Market Newsdesk

May 4, 2021 7:03 am

Charles River Laboratories Announces First-Quarter 2021 Results

Charles River Laboratories Announces First-Quarter 2021 Results

– First-Quarter Revenue of $824.6 Million –

– First-Quarter GAAP Earnings per Share of $1.20 and Non-GAAP Earnings per Share of $2.53 –

– Updates 2021 Guidance –

WILMINGTON, Mass.–(BUSINESS WIRE)–
Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the first quarter of 2021. For the quarter, revenue was $824.6 million, an increase of 16.6% from $707.1 million in the first quarter of 2020.

Acquisitions contributed 0.7% to consolidated first-quarter revenue growth. The impact of foreign currency translation benefited reported revenue growth by 2.9%. Excluding the effect of these items, organic revenue growth of 13.0% was driven by contributions from all three business segments. The year-over-year comparison to last year’s COVID-19-related revenue impact contributed approximately 140 basis points to the reported and organic revenue growth rates in the first quarter, principally in the Research Models and Services segment.

On a GAAP basis, first-quarter net income attributable to common shareholders was $61.5 million, an increase of 21.2% from net income of $50.8 million for the same period in 2020. First-quarter diluted earnings per share on a GAAP basis were $1.20, an increase of 17.6% from $1.02 for the first quarter of 2020. The increases in the GAAP net income and earnings per share were driven primarily by higher revenue and operating margin improvement, partially offset by debt extinguishment costs and the write-off of deferred financing costs related to debt refinancing activities in the first quarter of 2021.

On a non-GAAP basis, net income from continuing operations was $129.2 million for the first quarter of 2021, an increase of 40.7% from $91.8 million for the same period in 2020. First‑quarter diluted earnings per share on a non-GAAP basis were $2.53, an increase of 37.5% from $1.84 per share for the first quarter of 2020. The non-GAAP net income and earnings per share increases were driven primarily by higher revenue and operating margin improvement.

James C. Foster, Chairman, President and Chief Executive Officer, said, “Our first-quarter performance demonstrates the power of our unique, non-clinical portfolio and the strength of the biopharmaceutical market environment. A global focus on scientific innovation is driving record levels of investment in the biopharmaceutical industry, which is generating biomedical breakthroughs across multiple therapeutic areas at a rapid pace. We believe these factors are resulting in unprecedented client demand across most of our businesses.”

“To maintain and enhance our position as the leading, non-clinical CRO, we are strategically expanding our portfolio and enhancing our scientific capabilities, especially in the use of more complex research techniques and advanced drug modalities such as cell and gene therapies. These investments are enabling us to offer greater value to our clients and capitalize on the significant growth opportunities,” Mr. Foster concluded.

First-Quarter Segment Results

Research Models and Services (RMS)

Revenue for the RMS segment was $176.9 million in the first quarter of 2021, an increase of 21.2% from $146.0 million in the first quarter of 2020. The impact of foreign currency translation contributed 4.2%, and acquisitions, principally Cellero which was completed in August 2020, contributed 2.2% to first-quarter RMS revenue. Organic revenue growth of 14.8% was driven by robust demand for research models in China, as well as higher revenue for research models services, particularly Genetically Engineered Models and Services (GEMS). The year-over-year comparison to last year’s COVID-19-related revenue impact contributed approximately 620 basis points to the RMS revenue growth rate in the first quarter.

In the first quarter of 2021, the RMS segment’s GAAP operating margin increased to 25.4% from 18.7% in the first quarter of 2020. On a non-GAAP basis, the operating margin increased to 28.7% from 23.0% in the first quarter of 2020. The GAAP and non-GAAP operating margin increases were driven primarily by operating leverage from higher sales volume for research models.

Discovery and Safety Assessment (DSA)

Revenue for the DSA segment was $501.2 million in the first quarter of 2021, an increase of 14.2% from $438.7 million in the first quarter of 2020. The impact of foreign currency translation contributed 2.3% to DSA revenue growth. Organic revenue growth of 11.6% was primarily driven by robust demand from global biopharmaceutical and biotechnology clients in both the Discovery Services and Safety Assessment businesses.

In the first quarter of 2021, the DSA segment’s GAAP operating margin increased to 18.1% from 16.5% in the first quarter of 2020. On a non-GAAP basis, the operating margin increased to 23.8% from 22.0% in the first quarter of 2020. The GAAP and non-GAAP operating margin increases were driven primarily by operating leverage from higher revenue in both the Discovery Services and Safety Assessment businesses.

Manufacturing Support (Manufacturing)

Revenue for the Manufacturing segment was $146.5 million in the first quarter of 2021, an increase of 19.7% from $122.4 million in the first quarter of 2020. The impact of foreign currency translation contributed 4.1% to Manufacturing revenue growth. Organic revenue growth of 15.6% was driven by strong demand in the Biologics Testing Solutions (Biologics) and Microbial Solutions businesses.

In the first quarter of 2021, the Manufacturing segment’s GAAP operating margin increased slightly to 33.8% from 33.6% in the first quarter of 2020. On a non-GAAP basis, the operating margin decreased slightly to 35.5% from 35.6% in the first quarter of 2020.

2021 Guidance

On February 17, 2021, the Company provided 2021 financial guidance, both excluding and including the impact of the Cognate BioServices acquisition. The acquisition of Cognate was subsequently completed on March 29, 2021.

The Company is increasing its revenue growth and non-GAAP earnings per share guidance for 2021, as a result of the stronger-than-expected first quarter financial performance and an expectation that robust client demand trends will continue for the remainder of the year. This updated guidance includes the acquisitions that have already been completed in 2021, including Cognate.

The Company’s updated guidance for revenue growth, earnings per share, and free cash flow is as follows:

2021 GUIDANCE INCLUDING COGNATE	CURRENT	PRIOR
Revenue growth, reported	19% – 21%	16% – 18%
Less: Contribution from acquisitions (1)	(4.5%) – (5.0%)	(4.5%) – (5.0%)
Unfavorable/(favorable) impact of foreign exchange	~(2.5%)	(2.0%) – (2.5%)
Revenue growth, organic (2)	12% – 14%	9% – 11%
GAAP EPS estimate	$5.95 – $6.20	—
Acquisition-related amortization (3)	$2.15 – $2.40	—
Acquisition-related adjustments (4)	$0.75 – $0.80	—
Other items (5)	~$0.55	—
Venture capital and other strategic investment losses/(gains), net (6)	$0.25	—
Non-GAAP EPS estimate	$9.75 – $10.00	$9.00 – $9.25
Free cash flow (7)	~$435 million	—

Footnotes to Guidance Table:

(1) The contribution from acquisitions reflects only those acquisitions that have been completed.

(2) Organic revenue growth is defined as reported revenue growth adjusted for acquisitions and foreign currency translation.

(3) Acquisition-related amortization includes an estimate of $0.45-$0.65 for the impact of the Cognate acquisition and $0.05-$0.10 for other acquisitions completed in 2021 because the preliminary purchase price allocation has not been completed.

(4) These adjustments are related to the evaluation and integration of acquisitions, and primarily include transaction, advisory, and certain third-party integration costs, as well as certain costs associated with acquisition-related efficiency initiatives.

(5) These items primarily relate to charges of a) approximately $0.15 associated with U.S. and international tax legislation, and b) approximately $0.40 associated with debt extinguishment costs and the write-off of deferred financing costs related to debt refinancing.

(6) Venture capital and other strategic investment performance only includes recognized gains or losses. The Company does not forecast the future performance of these investments.

(7) Reconciliation of the current 2021 free cash flow guidance is as follows: Cash flow from operating activities of approximately $655 million, less capital expenditures of approximately $220 million, equates to free cash flow of approximately $435 million.

Webcast

Charles River has scheduled a live webcast on Tuesday, May 4^th, at 9:00 a.m. ET to discuss matters relating to this press release. To participate, please go to ir.criver.com and select the webcast link. You can also find the associated slide presentation and reconciliations of GAAP financial measures to non-GAAP financial measures on the website.

Bank of America Health Care Conference Presentation

Charles River will virtually present at the Bank of America 2021 Health Care Conference, on Wednesday, May 12^th, at 10:15 a.m. ET. Management will provide an overview of Charles River’s strategic focus and business developments.

A live webcast of the presentation will be available through a link that will be posted on ir.criver.com. A webcast replay will be accessible through the same website shortly after the presentation and will remain available for approximately two weeks.

Investor Day

Charles River will host a virtual Meeting with Management on Thursday, May 27^th, beginning at 8:30 a.m. ET. Investors will have the opportunity to listen to a webcast of the virtual event through the Investor Relations section of the Company’s website at ir.criver.com. A replay will be accessible through the same website.

Non-GAAP Reconciliations

The Company reports non-GAAP results in this press release, which exclude often-one-time charges and other items that are outside of normal operations. A reconciliation of GAAP to non-GAAP results is provided in the schedules at the end of this press release.

Use of Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, such as non-GAAP earnings per diluted share, which exclude the amortization of intangible assets, and other charges related to our acquisitions; expenses associated with evaluating and integrating acquisitions and divestitures, as well as fair value adjustments associated with contingent consideration; charges, gains, and losses attributable to businesses or properties we plan to close, consolidate, or divest; severance and other costs associated with our efficiency initiatives; the write-off of deferred financing costs and fees related to debt financing; third-party costs associated with the remediation of unauthorized access into our information systems detected in March 2019; the non-cash tax benefit related to our international financing structure; investment gains or losses associated with our venture capital and other strategic equity investments; and adjustments related to the recognition of deferred tax assets expected to be utilized as a result of changes to the our international financing structure. This press release also refers to our revenue in both a GAAP and non-GAAP basis: “organic revenue growth,” which we define as reported revenue growth adjusted for foreign currency translation, acquisitions, and divestitures. We exclude these items from the non-GAAP financial measures because they are outside our normal operations. There are limitations in using non-GAAP financial measures, as they are not presented in accordance with generally accepted accounting principles, and may be different than non-GAAP financial measures used by other companies. In particular, we believe that the inclusion of supplementary non-GAAP financial measures in this press release helps investors to gain a meaningful understanding of our core operating results and future prospects without the effect of these often-one-time charges, and is consistent with how management measures and forecasts the Company’s performance, especially when comparing such results to prior periods or forecasts. We believe that the financial impact of our acquisitions and divestitures (and in certain cases, the evaluation of such acquisitions and divestitures, whether or not ultimately consummated) is often large relative to our overall financial performance, which can adversely affect the comparability of our results on a period-to-period basis. In addition, certain activities and their underlying associated costs, such as business acquisitions, generally occur periodically but on an unpredictable basis. We calculate non-GAAP integration costs to include third-party integration costs incurred post-acquisition. Presenting revenue on an organic basis allows investors to measure our revenue growth exclusive of acquisitions, divestitures, and foreign currency exchange fluctuations more clearly. Non-GAAP results also allow investors to compare the Company’s operations against the financial results of other companies in the industry who similarly provide non-GAAP results. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations presented in accordance with GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules and regulations. Reconciliations of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures are set forth in this press release, and can also be found on the Company’s website at ir.criver.com.

Caution Concerning Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “would,” “may,” “estimate,” “plan,” “outlook,” and “project,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements also include statements regarding the impact of the COVID-19 pandemic; the projected future financial performance of Charles River and our specific businesses; the future demand for drug discovery and development products and services, including our expectations for future revenue trends; our expectations with respect to the impact of acquisitions completed in 2020 and 2021 on the Company, our service offerings, client perception, strategic relationships, revenue, revenue growth rates, and earnings; the development and performance of our services and products, including our investments in our portfolio; market and industry conditions including the outsourcing of services and spending trends by our clients; and Charles River’s future performance as delineated in our revised forward-looking guidance, and particularly our expectations with respect to revenue, the impact of foreign exchange, enhanced efficiency initiatives, and the assumptions surrounding the COVID-19 pandemic that form the basis for our revised annual guidance. Forward-looking statements are based on Charles River’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. Those risks and uncertainties include, but are not limited to: the COVID-19 pandemic, its duration, its impact on our business, results of operations, financial condition, liquidity, business practices, operations, suppliers, third party service providers, clients, employees, industry, ability to meet future performance obligations, ability to efficiently implement advisable safety precautions, and internal controls over financial reporting; the COVID-19 pandemic’s impact on client demand, the global economy and financial markets; the ability to successfully integrate businesses we acquire (including Cognate BioServices and risks and uncertainties associated with Cognate BioServices products and services, which are in areas that the Company did not previously operate); the timing and magnitude of our share repurchases; negative trends in research and development spending, negative trends in the level of outsourced services, or other cost reduction actions by our clients; the ability to convert backlog to revenue; special interest groups; contaminations; industry trends; new displacement technologies; USDA and FDA regulations; changes in law; the impact of Brexit; continued availability of products and supplies; loss of key personnel; interest rate and foreign currency exchange rate fluctuations; changes in tax regulation and laws; changes in generally accepted accounting principles; and any changes in business, political, or economic conditions due to the threat of future terrorist activity in the U.S. and other parts of the world, and related U.S. military action overseas. A further description of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in Charles River’s Annual Report on Form 10-K as filed on February 17, 2021, as well as other filings we make with the Securities and Exchange Commission. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by Charles River, and Charles River assumes no obligation and expressly disclaims any duty to update information contained in this press release except as required by law.

Estimates of COVID-19 Impact in 2020

In this press release, the Company has provided its estimates for the impact from the COVID-19 pandemic in 2020, including on the Company’s revenue. These estimates were determined using methodologies and assumptions that vary depending on the specific reporting segment and situation. For the Research Models and Services segment, estimates were primarily based on comparisons to daily historical research model sales volumes prior to the COVID-19 pandemic and the subsequent reduction in research model order activity associated with our clients’ COVID-19 pandemic-related site closures and/or their reduced on-site activity, as well as our discussions with clients, particularly of our research model services and HemaCare businesses, with regard to revenue expectations and operational impacts from the COVID-19 pandemic. For the Discovery and Safety Assessment segment, estimates were based on multiple factors including, but not limited to, discussions with clients with regard to the cause of delays to discovery projects and safety assessment studies, location-specific actions to ensure employee safety in our facilities, the impact of remote versus in-person activities and services, and supply chain delays and other resource constraints. For the Manufacturing Support segment, estimates were based on multiple factors including, but not limited to, analysis of the sales impact due to the COVID-19 pandemic, assessments of idle instruments and the related revenue streams due to the inability to access clients’ sites, as well as discussions with clients with regard to their revenue expectations and operations. The estimated revenue loss related to COVID-19 was also expected to be partially offset by incremental work on clients’ COVID-19 programs. Because these estimates and assumptions involve risks and uncertainties, actual events and results may differ materially from these estimates and assumptions, and Charles River assumes no obligation and expressly disclaims any duty to update them.

About Charles River

Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our dedicated employees are focused on providing clients with exactly what they need to improve and expedite the discovery, early-stage development and safe manufacture of new therapies for the patients who need them. To learn more about our unique portfolio and breadth of services, visit www.criver.com.

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

SCHEDULE 1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except for per share data)

	Three Months Ended
	March 27, 2021			March 28, 2020

Service revenue	$	626,581		$	546,592
Product revenue		197,985			160,467
Total revenue		824,566			707,059
Costs and expenses:
Cost of services provided (excluding amortization of intangible assets)		423,975			372,824
Cost of products sold (excluding amortization of intangible assets)		92,313			82,174
Selling, general and administrative		155,733			129,901
Amortization of intangible assets		28,842			27,879
Operating income		123,703			94,281
Other income (expense):
Interest income		35			316
Interest expense		(29,719	)		(15,067	)
Other expense, net		(27,717	)		(24,071	)
Income from operations, before income taxes		66,302			55,459
Provision for income taxes		2,367			4,622
Net income		63,935			50,837
Less: Net income attributable to noncontrolling interests		2,405			68
Net income attributable to common shareholders	$	61,530		$	50,769

Earnings per common share
Net income attributable to common shareholders:
Basic	$	1.23		$	1.03
Diluted	$	1.20		$	1.02

Weighted-average number of common shares outstanding;
Basic		49,980			49,189
Diluted		51,075			49,966

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

SCHEDULE 2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share amounts)


	March 27, 2021			December 26, 2020
Assets
Current assets:
Cash and cash equivalents	$	465,411		$	228,424
Trade receivables, net of allowances for doubtful accounts of $7,278 and $6,702, respectively		610,566			617,740
Inventories		193,584			185,695
Prepaid assets		81,726			96,712
Other current assets		71,922			72,560
Total current assets		1,423,209			1,201,131
Property, plant and equipment, net		1,117,003			1,124,358
Operating lease right-of-use assets, net		197,668			178,220
Goodwill		1,890,630			1,809,168
Client relationships, net		712,384			721,505
Other intangible assets, net		83,181			66,094
Deferred tax assets		35,457			37,729
Other assets		349,431			352,626
Total assets	$	5,808,963		$	5,490,831

Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities:
Current portion of long-term debt and finance leases	$	2,932		$	50,214
Accounts payable		127,129			122,475
Accrued compensation		164,748			206,823
Deferred revenue		213,032			207,942
Accrued liabilities		198,188			149,820
Other current liabilities		97,347			102,477
Total current liabilities		803,376			839,751
Long-term debt, net and finance leases		2,202,334			1,929,571
Operating lease right-of-use liabilities		173,015			155,595
Deferred tax liabilities		207,011			217,031
Other long-term liabilities		207,008			205,215
Total liabilities		3,592,744			3,347,163
Redeemable noncontrolling interests		28,035			25,499
Equity:
Preferred stock, $0.01 par value; 20,000 shares authorized; no shares issued and outstanding		–			–
Common stock, $0.01 par value; 120,000 shares authorized; 50,350 shares issued and 50,216 shares outstanding as of March 27, 2021, and 49,767 shares issued and outstanding as of December 26, 2020		504			498
Additional paid-in capital		1,659,524			1,627,564
Retained earnings		686,944			625,414
Treasury stock, at cost, 134 and 0 shares, as of March 27, 2021 and December 26, 2020, respectively		(36,028	)		–
Accumulated other comprehensive loss		(127,017	)		(138,874	)
Total equity attributable to common shareholders		2,183,927			2,114,602
Noncontrolling interest		4,257			3,567
Total equity		2,188,184			2,118,169
Total liabilities, redeemable noncontrolling interests and equity	$	5,808,963		$	5,490,831

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

SCHEDULE 3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)

	Three Months Ended
	March 27, 2021			March 28, 2020
Cash flows relating to operating activities
Net income	$	63,935		$	50,837
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		61,508			57,260
Stock-based compensation		13,189			10,960
Debt extinguishment and financing costs		26,907			–
Deferred income taxes		(9,125	)		(2,973	)
Loss on venture capital and strategic equity investments, net		16,719			12,035
Other, net		496			10,495
Changes in assets and liabilities:
Trade receivables, net		5,598			(32,136	)
Inventories		(11,404	)		4,076
Accounts payable		9,622			(10,003	)
Accrued compensation		(37,360	)		(45,245	)
Deferred revenue		5,006			6,065
Customer contract deposits		(5,446	)		4,454
Other assets and liabilities, net		30,584			2,765
Net cash provided by operating activities		170,229			68,590
Cash flows relating to investing activities
Acquisition of businesses and assets, net of cash acquired		(94,197	)		(382,250	)
Capital expenditures		(28,030	)		(25,721	)
Purchases of investments and contributions to venture capital investments		(16,550	)		(7,121	)
Proceeds from sale of investments		–			2,504
Other, net		781			(1,097	)
Net cash used in investing activities		(137,996	)		(413,685	)
Cash flows relating to financing activities
Proceeds from long-term debt and revolving credit facility		1,954,011			1,409,793
Proceeds from exercises of stock options		19,612			22,608
Payments on long-term debt, revolving credit facility, and finance lease obligations		(1,714,195	)		(925,109	)
Purchase of treasury stock		(36,028	)		(23,675	)
Payment of debt extinguishment and financing costs		(28,680	)		–
Other, net		–			(4,405	)
Net cash provided by financing activities		194,720			479,212
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		10,953			290
Net change in cash, cash equivalents, and restricted cash		237,906			134,407
Cash, cash equivalents, and restricted cash, beginning of period		233,119			240,046
Cash, cash equivalents, and restricted cash, end of period	$	471,025		$	374,453

Supplemental cash flow information:
Cash and cash equivalents	$	465,411		$	372,433
Restricted cash included in Other current assets		4,012			444
Restricted cash included in Other assets		1,602			1,576
Cash, cash equivalents, and restricted cash, end of period	$	471,025		$	374,453

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

SCHEDULE 4
RECONCILIATION OF GAAP TO NON-GAAP
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)⁽¹⁾
(in thousands, except percentages)

	Three Months Ended
	March 27, 2021			March 28, 2020
Research Models and Services
Revenue	$	176,910		$	145,996
Operating income		44,935			27,373
Operating income as a % of revenue		25.4	%		18.7	%
Add back:
Amortization related to acquisitions		5,339			5,652
Severance		7			(9	)
Acquisition related adjustments ⁽²⁾		456			285
Site consolidation costs, impairments and other items		–			229
Total non-GAAP adjustments to operating income	$	5,802		$	6,157
Operating income, excluding non-GAAP adjustments	$	50,737		$	33,530
Non-GAAP operating income as a % of revenue		28.7	%		23.0	%

Depreciation and amortization	$	9,679		$	8,752
Capital expenditures	$	2,983		$	5,412

Discovery and Safety Assessment
Revenue	$	501,178		$	438,683
Operating income		90,949			72,283
Operating income as a % of revenue		18.1	%		16.5	%
Add back:
Amortization related to acquisitions		22,648			23,007
Severance		412			83
Acquisition related adjustments ⁽²⁾		5,270			1,289
Site consolidation costs, impairments and other items		147			–
Total non-GAAP adjustments to operating income	$	28,477		$	24,379
Operating income, excluding non-GAAP adjustments	$	119,426		$	96,662
Non-GAAP operating income as a % of revenue		23.8	%		22.0	%

Depreciation and amortization	$	44,608		$	41,330
Capital expenditures	$	17,040		$	14,729

Manufacturing Support
Revenue	$	146,478		$	122,380
Operating income		49,437			41,112
Operating income as a % of revenue		33.8	%		33.6	%
Add back:
Amortization related to acquisitions		2,214			2,247
Severance		294			256
Acquisition related adjustments ⁽²⁾		42			2
Site consolidation costs, impairments and other items		40			–
Total non-GAAP adjustments to operating income	$	2,590		$	2,505
Operating income, excluding non-GAAP adjustments	$	52,027		$	43,617
Non-GAAP operating income as a % of revenue		35.5	%		35.6	%

Depreciation and amortization	$	6,569		$	6,366
Capital expenditures	$	7,110		$	5,161

Unallocated Corporate Overhead	$	(61,618	)	$	(46,487	)
Add back:
Severance		(151	)		–
Acquisition related adjustments ⁽²⁾		10,560			6,983
Other items ⁽³⁾		–			(287	)
Total non-GAAP adjustments to operating expense	$	10,409		$	6,696
Unallocated corporate overhead, excluding non-GAAP adjustments	$	(51,209	)	$	(39,791	)

Total
Revenue	$	824,566		$	707,059
Operating income		123,703			94,281
Operating income as a % of revenue		15.0	%		13.3	%
Add back:
Amortization related to acquisitions		30,201			30,906
Severance		562			330
Acquisition related adjustments ⁽²⁾		16,328			8,559
Site consolidation costs, impairments and other items ⁽³⁾		187			(58	)
Total non-GAAP adjustments to operating income	$	47,278		$	39,737
Operating income, excluding non-GAAP adjustments	$	170,981		$	134,018
Non-GAAP operating income as a % of revenue		20.7	%		19.0	%

Depreciation and amortization	$	61,508		$	57,260
Capital expenditures	$	28,030		$	25,721

(1)		Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance.
(2)		These adjustments are related to the evaluation and integration of acquisitions, which primarily include transaction, third-party integration, and certain compensation costs, and fair value adjustments associated with contingent consideration.
(3)		Other items relate to third-party costs, net of insurance reimbursements, incurred during the three months ended March 28, 2020 associated with the remediation of the unauthorized access into the Company’s information systems which was detected in March 2019.

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

SCHEDULE 5
RECONCILIATION OF GAAP EARNINGS TO NON-GAAP EARNINGS (UNAUDITED)⁽¹⁾
(in thousands, except per share data)

	Three Months Ended
	March 27, 2021			March 28, 2020

Net income attributable to common shareholders	$	61,530		$	50,769
Add back:
Non-GAAP adjustments to operating income (Refer to previous schedule)		47,278			39,737
Write-off of deferred financing costs and fees related to debt financing		25,979			–
Venture capital and strategic equity investment losses, net		16,719			12,035
Other ⁽²⁾		(2,370	)		–
Tax effect of non-GAAP adjustments:
Non-cash tax provision related to international financing structure ⁽³⁾		1,035			1,073
Tax effect of the remaining non-GAAP adjustments		(21,013	)		(11,804	)
Net income attributable to common shareholders, excluding non-GAAP adjustments	$	129,158		$	91,810

Weighted average shares outstanding – Basic		49,980			49,189
Effect of dilutive securities:
Stock options, restricted stock units and performance share units		1,095			777
Weighted average shares outstanding – Diluted		51,075			49,966

Earnings per share attributable to common shareholders:
Basic	$	1.23		$	1.03
Diluted	$	1.20		$	1.02

Basic, excluding non-GAAP adjustments	$	2.58		$	1.87
Diluted, excluding non-GAAP adjustments	$	2.53		$	1.84

(1)	Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance.
(2)	This adjustment relates to the gain on an immaterial divestiture which occurred in the three months ended March 27, 2021.
(3)	This adjustment relates to the recognition of deferred tax assets expected to be utilized as a result of changes to the Company’s international financing structure.

RECONCILIATION OF GAAP REVENUE GROWTH
TO NON-GAAP REVENUE GROWTH, ORGANIC (UNAUDITED) ⁽¹⁾


Three Months Ended March 27, 2021	Total CRL	RMS Segment	DSA Segment	MS Segment

Revenue growth, reported	16.6 %	21.2 %	14.2 %	19.7 %
Increase due to foreign exchange	(2.9)%	(4.2)%	(2.3)%	(4.1)%
Contribution from acquisitions ⁽²⁾	(0.7)%	(2.2)%	(0.3)%	– %
Non-GAAP revenue growth, organic ⁽³⁾	13.0 %	14.8 %	11.6 %	15.6 %

(1)		Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance.
(2)		The contribution from acquisitions reflects only completed acquisitions.
(3)		Organic revenue growth is defined as reported revenue growth adjusted for acquisitions and foreign exchange.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005173/en/

Investor Contacts:

Todd Spencer

Corporate Vice President,

Investor Relations

781.222.6455

[email protected]

Media Contact:

Amy Cianciaruso

Corporate Vice President,

Public Relations

781.222.6168

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Health Medical Devices General Health Research Science Pharmaceutical Biotechnology

MEDIA:

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May 4, 2021 7:03 am

Concert Pharmaceuticals Reports First Quarter 2021 Financial Results

Concert Pharmaceuticals Reports First Quarter 2021 Financial Results

CTP-543 Phase 3 Program for Alopecia Areata Advancing as Planned to Support NDA Filing in Early 2023

Conference Call Scheduled Today at 8:30 a.m. ET

LEXINGTON, Mass.–(BUSINESS WIRE)–Concert Pharmaceuticals, Inc. (NASDAQ: CNCE) today reported financial results for the first quarter of 2021.

“We are committed to advancing CTP-543, our breakthrough therapy candidate for moderate to severe alopecia areata. Patients currently lack effective, approved treatment options. We believe we have the potential to provide patients with a new, clinically meaningful and best-in-class treatment option,” stated Roger Tung, Ph.D., President and Chief Executive Officer of Concert Pharmaceuticals. “We remain on track with our THRIVE-AA Phase 3 clinical program with CTP-543, in support of our New Drug Application that we anticipate filing in early 2023.”

Recent Business Highlights and Upcoming Milestones

CTP-543: An Investigational Treatment for Moderate to Severe Alopecia Areata

THRIVE-AA1 Phase 3 Trial in Alopecia Areata On Track to Report Topline Data in 2022. The THRIVE-AA1 Phase 3 trial is a randomized, double-blind, placebo-controlled clinical trial of CTP-543 to evaluate hair regrowth after 24 weeks of dosing in approximately 700 adults with moderate to severe alopecia areata. The trial is evaluating 8 mg and 12 mg twice-daily doses of CTP-543 compared to placebo at sites in the U.S., Canada and Europe. The Company expects to report topline results from the THRIVE-AA1 trial in 2022. Additional information about the THRIVE-AA1 trial (NCT04518995) is available at clinicaltrials.gov.

Initiation of THRIVE-AA2 Phase 3 Trial in Alopecia Areata Expected in May 2021. The Company expects to initiate a second pivotal Phase 3 trial of CTP-543, THRIVE-AA2, later this month.The planned THRIVE-AA2 Phase 3 trial is a randomized, double-blind, placebo-controlled clinical trial of CTP-543 to evaluate hair regrowth after 24 weeks of dosing in approximately 440 adults with moderate to severe alopecia areata. The trial will evaluate 8 mg and 12 mg twice-daily doses of CTP-543 compared to placebo at sites in the U.S., Canada and Europe. Additional information about the THRIVE-AA2 trial (NCT04797650) is available at clinicaltrials.gov.

Update on CTP-543 Open Label, Long-Term Extension Study to be Presented at JAK Summit. Concert’s Chief Development Officer, James V. Cassella, Ph.D., will present an update on the ongoing open label, long-term extension study of CTP-543 at the 2nd JAK Inhibitors Drug Development Summit scheduled for July 1, 2021. The presentation will provide an update on the extension study, building on the data presented at the late-breaking news session at the European Academy of Dermatology and Venereology (EADV) in October 2020, during which the Company showed the maintenance of hair regrowth in patients on treatment for at least one year. Details about the upcoming meeting are available at https://jak-drugdevelopment.com/.

First Quarter 2021 Financial Results

Cash and Investment Position. Cash, cash equivalents and investments as of March 31, 2021 totaled $111.8 million as compared to $130.0 million as of December 31, 2020. Under its current operating plan, the Company expects its cash, cash equivalents and investments to fund the Company through 2021.

R&D Expenses. Research and development expenses were $18.5 million for the quarter ended March 31, 2021, compared to $14.0 million for the same period in 2020. The increase in research and development expenses relates primarily to the ongoing CTP-543 Phase 3 THRIVE-AA clinical program.

G&A Expenses. General and administrative expenses were $5.5 million for the quarter ended March 31, 2021, compared to $4.7 million for the same period in 2020, an increase of $0.8 million due to an increase in external professional service expenses and non-cash stock-based compensation expense.

Net Loss. Net loss applicable to common stockholders was $22.7 million, or $0.67 per share, for the quarter ended March 31, 2021, as compared to net loss applicable to common stockholders of $20.5 million, or $0.70 per share, for the quarter ended March 31, 2020.

Conference Call and Webcast

The Company will host a conference call and webcast today at 8:30 a.m. ET to provide an update on the Company and discuss its first quarter 2021 financial results. To access the conference call, please dial (855) 354-1855 (U.S. and Canada) or (484) 365-2865 (International) five minutes prior to the start time.

A live webcast may be accessed in the Investors section of the Company’s website at www.concertpharma.com. Please log on to the Concert website approximately 15 minutes prior to the scheduled webcast to ensure adequate time for any software downloads that may be required. A replay of the webcast will be available on Concert’s website for three months.

Concert Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

Three Months Ended

March 31,

2021

2020

Revenue:

License and research and development revenue

$

5

$

7

Operating expenses:

Research and development

18,500

13,986

General and administrative

5,485

4,672

Total operating expenses

23,985

18,658

Loss from operations

(23,980

)

(18,651

)

Investment income

25

563

Unrealized gain (loss) on marketable equity securities

1,286

(2,389

)

Net loss

$

(22,669

)

$

(20,477

)

Net loss per share applicable to common stockholders – basic and diluted

$

(0.67

)

$

(0.70

)

Weighted-average number of common shares used in net loss per share applicable to common stockholders – basic and diluted

33,894

29,110

Concert Pharmaceuticals, Inc.

Summary Balance Sheet Data

(in thousands)

(unaudited)

March 31, 2021

December 31, 2020

Cash and cash equivalents

$

89,772

$

77,202

Investments, available for sale

22,009

52,766

Working capital

115,552

132,546

Total assets

139,991

159,263

Deferred revenue

2,750

2,750

Total stockholders’ equity

114,039

131,162

About Concert

Concert Pharmaceuticals is a clinical stage biopharmaceutical company that is developing small molecule drugs that it discovered through the application of its DCE Platform^® (deuterated chemical entity platform). Selective incorporation of deuterium into known molecules has the potential, on a case-by-case basis, to provide better pharmacokinetic or metabolic properties, thereby enhancing their clinical safety, tolerability or efficacy. Concert’s lead product candidate is in late-stage development for the treatment of alopecia areata, a serious autoimmune dermatological condition. Concert is also assessing a number of earlier-stage pipeline candidates. For more information please visit www.concertpharma.com or follow us on Twitter at @ConcertPharma or on LinkedIn.

Cautionary Note on Forward Looking Statements

Any statements in this press release about our future expectations, plans and prospects, including, among others, statements about our expectations regarding the development of CTP-543, the timing of availability of clinical trial data, the timing of initiation and design of future clinical trials, the timing of regulatory filings and the sufficiency of our cash, cash equivalents and investments to fund our operations, and any other statements containing the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties inherent in the initiation, timing and design of future clinical trials, the availability and timing of data from ongoing and future clinical trials and the results of such trials, whether preliminary results from a clinical trial will be predictive of the final results of that trial or whether results of early clinical trials will be indicative of the results of later clinical trials, expectations for regulatory approvals, availability of funding sufficient for our foreseeable and unforeseeable operating expenses and capital expenditure requirements, expectations with respect to the protection of our intellectual property afforded by our patents and other factors discussed in the “Risk Factors” section of our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission and in other filings that we make with the Securities and Exchange Commission. In addition, any forward-looking statements included in this press release represent our views only as of the date of this release and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligation to update any forward-looking statements included in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005106/en/

For additional information contact:

Justine E. Koenigsberg (Investors)

Concert Pharmaceuticals, Inc.

(781) 674-5284

[email protected]

Kathryn Morris (media)

The Yates Network

(914) 204-6412

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health

MEDIA:

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Posted on May 4, 2021 7:03 am
J2 Global to Participate in Four Investor Conferences in May

J2 Global to Participate in Four Investor Conferences in May

LOS ANGELES–(BUSINESS WIRE)–
J2 Global, Inc. (NASDAQ:JCOM), a leading Internet information and services company, today announced its participation in four investor conferences in May.

Details of the conferences are as follows:

Goldman Sachs 6th Annual Credit and Leveraged Finance Conference

Location: Virtual

Date and time: May 17, 2021

Webcast: No formal presentation

Needham Annual Tech & Media Conference

Location: Virtual

Date and time: May 18, 2021

Webcast: No formal presentation

JP Morgan TMC

Location: Virtual

Date and time: May 24, 2021, 2:00pm (ET)

Webcast: https://jpmorgan.metameetings.net/events/tmc21/sessions/37943-j2-global/webcast?gpu_only=true&kiosk=true

Barclays HY

Location: Virtual

Date and time: May 26, 2021

Webcast: No formal presentation

About J2 Global®

J2 Global, Inc. (NASDAQ: JCOM) is a leading internet information and services company consisting of a portfolio of brands including IGN, Mashable, Humble Bundle, Speedtest, PCMag, RetailMeNot, Offers.com, Spiceworks, Everyday Health, BabyCenter and What To Expect in its Digital Media business and eFax, eVoice, iContact, Campaigner, Vipre, and IPVanish in its Cloud Services business. J2 reaches more than 240 million people per month across its brands. As of December 31, 2020, J2 had achieved 25 consecutive fiscal years of revenue growth. For more information about J2, please visit www.j2global.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005147/en/

Scott Turicchi

(800) 577-1790

J2 Global, Inc.

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Technology Internet Data Management

MEDIA:

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Posted on May 4, 2021 7:03 am
Oncorus Reports First Quarter 2021 Financial Results and Provides Business Highlights

— Enrollment continues inPhase 1 clinical trial of lead oncolytic Herpes Simplex Virus (oHSV) viral immunotherapy candidate ONCR-177; initial interim data expected in 2H’21 —

— Company plans to nominate first two intravenously (IV) administered synthetic viral RNA (vRNA) immunotherapy candidates in 1H’21 —

— Buildout of GMP clinical manufacturing capabilities and facility remain on track; process development activities anticipated to begin at facility in 2H’21 —

— Received
$57.0 million
in aggregate gross proceeds in February 2021 from public offering —

CAMBRIDGE, Mass., May 04, 2021 (GLOBE NEWSWIRE) — Oncorus, Inc. (Nasdaq: ONCR), a viral immunotherapies company focused on driving innovation to transform outcomes for cancer patients, today reported first quarter 2021 financial results and highlighted recent achievements and developments.

“We began 2021 with strong momentum, announcing the buildout of our GMP manufacturing facility which is now well underway, and we continue to advance our ambitious goals on behalf of cancer patients,” said Theodore (Ted) Ashburn, M.D., Ph.D., President and Chief Executive Officer of Oncorus.

Dr. Ashburn further commented, “We continue to enroll patients in a Phase 1 clinical trial of ONCR-177, our lead oncolytic Herpes Simplex Virus (oHSV) clinical candidate, and expect initial interim data later this year. We also anticipate nominating our first two synthetic viral RNA (vRNA) immunotherapy candidates in the first half of 2021. These candidates are comprised of vRNA coding for oncolytic viruses encapsulated within lipid nanoparticles, or LNPs – proprietary technologies developed by the Oncorus team. We have designed this novel approach to enable the systemic, repeat intravenous (IV) administration of viral immunotherapies, the so-called ‘holy grail’ of this modality, to date unattainable. We’re excited to introduce this breakthrough approach and discuss these candidates in more detail at an upcoming virtual investor event.”

First Quarter 2021 and Recent Highlights

Enrolling Phase 1 clinical trial of ONCR-177. Oncorus is currently enrolling a Phase 1 clinical trial of its lead product candidate, ONCR-177, an intratumorally (iTu) administered oHSV viral immunotherapy being developed for multiple solid tumor indications. The Phase 1 open-label, multi-center, dose escalation and expansion clinical trial is designed to evaluate the safety and tolerability of ONCR-177. The trial will determine the recommended Phase 2 dose, as well as investigate ONCR-177’s preliminary anti-tumor activity, alone and in combination with Merck’s anti-PD-1 therapy, KEYTRUDA® (pembrolizumab), in patients with advanced and/or refractory cutaneous, subcutaneous or metastatic nodal solid tumors. Oncorus has an ongoing clinical trial collaboration with Merck involving KEYTRUDA and anticipates reporting interim data from the Phase 1 trial in the second half of 2021 through the second half of 2022.

Advancing lead Synthetic vRNA Immunotherapy Platform programs toward clinical candidate nomination. Oncorus continues to advance its lead synthetic, IV administered vRNA immunotherapy programs based on the Coxsackievirus A21 (CVA21) and the Seneca Valley Virus (SVV). The company expects to nominate clinical candidates for both programs in the first half of 2021. IV administration of viral immunotherapies is an attractive approach for improving the standard of care for many cancer patients because it allows for all tumors, including micro-metastases, to be directly treated. In addition, it allows for the potential treatment of certain tumors, such as those of the lung, that are less amenable to repeat iTu injection of anti-cancer therapies due to safety and feasibility considerations. Oncorus’ Synthetic vRNA Immunotherapy Platform includes a novel LNP delivery strategy designed to overcome the challenges caused by neutralizing antibodies, which have limited the efficacy of previous industry efforts to treat tumors utilizing IV administration of OVs.

Advancing second oHSV viral immunotherapy candidate, ONCR-GBM. Leveraging its oHSV Platform, Oncorus is pursuing ONCR-GBM to specifically target brain cancer, including glioblastoma multiforme (GBM). The company is utilizing its knowledge of microRNA expression to engineer a microRNA attenuation strategy to protect healthy brain tissue and select a combination of payloads intended to address the specific drivers of immune suppression in brain cancer. Oncorus plans to nominate its ONCR-GBM clinical candidate in the second half of 2021.

Announced buildout of Good Manufacturing Practice (GMP) viral immunotherapy clinical manufacturing facility. In January 2021, Oncorus announced the signing of a 15-year lease to build a state-of-the-art, 88,000 square foot GMP viral immunotherapy clinical manufacturing facility in Andover, Mass. The facility is intended to provide a comprehensive solution for Oncorus’ Chemistry, Manufacturing and Controls (CMC) development needs, enabling the manufacture, quality, control and supply of clinical-grade viral immunotherapies for investigational new drug (IND)-enabling and clinical studies. Oncorus anticipates the first phase of the facility’s buildout will be completed in late 2021, including process development and quality control, with GMP multi-product manufacturing capabilities and full operation commencing in early 2023.

Completed follow-on public offering
. In February 2021, Oncorus completed an underwritten public offering of common stock, at a price of $19.00 per share, raising $57.0 million in aggregate gross proceeds.

First Quarter Financial Results

Cash and cash equivalents were $172.6 million as of March 31, 2021 compared to $130.3 million as of December 31, 2020.

Research and development expenses for the quarter ended March 31, 2021 were $8.4 million compared to $5.9 million for the corresponding quarter in 2020. The increase in research and development expenses was mainly attributable to increased rent expense related to the Company’s new manufacturing facility, increased personnel-related expenses, including stock-based compensation, driven by increased headcount and increased clinical trial costs for the Company’s ongoing Phase 1 clinical trial of ONCR-177.

General and administrative expenses for the quarter ended March 31, 2021 were $4.2 million compared to $2.1 million for the corresponding quarter in 2020. The increase in general and administrative expenses was primarily attributable to increases in personnel-related expenses, including stock-based compensation, driven by increased compensation and increased headcount and increased costs, such as insurance expense and professional and consultant expenses, related to operating as a public company.

Net loss attributable to common stockholders for the quarter ended March 31, 2021 was $12.7 million, or $0.53 per share, compared to a net loss attributable to common stockholders of $10.6 million, or $10.59 per share for the same quarter in 2020. The share and loss per share amounts in the first quarter of 2021 reflect the impact of the company’s IPO, which closed in October 2020, including the conversion of outstanding preferred stock into approximately 15.0 million shares of common stock.

Financial Guidance

Based upon its current operating plans and cash and cash equivalents, Oncorus expects to have sufficient capital to fund its operating expenses and capital expenditure requirements into late 2023.

About Oncorus

At Oncorus, we are focused on driving innovation to deliver next-generation viral immunotherapies to transform outcomes for cancer patients. We are advancing a portfolio of intratumorally and intravenously administered viral immunotherapies for multiple indications with significant unmet needs based on our oncolytic Herpes Simplex Virus (oHSV) Platform and Synthetic viral RNA (vRNA) Immunotherapy Platform. Designed to deliver next-generation viral immunotherapy impact, our oHSV platform improves upon key characteristics of this therapeutic class to enhance potency without sacrificing safety, including greater capacity to encode transgenes to drive systemic immunostimulatory activity, retention of full replication competency to enable high tumor-killing potency, and orthogonal safety strategies to restrict viral activity to tumor cells. Our lead program, ONCR-177, is designed to be directly administered into a tumor, resulting in high local concentrations of the therapeutic agent, as well as low systemic exposure to the therapy, which we believe could potentially limit systemic toxicities. Please visit www.oncorus.com to learn more.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, implied and express statements regarding the clinical development of ONCR-177, including expectations regarding timing for reporting data from the ongoing Phase 1 clinical trial, as well as the product candidate’s therapeutic potential and clinical benefits; Oncorus’ expectations regarding upcoming milestones for its other potential product candidates, including the timing for nomination of candidates from its two Synthetic vRNA Immunotherapy Platform development programs and its second oHSV Platform program, ONCR-GBM; expectations regarding the buildout timeline of its viral immunotherapy clinical manufacturing facility and its belief that its current cash resources will be sufficient to fund its operations into late 2023. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “expect,” “estimate,” “seek,” “predict,” “future,” “project,” “potential,” “continue,” “target” and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, risks associated with: the impact of COVID-19 on Oncorus’ operations and the timing and anticipated results of its ongoing and planned clinical trials; the risk that the results of a clinical trial may not be predictive of future results in connection with future clinical trials; Oncorus’ ability to successfully demonstrate the safety and efficacy of ONCR-177 and obtain regulatory approval; and Oncorus’ ability to obtain, maintain and protect its intellectual property. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Oncorus’ Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on March 10, 2021, as well as discussions of potential risks, uncertainties, and other important factors in the other filings that Oncorus makes with the Securities and Exchange Commission from time to time. These documents are available under the “SEC filings” page of the Investors section of Oncorus’ website at http://investors.oncorus.com.

Any forward-looking statements represent Oncorus’ views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Oncorus explicitly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Investor Contact:

Alan Lada
Solebury Trout
617-221-8006
[email protected] Media Contact:

Liz Melone
[email protected]

Oncorus, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share data)

(Unaudited)

Three Months Ended

March 31,

2021 2020

Operating expenses:

Research and development $ 8,447 $ 5,892

General and administrative 4,222 2,052

Total operating expenses 12,669 7,944

Loss from operations (12,669 ) (7,944 )

Other income (expense):

Other expense – (11 )

Interest income 6 128

Total other income (expense), net 6 117

Net loss and comprehensive loss $ (12,663 ) $ (7,827 )

Accretion of discount and dividends on redeemable convertible preferred stock – (2,725 )

Net loss attributable to common stockholders $ (12,663 ) $ (10,552 )

Net loss per share – basic and diluted $ (0.53 ) $ (10.59 )

Weighted-average number of common shares – basic and diluted 24,009 996

Oncorus, Inc.

Selected Condensed Consolidated Balance Sheet Data

(in thousands)

(Unaudited)

March 31,

December 31,

2021 2020

Cash and cash equivalents $ 172,622 $ 130,305

Working capital (1) 168,763 127,407

Right-of-use asset 40,847 41,372

Total assets 225,107 182,263

Long term lease liability 42,083 41,615

Total liabilities 48,852 47,599

Total stockholders’ equity $ 176,255 $ 134,664

(1) Working capital is defined as current assets less current liabilities

Posted on May 4, 2021 7:03 am
908 Devices and Bio-Techne Announce Joint Collaboration

908 Devices and Bio-Techne Announce Joint Collaboration

BOSTON & MINNEAPOLIS–(BUSINESS WIRE)–908 Devices (NASDAQ: MASS) and Bio-Techne Corporation (NASDAQ: TECH) today announced a joint collaboration to develop an extended workflow solution for protein characterization. Bio-Techne, a global life sciences company providing innovative tools and bioactive reagents for the research and clinical diagnostic communities, and owner of the leading ProteinSimple branded protein analysis portfolio of products, will pair its Maurice icIEF separation instrument with 908 Devices’ ZipChip device to deliver a seamless workflow for deeper protein characterization. Maurice and the iCE technology are the gold standard in protein characterization, providing absorbance and native fluorescence icIEF detection as well as CE-SDS, saving significant development time and reducing the time to commercialization.

908 Devices, a pioneer of purpose-built handheld and desktop mass spec devices for chemical and biomolecular analysis, enables high-resolution separation and mass spec sample introduction with its plug-and-play open access platform, ZipChip, which directly integrates electrospray ionization with mass spectrometry. The ZipChip integrates with Thermo Fisher, Sciex, and Bruker mass spectrometers and leverages Capillary Electrophoresis (CE) and electrospray ionization technology in order to minimize sample prep burden, perform high-resolution separations and directly introduce samples into a mass spec instrument.

Maurice paired with 908 Devices’ ZipChip allows in-depth characterization of biotherapeutics on an intact and near-native level. This workflow solution will increase scientists’ drug development efficiency through additional rapid, high-resolution separation techniques coupled with mass spectrometry identification.

“By partnering with Bio-Techne and leveraging their market leading Maurice icIEF platform with our ZipChip device, we are together extending the workflow for customers conducting detailed protein characterization of charge variants,” said Dr. Kevin J. Knopp, CEO and co-founder of 908 Devices. “This collaboration helps advance our reach into the biopharmaceutical market.”

“We are very excited to collaborate with 908 Devices to provide an integrated workflow that enables fraction analysis for our Maurice users. Analyzing protein charge isoforms is a critical requirement and this enhanced capability using Maurice with the ZipChip and MS will provide a deeper understanding of a molecule through the various stages of development,” stated Dave Eansor, President of Bio-Techne’s Protein Sciences Segment. “Our iCE technology has been the gold standard in protein charge characterization for more than 20 years and this collaboration will provide additional value to the iCE community.”

About 908 Devices

908 Devices (NASDAQ:MASS) is democratizing laboratory mass spectrometry with its simple handheld and desktop devices, addressing critical-to-life applications. The Company’s devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to directly address some of the most critical problems in life sciences research, bioprocessing, pharma / biopharma, forensics and adjacent markets. The Company is headquartered in the heart of Boston, where it designs and manufactures innovative products that bring together the power of mass spectrometry, microfluidic separations, software automation, and machine learning.

About Bio-Techne

Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences company providing innovative tools and bioactive reagents for the research and clinical diagnostic communities. Bio-Techne products assist scientific investigations into biological processes and the nature and progress of specific diseases. They aid in drug discovery efforts and provide the means for accurate clinical tests and diagnoses. With thousands of products in its portfolio, Bio-Techne generated approximately $739 million in net sales in fiscal 2020 and has over 2,500 employees worldwide. For more information on Bio-Techne and its brands, please visit www.bio-techne.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005140/en/

For 908 Devices

Marketing Contact:

Emily Fang

PAN Communications for 908 Devices

[email protected]

Investor Relations Contact:

Carrie Mendivil

[email protected]

For Bio-Techne Corporation

Investor Relations Contact:

David Clair, Senior Director, Investor Relations and Corporate Development

[email protected]

612-656-4416

KEYWORDS: United States North America Minnesota Massachusetts

INDUSTRY KEYWORDS: Science Biotechnology Research Pharmaceutical Health Medical Devices Technology Other Technology

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Posted on May 4, 2021 7:03 am
Castle Biosciences Collaborates With the Colorado Melanoma Foundation and Epiphany Dermatology to Provide Free Skin Cancer Screenings Across the Southwest U.S.

Castle Biosciences Collaborates With the Colorado Melanoma Foundation and Epiphany Dermatology to Provide Free Skin Cancer Screenings Across the Southwest U.S.

FRIENDSWOOD, Texas–(BUSINESS WIRE)–Castle Biosciences, Inc. (Nasdaq: CSTL), a skin cancer diagnostics company providing personalized genomic information to improve cancer treatment decisions, is a national sponsor of the Colorado Melanoma Foundation, a non-profit organization. Castle will collaborate with the Colorado Melanoma Foundation and Epiphany Dermatology to provide free skin cancer screenings and public education through the Sun Bus initiative. The Sun Bus is a mobile skin cancer screening station and sun safety education classroom.

The Colorado Melanoma Foundation and The Sun Bus, beginning in May, will travel to locations in Texas, Colorado, Arizona and New Mexico, providing free skin cancer checks, as well as educating visitors on ways to prevent skin cancer deaths through free sun safety education sessions.

“The purpose of the 2021 Sun Bus Free Skin Cancer Screening Tour is to help re-engage public attention on skin cancer screening as we come out of the pandemic,” stated Dr. Neil Box, director of the Sun Bus and president of the Colorado Melanoma Foundation. “Most of us have been focused on maintaining social distancing and helping limit the spread of COVID-19, but it is important not to neglect our regular health screenings.”

“May is Skin Cancer Awareness Month, and it is an important time for us to reiterate our commitment to improving the lives of patients with skin cancer,” said Derek Maetzold, president and chief executive officer of Castle. “Our collaboration with the Colorado Melanoma Foundation and the Sun Bus initiative is intended to help educate the public and encourage early detection and screening. With our suite of dermatologic diagnostic tests, we’re passionate about providing patients with the most accurate and personalized care. And that begins with screenings, awareness and an understanding of the risks of skin cancer.”

To see when The Sun Bus is in your area, visit https://www.thesunbus.org/calendar-of-events.

About the Sun Bus

The Sun Bus is a mobile clinic that offers a sun safety education experience that hyper-targets select audiences at varying times throughout the year. The program was launched in 2019, attending major community events throughout Colorado with over 700,000 people. Dr. Karen Nern, Medical Director of the Bus, reported that 26,000 people visited the bus to interact with the educational displays, take free sunscreen or check out the hats. Seventeen dermatology clinics and 27 providers worked on the Bus to give away 854 free skin screens. 45 suspected basal cell carcinomas, 22 squamous cell carcinomas and 7 melanomas were referred to follow up dermatology during the 2019 Sun Bus Tour.

About Castle Biosciences

Castle Biosciences (Nasdaq: CSTL) is a commercial-stage dermatologic cancer company focused on providing physicians and their patients with personalized, clinically actionable genomic information to make more accurate treatment decisions. The Company currently offers tests for patients with cutaneous melanoma (DecisionDx^®-Melanoma, DecisionDx^®-CMSeq), cutaneous squamous cell carcinoma (DecisionDx^®-SCC), suspicious pigmented lesions (DecisionDx^®DiffDx™-Melanoma) and uveal melanoma (DecisionDx^®-UM, DecisionDx^®-PRAME and DecisionDx^®-UMSeq). For more information about Castle’s gene expression profile tests, visit www.CastleTestInfo.com. Castle also has active research and development programs for tests in other dermatologic diseases with high clinical need. Castle Biosciences is based in Friendswood, Texas (Houston), and has laboratory operations in Phoenix, Arizona. For more information, visit www.CastleBiosciences.com.

DecisionDx-Melanoma, DecisionDx-CMSeq, DecisionDx-SCC, DecisionDx DiffDx-Melanoma, DecisionDx-UM, DecisionDx-PRAME and DecisionDx-UMSeq are trademarks of Castle Biosciences, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005031/en/

Investor and Media Contact:

Camilla Zuckero

832-835-5158

[email protected]

KEYWORDS: Colorado New Mexico Arizona Texas United States North America

INDUSTRY KEYWORDS: Biotechnology Genetics Health Oncology

MEDIA:

Posted on May 4, 2021 7:03 am
LGI Homes Reports Record First Quarter 2021 Results

THE WOODLANDS, Texas, May 04, 2021 (GLOBE NEWSWIRE) — LGI Homes, Inc. (NASDAQ: LGIH) today announced financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights and Comparisons to First Quarter 2020

Net Income increased 132.6% to $99.7 million, or $3.99 Basic EPS and $3.95 Diluted EPS

Net Income Before Income Taxes increased 124.6% to $123.3 million

Home Sales Revenues increased 55.2% to $706.0 million

Home Closings increased 39.6% to 2,561 homes

Average Sales Price Per Home Closed increased 11.2% to $275,655

Gross Margin as a Percentage of Homes Sales Revenues increased 350 basis points to 26.9%

Adjusted Gross Margin* as a Percentage of Home Sales Revenues increased 300 basis points to 28.5%

Owned lots increased to 38,502 and Controlled lots increased to 28,784 for total Owned and Controlled Lots of 67,286 lots at March 31, 2021

Ending Backlog of 5,632 homes at March 31, 2021, an increase of 199.7%

Ending Backlog Value of $1.6 billion at March 31, 2021, an increase of 257.6%

*Non-GAAP

Please see “

Non-GAAP Measures

” for a reconciliation of Adjusted Gross Margin (a non-GAAP measure) to Gross Margin, the most directly comparable GAAP measure.

Balance Sheet Highlights

216,221 shares of common stock repurchased during the first quarter of 2021 at an average price per share of $119.45 for an aggregate amount of $25.8 million

Total liquidity of $565.7 million at March 31, 2021 including cash and cash equivalents of $48.2 million and $517.5 million of availability under the Company’s revolving credit facility

Net debt to capitalization of 23.1% at March 31, 2021, compared to 30.6% at December 31, 2020

Management Comments

“We delivered another record-breaking quarter and are off to a great start in 2021,” stated Eric Lipar, Chairman and Chief Executive Officer of LGI Homes. “During the first four months of the year we have sold a record-breaking number of homes and believe the fundamentals driving the ongoing surge in demand show no signs of abating anytime soon.

“During the first quarter we increased our closings 39.6% to 2,561 homes, grew revenue 55.2% to $706 million and set a first quarter record with an average of eight closings per community, per month. Net orders were the highest in our history and we finished with a record 5,632 homes in backlog valued at $1.6 billion, representing year-over-year increases of 199.7% and 257.6%, respectively. Measures taken to mitigate cost pressures, including price increases across all our markets, drove additional expansion of our industry-leading margins, profitability and returns. Year-over-year, our quarterly gross margin improved by 350 basis points and our pre-tax profit margin by 540 basis points, all culminating in a 136.5% increase in our diluted earnings per share. As a result of this strong performance, we delivered best-in-class return on equity of 36.6% and finished the quarter with a net debt to capitalization ratio of just 23.1%.

“Based on our performance to date, visibility into our backlog and our current view of finished lots available to close in 2021, we are updating our full year guidance. We now anticipate closing between 9,700 and 10,300 homes, an increase of 500 homes at both ends of our prior guidance range, at an average sales price between $275,000 and $285,000. We maintain our prior expectation that active community count at year end will be between 112 to 120. As a result of our strong performance in the first quarter and our success to date passing through cost pressures, we are increasing our full year gross margin guidance range by 70 basis points to 24.7% to 26.7% and our adjusted gross margin by 50 basis points to 26.5% and 28.5%.”

Mr. Lipar concluded, “We are currently operating in the strongest demand environment we have ever experienced. We are confident that our unique business model, strong balance sheet and talented team of dedicated employees position us to maintain our exceptional first quarter momentum throughout the rest of the year.”

2021 First Quarter Results

Home closings during the first quarter of 2021 totaled 2,561, an increase of 39.6%, from 1,835 home closings during the first quarter of 2020.

At the end of the first quarter of 2021, active selling communities decreased to 110, down from 113 at the end of the first quarter of 2020.

Home sales revenues for the first quarter of 2021 were $706.0 million, an increase of $251.2 million, or 55.2%, over the first quarter of 2020. The increase in home sales revenues is primarily due to a 39.6% increase in homes closed and an increase in the average sales price per home closed during the first quarter of 2021.

The average sales price per home closed for the first quarter of 2021 was $275,655, an increase of $27,847, or 11.2%, over the first quarter 2020. This increase in the average sales price per home closed was primarily due to a favorable pricing environment, increased closings at higher price points in certain markets and changes in product mix.

Gross margin as a percentage of home sales revenues for the first quarter of 2021 was 26.9% as compared to 23.4% for the first quarter of 2020. Adjusted gross margin (non-GAAP) as a percentage of home sales revenues for the first quarter of 2021 was 28.5% as compared to 25.5% for the first quarter of 2020. The increase in gross margin and adjusted gross margin as a percentage of home sales revenues is primarily due to an increase in homes closed with a higher average sales price per home closed, lower capitalized interest and lower overhead expense, partially offset by higher lot costs in the first quarter of 2021 as compared to the first quarter of 2020. Please see “Non-GAAP Measures” for a reconciliation of adjusted gross margin (non-GAAP) to gross margin, the most comparable GAAP measure.

Net income for the first quarter of 2021 was $99.7 million, or $3.99 per basic share and $3.95 per diluted share, an increase of $56.8 million, or 132.6%, from $42.8 million, or $1.69 per basic share and $1.67 per diluted share, for the first quarter of 2020. The increase in net income is primarily attributed to higher gross margins, operating leverage realized from the increase in home sales revenues, higher average sales price per home closed and the federal energy efficient homes tax credits recognized during the first quarter of 2021 as compared to the first quarter of 2020.

Full Year 2021 Outlook

Subject to the caveats in the Forward-Looking Statements section of this press release, the Company is providing the following updates to its guidance for the full year 2021. The Company believes:

Home closings between 9,700 and 10,300

Active selling communities at the end of 2021 between 112 and 120

Gross margin as a percentage of home sales revenues between 24.7% to 26.7%

Adjusted gross margin (non-GAAP) as a percentage of home sales revenues between 26.5% and 28.5% with capitalized interest accounting for substantially all the difference between gross margin and adjusted gross margin

Average sales price per home closed between $275,000 and $285,000

SG&A as a percentage of home sales revenues between 9.5% and 10.0%

Effective tax rate for the remainder of 2021 between 21.0% and 22.0%

This outlook assumes that general economic conditions, including interest rates and mortgage availability, in the remainder of 2021 are similar to those experienced in the first quarter of 2021 and that average sales price per home closed, construction costs, availability of construction materials, availability of land, land development costs and overall absorption rates in the remainder of 2021 are consistent with the Company’s recent experience. In addition, this outlook assumes that governmental regulations relating to land development, home construction and COVID-19 are similar to those currently in place. Any further COVID-19 governmental restrictions on land development or home construction could negatively impact the Company’s ability to achieve this guidance.

Earnings Conference Call

The Company will host a conference call via live webcast for investors and other interested parties beginning at 12:30 p.m. Eastern Time on Tuesday, May 4, 2021 (the “Earnings Call”). The Earnings Call will be hosted by Eric Lipar, Chief Executive Officer and Chairman of the Board, and Charles Merdian, Chief Financial Officer and Treasurer.

Participants may access the live webcast by visiting the Investor Relations section of the Company’s website at www.lgihomes.com. The Earnings Call can also be accessed by dialing (855) 433-0929, or (970) 315-0256 for international participants.

An archive of the Earnings Call webcast will be available on the Company’s website for approximately 12 months. A replay of the Earnings Call will also be available later that day by calling (855) 859-2056, or (404) 537-3406 and using conference ID “7574991”. This replay will be available until May 11, 2021.

About LGI Homes, Inc.

Headquartered in The Woodlands, Texas, LGI Homes, Inc. engages in the design, construction and sale of homes in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia and Pennsylvania. Since 2018, LGI Homes has been ranked as the 10^th largest residential builder in the United States based on units closed. The Company has a notable legacy of more than 18 years of homebuilding operations, over which time it has closed more than 45,000 homes. For more information about the Company and its new home developments, please visit the Company’s website at www.lgihomes.com.

Forward-Looking Statements

Any statements made in this press release or on the Earnings Call that are not statements of historical fact, including statements about the Company’s beliefs and expectations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. Forward-looking statements include information concerning projected 2021 home closings, year-end active selling communities, gross margin as a percentage of home sales revenues, adjusted gross margin as a percentage of homes sales revenues, average sales price per home closed, SG&A as a percentage of home sales revenues, effective tax rate, and the impact of the COVID-19 pandemic and its effect on the Company, its business, customers, subcontractors, and its markets, as well as market conditions and possible or assumed future results of operations, including descriptions of the Company’s business plan and strategies. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will” or, in each case, their negative, or other variations or comparable terminology. For more information concerning factors that could cause actual results to differ materially from those contained in the forward-looking statements please refer to the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, including the “Cautionary Statement about Forward-Looking Statements” subsection within the “Risk Factors” section, the “Risk Factors” and “Cautionary Statement about Forward-Looking Statements” sections in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, and subsequent filings by the Company with the Securities and Exchange Commission. The Company bases these forward-looking statements or projections on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release or listen to the Earnings Call, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although the Company believes that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect the Company’s actual results to differ materially from those expressed in the forward-looking statements and projections. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. If the Company does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.

LGI HOMES, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share data)

March 31, December 31,

2021 2020

ASSETS

Cash and cash equivalents $ 48,157 $ 35,942

Accounts receivable 59,229 115,939

Real estate inventory 1,609,693 1,569,489

Pre-acquisition costs and deposits 39,488 37,213

Property and equipment, net 6,160 3,618

Other assets 47,391 44,882

Deferred tax assets, net 3,350 6,986

Goodwill 12,018 12,018

Total assets $ 1,825,486 $ 1,826,087

LIABILITIES AND EQUITY

Accounts payable $ 41,552 $ 13,676

Accrued expenses and other liabilities 151,348 135,008

Notes payable 413,948 538,398

Total liabilities 606,848 687,082

COMMITMENTS AND CONTINGENCIES

EQUITY

Common stock, par value $0.01, 250,000,000 shares authorized, 26,908,643 shares issued and 24,934,429 shares outstanding as of March 31, 2021 and 26,741,554 shares issued and 24,983,561 shares outstanding as of December 31, 2020 269 267

Additional paid-in capital 276,398 270,598

Retained earnings 1,033,935 934,277

Treasury stock, at cost, 1,974,214 shares and 1,757,993 shares, respectively (91,964 ) (66,137 )

Total equity 1,218,638 1,139,005

Total liabilities and equity $ 1,825,486 $ 1,826,087

LGI HOMES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended March 31,

2021 2020

Home sales revenues $ 705,953 $ 454,727

Cost of sales 516,004 348,163

Selling expenses 42,783 32,763

General and administrative 24,723 19,923

Operating income 122,443 53,878

Other income, net (833 ) (1,011 )

Net income before income taxes 123,276 54,889

Income tax provision 23,618 12,050

Net income $ 99,658 $ 42,839

Earnings per share:

Basic $ 3.99 $ 1.69

Diluted $ 3.95 $ 1.67

Weighted average shares outstanding:

Basic 24,950,867 25,323,119

Diluted 25,220,872 25,592,835

Non-GAAP Measures

In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has provided information in this press release relating to adjusted gross margin.

Adjusted Gross Margin

Adjusted gross margin is a non-GAAP financial measure used by management as a supplemental measure in evaluating operating performance. The Company defines adjusted gross margin as gross margin less capitalized interest and adjustments resulting from the application of purchase accounting included in the cost of sales. Management believes this information is useful because it isolates the impact that capitalized interest and purchase accounting adjustments have on gross margin. However, because adjusted gross margin information excludes capitalized interest and purchase accounting adjustments, which have real economic effects and could impact results, the utility of adjusted gross margin information as a measure of operating performance may be limited. In addition, other companies may not calculate adjusted gross margin information in the same manner that the Company does. Accordingly, adjusted gross margin information should be considered only as a supplement to gross margin information as a measure of the Company’s performance.

The following table reconciles adjusted gross margin to gross margin, which is the GAAP financial measure that management believes to be most directly comparable (dollars in thousands, unaudited):

Three Months Ended March 31,

2021 2020

Home sales revenues $ 705,953 $ 454,727

Cost of sales 516,004 348,163

Gross margin 189,949 106,564

Capitalized interest charged to cost of sales 10,672 8,930

Purchase accounting adjustments⁽¹⁾ 812 623

Adjusted gross margin $ 201,433 $ 116,117

Gross margin % ⁽²⁾ 26.9 % 23.4 %

Adjusted gross margin % ⁽²⁾ 28.5 % 25.5 %

(1) Adjustments result from the application of purchase accounting for acquisitions and represent the amount of the fair value step-up adjustments included in cost of sales for real estate inventory sold after the acquisition dates.

(2) Calculated as a percentage of home sales revenues.

Home Sales Revenues, Home Closings, Average Sales Price Per Home Closed (ASP), Average Community Count and Average Monthly Absorption Rates by Reportable Segment

(Revenues in thousands, unaudited)

Three Months Ended March 31, 2021

Revenues Home Closings ASP Average Community Count Average

Monthly

Absorption Rate

Central $ 288,750 1,127 $ 256,211 37.3 10.1

Southeast 136,551 548 249,181 27.7 6.6

Northwest 118,191 296 399,294 10.6 9.3

West 81,148 249 325,896 10.7 7.8

Florida 81,313 341 238,455 20.0 5.7

Total $ 705,953 2,561 $ 275,655 106.3 8.0

Three Months Ended March 31, 2020

Revenues Home Closings ASP Average Community Count Average Monthly

Absorption Rate

Central $ 165,775 741 $ 223,718 34.0 7.3

Southeast 88,447 403 219,471 31.0 4.3

Northwest 101,948 273 373,436 12.3 7.4

West 58,485 236 247,818 14.7 5.4

Florida 40,072 182 220,176 16.7 3.6

Total $ 454,727 1,835 $ 247,808 108.7 5.6

Owned and Controlled Lots

The table below shows (i) home closings by reportable segment for the three months ended March 31, 2021 and (ii) owned or controlled lots by reportable segment as of March 31, 2021.

Three Months Ended March 31, 2021 As of March 31, 2021

Reportable Segment Home Closings Owned
⁽¹⁾ Controlled Total

Central 1,127 17,639 9,229 26,868

Southeast 548 10,783 8,273 19,056

Northwest 296 3,217 4,052 7,269

West 249 4,199 4,198 8,397

Florida 341 2,664 3,032 5,696

Total 2,561 38,502 28,784 67,286

(1) Of the 38,502 owned lots as of March 31, 2021, 26,213 were raw/under development lots and 12,289 were finished lots.

Backlog Data

As of the dates set forth below, the Company’s net orders, cancellation rate and ending backlog homes and value were as follows (dollars in thousands, unaudited):

Backlog Data

Three Months Ended March 31,

2021
⁽⁴⁾ 2020
⁽⁵⁾

Net orders ⁽¹⁾ 5,229 2,481

Cancellation rate ⁽²⁾ 10.5 % 18.3 %

Ending backlog – homes ⁽³⁾ 5,632 1,879

Ending backlog – value ⁽³⁾ $ 1,595,879 $ 446,271

(1) Net orders are new (gross) orders for the purchase of homes during the period, less cancellations of existing purchase contracts during the period.

(2) Cancellation rate for a period is the total number of purchase contracts cancelled during the period divided by the total new (gross) orders for the purchase of homes during the period.

(3) Ending backlog consists of homes at the end of the period that are under a purchase contract that has been signed by homebuyers who have met preliminary financing criteria but have not yet closed and wholesale contracts for which vertical construction is generally set to occur within the next six to twelve months. Ending backlog is valued at the contract amount.

(4) As of March 31, 2021, the Company had 1,344 units related to bulk sales agreements associated with its wholesale business.

(5) As of March 31, 2020, the Company had 338 units related to bulk sales agreements associated with its wholesale business.

CONTACT: Joshua D. Fattor
Vice President of Investor Relations
(281) 210-2619
[email protected]

Posted on May 4, 2021 7:03 am
HRCI Assumes ISO International Secretariat Role for Technical Committee 260 on Human Resource Management

ALEXANDRIA, Va., May 04, 2021 (GLOBE NEWSWIRE) — HRCI®, the premier HR credentialing and learning organization, is honored to announce that the American National Standards Institute (ANSI) has appointed HRCI as the International Secretariat for the International Organization for Standardization (ISO) Technical Committee (TC) 260 on Human Resource Management. ANSI is the U.S. member body to the ISO.

ISO TC 260, formed in 2011, is responsible for the development of a series of standards for human resource management processes and practices. There are 19 standards and technical specifications published, with 13 more under development. One of the most noteworthy standards from this work is ISO 30414, Human Capital Reporting, which many Chief Financial Officer’s believe is a safe harbor for the recent ruling from the SEC requiring Human Capital Management Disclosures . The forthcoming ISO 301415 standard will also be an important standard for organizations, helping them create a culture of Diversity and Inclusion.

HRCI looks forward to providing effective leadership and continuing the development of additional standards to guide and optimize organizational performance, value creation, sustainable development and workforce productivity/satisfaction/engagement.

“In keeping with HRCI’s role as the global leader in certification programs, we are excited to be selected as the ISO Technical Committee on Human Resource Management. Leading this initiative to develop standards and practices for global human resources management is a natural expansion of HRCI’s responsibilities to the HR community,” said Dr. Amy Dufrane, SPHR, CAE, HRCI Chief Executive Officer.

“We are proud that HRCI is at the helm of standardization efforts that focus on human resources, which is often a vital factor in an organization’s success,” said S. Joe Bhatia, ANSI president and CEO. “We are excited to see additional progress unfold that will protect and support the interests and vitality of companies, and their employees, on a global scale.”

About HRCI®

HRCI®, headquartered in Alexandria, Virginia, is the premier credentialing and learning organization for the human resources profession. For over 45 years, we have set the global standard for HR expertise and excellence through our commitment to the development and advancement of businesspeople in the people business. HRCI develops and offers world-class learning, as well as the administration of eight global certifications and is dedicated to helping professionals achieve new competencies that drive business results. Learn more at www.hrci.org.

About ANSI
The American National Standards Institute (ANSI) is a private non-profit organization whose mission is to enhance both the global competitiveness of U.S. business and the U.S. quality of life by promoting and facilitating voluntary consensus standards and conformity assessment systems, and safeguarding their integrity. Its membership is comprised of businesses, professional societies and trade associations, standards developers, government agencies, and consumer and labor organizations. The Institute represents and serves the diverse interests of more than 270,000 companies and organizations and 30 million professionals worldwide. ANSI is the official U.S. representative to the International Organization for Standardization (ISO) and, via the U.S. National Committee, the International Electrotechnical Commission (IEC). For more information, visit www.ansi.org.

About ISO

ISO is an independent, non-governmental international organization with a membership of 165 national standards bodies through its members, it brings together experts to share knowledge and develop voluntary, consensus-based, market-relevant International Standards that support innovation and provide solutions to global challenges. The Central Secretariat in located in Geneva, Switzerland. Learn more about our structure and how we are governed.

ISO is the Organization for International Standards. It is a non-governmental global entity founded in 1947 and is comprised of 165 countries who come together through National standards bodies to develop proprietary, industry, and commercial global standards. The most recognizable and noteworthy series of standards is ISO 9001 Quality Management.
www.iso.org

HRCI Media Contact: Kate Achille [email protected] 732-706-0123 Note to editors: Trademarks and registered trademarks referenced herein remain the property of their respective owners.

Posted on May 4, 2021 7:02 am
Bausch Health Companies Inc. Announces First-Quarter 2021 Results

PR Newswire

LAVAL, Quebec, May 4, 2021 /PRNewswire/ —

First-Quarter 2021 Financial Results

Revenues of $2.027 Billion

GAAP Net Loss of $610 Million

Adjusted EBITDA (non-GAAP)
¹
of $852 Million

GAAP Cash Generated from Operations of $443 Million

Company Continues to Make Progress on Planned Separation of Eye Health Business

Announces Leadership Team of Bausch + Lomb

Now Operates in Five Reportable Segments

Reaffirmed 2021 Full-Year Revenue and Adjusted EBITDA (non-GAAP)
Guidance Ranges

Bausch Health Companies Inc. (NYSE/TSX: BHC) (“Bausch Health” or the “Company” or “we”) today announced its first-quarter 2021 financial results.

“Bausch Health entered 2021 with strong momentum as our recovery from the COVID-19 pandemic continues. Our business is generating strong cash flow, many of our leading products have increased market share in key markets, and we are advancing our pipeline,” said Joseph C. Papa, chairman and CEO, Bausch Health.

“We are taking action to accelerate the strategic alternatives process to expedite the spinoff of Bausch + Lomb as we remain committed to unlocking value across our two attractive businesses. We are focused on execution and growth as we position these two strong, but dissimilar businesses as attractive growth opportunities in the markets they serve,” continued Mr. Papa.

Select Company Highlights

Increased total Company reported revenue by 1% compared to the first quarter of 2020

Launched Solta Medical’s Clear + Brilliant® Touch laser in the United States

Launched Bausch + Lomb’s Alaway® Preservative Free (ketotifen fumarate ophthalmic solution, 0.035%), antihistamine eye drops in the United States

Entered into an agreement to divest Amoun Pharmaceutical Company S.A.E. to Abu-Dhabi based ADQ; the transaction is expected to close in the first half of 2021

Repaid debt by $200 million in the first quarter of 2021 using cash generated from operations; Bausch Health has no mandatory amortization payments or debt maturities until 2024

Announced in March that Sam Eldessouky, the Company’s current Controller and Chief Accounting Officer, has been appointed to the role of Chief Financial Officer (CFO) and will succeed Bausch Health’s current CFO Paul S. Herendeen, effective June 1, 2021. Mr. Herendeen will remain at Bausch Health in the newly created role of Advisor to the Chairman and CEO

Pipeline Advancements

VYZULTA® (latanoprostene bunod ophthalmic solution), 0.024%, received regulatory approval in South Korea, Brazil and Qatar, and has launched in Taiwan

LUMIFY® (brimonidine tartrate ophthalmic solution 0.025%) redness reliever eye drops received regulatory approval in South Korea

BAUSCH + LOMB ULTRA® ONE DAY daily disposable silicone hydrogel contact lenses received regulatory approval in Taiwan

Announced statistically significant topline results from the first Phase 3 trial evaluating the investigational NOV03² (perfluorohexyloctane) as a first-in-class eye drop with a novel mechanism of action to treat the signs and symptoms of dry eye disease associated with meibomian gland dysfunction

Announced statistically significant topline results from the second pivotal Phase 3 trial evaluating the investigational IDP-126 gel in acne vulgaris

Progress on Planned Separation of Eye Health Business
Today, the Company announced that Joseph C. Papa and Sam Eldessouky will serve as CEO and CFO of Bausch + Lomb upon separation of the Bausch + Lomb eye health business.³ In addition, the Company continued to make progress toward internal objectives necessary for the separation, including operating in five reportable segments commencing with the first quarter of 2021.

First-Quarter 2021 Revenue Performance
Total reported revenues were $2.027 billion for the first quarter of 2021, as compared to $2.012 billion in the first quarter of 2020, an increase of $15 million. Revenue was negatively impacted by approximately $100 million in the first quarter of 2021 due to the COVID-19 pandemic. Excluding the favorable impact of foreign exchange of $33 million and the impact of divestitures and discontinuations of $10 million, revenue declined organically^1,4 by $8 million compared to the first quarter of 2020.

Revenues by segment were as follows:

Three Months Ended
March 31

Reported

Reported

Change at
Constant

Organic

(in millions)

2021

2020

⁵

Change

Change

Currency⁶

Change^1,4

Total Bausch Health Company

$2,027

$2,012

$15

1%

(1%)

–

Bausch + Lomb segment

$881

$875

$6

1%

(2%)

(2%)

Bausch Pharma^7,8

$1,146

$1,137

$9

1%

–

1%

Salix segment

$472

$477

($5)

(1%)

(1%)

(1%)

International Rx segment

$306

$291

$15

5%

4%

4%

Ortho Dermatologics segment

$141

$131

$10

8%

5%

5%

Diversified Products segment

$227

$238

($11)

(5%)

(5%)

(2%)

Bausch + Lomb Segment⁵Bausch + Lomb segment revenues were $881 million for the first quarter of 2021, as compared to $875 million for the first quarter of 2020, an increase of $6 million, or 1%. Excluding the favorable impact of foreign exchange of $26 million and the impact of divestitures and discontinuations of $2 million, the Bausch + Lomb segment decreased organically^1,⁴ by approximately 2% compared to the first quarter of 2020, primarily due to the impact of the COVID-19 pandemic.

Bausch Pharma^7,8
Bausch Pharma revenues (non-GAAP)⁸ were $1.146 billion for the first quarter of 2021, as compared to $1.137 billion for the first quarter of 2020, an increase of $9 million, or 1%. Excluding the favorable impact of foreign exchange of $7 million and the impact of divestitures and discontinuations of $8 million, revenue increased organically^1,⁴ by 1%.

Salix Segment
Salix segment reported and organic^1,⁴ revenues were $472 million for the first quarter of 2021, as compared to $477 million for the first quarter of 2020, a decrease of $5 million, or 1%. The decline was primarily driven by the impact of the COVID-19 pandemic, including decreased sales of XIFAXAN® (rifaximin), which declined by 2% compared to the first quarter of 2020.

International Rx Segment⁵International Rx segment revenues were $306 million for the first quarter of 2021, as compared to $291 million for the first quarter of 2020, an increase of $15 million, or 5%. Excluding the favorable impact of foreign exchange of $4 million and the impact of divestitures and discontinuations of $1 million, the International Rx segment increased organically^1,⁴ by approximately 4% compared to the first quarter of 2020, primarily due to increased revenues in Latin America.

Ortho Dermatologics Segment⁵Ortho Dermatologics segment revenues were $141 million for the first quarter of 2021, as compared to $131 million for the first quarter of 2020, an increase of $10 million, or 8%. Excluding the favorable impact of foreign exchange of $3 million, the Ortho Dermatologics segment grew organically^1,⁴ by approximately 5% compared to the first quarter of 2020, primarily driven by sales of the Thermage® franchise, which grew by 39% compared to the first quarter of 2020, partially offset by a decrease in net realized pricing of our medical dermatology products and by the loss of exclusivity of products in the segment, which negatively impacted revenues by approximately $6 million.

Diversified Products Segment⁵Diversified Products segment revenues were $227 million for the first quarter of 2021, as compared to $238 million for the first quarter of 2020, a decrease of $11 million, or 5%. Excluding the impact of divestitures and discontinuations of $7 million, the Diversified Products segment declined organically^1,⁴ by 2% compared to the first quarter of 2020. The decrease in revenue was primarily attributable to the previously reported loss of exclusivity for a basket of products.

Operating Results
Operating loss was $221 million for the first quarter of 2021, as compared to operating income of $248 million for the first quarter of 2020, an unfavorable change of $469 million. The change was primarily driven by a goodwill impairment charge of $469 million in our Ortho Dermatologics business and an impairment of $71 million related to the intangible assets of a certain product line in the Ortho Dermatologics business partially offset by profit protection measures taken to manage and reduce our operating expenses and preserve cash during the COVID-19 pandemic.

Net Loss
Net loss for the first quarter of 2021 was $610 million, as compared to $152 million for the same period in 2020, an unfavorable change of $458 million. The change was primarily due to the unfavorable change in our operating results.

Adjusted net income (non-GAAP)¹ for the first quarter of 2021 was $370 million, as compared to $316 million for the first quarter of 2020, an increase of $54 million.

Cash Generated from Operations
The Company generated $443 million of cash from operations (GAAP basis) in the first quarter of 2021, as compared to $261 million in the first quarter of 2020, an increase of $182 million, or 70%. The increase in cash from operations was primarily attributed to the timing of payments in the ordinary course of business.

EPS
GAAP Earnings Per Share (EPS) Diluted for the first quarter of 2021 was ($1.71), as compared to ($0.43) for the first quarter of 2020.

Adjusted EBITDA (non-GAAP)¹Adjusted EBITDA (non-GAAP)¹ was $852 million for the first quarter of 2021, as compared to $813 million for the first quarter of 2020, an increase of $39 million. The increase was primarily due to profit protection measures taken to manage and reduce our operating expenses and preserve cash during the COVID-19 pandemic.

2021 Financial Outlook
Bausch Health reiterated guidance for the full year of 2021 as follows:

Full
-year revenue range of $8.60 – $8.80 billion

Full-year Adjusted EBITDA (non-GAAP) range of $3.40 – $3.55 billion

Other than with respect to GAAP Revenues, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. In periods where significant acquisitions or divestitures are not expected, the Company believes it might have a basis for forecasting the GAAP equivalent for certain costs, such as amortization, which would otherwise be treated as non-GAAP to calculate projected GAAP net income (loss). However, because other deductions (such as restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP). These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-looking Statements section of this news release.

Additional Highlights

Bausch Health’s cash, cash equivalents and restricted cash were $1.893 billion^9,10 at March 31, 2021

The Company’s availability under its 2023 Revolving Credit Facility was $1.124 billion at March 31, 2021

Basic weighted average shares outstanding for the first quarter of 2021 were 356.8 million shares. Diluted weighted average shares outstanding for the first quarter of 2021 were 363.5 million shares¹¹

Conference Call Details

Date:

Tuesday, May 4, 2021

Time:

8:00 a.m. EDT

Webcast:

http://ir.bauschhealth.com/events-and-presentations

Participant Event Dial-in:

+1 (888) 317-6003 (United States)

+1 (412) 317-6061 (International)

+1 (866) 284-3684 (Canada)

Participant Passcode:

1092415

Replay Dial-in:

+1 (877) 344-7529 (United States)

+1 (412) 317-0088 (International)

+1 (855) 669-9658 (Canada)

Replay Passcode:

10150424 (replay available until May 11, 2021)

About Bausch Health
Bausch Health Companies Inc. (NYSE/TSX: BHC) is a global company whose mission is to improve people’s lives with our health care products. We develop, manufacture and market a range of pharmaceutical, medical device and over-the-counter products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology. We are delivering on our commitments as we build an innovative company dedicated to advancing global health. More information can be found at www.bauschhealth.com.

Forward-looking Statements
This news release contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, “forward-looking statements”), including, but not limited to, Bausch Health’s future prospects and performance, including the Company’s 2021 full-year guidance, the Company’s plan to separate its eye health business from the remainder of Bausch Health and the anticipated impact of the COVID-19 pandemic on the Company and the Company’s recovery therefrom. Forward-looking statements may generally be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “should,” “could,” “would,” “may,” “believes,” “estimates,” “potential,” “target,” or “continue” and variations or similar expressions, and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. These forward-looking statements, including the Company’s full-year guidance, are based upon the current expectations and beliefs of management and are provided for the purpose of providing additional information about such expectations and beliefs, and readers are cautioned that these statements may not be appropriate for other purposes. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in the Company’s most recent annual and quarterly reports and detailed from time to time in the Company’s other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which risks and uncertainties are incorporated herein by reference. They also include, but are not limited to, risks and uncertainties relating to the Company’s proposed plan to separate its eye health business from the remainder of Bausch Health, including the expected benefits and costs of the separation transaction, the expected timing of completion of the separation transaction and its terms, the Company’s ability to complete the separation transaction considering the various conditions to the completion of the separation transaction (some of which are outside the Company’s control, including conditions related to regulatory matters and a possible shareholder vote, if applicable), that market or other conditions are no longer favorable to completing the transaction, that any shareholder, stock exchange, regulatory or other approval (if required) is not obtained on the terms or timelines anticipated or at all, business disruption during the pendency of or following the separation transaction, diversion of management time on separation transaction-related issues, retention of existing management team members, the reaction of customers and other parties to the separation transaction, the qualification of the separation transaction as a tax-free transaction for Canadian and/or U.S. federal income tax purposes (including whether or not an advance ruling from either or both of the Canada Revenue Agency and the Internal Revenue Service will be sought or obtained), potential dis-synergy costs between the separated entity and the remainder of Bausch Health, the impact of the separation transaction on relationships with customers, suppliers, employees and other business counterparties, general economic conditions, conditions in the markets Bausch Health is engaged in, behavior of customers, suppliers and competitors, technological developments and legal and regulatory rules affecting Bausch Health’s business. In particular, the Company can offer no assurance that any separation transaction will occur at all, or that any separation transaction will occur on the terms and timelines anticipated by the Company. They also include, but are not limited to, risks and uncertainties caused by or relating to the evolving COVID-19 pandemic, the fear of that pandemic, the availability and effectiveness of vaccines for COVID-19, and the potential effects of that pandemic, the severity, duration and future impact of which are highly uncertain and cannot be predicted, and which may have a material adverse impact on the Company, including but not limited to its supply chain, third-party suppliers, project development timelines, employee base, liquidity, stock price, financial condition and costs (which may increase) and revenue and margins (both of which may decrease). In addition, certain material factors and assumptions have been applied in making these forward-looking statements, including, without limitation, assumptions regarding our 2021 full-year guidance with respect to expectations regarding base performance and management’s belief regarding the impact of the COVID-19 pandemic and associated responses on such base performance and the operations and financial results of the Company generally, expected currency impact, the expected timing and impact of loss of exclusivity for certain of our products, expectations regarding gross margin, adjusted SG&A expense (non-GAAP) and the Company’s ability to continue to manage such expense in the manner anticipated and the anticipated timing and extent of the Company’s R&D expense; and the assumption that the risks and uncertainties outlined above will not cause actual results or events to differ materially from those described in these forward-looking statements. Management has also made certain assumptions in assessing the anticipated impacts of the COVID-19 pandemic on the Company and its results of operations and financial conditions, including: that there will be no material restrictions on access to health care products and services resulting from a possible resurgence of the virus and variant strains thereof on a global basis in 2021; there will be increased availability and use of effective vaccines; that the strict social restrictions in the first half of 2020 will not be materially re-enacted in the event of a material resurgence of the virus and variant strains thereof; that there will be an ongoing, gradual global recovery as the macroeconomic and health care impacts of the COVID-19 pandemic run their course; that the largest impact to the Company’s businesses were seen in the second quarter of 2020; that our revenues will likely return to pre-pandemic levels during 2021, but that rates of recovery will vary by geography and business unit, with some regions and business units expected to lag in recovery possibly beyond 2021; and no major interruptions in the Company’s supply chain and distribution channels. If any of these assumptions regarding the impacts of the COVID-19 pandemic are incorrect, our actual results could differ materially from those described in these forward-looking statements.

Additional information regarding certain of these material factors and assumptions may also be found in the Company’s filings described above. The Company believes that the material factors and assumptions reflected in these forward-looking statements are reasonable in the circumstances, but readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Non-GAAP Information
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures, including: (i) Adjusted EBITDA (non-GAAP), (ii) organic growth/change, (iii) constant currency and (iv) Bausch Pharma revenues. As discussed below, we also provide Adjusted Net Income (non-GAAP) to provide supplemental information to readers. Management uses these non-GAAP measures as key metrics in the evaluation of the Company’s performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The Company believes these non-GAAP measures are useful to investors in their assessment of our operating performance and the valuation of the Company. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors, and in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors.

However, these measures are not prepared in accordance with GAAP nor do they have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

The reconciliations of these historic non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables below. However, as indicated above, for guidance purposes, the Company does not provide reconciliations of projected Adjusted EBITDA (non-GAAP) to projected GAAP net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

Specific Non-GAAP Measures

Adjusted EBITDA (non-GAAP)
Adjusted EBITDA (non-GAAP) is GAAP net loss attributable to Bausch Health Companies Inc. (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization and certain other items described below. Management believes that Adjusted EBITDA (non-GAAP), along with the GAAP measures used by management, most appropriately reflect how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that Adjusted EBITDA (non-GAAP) focuses management on the Company’s underlying operational results and business performance. As a result, the Company uses Adjusted EBITDA (non-GAAP) both to assess the actual financial performance of the Company and to forecast future results as part of its guidance. Management believes Adjusted EBITDA (non-GAAP) is a useful measure to evaluate current performance. Adjusted EBITDA (non-GAAP) is intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors. In addition, cash bonuses for the Company’s executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) targets.

Adjusted EBITDA (non-GAAP) is net loss attributable to Bausch Health Companies Inc. (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization and the following items:

Asset impairments, including loss on assets held for sale: The Company has excluded the impact of impairments of finite-lived and indefinite-lived intangible assets, as well as impairments of assets held for sale, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company’s operating performance. Although the Company excludes impairments of intangible assets from measuring the performance of the Company and the business, the Company believes that it is important for investors to understand that intangible assets contribute to revenue generation.

Goodwill impairments: The Company excludes the impact of goodwill impairments. When the Company has made acquisitions where the consideration paid was in excess of the fair value of the net assets acquired, the remaining purchase price is recorded as goodwill. For assets that we developed ourselves, no goodwill is recorded. Goodwill is not amortized but is tested for impairment. The amount of goodwill impairment is measured as the excess of a reporting unit’s carrying value over its fair value. Management excludes these charges in measuring the performance of the Company and the business.

Restructuring and integration costs: The Company has incurred restructuring costs as it implemented certain strategies, which involved, among other things, improvements to its infrastructure and operations, internal reorganizations and impacts from the divestiture of assets and businesses. With regard to infrastructure and operational improvements which the Company has taken to improve efficiencies in the businesses and facilities, these tend to be costs intended to right size the business or organization that fluctuate significantly between periods in amount, size and timing, depending on the improvement project, reorganization or transaction. The Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company’s operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.

• Acquisition-related costs and adjustments excluding amortization of intangible assets: The Company has excluded the impact of acquisition-related contingent consideration non-cash adjustments due to the inherent uncertainty and volatility associated with such amounts based on changes in assumptions with respect to fair value estimates, and the amount and frequency of such adjustments is not consistent and is significantly impacted by the timing and size of the Company’s acquisitions, as well as the nature of the agreed-upon consideration. In addition, the Company excludes the impact of acquisition-related costs and fair value inventory step-up resulting from acquisitions as the amounts and frequency of such costs and adjustments are not consistent and are impacted by the timing and size of its acquisitions. There were no acquisition-related costs or fair value inventory step-up for the periods presented.

Loss on extinguishment of debt: The Company has excluded loss on extinguishment of debt as this represents a cost of refinancing our existing debt and is not a reflection of our operations for the period. Further, the amount and frequency of such charges are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management’s control.

Share-based compensation: The Company has excluded costs relating to share-based compensation. The Company believes that the exclusion of share-based compensation expense assists investors in the comparisons of operating results to peer companies. Share-based compensation expense can vary significantly based on the timing, size and nature of awards granted.

Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection with activities taken to: (i) separate the eye-health business from the remainder of the Company and (ii) register the eye-health business as an independent publicly traded entity. Separation costs are incremental costs directly related to effectuating the separation of the eye-health business and include, but are not limited to, legal, audit and advisory fees, employee hiring, relocation and travel costs and costs associated with establishing a new board of directors and audit committee. Separation-related costs are incremental costs indirectly related to the separation of the eye-health business and include, but are not limited to, IT infrastructure and software licensing costs, rebranding costs and costs associated with facility relocation and/or modification. As these costs arise from events outside of the ordinary course of continuing operations, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company’s operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.

Other Non-GAAP adjustments: The Company has excluded certain other amounts, including legal and other professional fees incurred in connection with legal and governmental proceedings, investigations and information requests regarding certain of our legacy distribution, marketing, pricing, disclosure and accounting practices, litigation and other matters, and net gain on sale of assets. Given the unique nature of the matters relating to these costs, the Company believes these items are not normal operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the Company believes the costs associated with legal settlements and judgments are not normal operating expenses. In addition, as opposed to more ordinary course matters, the Company considers that each of the recent proceedings, investigations and information requests, given their nature and frequency, are outside of the ordinary course and relate to unique circumstances. The Company has also excluded expenses associated with in-process research and development, as these amounts are inconsistent in amount and frequency and are significantly impacted by the timing, size and nature of acquisitions. Furthermore, as these amounts are associated with research and development acquired, the Company does not believe that they are a representation of the Company’s research and development efforts during any given period. The Company has also excluded IT infrastructure investment, that are the result of other, non-comparable events to measure operating performance. These events arise outside of the ordinary course of continuing operations. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. However, investors should understand that many of these costs could recur and that companies in our industry often face litigation.

Adjusted Net Income (non-GAAP)
Adjusted net income (non-GAAP) is net loss attributable to Bausch Health Companies Inc. (its most directly comparable GAAP financial measure) adjusted for restructuring and integration costs, acquired in-process research and development costs, loss on extinguishment of debt, asset impairments (including loss on assets held for sale), acquisition-related adjustments, excluding amortization, separation costs and separation-related costs and other non-GAAP charges as these adjustments are described above, and amortization of intangible assets as described below:

Amortization of intangible assets: The Company has excluded the impact of amortization of intangible assets, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. The Company believes that the adjustments of these items correlate with the sustainability of the Company’s operating performance. Although the Company excludes amortization of intangible assets from its non-GAAP expenses, the Company believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.

Historically, management has used Adjusted net income (non-GAAP) for strategic decision making, forecasting future results and evaluating current performance. This non-GAAP measure excludes the impact of certain items (as described above) that may obscure trends in the Company’s underlying performance. By disclosing this non-GAAP measure, it is management’s intention to provide investors with a meaningful, supplemental comparison of the Company’s operating results and trends for the periods presented. It is management’s belief that this measure is also useful to investors as such measure allowed investors to evaluate the Company’s performance using the same tools that management uses to evaluate past performance and prospects for future performance. Accordingly, it is the Company’s belief that Adjusted net income (non-GAAP) is useful to investors in their assessment of the Company’s operating performance and the valuation of the Company. It is also noted that, in recent periods, our GAAP net income (loss) was significantly lower than our Adjusted net income (non-GAAP). Commencing in 2017, management of the Company identified and began using certain new primary financial performance measures to assess the Company’s financial performance. However, management still believes that Adjusted net income (non-GAAP) may be useful to investors in their assessment of the Company and its performance.

Organic Growth/Change
Organic growth/change, a non-GAAP metric, is defined as a change on a period-over-period basis in revenues on a constant currency basis (if applicable) excluding the impact of recent acquisitions, divestitures and discontinuations (if applicable). Organic growth/change is change in GAAP Revenue (its most directly comparable GAAP financial measure) adjusted for certain items, as further described below, of businesses that have been owned for one or more years. Organic revenue growth/change is impacted by changes in product volumes and price. The price component is made up of two key drivers: (i) changes in product gross selling price and (ii) changes in sales deductions. The Company uses organic growth/change to assess performance of its business units and operating and reportable segments, and the Company in total, without the impact of foreign currency exchange fluctuations and recent acquisitions, divestitures and product discontinuations. The Company believes that such measures are useful to investors as they provide a supplemental period-to-period comparison.

Organic growth/change reflects adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates on revenues and (ii) the revenues associated with acquisitions, divestitures and discontinuations of businesses divested and/or discontinued. These adjustments are determined as follows:

Foreign currency exchange rates: Although changes in foreign currency exchange rates are part of our business, they are not within management’s control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the business. The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period.

Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non-GAAP) growth/change on a comparable basis, revenues associated with acquisitions, divestitures and discontinuations are adjusted to include only revenues from those businesses and assets owned during both periods. Accordingly, organic revenue (non-GAAP) growth/change excludes from the current period, revenues attributable to each acquisition for twelve months subsequent to the day of acquisition, as there are no revenues from those businesses and assets included in the comparable prior period. Organic revenue (non-GAAP) growth/change excludes from the prior period, all revenues attributable to each divestiture and discontinuance during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period.

Constant Currency
Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company’s financial results and financial position. To assist investors in evaluating the Company’s performance, we have adjusted for foreign currency effects. Constant currency impact is determined by comparing 2021 reported amounts adjusted to exclude currency impact, calculated using 2020 monthly average exchange rates, to the actual 2020 reported amounts.

Please also see the reconciliation tables below for further information as to how these non-GAAP measures are calculated for the periods presented.

Bausch Pharma Revenues
Bausch Pharma revenues, a non-GAAP metric, are determined by subtracting Bausch + Lomb segment revenues for the applicable period from total Bausch Health Company revenues for the applicable period.

¹

Please see the tables at the end of this news release for a reconciliation of this and other non-GAAP measures to the nearest comparable GAAP measure.

²

Bausch Health acquired an exclusive license from Novaliq GmbH for the commercialization and development of NOV03 in the United States and Canada.

³

The Company Board has proposed that these individuals be appointed as CEO and CFO of Bausch + Lomb at the time of the separation. Such individuals will continue to serve in their current roles at the Company prior to the separation.

⁴

Organic growth/change, a non-GAAP metric, is defined as a change on a period-over-period basis in revenues on a constant currency basis (if applicable) excluding the impact of recent acquisitions, divestitures and discontinuations.

⁵

In connection with the planned separation of the Company’s eye health business into an independent publicly traded entity from the remainder of Bausch Health Companies Inc., the Company has realigned and has begun managing its operations in a manner consistent with the organizational structure of the two separate entities as proposed by the separation. Commencing in 2021, the Company realigned its segment reporting structure and now operates in five reportable segments.

⁶

To assist investors in evaluating the Company’s performance, we have adjusted for changes in foreign currency exchange rates. Change at constant currency, a non-GAAP metric, is determined by comparing 2021 reported amounts adjusted to exclude currency impact, calculated using 2020 monthly average exchange rates, to the actual 2020 reported amounts.

⁷

The remainder of Bausch Health is referred to as “Bausch Pharma” and will assume a new name upon the separation of the Company’s eye health business, Bausch + Lomb.

⁸

Bausch Pharma revenues, a non-GAAP metric, are determined by subtracting Bausch + Lomb segment revenues for the applicable period from total Bausch Health Company revenues for the applicable period.

⁹

Cash, cash equivalents and restricted cash at March 31, 2021 includes remaining net proceeds from the December 2019 bond issuance intended to be used to finance the $1.210 billion settlement of the U.S. Securities litigation due in 2021.

¹⁰

As of March 31, 2021, cash and cash equivalents excludes $54 million of cash and cash equivalents classified as held for sale associated with the Company’s agreement to sell all of its equity interests in Amoun Pharmaceutical Company S.A. E.

¹¹

Diluted weighted average shares includes the dilutive impact of options and restricted stock units, which are approximately 6,657,000 common shares for the 3 months ended March 31, 2021, and which are excluded when calculating GAAP diluted loss per share because the effect of including the impact would be anti-dilutive.

Investor Contact:

Media Contact:

Arthur Shannon

Lainie Keller

[email protected]

[email protected]

(514) 856-3855

(908) 927-1198

(877) 281-6642 (toll free)

FINANCIAL TABLES FOLLOW

Bausch Health Companies Inc.

Table 1

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2021 and 2020

(unaudited)

Three Months Ended

March 31,

(in millions)

2021

2020

Revenues

Product sales

$

2,003

$

1,986

Other revenues

24

26

2,027

2,012

Expenses

Cost of goods sold (excluding amortization and impairments of intangible assets)

564

505

Cost of other revenues

10

14

Selling, general and administrative

606

633

Research and development

112

122

Amortization of intangible assets

357

436

Goodwill impairments

469

—

Asset impairments, including loss on assets held for sale

148

14

Restructuring, integration and separation costs

12

4

Other (income) expense, net

(30)

36

2,248

1,764

Operating (loss) income

(221)

248

Interest income

2

7

Interest expense

(368)

(396)

Loss on extinguishment of debt

(5)

(24)

Foreign exchange and other

1

(13)

Loss before (provision for) benefit from income taxes

(591)

(178)

(Provision for) benefit from income taxes

(16)

26

Net loss

(607)

(152)

Net income attributable to noncontrolling interest

(3)

—

Net loss attributable to Bausch Health Companies Inc.

$

(610)

$

(152)

Bausch Health Companies Inc.

Table 2

Reconciliation of GAAP Net Loss to Adjusted Net Income (non-GAAP)

For the Three Months Ended March 31, 2021 and 2020

(unaudited)

Three Months Ended

March 31,

(in millions)

2021

2020

Net loss attributable to Bausch Health Companies Inc.

$

(610)

$

(152)

Non-GAAP adjustments: ^(a)

   Amortization of intangible assets

357

436

   Goodwill impairments

469

—

   Asset impairments, including loss on assets held for sale

148

14

   Restructuring and integration costs

3

4

   Acquired in-process research and development costs

2

1

   Acquisition-related costs and adjustments (excluding amortization of intangible assets)

(9)

13

   Loss on extinguishment of debt

5

24

   IT infrastructure investment

5

7

   Separation costs and separation-related costs

29

—

   Legal and other professional fees

17

9

   Net gain on sale of assets

(23)

(1)

   Litigation and other matters

—

23

   Tax effect of non-GAAP adjustments

(23)

(62)

Total non-GAAP adjustments

980

468

Adjusted net income attributable to Bausch Health Companies Inc. (non-GAAP)

$

370

$

316

(a) The components of and further details respecting each of these non-GAAP adjustments and the financial statement line item to which
      each component relates can be found on Table 2a.

Bausch Health Companies Inc.

Table 2a

Reconciliation of GAAP to Non-GAAP Financial Information

For the Three Months Ended March 31, 2021 and 2020

(unaudited)

Three Months Ended

March 31,

(in millions)

2021

2020

Selling, general and administrative reconciliation:

GAAP Selling, general and administrative

$

606

$

633

IT infrastructure investment ^(a)

(5)

(7)

Legal and other professional fees ^(b)

(17)

(9)

Separation-related costs ^(c)

(20)

—

Adjusted selling, general and administrative (non-GAAP)

$

564

$

617

Amortization of intangible assets reconciliation:

GAAP Amortization of intangible assets

$

357

$

436

Amortization of intangible assets^(d)

(357)

(436)

Adjusted amortization of intangible assets (non-GAAP)

$

—

$

—

Goodwill impairments reconciliation:

GAAP Goodwill impairments

$

469

$

—

Goodwill impairments ^(e)

(469)

—

Adjusted goodwill impairments (non-GAAP)

$

—

$

—

Asset impairments, including loss on assets held for sale reconciliation:

GAAP Asset impairments, including loss on assets held for sale

$

148

$

14

Asset impairments, including loss on assets held for sale ^(f)

(148)

(14)

Adjusted asset impairments, including loss on assets held for sale (non-GAAP)

$

—

$

—

Restructuring, integration and separation costs reconciliation:

GAAP Restructuring, integration and separation costs

$

12

$

4

Restructuring and integration costs ^(g)

(3)

(4)

Separation costs ^(c)

(9)

—

Adjusted restructuring, integration and separation costs (non-GAAP)

$

—

$

—

Other (income) expense, net reconciliation:

GAAP Other (income) expense, net

$

(30)

$

36

Litigation and other matters ^(h)

—

(23)

Acquisition-related contingent consideration ⁽ⁱ⁾

9

(13)

Net gain on sale of assets ^(j)

23

1

Acquired in-process research and development costs ^(k)

(2)

(1)

Adjusted other (income) expense, net (non-GAAP)

$

—

$

—

Bausch Health Companies Inc.

Table 2a (continued)

Reconciliation of GAAP to Non-GAAP Financial Information

For the Three Months Ended March 31, 2021 and 2020

(unaudited)

Three Months Ended

March 31,

(in millions)

2021

2020

Loss on extinguishment of debt reconciliation:

GAAP Loss on extinguishment of debt

$

(5)

$

(24)

Loss on extinguishment of debt ^(l)

5

24

Adjusted loss on extinguishment of debt (non-GAAP)

$

—

$

—

(Provision for) benefit from income taxes reconciliation:

GAAP (Provision for) benefit from income taxes

$

(16)

$

26

Tax effect of non-GAAP adjustments ^(m)

(23)

(62)

Adjusted provision for income taxes (non-GAAP)

$

(39)

$

(36)

(a)

Represents the sole component of the non-GAAP adjustment of “IT infrastructure investment” (see Table 2).

(b)

Represents the sole component of the non-GAAP adjustment of “Legal and other professional fees” (see Table 2). Legal and other professional fees incurred during the three months ended March 31, 2021 and 2020 in connection with recent legal and governmental proceedings, investigations and information requests related to, among other matters, our distribution, marketing, pricing, disclosure and accounting practices.

(c)

Represents the two components of the non-GAAP adjustment of “Separation costs and separation-related costs” (see Table 2).

(d)

Represents the sole component of the non-GAAP adjustment of “Amortization of intangible assets” (see Table 2).

(e)

Represents the sole component of the non-GAAP adjustment of “Goodwill impairments” (see Table 2).

(f)

Represents the sole component of the non-GAAP adjustment of “Asset impairments, including loss on assets held for sale” (see Table 2).

(g)

Represents the sole component of the non-GAAP adjustment of “Restructuring and integration costs” (see Table 2).

(h)

Represents the sole component of the non-GAAP adjustment of “Litigation and other matters” (see Table 2).

(i)

Represents the sole component of the non-GAAP adjustment of “Acquisition-related costs and adjustments (excluding amortization of intangible assets)” (see Table 2).

(j)

Represents the sole component of the non-GAAP adjustment of “Net gain on sale of assets” (see Table 2).

(k)

Represents the sole component of the non-GAAP adjustment of “Acquired in-process research and development costs” (see Table 2).

(l)

Represents the sole component of the non-GAAP adjustment of “Loss on extinguishment of debt” (see Table 2).

(m)

Represents the sole component of the non-GAAP adjustment of “Tax effect of non-GAAP adjustments” (see Table 2).

Bausch Health Companies Inc.

Table 2b

Reconciliation of GAAP Net Loss to Adjusted EBITDA (non-GAAP)

For the Three Months Ended March 31, 2021 and 2020

(unaudited)

Three Months Ended

March 31,

(in millions)

2021

2020

Net loss attributable to Bausch Health Companies Inc.

$

(610)

$

(152)

Interest expense, net

366

389

Provision for (benefit from) income taxes

16

(26)

Depreciation and amortization

403

481

EBITDA

175

692

Adjustments:

Asset impairments, including loss on assets held for sale

148

14

Goodwill impairments

469

—

Restructuring and integration costs

3

4

Acquisition-related costs and adjustments (excluding amortization of intangible assets)

(9)

13

Loss on extinguishment of debt

5

24

Share-based compensation

31

27

Separation costs and separation-related costs

29

—

Other adjustments:

Litigation and other matters

—

23

IT infrastructure investment

5

7

Legal and other professional fees ^(a)

17

9

Net gain on sale of assets

(23)

(1)

Acquired in-process research and development costs

2

1

Adjusted EBITDA (non-GAAP)

$

852

$

813

(a) Legal and other professional fees incurred during the three months ended March 31, 2021 and 2020 in connection with recent legal and
      governmental proceedings, investigations and information requests related to, among other matters, our distribution, marketing,
      pricing, disclosure and accounting practices.

Bausch Health Companies Inc.

Table 3

Organic Growth (non-GAAP) – by Segment

For the Three Months Ended March 31, 2021 and 2020

(unaudited)

Calculation of Organic Revenue for the Three Months Ended

March 31, 2021

March 31, 2020

Change in

Organic Revenue

Revenue

as

Reported

Changes in Exchange Rates ^(a)

Organic Revenue

(Non-GAAP)^(b)

Revenue

as

Reported

Divestitures

and Discontinuations

Organic Revenue (Non-GAAP)^(b)

(in millions)

Amount

Pct.

Bausch + Lomb ^(c)

Global Vision Care

$

224

$

(6)

$

218

$

193

$

—

$

193

$

25

13

%

Global Surgical

162

(8)

154

153

(2)

151

3

2

%

Global Consumer Products ^(c)

331

(8)

323

330

—

330

(7)

(2)

%

Global Ophtho Rx ^(c)

164

(4)

160

199

—

199

(39)

(20)

%

   Total Bausch + Lomb

$

881

$

(26)

$

855

$

875

$

(2)

$

873

$

(18)

(2)

%

Bausch Pharma

Salix

$

472

$

—

$

472

$

477

$

—

$

477

$

(5)

(1)

%

International Rx ^(c)

306

(4)

302

291

(1)

290

12

4

%

Ortho Dermatologics ^(c)

Ortho Dermatologics ^(c)

69

—

69

80

—

80

(11)

(14)

%

Global Solta

72

(3)

69

51

—

51

18

35

%

   Total Ortho Dermatologics

141

(3)

138

131

—

131

7

5

%

Diversified Products ^(c)

Neurology and Other ^(c)

154

—

154

157

(7)

150

4

3

%

Generics ^(c)

48

—

48

60

—

60

(12)

(20)

%

Dentistry

25

—

25

21

—

21

4

19

%

   Total Diversified Products

227

—

227

238

(7)

231

(4)

(2)

%

Total Bausch Pharma revenues ^(d)

$

1,146

$

(7)

$

1,139

$

1,137

$

(8)

$

1,129

$

10

1

%

Total Bausch Health Companies

$

2,027

$

(33)

$

1,994

$

2,012

$

(10)

$

2,002

$

(8)

—

%

(a)

The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period.

(b)

To supplement the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures. For additional information about the Company’s use of such non-GAAP financial measures, refer to the body of the news release to which these tables are attached. Organic revenue (non-GAAP) for the three months ended March 31, 2021 is calculated as revenue as reported adjusted for the impact for changes in exchange rates (previously defined in this news release). Organic revenue (non-GAAP) for the three months ended March 31, 2020 is calculated as revenue as reported less revenues attributable to divestitures and discontinuances during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period. Organic revenue (non-GAAP) is also adjusted for acquisitions, however, during the three months ended March 31, 2021 and 2020, there were no acquisitions.

(c)

In connection with the planned separation of the Company’s eye-health business into an independently traded entity from the remainder of Bausch Health Companies Inc, the Company has realigned and has begun managing its operations in a manner consistent with the organizational structure of the two separate entities as proposed by the separation. Commencing in 2021, the Company realigned its segment reporting structure and now operates in five reportable segments. Also, certain products historically included in the reported results of the Generics business unit in the Diversified Products segment are included in the reported results of the Global Ophtho Rx business unit in the Bausch + Lomb segment and certain products historically included in the reported results of the Global Consumer Products business unit in the Bausch + Lomb segment are included in the reported results of the Neurology and Other business unit in the Diversified products segment. All segment and business unit references in this news release are to this realigned segment and business unit reporting structure and prior period presentations of results have been conformed to the current segment and business unit reporting structure to allow investors to evaluate results between periods on a constant basis. For more information about the current segment reporting structure, please see “New Segment Structure” slide in the appendix to our First-Quarter 2021 Financial Results presentation.

(d)

Bausch Pharma revenues, a non-GAAP metric, are determined by subtracting Bausch + Lomb segment revenues for the applicable period from total Bausch Health revenues for the applicable period.

Bausch Health Companies Inc.

Table 4

Other Financial Information

(unaudited)

(in millions)

March 31,
2021

December 31,
2020

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents^(a)

$

679

$

605

Restricted cash^(b)

1,214

1,211

Cash, cash equivalents and restricted cash

$

1,893

$

1,816

Debt Obligations

Senior Secured Credit Facilities:

   Revolving Credit Facility

$

—

$

—

   Term Loan Facilities

4,336

4,332

Senior Secured Notes

4,020

4,217

Senior Unsecured Notes

15,370

15,364

Other

12

12

Total long-term debt and other, net of premiums, discounts and issuance costs

23,738

23,925

Plus: Unamortized premiums, discounts and issuance costs

247

260

Total long-term debt and other

$

23,985

$

24,185

Maturities and Mandatory Payments of Debt Obligations

Remainder of 2021

$

—

$

—

2022

—

—

2023

—

—

2024

2,091

2,291

2025

10,632

10,632

2026

1,500

1,500

2027 – 2031

9,762

9,762

Total debt obligations

$

23,985

$

24,185

Three Months Ended

March 31,

2021

2020

Cash provided by operating activities

$

443

$

261

(a)

As of March 31, 2021, Cash and cash equivalents excludes $54 million of cash and cash equivalents classified as held for sale associated with the Company’s agreement to sell all of its equity interests in Amoun Pharmaceutical Company S.A.E.

(b)

As of March 31, 2021 and December 31, 2020, Restricted cash includes $1,210 million of payments into an escrow fund under the terms of a settlement agreement regarding certain U.S. Securities Litigation, subject to two objectors’ appeals of the final court approval. These payments will remain in escrow until final approval of the settlement.

View original content to download multimedia:http://www.prnewswire.com/news-releases/bausch-health-companies-inc-announces-first-quarter-2021-results-301282748.html

SOURCE Bausch Health Companies Inc.

Posted on May 4, 2021 7:02 am
Hillrom Declares Fiscal 2021 Third Quarter Dividend

PR Newswire

CHICAGO, May 4, 2021 /PRNewswire/ — Hillrom (NYSE: HRC) announced today that its board of directors declared a fiscal 2021 third quarter dividend of $0.24 per share payable on June 30, 2021, to shareholders of record as of the close of business on June 18, 2021. The indicated annual dividend rate is $0.96 per share.

About Hillrom

Hillrom is a global medical technology leader whose 10,000 employees have a single purpose: enhancing outcomes for patients and their caregivers by Advancing Connected Care™. Around the world, our innovations touch over 7 million patients each day. They help enable earlier diagnosis and treatment, optimize surgical efficiency and accelerate patient recovery while simplifying clinical communication and shifting care closer to home. We make these outcomes possible through connected smart beds, patient lifts, patient assessment and monitoring technologies, caregiver collaboration tools, respiratory health devices, advanced operating room equipment and more, delivering actionable, real-time insights at the point of care. Learn more at hillrom.com.

CONTACT INFORMATION

Investor Relations

Contact:     Mary Kay Ladone, Senior Vice
                    President, Corporate
                    Development, Strategy and
                    Investor Relations

Phone:         312-819-9387

Email:          [email protected]

Contact:    Lorna Williams, Executive
                   Director, Investor Relations and
                   Strategy

Phone:       312-233-7799

Email:        [email protected]

Media

Contact:    Howard Karesh, Vice President, Corporate Communications

Phone:       312-819-7268

Email:        [email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/hillrom-declares-fiscal-2021-third-quarter-dividend-301282836.html

SOURCE Hillrom

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