Market Overview

Bausch Health Companies Inc. Announces Third-Quarter 2019 Results and Raises Full-Year Revenue and Adjusted EBITDA (non-GAAP) Guidance Ranges

Share:

LAVAL, Quebec, Nov. 4, 2019 /PRNewswire/ --

  • Third-Quarter 2019 Financial Results
    • Revenues of $2.209 Billion
    • GAAP Net Loss of $49 Million
    • Adjusted EBITDA (non-GAAP)1 of $942 Million
    • GAAP Cash Generated from Operations of $515 Million
  • Delivered Total Company Reported Revenue Growth of 3% and Organic Revenue Growth1,2 of 4% Compared to the Third Quarter of 2018
    • Bausch + Lomb/International Segment Delivered 12th Consecutive Quarter of Organic Revenue Growth1,2
    • Salix Segment Reported Revenue Increased by 20% Compared to the Third Quarter of 2018
  • Raised Full-Year 2019 Guidance Ranges

Bausch Health Companies Inc. (TSX:BHC) ("Bausch Health" or the "Company" or "we") today announced its third-quarter 2019 financial results.

"In the third quarter, Bausch Health delivered another strong quarter with both reported and organic revenue growth1,2, demonstrating that our efforts to grow our core businesses are continuing to gain traction. In addition to organic revenue growth1,2 in both the Bausch + Lomb/International and Salix segments due to higher revenues in several of our durable, established brands, such as XIFAXAN®, BioTrue® ONEday and Bausch + Lomb ULTRA®, our performance was also strengthened by the success of newer products, such as LUMIFY® and Thermage® FLX," said Joseph C. Papa, chairman and CEO, Bausch Health. "Additionally, we are excited by the potential we see from the early days of the launch of DUOBRII®, the newest product in our dermatology portfolio."

Company Highlights

Executing on Core Businesses and Advancing Pipeline

  • The Bausch + Lomb/International segment comprised approximately 53% of the Company's reported revenue in the third quarter of 2019
    • Increased reported revenue in the Bausch + Lomb/International segment by 2% compared to the third quarter of 2018; revenue in this segment grew organically1,2 by 5% compared to the third quarter of 2018; growth was primarily driven by the Global Consumer, International Rx and Global Vision Care business units
    • Delivered 12th consecutive quarter of organic revenue growth1,2
    • Launched Ocuvite® Eye Performance vitamins in the United States, which are formulated to help protect the eye from digital device blue light and UV exposure from the sun
  • The Salix segment comprised approximately 25% of the Company's reported revenue in the third quarter of 2019
    • Increased reported revenue in the Salix segment by 20% compared to the third quarter of 2018
    • Increased reported revenue of XIFAXAN® by 24% compared to the third quarter of 2018
  • The Ortho Dermatologics segment comprised approximately 7% of the Company's reported revenue in the third quarter of 2019
    • The U.S. Food and Drug Administration accepted the New Drug Application for ARAZLO™3 (IDP-123) Lotion with a PDUFA action date of Dec. 22, 2019; if approved, ARAZLO™3 will be the first tazarotene acne treatment available in a lotion form
    • Expanded the cash-pay prescription program, Dermatology.com, to all Walgreens U.S. retail pharmacy locations
    • Reported revenues in the Global Solta business unit increased by 62% compared to the third quarter of 2018, driven by continued strong demand of Thermage® FLX following the launch in the Asia Pacific region
  • Released annual Corporate Social Responsibility report

Strategic Capital Allocation and Debt Management

  • Increased Research and Development (R&D) by approximately 15%, or $16 million, compared to the third quarter of 2018
  • Repaid debt by approximately $450 million in the third quarter of 2019, including the net impact of activity under our revolving credit facility

Third-Quarter 2019 Revenue Performance
Total reported revenues were $2.209 billion for the third quarter of 2019, as compared to $2.136 billion in the third quarter of 2018, an increase of $73 million, or 3%. Excluding the unfavorable impact of foreign exchange of $15 million, the impact of a 2019 acquisition of $14 million and the impact of divestitures and discontinuations of $13 million, revenue grew organically1,2 by 4% compared to the third quarter of 2018, driven by organic growth2 in the Salix and Bausch + Lomb/International segments.

Revenues by segment were as follows:



Three Months Ended






Change at






September 30


Reported


Reported


Constant


Organic 


(in millions)


2019


2018


Change


Change


 Currency4


Change1,2


Bausch + Lomb/International


$1,175


$1,147


$28


2%


4%


5%


Salix


$551


$460


$91


20%


20%


18%


Ortho Dermatologics


$147


$176


($29)


(16%)


(16%)


(16%)


Diversified Products


$336


$353


($17)


(5%)


(5%)


(5%)


Total Revenues


$2,209


$2,136


$73


3%


4%


4%


Bausch + Lomb/International Segment
Bausch + Lomb/International segment revenues were $1.175 billion for the third quarter of 2019, as compared to $1.147 billion for the third quarter of 2018, an increase of $28 million, or 2%. Excluding the unfavorable impact of foreign exchange of $15 million and the impact of divestitures and discontinuations of $9 million, the Bausch + Lomb/International segment grew organically1,2 by approximately 5% compared to the third quarter of 2018. The increase was primarily driven by growth in the Global Consumer, International Rx and Global Vision Care business units.

Salix Segment
Salix segment revenues were $551 million for the third quarter of 2019, as compared to $460 million for the third quarter of 2018, an increase of $91 million, or 20%. The increase was primarily driven by XIFAXAN®, which grew 24% as compared to the third quarter of 2018.

Ortho Dermatologics Segment
Ortho Dermatologics segment revenues were $147 million for the third quarter of 2019, as compared to $176 million for the third quarter of 2018, a decrease of $29 million, or 16%, due to lower volumes primarily driven by the loss of exclusivity of ZOVIRAX®, SOLODYN® and ELIDEL®, partially offset by organic revenue growth2 in the Global Solta business unit and from new product launches in the Ortho Dermatologics business unit.

Diversified Products Segment
Diversified Products segment revenues were $336 million for the third quarter of 2019, as compared to $353 million for the third quarter of 2018, a decrease of $17 million, or 5%. The decrease was primarily attributable to the previously reported loss of exclusivity for a basket of products.

Operating Income
Operating income was $329 million for the third quarter of 2019, as compared to an operating income of $117 million for the third quarter of 2018, an increase of $212 million. The increase in operating results for the third quarter of 2019 was primarily driven by a decrease in amortization and impairments and the increase in reported revenues and higher gross margins in 2019 as compared to 2018, offset by increased Selling, general and administrative (SG&A) expenses and R&D expenses.

Net Loss
Net loss for

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com