QuidelOrtho Reports Third Quarter 2023 Financial Results

Original from: business wire

-    Third quarter revenue was $744 million, as reported, driven by strong respiratory demand and continued strength in non-respiratory businesses

    ·    Non-respiratory revenue increased by 2% as reported and in constant currency, compared to the prior year period, driven by growth in the Labs business, which continues to perform to expectations

    ·    Respiratory revenue decreased by 21% as reported and in constant currency, primarily due to the anticipated decline in COVID-19 revenue compared to the prior year period

    ·    Growth across all geographies, including continued strength in China, excluding COVID-19

-    Third quarter GAAP diluted loss per share was $(0.19); adjusted diluted earnings per share (“EPS”) was $0.90

-    GAAP net loss was $(13) million; adjusted EBITDA was $169 million; adjusted EBITDA margin was 23%, up from 17% in the second quarter of 2023

-    GAAP net cash provided by operating activities was $42 million; adjusted free cash flow was $53 million; the Company paid down $52 million on its term loan during the third quarter of 2023; year to date, the Company has paid down a total of $175 million of debt

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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 third quarter ended October 1, 2023.

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“We finished the third quarter strong, with solid financial performance across all geographies. Our results were driven by higher-than-expected respiratory demand coupled with the strength of our Labs business and improved operational efficiencies,” said Douglas Bryant, President and Chief Executive Officer, QuidelOrtho. “The rise of multiple circulating viruses demonstrates the need for fast, accurate, multiplexed syndromic testing solutions like Savanna, which we continue to make steady progress on. As respiratory viruses persist, our portfolio of diagnostic products uniquely positions us to serve patients and clinicians around the world. Looking toward the end of the year, we anticipate a solid finish.”

The Company reported total revenue for the third quarter of 2023 of $744.0 million, compared to $783.8 million for the third quarter of 2022. Foreign currency translation did not significantly impact third quarter 2023 results. GAAP diluted loss per share for the third quarter of 2023 was $(0.19), compared to diluted EPS of $0.28 for the third quarter of 2022. GAAP operating income for the third quarter of 2023 was $26.3 million, compared to operating income of $56.8 million for the third quarter of 2022, and GAAP operating margin was 4% and 7% for the third quarters of 2023 and 2022, respectively. Third quarter 2023 results included $26.5 million in integration-related charges.

Adjusted diluted EPS for the third quarter of 2023 was $0.90, compared to $1.85 in the prior year period. Adjusted EBITDA for the third quarter of 2023 was $169.2 million, compared to $226.8 million in the prior year period. Adjusted EBITDA margin for the third quarter of 2023 was 23%, compared to 29% in the prior year period. The year-over-year change in adjusted EPS and adjusted EBITDA was primarily related to the anticipated decline in COVID-19 revenue compared to the prior year period.

Fiscal Year 2023 Financial Guidance

The Company is maintaining its 2023 financial guidance, provided on August 8, 2023, as follows:

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Source: QuidelOrtho Reports Third Quarter 2023 Financial Results