Spartan Medical Purchases 7D Surgical Technology to Support Its Commercialization Efforts in The Key Mid-Atlantic Hospital Market

Posted On July 31, 2017 By OrthoSpineNews In Spine, Top Stories /

TORONTO, July 31, 2017 /PRNewswire/ — 7D Surgical, developer of ground breaking surgical navigation technologies, announced today that Spartan Medical has purchased the 7D Surgical System to support its strategic sales plan in Maryland, Washington D.C. and Virginia. 7D Surgical has entered into an exclusive sales representative agreement with Spartan Medical for many of the premier medical facilities within those markets.

“Our new partnership with Spartan Medical is another important step in our rapid growth strategy in North America,” said Beau Standish, Chief Executive Officer of 7D Surgical. “Their expertise and unique relationships with federal facilities will be critical in bringing the most advanced machine-vision based navigation technologies to DoD spine surgeons and the U.S. military personnel and veterans they serve.”

The 7D Surgical System is the first and only Machine-Vision Image Guided Surgery (MvIGS) platform. For the first-time spine surgery patients can be automatically registered using only visible light in just seconds with 7D Surgical’s Flash™ Registration technology. Unlike time-consuming conventional image guided surgery (IGS) systems that depend on intraoperative radiation, this new MvIGS platform can achieve an incredibly fast surgical workflow for spine procedures. Continuing to leverage the capabilities of machine-vision, 7D Surgical’s soon to be released Flash™ Fix technology can also update and correct the registration at any time during the procedure in just seconds.

“To me, this is similar to the invention of the X-ray,” said Vince Proffitt, President of Spartan Medical. “Those of us that have been in surgeries supporting our implants know the real challenges of accurate and reproducible imaging and navigation. We know how dependent the surgery may be on the equipment technicians’ skills and training, and we also know the incredible risks of daily radiation. The 7D Surgical System eliminates these critical concerns and creates a surgeon controlled, real-time, radiation-free, simple and accurate imaging and navigation system…truly a technological marvel!”

Live demonstrations of the 7D Surgical System are available at Spartan Medical Headquarters in Silver Spring, Maryland. Contact Spartan Medical to schedule a time to experience the system in action at 1-888-240-8091, or email Spartan Medical at 170185@email4pr.com.

About 7D Surgical
7D Surgical is a privately-owned Toronto based company that develops advanced optical technologies and machine vision-based registration algorithms to improve surgical workflow and patient care. 7D Surgical’s flagship FDA 510(k)-cleared and Health Canada-approved MvIGS system delivers profound improvement to surgical workflows in spine surgery, providing the promise of similar future advancements in other surgical specialties. www.7Dsurgical.com

Flash™ Fix: http://7dsurgical.com/7d-surgical-system/flash-technology/

Contact:
Beau Standish, CEO
7D Surgical
+1 647 484-0078
www.7Dsurgical.com
170185@email4pr.com

About Spartan Medical

Spartan Medical Inc. was founded in 2008 by a former Air Force Intelligence Officer to provide an extensive armamentarium of advanced medical devices and technologies focused on the needs of the VA and DoD surgeon. Spartan Medical is considered a top priority vendor in the VA as a certified Service-Disabled Veteran-Owned Small Business (SDVOSB), and has secured multi-year Blanket Purchase Agreements at 30 major military treatment facilities. With a core staff possessing over 200 years of combined expertise and experience in the field, and numerous highly trained and skilled consultants across the nation, Spartan Medical assures no single points of failure. Consistent with its mission to provide the best products and services to our nation’s wounded warriors and veterans, Spartan Medical has recently collaborated with 7D Surgical to provide the most innovative, state-of-the-art, image-guided spinal navigation system – with zero radiation – to meet the incredible need to improve implant placement accuracy in real-time while eliminating radiation in the operating room.

Contact:
Vince Proffitt, President
Spartan Medical Inc.
+1 888 240 -8091
www.spartanmedspine.com
170185@email4pr.com

Forward-looking Statements

This press release contains forward-looking statements regarding, among other things, statements pertaining to expectations, goals, plans, objectives, and future events. 7D Surgical intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, and the Private Securities Reform Act of 1995. In some cases, forward-looking statements can be identified by the following words: “may,” “can,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “promise,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements are based on the current estimates and assumptions of our management as of the date of this press release and are subject to risks, uncertainties, changes in circumstances, assumptions, and other factors that may cause actual results to differ materially from those indicated by forward-looking statements, many of which are beyond 7D Surgical’s ability to control or predict. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. 7D Surgical does not undertake any obligation to release publicly any updates or revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

“Flash,” as well as the “7D” logo, whether standing alone or in connection with the words “7D Surgical” are protected trademarks of 7D Surgical.

SOURCE 7D Surgical Inc.

SPINEWAY : Reinforcement of the balance-sheet structure with a reserved issue of Notes with Warrants

Posted On July 28, 2017 By OrthoSpineNews In Financial /

Spineway, specialist in surgical implants and instruments for treating disorders of the spinal column (spine), announces that it is setting up an issue of Tranche Warrants for Notes with Warrants to finance the acceleration of its development.

Legal framework

In accordance with the delegation of power granted to the Board of Directors and approved by the Ordinary and Extraordinary General Meeting of Spineway (the “Company“) shareholders held on June 19, 2017, Spineway’s Board of Directors approved – on July 20, 2017 – the plan for an issue of 200 warrants (the “Tranche Warrants“), the exercise of which gives access to the issue of 200 notes redeemable in cash and/or convertible into new and/or existing shares (the “Notes“) with warrants to subscribe shares (the “Warrants“), representing a bond issue in the amount of €2M in favor of the YA II PN, LTD investment fund (the “Investor“), a fund managed by the US management company Yorkville Advisors, and empowered the CEO to decide to launch this transaction, approve its final terms and conditions, and issue the Tranche Warrants.

Pursuant to an issuance agreement entered into today between the Investor and Spineway, the Investor has agreed to subscribe – during a period of 36 months as from the date of issue of the Tranche Warrants – up to 200 Notes with Warrants, representing a total par value of €2M, in several successive tranches (each referred to as a “Tranche“), which investor is not, however, intended to remain as Spineway capital in the long term.

This issuance is subject to the transfer of the Spineway shares to the “Public Offering” compartment of Euronext Growth and obtaining prior approval from the Autorité des Marchés Financiers of the prospectus to be prepared by the Company by December 31, 2017, at the latest. Therefore, if this condition precedent is met, the issuance of the Tranche Warrants and subscription for the first Tranche should take place by the end of 2017.

Purpose of the transaction

The purpose of the issuance of these Notes with Warrants is to provide Spineway with the financial means necessary to carry out its international-development plan and launch new innovative products. It could result in a capital investment of approximately €3.96M: €1.96M corresponding to the subscription of all the Notes and €2M corresponding to the exercise of all the Warrants.

Stéphane Le Roux, CEO of the Spineway Group, commented on this potential €3.96M in additional financial resources: “We are thrilled about this agreement with Yorkville Advisors that will allow us to diversify the financing we have to support our growth. The issuance of a first tranche of €1M by the end of the year will allow us to finance our development in new areas, such as in the USA, and accelerate the launch of our new products.”

Characteristics of the Tranche Warrants, Notes and Warrants

The main characteristics of the Tranche Warrants, Notes and Warrants (the detailed terms and conditions of which are available on the Company’s website) are as follows:

Main characteristics of the Tranche Warrants

The Tranche Warrants require their bearer, at the Company’s request⁽¹⁾ (a “Request“) or on the Investor’s initiative⁽²⁾, to subscribe Notes with Warrants attached, i.e., one Note per Tranche Warrant exercised, at a price set at 98% of the par value of a Note. The Company can therefore request the exercise of the Tranche Warrants in order to allow the issuance of Notes in several tranches. Each exercise date of each Tranche Warrant is a “Tranche Warrant Exercise Date.”

The Tranche Warrants are freely transferable to any other fund managed by Yorkville Advisors but cannot be transferred to a third party without the Company’s prior approval, shall not be the subject of a request for admission to trading on Euronext Growth and therefore shall not be listed.

Main characteristics of the Notes

The Notes shall be issued in several Tranches. The aggregate principal amount of the first Tranche will be equal to €1M. The aggregate principal amount of each of the following Tranches shall, in principle, be equal to €0.5M, unless otherwise mutually agreed by the Investor and the Company.

The Notes have a par value of €10,000 each and are subscribed at 98% of par.

The Notes have a maturity of 12 months from their date of issuance. Upon maturity or an event of default⁽³⁾, the Notes that have not been converted shall be redeemed by the Company at par (plus accrued interest, if any). The Notes do not bear interest (except in the event of default).

At its discretion, the Investor may convert all or any of its Notes into new and/or existing shares (a “Conversion“). Upon a Conversion, the Investor shall determine the number of Notes to be converted and the corresponding aggregate principal amount and interest (if any) so converted (the “Conversion Amount“). The number of shares to be issued to the Investor upon each Conversion will be equal to the Conversion Amount divided by 92% of the Market Price (as defined below) on the Conversion Date.

Upon a Conversion, the Company shall have the right at its sole discretion to remit to the Investor: (1) the corresponding new and/or existing shares (as described above), (2) the value in cash or (3) an amount in cash and new and/or existing shares.

If the Company chooses to remit a cash amount, such amount shall be equal to:

M = (Vn / P) * C

“M”: cash amount payable to the Note bearer;
“Pv”: bond claim that the Note represents (par value of a Note, plus accrued interest, if any);
“P”: 92% of Market Price;
“C”: daily volume weighted average price of the Company’s share on the Conversion Date.

The market price (the “Market Price“) shall be the lowest daily volume weighted average price of the Company’s share over the ten (10) consecutive trading days immediately preceding the applicable date (the “Pricing Period“). By way of exception, in the case of a Conversion, or upon exercise of Tranche Warrants on the Investor’s initiative, Pricing Period shall mean the trading days during which the Investor has not sold any share of the Company in the market among the ten (10) consecutive trading days immediately preceding the applicable date.

The Notes, which are freely transferable to any other fund managed by Yorkville Advisors but cannot be transferred to a third party without the Company’s prior approval, shall not be the subject of a request for admission to trading on Euronext Growth and therefore shall not be listed.

Main characteristics of the Warrants

Each Note shall be issued with a number of Warrants equal to the par value of a Note divided by the applicable strike price of the Warrants (the “Strike Price“). The Warrants shall immediately be detached from the Notes and each Warrant shall give its bearer the right to subscribe for one (1) new share in the Company, subject to possible adjustments.

The Strike Price of the Warrants attached to the Notes of the first Tranche shall be equal to 115% of the lower of (1) the Market Price on the issuance date of the Tranche Warrants (2) the Market Price on July 13, 2017, i.e., 3.2572 euros.

The Strike Price of the Warrants attached to the Notes of the subsequent Tranches shall be equal 115% of the Market Price on the date of the applicable Request (or Tranche Warrant Exercise Date in the case of an exercise of Tranche Warrants on the Investor’s initiative).

The Warrants shall be exercisable in new shares for a period of 5 years from their respective issuance dates.

The Warrants, which are freely transferable to any other fund managed by Yorkville Advisors but cannot be transferred to a third party without the Company’s prior approval, shall not be the subject of a request for admission to trading on Euronext Growth and therefore shall not be listed, unless the Company and the Investor agree otherwise.

For reference, based on the share’s closing price on July 27, 2017 (i.e., €3.66), the theoretical value of a Warrant would be between €0.78 and €1.69 depending on the volatility applied (between 30% and 60%). The theoretical value of a Warrant is obtained using the Black & Scholes formula based on the following hypotheses:

maturity: 5 years;
risk-free interest rate: 0%;
dividend payout rate: 0%.

New shares resulting from the Conversion of Notes or the exercise of Warrants

The new shares issued upon conversion of the Notes and/or exercise of the Warrants shall be admitted to trading on Euronext Growth as from their issuance, will carry immediate and current dividend rights and will be fully assimilated to and fungible with the existing ordinary shares.

The Company shall update a summary table on its website showing the Tranche Warrants, Notes, Warrants and number of shares outstanding.

Theoretical impact of the issuance of the Notes with Warrants attached (based on the Company share’s closing price on July 27, 2017, i.e., €3.66)

For reference, assuming the Company decides to remit only new shares upon Conversion of the Notes, the impact of the issuance of the Notes with Warrants attached would be as follows:

Impact of the issuance on the consolidated net assets per share (based on the shareholders’ equity as at December 31, 2016, and the number of shares making up the Company’s share capital as at July 27, 2017, i.e., 3,907,846 shares):

	Consolidated net assets per share (in €)
	Non-diluted basis		Diluted basis⁽¹⁾
	1^sttranche	Total tranches	1^sttranche	Total tranches
Before issuance	€0.47		€0.80
After issuance of a maximum of 296 982 (1^st tranche) or of 593 964 (total tranches) new shares resulting from the Conversion of the Notes	€0.65	€0.82	€0.95	€1.08
After issuance of a maximum of 564 361 (1^st tranche) or of 1 099 438 (total tranches) new shares resulting from the Conversion of the Notes and the exercise of the Warrants	€0.84	€1.13	€1.10	€1.35
⁽¹⁾ assuming the exercise of all the dilutive instruments existing to date that could result in the creation of a maximum of 390,786 new shares.

Impact of the issuance on the investment of a shareholder currently holding 1% of the Company’s share capital (based on the number of shares making up the Company’s share capital as at July 27, 2017, i.e., 3,907,846 shares):

	Consolidated net assets per share (%)
	Non-diluted basis		Diluted basis⁽¹⁾
	1^sttranche	Total tranches	1^sttranche	Total tranches
Before issuance	1.00%		0.91%
After issuance of a maximum of 296 982 (1^st tranche) or of 593 964 (total tranches) new shares resulting from the Conversion of the Notes	0.93%	0.87%	0.85%	0.80%
After issuance of a maximum of 564 361 (1^st tranche) or of 1 099 438 (total tranches) new shares resulting from the Conversion of the Notes and the exercise of the Warrants	0.87%	0.78%	0.80%	0.72%
⁽¹⁾ assuming the exercise of all the dilutive instruments existing to date that could result in the creation of a maximum of 390,786 new shares.

The Company specifies that, upon Conversion of the Notes, it shall have the right to remit a cash amount and/or existing shares instead of new shares in order to limit dilution for its shareholders.

(1) The following conditions must be met on the day of the Request and the day the Warrants are exercised:

more than then (10) calendar days have passed since the conversion or the redemption in full of the Notes from the previous Tranches;
no material adverse change shall have occurred;
the closing price of the Company’s share is greater than or equal to €1.60;
no event of default or event that could constitute an event of default that is not resolved shall have occurred;
no impossibility for the holders of Notes to convert the Notes into shares shall have occurred in the previous 90 days;

no suspension of the listing of the Company’s shares (other than an intraday suspension by Euronext) shall have occurred in the previous 90 days;

the Company will have a number of authorized and available shares equal to at least (i) 2 times the number of shares to be issued upon conversion of the Notes to be issued and outstanding (based on the conversion price applicable on the date of the Request) plus (ii) 1 time the number of shares to be issued upon exercise of the Warrants to be issued.

(2) The following conditions must be met if a Tranche is issued on the Investor’s initiative:

the Company will have a number of authorized and available shares equal to at least (i) 2 times the number of shares to be issued upon conversion of the Notes to be issued and outstanding (based on the conversion price applicable on the date of the Request) plus (ii) 1 time the number of shares to be issued upon exercise of the Warrants to be issued;
the closing price of the Spineway share on the trading day prior to the Tranche Warrant Exercise Date is greater than or equal to €3.50. It is specified that if the closing price is between €3.50 (excluded) and €4.50 (included), the Investor may exercise up to 50 Tranche Warrants on its own initiative. If the closing price exceeds €4.50 (excluded), the Investor may exercise up to 100 Tranche Warrants on its own initiative.

(3) Events of default include, in particular, the suspension of the listing of the Company’s shares (other than a suspension of less than five (5) consecutive days at the Company’s request) and the Company’s failure to remit shares or cash owed to the Investor pursuant to the terms of the Issuance Agreement.

This press release is entered into in both English and French languages. In case of discrepancies, French language shall prevail.

SPINEWAY IS ELIGIBLE FOR THE PEA-PME (EQUITY SAVINGS PLAN FOR SMES)

Find out all about Spineway at www.spineway.com

Spineway designs, manufactures and markets innovative implants and surgical instruments for treating severe disorders of the spinal column.
Spineway has an international network of over 50 independent distributors and 90% of its turnover comes from exports.
Spineway, which is eligible for investment through FCPIs (French unit trusts specializing in innovation), received the OSEO Excellence award as well as the Deloitte Fast 50 award in 2011. Rhône Alpes INPI Patent Innovation Award (2013) – Talent INPI award (2015).
ISIN code: FR0011398874 – Euronext Growth

Contacts:

SPINEWAY

Investor Relations
David Siegrist – Finance Director
+33 (0)4 72 77 01 52
finance.dsg@spineway.com

AELIUM

Financial Communication
Jérôme Gacoin / Solène Kennis
+33 (0)1 75 77 54 68
skennis@aelium.fr

Attachments:

http://www.globenewswire.com/NewsRoom/AttachmentNg/d5916663-a95b-438c-b949-b93e46b9e13d

Orchid Design Hires New Director of Engineering

Posted On July 28, 2017 By OrthoSpineNews In Extremities, Spine /

Shelton, CT, July 28, 2017 –(PR.com)– Orchid Design (Orchid), a leader in innovative surgical device design, development and regulatory services for the orthopedic and spine industry, is pleased to announce the appointment of a new Director of Engineering for its Shelton, Connecticut design center. Poised for continued growth, Orchid has added Brandon Beckendorf to oversee the development of orthopedic and spine products for Orchid’s customers.

Brandon comes to Orchid with strong product development experience in extremities, craniomaxillofacial, and sports medicine. Most recently, as the Director of Engineering at OsteoMed, he introduced lean product development, DFx, concurrent engineering, and a disciplined approach to project management to increase overall project performance. In his roles at both OsteoMed and Arthrex, Brandon developed a strong understanding of FDA regulations and product development know-how required for the global development of orthopedic implants and instruments. Brandon earned a ME and BS in Biomedical Engineering from Texas A&M University.

“We are pleased to have Brandon join our team to continue to build on our 14 years of helping our customers launch innovative new products to help surgeon and their patients. His demonstrated leadership and product development expertise will expand our capabilities to drive new products to market for our customers,” Steve Maguire, General Manager, Orchid Design.

About Orchid Design
Orchid Design, a division of Orchid Orthopedic Solutions, is the orthopedics industry leader in innovative surgical device design, development and regulatory submission services. Utilizing their ISO 13485 certified product development process, Orchid Design partners with device companies to help bring their ideas to life and streamline the pathway to commercial launch. The company has two design centers located in Shelton, CT and Memphis, TN, focused on the orthopedic medical device market. For more information about Orchid, visit the company’s website at www.orchid-ortho.com/about-orchid-design.

About Orchid
Orchid is a worldwide leader in design and manufacturing for the orthopedic and medical device markets. Orchid is able to do this by compressing time to market, providing new technologies and being the best total supply-chain value. Orchid provides expertise in design and development, quality and regulatory support, implant manufacture, advanced machining, plastics technology, instrument manufacturing, implant coatings, surface treatments, and packaging services. With 14 world-class facilities located around the globe, Orchid continues to provide others an opportunity to live a better life through the products, services and the way the company conducts business. For more information about Orchid, visit the company’s website at www.orchid-ortho.com.

Contact Information

Orchid
Abbie Woolston
517-694-2300
Contact
www.orchid-ortho.com

Exactech Q2 Revenue $67.3 Million On Continuing Strong Extremities Revenue

Posted On July 28, 2017 By OrthoSpineNews In Financial /

July 27, 2017

GAINESVILLE, Fla.–(BUSINESS WIRE)–Exactech, Inc. (Nasdaq:EXAC), a developer and producer of bone and joint restoration products and biologic solutions for extremities, knee and hip, announced today that revenue for the second quarter of 2017 increased 2% to $67.3 million from $66.1 million in the second quarter of 2016, and 3% on a constant currency basis. Domestic revenue increased 2% to $45.7 million, and international revenue increased 1% to $21.6 million in the second quarter of 2017. Diluted earnings per share for the second quarter was $0.33 based on net income of $4.8 million, compared to second quarter 2016 net income of $4.4 million and diluted earnings per share of $0.31.

Second Quarter Segment Performance

Extremities revenue increased 19% to $29.5 million from $24.8 million, a 19% constant currency increase

Knee revenue was flat at $19.6 million, a 1% constant currency increase
Hip revenue decreased 8% to $11.5 million from $12.5 million, a 7% constant currency decrease
Other revenue decreased 27% to $6.7 million from $9.2 million, a 26% constant currency decrease. The Other segment includes an aggregation of the former Biologics and Spine segment

Six Months Highlights and Segment Performance

For the first six months of 2017, revenue was $136.8 million, an increase of 4% over $131.4 million for the comparable period last year. On a constant currency basis, revenue for the first half of 2017 was up 5%. Net income for the first six months of 2017 increased 7% to $9.4 million, or $0.65 per diluted share compared to $8.8 million, or $0.62 per diluted share, for the first six months of 2016. First six month product revenue was as follows:

Extremities revenue increased 20% to $59.4 million, a 20% constant currency increase
Knee revenue increased 1% to $39.7 million, a 1% constant currency increase
Hip revenue decreased 1% to $23.6 million, flat on a constant currency basis
Other revenue decreased 24% to $14.1 million, a 23% constant currency decrease

Management Comment

Exactech CEO and President David Petty said, “For the first half of 2017, we reported a 4% increase in our revenue; however, excluding the impact of the divested spine products from the prior year we reported 7% growth in revenue during the first half of the year. Our hip revenue was negatively impacted by distribution transitions underway in certain markets outside the U.S. We continue to be pleased with the performance of our Extremities segment, which benefited modestly in the quarter from the pilot launch of the Vantage^® ankle and also the Equinoxe^® Preserve humeral stem. In terms of our product pipeline, additional pilot launches of the ExactechGPS^® shoulder application, Alteon^® H.A. hip stem and the Truliant^® knee system are also going well.

“During the third and fourth quarters we will be building inventory for these systems and hope to move into a limited launch late this year. Our channel development strategy remains important and will be enhanced as we more fully launch the Truliant knee system,” Petty said.

Chief Financial Officer Jody Phillips said, “Gross margins decreased to 68.7% from 69.3% for the second quarter a year ago, as average selling price decreases offset the increases in higher margin extremity sales. Total operating expenses for the quarter remained relatively flat at $39.3 million due to the divestiture of the spine segment being offset by an increase in product launch and development expenses. As a result, we produced a net income increase of 10% to $4.8 million and $0.33 diluted EPS for the second quarter which was in the range of our expectations.”

Looking forward, Exactech narrowed 2017 revenue guidance to $267-$271 million and diluted EPS target to $1.25-$1.29, including the impact of the first quarter $0.02 diluted earnings per share costs related to the spine business transition. On an adjusted basis, the diluted EPS target is $1.27-$1.31. For the third quarter of 2017, the company anticipates revenues of $60.5-$62.5 million and diluted EPS of $0.23-$0.25. The foregoing statements regarding targets for the quarter and full year are forward-looking and actual results may differ materially. These are the company’s targets, not predictions of actual performance.

The financial statements are below.

Conference Call

The company will hold a conference call with CEO David Petty and key members of the management team, Friday, July 28^th at 10:00 a.m. Eastern Time. The call will cover Exactech’s second quarter 2017 results. Mr. Petty will open the conference call and a question-and-answer session will follow.

To participate in the call, dial 888-417-2254 any time after 9:50 a.m. Eastern Time on July 28. International and local callers should dial 719-325-4790. A live webcast of the call will be available at http://www.hawkassociates.com/profile/exac.cfm or

http://public.viavid.com/index.php?id=125497.

About Exactech

Based in Gainesville, Fla., Exactech develops and markets orthopaedic implant devices, related surgical instruments and biologic materials and services to hospitals and physicians. The company manufactures many of its orthopaedic devices at its Gainesville facility. Exactech’s orthopaedic products are used in the restoration of bones and joints that have deteriorated as a result of injury or diseases such as arthritis. Exactech markets its products in the United States, in addition to more than 30 markets in Europe, Latin America, Asia and the Pacific. Additional information about Exactech, Inc. can be found at http://www.exac.com. Copies of Exactech’s press releases, SEC filings, current price quotes and other valuable information for investors may be found at http://www.exac.com and http://www.hawkassociates.com.

An investment profile on Exactech may be found at http://www.hawkassociates.com/profile/exac.cfm. To receive future releases in e-mail alerts, sign up at http://www.hawkassociates.com/about/alert.

This release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which represent the company’s expectations or beliefs concerning future events of the company’s financial performance. These forward-looking statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include the effect of competitive pricing, the company’s dependence on the ability of third party manufacturers to produce components on a basis which is cost-effective to the company, market acceptance of the company’s products and the effects of government regulation. Results actually achieved may differ materially from expected results included in these statements.


EXACTECH, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)

		(unaudited)			(audited)
		June 30,			December 31,
		2017			2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	8,917		$	13,052
Trade receivables, net of allowances of $1,707 and $1,473		57,733			53,051
Prepaid expenses and other assets, net		3,606			3,075
Income taxes receivable		1,848			2,140
Inventories, current		67,358			65,264
Assets held for sale		2,695			6,477
Total current assets		142,157			143,059

PROPERTY AND EQUIPMENT:
Land		4,530			4,474
Machinery and equipment		43,033			42,034
Surgical instruments		144,018			132,134
Furniture and fixtures		4,713			4,700
Facilities		21,690			21,726
Projects in process		6,818			2,473
Total property and equipment		224,802			207,541
Accumulated depreciation		(108,160	)		(100,234	)
Net property and equipment		116,642			107,307

OTHER ASSETS:
Deferred financing, deposits and other		4,326			968
Equity investment		1,952			2,047
Deferred tax asset		—			887
Non-current inventory		11,823			15,723
Product licenses and designs, net		8,933			9,102
Patents and trademarks, net		717			821
Customer relationships, net		467			476
Goodwill		14,758			13,819
Total other assets		42,976			43,843
TOTAL ASSETS	$	301,775		$	294,209

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	16,602		$	17,566
Income taxes payable		1,772			780
Accrued expenses		13,017			11,832
Liabilities held for sale		325			—
Other current liabilities		2,884			2,927
Total current liabilities		34,600			33,105

LONG-TERM LIABILITIES:
Deferred tax liabilities		3,243			1,773
Long-term debt, net of current portion		14,000			20,000
Other long-term liabilities		3,152			5,089
Total long-term liabilities		20,395			26,862
Total liabilities		54,995			59,967

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY:
Common stock		145			144
Additional paid-in capital		90,228			87,319
Treasury Stock		(3,042	)		(3,042	)
Accumulated other comprehensive loss, net of tax		(8,398	)		(8,611	)
Retained earnings		167,847			158,432
Total shareholders’ equity		246,780			234,242

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	301,775		$	294,209


EXACTECH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(Unaudited)

		Three Month Periods						Six Month Periods
		Ended June 30,						Ended June 30,
		2017			2016			2017			2016
NET SALES	$	67,327		$	66,124		$	136,809		$	131,422

COST OF GOODS SOLD		21,054			20,268			41,695			40,636
Gross profit		46,273			45,856			95,114			90,786

OPERATING EXPENSES:
Sales and marketing		23,569			23,835			48,622			47,154
General and administrative		5,621			5,640			12,157			11,554
Research and development		5,380			5,329			11,604			10,399
Depreciation and amortization		4,732			4,410			9,391			8,734
Total operating expenses		39,302			39,214			81,774			77,841

INCOME FROM OPERATIONS		6,971			6,642			13,340			12,945

OTHER INCOME (EXPENSE):
Interest income		52			2			55			6
Other income (loss)		185			32			328			72
Interest expense		(238	)		(268	)		(464	)		(530	)
Foreign currency exchange gain		168			98			730			592
Total other income (expenses)		167			(136	)		649			140

INCOME BEFORE INCOME TAXES		7,138			6,506			13,989			13,085

PROVISION FOR INCOME TAXES		2,255			2,120			4,479			4,297

INCOME BEFORE EQUITY IN LOSS OF INVESTEE		4,883			4,386			9,510			8,788

EQUITY IN LOSS OF INVESTEE, NET OF TAX		(52	)		—			(95	)		—

NET INCOME	$	4,831		$	4,386		$	9,415		$	8,788


BASIC EARNINGS PER SHARE	$	0.34		$	0.31		$	0.66		$	0.62

DILUTED EARNINGS PER SHARE	$	0.33		$	0.31		$	0.65		$	0.62


SHARES – BASIC		14,321			14,112			14,297			14,084

SHARES – DILUTED		14,574			14,298			14,513			14,243

Non-GAAP Disclosure and Reconciliation

We present certain non-GAAP results as a supplement to our financial results based on GAAP, as we believe it is useful to exclude certain items in order to focus on what we regard to be a more reliable indicator of the underlying operating performance of our business. Because we operate internationally, we present the percentage change in sales by reporting segment on a constant currency basis, which is a non-GAAP financial measure. We calculate this change on a constant currency basis by translating current period sales at the comparable average historical exchange rates for the same period in the prior year. We believe that presenting the percentage change in sales on a constant currency basis assists in the understanding of actual sales fluctuations by excluding the impact of foreign currency fluctuations.

Additionally, we report on a non-GAAP basis adjusted sales, gross margin, operating expenses, income, and diluted earnings per share excluding charges related to the spine assets we sold January 2017. We believe the exclusion of spine sales and costs provides the reader with more comparable financials to better analyze the reported periods. The following items have been adjusted:

Sales, cost of goods sold, and operating expenses from our spine products
Transition charges related to the sale of our spine assets
Personnel and severance costs related to the transition


		Six Months June 30, 2017										Six Months June 30, 2016							Change %
	Reported				US Spine			Adjusted				Reported	US Spine			Adjusted		Reported		Adjusted
Domestic sales	$		93,355		$	282		$	93,073		$	89,185	$	3,758			85,427
International sales			43,454			—			43,454			42,237		—			42,237
Total sales			136,809			282			136,527			131,422		3,758			127,664		4.1%	6.9%

Gross profit			95,114			187			94,927			90,786		1,700			89,086		4.8	6.6

Operating expense			81,774			715			81,059			77,841		1,886			75,955		5.1	6.7

Other income			649			—			649			140		—			140		363.6	363.6
Income before income tax and equity in loss of investee			13,989			(528	)		14,517			13,085		(186	)		13,271		6.9	9.4

Income tax			4,479			(140	)		4,619			4,297		(67	)		4,364		4.2	5.9
Equity in loss of investee			(95	)		—			(95	)		—		—			—
Net income (loss)	$		9,415		$	(388	)	$	9,803		$	8,788	$	(119	)	$	8,907		7.1	10.1

Diluted EPS	$		0.65		$	(0.03	)	$	0.68		$	0.62	$	(0.01	)	$	0.63

We also provide adjusted forward looking guidance on diluted earnings per share for the full year for 2017. We believe this adjusted guidance will assist in comparative measures. The following reconciles the guidance ranges to expected guidance on a GAAP basis:

Twelve Months Ended

December 31, 2017

Expected diluted EPS range on GAAP basis

$1.25 – $1.29

Adjustment: Spine asset divestiture

0.02

Adjusted total diluted EPS range

$1.27-$1.31

Contacts

Exactech, Inc.
Investor contacts
Jody Phillips, 352-377-1140
Executive Vice President of Finance &
Chief Financial Officer
or
Hawk Associates
Julie Marshall or Frank Hawkins, 305-451-1888
EXAC@hawkassociates.com
or
Exactech, Inc.
Media contact
Priscilla Bennett, 352-377-1140
Vice President, Corporate & Marketing Communication

NuVasive Reports Second Quarter 2017 Financial Results

Posted On July 27, 2017 By OrthoSpineNews In Financial /

SAN DIEGO, July 27, 2017 /PRNewswire/ — NuVasive, Inc. (Nasdaq: NUVA), a leading medical device company focused on transforming spine surgery with minimally disruptive, procedurally-integrated solutions, announced today financial results for the quarter ended June 30, 2017.

Second Quarter 2017 Highlights

Revenue increased 10.3% to $260.6 million, or 10.7% on a constant currency basis;
GAAP operating profit margin of 11.4%; Non-GAAP operating profit margin up 40 basis points from prior year to 16.3%;
GAAP diluted earnings per share of $0.22; Non-GAAP diluted earnings per share up 15.0% from prior year to $0.46; and
Company reiterates revenue, non-GAAP operating margin and non-GAAP diluted earnings per share guidance for 2017.

“NuVasive delivered better than expected operating profitability and earnings per share results in the second quarter 2017, along with continued strength across our International business, growing at more than 20% for the third quarter in a row,” said Gregory T. Lucier, chairman and chief executive officer of NuVasive. “In addition, several of our industry-disrupting technologies completed alpha and beta testing this quarter and will commercially launch over the next few months, giving surgeons and patients access to some of the most innovative technologies to address spine and trauma conditions, as well as radiation reduction in the operating room.”

A full reconciliation of GAAP to non-GAAP measures can be found in the tables of this news release.

Second Quarter 2017 Results

NuVasive reported second quarter 2017 total revenue of $260.6 million, a 10.3% increase compared to $236.2 million for the second quarter 2016. On a constant currency basis, second quarter 2017 total revenue increased 10.7% compared to the same period last year.

For the second quarter 2017, both GAAP and non-GAAP gross profit was $194.2 million, while both GAAP and non-GAAP gross margin was 74.5%. These results compared to GAAP and non-GAAP gross profit of $176.5 million and $183.8 million, respectively, and GAAP and non-GAAP gross margin of 74.7% and 77.8% respectively, for the second quarter 2016. Total GAAP and non-GAAP operating expenses were $164.4 million and $151.7 million, respectively, for the second quarter 2017. These results compared to GAAP and non-GAAP operating expenses of $116.4 million and $146.4 million, respectively, for the second quarter 2016.

NuVasive reported a GAAP net income of $12.7 million, or $0.22 per share, for the second quarter 2017 compared to $30.2 million, or $0.57 per share, for the second quarter 2016.

On a non-GAAP basis, the Company reported net income of $24.1 million, or $0.46 per share for the second quarter 2017 compared to $20.6 million, or $0.40 per share, for the second quarter 2016.

Cash, cash equivalents and short and long-term marketable securities were approximately $130.9 million at June 30, 2017.

Annual Guidance for 2017

The Company reiterated full year 2017 financial guidance in line with prior expectations, with the exception of the impact of updated foreign exchange rates.


		2017 Guidance ¹
	(in Million’s; except %’s and EPS)	GAAP	Non-GAAP
	Revenue	$ 1,065	$ 1,065
	% Growth – Reported	10.7%	10.7%
	% Growth – Constant Currency ²		11.1%
	Operating margin	12.4%	17.1%
	Earnings per share	$ 1.13	$ 2.00
	EBITDA	23.6%	26.7%
	Tax Rate	~33%	~35%

¹	Current guidance reflects guidance provided July 27, 2017.
²	Constant currency is a measure that adjusts US GAAP revenue for the impact of currency over the same period in the prior year.

Revenue of $1.065 billion, which now includes approximately $4 million in year-over-year currency headwinds, and reflects 10.7% growth on a reported basis and 11.1% growth on a constant currency basis compared to revenue of $962.1 million for 2016;
Non-GAAP diluted earnings per share of $2.00, an increase of 20% compared to non-GAAP diluted earnings per share of $1.66 for 2016;
Non-GAAP operating profit margin of 17.1%, an increase of 100 basis points compared to 16.1% for 2016; and
Adjusted EBITDA margin of 26.7%, an increase of 150 basis points compared to 25.2% for 2016.

Supplementary Financial Information

For additional financial detail, please visit the Investor Relations section at www.nuvasive.com to access Supplementary Financial Information.


Reconciliation of Full Year EPS Guidance
			2017 Guidance
		2016 Actuals	Prior ^{1, 2}	Current ^{1, 3}
	GAAP net income per share	$ 0.69	$ 1.13	$ 1.13
	Impact of change to diluted share count	0.02	0.07	0.09
	GAAP net income per share, adjusted to diluted Non-GAAP share count	$ 0.71	$ 1.20	$ 1.22
	Litigation liability gain	(0.83)	–	–
	Business transition costs ⁴	0.35	0.04	0.05
	Non-cash interest expense on convertible notes	0.38	0.33	0.33
	Non-cash purchase accounting adjustments on acquisitions ⁵	0.28	–	–
	Loss on repurchase of convertible notes	0.37	–	–
	Amortization of intangible assets ⁶	0.78	0.89	0.88
	Tax effect of adjustments ⁷	(0.38)	(0.46)	(0.48)
	Non-GAAP earnings per share	$ 1.66	$ 2.00	$ 2.00

	GAAP Weighted shares outstanding – basic	50,077	50,967	50,864
	GAAP Weighted shares outstanding – diluted	54,102	56,269	56,617
	Non-GAAP Weighted shares outstanding – diluted	51,981	53,069	52,738

¹	Prior guidance provided April 25, 2017. Current guidance reflects guidance provided July 27, 2017.
²	Effective tax expense rate of ~34% applied to GAAP earnings and ~35% applied to Non-GAAP earnings.
³	Effective tax expense rate of ~33% applied to GAAP earnings and ~35% applied to Non-GAAP earnings.
⁴	Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.
⁵	Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.
⁶	Excludes the amortization associated with non-controlling interest.
⁷	The impact on results from taxes include tax effecting the adjustments above at the statutory rate as well as taking into account discrete items and including those discrete items in the annual effective tax rate calculation. The Company also includes those adjustments that would have benefited the tax rate in lieu of the above adjustments as part of the Company’s tax filings. The impact of the changes to the tax rate results in an annual estimated rate of ~35% on a non-GAAP basis.


Reconciliation of Non-GAAP Operating Margin %

			2017 Guidance
	(in thousands, except %)	2016 Actuals	Prior ¹	Current ¹
	Non-GAAP Gross Margin %[A]	76.6%	76.1%	75.6%
	Non-cash purchase accounting adjustments on acquisitions ²	(1.5%)	0.0%	0.0%
	GAAP Gross Margin [B]	75.0%	76.1%	75.6%

	GAAP & Non-GAAP Sales, Marketing & Administrative Expense [C]	55.5%	54.0%	53.5%

	Non-GAAP Research & Development Expense [D]	5.0%	5.0%	5.0%
	In-process research & development	0.0%	0.0%	0.0%
	GAAP Research & Development Expense [E]	5.0%	5.0%	5.0%

	Litigation liability [F]	(4.5%)	0.0%	0.0%
	Amortization of intangible assets [G] ³	4.4%	4.6%	4.5%
	Business transition costs [H] ⁴	1.9%	0.2%	0.2%

	Non-GAAP Operating Margin % [A – C – D]	16.1%	17.1%	17.1%

	GAAP Operating Margin % [B – C – E – F – G – H]	12.8%	12.3%	12.4%

¹	Prior guidance provided April 25, 2017. Current guidance reflects guidance provided July 27, 2017.
²	Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.
³	Excludes the amortization associated with non-controlling interest.
⁴	Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.


Reconciliation of EBITDA %


			2017 Guidance
	(in thousands, except %)	2016 Actuals	Prior ¹	Current ¹
	Net Income / (Loss)	3.9%	6.0%	6.0%
	Interest (income) / expense, net ²	6.1%	3.5%	3.6%
	Provision for income taxes	3.0%	3.0%	2.9%
	Depreciation and amortization ³	10.5%	11.1%	11.0%
	EBITDA	23.5%	23.6%	23.6%
	Non-cash stock based compensation	2.8%	3.0%	3.0%
	Business transition costs ⁴	1.9%	0.2%	0.2%
	Non-cash purchase accounting adjustments on acquisitions ⁵	1.5%	0.0%	0.0%
	In-process research & development	0.0%	0.0%	0.0%
	Litigation liability gain	(4.5%)	0.0%	0.0%
	Adjusted EBITDA	25.2%	26.7%	26.7%

¹	Prior guidance provided April 25, 2017. Current guidance reflects guidance provided July 27, 2017.
²	Interest (income) / expense, net for the quarter and year ended December 31, 2016 includes loss on extinguishment of debt for $1.6 million and $19.1 million, respectively.
³	Excludes the amortization associated with non-controlling interest.
⁴	Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.
⁵	Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

Reconciliation of Non-GAAP Information

Management uses certain non-GAAP financial measures such as non-GAAP earnings per share, non-GAAP net income, non-GAAP operating expenses and non-GAAP operating profit margin, which exclude amortization of intangible assets, purchase accounting related charges, leasehold related charges, integration related expenses associated with acquired businesses, one-time restructuring and acquisition related items, CEO transition related costs, certain litigation charges, non-cash interest expense and/or losses on convertible notes, and the impact from taxes related to these items, including those taxes that would have occurred in lieu of these items. Management also uses certain non-GAAP measures which are intended to exclude the impact of foreign exchange currency fluctuations. The measure constant currency is the use of an exchange rate that eliminates fluctuations when calculating financial performance numbers.

The Company also uses measures such as free cash flow, which represents cash flow from operations less cash used in the acquisition and disposition of capital. Additionally, the Company uses an adjusted EBITDA measure which represents earnings before interest, taxes, depreciation and amortization and excludes the impact of stock-based compensation, purchase accounting related changes, leasehold related charges, integration related expenses associated with acquired businesses, CEO transition related costs, certain litigation liabilities, acquisition related items and other significant one-time items. Management calculates the non-GAAP financial measures provided in this earnings release excluding these costs and uses these non-GAAP financial measures to enable it to further and more consistently analyze the period-to-period financial performance of its core business operations. Management believes that providing investors with these non-GAAP measures gives them additional information to enable them to assess, in the same way management assesses, the Company’s current and future continuing operations. These non-GAAP measures are not in accordance with, or an alternative for, GAAP, and may be different from non-GAAP measures used by other companies. Set forth below are reconciliations of the non-GAAP financial measures to the comparable GAAP financial measure.

	Reconciliation of Second Quarter 2017 Results
	GAAP Net Income per Share to Non-GAAP Earnings per Share

	(in thousands, except per share data)	Adjustments	Diluted Earnings Per Share
	GAAP net income	$ 12,661	$ 0.22

	Business transition costs ¹	1,369
	Non-cash interest expense on convertible notes	4,665
	Amortization of intangible assets ²	11,028
	Tax effect of adjustments ³	(5,661)
	Adjustments to GAAP net income	11,401
	Non-GAAP earnings	$ 24,062	$ 0.46


	GAAP weighted shares outstanding – diluted		58,330
	Non-GAAP weighted shares outstanding – diluted ⁴		52,743

¹	Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.
²	Excludes the amortization associated with non-controlling interest.
³	The impact on results from taxes include tax effecting the adjustments above at the statutory rate as well as taking into account discrete items and including those discrete items in the annual effective tax rate calculation. The Company also includes those adjustments that would have benefited the tax rate in lieu of the above adjustments as part of the Company’s tax filings. The impact of the changes to the tax rate results in an annual estimated rate of ~35% on a non-GAAP basis.
⁴	Excludes the impact of dilutive convertible notes and warrants for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.


	Reconciliation of Year To Date 2017 Results
	GAAP Net Income per Share to Non-GAAP Earnings per Share

	(in thousands, except per share data)	Adjustments	Diluted Earnings Per Share
	GAAP net income	$ 25,429	$ 0.44

	Business transition costs ¹	1,424
	Non-cash interest expense on convertible notes	9,264
	Amortization of intangible assets ²	22,766
	Tax effect of adjustments ³	(14,784)
	Adjustments to GAAP net income	18,670
	Non-GAAP earnings	$ 44,099	$ 0.84


	GAAP weighted shares outstanding – diluted		58,059
	Non-GAAP weighted shares outstanding – diluted ⁴		52,713

¹	Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.
²	Excludes the amortization associated with non-controlling interest.
³	The impact on results from taxes include tax effecting the adjustments above at the statutory rate as well as taking into account discrete items and including those discrete items in the annual effective tax rate calculation. The Company also includes those adjustments that would have benefited the tax rate in lieu of the above adjustments as part of the Company’s tax filings. The impact of the changes to the tax rate results in an annual estimated rate of ~35% on a non-GAAP basis.
⁴	Excludes the impact of dilutive convertible notes and warrants for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.




	Reconciliation of Second Quarter and Six Months 2017 Results
	GAAP net income to Adjusted EBITDA

		Three months ended	Six months ended
	(in thousands, except per share data)	June 30, 2017	June 30, 2017
	GAAP net income	$ 12,661	$ 25,429
	Interest expense/(income), net	9,944	19,606
	Provision for income taxes	7,079	8,569
	Depreciation and amortization ¹	28,856	58,014
	EBITDA	$ 58,540	$ 111,618
	Business transition costs²	1,369	1,424
	Non-cash stock based compensation	8,394	15,411
	Adjusted EBITDA	$ 68,303	$ 128,453
	As a percentage of revenue	26.2%	25.2%

¹	Excludes the amortization associated with non-controlling interest.
²	Costs related to acquisition, integration and business transition activities which includes severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.

Investor Conference Call

NuVasive will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss the results of its financial performance for the second quarter 2017. The dial-in numbers are 1-877-407-9039 for domestic callers and 1-201-689-8470 for international callers. A live webcast of the conference call will be available online from the Investor Relations page of the Company’s website at www.nuvasive.com. After the live webcast, the call will remain available on NuVasive’s website through August 28, 2017. In addition, a telephone replay of the call will be available until August 3, 2017. The replay dial-in numbers are 1-844-512-2921 for domestic callers and 1-412-317-6617 for international callers. Please use pin number: 13665648.

About NuVasive

NuVasive, Inc. (NASDAQ: NUVA) is transforming spine surgery and beyond with minimally invasive, procedurally-integrated solutions designed to deliver reproducible and clinically-proven surgical outcomes. The Company’s portfolio includes access instruments, implantable hardware, biologics, software systems for surgical planning, navigation and imaging solutions, magnetically adjustable implant systems for spine and orthopedics, and intraoperative monitoring service offerings. With $962 million in revenues (2016), NuVasive has an approximate 2,300 person workforce in more than 40 countries serving surgeons, hospitals and patients. For more information, please visit www.nuvasive.com.

Forward-Looking Statements

NuVasive cautions you that statements included in this news release or made on the investor conference call referenced herein that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause NuVasive’s results to differ materially from historical results or those expressed or implied by such forward-looking statements. In addition, this news release contains selected financial results from the second quarter 2017, as well as projections for 2017 financial guidance and longer-term financial performance goals. The numbers for the second quarter 2017 are prior to the completion of review procedures by the Company’s external auditors and are subject to adjustment. In addition, the Company’s projections for 2017 financial guidance and longer-term financial performance goals represent current estimates, including initial estimates of the potential benefits, synergies and cost savings associated with acquisitions, which are subject to the risk of being inaccurate because of the preliminary nature of the forecasts, the risk of further adjustment, or unanticipated difficulty in selling products or generating expected profitability. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to: the risk that NuVasive’s revenue or earnings projections may turn out to be inaccurate because of the preliminary nature of the forecasts; the risk of further adjustment to financial results or future financial expectations; unanticipated difficulty in selling products, generating revenue or producing expected profitability; the risk that acquisitions will not be integrated successfully or that the benefits and synergies from the acquisition may not be fully realized or may take longer to realize than expected; and those other risks and uncertainties more fully described in the Company’s news releases and periodic filings with the Securities and Exchange Commission. NuVasive’s public filings with the Securities and Exchange Commission are available at www.sec.gov. The forward-looking statements contained herein are based on the current expectations and assumptions of NuVasive and not on historical facts. NuVasive assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.

NuVasive, Inc.
Consolidated Statements of Operations
*(in thousands, except per share data)*

	Three Months Ended June 30,		Six Months Ended June 30,
(unaudited)	2017	2016	2017	2016
Revenue	$ 260,573	$ 236,210	$ 510,437	$ 451,314
Cost of goods sold (excluding below amortization of intangible assets)	66,421	59,745	128,034	113,971
Gross profit	194,152	176,465	382,403	337,343
Operating expenses:
Sales, marketing and administrative	139,109	134,487	279,611	259,325
Research and development	12,572	11,871	24,986	22,500
Amortization of intangible assets	11,349	10,603	23,410	18,474
Litigation liability (gain)	—	(43,310)	—	(43,310)
Business transition costs	1,369	2,756	1,424	8,063
Total operating expenses	164,399	116,407	329,431	265,052
Interest and other expense, net:
Interest income	139	406	276	734
Interest expense	(10,083)	(10,537)	(19,882)	(19,009)
Loss on repurchases of convertible notes	—	—	—	(17,444)
Other expense, net	(501)	(246)	(243)	(196)
Total interest and other expense, net	(10,445)	(10,377)	(19,849)	(35,915)
Income before income taxes	19,308	49,681	33,123	36,376
Income tax expense	(7,079)	(19,891)	(8,569)	(10,411)
Consolidated net income	$ 12,229	$ 29,790	$ 24,554	$ 25,965
Add back net loss attributable to non-controlling interest	$ (432)	$ (423)	$ (875)	$ (880)
Net income attributable to NuVasive, Inc.	$ 12,661	$ 30,213	$ 25,429	$ 26,845

Net income per share attributable to NuVasive, Inc.:
Basic	$ 0.25	$ 0.60	$ 0.50	$ 0.54
Diluted	$ 0.22	$ 0.57	$ 0.44	$ 0.51
Weighted average shares outstanding:
Basic	51,082	50,027	50,825	49,822
Diluted	58,330	53,159	58,059	52,354

NuVasive, Inc.
Consolidated Balance Sheets
*(in thousands, except par values and share amounts)*

	June 30, 2017	December 31, 2016
ASSETS	(Unaudited)
Current assets:
Cash and cash equivalents	$ 130,932	$ 153,643
Restricted cash and investments	2,402	—
Accounts receivable, net of allowances of $9,399 and $8,912, respectively	190,169	171,595
Inventory, net	236,839	208,249
Prepaid income taxes	19,576	31,926
Prepaid expenses and other current assets	12,310	10,030
Total current assets	592,228	575,443
Property and equipment, net	214,601	181,524
Intangible assets, net	268,466	291,143
Goodwill	486,439	485,685
Deferred tax assets	5,961	5,810
Restricted cash and investments	4,945	7,405
Other assets	33,744	23,794
Total assets	$ 1,606,384	$ 1,570,804
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$ 82,933	$ 77,585
Contingent consideration liabilities	19,271	49,742
Accrued payroll and related expenses	49,323	51,000
Income tax liabilities	11,995	2,469
Short-term borrowings	20,000	—
Senior convertible notes	63,302	61,701
Total current liabilities	246,824	242,497
Long-term senior convertible notes	573,532	564,412
Deferred and income tax liabilities, non-current	16,110	18,607
Other long-term liabilities	46,312	44,764
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized, none outstanding	—	—
Common stock, $0.001 par value; 120,000,000 shares authorized at June 30, 2017 and December 31, 2016, 58,081,702 and 55,184,660 issued and outstanding at June 30, 2017 and December 31, 2016, respectively	58	55
Additional paid-in capital	1,033,546	1,010,238
Accumulated other comprehensive loss	(8,131)	(10,631)
Accumulated deficit	(53,077)	(66,859)
Treasury stock at cost; 4,974,534 shares and 4,758,828 shares at June 30, 2017 and December 31, 2016, respectively	(253,503)	(237,867)
Total NuVasive, Inc. stockholders’ equity	718,893	694,936
Non-controlling interest	4,713	5,588
Total equity	723,606	700,524
Total liabilities and equity	$ 1,606,384	$ 1,570,804

NuVasive, Inc.
Consolidated Statements of Cash Flows
*(in thousands)*

	Six Months Ended June 30,
(unaudited)	2017	2016
Operating activities:
Consolidated net income	$ 24,554	$ 25,965
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	58,688	46,329
Loss on repurchases of convertible notes	—	17,444
Amortization of non-cash interest	10,882	10,943
Stock-based compensation	15,411	12,357
Reserves on current assets	(95)	6,751
Other non-cash adjustments	7,380	8,387
Deferred income taxes	(2,570)	14,691
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(17,586)	(8,615)
Inventory	(29,012)	(12,019)
Prepaid expenses and other current assets	(2,485)	728
Contingent consideration liabilities	(11,200)	—
Accounts payable and accrued liabilities	4,987	14,384
Litigation liability	—	(43,310)
Accrued payroll and related expenses	(2,004)	(4,356)
Income taxes	10,172	10,534
Net cash provided by operating activities	67,122	100,213
Investing activities:
Acquisition of Ellipse Technologies, net of cash acquired	—	(380,080)
Other acquisitions and investments	(14,417)	(8,079)
Purchases of intangible assets	(1,695)	(5,918)
Purchases of property and equipment	(68,690)	(52,566)
Purchases of marketable securities	—	(128,956)
Proceeds from sales of marketable securities	—	339,320
Net cash used in investing activities	(84,802)	(236,279)
Financing activities:
Proceeds from the issuance of common stock	5,369	6,150
Purchase of treasury stock	(10,844)	(22,549)
Payment of contingent consideration	(18,800)	—
Proceeds from issuance of convertible debt, net of issuance costs	—	634,140
Proceeds from sale of warrants	—	44,850
Purchase of convertible note hedge	—	(111,150)
Repurchases of convertible notes	—	(343,835)
Proceeds from revolving line of credit	20,000	50,000
Repayments on revolving line of credit	—	(50,000)
Other financing activities	(2,205)	(1,545)
Net cash (used in)provided by financing activities	(6,480)	206,061
Effect of exchange rate changes on cash	1,449	748
(Decrease) increase in cash and cash equivalents	(22,711)	70,743
Cash and cash equivalents at beginning of period	153,643	192,339
Cash and cash equivalents at end of period	$ 130,932	$ 263,082

SOURCE NuVasive, Inc.

NuVasive Announces New Organizational Structure To Drive Growth And Profitability Goals

Posted On July 27, 2017 By OrthoSpineNews In Spine, Top Stories /

SAN DIEGO, July 27, 2017 /PRNewswire/ — NuVasive, Inc. (NASDAQ: NUVA), a leading medical device company focused on transforming spine surgery with minimally disruptive, procedurally-integrated solutions, today announced a new organizational structure to drive the Company’s growth and profitability goals, supporting its strategy to help deliver safer, more predictable spine surgery.

“As the innovation pioneer and largest, pure-play spine technology company, NuVasive continues to deliver significant value to its customers and shareholders,” said Gregory T. Lucier, NuVasive’s chairman and chief executive officer. “With incredible opportunities ahead, we are taking steps to refine the company’s operating structure to tightly align strategy, product development and marketing and integrate our global commercial channels, while scaling global operations to best address the growing needs of our partners and patients.”

Today the Company announced that Jason Hannon, president and chief operating officer, is stepping down from his position to pursue other interests. He will remain with NuVasive through the end of the year in an advisory capacity. During Mr. Hannon’s successful 12-year career at NuVasive, he has made countless important contributions to the Company. In connection with Mr. Hannon’s departure, the Company has accelerated its timeline to implement organizational changes that will position NuVasive to execute against the Company’s strategic goals. Effective August 1, the Company will:

Align strategy, technology and marketing to build a world-class product development and commercialization capability;
Integrate its U.S. Commercial and International sales functions into a scalable global commercial organization; and
Transform global operations to drive operational efficiencies through the combination of manufacturing, supply chain, information technology (IT), regulatory affairs and quality assurance (RA/QA).

Matt Link, president, U.S. Commercial is being promoted to a key leadership role as executive vice president, Strategy, Technology and Corporate Development, a newly created position to further drive the Company’s innovation agenda. Mr. Link is a long-tenured NuVasive executive with more than 15 years of industry experience, including extensive knowledge of the U.S. spine marketplace, as well as surgeon and hospital dynamics. In this role, he will lead product and systems development, global marketing, surgeon education, clinical research and corporate development. Mr. Link’s experience in surgeon requirements and commercial operations will be key as NuVasive continues to bring leading innovation to market.

Skip Kiil, executive vice president, International is named executive vice president, Global Commercial. Mr. Kiil joined NuVasive in June and has more than 15 years of experience as a global medical technologies and life sciences business leader. He was previously with Alcon, a division of Novartis Corporation, where he most recently served as surgical head, Europe, Middle East, Africa and Russia. He is a proven leader in managing and growing complex, global commercial enterprises internationally and domestically within the healthcare and spine technology industries. His strategic and operational expertise in market entry and development are critical as NuVasive seeks to double its International market share in the coming years and further expand the Company’s position in the U.S. marketplace.

Steve Rozow, vice president, Global Operations, assumes an elevated role as executive vice president, Global Process Transformation, including IT and RA/QA, in addition to his current Global Operations responsibilities. Since joining NuVasive in 2015, Mr. Rozow has led improvements in supply chain and fulfillment, as well as the successful development of the Company’s new manufacturing facility in West Carrollton, Ohio. Mr. Rozow is an experienced medical device leader including more than 20 years with Zimmer, where he served in various manufacturing and operational leadership roles. His position is critical as the Company focuses on scaling global operations and driving operational improvement initiatives.

Unrelated to the organizational updates announced today, the Company has accepted the resignation of its chief financial officer, Quentin Blackford, effective August 25, 2017. Mr. Blackford is pursuing another opportunity outside the spine industry and has agreed to remain with the company during this transition period. Mr. Blackford’s resignation is not the result of any dispute or disagreement with NuVasive, including any matters relating to the Company’s accounting practices or financial reporting. Vickie Capps, in her role as an independent member of NuVasive’s board of directors and a member of the audit committee, will provide guidance and support to the Company’s financial organization during the transition period. Ms. Capps is a well-respected financial executive, having served as CFO of DJO Global, as well as CFO of several public and private companies. Ms. Capps will also assist the Company in its search for a successor to Mr. Blackford.

“Since becoming CEO over two years ago, I have been working with our board to build a world-class leadership team to support our revenue growth and profitability goals. Together, we are executing against our 5-year strategic plan and building a deep bench of talent, positioning us well to execute against our short- and long-term initiatives. I remain more confident than ever in our Company’s position to take on the next $1 billion in growth,” said Lucier.

About NuVasive

Forward-Looking Statements

NuVasive cautions you that statements included in this news release that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause NuVasive’s results to differ materially from historical results or those expressed or implied by such forward-looking statements. The potential risks and uncertainties which contribute to the uncertain nature of these statements include, among others, risks associated with acceptance of the Company’s surgical products and procedures by spine surgeons, development and acceptance of new products or product enhancements, clinical and statistical verification of the benefits achieved via the use of NuVasive’s products (including the iGA® platform), the Company’s ability to effectually manage inventory as it continues to release new products, its ability to recruit and retain management and key personnel, and the other risks and uncertainties described in NuVasive’s news releases and periodic filings with the Securities and Exchange Commission. NuVasive’s public filings with the Securities and Exchange Commission are available at www.sec.gov. NuVasive assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.

SOURCE NuVasive, Inc.

Global Orthobiologics Market Forecast 2017-2025

Posted On July 27, 2017 By OrthoSpineNews In Biologics, Financial /

LONDON, July 26, 2017 /PRNewswire/ — KEY FINDINGS
The orthobiologics global market is anticipated to grow from $ 6596 million in 2016 to $ 12019 million by 2025. The market is expected to grow at a CACR of 6.97% between 2017-2027. The base year considered for the market study is 2016. The forecast period is 2017-2025. Evolvement in orthobiologics has led to the development of tissue regeneration products and bone grafts that minimize hospital visits, stays and bone healing process.

MARKET INSIGHTS
The global orthobiologics market is segmented on the basis of product type, application, end-user, and geography. The global orthobiologics market by product type is segmented into the demineralized bone matrix (DBM), allograft, bone morphogenetic protein, viscosupplementation, synthetic bone graft substitutes, stem cell therapy and others.

The application segment is further bifurcated into spinal fusion, trauma repair, and reconstructive surgery and others. The end-user is segmented into hospitals and clinics. The orthobiologics market by geography is classified into North America, Europe, Asia-Pacific and rest of the world. The rise in the demand for spinal fusion surgeries, development in Strategic Partnerships, and growth in Orthobiologics Material are the major drivers for the global Orthopedics market. Healthcare reforms (such as Stark self-referral law and fraud & abuse law) are estimated to have affected the Orthobiologics surgeons. Bone Regeneration Technology, Larger Spend on Healthcare is the major opportunities in the Orthobiologics Market.

REGIONAL INSIGHTS
The Orthobiologics market in North America is expected to hold the colossal share by 2024. The increase in research and a rising demand for the products, increasing research investments, aging population growth and an increased number of road accidents are major drivers of the region. Asia-Pacific is estimated with the highest CAGR of 7.09% due to the increased demand for biological implants over mechanical implants, coupled with the growing awareness levels about the benefits of Orthobiologics. Europe has generated revenue of $1705 million in 2016 and is expected to generate revenue of $3077 million by 2024. The rise in the aging population, increased incidences of osteoarthritis and osteoporosis, technological advancements in the European countries are driving the market to grow at a faster pace.

COMPETITIVE INSIGHTS
Major players for the Orthobiologics market are Bioventus, DePuy Inc. (Acquired by Johnson and Johnson), Exatech Inc., Globus Medical Inc., Integra Life sciences Holding Corporation, Johnson& Johnson, Medtronic Inc., Nuvasive Inc., RTI Surgical, Sanofi, Stryker Corporation, Zimmer Biomet Inc., and Mölnlycke Health Care AB. DePuy Inc.
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SOURCE ReportBuyer

Camber Spine Technologies Announces Exceeding the 150th Implantation of ENZA™ Zero-Profile ALIF

Posted On July 27, 2017 By OrthoSpineNews In Spine, Top Stories /

WAYNE, Pa., July 27, 2017 /PRNewswire/ — Camber Spine Technologies, today announced that they have exceeded 150 implantations of the ENZA™ Zero-Profile ALIF device that was launched last July.

“We have been doing anterior spine reconstructions for over 20 years and have used a lot of different ALIF devices,” said Orthopedic Surgeon, Dr. Steven B. Wolf, M.D. of OIP in Camp Hill, PA. “I have extensive experience using the Globus Independence®, Zimmer-LDR ROI-A® and other ALIF devices from Renovis and Titan Spine. The ENZA™ has been an indispensable alternative to all those implants. I can insert ENZA™ and deploy fixation with one instrument and I have the reassurance that I can easily remove it if needed. With the insertion of ENZA™ the patient’s spine feels immediate stabilization, especially if they need to be flipped for posterior instrumentation. Our access surgeon loves this implant, because it makes his job much easier. ENZA’s™ single instrument deployment, without extra retraction of the vessels, eliminates the need for passing multiple locking instrumentation required by other devices.”

ENZA™ was designed to increase patient safety by minimizing retraction necessary for implantation of the device, utilizing its integrated fixation. It is often described as “designed for the access surgeon” because of its completely inline instrumentation–which relieves the burden that other systems induce by requiring larger retraction to accommodate angled instrumentation.

“We are very excited to achieve this important milestone in the initial launch of the ENZA™ ALIF,” said Daniel Pontecorvo, Camber Spine’s CEO. The overwhelming interest and success of ENZA™ reaffirms our plan to make this the first of an entire platform of products utilizing our patented ENZA™ Duo Presa™ (Two Grips) Anchor Technology. Surgeons assert that it is a simpler, safer and more stable alternative to all other locking ALIF devices.”

This achievement comes at an inflexion point for Camber Spine, as they continue to expand sales into new territories of the U.S with new hires.

The Camber Spine Technologies ENZA™ MIS Zero-Profile Anterior Interbody Fusion is indicated for use with autogenous bone graft in patients with degenerative disc disease (DDD) at one or two contiguous levels from L2 to S1. These implants may be implanted via a laparoscopic or an open anterior approach. The Camber Spine Technologies’ ENZA™ MIS Zero-Profile ALIF is intended to be used with additional FDA-cleared supplementary fixation systems.

About Camber Spine

Camber Spine Technologies, LLP, is a fast-growing musculoskeletal implant company founded in 2010 bringing innovative, best-in-class products to the market, providing surgeons and their patients with better treatment options. The company is committed to delivering surgeon inspired new technologies to the spine market. Camber is an ISO 13485 certified medical device company. Camber Spine Technologies, located in Wayne, Pennsylvania, markets a line of proprietary musculoskeletal products nationwide through its exclusive distributor, S1 Spine. For further information please visit www.cambermedtech.com . For inquiries about ENZA® or distribution opportunities please call 484.427.7060.

All of Camber Spine Technologies’ products are proudly MADE IN THE USA.

SOURCE Camber Spine Technologies

Zimmer Biomet Reports Second Quarter 2017 Financial Results

Posted On July 27, 2017 By OrthoSpineNews In Financial /

WARSAW, Ind., July 27, 2017 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter ended June 30, 2017. The Company reported second quarter net sales of $1.954 billion, an increase of 1.1% over the prior year period, and an increase of 2.1% on a constant currency basis. Excluding approximately 240 basis points of contribution from the LDR Holding Corporation acquisition, second quarter 2017 revenues decreased 1.3% from the second quarter of 2016, or 0.3% on a constant currency basis.

Diluted earnings per share for the quarter were $0.90. Adjusted diluted earnings per share for the quarter were $2.08, an increase of 3.0% over the prior year period.

“During the second quarter, we increased production output from our Warsaw North Campus manufacturing facility, and continued to drive efforts to achieve best-in-class quality systems. Our sales growth fell short of our expectations, due in part to production delays of certain key brands and slower-than-expected sales recapture from previously affected customers in the United States. These factors have informed our updated outlook for the full year,” said Daniel P. Florin, Interim Chief Executive Officer, Senior Vice President and Chief Financial Officer of Zimmer Biomet. “Looking forward, we remain focused on fully restoring product supply to enhance our commercial execution, while continuing to closely engage with our customers and take advantage of the opportunities in front of us.”

“We have great confidence in Dan as he transitions into the role of Interim CEO. He has already begun to leverage his deep knowledge of Zimmer Biomet and decades of medical device industry experience to lead the Company during this period,” said Larry C. Glasscock, Chairman of the Board of Zimmer Biomet. “We have initiated a thorough search to identify the best candidate to serve as Zimmer Biomet’s next CEO. We are seeking a strong leader, whose strategic and operational track record aligns with Zimmer Biomet’s commitment to growth and enhancing stockholder value.”

Net earnings for the second quarter were $184.2 million, and $424.6 million on an adjusted basis, an increase of 4.3% over the prior year period. Operating cash flow for the second quarter was $440.5 million.

In the quarter, the Company paid $48.4 million in dividends and declared a second quarter dividend of $0.24 per share. The Company has made approximately $650 million of net debt repayments through the first half of 2017.

Guidance
The Company is updating its full-year 2017 constant currency revenue and adjusted earnings per share guidance. For the full year, the Company now expects revenue in the range of $7.80 billion to $7.87 billion, representing constant currency revenue growth of 1.8% to 2.7% compared to the prior year, inclusive of approximately 120 basis points of contribution from the LDR transaction. Previously, the Company had expected full-year, constant currency revenue growth between 3.2% and 4.2%, inclusive of approximately 120 basis points of contribution from the LDR transaction. Additionally, the Company now expects its full-year 2017 diluted earnings per share to be in a range of $4.15 to $4.35, and in a range of $8.20 to $8.30 on an adjusted basis. Previously, the Company had expected full-year 2017 diluted earnings per share to be in a range of $4.68 to $4.88, and in a range of $8.50 to $8.60 on an adjusted basis.

For the third quarter of 2017, the Company expects revenue in the range of $1.815 billion to $1.845 billion, representing constant currency revenue growth of negative 0.5% to positive 1.0% compared to the prior year period, inclusive of approximately 30 basis points of contribution from the LDR transaction. Additionally, the Company expects its diluted earnings per share for the third quarter to be in a range of $0.60 to $0.70, and in a range of $1.72 to $1.77 on an adjusted basis.

Conference Call
The Company will conduct its second quarter 2017 investor conference call today, July 27, 2017, at 8:00 a.m. Eastern Time. The live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at http://investor.zimmerbiomet.com. It will be archived for replay following the conference call.

Individuals in the U.S. and Canada who wish to dial into the conference call may do so by dialing (888) 312-9837 and entering conference ID 7278985. For a complete listing of international toll-free and local numbers, please visit http://investor.zimmerbiomet.com. A digital recording will be available 24 hours after the completion of the conference call, from July 28, 2017 to August 26, 2017. To access the recording, U.S. callers should dial (888) 203-1112 and international callers should dial +1 (719) 457-0820, and enter the Access Code ID 7278985.

Sales Tables
The following sales tables provide results by geography and product category, as well as the percentage change compared to the prior year quarter and six months, on both a reported and a constant currency basis.

NET SALES – THREE MONTHS ENDED JUNE 30, 2017
(in millions, unaudited)





					Constant
	Net				Currency
	Sales		% Change		% Change
Geographic Results
Americas	$	1,209	2.3	%	2.5	%
EMEA	438		(4.9)		(1.8)
Asia Pacific	307		5.3		6.8
Total	$	1,954	1.1	%	2.1	%


Product Categories
Knees
Americas	$	406	(2.7)	%	(2.6)	%
EMEA	159		(5.3)		(1.7)
Asia Pacific	115		3.4		4.2
Total	680		(2.4)		(1.3)

Hips
Americas	245		(1.4)		(1.2)
EMEA	131		(5.7)		(3.0)
Asia Pacific	94		4.4		6.6
Total	470		(1.5)		(0.2)

S.E.T ⁽¹⁾	423		2.6		3.6

Dental	110		(6.4)		(5.7)

Spine & CMF	194		33.0		33.5

Other	77		(8.0)		(7.0)

Total	$	1,954	1.1	%	2.1	%

⁽¹⁾ Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

NET SALES – SIX MONTHS ENDED JUNE 30, 2017
(in millions, unaudited)


					Constant
	Net				Currency
	Sales		% Change		% Change
Geographic Results
Americas	$	2,444	3.6	%	3.6	%
EMEA	891		(2.8)		0.6
Asia Pacific	597		6.1		6.4
Total	$	3,932	2.4	%	3.3	%


Product Categories
Knees
Americas	$	835	(1.4)	%	(1.4)	%
EMEA	328		(4.4)		(0.4)
Asia Pacific	219		4.1		3.7
Total	1,382		(1.3)		(0.4)

Hips
Americas	492		(0.6)		(0.6)
EMEA	267		(3.1)		(0.2)
Asia Pacific	187		6.9		7.8
Total	946		–		1.1

S.E.T ⁽¹⁾	848		4.3		5.0

Dental	218		(3.7)		(2.9)

Spine & CMF	380		32.5		32.8

Other	158		(4.9)		(4.1)

Total	$	3,932	2.4	%	3.3	%

⁽¹⁾Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

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 orthopaedic 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 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, 2017 is presented on a GAAP (reported) basis and on a constant currency basis, as well as on a basis that excludes the contribution from the Company’s acquisition of LDR Holding Corporation in July 2016. Constant currency rates 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. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in this press release.

Net earnings, diluted earnings per share and projected diluted earnings per share are presented on a GAAP (reported) basis and on an adjusted basis. Adjusted diluted earnings per share excludes the effects of inventory step-up; certain inventory and manufacturing-related charges connected to discontinuing certain product lines, quality enhancement and remediation efforts; special items; intangible asset amortization; any related effects on our income tax provision associated with these items; and other certain tax adjustments. Special items include expenses resulting directly from our business combinations and/or global restructuring, quality and operational excellence initiatives, including employee termination benefits, certain contract terminations, consulting and professional fees, dedicated project personnel, asset impairment or loss on disposal charges and other items. Other certain tax adjustments include a tax restructuring that lowered the tax rate on deferred tax liabilities recorded on intangible assets recognized in acquisition-related accounting, net favorable resolutions of various tax matters, and charges from internal restructuring transactions that provide the Company access to cash in a tax efficient manner.

Management uses these non-GAAP financial measures internally to evaluate the performance of the business and believes they are useful measures that provide meaningful supplemental 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 operating results, to perform trend analysis, to better identify operating trends that may otherwise be masked or distorted by these types of items and to provide additional transparency of certain items. In addition, certain of these non-GAAP financial measures are used as performance metrics in the Company’s incentive compensation programs.

Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding sales and earnings guidance and any statements about our expectations, plans, strategies or prospects. We generally use the words “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “assumes,” “guides,” “targets,” “forecasts,” “sees,” “seeks,” “should,” “could,” “intends” and similar expressions to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially. These risks, uncertainties and changes in circumstances include, but are not limited to: our chief executive officer transition, including disruptions and uncertainties related thereto, our ability to appoint a permanent successor with the desired level of experience and expertise in a timely manner, the potential impact on our business and future strategic direction resulting from our transition to a new chief executive officer, and our ability to retain other key members of senior management; 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, vendors and lenders and on our operating results and businesses generally; compliance with the Deferred Prosecution Agreement entered into in January 2017; the success of our quality and operational excellence initiatives; challenges relating to changes in and compliance with governmental laws and regulations, including regulations of the U.S. Food and Drug Administration (FDA) and foreign government regulators, such as more stringent requirements for regulatory clearance of products; the ability to remediate matters identified in any inspectional observations or warning letters issued by the FDA, while continuing to satisfy the demand for our products; the outcome of government investigations; price and product competition; 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; the ability to form and implement alliances; changes in tax obligations arising from tax reform measures or examinations by tax authorities; product liability and intellectual property litigation losses; 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; changes in general industry and market conditions, including domestic and international growth rates and general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; and the impact of the ongoing economic uncertainty affecting countries in the Euro zone on the ability to collect accounts receivable in affected countries. For a further list and description of such risks and uncertainties, see our reports filed with the U.S. Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2016 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. Copies of these filings, as well as subsequent filings, are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. Forward-looking statements speak only as of the date they are made, and we 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 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 statement is applicable to all forward-looking statements contained in this release.


ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2017 and 2016
(in millions, except per share amounts, unaudited)

	2017	2016
Net Sales	$ 1,954.4	$ 1,934.0

Cost of products sold, excluding intangible asset amortization	527.7	640.1
Intangible asset amortization	147.7	133.8
Research and development	90.1	88.6
Selling, general and administrative	748.0	732.0
Special items	158.6	137.9
Operating expenses	1,672.1	1,732.4

Operating Profit	282.3	201.6

Other expense, net	(3.9)	(3.8)
Interest income	0.3	0.8
Interest expense	(82.3)	(88.1)

Earnings before income taxes	196.4	110.5

Provision for income taxes	12.3	142.2

Net Earnings (Loss)	184.1	(31.7)

Less: Net Loss attributable to noncontrolling interest	(0.1)	(0.4)

Net Earnings (Loss) of Zimmer Biomet Holdings, Inc.	$ 184.2	$ (31.3)

Earnings (Loss) Per Common Share
Basic	$ 0.91	$ (0.16)
Diluted	$ 0.90	$ (0.16)

Weighted Average Common Shares Outstanding
Basic	201.8	199.4
Diluted	203.7	199.4

Cash Dividends Declared Per Common Share	$ 0.24	$ 0.24


ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 2017 and 2016
(in millions, except per share amounts, unaudited)

	2017	2016
Net Sales	$ 3,931.7	$ 3,838.0

Cost of products sold, excluding intangible asset amortization	1,040.6	1,280.7
Intangible asset amortization	299.7	260.4
Research and development	181.2	174.3
Selling, general and administrative	1,508.8	1,448.9
Special items	268.7	226.6
Operating expenses	3,299.0	3,390.9

Operating Profit	632.7	447.1

Other expense, net	(6.7)	(7.6)
Interest income	0.8	2.1
Interest expense	(165.2)	(176.3)

Earnings before income taxes	461.6	265.3

(Benefit) provision for income taxes	(21.8)	188.3

Net Earnings	483.4	77.0

Less: Net Loss attributable to noncontrolling interest	(0.2)	(0.5)

Net Earnings of Zimmer Biomet Holdings, Inc.	$ 483.6	$ 77.5

Earnings Per Common Share
Basic	$ 2.40	$ 0.39
Diluted	$ 2.38	$ 0.38

Weighted Average Common Shares Outstanding
Basic	201.4	199.8
Diluted	203.4	202.1

Cash Dividends Declared Per Common Share	$ 0.48	$ 0.48

ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)

	June 30,	December 31,
	2017	2016
Assets
Current Assets:
Cash and cash equivalents	$ 450.0	$ 634.1
Receivables, net	1,464.0	1,604.4
Inventories	2,023.9	1,959.4
Other current assets	527.2	465.7
Total current assets	4,465.1	4,663.6

Property, plant and equipment, net	2,057.4	2,037.9
Goodwill	10,859.5	10,643.9
Intangible assets, net	8,544.0	8,785.4
Other assets	568.2	553.6
Total Assets	$ 26,494.2	$ 26,684.4

Liabilities and Stockholders’ Equity

Current liabilities	$ 1,708.1	$ 1,805.9
Current portion of long-term debt	1,329.3	575.6
Other long-term liabilities	3,822.9	3,967.2
Long-term debt	9,354.4	10,665.8
Stockholders’ equity	10,279.5	9,669.9
Total Liabilities and Stockholders’ Equity	$ 26,494.2	$ 26,684.4

ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2017 and 2016
(in millions, unaudited)

		2017	2016

Cash flows provided by (used in) operating activities
	Net earnings	$ 483.4	$ 77.0
	Depreciation and amortization	531.7	499.2
	Share-based compensation	27.7	30.7
	Intangible asset impairment	26.8	28.0
	Inventory step-up	30.9	286.4
	Changes in operating assets and liabilities, net of acquired assets and liabilities
	Income taxes	(210.4)	13.6
	Receivables	187.8	(120.8)
	Inventories	(68.8)	60.2
	Accounts payable and accrued expenses	(162.7)	(141.9)
	Other assets and liabilities	(130.5)	(80.0)
	Net cash provided by operating activities	715.9	652.4

Cash flows provided by (used in) investing activities
	Additions to instruments	(172.6)	(157.3)
	Additions to other property, plant and equipment	(73.8)	(73.7)
	Purchases of investments	–	(1.2)
	Sales of investments	–	273.3
	Business combination investments, net of acquired cash	(4.0)	(184.1)
	Other investing activities	(11.7)	(27.4)
	Net cash used in investing activities	(262.1)	(170.4)

Cash flows provided by (used in) financing activities
	Proceeds from multicurrency revolving facility	400.0	–
	Payments on multicurrency revolving facility	(400.0)	–
	Redemption of senior notes	(500.0)	–
	Payments on term loan	(150.0)	(500.0)
	Net payments on other debt	(0.7)	(18.8)
	Dividends paid to stockholders	(96.5)	(92.4)
	Proceeds from employee stock compensation plans	105.5	78.6
	Business combination contingent consideration payments	(8.1)	–
	Restricted stock witholdings	(7.1)	(5.2)
	Repurchase of common stock	–	(415.5)
	Net cash used in financing activities	(656.9)	(953.3)

Effect of exchange rates on cash and cash equivalents		19.0	(11.7)
			–
	Decrease in cash and cash equivalents	(184.1)	(483.0)
Cash and cash equivalents, beginning of period		634.1	1,459.3
Cash and cash equivalents, end of period		$ 450.0	$ 976.3

ZIMMER BIOMET HOLDINGS, INC.
NET SALES BY GEOGRAPHY
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 and 2016
(in millions, unaudited)
	Three Months Ended June 30,			Six Months Ended June 30,
	2017	2016	% Inc / (Dec)	2017	2016	% Inc / (Dec)

Americas	$ 1,208.8	$ 1,181.0	2.3 %	$ 2,443.6	$ 2,358.2	3.6 %
EMEA	438.2	460.9	(4.9)	891.4	917.2	(2.8)
Asia Pacific	307.4	292.1	5.3	596.7	562.6	6.1
Total	$ 1,954.4	$ 1,934.0	1.1	$ 3,931.7	$ 3,838.0	2.4



ZIMMER BIOMET HOLDINGS, INC.
NET SALES BY PRODUCT CATEGORY
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 and 2016
(in millions, unaudited)
	Three Months Ended June 30,			Six Months Ended June 30,
	2017	2016	% Inc / (Dec)	2017	2016	% Inc / (Dec)

Knees	$ 680.4	$ 697.0	(2.4) %	$ 1,382.2	$ 1,400.2	(1.3) %
Hips	469.8	477.2	(1.5)	945.5	945.1	–
S.E.T	422.8	412.2	2.6	847.9	813.2	4.3
Dental	110.4	118.0	(6.4)	218.2	226.6	(3.7)
Spine & CMF	194.0	145.8	33.0	380.3	287.0	32.5
Other	77.0	83.8	(8.0)	157.6	165.9	(4.9)
Total	$ 1,954.4	$ 1,934.0	1.1	$ 3,931.7	$ 3,838.0	2.4

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY % CHANGE AND
% CHANGE EXCLUDING LDR HOLDING CORPORATION
(unaudited)


			For the Three Months Ended
			June 30, 2017


					Foreign		Constant
					Exchange		Currency
			% Change		Impact		% Change
Geographic Results
	Americas		2.3	%	(0.2)	%	2.5	%
	EMEA		(4.9)		(3.1)		(1.8)
	Asia Pacific		5.3		(1.5)		6.8
		Total	1.1	%	(1.0)	%	2.1	%


Product Categories
		Knees
		Americas	(2.7)	%	(0.1)	%	(2.6)	%
		EMEA	(5.3)		(3.6)		(1.7)
		Asia Pacific	3.4		(0.8)		4.2
		Total	(2.4)		(1.1)		(1.3)

		Hips
		Americas	(1.4)		(0.2)		(1.2)
		EMEA	(5.7)		(2.7)		(3.0)
		Asia Pacific	4.4		(2.2)		6.6
		Total	(1.5)		(1.3)		(0.2)
							–
		S.E.T	2.6		(1.0)		3.6
							–
		Dental	(6.4)		(0.7)		(5.7)
							–
		Spine & CMF	33.0		(0.5)		33.5
					–		–
		Other	(8.0)		(1.0)		(7.0)
							–
	Net Sales % Change		1.1	%	(1.0)	%	2.1	%
							–
	Impact of LDR Holding Corporation		(2.4)		–		(2.4)
		% Change excluding LDR Holding Corporation	(1.3)	%	(1.0)	%	(0.3)	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY % CHANGE AND
% CHANGE EXCLUDING LDR HOLDING CORPORATION
(unaudited)


			For the Six Months Ended
			June 30, 2017


					Foreign		Constant
					Exchange		Currency
			% Change		Impact		% Change
Geographic Results
	Americas		3.6	%	–	%	3.6	%
	EMEA		(2.8)		(3.4)		0.6
	Asia Pacific		6.1		(0.3)		6.4
		Total	2.4	%	(0.9)	%	3.3	%


Product Categories
		Knees
		Americas	(1.4)	%	–	%	(1.4)	%
		EMEA	(4.4)		(4.0)		(0.4)
		Asia Pacific	4.1		0.4		3.7
		Total	(1.3)		(0.9)		(0.4)

		Hips
		Americas	(0.6)		–		(0.6)
		EMEA	(3.1)		(2.9)		(0.2)
		Asia Pacific	6.9		(0.9)		7.8
		Total	–		(1.1)		1.1

		S.E.T	4.3		(0.7)		5.0

		Dental	(3.7)		(0.8)		(2.9)

		Spine & CMF	32.5		(0.3)		32.8
					–
		Other	(4.9)		(0.8)		(4.1)

		Total	2.4	%	(0.9)	%	3.3	%

	Impact of LDR Holding Corporation		(2.3)		–		(2.3)
		% Change excluding LDR Holding Corporation	0.1	%	(0.9)	%	1.0	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2017 and 2016
(in millions, unaudited)

	Three Months
	Ended June 30,
	2017	2016
Net Earnings of Zimmer Biomet Holdings, Inc.	$ 184.2	$ (31.3)
Inventory step-up and other inventory
and manufacturing-related charges	24.9	156.6
Intangible asset amortization	147.7	133.8
Special items
Biomet merger-related	88.2	120.6
Other special items	70.4	17.3
Merger-related and other (income) expense in other expense, net	(0.6)	1.5
Taxes on above items ⁽¹⁾	(102.2)	(96.3)
Biomet merger-related measurement period tax adjustments⁽²⁾	–	73.2
Other certain tax adjustments⁽³⁾	12.0	31.7
Adjusted Net Earnings	$ 424.6	$ 407.1

⁽¹⁾ The tax effect for the U.S. jurisdiction is calculated based on an effective rate considering federal and state taxes,
as well as permanent items. For jurisdictions outside the U.S., the tax effect is calculated based upon the statutory
rates where the items were incurred.

⁽²⁾ The 2016 period includes negative effects from finalizing the tax accounts for the Biomet merger. Under the
applicable U.S. GAAP rules, these measurement period adjustments are recognized on a prospective basis
in the period of change.

⁽³⁾ In 2017, other certain tax adjustments relate to charges from internal restructuring transactions that provide the
Company access to cash in a tax efficient manner partially offset by net favorable resolutions of various tax matters.
The 2016 adjustment relates to internal restructuring transactions that provide the Company access to cash in
a tax efficient manner.



ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 2017 and 2016
(in millions, unaudited)

	Six Months
	Ended June 30,
	2017	2016
Net Earnings of Zimmer Biomet Holdings, Inc.	$ 483.6	$ 77.5
Inventory step-up and other inventory
and manufacturing-related charges	48.1	334.9
Intangible asset amortization	299.7	260.4
Special items
Biomet merger-related	125.2	199.7
Other special items	143.5	26.9
Merger-related and other expense in other expense, net	0.9	1.5
Taxes on above items ⁽¹⁾	(185.2)	(185.3)
Biomet merger-related measurement period tax adjustments ⁽²⁾	–	52.7
Other certain tax adjustments⁽³⁾	(57.8)	46.0
Adjusted Net Earnings	$ 858.0	$ 814.3

⁽¹⁾ The tax effect for the U.S. jurisdiction is calculated based on an effective rate considering federal and state taxes,
as well as permanent items. For jurisdictions outside the U.S., the tax effect is calculated based upon the statutory
rates where the items were incurred.

⁽²⁾ The 2016 period includes negative effects from finalizing the tax accounts for the Biomet merger. Under the
applicable U.S. GAAP rules, these measurement period adjustments are recognized on a prospective basis
in the period of change.

⁽³⁾ In 2017, other certain tax adjustments relate to a tax restructuring that lowered the tax rate on deferred tax liabilities
recorded on intangible assets recognized in acquisition-related accounting, net favorable resolutions of various tax
matters, and charges from internal restructuring transactions that provide the Company access to cash in a tax efficient
manner. The 2016 adjustment relates to internal restructuring transactions that provide the Company access to
cash in a tax efficient manner.

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF DILUTED EPS TO ADJUSTED DILUTED EPS
FOR THE THREE MONTHS ENDED JUNE 30, 2017 and 2016
(unaudited)

	Three Months
	Ended June 30,
	2017	2016
Diluted EPS	$ 0.90	$ (0.16)
Inventory step-up and other inventory
and manufacturing-related charges	0.12	0.77
Intangible asset amortization	0.73	0.66
Special items
Biomet merger-related	0.43	0.60
Other special items	0.35	0.09
Merger-related expense in other expense, net	–	0.01
Taxes on above items ⁽¹⁾	(0.51)	(0.48)
Biomet merger-related measurement period tax adjustments ⁽²⁾	–	0.36
Other certain tax adjustments⁽³⁾	0.06	0.16
Effect of dilutive shares assuming net earnings ⁽⁴⁾	–	0.01
Adjusted Diluted EPS	$ 2.08	$ 2.02

⁽¹⁾The tax effect for the U.S. jurisdiction is calculated based on an effective rate considering federal and state taxes,
as well as permanent items. For jurisdictions outside the U.S., the tax effect is calculated based upon the statutory
rates where the items were incurred.

⁽²⁾The 2016 period includes negative effects from finalizing the tax accounts for the Biomet merger. Under the
applicable U.S. GAAP rules, these measurement period adjustments are recognized on a prospective basis
in the period of change.

⁽³⁾In 2017, other certain tax adjustments relate to charges from internal restructuring transactions that provide the
Company access to cash in a tax efficient manner partially offset by net favorable resolutions of various tax matters.
The 2016 adjustment relates to internal restructuring transactions that provide the Company access to cash in
a tax efficient manner.

⁽⁴⁾Diluted share count used in Adjusted Diluted EPS:		Three Months Ended June 30, 2016
Diluted shares		199.4
Dilutive shares assuming net earnings		2.5
Adjusted diluted shares		201.9



ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF DILUTED EPS TO ADJUSTED DILUTED EPS
FOR THE SIX MONTHS ENDED JUNE 30, 2017 and 2016
(unaudited)

	Six Months
	Ended June 30,
	2017	2016
Diluted EPS	$ 2.38	$ 0.38
Inventory step-up and other inventory
and manufacturing-related charges	0.24	1.66
Intangible asset amortization	1.47	1.29
Special items
Biomet merger-related	0.62	0.98
Other special items	0.71	0.13
Merger-related and other expense in other (expense) income, net	–	0.01
Taxes on above items ⁽¹⁾	(0.91)	(0.91)
Biomet merger-related measurement period tax adjustments ⁽²⁾	–	0.26
Other certain tax adjustments⁽³⁾	(0.29)	0.23
Adjusted Diluted EPS	$ 4.22	$ 4.03


⁽¹⁾The tax effect for the U.S. jurisdiction is calculated based on an effective rate considering federal and state taxes,
as well as permanent items. For jurisdictions outside the U.S., the tax effect is calculated based upon the statutory
rates where the items were incurred.

⁽²⁾The 2016 period includes negative effects from finalizing the tax accounts for the Biomet merger. Under the
applicable U.S. GAAP rules, these measurement period adjustments are recognized on a prospective basis
in the period of change.

⁽³⁾In 2017, other certain tax adjustments relate to a tax restructuring that lowered the tax rate on deferred tax liabilities
recorded on intangible assets recognized in acquisition-related accounting, net favorable resolutions of various tax
matters, and charges from internal restructuring transactions that provide the Company access to cash in a tax efficient
manner. The 2016 adjustment relates to internal restructuring transactions that provide the Company access to
cash in a tax efficient manner.

ZIMMER BIOMET HOLDINGS, INC.
SUMMARY OF EXPENSES INCLUDED IN SPECIAL ITEMS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 and 2016
(in millions, unaudited)


			Three Months		Six Months
			Ended June 30,		Ended June 30,
			2017	2016	2017	2016
Biomet merger-related
	Consulting and professional fees		$ 22.1	$ 43.3	$ 40.8	$ 79.4
	Employee termination benefits		9.6	3.1	6.6	7.2
	Dedicated project personnel		14.2	21.2	22.9	42.9
	Relocated facilities		1.5	6.3	4.3	8.0
	Contract terminations		–	15.2	–	25.3
	Information technology integration		1.3	3.1	3.6	4.5
	Intangible asset impairment		26.8	28.0	26.8	28.0
	Other		12.7	0.4	20.2	4.4
		Total Biomet merger-related	88.2	120.6	125.2	199.7

Other
	Consulting and professional fees		51.7	8.8	102.1	15.7
	Employee termination benefits		1.4	–	2.6	–
	Dedicated project personnel		8.7	1.5	21.5	3.3
	Relocated facilities		0.1	–	2.5	0.2
	Certain litigation matters		–	–	7.0	–
	Contract terminations		–	1.0	–	1.0
	Information technology integration		0.3	0.2	0.8	0.3
	Certain R&D agreements		2.5	–	2.5	–
	Loss/impairment on assets		–	1.1	–	1.1
	Contingent consideration adjustments		0.4	–	(3.2)	–
	Other		5.3	4.7	7.7	5.3
		Total Other	70.4	17.3	143.5	26.9
Special items			$ 158.6	$ 137.9	$ 268.7	$ 226.6

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF 2017 PROJECTED REVENUE % CHANGE TO
2017 PROJECTED CONSTANT CURRENCY % CHANGE AND
CHANGE EXCLUDING LDR HOLDING CORPORATION
(unaudited)



Projected Three Months Ended September 30, 2017:	High		Low

Revenue % change	0.5	%	(1.0)	%
Foreign exchange impact	0.5		0.5
Constant currency % change	1.0	%	(0.5)	%
Impact of LDR Holding Corporation	(0.3)		(0.3)
Constant currency % change excluding LDR Holding Corporation	0.7	%	(0.8)	%



Projected Year Ended December 31, 2017:	High		Low

Revenue % change	2.4	%	1.5	%
Foreign exchange impact	0.3		0.3
Constant currency % change	2.7	%	1.8	%
Impact of LDR Holding Corporation	(1.2)		(1.2)
Constant currency % change excluding LDR Holding Corporation	1.5	%	0.6	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF 2017 PROJECTED DILUTED EPS
AND PROJECTED ADJUSTED DILUTED EPS
(unaudited)


Projected Three Months Ended September 30, 2017:	High	Low

Diluted EPS	$ 0.70	$ 0.60
Inventory step-up and other inventory and manufacturing related
charges, intangible asset amortization, special items and other expense	1.51	1.58
Taxes on above items(1) and other certain tax adjustments	(0.44)	(0.46)
Adjusted Diluted EPS	$ 1.77	$ 1.72


Projected Year Ended December 31, 2017:	High	Low

Diluted EPS	$ 4.35	$ 4.15
Inventory step-up and other inventory and manufacturing related
charges, intangible asset amortization, special items and other expense	6.08	6.23
Taxes on above items⁽¹⁾ and other certain tax adjustments	(2.13)	(2.18)
Adjusted Diluted EPS	$ 8.30	$ 8.20


⁽¹⁾ The tax effect for the U.S. jurisdiction is estimated based on an effective rate considering federal and state taxes,
as well as permanent items. For jurisdictions outside the U.S., the tax effect is estimated based upon the statutory
rates where the items are projected to be incurred.

SOURCE Zimmer Biomet Holdings, Inc.

4WEB Medical Announces First U.S. Surgeries with 3D Printed Lateral Spine Truss System

Posted On July 27, 2017 By OrthoSpineNews In Spine /

NEW YORK, July 27, 2017 /PRNewswire/ — 4WEB Medical, the industry leader in 3D printed implant technology, announced today the first surgeries utilizing the company’s Lateral Spine Truss System were recently performed in several notable hospitals in the United States. The company’s lateral interbody fusion device was designed to solve known surgical problems associated with legacy annular implant designs and represents a significant advancement in lateral access surgery.

“4WEB’s spine truss implants have proven to be very effective in providing excellent surgical outcomes for my patients,” said Frank Cammisa, MD, Hospital for Special Surgery, New York, NY. “In contrast to older ring-shaped implants with hollow cores, 4WEB’s truss implant web structure spans the entire endplate providing strong initial fixation and minimizing subsidence.”

The Lateral Spine Truss System is designed with a unique bi-convex dome that distributes load across a larger surface area and has three times more textured surface topography when compared to other competitive spine implants. The key differentiator for the product, though, is its proprietary truss design and the performance it lends to driving successful spine fusion results.

“A recent study comparing 4WEB’s lateral truss implant to a ring implant design demonstrated that the truss design had superior resistance to subsidence,” said John Peloza, MD, Center for Spine Care, Dallas, Texas. “In fact, the 40mm length truss implant displayed 61% greater resistance to subsidence than the 60mm length ring implant¹. These results are indicative of the optimized load distribution inherent to 4WEB’s truss implant technology that maximizes endplate contact while providing an open architecture for bone formation and fusion.”

4WEB Medical is an implant device company founded in 2008 in Dallas, Texas. Thirty years of research in topological dimension theory led to the discovery of a novel geometry, the 4WEB, that can be used as a building block to create high-strength, lightweight web structures. The company leveraged this breakthrough along with cutting-edge 3D printing technology to develop 4WEB Medical’s proprietary truss implant platform. The 4WEB Medical product portfolio includes the Cervical Spine Truss System, the ALIF Spine Truss System, the Posterior Spine Truss System, the Lateral Spine Truss System, and the Osteotomy Truss System. 4WEB is actively developing truss implant designs for knee, hip, trauma and patient specific orthopedic procedures.

For more information about 4WEB Medical, 4WEB’s Truss Implant Technology, and the Spine Truss Systems, please visit www.4WEBMedical.com.

Kiapour, A. Evaluation and Comparison of Subsidence Properties of 4WEB Lateral Device versus an Annular Lateral Device.

SOURCE 4WEB Medical

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