- Revenue of $1.196 Billion
- GAAP Net Income Attributable to Bausch + Lomb Corporation of
$4 Million
- Adjusted EBITDA (non-GAAP)1 of $212 Million;
Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)1 of $227
Million
- Revenue Grew 19% as Reported and 19% on a Constant Currency1
Basis Compared to the Third Quarter of 2023, Driven by Solid
Execution and Growth Across All Segments
- Raising Full-Year 2024 Revenue Guidance
Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye
health company dedicated to helping people see better to live
better, today announced its third-quarter 2024 financial
results.
“Our focus on execution continues to drive growth, with
significant opportunity ahead,” said Brent Saunders, chairman and
CEO, Bausch + Lomb. “We’re in the middle of multi-dimensional
launch cycles around the world, covering all our businesses and
targeting all our audiences.”
Select Third-Quarter Company Highlights
- Execution story continues with broad-based growth across all
segments and geographies
- Strengthened leadership in dry eye with solid performance from
MIEBO®, XIIDRA® and OTC dry eye portfolio
- Expanded high-margin premium IOL portfolio with launch of
enVista® Envy™ in Canada and U.S. Food and Drug Administration
approval
Third-Quarter 2024 Revenue Performance Total reported
revenue was $1.196 billion for the third quarter of 2024, as
compared to $1.007 billion in the third quarter of 2023, an
increase of $189 million, or 19%. Excluding the unfavorable impact
of foreign exchange of $5 million, revenue increased by
approximately 19% on a constant currency1 basis compared to the
third quarter of 2023.
Revenue by segment was as follows:
Third-Quarter 2024
(in millions)
Three Months Ended
September 30
Reported
Change
Reported
Change
Change at
Constant Currency1
(non-GAAP)
2024
2023
Total Bausch + Lomb Revenue
$1,196
$1,007
$189
19%
19%
Vision Care
$684
$648
$36
6%
6%
Surgical
$206
$185
$21
11%
12%
Pharmaceuticals
$306
$174
$132
76%
76%
Vision Care Segment Vision Care segment revenue was $684
million for the third quarter of 2024, as compared to $648 million
for the third quarter of 2023, an increase of $36 million, or 6%.
Excluding the unfavorable impact of foreign exchange of $4 million,
segment revenue increased on a constant currency1 basis by
approximately 6% compared to the third quarter of 2023, primarily
due to sales from the dry eye portfolio within the consumer
business and SiHy Daily lenses within the contact lens
business.
Surgical Segment Surgical segment revenue was $206
million for the third quarter of 2024, as compared to $185 million
for the third quarter of 2023, an increase of $21 million, or 11%.
Excluding the unfavorable impact of foreign exchange of $1 million,
segment revenue increased on a constant currency1 basis by
approximately 12% compared to the third quarter of 2023, primarily
due to increased demand for consumables, equipment and
implantables, driven by the premium IOL portfolio.
Pharmaceuticals Segment Pharmaceuticals segment revenue
was $306 million for the third quarter of 2024, as compared to $174
million for the third quarter of 2023, an increase of $132 million,
or 76%. Foreign exchange impact was negligible and segment revenue
increased on a constant currency1 basis by approximately 76%
compared to the third quarter of 2023, primarily due to incremental
sales from the acquisition of XIIDRA, launch of MIEBO and growth in
International Pharmaceuticals.
Operating Results Operating income was $43 million for
the third quarter of 2024, as compared to $40 million for the third
quarter of 2023, an increase of $3 million. The change was driven
by the increase in gross profit contribution, partially offset by
higher selling, advertising and promotion costs primarily
attributable to XIIDRA and the launch of MIEBO.
Net Income Net income attributable to Bausch + Lomb
Corporation for the third quarter of 2024 was $4 million, as
compared to a net loss of $84 million for the third quarter of
2023, a favorable change of $88 million. The increase was primarily
due to a favorable change in income taxes and the increase in
operating results noted above, partially offset by the increase in
interest expense.
Adjusted net income attributable to Bausch + Lomb Corporation
(non-GAAP)1 for the third quarter of 2024 was $46 million, as
compared to $76 million for the third quarter of 2023, a decrease
of $30 million.
Cash Flow from Operations Cash flow from operations for
the third quarter of 2024 was $154 million, as compared to cash
flow from operations of $48 million for the third quarter of 2023,
an increase of $106 million. Cash flow from operations was
positively impacted by increased gross profit and improved working
capital initiatives, partially offset by increased interest
payments.
Earnings Per Share GAAP Earnings Per Share (“EPS”) Basic
and Diluted attributable to Bausch + Lomb Corporation for the third
quarter of 2024 was $0.01, as compared to ($0.24) for the third
quarter of 2023. Adjusted EPS attributable to Bausch + Lomb
Corporation (non-GAAP)1 for the third quarter of 2024 was $0.13, as
compared to $0.22 for the third quarter of 2023. Adjusted EPS
attributable to Bausch + Lomb Corporation excluding Acquired
IPR&D (non-GAAP)1 for the third quarter of 2024 was $0.17, as
compared to $0.22 for the third quarter of 2023.
Adjusted EBITDA (non-GAAP)1 Adjusted EBITDA
(non-GAAP)1 was $212 million for the third quarter of 2024, as
compared to $187 million for the third quarter of 2023, an increase
of $25 million, primarily due to the increase in sales, as noted
above, partially offset by an investment in launch products,
including MIEBO and XIIDRA. Adjusted EBITDA excluding Acquired
IPR&D (non-GAAP)1 was $227 million for the third quarter of
2024, as compared to $187 million for the third quarter of
2023.
2024 Financial Outlook2 Bausch + Lomb raised
revenue guidance for the full year of 2024 as follows:
As of July 31, 2024
As of October 30, 2024
Full-year revenue
$4.700 – $4.800 billion ~16-18% constant
currency growth1
$4.725 – $4.825 billion3 ~16-18% constant
currency growth1
Full-year Adjusted EBITDA
excluding Acquired IPR&D
(non-GAAP)1,4
$850 – $900 million
$850 – $900 million
Full-year revenue foreign
exchange headwinds
-$90 million
-$75 million3
Other than with respect to GAAP revenue, the company only
provides guidance on a non-GAAP basis. The company does not provide
a reconciliation of forward-looking Adjusted EBITDA excluding
Acquired IPR&D (non-GAAP)1 to GAAP net income (loss)
attributable to Bausch + Lomb Corporation or of forward-looking
constant currency revenue growth1 to reported revenue growth, due
to the inherent difficulty in forecasting and quantifying certain
amounts that are necessary for such reconciliations. These amounts
may be material and, therefore, could result in the projected GAAP
measure or ratio being materially different or less than the
projected non-GAAP measure or ratio. These statements represent
forward-looking information and may represent a financial outlook,
and actual results may vary. Please see the risks and assumptions
referred to in the Forward-looking Statements section of this news
release.
Balance Sheet Highlights
- Bausch + Lomb’s cash, cash equivalents and restricted cash were
$350 million at September 30, 2024
- Basic weighted average shares outstanding for the third quarter
of 2024 were 351.9 million, and diluted weighted average shares
outstanding for the third quarter of 2024 were 353.9 million5
Conference Call Details
Date:
Wednesday, October 30, 2024
Time:
8:00 a.m. ET
Webcast:
https://www.webcaster4.com/Webcast/Page/2883/49633
Participant Event Dial-in:
+1 (888) 506-0062 (North
America)
+1 (973) 528-0011
(International)
Participant Access Code:
331072
Replay Dial-in:
+1 (877) 481-4010 (North
America)
+1 (919) 882-2331
(International)
Replay Passcode:
49633 (replay available until
November 13, 2024)
About Bausch + Lomb Bausch + Lomb is dedicated to
protecting and enhancing the gift of sight for millions of people
around the world – from birth through every phase of life. Its
comprehensive portfolio of approximately 400 products includes
contact lenses, lens care products, eye care products, ophthalmic
pharmaceuticals, over-the-counter products and ophthalmic surgical
devices and instruments. Founded in 1853, Bausch + Lomb has a
significant global research and development, manufacturing and
commercial footprint with approximately 13,000 employees and a
presence in nearly 100 countries. Bausch + Lomb is headquartered in
Vaughan, Ontario, with corporate offices in Bridgewater, New
Jersey. For more information, visit www.bausch.com and connect with
us on X, LinkedIn, Facebook and Instagram.
Forward-looking Statements This news release contains
forward-looking information and statements within the meaning of
applicable securities laws (collectively, “forward-looking
statements”), which may generally be identified by the use of the
words “anticipates,” “hopes,” “expects,” “intends,” “plans,”
“projects,” “predicts,” “forecasts,” “should,” “could,” “would,”
“may,” “might,” “will,” “strive,” “believes,” “estimates,”
“potential,” “target,” “guidance,” “outlook,” or “continue” and
positive and negative variations or similar expressions and phrases
or statements that certain actions, events or results may, could,
should or will be achieved, received or taken, or will occur or
result, and similar such expressions also identify forward-looking
information. Forward-looking statements include statements
regarding Bausch + Lomb’s future prospects and performance,
including the company’s 2024 full-year guidance. These
forward-looking statements, including the company’s full-year
guidance, are based upon the current expectations and beliefs of
management and are provided for the purpose of providing additional
information about such expectations and beliefs, and readers are
cautioned that these statements may not be appropriate for other
purposes. These forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
These risks and uncertainties include, but are not limited to, the
risks and uncertainties discussed in Bausch + Lomb’s filings with
the U.S. Securities and Exchange Commission (“SEC”) and the
Canadian Securities Administrators (the “CSA”) (including the
company’s Annual Report on Form 10-K for the year ended Dec. 31,
2023 (which was filed with the SEC and CSA on Feb. 21, 2024) and
its most recent quarterly filings), which factors are incorporated
herein by reference. They also include, but are not limited to,
risks and uncertainties respecting the proposed plan to separate
Bausch + Lomb into an independent, publicly traded company,
separate from the remainder of Bausch Health Companies Inc. (“BHC”)
(the “separation”), which include, but are not limited to, the
expected benefits and costs of the separation, the expected timing
of completion of the separation and its terms (including the
expectation that, if the separation is to be effected through the
transfer of all or a portion of BHC’s remaining direct or indirect
equity interest in Bausch + Lomb to its shareholders (the
“distribution”), then it will be completed following the
achievement of targeted debt leverage ratios, subject to receipt of
applicable shareholder and other necessary approvals and other
factors, including those described in BHC’s public statements), the
ability to complete the distribution considering the various
conditions to the completion of the distribution (some of which are
outside the company’s and BHC’s control, including conditions
related to regulatory matters and receipt of applicable shareholder
and other approvals), the impact of any potential sales of the
company’s common shares by BHC, that market or other conditions are
no longer favorable to completing the transaction, that applicable
shareholder, stock exchange, regulatory or other approval is not
obtained on the terms or timelines anticipated or at all, business
disruption during the pendency of or following the separation,
diversion of management time on separation-related issues,
retention of existing management team members, the reaction of
customers and other parties to the separation, the structure of the
distribution, the qualification of the distribution as a tax-free
transaction for Canadian and/or U.S. federal income tax purposes
(including whether or not an advance ruling from the Canada Revenue
Agency and/or the Internal Revenue Service will be sought or
obtained), the ability of the company and BHC to satisfy the
conditions required to maintain the tax-free status of such
distribution (some of which are beyond their control), other
potential tax or other liabilities that may arise as a result of
the distribution, the potential dis-synergy costs resulting from
the separation, the impact of the separation on relationships with
customers, suppliers, employees and other business counterparties,
general economic conditions, conditions in the markets the company
is engaged in, behavior of customers, suppliers and competitors,
technological developments and legal and regulatory rules affecting
the company’s business. In particular, the company can offer no
assurance that the separation will occur at all, or that any
separation will occur on the terms and timelines or in the manner
anticipated by the company and BHC. They also include risks and
uncertainties relating to acquisitions and other business
development transactions the company may pursue and complete, such
as the acquisition of XIIDRA® and certain other ophthalmology
assets, including risks that the company may not realize the
expected benefits of that transaction on a timely basis or at all
and risks relating to increased levels of debt as a result of debt
incurred to finance such transaction, including in regards to
compliance with our debt covenants. Finally, they also include, but
are not limited to, risks and uncertainties caused by or relating
to adverse economic conditions and other macroeconomic factors,
including inflation, slower growth or a potential recession, which
could adversely impact our revenue, expenses and resulting margins,
and economic factors over which we have no control, including
inflationary pressures as a result of historically high domestic
and global inflation and otherwise, interest rates, foreign
currency rates, and the potential effect of such factors on
revenue, expenses and resulting margins. In addition, certain
material factors and assumptions have been applied in making these
forward-looking statements, including, without limitation, the
assumption that the risks and uncertainties outlined above will not
cause actual results or events to differ materially from those
described in these forward-looking statements. In addition,
management has also made certain assumptions regarding our 2024
full-year guidance with respect to expectations regarding base
performance growth, expectations regarding performance of certain
of our key products (including XIIDRA® and MIEBO®), currency
impact, run-rate dis-synergies and inflation, expectations
regarding adjusted gross margin (non-GAAP), adjusted SG&A
expense (non-GAAP) and the company’s ability to continue to manage
such expense in the manner anticipated, adjusted tax rate and full
year capex and the anticipated timing and extent of the company’s
R&D expense.
Readers are cautioned not to place undue reliance on any of
these forward-looking statements. These forward-looking statements
speak only as of the date hereof. Bausch + Lomb undertakes no
obligation to update any of these forward-looking statements to
reflect events or circumstances after the date of this news release
or to reflect actual outcomes, unless required by law.
Links provided in this news release are solely for information
purposes and do not constitute Bausch + Lomb affirming any
forward-looking statements contained in the linked content.
Non-GAAP Information To supplement the financial measures
prepared in accordance with U.S. generally accepted accounting
principles (GAAP), the company uses certain non-GAAP financial
measures and ratios. Management uses these non-GAAP measures and
ratios as key metrics in the evaluation of the company’s
performance and the consolidated financial results and, in part, in
the determination of cash bonuses for its executive officers. The
company believes these non-GAAP measures and ratios are useful to
investors in their assessment of our operating performance and the
valuation of the company. In addition, these non-GAAP measures and
ratios address questions the company routinely receives from
analysts and investors, and in order to assure that all investors
have access to similar data, the company has determined that it is
appropriate to make this data available to all investors.
These measures and ratios do not have any standardized meaning
under GAAP and other companies may use similarly titled non-GAAP
financial measures and ratios that are calculated differently from
the way we calculate such measures and ratios. Accordingly, our
non-GAAP financial measures and ratios may not be comparable to
similar non-GAAP measures and ratios of other companies. We caution
investors not to place undue reliance on such non-GAAP measures and
ratios, but instead to consider them with the most directly
comparable GAAP measures and ratios. Non-GAAP financial measures
and ratios have limitations as analytical tools and should not be
considered in isolation. They should be considered as a supplement
to, not a substitute for, or superior to, the corresponding
measures calculated in accordance with GAAP.
The reconciliations of these historic non-GAAP financial
measures and ratios to the most directly comparable financial
measures and ratios calculated and presented in accordance with
GAAP are shown in the tables below.
Specific Non-GAAP Measures EBITDA,
Adjusted EBITDA and Adjusted EBITDA excluding Acquired
IPR&D EBITDA (non-GAAP) is Net income (loss)
attributable to Bausch + Lomb Corporation (its most directly
comparable U.S. GAAP financial measure) adjusted for interest,
income taxes, depreciation and amortization. Adjusted EBITDA
(non-GAAP) is EBITDA (non-GAAP) further adjusted for the items
described below. Management believes that Adjusted EBITDA
(non-GAAP), along with the GAAP measures used by management, most
appropriately reflect how the company measures the business
internally and sets operational goals and incentives. In
particular, the company believes that Adjusted EBITDA (non-GAAP)
focuses management on the company’s underlying operational results
and business performance. As a result, the company uses Adjusted
EBITDA (non-GAAP) both to assess the actual financial performance
of the company and to forecast future results as part of its
guidance. Management believes Adjusted EBITDA (non-GAAP) is a
useful measure to evaluate current performance. Adjusted EBITDA
(non-GAAP) is intended to show our unleveraged, pre-tax operating
results and therefore reflects our financial performance based on
operational factors. In addition, cash bonuses for the company’s
executive officers and other key employees are based, in part, on
the achievement of certain Adjusted EBITDA (non-GAAP) targets.
Adjusted EBITDA (non-GAAP) is Net income (loss) attributable to
Bausch + Lomb Corporation (its most directly comparable U.S. GAAP
financial measure) adjusted for interest expense, net, (benefit
from) provision for income taxes, depreciation and amortization and
further adjusted for the following items:
- Asset impairments: The company has
excluded the impact of impairments of finite-lived and
indefinite-lived intangible assets as such amounts are inconsistent
in amount and frequency and are significantly impacted by the
timing and/or size of acquisitions and divestitures. The company
believes that the adjustments of these items correlate with the
sustainability of the company’s operating performance. Although the
company excludes impairments of intangible assets from measuring
the performance of the company and its business, the company
believes that it is important for investors to understand that
intangible assets contribute to revenue generation.
- Restructuring, integration and
transformation costs: The company has incurred restructuring
costs as it implemented certain strategies, which involved, among
other things, improvements to its infrastructure and operations,
internal reorganizations and impacts from the divestiture of assets
and businesses. With regard to infrastructure and operational
improvements which the company has taken to improve efficiencies in
the businesses and facilities, these tend to be costs intended to
right size the business or organization that fluctuate
significantly between periods in amount, size and timing, depending
on the improvement project, reorganization or transaction.
Additionally, with the completion of the Bausch + Lomb IPO, as the
company prepares for post-separation operations, the company is
launching certain transformation initiatives that will result in
certain changes to and investment in its organizational structure
and operations. These transformation initiatives arise outside of
the ordinary course of continuing operations and, as is the case
with the company’s restructuring efforts, costs associated with
these transformation initiatives are expected to fluctuate between
periods in amount, size and timing. These
out-of-the-ordinary-course charges include third-party advisory
costs, as well as certain compensation-related costs (including
costs associated with changes in our executive officers, such as
the severance costs associated with the departure of the company’s
former CEO and the costs associated with the appointment of the
company’s current CEO). Investors should understand that the
outcome of these transformation initiatives may result in future
restructuring actions and certain of these charges could recur. The
company believes that the adjustments of these items provide
supplemental information with regard to the sustainability of the
company’s operating performance, allow for a comparison of the
financial results to historical operations and forward-looking
guidance and, as a result, provide useful supplemental information
to investors.
- Acquisition-related costs and adjustments
excluding amortization of intangible assets: The company has
excluded the impact of acquisition-related costs and fair value
inventory step-up resulting from acquisitions as the amounts and
frequency of such costs and adjustments are not consistent and are
significantly impacted by the timing and size of its acquisitions.
In addition, the company excludes the impact of acquisition-related
contingent consideration non-cash adjustments due to the inherent
uncertainty and volatility associated with such amounts based on
changes in assumptions with respect to fair value estimates, and
the amount and frequency of such adjustments are not consistent and
are significantly impacted by the timing and size of the company’s
acquisitions, as well as the nature of the agreed-upon
consideration.
- Share-based compensation: The
company excludes costs relating to share-based compensation. The
company believes that the exclusion of share-based compensation
expense assists investors in the comparisons of operating results
to peer companies. Share-based compensation expense can vary
significantly based on the timing, size and nature of awards
granted.
- Separation costs and separation-related
costs: The company has excluded certain costs incurred in
connection with activities taken to: (i) separate the Bausch + Lomb
business from the remainder of BHC and (ii) register the Bausch +
Lomb business as an independent publicly traded entity. Separation
costs are incremental costs directly related to effectuating the
separation of the Bausch + Lomb business from the remainder of BHC
and include, but are not limited to, legal, audit and advisory
fees, talent acquisition costs and costs associated with
establishing a new Board of Directors and Audit Committee.
Separation-related costs are incremental costs indirectly related
to the separation of the Bausch + Lomb business from the remainder
of BHC and include, but are not limited to, IT infrastructure and
software licensing costs, rebranding costs and costs associated
with facility relocation and/or modification. As these costs arise
from events outside of the ordinary course of continuing
operations, the company believes that the adjustments of these
items provide supplemental information with regard to the
sustainability of the company’s operating performance, allow for a
comparison of the financial results to historical operations and
forward-looking guidance and, as a result, provide useful
supplemental information to investors.
- Other Non-GAAP adjustments: The
company also excludes certain other amounts, including IT
infrastructure investment, litigation and other matters,
gain/(loss) on sales of assets and certain other amounts that are
the result of other, non-comparable events to measure operating
performance if and when present in the periods presented. These
events arise outside of the ordinary course of continuing
operations. Given the unique nature of the matters relating to
these costs, the company believes these items are not routine
operating expenses. For example, legal settlements and judgments
vary significantly, in their nature, size and frequency, and, due
to this volatility, the company believes the costs associated with
legal settlements and judgments are not routine operating expenses.
The company believes that the exclusion of such
out-of-the-ordinary-course amounts provides supplemental
information to assist in the comparison of the financial results of
the company from period to period and, therefore, provides useful
supplemental information to investors. However, investors should
understand that many of these costs could recur and that companies
in our industry often face litigation.
Adjusted EBITDA excluding Acquired In-Process Research and
Development (IPR&D) (non-GAAP) is Adjusted EBITDA (non-GAAP)
further adjusted to excluded Acquired IPR&D. The IPR&D
expenditures represent costs directly resulting from business
development transactions and not through the normal course of
business. The company believes that the exclusion of such
out-of-the-ordinary-course amounts provides supplemental
information to assist in the comparison of the financial results of
the company from period to period and, therefore, provides useful
supplemental information to investors in assessing our performance.
However, investors should understand that the company may enter
into additional business development transactions in the future
and, as a result, such Acquired IPR&D may recur in the
future.
Adjusted Net Income (non-GAAP)
Adjusted net income (non-GAAP) is net income (loss) attributable to
Bausch + Lomb Corporation (its most directly comparable GAAP
financial measure) adjusted for asset impairments, restructuring,
integration and transformation costs, acquisition-related
contingent consideration, separation costs and separation-related
costs and other non-GAAP adjustments, as these adjustments are
described above, and further adjusted for amortization of
intangible assets and acquisition-related costs and adjustments
excluding amortization of intangible assets, as described
below:
- Amortization of intangible assets:
The company has excluded the impact of amortization of intangible
assets, as such amounts are inconsistent in amount and frequency
and are significantly impacted by the timing and/or size of
acquisitions. The company believes that the adjustments of these
items correlate with the sustainability of the company’s operating
performance. Although the company excludes the amortization of
intangible assets from its non-GAAP expenses, the company believes
that it is important for investors to understand that such
intangible assets contribute to revenue generation. Amortization of
intangible assets that relate to past acquisitions will recur in
future periods until such intangible assets have been fully
amortized. Any future acquisitions may result in the amortization
of additional intangible assets.
- Acquisition-related costs and adjustments
excluding amortization of intangible assets: In addition to
the acquisition-related costs and adjustments as described above,
the company has excluded the expense directly attributable to
one-time commitment and structuring fees related to a bridge loan
facility put in place prior to the acquisition of XIIDRA and
certain other ophthalmology assets. The company excluded these
costs as they are outside of the ordinary course of continuing
operations and are infrequent in nature. The company believes that
the exclusion of such out-of-the-ordinary-course amounts provides
supplemental information to assist in the comparison of the
financial results of the company from period to period and,
therefore, provides useful supplemental information to
investors.
Adjusted net income (non-GAAP) excludes the impact of these
certain items that may obscure trends in the company’s underlying
performance. Management uses Adjusted net income (non-GAAP) for
strategic decision making, forecasting future results and
evaluating current performance. By disclosing this non-GAAP
measure, it is management’s intention to provide investors with a
meaningful, supplemental comparison of the company’s operating
results and trends for the periods presented. Management believes
that this measure is also useful to investors as such measure
allows investors to evaluate the company’s performance using the
same tools that management uses to evaluate past performance and
prospects for future performance. Accordingly, the company believes
that Adjusted net income (non-GAAP) is useful to investors in their
assessment of the company’s operating performance and the valuation
of the company. It is also noted that, in recent periods, our GAAP
net income (loss) attributable to Bausch + Lomb Corporation was
significantly lower than our Adjusted net income (non-GAAP).
Constant Currency Constant currency
change or constant currency revenue growth is a change in GAAP
revenue (its most directly comparable GAAP financial measure) on a
period-over-period basis adjusted for changes in foreign currency
exchange rates. The company uses Constant Currency revenue
(non-GAAP) and Constant Currency revenue Growth (non-GAAP) to
assess performance of its reportable segments, and the company in
total, without the impact of foreign currency exchange
fluctuations. The company believes that such measures are useful to
investors as they provide a supplemental period-to-period
comparison. Although changes in foreign currency exchange rates are
part of our business, they are not within management’s control.
Changes in foreign currency exchange rates, however, can mask
positive or negative trends in the underlying business performance.
Constant currency impact is determined by comparing 2024 reported
amounts adjusted to exclude currency impact, calculated using 2023
monthly average exchange rates, to the actual 2023 reported
amounts.
Adjusted EPS (non-GAAP) and Adjusted EPS
excluding Acquired IPR&D (non-GAAP) Adjusted earnings
per share or Adjusted EPS (non-GAAP) is calculated as Diluted
income per share attributable to Bausch + Lomb Corporation (“GAAP
EPS”) (its most directly comparable GAAP financial measure),
adjusted for the per diluted share impact of each adjustment made
to reconcile Net income (loss) attributable to Bausch + Lomb
Corporation to Adjusted net income (non-GAAP) as discussed above.
Adjusted EPS excluding Acquired IPR&D (non-GAAP) is Adjusted
EPS (non-GAAP) further adjusted for the per diluted share impact of
Acquired IPR&D. Like Adjusted net income (non-GAAP), Adjusted
EPS (non-GAAP) and Adjusted EPS excluding Acquired IPR&D
(non-GAAP) excludes the impact of certain items that may obscure
trends in the company’s underlying performance on a per share
basis. By disclosing this non-GAAP measure, it is management’s
intention to provide investors with a meaningful, supplemental
comparison of the company’s results and trends for the periods
presented on a diluted share basis. Accordingly, the company
believes that Adjusted EPS (non-GAAP) and Adjusted EPS excluding
Acquired IPR&D (non-GAAP) are useful to investors in their
assessment of the company’s operating performance, the valuation of
the company and an investor’s return on investment. It is also
noted that, for the periods presented, our GAAP EPS was
significantly lower than our Adjusted EPS (non-GAAP) and Adjusted
EPS excluding Acquired IPR&D (non-GAAP).
© 2024 Bausch + Lomb.
FINANCIAL TABLES FOLLOW
Bausch + Lomb Corporation
Table 1
Consolidated Statements of
Operations
For the Three and Nine Months Ended
September 30, 2024 and 2023
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions, except per share
amounts)
2024
2023
2024
2023
Revenues
Product sales
$
1,192
$
1,004
$
3,499
$
2,963
Other revenues
4
3
12
10
1,196
1,007
3,511
2,973
Expenses
Cost of goods sold (excluding amortization
and impairments of intangible assets)
464
391
1,369
1,179
Cost of other revenues
—
1
2
2
Selling, general and administrative
511
418
1,550
1,253
Research and development
84
82
250
244
Amortization of intangible assets
72
47
220
160
Other expense, net
22
28
45
54
1,153
967
3,436
2,892
Operating income
43
40
75
81
Interest income
4
4
10
12
Interest expense
(100
)
(76
)
(301
)
(184
)
Foreign exchange and other
(5
)
(3
)
(8
)
(18
)
Loss before provision for income
taxes
(58
)
(35
)
(224
)
(109
)
Benefit from (provision for) income
taxes
66
(45
)
(79
)
(88
)
Net income (loss)
8
(80
)
(303
)
(197
)
Net income attributable to noncontrolling
interest
(4
)
(4
)
(11
)
(9
)
Net income (loss) attributable to
Bausch + Lomb Corporation
$
4
$
(84
)
$
(314
)
$
(206
)
Basic and diluted income (loss) per
share attributable to Bausch + Lomb Corporation
$
0.01
$
(0.24
)
$
(0.89
)
$
(0.59
)
Basic weighted-average common
shares
351.9
350.8
351.7
350.4
Diluted weighted-average common
shares
353.9
350.8
351.7
350.4
Bausch + Lomb Corporation
Table 2
Reconciliation of GAAP Net Income
(Loss) and Diluted Income (Loss) per Share Attributable to Bausch +
Lomb Corporation to Adjusted Net Income (non-GAAP) and Adjusted
Earnings Per Share (non-GAAP)
For the Three and Nine Months Ended
September 30, 2024 and 2023
(unaudited)
Three Months Ended September
30,
2024
2023
(in millions, except per share
amounts)
Income (Expense)
Earnings per Share
Impact
Income (Expense)
Earnings per Share
Impact
Net income (loss) and Diluted income
(loss) per share attributable to Bausch + Lomb Corporation
$
4
$
0.01
$
(84
)
$
(0.24
)
Non-GAAP adjustments: (a)
Amortization of intangible assets
72
0.20
47
0.13
Restructuring, integration and
transformation costs
18
0.05
34
0.10
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
24
0.07
33
0.09
Separation costs and separation-related
costs
(1
)
—
2
0.01
Other
3
0.01
3
0.01
Tax effect of non-GAAP adjustments
(74
)
(0.21
)
41
0.12
Total non-GAAP adjustments
42
0.12
160
0.46
Adjusted net income (non-GAAP) and
Adjusted earnings per
share (non-GAAP)
$
46
$
0.13
$
76
$
0.22
Acquired IPR&D
15
0.04
—
—
Adjusted net income excluding Acquired
IPR&D (non-GAAP) and Adjusted earnings per share excluding
Acquired IPR&D (non-GAAP)
$
61
$
0.17
$
76
$
0.22
Nine Months Ended September
30,
2024
2023
(in millions, except per share
amounts)
Income (Expense)
Earnings per Share
Impact
Income (Expense)
Earnings per Share
Impact
Net loss and Diluted loss per share
attributable to Bausch + Lomb Corporation
$
(314
)
$
(0.89
)
$
(206
)
$
(0.59
)
Non-GAAP adjustments: (a)
Amortization of intangible assets
220
0.62
160
0.45
Asset impairments
5
0.01
—
—
Restructuring, integration and
transformation costs
73
0.21
96
0.27
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
66
0.19
37
0.11
Separation costs and separation-related
costs
2
0.01
7
0.02
Gain on sale of assets
(5
)
(0.01
)
—
—
Other
9
0.02
5
0.02
Tax effect of non-GAAP adjustments
59
0.17
76
0.22
Total non-GAAP adjustments
429
1.22
381
1.09
Adjusted net income (non-GAAP) and
Adjusted earnings per
share (non-GAAP)
$
115
$
0.33
$
175
$
0.50
Acquired IPR&D
18
0.05
—
—
Adjusted net income excluding Acquired
IPR&D (non-GAAP) and Adjusted earnings per share excluding
Acquired IPR&D (non-GAAP)
$
133
$
0.38
$
175
$
0.50
(a)
The components of and further details
respecting each of these non-GAAP adjustments and the financial
statement line item to which each component relates can be found on
Table 2a.
Bausch + Lomb Corporation
Table 2a
Reconciliation of GAAP to Non-GAAP
Financial Information
For the Three and Nine Months Ended
September 30, 2024 and 2023
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Cost of goods sold
reconciliation:
GAAP Cost of goods sold (excluding
amortization and impairments of intangible assets)
$
464
$
391
$
1,369
$
1,179
Fair value inventory step-up resulting
from acquisitions (a)
(21
)
(2
)
(61
)
(2
)
Adjusted cost of goods sold (excluding
amortization and impairments of intangible assets) (non-GAAP)
$
443
$
389
$
1,308
$
1,177
Selling, general and administrative
reconciliation:
GAAP Selling, general and
administrative
$
511
$
418
$
1,550
$
1,253
Separation-related costs (b)
1
—
(1
)
(5
)
Transformation costs (c)
(15
)
(24
)
(53
)
(64
)
Other (d)
(2
)
2
(5
)
1
Adjusted selling, general and
administrative (non-GAAP)
$
495
$
396
$
1,491
$
1,185
Research and development
reconciliation:
GAAP Research and development
$
84
$
82
$
250
$
244
Separation-related costs (b)
—
(1
)
(1
)
(1
)
Adjusted research and development
(non-GAAP)
$
84
$
81
$
249
$
243
Amortization of intangible assets
reconciliation:
GAAP Amortization of intangible assets
$
72
$
47
$
220
$
160
Amortization of intangible assets (e)
(72
)
(47
)
(220
)
(160
)
Adjusted amortization of intangible assets
(non-GAAP)
$
—
$
—
$
—
$
—
Other expense, net
reconciliation:
GAAP Other expense, net
$
22
$
28
$
45
$
54
Litigation and other matters (d)
(1
)
(2
)
(2
)
(2
)
Restructuring and integration costs
(c)
(3
)
(10
)
(20
)
(32
)
Asset impairments (f)
—
—
(5
)
—
Separation costs (b)
—
(1
)
—
(1
)
Acquisition-related contingent
consideration (a)
(1
)
1
(2
)
—
Acquisition-related costs (a)
(2
)
(16
)
(3
)
(19
)
Gain on sale of assets (g)
—
—
5
—
Adjusted other expense, net (non-GAAP)
$
15
$
—
$
18
$
—
Interest expense
reconciliation:
GAAP Interest expense
$
(100
)
$
(76
)
$
(301
)
$
(184
)
Acquisition-related financing costs
(a)
—
16
—
16
Adjusted interest expense (non-GAAP)
$
(100
)
$
(60
)
$
(301
)
$
(168
)
Foreign exchange and other
reconciliation:
GAAP Foreign exchange and other
$
(5
)
$
(3
)
$
(8
)
$
(18
)
Other (d)
—
3
2
4
Adjusted foreign exchange and other
(non-GAAP)
$
(5
)
$
—
$
(6
)
$
(14
)
Benefit from (provision for) income
taxes reconciliation:
GAAP Benefit from (provision for) income
taxes
$
66
$
(45
)
$
(79
)
$
(88
)
Tax effect of non-GAAP adjustments (h)
(74
)
41
59
76
Adjusted provision for income taxes
(non-GAAP)
$
(8
)
$
(4
)
$
(20
)
$
(12
)
(a)
Represents the four components of the
non-GAAP adjustment of “Acquisition-related costs and adjustments
(excluding amortization of intangible assets)” (see Table 2).
(b)
Represents the three components of the
non-GAAP adjustment of “Separation costs and separation-related
costs” (see Table 2).
(c)
Represents the two components of the
non-GAAP adjustment of “Restructuring, integration and
transformation costs” (see Table 2).
(d)
Represents the three components of the
non-GAAP adjustment of “Other” (see Table 2).
(e)
Represents the sole component of the
non-GAAP adjustment of “Amortization of intangible assets” (see
Table 2).
(f)
Represents the sole component of the
non-GAAP adjustment of “Asset impairments” (see Table 2).
(g)
Represents the sole component of the
non-GAAP adjustment of “Gain on sale of assets” (see Table 2).
(h)
Represents the sole component of the
non-GAAP adjustment of “Tax effect of non-GAAP adjustments” (see
Table 2).
Bausch + Lomb Corporation
Table 2b
Reconciliation of GAAP Net Income
(Loss) to Adjusted EBITDA (non-GAAP)
For the Three and Nine Months Ended
September 30, 2024 and 2023
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Net income (loss) attributable to
Bausch + Lomb Corporation
$
4
$
(84
)
$
(314
)
$
(206
)
Interest expense, net
96
72
291
172
(Benefit from) provision for income
taxes
(66
)
45
79
88
Depreciation and amortization of
intangible assets
110
82
330
266
EBITDA
144
115
386
320
Adjustments:
Asset impairments
—
—
5
—
Restructuring, integration and
transformation costs
18
34
73
96
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
24
17
66
21
Share-based compensation
24
16
65
58
Separation costs and separation-related
costs
(1
)
2
2
7
Other non-GAAP adjustments:
Gain on sale of assets
—
—
(5
)
—
Other
3
3
9
5
Adjusted EBITDA (non-GAAP)
$
212
$
187
$
601
$
507
Acquired IPR&D
15
—
18
—
Adjusted EBITDA excluding Acquired
IPR&D (non-GAAP)
$
227
$
187
$
619
$
507
Bausch + Lomb Corporation
Table 3
Constant Currency Revenue (non-GAAP)
and Constant Currency Revenue Growth (non-GAAP) - by
Segment
For the Three and Nine Months Ended
September 30, 2024 and 2023
(unaudited)
Calculation of Constant
Currency Revenue for the Three Months Ended
September 30, 2024
September 30, 2023
Change in Revenue as
Reported
Change in
Constant Currency Revenue
(Non-GAAP) (b)
Revenue
as
Reported
Changes in Exchange Rates
(a)
Constant Currency
Revenue
(Non-GAAP) (b)
Revenue
as
Reported
(in millions)
Amount
Pct.
Amount
Pct.
Vision Care
$
684
$
4
$
688
$
648
$
36
6
%
$
40
6
%
Surgical
206
1
207
185
21
11
%
22
12
%
Pharmaceuticals
306
—
306
174
132
76
%
132
76
%
Total revenues
$
1,196
$
5
$
1,201
$
1,007
$
189
19
%
$
194
19
%
Calculation of Constant
Currency Revenue for the Nine
Months Ended
September 30, 2024
September 30, 2023
Change in Revenue as
Reported
Change in
Constant Currency Revenue
(Non-GAAP) (b)
Revenue
as
Reported
Changes in Exchange Rates
(a)
Constant Currency
Revenue
(Non-GAAP) (b)
Revenue
as
Reported
(in millions)
Amount
Pct.
Amount
Pct.
Vision Care
$
2,016
$
42
$
2,058
$
1,881
$
135
7
%
$
177
9
%
Surgical
612
6
618
563
49
9
%
55
10
%
Pharmaceuticals
883
4
887
529
354
67
%
358
68
%
Total revenues
$
3,511
$
52
$
3,563
$
2,973
$
538
18
%
$
590
20
%
(a)
The impact for changes in foreign currency
exchange rates is determined as the difference in the current
period reported revenues at their current period currency exchange
rates and the current period reported revenues revalued using the
monthly average currency exchange rates during the comparable prior
period.
(b)
To supplement the financial measures
prepared in accordance with GAAP, the Company uses certain non-GAAP
financial measures and ratios. For additional information about the
Company’s use of such non-GAAP financial measures and ratios, refer
to the “Non-GAAP Information” section in the body of the news
release to which these tables are attached. Constant currency
revenue (non-GAAP) for the three and nine months ended September
30, 2024 is calculated as revenue as reported adjusted for the
impact for changes in exchange rates (previously defined in this
news release). Change in constant currency revenue (non-GAAP) is
calculated as the difference between constant currency revenue for
the current period and revenue as reported for the comparative
period.
_____________________________________
1
This is a non-GAAP measure or a non-GAAP
ratio. For further information on non-GAAP measures and non-GAAP
ratios, please refer to the “Non-GAAP Information” section of this
news release. Please also refer to tables at the end of this news
release for a reconciliation of this and other non-GAAP measures to
the most directly comparable GAAP measure.
2
The guidance in this news release is only
effective as of the date given, October 30, 2024, and will not be
updated or affirmed unless and until the company publicly announces
updated or affirmed guidance. Distribution or reference of this
news release following October 30, 2024, does not constitute the
company reaffirming guidance. See the “Forward-looking Statements”
section for further information.
3
The increase in the anticipated full-year
revenue is a result of strong MIEBO performance and decrease in
expected currency headwinds. In addition, the company previously
provided guidance of $90M estimated full-year revenue foreign
exchange headwinds and the decrease in estimated full-year revenue
foreign exchange headwinds is a result of the weakening of the U.S.
dollar relative to other currencies.
4
Excludes 3Q YTD ~$18M in Acquired
IPR&D and any potential business development transactions in
4Q24. Prior Adjusted EBITDA (non-GAAP) guidance did not include any
historical or projected Acquired IPR&D, as the Company excludes
Acquired IPR&D for guidance purposes; label updated
accordingly.
5
Diluted weighted average shares includes
the dilutive impact of options, performance based restricted stock
units and restricted stock units, which are approximately 2,000,000
common shares for the 3 months ended September 30, 2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030466923/en/
Media Contact: T.J. Crawford tj.crawford@bausch.com (908)
705-2851
Investor Contact: George Gadkowski
george.gadkowski@bausch.com (877) 354-3705 (toll free) (908)
927-0735
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