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Harvard Bioscience Announces Second Quarter 2022 Financial Results
ソース: Nasdaq GlobeNewswire / 03 8 2022 21:48:02 America/Chicago
HOLLISTON, Mass., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc. (Nasdaq: HBIO) (the “Company”) today announced financial results for the second quarter ended June 30, 2022.
Jim Green, Chairman and CEO, said, "Our second quarter revenues were essentially flat compared to the prior year quarter as growth in our cellular/molecular product revenues were offset by reductions in pre-clinical revenues and an unfavorable foreign currency impact. Adjusted operating income for Q2 was lower than prior year due primarily to incremental investments in R&D and increased marketing expenses. Gross margin improved to 58% from 57%. On a GAAP basis, operating income for Q2 includes a $4.9 million benefit recorded associated with resolution of litigation related to a former subsidiary. Cash payments by the company associated with the settlement of the litigation were completed in Q2.”
Green continued, “Subsequent to Q2, we completed identification of non-strategic products to discontinue, with shipments for affected products expected to cease in the next few quarters. This portfolio optimization and other cost actions taken is expected to result in a reduction of approximately 5% of the global workforce. We expect these changes to support our strategic long-term growth targets, and to underpin our targets for gross margin and operating margin expansion.”
Green concluded, “Looking at the full year 2022, considering significant currency impacts, volatility in Europe and continued Covid related impacts in China, we are taking a more conservative view on revenue and expect 1-to-5% reported revenue growth and adjusted operating margin for the year of 13-to-14%.”
Quarterly Financial Results Summary Q2'22 Q2'21 Revenues $ 29.2 million $ 29.2 million Operating Income (GAAP) $ 4.0 million $ 0.1 million Adjusted Operating Income $ 3.1 million $ 4.3 million Operating Margin (GAAP) 13.7 % 0.2 % Adjusted Operating Margin 10.5 % 14.6 % Diluted Income (Loss) Per Share (GAAP) $ 0.06 $ (0.01 ) Diluted Adjusted Earnings Per Share $ 0.05 $ 0.06 Net Debt* $ 45.2 million $ 38.2 million * Debt outstanding less cash and cash equivalents For more details on performance for the three and six months ended June 30,2022, a slide presentation that will be referenced during the webcast referenced below will be posted to our Investor Relations website shortly before the webcast begins.
Please refer to the exhibits below for a reconciliation of certain non-GAAP to GAAP financial measures, including operating income, net income and loss, diluted earnings per share and adjusted EBITDA. Please see “Use of Non-GAAP Financial Information” for additional information regarding our use of such adjusted financial information.
Webcast and Conference Call Details
Harvard Bioscience will be hosting a conference call and webcast today at 8:00 a.m. Eastern Time.
Participants who want to join the call and ask a question must register here. Once registered, you will receive the dial-in numbers and a unique PIN number.
Participants who want to join the audio-only webcast should go to our events and presentations on the investor website here.
Use of Non-GAAP Financial Information
In this press release, we have included non-GAAP financial information including adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA. We believe that this non-GAAP financial information provides investors with an enhanced understanding of the underlying operations of the business. For the periods presented, these non-GAAP financial measures have excluded certain expenses and income primarily resulting from purchase accounting or events that we do not believe are related to the underlying operations of the business such as amortization of intangibles related to acquisitions, costs related to acquisition, disposition and integration initiatives, impairment charges, severance, restructuring and other business transformation expenses, and stock-based compensation expense. They also exclude the tax impact of the reconciling items. This non-GAAP financial information approximates information used by our management to internally evaluate the operating results of the Company. Any non-GAAP financial statement information included herein are accompanied by a reconciliation to the nearest corresponding GAAP measure which are included as exhibits below in this press release.
The non-GAAP financial information provided in this press release should be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP and may be different than other companies’ non-GAAP financial information.
About Harvard Bioscience
Harvard Bioscience is a leading developer, manufacturer and seller of technologies, products and services that enable fundamental research, discovery, and pre-clinical testing for drug development. Our customers range from renowned academic institutions and government laboratories, to the world’s leading pharmaceutical, biotechnology and contract research organizations. With operations in North America, Europe, and China, we sell through a combination of direct and distribution channels to customers around the world.
For more information, please visit our website at www.harvardbioscience.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," "guidance," "objectives," "optimistic," "potential," "future," "expects," "plans," "estimates," "continue," "drive," "strategy," "potential," "potentially," "growth," "long-term," "projects," "projected," "intends," "believes," "goals," "sees," "seek," "develop" "possible" "new," "emerging," "opportunity," "pursue" and similar expressions that do not relate to historical matters. Forward-looking statements in this press release or that may be made during our conference call may include, but are not limited to, statements or inferences about the Company's or management's beliefs or expectations, the Company's anticipated future revenues and earnings, the strength of the Company's market position and business model, industry outlook, the impact of the COVID-19 pandemic and related supply chain disruptions on the Company’s business, the Company's business strategy, the positioning of the Company for growth, the market demand and opportunity for the Company's current products, or products it is developing or intends to develop, and the Company's plans, objectives and intentions that are not historical facts. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Investors should note that many factors, as more fully described under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, and in our other filings with the Securities and Exchange Commission and as otherwise enumerated herein or therein may cause the Company's actual results to differ materially from those in the forward-looking statements. The forward-looking statements in this press release are qualified by these risk factors. The Company's results may also be affected by factors of which the Company is not currently aware. The Company may not update these forward-looking statements, even though its situation may change in the future, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.
For investor inquiries, please contact Michael A. Rossi, Chief Financial Officer at (508) 893-8999
Exhibit 1 HARVARD BIOSCIENCE, INC. Consolidated Statements of Operations (unaudited, in thousands, except per share data) Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Revenues $ 29,208 $ 29,197 $ 57,986 $ 56,186 Cost of revenues 12,571 12,844 25,172 24,402 Gross profit 16,637 16,353 32,814 31,784 Operating expenses: Sales and marketing expenses 6,587 5,730 13,274 11,116 General and administrative expenses 5,981 6,399 12,306 12,732 Research and development expenses 3,497 2,701 6,717 5,188 Amortization of intangible assets 1,454 1,465 2,920 2,929 Settlement of litigation, net (4,880 ) - 311 - Total operating expenses 12,639 16,295 35,528 31,965 Operating income (loss) 3,998 58 (2,714 ) (181 ) Other (expense) income: Interest expense (515 ) (377 ) (899 ) (788 ) Other (expense) income, net (62 ) (313 ) 16 (347 ) Total other expense (577 ) (690 ) (883 ) (1,135 ) Income (loss) before income taxes 3,421 (632 ) (3,597 ) (1,316 ) Income tax expense (benefit) 986 (222 ) 848 (237 ) Net income (loss) $ 2,435 $ (410 ) $ (4,445 ) $ (1,079 ) Income (loss) per common share: Basic $ 0.06 $ (0.01 ) $ (0.11 ) $ (0.03 ) Diluted $ 0.06 $ (0.01 ) $ (0.11 ) $ (0.03 ) Weighted-average common shares: Basic 41,304 40,152 41,256 39,960 Diluted 42,561 40,152 41,256 39,960
Exhibit 2 HARVARD BIOSCIENCE, INC. Condensed Consolidated Balance Sheets (unaudited, in thousands) June 30, 2022 December 31, 2021 Assets Cash and cash equivalents $ 4,259 $ 7,821 Accounts receivables 17,847 21,834 Inventories 29,336 27,587 Other current assets 5,056 4,341 Total current assets 56,498 61,583 Property, plant and equipment 3,394 3,415 Goodwill and other intangibles 80,451 85,074 Other long-term assets 14,930 12,272 Total assets $ 155,273 $ 162,344 Liabilities and Stockholders' Equity Current portion, long-term debt $ 2,720 $ 3,235 Other current liabilities 20,634 22,081 Total current liabilities 23,354 25,316 Long-term debt, net 45,764 45,095 Other long-term liabilities 8,651 8,532 Stockholders’ equity 77,504 83,401 Total liabilities and stockholders’ equity $ 155,273 $ 162,344
Exhibit 3 HARVARD BIOSCIENCE, INC. Condensed Consolidated Statements of Cash Flows (unaudited, in thousands) Six Months Ended June 30, 2022 June 30, 2021 Cash flows from operating activities: Net loss $ (4,445 ) $ (1,079 ) Adjustments to operating cash flows 3,220 5,789 Changes in operating assets and liabilities (951 ) (2,905 ) Net cash (used in) provided by operating activities (2,176 ) 1,805 Cash flows from investing activities: Additions to property, plant and equipment (913 ) (357 ) Additions to intangible assets - (150 ) Net cash used in investing activities (913 ) (507 ) Cash flows from financing activities: Borrowing from revolving line of credit 5,300 - Repayment of revolving line of credit (3,600 ) (4,000 ) Repayment of term debt (1,686 ) (1,000 ) Payments of debt issuance costs - (102 ) Proceeds from exercise of stock options and stock purchases 282 2,759 Taxes related to net share settlement of equity awards (780 ) (990 ) Net cash used in financing activities (484 ) (3,333 ) Effect of exchange rate changes on cash 11 (45 ) Decrease in cash and cash equivalents (3,562 ) (2,080 ) Cash and cash equivalents at the beginning of period 7,821 8,317 Cash and cash equivalents at the end of period $ 4,259 $ 6,237
Exhibit 4 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months Ended June 30, 2022 (in thousands, except per share data) Settlement, Stock-Based Acquired Assets Restructuring, Income Statement of Operations GAAP Compensation Amortization Transformation Taxes ADJUSTED Revenues $ 29,208 - - - - $ 29,208 Cost of revenues 12,571 (52 ) (9 ) (82 ) - 12,428 Gross profit 16,637 52 9 82 - 16,780 Gross Margin 57.0 % 57.5 % Operating expenses: Sales and marketing expenses 6,587 (192 ) (1 ) (255 ) - 6,139 General and administrative expenses 5,981 (923 ) (15 ) (825 ) - 4,218 Research and development expenses 3,497 (72 ) (9 ) (50 ) - 3,366 Amortization of intangible assets 1,454 - (1,454 ) - - - Settlement of litigation, net (4,880 ) - - 4,880 - - Total operating expenses 12,639 (1,187 ) (1,479 ) 3,750 - 13,723 Operating Expenses - % of Revenues 43.3 % 47.0 % Operating income (loss) 3,998 1,239 1,488 (3,668 ) - 3,057 Operating Margin 13.7 % 10.5 % Other expense: Interest expense (515 ) - - - - (515 ) Other expense, net (62 ) - - - - (62 ) Total other expense (577 ) - - - - (577 ) Income before income taxes 3,421 1,239 1,488 (3,668 ) - 2,480 Income tax expense (benefit) 986 - - - (517 ) 469 Net income (loss) $ 2,435 $ 1,239 $ 1,488 $ (3,668 ) $ 517 $ 2,011 Income per share $ 0.06 $ 0.05 Diluted weighted average common shares 41,304 42,561
Exhibit 4.1 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months Ended June 30, 2021 (in thousands, except per share data) Stock-Based Acquired Assets Restructuring, Income Statement of Operations GAAP Compensation Amortization Transformation Taxes ADJUSTED Revenues $ 29,197 - - - - $ 29,197 Cost of revenues 12,844 (31 ) (17 ) (100 ) - 12,696 Gross profit 16,353 31 17 100 - 16,501 Gross Margin 56.0 % 56.5 % Operating expenses: Sales and marketing expenses 5,730 (131 ) (2 ) (73 ) - 5,524 General and administrative expenses 6,399 (969 ) (16 ) (1,108 ) - 4,306 Research and development expenses 2,701 (33 ) (11 ) (249 ) - 2,408 Amortization of intangible assets 1,465 - (1,465 ) - - - Total operating expenses 16,295 (1,133 ) (1,494 ) (1,430 ) - 12,238 Operating Expenses - % of Revenues 55.8 % 41.9 % Operating income 58 1,164 1,511 1,530 - 4,263 Operating Margin 0.2 % 14.6 % Other expense: Interest expense (377 ) - - - - (377 ) Other expense, net (313 ) - - - - (313 ) Total other expense (690 ) - - - - (690 ) (Loss) income before income taxes (632 ) 1,164 1,511 1,530 - 3,573 Income tax (benefit) expense (222 ) - - - 1,040 818 Net (loss) income $ (410 ) $ 1,164 $ 1,511 $ 1,530 $ (1,040 ) $ 2,755 (Loss) income per share $ (0.01 ) $ 0.06 Diluted weighted average common shares 40,152 43,425 Exhibit 4.2 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Six Months Ended June 30, 2022 (in thousands, except per share data) Settlement, Stock-Based Acquired Assets Restructuring, Income Statement of Operations GAAP Compensation Amortization Transformation Taxes ADJUSTED Revenues $ 57,986 - - - - $ 57,986 Cost of revenues 25,172 (88 ) (20 ) (157 ) - 24,907 Gross profit 32,814 88 20 157 - 33,079 Gross Margin 56.6 % 57.0 % Operating expenses: Sales and marketing expenses 13,274 (346 ) (3 ) (370 ) - 12,555 General and administrative expenses 12,306 (1,714 ) (30 ) (1,919 ) - 8,643 Research and development expenses 6,717 (114 ) (19 ) (127 ) - 6,457 Amortization of intangible assets 2,920 - (2,920 ) - - - Settlement of litigation, net 311 - - (311 ) - - Total operating expenses 35,528 (2,174 ) (2,972 ) (2,727 ) - 27,655 Operating Expenses - % of Revenues 61.3 % 47.7 % Operating (loss) income (2,714 ) 2,262 2,992 2,884 - 5,424 Operating Margin -4.7 % 9.4 % Other (expense) income: Interest expense (899 ) - - - - (899 ) Other income, net 16 - - - - 16 Total other expense (883 ) - - - - (883 ) (Loss) income before income taxes (3,597 ) 2,262 2,992 2,884 - 4,541 Income tax expense 848 - - - 165 1,013 Net (loss) income $ (4,445 ) $ 2,262 $ 2,992 $ 2,884 $ (165 ) $ 3,528 (Loss) income per share $ (0.11 ) $ 0.08 Diluted weighted average common shares 41,256 42,696
Exhibit 4.3 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Six Months Ended June 30, 2021 (in thousands, except per share data) Stock-Based Acquired Assets Restructuring, Income Statement of Operations GAAP Compensation Amortization Transformation Taxes ADJUSTED Revenues $ 56,186 - - - - $ 56,186 Cost of revenues 24,402 (51 ) (36 ) (153 ) - 24,162 Gross profit 31,784 51 36 153 - 32,024 Gross Margin 56.6 % 57.0 % Operating expenses: Sales and marketing expenses 11,116 (224 ) (4 ) (114 ) - 10,774 General and administrative expenses 12,732 (1,803 ) (33 ) (1,954 ) - 8,942 Research and development expenses 5,188 (54 ) (22 ) (294 ) - 4,818 Amortization of intangible assets 2,929 - (2,929 ) - - - Total operating expenses 31,965 (2,081 ) (2,988 ) (2,362 ) - 24,534 Operating Expenses - % of Revenues 56.9 % 43.7 % Operating income (181 ) 2,132 3,024 2,515 - 7,490 Operating Margin -0.3 % 13.3 % Other expense: Interest expense (788 ) - - - - (788 ) Other expense, net (347 ) - - - - (347 ) Total other expense (1,135 ) - - - - (1,135 ) (Loss) income before income taxes (1,316 ) 2,132 3,024 2,515 - 6,355 Income tax (benefit) expense (237 ) - - - 1,784 1,547 Net (loss) income $ (1,079 ) $ 2,132 $ 3,024 $ 2,515 $ (1,784 ) $ 4,808 (Loss) income per share $ (0.03 ) $ 0.11 Diluted weighted average common shares 39,960 42,954 Exhibit 5 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Operating income $ 3,998 $ 58 $ (2,714 ) $ (181 ) Stock-based compensation expense 1,239 1,164 2,262 2,132 Acquired asset amortization 1,488 1,511 2,992 3,024 Settlements, restructuring and transformation costs (3,668 ) 1,530 2,884 2,515 Adjusted operating income 3,057 4,263 5,424 7,490 Depreciation expense 376 446 758 891 Adjusted EBITDA $ 3,433 $ 4,709 $ 6,182 $ 8,381 
