Enovis(US:ENOV)2024-08-07 10:22Financial Performance - Enovis reported second-quarter net sales of $525 million, reflecting a 23% increase on a reported basis and a 5% increase on a comparable sales basis compared to Q2 2023[2]. - The company experienced a net loss from continuing operations of $18 million, equating to a loss of 3.5% of sales, with adjusted EBITDA of $90 million, representing 17.2% of sales[2]. - Enovis achieved a 60% growth in net sales in the Recon segment on a reported basis, with a 7% comparable sales growth compared to the same quarter in 2023[2]. - The gross profit margin for Q2 2024 was reported at 55.0%, down from 58.0% in Q2 2023[14]. - Net loss from continuing operations for the three months ended June 28, 2024, was $(18.4) million, compared to $(14.6) million for the same period in 2023, representing a 25.9% increase in loss[16]. - Adjusted net income from continuing operations (non-GAAP) for the three months ended June 28, 2024, was $34.4 million, a slight increase from $33.4 million in the same period last year, resulting in an adjusted net income margin of 6.6%[15]. - Adjusted EBITDA (non-GAAP) for the three months ended June 28, 2024, was $90.2 million, up from $65.7 million in the same period last year, reflecting a margin increase to 17.2%[16]. - Total net sales for the six months ended June 28, 2024, reached $1,041.4 million, reflecting a growth rate of 24.8% compared to $834.7 million in the same period of 2023[21]. Guidance and Expectations - Enovis narrowed its full-year revenue guidance to $2.08-$2.13 billion and adjusted EBITDA expectations to $368-$383 million[4]. - The company raised its full-year adjusted earnings per diluted share guidance from $2.52-$2.67 to $2.62-$2.77[4]. Strategic Initiatives - Enovis received FDA 510k clearance for the Arvis 2.0 Shoulder and Altivate Reverse Glenoid system, with launches expected in Q3 2024[3]. - The company opened a new manufacturing facility in San Daniele to enhance global manufacturing capabilities[3]. - Enovis integrated the transformational Lima acquisition, which is expected to contribute to growth and profitability into 2025 and beyond[3]. - The fair value of contingently issuable shares in business acquisitions was reported at $107.9 million, reflecting ongoing strategic investments[20]. Asset and Debt Management - Total current assets increased to $1,172.8 million as of June 28, 2024, compared to $896.5 million at the end of 2023, driven by a rise in trade receivables and inventories[18]. - Long-term debt, less current portion, rose significantly to $1,329.4 million as of June 28, 2024, compared to $466.2 million at the end of 2023, indicating increased leverage[18]. - The company reported an inventory step-up charge of $23.9 million for the three months ended June 28, 2024, contributing to the adjusted gross profit of $312.8 million[17]. - Strategic transaction costs for the three months ended June 28, 2024, amounted to $22.7 million, up from $5.4 million in the same period last year, reflecting ongoing integration efforts[16]. - The company’s total assets increased to $5,442.0 million as of June 28, 2024, from $4,509.3 million at the end of 2023, indicating strong growth in asset base[19]. Cash Flow and Investment - Cash flows from operating activities resulted in a net cash outflow of $28.4 million, a significant decrease from a net cash inflow of $35.6 million in the prior year[20]. - Total net cash used in investing activities was $839.2 million, compared to $166.0 million in the same period last year, indicating increased investment activity[20]. - The company raised $400.0 million from borrowings on a term credit facility during the period, contributing to a net cash inflow of $867.0 million from financing activities[20]. - Enovis Corporation's cash, cash equivalents, and restricted cash at the end of the period totaled $43.4 million, up from $32.5 million at the end of the previous year[20]. Segment Performance - The U.S. Reconstructive segment saw a significant growth of 15.0%, with sales increasing from $106.1 million to $122.1 million[21]. - International Reconstructive sales surged by 156.4%, rising from $48.9 million to $125.3 million, showcasing strong market expansion[21]. - Total Prevention & Recovery sales increased by 1.6%, from $273.5 million to $277.8 million, indicating stable performance in this segment[21].