QuidelOrtho Reports First Quarter 2024 Financial Results
- Global year-over-year revenue growth of 5% as reported and 6% in constant currency, excluding COVID-19 revenue -
- Cost reduction initiatives well underway, headcount reductions expected to deliver approximately
- Company suspends 2024 financial guidance while it assesses business under new President and Chief Executive Officer -
First Quarter 2024 Results and Recent Highlights
-
Revenue was
$711 million , as reported:-
Non-respiratory revenue was flat at
$574 million compared to the prior year period, as reported and in constant currency-
Excluding the one-time third-party settlement of
$21 million in the prior year period, non-respiratory revenue grew 3% as reported and 4% on a constant currency basis
-
Excluding the one-time third-party settlement of
-
Respiratory revenue was
$137 million , a 48% decrease as reported and in constant currency, primarily due to lower COVID-19 revenue in the first quarter of 2024 compared to the prior year period-
Excluding COVID-19-related government orders of
$143 million in Q1 2023 and$7 million in Q1 2024, which are not expected to recur, respiratory revenue grew 6% as reported and in constant currency
-
Excluding COVID-19-related government orders of
-
Non-respiratory revenue was flat at
- Secured credit agreement amendment to provide additional flexibility through 2027
-
Appointed
Brian J. Blaser as President and Chief Executive Officer, effectiveMay 6, 2024
“During the first quarter, we achieved solid business performance with 6% top-line constant currency revenue growth across our global regions, excluding COVID-19 revenue,” said
First Quarter 2024
The Company reported total revenue for the first quarter of 2024 of
Adjusted diluted EPS for the first quarter of 2024 was
Fiscal Year 2024 Financial Guidance
Following the appointment of
Conference Call Information
A replay of the conference call will be available shortly after the event on the “Investor Relations” page of the Company’s website, under the “Events & Presentations” section.
About
Offering industry-leading expertise in immunoassay and molecular testing, clinical chemistry, and transfusion medicine, bringing fast, accurate and reliable diagnostics when and where they are needed – from home to hospital, lab to clinic. So that patients, clinicians and health officials can spot trends sooner, respond quicker and chart the course ahead with accuracy and confidence.
Building upon its many years of groundbreaking innovation,
For more information, please visit www.quidelortho.com.
Source:
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are any statement contained herein that is not strictly historical, including, but not limited to, QuidelOrtho’s commercial, integration, transformation and other strategic goals, future financial condition and operating results, including results of cost initiatives and operating flexibility achieved by the credit agreement amendment, and other future plans, objectives, strategies, expectations and intentions. Without limiting the foregoing, the words “may,” “will,” “would,” “should,” “might,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “goal,” “project,” “strategy,” “future,” “continue” or similar words, expressions or the negative of such terms or other comparable terminology are intended to identify forward-looking statements. Such statements are based on the beliefs and expectations of QuidelOrtho’s management as of today and are subject to significant known and unknown risks and uncertainties. Actual results or outcomes may differ significantly from those set forth or implied in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth or implied in the forward-looking statements: supply chain, production, logistics, distribution and labor disruptions and challenges; the challenges and costs of integrating, restructuring and achieving anticipated synergies as a result of the business combination of
Non-GAAP Financial Measures
This press release contains financial measures, including but not limited to “constant currency” revenue and revenue changes, “constant currency, ex-COVID-19” revenue and revenue changes, revenue ex-COVID-19, “adjusted net income,” “adjusted diluted EPS,” “adjusted EBITDA” and “adjusted EBITDA margin,” which are considered non-GAAP financial measures under applicable rules and regulations of the Commission. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with
Consolidated Statements of Operations (Unaudited) (In millions except per share data) |
||||||
|
Three Months Ended |
|||||
|
|
|
|
|||
Total revenues |
$ |
711.0 |
|
|
$ |
846.1 |
Cost of sales, excluding amortization of intangibles |
|
378.9 |
|
|
|
397.5 |
Selling, marketing and administrative |
|
204.7 |
|
|
|
202.4 |
Research and development |
|
59.2 |
|
|
|
62.3 |
Amortization of intangible assets |
|
51.7 |
|
|
|
50.8 |
Acquisition and integration costs |
|
22.6 |
|
|
|
29.7 |
|
|
1,743.9 |
|
|
|
— |
Other operating expenses |
|
8.0 |
|
|
|
3.8 |
Operating (loss) income |
|
(1,758.0 |
) |
|
|
99.6 |
Interest expense, net |
|
39.0 |
|
|
|
36.7 |
Other expense, net |
|
1.9 |
|
|
|
2.9 |
(Loss) income before income taxes |
|
(1,798.9 |
) |
|
|
60.0 |
(Benefit from) provision for income taxes |
|
(92.9 |
) |
|
|
11.2 |
Net (loss) income |
$ |
(1,706.0 |
) |
|
$ |
48.8 |
Basic (loss) earnings per share |
$ |
(25.50 |
) |
|
$ |
0.73 |
Diluted (loss) earnings per share |
$ |
(25.50 |
) |
|
$ |
0.73 |
Weighted-average shares outstanding - basic |
|
66.9 |
|
|
|
66.6 |
Weighted-average shares outstanding - diluted |
|
66.9 |
|
|
|
67.1 |
Condensed Consolidated Balance Sheets (Unaudited) (In millions) |
|||||
|
|
|
|
||
Cash and cash equivalents |
$ |
78.5 |
|
$ |
118.9 |
Marketable securities |
|
— |
|
|
48.4 |
Accounts receivable, net |
|
271.7 |
|
|
303.3 |
Inventories |
|
583.1 |
|
|
577.8 |
Prepaid expenses and other current assets |
|
279.1 |
|
|
262.1 |
Property, plant and equipment, net |
|
1,441.3 |
|
|
1,443.8 |
Marketable securities |
|
— |
|
|
7.4 |
Right-of-use assets |
|
180.5 |
|
|
169.6 |
|
|
734.8 |
|
|
2,492.0 |
Intangible assets, net |
|
2,887.3 |
|
|
2,934.3 |
Deferred tax asset |
|
24.9 |
|
|
25.9 |
Other assets |
|
222.1 |
|
|
179.6 |
Total assets |
$ |
6,703.3 |
|
$ |
8,563.1 |
|
|
|
|
||
Accounts payable |
$ |
249.6 |
|
$ |
294.8 |
Accrued payroll and related expenses |
|
108.9 |
|
|
84.8 |
Income tax payable |
|
9.5 |
|
|
11.1 |
Current portion of borrowings |
|
161.1 |
|
|
139.8 |
Other current liabilities |
|
250.7 |
|
|
303.3 |
Operating lease liabilities |
|
181.8 |
|
|
172.8 |
Long-term borrowings |
|
2,241.0 |
|
|
2,274.8 |
Deferred tax liability |
|
125.6 |
|
|
192.2 |
Other liabilities |
|
67.4 |
|
|
83.6 |
Total liabilities |
|
3,395.6 |
|
|
3,557.2 |
Total stockholders’ equity |
|
3,307.7 |
|
|
5,005.9 |
Total liabilities and stockholders’ equity |
$ |
6,703.3 |
|
$ |
8,563.1 |
Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) |
|||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
Cash (used for) provided by operating activities |
$ |
(0.7 |
) |
|
$ |
188.9 |
|
Cash used for investing activities |
|
(20.2 |
) |
|
|
(68.9 |
) |
Cash used for financing activities |
|
(18.5 |
) |
|
|
(59.6 |
) |
Effect of exchange rates on cash |
|
(1.1 |
) |
|
|
0.6 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(40.5 |
) |
|
|
61.0 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
119.5 |
|
|
|
293.9 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
79.0 |
|
|
$ |
354.9 |
|
|
|
|
|
||||
Reconciliation to amounts within the consolidated balance sheets: |
|
|
|
||||
Cash and cash equivalents |
$ |
78.5 |
|
|
$ |
353.9 |
|
Restricted cash in Other assets |
|
0.5 |
|
|
|
1.0 |
|
Cash, cash equivalents and restricted cash |
$ |
79.0 |
|
|
$ |
354.9 |
|
Reconciliation of Non-GAAP Financial Information - Adjusted Net Income (In millions, except per share data; unaudited) |
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
|
|
Diluted EPS |
|
|
|
Diluted EPS |
|||||||
Net (loss) income |
$ |
(1,706.0 |
) |
|
$ |
(25.50 |
) |
|
$ |
48.8 |
|
|
$ |
0.73 |
Adjustments: |
|
|
|
|
|
|
|
|||||||
|
|
1,743.9 |
|
|
|
|
|
— |
|
|
|
|||
Amortization of intangibles |
|
51.7 |
|
|
|
|
|
50.8 |
|
|
|
|||
Acquisition and integration costs |
|
22.6 |
|
|
|
|
|
29.7 |
|
|
|
|||
Incremental depreciation on PP&E fair value adjustment |
|
9.1 |
|
|
|
|
|
8.6 |
|
|
|
|||
Employee compensation charges |
|
5.6 |
|
|
|
|
|
— |
|
|
|
|||
Amortization of deferred cloud computing implementation costs |
|
2.9 |
|
|
|
|
|
1.6 |
|
|
|
|||
EU medical device regulation transition costs |
|
0.6 |
|
|
|
|
|
0.8 |
|
|
|
|||
Non-cash interest expense for deferred consideration |
|
— |
|
|
|
|
|
0.6 |
|
|
|
|||
Impairment of long-lived assets |
|
— |
|
|
|
|
|
0.5 |
|
|
|
|||
Other adjustments |
|
1.4 |
|
|
|
|
|
1.5 |
|
|
|
|||
Income tax impact of adjustments |
|
(101.4 |
) |
|
|
|
|
(22.1 |
) |
|
|
|||
Discrete tax items |
|
(0.6 |
) |
|
|
|
|
0.2 |
|
|
|
|||
Adjusted net income |
$ |
29.8 |
|
|
$ |
0.44 |
|
|
$ |
121.0 |
|
|
$ |
1.80 |
Weighted-average shares outstanding - diluted |
|
|
|
67.3 |
|
|
|
|
|
67.1 |
||||
Reconciliation of Non-GAAP Financial Information - Adjusted EBITDA (In millions, unaudited) |
||||||
|
Three Months Ended |
|||||
|
|
|
|
|||
Net (loss) income |
$ |
(1,706.0 |
) |
|
$ |
48.8 |
Depreciation and amortization |
|
114.9 |
|
|
|
114.2 |
Interest expense, net |
|
39.0 |
|
|
|
36.7 |
(Benefit from) provision for income taxes |
|
(92.9 |
) |
|
|
11.2 |
|
|
1,743.9 |
|
|
|
— |
Acquisition and integration costs |
|
22.6 |
|
|
|
29.7 |
Employee compensation charges |
|
5.6 |
|
|
|
— |
Amortization of deferred cloud computing implementation costs |
|
2.9 |
|
|
|
1.6 |
EU medical device regulation transition costs |
|
0.6 |
|
|
|
0.8 |
Impairment of long-lived assets |
|
— |
|
|
|
0.5 |
Tax indemnification expense |
|
— |
|
|
|
0.3 |
Other adjustments |
|
1.4 |
|
|
|
1.5 |
Adjusted EBITDA |
$ |
132.0 |
|
|
$ |
245.3 |
Revenues by Business Unit and Region (In millions, unaudited) |
||||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
% Change |
|
Currency
|
|
Constant
|
|
||||||||||||
Respiratory revenues |
$ |
137.3 |
|
|
$ |
265.6 |
|
|
(48.3 |
)% |
|
— |
% |
|
(48.3 |
)% |
|
|||||
Non-Respiratory revenues |
|
573.7 |
|
|
|
580.5 |
|
|
(1.2 |
)% |
|
(1.0 |
)% |
|
(0.2 |
)% |
|
|||||
Total revenues |
$ |
711.0 |
|
|
$ |
846.1 |
|
|
(16.0 |
)% |
|
(0.5 |
)% |
|
(15.5 |
)% |
|
|||||
COVID-19 revenue impact |
|
(50.2 |
) |
|
|
(216.1 |
) |
|
(76.8 |
)% |
|
— |
% |
|
(76.8 |
)% |
|
|||||
Total revenues ex COVID-19 revenue |
$ |
660.8 |
|
|
$ |
630.0 |
|
|
4.9 |
% |
|
(1.0 |
)% |
|
5.9 |
% |
|
|||||
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
% Change |
|
Currency
|
|
Constant
|
|
COVID-19
|
|
Constant Currency (a)
|
|||||||||
Labs |
$ |
356.9 |
|
|
$ |
370.7 |
|
|
(3.7 |
)% |
|
(0.8 |
)% |
|
(2.9 |
)% |
|
(0.6 |
)% |
|
(2.3 |
)% |
Transfusion Medicine |
|
160.3 |
|
|
|
155.9 |
|
|
2.8 |
% |
|
(1.3 |
)% |
|
4.1 |
% |
|
— |
% |
|
4.1 |
% |
Point of Care |
|
186.6 |
|
|
|
308.1 |
|
|
(39.4 |
)% |
|
(0.1 |
)% |
|
(39.3 |
)% |
|
(76.8 |
)% |
|
37.5 |
% |
|
|
7.2 |
|
|
|
11.4 |
|
|
(36.8 |
)% |
|
(0.1 |
)% |
|
(36.7 |
)% |
|
(52.0 |
)% |
|
15.3 |
% |
Total revenues |
$ |
711.0 |
|
|
$ |
846.1 |
|
|
(16.0 |
)% |
|
(0.5 |
)% |
|
(15.5 |
)% |
|
(21.4 |
)% |
|
5.9 |
% |
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
% Change |
|
Currency
|
|
Constant
|
|
COVID-19
|
|
Constant Currency (a)
|
|||||||||
|
$ |
433.9 |
|
|
$ |
582.8 |
|
|
(25.5 |
)% |
|
(0.2 |
)% |
|
(25.3 |
)% |
|
(30.1 |
)% |
|
4.8 |
% |
EMEA |
|
84.8 |
|
|
|
81.3 |
|
|
4.3 |
% |
|
0.5 |
% |
|
3.8 |
% |
|
(2.0 |
)% |
|
5.8 |
% |
|
|
76.1 |
|
|
|
70.6 |
|
|
7.8 |
% |
|
(4.3 |
)% |
|
12.1 |
% |
|
— |
% |
|
12.1 |
% |
Other |
|
116.2 |
|
|
|
111.4 |
|
|
4.3 |
% |
|
(1.6 |
)% |
|
5.9 |
% |
|
0.4 |
% |
|
5.5 |
% |
Total revenues |
$ |
711.0 |
|
|
$ |
846.1 |
|
|
(16.0 |
)% |
|
(0.5 |
)% |
|
(15.5 |
)% |
|
(21.4 |
)% |
|
5.9 |
% |
(a) |
The term “constant currency” means we have translated local currency revenues for all reporting periods to |
Revenues reconciliation to non-GAAP measures (In millions, unaudited) |
||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|||||||||
|
|
|
|
|
% Change |
|
Currency
|
|
Constant
|
|||||||
Respiratory revenues |
$ |
137.3 |
|
|
$ |
265.6 |
|
|
(48.3 |
)% |
|
— |
% |
|
(48.3 |
)% |
COVID-19-related government orders |
|
(6.7 |
) |
|
|
(142.6 |
) |
|
(95.3 |
)% |
|
— |
% |
|
(95.3 |
)% |
Respiratory Revenue ex COVID-19-related government orders |
$ |
130.6 |
|
|
$ |
123.0 |
|
|
6.2 |
% |
|
— |
% |
|
6.2 |
% |
|
Three Months Ended |
|
|
|
|
|
|
|||||||||
|
|
|
|
|
% Change |
|
Currency
|
|
Constant
|
|||||||
Non-Respiratory revenues |
$ |
573.7 |
|
|
$ |
580.5 |
|
|
(1.2 |
)% |
|
(1.0 |
)% |
|
(0.2 |
)% |
One-time third party settlement |
|
— |
|
|
|
(20.7 |
) |
|
(100.0 |
)% |
|
— |
% |
|
(100.0 |
)% |
Non-Respiratory Revenue ex One-time third party settlement |
$ |
573.7 |
|
|
$ |
559.8 |
|
|
2.5 |
% |
|
(1.0 |
)% |
|
3.5 |
% |
(a) |
The term “constant currency” means we have translated local currency revenues for all reporting periods to |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508696394/en/
Investor Contact:
Vice President, Investor Relations
IR@quidelortho.com
Media Contact:
Senior Director, Corporate Communications
media@quidelortho.com
Source: