Zimmer Biomet : Description Reconciliation of Operating Profit & Margin to Adjusted Operating Profit & Margin
February 04, 2020 at 06:59 am EST
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ZIMMER BIOMET HOLDINGS, INC.
Reconciliation of Operating Profit & Margin to Adjusted Operating Profit & Margin
For the Quarterly and Year-to-Date Periods in Calendar Year Ending December 31, 2019
(in millions, unaudited)
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
Year Ended
March 31, 2019
June 30, 2019
September 30, 2019
December 31, 2019
December 31, 2019
Operating profit
$
350.2
$
204.7
$
245.8
$
336.8
$
1,137.5
Inventory and manufacturing-related charges
2.0
34.1
11.6
6.2
53.9
Intangible asset amortization
143.4
146.9
146.6
147.4
584.3
Intangible asset impairment
-
70.1
-
-
70.1
Quality remediation
19.7
23.4
21.5
23.0
87.6
Restructuring and other cost reduction initiatives
4.7
6.9
5.4
33.0
50.0
Acquisition, integration and related
6.0
5.1
(2.6)
3.7
12.2
Litigation
(1.8)
7.0
42.8
17.0
65.0
Litigation settlement gain
(23.5)
-
-
-
(23.5)
European Union Medical Device Regulation
1.6
5.1
11.4
12.8
30.9
Other charges
22.7
41.9
18.5
37.4
120.5
Adjusted operating profit
$
525.0
$
545.2
$
501.0
$
617.3
$
2,188.5
Operating profit margin
17.7
%
10.3
%
13.0
%
15.8
%
14.2
%
Inventory and manufacturing-related charges
0.1
1.7
0.6
0.3
0.7
Intangible asset amortization
7.3
7.4
7.9
6.9
7.3
Intangible asset impairment
-
3.5
-
-
0.9
Quality remediation
1.0
1.2
1.1
1.1
1.1
Restructuring and other cost reduction initiatives
0.2
0.3
0.3
1.6
0.6
Acquisition, integration and related
0.3
0.3
(0.1)
0.2
0.2
Litigation
(0.1)
0.4
2.3
0.8
0.8
Litigation settlement gain
(1.2)
-
-
-
(0.3)
European Union Medical Device Regulation
0.1
0.3
0.6
0.6
0.4
Other charges
1.2
2.0
0.8
1.7
1.5
Adjusted operating profit margin
26.6
%
27.4
%
26.5
%
29.0
%
27.4
%
ZIMMER BIOMET HOLDINGS, INC.
Reconciliation of Operating Profit (Loss) & Margin to Adjusted Operating Profit (Loss) & Margin
For the Quarterly and Year-to-Date Periods in Calendar Year Ending December 31, 2018
(in millions, unaudited)
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
Year Ended
March 31, 2018
June 30, 2018
September 30, 2018
December 31, 2018
December 31, 2018
Operating profit (loss)
$
305.0
$
296.0
$
223.3
$
(790.5)
$
33.8
Inventory and manufacturing-related charges
7.2
12.5
5.0
7.8
32.5
Intangible asset amortization
150.8
149.5
147.6
148.0
595.9
Goodwill and intangible asset impairment
-
-
3.8
975.9
979.7
Quality remediation
46.2
45.4
34.2
39.6
165.4
Restructuring and other cost reduction initiatives
5.1
10.2
9.4
9.5
34.2
Acquisition, integration and related
40.9
40.3
8.0
10.3
99.5
Litigation
5.7
(4.2)
14.0
170.5
186.0
European Union Medical Device Regulation
0.3
0.5
0.8
2.1
3.7
Other charges
10.6
11.3
24.9
32.8
79.6
Adjusted operating profit
$
571.8
$
561.5
$
471.0
$
606.0
$
2,210.3
Operating profit (loss) margin
15.1
%
14.7
%
12.2
%
(38.2)
%
0.4
%
Inventory and manufacturing-related charges
0.4
0.6
0.3
0.4
0.4
Intangible asset amortization
7.5
7.4
8.0
7.1
7.5
Goodwill and intangible asset impairment
-
-
0.2
47.1
12.4
Quality remediation
2.3
2.3
1.9
1.9
2.1
Restructuring and other cost reduction initiatives
0.3
0.5
0.5
0.5
0.4
Acquisition, integration and related
2.0
2.0
0.4
0.5
1.3
Litigation
0.3
(0.2)
0.8
8.2
2.3
European Union Medical Device Regulation
-
-
-
0.1
-
Other charges
0.4
0.7
1.3
1.7
1.1
Adjusted operating profit margin
28.3
%
28.0
%
25.6
%
29.3
%
27.9
%
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Zimmer Biomet Holdings Inc. published this content on 04 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 February 2020 11:58:01 UTC
Zimmer Biomet Holdings, Inc. specializes in designing, manufacturing, and selling orthopedic and dental reconstruction implants, spinal implants, and traumatology products. Net sales break down by family of products as follows:
- reconstruction implants (57.5%): knees replacement (58.8% of net sales), hips replacement (41.2%);
- surgical products and traumatology equipment (22.1%);
- dental, spinal and craniomaxillofacial implants (12.8%);
- other (7.6%): primarily orthopedic surgery materials and instruments used during post-operative rehabilitation.
At the end of 2021, the group had approximately 30 production sites worldwide.
Net sales are distributed geographically as follows: Americas (61.3%), Europe/Middle East/Africa (21.3%) and Asia/Pacific (17.4%).
ZIMMER BIOMET HOLDINGS, INC. 
