Myriad Genetics, Inc. (NASDAQ: MYGN), a leader in genetic testing
and precision medicine, today announced financial results for its
fourth quarter and full-year ended December 31, 2023 and
provided its outlook on business performance for its first quarter
and full-year 2024.
“Myriad Genetics took another important step forward in 2023 as
we generated double digit revenue growth over the prior year and
achieved positive adjusted EPS in the fourth quarter. This
achievement is the result of our team’s hard work and focus on the
needs of our patients and the healthcare providers who serve them,”
said Paul J. Diaz, President and CEO, of Myriad Genetics. “We
believe 2024 will be an exciting year as we plan to continue to
accelerate our market share gains and improve reimbursement for our
products and services. We are also pleased to see the progress
advancing our Labs of the Future strategy and technology
investments, including EMR integrations, designed to enhance our
ability to serve more patients seamlessly and efficiently. At a
time, when unfortunately many other molecular diagnostic
laboratories are struggling, Myriad Genetics is growing, projecting
to be profitable on an adjusted earnings per share basis for full
year 2024, and has the financial flexibility to continue to invest
in R&D and technology innovations to achieve our Mission and
Vision to reach more patients with life-saving precision medicine.
As we look beyond 2024, we are excited about the new product
launches we expect in the second half of 2024 or early 2025
including, Foresight Universal Plus, FirstGene, Precise Tumor
(relaunch) and Liquid, and Precise MRD for research use by our
pharma partners.”
Financial and Operational Highlights:
- Test volumes of approximately 360,000 in the fourth quarter of
2023 increased 20% year-over-year and 15% year-over-year excluding
SneakPeek. Hereditary cancer and pharmacogenomics volumes grew 8%
and 21%, respectively, in the fourth quarter of 2023 compared to
the fourth quarter of 2022.
- The following table summarizes year-over-year volume changes in
the company's core product categories:
|
Three months ended December 31, |
|
|
Year ended December 31, |
|
|
2023 |
|
|
|
2023 |
|
|
Product volumes: |
|
|
|
|
|
|
|
Hereditary cancer |
|
8 |
% |
|
|
|
17 |
% |
|
Tumor profiling |
|
(2)% |
|
|
|
2 |
% |
|
Prenatal |
|
29 |
% |
|
|
|
62 |
% |
|
Prenatal, ex-SneakPeek |
|
17 |
% |
|
|
|
15 |
% |
|
Pharmacogenomics |
|
21 |
% |
|
|
|
24 |
% |
|
Total |
|
20 |
% |
|
|
|
35 |
% |
|
Total, ex-SneakPeek |
|
15 |
% |
|
|
|
18 |
% |
|
|
- The following table summarizes year-over-year revenue changes
in the company's core product categories:
|
Three months ended |
|
Twelve months ended |
(in
millions, except percentages) |
December 31, 2023 |
|
December 31, 2022 |
|
% Change |
|
December 31, 2023 |
|
December 31, 2022 |
|
% Change |
Product revenues*: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hereditary cancer |
$ |
88.9 |
|
$ |
84.9 |
|
5 |
% |
|
$ |
327.8 |
|
$ |
305.5 |
|
7 |
% |
Tumor profiling |
|
32.1 |
|
|
31.7 |
|
1 |
% |
|
|
135.6 |
|
|
128.6 |
|
5 |
% |
Prenatal |
|
40.0 |
|
|
29.1 |
|
37 |
% |
|
|
151.3 |
|
|
116.4 |
|
30 |
% |
Pharmacogenomics |
|
35.6 |
|
|
32.1 |
|
11 |
% |
|
|
138.5 |
|
|
127.6 |
|
9 |
% |
Total |
$ |
196.6 |
|
$ |
177.8 |
|
11 |
% |
|
$ |
753.2 |
|
$ |
678.1 |
|
11 |
% |
*This table
includes revenue from the company's core products and excludes the
$0.3 million of Other revenue in the twelve months ended December
31, 2022 as it was attributable to divested businesses |
- GAAP gross margins of 68.6% in the fourth quarter of 2023
decreased 100 basis points year-over-year, reflecting changes in
product and volume mix. Adjusted gross margins in the fourth
quarter of 2023 were 69.0%, a decrease of 110 basis points
year-over-year.
- GAAP operating expenses in the fourth quarter of 2023 were
$166.4 million, decreasing $9.7 million year-over-year. Adjusted
operating expenses in the fourth quarter of 2023 decreased $8.6
million year-over-year to $130.0 million, reflecting incremental
cost control measures during the fourth quarter 2023.
- GAAP operating loss in the fourth quarter of 2023 was $31.4
million, improving $20.8 million year-over-year; adjusted operating
income in the fourth quarter of 2023 was $5.7 million, improving
$19.6 million year-over-year from adjusted operating loss of $13.9
million in the fourth quarter of 2022.
- Fourth quarter 2023 GAAP cash flow from operations was $(55)
million; adjusted cash flow from operations in the fourth quarter
of 2023 was $14 million, an increase of $10 million year-over-year.
Capital expenditures and capitalization of internal use software
costs were $14 million in the fourth quarter 2023 and are expected
to moderate in 2024.
- Ended the fourth quarter of 2023 with $140.9 million in cash,
cash equivalents and marketable investment securities as compared
to $86.3 million at the beginning of the quarter. The increase was
driven primarily by the November 2023 equity offering, partly
offset by legal settlement payments and ongoing capital
expenditures.
Business Performance and Highlights:
OncologyThe Oncology business delivered revenue
of $80.2 million in the fourth quarter of 2023.
- Fourth quarter 2023 hereditary cancer testing volumes and
revenue in Oncology grew 7% and 9% year-over-year, respectively. In
addition, Prolaris fourth quarter 2023 revenue grew 14%
year-over-year.
- In February 2024, Myriad Genetics acquired select assets from
IPG's laboratory business, including the Precise™ Tumor Test, the
Precise Liquid Test, and a CLIA-certified laboratory. With this
acquisition, Myriad Genetics deepened its commitment to advancing
precision oncology care by providing comprehensive genomic
profiling options to providers that can help guide clinical care
and improve patient outcomes.
- In January 2024, Myriad Genetics appointed George Daneker Jr.,
MD, as President & Chief Clinical Officer of Oncology,
effective March 18, 2024.
- In January 2024, the American Society of Clinical Oncology
(ASCO)—Society of Surgical Oncology (SSO) updated and expanded its
guidelines regarding germline testing in patients with breast
cancer.
- Launched the Myriad Collaborative Research Registry™ (MCRR)
that includes data across germline and tumor testing results from
Myriad Genetics' cancer products on more than one million patients.
With this sizeable, well curated data, MCRR provides a powerful
interface for clinicians and researchers to access and assess
germline and tumor genetics data to ultimately advance patient
care.
Women’s HealthThe Women’s Health business
delivered revenue of $80.8 million in the fourth quarter of
2023.
- Fourth quarter 2023 hereditary cancer testing volumes in
Women's Health grew 10% year-over-year and were higher than any
prior quarter in 2023.
- Excluding the contribution from SneakPeek, prenatal testing
volumes in the fourth quarter of 2023 grew 17% year-over-year.
PharmacogenomicsIn the pharmacogenomics
category, the GeneSight test recorded revenue of $35.6 million in
the fourth quarter of 2023.
- Fourth quarter 2023 GeneSight testing volumes grew 21%
year-over-year.
- In the fourth quarter of 2023, Myriad Genetics added over 4,000
clinicians who ordered GeneSight for the first time.
- In the fourth quarter of 2023, Myriad Genetics participated in
a number of clinical conferences, such as American College of
Neuropsychopharmacology (ACNP).
Financial GuidanceMyriad Genetics does not
provide forward-looking guidance on a GAAP basis as the company is
unable to provide a quantitative reconciliation of forward-looking
non-GAAP measures to the most directly comparable forward-looking
GAAP measure, without unreasonable effort, because of the inherent
difficulty in accurately forecasting the occurrence and financial
impact of the various adjusting items necessary for such
reconciliations that have not yet occurred, are dependent on
various factors, are out of the company's control, or cannot be
reasonably predicted. Such adjustments include, but are not limited
to, real estate optimization and transformation initiatives,
certain litigation charges and loss contingencies, costs related to
acquisitions/divestitures and the related amortization, impairment
and related charges, and other adjustments. For example,
stock-based compensation may fluctuate based on the timing of
employee stock transactions and unpredictable fluctuations in the
company's stock price. Any associated estimate of these items and
its impact on GAAP performance could vary materially.
Below is a table summarizing Myriad Genetics' fiscal year 2024
financial guidance*:
(in millions, except
per share amounts and percentages) |
FY 2024 |
|
FY 2024 Comments |
|
|
|
|
|
|
|
Revenue |
$820 - $840 |
|
Raised 2024 revenue range by
$5 million for the full year. Updated revenue range reflects annual
growth of between 9% - 11% over 2023.
Q1’24
revenue expected to grow at a mid-to-high single digit percentage
rate year-over-year; and this growth rate is expected to accelerate
throughout the rest of the year. |
|
|
|
|
|
|
Gross margin % |
69.5% - 70.5% |
|
GM expected to fluctuate in
any quarter given product mix, pricing trends and seasonality.
Q1’24 GM expected to reflect typical seasonality, with Q1'24
margins lower than Q4’23 gross margins and ramping up throughout
rest of 2024. |
|
|
|
|
|
|
Adjusted OPEX |
$572 - $582 |
|
|
|
|
|
|
|
|
Adjusted EBITDA** |
$20 - $30 |
|
Introducing adjusted EBITDA in
the financial guidance table to provide additional insights into
earnings trajectory. |
|
|
|
|
|
|
Adjusted EPS*** |
$0.00 - $0.05 |
|
Q1’24 adjusted EPS expected to
be negative reflecting seasonality. |
|
* Assumes currency rates as of February 27, 2024** Adjusted
EBITDA is defined as Net Income (loss) plus income tax expense
(benefit), total other income (expense), non-cash operating
expenses, such as amortization of intangible assets, depreciation,
impairment of long-lived assets, and share-based compensation
expense, and one-time expenses such as expenses from real estate
optimization initiatives, transformation initiatives, legal
settlements, and divestitures and acquisitions.*** Full-year 2024
adjusted EPS is based on a 90 million share count.
These projections are forward-looking statements and are subject
to the risks summarized in the safe harbor statement at the end of
this press release.
Conference Call and WebcastA conference call
will be held today, Tuesday, February 27, 2024, at 4:30 p.m. EST to
discuss Myriad Genetics’ financial results and business
developments for the fourth quarter and full year 2023. A live
webcast of the conference call can be accessed on Myriad Genetics'
Investor Relations website at investor.myriad.com. To participate
in the live conference call via telephone, please register at
https://register.vevent.com/register/BI57ae456b4c754e4892c0ad52f22fdc25.
Upon registering, a dial-in number and unique PIN will be provided
to join the conference call. Following the conference call, an
archived webcast of the call will be available at
investor.myriad.com.
About Myriad GeneticsMyriad Genetics is a
leading genetic testing and precision medicine company dedicated to
advancing health and well-being for all. Myriad provides insights
that help people take control of their health and enable healthcare
providers to better detect, treat, and prevent disease. Myriad
Genetics develops and offers genetic tests that help assess the
risk of developing disease or disease progression and guide
treatment decisions across medical specialties where critical
genetic insights can significantly improve patient care and lower
healthcare costs. For more information, visit www.myriad.com.
Myriad, the Myriad logo, BRACAnalysis, BRACAnalysis CDx,
Colaris, ColarisAP, MyRisk, Myriad myRisk, MyRisk Hereditary
Cancer, myChoice, Tumor BRACAnalysis CDx, MyChoice CDx, Prequel,
Prequel with Amplify, Amplify, Foresight, Foresight Universal Plus,
Precise Tumor, Precise Oncology Solutions, Precise Liquid, Precise
MRD, FirstGene, SneakPeek, SneakPeek Early Gender DNA Test,
SneakPeek Snap, Urosuite, Mygenehistory, Health.Illuminated.,
RiskScore, Prolaris, GeneSight, and EndoPredict are registered
trademarks or trademarks of Myriad Genetics, Inc.. All third-party
marks—® and ™—are the property of their respective owners. © 2024
Myriad Genetics, Inc. All rights reserved.
Revenue by Product (Unaudited):
|
Three months ended December 31, |
(in millions, except
percentages) |
2023 |
|
2022 |
|
|
|
WH |
ONC |
PGx |
Other |
Total |
|
WH |
ONC |
PGx |
Other |
Total |
|
% Change |
Hereditary Cancer |
$40.8 |
$48.1 |
$— |
$— |
$88.9 |
|
$40.7 |
$44.2 |
$— |
$— |
$84.9 |
|
5% |
Tumor Profiling |
— |
32.1 |
— |
— |
32.1 |
|
— |
31.7 |
— |
— |
31.7 |
|
1% |
Prenatal |
40.0 |
— |
— |
— |
40.0 |
|
29.1 |
— |
— |
— |
29.1 |
|
37% |
Pharmacogenomics |
— |
— |
35.6 |
— |
35.6 |
|
— |
— |
32.1 |
— |
32.1 |
|
11% |
Total Revenue |
$80.8 |
$80.2 |
$35.6 |
$— |
$196.6 |
|
$69.8 |
$75.9 |
$32.1 |
$— |
$177.8 |
|
11% |
|
Year ended December 31, |
(in millions, except
percentages) |
2023 |
|
2022 |
|
|
|
WH |
ONC |
PGx |
Other |
Total |
|
WH |
ONC |
PGx |
Other |
Total |
|
% Change |
Hereditary Cancer |
$148.3 |
$179.5 |
$— |
$— |
$327.8 |
|
$143.1 |
$162.4 |
$— |
$— |
$305.5 |
|
7% |
Tumor Profiling |
— |
135.6 |
— |
— |
135.6 |
|
— |
128.6 |
— |
— |
128.6 |
|
5% |
Prenatal |
151.3 |
— |
— |
— |
151.3 |
|
116.4 |
— |
— |
— |
116.4 |
|
30% |
Pharmacogenomics |
— |
— |
138.5 |
— |
138.5 |
|
— |
— |
127.6 |
— |
127.6 |
|
9% |
Other |
— |
— |
— |
— |
— |
|
— |
— |
— |
0.3 |
0.3 |
|
(100)% |
Total Revenue |
$299.6 |
$315.2 |
$138.5 |
$— |
$753.2 |
|
$259.5 |
$291.1 |
$127.6 |
$0.3 |
$678.4 |
|
11% |
Business Units:WH = Women’s HealthONC = OncologyPGx =
Pharmacogenomics
Product Categories:Hereditary Cancer – MyRisk, BRACAnalysis,
BRACAnalysis CDxTumor Profiling – myChoice CDx, Prolaris,
EndoPredictPrenatal – Foresight, Prequel, SneakPeekPharmacogenomics
– GeneSight
|
MYRIAD GENETICS, INC.AND
SUBSIDIARIESConsolidated Statements of Operations(in
millions, except per share amounts) |
|
|
Three months endedDecember
31, |
|
Year endedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(unaudited) |
|
(unaudited) |
|
|
Testing revenue |
$ |
196.6 |
|
|
$ |
177.8 |
|
|
$ |
753.2 |
|
|
$ |
678.4 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of testing revenue |
|
61.6 |
|
|
|
53.9 |
|
|
|
236.2 |
|
|
|
202.0 |
|
Research and development expense |
|
21.0 |
|
|
|
23.4 |
|
|
|
88.7 |
|
|
|
85.4 |
|
Selling, general, and administrative expense |
|
145.4 |
|
|
|
146.5 |
|
|
|
572.9 |
|
|
|
514.7 |
|
Legal settlements |
|
— |
|
|
|
— |
|
|
|
112.8 |
|
|
|
— |
|
Goodwill and long-lived asset impairment charges |
|
— |
|
|
|
6.2 |
|
|
|
— |
|
|
|
16.9 |
|
Total costs and expenses |
|
228.0 |
|
|
|
230.0 |
|
|
|
1,010.6 |
|
|
|
819.0 |
|
Operating loss |
|
(31.4 |
) |
|
|
(52.2 |
) |
|
|
(257.4 |
) |
|
|
(140.6 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
|
0.7 |
|
|
|
1.0 |
|
|
|
2.5 |
|
|
|
2.6 |
|
Interest expense |
|
(0.9 |
) |
|
|
(0.9 |
) |
|
|
(2.9 |
) |
|
|
(3.2 |
) |
Other |
|
(0.7 |
) |
|
|
— |
|
|
|
(4.4 |
) |
|
|
0.6 |
|
Total other income (expense) |
|
(0.9 |
) |
|
|
0.1 |
|
|
|
(4.8 |
) |
|
|
— |
|
Loss before income tax |
|
(32.3 |
) |
|
|
(52.1 |
) |
|
|
(262.2 |
) |
|
|
(140.6 |
) |
Income tax expense
(benefit) |
|
(1.1 |
) |
|
|
(9.8 |
) |
|
|
1.1 |
|
|
|
(28.6 |
) |
Net loss |
$ |
(31.2 |
) |
|
$ |
(42.3 |
) |
|
$ |
(263.3 |
) |
|
$ |
(112.0 |
) |
Net loss per share: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.36 |
) |
|
$ |
(0.52 |
) |
|
$ |
(3.18 |
) |
|
$ |
(1.39 |
) |
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
86.1 |
|
|
|
81.5 |
|
|
|
82.8 |
|
|
|
80.6 |
|
|
MYRIAD GENETICS, INC.AND
SUBSIDIARIESConsolidated Balance Sheets(in millions,
except per share information) |
|
|
December 31, 2023 |
|
December 31,2022 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
132.1 |
|
|
$ |
56.9 |
|
Marketable investment securities |
|
8.8 |
|
|
|
58.0 |
|
Trade accounts receivable |
|
114.3 |
|
|
|
101.6 |
|
Inventory |
|
22.0 |
|
|
|
20.1 |
|
Prepaid taxes |
|
17.0 |
|
|
|
17.6 |
|
Prepaid expenses and other current assets |
|
19.4 |
|
|
|
20.4 |
|
Total current assets |
|
313.6 |
|
|
|
274.6 |
|
Operating lease right-of-use
assets |
|
61.6 |
|
|
|
103.9 |
|
Long-term marketable
investment securities |
|
— |
|
|
|
54.8 |
|
Property, plant and equipment,
net |
|
119.0 |
|
|
|
83.4 |
|
Intangibles, net |
|
349.5 |
|
|
|
379.7 |
|
Goodwill |
|
287.4 |
|
|
|
286.8 |
|
Other assets |
|
15.4 |
|
|
|
15.5 |
|
Total assets |
$ |
1,146.5 |
|
|
$ |
1,198.7 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
|
25.8 |
|
|
|
28.8 |
|
Accrued liabilities |
|
113.9 |
|
|
|
94.3 |
|
Current maturities of operating lease liabilities |
|
16.2 |
|
|
|
14.1 |
|
Total current liabilities |
|
155.9 |
|
|
|
137.2 |
|
Unrecognized tax benefits |
|
30.2 |
|
|
|
26.8 |
|
Long-term debt |
|
38.5 |
|
|
|
— |
|
Noncurrent operating lease
liabilities |
|
97.4 |
|
|
|
130.9 |
|
Other long-term
liabilities |
|
41.3 |
|
|
|
18.0 |
|
Total liabilities |
|
363.3 |
|
|
|
312.9 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.01 par value,
89.9 and 81.2 shares outstanding at December 31, 2023 and 2022,
respectively |
|
0.9 |
|
|
|
0.8 |
|
Additional paid-in capital |
|
1,415.5 |
|
|
|
1,260.1 |
|
Accumulated other comprehensive loss |
|
(3.7 |
) |
|
|
(8.9 |
) |
Accumulated deficit |
|
(629.5 |
) |
|
|
(366.2 |
) |
Total stockholders' equity |
|
783.2 |
|
|
|
885.8 |
|
Total liabilities and stockholders’ equity |
$ |
1,146.5 |
|
|
$ |
1,198.7 |
|
|
MYRIAD GENETICS, INC.AND
SUBSIDIARIESCondensed Consolidated Statements of Cash
Flows(in millions) |
|
|
Three months ended December
31, |
|
Year ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash used in operating
activities |
$ |
(54.7 |
) |
|
$ |
(7.3 |
) |
|
$ |
(110.9 |
) |
|
$ |
(106.3 |
) |
Net cash provided by (used in)
investing activities |
|
(12.0 |
) |
|
|
(35.6 |
) |
|
|
31.9 |
|
|
|
(77.5 |
) |
Net cash provided by (used in)
financing activities |
|
121.9 |
|
|
|
(2.1 |
) |
|
|
152.9 |
|
|
|
(8.0 |
) |
Effect of foreign exchange
rates on cash, cash equivalents, and restricted cash |
|
0.7 |
|
|
|
0.7 |
|
|
|
0.6 |
|
|
|
(0.6 |
) |
Net increase (decrease) in
cash, cash equivalents, and restricted cash |
|
55.9 |
|
|
|
(44.3 |
) |
|
|
74.5 |
|
|
|
(192.4 |
) |
Cash, cash equivalents, and
restricted cash at beginning of the period |
|
85.0 |
|
|
|
110.7 |
|
|
|
66.4 |
|
|
|
258.8 |
|
Cash, cash equivalents, and
restricted cash at end of the period |
$ |
140.9 |
|
|
$ |
66.4 |
|
|
$ |
140.9 |
|
|
$ |
66.4 |
|
Safe Harbor StatementThis press release
contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, including the
company's first quarter and fiscal year 2024 financial guidance,
and statements relating to the company's continuing investment in
Labs of the Future strategy and technology investments, including
EMR integrations, designed to enhance its ability to serve more
patients seamlessly and efficiently, the company's plans to
continue to accelerate its market share gains and improve
reimbursement for its products and services, the company's
financial flexibility to continue to invest in the research and
development and technology innovations to achieve its Mission and
Vision to reach more patients with life-saving precision medicine,
the company's plans to introduce a number of new products in the
second half of 2024 or early 2025, including Foresight Universal
Plus, FirstGene, Precise Tumor (relaunch), Precise Liquid, and
Precise MRD for research use by our pharma partners. These
“forward-looking statements” are management’s present expectations
of future events as of the date hereof and are subject to a number
of known and unknown risks and uncertainties that could cause
actual results, conditions, and events to differ materially and
adversely from those anticipated. These risks include, but are not
limited to: the risk that sales and profit margins of the company’s
existing tests may decline; the risk that the company may not be
able to operate its business on a profitable basis; risks related
to the company’s ability to achieve certain revenue growth targets
and generate sufficient revenue from its existing product portfolio
or in launching and commercializing new tests to be profitable;
risks related to changes in governmental or private insurers’
coverage and reimbursement levels for the company’s tests or the
company’s ability to obtain reimbursement for its new tests at
comparable levels to its existing tests; risks related to increased
competition and the development of new competing tests; the risk
that the company may be unable to develop or achieve commercial
success for additional tests in a timely manner, or at all; the
risk that the company may not successfully develop new markets or
channels for its tests; the risk that licenses to the technology
underlying the company’s tests and any future tests are terminated
or cannot be maintained on satisfactory terms; risks related to
delays or other problems with operating the company’s laboratory
testing facilities and the transition of such facilities to the
company's new laboratory testing facilities; risks related to
public concern over genetic testing in general or the company’s
tests in particular; risks related to regulatory requirements or
enforcement in the United States and foreign countries and changes
in the structure of the healthcare system or healthcare payment
systems; risks related to the company’s ability to obtain new
corporate collaborations or licenses and acquire or develop new
technologies or businesses on satisfactory terms, if at all; risks
related to the company’s ability to successfully integrate and
derive benefits from any technologies or businesses that it
licenses, acquires or develops; the risk that the company is not
able to secure additional financing to fund its business, if
needed, in a timely manner or on favorable terms, if it all; risks
related to the company’s projections or estimates about the
potential market opportunity for the company’s current and future
products; the risk that the company or its licensors may be unable
to protect or that third parties will infringe the proprietary
technologies underlying the company’s tests; the risk of
patent-infringement claims or challenges to the validity of the
company’s patents; risks related to changes in intellectual
property laws covering the company’s tests, or patents or
enforcement, in the United States and foreign countries; risks
related to security breaches, loss of data and other disruptions,
including from cyberattacks; risks of new, changing and competitive
technologies in the United States and internationally and that the
company may not be able to keep pace with the rapid technology
changes in its industry, or properly leverage new technologies to
achieve or sustain competitive advantages in its products; the risk
that the company may be unable to comply with financial or
operating covenants under the company’s credit or lending
agreements; the risk that the company may not be able to maintain
effective disclosure controls and procedures and internal control
over financial reporting; risks related to current and future
investigations, claims or lawsuits, including derivative claims,
product or professional liability claims, and risks related to the
amount of the company's insurance coverage limits and scope of
insurance coverage with respect thereto; and other factors
discussed under the heading “Risk Factors” contained in Item 1A of
the company’s Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission (SEC) on March 1, 2023, as
updated in the company's Quarterly Report on Form 10-Q filed with
the SEC on May 4, 2023, the company's Quarterly Report on Form 10-Q
filed with the SEC on August 4, 2023, and the company's Quarterly
Report on Form 10-Q filed with the SEC on November 7, 2023, as well
as any updates to those risk factors filed from time to time in the
company’s Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q or Current Reports on Form 8-K. Myriad Genetics is not under
any obligation, and it expressly disclaims any obligation, to
update or alter any forward-looking statements, whether as a result
of new information, future events or otherwise except as required
by law.
Reconciliation of Revenue to Revenue Excluding Divested
Businesses for the Three Months and Year ended December 31, 2023
and 2022(unaudited data in millions)
|
Three months ended |
|
Year ended |
|
December 31, 2023 |
|
|
December 31, 2022 |
|
December 31, 2023 |
|
|
December 31, 2022 |
Revenue Excluding
Divested Businesses |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
196.6 |
|
|
$ |
177.8 |
|
$ |
753.2 |
|
|
$ |
678.4 |
|
Autoimmune Revenues |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(0.3 |
) |
Revenue Excluding Divested
Businesses |
$ |
196.6 |
|
|
$ |
177.8 |
|
$ |
753.2 |
|
|
$ |
678.1 |
|
Statement regarding use of non-GAAP
financial measures
In this press release, the company’s financial results and
financial guidance are provided in accordance with accounting
principles generally accepted in the United States (GAAP) and using
certain non-GAAP financial measures. Management believes that
presentation of operating results using non-GAAP financial measures
provides useful supplemental information to investors and
facilitates the analysis of the company’s core operating results
and comparison of operating results across reporting periods.
Management also uses non-GAAP financial measures to establish
budgets and to manage the company’s business. A reconciliation of
the GAAP financial results to non-GAAP financial results is
included in the schedules below and a description of the
adjustments made to the GAAP financial measures is included at the
end of the schedules.
The company encourages investors to carefully consider its
results under GAAP, as well as its supplemental non-GAAP
information and the reconciliation between these presentations, to
more fully understand its business. Non-GAAP financial results are
reported in addition to, and not as a substitute for, or superior
to, financial measures calculated in accordance with GAAP.
The company does not forecast GAAP earnings per share because it
cannot predict certain elements that are included in reported GAAP
results. Please see above under “Financial Guidance”
for a full explanation.
Reconciliation of GAAP to Non-GAAP Financial
Measuresfor the Three Months and Year ended
December 31, 2023 and 2022(unaudited data in millions,
except per share amounts)
|
Three months ended December
31, |
|
Year ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted Gross
Margin |
|
|
|
|
|
|
|
GAAP Gross Profit (1) |
$ |
135.0 |
|
|
$ |
123.9 |
|
|
$ |
517.0 |
|
|
$ |
476.4 |
|
Equity compensation |
|
0.3 |
|
|
|
0.4 |
|
|
|
1.4 |
|
|
|
1.4 |
|
Acquisition - amortization of intangible assets |
|
0.4 |
|
|
|
0.2 |
|
|
|
1.4 |
|
|
|
0.2 |
|
Acquisition-related costs |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
Transformation initiatives |
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Adjusted Gross Profit |
$ |
135.7 |
|
|
$ |
124.6 |
|
|
$ |
520.0 |
|
|
$ |
478.1 |
|
Adjusted Gross Margin |
|
69.0% |
|
|
|
70.1% |
|
|
|
69.0% |
|
|
|
70.5% |
|
(1) Consists of
total revenues less cost of testing revenue and cost of other
revenue from the Consolidated Statements of Operations. |
|
|
|
|
|
|
|
|
|
Three months ended December
31, |
|
Year ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted Operating
Expenses |
|
|
|
|
|
|
|
GAAP Operating Expenses
(1) |
$ |
166.4 |
|
|
$ |
176.1 |
|
|
$ |
774.4 |
|
|
$ |
617.0 |
|
Acquisition - amortization of intangible assets |
|
(10.3 |
) |
|
|
(10.3 |
) |
|
|
(41.3 |
) |
|
|
(40.7 |
) |
Goodwill and long-lived asset impairment charges |
|
— |
|
|
|
(6.1 |
) |
|
|
— |
|
|
|
(16.8 |
) |
Equity compensation |
|
(10.0 |
) |
|
|
(7.8 |
) |
|
|
(39.2 |
) |
|
|
(36.5 |
) |
Real estate optimization |
|
(13.0 |
) |
|
|
(1.9 |
) |
|
|
(27.0 |
) |
|
|
(3.7 |
) |
Transformation initiatives |
|
— |
|
|
|
(3.7 |
) |
|
|
(6.6 |
) |
|
|
(14.1 |
) |
Acquisition-related costs |
|
— |
|
|
|
(4.8 |
) |
|
|
— |
|
|
|
(5.0 |
) |
Legal charges, net of insurance reimbursement |
|
(1.6 |
) |
|
|
(1.5 |
) |
|
|
(114.9 |
) |
|
|
11.4 |
|
Other adjustments |
|
(1.5 |
) |
|
|
(1.4 |
) |
|
|
0.1 |
|
|
|
(0.7 |
) |
Adjusted Operating
Expenses |
$ |
130.0 |
|
|
$ |
138.6 |
|
|
$ |
545.5 |
|
|
$ |
510.9 |
|
(1) Consists of
research and development expense, selling, general, and
administrative expense, and goodwill and long-lived asset
impairment charges from the Consolidated Statements of
Operations. |
|
|
|
|
|
|
|
|
|
Three months ended December
31, |
|
Year ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted Operating
Income (Loss) |
|
|
|
|
|
|
|
GAAP Operating Loss |
$ |
(31.4 |
) |
|
$ |
(52.2 |
) |
|
$ |
(257.4 |
) |
|
$ |
(140.6 |
) |
Acquisition - amortization of intangible assets |
|
10.7 |
|
|
|
10.5 |
|
|
|
42.7 |
|
|
|
40.9 |
|
Goodwill and long-lived asset impairment charges |
|
— |
|
|
|
6.1 |
|
|
|
— |
|
|
|
16.8 |
|
Equity compensation |
|
10.3 |
|
|
|
8.2 |
|
|
|
40.6 |
|
|
|
37.8 |
|
Real estate optimization |
|
13.0 |
|
|
|
1.9 |
|
|
|
27.0 |
|
|
|
3.7 |
|
Transformation initiatives |
|
— |
|
|
|
3.8 |
|
|
|
6.8 |
|
|
|
14.2 |
|
Acquisition-related costs |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
5.1 |
|
Legal charges, net of insurance reimbursement |
|
1.6 |
|
|
|
1.5 |
|
|
|
114.9 |
|
|
|
(11.4 |
) |
Other adjustments |
|
1.5 |
|
|
|
1.4 |
|
|
|
(0.1 |
) |
|
|
0.7 |
|
Adjusted Operating Income
(Loss) |
$ |
5.7 |
|
|
$ |
(13.9 |
) |
|
$ |
(25.5 |
) |
|
$ |
(32.8 |
) |
|
|
|
|
|
|
|
|
|
Three months ended December
31, |
|
Year ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted Net Income
(Loss) (1) |
|
|
|
|
|
|
|
GAAP Net Loss |
$ |
(31.2 |
) |
|
$ |
(42.3 |
) |
|
$ |
(263.3 |
) |
|
$ |
(112.0 |
) |
Acquisition - amortization of intangible assets |
|
10.7 |
|
|
|
10.5 |
|
|
|
42.7 |
|
|
|
40.9 |
|
Goodwill and long-lived asset impairment charges |
|
— |
|
|
|
6.1 |
|
|
|
— |
|
|
|
16.8 |
|
Equity compensation |
|
10.3 |
|
|
|
8.2 |
|
|
|
40.6 |
|
|
|
37.8 |
|
Real estate optimization |
|
13.0 |
|
|
|
1.9 |
|
|
|
27.0 |
|
|
|
3.7 |
|
Transformation initiatives |
|
— |
|
|
|
3.8 |
|
|
|
6.8 |
|
|
|
14.2 |
|
Acquisition-related costs |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
5.1 |
|
Legal charges, net of insurance reimbursement |
|
1.6 |
|
|
|
1.5 |
|
|
|
114.9 |
|
|
|
(11.4 |
) |
Other adjustments |
|
1.1 |
|
|
|
1.4 |
|
|
|
1.1 |
|
|
|
0.7 |
|
Tax adjustments |
|
(2.0 |
) |
|
|
(5.7 |
) |
|
|
7.6 |
|
|
|
(20.0 |
) |
Adjusted Net Income
(Loss) |
$ |
3.5 |
|
|
$ |
(9.7 |
) |
|
$ |
(22.6 |
) |
|
$ |
(24.2 |
) |
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
86.1 |
|
|
|
81.5 |
|
|
|
82.8 |
|
|
|
80.6 |
|
Diluted |
|
86.9 |
|
|
|
81.5 |
|
|
|
82.8 |
|
|
|
80.6 |
|
Adjusted Earnings (Loss) Per
Share |
|
|
|
|
|
|
|
Basic |
$ |
0.04 |
|
|
$ |
(0.12 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.30 |
) |
Diluted |
$ |
0.04 |
|
|
$ |
(0.12 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.30 |
) |
(1) To determine
Adjusted Earnings (Loss) Per Share, or adjusted EPS. |
Adjusted Free Cash Flow
Reconciliationfor the Three Months and Year Ended
December 31, 2023 and 2022(unaudited data in millions)
|
Three months ended December
31, |
|
Year ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flow from
operations |
$ |
(54.7 |
) |
|
$ |
(7.3 |
) |
|
$ |
(110.9 |
) |
|
$ |
(106.3 |
) |
Real estate optimization |
|
4.0 |
|
|
|
1.9 |
|
|
|
12.3 |
|
|
|
3.7 |
|
Transformation initiatives |
|
— |
|
|
|
3.8 |
|
|
|
6.8 |
|
|
|
14.2 |
|
Legal charges, net of insurance reimbursement |
|
63.1 |
|
|
|
— |
|
|
|
86.4 |
|
|
|
49.9 |
|
Acquisition-related costs |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
5.1 |
|
Other adjustments |
|
1.1 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
— |
|
Adjusted operating cash
flow |
$ |
13.5 |
|
|
$ |
3.3 |
|
|
$ |
(3.9 |
) |
|
$ |
(33.4 |
) |
Capital expenditures |
|
(10.0 |
) |
|
|
(14.6 |
) |
|
|
(63.2 |
) |
|
|
(45.3 |
) |
Capitalization of internal-use software costs |
|
(3.5 |
) |
|
|
— |
|
|
|
(10.1 |
) |
|
|
— |
|
Adjusted free cash flow |
$ |
— |
|
|
$ |
(11.3 |
) |
|
$ |
(77.2 |
) |
|
$ |
(78.7 |
) |
Following is a description of the adjustments made to GAAP
financial measures:
- Acquisition – amortization of intangible assets – represents
recurring amortization charges resulting from the acquisition of
intangible assets.
- Goodwill and long-lived asset impairment charges – impairment
charges on long-lived assets and goodwill.
- Equity compensation – non-cash equity-based compensation
provided to Myriad Genetics employees and directors.
- Real estate optimization – costs related to real estate
initiatives. These costs were included in the transformation
initiatives category in prior period reporting. With respect to the
adjusted free cash flow reconciliation, the cash flow effect of
real estate optimizations excludes non-cash items such as
accelerated depreciation. These costs include the following:
- For the three and twelve months ended December 31, 2023,
additional rent as a result of the build-out of our new
laboratories in Salt Lake City, Utah and in South San Francisco,
California, while maintaining our current laboratories in those
locations, and accelerated depreciation and termination costs in
connection with the company's decision to cease the use of its
former corporate headquarters in Salt Lake City, Utah.
- For the three and twelve months ended December 31, 2022,
additional rent as a result of the build-out of our new
laboratories in Salt Lake City, Utah and in South San Francisco,
California, while maintaining our current laboratories in those
locations.
- Transformation initiatives – costs related to transformation
initiatives such as:
- For the three and twelve months ended December 31, 2023,
consulting and professional fees and severance costs related to
restructuring.
- For the three and twelve months ended December 31, 2022,
consulting and professional fees.
- Acquisition-related costs - non-recurring costs associated with
our acquisition of Gateway Genomics, LLC during the three and
twelve months ended December 31, 2022.
- Legal charges, net of insurance reimbursement – one-time legal
expenses, net of insurance reimbursement. With respect to the
adjusted free cash flow reconciliation, the cash flow effect
includes cash paid for settlements in the related period. These
costs include:
- For the three and twelve months ended December 31, 2023,
primarily includes the amounts related to the $77.5 million
settlement of the securities class action lawsuit and the $34.0
million settlement of the Ravgen litigation.
- For the year ended December 31, 2022, includes the gain from
reimbursement of prior legal expenses and settlements.
- Other adjustments – other one-time non-recurring expenses
including:
- For the three and twelve months ended December 31, 2023,
primarily includes consulting and professional fees related to
acquisitions, changes in the fair value of contingent consideration
related to acquisitions from prior years, and the reclassifications
of cumulative translation adjustments to income upon liquidation of
an investment in a foreign entity.
- For the three and twelve months ended December 31, 2022,
primarily includes consulting and professional fees related to
acquisitions and changes in the fair value of contingent
consideration related to acquisitions from prior years.
- Tax adjustments – tax expense/(benefit) due to non-GAAP
adjustments, differences between stock compensation recorded for
book purposes as compared to the allowable tax deductions, and
valuation allowance recognized against federal and state deferred
tax assets in the United States.
- During the twelve months ended December 31, 2023, a valuation
allowance of $52.6 million was not recognized for non-GAAP purposes
given the company's historical and forecasted positive earnings
performance.
- As of December 31, 2022, a valuation allowance of $42.4 million
was not recognized for non-GAAP purposes given the company's
historical and forecasted positive earnings performance.
|
|
|
|
Media
Contact: |
Megan
Manzari |
Investor
Contact: |
Matt
Scalo |
|
(385) 318-3718 |
|
(801) 584-3532 |
|
megan.manzari@myriad.com |
|
matt.scalo@myriad.com |
Myriad Genetics (NASDAQ:MYGN)
過去 株価チャート
から 5 2024 まで 6 2024
Myriad Genetics (NASDAQ:MYGN)
過去 株価チャート
から 6 2023 まで 6 2024