ZimVie Shares Q3 2022 Results

ZimVie Inc., a global life sciences leader in the dental and spine markets, today reported financial results for the quarter ended September 30, 2022.
 
Third party net sales for the third quarter of 2022 were $213.3 million, a decrease of 10.6% on a reported basis and 6.8% on a constant currency basis, versus the third quarter of 2021. Third party dental segment net sales of $105.1 million decreased by $4.3 million, or 3.9% on a reported basis, but increased 1.6% on a constant currency basis.
 
The sales decrease includes the negative impact of approximately $1.0 million due to a one-day shutdown of the company’s Palm Beach Gardens dental facility during Hurricane Ian. Third party spine segment net sales of $108.2 million decreased by $21.1 million, or 16.4% on a reported basis and 13.9% on a constant currency basis, driven by the exit of a number of unprofitable markets in late 2021, the discontinuation of certain products, the impact of the third party net sales retained by Zimmer Biomet Holdings Inc., and continued competitive pressures in the spine market.
 
Net income for the third quarter of 2022 was $0.8 million, an increase of $31.1 million versus the net loss of $30.2 million in the third quarter of 2021, and as a percentage of total net sales was 0.4%. The increase in net income was primarily due to lower inventory charges, the release in the 2022 third quarter of a spin-related contingent liability with Zimmer Biomet, and certain income tax benefits, including a benefit in the 2022 third quarter from a favorable Puerto Rico tax ruling related to the intercompany sale of intellectual property prior to the spin. Adjusted net income for the third quarter of 2022 was $12.9 million, an increase of $5.7 million versus the same prior year period and excludes the benefit of the aforementioned favorable tax ruling.
 
“I am pleased with our operational progress and the work we are doing to enhance our portfolios in both dental and spine. Our TSX and T3 PRO Tapered dental implants and Encode Emergence Healing Abutment are gaining traction, while we remain focused on innovating around our core spine platform and driving adoption of our clinically differentiated motion preservation solutions,” said Vafa Jamali, president and chief executive officer of ZimVie. “We continue to transform the business by tactically innovating in strategic areas.”
 
ZimVie is reaffirming guidance for third party net sales of $915 to $930 million, with expectations for the dental business to deliver mid-single digit growth in constant currency and the spine business to decline in the low double digits in constant currency.