News Details

Meridian Bioscience Reports Third Quarter Fiscal 2021 Results

Aug 06, 2021 8:00 AM

CINCINNATI, Aug. 06, 2021 (GLOBE NEWSWIRE) -- Meridian Bioscience, Inc. (NASDAQ: VIVO) today announced financial results for the third quarter ended June 30, 2021.

Third Quarter 2021 Highlights (Comparison to Third Quarter Fiscal 2020):
• Consolidated net revenues of $63.5 million, down 25% year-over-year, but up 31% from pre-pandemic third quarter fiscal 2019
• Diagnostics segment net revenues increased 44% year-over-year to $31.2 million
• Life Science segment net revenues decreased 49% year-over-year to $32.3 million
• Re-Submitted Emergency Use Authorization (“EUA”) with U.S. Food and Drug Administration (“FDA”) for Revogene® SARS-CoV-2 assay
• Launched Lyo-Ready master mixes for loop-mediated isothermal amplification (“LAMP”) technology
• Launched Air-Dryable™ master mixes for saliva and plant-based samples
• Completed remediation of quality system at Billerica manufacturing site – October 2017 FDA warning letter closed

Jack Kenny, Chief Executive Officer, commented, “This quarter is a great demonstration that while Meridian’s performance accelerated during the COVID-19 pandemic, it is not dependent on a resurgence of the pandemic to have a strong business going forward. We have been preparing for a post-pandemic world and this quarter clearly shows the positive direction the business is headed.”

Third Quarter Fiscal 2021 Results (Comparison to Third Quarter Fiscal 2020)
Consolidated net revenues for the third quarter of fiscal 2021 decreased 25% to $63.5 million, compared to $84.8 million last year. We believe that a meaningful year-over-year comparison is challenging to understand, since the third quarter of fiscal 2020 was the peak quarter of the COVID-19 pandemic for that fiscal year. Compared to the pre-pandemic period, third quarter of fiscal 2019, consolidated net revenues are up 31%.

Diagnostics segment net revenues were up 44% year-over-year but were negatively impacted by recent supply chain issues and product recall activities related to our LeadCare® products, which resulted in backorders of approximately $1.5 million at the end of the quarter. Life Science segment net revenues were down 49% year-over-year, reflecting the negative impact of the continued reduction in demand for reagents associated with COVID-19 testing, as reported widely across the industry. Also, of note, we had a backorder of approximately $1.0 million affecting our Life Science segment revenues at the end of the quarter related to core (non-COVID-19 related) immunoassay blocking-reagent products. Included within Life Science segment net revenues is an estimated $14.5 million in net revenues from COVID-19 related products, with approximately $12.5 million in molecular products and $2.0 million in immunological products. This implies core Life Science segment net revenues were up approximately 15% year-over-year.

Reported operating income for the third quarter of fiscal 2021 was $15.7 million, down 55% from the prior year, reflecting the lower revenue levels for the quarter. Compared to the pre-pandemic period, third quarter of fiscal 2019, reported operating income is up 143%. Operating expenses included: (i) lower research and development spending in the Diagnostics segment; (ii) lower incentive compensation expenses; (iii) lower acquisition-related expenses associated with the fiscal 2020 Exalenz transaction; and (iv) a downward adjustment in the fair value of the contingent consideration related to the fiscal 2019 GenePOC transaction. On an adjusted basis, operating income was $12.9 million for the third quarter of fiscal 2021, a margin of 20% (see non-GAAP financial measure reconciliation below), down from $30.4 million and a margin of 36% in the prior year.

Financial Condition
At June 30, 2021, cash and cash equivalents were $70.0 million and the Company had $110.0 million of borrowing capacity under its $160.0 million commercial bank credit facility. The Company’s obligations under the commercial bank credit facility totaled $50.0 million as of June 30, 2021. Subsequent to the end of the quarter, on July 31, 2021, the Company closed the acquisition of the BreathTek® business from Otsuka America Pharmaceutical, Inc. for approximately $20.0 million, funded out of cash and cash equivalents on hand.

Bryan Baldasare, Chief Financial Officer, commented, “Despite being down from the COVID-19 pandemic highs, the third quarter was a strong quarter for the Company relative to pre-pandemic levels. Our balance sheet remains strong and our cash generation continues to fund opportunities with the potential to deliver strong returns for shareholders.”

Fiscal 2021 Guidance Reaffirmed with Tighter Range

Fiscal 2021 Net Revenues:

  • Consolidated $308 million to $314 million
  • Diagnostics segment $128 million to $130 million
  • Life Science segment $180 million to $184 million

Fiscal 2021 Adjusted Operating Margin: Consolidated 30% to 31%
Fiscal 2021 Adjusted Net Earnings Per Share on a Diluted Basis (“EPS”): $1.61 to $1.67 (44.1M shares)

Results for the third quarter were consistent with our expectations of reduced demand for Life Science segment reagents used in COVID-19 testing. As such, we are reaffirming the lower end of our guidance and updating with a tighter range. The guidance was further adjusted to account for the impact of the acquisition of the BreathTek® business. We expect the acquisition to be accretive to Adjusted EPS by approximately $0.01 in the fourth quarter of fiscal 2021.

This guidance reflects our current visibility into market conditions and customer order patterns for our products and our current assumptions about the impacts from the COVID-19 pandemic in the U.S. and around the globe.

Conference Call Information
Jack Kenny, Chief Executive Officer, and Bryan Baldasare, Executive Vice President and Chief Financial Officer, will host a conference call on Friday, August 6, 2021 beginning at 10:00 a.m. Eastern Time to discuss the third quarter financial results and answer questions. A presentation to accompany the quarterly financial results and related discussion will be made available within the Investor Relations section of the Company’s website,, prior to the conference call.

To participate in the live call by telephone from the U.S., dial (866) 443-5802, or from outside the U.S., dial (513) 360-6924, and enter the audience pass code 3074079. A replay will be available for 14 days beginning at 1:00 p.m. Eastern Time on August 6, 2021 by dialing (855) 859-2056 or (404) 537-3406 and entering pass code 3074079.

(In Thousands, Except per Share Data)

The following table sets forth the unaudited comparative results of Meridian on a U.S. generally accepted accounting principles (“GAAP”) basis for the interim periods of fiscal 2021 and fiscal 2020.

 Three Months Ended Nine Months Ended
 June 30, June 30,
 2021  2020  2021  2020 
Net revenues$63,511  $84,797  $241,692  $189,514 
Cost of sales 26,400   28,814   85,261   71,334 
Gross profit 37,111   55,983   156,431   118,180 
Operating expenses           
Research and development 6,083   6,668   17,799   16,746 
Selling and marketing 6,209   6,282   19,770   19,539 
General and administrative 11,964   12,624   36,827   32,236 
Acquisition-related costs 300   1,641   300   3,428 
Change in fair value of acquisition           
consideration (3,563)  (6,124)  (5,505)  (7,428)
Restructuring costs -   93   -   620 
Selected legal costs 438   134   2,695   1,189 
Total operating expenses 21,431   21,318   71,886   66,330 
Operating income 15,680   34,665   84,545   51,850 
Other income (expense), net (385)  208   (1,950)  (304)
Earnings before income taxes 15,295   34,873   82,595   51,546 
Income tax provision 3,626   7,366   17,845   11,853 
Net earnings$11,669  $27,507  $64,750  $39,693 
Net earnings per basic common share$0.27  $0.64  $1.50  $0.93 
Basic common shares outstanding 43,334   42,837   43,226   42,819 
Net earnings per diluted common share$0.26  $0.64  $1.47  $0.92 
Diluted common shares outstanding 44,097   43,273   44,006   43,038 

Adjusted Financial Measures (in thousands, except per share data)
(see non-GAAP financial measure reconciliation below)

 Three Months Ended Nine Months Ended
 June 30, June 30,
 2021 2020 2021 2020
Adjusted Operating income$12,855  $30,409  $82,035  $49,659 
Adjusted Net earnings 9,547   24,014   62,865   38,197 
Adjusted Net earnings per diluted common share$0.22  $0.55  $1.43  $0.89 

Condensed Consolidated Balance Sheet Data (in thousands)

 June 30, September 30, 
 2021 2020 
Cash and cash equivalents$70,012   $53,514  
Working capital 158,277    109,666  
Long-term debt 50,000    68,824  
Shareholders’ equity 322,156    247,629  
Total assets 446,570    405,261  

Segment Data
The following table sets forth the unaudited net revenues and segment data for the interim periods in fiscal 2021 and fiscal 2020 (in thousands):

 Three Months Ended Nine Months Ended
 June 30, June 30,
 2021 2020 2021 2020

Net Revenues - By Product Platform/Type
Molecular assays$4,383  $3,182  $13,368  $17,259 
Non-molecular assays 26,806   18,416   80,091   74,072 
Total Diagnostics 31,189   21,598   93,459   91,331 
Life Science               
Molecular reagents 20,385   38,791   104,016   55,703 
Immunological reagents 11,937   24,408   44,217   42,480 
Total Life Science 32,322   63,199   148,233   98,183 
Total Net Revenues$63,511  $84,797  $241,692  $189,514 

 Three Months Ended Nine Months Ended
 June 30, June 30,
 2021  2020  2021  2020
Net Revenues - By Disease State/Geography            
Gastrointestinal assays$17,844  $9,584  $48,962  $39,644 
Respiratory illness assays 3,742   5,052   12,233   23,664 
Blood chemistry assays 4,254   3,364   13,006   12,508 
Other 5,349   3,598   19,258   15,515 
Total Diagnostics 31,189   21,598   93,459   91,331 
Life Science            
Americas 7,419   22,007   39,661   30,638 
EMEA 15,723   26,227   70,084   41,305 
ROW 9,180   14,965   38,488   26,240 
Total Life Science 32,322   63,199   148,233   98,183 
Total Net Revenues$63,511  $84,797  $241,692  $189,514 
Diagnostics$2,510  $(1,783) $3,749  $8,087 
Life Science 16,129   39,305   92,015   51,564 
Corporate (2,998)  (2,849)  (11,286)  (7,832)
Eliminations 39   (8)  67   31 
Total Operating Income$15,680  $34,665  $84,545  $51,850 
Geographic Regions
Americas = North and Latin America
EMEA = Europe, Middle East and Africa
ROW = Rest of World


In this press release, we have supplemented our reported GAAP financial information with information on operating expenses, operating income, operating margin, net earnings, basic net earnings per share and diluted net earnings per share, each on an adjusted basis excluding the effects of certain acquisition-related costs, changes in fair value of the acquisition consideration, restructuring costs, and selected legal costs, 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-month periods ended June 30, 2021 and 2020.

We believe this information is useful to an investor in evaluating our performance because:

  1. These measures help investors to more meaningfully evaluate and compare the results of operations from period to period by removing the impacts of these non-routine items; and

  2. These measures are used by our management for various purposes, including evaluating performance against incentive bonus achievement targets, comparing performance from period to period in presentations to our board of directors, and as a basis for strategic planning and forecasting.

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.

(In Thousands, Except per Share Data)

 Three Months Nine Months
 Ended June 30, Ended June 30,
 2021  2020  2021  2020 
Operating Expenses -           
GAAP basis$21,431  $21,318  $71,886  $66,330 
Acquisition-related costs (300)  (1,641)  (300)  (3,428)
Change in fair value of acquisition
 3,563   6,124   5,505   7,428 
Restructuring costs -   (93)  -   (620)
Selected legal costs (438)  (134)  (2,695)  (1,189)
Adjusted Operating Expenses$24,256  $25,574  $74,396  $68,521 
Operating Income -           
GAAP basis$15,680  $34,665  $84,545  $51,850 
Acquisition-related costs 300   1,641   300   3,428 
Change in fair value of acquisition
 (3,563)  (6,124)  (5,505)  (7,428)
Restructuring costs -   93   -   620 
Selected legal costs 438   134   2,695   1,189 
Adjusted Operating Income$12,855  $30,409  $82,035  $49,659 
Net Earnings -           
GAAP basis$11,669  $27,507  $64,750  $39,693 
Acquisition-related costs * 225   959   225   2,746 
Change in fair value of acquisition consideration * (2,676)  (4,623)  (4,134)  (5,608)
Restructuring costs * -   70   -   468 
Selected legal costs * 329   101   2,024   898 
Adjusted Net Earnings$9,547  $24,014  $62,865  $38,197 
Basic Earnings per Common Share -           
GAAP basis$0.27  $0.64  $1.50  $0.93 
Acquisition-related costs 0.01   0.02   0.01   0.06 
Change in fair value of acquisition consideration (0.06)  (0.11)  (0.10)  (0.13)
Restructuring costs -   -   -   0.01 
Selected legal costs 0.01   -   0.05   0.02 
Adjusted Basic EPS **$0.22  $0.56  $1.45  $0.89 

 Three Months Nine Months
 Ended June 30, Ended June 30,
 2021   2020   2021   2020  
Diluted Earnings per Common Share -           
GAAP basis$0.26   $0.64   $1.47   $0.92  
Acquisition-related costs 0.01    0.02    0.01    0.06  
Change in fair value of acquisition consideration (0.06)  (0.11)  (0.09)  (0.13)
Restructuring costs          0.01  
Selected legal costs 0.01       0.05    0.02  
Adjusted Diluted EPS ***$0.22   $0.55   $1.43   $0.89  

*Net of tax, as applicable.
**Three and nine months ended June 30, 2021 and three months ended June 30, 2020 do not sum to total due to rounding.
***Nine months ended June 30, 2021 and 2020 do not sum to total due to rounding.

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 report 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 Bioscience, Inc. (“Meridian” or “the Company”) expects or anticipates will occur in the future, including, but not limited to, statements relating to per share diluted net earnings, sales, product demand, net revenues, operating margin, other guidance and the impact of COVID-19 on its business and prospects, are forward-looking statements. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. Specifically, Meridian’s forward-looking statements are, and will be, based on management’s then-current views and assumptions regarding future events and operating performance. Meridian assumes no obligation to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially, including, without limitation, the following:

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 United States Food and Drug Administration, can result in unanticipated expenses and delays and interruptions to the sale of new and existing products, as can the uncertainty of regulatory approvals and the regulatory process (including the currently ongoing study and other FDA actions regarding the Company’s LeadCare products). The international scope of Meridian’s operations, including changes in the relative strength or weakness of the U.S. dollar and general economic conditions in foreign countries, can impact results and make them difficult to predict. One of Meridian’s growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses will be successfully integrated into Meridian’s operations. There may be risks that acquisitions may disrupt operations and may pose potential difficulties in employee retention, and there may be additional risks with respect to Meridian’s ability to recognize the benefits of acquisitions, including potential synergies and cost savings or the failure of acquisitions to achieve their plans and objectives. Meridian cannot predict the outcome of future goodwill impairment testing and the impact of possible goodwill impairments on Meridian’s earnings and financial results. Meridian cannot predict the possible impact of U.S. health care legislation enacted in 2010 – the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act – and any modification or repeal of any of the provisions thereof initiated by Congress or the presidential administration, and any similar initiatives in other countries on its results of operations. Efforts to reduce the U.S. federal deficit, breaches of Meridian’s information technology systems, trade wars, increased tariffs, and natural disasters and other events could have a materially adverse effect on Meridian’s results of operations and net revenues. The Company can make no assurances that a material weakness in its internal control over financial reporting will not be identified in the future, which if identified and not properly corrected, could materially adversely affect its operations and result in material misstatements in its consolidated financial statements. Meridian also is subject to risks and uncertainties related to disruptions to or reductions in business operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as COVID-19. In addition to the factors described in this paragraph, as well as those factors identified from time to time in the Company’s filings with the Securities and Exchange Commission, Part I, Item 1A Risk Factors of the Company’s most recent Annual Report on Form 10-K contains a list and description of uncertainties, risks and other matters that may affect the Company. Readers should carefully review these forward-looking statements and risk factors, and not place undue reliance on the Company’s forward-looking statements.

About Meridian Bioscience, Inc.
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 VIVO. Meridian’s website address is

Charlie Wood
Vice President – Investor Relations
Meridian Bioscience, Inc.
Phone: +1 513.271.3700

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Source: Meridian Bioscience Inc.