Harvard Bioscience, Inc. · NASDAQ:HBIO
Harvard Bioscience — Q3 2019 Earnings Presentation
15 slides from Harvard Bioscience's earnings presentation, Nov 5, 2019
Slide 1: Q3 Earnings Presentation
NASDAQ: HBIO Q3 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO November 5, 2019
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 ▪ Q3 Performance ▪ Product Family Update ▪ 2019 Action Plan Update ▪ Financial Update ▪ Financial Outlook 3
Slide 4: 2019 Q3 Performance
2019 Q3 Earnings Presentation Q3 2019 Performance Revenue ($M) ▪ Revenue $27.4M, down 4.3% 28.6 27.4 ▪ Gross Margin (GAAP) 54.6% ▪ Adjusted Gross Margin* 55.6% ▪ Operating Loss / Margin (GAAP) $(1.4)M / (5.0%) Q3 2018 Q3 2019 ▪ Adj. Operating Income / Margin* $3.3M / 12.1% Adj. Operating Margin ▪ EP
Slide 5: Q3 2019 Revenue by Product Family
Q3 2019 Revenue by Product Family (in $ M) Q3 2019 Q3 2018 Comments: ▪ Cellular & Molecular Technologies Cellular & Molecular 17.3 17.5 -1.1% ▪ North America, APAC growth on CRISPR Technologies* related products, high margin infusion pumps Pre-Clinical Systems (DSI)* 10.5 11.2 -6.3% ▪ EMEA decline o
Slide 6: 2019 Q3 Action Plan Update – Position to Make the 2020 Targets
2019 Q3 Earnings Presentation 2019 Action Plan Update – Position to Make the 2020 Targets ▪ Completed the leadership team ▪ Mike Rossi – CFO ▪ Ken Olson – Leads our DSI Preclinical Business ▪ Yash Singh – Leads our Cellular and Molecular Business ▪ Consolidated TBSI into DSI’s Minneapolis operation
Slide 7: Financial Section
(Tr Harvard Bioscience Financial Section
Slide 8: Q3 2019 Overview
Q3 2019 Overview Comments: (in $ M, except EPS) Q3 2019 Q3 2018 ▪ Revenue -4.5% Adjusted Revenue* 27.4 28.7 -4.5% ▪ -3.1% excluding currency impact ▪ North America: growth including Adj. Operating Income* 3.3 3.2 3.6% improving CRO revenue % of revenue 12.1% 11.2% +90 bps ▪ EMEA/APAC: continued head
Slide 9: Q3 2019 Non-GAAP Results
Q3 2019 Non-GAAP Results (in $ M, except EPS) Q3 2019 Q3 2018 Comments: Adjusted Gross Profit* 15.2 16.0 -4.8% ▪ Adjusted Gross Margin: improvements % of revenue 55.6% 55.8% -20 bps in product mix offset by E&O charges, lower volume in Europe Adj. Operating Expenses* (11.9) (12.8) -6.9% % of revenue
Slide 10: Summary and 2019 Q4 Outlook
Summary and 2019 Q4 Outlook ▪ Continue actions for next year’s profitability and growth targets ▪ Consolidations & operating efficiencies drive gross and operating margin improvement 2H 2020 ▪ Headwinds annualize 1H 2020, sales optimization accelerates topline growth in 2H 2020 Q4 Outlook / Full Yea
Slide 11: Appendix
(Tr Harvard Bioscience Appendix
Slide 12: Q3 2019 GAAP Results
Q3 2019 GAAP Results (in $ M, except EPS) Q3 2019 Q3 2018 Revenue 27.4 28.6 -4.3% Gross Profit 15.0 15.8 -5.3% % of revenue 54.6% 55.2% -60 bps Operating Expenses 16.3 14.9 +9.5% % of revenue 59.6% 52.1% Operating Income (loss) (1.4) 0.9 -153.4% % of revenue -5.0% 3.1% -810 bps Net Income (loss) (2.
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 GAAP revenue $ 27,418 $ 28,635 $ 85,204 $ 86,916 Denville revenue reported within discontinued operations - - - 893 Deferred revenue valuation adj
Slide 14: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended Nine Months Ended (In thousands, except EPS) September 30, September 30, 2019 2018 2019 2018 GAAP operating income (loss) $ (1,365) $ 890 $ (1,257) $ (758) Stock-based compensation expense 987 486 2,193 2,082 Severance, restruc
Slide 15: Reconciliation of GAAP Measures to Non-GAAP Guidance for 2019
Reconciliation of GAAP Measures to Non-GAAP Guidance for 2019 Projected GAAP gross profit % of revenue (A) 55.6% Adjustments: Severance, restructuring, and acquisition costs 0.3% Non-cash expense - acquisition accounting 0.1% Projected adjusted gross profit % of revenue (A) 56.0% Projected GAAP oper