Bioventus Reports First Quarter Results; Reaffirms Full-Year 2022 Financial Guidance
DURHAM, N.C. — Bioventus Inc. (Nasdaq: BVS) (“Bioventus” or “the Company”), a global leader in innovations for active healing, today reported financial results for three months ended April 2, 2022.
Q1 Financial Summary & Recent Highlights:
- Net Sales of $117.3 million, up $35.5 million, or 43.4%, year over year as reported and 8.6% organically*
- Net Loss of ($14.8) million, compared to Net Income of $24.5 million in prior-year period
- Adjusted EBITDA* of $7.1 million, compared to $11.1 million in prior-year period
“We are pleased with our strong start to the year as we continue to build our market penetration and drive growth despite a challenging macro environment. Our commercial organization executed well, and we saw progress with our integration plans,” commented Ken Reali, Bioventus’ chief executive officer. “As we celebrate the 10-year anniversary of Bioventus, we are encouraged by the momentum we’re seeing across our key short- and mid-term growth drivers, which position us for sustained double-digit growth and margin expansion.”
First Quarter 2022 Financial Results:
The following table represents net sales by geographic region, and by vertical, for the three months ended April 2, 2022 and April 3, 2021, respectively:
| Three Months Ended | Change | ||||||||||
| ($ thousands, except for percentage) | April 2, 2022 | April 3, 2021 | $ | % | |||||||
| By Geographic Region: | |||||||||||
| U.S. | $ | 104,081 | $ | 74,538 | $ | 29,543 | 39.6 | % | |||
| International | 13,209 | 7,240 | 5,969 | 82.4 | % | ||||||
| Net Sales | $ | 117,290 | $ | 81,778 | $ | 35,512 | 43.4 | % | |||
| By Vertical: | |||||||||||
| Pain Treatments | $ | 52,053 | $ | 41,530 | $ | 10,523 | 25.3 | % | |||
| Restorative Therapies | 34,360 | 21,821 | 12,539 | 57.5 | % | ||||||
| Surgical Solutions | 30,877 | 18,427 | 12,450 | 67.6 | % | ||||||
| Net Sales | $ | 117,290 | $ | 81,778 | $ | 35,512 | 43.4 | % | |||
Net sales were $117.3 million compared to $81.8 million for the first quarter of 2021, an increase of $35.5 million, or 43.4%, year-over-year, primarily due to acquisitions. International net sales for the first quarter of 2021 increased 82.4% year over year, or 88.8% on a constant currency* basis.
Gross profit was $75.7 million, or 64.5% of net sales, compared to $59.6 million, or 72.8% of net sales, for the first quarter of 2021, an increase of $16.1 million year-over-year. Non-GAAP gross profit* was $89.1 million, or 76.0% of net sales, compared to $64.8 million, or 79.2% of net sales, for the first quarter of 2021, an increase of $24.3 million year over year.
Operating loss was ($21.5) million, compared to operating income of $22.0 million for the first quarter of 2021, a decrease of ($43.4) million, year-over-year. Operating margin was (18.3%) of net sales, compared to 26.9% of net sales for the first quarter of 2021. Non-GAAP operating income* was $1.9 million, compared to $33.5 million for the first quarter of 2021, a decrease of ($31.6) million year-over-year. Non-GAAP operating margin* was 1.6% of net sales, compared to 40.9% of net sales for the first quarter of 2021.
Net Loss was ($14.8) million compared to net income of $24.5 million for the first quarter of 2021, a decrease of ($39.3) million year-over-year. Non-GAAP net income (loss)* was $2.8 million, compared to $33.4 million, for the first quarter of 2021, a decrease of ($30.6) million, year-over-year.
Adjusted EBITDA* was $7.1 million, compared to $11.1 million for the first quarter of 2021, a decrease of ($4.0) million year-over-year.
Balance Sheet:
As of April 2, 2022, the Company had $27.4 million in cash and cash equivalents and $368.3 million in debt obligations, compared to $43.9 million in cash and cash equivalents and $357.7 million in debt obligations as of December 31, 2021.
Reaffirms Full Year 2022 Financial Guidance:
For the twelve months ending December 31, 2022, the Company expects:
- Net sales of $545 million to $565 million, representing year over year growth of approximately 26% to 31%.
- Adjusted EBITDA* of $94 million to $107 million, compared to $80.8 million for the year ended December 31, 2021.
The Company does not provide U.S. GAAP financial measures, other than net sales, on a forward-looking basis because the Company is unable to predict with reasonable certainty the impact and timing of acquisition related expenses, accounting fair-value adjustments, and other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with U.S. GAAP.
The Company is not providing guidance for adjusted diluted earnings per share due to the uncertainty of the timing for its potential CartiHeal acquisition, but will provide guidance after completion of any acquisition.
The Company’s guidance reflects its current expectations regarding the impact of COVID-19 on its business. The severity and duration of the COVID-19 pandemic are outside of the Company’s control and, given the uncertain nature of the pandemic, could cause the Company’s future operating results to be different from our current expectations, particularly if the impact of the pandemic worsens.
Presentation: This press release presents historical results, for the periods presented, of Bioventus Inc., including Bioventus LLC, the predecessor of Bioventus Inc. for financial reporting purposes.
Here is a link to the full press release: Bioventus Reports First Quarter Results; Reaffirms Full-Year 2022 Financial Guidance