Orthofix Investor Presentation Deck
Proforma Non-GAAP Financial Measures
Adjusted EBITDA
Loss before income taxes
Non-GAAP adjustments
Interest expense, net
($ in millions)
Depreciation and intangible asset amortization expense
Share-based compensation expense
Foreign exchange impact and other non-operating expense/(gain)
SeaSpine merger-related expenses
Strategic investments
Acquisition-related fair value adjustments
Loss on investment securities
Legal judgments/settlements
Medical device regulation
Business interruption - COVID-19
Succession and transition charges
Spinal set instrument replacement expense
European sales and marketing organization restructuring
Total Non-GAAP adjustments
Adjusted EBITDA loss
Adjusted Gross Margin
($ in millions)
Total revenue, net
Gross profit
Add back:
Share-based compensation expense
SeaSpine merger-related costs
Strategic investments
OFIX
$ (9.372) $
$
Q3 22 (Proforma)
$
0.277 $
7.570
4.728
3.253
2.937
0.455
0.419
(0.001)
0.125
2.582
1.216
0.068
$
SPNE
NewCo
(15.111) $ (24.483)
1.866
0.152
$23.629 $ 12.402 $36.031
11.548
14.257 $ (2.709) $
0.195
0.149 $ 0.426
4.341
11.911
3.652
8.380
0.270
3.523
1.412
4.349
0.016
0.471
0.419
(0.001)
0.669
2.582
1.216
0.304
0.544
Q3 22 (Proforma)
OFIX
SPNE
NewCo
113.996 $ 67.772 $ 181.768
$
$ 83.423 $ 38.585 $122.008 (1)
0.068
1.866
0.152
0.103
Acquisition-related fair value adjustments
Amortization/depreciation of acquired long-lived assets
Medical device regulation
Adjusted gross profit
83.922 $ 38.688 $
73.6%
Adjusted gross margin (Adjusted gross profit / Total revenue, net)
57.1%
(1) SeaSpine gross profit reflects reclassifications of certain expenses to conform to Orthofix presentation.
0.299
0.304
122.611
67.5%
Q3 23 Q3 22 Change
$ (28.385) $ (24.483) $ (3.902)
$ 1.576 $ 0.426 $
13.097
11.911
6.274
8.380
1.909
3.523
5.416
4.349
0.471
0.419
(0.001)
0.669
2.582
1.216
0.068
1.866
0.152
1.150
1.186
(2.106)
(1.614)
1.067
0.442
6.703
0.001
3.182
(0.742)
(1.216)
(0.160)
(1.866)
(0.152)
$ 41.906 $36.031 $ 5.875
$ 13.521 $ 11.548 $ 1.973
0.913
7.122
$
NewCo
3.851
1.840
(0.092)
Q3 23
Q3 22 Change
$184.006 $181.768 $ 2.239
$ 119.763 $ 122.008 $
(2.245)
NewCo
0.463 $ 0.299 $
2.161
0.055
7.922
0.280
0.006
$130.650 $
71.0%
0.304
122.611 $
67.5%
Ⓒ2023 Orthofix Medical Inc. All rights reserved | 20
0.164
2.161
(0.249)
7.922
0.280
0.006
8.039
3.5%
On the Company's Q3 2023 earnings call held on November 8,
2023, Orthofix management presented Proforma Adjusted
EBITDA and Adjusted Proforma Gross Margin, both of which are
non-GAAP financial measures, for the 3rd quarter of
2022. Those proforma non-GAAP financial measures are
intended to report the financial impact of the merger with
SeaSpine on Adjusted EBITDA and Adjusted Gross Margin as if
the merger had occurred on January 1, 2022, in order to assist
investors with comparing those proforma results to those same
non-GAAP financial measures as reported for the 3rd quarter of
2023.
A reconciliation of proforma Adjusted EBITDA for each quarter
of 2022 to the nearest GAAP financial measure for each of
SeaSpine and Orthofix is presented on this slide.
For further information on the reasons for and nature of non-
GAAP disclosures by Orthofix and descriptions of the
adjustments used to calculate non-GAAP financial measures,
please see the Company's Current Report on Form 8 K filed on
November 8, 2023.
ORTHOFIX®Ⓡ
SeaSpine.View entire presentation