QuidelOrtho Reports First Quarter 2024 Financial Results

Original from: QuidelOrtho

- Global year-over-year revenue growth of 5% as reported and 6% in constant currency, excluding COVID-19 revenue

- Cost reduction initiatives well underway, headcount reductions expected to deliver approximately $100 million in annualized savings

- Company suspends 2024 financial guidance while it assesses business under new President and Chief Executive Officer

First Quarter 2024 Results and Recent Highlights

·    Revenue was $711 million, as reported:

    - Non-respiratory revenue was flat at $574 million compared to the prior year period, as reported and in constant currency

            - Excluding the one-time third-party settlement of $21 million in the prior year period, non-respiratory revenue grew 3% as reported and 4% on a constant currency basis

    - Respiratory revenue was $137 million, a 48% decrease as reported and in constant currency, primarily due to lower COVID-19 revenue in the first quarter of 2024 compared to the prior year period

            - Excluding COVID-19-related government orders of $143 million in Q1 2023 and $7 million in Q1 2024, which are not expected to recur, respiratory revenue grew 6% as reported and in constant currency 

·    Secured credit agreement amendment to provide additional flexibility through 2027

·    Appointed Brian J. Blaser as President and Chief Executive Officer, effective May 6, 2024

QuidelOrtho Corporation (Nasdaq: QDEL) (the “Company” or “QuidelOrtho”), a global provider of innovative in-vitro diagnostic technologies designed for point-of-care settings, clinical labs, and transfusion medicine, today announced financial results for the first quarter ended March 31, 2024.

“During the first quarter, we achieved solid business performance with 6% top-line constant currency revenue growth across our global regions, excluding COVID-19 revenue,” said Michael S. Iskra, EVP and Chief Commercial Officer, QuidelOrtho. “Additionally, we have been steadfast in implementing company-wide cost initiatives, including margin restoration, which includes headcount reductions that are expected to deliver approximately $100 million in annualized savings. While these actions are never easy, they are a necessary step in positioning the Company for durable long-term growth.”

First Quarter 2024

The Company reported total revenue for the first quarter of 2024 of $711 million, compared to $846 million in the prior year period. The decrease in total revenue was primarily due to lower COVID-19 revenue in the first quarter of 2024 compared to the prior year period. Foreign currency translation did not significantly impact first quarter 2024 results. GAAP diluted loss per share for the first quarter of 2024 was $25.50, compared to diluted earnings per share (“EPS”) of $0.73 in the prior year period. GAAP operating loss for the first quarter of 2024 was $1.76 billion, compared to operating income of $100 million in the prior year period. The first quarter of 2024 GAAP operating loss included a non-cash goodwill impairment charge of approximately $1.74 billion for the North America reporting unit due to the decrease in the estimated fair value, which was consistent with the decline in the Company’s market capitalization during the three months ended March 31, 2024. As a result of the goodwill impairment charge, GAAP operating margin was (247%) compared to 12% in the prior year period. First quarter 2024 results included $23 million in integration-related charges.

Adjusted diluted EPS for the first quarter of 2024 was $0.44, compared to $1.80 in the prior year period. Adjusted EBITDA was $132 million, compared to $245 million in the prior year period. Adjusted EBITDA margin was 19%, compared to 29% in the prior year period. The year-over-year change in adjusted diluted EPS and adjusted EBITDA was primarily due to lower COVID-19 revenue.

Fiscal Year 2024 Financial Guidance

Source: QuidelOrtho Reports First Quarter 2024 Financial Results