Financial Performance - Fourth quarter 2024 net sales reached $215.7 million, an increase of 8% year-over-year on a reported and constant currency basis[3] - Full-year 2024 net sales totaled $799.5 million, reflecting a 7% increase compared to 2023[4] - The net loss for the fourth quarter 2024 was $(29.1) million, with an EPS of $(0.75), a decline of 27% compared to the prior year[3] - Non-GAAP adjusted EBITDA for the fourth quarter was $23.9 million, representing a 22% growth year-over-year[3] - The company reported record Bone Growth Therapies net sales of $63.9 million, a 9% increase compared to the fourth quarter of 2023[5] - U.S. Spine Fixation net sales grew by 12% in the fourth quarter 2024, driven by distribution expansion[5] - Net sales for Q4 2024 reached $215,657,000, a 7.3% increase from $200,415,000 in Q4 2023[22] - Gross profit for the year ended December 31, 2024, was $545,885,000, up 12.2% from $486,273,000 in 2023[22] - Adjusted EBITDA for Q4 2024 was $23,938,000, representing 11.1% of net sales, compared to 9.8% in Q4 2023[28] - The net loss for Q4 2024 was $29,147,000, compared to a net loss of $22,174,000 in Q4 2023[22] - Free cash flow for the year ended December 31, 2024, was $(9,086,000), an improvement from $(107,803,000) in 2023[30] Future Projections - The company expects full-year 2025 net sales to range between $818 million to $826 million, implying constant currency growth of 6.5% year-over-year at the midpoint[12] - Non-GAAP adjusted EBITDA for 2025 is projected to be between $82 million to $86 million, including the impact from the discontinuation of the M6 product lines[12] - Free cash flow is expected to be positive for full-year 2025, excluding restructuring charges related to the discontinued M6 product lines[12] - The long-term net sales CAGR target has been increased to 6.5% to 7.5% from the previous target of 6% to 7%[12] Expenses and Costs - Research and development expenses for the year were $73,643,000, down from $80,231,000 in 2023[22] - Sales, general, and administrative expenses for Q4 2024 were $136,479,000, compared to $132,284,000 in Q4 2023, reflecting an increase of 1.6%[31] - Adjusted sales, general, and administrative expenses as a percentage of net sales decreased to 58.7% in Q4 2024 from 60.0% in Q4 2023[31] - Research and development expenses for Q4 2024 were reported at $18,807,000, slightly down from $18,941,000 in Q4 2023[32] - Adjusted research and development expenses as a percentage of net sales decreased to 8.1% in Q4 2024 from 8.3% in Q4 2023[32] - Total sales, general, and administrative expenses for the year ended December 31, 2024, were $532,525,000, slightly up from $530,395,000 in 2023[31] Cash and Assets - Cash and cash equivalents increased to $83,238,000 in 2024 from $33,107,000 in 2023[24] - Total assets decreased to $893,294,000 in 2024 from $925,315,000 in 2023[24] - Long-term debt increased to $157,015,000 in 2024 from $93,107,000 in 2023[24] Non-Operating Expenses - Non-operating expenses for Q4 2024 were $18,235,000, significantly higher than $3,734,000 in Q4 2023[33] - Adjusted non-operating expenses as a percentage of net sales increased to 7.0% in Q4 2024 from 2.3% in Q4 2023[33] - The foreign exchange impact on non-operating expenses was $(3,133,000) for Q4 2024[33] Strategic Investments - The company reported a strategic investment impact of $(4,073,000) on sales, general, and administrative expenses for Q4 2024[31]

Financial Data and Key Metrics Changes - The company reported Q3 2024 net sales of $196.6 million, representing a year-over-year growth of 7% on a constant currency basis [11][38] - Adjusted EBITDA for the quarter was $19.2 million, with an adjusted EBITDA margin expansion of approximately 250 basis points [38][44] - Free cash flow generation was $5.9 million, marking a significant improvement over the first half of the year [45] Business Line Data and Key Metrics Changes - Bone Growth Therapies (BGT) revenue grew 9% to $57.9 million in Q3, with a 13% increase in the BGT fracture market [39] - U.S. spine fixation revenue grew 18%, significantly outpacing the market growth rate [12][41] - U.S. Orthopedics business grew 15%, driven by strong performance from TrueLok and Fitbone products [15][41] Market Data and Key Metrics Changes - The global orthopedics business grew 3%, with U.S. growth at 15% while international sales declined by 2% [43] - The company holds over 50% market share in the BGT spine market, indicating strong competitive positioning [40] Company Strategy and Development Direction - The company is focused on innovation and responsible growth, with a clear strategy for profitable growth and long-term shareholder value [10][18] - New financial targets for 2027 were introduced, reflecting confidence in sustainable growth trends and an expanded product portfolio [17][49] - The strategic plan includes enhancing commercial focus, continuing innovation in enabling technology, and ensuring long-term value creation for shareholders [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance and the opportunities ahead, emphasizing a commitment to disciplined profitable growth [18][52] - The company is well-positioned to leverage strategic advantages and maintain positive momentum into 2025 and beyond [11][38] Other Important Information - The company completed a new $275 million financing to optimize its capital structure for long-term growth [45][46] - The company expects to maintain its full-year 2024 guidance for net sales between $795 million and $800 million, representing growth of 6.6% to 7.2% year-over-year [47] Q&A Session Summary Question: What are the key metrics that concern you the most until 2027? - Management highlighted market growth as a key factor to monitor but expressed confidence in achieving targets [55] Question: Is the mid-teens EBITDA target a milestone or a final goal? - Management indicated that the mid-teens EBITDA target is a milestone, not a final goal, and they do not see it as a stopping point [56] Question: How do you view cash generation in the coming years? - Management is focused on cash conversion but wants to maintain flexibility for strategic investments [57] Question: What will sustain above-market growth rates in each segment? - Management pointed to strong market share and the strength of their portfolio as key drivers for sustained growth [59][60] Question: What are the drivers for adjusted EBITDA margin expansion? - Key drivers include gross margin expansion, capturing merger-related synergies, and leveraging higher revenue to improve EBITDA [62] Question: Who are the main customers for the 7D system and how is it utilized? - The main customers are in the spine sector, with increasing demand due to the system's efficiency in the operating room [63][64] Question: Is guidance exclusive of hurricane and IV shortage impacts? - Yes, management confirmed that current guidance does not account for potential impacts from these factors [66]

Group 1 - A class action has been filed on behalf of former SeaSpine Holdings Corporation shareholders who acquired Orthofix Medical Inc. stock in a stock-for-stock transaction on January 5, 2023 [1] - The allegations state that Orthofix misled investors regarding its internal controls and compliance programs, which were reportedly deficient, leading to various issues including harassment and misconduct among senior management [2] - Shareholders interested in serving as lead plaintiffs must submit their applications by November 8, 2024, and can choose to remain absent class members if they do not wish to participate [3] Group 2 - Robbins LLP is a recognized leader in shareholder rights litigation, having recovered over $1 billion for shareholders since its inception in 2002 [5]

Company Performance - Orthofix reported quarterly earnings of $0.07 per share, surpassing the Zacks Consensus Estimate of a loss of $0.14 per share, representing an earnings surprise of 150% [1] - The company posted revenues of $196.61 million for the quarter ended September 2024, aligning with the Zacks Consensus Estimate and showing an increase from $184.01 million year-over-year [2] - Over the last four quarters, Orthofix has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Movement and Outlook - Orthofix shares have increased approximately 36.5% since the beginning of the year, outperforming the S&P 500's gain of 24.3% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $212.65 million, while for the current fiscal year, it is -$0.32 on revenues of $796.45 million [7] Industry Context - The Medical - Instruments industry, to which Orthofix belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Financial Performance - Third quarter 2024 net sales reached $196.6 million, a 7% increase compared to the third quarter of 2023[1] - U.S. Spine Fixation net sales grew by 18% year-over-year, driven by distribution expansion[1] - Non-GAAP adjusted EBITDA for the third quarter was $19.2 million, an increase of $5.7 million, with an adjusted EBITDA margin expansion of approximately 250 basis points[1] - The company reported a net loss of $(27.4) million, improving by 8% compared to the prior year period[1] - Full-year 2024 net sales guidance is maintained at $795 million to $800 million, representing a year-over-year growth of 6.6% to 7.2%[4] - New three-year financial targets include a net sales CAGR of 6% to 7% from 2025 through 2027[2] - The company achieved free cash flow of $5.9 million in the third quarter, indicating significant improvement in cash usage[1] - U.S. Orthopedics recorded a record net sales quarter with a growth of 15% compared to the third quarter of 2023[1] - Bone Growth Therapies net sales grew by 9%, with BGT Fracture net sales increasing by 13% year-over-year[1] Asset and Liability Management - Total assets decreased from $925,315 thousand as of December 31, 2023, to $867,872 thousand as of September 30, 2024, representing a decline of approximately 6.2%[12] - Long-term debt increased from $93,107 thousand as of December 31, 2023, to $112,215 thousand as of September 30, 2024, representing an increase of approximately 20.5%[12] - Total liabilities rose from $326,585 thousand as of December 31, 2023, to $341,948 thousand as of September 30, 2024, marking an increase of about 4.7%[12] - Shareholders' equity decreased from $598,730 thousand as of December 31, 2023, to $525,924 thousand as of September 30, 2024, reflecting a decline of approximately 12.1%[12] Expense Management - Sales and marketing expense for Q3 2024 was reported at $96,576,000, an increase of 1.2% from $94,947,000 in Q3 2023[19] - General and administrative expense for Q3 2024 was reported at $33,561,000, up 23.1% from $27,136,000 in Q3 2023[20] - Research and development expense for Q3 2024 was reported at $17,294,000, a decrease of 6.8% from $18,559,000 in Q3 2023[20] - Non-operating expense for Q3 2024 was reported at $7,738,000, an increase of 96.5% from $3,936,000 in Q3 2023[21] - Adjusted general and administrative expense as a percentage of net sales for Q3 2024 was 11.7%, slightly down from 11.8% in Q3 2023[20] - Adjusted research and development expense as a percentage of net sales for Q3 2024 was 8.8%, down from 8.9% in Q3 2023[20] - Non-operating expense as a percentage of net sales, as adjusted, for Q3 2024 was 2.7%, up from 0.9% in Q3 2023[21] - Strategic investments impacted sales and marketing expense by $65,000 in Q3 2024, compared to $(1,680,000) in Q3 2023[19] - Litigation and investigation costs impacted general and administrative expense by $(8,712,000) in Q3 2024, compared to $(3,852,000) in Q3 2023[20] Cash Flow - Net cash from operating activities for the nine months ended September 30, 2024, was $2,060 thousand, a recovery from a net cash outflow of $(39,059) thousand for the same period in 2023[17] - Free cash flow for the nine months ended September 30, 2024, was $(24,285) thousand, an improvement from $(86,056) thousand for the same period in 2023[18] Credit and Financing - The company announced a new $275 million credit facility to optimize its capital structure for long-term growth[1]

SAN DIEGO, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of former SeaSpine Holdings Corporation shareholders that purchased or otherwise acquired newly issued Orthofix Medical Inc. (NASDAQ: OFIX) stock in exchange for SeaSpine shares pursuant to the January 5, 2023 stock-for-stock transaction by which Orthofix merged with and acquires SeaSpine. Orthofix is a global spine and orthopedics company that offers biologics, spinal hardware, bone ...

NEW YORK, Oct. 14, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Orthofix Medical Inc. (NASDAQ: OFIX). Shareholders who purchased shares of OFIX during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/orthofix-loss-submission-form/?id=107858&from=4 CLASS PERIOD: October 11, 2022 t ...

SAN FRANCISCO, Oct. 11, 2024 (GLOBE NEWSWIRE) -- The notice originally published on September 10, 2024, incorrectly stated that the filing deadline for lead plaintiff motions is November 8, 2024. The correct filing deadline for lead plaintiff motions is November 12, 2024. This correction is reflected in the corrected notice below. Girard Sharp LLP and The Hall Firm, Ltd., both national law firms specializing in complex class actions and shareholder rights, announce they have filed a class action lawsuit for ...

NEW YORK, Oct. 10, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Orthofix Medical Inc. (NASDAQ: OFIX). Shareholders who purchased shares of OFIX during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/orthofix-loss-submission-form/?id=107498&from=4 CLASS PERIOD: October 11, 2022 t ...

SAN DIEGO, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of former SeaSpine Holdings Corporation shareholders that purchased or otherwise acquired newly issued Orthofix Medical Inc. (NASDAQ: OFIX) stock in exchange for SeaSpine shares pursuant to the January 5, 2023 stock-for-stock transaction by which Orthofix merged with and acquires SeaSpine. Orthofix is a global spine and orthopedics company that offers biologics, spinal hardware, bone ...