Bioventus Inc. · NASDAQ:BVS
Bioventus — Q3 2023 Earnings Presentation
19 slides from Bioventus's earnings presentation, Nov 7, 2023
Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results November 7, 2023
Slide 2: Agenda and Speakers
Agenda and Speakers Tony Bihl Mark Singleton Interim Chief Executive Officer Senior Vice-President and Chief Financial Officer Update on Business Outlook Q3 2023 Results Review of Q3 2023 Results Financial Guidance
Slide 3: Forward Looking Statements and Use of Estimates
Forward Looking Statements and Use of Estimates Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained i
Slide 4: Earnings Ahead of our Expectations and Raised Guidance
Earnings Ahead of our Expectations and Raised Guidance • Encouraged by the strength of our results • Return to growth for our HA business one quarter ahead of schedule • Improving our execution, delivering on our commitments, and enhancing our business controls and processes • Achieved substantial p
Slide 5: Stabilizing our Organization
Stabilizing our Organization • Encouraged by results of employee engagement survey • Improvement in overall employee engagement scores • 85% of employees participated • Employees provided over 1,400 comments • Committed to work together to continually strengthen our culture that is inclusive, engage
Slide 6: Third Quarter Results: Revenue Decreased 6% to $121M
Third Quarter Results: Revenue Decreased 6% to $121M • Adjusted EBITDA1 of $22 million was above our expectations primarily due to stringent expense control and significant improvement in our bad debt reserves • Year-to-date adjusted EBITDA1 has increased more than $15 million, representing a 30% in
Slide 7: Third Quarter Results: Revenue Decreased 6% to $121M
Third Quarter Results: Revenue Decreased 6% to $121M • Surgical Solutions as expected saw a slowdown in revenue growth • Ultrasonics grew at its highest double-digit rate of the year • Leading technology and small market share allow for continued market penetration and growth • Slower growth than ex
Slide 8: Third Quarter Results
Third Quarter Results Mark Singleton Senior Vice-President and Chief Financial Officer 8
Slide 9: Third Quarter Performance
Third Quarter Performance • Sizable improvement in our leverage, cost structure and internal control environment • Revenue of $121 million decreased 6% compared to the prior year quarter • Revenue growth was even with the prior year quarter when adjusting for the divestiture of our Wound Business •
Slide 10: Third Quarter Performance
Third Quarter Performance Pain Treatments Revenue Surgical Solutions Revenue Restorative Therapies Revenue Millions Millions Millions $54 $37 $42 $52 $34 $30 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 • Pain Treatments increased 3% • Surgical Solutions grew 7% • Restorative Therapies fell 28% c
Slide 11: Third Quarter Performance
Third Quarter Performance Adjusted Gross Profit* • Adjusted gross margin* increased 30 basis Millions Adjusted Gross Margin* points • Benefited from a favorable comparison due to $96 higher accruals for private payer rebates last year $90 • Adjusted operating expenses* decreased 74.5% 74.8% almost $
Slide 12: Third Quarter Performance
Third Quarter Performance $0.05 Adjusted Earnings Per Share* Adjusted EBITDA* Adjusted Operating Income* Adjusted Net Income* Millions Millions Millions $11 $22 $22 $20 $17 $5 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 * See important disclosures on non-GAAP financial measures and the reconcili
Slide 13: Third Quarter Performance: Balance Sheet and Cash Flow
Third Quarter Performance: Balance Sheet and Cash Flow • Ended quarter with $27 million of cash • $395 million of debt outstanding • $15 million draw on revolving credit facility • Operating cash outflow of $8 million due to negotiated delay in payment of rebate claims invoiced in the first quarter
Slide 14: 2023 Guidance
2023 Guidance • Updating 2023 sales and earnings guidance • Now expect 2023 net sales to be in the range of $498 million to $505 million • Now expect 2023 adjusted EBITDA to be in the range of $84 million to $87 million • Now expect 2023 adjusted diluted loss per share to be a loss of $0.12 to a los
Slide 15: Bioventus: Innovations For Active Healing
@ bioventus Innovations For Active Healing
Slide 16: Reconciliation of Net (Loss) Income from Continuing Operations to Adjusted EBITDA
Reconciliation of Net (Loss) Income from Continuing Operations to Adjusted EBITDA (unaudited) (a) Includes for the three months ended September 30, 2023 and October 1, 2022 and the nine months ended September 30, 2023 and October 1, 2022, respectively, depreciation and amortization of $11,506, $11,3
Slide 17: Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures (Three Months Ended)
Reconciliation of Other Reported GAAP Measures to Non- GAAP Measures (for Three Months Ended) (a) The "Reported GAAP Measure" under the "Operating Expenses" column is a sum of all GAAP operating expense Net Loss EPS from Three Months Ended September 30, Operating Operating Continuing Continuing line
Slide 18: Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures (Nine Months Ended)
Reconciliation of Other Reported GAAP Measures to Non- GAAP Measures (for Six Months Ended) Net Loss EPS from (a) The "Reported GAAP Measure" under the "Operating Expenses" column is a sum of all GAAP operating expense Nine Months Ended September 30, Operating Operating Continuing Continuing line it
Slide 19: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Organic Revenue Growth The Company defines the term “organic revenue” as revenue in the stated period excluding the impact from business acquisitions and divestitures. The Company uses the related term “organic revenue growth” to refer to the financial performance