Orthofix(OFIX)2024-11-07 12:06Financial Performance - Third quarter 2024 net sales reached $196.6 million, a 7% increase compared to the third quarter of 2023[1] - U.S. Spine Fixation net sales grew by 18% year-over-year, driven by distribution expansion[1] - Non-GAAP adjusted EBITDA for the third quarter was $19.2 million, an increase of $5.7 million, with an adjusted EBITDA margin expansion of approximately 250 basis points[1] - The company reported a net loss of $(27.4) million, improving by 8% compared to the prior year period[1] - Full-year 2024 net sales guidance is maintained at $795 million to $800 million, representing a year-over-year growth of 6.6% to 7.2%[4] - New three-year financial targets include a net sales CAGR of 6% to 7% from 2025 through 2027[2] - The company achieved free cash flow of $5.9 million in the third quarter, indicating significant improvement in cash usage[1] - U.S. Orthopedics recorded a record net sales quarter with a growth of 15% compared to the third quarter of 2023[1] - Bone Growth Therapies net sales grew by 9%, with BGT Fracture net sales increasing by 13% year-over-year[1] Asset and Liability Management - Total assets decreased from $925,315 thousand as of December 31, 2023, to $867,872 thousand as of September 30, 2024, representing a decline of approximately 6.2%[12] - Long-term debt increased from $93,107 thousand as of December 31, 2023, to $112,215 thousand as of September 30, 2024, representing an increase of approximately 20.5%[12] - Total liabilities rose from $326,585 thousand as of December 31, 2023, to $341,948 thousand as of September 30, 2024, marking an increase of about 4.7%[12] - Shareholders' equity decreased from $598,730 thousand as of December 31, 2023, to $525,924 thousand as of September 30, 2024, reflecting a decline of approximately 12.1%[12] Expense Management - Sales and marketing expense for Q3 2024 was reported at $96,576,000, an increase of 1.2% from $94,947,000 in Q3 2023[19] - General and administrative expense for Q3 2024 was reported at $33,561,000, up 23.1% from $27,136,000 in Q3 2023[20] - Research and development expense for Q3 2024 was reported at $17,294,000, a decrease of 6.8% from $18,559,000 in Q3 2023[20] - Non-operating expense for Q3 2024 was reported at $7,738,000, an increase of 96.5% from $3,936,000 in Q3 2023[21] - Adjusted general and administrative expense as a percentage of net sales for Q3 2024 was 11.7%, slightly down from 11.8% in Q3 2023[20] - Adjusted research and development expense as a percentage of net sales for Q3 2024 was 8.8%, down from 8.9% in Q3 2023[20] - Non-operating expense as a percentage of net sales, as adjusted, for Q3 2024 was 2.7%, up from 0.9% in Q3 2023[21] - Strategic investments impacted sales and marketing expense by $65,000 in Q3 2024, compared to $(1,680,000) in Q3 2023[19] - Litigation and investigation costs impacted general and administrative expense by $(8,712,000) in Q3 2024, compared to $(3,852,000) in Q3 2023[20] Cash Flow - Net cash from operating activities for the nine months ended September 30, 2024, was $2,060 thousand, a recovery from a net cash outflow of $(39,059) thousand for the same period in 2023[17] - Free cash flow for the nine months ended September 30, 2024, was $(24,285) thousand, an improvement from $(86,056) thousand for the same period in 2023[18] Credit and Financing - The company announced a new $275 million credit facility to optimize its capital structure for long-term growth[1]