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Bausch + Lomb Corporation, (NYSE/TSX: BLCO) (“Bausch + Lomb” or the “Company”, “we” or “our”), a leading global eye health company dedicated to helping people see better to live better, today announced its first-quarter 2023 financial results.
“Bausch + Lomb delivered a strong first quarter with continued high-quality growth across all three reporting segments and in most of our significant markets around the world,” said Brent Saunders, chairman and CEO, Bausch + Lomb. “Revenues grew 5% on a reported basis and 8% on a constant currency basis, driven by solid growth from several key franchises within our Vision Care segment, strong execution in our Ophthalmic Pharmaceuticals segment and increased demand for consumables, intraocular lenses and systems in our Surgical segment.
“Since returning to Bausch + Lomb 50 days ago, I’ve observed that the Company has a solid foundation with favorable conditions to support continued demand for our eye health products. Going forward, my focus will be to build on this base and optimize performance to enable Bausch + Lomb to become a best-in-class global eye health company,” continued Mr. Saunders.
Select Company and Pipeline Highlights
- Acquired AcuFocus, Inc., whoseIC-8® Apthera™ intraocular lens (“IOL”) was approved by the FDA as the first and only small aperture non-toric extended depth of focus IOL for certain cataract patients who have as much as 1.5 diopters of corneal astigmatism and wish to address presbyopia at the same time
- Launched PreserVision® AREDS 2 Formula mini soft gels with OCUSorb® in the United States
- Introduced the SeeLuma™ Fully Digital Surgical Visualization Platform in the United States and Western Europe in partnership with Heidelberg Engineering
- Launched the StableVisc™ cohesive ophthalmic viscosurgical device, as well as the TotalVisc™ Viscoelastic System, in the United States
- Results from the two pivotal Phase 3 trials for NOV032 (perfluorohexyloctane), an investigational treatment with a proposed indication of treating the signs and symptoms of dry eye disease associated with Meibomian gland dysfunction, were published in Ophthalmology and the American Journal of Ophthalmology, respectively
- Acquired the rights to market LUMIFY® (brimonidine tartrate ophthalmic solution 0.025%) in 18 additional countries
First-Quarter 2023 Revenue Performance
Total reported revenues were $931 million for the first quarter of 2023, as compared to $889 million in the first quarter of 2022, an increase of $42 million, or 5%. Excluding the unfavorable impact of foreign exchange of $31 million, revenue increased by approximately 8% on a constant currency1 basis compared to the first quarter of 2022.
Revenues by segment were as follows:
First-Quarter 2023 | |||||||||||
(in millions) | Three Months EndedMarch 31 | ReportedChange | ReportedChange | Change atConstantCurrency1 | |||||||
2023 | 2022 | (non-GAAP) | |||||||||
Total Bausch + Lomb Revenues | $931 | $889 | $42 | 5% | 8% | ||||||
Vision Care3 | $587 | $560 | $27 | 5% | 8% | ||||||
Surgical | $183 | $174 | $9 | 5% | 9% | ||||||
Ophthalmic Pharmaceuticals3 | $161 | $155 | $6 | 4% | 7% |
Vision Care Segment3
Vision Care segment revenues were $587 million for the first quarter of 2023, as compared to $560 million for the first quarter of 2022, an increase of $27 million, or 5%. Excluding the unfavorable impact of foreign exchange of $20 million, segment revenues increased on a constant currency basis1 by approximately 8% compared to the first quarter of 2022, primarily due to higher sales of LUMIFY® (brimonidine tartrate ophthalmic solution 0.025%), Bausch + Lomb INFUSE®/ULTRA® ONE DAY daily disposable silicone hydrogel contact lenses, the Biotrue® franchise, Bausch + Lomb ULTRA® monthly contact lenses and the Artelac® franchise.
Surgical Segment
Surgical segment revenues were $183 million for the first quarter of 2023, as compared to $174 million for the first quarter of 2022, an increase of $9 million, or 5%. Excluding the unfavorable impact of foreign exchange of $6 million, segment revenues increased on a constant currency basis1 by approximately 9% compared to the first quarter of 2022, primarily due to increased sales of consumables, IOLs and systems.
Ophthalmic Pharmaceuticals Segment3
Ophthalmic Pharmaceuticals segment revenues were $161 million for the first quarter of 2023, as compared to $155 million for the first quarter of 2022, an increase of $6 million, or 4%. Excluding the unfavorable impact of foreign exchange of $5 million, segment revenues increased on a constant currency basis1 by approximately 7% compared to the first quarter of 2022, primarily due to higher sales in the U.S. generics business and the international portfolio.
Operating Results
Operating results in the first quarter of 2022 were prepared on a carve-out basis and do not include expenses we are now incurring as a publicly traded company, such as Interest expense and standalone public company costs.
Operating loss was $2 million for the first quarter of 2023, as compared to operating income of $54 million for the first quarter of 2022, a decrease of $56 million. The change was largely driven by an increase in Selling, general and administrative (“SG&A”) expenses, due to dis-synergy costs in the first quarter of 2023 associated with the Company becoming a stand-alone entity (following its initial public offering (“IPO”) in May 2022); restructuring, integration and transformation costs; and higher selling expenses due to inflationary factors mostly in freight and distribution, and investment for upcoming product launches. The change was also driven by an increase in Cost of goods sold, primarily due to higher year over year inflationary pressures and the ramp-up of new manufacturing lines for Bausch + Lomb INFUSE®/ULTRA® ONE DAY daily disposable silicone hydrogel contact lenses. The Company is continuing to maintain a disciplined approach to cost management and to leverage its infrastructure.
Net Loss/Income
Net income attributable to Bausch + Lomb Corporation in the first quarter of 2022 was prepared on a carve-out basis and does not include expenses we are now incurring as a publicly traded company, such as Interest expense, taxes and standalone public company costs.
Net loss attributable to Bausch + Lomb Corporation for the first quarter of 2023 was $90 million, as compared to a net income attributable to Bausch + Lomb Corporation of $20 million for the first quarter of 2022, a decrease of $110 million. The change was primarily due to the decrease in operating results noted above, an increase in the Provision for income taxes and an increase in Interest expense.
Adjusted net income (non-GAAP)1 for the first quarter of 2023 was $34 million, as compared to $85 million for the first quarter of 2022, a decrease of $51 million.
Cash from Operations
Cash flow from operations in the first quarter of 2022 was prepared on a carve-out basis and does not include expenses we are now incurring as a publicly traded company, such as Interest expense and standalone public company costs.
Cash used by operations for the first quarter of 2023 was $56 million, as compared to cash flow from operations of $3 million for the first quarter of 2022, a decrease of $59 million. Cash flow from operations was negatively impacted in the first quarter of 2023 primarily by interest payments that were not incurred in the first quarter of 2022, which was prior to our IPO, and a strategic inventory build.
Earnings Per Share
GAAP Earnings Per Share (“EPS”) and Adjusted EPS (non-GAAP)1 for the first quarter of 2022 has been calculated on a pro forma basis after giving effect to our IPO.
GAAP EPS Basic and Diluted attributable to Bausch + Lomb Corporation for the first quarter of 2023 was ($0.26), as compared to $0.06 for the first quarter of 2022. Adjusted EPS (non-GAAP)1 for the first quarter of 2023 was $0.10, as compared to $0.24 for the first quarter of 2022.
Adjusted EBITDA (non-GAAP)1
Adjusted EBITDA (non-GAAP)1 in the first quarter of 2022 was prepared on a carve-out basis and does not include expenses we are now incurring as a standalone publicly traded company.
Adjusted EBITDA (non-GAAP)1 was $141 million for the first quarter of 2023, as compared to $170 million for the first quarter of 2022, a decrease of $29 million, primarily due to dis-synergies and foreign exchange headwinds, partially offset by revenue growth across all three segments.
2023 Financial Outlook4
Bausch + Lomb provided guidance for the full year of 2023, as follows:
- Full-year revenue range of $3.90 – $3.95 billion, reflecting anticipated growth of 5-6% on a constant currency basis1
- Full-year Adjusted EBITDA (non-GAAP)1 range of $700 – $750 million
- $760 million at the mid-point of the full-year Adj. EBITDA (non-GAAP) guidance range, adjusted for currency headwinds1
- Foreign exchange revenue and Adjusted EBITDA (non-GAAP)1 headwinds expected to be approximately $50 million and $35 million for the full year, respectively
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)1 to GAAP net income (loss) attributable to Bausch + Lomb Corporation, of forward-looking Adjusted EBITDA (non-GAAP), adjusted for currency headwinds1 to GAAP net income (loss) attributable to Bausch + Lomb Corporation or of forward-looking constant currency growth1 to reported revenue growth, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. These amounts may be material and, therefore, could result in the projected GAAP measure or ratio being materially different or less than the projected non-GAAP measure or ratio. These statements represent forward-looking information and may not 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.
Balance Sheet Highlights
- Bausch + Lomb’s cash, cash equivalents and restricted cash were $358 million at March 31, 2023
- Basic weighted average shares outstanding for the first quarter of 2023 were 350 million, and diluted weighted average shares outstanding for the first quarter of 2023 were 351.3 million
Conference Call Details
Date: | Wednesday, May 3, 2023 | ||||
Time: | 8:00 a.m. ET | ||||
Webcast: | https://www.webcaster4.com/Webcast/Page/2883/47444 | ||||
Participant Event Dial-in: | +1 (888) 506-0062 (North America)+1 (973) 528-0011 (International) | ||||
Participant Access Code: | 937525 | ||||
Replay Dial-in: | +1 (877) 481-4010 (North America)+1 (919) 882-2331 (International) | ||||
Replay Passcode: | 47444 (replay available until May 17, 2023) |
Source: https://www.businesswire.com/