Slide 1: Q4'20 Earnings Presentation
NASDAQ: HBIO Q4’20 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO March 10, 2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements 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 Securities
Slide 3: Table of Contents
Table of Contents ▪ Summary ▪ Q4 Performance ▪ Customer/Product Family Update ▪ Business Update ▪ Financial Update ▪ 2021 Outlook 3
Slide 4: Summary
Summary Q4’20 Highlights ▪ Revenue recovered to Q4’19 (pre-Covid) levels ▪ Adjusted operating margin improved year over year and sequentially to 19% ▪ Pre-Clinical product revenue up 19% with strength across all markets, product lines ▪ CMT still down though recovering as academics labs continue to
Slide 5: Q4 2020 Performance versus Q4 2019
Q4 2020 Performance versus Q4 2019 Revenue ($M) ▪ Revenue $31.0M, Flat 31.0 31.0 ▪ Gross Margin 57.2%, up 160 bps 24.0 ▪ Operating Income / Margin (GAAP) $2.8M / 8.9% ▪ Adj. Operating Income / Margin* $5.8M / 18.7% ▪ Loss Per Diluted Share (GAAP) ($0.02) Q4'20 Q3'20 Q4'19 ▪ Adjusted Diluted EPS * $0
Slide 6: Q4 2020 Revenue By Customer/Product Family
Q4 2020 Revenue By Customer/Product Family (in $M) Q4 Q3 Q4 vs. 2020 2020 2019 Q4’19 Cellular & 16.4 13.4 19.4 -15.5% CMT Products Molecular Product Academic Research continued to improve sequentially as labs Lines slowly return, with minor impact of increased lockdowns in Europe. Q4 improved from d
Slide 7: Q4 2020 Business Update
Q4 2020 Business Update Growth Drivers ▪ Sales realignment with territory expansion, aligned along direct sales and distribution for growth ▪ Pre-clinical telemetry and Inhalation product lines growing fast in Pharma/CRO & Academics Cost & Cash Flow ▪ Cost out from turnaround/lean initiatives delive
Slide 8: Financial Section
(Tr Harvard Bioscience Financial Section
Slide 9: 2020 Q4 Non-GAAP Results Sequential & Year-over-Year
2020 Q4 Non-GAAP Results Sequential & Year-over-Year (in M, except EPS) Q4’20 Q3’20 Q4’19 ▪ Adj. Gross Margin: YoY improvement on product mix, Revenue 31.0 24.0 31.0 cost reductions. Up sequentially on mix, seasonality Adj. Gross Profit 17.8 13.6 17.3 Adj. Gross Margin % 57.5% 56.4% 55.9% ▪ Adj. Ope
Slide 10: 2021 Outlook
(Tr Harvard Bioscience 2021 Outlook
Slide 11: 2021 Outlook
2021 Outlook Sales, marketing effectiveness, academic lab recoveries delivers strong organic growth, profit improvement with investments for long-term value creation ▪ Revenue growth: expect 8-to-12% versus 2020 on a reported basis o Pre-Clinical tailwinds and overall sales execution on track to pro
Slide 12: Appendix: Revenue by Product Family and GAAP to Non-GAAP Reconciliations
Appendix: • Revenue by Product Family 2020 vs. 2019 • GAAP to Non-GAAP Reconciliations 12
Slide 13: Revenue By Customer/Product Family
Revenue By Customer/Product Family (in $M) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 Cellular & 18.4 19.0 17.0 19.4 73.8 15.5 12.8 13.4 16.4 58.1 Molecular Product Lines Preclinical 9.8 10.6 10.4 11.6 42.4 8.5 10.7 10.3 13.8 43.3 Product Lines Currency - - - - -
Slide 14: GAAP Income Statements
GAAP Income Statements Quarterly Year-to-Date (in $ M, except EPS) Q4’20 Q3’20 Q4’19 Q4’20 Q4’19 Revenue 31.0 24.0 31.0 102.1 116.2 Gross Profit 17.7 13.5 17.2 58.0 64.3 Gross Margin % 57.2% 56.1% 55.6% 56.8% 55.4% Operating Expenses 15.0 13.3 15.6 57.8 63.9 % of revenue 48.3% 55.4% 50.4% 56.6% 55.0
Slide 15: Balance Sheets
Balance Sheets (in $ M) Q4’20 Q4’19 Assets Cash & Cash Equivalents 8.3 8.3 Accounts Receivable 17.8 20.7 Inventories 22.3 22.1 Other Current Assets 3.4 2.5 Total Current Assets 51.7 53.6 Property, Plant, Equipment 4.0 4.8 Goodwill & Other Intangibles 91.7 95.8 Other Assets 8.9 10.7 Total Assets 156.
Slide 16: Cash Flow Statements: Annual
Cash Flow Statements: Annual (in $ M) 2020 2019 Net Cash Provided by Operating Activities 9.3 8.0 Additions to PP&E (1.2) (1.2) Other Investing Activities (0.2) - Disposition of Business - 1.0 Net Cash Used in Investing Activities (1.4) (0.2) Repayments of Debt, Net (7.5) (7.4) Other Financing Activ
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in thousands) 17
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in thousands, except per share data) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2020 2020 2019 2020 2019 GAAP operating income $ 2,756 $ 182 $ 1,634 $ 221 $ 377 Stock-based compensation expense 1,006 1,079 841 3,64