Enovis Corp · Q4 2021 earnings

Briefing

Reported strong operating performance with EPS of $0.06 and adjusted EPS of $0.59. Achieved strong cash flow, contributing to full-year operating cash flow of $356 million and free cash flow of $277 million. Positioned for separation into two independent public companies near the end of the first quarter 2022.

Colfax Corporation reported Q4 net income from continuing operations of $10 million, or $0.06 per share, compared to $41 million, or $0.29 per share, in the prior year period. Adjusted earnings of $0.59 per share rose 16% from $0.51 in the prior year period. Sales of $1,023 million increased 24%, or 16% on an organic sales-per-day basis versus the prior year period.

• Delivered a strong quarter and year of financial results with both businesses continuing to outperform their respective markets.
• ESAB effectively executed in a period of inflationary and supply chain pressures to deliver solid growth and operating margin expansion.
• MedTech business drove double-digit organic growth versus 2020, and delivered organic growth versus 2019 despite on-going pandemic challenges.
• Both businesses are operationally and strategically well-positioned to accelerate growth and create long-term shareholder value.

Headline financials

Revenue & EPS history

Colfax expects strong sales and profit growth in 2022 for both of its businesses with typical seasonal patterns and improving business conditions as the year progresses. Enovis is projecting sales to grow 10-14% in 2022, including 6-9% from organic growth, and to generate segment-level adjusted EBITDA of $280-$300 million. ESAB is expecting 7-10% organic sales growth in 2022 with segment-level adjusted EBITDA of $455-$475 million.