Slide 1: Q1'20 Earnings Presentation
NASDAQ: HBIO Q1’20 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO May 5, 2020
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements This information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securi
Slide 3: Table of Contents
Table of Contents Earnings Presentation ▪ Summary ▪ Q1 Performance ▪ Product/Customer Segment Update ▪ Previously Announced Restructuring Update ▪ Q2 Covid-19 Related Cost Actions ▪ Financial Update ▪ 2020 Outlook 3
Slide 4: 2020 Q1 Highlights
2020 Q1 Earnings Presentation Highlights Q1 Summary ▪ Revenue from the combination of CROs and Pharma was up modestly in the quarter ▪ Academic labs were down significantly as labs shutdown due to Covid-19 pandemic ▪ Strict cost & cash control maintained strong cash flow, paid down debt principal by
Slide 5: Q1 2020 Performance
2020 Q1 Earnings Presentation Revenue ($M) Q1 2020 Performance 28.2 ▪ Revenue $23.8M, down $4.4M (-15.7%) 23.8 ▪ Gross Margin (GAAP) 54.6%, down 270 bps ▪ Adjusted Gross Margin* 54.6%, down 290 bps ▪ Operating Income / Margin (GAAP) ($3.3M) / -13.8% Q1 2019 Q1 2020 ▪ Adj. Operating Income / Margin*
Slide 6: 2020 Q1 Revenue by Product Family
2020 Q1 Revenue by Product Family (in $M) Q1 Q1 2020 2019 Cellular & 15.5 18.4 -15.7% CMT Products: primarily Academic revenues, down world-wide as labs Molecular shutdown and personnel began working from home, impacting orders Products processing and receipt of equipment Includes $0.3M exit of non-
Slide 7: 2020 Q1 Restructuring Plan Update
2020 Q1 Earnings Presentation Q4 2019 Restructuring Plan Update ▪ Initiated Connecticut manufacturing consolidation ▪ Initiated downsizing of UK operation ▪ Reduction in force > 10% across overall business – substantially complete ▪ Annualized savings > $4M phasing in primarily 1st half 2020, 1x cos
Slide 8: Immediately Implemented Significant Cost Reductions to Mitigate Covid-19 Impact
2020 Q1 Earnings Presentation Immediately Implemented Significant Cost Reductions to Mitigate Covid-19 Impact Cost Actions ▪ Worldwide reductions in work hours and compensation ▪ Reductions in force ▪ Management compensation reductions ▪ Expected savings of approximately $3M for the period of April
Slide 9: Financial Section
(HY Harvard Bioscience Financial Section
Slide 10: Q1 2020 Non-GAAP Results
Q1 2020 Non-GAAP Results (in $M, except EPS) Q1 2020 Q1 2019 ▪ Gross margin down primarily from global Revenue 23.8 28.2 -15.7% reduction in revenue with COVID-19 onset Adjusted Gross Profit* 13.0 16.2 -19.8% Adj. Gross Margin 54.6% 57.5% -290 bps ▪ Operating expense reduction includes Adj. Operatin
Slide 11: 2020 Outlook
(HY Harvard Bioscience 2020 Outlook
Slide 12: 2020 Looking Forward
2020 Looking Forward Aggressive actions through Covid-19, lean the business to create profitable platform ▪ Expect combined CROs and Pharma revenues to continue to grow ▪ Covid-19 impact: expecting second quarter revenue to decrease 20-30% year over year and to begin recovering as Academic labs reop
Slide 13: Appendix
(HY Harvard Bioscience Appendix
Slide 14: GAAP Income Statements
GAAP Income Statements (in $M, except EPS) Q1 2020 Q1 2019 Revenue 23.8 28.2 Gross Profit 13.0 16.2 Gross Margin 54.6% 57.3% Operating Expenses 16.3 16.3 % of revenue 68.4% 57.7% Operating Loss (3.3) (0.1) Operating Margin -13.8% -0.4% Net Loss (4.5) (2.4) % of revenue -19.0% -8.4% EPS (0.12) (0.06)
Slide 15: Balance Sheet
Balance Sheet (in $M) Q1 2020 Q4 2019 Assets Cash & Cash Equiv alents 5.9 8.3 Accounts Receiv able 15.4 20.7 I nv entories 23.2 22.1 Other Current Assets 3.7 2.5 Total Current Assets 48.2 53.6 Property, Plant, Equipment 4.5 4.8 Goodw ill & Other I ntangibles 93.6 95.8 Other Assets 10.0 10.7 Total As
Slide 16: Cash Flow Statements
Cash Flow Statements (in $M) Q1 2020 Q1 2019 Net Cash Provided by Operating Activities 2.9 2.0 Additions to PP&E (0.2) (0.1) Other investing activities* - - Net Cash Used in Investing Activities (0.2) (0.1) Repayments of debt (4.8) (4.6) Other financing activities (0.3) (0.4) Net Cash Used in Financ
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (In thousands) Three Months Ended March 31, 2020 2019 GAAP gross profit $ 12,982 $ 16,154 Stock-based compensation expense 10 14 Severance, restructuring and acquisition costs (41) 2 Non-cash expense - acquisition accounting 20 57 Adjusted gross profit $ 12,971 $ 16,2
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (In thousands, except EPS) Three Months Ended March 31, 2020 2019 GAAP operating loss $ (3,273) $ (119) Stock-based compensation expense 793 587 Severance, restructuring and acquisition costs 1,471 495 Intangible assets amortization and impairments 1,427 1,430 Non-cas