ZimVie (ZIMV)2024-10-30 20:10Financial 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].