Harvard Bioscience, Inc. · NASDAQ:HBIO

Harvard Bioscience — Q2 2020 Earnings Presentation

18 slides from Harvard Bioscience's earnings presentation, Aug 5, 2020

  1. Slide 1: NASDAQ: HBIO Q2'20 Earnings Presentation

    NASDAQ: HBIO Q2’20 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO August 5, 2020

  2. 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

  3. Slide 3: Table of Contents

    Table of Contents Earnings Presentation  Summary  Q2 Performance  Customer/Product Family Update  Restructuring/Covid-19 Response Update  Financial Update  Looking Forward 3

  4. Slide 4: Summary: Q2'20 Highlights

    2020 Q2 Earnings Presentation Summary Q2’20 Highlights  Academic labs were down significantly as anticipated due to lab closures  Combined CRO/Pharma revenue remained strong and growing  Strict cost control, product mix drove strong margins, continued net debt reduction 2020 Looking Forward  Car

  5. Slide 5: Q2 2020 Performance versus Q2 2019

    2020 Q2 Earnings Presentation Revenue ($M) Q2 2020 Performance versus Q2 2019 29.6  Revenue $23.3M, down $6.3M (-21.3%) 23.3 23.8  Gross Margin (GAAP) 59.4%, up 550 bps  Adjusted Gross Margin* 59.8%, up 550 bps  Operating Income / Margin (GAAP) $0.6 / 2.4% Q2'20 Q1'20 Q2'19  Adj. Operating Inco

  6. Slide 6: 2020 Q2 Revenue by Product Family

    2020 Q2 Revenue by Product Family (in $M) Q2 Q1 Q2 vs. 2020 2020 2019 Q2’19 Cellular & 12.8 15.5 19.0 -32.6% CMT Products: Academic sales were down world-wide as many Molecular labs closed and sent their personnel home, many unable to Product process new orders or receive equipment Family Pre-Clinic

  7. Slide 7: Restructuring and Covid-19 Response Update

    2020 Q2 Earnings Presentation Restructuring and Covid-19 Response Update Q4’19 Restructuring Status  Connecticut manufacturing consolidation and UK downsizing on track for Q3 completion  Reduction in force > 10% across overall business – substantially complete Covid-19 Response / 2020 Actions  $3

  8. Slide 8: Financial Section

    Financial Section (H Harvard Bioscience

  9. Slide 9: Q2 2020 Non-GAAP Results Sequential & Year-over-Year

    Q2 2020 Non-GAAP Results Sequential & Year-over-Year (in $ M) Q2’20 Q1’20 Q2’19  Adj. Gross Margin: strong product mix plus positive Revenue 23.3 23.8 29.6 impact of restructuring, cost reduction Adj. Gross Profit * 13.9 13.0 16.1 Adj. Gross Margin % 59.8% 54.6% 54.3%  Adj. Operating Expense: sequ

  10. Slide 10: 2020 Outlook

    (Hy Harvard Bioscience 2020 Outlook

  11. Slide 11: 2020 Looking Forward

    2020 Looking Forward Covid-19 Pandemic Actions and Improved Business Structure put us back on Target  Expect combined CROs and Pharma revenues to continue to grow  Expect sequential growth as academic labs reopen over the coming few quarters  Maintaining leaner organization with targeted product

  12. Slide 12: GAAP to Non-GAAP Reconciliations

    GAAP to Non-GAAP Reconciliations 12

  13. Slide 13: GAAP Income Statements: Quarterly

    GAAP Income Statements: Quarterly (in $ M) Q2’20 Q1’20 Q2’19 Revenue 23.3 23.8 29.6 Gross Profit 13.9 13.0 16.0 Gross Margin % 59.4% 54.6% 53.9% Operating Expenses 13.3 16.3 15.7 % of revenue 57.1% 68.4% 53.2% Operating Income (Loss) 0.6 (3.3) 0.2 Operating Margin % 2.4% -13.8% 0.8% Net Loss (1.6) (

  14. Slide 14: GAAP Income Statements: Year-to-Date

    GAAP Income Statements: Year-to-Date (in $ M) Q2’20 Q2’19 Revenue 47.1 57.8 Gross Profit 26.8 32.1 Gross Margin % 57.0% 55.6% Operating Expenses 29.6 32.0 % of revenue 62.8% 55.4% Operating Income (Loss) (2.7) 0.1 Operating Margin % -5.8% 0.2% Net Loss (6.1) (2.6) % of revenue -13.0% -4.5% EPS (0.16

  15. Slide 15: Balance Sheet

    Balance Sheet (in $ M) Q2’20 Q4’19 Assets Cash & Cash Equivalents 2.6 8.3 Accounts Receivable 14.7 20.7 Inventories 23.2 22.1 Other Current Assets 3.6 2.5 Total Current Assets 44.1 53.6 Property, Plant, Equipment 4.2 4.8 Goodwill & Other Intangibles 92.5 95.8 Other Assets 9.9 10.7 Total Assets 150.7

  16. Slide 16: Cash Flow Statements: Year-to-Date

    Cash Flow Statements: Year-to-Date (in $ M) Q2’20 Q2’19 Net Cash Provided by Operating Activities 5.2 2.7 Additions to PP&E (0.5) (0.4) Other Investing Activities - 1.0 Net Cash (Used in) Provided by Investing Activities (0.5) 0.6 Repayments of Debt, Net (10.3) (6.2) Other Financing Activities (0.1)

  17. Slide 17: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Three Months Ended Six Months Ended (in thousands) June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 GAAP gross profit $ 13,856 $ 12,982 $ 15,955 $ 26,838 $ 32,109 Stock-based compensation expense 15 10 9 25 23 Severance, restructuring and acquisi

  18. Slide 18: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation (in thousands, except per share data) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 GAAP operating income (loss) $ 556 $ (3,273) $ 228 $ (2,717) $ 108 Stock-based compensation expense 769 793 615 1,562 1,202

Harvard Bioscience — Q2 2020 Earnings Presentation on 6ix