Harvard Bioscience, Inc. · NASDAQ:HBIO
Harvard Bioscience — Q3 2020 Earnings Presentation
17 slides from Harvard Bioscience's earnings presentation, Nov 5, 2020
Slide 1: Q3'20 Earnings Presentation
NASDAQ: HBIO Q3’20 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO November 5, 2020
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 Q3 Performance Customer/Product Family Update Restructuring Update Financial Update Looking Forward 3
Slide 4: Summary
Summary Q3’20 Highlights Despite Q3 revenue down 12%, Adj. GM up 80 bps and Adj. OM up 270 bps Academic lab sales see continuing recovery as labs continue to reopen Solid CRO/Pharma revenue, expanded demand for new inhalation product 2020 Outlook Revenue growth will support adding back cost
Slide 5: Q3 2020 Performance versus Q3 2019
Q3 2020 Performance versus Q3 2019 Revenue ($M) Revenue $24.0M, down $3.4M (-12.3%) 27.4 24.0 23.3 Gross Margin (GAAP) 56.1%, up 150 bps Adjusted Gross Margin* 56.4%, up 80 bps Operating Income / Margin (GAAP) $0.2M / 0.8% Adj. Operating Income / Margin* $3.6M / 14.8% Q3'20 Q2'20 Q3'19 L
Slide 6: Q3'20 Revenue By Customer/Product Family
Q3’20 Revenue By Customer/Product Family Note: Q3 is typically a seasonally weaker quarter (in $M) Q3 Q2 Q3 vs. 2020 2020 2019 Q3’19 Cellular & 13.4 12.8 17.0 -21.2% CMT Products: Academic sales continued to improve as labs Molecular slowly returned to restart research and development of next Produc
Slide 7: Restructuring and Q3 Actions Update
Restructuring and Q3 Actions Update Connecticut manufacturing consolidation complete and operational UK downsizing and transition to optimized facility complete and operational Covid-19 related actions in Q2/Q3 supported getting to sustainable lower cost of organization New inhalation produc
Slide 8: Financial Section
Financial Section (H Harvard Bioscience
Slide 9: 2020 Q3 Non-GAAP Results Sequential & Year-over-Year
2020 Q3 Non-GAAP Results Sequential & Year-over-Year (in $ M) Q3’20 Q2’20 Q3’19 Adj. Gross Margin: YoY improvement as product mix, Revenue 24.0 23.3 27.4 cost reductions offset lower volume. Lower sequentially on seasonality, mix. Adj. Gross Profit 13.6 13.9 15.2 Adj. Gross Margin % 56.4% 59.8% 55
Slide 10: 2020 Outlook
(Hy Harvard Bioscience 2020 Outlook
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 academics labs reopen over the coming few quarters Maintaining leaner organization with targeted product
Slide 12: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 12
Slide 13: GAAP Income Statements
GAAP Income Statements Quarterly Year-to-Date (in $ M) Q3’20 Q2’20 Q3’19 Q3’20 Q3’19 Revenue 24.0 23.3 27.4 71.1 85.2 Gross Profit 13.5 13.9 15.0 40.3 47.1 Gross Margin % 56.1% 59.4% 54.6% 56.7% 55.3% Operating Expenses 13.3 13.3 16.3 42.9 48.4 % of revenue 55.4% 57.1% 59.6% 60.3% 56.7% Operating In
Slide 14: Balance Sheets
Balance Sheets (in $ M) Q3’20 Q4’19 Assets Cash & Cash Equivalents 2.8 8.3 Accounts Receivable 13.9 20.7 Inventories 22.7 22.1 Other Current Assets 4.1 2.5 Total Current Assets 43.5 53.6 Property, Plant, Equipment 4.3 4.8 Goodwill & Other Intangibles 92.0 95.8 Other Assets 9.8 10.7 Total Assets 149.
Slide 15: Cash Flow Statements: Year-to-Date
Cash Flow Statements: Year-to-Date (in $ M) Q3’20 Q3’19 Net Cash Provided by Operating Activities 6.8 5.8 Additions to PP&E (1.1) (0.8) Disposition of Business - 1.0 Net Cash (Used in) Provided by Investing Activities (1.1) 0.2 Repayments of Debt, Net (10.6) (6.8) Other Financing Activities (0.7) (0
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in thousands) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2020 2020 2019 2020 2019 GAAP gross profit $ 13,495 $ 13,856 $ 14,979 $ 40,333 $ 47,088 Stock-based compensation expense 19 15 13 44 34 Severance, rest
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, (in thousands, except per share data) 2020 2020 2019 2020 2019 GAAP operating income (loss) $ 182 $ 556 $ (1,365) $ (2,535) $ (1,257) Stock-based compensation expense