WARSAW, Ind., May 4, 2021 /PRNewswire/ -- Zimmer Biomet
Holdings, Inc. (NYSE and SIX: ZBH) today reported financial
results for the quarter ended March 31, 2021. The
Company reported first quarter net sales of $1.847 billion, an increase of 3.6% over the
prior year period, and an increase of 0.8% on a constant currency
basis. Net earnings for the first quarter were $198.1 million, or $359.1
million on an adjusted basis.
Diluted earnings per share were $0.94 for the first quarter. Adjusted
diluted earnings per share were $1.71
for the first quarter, an increase of 0.6% over the prior year
period.
"Our performance was stronger than we anticipated in the first
quarter, as we saw signs of the pandemic beginning to subside
across many regions toward the end of the quarter driven by
acceleration of vaccine rollout. As we move into the second
quarter, we expect that momentum to continue and believe we are
well-positioned to meet the needs of our customers as elective
procedures return," said Bryan
Hanson, President and CEO of Zimmer Biomet. "Despite
the challenges of COVID-19, the transformation of our business has
continued over the past year. We are proud of the milestones
Zimmer Biomet has already accomplished in 2021 and we have
confidence that we can drive significant value for our key
stakeholders as we move our Mission forward."
Please see the attached schedules accompanying this press
release for additional details on performance in the quarter,
including sales by Zimmer Biomet's three geographies and five
product categories.
Recent Highlights
Aligned with Zimmer Biomet's active portfolio management
strategy and the ongoing transformation of the business, key recent
highlights include:
- Introduction of ZBEdge, Zimmer Biomet's suite of integrated
digital and robotic technologies, purposefully engineered to
deliver data-powered clinical insights, shared seamlessly across
the patient journey. ZBEdge includes the ROSA® Robotics
Platform, anatomical visualization and guidance solutions such as
Signature™ ONE Surgical Planning, remote care and patient
engagement management systems like mymobility® with
Apple Watch®, as well as data services and analytics
including the OrthoIntel Orthopedic Intelligence Platform and the
Omni™ Surgical Suite integrated operating room.
- 510(k) clearance from the U.S. Food and Drug Administration
(FDA) for the ROSA® Partial Knee System for
robotically-assisted partial knee replacement surgeries, marking
the latest addition to the ROSA program and the recently launched
ZBEdge suite of integrated digital and robotic technologies.
- Key additions to the Zimmer Biomet Leadership Team, including
the appointments of the Company's first Chief Transformation
Officer, Ellie Humphrey, and a new
Chief Human Resources Officer, Lori
Winkler, as well as the promotion of Sang Yi to Group President of APAC and the
expansion of Ivan Tornos' role to Chief Operating Officer with new
leadership responsibilities for the EMEA region.
- Continued momentum for the planned spinoff transaction of the
Spine & Dental businesses with the appointment of Vafa Jamali as President of "NewCo".
Geographic and Product Category Sales
In the three-month period ended March 31,
2021, the Company updated its product category sales
reporting. Product category sales include the following
changes:
- Orthopedic robotic capital sales and services, previously
reported in the Knees product category, are included in the Other
product category;
- Disposable products used in computer-assisted surgeries,
previously reported in the Other product category, are included in
the Knees product category;
- CMFT (Craniomaxillofacial and Thoracic) products, previously
reported in the Dental, Spine & CMFT category, are included in
the S.E.T. (Sports Medicine, Extremities and Trauma) product
category;
- CMFT has been removed from the Dental, Spine & CMFT product
category and the name has been changed to Dental & Spine to
reflect the revenue related to the planned spinoff of NewCo;
- Office based technologies products, previously reported in the
Other product category, are included in the Dental & Spine
product category; and
- Other immaterial adjustments across product categories related
to brand alignment.
Prior period product category sales have been reclassified to
conform to the current presentation. The Company has posted
updated sales tables for fiscal 2020 and 2019 reflecting these
changes on the Investor Relations section of its website,
https://investor.zimmerbiomet.com. These changes have no impact on
the Company's consolidated results of operations.
The following sales table provides results by geography and
product category for the three-month period ended March 31, 2021, as well as the percentage change
compared to the prior year period, on both a reported basis and a
constant currency basis.
NET SALES - THREE
MONTHS ENDED MARCH 31, 2021
(in millions,
unaudited)
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Constant
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Net
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Currency
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Sales
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% Change
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% Change
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Geographic
Results
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Americas
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$
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1,115.0
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|
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1.2
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%
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1.0
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%
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EMEA
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384.2
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(3.5)
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(10.3)
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Asia
Pacific
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348.2
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22.4
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|
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15.5
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Total
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$
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1,847.4
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|
|
3.6
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%
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|
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0.8
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%
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Product
Categories
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Knees
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Americas
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$
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358.8
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(5.1)
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%
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(5.4)
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%
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EMEA
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131.3
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(14.0)
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(19.8)
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Asia
Pacific
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124.2
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26.9
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18.5
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Total
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614.3
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(2.3)
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(5.2)
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Hips
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Americas
|
|
235.2
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1.1
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0.9
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EMEA
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107.7
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(3.2)
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(9.5)
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Asia
Pacific
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104.1
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17.3
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11.2
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Total
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447.0
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3.3
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0.3
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S.E.T.
*
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417.6
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9.6
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7.2
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Dental &
Spine
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246.0
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12.1
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9.6
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Other
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122.5
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0.3
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(2.5)
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Total
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$
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1,847.4
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3.6
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%
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0.8
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%
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* Sports Medicine,
Extremities, Trauma, Craniomaxillofacial and Thoracic
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Financial Guidance
The Company is providing the following full-year 2021 financial
guidance:
Projected Year
Ending December 31, 2021
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2021 reported revenue
growth
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14% - 17%
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Foreign Currency
Exchange Impact
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1.5%
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Adjusted Operating
Profit Margin(1)
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26.5% -
27.5%
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Adjusted Tax
Rate(1)
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16.0% -
16.5%
|
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Adjusted Diluted
EPS(1)
|
$7.60 - $8.00
|
|
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(1)
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These measures are
non-GAAP financial measures for which a reconciliation to the most
directly comparable GAAP financial measure is not available without
unreasonable efforts. See "Forward-Looking Non-GAAP Financial
Measures."
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Conference Call
The Company will conduct its first quarter investor conference
call today, May 4, 2021, at
8:30 a.m. ET. The audio webcast
can be accessed via Zimmer Biomet's Investor Relations website at
https://investor.zimmerbiomet.com. It will be archived for
replay following the conference call.
About the Company
Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer Biomet is a global
leader in musculoskeletal healthcare. We design, manufacture and
market orthopedic reconstructive products; sports medicine,
biologics, extremities and trauma products; office based
technologies; spine, craniomaxillofacial and thoracic products;
dental implants; and related surgical products.
We collaborate with healthcare professionals around the globe to
advance the pace of innovation. Our products and solutions help
treat patients suffering from disorders of, or injuries to, bones,
joints or supporting soft tissues. Together with healthcare
professionals, we help millions of people live better lives.
We have operations in more than 25 countries around the world
and sell products in more than 100 countries. For more information,
visit www.zimmerbiomet.com or follow Zimmer Biomet on Twitter
at www.twitter.com/zimmerbiomet.
Website Information
We routinely post important information for investors on our
website, www.zimmerbiomet.com, in the "Investor Relations"
section. We use this website as a means of disclosing
material, non-public information and for complying with our
disclosure obligations under Regulation FD. Accordingly,
investors should monitor the Investor Relations section of our
website, in addition to following our press releases, SEC filings,
public conference calls, presentations and webcasts. The
information contained on, or that may be accessed through, our
website or any other website referenced herein is not incorporated
by reference into, and is not a part of, this document.
Note on Non-GAAP Financial Measures
This press release includes non-GAAP financial measures that
differ from financial measures calculated in accordance with U.S.
generally accepted accounting principles ("GAAP"). These
non-GAAP financial measures may not be comparable to similar
measures reported by other companies and should be considered in
addition to, and not as a substitute for, or superior to, other
measures prepared in accordance with GAAP.
Sales change information for the three-month period ended
March 31, 2021 is presented on a GAAP
(reported) basis and on a constant currency basis. Constant
currency percentage changes exclude the effects of foreign currency
exchange rates. They are calculated by translating current
and prior-period sales at the same predetermined exchange
rate. The translated results are then used to determine
year-over-year percentage increases or decreases.
Net earnings and diluted earnings per share for the three-month
period ended March 31, 2021 are
presented on a GAAP (reported) basis and on an adjusted
basis. Adjusted earnings and adjusted diluted earnings per
share exclude the effects of certain items, which are detailed in
the reconciliations of these non-GAAP financial measures to the
most directly comparable GAAP financial measures presented later in
this press release.
Free cash flow is an additional non-GAAP measure that is
presented in this press release. Free cash flow is
computed by deducting additions to instruments and other property,
plant and equipment from net cash provided by operating
activities.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in
this press release. This press release also contains
supplemental reconciliations of additional non-GAAP financial
measures that the Company presents in other contexts. These
additional non-GAAP financial measures are computed from the most
directly comparable GAAP financial measure as indicated in the
applicable reconciliation.
Management uses non-GAAP financial measures internally to
evaluate the performance of the business. Additionally,
management believes these non-GAAP measures provide meaningful
incremental information to investors to consider when evaluating
the performance of the Company. Management believes these
measures offer the ability to make period-to-period comparisons
that are not impacted by certain items that can cause dramatic
changes in reported income but that do not impact the fundamentals
of our operations. The non-GAAP measures enable the
evaluation of operating results and trend analysis by allowing a
reader to better identify operating trends that may otherwise be
masked or distorted by these types of items that are excluded from
the non-GAAP measures. In addition, constant currency sales
changes, adjusted operating profit, adjusted diluted earnings per
share and free cash flow are used as performance metrics in our
incentive compensation programs.
Forward-Looking Non-GAAP Financial Measures
This press release also includes certain forward-looking
non-GAAP financial measures for the year ending December 31, 2021. We calculate
forward-looking non-GAAP financial measures based on internal
forecasts that omit certain amounts that would be included in GAAP
financial measures. For instance, we exclude the impact of
certain charges related to initial compliance with the European
Union Medical Device Regulation; restructuring and other cost
reduction initiatives; quality remediation; acquisition,
integration, divestiture and related; and certain legal and tax
matters. We have not provided quantitative reconciliations of
these forward-looking non-GAAP financial measures to the most
directly comparable forward-looking GAAP financial measures because
the excluded items are not available on a prospective basis without
unreasonable efforts. For example, the timing of certain
transactions is difficult to predict because management's plans may
change. In addition, the company believes such
reconciliations would imply a degree of precision and certainty
that could be confusing to investors. It is probable that
these forward-looking non-GAAP financial measures may be materially
different from the corresponding GAAP financial measures.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995,
including statements regarding sales and earnings guidance, the
impact of the COVID-19 pandemic on our business, including related
vaccine rollouts and any recovery in elective procedures, and any
statements about our forecasts, expectations, plans, intentions,
strategies or prospects. All statements other than statements
of historical or current fact are, or may be deemed to be,
forward-looking statements. Such statements are based upon
the current beliefs, expectations and assumptions of management and
are subject to significant risks, uncertainties and changes in
circumstances that could cause actual outcomes and results to
differ materially from the forward-looking statements. These
risks, uncertainties and changes in circumstances include, but are
not limited to: the effects of the COVID-19 global pandemic
and other adverse public health developments on the global economy,
our business and operations and the business and operations of our
suppliers and customers, including the deferral of elective
procedures and our ability to collect accounts receivable; the
failure of vaccine rollouts and other strategies to mitigate or
reverse the impacts of the COVID-19 pandemic; the failure of
elective procedures to recover at the levels or on the timeline
anticipated; the risks and uncertainties related to our ability to
successfully execute our restructuring plans; our ability to
attract, retain and develop the highly skilled employees we need to
support our business; the possibility that the anticipated
synergies and other benefits from mergers and acquisitions will not
be realized, or will not be realized within the expected time
periods; the risks and uncertainties related to our ability to
successfully integrate the operations, products, employees and
distributors of acquired companies; the effect of the potential
disruption of management's attention from ongoing business
operations due to integration matters related to mergers and
acquisitions; the effect of mergers and acquisitions on our
relationships with customers, suppliers and lenders and on our
operating results and businesses generally; the risks and
uncertainties associated with the proposed spin-off of our Spine
and Dental businesses, including, without limitation, the
significant expenses, time and efforts related to implementing such
transaction, the ability to complete the transaction on our
expected timeline or at all, the tax-free nature of the
transaction, possible disruptions in our relationships with
customers, suppliers and other business partners, and the
possibility that the anticipated benefits and synergies of the
transaction, strategic and competitive advantages of each company,
and future growth and other opportunities for each
company will not be realized within the expected time periods
or at all; the success of our quality and operational excellence
initiatives, including ongoing quality remediation efforts at our
Warsaw North Campus facility; the ability to remediate matters
identified in inspectional observations or warning letters issued
by the U.S. Food and Drug Administration (FDA), while
continuing to satisfy the demand for our products; the impact of
substantial indebtedness on our ability to service our debt
obligations and/or refinance amounts outstanding under our debt
obligations at maturity on terms favorable to us, or at all; the
ability to retain the independent agents and distributors who
market our products; dependence on a limited number of suppliers
for key raw materials and outsourced activities; challenges
relating to changes in and compliance with governmental laws and
regulations affecting our U.S. and international
businesses, including regulations of the FDA and foreign government
regulators, such as more stringent requirements for regulatory
clearance of products; the outcome of government investigations;
competition; pricing pressures; changes in customer demand for our
products and services caused by demographic changes or other
factors; the impact of healthcare reform measures; reductions in
reimbursement levels by third-party payors and cost containment
efforts of healthcare purchasing organizations; dependence on new
product development, technological advances and innovation; shifts
in the product category or regional sales mix of our products and
services; supply and prices of raw materials and products; control
of costs and expenses; the ability to obtain and maintain adequate
intellectual property protection; breaches or failures of our
information technology systems or products, including by
cyberattack, unauthorized access or theft; the ability to form and
implement alliances; changes in tax obligations arising from tax
reform measures, including European Union rules on state aid, or
examinations by tax authorities; product liability, intellectual
property and commercial litigation losses; changes in general
industry and market conditions, including domestic and
international growth rates; changes in general domestic and
international economic conditions, including interest rate and
currency exchange rate fluctuations; and the impact of the ongoing
financial and political uncertainty on countries in the Euro zone
on the ability to collect accounts receivable in affected
countries. A further list and description of these risks and
uncertainties and other factors can be found in our Annual Report
on Form 10-K for the year ended December 31,
2020, including in the sections captioned "Cautionary Note
Regarding Forward-Looking Statements" and "Item 1A. Risk Factors,"
and our subsequent filings with the Securities and Exchange
Commission (SEC). Copies of these filings are available
online at www.sec.gov, www.zimmerbiomet.com or on request from
us. These factors should not be construed as
exhaustive and should be read in conjunction with the other
cautionary statements that are included in our filings with the
SEC. Forward-looking statements speak only as of the
date they are made, and we expressly disclaim any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise. Readers of this press release are cautioned not to
rely on these forward-looking statements since there can be no
assurance that these forward-looking statements will prove to be
accurate. This cautionary note is applicable to all
forward-looking statements contained in this press release.
Media
|
Investors
|
Meredith
Weissman
|
Keri
Mattox
|
(703)
346-3127
|
(215)
275-2431
|
meredith.weissman@zimmerbiomet.com
|
keri.mattox@zimmerbiomet.com
|
|
|
|
Ezgi Yagci
|
|
(617)
549-2443
|
|
ezgi.yagci@zimmerbiomet.com
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
FOR THE THREE
MONTHS ENDED MARCH 31, 2021 and 2020
|
|
(in millions,
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
Net
Sales
|
$
|
1,847.4
|
|
|
$
|
1,783.8
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
516.4
|
|
|
|
487.1
|
|
Intangible asset
amortization
|
|
155.5
|
|
|
|
147.6
|
|
Research and
development
|
|
94.4
|
|
|
|
98.4
|
|
Selling, general and
administrative
|
|
770.1
|
|
|
|
828.9
|
|
Goodwill
impairment
|
|
-
|
|
|
|
612.0
|
|
Restructuring and
other cost reduction initiatives
|
|
21.8
|
|
|
|
45.0
|
|
Quality
remediation
|
|
10.2
|
|
|
|
16.4
|
|
Acquisition,
integration, divestiture and related
|
|
13.4
|
|
|
|
4.4
|
|
Operating
expenses
|
|
1,581.8
|
|
|
|
2,239.8
|
|
Operating Profit
(Loss)
|
|
265.6
|
|
|
|
(456.0)
|
|
Other income,
net
|
|
7.3
|
|
|
|
3.0
|
|
Interest expense,
net
|
|
(52.3)
|
|
|
|
(50.9)
|
|
Earnings (loss)
before income taxes
|
|
220.6
|
|
|
|
(503.9)
|
|
Provision for income
taxes
|
|
22.9
|
|
|
|
5.2
|
|
Net Earnings
(Loss)
|
|
197.7
|
|
|
|
(509.1)
|
|
Less: Net loss
attributable to noncontrolling interest
|
|
(0.4)
|
|
|
|
(0.6)
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
$
|
198.1
|
|
|
$
|
(508.5)
|
|
Earnings (Loss)
Per Common Share
|
|
|
|
|
|
|
|
Basic
|
$
|
0.95
|
|
|
$
|
(2.46)
|
|
Diluted
|
$
|
0.94
|
|
|
$
|
(2.46)
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
|
|
|
|
Basic
|
|
208.0
|
|
|
|
206.5
|
|
Diluted
|
|
210.2
|
|
|
|
206.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in millions,
unaudited)
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
724.3
|
|
|
$
|
802.1
|
|
Receivables,
net
|
|
|
1,380.2
|
|
|
|
1,452.7
|
|
Inventories
|
|
|
2,511.7
|
|
|
|
2,450.7
|
|
Other current
assets
|
|
|
383.9
|
|
|
|
377.8
|
|
Total current
assets
|
|
|
5,000.1
|
|
|
|
5,083.3
|
|
Property, plant and
equipment, net
|
|
|
2,021.9
|
|
|
|
2,047.7
|
|
Goodwill
|
|
|
9,233.2
|
|
|
|
9,261.8
|
|
Intangible assets,
net
|
|
|
6,801.2
|
|
|
|
7,055.5
|
|
Other
assets
|
|
|
970.2
|
|
|
|
969.4
|
|
Total
Assets
|
|
$
|
24,026.6
|
|
|
$
|
24,417.7
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
1,789.4
|
|
|
$
|
2,056.9
|
|
Current portion of
long-term debt
|
|
|
300.0
|
|
|
|
500.0
|
|
Other long-term
liabilities
|
|
|
1,948.7
|
|
|
|
2,034.9
|
|
Long-term
debt
|
|
|
7,538.7
|
|
|
|
7,626.5
|
|
Stockholders'
equity
|
|
|
12,449.8
|
|
|
|
12,199.4
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
24,026.6
|
|
|
$
|
24,417.7
|
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
FOR THE THREE
MONTHS ENDED MARCH 31, 2021 and 2020
|
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
Cash flows
provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
|
$
|
197.7
|
|
|
$
|
(509.1)
|
|
Depreciation and
amortization
|
|
|
268.7
|
|
|
|
253.0
|
|
Share-based
compensation
|
|
|
21.6
|
|
|
|
16.5
|
|
Goodwill
impairment
|
|
|
-
|
|
|
|
612.0
|
|
Changes in operating
assets and liabilities, net of acquired assets and
liabilities
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
(9.5)
|
|
|
|
(45.4)
|
|
Receivables
|
|
|
43.6
|
|
|
|
289.7
|
|
Inventories
|
|
|
(86.1)
|
|
|
|
(96.0)
|
|
Accounts payable and
accrued expenses
|
|
|
(161.2)
|
|
|
|
(95.8)
|
|
Other assets and
liabilities
|
|
|
(28.3)
|
|
|
|
26.0
|
|
Net cash provided by
operating activities
|
|
|
246.5
|
|
|
|
450.9
|
|
Cash flows
provided by (used in) investing activities
|
|
|
|
|
|
|
|
|
Additions to
instruments
|
|
|
(82.6)
|
|
|
|
(85.7)
|
|
Additions to other
property, plant and equipment
|
|
|
(27.4)
|
|
|
|
(40.2)
|
|
Net investment hedge
settlements
|
|
|
3.1
|
|
|
|
16.3
|
|
Investments in other
assets
|
|
|
(15.4)
|
|
|
|
(11.6)
|
|
Net cash used in
investing activities
|
|
|
(122.3)
|
|
|
|
(121.2)
|
|
Cash flows
provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
Proceeds from senior
notes
|
|
|
-
|
|
|
|
1,497.1
|
|
Redemption of senior
notes
|
|
|
(200.0)
|
|
|
|
-
|
|
Dividends paid to
stockholders
|
|
|
(49.8)
|
|
|
|
(49.5)
|
|
Proceeds from employee
stock compensation plans
|
|
|
65.3
|
|
|
|
54.5
|
|
Net cash flows from
unremitted collections from factoring programs
|
|
|
-
|
|
|
|
12.4
|
|
Business combination
contingent consideration payments
|
|
|
(5.8)
|
|
|
|
(3.5)
|
|
Debt issuance
costs
|
|
|
-
|
|
|
|
(12.2)
|
|
Other financing
activities
|
|
|
(5.5)
|
|
|
|
(6.0)
|
|
Net cash (used in)
provided by financing activities
|
|
|
(195.8)
|
|
|
|
1,492.8
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
|
(6.2)
|
|
|
|
(6.8)
|
|
(Decrease) increase in
cash and cash equivalents
|
|
|
(77.8)
|
|
|
|
1,815.7
|
|
Cash and cash
equivalents, beginning of period
|
|
|
802.1
|
|
|
|
617.9
|
|
Cash and cash
equivalents, end of period
|
|
$
|
724.3
|
|
|
$
|
2,433.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZIMMER BIOMET
HOLDINGS, INC.
NET SALES BY
GEOGRAPHY
FOR THE THREE
MONTHS ENDED MARCH 31, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
% Inc /
(Dec)
|
|
Volume
/ Mix
|
|
Price
|
|
Foreign
Exchange
|
|
Americas
|
|
$
|
1,115.0
|
|
$
|
1,101.3
|
|
|
1.2
|
%
|
|
3.3
|
%
|
|
(2.3)
|
%
|
|
0.2
|
%
|
EMEA
|
|
|
384.2
|
|
|
398.1
|
|
|
(3.5)
|
|
|
(10.0)
|
|
|
(0.3)
|
|
|
6.8
|
|
Asia
Pacific
|
|
|
348.2
|
|
|
284.4
|
|
|
22.4
|
|
|
16.5
|
|
|
(1.0)
|
|
|
6.9
|
|
Total
|
|
$
|
1,847.4
|
|
$
|
1,783.8
|
|
|
3.6
|
%
|
|
2.5
|
%
|
|
(1.7)
|
%
|
|
2.8
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
NET SALES BY
PRODUCT CATEGORY
FOR THE THREE
MONTHS ENDED MARCH 31, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
% Inc /
(Dec)
|
|
Volume
/ Mix
|
|
Price
|
|
Foreign
Exchange
|
|
Knees
|
|
$
|
614.3
|
|
$
|
628.7
|
|
|
(2.3)
|
%
|
|
(2.9)
|
%
|
|
(2.3)
|
%
|
|
2.9
|
%
|
Hips
|
|
|
447.0
|
|
|
432.6
|
|
|
3.3
|
|
|
3.0
|
|
|
(2.7)
|
|
|
3.0
|
|
S.E.T.
|
|
|
417.6
|
|
|
380.9
|
|
|
9.6
|
|
|
7.2
|
|
|
-
|
|
|
2.4
|
|
Dental &
Spine
|
|
|
246.0
|
|
|
219.5
|
|
|
12.1
|
|
|
10.8
|
|
|
(1.2)
|
|
|
2.5
|
|
Other
|
|
|
122.5
|
|
|
122.1
|
|
|
0.3
|
|
|
(1.5)
|
|
|
(1.0)
|
|
|
2.8
|
|
Total
|
|
$
|
1,847.4
|
|
$
|
1,783.8
|
|
|
3.6
|
%
|
|
2.5
|
%
|
|
(1.7)
|
%
|
|
2.8
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY
% CHANGE
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
March 31,
2021
|
|
|
|
|
|
|
Foreign
|
|
|
Constant
|
|
|
|
|
|
|
Exchange
|
|
|
Currency
|
|
|
% Change
|
|
|
Impact
|
|
|
% Change
|
|
Geographic
Results
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
1.2
|
%
|
|
|
0.2
|
%
|
|
|
1.0
|
%
|
EMEA
|
|
(3.5)
|
|
|
|
6.8
|
|
|
|
(10.3)
|
|
Asia
Pacific
|
|
22.4
|
|
|
|
6.9
|
|
|
|
15.5
|
|
Total
|
|
3.6
|
%
|
|
|
2.8
|
%
|
|
|
0.8
|
%
|
Product
Categories
|
|
|
|
|
|
|
|
|
|
|
|
Knees
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
(5.1)
|
%
|
|
|
0.3
|
%
|
|
|
(5.4)
|
%
|
EMEA
|
|
(14.0)
|
|
|
|
5.8
|
|
|
|
(19.8)
|
|
Asia
Pacific
|
|
26.9
|
|
|
|
8.4
|
|
|
|
18.5
|
|
Total
|
|
(2.3)
|
|
|
|
2.9
|
|
|
|
(5.2)
|
|
Hips
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
1.1
|
|
|
|
0.2
|
|
|
|
0.9
|
|
EMEA
|
|
(3.2)
|
|
|
|
6.3
|
|
|
|
(9.5)
|
|
Asia
Pacific
|
|
17.3
|
|
|
|
6.1
|
|
|
|
11.2
|
|
Total
|
|
3.3
|
|
|
|
3.0
|
|
|
|
0.3
|
|
S.E.T
|
|
9.6
|
|
|
|
2.4
|
|
|
|
7.2
|
|
Dental &
Spine
|
|
12.1
|
|
|
|
2.5
|
|
|
|
9.6
|
|
Other
|
|
0.3
|
|
|
|
2.8
|
|
|
|
(2.5)
|
|
Total
|
|
3.6
|
%
|
|
|
2.8
|
%
|
|
|
0.8
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
REPORTED TO ADJUSTED RESULTS
FOR THE THREE
MONTHS ENDED MARCH 31, 2021 and 2020
(in millions,
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE THREE
MONTHS ENDED MARCH 31, 2021
|
|
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
|
Intangible asset
amortization
|
|
|
Research and
development
|
|
|
Selling, general
and administrative
|
|
|
Restructuring and
other cost reduction initiatives
|
|
|
Quality
remediation
|
|
|
Acquisition,
integration, divestiture and related
|
|
|
Other income,
net
|
|
|
Provision for
income taxes
|
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
|
|
Diluted earnings
(loss) per common share
|
|
As
Reported
|
|
$
|
516.4
|
|
|
$
|
155.5
|
|
|
$
|
94.4
|
|
|
$
|
770.1
|
|
|
$
|
21.8
|
|
|
$
|
10.2
|
|
|
$
|
13.4
|
|
|
$
|
7.3
|
|
|
$
|
22.9
|
|
|
$
|
198.1
|
|
|
$
|
0.94
|
|
Inventory and
manufacturing-related charges(1)
|
|
|
5.9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.9
|
|
|
|
(11.8)
|
|
|
|
(0.06)
|
|
Intangible asset
amortization(2)
|
|
|
-
|
|
|
|
(155.5)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29.8
|
|
|
|
125.7
|
|
|
|
0.60
|
|
Restructuring and
other cost reduction initiatives(4)
|
|
|
(0.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(21.8)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4.9
|
|
|
|
17.0
|
|
|
|
0.08
|
|
Quality
remediation(5)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10.2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.2
|
|
|
|
8.0
|
|
|
|
0.04
|
|
Acquisition,
integration, divestiture and related(6)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13.4)
|
|
|
|
-
|
|
|
|
3.0
|
|
|
|
10.4
|
|
|
|
0.05
|
|
Litigation(7)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.5
|
|
|
|
5.6
|
|
|
|
0.03
|
|
European Union
Medical Device Regulation(8)
|
|
|
-
|
|
|
|
-
|
|
|
|
(6.9)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1.4
|
|
|
|
5.5
|
|
|
|
0.03
|
|
Other
charges(9)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4.1)
|
|
|
|
(0.7)
|
|
|
|
(0.8)
|
|
|
|
(0.01)
|
|
Swiss tax
reform(10)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3.4)
|
|
|
|
3.4
|
|
|
|
0.02
|
|
Other certain tax
adjustments(11)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.0
|
|
|
|
(2.0)
|
|
|
|
(0.01)
|
|
As
Adjusted
|
|
$
|
522.2
|
|
|
$
|
-
|
|
|
$
|
87.5
|
|
|
$
|
761.4
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3.2
|
|
|
$
|
68.5
|
|
|
$
|
359.1
|
|
|
$
|
1.71
|
|
FOR THE THREE
MONTHS ENDED MARCH 31, 2020
|
|
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
|
Intangible asset
amortization
|
|
|
Research and
development
|
|
|
Selling, general
and administrative
|
|
|
Goodwill
Impairment
|
|
|
Restructuring and
other cost reduction initiatives
|
|
|
Quality
remediation
|
|
|
Acquisition,
integration, divestiture and related
|
|
|
Other income,
net
|
|
|
Provision for
Income taxes
|
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
|
|
Diluted earnings
(loss) per common share
|
|
As
Reported
|
|
$
|
487.1
|
|
|
$
|
147.6
|
|
|
$
|
98.4
|
|
|
$
|
828.9
|
|
|
$
|
612.0
|
|
|
$
|
45.0
|
|
|
$
|
16.4
|
|
|
$
|
4.4
|
|
|
$
|
3.0
|
|
|
$
|
5.2
|
|
|
$
|
(508.5)
|
|
|
$
|
(2.46)
|
|
Inventory and
manufacturing-related charges(1)
|
|
|
(0.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.2
|
|
|
|
(1.6)
|
|
|
|
(0.01)
|
|
Intangible asset
amortization(2)
|
|
|
-
|
|
|
|
(147.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30.1
|
|
|
|
117.5
|
|
|
|
0.57
|
|
Goodwill
impairment(3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(612.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
612.0
|
|
|
|
2.96
|
|
Restructuring and
other cost reduction initiatives(4)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(45.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11.4
|
|
|
|
33.6
|
|
|
|
0.16
|
|
Quality
remediation(5)
|
|
|
0.5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16.4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.6
|
|
|
|
12.3
|
|
|
|
0.06
|
|
Acquisition,
integration, divestiture and related(6)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4.4)
|
|
|
|
-
|
|
|
|
0.9
|
|
|
|
3.5
|
|
|
|
0.02
|
|
Litigation(7)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(79.8)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18.0
|
|
|
|
61.8
|
|
|
|
0.30
|
|
European Union
Medical Device Regulation(8)
|
|
|
-
|
|
|
|
-
|
|
|
|
(11.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.2
|
|
|
|
8.8
|
|
|
|
0.04
|
|
Other
charges(9)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5.9)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.7
|
|
|
|
1.8
|
|
|
|
4.8
|
|
|
|
0.02
|
|
Swiss tax
reform(10)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16.9)
|
|
|
|
16.9
|
|
|
|
0.08
|
|
Other certain tax
adjustments(11)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7.2
|
|
|
|
(7.2)
|
|
|
|
(0.03)
|
|
Effect of dilutive
shares assuming net earnings(12)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01)
|
|
As
Adjusted
|
|
$
|
487.0
|
|
|
$
|
-
|
|
|
$
|
87.4
|
|
|
$
|
743.2
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3.7
|
|
|
$
|
65.7
|
|
|
$
|
353.9
|
|
|
$
|
1.70
|
|
(1)
|
Inventory and
manufacturing-related charges include excess and obsolete inventory
charges on certain product lines we intend to discontinue,
incremental cost of products sold from stepping up inventory to its
fair value from its manufactured cost in business combination
accounting and other inventory and manufacturing-related charges or
gains.
|
|
|
(2)
|
We exclude intangible
asset amortization from our non-GAAP financial measures because we
internally assess our performance against our peers without this
amortization. Due to various levels of acquisitions among our
peers, intangible asset amortization can vary significantly from
company to company.
|
|
|
(3)
|
In the first quarter
of 2020, we recognized goodwill impairment charges of $470.0
million and $142.0 million related to our EMEA and Dental reporting
units, respectively.
|
|
|
(4)
|
In December 2019, our
Board of Directors approved, and we initiated, a new global
restructuring program that includes a reorganization of key
businesses and an overall effort to reduce costs in order to
accelerate decision-making and focus the organization on priorities
to drive growth. Restructuring and other cost reduction
initiatives also include other cost reduction initiatives that have
the goal of reducing costs across the organization.
|
|
|
(5)
|
We are addressing
inspectional observations on Form 483 and a Warning Letter issued
by the U.S. Food and Drug Administration ("FDA") following its
previous inspections of our Warsaw North Campus facility, among
other matters. This quality remediation has required us to
devote significant financial resources and is for a discrete period
of time. The majority of the expenses are related to
consultants who are helping us to update previous documents and
redesign certain processes.
|
|
|
(6)
|
The acquisition,
integration, divestiture and related gains and expenses we have
excluded from our non-GAAP financial measures resulted from various
acquisitions and the planned spinoff of NewCo.
|
|
|
(7)
|
We are involved in
routine patent litigation, product liability litigation, commercial
litigation and other various litigation matters. We review
litigation matters from both a qualitative and quantitative
perspective to determine if excluding the losses or gains will
provide our investors with useful incremental information.
Litigation matters can vary in their characteristics, frequency and
significance to our operating results. The litigation charges
and gains excluded from our non-GAAP financial measures in the
periods presented relate to product liability matters where we have
received numerous claims on specific products, patent litigation
and commercial litigation related to a common matter in multiple
jurisdictions. In regards to the product liability matters,
due to the complexities involved and claims filed in multiple
districts, the expenses associated with these matters are
significant to our operating results. Once the litigation
matter has been excluded from our non-GAAP financial measures in a
particular period, any additional expenses or gains from changes in
estimates are also excluded, even if they are not significant, to
ensure consistency in our non-GAAP financial measures from
period-to-period.
|
|
|
(8)
|
The European Union
Medical Device Regulation imposes significant additional premarket
and postmarket requirements. The new regulations provide a
transition period until May 2021 for currently-approved medical
devices to meet the additional requirements. For certain
devices, this transition period can be extended until May
2024. We are excluding from our non-GAAP financial measures
the incremental costs incurred to establish initial compliance with
the regulations related to our currently-approved medical
devices. The incremental costs primarily include third-party
consulting necessary to supplement our internal
resources.
|
|
|
(9)
|
We have incurred
other various expenses from specific events or projects that we
consider highly variable or that have a significant impact to our
operating results that we have excluded from our non-GAAP
measures. These include costs related to legal entity,
distribution and manufacturing optimization, including contract
terminations, gains and losses from changes in fair value on our
equity investments, as well as, in the 2020 period, our costs of
complying with a Deferred Prosecution Agreement ("DPA") with the
U.S. government related to certain Foreign Corrupt Practices Act
matters involving Biomet and certain of its subsidiaries, which DPA
concluded in February 2021.
|
|
|
(10)
|
We recognized a tax
benefit related to Switzerland's Federal Act on Tax Reform and AHV
Financing ("TRAF") in addition to an impact from certain
restructuring transactions in Switzerland. Also included are tax
adjustments relating to ongoing impacts of tax only amortization
resulting from TRAF as well as certain restructuring transactions
in Switzerland.
|
|
|
(11)
|
Other certain tax
adjustments relate to various discrete tax period
adjustments.
|
|
|
(12)
|
Due to the reported
net loss for this period, the effect of dilutive shares assuming
net earnings is shown as an adjustment. Diluted share count
used in Adjusted Diluted EPS is:
|
|
Three Months
Ended
|
|
|
March 31,
2020
|
|
|
|
|
|
Diluted
shares
|
|
206.5
|
|
Dilutive shares
assuming net earnings
|
|
1.7
|
|
Adjusted diluted
shares
|
|
208.2
|
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
RECONCILIATION OF
NET CASH PROVIDED BY OPERATING
|
|
ACTIVITIES TO FREE
CASH FLOW
|
|
FOR THE THREE MONTHS ENDED
MARCH 31, 2021 and 2020
|
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
|
2020
|
|
Net cash provided by
operating activities
|
$
|
246.5
|
|
|
$
|
450.9
|
|
Additions to
instruments
|
|
(82.6)
|
|
|
|
(85.7)
|
|
Additions to other
property, plant and equipment
|
|
(27.4)
|
|
|
|
(40.2)
|
|
Free cash
flow
|
$
|
136.5
|
|
|
$
|
325.0
|
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
GROSS PROFIT & MARGIN TO ADJUSTED GROSS
PROFIT &
MARGIN
FOR THE THREE MONTHS ENDED
MARCH 31, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
Net Sales
|
$
|
1,847.4
|
|
$
|
1,783.8
|
|
Cost of products
sold, excluding intangible
sset amortization
|
|
516.4
|
|
|
487.1
|
|
Intangible asset
amortization
|
|
155.5
|
|
|
147.6
|
|
Gross
Profit
|
$
|
1,175.5
|
|
$
|
1,149.1
|
|
|
|
|
|
|
|
|
Inventory and
manufacturing-related charges
|
|
(5.9)
|
|
|
0.6
|
|
Restructuring and
other cost reduction
initiatives
|
|
0.1
|
|
|
-
|
|
Quality
remediation
|
|
-
|
|
|
(0.5)
|
|
Intangible asset
amortization
|
|
155.5
|
|
|
147.6
|
|
Adjusted gross
profit
|
$
|
1,325.2
|
|
$
|
1,296.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
63.6
|
%
|
|
64.4
|
%
|
Inventory and
manufacturing-related charges
|
|
(0.3)
|
|
|
-
|
|
Restructuring and
other cost reduction
initiatives
|
|
-
|
|
|
-
|
|
Quality
remediation
|
|
-
|
|
|
-
|
|
Intangible asset
amortization
|
|
8.4
|
|
|
8.3
|
|
Adjusted gross
margin
|
|
71.7
|
%
|
|
72.7
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
OPERATING PROFIT (LOSS) & MARGIN TO ADJUSTED OPERATING PROFIT
& MARGIN
FOR THE THREE MONTHS ENDED
MARCH 31, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
Operating profit
(loss)
|
$
|
265.6
|
|
$
|
(456.0)
|
|
Inventory and
manufacturing-related charges
|
|
(5.9)
|
|
|
0.6
|
|
Intangible asset
amortization
|
|
155.5
|
|
|
147.6
|
|
Goodwill
impairment
|
|
-
|
|
|
612.0
|
|
Restructuring and
other cost reduction initiatives
|
|
21.9
|
|
|
45.0
|
|
Quality
remediation
|
|
10.2
|
|
|
15.9
|
|
Acquisition,
integration, divestiture and related
|
|
13.4
|
|
|
4.4
|
|
Litigation
|
|
6.1
|
|
|
79.8
|
|
European Union
Medical Device Regulation
|
|
6.9
|
|
|
11.0
|
|
Other
charges
|
|
2.6
|
|
|
5.9
|
|
Adjusted operating
profit
|
$
|
476.3
|
|
$
|
466.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss) margin
|
|
14.4
|
%
|
|
(25.6)
|
%
|
Inventory and
manufacturing-related charges
|
|
(0.3)
|
|
|
-
|
|
Intangible asset
amortization
|
|
8.4
|
|
|
8.3
|
|
Goodwill
impairment
|
|
-
|
|
|
34.3
|
|
Restructuring and
other cost reduction initiatives
|
|
1.2
|
|
|
2.5
|
|
Quality
remediation
|
|
0.6
|
|
|
0.9
|
|
Acquisition,
integration, divestiture and related
|
|
0.7
|
|
|
0.2
|
|
Litigation
|
|
0.3
|
|
|
4.5
|
|
European Union
Medical Device Regulation
|
|
0.4
|
|
|
0.6
|
|
Other
charges
|
|
0.1
|
|
|
0.4
|
|
Adjusted operating
profit margin
|
|
25.8
|
%
|
|
26.1
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE
FOR THE THREE MONTHS ENDED
MARCH 31, 2021 and 2020
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
Effective tax
rate
|
|
10.4
|
%
|
|
(1.0)
|
%
|
Tax effect of
adjustments made to earnings
before taxes(1)
|
|
6.2
|
|
|
18.7
|
|
Swiss tax
reform
|
|
(1.5)
|
|
|
(3.4)
|
|
Other certain tax
adjustments
|
|
0.9
|
|
|
1.4
|
|
Adjusted effective
tax rate
|
|
16.0
|
%
|
|
15.7
|
%
|
|
|
|
|
|
|
|
(1) Includes inventory and
manufacturing-related charges; intangible asset amortization;
goodwill impairment; restructuring and other cost reduction
initiatives; quality remediation; acquisition, integration,
divestiture and related; litigation; European Union Medical Device
Regulation; and other charges
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
RECONCILIATION OF
DEBT TO NET DEBT
|
|
AS OF MARCH 31,
2021 and DECEMBER 31, 2020
|
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
Debt, both current
and long-term
|
$
|
7,838.7
|
|
|
$
|
8,126.5
|
|
Cash and cash
equivalents
|
|
(724.3)
|
|
|
|
(802.1)
|
|
Net debt
|
$
|
7,114.4
|
|
|
$
|
7,324.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Zimmer Biomet Holdings, Inc.