- Q3 Revenues of
$25.4 million - Q3 Gross Margin of 58.1%
- Q3 GAAP operating loss of
$0.9 million, adjusted operating income$1.8 million - Continued strong operating cash flow drove debt reduction of
$8.3 million through Q3
Green continued, “We remain focused on growth through new product innovations and expanding our reach to CRO, pharma and biotech customers into industrial applications. We will be showcasing our latest innovations at next week’s
($ in millions except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||
Revenues | $ | 25.4 | $ | 26.9 | $ | 84.1 | $ | 84.9 | ||||
Gross Margin | 58.1 | % | 45.2 | % | 59.2 | % | 53.0 | % | ||||
Operating (Loss) Income (GAAP) | $ | (0.9 | ) | $ | (3.8 | ) | $ | 1.6 | $ | (6.5 | ) | |
Adjusted Operating Income | $ | 1.8 | $ | 0.7 | $ | 9.8 | $ | 6.1 | ||||
Net Loss (GAAP) | $ | (1.2 | ) | $ | (3.4 | ) | $ | (1.6 | ) | $ | (7.9 | ) |
Diluted Loss Per Share (GAAP) | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.19 | ) |
Diluted Adjusted Earnings (Loss) Per Share | $ | 0.01 | $ | (0.01 | ) | $ | 0.11 | $ | 0.08 | |||
Adjusted EBITDA | $ | 2.2 | $ | 1.0 | $ | 10.9 | $ | 7.1 | ||||
Adjusted EBITDA Margin | 8.9 | % | 3.9 | % | 13.0 | % | 8.4 | % | ||||
Cash Flow provided by (used in) Operations | $ | 4.4 | $ | 0.6 | $ | 9.7 | $ | (1.5 | ) | |||
Debt, including unamortized deferred financing costs | $ | 38.7 | $ | 49.3 | $ | 38.7 | $ | 49.3 | ||||
Net Debt (non-GAAP) | $ | 34.0 | $ | 45.0 | $ | 34.0 | $ | 45.0 |
Third Quarter 2023 Highlights
For the third quarter of fiscal 2023, the Company reported revenues of
Net loss for the third quarter of 2023 was
Cash provided by operations for the third quarter of 2023 was
Nine Months ended September 30, 2023 Highlights
For the nine months ended
Net loss for the nine months ended
Cash provided by operations was
2023 Updated Guidance
With consideration of the headwinds in
This press release includes certain financial information presented on an adjusted, or non-GAAP, basis. For additional information on the non-GAAP financial measures included in this press release, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
Webcast and Conference Call Details
In conjunction with this announcement,
Analysts 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 one or more of adjusted operating income (loss), adjusted net income (loss), adjusted EBITDA, adjusted EBITDA margin, diluted adjusted earnings (loss) per share, foreign exchange adjusted revenue, net debt and net leverage ratio. 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 resulting from items that we do not believe are representative of the underlying operations of the business. Items excluded include stock-based compensation, amortization of intangibles related to acquisitions, litigation settlement, restructuring and other costs, unrealized gain/loss on equity securities, income taxes, and. the tax impact of the reconciling items. Management believes that this non-GAAP financial information is important in comparing current results with prior period results and is useful to investors and financial analysts in assessing the Company’s operating performance.
Non-GAAP historical financial statement information included herein is accompanied by a reconciliation to the nearest corresponding GAAP measure which is included as exhibits below in this press release.
With respect to forward-looking measures, we provide an outlook for adjusted EBITDA margin and net leverage ratio. Many of the items that we exclude from these forward-looking measure calculations are less capable of being controlled or reliably predicted by management. These items could cause the forward-looking measures presented in our outlook statements to vary materially from our GAAP results.
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
For more information, please visit our website at www.harvardbioscience.com.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions or statements that do not relate to historical matters. Forward-looking statements include, but are not limited to, information concerning expected future financial and operational performance including revenues, gross margins, earnings, cash and debt position, growth and the introduction of new products, and the strength of the Company’s market position and business model. Forward-looking statements are not guarantees of future performance and involve known and unknown uncertainties, risks, assumptions, and contingencies, many of which are outside the Company’s control. Risks and other factors that could cause the Company’s actual results to differ materially from those described its forward-looking statements include those described in the “Risk Factors” section of the Company’s most recently filed Annual Report on Form 10-K as well as in the Company’s other filings with the
Investor Inquiries:
Investor Relations
investors@harvardbioscience.com
(508) 893-3120
Consolidated Statements of Operations | ||||||||||||||||||
(unaudited, in thousands, except per share data) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
Revenues | $ | 25,363 | $ | 26,922 | $ | 84,097 | $ | 84,908 | ||||||||||
Cost of revenues | 10,636 | 14,750 | 34,351 | 39,922 | ||||||||||||||
Gross profit | 14,727 | 12,172 | 49,746 | 44,986 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Sales and marketing expenses | 5,732 | 5,819 | 17,888 | 19,093 | ||||||||||||||
General and administrative expenses | 5,807 | 6,324 | 17,494 | 18,630 | ||||||||||||||
Research and development expenses | 2,760 | 2,763 | 8,614 | 9,480 | ||||||||||||||
Amortization of intangible assets | 1,361 | 1,572 | 4,138 | 4,492 | ||||||||||||||
Litigation settlement | - | (544 | ) | - | (233 | ) | ||||||||||||
Total operating expenses | 15,660 | 15,934 | 48,134 | 51,462 | ||||||||||||||
Operating (loss) income | (933 | ) | (3,762 | ) | 1,612 | (6,476 | ) | |||||||||||
Other income (expense): | ||||||||||||||||||
Unrealized gain (loss) on equity securities | 1,208 | - | (373 | ) | - | |||||||||||||
Interest expense | (882 | ) | (749 | ) | (2,797 | ) | (1,648 | ) | ||||||||||
Other income (expense), net | 45 | (179 | ) | 105 | (163 | ) | ||||||||||||
Total other income (expense) | 371 | (928 | ) | (3,065 | ) | (1,811 | ) | |||||||||||
Loss before income taxes | (562 | ) | (4,690 | ) | (1,453 | ) | (8,287 | ) | ||||||||||
Income tax expense (benefit) | 677 | (1,285 | ) | 144 | (437 | ) | ||||||||||||
Net loss | $ | (1,239 | ) | $ | (3,405 | ) | $ | (1,597 | ) | $ | (7,850 | ) | ||||||
Loss per common share: | ||||||||||||||||||
Basic and diluted | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.19 | ) | ||||||
Weighted-average common shares: | ||||||||||||||||||
Basic and diluted | 42,688 | 41,637 | 42,345 | 41,353 | ||||||||||||||
Condensed Consolidated Balance Sheets | |||||||
(unaudited, in thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 5,340 | $ | 4,508 | |||
Accounts receivable, net | 14,983 | 16,705 | |||||
Inventories | 25,818 | 26,439 | |||||
Other current assets | 4,345 | 3,472 | |||||
Total current assets | 50,486 | 51,124 | |||||
Property, plant and equipment | 3,358 | 3,366 | |||||
Goodwill and other intangibles | 73,317 | 77,274 | |||||
Other long-term assets | 12,574 | 13,596 | |||||
Total assets | $ | 139,735 | $ | 145,360 | |||
Liabilities and Stockholders' Equity | |||||||
Current portion, long-term debt | $ | 3,470 | $ | 3,811 | |||
Other current liabilities | 20,735 | 19,438 | |||||
Total current liabilities | 24,205 | 23,249 | |||||
Long-term debt, net | 35,273 | 43,013 | |||||
Other long-term liabilities | 5,971 | 6,878 | |||||
Stockholders’ equity | 74,286 | 72,220 | |||||
Total liabilities and stockholders’ equity | $ | 139,735 | $ | 145,360 | |||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net loss | $ | (1,239 | ) | $ | (3,405 | ) | $ | (1,597 | ) | $ | (7,850 | ) | ||||||
Adjustments to operating cash flows | 2,010 | 1,945 | 9,111 | 5,165 | ||||||||||||||
Changes in operating assets and liabilities | 3,590 | 2,109 | 2,211 | 1,158 | ||||||||||||||
Net cash provided by (used in) operating activities | 4,361 | 649 | 9,725 | (1,527 | ) | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Additions to property, plant and equipment | (217 | ) | (442 | ) | (958 | ) | (1,355 | ) | ||||||||||
Acquisition of intangible assets | (184 | ) | - | (292 | ) | - | ||||||||||||
Proceeds from sale of product line | - | - | 512 | - | ||||||||||||||
Net cash used in investing activities | (401 | ) | (442 | ) | (738 | ) | (1,355 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Borrowing from revolving line of credit | 1,000 | 2,500 | 3,500 | 7,800 | ||||||||||||||
Repayment of revolving line of credit | (3,000 | ) | (1,050 | ) | (8,450 | ) | (4,650 | ) | ||||||||||
Repayment of term debt | (750 | ) | (750 | ) | (3,341 | ) | (2,436 | ) | ||||||||||
Proceeds from exercise of employee stock options and purchases | - | 64 | 724 | 346 | ||||||||||||||
Taxes paid related to net share settlement of equity awards | - | (387 | ) | (451 | ) | (1,167 | ) | |||||||||||
Net cash used in (provided by) financing activities | (2,750 | ) | 377 | (8,018 | ) | (107 | ) | |||||||||||
Effect of exchange rate changes on cash | (211 | ) | 337 | (137 | ) | 312 | ||||||||||||
Increase (decrease) in cash and cash equivalents | 999 | 921 | 832 | (2,677 | ) | |||||||||||||
Cash and cash equivalents at the beginning of period | 4,341 | 4,223 | 4,508 | 7,821 | ||||||||||||||
Cash and cash equivalents at the end of period | $ | 5,340 | $ | 5,144 | $ | 5,340 | $ | 5,144 | ||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
GAAP operating (loss) income | $ | (933 | ) | $ | (3,762 | ) | $ | 1,612 | $ | (6,476 | ) | |||||||||
Stock-based compensation | 1,363 | 1,139 | 3,618 | 3,401 | ||||||||||||||||
Acquired asset amortization | 1,369 | 1,596 | 4,167 | 4,588 | ||||||||||||||||
Restructuring & other | 42 | 2,273 | 450 | 4,924 | ||||||||||||||||
Settlement | - | (544 | ) | - | (311 | ) | ||||||||||||||
Adjusted operating income | $ | 1,841 | $ | 702 | $ | 9,847 | $ | 6,126 | ||||||||||||
Operating margin | -3.7 | % | -14.0 | % | 1.9 | % | -7.6 | % | ||||||||||||
Adjusted operating margin | 7.3 | % | 2.6 | % | 11.7 | % | 7.2 | % | ||||||||||||
GAAP net loss | $ | (1,239 | ) | $ | (3,405 | ) | $ | (1,597 | ) | $ | (7,850 | ) | ||||||||
Stock-based compensation | 1,363 | 1,139 | 3,618 | 3,401 | ||||||||||||||||
Acquired asset amortization | 1,369 | 1,596 | 4,167 | 4,588 | ||||||||||||||||
Restructuring & other | 42 | 2,193 | 46 | 4,844 | ||||||||||||||||
Settlement | - | (544 | ) | - | (311 | ) | ||||||||||||||
Unrealized (gain) loss on equity securities | (1,208 | ) | - | 374 | - | |||||||||||||||
Income taxes | 196 | (1,244 | ) | (1,919 | ) | (1,409 | ) | |||||||||||||
Adjusted net income (loss) | 523 | (265 | ) | 4,689 | 3,263 | |||||||||||||||
Depreciation | 405 | 341 | 1,054 | 1,024 | ||||||||||||||||
Interest and other expense, net | 837 | 1,006 | 3,095 | 1,889 | ||||||||||||||||
Adjusted income taxes (1) | 481 | (41 | ) | 2,063 | 972 | |||||||||||||||
Adjusted EBITDA | $ | 2,246 | $ | 1,041 | $ | 10,901 | $ | 7,148 | ||||||||||||
Adjusted EBITDA margin | 8.9 | % | 3.9 | % | 13.0 | % | 8.4 | % | ||||||||||||
Diluted loss per share (GAAP) | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.19 | ) | ||||||||
Diluted adjusted earnings (loss) per share | $ | 0.01 | $ | (0.01 | ) | $ | 0.11 | $ | 0.08 | |||||||||||
Weighted-average common shares: | ||||||||||||||||||||
Diluted GAAP | 42,688 | 41,637 | 42,345 | 41,353 | ||||||||||||||||
Diluted Adjusted | 44,563 | 41,637 | 44,195 | 42,665 | ||||||||||||||||
Debt, including unamortized deferred financing costs | $ | 38,743 | $ | 41,423 | $ | 46,824 | $ | 49,254 | ||||||||||||
Unamortized deferred financing costs | 630 | 700 | 840 | 910 | ||||||||||||||||
Cash and cash equivalents | (5,340 | ) | (4,324 | ) | (4,508 | ) | (5,144 | ) | ||||||||||||
Net debt | $ | 34,033 | $ | 37,799 | $ | 43,156 | $ | 45,020 | ||||||||||||
(1) Adjusted income taxes includes the tax effect of adjusting for the reconciling items using the tax rates in the jurisdictions in which the reconciling items arise. | ||||||||||||||||||||
Net leverage ratio is defined herein as net debt divided by our trailing twelve months adjusted EBITDA. | ||||||||||||||||||||
Source:
2023 GlobeNewswire, Inc., source