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 - Total net sales for the three months ended September 30, 2024, were $196.606 million, an increase of 6.5% compared to $184.006 million for the same period in 2023[9] - Gross profit for the nine months ended September 30, 2024, was $397.044 million, representing a 13.5% increase from $349.643 million for the same period in 2023[9] - The company reported a net loss of $27.388 million for the three months ended September 30, 2024, compared to a net loss of $28.857 million for the same period in 2023, indicating a reduction in losses[9] - Net sales for the three months ended September 30, 2024, reached $196,606 thousand, a 6.8% increase from $184,006 thousand in the same period of 2023[42] - Net sales for the nine months ended September 30, 2024, reached $583,834 thousand, up 6.9% from $546,226 thousand in the prior year[51] - Adjusted EBITDA for the three months ended September 30, 2024, was $30,066 thousand, compared to $23,070 thousand in the same period of 2023, reflecting a significant increase[48] Assets and Liabilities - Total current assets decreased to $386.214 million as of September 30, 2024, down from $420.443 million as of December 31, 2023, reflecting a decline of approximately 8.1%[6] - Total liabilities increased to $341.948 million as of September 30, 2024, compared to $326.585 million as of December 31, 2023, marking an increase of about 4.7%[7] - The company’s total assets decreased to $867.872 million as of September 30, 2024, from $925.315 million as of December 31, 2023, a decline of approximately 6.2%[6] - The Company’s total indebtedness increased from $94.4 million on December 31, 2023, to $118.5 million on September 30, 2024[25] Shareholder Equity and Shares - Total shareholders' equity as of September 30, 2023, was $615,483 thousand, a decrease from $639,985 thousand as of June 30, 2023[11] - Common shares outstanding increased to 36,750 thousand as of September 30, 2023, from 36,733 thousand as of June 30, 2023[11] - The weighted average number of common shares outstanding for the three months ended September 30, 2024, was 38.488 million, compared to 37.249 million for the same period in 2023[9] - The company reported a total of 38,488 thousand weighted average common shares for basic EPS for the three months ended September 30, 2024, compared to 37,249 thousand in 2023[60] Expenses - Research and development expenses for the three months ended September 30, 2024, were $17.294 million, slightly down from $18.559 million for the same period in 2023[9] - Share-based compensation expense for the nine months ended September 30, 2023, was $25,290 thousand, down from $32,540 thousand for the same period in 2022[12] - Share-based compensation expense for the three months ended September 30, 2024, was $6,531 thousand, slightly up from $6,274 thousand in the same period of 2023[54] Cash Flow - Cash provided by operating activities was $2,060 thousand for the nine months ended September 30, 2023, compared to cash used in operating activities of $39,059 thousand for the same period in 2022[12] - The company reported a cash balance of $30,054 thousand at the end of the period, down from $33,663 thousand at the beginning of the period[12] Acquisitions and Mergers - The Company completed an all-stock merger with SeaSpine on January 5, 2023, converting each share of SeaSpine common stock into 0.4163 shares of Orthofix common stock[19] - The fair value of identifiable assets acquired from SeaSpine was $377.4 million, with net identifiable assets acquired totaling $253.1 million[20] - SeaSpine generated net sales of $72.1 million and $214.1 million for the three and nine months ended September 30, 2024, respectively, compared to $62.9 million and $188.2 million for the same periods in 2023[20] Legal Matters - The Company is involved in various lawsuits, including arbitration claims from former executives, but believes any potential losses are immaterial[36] - The Company has received securities class action complaints alleging violations of the Securities Exchange Act, but intends to defend against these claims vigorously[37][38] Accounting Changes - The company adopted ASU 2022-03 effective January 1, 2024, which clarifies fair value measurement for equity securities subject to contractual sale restrictions[15] - The company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements, which enhances income tax disclosures[18] Market Performance - The U.S. market contributed $166,640 thousand to consolidated net sales for the three months ended September 30, 2024, compared to $153,246 thousand in the same period of 2023[50] - Global Spine segment net sales were $166,104 thousand, up 7.6% from $154,352 thousand year-over-year, driven by Bone Growth Therapies and Spinal Implants[42] - The Global Orthopedics segment reported net sales of $30,502 thousand, a 2.9% increase from $29,654 thousand year-over-year[42] Other Financial Metrics - The allowance for expected credit losses at the end of September 30, 2024, was $7,878 thousand, compared to $7,090 thousand at the end of September 30, 2023[44] - The Company experienced a write-off of $1,118 thousand against the allowance for expected credit losses during the three months ended September 30, 2024[44] - The Company recorded a loss before income taxes of $(26,637) thousand for the three months ended September 30, 2024, compared to $(28,385) thousand in the same period of 2023[48]

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]

Core Viewpoint - A class action lawsuit has been filed against Orthofix Medical Inc. regarding its acquisition of SeaSpine Holdings Corporation, alleging that the company misled investors about its internal controls and compliance programs during the merger process [1]. Group 1: Allegations and Issues - The complaint claims that Orthofix failed to disclose inadequate internal controls, leading to issues such as lax vetting of executive hires and inappropriate conduct by senior management [1]. - Allegations include prioritization of personal and financial incentives over compliance with laws and regulations, resulting in material misstatements in SEC filings and public disclosures [1]. Group 2: Class Action Participation - Shareholders interested in serving as lead plaintiffs must submit their applications by November 8, 2024, and participation in the case is not required to be eligible for recovery [2]. - All legal representation is on a contingency fee basis, meaning shareholders incur no fees or expenses unless the case is won [2]. Group 3: About Robbins LLP - Robbins LLP is a recognized leader in shareholder rights litigation, having recovered over $1 billion for shareholders since its inception in 2002 [3]. - The firm is dedicated to improving corporate governance and holding executives accountable for wrongdoing [3].

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 ...

Core Viewpoint - The Gross Law Firm is notifying shareholders of Orthofix Medical Inc. regarding a class action lawsuit due to allegations of misleading statements and inappropriate conduct by the management team [1][2]. Group 1: Allegations and Conduct - The allegations state that Orthofix's management engaged in "repeated inappropriate and offensive conduct" that violated the company's code of conduct and was inconsistent with its stated values and culture [2]. - The management had previously assured that they were committed to high ethical and legal standards, promoting a performance-based culture focused on integrity, collaboration, innovation, diversity, and corporate responsibility [2]. Group 2: Class Action Details - The class period for the lawsuit is from October 11, 2022, to September 12, 2023, and shareholders are encouraged to register for participation [2][3]. - The deadline for shareholders to seek lead plaintiff status is October 21, 2024, and there is no cost or obligation to participate in the case [3]. Group 3: Law Firm's Mission - The Gross Law Firm aims to protect the rights of investors who have suffered due to deceit, fraud, and illegal business practices, ensuring companies adhere to responsible business practices [4].

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 ...

Core Viewpoint - A class action has been filed against Orthofix Medical Inc. regarding its acquisition of SeaSpine Holdings Corporation, alleging that the company misled investors about its internal controls and compliance programs during the merger process [1][2]. Group 1: Allegations and Issues - The complaint claims that Orthofix failed to disclose inadequate internal controls and deficient compliance and training programs, leading to issues such as lax vetting of executive hires and inappropriate conduct by senior management [2]. - Allegations include prioritization of personal and financial incentives over compliance with laws and regulations, as well as failure to ensure that SEC filings and public disclosures were free of material misstatements [2]. Group 2: Class Action Participation - Shareholders interested in serving as lead plaintiffs must submit their applications by November 8, 2024, and participation in the case is not required to be eligible for recovery [3]. - The law firm Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [4]. Group 3: Company Background - Robbins LLP has been active in shareholder rights litigation since 2002 and has recovered over $1 billion for shareholders [4].