Bioventus Inc. · NASDAQ:BVS
Bioventus — Q3 2021 Earnings Presentation
33 slides from Bioventus's earnings presentation, Nov 9, 2021
Slide 1: Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Results November 9, 2021
Slide 2: Agenda and Speakers
Agenda and Speakers Ken Reali Greg Anglum Chief Executive Officer Senior Vice President and Chief Financial Officer Q3 2021 Review Q3 2021 Results Acquisition Update 2021 Planning Outlook
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: Delivered Double-Digit Organic Growth
Delivered Double-Digit Organic Growth • Exceptional execution of growth strategy • Encouraged by commercial team’s continued performance and resiliency • Continued to respond to the challenging dynamics brought on by the pandemic • Remain steadfast on returning patients back to their active lifestyl
Slide 5: Third Quarter Results – 14% Organic Growth
Third Quarter Results – 14% Organic Growth • Revenue increased 27% to $109 million despite continued challenges from the pandemic • Offset headwinds with strong execution across growth initiatives in other areas of our diversified portfolio • Challenges from the pandemic concentrated in Bone Graft S
Slide 6: Pain Treatments Sales Performance
Pain Treatments Sales Performance • Double-digit growth driven by share gains in Durolane and Gelysn • Well positioned to take advantage of shift towards single and three- injection treatments • Share increase driven by multiple factors: • Market access strategy with private payers • Durolane has th
Slide 7: Bone Graft Substitutes Sales Performance
Bone Graft Substitutes Sales Performance • Mid-single digit growth despite the disruption in elective procedures • Momentum driven by recent launch of Osteoamp Flowable, our injectable allograft bone graft substitute solution • Used for variety of procedures including minimally invasive spinal fusio
Slide 8: Restorative Therapies Sales Performance
Restorative Therapies Sales Performance • Double-digit growth bolstered by advanced rehabilitation products • Initiated a pilot to utilize our call point access and sales force to further accelerate Bioness’ double-digit growth • Pilot focused on L300 Go for patients with gate disturbance • Leverage
Slide 9: International Sales Performance
International Sales Performance • International segment grew 39% enhanced by our Bioness acquisition • Organic growth for the quarter was 11% • Close to 10% of our sales coming from international regions • Our mix of sales is below peers • Executing go-to-market strategy and introducing new products
Slide 10: Bioness Acquisition Update
Bioness Acquisition Update • Bioness contributed $11 million of revenue and continues to track ahead of our expectations • Revenue strong across both advanced rehabilitation products and peripheral nerve stimulation (PNS) • Integration continues to progress as planned • Realizing synergies and reach
Slide 11: Bioness Acquisition Update
Bioness Acquisition Update • Bioness providing valuable integration experience • Look to further develop integration as core competency • Encouraged by initial results pilot for PNS utilizing our existing sales force • PNS is a meaningful mid-term growth driver for the overall business
Slide 12: Misonix Acquisition Update
Misonix Acquisition Update • Recently closed acquisition and welcome the Misonix team • Stavros Vizigianakis and Pat Beyer joined Board of Directors • Sharon Klugewicz, COO for Misonix, joined Bioventus as Senior Vice-President of Quality and Regulatory Affairs • Transaction creates a high-growth me
Slide 13: Potential CartiHeal Acquisition Update
Potential CartiHeal Acquisition Update • Announced in August, after extensive evaluation we placed $50 million into escrow • Plan to finance remaining portion of the potential acquisition with debt • Discussed merits of Agili-C with over 600 healthcare professionals • Engaged over a dozen private pa
Slide 14: Building Momentum Across Our Business
Building Momentum Across Our Business • M&A remains meaningful part of long-term growth strategy • Currently highly focused on successfully integrating Bioness and Misonix • Executing on our growth strategy • Driving further penetration in HA and Bone Graft Substitutes • Enhanced growth profile with
Slide 15: Third Quarter Results and 2021 Planning Outlook
Third Quarter Results 2021 Planning Outlook Greg Anglum Senior Vice President and Chief Financial Officer
Slide 16: Showing Meaningful Progress Against Our Growth Initiatives
Showing Meaningful Progress Against Our Growth Initiatives • Revenue of $109 million increased 27% compared to last year • 14 percentage point increase in organic revenue • 13 percentage point benefit related to Bioness • Negatively impacted by a new wave of COVID-related hospitalization • Benefited
Slide 17: Pain Treatments Third Quarter Performance
Pain Treatments Third Quarter Performance Pain Treatments Revenue • Pain Treatments grew 24% Millions • 21 percentage points of organic growth across HA portfolio $61 • 3 percentage point contribution from PNS acquired from $49 Bioness • PNS revenue grew double-digits compared to prior year under Bi
Slide 18: Bone Graft Substitutes Third Quarter Performance
Bone Graft Substitutes Third Quarter Performance • Bone Graft Substitutes impacted by increased COVID related hospitalizations Bone Graft Substitutes Revenue Millions • 4% organic growth $17 $18 • Up 35% YTD compared to 2020 in part to favorable comparison • Estimated impact from disruption during t
Slide 19: Restorative Therapies Third Quarter Performance
Restorative Therapies Third Quarter Performance • Restorative therapies delivered 52% growth Restorative Therapies Revenue • Exogen grew 6 percentage points Millions $30 • Growth from Bioness’ Advanced Rehabilitation portfolio was 46 percentage points $20 • Advanced Rehabilitation revenue grew doubl
Slide 20: Third Quarter Performance
Third Quarter Performance Adjusted Gross Profit • Adjusted gross margin unchanged Millions Adjusted Gross Margin • Some increased transportation costs due to global $86 supply chain challenges $68 • Offset through improved manufacturing performance and favorable product mix 79% 79% • Adjusted operat
Slide 21: Third Quarter Performance
Third Quarter Performance $0.25 Adjusted Diluted Earnings Per Share Adjusted EBITDA Adjusted Operating Income Adjusted Net Income Millions Millions Millions $23 $15 $15 $21 $14 $13 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021
Slide 22: Third Quarter Performance
Third Quarter Performance • Balance sheet is solid and provides strategic flexibility • Ended quarter with $81 million of cash and $177 million of debt • Post Misonix acquisition • $376 million of debt • In excess of $50 million of cash • Operating cash flow of $11 million for quarter • Made $50 mil
Slide 23: Updated Guidance
Updated Guidance • 2021 revenue guidance increased to $425 million - $430 million from $405 million - $415 million • Incorporates two months of Misonix revenue, Q3 performance and updated Q4 expectations • Adjusted EBITDA guidance remains $77.8 million - $82.0 million • Adjusted EBITDA guidance now
Slide 24: Executing Across Our Business
Executing Across Our Business • Executing on growth initiatives • Confident in our ability to maintain top-line momentum • Completing integration of Bioness • Beginning to integrate Misonix in coming months
Slide 25: Bioventus: Innovations For Active Healing
@ bioventus Innovations For Active Healing
Slide 26: Reconciliation of Net (Loss) Income to Adjusted EBITDA (unaudited)
Reconciliation of Net (Loss) Income to Adjusted EBITDA (unaudited) Three Months Ended Nine Months Ended (a) Includes for the three months ended October 2, 2021 and September 26, 2020 and the nine September 26, September 26, months ended October 2, 2021 and September 26, 2020, respectively, depreciat
Slide 27: Reconciliation of Net (Loss) Income to Non-GAAP Net Income
Reconciliation of Net (Loss) Income to Non-GAAP Net Income (unadudited) Three Months Ended Nine Months Ended (a) Costs incurred as a result of adopting a restructuring plan for October 2, September October 2, September ($, thousands) 2021 26, 2020 2021 26, 2020 businesses recently acquired to reduce
Slide 28: Reconciliation of Loss per Share to Non-GAAP Earnings per Share
Reconciliation of Loss per Share of Class A Common Stock to Non-GAAP Earnings per Share of Class A Common Stock (unaudited) Three Months Ended October 2, 2021 Weighted average Class A Common Stock outstanding, basic & diluted 41,837,581 Loss per share of Class A Common Stock (basic & diluted) $ (0.0
Slide 29: Reconciliation of Gross Profit to Non-GAAP Gross Profit and Gross Margin
Reconciliation of Gross Profit to Non-GAAP Gross Profit and Gross Margin to Non-GAAP Gross Margin (unaudited)
Slide 30: Reconciliation of Operating (Loss) Income to Non-GAAP Operating Income
Reconciliation of Operating (Loss) Income to Non-GAAP Operating Income and Operating Margin to Non-GAAP Operating Margin (unaudited) (a) Costs incurred as a result of adopting a restructuring plan for businesses recently acquired to reduce headcount, reorganize management structure and consolidate c
Slide 31: Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses (unaudited) Three Months Ended Nine Months Ended September 26, September 26, ($, thousands) October 2, 2021 2020 October 2, 2021 2020 Operating Expenses $ 80,116 $ 55,531 $ 199,727 $ 144,720 Amortization included in operating expens
Slide 32: Reconciliation of Guidance Range for Net Income to Non-GAAP Net Income
Reconciliation of Guidance Range for Net Income to Non- GAAP Net Income for the twelve months ending December 31, 2021 Twelve Months Ended 2021 Guidance 2021 Guidance December 31, ($, thousands) Low High 2020 Net income $ 1,800 $ 3,700 $ 14,722 Depreciation and Amortization included in cost of goods
Slide 33: Reconciliation of Guidance Range for Net Income to Adjusted EBITDA
Reconciliation of Guidance Range for Net Income to Adjusted EBITDA for the twelve months ending December 31, 2021 Twelve Months Ended 2021 Guidance 2021 Guidance December 31, ($, thousands) Low High 2020 Net Income $ 1,800 $ 3,700 $ 14,722 Depreciation and amortization 33,700 34,500 28,643 Loss on d