Highlights:
- Full-year testing volume grew 35% year-over-year, or 18% ex-SneakPeek® volume.
- Full-year 2023 revenue of
$753 million , grew 11% year-over-year driven by Prenatal (30%, 15% ex-SneakPeek), Prolaris (21%), Pharmacogenomics (9%), and Hereditary Cancer (7%). - Fourth quarter GAAP operating expenses of
$166 million and adjusted operating expenses of$130 million , each down 6% year-over-year. - Fourth quarter GAAP cash flow from operations was
$(55) million ; adjusted cash flow from operations was$14 million , an increase of$10 million year-over-year. - Raised net proceeds of
$118 million in equity offering inNovember 2023 . - In
February 2024 ,Myriad Genetics acquired select assets from Intermountain Precision Genomics ("IPG"), including the Precise™ Tumor Test, the Precise Liquid Test, and IPG’s CLIA-certified laboratory. - Raising 2024 revenue guidance to
$820 -$840 million and introducing 2024 adjusted EPS guidance of$0.00 -$0.05 1.
______________
1 The company does not forecast GAAP EPS because it cannot predict certain elements that are included in reported GAAP results. Please see below under “Financial Guidance” for a full explanation.
“Myriad Genetics took another important step forward in 2023 as we generated double digit revenue growth over the prior year and achieved positive adjusted EPS in the fourth quarter. This achievement is the result of our team’s hard work and focus on the needs of our patients and the healthcare providers who serve them,” said
Financial and Operational Highlights:
- Test volumes of approximately 360,000 in the fourth quarter of 2023 increased 20% year-over-year and 15% year-over-year excluding SneakPeek. Hereditary cancer and pharmacogenomics volumes grew 8% and 21%, respectively, in the fourth quarter of 2023 compared to the fourth quarter of 2022.
- The following table summarizes year-over-year volume changes in the company's core product categories:
Three months ended | Year ended | ||||||||
2023 | 2023 | ||||||||
Product volumes: | |||||||||
Hereditary cancer | 8 | % | 17 | % | |||||
Tumor profiling | (2)% | 2 | % | ||||||
Prenatal | 29 | % | 62 | % | |||||
Prenatal, ex-SneakPeek | 17 | % | 15 | % | |||||
Pharmacogenomics | 21 | % | 24 | % | |||||
Total | 20 | % | 35 | % | |||||
Total, ex-SneakPeek | 15 | % | 18 | % | |||||
- The following table summarizes year-over-year revenue changes in the company's core product categories:
Three months ended | Twelve months ended | ||||||||||||||||
(in millions, except percentages) | % Change | % Change | |||||||||||||||
Product revenues*: | |||||||||||||||||
Hereditary cancer | $ | 88.9 | $ | 84.9 | 5 | % | $ | 327.8 | $ | 305.5 | 7 | % | |||||
Tumor profiling | 32.1 | 31.7 | 1 | % | 135.6 | 128.6 | 5 | % | |||||||||
Prenatal | 40.0 | 29.1 | 37 | % | 151.3 | 116.4 | 30 | % | |||||||||
Pharmacogenomics | 35.6 | 32.1 | 11 | % | 138.5 | 127.6 | 9 | % | |||||||||
Total | $ | 196.6 | $ | 177.8 | 11 | % | $ | 753.2 | $ | 678.1 | 11 | % | |||||
*This table includes revenue from the company's core products and excludes the |
- GAAP gross margins of 68.6% in the fourth quarter of 2023 decreased 100 basis points year-over-year, reflecting changes in product and volume mix. Adjusted gross margins in the fourth quarter of 2023 were 69.0%, a decrease of 110 basis points year-over-year.
- GAAP operating expenses in the fourth quarter of 2023 were
$166.4 million , decreasing$9.7 million year-over-year. Adjusted operating expenses in the fourth quarter of 2023 decreased$8.6 million year-over-year to$130.0 million , reflecting incremental cost control measures during the fourth quarter 2023. - GAAP operating loss in the fourth quarter of 2023 was
$31.4 million , improving$20.8 million year-over-year; adjusted operating income in the fourth quarter of 2023 was$5.7 million , improving$19.6 million year-over-year from adjusted operating loss of$13.9 million in the fourth quarter of 2022. - Fourth quarter 2023 GAAP cash flow from operations was
$(55) million ; adjusted cash flow from operations in the fourth quarter of 2023 was$14 million , an increase of$10 million year-over-year. Capital expenditures and capitalization of internal use software costs were$14 million in the fourth quarter 2023 and are expected to moderate in 2024. - Ended the fourth quarter of 2023 with
$140.9 million in cash, cash equivalents and marketable investment securities as compared to$86.3 million at the beginning of the quarter. The increase was driven primarily by theNovember 2023 equity offering, partly offset by legal settlement payments and ongoing capital expenditures.
Business Performance and Highlights:
Oncology
The Oncology business delivered revenue of
- Fourth quarter 2023 hereditary cancer testing volumes and revenue in Oncology grew 7% and 9% year-over-year, respectively. In addition, Prolaris fourth quarter 2023 revenue grew 14% year-over-year.
- In
February 2024 ,Myriad Genetics acquired select assets from IPG's laboratory business, including the Precise™ Tumor Test, the Precise Liquid Test, and a CLIA-certified laboratory. With this acquisition,Myriad Genetics deepened its commitment to advancing precision oncology care by providing comprehensive genomic profiling options to providers that can help guide clinical care and improve patient outcomes. - In
January 2024 ,Myriad Genetics appointedGeorge Daneker Jr ., MD, as President & Chief Clinical Officer of Oncology, effectiveMarch 18, 2024 . - In
January 2024 , theAmerican Society of Clinical Oncology (ASCO)—Society of Surgical Oncology (SSO) updated and expanded its guidelines regarding germline testing in patients with breast cancer. - Launched the Myriad Collaborative Research Registry™ (MCRR) that includes data across germline and tumor testing results from
Myriad Genetics' cancer products on more than one million patients. With this sizeable, well curated data, MCRR provides a powerful interface for clinicians and researchers to access and assess germline and tumor genetics data to ultimately advance patient care.
Women’s Health
The Women’s Health business delivered revenue of
- Fourth quarter 2023 hereditary cancer testing volumes in
Women's Health grew 10% year-over-year and were higher than any prior quarter in 2023. - Excluding the contribution from SneakPeek, prenatal testing volumes in the fourth quarter of 2023 grew 17% year-over-year.
Pharmacogenomics
In the pharmacogenomics category, the GeneSight test recorded revenue of
- Fourth quarter 2023 GeneSight testing volumes grew 21% year-over-year.
- In the fourth quarter of 2023,
Myriad Genetics added over 4,000 clinicians who ordered GeneSight for the first time. - In the fourth quarter of 2023,
Myriad Genetics participated in a number of clinical conferences, such asAmerican College of Neuropsychopharmacology (ACNP).
Financial Guidance
Below is a table summarizing
(in millions, except per share amounts and percentages) | FY 2024 | FY 2024 Comments | |||
Revenue | Raised 2024 revenue range by Q1’24 revenue expected to grow at a mid-to-high single digit percentage rate year-over-year; and this growth rate is expected to accelerate throughout the rest of the year. | ||||
Gross margin % | 69.5% - 70.5% | Q1’24 | |||
Adjusted OPEX | |||||
Adjusted EBITDA** | Introducing adjusted EBITDA in the financial guidance table to provide additional insights into earnings trajectory. | ||||
Adjusted EPS*** | Q1’24 adjusted EPS expected to be negative reflecting seasonality. |
* Assumes currency rates as of
** Adjusted EBITDA is defined as Net Income (loss) plus income tax expense (benefit), total other income (expense), non-cash operating expenses, such as amortization of intangible assets, depreciation, impairment of long-lived assets, and share-based compensation expense, and one-time expenses such as expenses from real estate optimization initiatives, transformation initiatives, legal settlements, and divestitures and acquisitions.
*** Full-year 2024 adjusted EPS is based on a 90 million share count.
These projections are forward-looking statements and are subject to the risks summarized in the safe harbor statement at the end of this press release.
Conference Call and Webcast
A conference call will be held today,
About
Myriad, the Myriad logo, BRACAnalysis, BRACAnalysis CDx, Colaris, ColarisAP, MyRisk, Myriad myRisk, MyRisk Hereditary Cancer, myChoice, Tumor BRACAnalysis CDx, MyChoice CDx, Prequel, Prequel with Amplify, Amplify, Foresight, Foresight Universal Plus, Precise Tumor, Precise Oncology Solutions, Precise Liquid, Precise MRD, FirstGene, SneakPeek, SneakPeek Early Gender DNA Test, SneakPeek Snap, Urosuite, Mygenehistory, Health.Illuminated., RiskScore, Prolaris, GeneSight, and EndoPredict are registered trademarks or trademarks of
Revenue by Product (Unaudited):
Three months ended | |||||||||||||
(in millions, except percentages) | 2023 | 2022 | |||||||||||
WH | ONC | PGx | Other | Total | WH | ONC | PGx | Other | Total | % Change | |||
Hereditary Cancer | $— | $— | $— | $— | 5% | ||||||||
Tumor Profiling | — | 32.1 | — | — | 32.1 | — | 31.7 | — | — | 31.7 | 1% | ||
Prenatal | 40.0 | — | — | — | 40.0 | 29.1 | — | — | — | 29.1 | 37% | ||
Pharmacogenomics | — | — | 35.6 | — | 35.6 | — | — | 32.1 | — | 32.1 | 11% | ||
Total Revenue | $— | $— | 11% |
Year ended | |||||||||||||
(in millions, except percentages) | 2023 | 2022 | |||||||||||
WH | ONC | PGx | Other | Total | WH | ONC | PGx | Other | Total | % Change | |||
Hereditary Cancer | $— | $— | $— | $— | 7% | ||||||||
Tumor Profiling | — | 135.6 | — | — | 135.6 | — | 128.6 | — | — | 128.6 | 5% | ||
Prenatal | 151.3 | — | — | — | 151.3 | 116.4 | — | — | — | 116.4 | 30% | ||
Pharmacogenomics | — | — | 138.5 | — | 138.5 | — | — | 127.6 | — | 127.6 | 9% | ||
Other | — | — | — | — | — | — | — | — | 0.3 | 0.3 | (100)% | ||
Total Revenue | $— | 11% |
Business Units:
WH = Women’s Health
ONC = Oncology
PGx = Pharmacogenomics
Product Categories:
Hereditary Cancer – MyRisk, BRACAnalysis, BRACAnalysis CDx
Tumor Profiling – myChoice CDx, Prolaris, EndoPredict
Prenatal – Foresight, Prequel, SneakPeek
Pharmacogenomics – GeneSight
AND SUBSIDIARIES Consolidated Statements of Operations (in millions, except per share amounts) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Testing revenue | $ | 196.6 | $ | 177.8 | $ | 753.2 | $ | 678.4 | |||||||
Costs and expenses: | |||||||||||||||
Cost of testing revenue | 61.6 | 53.9 | 236.2 | 202.0 | |||||||||||
Research and development expense | 21.0 | 23.4 | 88.7 | 85.4 | |||||||||||
Selling, general, and administrative expense | 145.4 | 146.5 | 572.9 | 514.7 | |||||||||||
Legal settlements | — | — | 112.8 | — | |||||||||||
— | 6.2 | — | 16.9 | ||||||||||||
Total costs and expenses | 228.0 | 230.0 | 1,010.6 | 819.0 | |||||||||||
Operating loss | (31.4 | ) | (52.2 | ) | (257.4 | ) | (140.6 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest income | 0.7 | 1.0 | 2.5 | 2.6 | |||||||||||
Interest expense | (0.9 | ) | (0.9 | ) | (2.9 | ) | (3.2 | ) | |||||||
Other | (0.7 | ) | — | (4.4 | ) | 0.6 | |||||||||
Total other income (expense) | (0.9 | ) | 0.1 | (4.8 | ) | — | |||||||||
Loss before income tax | (32.3 | ) | (52.1 | ) | (262.2 | ) | (140.6 | ) | |||||||
Income tax expense (benefit) | (1.1 | ) | (9.8 | ) | 1.1 | (28.6 | ) | ||||||||
Net loss | $ | (31.2 | ) | $ | (42.3 | ) | $ | (263.3 | ) | $ | (112.0 | ) | |||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.36 | ) | $ | (0.52 | ) | $ | (3.18 | ) | $ | (1.39 | ) | |||
Weighted average shares outstanding: | |||||||||||||||
Basic and diluted | 86.1 | 81.5 | 82.8 | 80.6 |
AND SUBSIDIARIES Consolidated Balance Sheets (in millions, except per share information) | |||||||
2023 | 2022 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 132.1 | $ | 56.9 | |||
Marketable investment securities | 8.8 | 58.0 | |||||
Trade accounts receivable | 114.3 | 101.6 | |||||
Inventory | 22.0 | 20.1 | |||||
Prepaid taxes | 17.0 | 17.6 | |||||
Prepaid expenses and other current assets | 19.4 | 20.4 | |||||
Total current assets | 313.6 | 274.6 | |||||
Operating lease right-of-use assets | 61.6 | 103.9 | |||||
Long-term marketable investment securities | — | 54.8 | |||||
Property, plant and equipment, net | 119.0 | 83.4 | |||||
Intangibles, net | 349.5 | 379.7 | |||||
287.4 | 286.8 | ||||||
Other assets | 15.4 | 15.5 | |||||
Total assets | $ | 1,146.5 | $ | 1,198.7 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | 25.8 | 28.8 | |||||
Accrued liabilities | 113.9 | 94.3 | |||||
Current maturities of operating lease liabilities | 16.2 | 14.1 | |||||
Total current liabilities | 155.9 | 137.2 | |||||
Unrecognized tax benefits | 30.2 | 26.8 | |||||
Long-term debt | 38.5 | — | |||||
Noncurrent operating lease liabilities | 97.4 | 130.9 | |||||
Other long-term liabilities | 41.3 | 18.0 | |||||
Total liabilities | 363.3 | 312.9 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock, | 0.9 | 0.8 | |||||
Additional paid-in capital | 1,415.5 | 1,260.1 | |||||
Accumulated other comprehensive loss | (3.7 | ) | (8.9 | ) | |||
Accumulated deficit | (629.5 | ) | (366.2 | ) | |||
Total stockholders' equity | 783.2 | 885.8 | |||||
Total liabilities and stockholders’ equity | $ | 1,146.5 | $ | 1,198.7 |
AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in millions) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net cash used in operating activities | $ | (54.7 | ) | $ | (7.3 | ) | $ | (110.9 | ) | $ | (106.3 | ) | |||
Net cash provided by (used in) investing activities | (12.0 | ) | (35.6 | ) | 31.9 | (77.5 | ) | ||||||||
Net cash provided by (used in) financing activities | 121.9 | (2.1 | ) | 152.9 | (8.0 | ) | |||||||||
Effect of foreign exchange rates on cash, cash equivalents, and restricted cash | 0.7 | 0.7 | 0.6 | (0.6 | ) | ||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 55.9 | (44.3 | ) | 74.5 | (192.4 | ) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of the period | 85.0 | 110.7 | 66.4 | 258.8 | |||||||||||
Cash, cash equivalents, and restricted cash at end of the period | $ | 140.9 | $ | 66.4 | $ | 140.9 | $ | 66.4 |
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including the company's first quarter and fiscal year 2024 financial guidance, and statements relating to the company's continuing investment in
Reconciliation of Revenue to Revenue Excluding Divested Businesses for the Three Months and Year ended
(unaudited data in millions)
Three months ended | Year ended | |||||||||||||
Revenue Excluding Divested Businesses | ||||||||||||||
Revenue | $ | 196.6 | $ | 177.8 | $ | 753.2 | $ | 678.4 | ||||||
Autoimmune Revenues | — | — | — | (0.3 | ) | |||||||||
Revenue Excluding Divested Businesses | $ | 196.6 | $ | 177.8 | $ | 753.2 | $ | 678.1 |
Statement regarding use of non-GAAP financial measures
In this press release, the company’s financial results and financial guidance are provided in accordance with accounting principles generally accepted in
The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
The company does not forecast GAAP earnings per share because it cannot predict certain elements that are included in reported GAAP results. Please see above under “Financial Guidance” for a full explanation.
Reconciliation of GAAP to Non-GAAP Financial Measures
for the Three Months and Year ended
(unaudited data in millions, except per share amounts)
Three months ended | Year ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Adjusted Gross Margin | |||||||||||||||
GAAP Gross Profit (1) | $ | 135.0 | $ | 123.9 | $ | 517.0 | $ | 476.4 | |||||||
Equity compensation | 0.3 | 0.4 | 1.4 | 1.4 | |||||||||||
Acquisition - amortization of intangible assets | 0.4 | 0.2 | 1.4 | 0.2 | |||||||||||
Acquisition-related costs | — | 0.1 | — | 0.1 | |||||||||||
Transformation initiatives | — | — | 0.2 | — | |||||||||||
Adjusted Gross Profit | $ | 135.7 | $ | 124.6 | $ | 520.0 | $ | 478.1 | |||||||
Adjusted Gross Margin | 69.0% | 70.1% | 69.0% | 70.5% | |||||||||||
(1) Consists of total revenues less cost of testing revenue and cost of other revenue from the Consolidated Statements of Operations. | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Adjusted Operating Expenses | |||||||||||||||
GAAP Operating Expenses (1) | $ | 166.4 | $ | 176.1 | $ | 774.4 | $ | 617.0 | |||||||
Acquisition - amortization of intangible assets | (10.3 | ) | (10.3 | ) | (41.3 | ) | (40.7 | ) | |||||||
— | (6.1 | ) | — | (16.8 | ) | ||||||||||
Equity compensation | (10.0 | ) | (7.8 | ) | (39.2 | ) | (36.5 | ) | |||||||
Real estate optimization | (13.0 | ) | (1.9 | ) | (27.0 | ) | (3.7 | ) | |||||||
Transformation initiatives | — | (3.7 | ) | (6.6 | ) | (14.1 | ) | ||||||||
Acquisition-related costs | — | (4.8 | ) | — | (5.0 | ) | |||||||||
Legal charges, net of insurance reimbursement | (1.6 | ) | (1.5 | ) | (114.9 | ) | 11.4 | ||||||||
Other adjustments | (1.5 | ) | (1.4 | ) | 0.1 | (0.7 | ) | ||||||||
Adjusted Operating Expenses | $ | 130.0 | $ | 138.6 | $ | 545.5 | $ | 510.9 | |||||||
(1) Consists of research and development expense, selling, general, and administrative expense, and goodwill and long-lived asset impairment charges from the Consolidated Statements of Operations. | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Adjusted Operating Income (Loss) | |||||||||||||||
GAAP Operating Loss | $ | (31.4 | ) | $ | (52.2 | ) | $ | (257.4 | ) | $ | (140.6 | ) | |||
Acquisition - amortization of intangible assets | 10.7 | 10.5 | 42.7 | 40.9 | |||||||||||
— | 6.1 | — | 16.8 | ||||||||||||
Equity compensation | 10.3 | 8.2 | 40.6 | 37.8 | |||||||||||
Real estate optimization | 13.0 | 1.9 | 27.0 | 3.7 | |||||||||||
Transformation initiatives | — | 3.8 | 6.8 | 14.2 | |||||||||||
Acquisition-related costs | — | 4.9 | — | 5.1 | |||||||||||
Legal charges, net of insurance reimbursement | 1.6 | 1.5 | 114.9 | (11.4 | ) | ||||||||||
Other adjustments | 1.5 | 1.4 | (0.1 | ) | 0.7 | ||||||||||
Adjusted Operating Income (Loss) | $ | 5.7 | $ | (13.9 | ) | $ | (25.5 | ) | $ | (32.8 | ) | ||||
Three months ended | Year ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Adjusted Net Income (Loss) (1) | |||||||||||||||
GAAP Net Loss | $ | (31.2 | ) | $ | (42.3 | ) | $ | (263.3 | ) | $ | (112.0 | ) | |||
Acquisition - amortization of intangible assets | 10.7 | 10.5 | 42.7 | 40.9 | |||||||||||
— | 6.1 | — | 16.8 | ||||||||||||
Equity compensation | 10.3 | 8.2 | 40.6 | 37.8 | |||||||||||
Real estate optimization | 13.0 | 1.9 | 27.0 | 3.7 | |||||||||||
Transformation initiatives | — | 3.8 | 6.8 | 14.2 | |||||||||||
Acquisition-related costs | — | 4.9 | — | 5.1 | |||||||||||
Legal charges, net of insurance reimbursement | 1.6 | 1.5 | 114.9 | (11.4 | ) | ||||||||||
Other adjustments | 1.1 | 1.4 | 1.1 | 0.7 | |||||||||||
Tax adjustments | (2.0 | ) | (5.7 | ) | 7.6 | (20.0 | ) | ||||||||
Adjusted Net Income (Loss) | $ | 3.5 | $ | (9.7 | ) | $ | (22.6 | ) | $ | (24.2 | ) | ||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 86.1 | 81.5 | 82.8 | 80.6 | |||||||||||
Diluted | 86.9 | 81.5 | 82.8 | 80.6 | |||||||||||
Adjusted Earnings (Loss) Per Share | |||||||||||||||
Basic | $ | 0.04 | $ | (0.12 | ) | $ | (0.27 | ) | $ | (0.30 | ) | ||||
Diluted | $ | 0.04 | $ | (0.12 | ) | $ | (0.27 | ) | $ | (0.30 | ) | ||||
(1) To determine Adjusted Earnings (Loss) Per Share, or adjusted EPS. |
Adjusted Free Cash Flow Reconciliation
for the Three Months and Year Ended
(unaudited data in millions)
Three months ended | Year ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Cash flow from operations | $ | (54.7 | ) | $ | (7.3 | ) | $ | (110.9 | ) | $ | (106.3 | ) | |||
Real estate optimization | 4.0 | 1.9 | 12.3 | 3.7 | |||||||||||
Transformation initiatives | — | 3.8 | 6.8 | 14.2 | |||||||||||
Legal charges, net of insurance reimbursement | 63.1 | — | 86.4 | 49.9 | |||||||||||
Acquisition-related costs | — | 4.9 | — | 5.1 | |||||||||||
Other adjustments | 1.1 | — | 1.5 | — | |||||||||||
Adjusted operating cash flow | $ | 13.5 | $ | 3.3 | $ | (3.9 | ) | $ | (33.4 | ) | |||||
Capital expenditures | (10.0 | ) | (14.6 | ) | (63.2 | ) | (45.3 | ) | |||||||
Capitalization of internal-use software costs | (3.5 | ) | — | (10.1 | ) | — | |||||||||
Adjusted free cash flow | $ | — | $ | (11.3 | ) | $ | (77.2 | ) | $ | (78.7 | ) |
Following is a description of the adjustments made to GAAP financial measures:
- Acquisition – amortization of intangible assets – represents recurring amortization charges resulting from the acquisition of intangible assets.
Goodwill and long-lived asset impairment charges – impairment charges on long-lived assets and goodwill.- Equity compensation – non-cash equity-based compensation provided to
Myriad Genetics employees and directors. - Real estate optimization – costs related to real estate initiatives. These costs were included in the transformation initiatives category in prior period reporting. With respect to the adjusted free cash flow reconciliation, the cash flow effect of real estate optimizations excludes non-cash items such as accelerated depreciation. These costs include the following:
- For the three and twelve months ended
December 31, 2023 , additional rent as a result of the build-out of our new laboratories inSalt Lake City, Utah and inSouth San Francisco, California , while maintaining our current laboratories in those locations, and accelerated depreciation and termination costs in connection with the company's decision to cease the use of its former corporate headquarters inSalt Lake City, Utah . - For the three and twelve months ended
December 31, 2022 , additional rent as a result of the build-out of our new laboratories inSalt Lake City, Utah and inSouth San Francisco, California , while maintaining our current laboratories in those locations.
- For the three and twelve months ended
- Transformation initiatives – costs related to transformation initiatives such as:
- For the three and twelve months ended
December 31, 2023 , consulting and professional fees and severance costs related to restructuring. - For the three and twelve months ended
December 31, 2022 , consulting and professional fees.
- For the three and twelve months ended
- Acquisition-related costs - non-recurring costs associated with our acquisition of
Gateway Genomics, LLC during the three and twelve months endedDecember 31, 2022 . - Legal charges, net of insurance reimbursement – one-time legal expenses, net of insurance reimbursement. With respect to the adjusted free cash flow reconciliation, the cash flow effect includes cash paid for settlements in the related period. These costs include:
- For the three and twelve months ended
December 31, 2023 , primarily includes the amounts related to the$77.5 million settlement of the securities class action lawsuit and the$34.0 million settlement of theRavgen litigation. - For the year ended
December 31, 2022 , includes the gain from reimbursement of prior legal expenses and settlements.
- For the three and twelve months ended
- Other adjustments – other one-time non-recurring expenses including:
- For the three and twelve months ended
December 31, 2023 , primarily includes consulting and professional fees related to acquisitions, changes in the fair value of contingent consideration related to acquisitions from prior years, and the reclassifications of cumulative translation adjustments to income upon liquidation of an investment in a foreign entity. - For the three and twelve months ended
December 31, 2022 , primarily includes consulting and professional fees related to acquisitions and changes in the fair value of contingent consideration related to acquisitions from prior years.
- For the three and twelve months ended
- Tax adjustments – tax expense/(benefit) due to non-GAAP adjustments, differences between stock compensation recorded for book purposes as compared to the allowable tax deductions, and valuation allowance recognized against federal and state deferred tax assets in
the United States .- During the twelve months ended
December 31, 2023 , a valuation allowance of$52.6 million was not recognized for non-GAAP purposes given the company's historical and forecasted positive earnings performance. - As of
December 31, 2022 , a valuation allowance of$42.4 million was not recognized for non-GAAP purposes given the company's historical and forecasted positive earnings performance.
- During the twelve months ended
Media Contact: | Megan Manzari | Investor Contact: | |
(385) 318-3718 | (801) 584-3532 | ||
megan.manzari@myriad.com | matt.scalo@myriad.com |
Source:
2024 GlobeNewswire, Inc., source