QuidelOrtho Reports Third Quarter 2024 Financial Results
QuidelOrtho reported its Q3 2024 financial results, highlighting a total revenue of $727 million, down from $744 million the previous year, mainly due to higher COVID-19 and influenza revenues in the prior period. GAAP net loss was $20 million compared to $13 million last year, with a GAAP diluted loss per share of ($0.30) versus ($0.19). GAAP operating income was $15 million, down from $26 million, and GAAP operating margin was 2%, compared to 4% previously. Adjusted EPS was $0.85, slightly down from $0.90. Adjusted EBITDA was $171 million, up from $169 million, with a margin of 23.5% compared to 22.7%.
The company reinstated 2024 financial guidance, projecting total revenues of $2.75-$2.80 billion, adjusted EBITDA of $530-$550 million, and adjusted EPS of $1.69-$1.91. QuidelOrtho also emphasized ongoing cost-saving initiatives and leadership enhancements to drive future growth.
QuidelOrtho ha riportato i risultati finanziari per il terzo trimestre del 2024, evidenziando un fatturato totale di 727 milioni di dollari, in calo rispetto ai 744 milioni dell'anno precedente, principalmente a causa di entrate più elevate legate al COVID-19 e all'influenza nel periodo precedente. La perdita netta secondo i principi contabili GAAP è stata di 20 milioni di dollari rispetto ai 13 milioni dell'anno scorso, con una perdita diluita per azione secondo i principi contabili GAAP di (-0,30) rispetto a (-0,19). L'utile operativo GAAP è stato di 15 milioni di dollari, in calo rispetto ai 26 milioni, e il margine operativo GAAP è stato del 2%, rispetto al 4% di prima. L'EPS rettificato è stato di 0,85 dollari, leggermente in calo rispetto a 0,90 dollari. L'EBITDA rettificato è stato di 171 milioni di dollari, in aumento rispetto ai 169 milioni, con un margine del 23,5% rispetto al 22,7%.
L'azienda ha ripristinato le previsioni finanziarie per il 2024, stimando un fatturato totale di 2,75-2,80 miliardi di dollari, un EBITDA rettificato di 530-550 milioni di dollari e un EPS rettificato di 1,69-1,91 dollari. QuidelOrtho ha anche sottolineato l'importanza delle iniziative di riduzione dei costi e del miglioramento dirigenziale per promuovere la crescita futura.
QuidelOrtho informó sus resultados financieros del tercer trimestre de 2024, destacando un ingreso total de 727 millones de dólares, una caída respecto a los 744 millones del año anterior, principalmente debido a mayores ingresos por COVID-19 e influenza en el periodo anterior. La pérdida neta GAAP fue de 20 millones de dólares en comparación con 13 millones el año pasado, con una pérdida diluida por acción GAAP de (-0,30) frente a (-0,19). El ingreso operativo GAAP fue de 15 millones de dólares, en comparación con 26 millones, y el margen operativo GAAP fue del 2%, en comparación con el 4% anterior. El EPS ajustado fue de 0,85 dólares, ligeramente por debajo de 0,90. El EBITDA ajustado fue de 171 millones de dólares, un aumento respecto a los 169 millones, con un margen del 23,5% en comparación con 22,7%.
La compañía reinstauró su guía financiera para 2024, proyectando ingresos totales de 2.75 a 2.80 mil millones de dólares, un EBITDA ajustado de 530 a 550 millones de dólares y un EPS ajustado de 1.69 a 1.91 dólares. QuidelOrtho también enfatizó las iniciativas de ahorro de costos y las mejoras en el liderazgo para impulsar el crecimiento futuro.
QuidelOrtho는 2024년 3분기 재무 결과를 발표하며, 총 수익이 7억 2700만 달러로 전년의 7억 4400만 달러에서 감소했으며, 이는 주로 이전 기간의 COVID-19 및 독감 관련 수익 증가 때문이라고 밝혔습니다. GAAP 기준 순손실은 2000만 달러로, 지난해 1300만 달러에 비해 증가했으며, GAAP 기준 희석 주당 손실은 (-0.30)으로 작년의 (-0.19)와 비교됩니다. GAAP 운영 소득은 1500만 달러로, 이전의 2600만 달러에서 감소했으며, GAAP 운영 마진은 2%로 이전의 4%에서 감소했습니다. 조정된 EPS는 0.85달러로, 0.90달러에서 약간 하락했습니다. 조정된 EBITDA는 1억 7100만 달러로, 1억 6900만 달러에서 증가했으며, 마진은 23.5%로, 22.7%에서 상승했습니다.
회사는 2024년 재무 가이드라인을 재확인하며, 총 수익이 27억 5000만 달러에서 28억 달러, 조정된 EBITDA가 5억 3000만 달러에서 5억 5000만 달러, 조정된 EPS가 1.69달러에서 1.91달러일 것으로 예상했습니다. QuidelOrtho는 또한 미래 성장을 추진하기 위한 비용 절감 이니셔티브와 리더십 개선의 중요성을 강조했습니다.
QuidelOrtho a annoncé ses résultats financiers du troisième trimestre 2024, mettant en évidence un chiffre d'affaires total de 727 millions de dollars, en baisse par rapport à 744 millions de dollars l'année précédente, principalement en raison de revenus plus élevés liés au COVID-19 et à la grippe lors de la période précédente. La perte nette selon les normes GAAP s'élevait à 20 millions de dollars contre 13 millions de dollars l'année dernière, avec une perte diluée par action selon les normes GAAP de (-0,30) par rapport à (-0,19). Le bénéfice d'exploitation GAAP était de 15 millions de dollars, en baisse par rapport à 26 millions de dollars, et la marge opérationnelle GAAP était de 2%, contre 4% précédemment. Le BAE ajusté était de 0,85 dollar, légèrement en baisse par rapport à 0,90 dollar. Le BAEIDA ajusté était de 171 millions de dollars, en hausse par rapport à 169 millions de dollars, avec une marge de 23,5% par rapport à 22,7%.
L'entreprise a réinstauré ses prévisions financières pour 2024, projetant des revenus totaux de 2,75 à 2,80 milliards de dollars, un BAEIDA ajusté de 530 à 550 millions de dollars et un BAE ajusté de 1,69 à 1,91 dollar. QuidelOrtho a également souligné les initiatives de réduction des coûts et les améliorations de leadership en cours pour favoriser la croissance future.
QuidelOrtho berichtete über die finanziellen Ergebnisse für das 3. Quartal 2024 und hob einen Gesamtumsatz von 727 Millionen Dollar hervor, was einem Rückgang von 744 Millionen Dollar im Vorjahr entspricht, hauptsächlich aufgrund höherer COVID-19- und Influenza-Umsätze im Vorjahr. Der GAAP-Nettoverlust betrug 20 Millionen Dollar im Vergleich zu 13 Millionen Dollar im Vorjahr, während der GAAP-dilutierte Verlust pro Aktie bei (-0,30) gegenüber (-0,19) lag. Das GAAP-Betriebsergebnis betrug 15 Millionen Dollar, im Vergleich zu 26 Millionen Dollar, und die GAAP-Betriebsmarge lag bei 2%, im Vergleich zu 4% zuvor. Bereinigtes EPS betrug 0,85 Dollar, leicht rückläufig von 0,90 Dollar. Bereinigtes EBITDA betrug 171 Millionen Dollar, ein Anstieg von 169 Millionen Dollar, mit einer Marge von 23,5% im Vergleich zu 22,7%.
Das Unternehmen hat die Finanzprognosen für 2024 wiederhergestellt und prognostiziert Gesamtumsätze von 2,75 bis 2,80 Milliarden Dollar, ein bereinigtes EBITDA von 530 bis 550 Millionen Dollar und ein bereinigtes EPS von 1,69 bis 1,91 Dollar. QuidelOrtho betonte auch die fortlaufenden Kostensenkungsinitiativen und Verbesserungen im Management, um zukünftiges Wachstum zu fördern.
- Adjusted EBITDA increased to $171 million from $169 million.
- Adjusted EBITDA margin improved to 23.5% from 22.7%.
- Reinstated 2024 financial guidance with revenue projections of $2.75-$2.80 billion.
- Projected adjusted EBITDA of $530-$550 million for 2024.
- Projected adjusted EPS of $1.69-$1.91 for 2024.
- Implemented cost-saving initiatives leading to reduced operating expenses.
- Total revenue decreased to $727 million from $744 million.
- GAAP net loss increased to $20 million from $13 million.
- GAAP diluted loss per share worsened to ($0.30) from ($0.19).
- GAAP operating income decreased to $15 million from $26 million.
- GAAP operating margin fell to 2% from 4%.
- Adjusted EPS decreased to $0.85 from $0.90.
Insights
The Q3 2024 results reveal concerning trends with
Key concerns include:
- Declining operating income from
$26 million to$15 million - Operating margin deterioration from
4% to2% - Integration costs of
$37 million weighing on profitability
The reinstated 2024 guidance targeting
The Labs segment shows promise with
The market appears skeptical about near-term execution, reflected in:
- Adjusted EPS decline to
$0.85 from$0.90 - Conservative guidance with adjusted EBITDA margins of
19.3-19.6%
Leadership additions in technology and HR suggest organizational transformation, but benefits may take time to materialize.
― Company reinstates 2024 financial guidance ―
― Drives cost-savings and growth initiatives ―
― Strengthens leadership team and aligns organization for improved effectiveness ―
Third Quarter 2024 Results and Recent Developments
(all comparisons are to the prior year period)
-
Reported revenue was
$727 million -
Recurring revenue1 was
as reported with no significant change in constant currency, excluding COVID-19 and$598 million U.S. Donor Screening revenue -
Labs revenue grew
4% as reported and5% in constant currency
-
Recurring revenue1 was
-
GAAP operating expenses2 of
decreased by$242 million ; non-GAAP operating expenses of$13 million decreased by$232 million , reflecting ongoing implementation of cost efficiencies$17 million -
GAAP net loss margin was (
3% ); GAAP operating margin was2% ; adjusted EBITDA margin was23.5% , an increase of 80 basis points -
GAAP net cash provided by operating activities was
; adjusted free cash flow was$118 million $120 million - Strengthened leadership team with the addition of a new Chief Technology Officer and Chief Human Resources Officer
“We delivered solid third quarter results, giving us confidence that our strategic priorities and focus on our customers, business growth and margin improvement are gaining traction,” said Brian J. Blaser, President and Chief Executive Officer, QuidelOrtho. “We remain focused on our top business-critical priorities, including delivering on our customer commitments with the highest levels of quality and compliance, as well as executing on company-wide cost-savings and business efficiency initiatives. Further, we continue to reinforce the strength of our leadership team with key talent hires, while also aligning our organization to be more agile, reducing complexity and increasing customer focus.”
Third Quarter 2024
The Company reported total revenue for the third quarter of 2024 of
GAAP diluted loss per share for the third quarter of 2024 was (
Adjusted diluted earnings per share (“EPS”) for the third quarter of 2024 was
_____________________________ | ||
1 |
Recurring revenue, a non-GAAP measure, means revenues from sales of our assays, reagents, consumables and services, and excludes instruments. See “Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures. |
|
2 |
Operating expenses includes Selling, Marketing and Administrative and Research and Development expenses. |
Full-year 2024 Financial Guidance
The Company reinstated its full year 2024 financial guidance as of November 7, 2024, as follows:
Total revenues (reported) |
|
Adjusted EBITDA |
|
Adjusted EBITDA margin |
|
Adjusted diluted EPS |
|
Please see the Third Quarter 2024 Financial Results presentation on the “Investor Relations” page of the Company’s website for the assumptions on which the Company’s 2024 financial guidance is based. |
Joseph Busky, Chief Financial Officer of QuidelOrtho remarked, “Our decision to reinstate our full year financial guidance reflects our solid performance in the first nine months of the year, and more importantly, increased visibility into the impact of our cost-savings initiatives. This 2024 financial guidance is in line with the commentary we shared earlier this year. Looking forward, the cost-savings initiatives support our previously announced plan to achieve
A reconciliation of forward-looking non-GAAP measures, including adjusted EBITDA, adjusted EBITDA margin and adjusted diluted EPS, to the most directly comparable GAAP measures is not provided because comparable GAAP measures for such measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. We are not, without unreasonable effort, able to reliably predict the impact of impairment charges and related tax benefits, employee compensation costs and other adjustments. These items are uncertain, depend on various factors and may have a material impact on our future GAAP results. In addition, the Company believes any such reconciliation would imply a degree of precision and certainty that could be confusing to investors. See "Forward-Looking Statements" and "Non-GAAP Financial Measures."
Conference Call Information
QuidelOrtho will hold a conference call beginning at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results. 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 117739.
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.
QuidelOrtho is dedicated to advancing diagnostics to power a healthier future. For more information, please visit quidelortho.com and follow QuidelOrtho on LinkedIn, Facebook and X.
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.
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 and other strategic goals, financial guidance and other future financial condition and operating results, including results of cost-savings initiatives, 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: fluctuations in demand for QuidelOrtho’s non-respiratory and respiratory products; 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 that are considered non-GAAP financial measures under applicable rules and regulations of the Commission, including but not limited to “recurring revenue, excluding COVID-19 and
QuidelOrtho Consolidated Statements of Operations (Unaudited) (In millions except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||||||
Total revenues |
$ |
727.1 |
|
|
$ |
744.0 |
|
|
$ |
2,075.1 |
|
|
$ |
2,255.2 |
|
Cost of sales, excluding amortization of intangibles |
|
374.8 |
|
|
|
374.6 |
|
|
|
1,114.7 |
|
|
|
1,140.7 |
|
Selling, marketing and administrative |
|
186.4 |
|
|
|
194.1 |
|
|
|
579.3 |
|
|
|
575.6 |
|
Research and development |
|
55.9 |
|
|
|
61.5 |
|
|
|
171.4 |
|
|
|
185.7 |
|
Amortization of intangible assets |
|
51.9 |
|
|
|
51.4 |
|
|
|
155.5 |
|
|
|
153.6 |
|
Integration related costs |
|
36.8 |
|
|
|
26.5 |
|
|
|
90.3 |
|
|
|
80.4 |
|
Goodwill impairment charge |
|
— |
|
|
|
— |
|
|
|
1,743.9 |
|
|
|
— |
|
Asset impairment charge |
|
— |
|
|
|
2.2 |
|
|
|
56.9 |
|
|
|
3.2 |
|
Other operating expenses |
|
6.3 |
|
|
|
7.4 |
|
|
|
23.6 |
|
|
|
17.0 |
|
Operating income (loss) |
|
15.0 |
|
|
|
26.3 |
|
|
|
(1,860.5 |
) |
|
|
99.0 |
|
Interest expense, net |
|
42.9 |
|
|
|
37.7 |
|
|
|
122.9 |
|
|
|
110.9 |
|
Other expense, net |
|
0.9 |
|
|
|
4.1 |
|
|
|
7.2 |
|
|
|
8.0 |
|
Loss before income taxes |
|
(28.8 |
) |
|
|
(15.5 |
) |
|
|
(1,990.6 |
) |
|
|
(19.9 |
) |
Benefit from income taxes |
|
(8.9 |
) |
|
|
(2.8 |
) |
|
|
(117.0 |
) |
|
|
(2.8 |
) |
Net loss |
$ |
(19.9 |
) |
|
$ |
(12.7 |
) |
|
$ |
(1,873.6 |
) |
|
$ |
(17.1 |
) |
Basic loss per share |
$ |
(0.30 |
) |
|
$ |
(0.19 |
) |
|
$ |
(27.92 |
) |
|
$ |
(0.26 |
) |
Diluted loss per share |
$ |
(0.30 |
) |
|
$ |
(0.19 |
) |
|
$ |
(27.92 |
) |
|
$ |
(0.26 |
) |
Weighted-average shares outstanding - basic |
|
67.3 |
|
|
|
66.9 |
|
|
|
67.1 |
|
|
|
66.8 |
|
Weighted-average shares outstanding - diluted |
|
67.3 |
|
|
|
66.9 |
|
|
|
67.1 |
|
|
|
66.8 |
|
QuidelOrtho Condensed Consolidated Balance Sheets (Unaudited) (In millions) |
|||||
|
September 29, 2024 |
|
December 31, 2023 |
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
143.7 |
|
$ |
118.9 |
Marketable securities |
|
— |
|
|
48.4 |
Accounts receivable, net |
|
294.9 |
|
|
303.3 |
Inventories |
|
577.0 |
|
|
577.8 |
Prepaid expenses and other current assets |
|
344.2 |
|
|
262.1 |
Assets held for sale |
|
52.8 |
|
|
— |
Total current assets |
|
1,412.6 |
|
|
1,310.5 |
Property, plant and equipment, net |
|
1,363.9 |
|
|
1,443.8 |
Marketable securities |
|
— |
|
|
7.4 |
Right-of-use assets |
|
175.3 |
|
|
169.6 |
Goodwill |
|
770.6 |
|
|
2,492.0 |
Intangible assets, net |
|
2,795.9 |
|
|
2,934.3 |
Deferred tax assets |
|
25.7 |
|
|
25.9 |
Other assets |
|
257.1 |
|
|
179.6 |
Total assets |
$ |
6,801.1 |
|
$ |
8,563.1 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
247.2 |
|
$ |
294.8 |
Accrued payroll and related expenses |
|
113.0 |
|
|
84.8 |
Income tax payable |
|
1.9 |
|
|
11.1 |
Current portion of borrowings |
|
373.8 |
|
|
139.8 |
Other current liabilities |
|
291.4 |
|
|
303.3 |
Total current liabilities |
|
1,027.3 |
|
|
833.8 |
Operating lease liabilities |
|
174.0 |
|
|
172.8 |
Long-term borrowings |
|
2,176.6 |
|
|
2,274.8 |
Deferred tax liability |
|
117.2 |
|
|
192.2 |
Other liabilities |
|
119.3 |
|
|
83.6 |
Total liabilities |
|
3,614.4 |
|
|
3,557.2 |
Total stockholders’ equity |
|
3,186.7 |
|
|
5,005.9 |
Total liabilities and stockholders’ equity |
$ |
6,801.1 |
|
$ |
8,563.1 |
QuidelOrtho Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) |
|||||||
|
Nine Months Ended |
||||||
|
September 29, 2024 |
|
October 1, 2023 |
||||
Cash provided by operating activities |
$ |
19.3 |
|
|
$ |
199.8 |
|
Cash used for investing activities |
|
(112.0 |
) |
|
|
(132.5 |
) |
Cash provided by (used for) financing activities |
|
117.7 |
|
|
|
(208.0 |
) |
Effect of exchange rates on cash |
|
(0.5 |
) |
|
|
(3.3 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
24.5 |
|
|
|
(144.0 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
119.5 |
|
|
|
293.9 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
144.0 |
|
|
$ |
149.9 |
|
|
|
|
|
||||
Reconciliation to amounts within the consolidated balance sheets: |
|
|
|
||||
Cash and cash equivalents |
$ |
143.7 |
|
|
$ |
149.3 |
|
Restricted cash in Other assets |
|
0.3 |
|
|
|
0.6 |
|
Cash, cash equivalents and restricted cash |
$ |
144.0 |
|
|
$ |
149.9 |
|
QuidelOrtho Reconciliation of Non-GAAP Financial Information - Adjusted Net Income (In millions, except per share data; unaudited) |
|||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||||||
|
September 29, 2024 |
|
Diluted EPS |
|
October 1, 2023 |
|
Diluted EPS |
|
September 29, 2024 |
|
Diluted EPS |
|
October 1, 2023 |
|
Diluted EPS |
||||||||||||||||
Net loss |
$ |
(19.9 |
) |
|
$ |
(0.30 |
) |
|
$ |
(12.7 |
) |
|
$ |
(0.19 |
) |
|
$ |
(1,873.6 |
) |
|
$ |
(27.92 |
) |
|
$ |
(17.1 |
) |
|
$ |
(0.26 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of intangibles |
|
51.9 |
|
|
|
|
|
51.4 |
|
|
|
|
|
155.5 |
|
|
|
|
|
153.6 |
|
|
|
||||||||
Integration related costs |
|
36.8 |
|
|
|
|
|
26.5 |
|
|
|
|
|
90.3 |
|
|
|
|
|
80.4 |
|
|
|
||||||||
Goodwill impairment charge |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,743.9 |
|
|
|
|
|
— |
|
|
|
||||||||
Asset impairment charge |
|
— |
|
|
|
|
|
2.2 |
|
|
|
|
|
56.9 |
|
|
|
|
|
3.2 |
|
|
|
||||||||
Incremental depreciation on PP&E fair value adjustment |
|
8.6 |
|
|
|
|
|
8.2 |
|
|
|
|
|
26.8 |
|
|
|
|
|
25.3 |
|
|
|
||||||||
Amortization of deferred cloud computing implementation costs |
|
4.7 |
|
|
|
|
|
2.8 |
|
|
|
|
|
10.6 |
|
|
|
|
|
5.9 |
|
|
|
||||||||
EU medical device regulation transition costs |
|
0.4 |
|
|
|
|
|
0.4 |
|
|
|
|
|
1.5 |
|
|
|
|
|
1.9 |
|
|
|
||||||||
Loss on investments |
|
— |
|
|
|
|
|
1.0 |
|
|
|
|
|
— |
|
|
|
|
|
1.2 |
|
|
|
||||||||
Employee compensation charges |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5.6 |
|
|
|
|
|
— |
|
|
|
||||||||
Credit Agreement amendment fees |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
4.0 |
|
|
|
|
|
— |
|
|
|
||||||||
Non-cash interest expense for deferred consideration |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
0.7 |
|
|
|
||||||||
Other adjustments |
|
1.6 |
|
|
|
|
|
1.1 |
|
|
|
|
|
3.4 |
|
|
|
|
|
2.6 |
|
|
|
||||||||
Income tax impact of adjustments |
|
(23.4 |
) |
|
|
|
|
(20.2 |
) |
|
|
|
|
(136.0 |
) |
|
|
|
|
(57.5 |
) |
|
|
||||||||
Discrete tax items |
|
(3.3 |
) |
|
|
|
|
— |
|
|
|
|
|
(6.5 |
) |
|
|
|
|
(1.1 |
) |
|
|
||||||||
Adjusted net income |
$ |
57.4 |
|
|
$ |
0.85 |
|
|
$ |
60.7 |
|
|
$ |
0.90 |
|
|
$ |
82.4 |
|
|
$ |
1.22 |
|
|
$ |
199.1 |
|
|
$ |
2.96 |
|
Weighted-average shares outstanding - diluted |
|
|
|
67.5 |
|
|
|
|
|
67.3 |
|
|
|
|
|
67.4 |
|
|
|
|
|
67.3 |
|
QuidelOrtho Reconciliation of Non-GAAP Financial Information - Non-GAAP Operating Expenses (In millions, unaudited) |
|||||||||||||||||||
|
Three Months Ended September 29, 2024 |
|
Three Months Ended October 1, 2023 |
||||||||||||||||
|
GAAP |
|
Adjustments(a) |
|
Non-GAAP |
|
GAAP |
|
Adjustments(a) |
|
Non-GAAP |
||||||||
Selling, marketing and administrative |
$ |
186.4 |
|
$ |
(9.5 |
) |
|
$ |
176.9 |
|
$ |
194.1 |
|
$ |
(5.9 |
) |
|
$ |
188.2 |
Research and development |
|
55.9 |
|
|
(0.7 |
) |
|
|
55.2 |
|
|
61.5 |
|
|
(0.3 |
) |
|
|
61.2 |
Operating expenses |
$ |
242.3 |
|
$ |
(10.2 |
) |
|
$ |
232.1 |
|
$ |
255.6 |
|
$ |
(6.2 |
) |
|
$ |
249.4 |
(a) |
Includes the following non-GAAP adjustments: incremental depreciation on PP&E fair value adjustment, amortization of deferred cloud computing implementation costs, EU medical device regulation transition costs and other adjustments. |
QuidelOrtho Reconciliation of Non-GAAP Financial Information - Adjusted EBITDA (In millions, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||||||
Net loss |
$ |
(19.9 |
) |
|
$ |
(12.7 |
) |
|
$ |
(1,873.6 |
) |
|
$ |
(17.1 |
) |
Depreciation and amortization |
|
113.1 |
|
|
|
113.1 |
|
|
|
344.1 |
|
|
|
341.8 |
|
Interest expense, net |
|
42.9 |
|
|
|
37.7 |
|
|
|
122.9 |
|
|
|
110.9 |
|
Benefit from income taxes |
|
(8.9 |
) |
|
|
(2.8 |
) |
|
|
(117.0 |
) |
|
|
(2.8 |
) |
Integration related costs |
|
36.8 |
|
|
|
26.5 |
|
|
|
90.3 |
|
|
|
80.4 |
|
Goodwill impairment charge |
|
— |
|
|
|
— |
|
|
|
1,743.9 |
|
|
|
— |
|
Asset impairment charge |
|
— |
|
|
|
2.2 |
|
|
|
56.9 |
|
|
|
3.2 |
|
Amortization of deferred cloud computing implementation costs |
|
4.7 |
|
|
|
2.8 |
|
|
|
10.6 |
|
|
|
5.9 |
|
EU medical device regulation transition costs |
|
0.4 |
|
|
|
0.4 |
|
|
|
1.5 |
|
|
|
1.9 |
|
Loss on investments |
|
— |
|
|
|
1.0 |
|
|
|
— |
|
|
|
1.2 |
|
Employee compensation charges |
|
— |
|
|
|
— |
|
|
|
5.6 |
|
|
|
— |
|
Credit Agreement amendment fees |
|
— |
|
|
|
— |
|
|
|
4.0 |
|
|
|
— |
|
Tax indemnification income |
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.2 |
) |
Other adjustments |
|
1.6 |
|
|
|
1.1 |
|
|
|
3.4 |
|
|
|
2.6 |
|
Adjusted EBITDA |
$ |
170.7 |
|
|
$ |
169.2 |
|
|
$ |
392.6 |
|
|
$ |
527.8 |
|
|
|
|
|
|
|
|
|
||||||||
Total revenues |
$ |
727.1 |
|
|
$ |
744.0 |
|
|
$ |
2,075.1 |
|
|
$ |
2,255.2 |
|
Adjusted EBITDA margin |
|
23.5 |
% |
|
|
22.7 |
% |
|
|
18.9 |
% |
|
|
23.4 |
% |
QuidelOrtho Revenues by Business Unit and Region (In millions, unaudited) |
||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
||||||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
% Change |
|
Currency Impact |
|
Constant Currency (a) |
|
||||||||||
Respiratory revenues |
$ |
165.4 |
|
$ |
185.4 |
|
(10.8 |
)% |
|
— |
% |
|
(10.8 |
)% |
|
|||||
Non-Respiratory revenues |
|
561.7 |
|
|
558.6 |
|
0.6 |
% |
|
(0.6 |
)% |
|
1.2 |
% |
|
|||||
Total revenues |
$ |
727.1 |
|
$ |
744.0 |
|
(2.3 |
)% |
|
(0.5 |
)% |
|
(1.8 |
)% |
|
|||||
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
% Change |
|
Currency Impact |
|
Constant Currency (a) |
|
Less: COVID-19 revenue impact |
|
Constant Currency (a) ex COVID-19 Revenue |
|||||||
Labs |
$ |
355.9 |
|
$ |
341.4 |
|
4.2 |
% |
|
(1.0 |
)% |
|
5.2 |
% |
|
(0.2 |
)% |
|
5.4 |
% |
Immunohematology |
|
132.0 |
|
|
128.9 |
|
2.4 |
% |
|
(0.7 |
)% |
|
3.1 |
% |
|
— |
% |
|
3.1 |
% |
Donor Screening |
|
28.0 |
|
|
35.0 |
|
(20.0 |
)% |
|
— |
% |
|
(20.0 |
)% |
|
— |
% |
|
(20.0 |
)% |
Point of Care |
|
205.6 |
|
|
233.1 |
|
(11.8 |
)% |
|
0.1 |
% |
|
(11.9 |
)% |
|
0.3 |
% |
|
(12.2 |
)% |
Molecular Diagnostics |
|
5.6 |
|
|
5.6 |
|
— |
% |
|
0.6 |
% |
|
(0.6 |
)% |
|
(7.8 |
)% |
|
7.2 |
% |
Total revenues |
$ |
727.1 |
|
$ |
744.0 |
|
(2.3 |
)% |
|
(0.5 |
)% |
|
(1.8 |
)% |
|
(1.3 |
)% |
|
(0.5 |
)% |
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
% Change |
|
Currency Impact |
|
Constant Currency (a) |
|
Less: COVID-19 revenue impact |
|
Constant Currency (a) ex COVID-19 Revenue |
|||||||
|
$ |
436.2 |
|
$ |
465.2 |
|
(6.2 |
)% |
|
0.3 |
% |
|
(6.5 |
)% |
|
(1.0 |
)% |
|
(5.5 |
)% |
EMEA |
|
84.0 |
|
|
74.5 |
|
12.8 |
% |
|
1.0 |
% |
|
11.8 |
% |
|
(0.4 |
)% |
|
12.2 |
% |
|
|
80.4 |
|
|
81.1 |
|
(0.9 |
)% |
|
0.3 |
% |
|
(1.2 |
)% |
|
— |
% |
|
(1.2 |
)% |
Other |
|
126.5 |
|
|
123.2 |
|
2.7 |
% |
|
(5.3 |
)% |
|
8.0 |
% |
|
(0.6 |
)% |
|
8.6 |
% |
Total revenues |
$ |
727.1 |
|
$ |
744.0 |
|
(2.3 |
)% |
|
(0.5 |
)% |
|
(1.8 |
)% |
|
(1.3 |
)% |
|
(0.5 |
)% |
(a) |
The term “constant currency” means we have translated local currency revenues for all reporting periods to |
|
Nine Months Ended |
|
|
|
|
|
|
|
||||||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
% Change |
|
Currency Impact |
|
Constant Currency (a) |
|
||||||||||
Respiratory revenues |
$ |
360.7 |
|
$ |
540.0 |
|
(33.2 |
)% |
|
— |
% |
|
(33.2 |
)% |
|
|||||
Non-Respiratory revenues |
|
1,714.4 |
|
|
1,715.2 |
|
— |
% |
|
(0.9 |
)% |
|
0.9 |
% |
|
|||||
Total revenues (b) |
$ |
2,075.1 |
|
$ |
2,255.2 |
|
(8.0 |
)% |
|
(0.6 |
)% |
|
(7.4 |
)% |
|
|||||
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
% Change |
|
Currency Impact |
|
Constant Currency (a) |
|
Less: COVID-19 revenue impact |
|
Constant Currency (a) ex COVID-19 Revenue |
|||||||
Labs (b) |
$ |
1,067.0 |
|
$ |
1,073.5 |
|
(0.6 |
)% |
|
(0.9 |
)% |
|
0.3 |
% |
|
(0.5 |
)% |
|
0.8 |
% |
Immunohematology |
|
385.9 |
|
|
380.1 |
|
1.5 |
% |
|
(1.5 |
)% |
|
3.0 |
% |
|
— |
% |
|
3.0 |
% |
Donor Screening |
|
95.7 |
|
|
103.0 |
|
(7.1 |
)% |
|
— |
% |
|
(7.1 |
)% |
|
— |
% |
|
(7.1 |
)% |
Point of Care |
|
509.3 |
|
|
675.4 |
|
(24.6 |
)% |
|
— |
% |
|
(24.6 |
)% |
|
(35.2 |
)% |
|
10.6 |
% |
Molecular Diagnostics |
|
17.2 |
|
|
23.2 |
|
(25.9 |
)% |
|
0.1 |
% |
|
(26.0 |
)% |
|
(29.5 |
)% |
|
3.5 |
% |
Total revenues (b) |
$ |
2,075.1 |
|
$ |
2,255.2 |
|
(8.0 |
)% |
|
(0.6 |
)% |
|
(7.4 |
)% |
|
(10.0 |
)% |
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
% Change |
|
Currency Impact |
|
Constant Currency (a) |
|
Less: COVID-19 revenue impact |
|
Constant Currency (a) ex COVID-19 Revenue |
|||||||
|
$ |
1,220.2 |
|
$ |
1,426.8 |
|
(14.5 |
)% |
|
— |
% |
|
(14.5 |
)% |
|
(14.8 |
)% |
|
0.3 |
% |
EMEA |
|
249.9 |
|
|
236.4 |
|
5.7 |
% |
|
0.3 |
% |
|
5.4 |
% |
|
(1.0 |
)% |
|
6.4 |
% |
|
|
238.1 |
|
|
233.0 |
|
2.2 |
% |
|
(2.4 |
)% |
|
4.6 |
% |
|
— |
% |
|
4.6 |
% |
Other |
|
366.9 |
|
|
359.0 |
|
2.2 |
% |
|
(3.4 |
)% |
|
5.6 |
% |
|
(0.2 |
)% |
|
5.8 |
% |
Total revenues (b) |
$ |
2,075.1 |
|
$ |
2,255.2 |
|
(8.0 |
)% |
|
(0.6 |
)% |
|
(7.4 |
)% |
|
(10.0 |
)% |
|
2.6 |
% |
(a) |
The term “constant currency” means we have translated local currency revenues for all reporting periods to |
|
(b) |
The nine months ended October 1, 2023 includes an approximate |
QuidelOrtho Reconciliation of Non-GAAP Financial Information - Recurring Revenue (In millions, unaudited) |
||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
% Change |
|
Currency Impact |
|
Constant Currency (a) |
|||||||
Total revenues |
$ |
727.1 |
|
|
$ |
744.0 |
|
|
(2.3 |
)% |
|
(0.5 |
)% |
|
(1.8 |
)% |
COVID-19 revenue |
|
(72.3 |
) |
|
|
(82.2 |
) |
|
|
|
|
|
|
|||
Instrument revenue |
|
(30.1 |
) |
|
|
(33.8 |
) |
|
|
|
|
|
|
|||
|
|
(26.8 |
) |
|
|
(32.3 |
) |
|
|
|
|
|
|
|||
Total recurring revenue(b), ex-COVID-19 and |
$ |
597.9 |
|
|
$ |
595.7 |
|
|
0.4 |
% |
|
(0.5 |
)% |
|
0.9 |
% |
|
Nine Months Ended |
|
|
|
|
|
|
|||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
% Change |
|
Currency Impact |
|
Constant Currency (a) |
|||||||
Total revenues |
$ |
2,075.1 |
|
|
$ |
2,255.2 |
|
|
(8.0 |
)% |
|
(0.6 |
)% |
|
(7.4 |
)% |
COVID-19 revenue |
|
(141.4 |
) |
|
|
(354.2 |
) |
|
|
|
|
|
|
|||
Instrument revenue |
|
(105.9 |
) |
|
|
(114.7 |
) |
|
|
|
|
|
|
|||
|
|
(92.2 |
) |
|
|
(97.5 |
) |
|
|
|
|
|
|
|||
One-time third-party settlement |
|
— |
|
|
|
(19.2 |
) |
|
|
|
|
|
|
|||
Total recurring revenue(b), ex-COVID-19, |
$ |
1,735.6 |
|
|
$ |
1,669.6 |
|
|
4.0 |
% |
|
(0.9 |
)% |
|
4.9 |
% |
(a) |
The term “constant currency” means we have translated local currency revenues for all reporting periods to |
|
(b) |
Recurring revenue, a non-GAAP measure, means revenues from sales of our assays, reagents, consumables and services, and excludes instruments. See “Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures. |
QuidelOrtho Reconciliation of Non-GAAP Financial Information - Adjusted Free Cash Flow (In millions, unaudited) |
|||
|
Three Months Ended |
||
|
September 29, 2024 |
||
Net cash provided by operating activities |
$ |
117.9 |
|
Adjustments: |
|
||
Capital expenditures (including investments) |
|
(46.5 |
) |
Less: Payments for investments |
|
(0.6 |
) |
Capital expenditures |
|
(45.9 |
) |
Other payments (a) |
|
47.8 |
|
Adjusted free cash flow (b) |
$ |
119.8 |
|
(a) |
For the three months ended September 29, 2024, other payments include |
|
(b) |
Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. For example, adjusted free cash flow does not incorporate the portion of payments representing principal reductions of debt or cash payments for business acquisitions. Therefore, we believe it is important to view free cash flow only as a complement to our Condensed Consolidated Statements of Cash Flows. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107504430/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
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