Core Viewpoint - ZimVie Inc. has entered into a definitive agreement to be acquired by ARCHIMED, an investment firm focused on healthcare industries, for $19.00 per share, representing a 99% premium over its recent trading price, with an enterprise value of approximately $730 million [2][3]. Company Overview - ZimVie is a global leader in the dental implant market, developing and delivering a comprehensive portfolio of products aimed at supporting dental tooth replacement and restoration procedures [8]. - The company is headquartered in Palm Beach Gardens, Florida, and is committed to advancing clinical science and technology in the dental sector [8]. Acquisition Details - Under the merger agreement, ZimVie stockholders will receive $19.00 in cash for each share, with the transaction expected to close by year-end 2025, pending customary closing conditions [2][4]. - The Board of Directors of ZimVie has unanimously approved the transaction, which is not subject to a financing condition [4]. - Upon completion, ZimVie will become a privately held company, and its shares will no longer be listed on NASDAQ [5]. Strategic Implications - The acquisition is expected to provide ZimVie with the strategic and financial backing necessary to expand its innovative dental technology globally [3]. - ARCHIMED views ZimVie as having strong fundamentals and compelling growth potential, indicating a positive outlook for the company's future [3]. Go-Shop Period - ZimVie has a 40-day go-shop period during which it can solicit proposals from third parties, ending on August 29, 2025 [6]. - There is no assurance that this solicitation process will yield a superior proposal [6]. Advisory Roles - Centerview Partners is serving as the exclusive financial advisor to ZimVie, while UBS Investment Bank is the exclusive financial advisor to ARCHIMED [7].

Core Insights - The article discusses the author's background in investment management and their approach to analyzing stocks, emphasizing the importance of due diligence in identifying investment opportunities [1]. Group 1 - The author has spent five years as a co-founder and CIO of a hedge fund, indicating significant experience in managing investment portfolios [1]. - Prior to this role, the author worked as a hedge fund analyst and portfolio manager at a leading Canadian alternative asset manager, showcasing a strong foundation in investment analysis [1]. - The article serves as a platform for the author to express personal opinions on stocks of interest, highlighting a commitment to independent research [1].

Core Insights - ZimVie Inc. has launched its RealGUIDE Software Suite and Implant Concierge service in Japan, enhancing access to a digital dental implant ecosystem [1][2] - The Japanese dental implant market is significant, representing ZimVie's largest market in the APAC region [1] Product Offerings - RealGUIDE software provides comprehensive tools for precise implant planning, surgical guides, and restorative design, aimed at improving patient care and operational efficiencies [2] - The software is the first complete cloud-based solution of its kind, consisting of multiple modules for thorough diagnosis and advanced design [2] - Implant Concierge is a virtual outsourcing service that simplifies implant treatment planning and guided surgery, designed for high-volume practices [3] Market Opportunity - The rising adoption of dental implants presents a substantial growth opportunity, necessitating more efficient and integrated treatment workflows [4] - Digital dentistry is becoming the new standard in implantology, with ZimVie experiencing strong traction in other markets [4]

Summary of Zimvi's Conference Call Company Overview - **Company**: Zimvi - **Industry**: Dental Implants and Digital Dentistry - **Key Products**: TSX implant, T3 Pro implant, Real Guide software, Implant Concierge, Puros Allografts, Immediate Molar Implant Core Points and Arguments 1. **Market Opportunity**: In the U.S., there are approximately 8 million candidates for tooth replacement, but only 25% receive dental implants, indicating significant growth potential in the market [4][5][6] 2. **Adoption and Education**: Zimvi focuses on increasing adoption of dental implants through training and education for both staff and referring dentists, emphasizing the importance of clinical outcomes and customer experience [5][6][7] 3. **Product Innovation**: 43% of Zimvi's sales come from products launched in the last three years, showcasing a strong innovation pipeline [9][58] 4. **Digital Dentistry**: The company is investing in digital solutions, including AI and cloud-based software, to enhance workflow and patient experience, with Real Guide software seeing a 39% growth in 2024 [10][24][29] 5. **Financial Performance**: Despite headwinds, Zimvi reported a 41% improvement in EBITDA and a 238% increase in EPS, indicating strong operational efficiency [35][36] 6. **Growth Projections**: For the full year, Zimvi anticipates flat to 3% growth in top-line revenue, with adjusted EBITDA growth of 17% and adjusted EPS growth of 31% to 55% [37] Additional Important Insights 1. **Market Dynamics**: The dental implant market is underpenetrated, and Zimvi aims to capture more market share through new product introductions and improved customer relationships [8][12] 2. **Full Arch Market**: Zimvi has increased its share in the full arch market from 5% to approximately 8.5-9%, with plans to further enhance this segment [22][44] 3. **Cost Management**: The company has improved gross margins by 360 basis points through cost reductions and operational efficiencies, with aspirations to reach over 70% gross margin in the long term [50][52] 4. **Pent-Up Demand**: There is potential for pent-up demand in the dental market as consumer sentiment improves and interest rates decrease, which could lead to accelerated growth [54][56] 5. **Customer Retention**: The renewal rate for Real Guide software exceeds 90%, indicating strong customer loyalty and satisfaction [61] Conclusion Zimvi is positioned for growth in the dental implant market through strategic product innovation, digital transformation, and operational efficiencies. The company is optimistic about capturing additional market share and improving financial performance in the coming years.

Company Overview - ZimVie Inc. is a global leader in the dental market, focusing on life sciences and offering a comprehensive portfolio of products for dental tooth replacement and restoration procedures [2] - The company is headquartered in Palm Beach Gardens, Florida, and operates additional facilities worldwide [2] - ZimVie aims to enhance smiles, function, and confidence through its dental implants, biomaterials, and digital workflow solutions [2] Upcoming Events - ZimVie management will participate in the Stifel 2025 Jaws & Paws Conference, scheduled for May 28, 2025, at 3:00 p.m. Eastern Time [1] - A live webcast and archived recording of the event will be available on ZimVie's investor website [1]

Financial Performance - Q1 2025 - Net sales decreased by $6.2 million, a 5.2% decrease, to $112.0 million compared to $118.2 million in Q1 2024[30] - Adjusted Cost of Products Sold as a percentage of sales improved by 360 basis points, from 37.2% in Q1 2024 to 33.6% in Q1 2025[30] - Adjusted EBITDA increased by $5.1 million, a 41% increase, to $17.6 million compared to $12.5 million in Q1 2024[30] - Adjusted EPS increased by $0.19, a 238% increase, to $0.27 compared to $0.08 in Q1 2024[30] - Cash and Cash Equivalents decreased by $8.2 million, from $75.0 million as of December 31, 2024, to $66.8 million[30] Financial Outlook - FY 2025 - Net sales are projected to be in the range of $445 million to $460 million, representing a reported growth of -1% to 2% and constant currency (CC) growth of flat to 3%[32] - Adjusted EBITDA is projected to be in the range of $65 million to $70 million, representing a reported growth of 8% to 17% and CC growth of 8% to 17%[32] - Adjusted EPS is projected to be in the range of $0.80 to $0.95, representing a reported growth of 29% to 53% and CC growth of 31% to 55%[32] Portfolio Revitalization - The company is revitalizing its portfolio with recent launches in dental implants, biomaterials, and digital dentistry[23] - Recent launches include TSX® and T3® PRO Immediate Molar Implant Systems, Azure Multi-Platform Solutions Portfolio, and RealGUIDE® 5.4 Software[23, 24, 25] Digital Dentistry Adoption - The company is seeing rapid adoption of guided surgery software, with 39% growth in FY24[29]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $112 million, representing a decrease of 5.2% in reported rates and a decline of 4.1% in constant currency [18] - Adjusted EBITDA was $17.6 million, translating to a 15.7% adjusted EBITDA margin, reflecting a 41% increase year-over-year [21] - Adjusted earnings per share attributable to continuing operations was $0.27, a 238% increase from $0.08 in the prior year [22] Business Line Data and Key Metrics Changes - Dental implant sales declined low single digits in Q1, consistent with the overall market performance, but showed improvement in March and April [9][10] - Biomaterials portfolio grew just over 1% during the quarter, reflecting ongoing investments in innovation [12] - Digital dentistry business, excluding oral scanner sales, grew high single digits, with the implant concierge service growing 11% year-over-year [13] Market Data and Key Metrics Changes - U.S. net sales were $65.8 million, a decline of 2.8% compared to the prior year, driven by lower implant sales and oral scanners [18] - International net sales were $46.2 million, a decrease of 8.5% on a reported basis, impacted by lower implant sales and headwinds from various factors [19] - The company emphasized a focus on the Japanese market, which is seen as a significant growth opportunity with a healthy premium implant market [43] Company Strategy and Development Direction - The company is focused on improving and streamlining manufacturing and supply chain processes, reducing corporate infrastructure, and refocusing on proprietary premium products [6][8] - A strategic acquisition of a distributor in Costa Rica aims to enhance local market presence and reduce third-party selling costs [15][23] - The company plans to continue prioritizing debt reduction while remaining open to opportunistic acquisitions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dental market's resilience and the potential for growth in dental implants, which are still considered under-adopted [68] - The company anticipates a moderate market recovery and successful execution of commercial strategies in the latter half of 2025 [25] - Management is confident in their manufacturing capabilities and flexibility to mitigate tariff impacts [59][61] Other Important Information - The company has incorporated the estimated $3 million annual tariff costs into their guidance and has plans to mitigate these costs [6][25] - The company reiterated its full-year 2025 revenue guidance range of $445 million to $460 million, reflecting a potential decline to moderate growth [24] Q&A Session Summary Question: Can you provide more details on the uptick in implant units sold in April? - Management noted that April showed resilience with improvements in same-store sales and the success of the new immediate molar implant launch [31][32] Question: What is the current pricing trend in the dental market? - Management indicated that the premium implant market has been less price competitive, allowing for selective pricing strategies to offset tariff impacts [34][36] Question: What are the reasons for the greater decline in international sales compared to the U.S.? - Management highlighted several headwinds affecting international sales, including foreign exchange impacts and a focus shift away from China [40][41] Question: What is the opportunity size for the implant concierge service in Japan? - Management believes the implant concierge service could significantly enhance revenue growth in Japan, improving workflow and accelerating implant adoption [43][44] Question: What actions have been taken to strengthen the supply chain? - Management expressed confidence in their manufacturing capabilities and flexibility, having moved significant operations to mitigate tariff risks [59][61]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $112 million, a decrease of 5.2% in reported rates and a decline of 4.1% in constant currency [18] - Adjusted EBITDA was $17.6 million, translating to a 15.7% adjusted EBITDA margin, reflecting a 41% increase year-over-year [22] - Adjusted earnings per share attributable to continuing operations was $0.27, a 238% increase from $0.08 in the prior year period [23] Business Line Data and Key Metrics Changes - Dental implant sales declined low single digits in Q1, consistent with the overall market performance, but showed improvement in March and April [10][11] - Biomaterials portfolio grew just over 1% during the quarter, reflecting ongoing investments in innovation [13] - Digital dentistry business, excluding oral scanner sales, grew high single digits, with the implant concierge service growing 11% year-over-year [14] Market Data and Key Metrics Changes - U.S. net sales were $65.8 million, a decline of 2.8% compared to the prior year, driven by lower implant sales and oral scanners [19] - International net sales were $46.2 million, a decrease of 8.5% on a reported basis, impacted by lower implant sales and headwinds from various factors [20] - Normalized sales outside the U.S. declined 1.6% in constant currency when accounting for specific headwinds [42] Company Strategy and Development Direction - The company is focused on improving and streamlining manufacturing and supply chain processes while reducing corporate infrastructure [6] - A new Vice President of Americas Sales has been appointed to enhance the sales process and expand the customer base [7] - The company is prioritizing higher-margin implant and digital sales over lower-margin distributed products [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dental market's resilience and the potential for growth in dental implants, which are still under-adopted [66] - The company anticipates continued margin improvement and cash flow generation, aiming to deliver shareholder value [6] - Management reiterated full-year 2025 revenue guidance of $445 million to $460 million, reflecting a 1% decline to 2% growth [25] Other Important Information - The company made a strategic acquisition of a distributor partner in Costa Rica, expected to enhance local market presence and reduce third-party selling costs [16][24] - The company has plans in place to mitigate tariff costs estimated at $3 million per year, largely due to EU-USA tariff rates [6][27] Q&A Session Summary Question: Can you provide more details on the uptick in implant units sold in April? - Management noted that April showed resilience with improved same-store sales and growth in implant units sold, particularly from the new immediate molar implant launch [34] Question: How is pricing trending in the dental market? - Management indicated that the premium implant market has been less price competitive, with selective pricing strategies in place to offset tariff impacts [36][37] Question: What are the reasons for the greater decline in international sales compared to the U.S.? - Management highlighted several headwinds affecting international sales, including foreign exchange impacts and a focus shift away from China [42] Question: What is the current position in the Japanese market? - Management stated that the company has a strong market position in Japan, with the implant concierge expected to drive significant revenue growth [45][47] Question: What actions have been taken to strengthen the supply chain? - Management expressed confidence in manufacturing capabilities and flexibility, having moved significant operations to mitigate tariff risks [58][60]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) ZimVie Inc. presents its unaudited condensed consolidated financial statements for Q1 2025, with the spine segment sale now reported as discontinued operations [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 net sales from continuing operations decreased to **$112.0 million**, while operating profit improved to **$0.8 million** and net loss narrowed Q1 2025 vs. Q1 2024 Statement of Operations Highlights (Continuing Operations) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net sales | $111,997 | $118,195 | -5.2% | | Operating Profit (Loss) | $780 | $(2,732) | Improved | | Net Loss from Continuing Operations | $(2,625) | $(11,483) | Narrowed | | Net Loss of ZimVie Inc. | $(1,471) | $(7,761) | Narrowed | | Diluted EPS (Net Loss) | $(0.05) | $(0.29) | Improved | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$745.8 million**, cash decreased to **$66.8 million**, and stockholders' equity increased to **$395.1 million** Balance Sheet Summary | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $66,750 | $74,974 | | Total Current Assets | $250,658 | $257,285 | | Total Assets | $745,782 | $753,674 | | Total Current Liabilities | $117,144 | $133,944 | | Total Liabilities | $350,659 | $371,967 | | Total Stockholders' Equity | $395,123 | $381,707 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw **$13.9 million** cash used in operating activities, with total cash and equivalents decreasing by **$9.8 million** Q1 2025 vs. Q1 2024 Cash Flow Summary | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,911) | $(11,511) | | Net cash used in investing activities | $(1,947) | $(4,138) | | Net cash used in financing activities | $(1,135) | $(1,437) | | Decrease in cash and cash equivalents | $(9,822) | $(19,184) | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements) Notes detail the **$377.0 million** spine segment sale, its classification as discontinued operations, debt prepayment, and a new restructuring plan - On April 1, 2024, ZimVie completed the sale of its spine segment for a total purchase price of **$377.0 million**, consisting of **$315 million** in cash (subject to adjustments) and a **$60 million** promissory note[20](index=20&type=chunk)[32](index=32&type=chunk) - The historical financial results of the spine segment are now classified as discontinued operations, representing a strategic shift for the company[24](index=24&type=chunk)[31](index=31&type=chunk) - A restructuring plan was initiated in January 2024 to optimize the organization following the spine segment disposal, with **$1.4 million** in charges recorded in Q1 2025[70](index=70&type=chunk) - As of March 31, 2025, **$221.9 million** was outstanding on the Term Loan. A prepayment of **$275.0 million** was made on April 1, 2024, using proceeds from the spine segment sale[58](index=58&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a **5.2%** net sales decline, improved gross margin, and sufficient liquidity for the next 12 months [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2025 net sales decreased **5.2%** to **$112.0 million** due to volume, price, and FX, while gross margin improved from manufacturing efficiencies Net Sales Percentage Change Components (Q1 2025 vs Q1 2024) | Component | Percentage Change | | :--- | :--- | | Total Change | (5.2)% | | Volume/Mix | (3.3)% | | Price | (0.8)% | | Foreign Exchange | (1.1)% | - The decrease in cost of products sold as a percentage of sales was primarily due to manufacturing efficiencies and the exit of a transition manufacturing agreement with the former parent company[84](index=84&type=chunk) - R&D expenses decreased due to lower share-based compensation, reduced headcount, and lower professional fees[87](index=87&type=chunk) - SG&A expenses decreased in dollar terms but increased as a percentage of net sales due to the decline in sales[88](index=88&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, cash and equivalents were **$66.8 million**, with **$13.9 million** cash used in operations, but liquidity remains sufficient - Cash used in operating activities was **$13.9 million** in Q1 2025, compared to **$11.5 million** in Q1 2024[97](index=97&type=chunk) - The company believes that available cash, cash flows from operations, and its revolving credit facility will be sufficient to meet liquidity needs for at least the next 12 months[101](index=101&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) ZimVie faces foreign currency and interest rate risks, using forward contracts for FX, and a 100 bps SOFR increase would cost **$2.2 million** annually - The company is primarily exposed to foreign currency exchange risk related to the Euro and Japanese Yen and uses forward contracts to manage this exposure[106](index=106&type=chunk) - The company has **$221.9 million** of floating rate debt subject to the SOFR. A **100 basis point** increase in SOFR would raise annual interest expense by **$2.2 million**[108](index=108&type=chunk) - Credit risk is concentrated in the healthcare industry, particularly with public hospitals in Europe, but is managed through credit limits and monitoring, with no significant exposure to any single customer[110](index=110&type=chunk)[111](index=111&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the quarter[112](index=112&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[113](index=113&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) ZimVie is involved in various legal proceedings, but management does not anticipate a material adverse impact on its financials - ZimVie is involved in various claims and legal proceedings but does not anticipate a material adverse impact from their outcomes[115](index=115&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights potential adverse impacts from changes in U.S. trade policy and tariffs, especially for products from Spain - A new risk factor has been added regarding the potential adverse impact of changes in U.S. trade policy and tariffs[117](index=117&type=chunk)[118](index=118&type=chunk) - Tariffs on imports from the European Union could make procuring products manufactured in Spain more costly, potentially reducing margins or demand[118](index=118&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans for company securities during Q1 2025 - No directors or officers adopted or terminated any contract, instruction, or written plan for trading company securities under Rule 10b5-1(c) during Q1 2025[120](index=120&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key agreements and officer certifications - Lists all exhibits filed with the quarterly report, such as the Equity Purchase Agreement for the spine segment sale and officer certifications[122](index=122&type=chunk)

[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) This section details ZimVie's first quarter 2025 financial results and provides full-year 2025 financial guidance [First Quarter 2025 Financial Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) ZimVie reported a 5.2% decrease in net sales to $112.0 million for Q1 2025, but showed significant profitability improvements, with net loss narrowing to $(2.6) million and adjusted EBITDA increasing to $17.6 million - The company entered 2025 with a strong focus on execution and operational diligence, aiming to improve operational efficiency and profitability while working towards a return to top-line growth[3](index=3&type=chunk) Q1 2025 Financial Performance vs. Q1 2024 (Continuing Operations) | Financial Metric | Q1 2025 | Q1 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $112.0M | $118.2M | -$6.2M | -5.2% | | Net Loss | $(2.6)M | $(11.5)M | +$8.9M | N/A | | Net Loss Margin | (2.3)% | (9.7)% | +740 bps | N/A | | Adjusted Net Income | $7.4M | $2.2M | +$5.2M | +236% | | Adjusted EBITDA | $17.6M | $12.5M | +$5.1M | +40.8% | | Adjusted EBITDA Margin | 15.7% | 10.5% | +520 bps | N/A | | Diluted EPS | $(0.09) | $(0.42) | +$0.33 | N/A | | Adjusted Diluted EPS | $0.27 | $0.08 | +$0.19 | +237.5% | [Full Year 2025 Financial Guidance](index=1&type=section&id=Full%20Year%202025%20Financial%20Guidance) The company provides its financial outlook for the full year ending December 31, 2025, projecting net sales between $445 million and $460 million and adjusted EPS in the range of $0.80 to $0.95 Full Year 2025 Financial Guidance (Continuing Operations) | Metric | Guidance Range | | :--- | :--- | | Net Sales | $445M to $460M | | Adjusted EBITDA | $65M to $70M | | Adjusted EPS | $0.80 to $0.95 | - The forward-looking guidance for Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures, with reconciliation to GAAP measures not available without unreasonable efforts[8](index=8&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents ZimVie's consolidated financial statements, including the statement of operations, balance sheets, and cash flows for the reported periods [Consolidated Statement of Operations](index=4&type=section&id=Consolidated%20Statement%20of%20Operations) For the first quarter of 2025, ZimVie reported an operating profit of $0.78 million, a significant turnaround from an operating loss of $(2.73) million in the prior-year period, with net loss from continuing operations improving to $(2.63) million Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $111,997 | $118,195 | | Operating Profit (Loss) | $780 | $(2,732) | | Net Loss from Continuing Operations | $(2,625) | $(11,483) | | Net Loss of ZimVie Inc. | $(1,471) | $(7,761) | | Diluted EPS from Continuing Operations | $(0.09) | $(0.42) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, ZimVie's total assets were $745.8 million, a slight decrease from $753.7 million at year-end 2024, while total liabilities decreased and total stockholders' equity increased Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $66,750 | $74,974 | | Total Current Assets | $250,658 | $257,285 | | Total Assets | $745,782 | $753,674 | | Total Current Liabilities | $117,144 | $133,944 | | Total Liabilities | $350,659 | $371,967 | | Total Stockholders' Equity | $395,123 | $381,707 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company used $13.9 million in cash from operating activities in Q1 2025, an increase from the $11.5 million used in Q1 2024, ending the period with $66.8 million in cash and cash equivalents Cash Flow Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,911) | $(11,511) | | Net cash used in investing activities | $(1,947) | $(4,138) | | Net cash used in financing activities | $(1,135) | $(1,437) | | Decrease in cash and cash equivalents | $(9,822) | $(19,184) | | Cash and cash equivalents, end of period | $66,750 | $68,584 | [Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of various non-GAAP financial measures, including constant currency net sales, adjusted net income, adjusted EBITDA, and adjusted operating expenses [Reconciliation of Constant Currency Net Sales](index=7&type=section&id=Reconciliation%20of%20Constant%20Currency%20Net%20Sales) This section details the impact of foreign currency exchange rates on net sales, showing a 5.2% reported decrease but a smaller 4.1% decrease on a constant currency basis for Q1 2025 Q1 2025 Net Sales Change: Reported vs. Constant Currency | Region | Reported Change (%) | Foreign Exchange Impact | Constant Currency Change (%) | | :--- | :--- | :--- | :--- | | United States | (2.8%) | 0.0% | (2.8%) | | International | (8.5%) | (2.6%) | (5.9%) | | **Total Net Sales** | **(5.2%)** | **(1.1%)** | **(4.1%)** | [Reconciliation of Adjusted Net Income and Diluted EPS](index=8&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Diluted%20EPS) ZimVie's reported GAAP net loss of $(2.6) million and EPS of $(0.09) were adjusted for various items, resulting in a non-GAAP adjusted net income of $7.4 million and an adjusted diluted EPS of $0.27 for Q1 2025 Reconciliation of Net Income (Loss) to Adjusted Net Income (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Reported Net (Loss) Income** | **$(2,625)** | **$(11,483)** | | Intangible asset amortization | $6,032 | $6,022 | | Restructuring and other cost reduction initiatives | $1,432 | $2,579 | | Acquisition, integration, divestiture and related | $1,449 | $1,037 | | Other adjustments | $600 | $1,088 | | Tax effect of adjustments & other | $484 | $3,316 | | **Adjusted Net Income** | **$7,371** | **$2,158** | - Major adjustments for Q1 2025 include costs related to restructuring, professional services fees for the spine segment sale, and intangible asset amortization[29](index=29&type=chunk)[30](index=30&type=chunk) [Reconciliation of Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) The company reconciles its Q1 2025 net loss of $(2.6) million to an adjusted EBITDA of $17.6 million, representing a significant increase from $12.5 million in Q1 2024 and an improved margin of 15.7% Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Loss** | **$(2,625)** | **$(11,483)** | | Interest expense, net | $2,017 | $4,366 | | Income tax provision | $3,074 | $4,074 | | Depreciation and amortization | $8,655 | $8,430 | | **EBITDA** | **$11,121** | **$5,387** | | Share-based compensation | $3,497 | $2,762 | | Restructuring and other cost reduction initiatives | $1,432 | $2,579 | | Acquisition, integration, divestiture and related | $1,449 | $1,037 | | Other adjustments | $62 | $687 | | **Adjusted EBITDA** | **$17,561** | **$12,452** | [Reconciliation of Cost of Products Sold, R&D and SG&A](index=10&type=section&id=Reconciliation%20of%20Cost%20of%20Products%20Sold%2C%20R%26D%20and%20SG%26A) This section provides adjusted figures for key operating expense lines, with adjusted cost of products sold at 33.6% of net sales, adjusted R&D at 4.8%, and adjusted SG&A at 52.4% for Q1 2025 Adjusted Operating Expenses as a Percentage of Net Sales | Expense Line | Q1 2025 (Adjusted) | Q1 2024 (Adjusted) | | :--- | :--- | :--- | | Cost of products sold, excluding intangible asset amortization | 33.6% | 37.2% | | Research and development | 4.8% | 5.3% | | Selling, general and administrative | 52.4% | 51.0% | - Adjustments in Q1 2025 were made for regulatory costs related to the separation from ZBH and the net impact of converting performance-based RSUs to time-based RSUs[38](index=38&type=chunk)[39](index=39&type=chunk) [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides an overview of ZimVie, details regarding the conference call, and important notes on non-GAAP financial measures and forward-looking statements [About ZimVie and Conference Call](index=2&type=section&id=About%20ZimVie%20and%20Conference%20Call) This section provides a corporate overview of ZimVie as a global leader in the dental market, headquartered in Palm Beach Gardens, Florida, and announces the conference call scheduled for May 8, 2025 - ZimVie is a global life sciences leader in the dental market, offering a comprehensive portfolio for tooth replacement and restoration procedures[10](index=10&type=chunk) - A conference call to discuss Q1 2025 results was scheduled for May 8, 2025, at 4:30 p.m. ET[9](index=9&type=chunk) [Note on Non-GAAP Financial Measures and Forward-Looking Statements](index=2&type=section&id=Note%20on%20Non-GAAP%20Financial%20Measures%20and%20Forward-Looking%20Statements) The company explains its use of non-GAAP financial measures, stating they provide meaningful incremental information for investors, and includes a standard cautionary note regarding various risks and uncertainties affecting future results - The press release uses non-GAAP measures (e.g., constant currency, adjusted net income, adjusted EBITDA) which management believes help evaluate business performance and trends by allowing for period-to-period comparisons without the distortion of certain items[11](index=11&type=chunk)[17](index=17&type=chunk) - The report contains forward-looking statements subject to significant risks and uncertainties, including dependence on new products, pricing pressures, regulatory changes, and general economic conditions, cautioning readers not to place undue reliance on them[20](index=20&type=chunk)