Zacks Consensus Estimate The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower. This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -27.8%. Estimate Revisions Trend Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revision ...

[PART I. FINANCIAL INFORMATION](index=14&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion for Q1 2024 [Item 1. Financial Statements](index=14&type=section&id=Item%201.%20Financial%20Statements) This section provides unaudited condensed consolidated financial statements and detailed notes for Q1 2024 and 2023 [Condensed Consolidated Balance Sheets](index=14&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, including assets, liabilities, and equity, as of March 31, 2024, and December 31, 2023 **Condensed Consolidated Balance Sheets (in millions):** | Metric | March 31, 2024 | December 31, 2023 | | :----- | :------------- | :---------------- | | Total Assets | $13,293 | $13,442 | | Total Liabilities | $6,564 | $6,522 | | Total Equity | $6,729 | $6,920 | [Condensed Consolidated Statements of Operations](index=16&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, operating income, and net loss for the three months ended March 31, 2024, and 2023 **Condensed Consolidated Statements of Operations (in millions, except per share amounts):** | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----- | :-------------------------------- | :-------------------------------- | | Revenues | $1,099 | $931 | | Operating Income (Loss) | $6 | $(2) | | Net Loss | $(163) | $(88) | | Net Loss Attributable to Bausch + Lomb Corporation | $(167) | $(90) | | Basic and Diluted Loss Per Share | $(0.48) | $(0.26) | [Condensed Consolidated Statements of Comprehensive Loss](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Reports the net loss and other comprehensive loss components for the three months ended March 31, 2024, and 2023 **Condensed Consolidated Statements of Comprehensive Loss (in millions):** | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----- | :-------------------------------- | :-------------------------------- | | Net Loss | $(163) | $(88) | | Other Comprehensive Loss (Income) | $(42) | $19 | | Comprehensive Loss | $(205) | $(69) | | Comprehensive Loss Attributable to Bausch + Lomb Corporation | $(205) | $(70) | [Condensed Consolidated Statements of Shareholders' Equity](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Outlines changes in shareholders' equity, including net loss and other comprehensive loss, for Q1 2024 **Condensed Consolidated Statements of Shareholders' Equity (in millions):** | Metric | March 31, 2024 | January 1, 2024 | | :----- | :------------- | :-------------- | | Balances, Beginning of Period | $6,920 | $6,920 | | Net Loss | $(163) | $(254) | | Other Comprehensive Loss | $(42) | $(1,245) | | Balances, End of Period | $6,729 | $6,850 | [Condensed Consolidated Statements of Cash Flows](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities for the three months ended March 31, 2024, and 2023 **Condensed Consolidated Statements of Cash Flows (in millions):** | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----- | :-------------------------------- | :-------------------------------- | | Net Cash Provided by (Used in) Operating Activities | $41 | $(56) | | Net Cash Used in Investing Activities | $(57) | $(64) | | Net Cash Provided by Financing Activities | $12 | $91 | | Net Decrease in Cash and Cash Equivalents and Restricted Cash | $(9) | $(22) | | Cash and Cash Equivalents and Restricted Cash, End of Period | $325 | $358 | [Notes to the Condensed Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of significant accounting policies and financial statement line items [1. Description of Business](index=21&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS) Describes Bausch + Lomb's global eye health operations and its relationship with Bausch Health Companies Inc - Bausch + Lomb is a global eye health company operating in three segments: Vision Care, Pharmaceuticals, and Surgical. Bausch Health Companies Inc. (BHC) holds approximately **88.3% of Bausch + Lomb's common shares** as of April 24, 2024[59](index=59&type=chunk)[61](index=61&type=chunk) - The full separation of Bausch + Lomb from BHC, including the distribution of BHC's remaining equity interest, is subject to achieving targeted debt leverage ratios and necessary approvals[62](index=62&type=chunk) [2. Significant Accounting Policies](index=22&type=section&id=2.%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Details the accounting principles and estimates used in preparing the interim financial statements - The unaudited Condensed Consolidated Financial Statements are prepared in U.S. dollars, in accordance with U.S. GAAP for interim financial reporting, and consistent with policies from the 2023 Annual Report on Form 10-K[63](index=63&type=chunk) - Management's estimates and assumptions, particularly regarding global macroeconomic conditions like inflation and supply chain, are crucial for financial reporting, and are regularly reviewed for reasonableness[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) - No new accounting standards were adopted in Q1 2024. However, ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Tax Disclosures) are effective for future fiscal years, and the Company is evaluating their impact[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [3. Revenue Recognition](index=24&type=section&id=3.%20REVENUE%20RECOGNITION) Explains the company's policies for recognizing revenue from product sales and other services - Revenue is primarily generated from product sales in eye health, including branded/generic pharmaceuticals, OTC products, and medical devices. Other revenues include alliance and service revenue[75](index=75&type=chunk) - Product sales revenue is recognized when the customer obtains control of goods, generally upon shipment or receipt. Surgical equipment revenue is recognized upon delivery and installation, while IOLs are recognized upon notification of use[77](index=77&type=chunk)[78](index=78&type=chunk) **Variable Consideration Provisions (in millions):** | Category | March 31, 2024 | January 1, 2024 | Change | | :------- | :------------- | :-------------- | :----- | | Discounts and Allowances | $131 | $141 | $(10) | | Returns | $71 | $66 | $5 | | Rebates | $346 | $226 | $120 | | Chargebacks | $74 | $67 | $7 | | Distribution Fees | $27 | $18 | $9 | | **Total** | **$649** | **$518** | **$131** | - The allowance for credit losses for trade receivables remained stable at **$21 million** for both March 31, 2024, and March 31, 2023[88](index=88&type=chunk) [4. Related Parties](index=28&type=section&id=4.%20RELATED%20PARTIES) Discloses transactions and agreements with Bausch Health Companies Inc. and its affiliates - Bausch + Lomb is a subsidiary of BHC, which holds approximately **88.3% of its common shares**. Transactions with BHC and affiliates are cash-settled and reflected in the balance sheets[89](index=89&type=chunk)[91](index=91&type=chunk) **Related Party Balances (in millions):** | Metric | March 31, 2024 | December 31, 2023 | | :----- | :------------- | :---------------- | | Amounts Payable to BHC and Affiliates | $51 | $43 | | Amounts Due From BHC and Affiliates | $59 | $55 | - Key separation agreements with BHC include the Master Separation Agreement (MSA), Transition Services Agreement (TSA), Tax Matters Agreement, and Employee Matters Agreement, governing the ongoing relationship and services[92](index=92&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - Charges related to these agreements were **$1 million** for both Q1 2024 and Q1 2023, primarily impacting Selling, General and Administrative (SG&A) expenses[98](index=98&type=chunk) [5. Acquisitions and Licensing Agreements](index=30&type=section&id=5.%20ACQUISITIONS%20AND%20LICENSING%20AGREEMENTS) Summarizes recent strategic acquisitions and licensing deals, including XIIDRA and Blink - The XIIDRA Acquisition was consummated on September 29, 2023, for an upfront cash payment of **$1,750 million**, with contingent consideration liabilities of **$34 million** recognized. The valuation of acquired assets and liabilities is not yet finalized[105](index=105&type=chunk)[100](index=100&type=chunk) - The Blink product line of eye and contact lens drops was acquired on July 6, 2023, for an upfront cash payment of **$107 million**, enhancing the global over-the-counter business[106](index=106&type=chunk) - AcuFocus, Inc. was acquired on January 17, 2023, for an upfront payment of **$35 million**, with potential future contingent payments based on sales milestones, bolstering the Surgical segment's IOL offerings[109](index=109&type=chunk) [6. Fair Value Measurements](index=32&type=section&id=6.%20FAIR%20VALUE%20MEASUREMENTS) Explains the methodologies and categorization of assets and liabilities measured at fair value - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1 prices), and Level 3 (unobservable inputs requiring significant judgment)[110](index=110&type=chunk)[111](index=111&type=chunk) **Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions):** | Item | March 31, 2024 (Carrying Value) | December 31, 2023 (Carrying Value) | | :--- | :------------------------------ | :--------------------------------- | | Cash equivalents | $67 | $44 | | Foreign currency exchange contracts (Asset) | $1 | $1 | | Acquisition-related contingent consideration (Liability) | $45 | $44 | | Foreign currency exchange contracts (Liability) | $1 | $4 | | Cross-currency swaps (Liability) | $68 | $84 | - Cross-currency swaps, with an aggregate notional value of **$1,000 million** as of March 31, 2024, are used to mitigate fluctuations in the value of euro-denominated net investments[115](index=115&type=chunk) - Acquisition-related contingent consideration obligations are Level 3 measurements, determined by probability-weighted discounted cash flow analysis using risk-adjusted discount rates ranging from **11% to 28%** at March 31, 2024[118](index=118&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) - The fair value of long-term debt was **$4,672 million** as of March 31, 2024, estimated using Level 2 inputs (quoted market prices for similar debt issuances)[123](index=123&type=chunk) [7. Inventories](index=36&type=section&id=7.%20INVENTORIES) Provides a breakdown of inventory components, including raw materials, work in process, and finished goods **Inventories, net (in millions):** | Component | March 31, 2024 | December 31, 2023 | | :-------- | :------------- | :---------------- | | Raw materials | $270 | $261 | | Work in process | $96 | $100 | | Finished goods | $707 | $667 | | **Total** | **$1,073** | **$1,028** | [8. Intangible Assets and Goodwill](index=37&type=section&id=8.%20INTANGIBLE%20ASSETS%20AND%20GOODWILL) Details the company's intangible assets and goodwill by segment, along with impairment testing **Intangible Assets, Net (in millions):** | Category | March 31, 2024 | December 31, 2023 | | :------- | :------------- | :---------------- | | Total finite-lived intangible assets | $1,812 | $1,886 | | Acquired in-process R&D intangible asset | $5 | $5 | | B&L Trademark | $1,698 | $1,698 | | **Total** | **$3,515** | **$3,589** | **Goodwill by Segment (in millions):** | Segment | March 31, 2024 | December 31, 2023 | | :------ | :------------- | :---------------- | | Vision Care | $3,548 | $3,556 | | Pharmaceuticals | $675 | $693 | | Surgical | $324 | $326 | | **Total Goodwill** | **$4,547** | **$4,575** | - The Company conducted its annual goodwill impairment test as of October 1, 2023, and found no impairment, with the fair value of each reporting unit exceeding its carrying value by more than **25%**. No events indicated impairment during Q1 2024[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) [9. Accrued and Other Current Liabilities](index=39&type=section&id=9.%20ACCURUED%20AND%20OTHER%20CURRENT%20LIABILITIES) Lists the components of accrued and other current liabilities as of March 31, 2024, and December 31, 2023 **Accrued and Other Current Liabilities (in millions):** | Component | March 31, 2024 | December 31, 2023 | | :-------- | :------------- | :---------------- | | Product rebates | $313 | $191 | | Employee compensation and benefit costs | $189 | $233 | | Discounts and allowances | $84 | $84 | | Product returns | $66 | $66 | | Interest | $44 | $44 | | Advertising and Promotion | $45 | $45 | | Other | $377 | $364 | | **Total** | **$1,161** | **$1,027** | [10. Financing Arrangements](index=39&type=section&id=10.%20FINANCING%20ARRANGEMENTS) Describes the company's debt obligations, credit facilities, and compliance with financial covenants **Principal Amounts of Debt Obligations (in millions):** | Debt Type | Maturity | March 31, 2024 (Principal) | December 31, 2023 (Principal) | | :-------- | :------- | :------------------------- | :---------------------------- | | Revolving Credit Facility | May 2027 | $300 | $275 | | May 2027 Term Facility | May 2027 | $2,456 | $2,462 | | September 2028 Term Facility | September 2028 | $498 | $499 | | 8.375% Senior Secured Notes | October 2028 | $1,400 | $1,400 | | **Total Long-term Debt** | | **$4,654** | **$4,636** | - The Company's Senior Secured Credit Facilities include a May 2027 Term Facility (**$2,456M** outstanding), a September 2028 Term Facility (**$498M** outstanding), and a Revolving Credit Facility (**$300M** outstanding with **$174M** availability)[135](index=135&type=chunk) - The October 2028 Secured Notes, totaling **$1,400 million** at **8.375% interest**, were issued to finance the XIIDRA Acquisition. These notes are secured by the same first priority liens as the Amended Credit Agreement[145](index=145&type=chunk)[146](index=146&type=chunk) - The weighted average stated interest rate for outstanding debt was **8.62%** at March 31, 2024, slightly down from **8.65%** at December 31, 2023[152](index=152&type=chunk) - The Company was in compliance with all financial covenants related to its debt obligations as of March 31, 2024, and expects to remain compliant for the next twelve months[175](index=175&type=chunk) [11. Share-Based Compensation](index=45&type=section&id=11.%20SHARE-BASED%20COMPENSATION) Details the company's share-based incentive plans and related compensation expenses - The Bausch + Lomb 2022 Omnibus Incentive Plan authorizes **38,000,000 common shares** for issuance, with an additional **14,000,000 shares** proposed for shareholder approval[156](index=156&type=chunk)[178](index=178&type=chunk) - A Performance Share Unit (PSU) award was approved for key senior leaders, designed to reward significant outperformance of revenue and relative total shareholder return (TSR) goals, vesting in February 2027[157](index=157&type=chunk)[180](index=180&type=chunk) **Share-based Compensation Expense (in millions):** | Category | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------- | :-------------------------------- | :-------------------------------- | | Stock options | $2 | $4 | | PSUs/RSUs | $17 | $20 | | **Total** | **$19** | **$24** | - As of March 31, 2024, unrecognized compensation expenses totaled **$176 million**, to be amortized over a weighted-average period of **2.37 years**[186](index=186&type=chunk) [12. Accumulated Other Comprehensive Loss](index=48&type=section&id=12.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) Presents the components of accumulated other comprehensive loss, primarily foreign currency translation adjustments **Accumulated Other Comprehensive Loss (in millions):** | Component | March 31, 2024 | December 31, 2023 | | :-------- | :------------- | :---------------- | | Foreign currency translation adjustment | $(1,254) | $(1,217) | | Pension adjustment, net of tax | $(29) | $(28) | | **Total** | **$(1,283)** | **$(1,245)** | [13. Research and Development](index=48&type=section&id=13.%20RESEARCH%20AND%20DEVELOPMENT) Reports the company's research and development expenditures for product development and quality assurance **Research and Development Costs (in millions):** | Component | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------- | :-------------------------------- | :-------------------------------- | | Product related research and development | $79 | $72 | | Quality assurance | $3 | $5 | | **Total** | **$82** | **$77** | [14. Other Expense, Net](index=50&type=section&id=14.%20OTHER%20EXPENSE,%20NET) Details various other expenses, including restructuring, integration, and litigation costs **Other Expense, Net (in millions):** | Component | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------- | :-------------------------------- | :-------------------------------- | | Restructuring, integration and separation costs | $11 | $8 | | Gain on sale of assets | $(4) | $0 | | Litigation and other matters | $1 | $0 | | Acquisition-related costs | $0 | $1 | | Acquisition-related contingent consideration | $1 | $0 | | **Total** | **$9** | **$9** | - Restructuring and integration costs, primarily employee severance, increased to **$11 million** in Q1 2024 from **$8 million** in Q1 2023, reflecting ongoing cost savings programs[190](index=190&type=chunk) [15. Income Taxes](index=50&type=section&id=15.%20INCOME%20TAXES) Explains the provision for income taxes, valuation allowances, and unrecognized tax benefits **Provision for Income Taxes (in millions):** | Period | Provision for Income Taxes | | :----- | :------------------------- | | Three Months Ended March 31, 2024 | $73 | | Three Months Ended March 31, 2023 | $33 | - The increase in income tax provision from **$33 million** in Q1 2023 to **$73 million** in Q1 2024 was primarily due to changes in the jurisdictional mix of earnings and discrete tax effects from tax return filings and stock compensation deductions[192](index=192&type=chunk) - The valuation allowance against deferred tax assets increased to **$161 million** at March 31, 2024, from **$150 million** at December 31, 2023, due to losses in jurisdictions with full valuation allowances[193](index=193&type=chunk) - Unrecognized tax benefits totaled **$67 million** at March 31, 2024, with **$59 million** potentially reducing the effective tax rate if recognized. A **$2 million** decrease is reasonably possible in the next 12 months[196](index=196&type=chunk) [16. Loss Per Share](index=52&type=section&id=16.%20LOSS%20PER%20SHARE) Provides the calculation of basic and diluted loss per share attributable to Bausch + Lomb Corporation **Loss Per Share Attributable to Bausch + Lomb Corporation:** | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----- | :-------------------------------- | :-------------------------------- | | Net Loss (in millions) | $(167) | $(90) | | Basic and Diluted Weighted-Average Common Shares Outstanding (in millions) | 351.1 | 350.0 | | Basic and Diluted Loss Per Share | $(0.48) | $(0.26) | - All potential common shares from RSUs, performance-based RSUs, and stock options were excluded from diluted loss per share calculations for both periods as their inclusion would have been anti-dilutive[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) [17. Legal Proceedings](index=52&type=section&id=17.%20LEGAL%20PROCEEDINGS) Outlines the company's involvement in various legal and administrative proceedings - Bausch + Lomb is involved in various legal and administrative proceedings, including product liability, intellectual property, commercial, tax, and antitrust matters. Accrued current loss contingencies were **$4 million** as of March 31, 2024[202](index=202&type=chunk)[203](index=203&type=chunk) - The Company is a defendant in multidistrict antitrust litigation regarding generic pharmaceuticals pricing and a proposed Canadian class action with similar allegations, which it intends to vigorously defend[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk) - Product liability lawsuits related to Shower to Shower® are ongoing, but BHC and Bausch + Lomb maintain full indemnification claims and rights against Johnson & Johnson and LTL Management, LLC[214](index=214&type=chunk)[217](index=217&type=chunk) - Intellectual property matters include ongoing patent infringement proceedings for PreserVision® AREDS and Lumify® (brimonidine tartrate solution) drops, which the Company is vigorously defending[227](index=227&type=chunk)[228](index=228&type=chunk)[231](index=231&type=chunk) [18. Segment Information](index=62&type=section&id=18.%20SEGMENT%20INFORMATION) Presents financial data by reportable segment (Vision Care, Pharmaceuticals, Surgical) and geographic region - The Company operates in three reportable segments: Vision Care (contact lenses, consumer eye care), Pharmaceuticals (proprietary and generic eye medications), and Surgical (medical device equipment, consumables, and technologies for eye conditions)[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk) **Segment Revenues and Profit (in millions):** | Segment | Q1 2024 Revenues | Q1 2023 Revenues | Q1 2024 Profit | Q1 2023 Profit | | :------ | :--------------- | :--------------- | :------------- | :------------- | | Vision Care | $635 | $587 | $178 | $154 | | Pharmaceuticals | $267 | $161 | $53 | $46 | | Surgical | $197 | $183 | $11 | $11 | | **Total** | **$1,099** | **$931** | **$242** | **$211** | **Geographic Revenues (in millions):** | Region | Q1 2024 | Q1 2023 | | :----- | :------ | :------ | | U.S. and Puerto Rico | $537 | $404 | | China | $77 | $74 | | France | $60 | $56 | | Japan | $42 | $48 | | Germany | $42 | $42 | | United Kingdom | $31 | $29 | | Canada | $28 | $26 | | Russia | $28 | $24 | | Italy | $23 | $20 | | Spain | $21 | $20 | | Mexico | $17 | $16 | | Poland | $15 | $12 | | South Korea | $12 | $11 | | Other | $166 | $149 | | **Total** | **$1,099** | **$931** | - McKesson Corporation accounted for **11% of total revenues** for the three months ended March 31, 2024, making it a major customer[242](index=242&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=65&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's analysis of financial performance, business trends, and liquidity for Q1 2024 [Overview](index=65&type=section&id=Overview) Provides a high-level summary of Bausch + Lomb's global eye health business and its relationship with BHC - Bausch + Lomb is a global eye health company with a comprehensive portfolio of over **400 products** across Vision Care, Pharmaceuticals, and Surgical segments, marketed in approximately **100 countries**[246](index=246&type=chunk)[247](index=247&type=chunk) - BHC holds approximately **88.3% of Bausch + Lomb's common shares**. The full separation from BHC is contingent on achieving targeted debt leverage ratios and necessary approvals[250](index=250&type=chunk) [Product Development](index=67&type=section&id=Product%20Development) Highlights the company's R&D efforts and key pipeline products in various stages of development - The Company's R&D team of approximately **850 employees** is focused on advancing a pipeline of over **60 global projects**, including new contact lenses, cataract equipment, premium IOLs, and dry eye treatments[162](index=162&type=chunk) - Key near-term pipeline products include SiHy Daily contact lenses (launched in ~50 countries), Lumify® eye drops (new line extensions and preservative-free formulation approved), Blink NutriTears™ (nutritional supplement for dry eyes, Q3 2024 launch), MIEBO® (FDA-approved dry eye treatment, launched Sept 2023), and LuxLife®/enVista® premium IOLs (various launches planned through 2026)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk) [Strategic Acquisitions and Licensing Agreements](index=69&type=section&id=Strategic%20Acquisitions%20and%20Licensing%20Agreements) Discusses recent acquisitions like XIIDRA, Blink, and AcuFocus, aimed at portfolio expansion - Recent strategic acquisitions include XIIDRA® (dry eye treatment, Sept 2023), Blink® Product Line (OTC eye/contact lens drops, July 2023), and AcuFocus (small aperture intraocular technology, Jan 2023), all aimed at bolstering the product portfolio and driving growth[164](index=164&type=chunk)[259](index=259&type=chunk) [Business Trends](index=69&type=section&id=Business%20Trends) Addresses external factors impacting the business, including geopolitical conflicts, supply chain, and healthcare reforms - The Russia-Ukraine War and related sanctions have not materially impacted operations, with revenues from Russia, Ukraine, and Belarus collectively representing approximately **3% of total revenues**. Licenses have been obtained to resume sales of sanctioned products[266](index=266&type=chunk)[263](index=263&type=chunk) - The Israel-Hamas conflict has had a minimal impact, with revenues from Israel and Iran less than **1% of total revenues**[268](index=268&type=chunk) - Supply chain challenges have been mitigated through strategic inventory buying and multiple sourcing, though these actions have led to higher inventory costs and pressure on surgical margins[269](index=269&type=chunk) - The OECD/G20 global minimum corporate tax rate (Pillar Two) is expected to have minimal impact on the 2024 tax rate, but there is a future risk of increasing the overall effective tax rate[272](index=272&type=chunk) - Health care reforms and cost containment efforts globally continue to exert pricing pressures on product sales and reimbursements. The Company actively manages generic competition risks through patent defense and pipeline development[273](index=273&type=chunk)[274](index=274&type=chunk)[287](index=287&type=chunk) - Prolensa® began facing loss of exclusivity (LOE) in Q4 2023, accounting for ~**1% of 2023 revenues**. The PreserVision® U.S. formulation patent expired in March 2021, but a method-of-use patent remains until 2026[285](index=285&type=chunk)[277](index=277&type=chunk) [Results of Operations](index=75&type=section&id=Results%20of%20Operations) Analyzes the company's revenues, expenses, and net loss for the three months ended March 31, 2024 **Key Financial Results (in millions):** | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (Amount) | Change (%) | | :----- | :-------------------------------- | :-------------------------------- | :-------------- | :--------- | | Revenues | $1,099 | $931 | $168 | 18% | | Operating Income (Loss) | $6 | $(2) | $8 | N/A | | Net Loss Attributable to Bausch + Lomb Corporation | $(167) | $(90) | $(77) | 86% | | Interest Expense | $(99) | $(50) | $(49) | 98% | | Provision for Income Taxes | $(73) | $(33) | $(40) | 121% | - Total revenues increased by **$168 million (18%)** to **$1,099 million**, driven by **$88 million** from acquisitions (primarily XIIDRA®), **$70 million** from increased volumes, and **$32 million** from net realized pricing, partially offset by **$20 million** unfavorable foreign currency impact[290](index=290&type=chunk) **Segment Revenue Growth (Constant Currency, Non-GAAP):** | Segment | Q1 2024 Revenue (Reported) | Changes in Exchange Rates | Q1 2024 Constant Currency Revenue | Q1 2023 Revenue (Reported) | Change in Constant Currency Revenue | Pct. Change | | :------ | :------------------------- | :------------------------ | :-------------------------------- | :------------------------- | :---------------------------------- | :---------- | | Vision Care | $635 | $18 | $653 | $587 | $66 | 11% | | Pharmaceuticals | $267 | $1 | $268 | $161 | $107 | 66% | | Surgical | $197 | $1 | $198 | $183 | $15 | 8% | | **Total** | **$1,099** | **$20** | **$1,119** | **$931** | **$188** | **20%** | - Vision Care revenue increased by **8%** to **$635 million**, driven by Lumify®, PreserVision®, dry eye portfolio, and SiHy Daily lenses, with a **$36 million** increase in net pricing and **$22 million** in volumes[297](index=297&type=chunk) - Pharmaceuticals revenue surged by **66%** to **$267 million**, primarily due to **$79 million** from the XIIDRA® Acquisition and **$38 million** from MIEBO® launch and generic product demand[298](index=298&type=chunk) - Surgical segment revenue increased by **8%** to **$197 million**, driven by increased demand for consumables, implantables (premium IOLs), and system sales[173](index=173&type=chunk) - Total provisions to reduce gross product sales to net product sales increased to **36.7%** of gross sales in Q1 2024 from **27.4%** in Q1 2023, mainly due to higher rebates from XIIDRA® and MIEBO®[302](index=302&type=chunk) - Cost of goods sold increased by **$52 million (14%)** to **$423 million**, primarily due to costs from recent acquisitions and higher volumes. As a percentage of product sales, it decreased from **40.0% to 38.7%**[304](index=304&type=chunk)[305](index=305&type=chunk) - SG&A expenses rose by **$86 million (21%)** to **$504 million**, mainly driven by increased selling, advertising, and promotion costs for XIIDRA® and MIEBO®[307](index=307&type=chunk) - R&D expenses increased by **$5 million (6%)** to **$82 million**, attributed to certain products in development[309](index=309&type=chunk) - Amortization of intangible assets increased by **$17 million (30%)** to **$74 million**, primarily due to assets acquired through recent acquisitions[311](index=311&type=chunk) - Operating income improved to **$6 million** in Q1 2024 from an operating loss of **$2 million** in Q1 2023, reflecting increased contribution partially offset by higher SG&A[314](index=314&type=chunk) - Interest expense increased by **$49 million** to **$99 million**, mainly due to new debt from the October 2028 Secured Notes and September 2028 Term Facility, and increased interest on the May 2027 Term Facility[324](index=324&type=chunk) - Net loss attributable to Bausch + Lomb Corporation increased by **$77 million** to **$167 million**, primarily due to higher interest expense (**$49 million**) and increased income tax provision (**$40 million**), partially offset by improved operating results (**$8 million**)[328](index=328&type=chunk)[329](index=329&type=chunk) [Liquidity and Capital Resources](index=87&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash flows, debt obligations, and ability to meet future financial commitments **Cash Flow Summary (in millions):** | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change | | :------- | :-------------------------------- | :-------------------------------- | :----- | | Net cash provided by (used in) operating activities | $41 | $(56) | $97 | | Net cash used in investing activities | $(57) | $(64) | $7 | | Net cash provided by financing activities | $12 | $91 | $(79) | | Net decrease in cash and cash equivalents and restricted cash | $(9) | $(22) | $13 | | Cash and cash equivalents and restricted cash, end of period | $325 | $358 | $(33) | - Operating activities generated **$41 million** in cash in Q1 2024, a **$97 million** improvement from Q1 2023, driven by net earnings (excluding non-cash items) and changes in operating assets/liabilities from the XIIDRA® Acquisition[332](index=332&type=chunk)[333](index=333&type=chunk) - Investing activities used **$57 million**, a **$7 million** decrease from Q1 2023, primarily due to increased property, plant, and equipment purchases, partially offset by the AcuFocus acquisition in 2023[335](index=335&type=chunk) - Financing activities provided **$12 million**, a **$79 million** decrease from Q1 2023, mainly due to lower borrowings and higher repayments under the Revolving Credit Facility[336](index=336&type=chunk) - Primary liquidity sources include cash, customer collections, the Revolving Credit Facility, and potential debt/equity issuances. The Company expects these to meet liquidity needs for the next 12 months[337](index=337&type=chunk) - The weighted average stated interest rate for outstanding debt was **8.62%** at March 31, 2024. Moody's changed its outlook to stable on April 22, 2024[357](index=357&type=chunk)[358](index=358&type=chunk) - Expected cash requirements for April 1, 2024, through December 31, 2024, include approximately **$300 million** for interest payments, **$23 million** for mandatory debt amortization, and **$185 million** for capital expenditures[365](index=365&type=chunk) - The Company is implementing 'Business Transformation Costs' initiatives to streamline operations and may pursue further cost savings programs, including headcount reductions and facility rationalization[369](index=369&type=chunk)[370](index=370&type=chunk) [Outstanding Share Data](index=95&type=section&id=Outstanding%20Share%20Data) Provides information on the number of common shares, stock options, and restricted share units outstanding - As of April 24, 2024, the Company had **351,482,100 issued and outstanding common shares**. Additionally, there were approximately **9.3 million stock options**, **7.6 million restricted share units**, and **4.1 million performance-based restricted share units** outstanding, with a maximum potential issuance of **10.8 million common shares** from performance-based units[374](index=374&type=chunk) [Critical Accounting Policies and Estimates](index=95&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Confirms no significant changes to critical accounting policies and estimates in Q1 2024 - Management reassessed critical accounting policies and estimates and determined there were no significant changes during the three months ended March 31, 2024[375](index=375&type=chunk) [New Accounting Standards](index=95&type=section&id=New%20Accounting%20Standards) States that no new accounting standards were adopted during the first quarter of 2024 - There were no new accounting standards adopted during the three months ended March 31, 2024[376](index=376&type=chunk) [Forward-Looking Statements](index=95&type=section&id=Forward-Looking%20Statements) Contains cautionary statements regarding future business strategy, financial performance, and associated risks - This section contains forward-looking statements regarding business strategy, product pipeline, financial performance, R&D and marketing spend, liquidity, debt compliance, and the anticipated separation from BHC. These statements involve risks and uncertainties, and actual results may differ materially[377](index=377&type=chunk)[378](index=378&type=chunk)[380](index=380&type=chunk) - Key risks include adverse economic conditions, challenges from the B+L IPO and proposed BHC separation, ongoing litigation, pricing decisions, regulatory oversight, debt covenants, credit rating downgrades, and uncertainties related to new product acquisitions and launches[380](index=380&type=chunk)[383](index=383&type=chunk)[387](index=387&type=chunk) - Other significant risks encompass international operations, geopolitical conflicts (Russia-Ukraine, Israel-Hamas), intellectual property protection, generic competition, supply chain disruptions, and the impact of health care reforms and global minimum corporate tax rates[35](index=35&type=chunk)[39](index=39&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=106&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the Company's assessment of its sensitivity to market risks compared to the disclosures in its Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to the Company's assessment of market risks were identified during the three months ended March 31, 2024, compared to the Annual Report on Form 10-K[398](index=398&type=chunk) [Item 4. Controls and Procedures](index=106&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of March 31, 2024, and reports no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[399](index=399&type=chunk) - There were no material changes in the Company's internal controls over financial reporting during the three months ended March 31, 2024[4](index=4&type=chunk) [PART II. OTHER INFORMATION](index=107&type=section&id=PART%20II.%20OTHER%20INFORMATION) Presents additional information not covered in the financial statements, including legal proceedings and risk factors [Item 1. Legal Proceedings](index=107&type=section&id=Item%201.%20Legal%20Proceedings) Details the company's ongoing legal and administrative proceedings, with reference to Note 17 - The Company is involved in legal proceedings in the ordinary course of business, but based on current information, no material adverse effect on financial position, liquidity, or results of operations is expected[7](index=7&type=chunk) - Further information on legal proceedings can be found in Note 17, 'LEGAL PROCEEDINGS' of the unaudited interim Condensed Consolidated Financial Statements[8](index=8&type=chunk) [Item 1A. Risk Factors](index=107&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to the risk factors were disclosed in Item 1A. 'Risk Factors' from the Annual Report on Form 10-K for the year ended December 31, 2023[9](index=9&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=107&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company did not engage in any unregistered sales or purchases of its equity securities during the three months ended March 31, 2024 - There were no unregistered sales of equity securities or purchases of the Company's equity securities during the three months ended March 31, 2024[10](index=10&type=chunk) [Item 3. Defaults Upon Senior Securities](index=107&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities during the period - No defaults upon senior securities occurred during the period[10](index=10&type=chunk) [Item 4. Mine Safety Disclosures](index=107&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The Company reported no mine safety disclosures - No mine safety disclosures were reported[10](index=10&type=chunk) [Item 5. Other Information](index=107&type=section&id=Item%205.%20Other%20Information) The Company reported no other information for this item - No other information was reported for this item[10](index=10&type=chunk) [Item 6. Exhibits](index=108&type=section&id=Item%206.%20Exhibits) Lists all supplementary documents filed with the quarterly report, including corporate governance and certification documents - Exhibits include amended articles and by-laws, employment agreements for key executives, various forms of share unit award agreements under the 2022 Omnibus Incentive Plan, and certifications from the CEO and CFO (Sarbanes-Oxley Act)[12](index=12&type=chunk)[19](index=19&type=chunk) - The filing also includes Inline XBRL documents (Instance, Schema, Calculation, Label, Presentation, Definition Linkbase Documents) and the Cover Page Interactive Data File[12](index=12&type=chunk)[19](index=19&type=chunk) [SIGNATURES](index=110&type=section&id=SIGNATURES) Confirms the official signing of the report by the Chairman/CEO and CFO on May 1, 2024 - The report was signed on May 1, 2024, by Brenton L. Saunders, Chairman of the Board and Chief Executive Officer, and Sam Eldessouky, Executive Vice President and Chief Financial Officer[15](index=15&type=chunk)

Bausch + Lomb Corporation (NYSE:BLCO) Q1 2024 Earnings Conference Call May 1, 2024 8:00 AM ET Company Participants George Gadkowski - VP, IR & Business Insights Brent Saunders - Chairman & CEO Sam Eldessouky - EVP & CFO Conference Call Participants Patrick Wood - Morgan Stanley Young Li - Jefferies Robbie Marcus - JPMorgan Joanne Wuensch - Citi Vijay Kumar - Evercore ISI Matt Miksic - Barclays Doug Miehm - RBC Operator Good morning, and welcome to the Bausch + Lomb's First Quarter 2024 Earnings Call. [Opera ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) Bausch + Lomb reported strong first-quarter 2024 results with significant revenue growth across all segments and key product advancements - Bausch + Lomb reported strong first-quarter 2024 results with total revenue growing **18% as reported** and **20% on a constant currency basis**, driven by broad-based growth across all business segments[36](index=36&type=chunk)[49](index=49&type=chunk) - Key franchises, including **Daily SiHy lenses**, **LUMIFY®**, and **eye vitamins**, showed broad-based growth[49](index=49&type=chunk) - The company is extending its leading position in the dry eye category with strong uptake of **MIEBO®** and ongoing execution of the **XIIDRA® relaunch strategy**, further bolstered by the upcoming launch of **Blink™ NutriTears®**[49](index=49&type=chunk) - A broad market entry for **enVista® Aspire™** marks the beginning of continuous IOL innovation[49](index=49&type=chunk) [First-Quarter 2024 Financial Performance](index=1&type=section&id=First-Quarter%202024%20Financial%20Performance) Bausch + Lomb achieved substantial Q1 2024 revenue growth and improved operating income, despite an increased net loss from higher interest and tax expenses [Revenue Performance](index=1&type=section&id=First-Quarter%202024%20Revenue%20Performance) Total reported revenue for Q1 2024 increased **18% to $1,099 million** (or **20% constant currency**), driven by broad-based segment growth Total Revenue Performance (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Reported Change (Millions) | Reported Change (%) | Constant Currency Change (%) | |:----------------------------|:-------------------|:-------------------|:---------------------------|:--------------------|:-----------------------------| | Total Bausch + Lomb Revenue | $1,099 | $931 | $168 | 18% | 20% | - Foreign exchange negatively impacted revenue by approximately **$20 million** in Q1 2024[36](index=36&type=chunk)[49](index=49&type=chunk) Revenue by Segment (Q1 2024 vs. Q1 2023) | Segment | Q1 2024 (Millions) | Q1 2023 (Millions) | Reported Change (Millions) | Reported Change (%) | Constant Currency Change (%) | |:----------------|:-------------------|:-------------------|:---------------------------|:--------------------|:-----------------------------| | Vision Care | $635 | $587 | $48 | 8% | 11% | | Surgical | $197 | $183 | $14 | 8% | 8% | | Pharmaceuticals | $267 | $161 | $106 | 66% | 66% | - Vision Care segment growth was primarily driven by **Daily SiHy lenses**, **LUMIFY®**, **eye vitamin**, and **consumer dry eye franchises**[52](index=52&type=chunk) - Surgical segment growth was driven by **consumables**, **implantables**, and **equipment**[37](index=37&type=chunk) - Pharmaceuticals segment growth was primarily due to the acquisition of **XIIDRA**, strong launch performance of **MIEBO**, and growth in **U.S. Generics** and **International Pharmaceuticals**[44](index=44&type=chunk) [Operating Results](index=3&type=section&id=Operating%20Results) Q1 2024 operating income improved to **$6 million**, with Adjusted EBITDA up and cash flow positive, despite increased net loss Key Operating Results (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change (Millions) | |:-------------------------------------------------|:-------------------|:-------------------|:------------------| | Operating Income (Loss) | $6 | ($2) | $8 |\n| Net Loss Attributable to Bausch + Lomb Corp. | ($167) | ($90) | ($77) |\n| Adjusted Net Income (non-GAAP) | $24 | $34 | ($10) |\n| Adjusted EBITDA (non-GAAP) | $180 | $141 | $39 |\n| Cash Flow from Operations | $41 | ($56) | $97 |\n| Basic and Diluted Loss per Share (GAAP) | ($0.48) | ($0.26) | ($0.22) |\n| Adjusted EPS (non-GAAP) | $0.07 | $0.10 | ($0.03) | - The increase in operating income was largely driven by **increased sales**, partially offset by higher **advertising and promotional spend** (primarily for XIIDRA and MIEBO) and increased **amortization expense**[38](index=38&type=chunk) - The unfavorable change in net loss was primarily due to an increase in **interest expense** and **provision for taxes**, partially offset by improved operating results[52](index=52&type=chunk) - Adjusted EBITDA increased primarily due to **higher sales**, partially offset by investment in launch products like **MIEBO** and **XIIDRA**[55](index=55&type=chunk) - Cash flow from operations was positively impacted by the acquisition of **XIIDRA**, partially offset by an increase in **inventories**[46](index=46&type=chunk) [Balance Sheet Highlights](index=4&type=section&id=Balance%20Sheet%20Highlights) As of March 31, 2024, Bausch + Lomb reported **$325 million** in cash and equivalents, with **351.1 million** basic shares outstanding Balance Sheet Highlights (as of March 31, 2024) | Metric | Amount (Millions) | |:-------------------------------------------|:------------------|\n| Cash, cash equivalents and restricted cash | $325 |\n| Basic weighted average shares outstanding | 351.1 |\n| Diluted weighted average shares outstanding| 352.7 | [2024 Financial Outlook](index=4&type=section&id=2024%20Financial%20Outlook) Bausch + Lomb raised its full-year 2024 constant currency revenue growth guidance to **13-15%**, with updated revenue and Adjusted EBITDA ranges, and increased foreign exchange headwinds Full-Year 2024 Financial Guidance | Metric | Guidance Range (Millions) | |:-----------------------------------------|:--------------------------|\n| Full-year Revenue | $4,600 – $4,700 |\n| Full-year Adjusted EBITDA (non-GAAP) | $840 – $890 |\n| Constant Currency Revenue Growth (Revised)| 13-15% (previously 12-14%)|\n| Foreign Exchange Revenue Headwinds | ~$90 (previously ~$40) | [Company Information](index=6&type=section&id=Company%20Information) This section outlines Bausch + Lomb's global eye health business and details its Q1 2024 earnings conference call [About Bausch + Lomb](index=6&type=section&id=About%20Bausch%20%2B%20Lomb) Bausch + Lomb is a global eye health company founded in 1853, offering a comprehensive portfolio of approximately 400 products and operating in nearly 100 countries - Bausch + Lomb is a leading global eye health company dedicated to protecting and enhancing sight[4](index=4&type=chunk) - The company's comprehensive portfolio includes approximately **400 products**, such as contact lenses, lens care products, eye care products, ophthalmic pharmaceuticals, over-the-counter products, and ophthalmic surgical devices[4](index=4&type=chunk) - Founded in **1853**, Bausch + Lomb has approximately **13,000 employees** and a presence in nearly **100 countries**, with corporate offices in Vaughan, Ontario, and Bridgewater, New Jersey[4](index=4&type=chunk) [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) The conference call for the first-quarter 2024 results was held on **Wednesday, May 1, 2024, at 8:00 a.m. ET**, with webcast and dial-in options provided - The conference call for Q1 2024 results was held on **Wednesday, May 1, 2024, at 8:00 a.m. ET**[4](index=4&type=chunk) - Webcast access was available at https://www.webcaster4.com/Webcast/Page/2883/49631, with dial-in numbers for North America and International participants[4](index=4&type=chunk) - A replay of the conference call was available until **May 15, 2024**[29](index=29&type=chunk) [Important Disclosures](index=6&type=section&id=Important%20Disclosures) This section details Bausch + Lomb's forward-looking statements and the use and reconciliation of non-GAAP financial measures [Forward-looking Statements](index=6&type=section&id=Forward-looking%20Statements) This section outlines forward-looking statements regarding Bausch + Lomb's future prospects, 2024 full-year guidance, product launches, and growth from manufacturing investments - Forward-looking statements include Bausch + Lomb's future prospects, **2024 full-year guidance**, anticipated product launches, and expected future growth from investments in manufacturing and supply chain optimization[5](index=5&type=chunk) - These statements are based on current management expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially[5](index=5&type=chunk) - Key risks include those related to the proposed spinoff from Bausch Health Companies Inc. (BHC), the acquisition of **XIIDRA®** and other ophthalmology assets, and adverse macroeconomic conditions such as inflation, slower growth, or recession[5](index=5&type=chunk)[6](index=6&type=chunk) [Non-GAAP Information](index=8&type=section&id=Non-GAAP%20Information) Bausch + Lomb uses non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income, Constant Currency Revenue, and Adjusted EPS to supplement GAAP results for performance evaluation - The company uses non-GAAP financial measures and ratios as key metrics to evaluate performance, determine executive cash bonuses, and provide useful information to investors[9](index=9&type=chunk) - Non-GAAP measures are intended to supplement, not substitute for, GAAP measures and may not be comparable to similarly titled measures used by other companies[10](index=10&type=chunk) - Management believes these non-GAAP measures are useful for strategic decision-making, forecasting, and evaluating current performance by providing a meaningful comparison of operating results and trends[30](index=30&type=chunk) [Specific Non-GAAP Measures](index=8&type=section&id=Specific%20Non-GAAP%20Measures) This section defines and explains the rationale for specific non-GAAP measures used by Bausch + Lomb, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Constant Currency, and Adjusted EPS - **EBITDA (non-GAAP)** is Net income (loss) attributable to Bausch + Lomb Corporation adjusted for interest, income taxes, depreciation, and amortization[12](index=12&type=chunk) - **Adjusted EBITDA (non-GAAP)** further adjusts EBITDA for items such as asset impairments, restructuring, integration and transformation costs, acquisition-related costs, share-based compensation, and separation costs, to focus on underlying operational results and business performance[12](index=12&type=chunk)[13](index=13&type=chunk)[15](index=15&type=chunk) - **Adjusted Net Income (non-GAAP)** adjusts GAAP net income for asset impairments, restructuring, integration and transformation costs, acquisition-related contingent consideration, separation costs, other non-GAAP adjustments, amortization of intangible assets, and specific acquisition-related costs[17](index=17&type=chunk) - **Constant Currency Revenue (non-GAAP)** adjusts GAAP revenue for changes in foreign currency exchange rates to assess performance without the impact of currency fluctuations, providing a supplemental period-to-period comparison[18](index=18&type=chunk)[19](index=19&type=chunk) - **Adjusted EPS (non-GAAP)** is calculated by adjusting GAAP diluted income per share for the per-diluted-share impact of each adjustment made to reconcile Net income (loss) to Adjusted net income (non-GAAP), aiming to provide a meaningful comparison of the company's results and trends[20](index=20&type=chunk) [Financial Tables](index=12&type=section&id=Financial%20Tables) This section presents detailed financial tables, including GAAP income statements and non-GAAP reconciliations for Q1 2024 [GAAP Income Statement](index=12&type=section&id=GAAP%20Income%20Statement) The GAAP income statement for the three months ended March 31, 2024, shows total revenues of **$1,099 million**, an operating income of **$6 million**, and a net loss attributable to Bausch + Lomb Corporation of **$167 million**, resulting in a basic and diluted loss per share of **($0.48)** GAAP Income Statement (Three Months Ended March 31) | Metric | 2024 (Millions) | 2023 (Millions) | |:-----------------------------------------------------------------|:----------------|:----------------|\n| Revenues | $1,099 | $931 |\n| Cost of goods sold (excluding amortization and impairments) | $423 | $371 |\n| Selling, general and administrative | $504 | $418 |\n| Research and development | $82 | $77 |\n| Amortization of intangible assets | $74 | $57 |\n| Operating income (loss) | $6 | ($2) |\n| Interest expense | ($99) | ($50) |\n| Loss before provision for income taxes | ($90) | ($55) |\n| Provision for income taxes | ($73) | ($33) |\n| Net loss attributable to Bausch + Lomb Corporation | ($167) | ($90) |\n| Basic and diluted loss per share attributable to Bausch + Lomb | ($0.48) | ($0.26) | [Reconciliation of GAAP Net Loss to Adjusted Net Income and EPS (non-GAAP)](index=13&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20and%20Diluted%20Loss%20per%20Share%20Attributable%20to%20Bausch%20%2B%20Lomb%20Corporation%20to%20Adjusted%20Net%20Income%20%28non-GAAP%29%20and%20Adjusted%20Earnings%20Per%20Share%20%28non-GAAP%29) This table reconciles GAAP net loss and diluted loss per share to **Adjusted Net Income (non-GAAP)** and **Adjusted EPS (non-GAAP)**, showing a Q1 2024 GAAP net loss of **($167) million** adjusted to a non-GAAP net income of **$24 million** Reconciliation of GAAP Net Loss to Adjusted Net Income (non-GAAP) (Three Months Ended March 31) | Metric | 2024 Income (Expense) (Millions) | 2024 Share Impact | 2023 Income (Expense) (Millions) | 2023 Share Impact | |:------------------------------------------------------------------------------------------------------|:---------------------------------|:------------------|:---------------------------------|:------------------|\n| Net loss and Diluted loss per share attributable to Bausch + Lomb Corporation | ($167) | ($0.48) | ($90) | ($0.26) |\n| Amortization of intangible assets | $74 | $0.21 | $57 | $0.16 |\n| Restructuring, integration and transformation costs | $28 | $0.08 | $32 | $0.09 |\n| Acquisition-related costs and adjustments (excluding amortization of intangible assets) | $21 | $0.06 | $1 | — |\n| Separation costs and separation-related costs | $2 | $0.01 | $3 | $0.01 |\n| Gain on sale of assets | ($4) | ($0.01) | — | — |\n| Other | $2 | $0.01 | — | — |\n| Tax effect of non-GAAP adjustments | $68 | $0.19 | $31 | $0.10 |\n| Total non-GAAP adjustments | $191 | $0.55 | $124 | $0.36 |\n| Adjusted net income (non-GAAP) and Adjusted earnings per share (non-GAAP) | $24 | $0.07 | $34 | $0.10 | [Reconciliation of GAAP Expenses to Adjusted Expenses (non-GAAP)](index=14&type=section&id=Reconciliation%20of%20GAAP%20Expenses%20to%20Adjusted%20Expenses%20%28non-GAAP%29) This section provides detailed reconciliations of various GAAP expense lines to their non-GAAP adjusted counterparts for Q1 2024 and Q1 2023, highlighting significant adjustments Reconciliation of GAAP Expenses to Adjusted Expenses (non-GAAP) (Three Months Ended March 31) | Expense Category | 2024 GAAP (Millions) | 2024 Adjustments (Millions) | 2024 Adjusted (Millions) | 2023 GAAP (Millions) | 2023 Adjustments (Millions) | 2023 Adjusted (Millions) | |:-------------------------------------------------------------------------------|:---------------------|:----------------------------|:-------------------------|:---------------------|:----------------------------|:-------------------------|\n| Cost of goods sold (excluding amortization and impairments of intangible assets)| $423 | ($20) | $403 | $371 | — | $371 |\n| Selling, general and administrative | $504 | ($19) | $485 | $418 | ($27) | $391 |\n| Research and development | $82 | ($1) | $81 | $77 | — | $77 |\n| Amortization of intangible assets | $74 | ($74) | $0 | $57 | ($57) | $0 |\n| Other expense, net | $9 | ($9) | $0 | $9 | ($1) | $8 |\n| Provision for income taxes | ($73) | $68 | ($5) | ($33) | $31 | ($2) | [Reconciliation of GAAP Net Loss to Adjusted EBITDA (non-GAAP)](index=15&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA%20%28non-GAAP%29) The reconciliation shows that GAAP net loss attributable to Bausch + Lomb Corporation was **($167) million** in Q1 2024, resulting in an Adjusted EBITDA (non-GAAP) of **$180 million**, a significant increase from **$141 million** in Q1 2023 Reconciliation of GAAP Net Loss to Adjusted EBITDA (non-GAAP) (Three Months Ended March 31) | Metric | 2024 (Millions) | 2023 (Millions) | |:--------------------------------------------------------------------|:----------------|:----------------|\n| Net loss attributable to Bausch + Lomb Corporation | ($167) | ($90) |\n| Interest expense, net | $96 | $47 |\n| Provision for income taxes | $73 | $33 |\n| Depreciation and amortization of intangible assets | $110 | $91 |\n| **EBITDA** | **$112** | **$81** |\n| Restructuring, integration and transformation costs | $28 | $32 |\n| Acquisition-related costs and adjustments (excluding amortization) | $21 | $1 |\n| Share-based compensation | $19 | $24 |\n| Separation costs and separation-related costs | $2 | $3 |\n| Gain on sale of assets | ($4) | — |\n| Other non-GAAP adjustments | $2 | — |\n| **Adjusted EBITDA (non-GAAP)** | **$180** | **$141** | [Constant Currency Revenue by Segment (non-GAAP)](index=16&type=section&id=Constant%20Currency%20Revenue%20%28non-GAAP%29%20and%20Constant%20Currency%20Revenue%20Growth%20%28non-GAAP%29%20-%20by%20Segment) This table details revenue performance by segment on both a reported and constant currency basis for Q1 2024 and Q1 2023, showing total constant currency revenue of **$1,119 million** Constant Currency Revenue by Segment (non-GAAP) (Three Months Ended March 31) | Segment | 2024 Revenue as Reported (Millions) | Changes in Exchange Rates (Millions) | 2024 Constant Currency Revenue (Millions) | 2023 Revenue as Reported (Millions) | Change in Reported Amount (Millions) | Reported Pct. Change | Change in Constant Currency Revenue (Millions) | Constant Currency Pct. Change | |:----------------|:------------------------------------|:-------------------------------------|:------------------------------------------|:------------------------------------|:-------------------------------------|:---------------------|:-----------------------------------------------|:------------------------------|\n| Vision Care | $635 | $18 | $653 | $587 | $48 | 8% | $66 | 11% |\n| Surgical | $197 | $1 | $198 | $183 | $14 | 8% | $15 | 8% |\n| Pharmaceuticals | $267 | $1 | $268 | $161 | $106 | 66% | $107 | 66% |\n| Total revenues | $1,099 | $20 | $1,119 | $931 | $168 | 18% | $188 | 20% |

Bausch + Lomb (BLCO) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnin ...

VAUGHAN, Ontario--(BUSINESS WIRE)--Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, today announced that Karen L. Ling has been appointed to its Board of Directors (the “Board”), effective immediately. Current director Richard De Schutter will retire from the Board effective as of the company’s 2024 Annual Meeting of Shareholders (the “Annual Meeting”). With Ms. Ling’s appointment, the Board has been temporarily expanded t ...

Financial Data and Key Metrics Changes - Total company revenue for Q4 was $1.173 billion, reflecting a growth of 19% on a constant currency basis. For the full year, total revenue was $4.146 billion, showing a growth of 12% on a constant currency basis [36][67] - Adjusted EBITDA for Q4 was $231 million, representing a 28% growth compared to Q4 2022. Full year adjusted EBITDA was $738 million, negatively impacted by currency headwinds of $51 million [38][39] - Adjusted gross margin for Q4 was 62.5%, up 470 basis points compared to Q4 2022. For the full year, adjusted gross margin was 61%, up 130 basis points compared to last year [38] Business Line Data and Key Metrics Changes - Vision care revenue for Q4 was $662 million, increasing by 8% on a constant currency basis. For the full year, vision care revenue was $2.543 billion, up 10% on a constant currency basis [37] - Surgical segment revenue for Q4 was $204 million, a 7% increase on a constant currency basis. For the full year, growth was also 7% on a constant currency basis [29] - Pharma segment revenue for Q4 was $307 million, representing constant currency growth of 66%. For the full year, pharma revenue was $836 million, reflecting constant currency growth of 24% [65] Market Data and Key Metrics Changes - Daily silicone hydrogel (SiHy) lenses reported a revenue growth of 31% in Q4. The overall contact lens market is growing around 7% to 8% globally [10][56] - The premium intraocular lens (IOL) portfolio grew by 30% in constant currency in Q4, indicating strong demand in the surgical market [48] Company Strategy and Development Direction - The company is focused on driving margin expansion sustainably, with expectations for margin improvement in 2024, 2025, and 2026 [3][17] - Significant investments are being made in R&D capabilities and business development to build a robust pipeline across all business segments [9][43] - The company aims to optimize its supply chain to become a competitive advantage, with ongoing efforts to streamline operations and reduce complexity [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, highlighting a strong focus on execution and the potential for significant growth driven by recent and upcoming product launches [20][41] - The company is committed to investing in marketing and sales for Miebo and Xiidra to unlock their full potential in the dry eye market [41][67] Other Important Information - The company expects 2024 revenue guidance in the range of $4.6 billion to $4.7 billion, reflecting expected constant currency growth of approximately 12% to 14% [67] - Currency headwinds are anticipated to negatively impact revenue by approximately $40 million for the full year [67] Q&A Session Summary Question: What percentage of your contact lenses are silicone hydrogel today versus a year ago? - The company reported that silicone hydrogel lenses are currently around 10% of their portfolio, growing rapidly with double-digit growth [10] Question: How are you feeling about M&A at this stage? - Management indicated that the priority is to digest and delever the Novartis assets, while also exploring smaller products and R&D assets for future growth [9] Question: Can you provide insights on Xiidra's performance and future expectations? - Xiidra delivered $106 million in revenue in Q4, exceeding guidance. The company expects to generate approximately $400 million in revenue for Xiidra in 2024 [65][66] Question: What is the outlook for Miebo's contribution to growth? - Miebo is expected to contribute approximately $95 million in revenue in 2024, with strong early performance and positive feedback from eyecare professionals [67]

Bausch + Lomb (BLCO) reported $1.17 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 17.8%. EPS of $0.24 for the same period compares to $0.23 a year ago.The reported revenue represents a surprise of +7.50% over the Zacks Consensus Estimate of $1.09 billion. With the consensus EPS estimate being $0.17, the EPS surprise was +41.18%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...

Bausch + Lomb Corp.’s stock soared 10% early Wednesday, after the vision-care company’s adjusted fourth-quarter profit topped estimates and it offered upbeat revenue guidance for 2024. The Vaughan, Ontario-based company BLCO, +1.96% had a net loss of $54 million, or 15 cents a share, for the quarter, after a loss of $1 million in the year-earlier period. Adjusted per-share earnings came to 24 cents, ahead of the 17-cent FactSet consensus.Revenue rose to $1.173 billion from $996 million a year ago, also ahe ...

9 1. Products with sales outside the United States impacted by F/X changes. 2. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAAP measures and ratios. 3. Effective in the first quarter of 2023, certain products historically included in the reported results of the Pharmaceuticals segment are now included in the reported results of the Vision Care segment and certain products included in the reported results of the Vision Care segment are now included in the repo ...