Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results August 8, 2023
Slide 2: Agenda and Speakers
Agenda and Speakers Tony Bihl Mark Singleton Interim Chief Executive Officer Senior Vice-President and Chief Financial Officer Update on Business Outlook Q2 2023 Results Review of Q2 2023 Results Financial Guidance
Slide 3: Forward Looking Statements and Use of Estimates
Forward Looking Statements and Use of Estimates 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 contained i
Slide 4: Strong Start to the Year to Solidify Financial Position
Strong Start to the Year to Solidify Financial Position • Encouraged by our results for the second quarter as we aggressively address the issues impacting last year’s performance • Focused on delivering sustainable, profitable growth, while remaining compliant with our debt covenants and reducing le
Slide 5: Strategic Priorities for 2023
Strategic Priorities for 2023 • Deliver annual sales plan • Continue strong double-digit revenue growth in Surgical Solutions and International Business • Maintain volume growth and share gains across HA portfolio • Return HA to growth through price stabilization expected to start in the fourth quar
Slide 6: Second Quarter Results: Revenue Decreased 2% to $137M
Second Quarter Results: Revenue Decreased 2% to $137M • Adjusted EBITDA1 increased to $28 million compared to $22 million in the prior year • Adjusted EBITDA1 above expectations primarily due to stringent expense control • Pain Treatments saw double digit increase in sales volume with significant do
Slide 7: Second Quarter Results: Revenue Decreased 2% to $137M
Second Quarter Results: Revenue Decreased 2% to $137M • Surgical Solutions as expected saw a slowdown in revenue growth • Slower growth due to increased distributor churn in Bone Graft Substitutes • Bone Graft Substitutes expected to accelerate in second half of 2023 due to recent increase in distri
Slide 8: Second Quarter Results
Second Quarter Results Mark Singleton Senior Vice-President and Chief Financial Officer 8
Slide 9: Second Quarter Performance
Second Quarter Performance • Revenue of $137 million decreased 2% compared to the prior year quarter • Constant currency sales also declined 2% compared to the prior year quarter • Revenue growth was even with the prior year quarter when adjusting for the divestiture of our Wound Business • Generate
Slide 10: Second Quarter Performance
Second Quarter Performance Pain Treatments Revenue Surgical Solutions Revenue Restorative Therapies Revenue Millions Millions Millions $64 $62 $40 $39 $37 $37 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 • Pain Treatments declined 4% • Surgical Solutions grew 6% • Restorative Therapies fell 8% co
Slide 11: Second Quarter Performance
Second Quarter Performance Adjusted Gross Profit* • Adjusted gross margin* decreased 280 basis Millions Adjusted Gross Margin* points $108 • Price reduction in HA from increased percentage $101 of revenue going through private payers and move from WAC to ASP • Unfavorable product mix 76.8% 74.0% • A
Slide 12: Second Quarter Performance
Second Quarter Performance $0.14 Adjusted Earnings Per Share* Adjusted EBITDA* Adjusted Operating Income* Adjusted Net Income* Millions Millions Millions $28 $28 $11 $22 $9 $18 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 * See important disclosures on non-GAAP financial measures and the reconcil
Slide 13: Second Quarter Performance: Balance Sheet and Cash Flow
Second Quarter Performance: Balance Sheet and Cash Flow • Ended quarter with $29 million of cash • $386 million of debt outstanding • $7 million draw on revolving credit facility • Reduced overall bank borrowings by $60 million during the second quarter • Operating cash outflow of $11 million due to
Slide 14: 2023 Guidance
2023 Guidance • Providing initial 2023 sales and earnings guidance • Expect 2023 net sales to be in the range of $490 million to $505 million • Expect 2023 adjusted EBITDA to be in the range of $75 million to $80 million • Expect 2023 adjusted diluted loss per share to be a loss of $0.24 to a loss o
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 July 1, 2023 and July 2, 2022 and the six months ended July 1, 2023 and July 2, 2022, respectively, depreciation and amortization of $12,301, $9,684, $26,640 and $18,
Slide 17: Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures (Three Months)
Reconciliation of Other Reported GAAP Measures to Non- GAAP Measures (for Three Months Ended) Net Loss EPS from Operating Operating (a) The "Reported GAAP Measure" under the "Operating Expenses" column is a sum of all GAAP operating Continuing Continuing Three Months Ended July 1, 2023 Gross Profit
Slide 18: Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures (Six Months)
Reconciliation of Other Reported GAAP Measures to Non- GAAP Measures (for Six Months Ended) Net Loss EPS from Operating Operating Continuing Continuing Six Months Ended July 1, 2023 Gross Profit Expenses(a) R&D Loss Operations Operations(j) (a) The "Reported GAAP Measure" under the "Operating Expens
Slide 19: 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