Orthofix Investor Presentation Deck
Pro Forma Non-GAAP Financial Measures
On the Company's Q1 2023 earnings call held on May 9, 2023, Orthofix management presented Proforma Adjusted EBITDA Loss and Adjusted Proforma Gross Margin, both of
which are non-GAAP financial measures, for the first quarter of 2022. Those proforma non-GAAP financial measures are intended to report the financial impact of the
merger with SeaSpine on Adjusted EBITDA (Loss) 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 first quarter of 2023.
A reconciliation of those pro forma non-GAAP financial measures for the first quarter of 2022 to the nearest GAAP financial measure for each of SeaSpine and Orthofix, as
well as a comparison to Adjusted EBITDA Loss and Adjusted Gross Margin for Orthofix for the first quarter of 2023, are presented below.
For further information on the reasons for and nature of non-GAAP disclosures by Orthofix and descriptions of the adjustments used to
calculate those non GAAP financial measures, please see the Company's Current Report on Form 8 K filed on May 9, 2023.
Adjusted EBITDA
Loss before income taxes
Non-GAAP adjustments
Interest expense, net
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
($ in millions)
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
Total revenue, net
Gross profit
Add back:
($ in millions)
Share-based compensation expense
SeaSpine merger-related costs
Strategic investments
Acquisition-related fair value adjustments
Medical device regulation
$
$
Q1 22 (Proforma)
OFIX
SPNE
NewCo
(4.389) $ (16.832) $ (21.221)
0.375 $
7.516
4.332
1.242
0.970
(5.500)
0.065
0.193
1.952
0.343
0.010
$11.498
$
7.109
0.211
$
$
4.202
2.819
(0.002)
0.025
0.372
0.125
Q1 22 (Proforma)
OFIX SPNE NewCo
$106.418 $ 51.263 $157.681
$78.100 $28.966 $107.066 (1)
1.018
0.279
8.813 $20.311
(8.019) $ (0.910)
0.078
$ 0.375
11.718
7.151
1.240
1.342
(5.375)
0.065
0.193
1.952
0.343
0.010
1.018
0.279
0.125
0.025
0.125
0.006
0.006
$78.342 $ 29.169 $ 107.511
73.6% 56.9%
68.2%
Adjusted gross profit
Adjusted gross margin (Adjusted gross profit/Total revenue, net)
(1) SeaSpine gross profit reflects reclassifications of certain expenses to conform to Orthofix presentation.
0.289
NewCo
Q1 23
Q1 22
Change
$ (60.327) $ (21.221) $ (39.106)
$
1.289 $
12.670
13.020
(0.583)
20.740
0.661
11.636
0.469
3.629
0.375 $
11.718
7.151
1.240
1.342
(5.375)
0.065
0.193
1.952
43
0.010
1.018
0.279
$63.531 $ 20.311 $
$ 3.204 $ (0.910) $
$110.329 $107.066 $
©2023 Orthofix Medical Inc. All rights reserved | 20
0.914
0.952
5.869
(1.823)
20.740
NewCo
Change
Q1 23 Q1 22
$175.204 $ 157.681. $ 17.523
(0.681)
17.011
(0.065)
0.276
1.677
(0.343)
(0.010)
(1.018)
(0.279)
43.220
4.114
3.263
$ 0.471 $ 0.289 $
0.703
0.181
0.025
11.636 0.125
0.629
0.006
$123.949 $ 107.511 $ 16.438
70.7%
68.2%
11.511
0.623
2.6%
0.182
0.703
0.156
ORTHOFIX®
Sea SpineView entire presentation