ZimVie Earns $235M in First-Quarter Sales

ZimVie Inc.’s debut earnings report shows promise. 

The newly spun-out company from Zimmer Biomet Holdings Inc. reported $234.7 million in sales for the quarter ended March 31, a 4.6 percent decrease (reported basis) from Q1 2021. But net loss shrunk and dental revenue grew 6.4 percent to $120.6 million. The increase in dental segment net sales was primarily driven by implant and digital dentistry net sales growth, partially offset by one less selling day in Q1 2022 versus Q1 2021.
 
“We are very pleased to report our first quarterly results as a newly-spun, independent company,” said Vafa Jamali, president and CEO of ZimVie. “With renewed focus, we see an incredible opportunity to grow our leadership presence in the dental and spine markets, and we look forward to executing on our plan to improve the performance of our business over time.”

Spine segment net sales fell 13.9 percent to $114.1 million, due to the company’s departure of numerous unprofitable markets in late 2021, the discontinuation of certain products, ongoing competition in the spine market, the impact of COVID-19, distributor bulk orders in the first quarter of 2021 that did not recur, and the impact of one less selling day.
 
Net loss for the first quarter of 2022 was $25.7 million, a decline of $26.1 million versus the first quarter of 2021, and as a percentage of net sales was 10.9 percent. Net loss for Q1 2022 included $11.6 million of incremental share-based compensation expense due to replacement awards provided in connection with the separation from Zimmer Biomet. Adjusted net income¹ for the first quarter of 2022 was $13.1 million, a $7.6 million decline versus the same prior year period.
 
Diluted EPS was $0.98 and adjusted diluted EPS¹ was $0.50. Weighted average shares outstanding was 26.057 million and fully diluted weighted average shares outstanding was 26.066 million.
 
Adjusted EBITDA¹ for the first quarter of 2022 was $33.8 million, or 14.4 percent of third party sales, a decrease of $6 million compared to the first quarter of 2021. The decrease was primarily due to lower sales and higher excess and obsolete inventory expenses in the spine segment, partially offset by higher dental segment sales and timing delays of costs to continue to stand-up ZimVie as an independent public company.
 
ZimVie is a global life sciences firm that develops, manufactures, and delivers a portfolio of products and solutions designed to support dental tooth replacement and restoration procedures and treat a wide range of spine pathologies. In March 2022 the company became an independent, publicly traded spin-off of the dental and spine business units of Zimmer Biomet. From its headquarters in Westminster, Colo., and additional facilities around the globe, the company serves customers in more than 70 countries worldwide with dental and spine solutions.

Reference
¹ This is a non-GAAP financial measure.