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QuidelOrtho Reports Third Quarter 2024 Financial Results

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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.

QuidelOrtho2024년 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.

Positive
  • 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.
Negative
  • 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 $727 million in revenue, down from $744 million year-over-year and a GAAP net loss of $20 million. The 23.5% adjusted EBITDA margin shows modest improvement, up 80 basis points.

Key concerns include:

  • Declining operating income from $26 million to $15 million
  • Operating margin deterioration from 4% to 2%
  • Integration costs of $37 million weighing on profitability

The reinstated 2024 guidance targeting $2.75-2.80 billion in revenue and adjusted EBITDA of $530-550 million appears conservative. The $100 million cost-savings initiative is critical for margin recovery, but execution risks remain.

The Labs segment shows promise with 4% reported growth (5% constant currency), indicating strength in core operations. However, the decline in COVID-19 and influenza revenue highlights the need to accelerate growth in recurring revenue streams, which remained flat in constant currency at $598 million.

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 $598 million as reported with no significant change in constant currency, excluding COVID-19 and U.S. Donor Screening revenue
    • Labs revenue grew 4% as reported and 5% in constant currency
  • GAAP operating expenses2 of $242 million decreased by $13 million; non-GAAP operating expenses of $232 million decreased by $17 million, reflecting ongoing implementation of cost efficiencies
  • GAAP net loss margin was (3%); GAAP operating margin was 2%; adjusted EBITDA margin was 23.5%, an increase of 80 basis points
  • GAAP net cash provided by operating activities was $118 million; adjusted free cash flow was $120 million
  • Strengthened leadership team with the addition of a new Chief Technology Officer and Chief Human Resources Officer

SAN DIEGO--(BUSINESS WIRE)-- QuidelOrtho Corporation (Nasdaq: QDEL) (the “Company” or “QuidelOrtho”), a global provider of innovative in-vitro diagnostic technologies designed for point-of-care settings, clinical labs, and transfusion medicine, today announced financial results for the third quarter ended September 29, 2024.

“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 $727 million, compared to $744 million in the prior year period. The decrease in total revenue was primarily due to higher COVID-19 and influenza revenue in the prior year period. Foreign currency translation impacted the Company’s Labs business by 100 basis points but did not significantly impact the Company’s overall third quarter 2024 revenue.

GAAP diluted loss per share for the third quarter of 2024 was ($0.30), compared to diluted loss per share of ($0.19) in the prior year period. GAAP net loss for the third quarter of 2024 was $20 million, compared to $13 million in the prior year period. GAAP operating income for the third quarter of 2024 was $15 million, compared to an operating income of $26 million in the prior year period, and GAAP operating margin was 2%, compared to 4% in the prior year period. Third quarter 2024 results included $37 million in integration-related charges.

Adjusted diluted earnings per share (“EPS”) for the third quarter of 2024 was $0.85, compared to adjusted diluted EPS of $0.90 in the prior year period. Adjusted EBITDA for the third quarter of 2024 was $171 million, compared to $169 million in the prior year period. Adjusted EBITDA margin for the third quarter of 2024 was 23.5%, compared to 22.7% in the prior year period.

_____________________________

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)

$2.75 - $2.80 billion

Adjusted EBITDA

$530$550 million

Adjusted EBITDA margin

19.3% - 19.6%

Adjusted diluted EPS

$1.69 - $1.91

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 $100 million in annualized cost-savings and position us to realize incremental cost-savings in the future.”

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 U.S. Donor Screening revenue,” “constant currency, recurring revenue and revenue changes, excluding COVID-19 and U.S. Donor Screening revenue,” “constant currency, Labs revenue and revenue changes,” “non-GAAP operating expenses,” “adjusted diluted EPS,” “adjusted EBITDA,” “adjusted EBITDA margin,” “adjusted free cash flow” and other non-GAAP financial measures included in the reconciliation tables accompanying this press release. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures eliminate impacts of certain non-cash, unusual or other items that the Company does not consider indicative of its ongoing operating performance, and the Company generally uses these non-GAAP financial measures to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results and comparison to competitors’ operating results. The Company’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company’s business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and reports filed with the Commission in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this press release.

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

North America

$

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

%

China

 

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 U.S. dollars using currency exchange rates held constant for each period. This additional non-GAAP financial information is not meant to be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP.

 

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

North America

$

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

%

China

 

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 U.S. dollars using currency exchange rates held constant for each period. This additional non-GAAP financial information is not meant to be considered in isolation from or as substitute for financial information prepared in accordance with GAAP.

(b)

The nine months ended October 1, 2023 includes an approximate $19 million settlement award from a third party related to one of the Company’s collaboration agreements.

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

)

 

 

 

 

 

 

U.S. Donor Screening revenue

 

(26.8

)

 

 

(32.3

)

 

 

 

 

 

 

Total recurring revenue(b), ex-COVID-19 and U.S. Donor Screening revenue

$

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

)

 

 

 

 

 

 

U.S. Donor Screening revenue

 

(92.2

)

 

 

(97.5

)

 

 

 

 

 

 

One-time third-party settlement

 

 

 

 

(19.2

)

 

 

 

 

 

 

Total recurring revenue(b), ex-COVID-19, U.S. Donor Screening revenue, and one-time third-party settlement

$

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 U.S. dollars using currency exchange rates held constant for each period. This additional non-GAAP financial information is not meant to be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP.

(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 $25.7 million related to acquisition, integration and other costs, $20.3 million of integration-related cloud computing implementation costs and $1.8 million of other integration-related capital expenditures.

(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.

 

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 were QuidelOrtho's total revenues for Q3 2024?

QuidelOrtho reported total revenues of $727 million for Q3 2024.

What was QuidelOrtho's GAAP net loss for Q3 2024?

QuidelOrtho's GAAP net loss for Q3 2024 was $20 million.

What was the GAAP diluted loss per share for QuidelOrtho in Q3 2024?

The GAAP diluted loss per share for QuidelOrtho in Q3 2024 was ($0.30).

What is QuidelOrtho's 2024 financial guidance?

QuidelOrtho's 2024 financial guidance projects total revenues of $2.75-$2.80 billion, adjusted EBITDA of $530-$550 million, and adjusted EPS of $1.69-$1.91.

How did QuidelOrtho's adjusted EBITDA perform in Q3 2024?

QuidelOrtho's adjusted EBITDA for Q3 2024 was $171 million, up from $169 million in the prior year.

QuidelOrtho Corporation

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