ZimVie Inc. (NASDAQ:ZIMV) Q3 2024 Results Conference Call October 30, 2024 4:30 PM ET

Company Participants

Marissa Bych - IR, Gilmartin Group LLC
Vafa Jamali - President and CEO
Richard Heppenstall - CFO

Conference Call Participants

David Saxon - Needham & Company
Matt Miksic - Barclays

Marissa Bych

Thank you all for joining today's call. Earlier today, ZimVie released financial results for the quarter ended September 30, 2024. A copy of the press release is available on the company's website, zimvie.com, as well as on sec.gov.

Before we begin, I'd like to remind you that management will make comments during this call that include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties. Please refer to the company's most recent periodic report filed with the SEC and subsequent SEC filings for a detailed discussion of these risks and uncertainties. In addition, the discussion on this call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included within the earnings release or the investor deck issued today found on the Investor Relations section of the company's website. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, October 30, 2024. ZimVie disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise.

And with that, I will turn the call over to Vafa Jamali, President and Chief Executive Officer of ZimVie.

Vafa Jamali

Good afternoon, and thank you for joining us. Our team executed another strong quarter, delivering revenue of $103 million as we continue to innovate across the portfolio of implants, biomaterials and digital solutions. During the quarter, we continued to make significant progress improving the operating profile of our business. This included improving our manufacturing efficiency, decreasing the cost of products sold on both a year-over-year and sequential basis for the quarter.

In addition, we paid down $15 million in debt, leaving us with a gross debt of $220 million and a net debt balance of $153 million when including our quarter end cash of $67 million. We continue to think carefully about capital allocation and the interest expense planning in order to improve both the profile and the profitability of our business. Meanwhile, we continue to make thoughtful investments in our sales teams, our training programs, expanding our digital dentistry symposia to accommodate more physicians after several sold-out sessions. We're also making some incremental investments in R&D to fill the product portfolio gaps and capitalize on opportunities that we see in this market today. Before discussing updates on our product offerings, I would like to comment on the recent hurricanes that affected a large portion of the Southeast of the United States, including near our headquarters in Palm Beach Gardens, Florida.