Orthofix(OFIX) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net sales reached $215.7 million, an increase of 8% year-over-year on a reported and constant currency basis[3] - Full-year 2024 net sales totaled $799.5 million, reflecting a 7% increase compared to 2023[4] - The net loss for the fourth quarter 2024 was $(29.1) million, with an EPS of $(0.75), a decline of 27% compared to the prior year[3] - Non-GAAP adjusted EBITDA for the fourth quarter was $23.9 million, representing a 22% growth year-over-year[3] - The company reported record Bone Growth Therapies net sales of $63.9 million, a 9% increase compared to the fourth quarter of 2023[5] - U.S. Spine Fixation net sales grew by 12% in the fourth quarter 2024, driven by distribution expansion[5] - Net sales for Q4 2024 reached $215,657,000, a 7.3% increase from $200,415,000 in Q4 2023[22] - Gross profit for the year ended December 31, 2024, was $545,885,000, up 12.2% from $486,273,000 in 2023[22] - Adjusted EBITDA for Q4 2024 was $23,938,000, representing 11.1% of net sales, compared to 9.8% in Q4 2023[28] - The net loss for Q4 2024 was $29,147,000, compared to a net loss of $22,174,000 in Q4 2023[22] - Free cash flow for the year ended December 31, 2024, was $(9,086,000), an improvement from $(107,803,000) in 2023[30] Future Projections - The company expects full-year 2025 net sales to range between $818 million to $826 million, implying constant currency growth of 6.5% year-over-year at the midpoint[12] - Non-GAAP adjusted EBITDA for 2025 is projected to be between $82 million to $86 million, including the impact from the discontinuation of the M6 product lines[12] - Free cash flow is expected to be positive for full-year 2025, excluding restructuring charges related to the discontinued M6 product lines[12] - The long-term net sales CAGR target has been increased to 6.5% to 7.5% from the previous target of 6% to 7%[12] Expenses and Costs - Research and development expenses for the year were $73,643,000, down from $80,231,000 in 2023[22] - Sales, general, and administrative expenses for Q4 2024 were $136,479,000, compared to $132,284,000 in Q4 2023, reflecting an increase of 1.6%[31] - Adjusted sales, general, and administrative expenses as a percentage of net sales decreased to 58.7% in Q4 2024 from 60.0% in Q4 2023[31] - Research and development expenses for Q4 2024 were reported at $18,807,000, slightly down from $18,941,000 in Q4 2023[32] - Adjusted research and development expenses as a percentage of net sales decreased to 8.1% in Q4 2024 from 8.3% in Q4 2023[32] - Total sales, general, and administrative expenses for the year ended December 31, 2024, were $532,525,000, slightly up from $530,395,000 in 2023[31] Cash and Assets - Cash and cash equivalents increased to $83,238,000 in 2024 from $33,107,000 in 2023[24] - Total assets decreased to $893,294,000 in 2024 from $925,315,000 in 2023[24] - Long-term debt increased to $157,015,000 in 2024 from $93,107,000 in 2023[24] Non-Operating Expenses - Non-operating expenses for Q4 2024 were $18,235,000, significantly higher than $3,734,000 in Q4 2023[33] - Adjusted non-operating expenses as a percentage of net sales increased to 7.0% in Q4 2024 from 2.3% in Q4 2023[33] - The foreign exchange impact on non-operating expenses was $(3,133,000) for Q4 2024[33] Strategic Investments - The company reported a strategic investment impact of $(4,073,000) on sales, general, and administrative expenses for Q4 2024[31]