Enovis CORP false 0001420800 0001420800 2025-01-13 2025-01-13
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 13, 2025
Enovis Corporation
(Exact name of registrant as specified in its charter)
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Delaware |
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001-34045 |
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54-1887631 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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2711 Centerville Road, Suite 400 Wilmington, DE 19808 (Address of principal executive offices) (Zip Code) |
(302) 252-9160
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
Common Stock, par value $0.001 per share |
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ENOV |
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New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 |
Regulation FD Disclosure. |
As previously announced, Enovis Corporation’s management team will present at the J.P. Morgan Healthcare Conference on Monday, January 13, 2025 at 9:45 a.m. PST (12:45 p. m. EST).
A link to the live webcast presentation, as well as a copy of the accompanying presentation materials, will be available at www.enovis.com. A link to a replay of the presentation will also be available on the Enovis website later in the day.
A copy of the presentation materials is also attached hereto as Exhibit 99.1.
The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished to the Securities and Exchange Commission (“SEC”) and shall not be deemed to be incorporated by reference into any of Enovis’ filings with the SEC under the Securities Act of 1933, as amended.
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits:
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Exhibit Number |
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Description |
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99.1 |
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Presentation dated January 13, 2025 |
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104 |
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Cover Page Interactive Data File - The cover page from this Current Report on Form 8-K is formatted in Inline XBRL. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 13, 2025
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ENOVIS CORPORATION |
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By: |
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/s/ Bradley J. Tandy |
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Name: Bradley J. Tandy |
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Title: Senior Vice President and Chief Legal Officer |
2025 JP Morgan Healthcare Conference
Matt Trerotola Chair, Chief Executive Officer Ben Berry Chief Financial Officer Kyle Rose Vice President, Investor Relations Exhibit 99.1
Forward-looking Statements This
presentation includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements
concerning Enovis’ plans, goals, objectives, outlook, expectations and intentions, and other statements that are not historical or current fact. Forward-looking statements and are based on Enovis’ current expectations and involve risks
and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Enovis’ results to differ materially from current expectations include, but are
not limited to, risks and uncertainties regarding Enovis’ business, the impact of public health emergencies and global pandemics (including COVID-19); disruptions in the global economy caused by escalating geopolitical tensions including in
connection with Russia’s invasion of Ukraine; macroeconomic conditions, including the impact of increasing inflationary pressures; supply chain disruptions; increasing energy costs and availability concerns, particularly in the European
market; other impacts on Enovis’ business and ability to execute business continuity plans; and the other factors detailed in Enovis’ reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including its
most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption “Risk Factors,” as well as the other risks discussed in Enovis’ filings with the SEC. In addition, these statements are based on
assumptions that are subject to change. This presentation speaks only as of the date hereof. Enovis disclaims any duty to update the information herein. Non-GAAP Financial Information Enovis has provided in this presentation financial information
that has not been prepared in accordance with accounting principles generally accepted in the United States of America (“non-GAAP”). These non-GAAP financial measures may include one or more of the following: adjusted net income from
continuing operations, adjusted net income per diluted share, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted EBITDA margin, organic sales growth and comparable sales growth. Adjusted net income and
adjusted net income per diluted share refer to net income and net income per share, respectively, excluding restructuring and other charges, European Union Medical Device Regulation (“MDR”) and other costs, amortization of acquired
intangibles, inventory step-up costs, property plant and equipment step-up depreciation, strategic transaction costs, stock compensation costs and other income/expense, including the tax effect of pre-tax income at applicable tax rates and other tax
adjustments. Enovis also presents adjusted net income margin, which is subject to the same adjustments as adjusted net income. Adjusted EBITDA represents adjusted net income or loss from continuing operations excluding interest, taxes, and
depreciation and amortization. Enovis presents adjusted EBITDA margin, which is subject to the same adjustments as adjusted EBITDA. Adjusted gross profit represents gross profit excluding fair value charges of acquired inventory and the impact of
restructuring and other charges. Adjusted gross profit margin is subject to the same adjustments as adjusted gross profit. Comparable sales adjusts net sales for prior periods to include the sales of acquired businesses (including Lima and Novastep)
prior to our ownership from acquisitions that closed in the periods presented and to exclude the net sales of certain non-core product lines that were divested or discontinued, as applicable, during the periods presented. Comparable sales growth
represents the change in comparable sales for the current period from comparable sales for the prior year period. Organic sales growth calculates sales growth period over period, after excluding the impact of acquisitions and foreign exchange rate
fluctuations. These non-GAAP financial measures assist Enovis management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they
are of a nature and/or size that occur with inconsistent frequency or relate to discrete restructuring plans that are fundamentally different from the ongoing productivity improvements of the Company. Enovis management also believes that presenting
these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends. Non-GAAP financial measures should not be considered in isolation from, or as a
substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP
financial measures presented above to GAAP results has been provided in the financial tables included in this presentation. Enovis does not provide reconciliations of adjusted EBITDA or adjusted earnings per share on a forward-looking basis to the
closest GAAP financial measures, as such information is not available without unreasonable efforts on a forward-looking basis due to uncertainties regarding, and the potential variability of, reconciling items excluded from these measures. These
items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. 2024 Consensus Estimates Certain preliminary financial information and operating results of Enovis for the fiscal year
ended December 31, 2024 included in this presentation and identified with the caption “2024e” reflect LSEG/Refinitiv consensus estimates as of January 10, 2025, as Enovis’ financial closing procedures for the fourth quarter and
fiscal year ended December 31, 2024 are not yet complete. Enovis expects that its actual results to be reported in its Annual Report on Form 10-K for the year ended December 31, 2024 will not differ materially from such consensus estimates, however,
these results are subject to change following the completion of year-end accounting procedures and adjustments, including the execution of the Enovis’ internal control over financial reporting, the completion of the preparation and audit of
the Enovis’ financial statements and the subsequent occurrence or identification of events prior to the formal issuance of the audited financial statements for fiscal year 2024.
Two Attractive Ortho Business Segments
Strong Portfolio, Diversified End-Markets, Attractive Growth Drivers Sales Mix by Geography & Segment (1) Fast growing reconstructive (Recon) platform Above market growth engine with attractive portfolio ~50% of business in fast growing
extremities (shoulder / foot & ankle) Globalized business to ~50% international through acquisitions of Mathys and Lima A Global leader in prevention & recovery (P&R) Global leader in sports medicine bracing Technology leader in recovery
sciences with broad offering in advanced rehabilitation modalities Reshaping care path with MotionMD® and MotionIQ® digital solutions Robust cash generator Financial Profile – 2024 Guidance ENOVIS at a Glance aEBITDA $373-378mm Sales
~$2.1B Comparable Growth 5-5.5%(cc) 1Represents the historical financial statements of Enovis Corporation of the 9-months YTD through 9/27/24
The Fundamentals of Our Strategy Fuel
Innovation Partner with healthcare professionals to develop share-shifting solutions that improve outcomes and workflows Operating Excellence Drive continuous Improvement & productivity leveraging our EGX business system Strategic M&A
Leverage M&A and integration competencies to add new technologies, access new markets, and accelerate value creation Aggressively Grow Recon Gain market share in Recon through advantaged products, continuous innovation & global expansion
Shape P&R Shape P&R to higher growth and gross margin while maintaining strong FCF profile
We Have a Rich History of
Transformation & Value Creation Shaped the Company to a 100% Focused MedTech (Orthopedics) Innovator Diversified Industrial Player established by Danaher Founders Acquired DJO to reshape the business into MedTech Spun out ESAB to become pure
play MedTech innovator Enovis 1995-2019 2019-2022 2022+ Market Capitalization (USD $B) 1 Represents LSEG/Refinitiv market data as of market close 1/8/25.
Consistent Financial Execution Since
Spin Committed To Delivering on LRP goals of HSD Growth and >50bps Leverage Revenues Adjusted Gross Margins Adjusted EBITDA MARGIN 1Represents full-year 2024 comparable revenue guidance as of 9/27/2024 * Represents LSEG/Refinitiv consensus
estimates as of 1/10/25. Figures are preliminary and unaudited. Core Growth +6% +8% +5-5%1
Shaping Our Company Towards Higher
Growth $ $ $ High Growth Categories (HSD/LDD CAGR): Shoulder Foot and Ankle Knee Recovery Sciences / New modalities Moderate Growth Categories (MSD/HSD CAGR): Hip US Bracing / Healthcare Solutions OUS P&R Recovery Sciences / Bone Growth
Stimulation Low Growth Categories (LSD CAGR): US Bracing / Wholesale & Consumer Recovery Sciences / Traditional Rehab Footcare Percent Mix of Total Enovis Sales1 1 Source: Based on internal Enovis analysis. * Represents LSEG/Refinitiv consensus
estimates as of 1/10/25. Figures are preliminary and unaudited.
Shape P&R to Higher Growth
Transformation Through Strategic Acquisitions Accelerating Revenue Growth and Margin Profile with +20 Acquisitions since 2019 2 technology acquisitions- 2020 20241 2023 2022 2021 LiteCure Laser Key M&A Themes: Globalize Recon Advance Enabling
Technology Build differentiated F&A Lima Orthopedics MedShape NovaStep Mathys Trilliant 1 Represents LSEG/Refinitiv consensus estimates as of 1/10/25. Figures are preliminary and unaudited.
Intentional Global Diversification
– Fuels Growth & Margin Key Markets Manufacturing International as percentage of Enovis sales: 2019 2024e >40% 27% Shareholder Value Driven By: Established global scale across both P&R and Recon Focused M&A to build direct &
indirect channels Expansion via entry into select, profitable markets Portfolio cross-selling is a durable, multi-year opportunity In-region manufacturing & supply chain optimization to drive global efficiency
Uniquely Positioned Across Full
Ortho Care Continuum PREVENTION Off-loading braces Back braces Cold therapy SURGICAL Shoulders Knees Hips Foot/Ankle RECOVERY Post-op braces Walker boots Cold therapy PERFORMANCE Athletic braces Muscle stimulation REHAB Electrotherapy Laser therapy
Heat/cold therapy Traction devices PREVENTION REPAIR RECOVERY Brand & contracting leverage with hospitals, surgeons, clinicians, patients Digital workflow solutions for clinics Connected medicine solutions for patient journey Key partner to
ambulatory surgery centers (ASC) STRATEGIC ADVANTAGES Leveraging broad and deep market access and technology for strategic advantage
$1B Reconstructive Innovator with
Attractive Portfolio and Mix Leading in Shoulder, winning across Recon with measurably better patient outcomes AltiVate® EMPOWR® Market Leadership Recon Sales & Market Position1 Technology and Brand Leadership Arvis DynaNail®
Ceramics #3 Globally in Shoulder ~5x US Hip/Knee growth vs. mkt since ‘19 #1 Dynamic Fusion Solutions Industry Leadership ~$1B sales $23B market expected to grow 4-5% per year Differentiated products and robust innovation engine &
capabilities Unparalleled KOL leadership team Best-in-Class medical education across segments Proven Commercial Excellence track record of above market growth Market will continue to grow behind strong macro-economic trends & SMR 3D Printing 1
Trailing 12 months represents the historical financial statements of Enovis Corporation, adjusted to include the impact of the acquired Lima and Novastep businesses. Inclusive of the 9-months YTD through 9/27/24 plus 3 months ended 12/31/2023
Integration of Lima Continues to
Track Above Expectations 2024 Goals Progress 3 Year Goals/Focus Exceeded Year 1 Plan, Clear Path to Deliver Against 3 Year Goals Retain Key Talent & Partners Integrate Commercial Channel with less than $30M impact Capture greater than $10M of
cost synergies in year 1 Keep International business (~90% of revenue) on strong growth path Drive Cross-Selling to Support HSD/LDD growth Ramp to >$40M of Cost Synergy Execute on Global New Product Pipeline Complete Manufacturing and Supply
Chain Optimization Programs
Fast-Growing Recon Business with
Proven Playbook Sustained strong DD growth across segments US Shoulder US Hip / Knee Foot & Ankle International AltiVate Reverse® & ARG SMR Prima Reverse Arvis® EMPOWR 3D Knee® EMPOWR Revision Knee™ & Cones
Arvis® Collared Stem & Impactor (2025) DynaNail® & DynaClip® Arsenal Foot™ Plating MIS Bunion & Evolve 34™ SMR Shoulder Optimys Stem & RM Cup ZUK & EMPOWR® Prima & AltiVate Reverse® Key
Products: * Data has been adjusted to include the impact of the acquired Lima and Novastep businesses. ** Represents LSEG/Refinitiv consensus estimates as of 1/10/25. Figures are preliminary and unaudited.
Where and How we Continue to Win in
Recon Leading kinematic designs for knee and shoulder implants Next Generation Minimally Invasive Solutions Ceramys Ceramics Dynamic Compression Technology Trabecular Titanium, P2 Proprietary Augmented Reality World class KOLs and Medical Education
programs Proven playbook designed for GROWTH Vibrant “Go-To” destination for top talent Leading in the ASC setting Double Digit Vitality Globally Over 30 new product launches planned over next 3 years Workflow solutions drive meaningful
value Measurably better clinical outcomes Core Global Growth Powerful Differentiated Technologies Commercial Excellence Leading Innovation Cadence HSD/LDD global growth $1B in a +$23B growing market, significant runway for ongoing growth Building a
Powerful Complimentary Portfolio Around Proven Growth Playbook Cross Selling Meaningful cross-selling across combined Enovis, Mathys, and Lima portfolios +200-300 bps of core International growth
Enovis Recon Growth Formula % of
Enovis Recon Market Growth1 Projected Growth vs. Market Growth Projection US Shoulder ~20% 6-7% >1.5x HSD/DD US Hip / Knee ~20% 4-5% >2x HSD/DD Foot / Ankle ~10% 7-8% >1.5x DD Int’l Recon ~50% ~5% ~1.5-2x HSD/DD 5-6% WAMGR 1.5-2X
Market Growth HSD/DD Clear track record and trajectory for sustained above market organic growth 1: Internal estimates, Orthoworld 2024 Orthopedic Industry Annual Report.
Expanding Enabling Tech Solutions
Across Settings & Anatomies Pre-Op Patient Data Patient Selection Pre-Surgical Planning Match Point System® OaraScore® Intra-Op Post-Op Patient Specific Solutions Nav-igation Automation & Execution AR & MR Key Enovis
Technologies: Predictive tool to determine outpatient success criteria State-of-the-Art pre-operative planning (Shoulder) 3D printed guides (Shoulder, Foot & Ankle, ProMade) ProMade Custom Implants 360 NAV Arvis® Foundational Technologies
are in place, Creating Optionality for Future Innovation MotionIQ®: Joint Registry Patient Specific Instruments Proprietary Augmented Reality System (Knee, Shoulder) Custom 3D printed implants for complex cases Rehab & Analytics Outcomes
& Registry Data Rehab Support application and content High Performance Traditional Navigation
Enabling Tech: Where we’re
Investing, What’s coming in 2025 AI Driven Planning & Analytics Ongoing investments in: Key Upcoming Launches: Arvis® Knee 3.0 – Soft Tissue Balancing Arvis® Shoulder 2.0 – Full Glenoid Capability Arvis®
International launch Next Generation Advanced Pre-Op Planning Solution H1 ‘25 H1 ‘25 H1 ‘25 Late 2025 Advanced Navigation Augmented Reality Execution Solutions Developing Solutions Across Anatomies Tailored to Procedural Settings
& Requirements H1 ‘25 OrthoDrive Impaction Device - Hip
Market Leader in Prevention &
Recovery with Differentiated Brands P&R Sales & Market Position1 Market Leadership Technology and Brand Leadership $5B market expected to grow ~3% per year Industry-defining products across Orthopedics Sustainable demographic and
conservative care demand drivers MotionMD® workflow software solution drives workflow productivity in US Clinics Leader in therapy modalities strengthened by LiteCure™ Strong international position: 33% ex-US Sales Aircast®
EXOS® Chattanooga® LiteCure® DonJoy® ~$1.1B sales #1 Globally in Bracing #1 Globally in Rehab #2 In Bone Stimulation Attractive leading global positions in bracing and recovery sciences Industry Leadership 1 Source: Based on
internal Enovis analysis. Recovery Sciences Bracing Other
Shaping P&R - Driving Core
Growth & Accelerating Key Strategies Shaping to MSD growth with Healthy Cash Flow and Consistent Profit Expansion Continue Shaping the Portfolio Drive Operational Excellence & Cash Flow Focus on Healthcare Solutions Growth Digital Solutions
for New Growth Vectors Improve vitality through more frequent NPI Capture share entitlement in Spine and OA Bracing Drive High Energy Modalities to standard of care Fuel success in attractive channels globally Prune & harvest low-growth
categories Continue efficient cash generation (+100% FCF conversion) Improve Gross Margins (e.g. lower cost manufacturing, positive mix, make vs. buy) Deliver profit expansion and robust customer experience by leveraging EGX business system Leverage
leading MotionMD® solution to convert new clinics and gain share Develop additional MotionMD functionality to increase value proposition Drive deeper penetration and efficiency in served clinics (~45% of US orthopedic clinics currently)
Continue expanding Bracing patient engagement solutions Launch and capture International digital health opportunities Develop new solutions to improve clinic efficiency and patient satisfaction
We Are Shaping Our Future: Enovis
is committed to innovation, commercial excellence, consistent operating leverage and delivering shareholder value over long-range plan HSD Organic growth HSD/DD Recon + LSD/MSD P&R +50 bps annual margin expansion +additional from Lima synergies
in 2025/2026 70-80% FCF conversion Scaling over time Looking to 2025 6-6.5% Organic growth HSD Recon + LSD P&R + FCF conversion +60-70 bps aEBITDA expansion +50 bps underlying + Lima cost synergies
Appendix
Gross Margin Bridge
Adjusted EBITDA
Reconciliation
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Enovis (NYSE:ENOV)
Historical Stock Chart
From Dec 2024 to Jan 2025
Enovis (NYSE:ENOV)
Historical Stock Chart
From Jan 2024 to Jan 2025