Bioventus Inc. · NASDAQ:BVS
Bioventus — Q1 2023 Earnings Presentation
18 slides from Bioventus's earnings presentation, May 16, 2023
Slide 1: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results May 16, 2023
Slide 2: Agenda and Speakers
Agenda and Speakers Tony Bihl Mark Singleton Interim Chief Executive Officer Senior Vice-President and Chief Financial Officer 2023 Priorities Q1 2023 Results Review of Q1 Results
Slide 3: Forward Looking Statements and Use of Estimates
Forward Looking Statements and Use of Estimates Forward-Looking Statements This press release 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 contained
Slide 4: Perspectives on Business and Priorities for 2023
Perspectives on Business and Priorities for 2023 • Thrilled to be back leading Bioventus and leading our talented team • Confident in the revenue and earnings growth opportunities and our ability to reduce leverage • Look to aggressively address the issues impacting our recent performance • Prioriti
Slide 5: Strategic Priorities for 2023
Strategic Priorities for 2023 • Improve HA business and predictability: • Initiated strategic review to assess potential changes to bolster profitability • Working with key payers to improve quality and integrity of invoicing • Expect reduced variability given renegotiated rebate rates which began i
Slide 6: First Quarter Results: Revenue Increased 2% to $119M
First Quarter Results: Revenue Increased 2% to $119M • Adjusted EBITDA1 increased to $17 million compared to $7 million in the prior year • Adjusted EBITDA1 above expectations due to disciplined expense control • Pain Treatments continued to be impacted by the increase in volume related to private p
Slide 7: First Quarter Results: Revenue Increased 2% to $119M
First Quarter Results: Revenue Increased 2% to $119M • Surgical Solutions delivered continued strong double-digit growth • OsteoAmp Flowable continues to grow rapidly • Ultrasonics grew high single-digits • Forecast double-digit growth for the full year • Restorative Therapies grew double-digits • A
Slide 8: First Quarter Results
First Quarter Results Mark Singleton Senior Vice-President and Chief Financial Officer 8
Slide 9: First Quarter Performance
First Quarter Performance • Revenue of $119 million increased 2% compared to the prior year quarter • Constant currency sales were up 2% compared to the prior year quarter • Higher sales and lower operating expenses generated adjusted EBITDA1 of $17 million • Pleased with ability to reduce costs 1.
Slide 10: First Quarter Performance
First Quarter Performance Pain Treatments Revenue Surgical Solutions Revenue Restorative Therapies Revenue Millions Millions Millions $38 $52 $35 $34 $46 $31 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 • Pain Treatments declined 11% • Surgical Solutions grew 12% • Restorative Therapies grew 11%
Slide 11: First Quarter Performance
First Quarter Performance Adjusted Gross Profit* • Adjusted gross margin* decreased 190 Millions basis points Adjusted Gross Margin* • Price reduction in HA from increased $89 $88 percentage of revenue going through private payers and move from WAC to ASP 76.0% 74.1% • Unfavorable product mix • Adju
Slide 12: First Quarter Performance
First Quarter Performance -$0.26 Adjusted Loss Per Share* Adjusted EBITDA* Adjusted Operating Income* Adjusted Net Income* Millions Millions Millions $17 $14 $3 Q1 2023 Q1 2022 Q1 2023 $7 $2 Q1 2022 Q1 2023 Q1 2022 Q1 2023 $(16) A non-cash valuation allowance on a deferred tax asset associated with
Slide 13: First Quarter Performance: Balance Sheet and Cash Flow
First Quarter Performance: Balance Sheet and Cash Flow • Ended quarter with $47 million of cash • $446 million of debt outstanding • $14 million draw on revolving credit facility after repayment in April • Outstanding balance primarily related to $10 million payment to exit CartiHeal acquisition • R
Slide 14: 2023 Guidance
2023 Guidance • Delaying establishing 2023 guidance due to: • Tony Bihl recently named as interim CEO • Timing of last week’s announcement of wound divestiture • Want to receive additional confirmatory invoices related to HA business • Expect to achieve at least $68 million of EBITDA for the year an
Slide 15: Bioventus: Innovations For Active Healing
@ bioventus Innovations For Active Healing
Slide 16: Reconciliation of Net (Loss) Income from Continuing Operations to Adjusted EBITDA
Reconciliation of Net (Loss) Income from Continuing Operations to Adjusted EBITDA (unaudited) (a) Includes for the three months ended April 1, 2023 and April 2, 2022, respectively, depreciation and amortization of $14,339 and $9,218 in cost of sales and $2,134 and $3,261 in operating expenses presen
Slide 17: Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures
Reconciliation of Other Reported GAAP Measures to Non- GAAP Measures a) The "Reported GAAP Measure" under the "Operating Expenses" column is a sum of all GAAP operating expense line items, excluding research and development. b) Includes for the three months ended April 1, 2023 and April 2, 2022, res
Slide 18: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Adjusted EBITDA, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Earnings per share of Class A Common Stock Adjusted EBITDA, Non-GAAP Gr