Quidel Reports Fourth Quarter and Full Year 2020 Financial Results
Quidel Corporation (NASDAQ: QDEL) reported robust financial results for Q4 and the full year 2020, showcasing a 432% surge in revenue to $809.2 million compared to Q4 2019. COVID-19 product sales reached $678.7 million. The company reported a GAAP EPS of $10.78 and a non-GAAP EPS of $11.07, significantly up from $0.71 and $1.00 respectively in the prior year. For the full year, revenue climbed 211% to $1.66 billion, driven mainly by its COVID-19 diagnostic offerings. New product launches and a strong balance sheet position Quidel for growth into 2021.
- Total revenue for Q4 2020 increased by 432% to $809.2 million, driven by COVID-19 products.
- GAAP EPS for Q4 2020 was $10.78, significantly up from $0.71 in Q4 2019.
- Non-GAAP EPS for Q4 2020 was $11.07, up from $1.00 in Q4 2019.
- Full year 2020 revenue increased by 211% to $1.66 billion, led by COVID-19 product sales.
- Gross margin improved to 87% in Q4 2020 from 62% in Q4 2019, due to high-margin COVID-19 products.
- Specialized Diagnostic Solutions revenue decreased by 20% in Q4 2020 compared to Q4 2019.
- Sales and marketing expenses increased by $10.2 million in Q4 2020, raising concerns over cost management.
Quidel Corporation (NASDAQ: QDEL), a provider of rapid diagnostic testing solutions, cellular-based virology assays and molecular diagnostic systems, announced today financial results for the fourth quarter and year ended December 31, 2020.
Fourth Quarter 2020 Highlights
-
Total revenue increased
432% to$809.2 million , from$152.2 million in the fourth quarter of 2019. -
Revenue for COVID-19 products was
$678.7 million . -
Reported GAAP EPS of
$10.78 per diluted share in the fourth quarter of 2020, compared with$0.71 per diluted share in the fourth quarter of 2019. -
Reported non-GAAP EPS of
$11.07 per diluted share in the fourth quarter of 2020, compared with$1.00 per diluted share in the fourth quarter of 2019. - Received Emergency Use Authorization (EUA) for Sofia® 2 Flu + SARS Antigen FIA rapid test.
- Received EUA for QuickVue® SARS Antigen test for the professional point-of-care segment.
- Received EUA for Solana® SARS-CoV-2 Assay for use with the Solana® molecular diagnostic system.
Full Year 2020 Highlights
-
Total revenue increased
211% to$1,661.7 million , from$534.9 million in 2019. -
Revenue for COVID-19 products was
$1,164.4 million . -
Reported GAAP EPS of
$18.60 per diluted share in the 2020, compared with$1.73 per diluted share in 2019. -
Reported non-GAAP EPS of
$19.92 per diluted share in 2020, compared with$2.97 per diluted share in 2019. - Received EUA for 6 different COVID-19 diagnostic products, ranging from PCR to isothermal molecular to rapid antigen technologies.
Fourth Quarter 2020 Results
Total revenue for the fourth quarter of 2020 was
Rapid Immunoassay product revenue increased by
“Looking back on Q4 and the full year of 2020, it is hard to overstate how the ingenuity and resilience of our people -- their dedication and sheer force of will to make a difference in fighting the pandemic -- has transformed our company and benefited our customers,” said Douglas Bryant, president and CEO of Quidel Corporation. “In the quarter, our R&D teams developed six COVID-19 diagnostic assays across multiple technologies, our regulatory affairs teams secured EUAs to bring them to market and our operations teams built manufacturing lines and managed complex supply chains to vastly scale our production. Our tests have saved countless lives, allowed athletic seasons to resume and empowered people to take charge of their own health and safeguard others. It has been a privilege to witness and work alongside the Quidel Team, and our numbers for the year reflect the intensity and efficiency of the effort. The net result is our strongest balance sheet ever and an excellent competitive position entering 2021.
“We will soon be launching two exciting new products: Savanna, a multiplex molecular analyzer that we believe will be another flagship product in the history of the company; and the Sofia Q analyzer, a tiny product with the potential to eventually serve several 'new markets,' including the telemedicine and OTC markets. The addition of these products to our core portfolio positions us well for future growth," Mr. Bryant noted.
Gross Profit in the fourth quarter of 2020 increased to
In the fourth quarter of 2020, the Company recorded an income tax expense of
Net income for the fourth quarter was
Results for the Twelve Months Ended December 31, 2020
Total revenue for the twelve months ended December 31, 2020 was
Rapid Immunoassay product revenue increased
Gross Profit in the twelve months ended December 31, 2020 increased to
Net income for the twelve months ended December 31, 2020 was
Non-GAAP Financial Information
The Company is providing non-GAAP financial information to exclude the effect of stock-based compensation, amortization of intangibles, non-cash interest expense, foreign exchange gains and losses and certain non-recurring items on net income and earnings per share as a supplement to its consolidated financial statements, which are presented in accordance with generally accepted accounting principles in the U.S., or GAAP.
Management is providing the adjusted gross profit, adjusted operating income, adjusted net income, adjusted net earnings per share, and constant currency revenue information for the periods presented because it believes this enhances the comparison of the Company’s financial performance from period-to-period, and to that of its competitors. Constant currency revenue is calculated by translating current period revenues using prior period exchange rates, net of any hedging effect recognized in the current period. Constant currency revenue growth (expressed as a percentage) is calculated by determining the change in current period constant currency revenues over prior period revenues. This press release is not meant to be considered in isolation, or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures to the comparable GAAP measures is included in this press release as part of the attached financial tables.
Conference Call Information
Quidel management will host a conference call to discuss the fiscal fourth quarter and full year 2020 results as well as other business matters today beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). During the conference call, management may answer questions concerning business and financial developments and trends. Quidel’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed.
Investors may either join the live call by telephone, or join via webcast:
- To participate in the live call by telephone from the U.S., please dial 833-968-2118, or from outside the U.S. dial 778-560-2849, and request either the “Quidel Q4 and FY 2020 Earnings Call” when prompted by the conference call operator, or dial conference ID 339-3433.
- To join the live webcast, participants may click on the following link directly: https://event.on24.com/wcc/r/2948384/3C5838A0099F31657278AD32E3BDD754, or via the Investor Relations section of the Quidel website (http://ir.quidel.com).
The website replay will be available for 1 year. The telephone replay will be available for 14 days beginning at 8:00 p.m. Eastern Time (5:00 p.m. Pacific Time) on February 18th, 2020 by dialing 800-585-8367 from the U.S., or by dialing 416-621-4642 for international callers, and entering pass code 339-3433.
About Quidel Corporation
Quidel Corporation (Nasdaq: QDEL) is a leading manufacturer of diagnostic solutions at the point of care, delivering a continuum of rapid testing technologies that further improve the quality of health care throughout the globe. An innovator for over 40 years in the medical device industry, Quidel pioneered the first FDA-cleared point-of-care test for influenza in 1999 and was the first to market a rapid SARS-CoV-2 antigen test in the U.S. Under trusted brand names Sofia®, Solana®, Lyra®, Triage® and QuickVue®, Quidel’s comprehensive product portfolio includes tests for a wide range of infectious diseases, cardiac and autoimmune biomarkers, as well as a host of products to detect COVID-19. With products made in America, Quidel’s mission is to provide patients with immediate and frequent access to highly accurate, affordable testing for the good of our families, our communities and the world. For more information about Quidel, visit quidel.com.
View our story told by our people at www.quidel.com/ourstory.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws that involve material risks, assumptions and uncertainties. Many possible events or factors could affect our future results and performance, such that our actual results and performance may differ materially from those that may be described or implied in the forward-looking statements. As such, no forward-looking statement can be guaranteed. Differences in actual results and performance may arise as a result of a number of factors including, without limitation: the impact and duration of the COVID-19 global pandemic; competition from other providers of diagnostic products; our ability to accurately forecast demand for our products and products in development, including in new market segments; our ability to develop new technologies, products and markets and to commercialize new products; our reliance on sales of our COVID-19 and influenza diagnostic tests; our reliance on a limited number of key distributors; quantity of our product in our distributors’ inventory or distribution channels; changes in the buying patterns of our distributors; the financial soundness of our customers and suppliers; lower than anticipated market penetration of our products; third-party reimbursement policies and potential cost constraints; our ability to meet demand for our products; interruptions, delays or shortages in the supply of raw materials, components and other products and services; failures in our information technology and storage systems; our exposure to data corruption, cyber-based attacks, security breaches and privacy violations; international risks, including but not limited to, economic, political and regulatory risks; continuing worldwide political and social uncertainty; our development, acquisition and protection of proprietary technology rights; intellectual property risks, including but not limited to, infringement litigation; the loss of Emergency Use Authorizations for our COVID-19 products and failures or delays in receipt of reviews or regulatory approvals, clearances or authorizations for new products or related to currently-marketed products by the U.S. Food and Drug Administration (the “FDA”) or other regulatory authorities or loss of any previously received regulatory approvals, clearances or authorizations or other adverse actions by regulatory authorities; our contracts with government entities involve future funding, compliance and possible sanctions risks; product defects; changes in government policies and regulations and compliance risks related thereto; our ability to manage our growth strategy and successfully identify, acquire and integrate potential acquisition targets or technologies and our ability to obtain financing; our acquisition of Alere’s Triage® business presents certain risks to our business and operations; the level of our deferred payment obligations; our exposure to claims and litigation that could result in significant expenses and could ultimately result in an unfavorable outcome for us, including the ongoing litigation between us and Beckman Coulter, Inc.; we may need to raise additional funds to finance our future capital or operating needs; our debt, deferred and contingent payment obligations; competition for and loss of management and key personnel; business risks not covered by insurance; changes in tax rates and exposure to additional tax liabilities or assessments; and provisions in our charter documents and Delaware law that might delay or impede stockholder actions with respect to business combinations or similar transactions. Forward-looking statements typically are identified by the use of terms such as “may,” “will,” “should,” “might,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “goal,” “project,” “strategy,” “future,” and similar words, although some forward-looking statements are expressed differently. The risks described in reports and registration statements that we file with the Securities and Exchange Commission from time to time, should be carefully considered, including those discussed in Item 1A, “Risk Factors” and elsewhere in our Annual Report on Form 10‑K for the year ended December 31, 2019 and in our subsequent Quarterly Reports on Form 10‑Q. You are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date of this press release. Except as required by law, we undertake no obligation to publicly release any revision or update of these forward-looking statements, whether as a result of new information, future events or otherwise.
QUIDEL CORPORATION (In thousands, except per share data; unaudited) |
|||||||
|
Three months ended December 31, |
||||||
Consolidated Statements of Operations: |
2020 |
|
2019 |
||||
Total revenues |
$ |
809,203 |
|
|
$ |
152,178 |
|
Cost of sales |
107,709 |
|
|
57,338 |
|
||
Gross profit |
701,494 |
|
|
94,840 |
|
||
Research and development |
25,495 |
|
|
14,924 |
|
||
Sales and marketing |
38,239 |
|
|
28,000 |
|
||
General and administrative |
20,165 |
|
|
14,302 |
|
||
Acquisition and integration costs |
519 |
|
|
2,551 |
|
||
Total operating expenses |
84,418 |
|
|
59,777 |
|
||
Operating income |
617,076 |
|
|
35,063 |
|
||
Other expense, net |
|
|
|
||||
Interest and other expense, net |
(1,552 |
) |
|
(2,551 |
) |
||
Total other expense, net |
(1,552 |
) |
|
(2,551 |
) |
||
Income before income taxes |
615,524 |
|
|
32,512 |
|
||
Provision for income taxes |
145,394 |
|
|
1,886 |
|
||
Net income |
$ |
470,130 |
|
|
$ |
30,626 |
|
|
|
|
|
||||
Basic earnings per share |
$ |
11.14 |
|
|
$ |
0.73 |
|
Diluted earnings per share |
$ |
10.78 |
|
|
$ |
0.71 |
|
Shares used in basic per share calculation |
42,211 |
|
|
41,875 |
|
||
Shares used in diluted per share calculation |
43,622 |
|
|
43,290 |
|
||
|
|
|
|
||||
Gross profit as a % of total revenues |
87 |
% |
|
62 |
% |
||
Research and development as a % of total revenues |
3 |
% |
|
10 |
% |
||
Sales and marketing as a % of total revenues |
5 |
% |
|
18 |
% |
||
General and administrative as a % of total revenues |
2 |
% |
|
9 |
% |
||
|
|
|
|
||||
Consolidated net revenues by product category are as follows: |
|
|
|
||||
Rapid Immunoassay |
$ |
631,253 |
|
|
$ |
64,936 |
|
Cardiometabolic Immunoassay |
70,031 |
|
|
65,831 |
|
||
Molecular Diagnostic Solutions |
96,431 |
|
|
7,073 |
|
||
Specialized Diagnostic Solutions |
11,488 |
|
|
14,338 |
|
||
Total revenues |
$ |
809,203 |
|
|
$ |
152,178 |
|
|
|
|
|
||||
Condensed balance sheet data: |
12/31/2020 |
|
12/31/2019 |
||||
Cash and cash equivalents |
$ |
489,941 |
|
|
$ |
52,775 |
|
Accounts receivable, net |
$ |
497,688 |
|
|
$ |
94,496 |
|
Inventories |
$ |
113,798 |
|
|
$ |
58,086 |
|
Total assets |
$ |
1,871,164 |
|
|
$ |
910,867 |
|
Short-term debt |
$ |
238 |
|
|
$ |
13,135 |
|
Long-term debt |
$ |
4,100 |
|
|
$ |
4,375 |
|
Stockholders’ equity |
$ |
1,332,703 |
|
|
$ |
559,820 |
|
QUIDEL CORPORATION (In thousands, except per share data; unaudited) |
|||||||
|
Twelve months ended December 31, |
||||||
Consolidated Statements of Operations: |
2020 |
|
2019 |
||||
Total revenues |
$ |
1,661,668 |
|
|
$ |
534,890 |
|
Cost of sales |
312,813 |
|
|
214,085 |
|
||
Gross profit |
1,348,855 |
|
|
320,805 |
|
||
Research and development |
84,292 |
|
|
52,553 |
|
||
Sales and marketing |
133,957 |
|
|
111,114 |
|
||
General and administrative |
66,586 |
|
|
52,755 |
|
||
Acquisition and integration costs |
3,694 |
|
|
11,667 |
|
||
Total operating expenses |
288,529 |
|
|
228,089 |
|
||
Operating income |
1,060,326 |
|
|
92,716 |
|
||
Other expense, net |
|
|
|
||||
Interest and other expense, net |
(9,623 |
) |
|
(14,790 |
) |
||
Loss on extinguishment of debt |
(10,384 |
) |
|
(748 |
) |
||
Total other expense, net |
(20,007 |
) |
|
(15,538 |
) |
||
Income before income taxes |
1,040,319 |
|
|
77,178 |
|
||
Provision for income taxes |
230,032 |
|
|
4,257 |
|
||
Net income |
$ |
810,287 |
|
|
$ |
72,921 |
|
|
|
|
|
||||
Basic earnings per share |
$ |
19.24 |
|
|
$ |
1.78 |
|
Diluted earnings per share |
$ |
18.60 |
|
|
$ |
1.73 |
|
Shares used in basic per share calculation |
42,124 |
|
|
40,860 |
|
||
Shares used in diluted per share calculation |
43,591 |
|
|
43,111 |
|
||
|
|
|
|
||||
Gross profit as a % of total revenues |
81 |
% |
|
60 |
% |
||
Research and development as a % of total revenues |
5 |
% |
|
10 |
% |
||
Sales and marketing as a % of total revenues |
8 |
% |
|
21 |
% |
||
General and administrative as a % of total revenues |
4 |
% |
|
10 |
% |
||
|
|
|
|
||||
Consolidated net revenues by product category are as follows: |
|
|
|
||||
Rapid Immunoassay |
$ |
1,144,831 |
|
|
$ |
191,736 |
|
Cardiometabolic Immunoassay |
242,933 |
|
|
266,505 |
|
||
Molecular Diagnostic Solutions |
222,964 |
|
|
21,716 |
|
||
Specialized Diagnostic Solutions |
50,940 |
|
|
54,933 |
|
||
Total revenues |
$ |
1,661,668 |
|
|
$ |
534,890 |
|
QUIDEL CORPORATION Reconciliation of Non-GAAP Financial Information (In thousands, except per share data; unaudited) |
|||||||||||||||||||||||||||||||
|
Three months ended December 31, |
||||||||||||||||||||||||||||||
|
Gross Profit |
|
Operating Income |
|
Net Income |
|
Diluted EPS |
||||||||||||||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||||||
GAAP Financial Results |
$ |
701,494 |
|
|
$ |
94,840 |
|
|
$ |
617,076 |
|
|
$ |
35,063 |
|
|
$ |
470,130 |
|
|
$ |
30,626 |
|
|
|
|
|
||||
Interest expense on Convertible Senior Notes, net of tax |
|
|
|
|
|
|
|
|
(13 |
) |
|
179 |
|
|
|
|
|
||||||||||||||
Net income used for diluted earnings per share, if-converted method |
|
|
|
|
|
|
|
|
470,117 |
|
|
30,805 |
|
|
$ |
10.78 |
|
|
$ |
0.71 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-cash stock compensation expense |
780 |
|
|
355 |
|
|
6,458 |
|
|
3,168 |
|
|
6,458 |
|
|
3,168 |
|
|
|
|
|
||||||||||
Amortization of intangibles |
1,901 |
|
|
1,970 |
|
|
7,166 |
|
|
7,043 |
|
|
7,166 |
|
|
7,043 |
|
|
|
|
|
||||||||||
Amortization of debt issuance costs on credit facility |
|
|
|
|
|
|
|
|
100 |
|
|
100 |
|
|
|
|
|
||||||||||||||
Non-cash interest expense for deferred consideration |
|
|
|
|
|
|
|
|
1,543 |
|
|
1,872 |
|
|
|
|
|
||||||||||||||
Change in fair value of acquisition contingencies |
|
|
|
|
557 |
|
|
841 |
|
|
557 |
|
|
841 |
|
|
|
|
|
||||||||||||
Acquisition and integration costs |
|
|
|
|
519 |
|
|
2,551 |
|
|
519 |
|
|
2,551 |
|
|
|
|
|
||||||||||||
Foreign exchange (gain) loss |
|
|
|
|
|
|
|
|
(307 |
) |
|
59 |
|
|
|
|
|
||||||||||||||
Income tax impact of adjustments (a) |
|
|
|
|
|
|
|
|
(3,368 |
) |
|
(2,970 |
) |
|
|
|
|
||||||||||||||
Adjusted |
$ |
704,175 |
|
|
$ |
97,165 |
|
|
$ |
631,776 |
|
|
$ |
48,666 |
|
|
$ |
482,785 |
|
|
$ |
43,469 |
|
|
$ |
11.07 |
|
|
$ |
1.00 |
|
(a) |
Income tax impact of adjustments represents the tax impact related to the non-GAAP adjustments listed above and reflects an effective tax rate of |
QUIDEL CORPORATION Reconciliation of Non-GAAP Financial Information (In thousands, except per share data; unaudited) |
|||||||||||||||||||||||||||||||
|
Twelve months ended December 31, |
||||||||||||||||||||||||||||||
|
Gross Profit |
|
Operating Income |
|
Net Income |
|
Diluted EPS |
||||||||||||||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||||||
GAAP Financial Results |
$ |
1,348,855 |
|
|
$ |
320,805 |
|
|
$ |
1,060,326 |
|
|
$ |
92,716 |
|
|
$ |
810,287 |
|
|
$ |
72,921 |
|
|
|
|
|
||||
Interest expense on Convertible Senior Notes, net of tax |
|
|
|
|
|
|
|
|
445 |
|
|
1,848 |
|
|
|
|
|
||||||||||||||
Net income used for diluted earnings per share, if-converted method |
|
|
|
|
|
|
|
|
810,732 |
|
|
74,769 |
|
|
$ |
18.60 |
|
|
$ |
1.73 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-cash stock compensation expense |
2,012 |
|
|
1,162 |
|
|
21,019 |
|
|
13,252 |
|
|
21,019 |
|
|
13,252 |
|
|
|
|
|
||||||||||
Amortization of intangibles |
7,665 |
|
|
7,746 |
|
|
28,398 |
|
|
27,956 |
|
|
28,398 |
|
|
27,956 |
|
|
|
|
|
||||||||||
Amortization of debt issuance costs on credit facility |
|
|
|
|
|
|
|
|
403 |
|
|
403 |
|
|
|
|
|
||||||||||||||
Non-cash interest expense for deferred consideration |
|
|
|
|
|
|
|
|
6,569 |
|
|
8,224 |
|
|
|
|
|
||||||||||||||
Loss on extinguishment of Convertible Senior Notes |
|
|
|
|
|
|
|
|
10,384 |
|
|
748 |
|
|
|
|
|
||||||||||||||
Change in fair value of acquisition contingencies |
|
|
|
|
1,405 |
|
|
1,467 |
|
|
1,405 |
|
|
1,467 |
|
|
|
|
|
||||||||||||
Change in fair value of derivative liabilities - Convertible Senior Note |
|
|
|
|
|
|
|
|
1,084 |
|
|
— |
|
|
|
|
|
||||||||||||||
Acquisition and integration costs |
|
|
|
|
3,694 |
|
|
11,667 |
|
|
3,694 |
|
|
11,667 |
|
|
|
|
|
||||||||||||
Foreign exchange loss |
|
|
|
|
|
|
|
|
40 |
|
|
1,794 |
|
|
|
|
|
||||||||||||||
Income tax impact of adjustments (a) |
|
|
|
|
|
|
|
|
(15,329 |
) |
|
(12,447 |
) |
|
|
|
|
||||||||||||||
Adjusted |
$ |
1,358,532 |
|
|
$ |
329,713 |
|
|
$ |
1,114,842 |
|
|
$ |
147,058 |
|
|
$ |
868,399 |
|
|
$ |
127,833 |
|
|
$ |
19.92 |
|
|
$ |
2.97 |
|
(a) |
Income tax impact of adjustments represents the tax impact related to the non-GAAP adjustments listed above and reflects an effective tax rate of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210218006003/en/
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