Bioventus Inc. · NASDAQ:BVS
Bioventus — Q2 2022 Earnings Presentation
20 slides from Bioventus's earnings presentation, Aug 11, 2022
Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results August 11, 2022
Slide 2: Agenda and Speakers
Agenda and Speakers Ken Reali Mark Singleton Chief Executive Officer Senior Vice-President and Chief Financial Officer Q2 2022 Review Q2 2022 Results Progress on 2022 Priorities CartiHeal Financing 2022 Guidance
Slide 3: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures 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
Slide 4: Positioned to Build on Momentum in the 2nd Half of 2022
Positioned to Build on Momentum in the 2nd Half of 2022 • Successes to date towards accomplishing our goals include: • CartiHeal financing and acquisition completed • Bioness integration completed and materially progressing Misonix integration • Positioned ourselves to achieve double digit growth fo
Slide 5: Second Quarter Results: Revenue Increased 28% to $140M
Second Quarter Results: Revenue Increased 28% to $140M • Delivered a strong quarter of 8% organic growth1 and 9% constant currency2 versus solid 2021 comp • Positioned to achieve double digit growth for the year • Strong sequential revenue and adjusted EBITDA growth • Advanced Rehabilitation growth
Slide 6: Second Quarter Results: Revenue Increased 28% to $140M
Second Quarter Results: Revenue Increased 28% to $140M • Surgical Solutions rebound from prior quarter’s headwinds with organic growth returning to double digits • Generated sequential improvement throughout the second quarter, and continue to experience strong momentum • Misonix bone scalpel saw a
Slide 7: Update on 2022 Priorities
Update on 2022 Priorities • First priority: achieve double-digit organic growth for the year • Pain Treatments: solidified market access for HA with three-year extension of United Health contract • Surgical Solutions: Osteoamp flowable and recent innovations represents close to 60% of our Bone Graft
Slide 8: Building Momentum Across Bioventus' Businesses
Building Momentum Across Bioventus’ Businesses • Executing on our growth strategy • Bolstered our growth potential with acquisition of CartiHeal • Second-half focus on achieving our other priorities and financial commitments • Achieve cost synergies from acquisitions • Enhance growth profile by leve
Slide 9: Second Quarter Results, CartiHeal Financing, 2022 Guidance Update
Second Quarter Results CartiHeal Financing 2022 Guidance Update Mark Singleton Senior Vice-President and Chief Financial Officer 9
Slide 10: Second Quarter Performance
Second Quarter Performance • Revenue of $140 million increased 28% compared to the prior year quarter • 8 percentage point increase in organic1 revenue • 20 percentage point benefit related to Misonix • Revenue within our plan via multiple growth drivers despite supply chain and regulatory challenge
Slide 11: Second Quarter Performance
Second Quarter Performance Pain Treatments Revenue Surgical Solutions Revenue Restorative Therapies Revenue Millions Millions Millions $64 $37 $40 $57 $33 $21 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 • Pain Treatments grew 13% • Surgical Solutions grew 77% • Restorative Therapies grew 23% • D
Slide 12: Second Quarter Performance
Second Quarter Performance Adjusted Gross Profit Millions Adjusted Gross Margin • Adjusted gross margin* increased 30 $108 basis points $84 • Adjusted operating expenses* increased $19 million primarily from 76.8% 76.5% Misonix-related costs Q2 2021 Q2 2022 * For a reconciliation of reported GAAP me
Slide 13: Second Quarter Performance
Second Quarter Performance $0.10 Adjusted Diluted Earnings Per Share* Adjusted EBITDA* Adjusted Operating Income* Adjusted Net Income* Millions Millions Millions $23 $18 $8 $20 $14 $5 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 * For a reconciliation of reported GAAP measures to non-GAAP measure
Slide 14: Second Quarter Performance: Balance Sheet and Cash Flow
Second Quarter Performance: Balance Sheet and Cash Flow • Ended quarter with $41 million of cash • $374 million of debt outstanding, including $25 million draw on revolving credit facility • Operating cash inflow of $3 million • Sequential improvement in cash flow • Expect operating cash flow to acc
Slide 15: CartiHeal Financing Update
CartiHeal Financing Update • Five milestone payments totaling $215 million tied to key deliverables that unlock full market potential of CartiHeal • First two milestones of $50 million each will be paid no later than the end of 3Q 2023 • Next two milestones of $25 million each will be paid by the en
Slide 16: 2022 Guidance
2022 Guidance • Narrowing the range of our 2022 revenue guidance to between $547.5 million - $562.5 million, compared to the previous range of $545 million - $565 million • Mid-point unchanged and reflects double digit organic growth • Incorporates both Bioness and Misonix • Adjusted EBITDA guidance
Slide 17: Bioventus: Innovations For Active Healing
@ bioventus Innovations For Active Healing
Slide 18: Reconciliation of Net (Loss) Income to Adjusted EBITDA (unaudited)
Reconciliation of Net (Loss) Income to Adjusted EBITDA (unaudited) d) The three and six months ended July 2, 2022 and the three months ended July 3, 2021 include compensation expense resulting from awards granted under the Company’s equity-based compensation plans in effect after its IPO. The six mo
Slide 19: Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures (Three Months)
Reconciliation of Other Reported GAAP Measures to Non- GAAP Measures (for Three Months Ended) a) Includes for the six months ended July 2, 2022 and July 3, 2021, respectively, depreciation and amortization of $9,684 and $5,618 in cost of sales and $2,700 and $1,861 in operating expenses presented in
Slide 20: Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures (Six Months)
Reconciliation of Other Reported GAAP Measures to Non- GAAP Measures (for Six Months Ended) a) Includes for the six months ended July 2, 2022 and July 3, 2021, respectively, depreciation and amortization of $9,684 and $5,618 in cost of sales and $2,700 and $1,861 in operating expenses presented in t