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)

Core Viewpoint - ZimVie Inc. reported a net sales decrease of 5.2% for Q1 2025, but showed significant improvement in net loss and adjusted net income compared to the same period in 2024, indicating a focus on operational efficiency and profitability improvements [2][3][4]. Financial Performance - Net sales for Q1 2025 were $112.0 million, down 5.2% from Q1 2024, with a constant currency decrease of 4.1% [2][28]. - The net loss for Q1 2025 was $(2.6) million, an improvement of $8.9 million from a net loss of $(11.5) million in Q1 2024, resulting in a net loss margin of (2.3%), up 740 basis points from (9.7)% in Q1 2024 [3][4]. - Adjusted net income for Q1 2025 was $7.4 million, an increase of $5.2 million compared to Q1 2024 [3][4]. Earnings Per Share - Basic and diluted EPS for Q1 2025 were $(0.09), while adjusted diluted EPS was $0.27 [4][29]. Adjusted EBITDA - Adjusted EBITDA for Q1 2025 was $17.6 million, representing 15.7% of net sales, an increase of $5.1 million or 520 basis points from Q1 2024 [4][35]. Full Year Guidance - For the full year 2025, ZimVie projects net sales between $445 million and $460 million, adjusted EBITDA between $65 million and $70 million, and adjusted EPS between $0.80 and $0.95 [5]. Operational Focus - The company emphasizes a strong focus on execution and operational diligence to maintain its leading position in the dental market through innovation and education [2][8].

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][3] - The company is headquartered in Palm Beach Gardens, Florida, and operates additional facilities worldwide [2] Financial Results Announcement - ZimVie will report its financial results for the first quarter of 2025 after market close on May 8, 2025 [1] - A conference call will be hosted by company management at 4:30 p.m. Eastern Time on the same day [1] Conference Call Details - Interested participants can register online to listen to the conference call, with a recommendation to register more than 15 minutes before the start [2] - A replay of the webcast will be available on the investor section of ZimVie's website [2]

Core Viewpoint - ZimVie Inc. has launched its Immediate Molar Implant System in the United States, enhancing its existing TSX and T3 PRO Implant systems to address the complexities of molar tooth restoration, thereby reducing treatment times and improving patient outcomes [1][4]. Group 1: Product Features - The Immediate Molar Implant System includes specially engineered instrumentation that simplifies site preparation during molar extraction, making the procedure more controlled and predictable [2]. - The system features optimized wide-diameter implants that enhance primary stability and potentially reduce the risk of peri-implantitis by up to 20% through proprietary DAE coronal surface technology [2]. - Compared to conventional treatment protocols, the Immediate Molar Implant System allows for restoration in half the time, streamlining the overall treatment process [3]. Group 2: Company Commitment - The launch of the Immediate Molar Dental Implant System represents a significant milestone in ZimVie's commitment to advancing dental technology, aiming to provide shorter and more cost-effective treatment options while ensuring predictable and lasting outcomes for patients [4]. - ZimVie has a history of developing products like the TSX and T3 PRO Implants, which are designed for immediate extraction and loading protocols, ensuring placement predictability and primary stability [5][8]. Group 3: Market Position - ZimVie is positioned as a global leader in the dental implant market, focusing on comprehensive solutions for dental tooth replacement and restoration procedures, with a commitment to improving clinical science and technology [10].

Company Overview - ZimVie Inc. is a global leader in the dental market, focusing on life sciences and providing 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 offerings, which include dental implants, biomaterials, and digital workflow solutions [2] Upcoming Events - ZimVie management will participate in the 24th Annual Needham Virtual Healthcare Conference on April 8, 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]

PALM BEACH GARDENS, Fla., March 13, 2025 (GLOBE NEWSWIRE) -- ZimVie Inc. (Nasdaq: ZIMV), a global life sciences leader in the dental implant market, today announced upcoming changes to the Company's Board of Directors, including: Non-Executive Chair David King will not stand for reelection as a director upon the expiration of his current term at the Company's annual meeting of shareholders on May 7, 2025.President and CEO Vafa Jamali will be appointed Chairman of the Board effective as of May 7, 2025.Direc ...

Dentsply Sirona XRAY and ZimVie Inc. ZIMV show below-market growth and have no meaningful upside, according Needham analysts.What Happened: Needham downgraded the two dental companies to Hold.ZimVie reported adjusted EPS of 27 cents, beating the consensus of 26 cents. The company’s sales of $111.52 million fell below the consensus of $113.4 million.Dentsply Sirona, meanwhile, reported fourth-quarter adjusted earnings per share of 26 cents. It missed the street view of 43 cents. Quarterly sales of $905 milli ...

ZimVie Inc. (NASDAQ:ZIMV) Q4 2024 Earnings Conference Call February 26, 2025 4:30 PM ET Company Participants Marissa Bych - Investor Relations Vafa Jamali - President & Chief Executive Officer Richard Heppenstall - Chief Financial Officer Conference Call Participants David Saxon - Needham & Company Kevin Caliendo - UBS William McMahon - Barclays Operator Good afternoon and welcome to ZimVie's Fourth Quarter 2024 Earnings Conference Call. Currently, all participants are in a listen-only mode. We'll be facili ...

A Global Dental Leader February 2025 1 Forward-Looking Statements and Non-GAAP Measures Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements within the meaning of federal securities laws, including, among others, any statements about our expectations, plans, intentions, strategies, or prospects. We generally use the words "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "assumes," "guides, ...