Bausch + Lomb Announces Second-Quarter 2023 Results and Raises Full-Year 2023 Revenue Outlook
-
Revenues of
$1.03 5 Billion -
GAAP Net Loss Attributable to Bausch + Lomb Corporation of
$32 Million -
Adjusted EBITDA (non-GAAP)1 of
$179 Million -
Revenues Grew
10% as Reported and12% on a Constant Currency1 Basis Compared to the Second Quarter of 2022, Driven by Growth Across All Segments -
Foreign Exchange Negatively Impacted Revenues and Adjusted EBITDA (non-GAAP)1 by Approximately
$18 Million $25 Million - Raises Full-Year Revenue Outlook and Reaffirms Adjusted EBITDA (non-GAAP)1 Guidance Range
“The second quarter was defined by performance and progress. We delivered double-digit total revenue growth and executed across all segments, despite ongoing supply chain issues,” said Brent Saunders, chairman and CEO, Bausch + Lomb. “We also advanced our ambitious plan to reshape Bausch + Lomb and realize the company’s full potential.”
Select Company and Pipeline Highlights
-
Received approval from the
U.S. Food and Drug Administration for MIEBO™ (perfluorohexyloctane ophthalmic solution), for the treatment of the signs and symptoms of dry eye disease (DED) -
Launched Bausch + Lomb INFUSE® Multifocal silicone hydrogel (SiHy) daily disposable contact lenses in
the United States -
Entered into a definitive agreement to acquire XIIDRA® (lifitegrast ophthalmic solution)
5% , a non-steroid eye drop specifically approved to treat the signs and symptoms of DED focusing on inflammation associated with dry eye, and certain pipeline assets; the transaction is expected to close by the end of 2023 and is subject to the receipt of regulatory approval and other customary closing conditions - Acquired the Blink® product line of eye and contact lens drops
-
Launched Biotrue® Hydration Boost Contact Lens Rehydrating drops in
the United States -
Launched PreserVision® AREDS 2 Formula Soft Gels Plus CoQ10 in
the United States -
Introduced the SeeLuma™ Fully Digital Surgical Visualization Platform in
the United States andWestern Europe in partnership with Heidelberg Engineering
Second-Quarter 2023 Revenue Performance
Total reported revenues were
Revenues by segment were as follows:
Second-Quarter 2023 |
|||||||||||
(in millions) |
|
Three Months Ended
|
|
Reported
|
|
Reported
|
|
Change at
|
|
||
2023 |
2022 |
||||||||||
Total Bausch + Lomb Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vision Care2 |
|
|
|
|
|
|
|
|
|
|
|
Surgical |
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals2,3 |
|
|
|
|
|
|
|
|
|
|
|
Vision Care Segment2
Vision Care segment revenues were
Surgical Segment
Surgical segment revenues were
Pharmaceuticals Segment2,3
Pharmaceuticals segment revenues were
Operating Results
Operating results were prepared for a portion of the second quarter of 2022 on a carve-out basis and do not include expenses we are now incurring as a publicly traded company, such as interest expense, taxes and standalone public company costs.
Operating income was
The company is continuing to maintain a disciplined approach to cost management and to leverage its infrastructure.
Net Loss/Income
Net income attributable to Bausch + Lomb Corporation was prepared for a portion of the second quarter of 2022 on a carve-out basis and does not include expenses we are now incurring as a publicly traded company, such as interest expense, taxes and standalone public company costs.
Net loss attributable to Bausch + Lomb Corporation for the second quarter of 2023 was
Adjusted net income (non-GAAP)1 for the second quarter of 2023 was
Cash from Operations
Cash flow from operations was prepared for a portion of the second quarter of 2022 on a carve-out basis and does not include expenses we are now incurring as a publicly traded company, such as interest expense, taxes and standalone public company costs.
Cash used in operations for the second quarter of 2023 was
Earnings Per Share
GAAP Earnings Per Share (“EPS”) Basic and Diluted attributable to Bausch + Lomb Corporation for the second quarter of 2023 was (
Adjusted EBITDA (non-GAAP)1
Adjusted EBITDA (non-GAAP)1 was prepared for a portion of the second quarter of 2022 on a carve-out basis and does not include expenses we are now incurring as a publicly traded company, such as interest expense, taxes and standalone public company costs.
Adjusted EBITDA (non-GAAP)1 was
2023 Financial Outlook4
Bausch + Lomb raised its revenue guidance for the full year of 2023 and reaffirmed its Adjusted EBITDA (non-GAAP)1 guidance for the full year of 2023, as follows.
|
As of May 3, 2023 |
As of Aug. 2, 2023 |
|
|
|
Full-year revenue |
|
|
|
|
|
Full-year Adjusted EBITDA (non-GAAP)1 |
|
|
|
|
|
Foreign exchange headwinds for the full year |
|
|
Other than with respect to GAAP revenues, the company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP)1 to GAAP net income (loss) attributable to Bausch + Lomb Corporation, of forward-looking Adjusted EBITDA (non-GAAP), adjusted for foreign exchange headwinds1 to GAAP net income (loss) attributable to Bausch + Lomb Corporation, of forward-looking constant currency revenue growth1 to reported revenue growth or of revenue adjusted for foreign exchange headwinds to GAAP revenue, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. These amounts may be material and, therefore, could result in the projected GAAP measure or ratio being materially different or less than the projected non-GAAP measure or ratio. These statements represent forward-looking information and may not represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-looking Statements section of this news release.
Balance Sheet Highlights
-
Bausch + Lomb’s cash, cash equivalents and restricted cash were
$392 million - Basic weighted average shares outstanding for the second quarter of 2023 were 350.5 million, and diluted weighted average shares outstanding for the second quarter of 2023 were 352.1 million5
Conference Call Details
Date: |
Wednesday, Aug. 2, 2023 |
|
Time: |
8:00 a.m. ET |
|
Webcast: |
||
Participant Event Dial-in: |
+1 (888) 506-0062 ( +1 (973) 528-0011 (International) |
|
Participant Access Code: |
360419 |
|
Replay Dial-in: |
+1 (877) 481-4010 ( +1 (919) 882-2331 (International) |
|
Replay Passcode: |
47446 (replay available until Aug. 16, 2023) |
About Bausch + Lomb
Bausch + Lomb is dedicated to protecting and enhancing the gift of sight for millions of people around the world – from the moment of birth through every phase of life. Its comprehensive portfolio of more than 400 products includes contact lenses, lens care products, eye care products, ophthalmic pharmaceuticals, over-the-counter products and ophthalmic surgical devices and instruments. Founded in 1853, Bausch + Lomb has a significant global research and development, manufacturing and commercial footprint with approximately 13,000 employees and a presence in nearly 100 countries. Bausch + Lomb is headquartered in
Forward-looking Statements
This news release contains forward-looking information and statements within the meaning of applicable securities laws (collectively, “forward-looking statements”), which may generally be identified by the use of the words “anticipates,” “hopes,” “expects,” “intends,” “plans,” “projects,” “predicts,” “forecasts,” “should,” “could,” “would,” “may,” “might,” “will,” “strive,” “believes,” “estimates,” “potential,” “target,” “guidance,” “outlook,” or “continue” and positive and negative variations or similar expressions and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. Forward-looking statements include statements regarding Bausch + Lomb’s future prospects and performance, including the company’s 2023 full-year guidance, details of the company’s product pipeline, the XIIDRA acquisition and the anticipated timing of closing that transaction, and the company’s planned approach to cost management. These forward-looking statements, including the company’s full-year guidance, are based upon the current expectations and beliefs of management and are provided for the purpose of providing additional information about such expectations and beliefs, and readers are cautioned that these statements may not be appropriate for other purposes. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in Bausch + Lomb’s filings with the
Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Bausch + Lomb undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
Links provided in this news release are solely for information purposes and do not constitute Bausch + Lomb affirming any forward-looking statements contained in the linked content.
Non-GAAP Information
To supplement the financial measures prepared in accordance with
These measures and ratios do not have any standardized meaning under GAAP and other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to similar non-GAAP measures and ratios of other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
The reconciliations of these historic non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the tables below.
Specific Non-GAAP Measures
EBITDA, Adjusted EBITDA and Adjusted EBITDA, adjusted for currency headwinds
EBITDA (non-GAAP) is Net income (loss) attributable to Bausch + Lomb Corporation (its most directly comparable
Adjusted EBITDA (non-GAAP) is Net income (loss) attributable to Bausch + Lomb Corporation (its most directly comparable
- Asset impairments: The company has excluded the impact of impairments of finite-lived and indefinite-lived intangible assets as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions and divestitures. The company believes that the adjustments of these items correlate with the sustainability of the company’s operating performance. Although the company excludes impairments of intangible assets from measuring the performance of the company and its business, the company believes that it is important for investors to understand that intangible assets contribute to revenue generation.
- Restructuring, integration and transformation costs: The company has incurred restructuring costs as it implemented certain strategies, which involved, among other things, improvements to its infrastructure and operations, internal reorganizations and impacts from the divestiture of assets and businesses. With regard to infrastructure and operational improvements which the company has taken to improve efficiencies in the businesses and facilities, these tend to be costs intended to right size the business or organization that fluctuate significantly between periods in amount, size and timing, depending on the improvement project, reorganization or transaction. Additionally, with the completion of the Bausch + Lomb IPO, as the company prepares for post-separation operations, the company is launching certain transformation initiatives that will result in certain changes to and investment in its organizational structure and operations. These transformation initiatives arise outside of the ordinary course of continuing operations and, as is the case with the company’s restructuring efforts, costs associated with these transformation initiatives are expected to fluctuate between periods in amount, size and timing. These out-of-the-ordinary-course charges include third-party advisory costs, as well as certain compensation-related costs (including costs associated with changes in our executive officers, such as the severance costs associated with the departure of the company’s former CEO and the costs associated with the appointment of the company’s new CEO). Investors should understand that the outcome of these transformation initiatives may result in future restructuring actions and certain of these charges could recur. The company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the company’s operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.
- Acquisition-related costs and adjustments excluding amortization of intangible assets: The company excludes the impact of acquisition-related contingent consideration non-cash adjustments due to the inherent uncertainty and volatility associated with such amounts based on changes in assumptions with respect to fair value estimates, and the amount and frequency of such adjustments are not consistent and are significantly impacted by the timing and size of the company’s acquisitions, as well as the nature of the agreed-upon consideration.
- Share-based compensation: The company excludes costs relating to share-based compensation. The company believes that the exclusion of share-based compensation expense assists investors in the comparisons of operating results to peer companies. Share-based compensation expense can vary significantly based on the timing, size and nature of awards granted.
- Separation costs and separation-related costs: The company has excluded certain costs incurred in connection with activities taken to: (i) separate the Bausch + Lomb business from the remainder of BHC and (ii) register the Bausch + Lomb business as an independent publicly traded entity. Separation costs are incremental costs directly related to effectuating the separation of the Bausch + Lomb business from the remainder of BHC and include, but are not limited to, legal, audit and advisory fees, talent acquisition costs and costs associated with establishing a new Board of Directors and Audit Committee. Separation-related costs are incremental costs indirectly related to the separation of the Bausch + Lomb business from the remainder of BHC and include, but are not limited to, IT infrastructure and software licensing costs, rebranding costs and costs associated with facility relocation and/or modification. As these costs arise from events outside of the ordinary course of continuing operations, the company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the company’s operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.
-
Other Non-GAAP adjustments: The company also excludes certain other amounts, including IT infrastructure investment, litigation and other matters, gain/(loss) on sales of assets and certain other amounts that are the result of other, non-comparable events to measure operating performance if and when present in the periods presented. These events arise outside of the ordinary course of continuing operations. Given the unique nature of the matters relating to these costs, the company believes these items are not routine operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the company believes the costs associated with legal settlements and judgments are not routine operating expenses. The company has also excluded certain other costs, including settlement costs associated with the conversion of a portion of the company’s defined benefit plan in
Ireland to a defined contribution plan. The company excluded these costs as this event is outside of the ordinary course of continuing operations and is infrequent in nature. The company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the company from period to period and, therefore, provides useful supplemental information to investors. However, investors should understand that many of these costs could recur and that companies in our industry often face litigation.
Adjusted EBITDA, adjusted for foreign exchange headwinds is Adjusted EBITDA (non-GAAP) further adjusted for the impact or the anticipated impact of foreign exchange. The company uses this non-GAAP measure as part of the guidance it provides to its investors. Although changes due to foreign exchange movements are part of our business, they are not within management’s control. These changes, however, can mask positive or negative trends in the underlying business performance. Accordingly, the company believes the measure is useful to investors in assessing our performance. For guidance purposes, the company has further adjusted Adjusted EBITDA (non-GAAP) for the anticipated impact of foreign exchange for full-year 2023.
Adjusted Net Income (non-GAAP)
Adjusted net income (non-GAAP) is net income (loss) attributable to Bausch + Lomb Corporation (its most directly comparable GAAP financial measure) adjusted for asset impairments, restructuring, integration and transformation costs, acquisition-related contingent consideration, separation costs and separation-related costs and other non-GAAP adjustments, as these adjustments are described above, and further adjusted for amortization of intangible assets, as described below:
- Amortization of intangible assets: The company has excluded the impact of amortization of intangible assets, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. The company believes that the adjustments of these items correlate with the sustainability of the company’s operating performance. Although the company excludes the amortization of intangible assets from its non-GAAP expenses, the company believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.
Adjusted net income (non-GAAP) excludes the impact of these certain items that may obscure trends in the company’s underlying performance. Management uses Adjusted net income (non-GAAP) for strategic decision making, forecasting future results and evaluating current performance. By disclosing this non-GAAP measure, it is management’s intention to provide investors with a meaningful, supplemental comparison of the company’s operating results and trends for the periods presented. Management believes that this measure is also useful to investors as such measure allows investors to evaluate the company’s performance using the same tools that management uses to evaluate past performance and prospects for future performance. Accordingly, the company believes that Adjusted net income (non-GAAP) is useful to investors in their assessment of the company’s operating performance and the valuation of the company. It is also noted that, in recent periods, our GAAP net income (loss) attributable to Bausch + Lomb Corporation was significantly lower than our Adjusted net income (non-GAAP).
Constant Currency; Revenue adjusted for foreign exchange headwinds
Constant currency change or constant currency revenue growth is a change in GAAP revenue (its most directly comparable GAAP financial measure) on a period-over-period basis adjusted for changes in foreign currency exchange rates. The company uses Constant Currency revenues (non-GAAP) and Constant Currency revenue Growth (non-GAAP) to assess performance of its reportable segments, and the company in total, without the impact of foreign currency exchange fluctuations. The company believes that such measures are useful to investors as they provide a supplemental period-to-period comparison. Although changes in foreign currency exchange rates are part of our business, they are not within management’s control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the underlying business performance. Constant currency impact is determined by comparing 2023 reported amounts adjusted to exclude currency impact, calculated using 2022 monthly average exchange rates, to the actual 2022 reported amounts. For guidance purposes, the company also provides revenue, adjusted for foreign exchange headwinds (GAAP revenue being the most directly comparable GAAP financial measures), which is adjusted for the anticipated impact of foreign exchange for full-year 2023.
Adjusted EPS (non-GAAP)
Adjusted earnings per share or Adjusted EPS (non-GAAP) is calculated as Diluted income per share attributable to Bausch + Lomb Corporation (“GAAP EPS”) (its most directly comparable GAAP financial measure), adjusted for the per diluted share impact of each adjustment made to reconcile Net income (loss) attributable to Bausch + Lomb Corporation to Adjusted net income (non-GAAP) as discussed above. Like Adjusted net income (non-GAAP), Adjusted EPS (non-GAAP) excludes the impact of certain items that may obscure trends in the company’s underlying performance on a per share basis. By disclosing this non-GAAP measure, it is management’s intention to provide investors with a meaningful, supplemental comparison of the company’s results and trends for the periods presented on a diluted share basis. Accordingly, the company believes that Adjusted EPS (non-GAAP) is useful to investors in their assessment of the company’s operating performance, the valuation of the company and an investor’s return on investment. It is also noted that, for the periods presented, our GAAP EPS was significantly lower than our Adjusted EPS (non-GAAP).
________________________
1 This is a non-GAAP measure or a non-GAAP ratio. For further information on non-GAAP measures and non-GAAP ratios, please refer to the “Non-GAAP Information” section of this news release. Please also refer to tables at the end of this news release for a reconciliation of this and other non-GAAP measures to the most directly comparable GAAP measure. |
2 Effective in the first quarter of 2023, certain products historically included in the reported results of the Pharmaceuticals segment are now included in the reported results of the Vision Care segment and certain products included in the reported results of the Vision Care segment are now included in the reported results of the Pharmaceuticals segment. Management believes these movements are necessary in order to better align these products with the groupings of similar products. The net impact of these product movements was not material to the periods presented. Prior period presentations of segment revenues have been conformed to the current segment reporting structure. |
3 Effective as of the second quarter of 2023, the company changed the name of the segment from “Ophthalmic Pharmaceuticals” to “Pharmaceuticals”. Aside from the change in name, there were no other changes to the segment itself as a result. |
4 The guidance in this news release is only effective as of the date given, Aug. 2, 2023, and will not be updated or affirmed unless and until the company publicly announces updated or affirmed guidance. Distribution or reference of this news release following Aug. 2, 2023, does not constitute the company reaffirming guidance. See the “Forward-looking Statements” section for further information. |
5 Diluted weighted average shares includes the dilutive impact of options, performance based restricted stock units and restricted stock units, which are approximately 1,600,000 common shares for the 3 months ended June 30, 2023, and which are excluded when calculating GAAP diluted loss per share because the effect of including the impact would be anti-dilutive. |
Unless otherwise indicated, ®/™ are trademarks of Bausch + Lomb Corporation or its affiliates.
Any other product/brand names are trademarks of the respective owners.
© 2023 Bausch + Lomb.
FINANCIAL TABLES FOLLOW
Bausch + Lomb Corporation |
|
|
|
|
|
|
|
Table 1 |
||||||||
Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
||||||||
For the Three and Six Months Ended June 30, 2023 and 2022 |
|
|
|
|
|
|
|
|
||||||||
(unaudited) |
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
(in millions, except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
|
|
|
|
|
|
|
||||||||
Product sales |
|
$ |
1,031 |
|
|
$ |
935 |
|
|
$ |
1,959 |
|
|
$ |
1,818 |
|
Other revenues |
|
|
4 |
|
|
|
6 |
|
|
|
7 |
|
|
|
12 |
|
|
|
|
1,035 |
|
|
|
941 |
|
|
|
1,966 |
|
|
|
1,830 |
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold (excluding amortization and impairments of intangible assets) |
|
|
417 |
|
|
|
377 |
|
|
|
788 |
|
|
|
723 |
|
Cost of other revenues |
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
|
|
4 |
|
Selling, general and administrative |
|
|
417 |
|
|
|
368 |
|
|
|
835 |
|
|
|
711 |
|
Research and development |
|
|
85 |
|
|
|
75 |
|
|
|
162 |
|
|
|
152 |
|
Amortization of intangible assets |
|
|
56 |
|
|
|
64 |
|
|
|
113 |
|
|
|
129 |
|
Other expense (income), net |
|
|
17 |
|
|
|
(1 |
) |
|
|
26 |
|
|
|
1 |
|
|
|
|
992 |
|
|
|
885 |
|
|
|
1,925 |
|
|
|
1,720 |
|
Operating income |
|
|
43 |
|
|
|
56 |
|
|
|
41 |
|
|
|
110 |
|
Interest income |
|
|
5 |
|
|
|
1 |
|
|
|
8 |
|
|
|
1 |
|
Interest expense |
|
|
(58 |
) |
|
|
(44 |
) |
|
|
(108 |
) |
|
|
(64 |
) |
Foreign exchange and other |
|
|
(9 |
) |
|
|
14 |
|
|
|
(15 |
) |
|
|
9 |
|
(Loss) income before provision for income taxes |
|
|
(19 |
) |
|
|
27 |
|
|
|
(74 |
) |
|
|
56 |
|
Provision for income taxes |
|
|
(10 |
) |
|
|
(20 |
) |
|
|
(43 |
) |
|
|
(26 |
) |
Net (loss) income |
|
|
(29 |
) |
|
|
7 |
|
|
|
(117 |
) |
|
|
30 |
|
Net income attributable to noncontrolling interest |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
Net (loss) income attributable to Bausch + Lomb Corporation |
|
$ |
(32 |
) |
|
$ |
5 |
|
|
$ |
(122 |
) |
|
$ |
25 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted (loss) income per share attributable to Bausch + Lomb Corporation |
|
$ |
(0.09 |
) |
|
$ |
0.01 |
|
|
$ |
(0.35 |
) |
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted weighted-average common shares |
|
|
350 |
|
|
|
350 |
|
|
|
350 |
|
|
|
350 |
|
Bausch + Lomb Corporation |
|
|
|
|
|
|
|
Table 2 |
||||||||
Reconciliation of GAAP Net (Loss) Income and Diluted (Loss) Income per Share Attributable to Bausch + Lomb Corporation to Adjusted Net Income (non-GAAP) and Adjusted Earnings Per Share (non-GAAP) |
|
|
|
|
|
|
||||||||||
For the Three and Six Months Ended June 30, 2023 and 2022 |
|
|
|
|
|
|
|
|
||||||||
(unaudited) |
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||
(in millions, except per share amounts) |
|
Income (Expense) |
|
Earnings per Share Impact (b) |
|
Income (Expense) |
|
Earnings per Share Impact (b) |
||||||||
Net (loss) income and Diluted (loss) income per share attributable to Bausch + Lomb Corporation |
|
$ |
(32 |
) |
|
$ |
(0.09 |
) |
|
$ |
5 |
|
|
$ |
0.01 |
|
Non-GAAP adjustments: (a) |
|
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
56 |
|
|
|
0.16 |
|
|
|
64 |
|
|
|
0.18 |
|
Restructuring, integration and transformation costs |
|
|
30 |
|
|
|
0.09 |
|
|
|
1 |
|
|
|
— |
|
Acquisition-related costs and adjustments (excluding amortization of intangible assets) |
|
|
3 |
|
|
|
0.01 |
|
|
|
(5 |
) |
|
|
(0.01 |
) |
Separation costs and separation-related costs |
|
|
2 |
|
|
|
— |
|
|
|
9 |
|
|
|
0.03 |
|
Other |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tax effect of non-GAAP adjustments |
|
|
4 |
|
|
|
0.01 |
|
|
|
29 |
|
|
|
0.08 |
|
Total non-GAAP adjustments |
|
|
97 |
|
|
|
0.27 |
|
|
|
98 |
|
|
|
0.28 |
|
Adjusted net income (non-GAAP) and Adjusted earnings per share (non-GAAP) |
|
$ |
65 |
|
|
$ |
0.18 |
|
|
$ |
103 |
|
|
$ |
0.29 |
|
|
|
Six Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||
(in millions, except per share amounts) |
|
Income (Expense) |
|
Earnings per Share Impact (b) |
|
Income (Expense) |
|
Earnings per Share Impact (b) |
||||||||
Net (loss) income and Diluted (loss) income per share attributable to Bausch + Lomb Corporation |
|
$ |
(122 |
) |
|
$ |
(0.35 |
) |
|
$ |
25 |
|
|
$ |
0.07 |
|
Non-GAAP adjustments: (a) |
|
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
113 |
|
|
|
0.32 |
|
|
|
129 |
|
|
|
0.37 |
|
Restructuring, integration and transformation costs |
|
|
62 |
|
|
|
0.18 |
|
|
|
4 |
|
|
|
0.01 |
|
Acquisition-related costs and adjustments (excluding amortization of intangible assets) |
|
|
4 |
|
|
|
0.01 |
|
|
|
(5 |
) |
|
|
(0.01 |
) |
Separation costs and separation-related costs |
|
|
5 |
|
|
|
0.01 |
|
|
|
13 |
|
|
|
0.04 |
|
Other |
|
|
2 |
|
|
|
0.01 |
|
|
|
6 |
|
|
|
0.02 |
|
Tax effect of non-GAAP adjustments |
|
|
35 |
|
|
|
0.10 |
|
|
|
16 |
|
|
|
0.04 |
|
Total non-GAAP adjustments |
|
|
221 |
|
|
|
0.63 |
|
|
|
163 |
|
|
|
0.47 |
|
Adjusted net income (non-GAAP) and Adjusted earnings per share (non-GAAP) |
|
$ |
99 |
|
|
$ |
0.28 |
|
|
$ |
188 |
|
|
$ |
0.54 |
|
(a) |
The components of and further details respecting each of these non-GAAP adjustments and the financial statement line item to which each component relates can be found on Table 2a. |
|
(b) |
On April 28, 2022, Bausch + Lomb effected a share consolidation as a result of which it had 350,000,000 issued and outstanding common shares. These common shares are treated as issued and outstanding at January 1, 2022 for purposes of calculating Basic and diluted income per share attributable to Bausch + Lomb Corporation. |
Bausch + Lomb Corporation |
|
|
|
Table 2a |
||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
|
|
|
|
|
|
|
|
||||||||
For the Three and Six Months Ended June 30, 2023 and 2022 |
|
|
|
|
|
|
|
|
||||||||
(unaudited) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
(in millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Selling, general and administrative reconciliation: |
|
|
|
|
|
|
|
|
||||||||
GAAP Selling, general and administrative |
|
$ |
417 |
|
|
$ |
368 |
|
|
$ |
835 |
|
|
$ |
711 |
|
Separation-related costs (a) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
Transformation costs (b) |
|
|
(16 |
) |
|
|
— |
|
|
|
(40 |
) |
|
|
(1 |
) |
Other (c) |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Adjusted selling, general and administrative (non-GAAP) |
|
$ |
398 |
|
|
$ |
362 |
|
|
$ |
789 |
|
|
$ |
700 |
|
Amortization of intangible assets reconciliation: |
|
|
|
|
|
|
|
|
||||||||
GAAP Amortization of intangible assets |
|
$ |
56 |
|
|
$ |
64 |
|
|
$ |
113 |
|
|
$ |
129 |
|
Amortization of intangible assets (d) |
|
|
(56 |
) |
|
|
(64 |
) |
|
|
(113 |
) |
|
|
(129 |
) |
Adjusted amortization of intangible assets (non-GAAP) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Other expense (income), net reconciliation: |
|
|
|
|
|
|
|
|
||||||||
GAAP Other expense (income), net |
|
$ |
17 |
|
|
$ |
(1 |
) |
|
$ |
26 |
|
|
$ |
1 |
|
Restructuring and integration costs (b) |
|
|
(14 |
) |
|
|
(1 |
) |
|
|
(22 |
) |
|
|
(3 |
) |
Separation costs (a) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
Acquisition-related contingent consideration (e) |
|
|
(1 |
) |
|
|
5 |
|
|
|
(1 |
) |
|
|
5 |
|
Acquisition-related costs (e) |
|
|
(2 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
Adjusted other expense, net (non-GAAP) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Foreign exchange and other reconciliation: |
|
|
|
|
|
|
|
|
||||||||
GAAP Foreign exchange and other |
|
$ |
(9 |
) |
|
$ |
14 |
|
|
$ |
(15 |
) |
|
$ |
9 |
|
Other (c) |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
6 |
|
Adjusted foreign exchange and other (non-GAAP) |
|
$ |
(8 |
) |
|
$ |
14 |
|
|
$ |
(14 |
) |
|
$ |
15 |
|
Provision for income taxes reconciliation: |
|
|
|
|
|
|
|
|
||||||||
GAAP Provision for income taxes |
|
$ |
(10 |
) |
|
$ |
(20 |
) |
|
$ |
(43 |
) |
|
$ |
(26 |
) |
Tax effect of non-GAAP adjustments (f) |
|
|
4 |
|
|
|
29 |
|
|
|
35 |
|
|
|
16 |
|
Adjusted (provision) benefit for income taxes (non-GAAP) |
|
$ |
(6 |
) |
|
$ |
9 |
|
|
$ |
(8 |
) |
|
$ |
(10 |
) |
|
|
|
|
|
|
|
|
|
||||||||
(a) |
Represents the two components of the non-GAAP adjustment of “Separation costs and separation-related costs” (see Table 2). |
|
(b) |
Represents the two components of the non-GAAP adjustment of “Restructuring, integration and transformation costs” (see Table 2). |
|
| (c) | Represents the two components of the non-GAAP adjustment of “Other” (see Table 2). |
|
| (d) | Represents the sole component of the non-GAAP adjustment of “Amortization of intangible assets” (see Table 2). |
|
| (e) | Represents the two components of the non-GAAP adjustment of “Acquisition-related costs and adjustments (excluding amortization of intangible assets)” (see Table 2). |
|
| (f) | Represents the sole component of the non-GAAP adjustment of “Tax effect of non-GAAP adjustments” (see Table 2). |
Bausch + Lomb Corporation |
|
|
|
|
|
|
|
Table 2b |
|||||||||
Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA (non-GAAP) |
|
|
|
|
|
|
|
|
|||||||||
For the Three and Six Months Ended June 30, 2023 and 2022 |
|
|
|
|
|
|
|
|
|||||||||
(unaudited) |
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
June 30, |
|
June 30, |
||||||||||||
(in millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net (loss) income attributable to Bausch + Lomb Corporation |
|
$ |
(32 |
) |
|
$ |
5 |
|
|
$ |
(122 |
) |
|
$ |
25 |
|
|
|
Interest expense, net |
|
|
53 |
|
|
|
43 |
|
|
|
100 |
|
|
|
63 |
|
|
Provision for income taxes |
|
|
10 |
|
|
|
20 |
|
|
|
43 |
|
|
|
26 |
|
|
Depreciation and amortization of intangible assets |
|
|
93 |
|
|
|
98 |
|
|
|
184 |
|
|
|
193 |
|
EBITDA |
|
|
124 |
|
|
|
166 |
|
|
|
205 |
|
|
|
307 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|||||||||
|
Restructuring, integration and transformation costs |
|
|
30 |
|
|
|
1 |
|
|
|
62 |
|
|
|
4 |
|
|
Acquisition-related costs and adjustments (excluding amortization of intangible assets) |
|
|
3 |
|
|
|
(5 |
) |
|
|
4 |
|
|
|
(5 |
) |
|
Share-based compensation |
|
|
18 |
|
|
|
11 |
|
|
|
42 |
|
|
|
27 |
|
|
Separation costs and Separation-related costs |
|
|
2 |
|
|
|
9 |
|
|
|
5 |
|
|
|
13 |
|
|
Other non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
|
Other |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
6 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
179 |
|
|
$ |
182 |
|
|
$ |
320 |
|
|
$ |
352 |
|
|
Bausch + Lomb Corporation |
|
|
|
|
|
|
|
|
Table 3 |
|||||||||||||||
Constant Currency Revenue (non-GAAP) and Constant Currency Revenue Growth (non-GAAP) - by Segment |
|
|
|
|
|
|
|
|||||||||||||||||
For the Three and Six Months Ended June 30, 2023 and 2022 |
|
|
|
|
|
|
|
|
||||||||||||||||
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Calculation of Constant Currency Revenue for the Three Months Ended |
|
|
|
|
|
|
|
|||||||||||||||
|
|
June 30, 2023 |
|
June 30, 2022 |
Change in Revenue as Reported |
|
Change in Constant Currency Revenue (Non-GAAP) (b) |
|||||||||||||||||
|
|
Revenue as Reported |
|
Changes in Exchange Rates (a) |
|
Constant Currency Revenue (Non-GAAP) (b) |
|
Revenue as Reported |
|
|
||||||||||||||
(in millions) |
|
Amount |
|
Pct. |
|
Amount |
|
Pct. |
||||||||||||||||
Vision Care (c) |
|
$ |
646 |
|
$ |
15 |
|
$ |
661 |
|
$ |
588 |
|
$ |
58 |
|
10 |
% |
|
$ |
73 |
|
12 |
% |
Surgical |
|
|
195 |
|
|
1 |
|
|
196 |
|
|
184 |
|
|
11 |
|
6 |
% |
|
|
12 |
|
7 |
% |
Pharmaceuticals (c) |
|
|
194 |
|
|
2 |
|
|
196 |
|
|
169 |
|
|
25 |
|
15 |
% |
|
|
27 |
|
16 |
% |
Total revenues |
|
$ |
1,035 |
|
$ |
18 |
|
$ |
1,053 |
|
$ |
941 |
|
$ |
94 |
|
10 |
% |
|
$ |
112 |
|
12 |
% |
|
|
Calculation of Constant Currency Revenue for the Six Months Ended |
|
|
|
|
|
|
|
|||||||||||||||
|
|
June 30, 2023 |
|
June 30, 2022 |
Change in Revenue as Reported |
|
Change in Constant Currency Revenue (Non-GAAP) (b) |
|||||||||||||||||
|
|
Revenue as Reported |
|
Changes in Exchange Rates (a) |
|
Constant Currency Revenue (Non-GAAP) (b) |
|
Revenue as Reported |
|
|
||||||||||||||
(in millions) |
|
Amount |
|
Pct. |
|
Amount |
|
Pct. |
||||||||||||||||
Vision Care (c) |
|
$ |
1,233 |
|
$ |
35 |
|
$ |
1,268 |
|
$ |
1,148 |
|
$ |
85 |
|
7 |
% |
|
$ |
120 |
|
10 |
% |
Surgical |
|
|
378 |
|
|
7 |
|
|
385 |
|
|
358 |
|
|
20 |
|
6 |
% |
|
|
27 |
|
8 |
% |
Pharmaceuticals (c) |
|
|
355 |
|
|
7 |
|
|
362 |
|
|
324 |
|
|
31 |
|
10 |
% |
|
|
38 |
|
12 |
% |
Total revenues |
|
$ |
1,966 |
|
$ |
49 |
|
$ |
2,015 |
|
$ |
1,830 |
|
$ |
136 |
|
7 |
% |
|
$ |
185 |
|
10 |
% |
(a) |
The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. |
|
| (b) | To supplement the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures and ratios. For additional information about the Company’s use of such non-GAAP financial measures and ratios, refer to the “Non-GAAP Information” section in the body of the news release to which these tables are attached. Constant currency revenue (non-GAAP) for the three and six months ended June 30, 2023 is calculated as revenue as reported adjusted for the impact for changes in exchange rates (previously defined in this news release). Change in constant currency revenue (non-GAAP) is calculated as the difference between constant currency revenue for the current period and revenue as reported for the comparative period. |
|
| (c) | Effective in the first quarter of 2023, certain products historically included in the reported results of the Pharmaceuticals segment are now included in the reported results of the Vision Care segment and certain products included in the reported results of the Vision Care segment are now included in the reported results of the Pharmaceuticals segment. Management believes these movements are necessary in order to better align these products with the groupings of similar products. The net impact of these product movements was not material to the periods presented. Prior period presentations of segment revenues have been conformed to the current segment reporting structure. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802431864/en/
Investor Contacts:
George Gadkowski
george.gadkowski@bausch.com
Allison Ryan
allison.ryan@bausch.com
(877) 354-3705 (toll free)
(908) 927-0735
Media Contacts:
T.J. Crawford
tj.crawford@bausch.com
(908) 705-2851
Lainie Keller
lainie.keller@bausch.com
(908) 927-1198
Source: Bausch + Lomb Corporation
