On August 6, 2024, Orthofix Medical Inc (OFIX, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. Orthofix Medical Inc. is a medical device company delivering orthopedic and spine solutions to healthcare providers. The company has two main segments: global spine, including bone growth and healing therapies, spinal implants, and regenerative tissue products; and global orthopedics, providing products used in fracture repair, deformity correction, and bone reconstruction procedures. The majority of the company's sales come from the global spine segment in the United States. Orthofix distributes its products throughout North America, Europe, and several countries globally. The company provides solutions to hospitals, physicians, other healthcare providers, and patients.
Performance and Challenges
Orthofix Medical Inc (OFIX, Financial) reported net sales of $198.6 million for Q2 2024, a 6% increase compared to the same period in 2023. Despite this growth, the company faced a net loss of $(33.4) million, or $(0.88) per share, which is an improvement from the $(39.4) million, or $(1.07) per share, loss in Q2 2023. The company's performance is crucial as it reflects its ability to grow revenue while managing costs and improving profitability.
Financial Achievements
Orthofix Medical Inc (OFIX, Financial) achieved significant milestones in Q2 2024, including:
- Bone Growth Therapies (BGT) net sales growth of 12% compared to Q2 2023, marking six consecutive quarters of double-digit net sales increases.
- U.S. Spine Fixation net sales growth of 12%, driven by distribution expansion and further penetration in existing accounts.
- Global Orthopedics net sales growth of 5% on a reported basis and 6% on a constant currency basis.
- Non-GAAP adjusted EBITDA of $16.6 million, an increase of $6.7 million, with an adjusted EBITDA margin expanding 310 basis points compared to Q2 2023.
These achievements are vital for Orthofix Medical Inc (OFIX, Financial) as they demonstrate the company's ability to grow its core business segments and improve operational efficiency.
Income Statement Highlights
The following table provides net sales by major product category by reporting segment:
| Category | Q2 2024 | Q2 2023 | Change | Constant Currency Change |
|---|---|---|---|---|
| Bone Growth Therapies | $59.1 million | $52.7 million | 12.3% | 12.3% |
| Spinal Implants, Biologics and Enabling Technologies | $108.9 million | $105.3 million | 3.4% | 3.4% |
| Global Spine | $168.0 million | $158.0 million | 6.4% | 6.4% |
| Global Orthopedics | $30.6 million | $29.0 million | 5.3% | 5.3% |
| Net Sales | $198.6 million | $187.0 million | 6.2% | 6.2% |
Balance Sheet and Cash Flow
As of June 30, 2024, Orthofix Medical Inc (OFIX, Financial) reported cash, cash equivalents, and restricted cash totaling $28.9 million, compared to $29.5 million on March 31, 2024. The company also noted significant improvement in cash usage, paving the way for earlier than expected positive free cash flow for the second half of 2024.
Business Outlook
Orthofix Medical Inc (OFIX, Financial) has increased its full-year 2024 guidance as follows:
- Net sales are expected to range between $795 million to $800 million, representing implied growth of 6.7% to 7.4% year-over-year on a constant currency basis.
- Non-GAAP adjusted EBITDA is expected to range from $64 million to $69 million.
- The company now expects to be free cash flow positive for the second half of 2024.
“We delivered another strong quarter driven by successful execution of our key growth priorities,” said Massimo Calafiore, President and Chief Executive Officer. “Highlights in the quarter included notable revenue growth across each of our business segments where our performance was led primarily by strength in our U.S. markets, including Bone Growth Therapies, which grew 12%, and further highlights the benefit of cross-selling in our integrated spine channel. In addition, we delivered growth of 12% in U.S. Spine fixation, more than twice the market rate. Based on continued positive momentum, the strength of our differentiated and expanding product portfolio, which continues to win share, and our confidence in sustainable growth trends, we are raising our full-year net sales and adjusted EBITDA guidance. We also are on track to achieve positive free cash flow for the second half of this year, much earlier than we originally anticipated.”
Orthofix Medical Inc (OFIX, Financial) will host a conference call today at 8:30 AM Eastern time to discuss the company's financial results for the quarter ended June 30, 2024. Interested parties may access the
Explore the complete 8-K earnings release (here) from Orthofix Medical Inc for further details.
