- Accelerated fourth quarter sales growth to 7.6%, organic growth* of 14.3%
- Appointed
Rob Claypoole as President and Chief Executive Officer, bringing more than 20 years of leadership experience in the global medical device industry - Provides full-year 2024 financial guidance reflecting enhanced revenue growth and improved execution
“We returned to revenue growth, significantly improved adjusted EBITDA, and further enhanced our liquidity position as a result of our team’s strong execution in the fourth quarter of 2023,” commented
Fourth Quarter 2023 Financial Results
For the fourth quarter, worldwide revenue totaled
The Company also reported a fourth quarter net loss from continuing operations of
Loss per share of Class A common stock from continuing operations was
Full-Year 2023 Financial Results
Bioventus’ full-year 2023 worldwide revenue totaled
The Company also reported a full-year 2023 net loss from continuing operations of
Loss per share of Class A common stock from continuing operations was
Revenue By Business
The following tables represent net sales by geographic region and by business, for the three and twelve months of 2023 and 2022, respectively:
Three Months Ended | Change as Reported | Constant Currency* Change | |||||||||||||
$ | % | % | |||||||||||||
Pain Treatments | $ | 52,926 | $ | 41,891 | $ | 11,035 | 26.3 | % | |||||||
Restorative Therapies | 27,664 | 31,739 | (4,075 | ) | (12.8 | %) | |||||||||
Surgical Solutions | 38,218 | 34,942 | 3,276 | 9.4 | % | ||||||||||
Total | 118,808 | 108,572 | 10,236 | 9.4 | % | ||||||||||
International | |||||||||||||||
Pain Treatments | 6,218 | 6,367 | (149 | ) | (2.3 | %) | (6.3 | %) | |||||||
Restorative Therapies | 4,546 | 6,490 | (1,944 | ) | (30.0 | %) | (31.4 | %) | |||||||
Surgical Solutions | 5,851 | 4,405 | 1,446 | 32.8 | % | 32.9 | % | ||||||||
16,615 | 17,262 | (647 | ) | (3.7 | %) | (6.0 | %) | ||||||||
Total net sales | $ | 135,423 | $ | 125,834 | $ | 9,589 | 7.6 | % | 7.3 | % |
Year Ended | Change as Reported | Constant Currency* Change | |||||||||||||
$ | % | % | |||||||||||||
Pain Treatments | $ | 197,954 | $ | 194,830 | $ | 3,124 | 1.6 | % | |||||||
Restorative Therapies | 116,851 | 134,214 | (17,363 | ) | (12.9 | %) | |||||||||
Surgical Solutions | 135,055 | 126,207 | 8,848 | 7.0 | % | ||||||||||
Total | 449,860 | 455,251 | (5,391 | ) | (1.2 | %) | |||||||||
International | |||||||||||||||
Pain Treatments | 22,847 | 21,495 | 1,352 | 6.3 | % | 5.3 | % | ||||||||
Restorative Therapies | 20,222 | 20,420 | (198 | ) | (1.0 | %) | (0.7 | %) | |||||||
Surgical Solutions | 19,416 | 14,951 | 4,465 | 29.9 | % | 30.3 | % | ||||||||
62,485 | 56,866 | 5,619 | 9.9 | % | 9.7 | % | |||||||||
Total net sales | $ | 512,345 | $ | 512,117 | $ | 228 | — | % | — | % |
2023 Business Highlights
- Driving improved execution and disciplined cost management throughout the year that resulted in a 29.5% increase in adjusted EBITDA for 2023. Revenue performance included double-digit volume growth in Pain Treatments and managing the pricing impact following a Medicare reimbursement methodology change implemented in
July 2022 . - Simplifying its portfolio, enabling greater focus on execution, and enhancing liquidity through the divestiture of its Wound Business in the second quarter of 2023.
- Enhancing its liquidity position and significantly reducing its total net leverage ratio from the end of last year through reducing its debt obligations by
$23.2 million and accelerating EBITDA. - Amending its Credit and Guaranty Agreement in early
January 2024 with enhanced terms to provide additional covenant flexibility expected through the third quarter 2025.
2024 Financial Guidance
- Net sales of
$520 million to$535 million - Adjusted EBITDA* of
$89 million to$94 million - Non-GAAP EPS* of
$0.12 to$0.20
The Company does not provide
About
Fourth Quarter 2023 Earnings Conference Call:
Management will host a conference call to discuss the Company’s financial results and provide a business update, with a question and answer session, at
A live webcast of the call and any accompanying materials will also be provided on the investor relations section of the Company's website at https://ir.bioventus.com/.
The webcast will be archived on the Company’s website at https://ir.bioventus.com/ and available for replay until
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements concerning our future financial results and liquidity; the impact of our recent amendment to our Credit and Guaranty Agreement on our financial condition, operations, and liquidity; our business strategy, position and operations; and expected sales trends, opportunities, market position and growth. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause our actual results to differ materially from those contemplated in this press release include, but are not limited to the risk that if we are unable to meet our current operating projections or secure other sources of liquidity, substantial doubt about our ability to continue as a going concern may arise; the risk that we might not meet certain of our debt covenants under our Credit and Guaranty Agreement and might be required to repay our indebtedness; risks associated with the disposition of our Wound Business and expected impacts on our business; restrictions on operations and other costs associated with our indebtedness; our ability to complete acquisitions or successfully integrate new businesses, products or technologies in a cost-effective and non-disruptive manner; we maintain cash at financial institutions, often in balance that exceed federally insured limits; we are subject to securities class action litigation and may be subject to similar or other litigation in the future, which will require significant management time and attention, result in significant legal expenses and may result in unfavorable outcomes; our ability to maintain our competitive position depends on our ability to attract, retain and motivate our senior management team and highly qualified personnel; we are highly dependent on a limited number of products; our long-term growth depends on our ability to develop, acquire and commercialize new products, line extensions or expanded indications; we may be unable to successfully commercialize newly developed or acquired products or therapies in
Consolidated balance sheets As of December 31, 2023 and (Amounts in thousands, except share amounts) (unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 36,964 | $ | 30,186 | |||
Accounts receivable, net | 122,789 | 136,295 | |||||
Inventory | 91,333 | 84,766 | |||||
Prepaid and other current assets | 16,913 | 18,551 | |||||
Current assets attributable to discontinued operations | — | 2,777 | |||||
Total current assets | 267,999 | 272,575 | |||||
Property and equipment, net | 36,605 | 27,456 | |||||
7,462 | 7,462 | ||||||
Intangible assets, net | 482,350 | 639,851 | |||||
Operating lease assets | 13,353 | 16,690 | |||||
Investment and other assets | 3,141 | 2,621 | |||||
Long-term assets attributable to discontinued operations | — | 405,994 | |||||
Total assets | $ | 810,910 | $ | 1,372,649 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 23,038 | $ | 36,697 | |||
Accrued liabilities | 119,795 | 111,570 | |||||
Current portion of long-term debt | 27,848 | 33,056 | |||||
Other current liabilities | 4,816 | 3,607 | |||||
Current liabilities attributable to discontinued operations | — | 119,087 | |||||
Total current liabilities | 175,497 | 304,017 | |||||
Long-term debt, less current portion | 366,998 | 385,010 | |||||
Deferred income taxes | 1,213 | 2,248 | |||||
Contingent consideration | 18,150 | 17,431 | |||||
Other long-term liabilities | 27,934 | 22,810 | |||||
Long-term liabilities attributable to discontinued operations | — | 228,911 | |||||
Total liabilities | 589,792 | 960,427 | |||||
Stockholders’ Equity: | |||||||
Preferred stock, | |||||||
Class A common stock, | 63 | 62 | |||||
Class B common stock, | 16 | 16 | |||||
Additional paid-in capital | 494,254 | 490,576 | |||||
Accumulated deficit | (321,536 | ) | (165,306 | ) | |||
Accumulated other comprehensive income (loss) | 794 | (110 | ) | ||||
Total stockholders’ equity attributable to | 173,591 | 325,238 | |||||
Noncontrolling interest | 47,527 | 86,984 | |||||
Total stockholders’ equity | 221,118 | 412,222 | |||||
Total liabilities and stockholders’ equity | $ | 810,910 | $ | 1,372,649 | |||
Consolidated statements of operations and comprehensive loss (Amounts in thousands, except share and per share data) (unaudited) | |||||||||||||||
Three Months Ended(1) | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net sales | $ | 135,423 | $ | 125,834 | $ | 512,345 | $ | 512,117 | |||||||
Cost of sales (including depreciation and amortization of and | 49,122 | 51,645 | 184,152 | 181,037 | |||||||||||
Gross profit | 86,301 | 74,189 | 328,193 | 331,080 | |||||||||||
Selling, general and administrative expense | 78,357 | 77,435 | 303,879 | 332,134 | |||||||||||
Research and development expense | 3,262 | 5,946 | 13,446 | 23,854 | |||||||||||
Restructuring costs | (71 | ) | 4,620 | 840 | 6,779 | ||||||||||
Change in fair value of contingent consideration | 290 | 282 | 719 | 1,102 | |||||||||||
Depreciation and amortization | 2,102 | 1,543 | 8,842 | 9,748 | |||||||||||
Impairment of assets | — | — | 78,615 | — | |||||||||||
Impairment of goodwill | — | — | — | 124,697 | |||||||||||
Loss on disposals | 1,196 | — | 3,577 | — | |||||||||||
Operating income (loss) | 1,165 | (15,637 | ) | (81,725 | ) | (167,234 | ) | ||||||||
Interest expense, net | 10,280 | 7,389 | 40,676 | 12,021 | |||||||||||
Other (income) expense | (709 | ) | 9,414 | (1,290 | ) | 9,770 | |||||||||
Other expense | 9,571 | 16,803 | 39,386 | 21,791 | |||||||||||
Loss before income taxes | (8,406 | ) | (32,440 | ) | (121,111 | ) | (189,025 | ) | |||||||
Income tax (benefit) expense, net | (750 | ) | 2,975 | 85 | (44,374 | ) | |||||||||
Net loss from continuing operations | (7,656 | ) | (35,415 | ) | (121,196 | ) | (144,651 | ) | |||||||
Loss from discontinued operations, net of tax | — | (9,458 | ) | (74,429 | ) | (68,740 | ) | ||||||||
Net loss | (7,656 | ) | (44,873 | ) | (195,625 | ) | (213,391 | ) | |||||||
Loss attributable to noncontrolling interest - continuing operations | 1,560 | 11,069 | 24,458 | 40,732 | |||||||||||
Loss attributable to noncontrolling interest - discontinued operations | — | 1,874 | 14,937 | 13,955 | |||||||||||
Net loss attributable to | $ | (6,096 | ) | $ | (31,930 | ) | $ | (156,230 | ) | $ | (158,704 | ) | |||
Loss per share of Class A common stock: | |||||||||||||||
Basic and Diluted from continuing operations | $ | (0.10 | ) | $ | (0.40 | ) | $ | (1.54 | ) | $ | (1.70 | ) | |||
Basic and Diluted from discontinued operations | — | (0.12 | ) | (0.95 | ) | (0.89 | ) | ||||||||
Loss per share of Class A common stock | $ | (0.10 | ) | $ | (0.52 | ) | $ | (2.49 | ) | $ | (2.59 | ) | |||
Weighted-average shares of Class A common stock outstanding: | |||||||||||||||
Basic and diluted | 63,101,172 | 61,931,586 | 62,647,554 | 61,389,107 | |||||||||||
(1) The three months ended
Consolidated condensed statements of cash flows (Amounts in thousands) (unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
Operating activities: | |||||||||||||||
Net loss | $ | (7,656 | ) | $ | (44,873 | ) | $ | (195,625 | ) | $ | (213,391 | ) | |||
Less: Loss from discontinued operations, net of tax | — | (9,458 | ) | (74,429 | ) | (68,740 | ) | ||||||||
Loss from continuing operations | (7,656 | ) | (35,415 | ) | (121,196 | ) | (144,651 | ) | |||||||
Adjustments to reconcile net loss to net cash from operating activities: | |||||||||||||||
Depreciation and amortization | 12,465 | 16,942 | 57,365 | 55,398 | |||||||||||
Equity-based compensation | 1,775 | 3,432 | 2,722 | 17,585 | |||||||||||
Change in fair value of contingent consideration | 290 | 282 | 719 | 1,102 | |||||||||||
Change in fair value of interest rate swap | — | 22 | — | (6,396 | ) | ||||||||||
Impairments of assets | — | 10,285 | 78,615 | 134,982 | |||||||||||
Loss on disposals | 1,196 | — | 3,577 | — | |||||||||||
Deferred income taxes | 1,163 | 2,169 | (2,377 | ) | (46,658 | ) | |||||||||
Unrealized (gain) loss on foreign currency fluctuations | (732 | ) | (543 | ) | 665 | 1,383 | |||||||||
Other, net | (102 | ) | 1,538 | 604 | 5,578 | ||||||||||
Changes in working capital | 1,975 | 7,803 | (3,181 | ) | (29,730 | ) | |||||||||
Net cash from operating activities - continuing operations | 10,374 | 6,515 | 17,513 | (11,407 | ) | ||||||||||
Net cash from operating activities - discontinued operations | — | (1,271 | ) | (2,169 | ) | (2,130 | ) | ||||||||
Net cash from operating activities | 10,374 | 5,244 | 15,344 | (13,537 | ) | ||||||||||
Investing activities: | |||||||||||||||
Proceeds from sale of a business | (222 | ) | — | 34,675 | — | ||||||||||
Purchase of property and equipment | (369 | ) | (3,403 | ) | (7,362 | ) | (10,042 | ) | |||||||
Investments and acquisition of distribution rights | — | — | — | (1,478 | ) | ||||||||||
Other | — | — | — | (75 | ) | ||||||||||
Net cash from investing activities - continuing operations | (591 | ) | (3,403 | ) | 27,313 | (11,595 | ) | ||||||||
Net cash from investing activities - discontinued operations | — | — | (11,506 | ) | (104,841 | ) | |||||||||
Net cash from investing activities | (591 | ) | (3,403 | ) | 15,807 | (116,436 | ) | ||||||||
Financing activities: | |||||||||||||||
Proceeds from issuance of Class A and B common stock | 158 | 1,083 | 778 | 5,822 | |||||||||||
Tax withholdings on equity-based compensation | — | — | — | (3,352 | ) | ||||||||||
Borrowing on revolver | — | — | 64,000 | 25,000 | |||||||||||
Payment on revolver | — | — | (49,000 | ) | (25,000 | ) | |||||||||
Debt financing costs | — | — | (3,661 | ) | — | ||||||||||
Proceeds from the issuance of long-term debt, net of issuance costs | — | — | — | 79,659 | |||||||||||
Payments on long-term debt | — | (6,510 | ) | (38,264 | ) | (20,038 | ) | ||||||||
Other, net | (172 | ) | (11 | ) | (506 | ) | (15 | ) | |||||||
Net cash from financing activities | (14 | ) | (5,438 | ) | (26,653 | ) | 62,076 | ||||||||
Effect of exchange rate changes on cash | 368 | 1,052 | 629 | 521 | |||||||||||
Net change in cash, cash equivalents and restricted cash | 10,137 | (2,545 | ) | 5,127 | (67,376 | ) | |||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | 26,827 | 34,382 | 31,837 | 99,213 | |||||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 36,964 | $ | 31,837 | $ | 36,964 | $ | 31,837 | |||||||
Use of Non-GAAP Financial Measures
Organic Revenue Growth
The Company defines the term “organic revenue” as revenue in the stated period excluding the impact from business acquisitions and divestitures. The Company uses the related term “organic revenue growth” or "organic growth" to refer to the financial performance metric of comparing the stated period's organic revenue with the comparable reported revenue of the corresponding period in the prior year. The Company believes that these non-GAAP financial measures, when taken together with GAAP financial measures, allow the Company and its investors to better measure the Company’s performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company’s performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of acquisitions and divestitures because these activities can have a significant impact on the Company's reported results, which the Company believes makes comparisons of long-term performance trends difficult for management and investors.
Adjusted EBITDA, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Earnings per share of Class A Common Stock
We present Adjusted EBITDA, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Earnings per share of Class A common stock, all non-GAAP financial measures, to supplement our GAAP financial reporting, because we believe these measures are useful indicators of our operating performance.
We define Adjusted EBITDA as net loss from continuing operations before depreciation and amortization, provision of income taxes and interest expense, net, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include acquisition and related costs, impairment of goodwill, impairment of assets, restructuring and succession charges, equity compensation expense, financial restructuring costs, loss on disposal of a business and other items. See the table below for a reconciliation of net loss from continuing operations to Adjusted EBITDA. Our management uses Adjusted EBITDA principally as a measure of our operating performance and believes that Adjusted EBITDA is useful to our investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in industries similar to ours. Our management also uses Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections.
Our management uses Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expense, Non-GAAP Operating Margin and Non-GAAP Net Income principally as measures of our operating performance and believes that these non-GAAP financial measures are useful to better understand the long term performance of our core business and to facilitate comparison of our results to those of peer companies. Our management also uses these non-GAAP financial measures for planning purposes, including the preparation of our annual operating budget and financial projections.
We define Non-GAAP Gross Profit as gross profit, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization included in the cost of goods sold and acquisition and related costs in the cost of goods sold. We define Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by net sales. See the table below for a reconciliation of gross profit and gross margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin.
We define Non-GAAP Operating Income as operating income, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and related costs, impairment of goodwill, impairment of assets, restructuring and succession charges, financial restructuring costs, loss on disposal of a business and other items. Non-GAAP Operating Margin is defined as Non-GAAP Operating Income divided by net sales. See the table below for a reconciliation of operating income (loss) and operating margin to Non-GAAP Operating Income and Non-GAAP Operating Margin.
We define Non-GAAP Operating Expenses as operating expenses, adjusted to exclude certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and related costs, impairments of goodwill, impairment of assets, restructuring and succession charges, financial restructuring costs, loss on disposal of a business and other items. See the table below for a reconciliation of operating expenses to Non-GAAP Operating Expenses.
We define Non-GAAP R&D as research and development, adjusted to exclude certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and related costs, restructuring and succession charges, and other items. See the table below for a reconciliation of operating expenses to Non-GAAP R&D.
We define Non-GAAP Net Income from continuing operations as Net Income from continuing operations, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and related costs, restructuring and succession charges, impairment of goodwill, impairment of assets, financial restructuring costs, loss on disposal of a business, other items and the tax effect of adjusting items. See the table below for a reconciliation of Net loss from continuing operations to Non-GAAP Net Income from continuing operations.
We define Non-GAAP Earnings per Class A share as Earnings per Class A share, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and related costs, restructuring and succession charges, impairment of goodwill, impairment of assets, financial restructuring costs, loss on disposal of a business, other items and the tax effect of adjusting items divided by weighted average number of shares of Class A common stock outstanding during the period. See the table below for a reconciliation of loss per Class A share to Non-GAAP Earnings per Class A share.
Prior Period Recast for Discontinued Operations
On
The Company's prior period non-GAAP measures presented have been recast for the effect of the discontinued operations accounting.
Limitations of the Usefulness of Non-GAAP Measures
Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for, or as superior to, the financial information prepared and presented in accordance with GAAP. These measures might exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures. Additionally, other companies might define their non-GAAP financial measures differently than we do. Investors are encouraged to review the reconciliation of the non-GAAP measures provided in this press release, including in the tables below, to their most directly comparable GAAP measures. Additionally, the Company does not provide
Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA (unaudited) | |||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||
($, thousands) | |||||||||||||||
Net loss from continuing operations | $ | (7,656 | ) | $ | (35,415 | ) | $ | (121,196 | ) | $ | (144,651 | ) | |||
Interest expense, net | 10,280 | 7,389 | 40,676 | 12,021 | |||||||||||
Income tax (benefit) expense, net | (750 | ) | 2,975 | 85 | (44,374 | ) | |||||||||
Depreciation and amortization(a) | 12,465 | 16,942 | 57,365 | 55,398 | |||||||||||
Acquisition and related costs(b) | 1,647 | 4,303 | 5,694 | 21,731 | |||||||||||
Restructuring and succession charges(c) | 1,420 | 4,606 | 2,331 | 7,453 | |||||||||||
Equity compensation(d) | 1,775 | 3,432 | 2,722 | 17,585 | |||||||||||
Financial restructuring costs(e) | 226 | — | 7,291 | — | |||||||||||
Impairment of assets(f) | — | 10,285 | 78,615 | 10,285 | |||||||||||
Impairment of goodwill(g) | — | — | — | 124,697 | |||||||||||
Loss on disposal of a business(h) | 222 | — | 1,539 | — | |||||||||||
Other items(i) | 2,389 | 2,669 | 13,740 | 8,465 | |||||||||||
Adjusted EBITDA | $ | 22,018 | $ | 17,186 | $ | 88,862 | $ | 68,610 | |||||||
(a) Includes for the three months ended
(b) Includes acquisition and integration costs related to completed acquisitions, amortization of inventory step-up associated with acquired entities, loss on disposal of fixed assets related to acquired businesses, and changes in fair value of contingent consideration.
(c) Costs incurred were the result of adopting restructuring plans to reduce headcount, contract termination, reorganize management structure and consolidate certain facilities.
(d) Includes compensation expense resulting from awards granted under our equity-based compensation plans. The year ended
(e) Financial restructuring costs include advisory fees and debt amendment related costs.
(f) Represents a non-cash impairment charge for intangible assets attributable to our Wound Business due its divestiture during the year ended
(g) Represents a non-cash impairment charge due to the decline in the Company’s market capitalization.
(h) Represents the loss on the disposal of the Wound Business.
(i) Other items primarily includes charges associated with strategic transactions, such as potential acquisitions or divestitures, projects associated with improving business capabilities/efficiencies and costs attributable to MOTYS. During the 2022 fiscal year, prior to obtaining the results from our Phase 2 trial, we elected to discontinue the development of MOTYS to focus our resources on other priorities, including the integration of our acquisitions and our expanded R&D and product development portfolio we inherited with these acquisitions. We incurred
Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures | ||||||||||||||||||||||
Three Months Ended | Gross Profit | Operating Expenses(a) | R&D | Operating Income | Net Loss Continuing Operations | EPS from Continuing Operations(k) | ||||||||||||||||
Reported GAAP measure | $ | 86,301 | $ | 81,874 | $ | 3,262 | $ | 1,165 | $ | (7,656 | ) | $ | (0.10 | ) | ||||||||
Reported GAAP margin | 63.7 | % | 0.9 | % | ||||||||||||||||||
Depreciation and amortization(b) | 10,357 | 2,102 | 6 | 12,465 | 12,465 | 0.16 | ||||||||||||||||
Acquisition and related costs(c) | — | 1,647 | — | 1,647 | 1,647 | 0.02 | ||||||||||||||||
Restructuring and succession charges(d) | — | 1,420 | — | 1,420 | 1,420 | 0.02 | ||||||||||||||||
Financial restructuring costs(g) | — | 226 | — | 226 | 226 | — | ||||||||||||||||
Loss on disposal of a business(h) | — | 222 | — | 222 | 222 | — | ||||||||||||||||
Other items(i) | — | 2,500 | (111 | ) | 2,389 | 2,389 | 0.03 | |||||||||||||||
Tax effect of adjusting items(j) | — | — | — | — | (4,611 | ) | (0.06 | ) | ||||||||||||||
Non-GAAP measure | $ | 96,658 | $ | 73,757 | $ | 3,367 | $ | 19,534 | $ | 6,102 | $ | 0.07 | ||||||||||
Non-GAAP margin | 71.4 | % | 14.4 | % | ||||||||||||||||||
Non-GAAP Gross Margin | Non-GAAP Operating Expenses | Non-GAAP R&D | Non-GAAP Operating Income | Non-GAAP Net Income Continuing Operations | Adjusted EPS Continuing Operations |
Three Months Ended | Gross Profit | Operating Expenses(a) | R&D | Operating Loss | Net Loss Continuing Operations | EPS from Continuing Operations(k) | |||||||||||||||
Reported GAAP measure | $ | 74,189 | $ | 83,880 | $ | 5,946 | $ | (15,637 | ) | $ | (35,415 | ) | $ | (0.40 | ) | ||||||
Reported GAAP margin | 59.0 | % | (12.4 | %) | |||||||||||||||||
Depreciation and amortization(b) | 15,389 | 1,543 | 10 | 16,942 | 16,942 | 0.22 | |||||||||||||||
Acquisition and related costs(c) | — | 4,303 | — | 4,303 | 4,303 | 0.06 | |||||||||||||||
Restructuring and succession charges(d) | — | 4,606 | — | 4,606 | 4,606 | 0.06 | |||||||||||||||
Impairment of assets(e) | — | — | — | — | 10,285 | 0.13 | |||||||||||||||
Other items(i) | — | 876 | 1,793 | 2,669 | 2,669 | 0.03 | |||||||||||||||
Tax effect of adjusting items(j) | — | — | — | — | (9,635 | ) | (0.12 | ) | |||||||||||||
Non-GAAP measure | $ | 89,578 | $ | 72,552 | $ | 4,143 | $ | 12,883 | $ | (6,245 | ) | $ | (0.02 | ) | |||||||
Non-GAAP margin | 71.2 | % | 10.2 | % | |||||||||||||||||
Non-GAAP Gross Margin | Non-GAAP Operating Expenses | Non-GAAP R&D | Non-GAAP Operating Income | Non-GAAP Net Loss Continuing Operations | Adjusted EPS Continuing Operations |
Year Ended | Gross Profit | Operating Expenses(a) | R&D | Operating Loss | Net Loss Continuing Operations | EPS from Continuing Operations(k) | |||||||||||||||
Reported GAAP measure | $ | 328,193 | $ | 396,472 | $ | 13,446 | $ | (81,725 | ) | $ | (121,196 | ) | $ | (1.54 | ) | ||||||
Reported GAAP margin | 64.1 | % | (16.0 | %) | |||||||||||||||||
Depreciation and amortization(b) | 48,503 | 8,842 | 20 | 57,365 | 57,365 | 0.73 | |||||||||||||||
Acquisition and related costs(c) | — | 5,694 | — | 5,694 | 5,694 | 0.07 | |||||||||||||||
Restructuring and succession charges(d) | — | 2,331 | — | 2,331 | 2,331 | 0.03 | |||||||||||||||
Impairment of assets(e) | — | 78,615 | — | 78,615 | 78,615 | 1.00 | |||||||||||||||
Financial restructuring costs(g) | — | 7,291 | — | 7,291 | 7,291 | 0.09 | |||||||||||||||
Loss on disposal of a business(h) | — | 1,539 | — | 1,539 | 1,539 | 0.02 | |||||||||||||||
Other items(i) | — | 8,761 | 1,175 | 9,936 | 9,936 | 0.13 | |||||||||||||||
Tax effect of adjusting items(j) | — | — | — | — | (36,401 | ) | (0.51 | ) | |||||||||||||
Non-GAAP measure | $ | 376,696 | $ | 283,399 | $ | 12,251 | $ | 81,046 | $ | 5,174 | $ | 0.02 | |||||||||
Non-GAAP margin | 73.5 | % | 15.8 | % | |||||||||||||||||
Non-GAAP Gross Margin | Non-GAAP Operating Expenses | Non-GAAP R&D | Non-GAAP Operating Income | Non-GAAP Net Income Continuing Operations | Adjusted EPS Continuing Operations |
Year Ended | Gross Profit | Operating Expenses(a) | R&D | Operating Loss | Net Loss Continuing Operations | EPS from Continuing Operations(k) | |||||||||||||||
Reported GAAP measure | $ | 331,080 | $ | 474,460 | $ | 23,854 | $ | (167,234 | ) | $ | (144,651 | ) | $ | (1.70 | ) | ||||||
Reported GAAP margin | 64.6 | % | (32.7 | %) | |||||||||||||||||
Depreciation and amortization(b) | 45,622 | 9,748 | 28 | 55,398 | 55,398 | 0.72 | |||||||||||||||
Acquisition and related costs(c) | 5,607 | 16,124 | — | 21,731 | 21,731 | 0.28 | |||||||||||||||
Restructuring and succession charges(d) | — | 7,453 | — | 7,453 | 7,453 | 0.10 | |||||||||||||||
Impairment of assets(e) | — | — | — | — | 10,285 | 0.13 | |||||||||||||||
Impairment of goodwill(f) | — | 124,697 | — | 124,697 | 124,697 | 1.61 | |||||||||||||||
Other items(i) | — | 4,130 | 4,335 | 8,465 | 8,465 | 0.11 | |||||||||||||||
Tax effect of adjusting items(j) | — | — | — | — | (66,540 | ) | (1.04 | ) | |||||||||||||
Non-GAAP measure | $ | 382,309 | $ | 312,308 | $ | 19,491 | $ | 50,510 | $ | 16,838 | $ | 0.21 | |||||||||
Non-GAAP margin | 74.7 | % | 9.9 | % | |||||||||||||||||
Non-GAAP Gross Margin | Non-GAAP Operating Expenses | Non-GAAP R&D | Non-GAAP Operating Income | Non-GAAP Net Income Continuing Operations | Adjusted EPS Continuing Operations |
(a) The "Reported GAAP Measure" under the "Operating Expenses" column is a sum of all GAAP operating expense line items, excluding research and development.
(b) Includes for the three months ended
(c) Includes acquisition and integration costs related to completed acquisitions, amortization of inventory step-up associated with acquired entities, loss on disposal of fixed assets related to acquired businesses and changes in fair value of contingent consideration.
(d) Costs incurred were the result of adopting restructuring plans to reduce headcount, contract termination, reorganize management structure and to consolidate certain facilities.
(e) Represents a non-cash impairment charge for intangible assets attributable to our Wound Business due to our decision to divest the business in 2023. Represents asset impairment charges on
(f) Represents a non-cash impairment charge due to the decline in the Company’s market capitalization.
(g) Financial restructuring costs include advisory fees and debt amendment related costs.
(h) Represents the loss on disposal of the Wound Business.
(i) Other items primarily includes charges associated with strategic transactions, such as potential acquisitions or divestitures, projects associated with improving business capabilities/efficiencies and costs attributable to MOTYS. During the 2022 fiscal year, prior to obtaining the results from our Phase 2 trial, we elected to discontinue the development of MOTYS to focus our resources on other priorities, including the integration of our acquisitions and our expanded R&D and product development portfolio we inherited with these acquisitions. We incurred
(j) Includes
(k) Adjustments are pro-rated to exclude the weighted average non-controlling interest ownership of 20.0% and 20.3%, respectively, for the years ended
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investor.relations@bioventus.com
*See below under “Use of Non-GAAP Financial Measures” for more details
Source:
2024 GlobeNewswire, Inc., source