Third Quarter Fiscal 2022 Highlights (Comparison to Third Quarter Fiscal 2021):
Third Quarter Fiscal 2022 Results (Comparison to Third Quarter Fiscal 2021)
Consolidated net revenues for the third quarter of fiscal 2022 were
Reported consolidated operating loss for the third quarter of fiscal 2022 was
Financial Condition
At
Fiscal 2022 Guidance & Conference Call
As announced on
Due to the pending transaction, Meridian will no longer hold conference calls to discuss its quarterly financial results and withdraws its previously issued financial guidance for fiscal year 2022, last updated on
INTERIM UNAUDITED OPERATING RESULTS | |||||||||||||
The following table sets forth the unaudited comparative results of Meridian on a | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
Net revenues | $ | 67,771 | $ | 63,511 | $ | 267,343 | $ | 241,692 | |||||
Cost of sales | 31,043 | 26,400 | 112,979 | 85,261 | |||||||||
Gross profit | 36,728 | 37,111 | 154,364 | 156,431 | |||||||||
Operating expenses | |||||||||||||
Research and development | 6,043 | 6,083 | 17,928 | 17,799 | |||||||||
Selling and marketing | 8,178 | 6,209 | 23,433 | 19,770 | |||||||||
General and administrative | 13,149 | 11,964 | 46,364 | 36,827 | |||||||||
Acquisition and transaction related costs | 4,227 | 300 | 4,295 | 300 | |||||||||
Litigation and select legal costs | 11,812 | 438 | 12,601 | 2,695 | |||||||||
Change in fair value of acquisition | |||||||||||||
consideration | - | (3,563) | - | (5,505) | |||||||||
Total operating expenses | 43,409 | 21,431 | 104,621 | 71,886 | |||||||||
Operating income (loss) | (6,681) | 15,680 | 49,743 | 84,545 | |||||||||
Other income (expense), net | 79 | (385) | (59) | (1,950) | |||||||||
Earnings (loss) before income taxes | (6,602) | 15,295 | 49,684 | 82,595 | |||||||||
Income tax provision | 736 | 3,626 | 12,930 | 17,845 | |||||||||
Net earnings (loss) | $ | (7,338) | $ | 11,669 | $ | 36,754 | $ | 64,750 | |||||
Net earnings (loss) per basic common share | $ | (0.17) | $ | 0.27 | $ | 0.84 | $ | 1.50 | |||||
Basic common shares outstanding | 43,586 | 43,334 | 43,526 | 43,226 | |||||||||
Net earnings (loss) per diluted common | $ | (0.16) | $ | 0.26 | $ | 0.83 | $ | 1.47 | |||||
Diluted common shares outstanding | 44,474 | 44,097 | 44,230 | 44,006 |
Adjusted Financial Measures (in thousands, except per share data) | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Adjusted operating income | $ | 9,358 | $ | 12,855 | $ | 66,639 | $ | 82,035 | ||||||||||||||||||
Adjusted net earnings | 7,197 | 9,547 | 51,933 | 62,865 | ||||||||||||||||||||||
Adjusted net earnings per diluted common share | $ | 0.16 | $ | 0.22 | $ | 1.17 | $ | 1.43 | ||||||||||||||||||
Condensed Consolidated Balance Sheet Data (in thousands) | |||||||||
2022 | 2021 | ||||||||
Cash and cash equivalents | $ | 83,487 | $ | 49,771 | |||||
Working capital | 152,122 | 145,650 | |||||||
Long-term debt | 25,000 | 60,000 | |||||||
Shareholders' equity | 365,547 | 328,302 | |||||||
Total assets | 465,928 | 449,722 | |||||||
Segment Data | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||
Net Revenues - By Product Platform/Type | ||||||||||||||||||||
Diagnostics | ||||||||||||||||||||
Molecular assays | $ | 4,876 | $ | 4,383 | $ | 14,039 | $ | 13,368 | ||||||||||||
Non-molecular assays | 37,533 | 26,806 | 102,677 | 80,091 | ||||||||||||||||
| 42,409 | 31,189 | 116,716 | 93,459 | ||||||||||||||||
Life Science | ||||||||||||||||||||
Molecular reagents | 7,743 | 20,385 | 79,531 | 104,016 | ||||||||||||||||
Immunological reagents | 17,619 | 11,937 | 71,096 | 44,217 | ||||||||||||||||
Total Life Science | 25,362 | 32,322 | 150,627 | 148,233 | ||||||||||||||||
Total Net Revenues | $ | 67,771 | $ | 63,511 | $ | 267,343 | $ | 241,692 | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net Revenues - By Disease State/Geography | ||||||||||||||||||||||
Diagnostics | ||||||||||||||||||||||
Gastrointestinal assays | $ | 22,715 | $ | 17,844 | $ | 64,704 | $ | 48,962 | ||||||||||||||
Respiratory illness assays | 5,488 | 3,742 | 21,359 | 12,233 | ||||||||||||||||||
Blood chemistry assays | 6,431 | 4,254 | 9,762 | 13,006 | ||||||||||||||||||
Other | 7,775 | 5,349 | 20,891 | 19,258 | ||||||||||||||||||
| 42,409 | 31,189 | 116,716 | 93,459 | ||||||||||||||||||
Life Science | ||||||||||||||||||||||
7,314 | 7,419 | 25,833 | 39,661 | |||||||||||||||||||
EMEA | 8,200 | 15,723 | 70,188 | 70,084 | ||||||||||||||||||
ROW | 9,848 | 9,180 | 54,606 | 38,488 | ||||||||||||||||||
Total Life Science | 25,362 | 32,322 | 150,627 | 148,233 | ||||||||||||||||||
Total Net Revenues | $ | 67,771 | $ | 63,511 | $ | 267,343 | $ | 241,692 | ||||||||||||||
OPERATING INCOME (LOSS) | ||||||||||||||||||||||
Diagnostics | $ | 3,278 | $ | 2,717 | $ | 3,104 | $ | 4,400 | ||||||||||||||
Life Science | 9,088 | 16,078 | 75,976 | 91,832 | ||||||||||||||||||
Corporate | (19,084) | (3,154) | (29,407) | (11,754) | ||||||||||||||||||
Eliminations | 37 | 39 | 70 | 67 | ||||||||||||||||||
Total Operating Income (Loss) | $ | (6,681) | $ | 15,680 | $ | 49,743 | $ | 84,545 | ||||||||||||||
Geographic Regions EMEA = ROW = Rest of World | ||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES
In this press release, we have supplemented our reported GAAP financial information with information on operating expenses, operating income (loss), operating margin, net earnings (loss), basic net earnings (loss) per share and diluted net earnings (loss) per share, each on an adjusted basis excluding the effects of acquisition and transaction related costs, litigation and select legal costs, and changes in fair value of acquisition consideration, each of which is a non-GAAP measure. We have provided in the tables below reconciliations to the operating expenses, operating income, net earnings, basic net earnings per share and diluted net earnings per share amounts reported under GAAP for the three and nine months ended
We believe this information is useful to an investor in evaluating our performance because:
These non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, the non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations, in that they do not reflect all amounts associated with our results as determined in accordance with GAAP. Therefore, these measures should only be used to evaluate our results in conjunction with corresponding GAAP measures.
THIRD QUARTER AND NINE MONTH YEAR-TO-DATE | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Operating Expenses - | ||||||||||||||
GAAP basis | $ | 43,409 | $ | 21,431 | $ | 104,621 | $ | 71,886 | ||||||
Acquisition and transaction related costs | (4,227) | (300) | (4,295) | (300) | ||||||||||
Litigation and select legal costs | (11,812) | (438) | (12,601) | (2,695) | ||||||||||
Change in fair value of acquisition consideration | - | 3,563 | - | 5,505 | ||||||||||
Adjusted Operating Expenses | $ | 27,370 | $ | 24,256 | $ | 87,725 | $ | 74,396 | ||||||
Operating Income (Loss) - | ||||||||||||||
GAAP basis | $ | (6,681) | $ | 15,680 | $ | 49,743 | $ | 84,545 | ||||||
Acquisition and transaction related costs | 4,227 | 300 | 4,295 | 300 | ||||||||||
Litigation and select legal costs | 11,812 | 438 | 12,601 | 2,695 | ||||||||||
Change in fair value of acquisition consideration | - | (3,563) | - | (5,505) | ||||||||||
Adjusted Operating Income | $ | 9,358 | $ | 12,855 | $ | 66,639 | $ | 82,035 | ||||||
Net Earnings (Loss) - | ||||||||||||||
GAAP basis | $ | (7,338) | $ | 11,669 | $ | 36,754 | $ | 64,750 | ||||||
Acquisition and transaction related costs * | 3,174 | 225 | 3,226 | 225 | ||||||||||
Litigation and select legal costs * | 11,361 | 329 | 11,953 | 2,024 | ||||||||||
Change in fair value of acquisition consideration * | - | (2,676) | - | (4,134) | ||||||||||
Adjusted Net Earnings | $ | 7,197 | $ | 9,547 | $ | 51,933 | $ | 62,865 | ||||||
Basic Earnings (Loss) per Common Share - | ||||||||||||||
GAAP basis | $ | (0.17) | $ | 0.27 | $ | 0.84 | $ | 1.50 | ||||||
Acquisition and transaction related costs | 0.07 | 0.01 | 0.07 | 0.01 | ||||||||||
Litigation and select legal costs | 0.26 | 0.01 | 0.27 | 0.05 | ||||||||||
Change in fair value of acquisition consideration | - | (0.06) | - | (0.10) | ||||||||||
Adjusted Basic EPS ** | $ | 0.17 | $ | 0.22 | $ | 1.19 | $ | 1.45 | ||||||
Three Months | Nine Months | ||||||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Diluted Earnings (Loss) per Common Share - | |||||||||||||||||||||||||
GAAP basis | $ | (0.16) | $ | 0.26 | $ | 0.83 | $ | 1.47 | |||||||||||||||||
Acquisition and transaction related costs | 0.07 | 0.01 | 0.07 | 0.01 | |||||||||||||||||||||
Litigation and select legal costs | 0.26 | 0.01 | 0.27 | 0.05 | |||||||||||||||||||||
Change in fair value of acquisition consideration | - | (0.06) | - | (0.09) | |||||||||||||||||||||
Adjusted Diluted EPS *** | $ | 0.16 | $ | 0.22 | $ | 1.17 | $ | 1.43 | |||||||||||||||||
* | Net of tax, as applicable. |
** | Three and nine months ended |
*** | Three months ended |
FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements accompanied by meaningful cautionary statements. Except for historical information, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which may be identified by words such as "continues", "estimates", "anticipates", "projects", "plans", "seeks", "may", "will", "expects", "intends", "believes", "signals", "should", "can", "guidance" and similar expressions or the negative versions thereof and which also may be identified by their context. All statements that address operating performance or events or developments that
Meridian's operating results, financial condition and continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian's competition, its ability to effectively sell such products and its ability to successfully expand and effectively manage increased sales and marketing operations. While Meridian has introduced a number of internally developed products and acquired products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis or in protecting its intellectual property, and unexpected or costly manufacturing costs associated with its introduction of new products or acquired products could cause actual results to differ from expectations. Meridian relies on proprietary, patented and licensed technologies. As such, the Company's ability to protect its intellectual property rights, as well as the potential for intellectual property litigation, would impact its results. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Recessionary pressures on the economy and the markets in which the Company's customers operate, as well as adverse trends in buying patterns from customers, can change expected results. Costs and difficulties in complying with laws and regulations, including those administered by the
About
Meridian is a fully integrated life science company that develops, manufactures, markets and distributes a broad range of innovative diagnostic products. We are dedicated to developing and delivering better solutions that give answers with speed, accuracy and simplicity that are redefining the possibilities of life from discovery to diagnosis. Through discovery and development, we provide critical life science raw materials used in immunological and molecular tests for human, animal, plant, and environmental applications. Through diagnosis, we provide diagnostic solutions in areas including gastrointestinal and upper respiratory infections and blood lead level testing. We build relationships and provide solutions to hospitals, reference laboratories, research centers, veterinary testing centers, physician offices, diagnostics manufacturers, and biotech companies in more than 70 countries around the world.
Meridian's shares are traded on the NASDAQ Global Select Market, symbol
Contact:
Vice President – Investor Relations
Phone: +1 513.271.3700
Email: mbi@meridianbioscience.com
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