Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 278

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 278
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 calculated by subtracting capital expenditures from net cash provided by or used in operating activities.

    Year Ended December, 31,

    (U.S. Dollars, in thousands)
     
    2024

    2023

    Change

    Net cash provided by (used in) operating activities
     
    $
    25,790

    $
    (45,753
    )
     
    $
    71,543

    Capital expenditures

    (34,876
    )

    (62,050
    )

    27,174

    Free cash flow
     
    $
    (9,086
    )
     
    $
    (107,803
    )
     
    $
    98,717

Operating Activities 

Cash flows from operating activities increased $71.5 million

•Favorable change in net loss of $25.4 million

•Favorable change of $11.4 million associated with non-cash gains and losses, such as amortization of the inventory fair value step-up recognized in the Merger, share-based compensation, inventory reserve expenses, depreciation and amortization, and gains and losses resulting from changes in fair value of certain assets and liabilities

•Favorable change of $34.7 million relating to changes in working capital accounts, primarily attributable to changes in inventories, prepaid expenses and other current assets, accounts payable, and other current liabilities

Two of our primary working capital accounts are accounts receivable and inventory. Day’s sales in receivables were 57 days at December 31, 2024, compared to 59 days at December 31, 2023 (calculated using fourth quarter net sales and ending accounts receivable). Inventory turns improved to 1.3 times at December 31, 2024, compared to 1.2 times at December 31, 2023, respectively (calculated using trailing twelve month cost of goods sold and ending net inventories).

Investing Activities 

Cash flows from investing activities increased $5.6 million 

•Decrease in spend of $27.2 million in capital expenditures and $0.4 million in other investing activities

61

•Increase of $7.4 million relating to the sale of the Neo Medical preferred equity securities

•Partially offset by a decrease of $29.4 million attributable to cash acquired as a result of the Merger in 2023

Financing Activities

Cash flows from financing activities decreased $14