Q1 2024 Enovis Corp Earnings Call Transcript
Key Points
- Enovis Corp (ENOV) reported a strong first quarter with a 27% year-over-year reported growth and 5% on a pro forma combined basis.
- The company successfully completed the acquisition of Lima, enhancing its product offerings and market reach.
- Adjusted EBITDA margin expanded by 220 basis points, driven by Recon growth, productivity improvements, and stable inflation and pricing trends.
- Significant progress in integrating the Lima acquisition, with early execution by combined teams showing positive results.
- Robust new product pipeline, including the U.S. rollout of the EMPOWR Revision Knee and the clearance of AltiVate Small Shell in Europe, positioning ENOV for continued innovation leadership.
- Integration dissynergies from the Lima acquisition impacted growth by 2% to 3%, although this was in line with projections.
- Flat performance in U.S. hips and knees sectors against a strong prior year, indicating potential challenges in these areas.
- First quarter's effective tax rate increased to 23% from 21% last year, raising the cost of operations slightly.
- Interest expenses increased significantly to $20 million for the quarter compared to $6 million in 2023, reflecting higher debt levels post-acquisition.
- While integration efforts are slightly ahead of plans, ongoing integration activities pose risks of operational disruptions and may impact short-term performance.
Good day, and welcome to the Enovis First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.
And now I would like to turn the conference over to Kyle Rose, Vice President of Investor Relations. Please go ahead.
Thank you, Marliese. Good morning, everyone, and thank you for joining us today on our first quarter 2024 results conference call. I'm Kyle Rose, Vice President of Investor Relations. Joining me on the call today are Matt Trerotola, Chair and Chief Executive Officer; and Ben Berry, Chief Financial Officer. Our earnings release was issued earlier this morning and is available in the Investor Relations section of our website, enovis.com. We will be using a slide presentation on today's call, which can also be found on our website. Both the audio and the slide presentation of this call will be archived on the website later today.
During the call, we'll be making some forward-looking statements about our beliefs and estimates regarding future events and results. These forward
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