• ZimVie Reports Fourth Quarter and Full Year 2024 Financial Results

    ソース: Nasdaq GlobeNewswire / 26 2 2025 16:05:01   America/New_York

    • FY2024 Third Party Net Sales from Continuing Operations of $449.7 million
    • FY2024 Net Loss from Continuing Operations of $(33.8) million; Net Loss margin of (7.5%)
    • FY2024 Adjusted EBITDA[1] from Continuing Operations of $60.0 million; Adjusted EBITDA[1] margin of 13.3%
    • FY2024 GAAP diluted EPS from Continuing Operations of $(1.23) and adjusted diluted EPS[1] of $0.62

    PALM BEACH GARDENS, Fla., Feb. 26, 2025 (GLOBE NEWSWIRE) -- ZimVie Inc. (Nasdaq: ZIMV), a global life sciences leader in the dental market, today reported financial results for the quarter and year ended December 31, 2024. Management will host a corresponding conference call today, February 26, 2025, at 4:30 p.m. Eastern Time.

    “2024 was a transformational year for ZimVie. We became a pure play dental company and reshaped our financial profile, reducing net debt[1]  by more than $290 million. We also streamlined our organization through corporate cost reduction, introduced manufacturing and supply chain efficiency initiatives, and increased Adjusted EBITDA margins by over 4 percentage points in the fourth quarter of 2024 compared to the fourth quarter of 2023 despite a softer end market,” said Vafa Jamali, President and Chief Executive Officer. “We continue to be optimistic about the long-term drivers of the dental implant market, supported by the continued success of our training and education programs in 2024. I believe ZimVie is well positioned to take advantage of the growth in the dental implant and digital solutions market for 2025 and beyond.”

    Fourth Quarter 2024 Financial Results: Continuing Operations

    Third party net sales for the fourth quarter of 2024 were $111.5 million, a decrease of 1.4% on a reported basis and 0.9% in constant currency[1], versus the fourth quarter of 2023.

    Net loss for the fourth quarter of 2024 was $(9.7) million, an improvement of $12.5 million versus a net loss of $(22.2) million in the fourth quarter of 2023. Net loss margin for the fourth quarter of 2024 was (8.7)% of third party net sales, an improvement of 1,090 basis points versus a net loss margin of (19.6)% in the fourth quarter of 2023.

    Adjusted net income[1] for the fourth quarter of 2024 was $7.6 million, an increase of $5.0 million versus the fourth quarter of 2023.

    Basic and diluted EPS were $(0.35) and adjusted diluted EPS[1] was $0.27 for the fourth quarter of 2024. Weighted average shares outstanding for both basic and adjusted diluted EPS was 27.6 million.

    Adjusted EBITDA[1] for the fourth quarter of 2024 was $18.4 million, or 16.5% of third party net sales, an increase of $4.5 million, or 420 basis points, versus the fourth quarter of 2023.

    Full Year 2024 Financial Results: Continuing Operations

    Third party net sales for the full year 2024 were $449.7 million, a decrease of 1.6% on a reported basis and 1.2% in constant currency[1], versus the full year 2023.

    Net loss for the full year 2024 was $(33.8) million, an improvement of $22.2 million versus a net loss of $(56.0) million for the full year 2023. Net loss margin for the full year 2024 was (7.5)% of third party net sales, an improvement of 480 basis points versus a net loss margin of (12.3)% for the full year 2023.

    Adjusted net income[1] for the full year 2024 was $17.0 million, an increase of $11.1 million versus the full year 2023.

    Basic and diluted EPS were $(1.23) and adjusted diluted EPS[1] was $0.62 for the full year 2024. Weighted average shares outstanding for both basic and adjusted diluted EPS was 27.4 million.

    Adjusted EBITDA[1] for the full year 2024 was $60.0 million, or 13.3% of third party net sales, an increase of $9.2 million, or 220 basis points, versus the full year 2023.

    Full Year 2025 Continuing Operations Financial Guidance:

    Projected Year Ending December 31, 2025GuidanceReported Growth

    		Constant
    Currency Growth    [2]
    Net Sales$445M to $460M(1%) to 2%Flat to 3%
    Adjusted EBITDA [2]$65M to $70M8% to 17%8% to 17%
    Adjusted EPS[2]$0.80 to $0.9529% to 53%31% to 55%

    [1] This is a non-GAAP financial measure. Refer to “Note on Non-GAAP Financial Measures” and the reconciliations in this release for further information.
    [2] This is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. Refer to “Forward-Looking Non-GAAP Financial Measures” in this release, which identifies the information that is unavailable without unreasonable efforts and provides additional information. It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure. 

    Conference Call

    ZimVie will host a conference call today, February 26, 2025, at 4:30 p.m. ET to discuss its fourth quarter and full year 2024 financial results. To access the call, please register online at https://investor.zimvie.com/events-presentations/event-calendar. A live and archived audio webcast will also be available on this site.

    About ZimVie

    ZimVie is a global life sciences leader in the dental market that develops, manufactures, and delivers a comprehensive portfolio of products and solutions designed to support dental tooth replacement and restoration procedures. From its headquarters in Palm Beach Gardens, Florida, and additional facilities around the globe, ZimVie works to improve smiles, function, and confidence in daily life by offering comprehensive tooth replacement solutions, including trusted dental implants, biomaterials, and digital workflow solutions. As a worldwide leader in this space, ZimVie is committed to advancing clinical science and technology foundational to restoring daily life. For more information about ZimVie, please visit us at www.ZimVie.com. Follow @ZimVie on Twitter, Facebook, LinkedIn, or Instagram.

    Note on Non-GAAP Financial Measures

    This press release includes non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.

    Net debt is provided in this release for certain periods and is calculated by subtracting cash and cash equivalents on a GAAP basis from the non-current portion of debt on a GAAP basis, as detailed in the reconciliations presented later in this press release.

    Sales change information in this release is presented on a GAAP (reported) basis and on a constant currency basis. Constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales from Continuing Operations at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases.

    Net income (loss) and diluted earnings (loss) per share in this release are presented on a GAAP (reported) basis and on an adjusted basis. Adjusted net income (loss) and adjusted diluted earnings (loss) per share exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in this press release.

    Adjusted EBITDA is a non-GAAP financial measure provided in this release for certain periods and is calculated by excluding certain items from net income (loss) from Continuing Operations on a GAAP basis, as detailed in the reconciliations presented later in this press release. Adjusted EBITDA margin is Adjusted EBITDA divided by third party net sales from Continuing Operations for the applicable period.

    Adjusted cost of products sold (excluding intangible asset amortization). adjusted R&D and adjusted SG&A (on an actual basis and as a percentage of sales) are non-GAAP financial measures provided in this presentation for certain periods and are calculated by excluding the effects of certain items from cost of products sold (excluding intangible asset amortization), R&D and SG&A, respectively, on a GAAP basis. as detailed in the reconciliations presented later in this presentation.

    Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are included in this press release.

    Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income, but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures.

    Forward-Looking Non-GAAP Financial Measures

    This press release also includes certain forward-looking non-GAAP financial measures for the year ending December 31, 2025. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. For example, the timing of certain transactions is difficult to predict because management’s plans may change. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

    Cautionary Note Regarding Forward-Looking Statements

    This press release 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,” “targets,” “forecasts,” “sees,” “seeks,” “should,” “could,” “would,” “predicts,” “potential,” “strategy,” “future,” “opportunity,” “work toward,” “intends,” “guidance,” “confidence,” “positioned,” “design,” “strive,” “continue,” “track,” “look forward to,” “optimistic” and similar expressions to identify forward-looking statements. All statements other than statements of historical or current fact are or may be deemed to be forward-looking statements. Such statements are based upon the current beliefs, expectations, and assumptions of management and are subject to significant risks, uncertainties, and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: dependence on new product development, technological advances and innovation; shifts in the product category or regional sales mix of our products and services; supply and prices of raw materials and products, including impacts from tariffs; pricing pressures from competitors, customers, dental practices and insurance providers; changes in customer demand for our products and services caused by demographic changes or other factors; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the U.S. Food and Drug Administration and foreign government regulators, such as more stringent requirements for regulatory clearance of products; competition; the impact of healthcare reform measures; reductions in reimbursement levels by third-party payors; cost containment efforts sponsored by government agencies, legislative bodies, the private sector and healthcare group purchasing organizations, including the volume-based procurement process in China; control of costs and expenses; dependence on a limited number of suppliers for key raw materials and outsourced activities; the ability to obtain and maintain adequate intellectual property protection; breaches or failures of our information technology systems or products, including by cyberattack, unauthorized access or theft; the ability to retain the independent agents and distributors who market our products; our ability to attract, retain and develop the highly skilled employees we need to support our business; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; a determination by the Internal Revenue Service that the distribution of our shares of common stock by Zimmer Biomet Holdings, Inc. in 2022 (the "distribution") or certain related transactions should be treated as taxable transactions; financing transactions undertaken in connection with the separation and risks associated with additional indebtedness; the impact of the separation on our businesses and the risk that the separation and the results thereof may be more difficult, time consuming and/or costly than expected, which could impact our relationships with customers, suppliers, employees and other business counterparties; restrictions on activities following the distribution in order to preserve the tax-free treatment of the distribution; the ability to form and implement alliances; changes in tax obligations arising from tax reform measures, including European Union rules on state aid, or examinations by tax authorities; product liability, intellectual property and commercial litigation losses; changes in general industry and market conditions, including domestic and international growth rates; changes in general domestic and international economic conditions, including inflation and interest rate and currency exchange rate fluctuations; and the effects of global pandemics and other adverse public health developments on the global economy, our business and operations and the business and operations of our suppliers and customers, including the deferral of elective procedures and our ability to collect accounts receivable. You are cautioned not to rely on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

    Media Contact Information:

    ZimVie
    Grace Flowers • Grace.Flowers@ZimVie.com
    (561) 319-6130

    Investor Contact Information:

    Gilmartin Group LLC
    Webb Campbell • Webb@gilmartinir.com 


     
    ZIMVIE INC.
    CONSOLIDATED STATEMENT OF OPERATIONS
    (in thousands, except per share data)
     
     (unaudited)
    For the Three Months
    Ended December 31,    		 For the Years
    Ended December 31,
      2024   2023   2024   2023 
    Net Sales       
    Third party, net$111,521  $113,066  $449,749  $457,197 
    Related party, net —   —   —   236 
    Total Net Sales  111,521   113,066   449,749   457,433 
    Cost of products sold, excluding intangible asset amortization (38,707)  (42,573)  (162,303)  (166,819)
    Related party cost of products sold, excluding intangible asset amortization —   —   —   (231)
    Intangible asset amortization (5,994)  (6,134)  (24,053)  (26,512)
    Research and development (6,621)  (6,893)  (26,905)  (26,162)
    Selling, general and administrative (58,564)  (62,909)  (238,589)  (248,964)
    Restructuring and other cost reduction initiatives (2,017)  717   (5,681)  (4,489)
    Acquisition, integration, divestiture and related (5,948)  (10,548)  (12,882)  (15,195)
    Operating expenses (117,851)  (128,340)  (470,413)  (488,372)
    Operating Loss  (6,330)  (15,274)  (20,664)  (30,939)
    Other income, net 2,748   1,515   8,908   326 
    Interest income 2,111   583   7,050   2,512 
    Interest expense (4,120)  (5,559)  (18,887)  (22,746)
    Loss from continuing operations before income taxes (5,591)  (18,735)  (23,593)  (50,847)
    Provision for income taxes from continuing operations (4,077)  (3,428)  (10,237)  (5,202)
    Net Loss from Continuing Operations of ZimVie Inc. (9,668)  (22,163)  (33,830)  (56,049)
    Income (loss) from discontinued operations, net of tax (2,097)  (312,689)  8,005   (337,233)
    Net Loss of ZimVie Inc.$(11,765) $(334,852) $(25,825) $(393,282)
            
    Basic (Loss) Earnings Per Common Share:       
    Continuing operations$(0.35) $(0.83) $(1.23) $(2.12)
    Discontinued operations (0.08)  (11.76)  0.29   (12.75)
    Net Loss$(0.43) $(12.59) $(0.94) $(14.87)
            
    Diluted (Loss) Earnings Per Common Share       
    Continuing operations$(0.35) $(0.83) $(1.23) $(2.12)
    Discontinued operations (0.08)  (11.76)  0.29   (12.75)
    Net Loss$(0.43) $(12.59) $(0.94) $(14.87)
            


    ZIMVIE INC.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share data)
     
     As of December 31,
      2024   2023 
    ASSETS   
    Current Assets:   
    Cash and cash equivalents$74,974  $71,511 
    Accounts receivable, net 65,211   65,168 
    Inventories 75,018   79,600 
    Prepaid expenses and other current assets 23,295   23,825 
    Current assets of discontinued operations 18,787   242,773 
    Total Current Assets 257,285   482,877 
    Property, plant and equipment, net
    		 47,268   54,167 
    Goodwill 257,605   262,111 
    Intangible assets, net 92,734   114,354 
    Note receivable 64,643   — 
    Other assets 26,611   26,747 
    Noncurrent assets of discontinued operations 7,528   265,089 
    Total Assets$753,674  $1,205,345 
    LIABILITIES AND EQUITY   
    Current Liabilities:   
    Accounts payable$32,958  $27,785 
    Income taxes payable 3,263   2,863 
    Other current liabilities 62,905   67,108 
    Current liabilities of discontinued operations 34,818   75,858 
    Total Current Liabilities 133,944   173,614 
    Deferred income taxes —   265 
    Lease liability 8,218   9,080 
    Other long-term liabilities 9,232   9,055 
    Non-current portion of debt 220,451   508,797 
    Noncurrent liabilities of discontinued operations 122   95,041 
    Total Liabilities 371,967   795,852 
    Commitments and Contingencies    
    Stockholders' Equity:   
    Common stock, $0.01 par value, 150,000 shares authorized Shares, issued and outstanding, of 27,677 and 27,076, respectively 277   271 
    Preferred stock, $0.01 par value, 15,000 shares authorized, 0 shares issued and outstanding —   — 
    Additional paid in capital 938,630   922,996 
    Accumulated deficit (466,639)  (440,814)
    Accumulated other comprehensive loss (90,561)  (72,960)
    Total Stockholders' Equity 381,707   409,493 
    Total Liabilities and Stockholders' Equity$753,674  $1,205,345 
        


    ZIMVIE INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
     
     For the Years Ended December 31,
      2024  2023 
    Cash flows provided by operating activities:  
    Net loss of ZimVie Inc.$(25,825)$(393,282)
    Adjustments to reconcile net loss to net cash provided by operating activities:  
    Depreciation and amortization 34,312  121,686 
    Share-based compensation 16,592  27,020 
    Deferred income tax provision (4,243) (17,088)
    Loss on disposal of fixed assets 5,518  2,996 
    Other non-cash items 4,985  3,245 
    Gain on sale of spine disposal group (11,079) — 
    Adjustment of spine disposal group to fair value (11,143) 289,456 
    Changes in operating assets and liabilities:  
    Income taxes 3,253  (15,054)
    Accounts receivable (4,202) 21,083 
    Related party receivables —  8,483 
    Inventories 6,443  25,446 
    Prepaid expenses and other current assets (3,015) 5,340 
    Accounts payable and accrued liabilities 8,323  (24,759)
    Related party payable —  (13,176)
    Other assets and liabilities (5,745) (4,248)
       Net cash provided by operating activities 14,174  37,148 
    Cash flows provided by (used in) investing activities:  
    Additions to instruments (1,330) (5,978)
    Additions to other property, plant and equipment (5,352) (6,509)
    Proceeds from sale of spine disposal group, net of cash disposed 290,918  — 
    Other investing activities (1,940) (2,687)
       Net cash provided by (used in) investing activities 282,296  (15,174)
    Cash flows used in financing activities:  
    Proceeds from debt —  4,760 
    Payments on debt (290,000) (29,304)
    Payments related to tax withholding for share-based compensation (2,825) (3,402)
    Proceeds from stock plan activity 1,872  2,280 
    Business combination contingent consideration payments (3,712) — 
       Net cash used in financing activities (294,665) (25,666)
    Effect of exchange rates on cash and cash equivalents (13,001) 1,859 
       Decrease in cash and cash equivalents (11,196) (1,833)
    Cash and cash equivalents, beginning of year 87,768  89,601 
    Cash and cash equivalents, end of period$76,572 $87,768 
    Presentation includes cash of both continuing and discontinued operations


    RECONCILIATION OF NET DEBT
    Continuing Operations ($ in thousands)

     As of December 31,
      2024   2023 
    Non-current portion of debt$220,451  $508,797 
    Less: Cash and cash equivalents (74,974)  (71,511)
    Net Debt$145,477  $437,286 


    RECONCILIATION OF CONSTANT CURRENCY NET SALES
    Continuing Operations ($ in thousands)

     For the Three Months
    Ended December 31,    		        
      2024   2023  Change (%) Foreign
    Exchange
    Impact    		Constant
    Currency %
    Change
    United States$64,402  $65,383  (1.5%) 0.0%(1.5%)
    International 47,119   47,683  (1.2%) (1.2%)(0.0%)
    Total Dental Third Party Sales 111,521   113,066  (1.4%) (0.5%)(0.9%)
    Related Party Net Sales -   -  0.0% 0.0%0.0%
    Total Dental Net Sales$111,521  $113,066  (1.4%) (0.5%)(0.9%)


     For the Years
    Ended December 31,
    		        
      2024   2023  Change (%) Foreign
    Exchange
    Impact    		Constant
    Currency %
    Change
    United States$266,816  $269,557  (1.0%) 0.0%(1.0%)
    International 182,933   187,640  (2.5%) (1.0%)(1.5%)
    Total Dental Third Party Sales 449,749   457,197  (1.6%) (0.4%)(1.2%)
    Related Party Net Sales -   236  (100.0%) 0.0%(100.0%)
    Total Dental Net Sales$449,749  $457,433  (1.7%) (0.4%)(1.3%)
             


    RECONCILIATION OF ADJUSTED NET INCOME AND DILUTED EPS
    Continuing Operations (in thousands, except per share data)

     For the Three Months Ended December 31, 2024
     Net SalesCost of
    products sold,
    excluding
    intangible
    asset
    amortization    		Operating
    expenses,
    excluding
    cost of
    products
    sold    		Operating
    (Loss)
    Income    		Net
    (Loss)
    Income    		Diluted EPS
    Reported$111,521 $(38,707)$(79,144)$(6,330)$(9,668)$(0.35)
    Restructuring and other cost reduction initiatives [1] -  -  2,017  2,017  2,017  0.07 
    Acquisition, integration, divestiture and related [2] -  -  5,948  5,948  5,948  0.22 
    Intangible asset amortization -  -  5,994  5,994  5,994  0.22 
    European union medical device regulation [3] -  -  766  766  766  0.03 
    Other charges [4] -  (289) -  (289) (289) (0.01)
    Litigation settlement [5] -  -  1,095  1,095  1,095  0.04 
    Share-based compensation modification [6] -  -  283  283  283  0.01 
    Tax effect of above adjustments & other [7] -  -  -  -  1,419  0.04 
    Adjusted$111,521 $(38,996)$(63,041)$9,484 $7,565 $0.27 


     For the Three Months Ended December 31, 2023
     Net SalesCost of
    products sold,
    excluding
    intangible
    asset
    amortization    		Operating
    expenses,
    excluding
    cost of
    products
    sold    		Operating
    (Loss)
    Income    		Net
    (Loss)
    Income    		Diluted EPS
    Reported$113,066 $(42,573)$(85,767)$(15,274)$(22,163)$(0.83)
    Restructuring and other cost reduction initiatives [1] -  -  (717) (717) (717) (0.03)
    Acquisition, integration, divestiture and related [2] -  -  10,548  10,548  10,548  0.41 
    Intangible asset amortization -  -  6,134  6,134  6,134  0.23 
    European union medical device regulation [3] -  -  347  347  347  0.01 
    Other charges [4] -  278  286  564  564  0.02 
    Spin-related share-based compensation expense [8] -  -  5,335  5,335  5,335  0.20 
    Tax effect of above adjustments & other [7] -  -  -  -  2,524  0.09 
    Adjusted$113,066 $(42,295)$(63,834)$6,937 $2,572 $0.10 
     
    [1] Restructuring activities to better position the organization and the expenses incurred were primarily related to employee termination benefits and professional fees.  
    [2] Acquisition, integration, divestiture and related expenses for the three months ended December 31, 2024 include the write-off of software costs incurred prior to the separation that were determined in the fourth quarter of 2024 to be unusable for ZimVie's current enterprise resource planning software system plans ($4.9 million), as well as professional services fees ($0.6 million) and stranded costs ($0.4 million) related to the sale of the spine segment. Acquisition, integration, divestiture and related expenses for the three months ended December 31, 2023 include professional services fees ($10.0 million) related to the sale of the spine segment and rebranding costs ($0.4 million) related to the separation from our former parent.
    [3] Expenses incurred for initial compliance with the European Union (“EU”) Medical Device Regulation (“MDR”) for previously-approved products.
    [4] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
    [5] Legal expenses associated with the defense of claims that are outside the ordinary course of business.
    [6] Net impact to share-based compensation expense of converting outstanding restricted stock units (“RSUs”) with performance-based metrics based on the consolidated results of the spine and dental segments into time-based RSUs following the sale of the spine segment.
    [7] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
    [8] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet.
     


     For the Year Ended December 31, 2024
     Net SalesCost of
    products sold,
    excluding
    intangible
    asset
    amortization    		Operating
    expenses,
    excluding
    cost of
    products
    sold    		Operating
    (Loss)
    Income    		Net
    (Loss)
    Income    		Diluted EPS
    Reported$449,749 $(162,303)$(308,110)$(20,664)$(33,830)$(1.23)
    Restructuring and other cost reduction initiatives [1] -  -  5,681  5,681  5,681  0.21 
    Acquisition, integration, divestiture and related [2] -  -  12,882  12,882  12,882  0.47 
    Intangible asset amortization -  -  24,053  24,053  24,053  0.88 
    European union medical device regulation [3] -  -  1,884  1,884  1,884  0.07 
    Other charges [4] -  1,144  -  1,144  1,144  0.04 
    Litigation settlement [5] -  -  1,095  1,095  1,095  0.04 
    Share-based compensation modification [6] -  -  (238) (238) (238) (0.01)
    Tax effect of above adjustments & other [7] -  -  -  -  4,281  0.15 
    Adjusted$449,749 $(161,159)$(262,753)$25,837 $16,952 $0.62 


     For the Year Ended December 31, 2023
     Net SalesCost of
    products sold,
    excluding
    intangible
    asset
    amortization    		Operating
    expenses,
    excluding
    cost of
    products
    sold    		Operating
    (Loss)
    Income    		Net
    (Loss)
    Income    		Diluted EPS
    Reported$457,433 $(167,050)$(321,322)$(30,939)$(56,049)$(2.12)
    Restructuring and other cost reduction initiatives [1] -  -  4,489  4,489  4,489  0.17 
    Acquisition, integration, divestiture and related [2] -  -  15,195  15,195  15,195  0.57 
    Intangible asset amortization -  -  26,512  26,512  26,512  1.00 
    Related party (236) 231  -  (5) (5) - 
    European union medical device regulation [3] -  -  2,574  2,574  2,574  0.10 
    Other charges [4] -  1,143  1,145  2,288  2,288  0.09 
    Spin-related share-based compensation expense [8] -  -  7,679  7,679  7,679  0.29 
    Tax effect of above adjustments & other [7] -  -  -  -  3,152  0.12 
    Adjusted$457,197 $(165,676)$(263,728)$27,793 $5,835 $0.22 
     
    [1] Restructuring activities to better position the organization and the expenses incurred were primarily related to employee termination benefits and professional fees.  
    [2] Acquisition, integration, divestiture and related expenses for the year ended December 31, 2024 include the write-off of software costs incurred prior to the separation that were determined in the fourth quarter of 2024 to be unusable for ZimVie's current enterprise resource planning software system plans ($4.9 million) and professional services fees ($2.4 million) related to the evaluation of strategic alternatives for our portfolio, as well as professional services fees ($3.9 million) and stranded costs ($1.5 million) related to the sale of the spine segment. Acquisition, integration, divestiture and related expenses for the year ended December 31, 2023 include professional services fees ($11.6 million) related to the sale of our spine segment, as well as professional services fees ($1.8 million), rebranding costs ($0.9 million) and information technology costs ($0.7 million) related to the separation from our former parent.
    [3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
    [4] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
    [5] Legal expenses associated with the defense of claims that are outside the ordinary course of business.
    [6] Net impact to share-based compensation expense of converting outstanding RSUs with performance-based metrics based on the consolidated results of the spine and dental segments into time-based RSUs following the sale of the spine segment.
    [7] Reflects the tax effect of the adjustments from reported to adjusted, as well as an adjustment for management’s expectation of ZimVie’s statutory tax rate based on current tax law and adjusted pre-tax income.
    [8] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet.


    RECONCILIATION OF ADJUSTED EBITDA:
    Continuing Operations ($ in thousands)

     For the Three Months
    Ended December 31,    		 For the Years
    Ended December 31,
      2024   2023   2024   2023 
    Net Sales       
    Total Third Party Sales$111,521  $113,066  $449,749  $457,197 
    Related Party Sales -   -   -   236 
    Total Net Sales$111,521  $113,066  $449,749  $457,433 
    Net Loss$(9,668) $(22,163) $(33,830) $(56,049)
    Interest expense, net 2,009   4,976   11,837   20,234 
    Income tax provision 4,077   3,428   10,237   5,202 
    Depreciation and amortization 8,358   7,908   33,168   34,507 
    EBITDA 4,776   (5,851)  21,412   3,894 
    Share-based compensation 4,118   9,316   15,879   23,476 
    Restructuring and other cost reduction initiatives [1] 2,017   (717)  5,681   4,489 
    Acquisition, integration, divestiture and related [2] 5,948   10,548   12,882   15,195 
    Related party gain -   -   -   (5)
    European Union medical device regulation [3] 766   347   1,884   2,574 
    Litigation settlement [4] 1,095   -   1,095   - 
    Other charges [5] (289)  278   1,144   1,143 
    Adjusted EBITDA$18,431  $13,921  $59,977  $50,766 
    Net Loss Margin [6] (8.7%)  (19.6%)  (7.5%)  (12.3%)
    Adjusted EBITDA Margin [7] 16.5%   12.3%   13.3%   11.1% 
     
    [1] Restructuring activities to better position our organization for future success based on the current business environment and sale of the spine business, primarily related to employee termination benefits and professional fees.
    [2] Acquisition, integration, divestiture and related expenses for the three months and year ended December 31, 2024 include the write-off of software costs incurred prior to the separation that were determined in the fourth quarter of 2024 to be unusable for ZimVie's current enterprise resource planning software system plans ($4.9 million and $4.9 million, respectively) and professional services fees ($0 and $2.4 million, respectively) related to the evaluation of strategic alternatives for our portfolio, as well as professional services fees ($0.6 million and $3.9 million, respectively) and stranded costs ($0.4 million and $1.5 million, respectively) related to the sale of the spine segment. Acquisition, integration, divestiture and related expenses for the three months and year ended December 31, 2023 include professional services fees ($10.0 million and $11.6 million, respectively) related to the sale of our spine segment, as well as professional services fees ($0 and $1.8 million, respectively), rebranding costs ($0.4 million and $0.9 million, respectively) and information technology costs ($0 and $0.7 million, respectively) related to the separation from our former parent.
    [3] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
    [4] Legal expenses associated with the defense of claims that are outside the ordinary course of business.
    [5] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
    [6] Net Loss Margin is calculated as Net Loss divided by third party net sales for the applicable period.
    [7] Adjusted EBITDA Margin is Adjusted EBITDA divided by third party net sales for the applicable period.


     

    RECONCILIATION OF ADJUSTED COST OF PRODUCTS SOLD (excluding intangible asset amortization), R&D and SG&A:
    Continuing Operations ($ in thousands)

     Three Months Ended
    December 31,
    		 Percentage of Third Party Net Sales
    		 Years Ended
    December 31,    		 Percentage of Third Party Net Sales
      2024   2023  2024 2023  2024   2023  2024 2023
    Cost of products sold, excluding intangible asset amortization$(38,707) $(42,573) (34.7%) (37.7%) $(162,303) $(166,819) (36.1%) (36.5%)
    Other charges [1] (289)  278  (0.3%) 0.3%  1,144   1,143  0.3% 0.3%
    Adjusted cost of products sold, excluding intangible asset amortization$(38,996) $(42,295) (35.0%) (37.4%) $(161,159) $(165,676) (35.8%) (36.2%)
                    
                    
      2024   2023  2024 2023  2024   2023  2024 2023
    Research and development $(6,621) $(6,893) (5.9%) (6.1%) $(26,905) $(26,162) (6.0%) (5.7%)
    European union medical device regulation [2] 766   347  0.7% 0.3%  1,884   2,574  0.4% 0.5%
    Share-based compensation modification [3] 21   -  0.0% 0.0%  (25)  -  0.0% 0.0%
    Spin-related share-based compensation expense [4] -   80  0.0% 0.1%  -   320  0.0% 0.1%
    Adjusted research and development $(5,834) $(6,466) (5.2%) (5.7%) $(25,046) $(23,268) (5.6%) (5.1%)
                    
                    
      2024   2023  2024 2023  2024   2023  2024 2023
    Selling, general and administrative $(58,564) $(62,909) (52.5%) (55.6%) $(238,589) $(248,964) (53.0%) (54.5%)
    Other charges [1] -   286  0.0% 0.3%  -   1,145  0.0% 0.3%
    Litigation settlement [5] 1,095   -  1.0% 0.0%  1,095   -  0.2% 0.0%
    Share-based compensation modification [3] 262   -  0.2% 0.0%  (213)  -  (0.1%) 0.0%
    Spin-related share-based compensation expense [4] -   5,255  0.0% 4.6%  -   7,359  0.0% 1.6%
    Adjusted selling, general and administrative $(57,207) $(57,368) (51.3%) (50.7%) $(237,707) $(240,460) (52.9%) (52.6%)
     
    [1] Inventory write-offs resulting from restructuring activities and property, plant, and equipment step-up amortization from prior acquisitions.
    [2] Expenses incurred for initial compliance with the EU MDR for previously-approved products.
    [3] Net impact to share-based compensation expense of converting outstanding RSUs with performance-based metrics based on the consolidated results of the spine and dental segments to time-based RSUs following the sale of the spine segment.
    [4] Spin-related share-based compensation expense from grants provided due to the successful separation from Zimmer Biomet.
    [5] Legal expenses associated with the defense of claims that are outside the ordinary course of business.

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