Press Release: Zimmer Biomet Announces Fourth Quarter and Full-Year 2020 Financial Results
Zimmer Biomet Announces Fourth Quarter and Full-Year 2020 Financial Results
- Fourth quarter net sales of $2.085 billion decreased 1.9%, 3.7% on a constant currency basis
- Fourth quarter diluted earnings per share were $1.59; adjusted diluted earnings per share were $2.11
- Full-year net sales of $7.025 billion decreased 12.0%,12.4% on a constant currency basis
- Full-year diluted loss per share was $0.67; adjusted diluted earnings per share were $5.67
- Company separately announces intent to spin off Spine and Dental businesses
WARSAW, Ind., Feb. 5, 2021
WARSAW, Ind., Feb. 5, 2021 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter and year ended December 31, 2020. The Company reported fourth quarter net sales of $2.085 billion, a decrease of 1.9% from the prior year period, and a decrease of 3.7% on a constant currency basis. Net sales for the full year were $7.025 billion, a decrease of 12.0% from the prior year, and a decrease of 12.4% on a constant currency basis. Net earnings for the fourth quarter were $333.7 million, or $440.7 million on an adjusted basis, and for the full year net loss was $138.9 million and net earnings on an adjusted basis were $1,181.6 million.
Diluted earnings per share were $1.59 for the fourth quarter, an increase of 3.2% over the prior year period. Adjusted diluted earnings per share were $2.11 for the fourth quarter, a decrease of 8.3% from the prior year period. Full-year diluted loss per share was $0.67 and full-year adjusted diluted earnings per share were $5.67, a decrease of 28.0% from the prior year.
"The fourth quarter saw continued pressure from COVID and its impact on the recovery of elective procedures, yet our core business remained strong as did our operational execution to close out 2020," said Bryan Hanson, President and CEO of Zimmer Biomet. "Against that backdrop, we continue the transformation of our business in order to drive growth and increase shareholder value, as underscored by today's announcement that we intend to spin off our Spine and Dental businesses. This transaction will position us to prioritize resources, simplify our operating models and deliver greater value through two independent publicly traded companies. Our team remains confident and focused as we continue to deliver on our mission and serve patients, providers and our customers."
Please see the attached schedules accompanying this press release for additional details on performance in the quarter and full-year 2020, including sales by Zimmer Biomet's three geographies and five product categories.
Aligned with Zimmer Biomet's active portfolio management strategy and the ongoing transformation of the business, key recent highlights include:
Geographic and Product Category Sales
The following sales tables provide results by geography and product category for the three-month period and year ended December 31, 2020, as well as the percentage change compared to the prior year periods, on both a reported basis and a constant currency basis.
Cash Flow and Balance Sheet
Cash provided by operating activities for the fourth quarter was $425.1 million and free cash flow was $328.5 million. At December 31, 2020, the Company had $802.1 million in cash and cash equivalents on the balance sheet. In the fourth quarter, the Company paid $49.8 million in dividends and declared a dividend of $0.24 per share. Cash provided by operating activities for the full year was $1.205 billion and free cash flow was $795.3 million. In the full year, the Company paid $198.5 million in dividends and declared dividends of $0.96 per share. As previously announced, Zimmer Biomet refinanced $1.5 billion in debt that came due April 1, 2020, renegotiated the terms of its $1.5 billion revolver and secured an additional $1.0 billion credit facility. No borrowings are outstanding under these credit facilities.
There continues to be uncertainty around the ongoing impact of COVID-19. Therefore, the Company is currently unable to quantify the expected impact on its results of operations, financial condition and cash flows, which could be material, for full year 2021 and is not providing financial guidance at this time.
The Company will conduct its fourth quarter and full-year 2020 investor conference call today, February 5, 2021, at 8:30 a.m. ET. The audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com. It will be archived for replay following the conference call.
About the Company
Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer Biomet is a global leader in musculoskeletal healthcare. We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; office based technologies; spine, craniomaxillofacial and thoracic products; dental implants; and related surgical products.
(MORE TO FOLLOW) Dow Jones Newswires
February 05, 2021 06:30 ET (11:30 GMT)