QuidelOrtho Reports Second Quarter 2023 Financial Results

Original from: business wire

Highlights

·    Second quarter revenue of $665.1 million increased by 8% as reported with non-respiratory revenue up 3% on a supplemental combined basis (up 4% in constant currency) and respiratory revenue down 74% on a supplemental combined basis

·    Non-respiratory revenue driven by 9% constant currency growth in Labs business unit

·    Second quarter GAAP loss per share of $(0.80); adjusted EPS of $0.26, an 88% decrease from prior year on a supplemental combined basis, largely reflecting the strength of respiratory revenue in the second quarter of 2022

·    Paid down $72 million on Term Loan ($20 million more than contractually required) and completed the final $40 million payment for the 2017 acquisition of the Alere Cardiometabolic assets

·    Completed the Savanna® Emergency Use Authorization (“EUA”) and 510(k) FDA submissions as planned

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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 second quarter ended July 2, 2023.

The Company reported total revenue for the second quarter of 2023 of $665.1 million, compared to $613.4 million for the second quarter of 2022. GAAP diluted loss per share (LPS) for the second quarter of 2023 decreased to $(0.80), compared to diluted EPS of $0.36 for the second quarter of 2022. GAAP operating loss for the second quarter of 2023 was $(26.9) million, compared to operating income of $79.7 million for the second quarter of 2022, and GAAP operating margin was (4)% and 13% for the second quarters of 2023 and 2022, respectively. The second quarter 2023 results include significant one-time charges related to the integration.

In addition to the Company’s GAAP results, the Company is providing supplemental combined second quarter 2022 revenues and adjusted operating results as if Quidel Corporation (“Quidel”) and Ortho Clinical Diagnostics Holdings plc (“Ortho”) had been combined for the applicable periods. The following discussion of financial results is based on supplemental combined information:

Second quarter 2023 total revenue of $665.1 million decreased by 26% in constant currency, compared to $898.5 million for the second quarter of 2022. Foreign currency translation negatively impacted sales growth by approximately 10 basis points for the second quarter of 2023. Adjusted diluted EPS for the second quarter of 2023 decreased to $0.26, compared to $2.12 for the second quarter of 2022. Adjusted EBITDA for the second quarter of 2023 was $113.3 million, compared to $290.8 million in the second quarter of 2022. Adjusted EBITDA margin for the second quarter of 2023 was 17.0%, compared to 32.4% for the second quarter of 2022.

“We are pleased with our solid financial results in the second quarter largely driven by continued strength in our Labs business across all major geographic regions. Equally important, our execution on our key growth drivers was outstanding in the quarter – our Labs backlog is approaching normalized levels and utilization is increasing, Sofia® non-COVID pull-through continues to increase, and Savanna EUA and 510(k) submissions were completed as planned,” said Douglas Bryant, President and Chief Executive Officer of QuidelOrtho. “Looking to the future, we will continue to identify additional cost synergies and the integration is now in its final phase, which will focus on our future growth model by identifying, prioritizing and executing transformational initiatives that will accelerate our growth, foster productivity and enable us to be a more nimble, responsive organization.”

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Source: QuidelOrtho Reports Second Quarter 2023 Financial Results