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