QuidelOrtho Reports First Quarter 2024 Financial Results
QuidelOrtho reported global year-over-year revenue growth of 5% as reported and 6% in constant currency, excluding COVID-19 revenue. They are undergoing cost reduction initiatives to save approximately $100 million annually. The company suspended its 2024 financial guidance as they assess the business under a new President and CEO. Revenue for Q1 2024 was $711 million, with non-respiratory revenue flat at $574 million and respiratory revenue at $137 million, a 48% decrease due to lower COVID-19 revenue. The company appointed Brian J. Blaser as President and CEO effective May 6, 2024.
Global revenue growth of 5% as reported and 6% in constant currency, excluding COVID-19 revenue.
Cost reduction initiatives underway to save approximately $100 million annually.
Appointment of Brian J. Blaser as President and CEO to lead the company.
Suspension of 2024 financial guidance while assessing business under new leadership.
Flat non-respiratory revenue at $574 million in Q1 2024.
48% decrease in respiratory revenue due to lower COVID-19 revenue.
GAAP diluted loss per share for Q1 2024 was $25.50 compared to EPS of $0.73 in the prior year period.
Insights
- Global year-over-year revenue growth of
- Cost reduction initiatives well underway, headcount reductions expected to deliver approximately
- Company suspends 2024 financial guidance while it assesses business under new President and Chief Executive Officer -
First Quarter 2024 Results and Recent Highlights
-
Revenue was
, as reported:$711 million -
Non-respiratory revenue was flat at
compared to the prior year period, as reported and in constant currency$574 million -
Excluding the one-time third-party settlement of
in the prior year period, non-respiratory revenue grew$21 million 3% as reported and4% on a constant currency basis
-
Excluding the one-time third-party settlement of
-
Respiratory revenue was
, a$137 million 48% decrease as reported and in constant currency, primarily due to lower COVID-19 revenue in the first quarter of 2024 compared to the prior year period-
Excluding COVID-19-related government orders of
in Q1 2023 and$143 million in Q1 2024, which are not expected to recur, respiratory revenue grew$7 million 6% as reported and in constant currency
-
Excluding COVID-19-related government orders of
-
Non-respiratory revenue was flat at
- Secured credit agreement amendment to provide additional flexibility through 2027
- Appointed Brian J. Blaser as President and Chief Executive Officer, effective May 6, 2024
“During the first quarter, we achieved solid business performance with
First Quarter 2024
The Company reported total revenue for the first quarter of 2024 of
Adjusted diluted EPS for the first quarter of 2024 was
Fiscal Year 2024 Financial Guidance
Following the appointment of Brian J. Blaser as President and Chief Executive Officer, QuidelOrtho is suspending its 2024 financial guidance while it assesses the business under its new President and Chief Executive Officer. The Company plans to provide an update in today’s earnings conference call.
Conference Call Information
QuidelOrtho will hold a conference call today at 2:00 p.m. PDT / 5:00 p.m. EDT to discuss its financial results for the first quarter ended March 31, 2024. Interested parties can access the call on the “Events & Presentations” section of the “Investor Relations” page of the Company’s website at https://ir.quidelortho.com/. Presentation materials will also be posted to the “Events & Presentations” section of the “Investor Relations” page of the Company’s website at the time of the call. Those unable to access the webcast may join the call via phone by dialing 833-470-1428 (domestic) or +1 929-526-1599 (international) and entering Conference ID number 295379.
A replay of the conference call will be available shortly after the event on the “Investor Relations” page of the Company’s website, under the “Events & Presentations” section.
About QuidelOrtho Corporation
QuidelOrtho Corporation (Nasdaq: QDEL) is a world leader in in-vitro diagnostics, developing and manufacturing intelligent solutions that transform data into understanding and action for more people in more places every day.
Offering industry-leading expertise in immunoassay and molecular testing, clinical chemistry, and transfusion medicine, bringing fast, accurate and reliable diagnostics when and where they are needed – from home to hospital, lab to clinic. So that patients, clinicians and health officials can spot trends sooner, respond quicker and chart the course ahead with accuracy and confidence.
Building upon its many years of groundbreaking innovation, QuidelOrtho continues to partner with customers across the healthcare continuum and around the globe to forge a new diagnostic frontier. One where insights and solutions know no bounds, expertise seamlessly connects and a more informed path is illuminated for each of us.
QuidelOrtho is advancing diagnostics to power a healthier future.
For more information, please visit www.quidelortho.com.
Source: QuidelOrtho Corporation
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are any statement contained herein that is not strictly historical, including, but not limited to, QuidelOrtho’s commercial, integration, transformation and other strategic goals, future financial condition and operating results, including results of cost initiatives and operating flexibility achieved by the credit agreement amendment, and other future plans, objectives, strategies, expectations and intentions. Without limiting the foregoing, the words “may,” “will,” “would,” “should,” “might,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “goal,” “project,” “strategy,” “future,” “continue” or similar words, expressions or the negative of such terms or other comparable terminology are intended to identify forward-looking statements. Such statements are based on the beliefs and expectations of QuidelOrtho’s management as of today and are subject to significant known and unknown risks and uncertainties. Actual results or outcomes may differ significantly from those set forth or implied in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth or implied in the forward-looking statements: supply chain, production, logistics, distribution and labor disruptions and challenges; the challenges and costs of integrating, restructuring and achieving anticipated synergies as a result of the business combination of Quidel Corporation and Ortho Clinical Diagnostics Holdings plc; and other macroeconomic, geopolitical, market, business, competitive and/or regulatory factors affecting the business of QuidelOrtho generally, including those discussed in QuidelOrtho’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and subsequent reports filed with the Securities and Exchange Commission (the “Commission”), including under Part I, Item 1A, “Risk Factors” of the Form 10-K. You should not rely on forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. All forward-looking statements are based on information currently available to QuidelOrtho and speak only as of the date hereof. QuidelOrtho undertakes no obligation to update any of the forward-looking information or time-sensitive information included in this press release, whether as a result of new information, future events, changed expectations or otherwise, except as required by law.
Non-GAAP Financial Measures
This press release contains financial measures, including but not limited to “constant currency” revenue and revenue changes, “constant currency, ex-COVID-19” revenue and revenue changes, revenue ex-COVID-19, “adjusted net income,” “adjusted diluted EPS,” “adjusted EBITDA” and “adjusted EBITDA margin,” which are considered non-GAAP financial measures under applicable rules and regulations of the Commission. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with
QuidelOrtho Consolidated Statements of Operations (Unaudited) (In millions except per share data) |
||||||
|
Three Months Ended |
|||||
|
March 31, 2024 |
|
April 2, 2023 |
|||
Total revenues |
$ |
711.0 |
|
|
$ |
846.1 |
Cost of sales, excluding amortization of intangibles |
|
378.9 |
|
|
|
397.5 |
Selling, marketing and administrative |
|
204.7 |
|
|
|
202.4 |
Research and development |
|
59.2 |
|
|
|
62.3 |
Amortization of intangible assets |
|
51.7 |
|
|
|
50.8 |
Acquisition and integration costs |
|
22.6 |
|
|
|
29.7 |
Goodwill impairment charge |
|
1,743.9 |
|
|
|
— |
Other operating expenses |
|
8.0 |
|
|
|
3.8 |
Operating (loss) income |
|
(1,758.0 |
) |
|
|
99.6 |
Interest expense, net |
|
39.0 |
|
|
|
36.7 |
Other expense, net |
|
1.9 |
|
|
|
2.9 |
(Loss) income before income taxes |
|
(1,798.9 |
) |
|
|
60.0 |
(Benefit from) provision for income taxes |
|
(92.9 |
) |
|
|
11.2 |
Net (loss) income |
$ |
(1,706.0 |
) |
|
$ |
48.8 |
Basic (loss) earnings per share |
$ |
(25.50 |
) |
|
$ |
0.73 |
Diluted (loss) earnings per share |
$ |
(25.50 |
) |
|
$ |
0.73 |
Weighted-average shares outstanding - basic |
|
66.9 |
|
|
|
66.6 |
Weighted-average shares outstanding - diluted |
|
66.9 |
|
|
|
67.1 |
QuidelOrtho Condensed Consolidated Balance Sheets (Unaudited) (In millions) |
|||||
|
March 31, 2024 |
|
December 31, 2023 |
||
Cash and cash equivalents |
$ |
78.5 |
|
$ |
118.9 |
Marketable securities |
|
— |
|
|
48.4 |
Accounts receivable, net |
|
271.7 |
|
|
303.3 |
Inventories |
|
583.1 |
|
|
577.8 |
Prepaid expenses and other current assets |
|
279.1 |
|
|
262.1 |
Property, plant and equipment, net |
|
1,441.3 |
|
|
1,443.8 |
Marketable securities |
|
— |
|
|
7.4 |
Right-of-use assets |
|
180.5 |
|
|
169.6 |
Goodwill |
|
734.8 |
|
|
2,492.0 |
Intangible assets, net |
|
2,887.3 |
|
|
2,934.3 |
Deferred tax asset |
|
24.9 |
|
|
25.9 |
Other assets |
|
222.1 |
|
|
179.6 |
Total assets |
$ |
6,703.3 |
|
$ |
8,563.1 |
|
|
|
|
||
Accounts payable |
$ |
249.6 |
|
$ |
294.8 |
Accrued payroll and related expenses |
|
108.9 |
|
|
84.8 |
Income tax payable |
|
9.5 |
|
|
11.1 |
Current portion of borrowings |
|
161.1 |
|
|
139.8 |
Other current liabilities |
|
250.7 |
|
|
303.3 |
Operating lease liabilities |
|
181.8 |
|
|
172.8 |
Long-term borrowings |
|
2,241.0 |
|
|
2,274.8 |
Deferred tax liability |
|
125.6 |
|
|
192.2 |
Other liabilities |
|
67.4 |
|
|
83.6 |
Total liabilities |
|
3,395.6 |
|
|
3,557.2 |
Total stockholders’ equity |
|
3,307.7 |
|
|
5,005.9 |
Total liabilities and stockholders’ equity |
$ |
6,703.3 |
|
$ |
8,563.1 |
QuidelOrtho Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) |
|||||||
|
Three Months Ended |
||||||
|
March 31, 2024 |
|
April 2, 2023 |
||||
Cash (used for) provided by operating activities |
$ |
(0.7 |
) |
|
$ |
188.9 |
|
Cash used for investing activities |
|
(20.2 |
) |
|
|
(68.9 |
) |
Cash used for financing activities |
|
(18.5 |
) |
|
|
(59.6 |
) |
Effect of exchange rates on cash |
|
(1.1 |
) |
|
|
0.6 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(40.5 |
) |
|
|
61.0 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
119.5 |
|
|
|
293.9 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
79.0 |
|
|
$ |
354.9 |
|
|
|
|
|
||||
Reconciliation to amounts within the consolidated balance sheets: |
|
|
|
||||
Cash and cash equivalents |
$ |
78.5 |
|
|
$ |
353.9 |
|
Restricted cash in Other assets |
|
0.5 |
|
|
|
1.0 |
|
Cash, cash equivalents and restricted cash |
$ |
79.0 |
|
|
$ |
354.9 |
|
QuidelOrtho Reconciliation of Non-GAAP Financial Information - Adjusted Net Income (In millions, except per share data; unaudited) |
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
March 31, 2024 |
|
Diluted EPS |
|
April 2, 2023 |
|
Diluted EPS |
|||||||
Net (loss) income |
$ |
(1,706.0 |
) |
|
$ |
(25.50 |
) |
|
$ |
48.8 |
|
|
$ |
0.73 |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Goodwill impairment charge |
|
1,743.9 |
|
|
|
|
|
— |
|
|
|
|||
Amortization of intangibles |
|
51.7 |
|
|
|
|
|
50.8 |
|
|
|
|||
Acquisition and integration costs |
|
22.6 |
|
|
|
|
|
29.7 |
|
|
|
|||
Incremental depreciation on PP&E fair value adjustment |
|
9.1 |
|
|
|
|
|
8.6 |
|
|
|
|||
Employee compensation charges |
|
5.6 |
|
|
|
|
|
— |
|
|
|
|||
Amortization of deferred cloud computing implementation costs |
|
2.9 |
|
|
|
|
|
1.6 |
|
|
|
|||
EU medical device regulation transition costs |
|
0.6 |
|
|
|
|
|
0.8 |
|
|
|
|||
Non-cash interest expense for deferred consideration |
|
— |
|
|
|
|
|
0.6 |
|
|
|
|||
Impairment of long-lived assets |
|
— |
|
|
|
|
|
0.5 |
|
|
|
|||
Other adjustments |
|
1.4 |
|
|
|
|
|
1.5 |
|
|
|
|||
Income tax impact of adjustments |
|
(101.4 |
) |
|
|
|
|
(22.1 |
) |
|
|
|||
Discrete tax items |
|
(0.6 |
) |
|
|
|
|
0.2 |
|
|
|
|||
Adjusted net income |
$ |
29.8 |
|
|
$ |
0.44 |
|
|
$ |
121.0 |
|
|
$ |
1.80 |
Weighted-average shares outstanding - diluted |
|
|
|
67.3 |
|
|
|
|
|
67.1 |
||||
QuidelOrtho Reconciliation of Non-GAAP Financial Information - Adjusted EBITDA (In millions, unaudited) |
||||||
|
Three Months Ended |
|||||
|
March 31, 2024 |
|
April 2, 2023 |
|||
Net (loss) income |
$ |
(1,706.0 |
) |
|
$ |
48.8 |
Depreciation and amortization |
|
114.9 |
|
|
|
114.2 |
Interest expense, net |
|
39.0 |
|
|
|
36.7 |
(Benefit from) provision for income taxes |
|
(92.9 |
) |
|
|
11.2 |
Goodwill impairment charge |
|
1,743.9 |
|
|
|
— |
Acquisition and integration costs |
|
22.6 |
|
|
|
29.7 |
Employee compensation charges |
|
5.6 |
|
|
|
— |
Amortization of deferred cloud computing implementation costs |
|
2.9 |
|
|
|
1.6 |
EU medical device regulation transition costs |
|
0.6 |
|
|
|
0.8 |
Impairment of long-lived assets |
|
— |
|
|
|
0.5 |
Tax indemnification expense |
|
— |
|
|
|
0.3 |
Other adjustments |
|
1.4 |
|
|
|
1.5 |
Adjusted EBITDA |
$ |
132.0 |
|
|
$ |
245.3 |
QuidelOrtho Revenues by Business Unit and Region (In millions, unaudited) |
||||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
||||||||||||||
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|
Currency
|
|
Constant
|
|
||||||||||||
Respiratory revenues |
$ |
137.3 |
|
|
$ |
265.6 |
|
|
(48.3 |
)% |
|
— |
% |
|
(48.3 |
)% |
|
|||||
Non-Respiratory revenues |
|
573.7 |
|
|
|
580.5 |
|
|
(1.2 |
)% |
|
(1.0 |
)% |
|
(0.2 |
)% |
|
|||||
Total revenues |
$ |
711.0 |
|
|
$ |
846.1 |
|
|
(16.0 |
)% |
|
(0.5 |
)% |
|
(15.5 |
)% |
|
|||||
COVID-19 revenue impact |
|
(50.2 |
) |
|
|
(216.1 |
) |
|
(76.8 |
)% |
|
— |
% |
|
(76.8 |
)% |
|
|||||
Total revenues ex COVID-19 revenue |
$ |
660.8 |
|
|
$ |
630.0 |
|
|
4.9 |
% |
|
(1.0 |
)% |
|
5.9 |
% |
|
|||||
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|
Currency
|
|
Constant
|
|
COVID-19
|
|
Constant Currency (a)
|
|||||||||
Labs |
$ |
356.9 |
|
|
$ |
370.7 |
|
|
(3.7 |
)% |
|
(0.8 |
)% |
|
(2.9 |
)% |
|
(0.6 |
)% |
|
(2.3 |
)% |
Transfusion Medicine |
|
160.3 |
|
|
|
155.9 |
|
|
2.8 |
% |
|
(1.3 |
)% |
|
4.1 |
% |
|
— |
% |
|
4.1 |
% |
Point of Care |
|
186.6 |
|
|
|
308.1 |
|
|
(39.4 |
)% |
|
(0.1 |
)% |
|
(39.3 |
)% |
|
(76.8 |
)% |
|
37.5 |
% |
Molecular Diagnostics |
|
7.2 |
|
|
|
11.4 |
|
|
(36.8 |
)% |
|
(0.1 |
)% |
|
(36.7 |
)% |
|
(52.0 |
)% |
|
15.3 |
% |
Total revenues |
$ |
711.0 |
|
|
$ |
846.1 |
|
|
(16.0 |
)% |
|
(0.5 |
)% |
|
(15.5 |
)% |
|
(21.4 |
)% |
|
5.9 |
% |
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|
Currency
|
|
Constant
|
|
COVID-19
|
|
Constant Currency (a)
|
|||||||||
|
$ |
433.9 |
|
|
$ |
582.8 |
|
|
(25.5 |
)% |
|
(0.2 |
)% |
|
(25.3 |
)% |
|
(30.1 |
)% |
|
4.8 |
% |
EMEA |
|
84.8 |
|
|
|
81.3 |
|
|
4.3 |
% |
|
0.5 |
% |
|
3.8 |
% |
|
(2.0 |
)% |
|
5.8 |
% |
|
|
76.1 |
|
|
|
70.6 |
|
|
7.8 |
% |
|
(4.3 |
)% |
|
12.1 |
% |
|
— |
% |
|
12.1 |
% |
Other |
|
116.2 |
|
|
|
111.4 |
|
|
4.3 |
% |
|
(1.6 |
)% |
|
5.9 |
% |
|
0.4 |
% |
|
5.5 |
% |
Total revenues |
$ |
711.0 |
|
|
$ |
846.1 |
|
|
(16.0 |
)% |
|
(0.5 |
)% |
|
(15.5 |
)% |
|
(21.4 |
)% |
|
5.9 |
% |
(a) |
The term “constant currency” means we have translated local currency revenues for all reporting periods to |
QuidelOrtho Revenues reconciliation to non-GAAP measures (In millions, unaudited) |
||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|||||||||
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|
Currency
|
|
Constant
|
|||||||
Respiratory revenues |
$ |
137.3 |
|
|
$ |
265.6 |
|
|
(48.3 |
)% |
|
— |
% |
|
(48.3 |
)% |
COVID-19-related government orders |
|
(6.7 |
) |
|
|
(142.6 |
) |
|
(95.3 |
)% |
|
— |
% |
|
(95.3 |
)% |
Respiratory Revenue ex COVID-19-related government orders |
$ |
130.6 |
|
|
$ |
123.0 |
|
|
6.2 |
% |
|
— |
% |
|
6.2 |
% |
|
Three Months Ended |
|
|
|
|
|
|
|||||||||
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|
Currency
|
|
Constant
|
|||||||
Non-Respiratory revenues |
$ |
573.7 |
|
|
$ |
580.5 |
|
|
(1.2 |
)% |
|
(1.0 |
)% |
|
(0.2 |
)% |
One-time third party settlement |
|
— |
|
|
|
(20.7 |
) |
|
(100.0 |
)% |
|
— |
% |
|
(100.0 |
)% |
Non-Respiratory Revenue ex One-time third party settlement |
$ |
573.7 |
|
|
$ |
559.8 |
|
|
2.5 |
% |
|
(1.0 |
)% |
|
3.5 |
% |
(a) |
The term “constant currency” means we have translated local currency revenues for all reporting periods to |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508696394/en/
Investor Contact:
Juliet Cunningham
Vice President, Investor Relations
IR@quidelortho.com
Media Contact:
D. Nikki Wheeler
Senior Director, Corporate Communications
media@quidelortho.com
Source: QuidelOrtho Corporation
FAQ
What was QuidelOrtho's revenue for the first quarter of 2024?
Who was appointed as President and CEO of QuidelOrtho?