QuidelOrtho Reports Fourth Quarter and Full Year 2022 Financial Results

Original from: business wire

Highlights

- Fourth quarter revenue of $866.5 million increased by 36% as reported and 19% on a supplemental combined basis, excluding COVID-19 revenue

- Full year revenue of $3.27 billion increased by 92% as reported; Supplemental combined revenue of $4.05 billion increased by 11%, excluding COVID-19 revenue

- Growth in revenue, excluding COVID-19 revenue, for both the fourth quarter and full year, was driven by Point of Care and Molecular Diagnostics, partially offset by weakness in Labs due to China lockdowns and global supply chain challenges

- Fourth quarter GAAP EPS of $0.45; Supplemental combined adjusted EPS of $1.76, a 66% decrease from prior year, largely reflecting the strength of high margin COVID-19 revenue in the fourth quarter of 2021

- Full year GAAP EPS of $9.56; Supplemental combined adjusted EPS of $13.80, a 1% increase from prior year

QuidelOrtho Corporation (Nasdaq: QDEL) (the “Company” or “QuidelOrtho”), a global provider of innovative in vitro diagnostics technologies designed for point-of-care settings, clinical labs and transfusion medicine, announced financial results for the fourth quarter ended January 1, 2023.

The Company reported total revenue for the fourth quarter of 2022 of $866.5 million, a 36% increase as reported, compared to $636.9 million for the fourth quarter of 2021. This was largely due to the consummation of the business combination that occurred on May 27, 2022 pursuant to a Business Combination Agreement entered into as of December 22, 2021, by and among Quidel Corporation (“Quidel”), Ortho Clinical Diagnostics Holdings plc (“Ortho”), QuidelOrtho, and the other parties thereto (the “Combinations”). GAAP diluted earnings per share (EPS) for the fourth quarter of 2022 decreased to $0.45, compared to $6.85 for the fourth quarter of 2021. GAAP operating income for the fourth quarter of 2022 was $86.5 million, compared to $376.7 million for the fourth quarter of 2021, and GAAP operating margin was 10% and 59% for the fourth quarters of 2022 and 2021, respectively. The fourth quarter 2022 results include significant one-time charges related to the integration.

In addition to the Company’s GAAP results, the Company is providing supplemental combined fourth quarter 2022 and 2021 revenues and adjusted operating results as if Quidel and Ortho had been combined for the applicable periods. The following discussion of financial results is based on supplemental combined information:

Fourth quarter 2022 total revenue of $866.5 million decreased by 23% in constant currency, compared to $1,157.9 million for the fourth quarter of 2021. Foreign currency translation negatively impacted sales growth by approximately 180 basis points for the fourth quarter of 2022. Adjusted diluted EPS for the fourth quarter of 2022 decreased to $1.76, compared to $5.12 for the fourth quarter of 2021. Adjusted EBITDA for the fourth quarter of 2022 was $245.1 million, compared to $528.5 million in the fourth quarter of 2021. Adjusted EBITDA margin for the fourth quarter of 2022 was 28.3%, compared to 45.6% for the fourth quarter of 2021.

“Led by ex-COVID-19 growth in Point of Care, Molecular Diagnostics and Transfusion Medicine, we ended a milestone year for QuidelOrtho with an outstanding performance in the fourth quarter even as our largest and generally most resilient business unit, Labs, faced lockdowns in China and continued supply chain challenges,” said Douglas Bryant, President and Chief Executive Officer of QuidelOrtho. “The fourth quarter further reflects the powerful mix of hard work, focus and dedication we’ve seen from our entire QuidelOrtho team throughout 2022. Time and again, our teams rose to meet every challenge and successfully leveraged our commercial and operational strengths to capture robust demand for our diagnostic tests and instruments.”

“We continue to execute on our integration and are ahead of plan on our cost synergy targets,” Mr. Bryant added. “With our combined portfolio, we see tremendous opportunities to cross-sell our products in new markets. We look forward to bringing together all these pieces in 2023 to build on our strong foundation and drive enhanced value for our shareholders,” he concluded.

About QuidelOrtho Corporation

QuidelOrtho Corporation (Nasdaq: QDEL) unites the power of Quidel Corporation and Ortho Clinical Diagnostics behind a shared mission of developing and manufacturing innovative technologies that raise the performance of diagnostic testing and create better patient outcomes across the entire healthcare continuum.

Ranked among the world’s largest in vitro diagnostics (IVD) providers with more than 120 years of collective experience, we combine industry-leading expertise in immunoassay and molecular testing with a global footprint in clinical labs and transfusion medicine.

The Company’s comprehensive product portfolio delivers accuracy, speed, automation and access, providing critical information when and where it is needed most. Inspired by a spirit of service, QuidelOrtho is committed to enhancing the well-being of people worldwide and happy in the knowledge we are making a difference. 

Source: QuidelOrtho Reports Fourth Quarter and Full Year 2022 Financial Results