Net loss [USD, thousands]

Depreciation and amortization [USD, thousands]

Stock-based compensation expense [USD, thousands]

Non-cash interest expense [USD, thousands]

Loss on currency hedges [USD, thousands]

Deferred income tax benefit [USD, thousands]

Loss on sale of property, plant and equipment [USD, thousands]

Net cash provided by operating activities [USD, thousands]

Purchases of property, plant and equipment and intangibles [USD, thousands]

Payments for acquisitions, net of cash received, and investments [USD, thousands]

Net cash used in investing activities [USD, thousands]

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Repayments of borrowings under term credit facility [USD, thousands]

Proceeds from borrowings on revolving credit facilities and other [USD, thousands]

Repayments of borrowings on revolving credit facilities and other [USD, thousands]

Payment of debt issuance costs [USD, thousands]

Payments of tax withholding for stock-based awards [USD, thousands]

Proceeds from issuance of common stock, net [USD, thousands]

Deferred consideration payments and other [USD, thousands]

Net cash provided by financing activities [USD, thousands]

Effect of foreign exchange rates on Cash and cash equivalents [USD, thousands]

Increase (decrease) in Cash, cash equivalents and restricted cash [USD, thousands]

Fair value loss on contingent acquisition shares [USD, thousands]

Trade receivables, net [USD, thousands]

Inventories, net [USD, thousands]

Accounts payable [USD, thousands]

Other operating assets and liabilities [USD, thousands]

Cash, cash equivalents and restricted cash, beginning of period [USD, thousands]

Cash, cash equivalents and restricted cash, end of period [USD, thousands]

e52c9a715be8d0604491a0922853cfb3d767cd060653d3b3fb87c7816d60ad97

In **Q4 2022**, **Cash and cash equivalents** were significantly reduced because Enovis repaid a substantial amount of debt (**$1,591.2 million**) while only partially offsetting this outflow with a **$1,143.4 million** distribution from ESAB Corporation. Additionally, the company experienced a decline in net cash from operating activities—shifting from a positive **$356.1 million** in 2021 to a negative **$(55.9) million** in 2022—due to higher working capital requirements and increased transaction costs, along with spending **$(176.4) million** on investing activities for acquisitions and capital expenditures. These combined factors led to a dramatic reduction in the cash reserves, resulting in a drop from **$680,252 thousand** in Q4 2021 to **$24,295 thousand** in Q4 2022.  **[0001420800-23-000008_cfx-20221231.htm:82]** **[0001420800-23-000003_q42022earningspressrelease.htm:8]** **[0001420800-23-000008_cfx-20221231.htm:96]** 

Why are Cash and cash equivalents so low in Q4 2022?

The decline in total assets in Q4 2022 was primarily driven by the removal of significant discontinued operations—assets that were previously reported in Q4 2021—and a sharp decrease in cash and cash equivalents, compounded by a reduction in additional paid-in capital. In Q4 2021, discontinued operations contributed substantial current and non-current assets that were no longer reported in 2022, while cash dropped from **$680,252 thousand** to **$24,295 thousand** due to financing outflows, and additional paid-in capital declined from **$4,544,315 thousand** to **$2,925,729 thousand**.  **[0001420800-23-000008_cfx-20221231.htm:96]** **[0001420800-23-000003_q42022earningspressrelease.htm:7]** **[0001420800-23-000003_q42022earningspressrelease.htm:8]** 

Why did Total assets nearly halve in Q4 2022?

The sharp decrease in long-term debt in Q4 2022 was primarily driven by **debt redemptions in connection with the Separation**, which involved repaying all obligations under the previous credit agreement—including the redemption of its **3.25% Euro Senior Notes due 2025** and **6.375% Senior Notes due 2026**, along with recording **debt extinguishment charges of $20.1 million**. In addition, a sizable portion of the debt was reclassified as the **current portion of long-term debt** (amounting to **$219,279 thousand**), and the company entered into a **new credit agreement** that restructured its debt profile.  **[0001420800-23-000003_q42022earningspressrelease.htm:7]** **[0001420800-23-000008_cfx-20221231.htm:96]** **[0001420800-23-000008_cfx-20221231.htm:126]** 

What caused the sharp decrease in Long-term debt in Q4 2022?

663bb6de67ff3ae56ef88489ae6b8c97f3829a5bd63314b189c6396ccaa3d592

The operating loss was so low in Q4 2023 because **net sales increased by 11% year-over-year**, reaching **$455,020 thousand**, which was driven by both **organic growth (8%)** and contributions from recent acquisitions. This sales boost helped improve the **gross profit to $264,389 thousand** with an enhanced margin moving from **56.7% to 58.1%**. Additionally, **restructuring and other charges decreased to $5,553 thousand** compared to the previous period, and **SG&A expenses were kept relatively stable** despite higher sales. These factors, combined with the absence of an insurance settlement gain seen in Q4 2022, collectively contributed to the significantly lower operating loss of **$5,755 thousand** in Q4 2023.  **[0001420800-24-000004_q42023earningspressrelease.htm:3]** **[0001420800-24-000004_q42023earningspressrelease.htm:0]** 

Why was Operating Loss so low in Q4 2023?

The **turnaround in Q4 2023** was driven by several key factors. **Improved operating performance** played a major role, as evidenced by the shift to a **net income from continuing operations of $3,068 thousand**, which reflected stronger core business results. This improvement was supported by **11% net sales growth** with **8% organic growth** and an enhancement in the **gross profit margin to 58.1%**. Additionally, the absence of prior year one-time items—such as the **$30,257 thousand gain on investment in ESAB Corporation**—combined with a significant decline in **strategic transaction costs** and **restructuring charges**, further contributed to the shift. A substantial reduction in the **income tax expense** (from **$52,296 thousand** down to **$4,589 thousand**) also bolstered the turnaround, collectively transforming a major net loss into a small net income.  **[0001420800-24-000004_q42023earningspressrelease.htm:0]** **[0001420800-24-000004_q42023earningspressrelease.htm:3]** **[0001420800-24-000004_q42023earningspressrelease.htm:6]** 

What drove the turnaround in Net Loss from Continuing Operations in Q4 2023?

The positive EPS in Q4 2023 was driven by a combination of factors, including **improved operating performance**—reflected in a shift from a significant net loss in Q4 2022 to a net income from continuing operations in Q4 2023 with higher sales growth and an improved gross profit margin—as well as **lower non-operating expenses** such as reduced debt extinguishment charges, a much lower **income tax expense**, and **decreased restructuring and other charges**. These elements, along with an increase in adjusted EBITDA, collectively contributed to turning net loss per share into **net income per share of $0.05** in Q4 2023.  **[0001420800-24-000004_q42023earningspressrelease.htm:0]** **[0001420800-24-000004_q42023earningspressrelease.htm:3]** **[0001420800-24-000004_q42023earningspressrelease.htm:6]** 

What contributed to the positive EPS in Q4 2023?

The deterioration in Q1 2024 was primarily driven by several factors. **Interest expense** increased notably by **$14.3 million** due to higher debt balances from financing the Lima acquisition. There was also a **$13.4 million** mark-to-market loss on the Contingent Acquisition Shares liability and an **$11.1 million** loss on non-designated forward currency contracts. In addition, **selling, general, and administrative expenses** increased by **$49 million**, largely due to higher commissions from increased sales and costs related to the Lima Acquisition, along with higher amortization of acquired intangibles and depreciation expenses. These factors collectively contributed to the significant worsening of net loss from continuing operations in Q1 2024.  **[0001420800-24-000012_cfx-20240329.htm:31]** 

Why did Net Loss from Continuing Operations worsen in Q1 2024?

The drop in EPS in Q1 2024 was primarily driven by **higher operating losses** and **increased expenses**. Specifically, there was a significant rise in the amortization of acquired intangibles (from **$32.0M to $40.9M**), restructuring and other charges (from **$2.9M to $12.9M**), and strategic transaction costs (from **$11.6M to $20.8M**), which together pushed operating losses higher. In addition, a substantial increase in **interest expense** (from **$5.7M to $20.0M**) and a dramatic swing in other (income) expense—from a small gain of **$0.7M** to a **$24.2M** loss—further impacted EPS. Acquisition-related integration costs, particularly those from the LimaCorporate S.p.A. acquisition, along with a slight increase in weighted-average shares, also contributed to the decline in EPS.  **[0001420800-24-000009_q12024earningspressrelease.htm:3]** **[0001420800-24-000012_cfx-20240329.htm:2]** **[0001420800-24-000009_q12024earningspressrelease.htm:0]** **[ENOV_3382163_1]** 

What drove the drop in EPS in Q1 2024?

c31584ba4606369c37506e93f284bd6f6033983346c14a289f0505317fd8750e

2252034d242711179b84d172eaa374732c25f02b2a09cd6d3d4d4ae27701024c

Net Sales (USD, thousands)

Cost of Sales (USD, thousands)

Gross Profit (USD, thousands)

Selling, General and Administrative Expense (USD, thousands)

Research and Development Expense (USD, thousands)

Amortization of Acquired Intangibles (USD, thousands)

Restructuring and Other Charges (USD, thousands)

Operating Loss (USD, thousands)

Interest Expense, Net (USD, thousands)

Other (Income) Expense, Net (USD, thousands)

Loss from Continuing Operations Before Income Taxes (USD, thousands)

Income Tax Benefit (Expense) (USD, thousands)

Net Loss from Continuing Operations (USD, thousands)

Income (Loss) from Discontinued Operations, Net of Taxes (USD, thousands)

Net Loss (USD, thousands)

Less: Net Income Attributable to Noncontrolling Interest from Continuing Operations - Net of Taxes (USD, thousands)

Net Loss Attributable to Enovis Corporation (USD, thousands)

Net Loss Per Share - Basic and Diluted - Continuing Operations (USD)

Net Loss Per Share - Basic and Diluted - Discontinued Operations (USD)

Net Loss Per Share - Basic and Diluted - Consolidated Operations (USD)

7be50826e9ff2fecd29dc2bb0d1209bbb9068f0654313bc82f12157580758cc4

1171c6f6a6dc0cee34228e29793d2ae22431f144400becb3dbca5cd8dbd639e1

7d7befb19054f0ad46633c6edbbf95b19dcc9af519af1e1d7973f35bce4e370c

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

9264d5369742913f6e2d0e95f39552536b736abb0d62117b78bba5fed969b9f9

0de1b598463c5668a7f984bcf33ac514a485577ab89114d1d8efd50574dbda41

United States

- Prevention & Recovery

- Reconstructive

Foreign Locations

Total Revenue

407ffd7c423cbf3d3c847c7f7afe96ba2e9cd22224e2f5fb92947e40839490dd

Enovis (ENOV)

Financials