Core Insights - ZimVie Inc. has published a scientific study indicating that its premium dental implants may reduce the risk of peri-implant infections compared to other implants available in the market [1][2][3] Group 1: Study Findings - The study, published in the Journal of Biomedical Materials Research, evaluated ZimVie's dual acid-etched coronal surface technology against other leading implant brands [2] - The research highlights a critical threshold roughness for implant surfaces, where rougher surfaces increase bacterial adhesion, while ZimVie's implants maintain adhesion levels comparable to smooth machined surfaces [3] - ZimVie's Contemporary Hybrid Surface technologies are designed to mitigate the rising prevalence of peri-implant mucositis and peri-implantitis [3] Group 2: Product Information - TSX Implants, launched in 2022, are engineered for immediate extraction and standard loading protocols, focusing on primary stability and crestal bone maintenance [4] - T3 PRO Implants, also launched in 2022, feature a hybrid surface design that promotes high primary stability and immediate function, with clinical studies supporting their safety and performance [5] Group 3: Company Overview - ZimVie is a global leader in the dental market, dedicated to developing and delivering a comprehensive range of products for dental tooth replacement and restoration [7] - The company operates from its headquarters in Palm Beach Gardens, Florida, and aims to enhance patient outcomes through advanced clinical science and technology [7]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $103 million, reflecting a decrease of 2% in reported rates and a decline of 2.2% in constant currency compared to the prior year [13] - Adjusted EBITDA for continuing operations was $13.1 million, resulting in a 12.7% adjusted EBITDA margin, an improvement from 11.6% in the prior year [16] - Adjusted earnings per share attributable to continuing operations was $0.12 per share on a fully diluted share count of 27.6 million shares [17] Business Line Data and Key Metrics Changes - U.S. third-party net sales were $65.4 million, an increase of 0.5%, with a 1.6% growth when excluding oral scanner sales [13] - The biomaterials portfolio grew at a healthy rate, serving as a leading indicator for future implant procedures [8] - The digital portfolio, excluding iTero scanner sales, grew over 10% in Q3, driven by the adoption of RealGUIDE 5.4 software and the Medit partnership [9] Market Data and Key Metrics Changes - Outside the U.S., third-party net sales decreased by 6% on a reported basis, primarily due to order timing in Japan and Italy, and a slower market in Spain [14] - The company noted resilience in the U.S. dental market, with modest overall year-over-year growth [6] Company Strategy and Development Direction - The company is focused on improving manufacturing efficiency and decreasing the cost of products sold [4] - Investments are being made in sales teams, training programs, and R&D to fill product portfolio gaps and capitalize on market opportunities [5] - The company aims to achieve a 15% plus adjusted EBITDA margin one year post the sale of its Spine business [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about growth in North America returning in Q4 2024 [23] - The company is confident in its positioning for future growth, particularly in the U.S. market, which is the most profitable [34] - Management highlighted that the digital business is a significant growth enabler, with a focus on underpenetrated markets [36] Other Important Information - The company paid down $15 million in debt, resulting in a gross debt of $220 million and a net debt of $153 million [5] - The company is narrowing its full-year revenue guidance range to $450 million to $455 million [19] Q&A Session Summary Question: How is the company thinking about the recovery in the U.S. market? - Management feels optimistic about growth in North America returning in Q4, with expectations for Japan to resume growth as well [23][24] Question: Have patients started returning for implants, and can the company size that backlog? - Management has not quantified the patient backlog but believes biomaterials are a leading indicator of future implant procedures [26] Question: Can the company sustain the current gross margin levels? - Management is pleased with the gross margin performance and expects it to remain stable moving forward [28] Question: What is the confidence level in volumes for Q4 and entering next year? - Management is comfortable with the year-end guidance and sees positive trends in the North American market [34] Question: How is the digital side of the business performing? - The digital business has seen significant growth, with RealGUIDE software growing over 30% year-over-year [36]

Financial Performance - Total net sales for the three months ended September 30, 2024, were $103.2 million, a decrease of 2.0% compared to $105.3 million in the same period of 2023[84]. - For the nine months ended September 30, 2024, total net sales were $338.2 million, down 1.8% from $344.4 million in 2023[85]. - The company experienced a price decline of 1.1% in net sales for the nine months ended September 30, 2024, primarily due to pricing pressures in North America and China[85][87]. - Foreign exchange fluctuations had a small positive effect on year-over-year sales for the three months ended September 30, 2024, mainly due to the strengthening of the Euro[88]. Expenses - Research and development expenses increased to 6.7% of net sales in the three months ended September 30, 2024, compared to 5.4% in the same period of 2023[92]. - Selling, general and administrative expenses rose to 55.5% of net sales in the three months ended September 30, 2024, up from 53.7% in the prior year[89]. - Cost of products sold as a percentage of net sales decreased to 34.7% in the three months ended September 30, 2024, from 35.0% in the same period of 2023[89]. - Restructuring and other cost reduction initiatives recognized expenses of $0.7 million in the three months ended September 30, 2024, compared to $1.4 million in the same period of 2023[95]. Cash Flow and Liquidity - Cash and cash equivalents were $68.1 million as of September 30, 2024, down from $87.8 million at the end of 2023[103]. - Cash flows from operating activities were $(7.3) million for the nine months ended September 30, 2024, compared to $15.7 million in the same period of 2023[104]. - Cash flows from investing activities were $285.2 million for the nine months ended September 30, 2024, primarily from the sale of the spine segment[105]. - Cash flows used in financing activities were $295.4 million for the nine months ended September 30, 2024, including a $275.0 million prepayment on the Term Loan[106]. - The company believes available cash and cash equivalents will be sufficient to meet liquidity needs for at least the next 12 months[108]. Debt and Interest - As of September 30, 2024, the company had $221.9 million of floating rate debt subject to SOFR, with a potential $2.2 million decrease in annual pre-tax results from a 100 basis points increase in SOFR[113]. - Interest income increased due to the promissory note from the sale of the spine segment[98]. - Interest expense decreased due to a reduction in outstanding debt and interest rates[99]. Legal Matters - The company is subject to various claims and legal proceedings, but does not expect a material adverse impact on results of operations, cash flows, or financial position[119]. - The outcome of legal matters is unpredictable and could have a material adverse effect on financial position, results of operations, or cash flows[119]. Other Significant Events - The company recorded a gain of $11.3 million from the sale of its spine segment, which was completed on April 1, 2024, for a total purchase price of $377.2 million[75]. - The company initiated restructuring activities in January 2024 to better support its dental segment following the sale of the spine segment[80]. - Other income related to TSA income was $3.2 million and $6.6 million for the three and nine months ended September 30, 2024 and 2023, respectively[97]. - The effective tax rate (ETR) on loss before income taxes was 18.4% for Q3 2024 compared to (3.3%) for Q3 2023[100]. - There were no changes in internal control over financial reporting during the three months ended September 30, 2024[117].

Financial Performance - Third party net sales for Q3 2024 were $103.2 million, a decrease of 2.0% on a reported basis and 2.2% in constant currency compared to Q3 2023[3]. - Net loss for Q3 2024 was $(3.0) million, an improvement of $7.2 million from a net loss of $(10.2) million in Q3 2023, with a net loss margin of 3.0%[4]. - Adjusted EBITDA for Q3 2024 was $13.1 million, representing a margin of 12.7%, an increase of $0.9 million or 110 basis points from Q3 2023[5]. - Adjusted net income for Q3 2024 was $3.3 million, an increase of $2.1 million compared to Q3 2023[4]. - Adjusted diluted EPS for Q3 2024 was $0.12, while basic and diluted EPS were $(0.11)[5]. - The net loss margin improved by 670 basis points from 9.7% in Q3 2023 to 3.0% in Q3 2024[4]. - The company reported a basic loss per share from continuing operations of $(0.11) for the three months ended September 30, 2024, compared to $(0.38) for the same period in 2023[17]. - Adjusted Net Income for the three months ended September 30, 2024, was $3,283 thousand, resulting in a Diluted EPS of $0.12, compared to a Diluted EPS of $(0.38) in 2023[22]. Sales and Revenue - Total net sales for the three months ended September 30, 2024, were $103,222, a decrease of 2.0% compared to $105,311 for the same period in 2023[17]. - U.S. Dental Net Sales for the nine months ended September 30, 2024, were $202,414 thousand, down 0.9% from $204,173 thousand in 2023[20]. - International Dental Net Sales for the three months ended September 30, 2024, decreased by 6.0% to $37,872 thousand from $40,308 thousand in 2023[20]. - Total Third Party Sales for the nine months ended September 30, 2024, were $338,228 thousand, down 1.7% from $344,131 thousand in 2023[24]. - The company reported a Constant Currency % Change in Total Dental Net Sales of (2.2%) for the three months ended September 30, 2024[20]. Guidance and Projections - The company updated its full-year 2024 guidance, projecting net sales of $450 million to $455 million and adjusted EBITDA of $60 million to $62 million[5]. Expenses and Costs - Cost of products sold for Q3 2024 was $(35,820) thousand, a decrease from $(36,907) thousand in Q3 2023, representing a 2.9% reduction[25]. - Adjusted cost of products sold, excluding intangible asset amortization, was $(35,533) thousand in Q3 2024, compared to $(36,614) thousand in Q3 2023, reflecting a 2.9% decrease[25]. - Research and development expenses for Q3 2024 totaled $(6,926) thousand, up from $(5,677) thousand in Q3 2023, indicating an increase of 22.1%[25]. - Selling, general and administrative expenses for Q3 2024 were $(57,313) thousand, slightly higher than $(56,505) thousand in Q3 2023, a 1.4% increase[25]. - The percentage of adjusted cost of products sold to net sales for Q3 2024 was 34.4%, slightly lower than 34.8% in Q3 2023[25]. Cash Flow and Assets - Cash and cash equivalents decreased to $66,808 as of September 30, 2024, from $71,511 as of December 31, 2023[18]. - Total assets decreased to $782,948 as of September 30, 2024, from $1,205,345 as of December 31, 2023[18]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(7,276), compared to $15,694 for the same period in 2023[19]. Company Strategy and Investments - The company is focusing on operational improvements and has made investments in sales force, R&D initiatives, and training programs for future expansion[2]. - The company is committed to advancing clinical science and technology in the dental market, focusing on product development and market expansion[7]. Other Financial Metrics - The company incurred $(20,285) thousand in research and development expenses for the nine months ended September 30, 2024, compared to $(19,365) thousand in the same period of 2023, an increase of 4.7%[25]. - The company reported a net impact of $(476) thousand from share-based compensation modification in Q3 2024, compared to no such expense in Q3 2023[25].

Core Viewpoint - ZimVie Inc. will report its financial results for Q3 2024 on October 30, 2024, after market close, with a conference call scheduled for 4:30 p.m. Eastern Time [1]. Company Overview - ZimVie is a global leader in the dental market, focusing on developing, manufacturing, and delivering a comprehensive portfolio of products for dental tooth replacement and restoration [2]. - The company is headquartered in Palm Beach Gardens, Florida, and operates additional facilities worldwide, aiming to enhance smiles, function, and confidence through its dental solutions [2]. - ZimVie offers a range of products, including dental implants, biomaterials, and digital workflow solutions, and is committed to advancing clinical science and technology in the dental field [2].

Core Insights - The Mexican spinal implant and vertebral compression fracture (VCF) market was valued at over $135 million in 2023 and is projected to grow at a CAGR of 6.1%, exceeding $205 million by 2030 [1][3]. Market Overview - The report covers various segments including cervical fixation devices, thoracolumbar fixation devices, interbody devices, motion preservation devices, VCF treatment, electrical stimulation devices, and spinal surgery instrumentation [2][6]. - The market analysis includes unit sales, average selling prices, market value, and growth trends, with projections extending to 2030 and historical data from 2020 [3][7]. Market Trends - There is a growing interest in minimally invasive surgery (MIS) in Mexico, which is gaining popularity due to shorter recovery times and fewer complications, although its adoption is still behind more advanced markets [3]. - The healthcare system in Mexico is primarily hospital-focused, resulting in a lower rate of outpatient procedures compared to other Latin American countries, which poses challenges for the adoption of advanced surgical technologies [4]. Competitive Landscape - ZimVie/Highridge Medical is the market leader in 2023, holding significant shares in cervical fixation, thoracolumbar fixation, and interbody device segments, supported by a strong distribution network [5]. - Medtronic ranks as the second-largest player, leading in the VCF segment with its PVA device, while DePuy Synthes is third, primarily generating revenue from fixation devices [5]. Market Segmentation - Cervical fixation devices include anterior and posterior types, while thoracolumbar fixation devices are categorized based on degenerative treatments and approaches [6]. - Interbody devices encompass various types such as ALIF, PLIF, and expandable devices, while motion preservation devices include artificial discs and dynamic stabilization [6]. Research Scope - The report covers the Mexican market with a base year of 2023 and a forecast period from 2024 to 2030, including quantitative and qualitative analyses of market size, procedure volume, and competitive dynamics [7][8].

ZimVie Inc. (NASDAQ:ZIMV) Q2 2024 Earnings Conference Call August 1, 2024 4:30 AM ET Company Participants Marissa Bych - IR, Gilmartin Group LLC Vafa Jamali - President and CEO Richard Heppenstall - CFO Conference Call Participants David Saxon - Needham & Company Matt Miksic - Barclays Operator Good afternoon, and welcome to ZimVie's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to ...

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, 2024 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: 001-41242 | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------- ...

ZimVie Reports Second Quarter 2024 Financial Results • Third Party Net Sales from Continuing Operations of $116.8 million • Net Loss from Continuing Operations of $(9.6) million; Net Loss margin of (8.2%) • Adjusted EBITDA[1] from Continuing Operations of $16.1 million; Adjusted EBITDA[1] margin of 13.8% • Reduced debt to $235.1 million, ended quarter with cash balance from Continuing Operations of $78.6 million PALM BEACH GARDENS, Florida, August 1, 2024 (GLOBE NEWSWIRE) – ZimVie Inc. (Nasdaq: ZIMV), a glo ...

Those interested in listening to the conference call should register online here. Participants are encouraged to register more than 15 minutes before the start of the call. A replay of the webcast will be available at investor.zimvie.com Allison Johnson • Allison.Johnson@ZimVie.com (561) 319-6130 ZimVie is a global life sciences leader in the dental market that develops, manufactures, and delivers a comprehensive portfolio of products and solutions designed to support dental tooth replacement and restoratio ...