulators [COVID-19 Impact on Business and Operations](index=29&type=section&id=COVID-19%20Impact%20on%20Business%20and%20Operations) - The COVID-19 pandemic has caused significant disruptions, including postponement of non-essential surgeries, telework mandates, and global economic uncertainty, leading to decreased revenues and lower EPS in Q1 2020, with expected continued negative impacts[140](index=140&type=chunk)[142](index=142&type=chunk) - The severity, magnitude, and duration of COVID-19's impact are uncertain, potentially affecting supplier/distributor relationships, manufacturing, product shipments, customer spending, and employee access to facilities[142](index=142&type=chunk)[143](index=143&type=chunk) - The pandemic could heighten other risks, such as the need to generate sufficient cash flows for indebtedness and the ability to protect IT networks in a remote working environment[144](index=144&type=chunk) [Inability to Access Funding or the Terms on which such Funding is Available](index=30&type=section&id=Inability%20to%20Access%20Funding%20or%20the%20Terms%20on%20which%20such%20Funding%20is%20Available) - Due to COVID-19 uncertainty, the Company borrowed **$100 million** under its **$300 million secured revolving credit facility** in April 2020 to preserve cash for operations and strategic initiatives[146](index=146&type=chunk) - The credit agreement contains financial covenants (total net leverage ratio, interest coverage ratio) that the Company must maintain, and failure to do so could result in an event of default and acceleration of loans[148](index=148&type=chunk)[149](index=149&type=chunk) - Market dislocations from COVID-19 could lead lenders to become unwilling or unable to provide financing, potentially increasing financing costs or limiting access to funds, materially affecting financial condition[150](index=150&type=chunk) [Potential Down Classification of Bone Growth Stimulator Devices](index=30&type=section&id=Potential%20Down%20Classification%20of%20Bone%20Growth%20Stimulator%20Devices) - The FDA is considering reclassifying Class III bone growth stimulator products to Class II, which could increase future competition and negatively affect sales of Orthofix's market-leading products in this category[151](index=151&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) - The FDA had previously maintained Class III status in 2006 for safety and efficacy reasons, and the Company intends to oppose the down classification at the rescheduled Advisory Committee panel meeting[153](index=153&type=chunk)[154](index=154&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company did not repurchase any of its common stock during the first quarter of 2020 - No repurchases of common stock were made during Q1 2020[155](index=155&type=chunk) [Item 3. Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the current report - Not applicable[156](index=156&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the current report - Not applicable[157](index=157&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) There are no other matters to be reported under this heading - No other information to report[158](index=158&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications, and Inline XBRL documents Exhibit List | Exhibit Number | Description | | :------------- | :---------- | | 31.1* | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer | | 31.2* | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer | | 32.1* | Section 1350 Certifications of each of the Chief Executive Officer and Chief Financial Officer | | 101.INS* | Inline XBRL Instance Document | | 101.SCH* | Inline XBRL Taxonomy Extension Schema Document | | 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | | 101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | | 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | 104* | Cover Page Interactive Data File | SIGNATURES [Signatures](index=33&type=section&id=SIGNATURES) The report was duly signed on behalf of Orthofix Medical Inc. by its President and CEO, Jon Serbousek, and CFO, Doug Rice, on May 8, 2020 - The report was signed by Jon Serbousek, President and CEO, and Doug Rice, CFO, on May 8, 2020[165](index=165&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 0-19961 ORTHOFIX MEDICAL INC. (Exact name of registrant as specified in its charter) Delaware 98-1340767 (State or other jurisdiction of incorporat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 0-19961 ORTHOFIX MEDICAL INC. Washington, DC 20549 (Exact name of registrant as specified in its charter) FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 (Registrant's telephone number, including ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from to . Commission File Number: 0-19961 ORTHOFIX MEDICAL INC. (Exact name of registrant as specified in its charter) Washington, DC 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 98-1340767 (State or other jurisdictio ...