WARSAW, Ind., Aug. 3, 2021 /PRNewswire/ -- Zimmer Biomet
Holdings, Inc. (NYSE and SIX: ZBH) today reported financial
results for the quarter ended June 30, 2021. The Company
reported second quarter net sales of $2.027 billion, an increase of 65.3% over
the prior year period, and an increase of 60.7% on a constant
currency basis. Second quarter 2021 net sales increased 1.9%
when compared to the pre-pandemic second quarter 2019, and were
flat on a constant currency basis. Net earnings for the second
quarter of 2021 were $141.9 million,
or $400.5 million on an adjusted
basis.
Diluted earnings per share were $0.67 for the second quarter. Adjusted
diluted earnings per share were $1.90
for the second quarter.
"Our performance in the second quarter improved meaningfully
from the first quarter 2021 across all regions and product
categories as recovery from the global pandemic continued to take
hold. While we anticipate some ongoing COVID-19 pressure, we expect
continued improvement in procedure volume recovery through the
second half of 2021," said Bryan
Hanson, Chairman, President and CEO of Zimmer Biomet.
"Against this backdrop, Zimmer Biomet has continued to execute,
investing in our business, expanding our portfolio and developing
and launching innovative products designed to improve mobility and
health. This execution enables ZB to build and deliver value for
our customers and shareholders and to move our mission forward for
the patients we ultimately serve."
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.
_________________________
1 Reconciliations of these measures to the corresponding
U.S. generally accepted accounting principles measures are included
in this press release.
Recent Highlights
Aligned with the ongoing transformation of Zimmer Biomet's
business, key recent highlights include:
- Publication of the Zimmer Biomet Sustainability Report, aligned
with Sustainability Accounting Standards Board (SASB)
standards.
- Receipt of key awards for Zimmer Biomet's portfolio including
the ROSA Knee system for Best Technology Solution in Orthopedics by
the Medtech Breakthrough Awards and Orthopaedic Product Innovation
of the Year by the Healthcare Asia Medtech Awards. The
TetherTM Vertebral Body Tethering System, a
first-in-class treatment for children with scoliosis, was also
Silver Winner in the 2021 Edison Best New Product Awards in the
Advanced Surgical Instruments category.
- Key additions to the Zimmer Biomet Leadership Team, including
the appointment of Wilfred van
Zuilen as President of Europe, Middle
East and Africa (EMEA) and
Nitin Goyal, M.D. to the newly
created role of Chief Science, Technology and Innovation
Officer.
Geographic and Product Category Sales
The following sales tables provide results by geography and
product category for the three and six-month periods ended
June 30, 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 JUNE 30, 2021
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant
|
|
|
Net
|
|
|
|
|
|
Currency
|
|
|
Sales
|
|
% Change
|
|
|
% Change
|
|
Geographic
Results
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
1,239.6
|
|
|
69.0
|
%
|
|
|
68.3
|
%
|
EMEA
|
|
429.8
|
|
|
96.4
|
|
|
|
80.5
|
|
Asia
Pacific
|
|
357.5
|
|
|
30.6
|
|
|
|
24.4
|
|
Total
|
$
|
2,026.9
|
|
|
65.3
|
%
|
|
|
60.7
|
%
|
Product
Categories
|
|
|
|
|
|
|
|
|
|
|
Knees
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
400.3
|
|
|
81.4
|
%
|
|
|
80.6
|
%
|
EMEA
|
|
148.6
|
|
|
127.2
|
|
|
|
109.6
|
|
Asia
Pacific
|
|
116.7
|
|
|
31.2
|
|
|
|
23.8
|
|
Total
|
|
665.6
|
|
|
77.5
|
|
|
|
72.2
|
|
Hips
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
258.1
|
|
|
51.3
|
|
|
|
50.4
|
|
EMEA
|
|
122.5
|
|
|
72.8
|
|
|
|
59.0
|
|
Asia
Pacific
|
|
94.0
|
|
|
6.6
|
|
|
|
3.9
|
|
Total
|
|
474.6
|
|
|
44.0
|
|
|
|
39.9
|
|
S.E.T.
*
|
|
462.1
|
|
|
57.9
|
|
|
|
53.0
|
|
Dental &
Spine
|
|
263.5
|
|
|
73.1
|
|
|
|
69.4
|
|
Other
|
|
161.1
|
|
|
110.9
|
|
|
|
105.9
|
|
Total
|
$
|
2,026.9
|
|
|
65.3
|
%
|
|
|
60.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Sports Medicine,
Extremities, Trauma, Craniomaxillofacial and Thoracic
|
NET SALES - SIX
MONTHS ENDED JUNE 30, 2021
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant
|
|
|
Net
|
|
|
|
|
Currency
|
|
|
Sales
|
|
% Change
|
|
% Change
|
|
Geographic
Results
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
2,354.6
|
|
|
28.3
|
%
|
|
27.9
|
%
|
EMEA
|
|
814.0
|
|
|
32.0
|
|
|
21.9
|
|
Asia
Pacific
|
|
705.7
|
|
|
26.4
|
|
|
19.9
|
|
Total
|
$
|
3,874.3
|
|
|
28.7
|
%
|
|
25.2
|
%
|
Product
Categories
|
|
|
|
|
|
|
|
|
|
Knees
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
759.1
|
|
|
26.8
|
%
|
|
26.3
|
%
|
EMEA
|
|
279.9
|
|
|
28.4
|
|
|
19.0
|
|
Asia
Pacific
|
|
240.9
|
|
|
29.0
|
|
|
21.0
|
|
Total
|
|
1,279.9
|
|
|
27.5
|
|
|
23.7
|
|
Hips
|
|
|
|
|
|
|
|
|
|
Americas
|
|
493.3
|
|
|
22.4
|
|
|
21.9
|
|
EMEA
|
|
230.2
|
|
|
26.3
|
|
|
17.1
|
|
Asia
Pacific
|
|
198.1
|
|
|
12.0
|
|
|
7.6
|
|
Total
|
|
921.6
|
|
|
20.9
|
|
|
17.4
|
|
S.E.T.
*
|
|
879.7
|
|
|
30.6
|
|
|
27.1
|
|
Dental &
Spine
|
|
509.5
|
|
|
37.1
|
|
|
34.1
|
|
Other
|
|
283.6
|
|
|
42.9
|
|
|
39.2
|
|
Total
|
$
|
3,874.3
|
|
|
28.7
|
%
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Sports Medicine,
Extremities, Trauma, Craniomaxillofacial and Thoracic
|
Financial Guidance
The Company is updating its full-year 2021 financial guidance to
narrow its previous projected ranges for revenue growth and
adjusted diluted EPS:
Projected Year
Ending December 31, 2021
|
|
Previous
Guidance
|
|
Updated
Guidance
|
2021 reported revenue
growth
|
14.0% -
17.0%
|
|
14.5% -
16.5%
|
Foreign Currency
Exchange Impact
|
1.5%
|
|
1.5%
|
Adjusted Operating
Profit Margin(1)
|
26.5% -
27.5%
|
|
26.5% -
27.0%
|
Adjusted Tax
Rate(1)
|
16.0% -
16.5%
|
|
16.0% -
16.5%
|
Adjusted Diluted
EPS(1)
|
$7.60 - $8.00
|
|
$7.65 -
$7.95
|
(1)
|
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."
|
Conference Call
The Company will conduct its second quarter investor conference
call today, August 3, 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
Zimmer Biomet is a global medical technology leader with a
comprehensive portfolio designed to maximize mobility and improve
health. We seamlessly transform the patient experience through our
innovative products and suite of integrated digital and robotic
technologies that leverage data, data analytics and artificial
intelligence.
With 90+ years of trusted leadership and proven expertise,
Zimmer Biomet is positioned to deliver the highest quality
solutions to patients and providers. Our legacy continues to come
to life today through our progressive culture of evolution and
innovation.
For more information about our product portfolio, our operations
in 25+ countries and sales in 100+ countries or about joining our
team, 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 and six-month periods
ended June 30, 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 and
six-month periods ended June 30, 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 any
continued recovery, 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 surgical 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 surgical 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 sponsored by government
agencies, legislative bodies, the private sector and healthcare
purchasing organizations, including the volume-based procurement
process in China; 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 JUNE 30, 2021 and 2020
|
|
(in millions,
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
Net
Sales
|
$
|
2,026.9
|
|
|
$
|
1,226.1
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
581.6
|
|
|
|
424.5
|
|
Intangible asset
amortization
|
|
154.6
|
|
|
|
147.7
|
|
Research and
development
|
|
180.5
|
|
|
|
87.7
|
|
Selling, general and
administrative
|
|
817.4
|
|
|
|
665.0
|
|
Goodwill and
intangible asset impairment
|
|
16.3
|
|
|
|
33.0
|
|
Restructuring and
other cost reduction initiatives
|
|
19.6
|
|
|
|
28.0
|
|
Quality
remediation
|
|
11.0
|
|
|
|
9.7
|
|
Acquisition,
integration, divestiture and related
|
|
25.4
|
|
|
|
2.2
|
|
Operating
expenses
|
|
1,806.4
|
|
|
|
1,397.8
|
|
Operating Profit
(Loss)
|
|
220.5
|
|
|
|
(171.7)
|
|
Other income,
net
|
|
8.1
|
|
|
|
3.8
|
|
Interest expense,
net
|
|
(54.7)
|
|
|
|
(54.0)
|
|
Earnings (loss)
before income taxes
|
|
173.9
|
|
|
|
(221.9)
|
|
Provision (benefit)
for income taxes
|
|
31.4
|
|
|
|
(13.7)
|
|
Net Earnings
(Loss)
|
|
142.5
|
|
|
|
(208.2)
|
|
Less: Net earnings
(loss) attributable to noncontrolling interest
|
|
0.6
|
|
|
|
(1.6)
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
$
|
141.9
|
|
|
$
|
(206.6)
|
|
Earnings (Loss)
Per Common Share
|
|
|
|
|
|
|
|
Basic
|
$
|
0.68
|
|
|
$
|
(1.00)
|
|
Diluted
|
$
|
0.67
|
|
|
$
|
(1.00)
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
|
|
|
|
Basic
|
|
208.6
|
|
|
|
206.8
|
|
Diluted
|
|
210.7
|
|
|
|
206.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2021 and 2020
|
|
(in millions,
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
Net
Sales
|
$
|
3,874.3
|
|
|
$
|
3,009.9
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
1,098.0
|
|
|
|
911.6
|
|
Intangible asset
amortization
|
|
310.1
|
|
|
|
295.3
|
|
Research and
development
|
|
274.9
|
|
|
|
186.1
|
|
Selling, general and
administrative
|
|
1,587.5
|
|
|
|
1,493.9
|
|
Goodwill and
intangible asset impairment
|
|
16.3
|
|
|
|
645.0
|
|
Restructuring and
other cost reduction initiatives
|
|
41.4
|
|
|
|
73.0
|
|
Quality
remediation
|
|
21.2
|
|
|
|
26.1
|
|
Acquisition,
integration, divestiture and related
|
|
38.8
|
|
|
|
6.6
|
|
Operating
expenses
|
|
3,388.2
|
|
|
|
3,637.6
|
|
Operating Profit
(Loss)
|
|
486.1
|
|
|
|
(627.7)
|
|
Other income,
net
|
|
15.4
|
|
|
|
6.8
|
|
Interest expense,
net
|
|
(107.0)
|
|
|
|
(104.9)
|
|
Earnings (loss)
before income taxes
|
|
394.5
|
|
|
|
(725.8)
|
|
Provision (benefit)
for income taxes
|
|
54.3
|
|
|
|
(8.5)
|
|
Net Earnings
(Loss)
|
|
340.2
|
|
|
|
(717.3)
|
|
Less: Net earnings
(loss) attributable to noncontrolling interest
|
|
0.2
|
|
|
|
(2.2)
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
$
|
340.0
|
|
|
$
|
(715.1)
|
|
Earnings (Loss)
Per Common Share
|
|
|
|
|
|
|
|
Basic
|
$
|
1.63
|
|
|
$
|
(3.46)
|
|
Diluted
|
$
|
1.62
|
|
|
$
|
(3.46)
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
|
|
|
|
Basic
|
|
208.3
|
|
|
|
206.6
|
|
Diluted
|
|
210.4
|
|
|
|
206.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in millions,
unaudited)
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,042.4
|
|
|
$
|
802.1
|
|
Receivables,
net
|
|
|
1,420.4
|
|
|
|
1,452.7
|
|
Inventories
|
|
|
2,533.0
|
|
|
|
2,450.7
|
|
Other current
assets
|
|
|
361.0
|
|
|
|
377.8
|
|
Total current
assets
|
|
|
5,356.8
|
|
|
|
5,083.3
|
|
Property, plant and
equipment, net
|
|
|
2,005.2
|
|
|
|
2,047.7
|
|
Goodwill
|
|
|
9,247.6
|
|
|
|
9,261.8
|
|
Intangible assets,
net
|
|
|
6,642.7
|
|
|
|
7,055.5
|
|
Other
assets
|
|
|
970.9
|
|
|
|
969.4
|
|
Total
Assets
|
|
$
|
24,223.2
|
|
|
$
|
24,417.7
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
1,878.5
|
|
|
$
|
2,056.9
|
|
Current portion of
long-term debt
|
|
|
1,050.0
|
|
|
|
500.0
|
|
Other long-term
liabilities
|
|
|
1,908.9
|
|
|
|
2,034.9
|
|
Long-term
debt
|
|
|
6,802.5
|
|
|
|
7,626.5
|
|
Stockholders'
equity
|
|
|
12,583.3
|
|
|
|
12,199.4
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
24,223.2
|
|
|
$
|
24,417.7
|
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2021 and 2020
|
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
Cash flows
provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
|
$
|
340.2
|
|
|
$
|
(717.3)
|
|
Depreciation and
amortization
|
|
|
535.2
|
|
|
|
508.7
|
|
Share-based
compensation
|
|
|
46.4
|
|
|
|
38.3
|
|
Goodwill and
intangible asset impairment
|
|
|
16.3
|
|
|
|
645.0
|
|
Changes in operating
assets and liabilities, net of acquired assets and
liabilities
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
(37.3)
|
|
|
|
(46.1)
|
|
Receivables
|
|
|
5.3
|
|
|
|
272.7
|
|
Inventories
|
|
|
(94.4)
|
|
|
|
(122.6)
|
|
Accounts payable and
accrued expenses
|
|
|
(56.3)
|
|
|
|
(233.9)
|
|
Other assets and
liabilities
|
|
|
(55.0)
|
|
|
|
53.3
|
|
Net cash provided by
operating activities
|
|
|
700.4
|
|
|
|
398.1
|
|
Cash flows
provided by (used in) investing activities
|
|
|
|
|
|
|
|
|
Additions to
instruments
|
|
|
(150.5)
|
|
|
|
(159.3)
|
|
Additions to other
property, plant and equipment
|
|
|
(54.7)
|
|
|
|
(59.2)
|
|
Net investment hedge
settlements
|
|
|
(9.6)
|
|
|
|
26.8
|
|
Investments in other
assets
|
|
|
(17.4)
|
|
|
|
(14.8)
|
|
Net cash used in
investing activities
|
|
|
(232.2)
|
|
|
|
(206.5)
|
|
Cash flows
provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
Proceeds from senior
notes
|
|
|
-
|
|
|
|
1,497.1
|
|
Redemption of senior
notes
|
|
|
(200.0)
|
|
|
|
(1,500.0)
|
|
Dividends paid to
stockholders
|
|
|
(99.8)
|
|
|
|
(99.1)
|
|
Proceeds from employee
stock compensation plans
|
|
|
91.5
|
|
|
|
61.7
|
|
Net cash flows from
unremitted collections from factoring programs
|
|
|
-
|
|
|
|
(19.6)
|
|
Business combination
contingent consideration payments
|
|
|
(6.5)
|
|
|
|
(7.5)
|
|
Debt issuance
costs
|
|
|
-
|
|
|
|
(19.4)
|
|
Other financing
activities
|
|
|
(9.3)
|
|
|
|
(6.1)
|
|
Net cash used in
financing activities
|
|
|
(224.1)
|
|
|
|
(92.9)
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
|
(3.8)
|
|
|
|
(3.2)
|
|
Increase in cash and
cash equivalents
|
|
|
240.3
|
|
|
|
95.5
|
|
Cash and cash
equivalents, beginning of period
|
|
|
802.1
|
|
|
|
617.9
|
|
Cash and cash
equivalents, end of period
|
|
$
|
1,042.4
|
|
|
$
|
713.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZIMMER BIOMET
HOLDINGS, INC.
NET SALES BY
GEOGRAPHY
FOR THE THREE
MONTHS ENDED JUNE 30, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
% Inc
|
|
Volume
/ Mix
|
|
Price
|
|
Foreign
Exchange
|
|
Americas
|
|
$
|
1,239.6
|
|
$
|
733.7
|
|
|
69.0
|
%
|
|
70.0
|
%
|
|
(1.7)
|
%
|
|
0.7
|
%
|
EMEA
|
|
|
429.8
|
|
|
218.7
|
|
|
96.4
|
|
|
80.5
|
|
|
-
|
|
|
15.9
|
|
Asia
Pacific
|
|
|
357.5
|
|
|
273.7
|
|
|
30.6
|
|
|
26.3
|
|
|
(1.9)
|
|
|
6.2
|
|
Total
|
|
$
|
2,026.9
|
|
$
|
1,226.1
|
|
|
65.3
|
%
|
|
62.2
|
%
|
|
(1.5)
|
%
|
|
4.6
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
NET SALES BY
PRODUCT CATEGORY
FOR THE THREE
MONTHS ENDED JUNE 30, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
% Inc
|
|
Volume
/ Mix
|
|
Price
|
|
Foreign
Exchange
|
|
Knees
|
|
$
|
665.6
|
|
$
|
375.0
|
|
|
77.5
|
%
|
|
74.3
|
%
|
|
(2.1)
|
%
|
|
5.3
|
%
|
Hips
|
|
|
474.6
|
|
|
329.7
|
|
|
44.0
|
|
|
42.4
|
|
|
(2.5)
|
|
|
4.1
|
|
S.E.T.
|
|
|
462.1
|
|
|
292.7
|
|
|
57.9
|
|
|
52.3
|
|
|
0.7
|
|
|
4.9
|
|
Dental &
Spine
|
|
|
263.5
|
|
|
152.3
|
|
|
73.1
|
|
|
70.3
|
|
|
(0.9)
|
|
|
3.7
|
|
Other
|
|
|
161.1
|
|
|
76.4
|
|
|
110.9
|
|
|
109.3
|
|
|
(3.4)
|
|
|
5.0
|
|
Total
|
|
$
|
2,026.9
|
|
$
|
1,226.1
|
|
|
65.3
|
%
|
|
62.2
|
%
|
|
(1.5)
|
%
|
|
4.6
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
NET SALES BY
GEOGRAPHY
FOR THE SIX MONTHS
ENDED JUNE 30, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
Six Months
Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
% Inc
|
|
Volume
/ Mix
|
|
Price
|
|
Foreign
Exchange
|
|
Americas
|
|
$
|
2,354.6
|
|
$
|
1,835.0
|
|
|
28.3
|
%
|
|
30.0
|
%
|
|
(2.1)
|
%
|
|
0.4
|
%
|
EMEA
|
|
|
814.0
|
|
|
616.8
|
|
|
32.0
|
|
|
22.1
|
|
|
(0.2)
|
|
|
10.1
|
|
Asia
Pacific
|
|
|
705.7
|
|
|
558.1
|
|
|
26.4
|
|
|
21.3
|
|
|
(1.4)
|
|
|
6.5
|
|
Total
|
|
$
|
3,874.3
|
|
$
|
3,009.9
|
|
|
28.7
|
%
|
|
26.8
|
%
|
|
(1.6)
|
%
|
|
3.5
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
NET SALES BY
PRODUCT CATEGORY
FOR THE SIX MONTHS
ENDED JUNE 30, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
Six Months
Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
% Inc
|
|
Volume
/ Mix
|
|
Price
|
|
Foreign
Exchange
|
|
Knees
|
|
$
|
1,279.9
|
|
$
|
1,003.7
|
|
|
27.5
|
%
|
|
25.9
|
%
|
|
(2.2)
|
%
|
|
3.8
|
%
|
Hips
|
|
|
921.6
|
|
|
762.3
|
|
|
20.9
|
|
|
20.0
|
|
|
(2.6)
|
|
|
3.5
|
|
S.E.T.
|
|
|
879.7
|
|
|
673.6
|
|
|
30.6
|
|
|
26.8
|
|
|
0.3
|
|
|
3.5
|
|
Dental &
Spine
|
|
|
509.5
|
|
|
371.8
|
|
|
37.1
|
|
|
35.1
|
|
|
(1.0)
|
|
|
3.0
|
|
Other
|
|
|
283.6
|
|
|
198.5
|
|
|
42.9
|
|
|
41.1
|
|
|
(1.9)
|
|
|
3.7
|
|
Total
|
|
$
|
3,874.3
|
|
$
|
3,009.9
|
|
|
28.7
|
%
|
|
26.8
|
%
|
|
(1.6)
|
%
|
|
3.5
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY
% CHANGE
(unaudited)
|
|
|
|
For the Three
Months Ended
|
|
|
June 30,
2021
|
|
|
|
|
|
Foreign
|
|
Constant
|
|
|
|
|
|
Exchange
|
|
Currency
|
|
|
% Change
|
|
Impact
|
|
% Change
|
|
Geographic
Results
|
|
|
|
|
|
|
|
|
|
Americas
|
|
69.0
|
%
|
|
0.7
|
%
|
|
68.3
|
%
|
EMEA
|
|
96.4
|
|
|
15.9
|
|
|
80.5
|
|
Asia
Pacific
|
|
30.6
|
|
|
6.2
|
|
|
24.4
|
|
Total
|
|
65.3
|
%
|
|
4.6
|
%
|
|
60.7
|
%
|
Product
Categories
|
|
|
|
|
|
|
|
|
|
Knees
|
|
|
|
|
|
|
|
|
|
Americas
|
|
81.4
|
%
|
|
0.8
|
%
|
|
80.6
|
%
|
EMEA
|
|
127.2
|
|
|
17.6
|
|
|
109.6
|
|
Asia
Pacific
|
|
31.2
|
|
|
7.4
|
|
|
23.8
|
|
Total
|
|
77.5
|
|
|
5.3
|
|
|
72.2
|
|
Hips
|
|
|
|
|
|
|
|
|
|
Americas
|
|
51.3
|
|
|
0.9
|
|
|
50.4
|
|
EMEA
|
|
72.8
|
|
|
13.8
|
|
|
59.0
|
|
Asia
Pacific
|
|
6.6
|
|
|
2.7
|
|
|
3.9
|
|
Total
|
|
44.0
|
|
|
4.1
|
|
|
39.9
|
|
S.E.T
|
|
57.9
|
|
|
4.9
|
|
|
53.0
|
|
Dental &
Spine
|
|
73.1
|
|
|
3.7
|
|
|
69.4
|
|
Other
|
|
110.9
|
|
|
5.0
|
|
|
105.9
|
|
Total
|
|
65.3
|
%
|
|
4.6
|
%
|
|
60.7
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY
% CHANGE
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
June 30,
2021
|
|
|
|
|
|
Foreign
|
|
Constant
|
|
|
|
|
|
Exchange
|
|
Currency
|
|
|
% Change
|
|
Impact
|
|
% Change
|
|
Geographic
Results
|
|
|
|
|
|
|
|
|
|
Americas
|
|
28.3
|
%
|
|
0.4
|
%
|
|
27.9
|
%
|
EMEA
|
|
32.0
|
|
|
10.1
|
|
|
21.9
|
|
Asia
Pacific
|
|
26.4
|
|
|
6.5
|
|
|
19.9
|
|
Total
|
|
28.7
|
%
|
|
3.5
|
%
|
|
25.2
|
%
|
Product
Categories
|
|
|
|
|
|
|
|
|
|
Knees
|
|
|
|
|
|
|
|
|
|
Americas
|
|
26.8
|
%
|
|
0.5
|
%
|
|
26.3
|
%
|
EMEA
|
|
28.4
|
|
|
9.4
|
|
|
19.0
|
|
Asia
Pacific
|
|
29.0
|
|
|
8.0
|
|
|
21.0
|
|
Total
|
|
27.5
|
|
|
3.8
|
|
|
23.7
|
|
Hips
|
|
|
|
|
|
|
|
|
|
Americas
|
|
22.4
|
|
|
0.5
|
|
|
21.9
|
|
EMEA
|
|
26.3
|
|
|
9.2
|
|
|
17.1
|
|
Asia
Pacific
|
|
12.0
|
|
|
4.4
|
|
|
7.6
|
|
Total
|
|
20.9
|
|
|
3.5
|
|
|
17.4
|
|
S.E.T
|
|
30.6
|
|
|
3.5
|
|
|
27.1
|
|
Dental, Spine &
CMFT
|
|
37.1
|
|
|
3.0
|
|
|
34.1
|
|
Other
|
|
42.9
|
|
|
3.7
|
|
|
39.2
|
|
Total
|
|
28.7
|
%
|
|
3.5
|
%
|
|
25.2
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY
% CHANGE
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
Foreign
|
|
Constant
|
|
|
Net
Sales
|
|
|
|
Exchange
|
|
Currency
|
|
|
2021
|
|
2019
|
% Change
|
|
Impact
|
|
% Change
|
|
Geographic
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
1,239.6
|
|
$
|
1,214.3
|
|
2.1
|
%
|
|
0.2
|
%
|
|
1.9
|
%
|
EMEA
|
|
429.8
|
|
|
438.0
|
|
(1.9)
|
|
|
5.4
|
|
|
(7.3)
|
|
Asia
Pacific
|
|
357.5
|
|
|
336.3
|
|
6.3
|
|
|
3.5
|
|
|
2.8
|
|
Total
|
$
|
2,026.9
|
|
$
|
1,988.6
|
|
1.9
|
%
|
|
1.9
|
%
|
|
-
|
%
|
Product
Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Knees
|
$
|
665.6
|
|
$
|
696.7
|
|
(4.5)
|
|
|
1.8
|
|
|
(6.3)
|
|
Hips
|
|
474.6
|
|
|
478.5
|
|
(0.8)
|
|
|
2.0
|
|
|
(2.8)
|
|
S.E.T
|
|
462.1
|
|
|
408.7
|
|
13.1
|
|
|
2.3
|
|
|
10.8
|
|
Dental &
Spine
|
|
263.5
|
|
|
257.6
|
|
2.3
|
|
|
1.5
|
|
|
0.8
|
|
Other
|
|
161.1
|
|
|
147.1
|
|
9.5
|
|
|
2.0
|
|
|
7.5
|
|
Total
|
$
|
2,026.9
|
|
$
|
1,988.6
|
|
1.9
|
%
|
|
1.9
|
%
|
|
-
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
RECONCILIATION OF
REPORTED TO ADJUSTED RESULTS
|
|
FOR THE THREE
MONTHS ENDED JUNE 30, 2021 and 2020
|
|
(in millions,
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE THREE
MONTHS ENDED JUNE 30, 2021
|
|
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
|
Intangible asset
amortization
|
|
|
Research and
development
|
|
|
Selling, general
and administrative
|
|
|
Goodwill and
intangible asset impairment
|
|
|
Restructuring and
other cost reduction initiatives
|
|
|
Quality
remediation
|
|
|
Acquisition,
integration, divestiture and related
|
|
|
Other income,
net
|
|
|
Provision
(benefit) for income taxes
|
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
|
|
Diluted earnings
(loss) per common share
|
|
As
Reported
|
|
$
|
581.6
|
|
|
$
|
154.6
|
|
|
$
|
180.5
|
|
|
$
|
817.4
|
|
|
$
|
16.3
|
|
|
$
|
19.6
|
|
|
$
|
11.0
|
|
|
$
|
25.4
|
|
|
$
|
8.1
|
|
|
$
|
31.4
|
|
|
$
|
141.9
|
|
|
$
|
0.67
|
|
Inventory and
manufacturing-related charges(1)
|
|
|
(7.9)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4.6
|
|
|
|
3.3
|
|
|
|
0.02
|
|
Intangible asset
amortization(2)
|
|
|
-
|
|
|
|
(154.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
31.4
|
|
|
|
123.2
|
|
|
|
0.58
|
|
Goodwill and
intangible asset impairment(3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16.3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.1
|
|
|
|
14.2
|
|
|
|
0.07
|
|
Restructuring and
other cost reduction initiatives(4)
|
|
|
(0.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(19.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4.4
|
|
|
|
15.3
|
|
|
|
0.07
|
|
Quality
remediation(5)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(11.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.5
|
|
|
|
8.5
|
|
|
|
0.04
|
|
Acquisition,
integration, divestiture and related(6)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(25.4)
|
|
|
|
-
|
|
|
|
5.3
|
|
|
|
20.1
|
|
|
|
0.10
|
|
Litigation(7)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.4
|
|
|
|
3.2
|
|
|
|
0.02
|
|
European Union
Medical Device Regulation(8)
|
|
|
-
|
|
|
|
-
|
|
|
|
(10.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.4
|
|
|
|
8.2
|
|
|
|
0.04
|
|
Certain R&D
agreements(9)
|
|
|
-
|
|
|
|
-
|
|
|
|
(65.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14.6
|
|
|
|
50.4
|
|
|
|
0.24
|
|
Other
charges(10)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4.5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3.0)
|
|
|
|
(2.1)
|
|
|
|
(5.4)
|
|
|
|
(0.03)
|
|
Swiss tax
reform(11)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(15.4)
|
|
|
|
15.4
|
|
|
|
0.07
|
|
Other certain tax
adjustments(12)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2.2)
|
|
|
|
2.2
|
|
|
|
0.01
|
|
As
Adjusted
|
|
$
|
573.6
|
|
|
$
|
-
|
|
|
$
|
104.9
|
|
|
$
|
818.3
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
5.1
|
|
|
$
|
79.4
|
|
|
$
|
400.5
|
|
|
$
|
1.90
|
|
FOR THE THREE
MONTHS ENDED JUNE 30, 2020
|
|
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
|
Intangible asset
amortization
|
|
|
Research and
development
|
|
|
Selling, general
and administrative
|
|
|
Goodwill and
intangible asset impairment
|
|
|
Restructuring and
other cost reduction initiatives
|
|
|
Quality
remediation
|
|
|
Acquisition,
integration, divestiture and related
|
|
|
Other income,
net
|
|
|
Provision
(benefit) for income taxes
|
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
|
|
Diluted earnings
(loss) per common share
|
|
As
Reported
|
|
$
|
424.5
|
|
|
$
|
147.7
|
|
|
$
|
87.7
|
|
|
$
|
665.0
|
|
|
$
|
33.0
|
|
|
$
|
28.0
|
|
|
$
|
9.7
|
|
|
$
|
2.2
|
|
|
$
|
3.8
|
|
|
$
|
(13.7)
|
|
|
$
|
(206.6)
|
|
|
$
|
(1.00)
|
|
Inventory and
manufacturing-related charges(1)
|
|
|
(1.4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.7
|
|
|
|
(2.3)
|
|
|
|
(0.01)
|
|
Intangible asset
amortization(2)
|
|
|
-
|
|
|
|
(147.7)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8.1
|
|
|
|
139.6
|
|
|
|
0.68
|
|
Goodwill and
intangible asset impairment(3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(33.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.7
|
|
|
|
27.3
|
|
|
|
0.13
|
|
Restructuring and
other cost reduction initiatives(4)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(28.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.8
|
|
|
|
27.2
|
|
|
|
0.13
|
|
Quality
remediation(5)
|
|
|
(0.2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9.7)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.6
|
|
|
|
9.3
|
|
|
|
0.04
|
|
Acquisition,
integration, divestiture and related(6)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2.2)
|
|
|
|
-
|
|
|
|
0.1
|
|
|
|
2.1
|
|
|
|
0.01
|
|
Litigation(7)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1.3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6.1)
|
|
|
|
7.4
|
|
|
|
0.04
|
|
European Union
Medical Device Regulation(8)
|
|
|
-
|
|
|
|
-
|
|
|
|
(6.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.1)
|
|
|
|
6.2
|
|
|
|
0.03
|
|
Other
charges(10)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(11.9)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4.6)
|
|
|
|
10.7
|
|
|
|
(3.4)
|
|
|
|
(0.02)
|
|
Swiss tax
reform(11)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.7
|
|
|
|
(0.7)
|
|
|
|
-
|
|
Other certain tax
adjustments(12)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4.1)
|
|
|
|
4.1
|
|
|
|
0.02
|
|
Effect of dilutive
shares assuming net earnings(13)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
As
Adjusted
|
|
$
|
422.9
|
|
|
$
|
-
|
|
|
$
|
81.6
|
|
|
$
|
651.8
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.8)
|
|
|
$
|
6.4
|
|
|
$
|
10.2
|
|
|
$
|
0.05
|
|
ZIMMER BIOMET
HOLDINGS, INC.
|
|
RECONCILIATION OF
REPORTED TO ADJUSTED RESULTS
|
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2021 and 2020
|
|
(in millions,
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2021
|
|
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
|
Intangible asset
amortization
|
|
|
Research and
development
|
|
|
Selling, general
and administrative
|
|
|
Goodwill and
intangible asset impairment
|
|
|
Restructuring and
other cost reduction initiatives
|
|
|
Quality
remediation
|
|
|
Acquisition,
integration, divestiture and related
|
|
|
Other income,
net
|
|
|
Provision
(benefit) for income taxes
|
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
|
|
Diluted earnings
(loss) per common share
|
|
As
Reported
|
|
$
|
1,098.0
|
|
|
$
|
310.1
|
|
|
$
|
274.9
|
|
|
$
|
1,587.5
|
|
|
$
|
16.3
|
|
|
$
|
41.4
|
|
|
$
|
21.2
|
|
|
$
|
38.8
|
|
|
$
|
15.4
|
|
|
$
|
54.3
|
|
|
$
|
340.0
|
|
|
$
|
1.62
|
|
Inventory and
manufacturing-related charges(1)
|
|
|
(2.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10.5
|
|
|
|
(8.5)
|
|
|
|
(0.04)
|
|
Intangible asset
amortization(2)
|
|
|
-
|
|
|
|
(310.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
61.2
|
|
|
|
248.9
|
|
|
|
1.18
|
|
Goodwill and
intangible asset impairment(3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16.3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.1
|
|
|
|
14.2
|
|
|
|
0.07
|
|
Restructuring and
other cost reduction initiatives(4)
|
|
|
(0.2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(41.4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9.3
|
|
|
|
32.3
|
|
|
|
0.15
|
|
Quality
remediation(5)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(21.2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4.7
|
|
|
|
16.5
|
|
|
|
0.08
|
|
Acquisition,
integration, divestiture and related(6)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(38.8)
|
|
|
|
-
|
|
|
|
8.3
|
|
|
|
30.5
|
|
|
|
0.14
|
|
Litigation(7)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9.7)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.9
|
|
|
|
8.8
|
|
|
|
0.04
|
|
European Union
Medical Device Regulation(8)
|
|
|
-
|
|
|
|
-
|
|
|
|
(17.5)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.8
|
|
|
|
13.7
|
|
|
|
0.07
|
|
Certain R&D
agreements(9)
|
|
|
-
|
|
|
|
-
|
|
|
|
(65.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14.6
|
|
|
|
50.4
|
|
|
|
0.24
|
|
Other
charges(10)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1.9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7.1)
|
|
|
|
(2.8)
|
|
|
|
(6.2)
|
|
|
|
(0.03)
|
|
Swiss tax
reform(11)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18.8)
|
|
|
|
18.8
|
|
|
|
0.09
|
|
Other certain tax
adjustments(12)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.2)
|
|
|
|
0.2
|
|
|
|
-
|
|
As
Adjusted
|
|
$
|
1,095.8
|
|
|
$
|
-
|
|
|
$
|
192.4
|
|
|
$
|
1,579.7
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
8.3
|
|
|
$
|
147.9
|
|
|
$
|
759.6
|
|
|
$
|
3.61
|
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2020
|
|
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
|
Intangible asset
amortization
|
|
|
Research and
development
|
|
|
Selling, general
and administrative
|
|
|
Goodwill and
intangible asset impairment
|
|
|
Restructuring and
other cost reduction initiatives
|
|
|
Quality
remediation
|
|
|
Acquisition,
integration, divestiture and related
|
|
|
Other income,
net
|
|
|
Provision
(benefit) for income taxes
|
|
|
Net Earnings
(Loss) of Zimmer Biomet Holdings, Inc.
|
|
|
Diluted earnings
(loss) per common share
|
|
As
Reported
|
|
$
|
911.6
|
|
|
$
|
295.3
|
|
|
$
|
186.1
|
|
|
$
|
1,493.9
|
|
|
$
|
645.0
|
|
|
$
|
73.0
|
|
|
$
|
26.1
|
|
|
$
|
6.6
|
|
|
$
|
6.8
|
|
|
$
|
(8.5)
|
|
|
$
|
(715.1)
|
|
|
$
|
(3.46)
|
|
Inventory and
manufacturing-related charges(1)
|
|
|
(2.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.9
|
|
|
|
(3.9)
|
|
|
|
(0.02)
|
|
Intangible asset
amortization(2)
|
|
|
-
|
|
|
|
(295.3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38.2
|
|
|
|
257.1
|
|
|
|
1.24
|
|
Goodwill and
intangible asset impairment(3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(645.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.7
|
|
|
|
639.3
|
|
|
|
3.09
|
|
Restructuring and
other cost reduction initiatives(4)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(73.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12.2
|
|
|
|
60.8
|
|
|
|
0.29
|
|
Quality
remediation(5)
|
|
|
0.3
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(26.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4.1
|
|
|
|
21.7
|
|
|
|
0.11
|
|
Acquisition,
integration, divestiture and related(6)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6.6)
|
|
|
|
-
|
|
|
|
1.0
|
|
|
|
5.6
|
|
|
|
0.03
|
|
Litigation(7)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(81.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11.9
|
|
|
|
69.2
|
|
|
|
0.34
|
|
European Union
Medical Device Regulation(8)
|
|
|
-
|
|
|
|
-
|
|
|
|
(17.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.1
|
|
|
|
15.0
|
|
|
|
0.07
|
|
Other
charges(10)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(17.8)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3.9)
|
|
|
|
12.6
|
|
|
|
1.3
|
|
|
|
0.01
|
|
Swiss tax
reform(11)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16.2)
|
|
|
|
16.2
|
|
|
|
0.08
|
|
Other certain tax
adjustments(12)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.1
|
|
|
|
(3.1)
|
|
|
|
(0.02)
|
|
Effect of dilutive
shares assuming net earnings(13)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01)
|
|
As
Adjusted
|
|
$
|
909.9
|
|
|
$
|
-
|
|
|
$
|
169.0
|
|
|
$
|
1,395.0
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
2.9
|
|
|
$
|
72.1
|
|
|
$
|
364.1
|
|
|
$
|
1.75
|
|
(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. In the second quarters of 2021 and 2020, we
recognized $16.3 million and $33.0 million, respectively, of
in-process research and development ("IPR&D") intangible asset
impairments on certain IPR&D projects.
|
|
|
(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 the
planned spinoff of NewCo and various acquisitions.
|
|
|
(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 provided 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)
|
During the three and
six-month periods ended June 30, 2021, we entered into certain
agreements to gain access to or acquire third-party IPR&D
projects.
|
|
|
(10)
|
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.
|
|
|
(11)
|
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.
|
|
|
(12)
|
Other certain tax
adjustments relate to various discrete tax period
adjustments.
|
|
|
(13)
|
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
|
|
Six Months
Ended
|
|
|
June 30,
2020
|
|
June 30,
2020
|
|
|
|
|
|
|
|
|
Diluted
shares
|
|
206.8
|
|
|
206.6
|
|
Dilutive shares
assuming net earnings
|
|
1.0
|
|
|
1.4
|
|
Adjusted diluted
shares
|
|
207.8
|
|
|
208.0
|
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
NET CASH PROVIDED BY OPERATING
ACTIVITIES TO FREE
CASH FLOW
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Net cash provided by
(used in) operating activities
|
$
|
453.9
|
|
$
|
(52.8)
|
|
|
$
|
700.4
|
|
$
|
398.1
|
|
Additions to
instruments
|
|
(67.9)
|
|
|
(73.6)
|
|
|
|
(150.5)
|
|
|
(159.3)
|
|
Additions to other
property, plant and equipment
|
|
(27.3)
|
|
|
(19.0)
|
|
|
|
(54.7)
|
|
|
(59.2)
|
|
Free cash
flow
|
$
|
358.7
|
|
$
|
(145.4)
|
|
|
$
|
495.2
|
|
$
|
179.6
|
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
GROSS PROFIT & MARGIN TO ADJUSTED GROSS
PROFIT &
MARGIN
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Net Sales
|
$
|
2,026.9
|
|
$
|
1,226.1
|
|
|
$
|
3,874.3
|
|
$
|
3,009.9
|
|
Cost of products
sold, excluding intangible asset amortization
|
|
581.6
|
|
|
424.5
|
|
|
|
1,098.0
|
|
|
911.6
|
|
Intangible asset
amortization
|
|
154.6
|
|
|
147.7
|
|
|
|
310.1
|
|
|
295.3
|
|
Gross
Profit
|
$
|
1,290.7
|
|
$
|
653.9
|
|
|
$
|
2,466.2
|
|
$
|
1,803.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and
manufacturing-related charges
|
|
7.9
|
|
|
1.4
|
|
|
|
2.0
|
|
|
2.0
|
|
Restructuring and
other cost reduction initiatives
|
|
0.1
|
|
|
-
|
|
|
|
0.2
|
|
|
-
|
|
Quality
remediation
|
|
-
|
|
|
0.2
|
|
|
|
-
|
|
|
(0.3)
|
|
Intangible asset
amortization
|
|
154.6
|
|
|
147.7
|
|
|
|
310.1
|
|
|
295.3
|
|
Adjusted gross
profit
|
$
|
1,453.3
|
|
$
|
803.2
|
|
|
$
|
2,778.5
|
|
$
|
2,100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
63.7
|
%
|
|
53.3
|
%
|
|
|
63.6
|
%
|
|
59.9
|
%
|
Inventory and
manufacturing-related charges
|
|
0.4
|
|
|
0.1
|
|
|
|
0.1
|
|
|
0.1
|
|
Restructuring and
other cost reduction initiatives
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
Quality
remediation
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
Intangible asset
amortization
|
|
7.6
|
|
|
12.1
|
|
|
|
8.0
|
|
|
9.8
|
|
|
Adjusted gross
margin
|
|
71.7
|
%
|
|
65.5
|
%
|
|
|
71.7
|
%
|
|
69.8
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
OPERATING PROFIT (LOSS) & MARGIN TO ADJUSTED OPERATING PROFIT
& MARGIN
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2021 and 2020
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Operating profit
(loss)
|
$
|
220.5
|
|
$
|
(171.7)
|
|
|
$
|
486.1
|
|
$
|
(627.7)
|
|
Inventory and
manufacturing-related charges
|
|
7.9
|
|
|
1.4
|
|
|
|
2.0
|
|
|
2.0
|
|
Intangible asset
amortization
|
|
154.6
|
|
|
147.7
|
|
|
|
310.1
|
|
|
295.3
|
|
Goodwill and
intangible asset impairment
|
|
16.3
|
|
|
33.0
|
|
|
|
16.3
|
|
|
645.0
|
|
Restructuring and
other cost reduction initiatives
|
|
19.7
|
|
|
28.0
|
|
|
|
41.6
|
|
|
73.0
|
|
Quality
remediation
|
|
11.0
|
|
|
9.9
|
|
|
|
21.2
|
|
|
25.8
|
|
Acquisition,
integration, divestiture and related
|
|
25.4
|
|
|
2.2
|
|
|
|
38.8
|
|
|
6.6
|
|
Litigation
|
|
3.6
|
|
|
1.3
|
|
|
|
9.7
|
|
|
81.1
|
|
European Union
Medical Device Regulation
|
|
10.6
|
|
|
6.1
|
|
|
|
17.5
|
|
|
17.1
|
|
Certain R&D
agreements
|
|
65.0
|
|
|
-
|
|
|
|
65.0
|
|
|
-
|
|
Other
charges
|
|
(4.5)
|
|
|
11.9
|
|
|
|
(1.9)
|
|
|
17.8
|
|
Adjusted operating
profit
|
$
|
530.1
|
|
$
|
69.8
|
|
|
$
|
1,006.4
|
|
$
|
536.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss) margin
|
|
10.9
|
%
|
|
(14.0)
|
%
|
|
|
12.6
|
%
|
|
(20.9)
|
%
|
Inventory and
manufacturing-related charges
|
|
0.4
|
|
|
0.1
|
|
|
|
0.1
|
|
|
0.1
|
|
Intangible asset
amortization
|
|
7.6
|
|
|
12.1
|
|
|
|
8.0
|
|
|
9.8
|
|
Goodwill and
intangible asset impairment
|
|
0.8
|
|
|
2.7
|
|
|
|
0.4
|
|
|
21.4
|
|
Restructuring and
other cost reduction initiatives
|
|
1.0
|
|
|
2.3
|
|
|
|
1.1
|
|
|
2.4
|
|
Quality
remediation
|
|
0.5
|
|
|
0.8
|
|
|
|
0.5
|
|
|
0.9
|
|
Acquisition,
integration, divestiture and related
|
|
1.3
|
|
|
0.2
|
|
|
|
1.0
|
|
|
0.2
|
|
Litigation
|
|
0.2
|
|
|
0.1
|
|
|
|
0.2
|
|
|
2.7
|
|
European Union
Medical Device Regulation
|
|
0.5
|
|
|
0.5
|
|
|
|
0.5
|
|
|
0.6
|
|
Certain R&D
agreements
|
|
3.2
|
|
|
-
|
|
|
|
1.7
|
|
|
-
|
|
Other
charges
|
|
(0.2)
|
|
|
0.9
|
|
|
|
(0.1)
|
|
|
0.6
|
|
Adjusted operating
profit margin
|
|
26.2
|
%
|
|
5.7
|
%
|
|
|
26.0
|
%
|
|
17.8
|
%
|
ZIMMER BIOMET
HOLDINGS, INC.
RECONCILIATION OF
EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2021 and 2020
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Effective tax
rate
|
|
18.0
|
%
|
|
6.2
|
%
|
|
|
13.8
|
%
|
|
1.2
|
%
|
Tax effect of
adjustments made to earnings before taxes(1)
|
|
8.7
|
|
|
35.0
|
|
|
|
7.2
|
|
|
13.5
|
|
Swiss tax
reform
|
|
(8.9)
|
|
|
(0.3)
|
|
|
|
(4.7)
|
|
|
2.3
|
|
Other certain tax
adjustments
|
|
(1.3)
|
|
|
1.9
|
|
|
|
-
|
|
|
(0.4)
|
|
Adjusted effective
tax rate
|
|
16.5
|
%
|
|
42.8
|
%
|
|
|
16.3
|
%
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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; certain R&D agreements, and other
charges
|
ZIMMER BIOMET
HOLDINGS, INC.
|
RECONCILIATION OF
DEBT TO NET DEBT
|
AS OF JUNE 30,
2021 and DECEMBER 31, 2020
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
|
December 31,
2020
|
Debt, both current
and long-term
|
$
|
7,852.5
|
|
|
$
|
8,126.5
|
Cash and cash
equivalents
|
|
(1,042.4)
|
|
|
|
(802.1)
|
Net debt
|
$
|
6,810.1
|
|
|
$
|
7,324.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Zimmer Biomet Holdings, Inc.