Bioventus Inc. (Nasdaq: BVS) ("Bioventus" or "the Company"), a
global leader in innovations for active healing, today reported
financial results for the three and nine months ended
September 30, 2023.
Q3 Financial Summary:
- Net
Sales of $120.8 million, down $7.9 million, or 6.1%, year-over-year
as reported (6.3% constant currency*). Excluding revenues from
divested wound assets, underlying organic sales decreased $0.6
million, or 0.5% year-over-year
- Net
Loss from continuing operations of $8.8 million, compared to Net
Loss from continuing operations of $101.0 million in prior-year
period
-
Adjusted EBITDA* from continuing operations of $21.7 million
decreased (0.9%), compared to $21.9 million in prior-year
period
-
Loss per share of Class A common stock from continuing operations
of $0.12, compared to a loss of $1.18 in prior-year period
-
Non-GAAP earnings per share of Class A common stock from continuing
operations* of $0.05, compared to $0.18 in prior-year period
Recent Highlights:
-
Third quarter financial results exceeded expectations with improved
performance in Pain Treatments and continued cost management
-
Pain Treatments revenue advanced 3.1% driven by continued volume
gains and price pressures receding versus the prior year
-
With Adjusted EBITDA ahead of expectations in the third quarter,
continued diligent management of expenses, and improved visibility
in Pain Treatments, the Company is raising its full-year earnings
guidance
“We are pleased with our continued strong execution
in the third quarter resulting in significant increase in Adjusted
EBITDA and a return to growth for our Pain Treatments business,”
commented Tony Bihl, Bioventus’ interim chief executive officer.
“The enhanced visibility and predictability in our business,
combined with our teams’ robust performance has enabled us to raise
our full-year adjusted earnings guidance. We remain committed to
further strengthening our financial position and improving
profitability through revenue growth and spending discipline to
create value for our stakeholders.”
Third Quarter 2023 Financial
Results:
The following table represents net sales by
geographic region, and by business, for the three months ended
September 30, 2023 and October 1, 2022, respectively:
|
Three Months Ended |
|
Change as Reported |
|
Constant Currency* Change |
(in thousands, except for percentage) |
September 30, 2023 |
|
October 1, 2022 |
|
$ |
|
% |
|
% |
U.S. |
|
|
|
|
|
|
|
|
|
Pain Treatments |
$ |
48,416 |
|
$ |
47,010 |
|
$ |
1,406 |
|
|
3.0 |
% |
|
3.0 |
% |
Restorative Therapies |
|
24,855 |
|
|
38,096 |
|
|
(13,241 |
) |
|
(34.8) |
% |
|
(34.8) |
% |
Surgical Solutions |
|
32,956 |
|
|
31,182 |
|
|
1,774 |
|
|
5.7 |
% |
|
5.7 |
% |
Total U.S. net sales |
|
106,227 |
|
|
116,288 |
|
|
(10,061 |
) |
|
(8.7) |
% |
|
(8.7) |
% |
International |
|
|
|
|
|
|
|
|
|
Pain Treatments |
|
5,274 |
|
|
5,090 |
|
|
184 |
|
|
3.6 |
% |
|
0.1 |
% |
Restorative Therapies |
|
5,288 |
|
|
4,047 |
|
|
1,241 |
|
|
30.7 |
% |
|
28.8 |
% |
Surgical Solutions |
|
4,005 |
|
|
3,237 |
|
|
768 |
|
|
23.7 |
% |
|
24.2 |
% |
Total International net sales |
|
14,567 |
|
|
12,374 |
|
|
2,193 |
|
|
17.7 |
% |
|
15.6 |
% |
Total net sales |
$ |
120,794 |
|
$ |
128,662 |
|
$ |
(7,868 |
) |
|
(6.1) |
% |
|
(6.3) |
% |
Total net sales were $120.8 million for the third
quarter of 2023 compared to $128.7 million for the third quarter of
2022, a decline of 6.1%. Performance was the result of a growth in
U.S. Pain Treatments and Surgical Solutions, and double-digit
growth in International, which collectively was offset primarily by
the impact of the Wound Business divestiture in Restorative
Therapies.
Gross margin of 65.3% was down compared to prior
year gross margin of 65.7%. Non-GAAP gross margin* of 74.8%
increased from 74.5% due to higher rebate accruals in the prior
year.
Operating income improved $129.3 million to $2.4
million compared to a loss of $126.8 million in the third quarter
of 2022 driven by prior period impairments and disciplined cost
management. Operating margin was 2.0% compared to (98.6%) in the
prior year period.
Non-GAAP operating income* from continuing
operations improved $3.0 million to $20.4 million compared to $17.4
million in the prior year. Non-GAAP operating margin* was 16.9%
versus 13.5% third quarter of 2022.
Net loss from continuing operations was $8.8
million (or $0.12 per share of Class A common stock from continuing
operations) compared to a net loss of $101.0 million (or $1.76 per
share of Class A common stock from continuing operations) in the
third quarter of 2022.
Adjusted EBITDA* from continuing operations
decreased $0.2 million to $21.7 million compared to $21.9 million
in the prior year.
Non-GAAP net income and earnings per share of Class
A common stock from continuing operations* decreased to $4.7
million or $0.05 per share of Class A common stock from continuing
operations* compared to $11.4 million or $0.18 per share of Class A
common stock from continuing operations* for the prior year
period.
Balance Sheet:
As of September 30, 2023, the Company had
$26.8 million in cash and cash equivalents and $394.6 million in
debt obligations, compared to $30.2 million in cash and cash
equivalents and $418.1 million in debt obligations as of
December 31, 2022.
2023 Financial Guidance:
For the twelve months ending December 31,
2023, the Company now expects:
- Net
sales of $498 million to $505 million
-
Adjusted EBITDA* of $84 million to $87 million
- Non-GAAP EPS* of
($0.12) to ($0.09)
The Company does not provide U.S. GAAP financial
measures, other than net sales, on a forward-looking basis, because
the Company is unable to predict with reasonable certainty the
impact and timing of acquisition related expenses, accounting
fair-value adjustments, and certain other reconciling items without
unreasonable efforts. These items are uncertain, depend on various
factors, and could be material to the Company’s results computed in
accordance with U.S. GAAP.
Presentation: This press release
presents historical results, for the periods presented, of
Bioventus Inc., including Bioventus LLC, the predecessor of
Bioventus Inc. for financial reporting purposes.
About Bioventus
Bioventus delivers clinically proven,
cost-effective products that help people heal quickly and safely.
Its mission is to make a difference by helping patients resume and
enjoy active lives. The Innovations for Active Healing from
Bioventus include offerings for pain treatments, restorative
therapies and surgical solutions. Built on a commitment to high
quality standards, evidence-based medicine and strong ethical
behavior, Bioventus is a trusted partner for physicians worldwide.
For more information, visit www.bioventus.com, and follow the
Company on LinkedIn and Twitter. Bioventus and the Bioventus logo
are registered trademarks of Bioventus LLC.
Third 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 8:30 a.m. Eastern Time on
November 7, 2023. Those who would like to participate may dial
1-800-715-9871 (domestic and international) and refer to the
Bioventus Inc. Conference Call or Conference ID 4502901.
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
November 6, 2024.
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; our ability to continue as a going concern; the impact
of our recent amendment to our Credit 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 the previously identified
material weaknesses or new material weaknesses could adversely
affect our ability to report our results of operations and
financial condition accurately and in a timely manner; we might not
be able to continue to fund our operations for at least the next
twelve months as a going concern; we might not meet certain of our
debt covenants under our Credit 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 the United States; demand for our existing
portfolio of products and any new products, line extensions or
expanded indications depends on the continued and future acceptance
of our products by physicians, patients, third-party payers and
others in the medical community; the proposed down classification
of non-invasive bone growth stimulators, including our Exogen
system, by the U.S. Food and Drug Administration (FDA) could
increase future competition for bone growth stimulators and
otherwise adversely affect the Company’s sales of Exogen; failure
to achieve and maintain adequate levels of coverage and/or
reimbursement for our products or future products, the procedures
using our products, such as our hyaluronic acid (HA)
viscosupplements, or future products we may seek to commercialize;
pricing pressure and other competitive factors; governments outside
the United States might not provide coverage or reimbursement of
our products; we compete and may compete in the future against
other companies, some of which have longer operating histories,
more established products or greater resources than we do; the
reclassification of our HA products from medical devices to drugs
in the United States by the FDA could negatively impact our ability
to market these products and may require that we conduct costly
additional clinical studies to support current or future
indications for use of those products; our failure to properly
manage our anticipated growth and strengthen our brands; risks
related to product liability claims; fluctuations in demand for our
products; issues relating to the supply of our products, potential
supply chain disruptions, and the increased cost of parts and
components used to manufacture our products due to inflation; our
reliance on a limited number of third-party manufacturers to
manufacture certain of our products; if our facilities are damaged
or become inoperable, we will be unable to continue to research,
develop and manufacture certain of our products; economic
political, regulatory and other risks related to international
sales, manufacturing and operations; failure to maintain
contractual relationships; security breaches, unauthorized
disclosure of information, denial of service attacks or the
perception that confidential information in our possession is not
secure; failure of key information technology and communications
systems, process or sites; risks related to our debt and future
capital needs; failure to comply with extensive governmental
regulation relevant to us and our products; we may be subject to
enforcement action if we engage in improper claims submission
practices and resulting audits or denials of our claims by
government agencies could reduce our net sales or profits; the FDA
regulatory process is expensive, time-consuming and uncertain, and
the failure to obtain and maintain required regulatory clearances
and approvals could prevent us from commercializing our products;
if clinical studies of our future product candidates do not produce
results necessary to support regulatory clearance or approval in
the United States or elsewhere, we will be unable to expand the
indications for or commercialize these products; legislative or
regulatory reforms; our business may continue to experience adverse
impacts as a result of the COVID-19 pandemic or similar epidemics;
risks related to intellectual property matters; and the other risks
identified in our Annual Report on Form 10-K for the year ended
December 31, 2022, as updated by Bioventus' subsequent
Quarterly Reports on Form 10-Q for the quarters ended April 1, 2023
and September 30, 2023 and as may be further updated from time to
time in Bioventus’ other filings with the SEC, which are accessible
on the SEC’s website at www.sec.gov and the Investor Relations page
of Bioventus’ website at https://ir.bioventus.com. Except to the
extent required by law, the Company undertakes no obligation to
update or review any estimate, projection, or forward-looking
statement. Actual results may differ materially from those set
forth in the forward-looking statements.
BIOVENTUS INC.Consolidated balance
sheetsAs of September 30,
2023 and December 31,
2022(Amounts in thousands, except share amounts)
(unaudited) |
|
|
|
|
|
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
26,827 |
|
|
$ |
30,186 |
|
Accounts receivable, net |
|
112,899 |
|
|
|
136,295 |
|
Inventory |
|
97,563 |
|
|
|
84,766 |
|
Prepaid and other current assets |
|
12,163 |
|
|
|
18,551 |
|
Current assets attributable to discontinued operations |
|
— |
|
|
|
2,777 |
|
Total current assets |
|
249,452 |
|
|
|
272,575 |
|
Property and equipment, net |
|
39,704 |
|
|
|
27,456 |
|
Goodwill |
|
7,462 |
|
|
|
7,462 |
|
Intangible assets, net |
|
493,324 |
|
|
|
639,851 |
|
Operating lease assets |
|
14,298 |
|
|
|
16,690 |
|
Investment and other assets |
|
6,864 |
|
|
|
2,621 |
|
Long-term assets attributable to discontinued operations |
|
— |
|
|
|
405,994 |
|
Total assets |
$ |
811,104 |
|
|
$ |
1,372,649 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
17,637 |
|
|
$ |
36,697 |
|
Accrued liabilities |
|
118,896 |
|
|
|
111,570 |
|
Current portion of long-term debt |
|
19,584 |
|
|
|
33,056 |
|
Other current liabilities |
|
4,726 |
|
|
|
3,607 |
|
Current liabilities attributable to discontinued operations |
|
— |
|
|
|
119,087 |
|
Total current liabilities |
|
160,843 |
|
|
|
304,017 |
|
Long-term debt, less current portion |
|
375,033 |
|
|
|
385,010 |
|
Deferred income taxes |
|
— |
|
|
|
2,248 |
|
Contingent consideration |
|
17,860 |
|
|
|
17,431 |
|
Other long-term liabilities |
|
30,912 |
|
|
|
22,810 |
|
Long-term liabilities attributable to discontinued operations |
|
— |
|
|
|
228,911 |
|
Total liabilities |
|
584,648 |
|
|
|
960,427 |
|
Stockholders’ Equity: |
|
|
|
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0
shares issued |
|
|
|
Class A common stock, $0.001 par value, 250,000,000 shares
authorized as of September 30, 2023 and December 31,
2022, 62,964,482 and 62,063,014 shares issued and outstanding as of
September 30, 2023 and December 31, 2022,
respectively |
|
63 |
|
|
|
62 |
|
Class B common stock, $0.001 par value, 50,000,000 shares
authorized, 15,786,737 shares issued and outstanding as of
September 30, 2023 and December 31, 2022 |
|
16 |
|
|
|
16 |
|
Additional paid-in capital |
|
492,493 |
|
|
|
490,576 |
|
Accumulated deficit |
|
(315,440 |
) |
|
|
(165,306 |
) |
Accumulated other comprehensive income (loss) |
|
397 |
|
|
|
(110 |
) |
Total stockholders’ equity attributable to Bioventus Inc. |
|
177,529 |
|
|
|
325,238 |
|
Noncontrolling interest |
|
48,927 |
|
|
|
86,984 |
|
Total stockholders’ equity |
|
226,456 |
|
|
|
412,222 |
|
Total liabilities and stockholders’ equity |
$ |
811,104 |
|
|
$ |
1,372,649 |
|
BIOVENTUS INC.Consolidated statements of
operations and comprehensive
loss(Amounts in thousands, except share and per
share data, unaudited) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
Net sales |
$ |
120,794 |
|
|
$ |
128,662 |
|
|
$ |
376,922 |
|
|
$ |
386,283 |
|
Cost of sales (including depreciation and amortization of $11,506,
$11,331, $38,146, and $30,233 respectively) |
|
41,944 |
|
|
|
44,127 |
|
|
|
135,030 |
|
|
|
129,392 |
|
Gross profit |
|
78,850 |
|
|
|
84,535 |
|
|
|
241,892 |
|
|
|
256,891 |
|
Selling, general and administrative expense |
|
69,820 |
|
|
|
78,955 |
|
|
|
225,522 |
|
|
|
254,699 |
|
Research and development expense |
|
3,015 |
|
|
|
4,614 |
|
|
|
10,184 |
|
|
|
17,908 |
|
Restructuring costs |
|
(26 |
) |
|
|
575 |
|
|
|
911 |
|
|
|
2,159 |
|
Change in fair value of contingent consideration |
|
(98 |
) |
|
|
278 |
|
|
|
429 |
|
|
|
820 |
|
Depreciation and amortization |
|
2,317 |
|
|
|
2,255 |
|
|
|
6,740 |
|
|
|
8,205 |
|
Impairments of assets |
|
— |
|
|
|
124,697 |
|
|
|
78,615 |
|
|
|
124,697 |
|
Loss on disposals |
|
1,404 |
|
|
|
— |
|
|
|
2,381 |
|
|
|
— |
|
Operating income (loss) |
|
2,418 |
|
|
|
(126,839 |
) |
|
|
(82,890 |
) |
|
|
(151,597 |
) |
Interest expense, net |
|
10,115 |
|
|
|
3,604 |
|
|
|
30,396 |
|
|
|
4,632 |
|
Other expense (income) |
|
494 |
|
|
|
115 |
|
|
|
(581 |
) |
|
|
356 |
|
Other expense |
|
10,609 |
|
|
|
3,719 |
|
|
|
29,815 |
|
|
|
4,988 |
|
Loss before income taxes |
|
(8,191 |
) |
|
|
(130,558 |
) |
|
|
(112,705 |
) |
|
|
(156,585 |
) |
Income tax expense (benefit), net |
|
600 |
|
|
|
(29,523 |
) |
|
|
835 |
|
|
|
(33,411 |
) |
Net loss from continuing operations |
|
(8,791 |
) |
|
|
(101,035 |
) |
|
|
(113,540 |
) |
|
|
(123,174 |
) |
Loss from discontinued operations, net of tax |
|
— |
|
|
|
(44,663 |
) |
|
|
(74,429 |
) |
|
|
(45,344 |
) |
Net loss |
|
(8,791 |
) |
|
|
(145,698 |
) |
|
|
(187,969 |
) |
|
|
(168,518 |
) |
Loss attributable to noncontrolling interest - continuing
operations |
|
1,488 |
|
|
|
28,202 |
|
|
|
22,898 |
|
|
|
32,493 |
|
Loss attributable to noncontrolling interest - discontinued
operations |
|
— |
|
|
|
9,251 |
|
|
|
14,937 |
|
|
|
9,251 |
|
Net loss attributable to Bioventus Inc. |
$ |
(7,303 |
) |
|
$ |
(108,245 |
) |
|
$ |
(150,134 |
) |
|
$ |
(126,774 |
) |
|
|
|
|
|
|
|
|
Net loss from continuing operations |
$ |
(8,791 |
) |
|
$ |
(101,035 |
) |
|
$ |
(113,540 |
) |
|
$ |
(123,174 |
) |
Other comprehensive (loss) income, net of tax |
|
|
|
|
|
|
|
Change in foreign currency translation adjustments |
|
(324 |
) |
|
|
(723 |
) |
|
|
636 |
|
|
|
(1,912 |
) |
Comprehensive loss |
|
(9,115 |
) |
|
|
(101,758 |
) |
|
|
(112,904 |
) |
|
|
(125,086 |
) |
Comprehensive loss attributable to noncontrolling interest -
continuing operations |
|
1,554 |
|
|
|
28,349 |
|
|
|
22,769 |
|
|
|
32,886 |
|
Comprehensive loss attributable to noncontrolling interest -
discontinued operations |
|
— |
|
|
|
9,251 |
|
|
|
14,937 |
|
|
|
9,251 |
|
Comprehensive loss attributable to Bioventus Inc. |
$ |
(7,561 |
) |
|
$ |
(64,158 |
) |
|
$ |
(75,198 |
) |
|
$ |
(82,949 |
) |
|
|
|
|
|
|
|
|
Loss per share of Class A common stock from continuing operations,
basic and diluted: |
$ |
(0.12 |
) |
|
$ |
(1.18 |
) |
|
$ |
(1.45 |
) |
|
$ |
(1.48 |
) |
Loss per share of Class A common stock from discontinued
operations, basic and diluted: |
|
— |
|
|
|
(0.58 |
) |
|
|
(0.95 |
) |
|
|
(0.59 |
) |
Loss per share of Class A common stock, basic and diluted |
$ |
(0.12 |
) |
|
$ |
(1.76 |
) |
|
$ |
(2.40 |
) |
|
$ |
(2.07 |
) |
Weighted-average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
62,824,318 |
|
|
|
61,674,254 |
|
|
|
62,494,686 |
|
|
|
61,208,941 |
|
|
|
|
|
|
|
|
|
BIOVENTUS INC.Consolidated condensed
statements of cash flows(Amounts in thousands,
unaudited) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
Operating activities: |
|
|
|
|
|
|
|
Net loss |
$ |
(8,791 |
) |
|
$ |
(145,698 |
) |
|
$ |
(187,969 |
) |
|
$ |
(168,518 |
) |
Less: Loss from discontinued operations, net of tax |
|
— |
|
|
|
(44,663 |
) |
|
|
(74,429 |
) |
|
|
(45,344 |
) |
Loss from continuing operations |
|
(8,791 |
) |
|
|
(101,035 |
) |
|
|
(113,540 |
) |
|
|
(123,174 |
) |
Adjustments to reconcile net loss to net cash from operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
13,827 |
|
|
|
13,593 |
|
|
|
44,900 |
|
|
|
38,456 |
|
Equity based compensation |
|
1,833 |
|
|
|
4,648 |
|
|
|
947 |
|
|
|
14,153 |
|
Change in fair value of contingent consideration |
|
(98 |
) |
|
|
278 |
|
|
|
429 |
|
|
|
820 |
|
Change in fair value of interest rate swap |
|
— |
|
|
|
(2,222 |
) |
|
|
— |
|
|
|
(6,418 |
) |
Impairment of assets |
|
— |
|
|
|
124,697 |
|
|
|
78,615 |
|
|
|
124,697 |
|
Deferred income taxes |
|
— |
|
|
|
(7,191 |
) |
|
|
(3,540 |
) |
|
|
(34,889 |
) |
Unrealized loss on foreign currency fluctuations |
|
796 |
|
|
|
906 |
|
|
|
1,397 |
|
|
|
1,926 |
|
Loss on disposals |
|
1,404 |
|
|
|
— |
|
|
|
2,381 |
|
|
|
— |
|
Other, net |
|
(1,073 |
) |
|
|
1,127 |
|
|
|
706 |
|
|
|
4,040 |
|
Changes in working capital |
|
(16,213 |
) |
|
|
(34,643 |
) |
|
|
(5,156 |
) |
|
|
(37,533 |
) |
Net cash from operating activities - continuing operations |
|
(8,315 |
) |
|
|
158 |
|
|
|
7,139 |
|
|
|
(17,922 |
) |
Net cash from operating activities - discontinued operations |
|
— |
|
|
|
(859 |
) |
|
|
(2,169 |
) |
|
|
(859 |
) |
Net cash from operating activities |
|
(8,315 |
) |
|
|
(701 |
) |
|
|
4,970 |
|
|
|
(18,781 |
) |
Investing activities: |
|
|
|
|
|
|
|
Proceeds from sale of a business |
|
— |
|
|
|
— |
|
|
|
34,897 |
|
|
|
— |
|
Purchase of property and equipment |
|
(2,036 |
) |
|
|
(1,649 |
) |
|
|
(6,993 |
) |
|
|
(6,639 |
) |
Investments and acquisition of distribution rights |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,478 |
) |
Other |
|
— |
|
|
|
156 |
|
|
|
— |
|
|
|
(75 |
) |
Net cash from investing activities - continuing operations |
|
(2,036 |
) |
|
|
(1,493 |
) |
|
|
27,904 |
|
|
|
(8,192 |
) |
Net cash from investing activities - discontinued operations |
|
— |
|
|
|
(54,841 |
) |
|
|
(11,506 |
) |
|
|
(104,841 |
) |
Net cash from investing activities |
|
(2,036 |
) |
|
|
(56,334 |
) |
|
|
16,398 |
|
|
|
(113,033 |
) |
Financing activities: |
|
|
|
|
|
|
|
Proceeds from issuance of Class A common stock |
|
397 |
|
|
|
482 |
|
|
|
620 |
|
|
|
4,739 |
|
Tax withholdings on equity-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,352 |
) |
Proceeds from the issuance of long-term debt, net of issuance
costs |
|
— |
|
|
|
79,659 |
|
|
|
— |
|
|
|
79,659 |
|
Borrowing on revolver |
|
15,000 |
|
|
|
— |
|
|
|
64,000 |
|
|
|
25,000 |
|
Payment on revolver |
|
(7,000 |
) |
|
|
(25,000 |
) |
|
|
(49,000 |
) |
|
|
(25,000 |
) |
Debt refinancing costs |
|
— |
|
|
|
— |
|
|
|
(3,661 |
) |
|
|
— |
|
Payments on long-term debt |
|
— |
|
|
|
(4,509 |
) |
|
|
(38,264 |
) |
|
|
(13,528 |
) |
Other, net |
|
(168 |
) |
|
|
22 |
|
|
|
(334 |
) |
|
|
(4 |
) |
Net cash from financing activities |
|
8,229 |
|
|
|
50,654 |
|
|
|
(26,639 |
) |
|
|
67,514 |
|
Effect of exchange rate changes on cash |
|
(440 |
) |
|
|
(238 |
) |
|
|
261 |
|
|
|
(531 |
) |
Net change in cash, cash equivalents and restricted
cash |
|
(2,562 |
) |
|
|
(6,619 |
) |
|
|
(5,010 |
) |
|
|
(64,831 |
) |
Cash, cash equivalents and restricted cash at the beginning
of the period |
|
29,389 |
|
|
|
41,001 |
|
|
|
31,837 |
|
|
|
99,213 |
|
Cash, cash equivalents and restricted cash at the end of
the period |
$ |
26,827 |
|
|
$ |
34,382 |
|
|
$ |
26,827 |
|
|
$ |
34,382 |
|
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” 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 Expense, Non-GAAP Operating Margin, Non-GAAP R&D,
Non-GAAP Net Income from continuing operations, and Non-GAAP
Earnings per share of Class A Common Stock from continuing
operations
We present Adjusted EBITDA, Non-GAAP Gross Profit,
Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP
Operating Expense, Non-GAAP Operating Margin, Non-GAAP R&D,
Non-GAAP Net Income from continuing operations, and Non-GAAP
Earnings per share of Class A common stock from continuing
operations, all non-GAAP financial measures, to supplement our GAAP
financial reporting, because we believe these measures are useful
indicators of our operating performance. Beginning in the first
quarter of 2023, we revised our presentation of Non-GAAP measures
to remove the foreign exchange adjustment and include financial
restructuring costs. The prior year has been recast to conform to
the current period.
We define Adjusted EBITDA as net loss from
continuing operations before depreciation and amortization,
provision of income taxes and interest expense (income), 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,
impairments of goodwill, impairment of assets, restructuring and
succession charges, equity compensation expense, financial
restructuring costs and other items. See the table below for a
reconciliation of net (loss) income 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 from
continuing operations 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, impairments of
goodwill, impairment of assets, restructuring and succession
charges, loss on disposals, financial restructuring costs, 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 (loss) income and operating margin to
Non-GAAP Operating Income and Non-GAAP Operating Margin.
We define Non-GAAP Operating Expense 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, loss on disposals, restructuring
and succession charges, financial restructuring costs 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, impairments of
goodwill, impairment of assets, loss on disposals, financial
restructuring costs, other items and the tax effect of adjusting
items. See the table below for a reconciliation of Net (Loss)
Income from continuing operations to Non-GAAP Net Income from
continuing operations.
We define Non-GAAP Earnings per Class A share from
continuing operations 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, impairments of
goodwill, impairment of assets, loss on disposals, financial
restructuring costs, 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.
Net Sales, International Net Sales Growth
and Constant Currency Basis
Net Sales, International Net Sales Growth and
Constant Currency Basis are non-GAAP measures, which are calculated
by translating current and prior year results at the same foreign
currency exchange rate. Constant currency can be presented for
numerous GAAP measures, but is most commonly used by management to
facilitate the comparison sales in foreign currencies to prior
periods and analyze net sales performance without the impact of
changes in foreign currency exchange rates.
Prior Period Recast for Discontinued
Operations
On February 27, 2023, the Company ceased to
control CartiHeal for accounting purposes, and therefore,
deconsolidated CartiHeal effective February 27, 2023. CartiHeal was
part of the Company’s international reporting segment. The Company
treated the deconsolidation of CartiHeal as a discontinued
operation. Refer to Note 3. Acquisitions and divestitures and Note
14. Discontinued operations in the Company's Form 10-Q for the
period ended September 30, 2023, filed on November 7, 2023, for
further details regarding the deconsolidation of CartiHeal.
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 U.S. GAAP financial
measures on a forward-looking basis because the Company is unable
to predict with reasonable certainty the impact and timing of
acquisitions related expenses, accounting fair-value adjustments
and certain other reconciling items without unreasonable efforts.
These items are uncertain, depend on various factors, and could be
material to the Company’s results computed in accordance with U.S.
GAAP.
Reconciliation of Net (Loss) Income from Continuing
Operations to Adjusted EBITDA (unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Twelve Months Ended |
($, thousands) |
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
|
December 31, 2022 |
Net loss from continuing operations |
$ |
(8,791 |
) |
|
$ |
(101,035 |
) |
|
$ |
(113,540 |
) |
|
$ |
(123,174 |
) |
|
$ |
(153,371 |
) |
Interest expense, net |
|
10,115 |
|
|
|
3,604 |
|
|
|
30,396 |
|
|
|
4,632 |
|
|
|
12,021 |
|
Income tax expense (benefit), net |
|
600 |
|
|
|
(29,523 |
) |
|
|
835 |
|
|
|
(33,411 |
) |
|
|
(35,654 |
) |
Depreciation and
amortization(a) |
|
13,827 |
|
|
|
13,593 |
|
|
|
44,900 |
|
|
|
38,456 |
|
|
|
55,398 |
|
Acquisition and related costs(b) |
|
1,424 |
|
|
|
3,455 |
|
|
|
4,047 |
|
|
|
17,428 |
|
|
|
21,731 |
|
Restructuring and succession charges(c) |
|
(26 |
) |
|
|
575 |
|
|
|
911 |
|
|
|
2,847 |
|
|
|
7,453 |
|
Equity compensation(d) |
|
1,833 |
|
|
|
4,648 |
|
|
|
947 |
|
|
|
14,153 |
|
|
|
17,585 |
|
Financial restructuring costs(e) |
|
478 |
|
|
|
— |
|
|
|
7,065 |
|
|
|
— |
|
|
|
— |
|
Impairment of assets(f) |
|
— |
|
|
|
— |
|
|
|
78,615 |
|
|
|
— |
|
|
|
10,285 |
|
Impairment of goodwill(g) |
|
— |
|
|
|
124,697 |
|
|
|
— |
|
|
|
124,697 |
|
|
|
124,697 |
|
Loss on disposal of a
business(h) |
|
340 |
|
|
|
— |
|
|
|
1,317 |
|
|
|
— |
|
|
|
— |
|
Other items(i) |
|
1,935 |
|
|
|
1,909 |
|
|
|
11,351 |
|
|
|
5,796 |
|
|
|
8,465 |
|
Adjusted EBITDA |
$ |
21,735 |
|
|
$ |
21,923 |
|
|
$ |
66,844 |
|
|
$ |
51,424 |
|
|
$ |
68,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes for the three months
ended September 30, 2023 and October 1, 2022 and the nine
months ended September 30, 2023 and October 1, 2022,
respectively, depreciation and amortization of $11,506, $11,331,
$38,146 and $30,233 in cost of sales and $2,321, $2,262, $6,754 and
$8,223 in operating expenses presented in the consolidated
statements of operations and comprehensive loss.
Includes for the years ended December 31,
2022, depreciation and amortization of $45,622 in cost of sales and
$9,776 in operating expenses.
(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, reorganize
management structure, and consolidate certain facilities.
(d) Includes compensation expense
resulting from awards granted under our equity-based compensation
plans. The nine months ended September 30, 2023 include the
reversal of equity compensation expenses totaling $3.8 million
related to the transition of our executive leadership.
(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 to our decision to divest the business.
(g) Represents a non-cash
impairment charge due to the decline in the Company’s market
capitalization.
(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 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 $1.2 million during the nine months ended
September 30, 2023 related to MOTYS. We expect to incur up to
$0.5 million in remaining expenditures. Other items for the nine
months ended September 30, 2023 also includes severance costs
totaling $2.3 million related to the transition of our executive
leadership.
Reconciliation of Other Reported GAAP Measures to Non-GAAP
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 |
Gross Profit |
|
Operating Expenses(a) |
|
R&D |
|
Operating Income |
|
Net Loss Continuing Operations |
|
EPS from Continuing
Operations(k) |
Reported GAAP measure |
$ |
78,850 |
|
|
$ |
73,417 |
|
|
$ |
3,015 |
|
$ |
2,418 |
|
|
$ |
(8,791 |
) |
|
$ |
(0.12 |
) |
Reported GAAP margin |
|
65.3 |
% |
|
|
|
|
|
|
2.0 |
% |
|
|
|
|
Depreciation and amortization(b) |
|
11,506 |
|
|
|
2,317 |
|
|
|
4 |
|
|
13,827 |
|
|
|
13,827 |
|
|
|
0.18 |
|
Acquisition and related costs(c) |
|
— |
|
|
|
1,424 |
|
|
|
— |
|
|
1,424 |
|
|
|
1,424 |
|
|
|
0.02 |
|
Restructuring and succession charges(d) |
|
— |
|
|
|
(26 |
) |
|
|
— |
|
|
(26 |
) |
|
|
(26 |
) |
|
|
— |
|
Financial restructuring costs(g) |
|
— |
|
|
|
478 |
|
|
|
— |
|
|
478 |
|
|
|
478 |
|
|
|
0.01 |
|
Loss on disposal of a business(h) |
|
— |
|
|
|
340 |
|
|
|
— |
|
|
340 |
|
|
|
340 |
|
|
|
— |
|
Other items(i) |
|
— |
|
|
|
1,901 |
|
|
|
34 |
|
|
1,935 |
|
|
|
1,935 |
|
|
|
0.02 |
|
Tax effect of adjusting items(j) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(4,512 |
) |
|
|
(0.06 |
) |
Non-GAAP measure |
$ |
90,356 |
|
|
$ |
66,983 |
|
|
$ |
2,977 |
|
$ |
20,396 |
|
|
$ |
4,675 |
|
|
$ |
0.05 |
|
Non-GAAP margin |
|
74.8 |
% |
|
|
|
|
|
|
16.9 |
% |
|
|
|
|
|
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 |
Three Months Ended October 1, 2022 |
Gross Profit |
|
Operating Expenses(a) |
|
R&D |
|
Operating Loss |
|
Net Loss Continuing Operations |
|
EPS from Continuing
Operations(k) |
Reported GAAP measure |
$ |
84,535 |
|
|
$ |
206,760 |
|
$ |
4,614 |
|
$ |
(126,839 |
) |
|
$ |
(101,035 |
) |
|
$ |
(1.18 |
) |
Reported GAAP margin |
|
65.7 |
% |
|
|
|
|
|
|
(98.6) |
% |
|
|
|
|
Depreciation and amortization(b) |
|
11,331 |
|
|
|
2,255 |
|
|
7 |
|
|
13,593 |
|
|
|
13,593 |
|
|
|
0.18 |
|
Acquisition and related costs(c) |
|
— |
|
|
|
3,455 |
|
|
— |
|
|
3,455 |
|
|
|
3,455 |
|
|
|
0.04 |
|
Restructuring and succession charges(d) |
|
— |
|
|
|
575 |
|
|
— |
|
|
575 |
|
|
|
575 |
|
|
|
0.01 |
|
Impairment of goodwill(f) |
|
— |
|
|
|
124,697 |
|
|
— |
|
|
124,697 |
|
|
|
124,697 |
|
|
|
1.61 |
|
Other items(i) |
|
— |
|
|
|
151 |
|
|
1,758 |
|
|
1,909 |
|
|
|
1,909 |
|
|
|
0.02 |
|
Tax effect of adjusting items(j) |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
(31,795 |
) |
|
|
(0.50 |
) |
Non-GAAP measure |
$ |
95,866 |
|
|
$ |
75,627 |
|
$ |
2,849 |
|
$ |
17,390 |
|
|
$ |
11,399 |
|
|
$ |
0.18 |
|
Non-GAAP margin |
|
74.5 |
% |
|
|
|
|
|
|
13.5 |
% |
|
|
|
|
|
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 |
Nine Months Ended September 30, 2023 |
Gross Profit |
|
Operating Expenses(a) |
|
R&D |
|
Operating Loss |
|
Net Loss Continuing Operations |
|
EPS from Continuing
Operations(k) |
Reported GAAP measure |
$ |
241,892 |
|
|
$ |
314,598 |
|
$ |
10,184 |
|
$ |
(82,890 |
) |
|
$ |
(113,540 |
) |
|
$ |
(1.45 |
) |
Reported GAAP margin |
|
64.2 |
% |
|
|
|
|
|
|
(22.0% |
) |
|
|
|
|
Depreciation and amortization(b) |
|
38,146 |
|
|
|
6,740 |
|
|
14 |
|
|
44,900 |
|
|
|
44,900 |
|
|
|
0.57 |
|
Acquisition and related costs(c) |
|
— |
|
|
|
4,047 |
|
|
— |
|
|
4,047 |
|
|
|
4,047 |
|
|
|
0.05 |
|
Restructuring and succession charges(d) |
|
— |
|
|
|
911 |
|
|
— |
|
|
911 |
|
|
|
911 |
|
|
|
0.01 |
|
Impairment of assets(e) |
|
— |
|
|
|
78,615 |
|
|
— |
|
|
78,615 |
|
|
|
78,615 |
|
|
|
1.01 |
|
Financial restructuring costs(g) |
|
— |
|
|
|
7,065 |
|
|
— |
|
|
7,065 |
|
|
|
7,065 |
|
|
|
0.09 |
|
Loss on disposal of a business(h) |
|
— |
|
|
|
1,317 |
|
|
— |
|
|
1,317 |
|
|
|
1,317 |
|
|
|
0.02 |
|
Other items(i) |
|
— |
|
|
|
6,262 |
|
|
1,286 |
|
|
7,548 |
|
|
|
7,548 |
|
|
|
0.10 |
|
Tax effect of adjusting items(j) |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
(31,790 |
) |
|
|
(0.47 |
) |
Non-GAAP measure |
$ |
280,038 |
|
|
$ |
209,641 |
|
$ |
8,884 |
|
$ |
61,513 |
|
|
$ |
(927 |
) |
|
$ |
(0.07 |
) |
Non-GAAP margin |
|
74.3 |
% |
|
|
|
|
|
|
16.3 |
% |
|
|
|
|
|
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 |
Nine Months Ended October 1, 2022 |
Gross Profit |
|
Operating Expenses(a) |
|
R&D |
|
Operating Loss |
|
Net Loss Continuing Operations |
|
EPS from Continuing
Operations(k) |
Reported GAAP measure |
$ |
256,891 |
|
|
$ |
390,580 |
|
$ |
17,908 |
|
$ |
(151,597 |
) |
|
$ |
(123,174 |
) |
|
$ |
(1.48 |
) |
Reported GAAP margin |
|
66.5 |
% |
|
|
|
|
|
|
(39.2 |
%) |
|
|
|
|
Depreciation and amortization(b) |
|
30,233 |
|
|
|
8,205 |
|
|
18 |
|
|
38,456 |
|
|
|
38,456 |
|
|
|
0.50 |
|
Acquisition and related costs(c) |
|
5,607 |
|
|
|
11,821 |
|
|
— |
|
|
17,428 |
|
|
|
17,428 |
|
|
|
0.23 |
|
Restructuring and succession charges(d) |
|
— |
|
|
|
2,847 |
|
|
— |
|
|
2,847 |
|
|
|
2,847 |
|
|
|
0.04 |
|
Impairment of goodwill(f) |
|
— |
|
|
|
124,697 |
|
|
— |
|
|
124,697 |
|
|
|
124,697 |
|
|
|
1.62 |
|
Other items(i) |
|
— |
|
|
|
3,254 |
|
|
2,542 |
|
|
5,796 |
|
|
|
5,796 |
|
|
|
0.08 |
|
Tax effect of adjusting items(j) |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
(42,967 |
) |
|
|
(0.65 |
) |
Non-GAAP measure |
$ |
292,731 |
|
|
$ |
239,756 |
|
$ |
15,348 |
|
$ |
37,627 |
|
|
$ |
23,083 |
|
|
$ |
0.34 |
|
Non-GAAP margin |
|
75.8 |
% |
|
|
|
|
|
|
9.7 |
% |
|
|
|
|
|
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 September 30, 2023 and October 1, 2022 and the nine
months ended September 30, 2023 and October 1, 2022,
respectively, depreciation and amortization of $11,506, $11,331,
$38,146 and $30,233 in cost of sales and $2,321, $2,262, $6,754 and
$8,223 in operating expenses presented in the consolidated
statements of operations and comprehensive loss.
(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, reorganize
management structure, and 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.
(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 potential divestitures and MOTYS Costs. Other items
for nine months ended September 30, 2023 also includes
severance costs totaling $2.3 million and the reversal of equity
compensation expenses totaling $3.8 million related to the
transition of our executive leadership.
(j) Includes ($15.3) million
of tax impact related to the impairment of assets, and an estimated
tax impact of the remaining adjustments to Non-GAAP Net Income from
continuing operations, calculated by applying a rate of 25.1% and
24.8% to those adjustments for the three and nine months ended
September 30, 2023 and October 1, 2022, respectively.
(k) Adjustments are pro-rated to
exclude the weighted average non-controlling interest ownership of
20.0% and 20.4%, respectively, for the three and three and nine
months ended September 30, 2023 and October 1, 2022.
Investor Inquiries and Media:Dave
CrawfordBioventusinvestor.relations@bioventus.com
Bioventus (NASDAQ:BVS)
過去 株価チャート
から 4 2024 まで 5 2024
Bioventus (NASDAQ:BVS)
過去 株価チャート
から 5 2023 まで 5 2024