Harvard Bioscience Announces Second Quarter 2024 Financial Results
Harvard Bioscience (NASDAQ: HBIO) reported challenging Q2 2024 financial results. Revenues decreased to $23.1 million from $28.8 million in Q2 2023. The company experienced a net loss of $2.9 million, compared to a $1.0 million loss in the same period last year. Gross margin slightly declined to 57.2% from 58.0%.
Adjusted EBITDA fell to $1.3 million from $3.9 million in Q2 2023. The company implemented cost-saving measures expected to yield $4 million in annualized savings. Due to delayed market recovery, Harvard Bioscience reduced its 2024 revenue outlook to $97-102 million, with an expected gross margin of 59-60% and adjusted EBITDA margin in high single digits.
Harvard Bioscience (NASDAQ: HBIO) ha riportato risultati finanziari difficili per il secondo trimestre del 2024. I ricavi sono diminuiti a 23,1 milioni di dollari rispetto ai 28,8 milioni di dollari del secondo trimestre del 2023. L'azienda ha registrato una perdita netta di 2,9 milioni di dollari, rispetto a una perdita di 1,0 milione di dollari nello stesso periodo dell'anno scorso. Il margine lordo è leggermente diminuito al 57,2% dal 58,0%.
L'EBITDA rettificato è sceso a 1,3 milioni di dollari rispetto ai 3,9 milioni di dollari del secondo trimestre del 2023. L'azienda ha implementato misure di risparmio sui costi che si prevede porteranno a risparmi annualizzati di 4 milioni di dollari. A causa del ritardo nella ripresa del mercato, Harvard Bioscience ha ridotto la sua prospettiva di ricavi per il 2024 a 97-102 milioni di dollari, con un margine lordo atteso tra il 59% e il 60% e un margine EBITDA rettificato in singoli cifre alte.
Harvard Bioscience (NASDAQ: HBIO) reportó resultados financieros desafiantes para el segundo trimestre de 2024. Los ingresos disminuyeron a 23,1 millones de dólares desde 28,8 millones de dólares en el Q2 de 2023. La compañía tuvo una pérdida neta de 2,9 millones de dólares, en comparación con una pérdida de 1,0 millón de dólares en el mismo periodo del año pasado. El margen bruto disminuyó ligeramente al 57,2% desde el 58,0%.
El EBITDA ajustado cayó a 1,3 millones de dólares desde 3,9 millones de dólares en el Q2 de 2023. La empresa implementó medidas de ahorro de costos que se espera generen 4 millones de dólares en ahorros anuales. Debido a la recuperación retrasada del mercado, Harvard Bioscience redujo su pronóstico de ingresos para 2024 a 97-102 millones de dólares, con un margen bruto esperado de 59-60% y un margen de EBITDA ajustado en dígitos altos.
하버드 바이오사이언스(NASDAQ: HBIO)는 2024년 2분기 재무 결과가 어려웠다고 발표했습니다. 수익이 2880만 달러에서 2310만 달러로 감소했습니다. 이 회사는 지난해 같은 기간 100만 달러의 손실에 비해 290만 달러의 순손실을 기록했습니다. 총 마진은 58.0%에서 57.2%로 소폭 감소했습니다.
조정된 EBITDA는 390만 달러에서 130만 달러로 감소했습니다. 이 회사는 연간 400만 달러의 비용 절감 효과가 예상되는 비용 절감 조치를 시행했습니다. 시장 회복 지연으로 인해 하버드 바이오사이언스는 2024년 수익 전망을 9700만 달러에서 1억 200만 달러로 하향 조정했습니다, 예상 총 마진은 59-60%, 조정 EBITDA 마진은 한 자리 수를 기록할 것으로 보입니다.
Harvard Bioscience (NASDAQ: HBIO) a signalé des résultats financiers difficiles pour le deuxième trimestre 2024. Les revenus ont diminué à 23,1 millions de dollars contre 28,8 millions de dollars au deuxième trimestre 2023. L'entreprise a connu une perte nette de 2,9 millions de dollars, contre une perte de 1,0 million de dollars au cours de la même période l'année dernière. La marge brute a légèrement diminué à 57,2 % contre 58,0 %.
L'EBITDA ajusté est tombé à 1,3 million de dollars contre 3,9 millions de dollars au deuxième trimestre 2023. L'entreprise a mis en œuvre des mesures d'économie qui devraient générer des économies annualisées de 4 millions de dollars. En raison du retard de la reprise du marché, Harvard Bioscience a réduit ses prévisions de revenus pour 2024 à 97-102 millions de dollars, avec une marge brute attendue de 59-60 % et une marge EBITDA ajustée dans les chiffres élevés à un chiffre.
Harvard Bioscience (NASDAQ: HBIO) berichtete über herausfordernde Finanzzahlen für das zweite Quartal 2024. Die Einnahmen sanken auf 23,1 Millionen Dollar gegenüber 28,8 Millionen Dollar im zweiten Quartal 2023. Das Unternehmen verzeichnete einen Nettoverlust von 2,9 Millionen Dollar, verglichen mit einem Verlust von 1,0 Million Dollar im gleichen Zeitraum des Vorjahres. Die Bruttomarge fiel leicht auf 57,2% von 58,0%.
Das bereinigte EBITDA fiel auf 1,3 Millionen Dollar von 3,9 Millionen Dollar im zweiten Quartal 2023. Das Unternehmen hat Kostensenkungsmaßnahmen umgesetzt, die voraussichtlich zu jährlichen Einsparungen von 4 Millionen Dollar führen werden. Aufgrund der verzögerten Markterholung hat Harvard Bioscience seine Umsatzprognose für 2024 auf 97-102 Millionen Dollar gesenkt, mit einer erwarteten Bruttomarge von 59-60% und einer bereinigten EBITDA-Marge im hohen einstelligen Bereich.
- Implemented cost-saving measures expected to generate $4 million in annualized savings
- Maintained focus on new product development and growth initiatives
- Cash flow provided by operations was $0.6 million for the first half of 2024
- Q2 2024 revenues decreased to $23.1 million from $28.8 million in Q2 2023
- Net loss widened to $2.9 million in Q2 2024 from $1.0 million in Q2 2023
- Adjusted EBITDA declined to $1.3 million from $3.9 million in Q2 2023
- Gross margin decreased to 57.2% from 58.0% year-over-year
- Reduced full-year 2024 revenue outlook to $97-102 million due to delayed market recovery
Insights
Harvard Bioscience's Q2 2024 results paint a challenging picture. Revenues dropped to
The company reported a net loss of
Harvard Bioscience has reduced its 2024 revenue outlook to
The life sciences research market is facing headwinds, as evidenced by Harvard Bioscience's results. The company cites a "more challenging than expected market environment" and a delayed market recovery, likely pushed to the latter half of 2024. This suggests broader industry challenges, possibly linked to reduced research funding or budget constraints in academic and pharmaceutical sectors.
Despite near-term challenges, the company remains optimistic about long-term growth prospects from new product development. This indicates a strategic focus on innovation to drive future growth. However, the market's current state has forced Harvard Bioscience to implement cost-saving measures, a trend we might see across the industry.
Investors should monitor broader market indicators and peer company results to gauge if this is an isolated case or a sector-wide trend. The delayed recovery timeline suggests cautious optimism for the industry in late 2024 and beyond.
HOLLISTON, Mass., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc. (Nasdaq: HBIO) (the “Company”) today announced financial results for the second quarter ended June 30, 2024.
Jim Green, Chairman and CEO, said, “Second quarter revenues reflect a more challenging than expected market environment. With the uncertainty of the timing for market recovery we stayed focused on managing costs and the actions we implemented during Q2 are expected to drive annualized savings of approximately
Green continued, “We believe the market recovery is likely delayed to later in the second half however we remain excited about the long-term growth prospects from our innovative new products.”
| Financial Results Summary | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| (unaudited, $ in millions except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Revenues | $ | 23.1 | $ | 28.8 | $ | 47.6 | $ | 58.7 | ||||||||||||||
| Gross margin | 57.2 | % | 58.0 | % | 58.8 | % | 59.6 | % | ||||||||||||||
| Operating (loss) income (GAAP) | $ | (2.1 | ) | $ | 0.8 | $ | (4.3 | ) | $ | 2.5 | ||||||||||||
| Adjusted operating income | $ | 0.8 | $ | 3.6 | $ | 2.0 | $ | 8.0 | ||||||||||||||
| Net loss (GAAP) | $ | (2.9 | ) | $ | (1.0 | ) | $ | (7.6 | ) | $ | (0.4 | ) | ||||||||||
| Diluted loss per share (GAAP) | $ | (0.07 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | (0.01 | ) | ||||||||||
| Diluted adjusted (loss) earnings per share | $ | 0.00 | $ | 0.04 | $ | 0.02 | $ | 0.09 | ||||||||||||||
| Adjusted EBITDA | $ | 1.3 | $ | 3.9 | $ | 2.9 | $ | 8.7 | ||||||||||||||
| Adjusted EBITDA margin | 5.5 | % | 13.6 | % | 6.1 | % | 14.7 | % | ||||||||||||||
| Cash flow provided by operations | $ | 0.6 | $ | 5.4 | ||||||||||||||||||
This press release includes certain financial information presented on an adjusted, or non-GAAP, basis. For additional information on the non-GAAP financial measures included in this press release, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
Second Quarter 2024 Results
For the second quarter of fiscal 2024, the Company reported revenues of
Net loss for the second quarter of 2024 was
Six Months Ended June 30, 2024 Results
For the six months ended June 30, 2024, revenues were
Net loss for the six months ended June 30, 2024 was (
Cash provided by operations was
2024 Guidance
In light of a delayed market recovery, the Company is reducing its full year 2024 revenue outlook to approximately
Webcast and Conference Call Details
In conjunction with this announcement, Harvard Bioscience will be hosting a conference call and webcast today at 10:00 a.m. Eastern Time. A presentation that will be referenced during the webcast will be posted to the Company’s Investor Relations website shortly before the webcast begins.
Analysts who would like to join the call and ask a question must register here. Once registered, you will receive the dial-in numbers and a unique PIN number.
Participants who would like to join the audio-only webcast should go to our events and presentations on the investor website here.
Use of Non-GAAP Financial Information
In this press release, we have included non-GAAP financial information, including one or more of adjusted operating income (loss), adjusted operating margin, adjusted net income (loss), adjusted EBITDA, adjusted EBITDA margin, diluted adjusted earnings (loss) per share, and net debt. We believe that this non-GAAP financial information provides investors with an enhanced understanding of the underlying operations of the business. For the periods presented, these non-GAAP financial measures have excluded certain expenses and income resulting from items that we do not believe are representative of the underlying operations of the business. Items excluded include stock-based compensation, amortization of intangibles related to acquisitions, other operating expenses, loss on equity securities, income taxes, and the tax impact of the reconciling items. Management believes that this non-GAAP financial information is important in comparing current results with prior period results and is useful to investors and financial analysts in assessing the Company’s operating performance.
Non-GAAP historical financial statement information included herein is accompanied by a reconciliation to the nearest corresponding GAAP measure which is included as exhibits below in this press release.
With respect to non-GAAP forward-looking measures, we provide an outlook for adjusted EBITDA margin. Many of the items that we exclude from this forward-looking measure calculation are less capable of being controlled or reliably predicted by management. These items could cause the forward-looking measures presented in our outlook statements to vary materially from our GAAP results.
The non-GAAP financial information provided in this press release should be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP and may be different than other companies’ non-GAAP financial information.
About Harvard Bioscience
Harvard Bioscience, Inc. is a leading developer, manufacturer and seller of technologies, products and services that enable fundamental advances in life science applications, including research, pharmaceutical and therapy discovery, bio-production and preclinical testing for pharmaceutical and therapy development. Our customers range from renowned academic institutions and government laboratories to the world’s leading pharmaceutical, biotechnology and contract research organizations. With operations in the United States, Europe, and China, we sell through a combination of direct and distribution channels to customers around the world.
For more information, please visit our website at www.harvardbioscience.com.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions or statements that do not relate to historical matters. Forward-looking statements include, but are not limited to, information concerning expected future financial and operational performance including revenues, gross margins, earnings, cash and debt position, growth and the introduction of new products, the strength of the Company’s market position and business model and anticipated macroeconomic conditions. Forward-looking statements are not guarantees of future performance and involve known and unknown uncertainties, risks, assumptions, and contingencies, many of which are outside the Company’s control. Risks and other factors that could cause the Company’s actual results to differ materially from those described its forward-looking statements include those described in the “Risk Factors” section of the Company’s most recently filed Annual Report on Form 10-K as well as in the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements are based on the Company’s expectations and assumptions as of the date of this document. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect any change in expectations, even as new information becomes available.
| Company Contact: | Investors Contact: |
| Jennifer Cote | Three Part Advisors |
| Chief Financial Officer | Sandy Martin |
| (508) 893-3120 | HBIO@threepa.com |
| (214) 616-2207 |
| HARVARD BIOSCIENCE, INC. | |||||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||||
| (unaudited, in thousands, except per share data) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenues | $ | 23,097 | $ | 28,759 | $ | 47,609 | $ | 58,734 | |||||||||||||||
| Cost of revenues | 9,879 | 12,086 | 19,619 | 23,715 | |||||||||||||||||||
| Gross profit | 13,218 | 16,673 | 27,990 | 35,019 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Sales and marketing expenses | 5,395 | 6,178 | 11,299 | 12,156 | |||||||||||||||||||
| General and administrative expenses | 5,686 | 5,353 | 11,649 | 11,687 | |||||||||||||||||||
| Research and development expenses | 2,626 | 2,957 | 5,511 | 5,854 | |||||||||||||||||||
| Amortization of intangible assets | 1,331 | 1,389 | 2,664 | 2,777 | |||||||||||||||||||
| Other operating expenses | 249 | - | 1,215 | - | |||||||||||||||||||
| Total operating expenses | 15,287 | 15,877 | 32,338 | 32,474 | |||||||||||||||||||
| Operating (loss) income | (2,069 | ) | 796 | (4,348 | ) | 2,545 | |||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest expense | (749 | ) | (941 | ) | (1,500 | ) | (1,915 | ) | |||||||||||||||
| Loss on equity securities | (281 | ) | (1,581 | ) | (1,593 | ) | (1,581 | ) | |||||||||||||||
| Other (expense) income, net | (181 | ) | (372 | ) | (323 | ) | 60 | ||||||||||||||||
| Total other expense | (1,211 | ) | (2,894 | ) | (3,416 | ) | (3,436 | ) | |||||||||||||||
| Loss before income taxes | (3,280 | ) | (2,098 | ) | (7,764 | ) | (891 | ) | |||||||||||||||
| Income tax benefit | (353 | ) | (1,118 | ) | (143 | ) | (533 | ) | |||||||||||||||
| Net loss | $ | (2,927 | ) | $ | (980 | ) | $ | (7,621 | ) | $ | (358 | ) | |||||||||||
| Loss per common share: | |||||||||||||||||||||||
| Basic and diluted | $ | (0.07 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | (0.01 | ) | |||||||||||
| Weighted-average common shares: | |||||||||||||||||||||||
| Basic and diluted | 43,486 | 42,354 | 43,443 | 42,204 | |||||||||||||||||||
| HARVARD BIOSCIENCE, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (unaudited, in thousands) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 4,048 | $ | 4,283 | ||||
| Accounts receivable, net | 12,486 | 16,099 | ||||||
| Inventories | 25,130 | 24,716 | ||||||
| Other current assets | 4,766 | 3,940 | ||||||
| Total current assets | 46,430 | 49,038 | ||||||
| Property, plant and equipment | 4,758 | 3,981 | ||||||
| Goodwill and other intangibles | 70,068 | 73,101 | ||||||
| Other long-term assets | 7,656 | 11,246 | ||||||
| Total assets | $ | 128,912 | $ | 137,366 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current portion, long-term debt | $ | 3,720 | $ | 5,859 | ||||
| Other current liabilities | 18,901 | 20,683 | ||||||
| Total current liabilities | 22,621 | 26,542 | ||||||
| Long-term debt, net | 31,960 | 30,704 | ||||||
| Other long-term liabilities | 7,084 | 7,046 | ||||||
| Stockholders’ equity | 67,247 | 73,074 | ||||||
| Total liabilities and stockholders’ equity | $ | 128,912 | $ | 137,366 | ||||
| HARVARD BIOSCIENCE, INC. | |||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (unaudited, in thousands) | |||||||||||
| Six Months Ended | |||||||||||
| June 30, 2024 | June 30, 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (7,621 | ) | $ | (358 | ) | |||||
| Adjustments to operating cash flows | 8,048 | 7,101 | |||||||||
| Changes in operating assets and liabilities | 130 | (1,379 | ) | ||||||||
| Net cash provided by operating activities | 557 | 5,364 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Additions to property, plant and equipment | (1,463 | ) | (741 | ) | |||||||
| Acquisition of intangible assets | (223 | ) | (108 | ) | |||||||
| Proceeds from sale of product line | - | 512 | |||||||||
| Proceeds from sale of marketable equity securities | 1,919 | - | |||||||||
| Net cash provided by (used in) investing activities | 233 | (337 | ) | ||||||||
| Cash flows from financing activities: | |||||||||||
| Borrowing from revolving line of credit | 5,550 | 2,500 | |||||||||
| Repayment of revolving line of credit | (2,550 | ) | (5,450 | ) | |||||||
| Repayment of term debt | (4,023 | ) | (2,591 | ) | |||||||
| Proceeds from exercise of employee stock options and purchases | 204 | 724 | |||||||||
| Taxes paid related to net share settlement of equity awards | (59 | ) | (451 | ) | |||||||
| Net cash used in financing activities | (878 | ) | (5,268 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | (147 | ) | 57 | ||||||||
| Decrease in cash and cash equivalents | (235 | ) | (184 | ) | |||||||
| Cash and cash equivalents at the beginning of period | 4,283 | 4,508 | |||||||||
| Cash and cash equivalents at the end of period | $ | 4,048 | $ | 4,324 | |||||||
| HARVARD BIOSCIENCE, INC. | |||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) | |||||||||||||||||||||||||||
| (in thousands, except per share data and percentages) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||||
| GAAP operating (loss) income | $ | (2,069 | ) | $ | 796 | $ | (4,348 | ) | $ | 2,545 | |||||||||||||||||
| Stock-based compensation | 1,278 | 1,102 | 2,326 | 2,255 | |||||||||||||||||||||||
| Acquired asset depreciation & amortization | 1,338 | 1,398 | 2,676 | 2,798 | |||||||||||||||||||||||
| Other operating expenses (1) | 271 | - | 1,335 | - | |||||||||||||||||||||||
| Other adjustments | - | 276 | - | 408 | |||||||||||||||||||||||
| Adjusted operating income | $ | 818 | $ | 3,572 | $ | 1,989 | $ | 8,006 | |||||||||||||||||||
| Operating margin | (9.0 | %) | 2.8 | % | (9.1 | %) | 4.3 | % | |||||||||||||||||||
| Adjusted operating margin | 3.5 | % | 12.4 | % | 4.2 | % | 13.6 | % | |||||||||||||||||||
| GAAP net loss | $ | (2,927 | ) | $ | (980 | ) | $ | (7,621 | ) | $ | (358 | ) | |||||||||||||||
| Stock-based compensation | 1,278 | 1,102 | 2,326 | 2,255 | |||||||||||||||||||||||
| Acquired asset depreciation & amortization | 1,338 | 1,398 | 2,676 | 2,798 | |||||||||||||||||||||||
| Other operating expenses (1) | 271 | - | 1,335 | - | |||||||||||||||||||||||
| Other adjustments | - | 367 | - | 4 | |||||||||||||||||||||||
| Loss on equity securities | 280 | 1,581 | 1,593 | 1,581 | |||||||||||||||||||||||
| Income taxes | (36 | ) | (1,776 | ) | 591 | (2,115 | ) | ||||||||||||||||||||
| Adjusted net income | 204 | 1,692 | 900 | 4,165 | |||||||||||||||||||||||
| Depreciation & amortization | 464 | 328 | 907 | 649 | |||||||||||||||||||||||
| Interest and other expense, net | 929 | 1,222 | 1,822 | 2,258 | |||||||||||||||||||||||
| Adjusted income taxes (2) | (317 | ) | 658 | (734 | ) | 1,582 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 1,280 | $ | 3,900 | $ | 2,895 | $ | 8,654 | |||||||||||||||||||
| Adjusted EBITDA margin | 5.5 | % | 13.6 | % | 6.1 | % | 14.7 | % | |||||||||||||||||||
| Diluted loss per share (GAAP) | $ | (0.07 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | (0.01 | ) | |||||||||||||||
| Diluted adjusted earnings per share | $ | 0.00 | $ | 0.04 | $ | 0.02 | $ | 0.09 | |||||||||||||||||||
| Weighted-average common shares: | |||||||||||||||||||||||||||
| Diluted GAAP | 43,486 | 42,354 | 43,443 | 42,204 | |||||||||||||||||||||||
| Diluted Adjusted | 44,450 | 44,656 | 44,516 | 44,020 | |||||||||||||||||||||||
| (1) Other operating expenses for the three months ended June 30, 2024 includes a credit of | |||||||||||||||||||||||||||
| (2) Adjusted income taxes includes the tax effect of adjusting for the reconciling items using the tax rates in the jurisdictions in which the reconciling items arise. | |||||||||||||||||||||||||||
| June 30, 2024 | December 31, 2023 | ||||||||||||
| Debt, including unamortized deferred financing costs | $ | 35,680 | $ | 36,563 | |||||||||
| Unamortized deferred financing costs | 420 | 560 | |||||||||||
| Cash and cash equivalents | (4,048 | ) | (4,283 | ) | |||||||||
| Net debt | $ | 32,052 | $ | 32,840 | |||||||||
FAQ
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