PART I—FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for QuidelOrtho Corporation for the quarterly period ended April 2, 2023, including various statements and detailed notes on accounting policies [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheet as of April 2, 2023, shows total assets of **$8.79 billion**, a slight decrease from **$8.86 billion** at the beginning of the year, with total liabilities decreasing to **$3.79 billion** from **$3.92 billion**, and total stockholders' equity increasing to **$5.00 billion** from **$4.93 billion** Consolidated Balance Sheet Highlights (in millions) | Account | April 2, 2023 | January 1, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$8,787.1** | **$8,855.8** | | Total Current Assets | $1,498.9 | $1,575.1 | | Goodwill | $2,491.3 | $2,476.8 | | Intangible assets, net | $3,078.5 | $3,123.8 | | **Total Liabilities** | **$3,790.6** | **$3,921.2** | | Total Current Liabilities | $907.8 | $1,007.0 | | Long-term borrowings | $2,379.6 | $2,430.8 | | **Total Stockholders' Equity** | **$4,996.5** | **$4,934.6** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended April 2, 2023, total revenues were **$846.1 million**, a decrease from **$1,002.3 million** in the prior-year period, leading to a significant decline in net income to **$48.8 million** from **$479.9 million** Consolidated Statement of Income (in millions, except per share data) | Metric | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | | :--- | :--- | :--- | | Total revenues | $846.1 | $1,002.3 | | Operating income | $99.6 | $620.7 | | Net income | $48.8 | $479.9 | | Diluted earnings per share | $0.73 | $11.31 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first three months of 2023, net cash provided by operating activities was **$188.9 million**, a decrease from **$500.9 million** in the same period of 2022, resulting in a net increase in cash of **$61.0 million** Cash Flow Summary (in millions) | Activity | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $188.9 | $500.9 | | Net cash used for investing activities | $(68.9) | $(24.7) | | Net cash used for financing activities | $(59.6) | $(3.4) | | **Net increase in cash** | **$61.0** | **$472.7** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial results, covering topics such as the Ortho business combination, revenue recognition, segment information, and long-term borrowings - The business combination with Ortho Clinical Diagnostics Holdings plc was completed on May 27, 2022, with Quidel considered the accounting and legal acquirer. The total consideration was approximately **$4.3 billion**[31](index=31&type=chunk)[32](index=32&type=chunk) - For the three months ended April 2, 2023, sales of COVID-19 products accounted for **26%** of total revenues, a significant decrease from **83%** in the same period of 2022[42](index=42&type=chunk) - The company entered into a credit agreement on May 27, 2022, which includes a **$2.75 billion** senior secured term loan and an **$800.0 million** revolving credit facility[64](index=64&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2023 financial performance, highlighting a **16%** revenue decrease due to declining COVID-19 testing demand, the impact of the Ortho business combination, and the outlook for core product growth [Overview and Outlook](index=21&type=section&id=Overview%20and%20Outlook) The company's Q1 2023 revenue decreased by **16%** year-over-year, primarily due to a sharp decline in respiratory product sales, with an outlook anticipating fluctuating COVID-19 test demand but growth in core non-respiratory products - Total revenues for Q1 2023 decreased by **16%** to **$846.1 million** compared to the prior year[100](index=100&type=chunk) - Revenues from respiratory products accounted for approximately **31%** of total revenues in Q1 2023, down from **93%** in Q1 2022[100](index=100&type=chunk) - The company expects demand for COVID-19 testing products to continue to fluctuate, but anticipates revenue growth for its core products (excluding respiratory) for the remainder of 2023[106](index=106&type=chunk)[107](index=107&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Total revenues for Q1 2023 fell **16%** to **$846.1 million**, driven by decreased Point of Care and Molecular Diagnostics sales, partially offset by growth in Labs and Transfusion Medicine units due to the Ortho combination, leading to a sharp drop in operating income Revenues by Business Unit (in millions) | Business Unit | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Labs | $370.7 | $13.3 | 2,687% | | Transfusion Medicine | $155.9 | — | N/A | | Point of Care | $308.1 | $943.0 | (67)% | | Molecular Diagnostics | $11.4 | $46.0 | (75)% | | **Total revenues** | **$846.1** | **$1,002.3** | **(16)%** | - Cost of sales increased to **47.0%** of total revenues, compared to **26.0%** in the prior year, driven by new product sales from the Combinations[111](index=111&type=chunk) - Operating expenses increased significantly, with Selling, marketing and administrative expenses up **138.7%** and R&D expenses up **136.0%**, primarily due to the business combination[113](index=113&type=chunk)[114](index=114&type=chunk) [Segment Results](index=25&type=section&id=Segment%20Results) North America revenues declined **39%** due to lower COVID-19 test demand, while EMEA, China, and Other segments experienced substantial revenue growth of **435%**, **711%**, and **559%** respectively, primarily driven by the Ortho business inclusion Segment Total Revenues (in millions) | Segment | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | North America | $582.8 | $961.5 | (39)% | | EMEA | $81.3 | $15.2 | 435% | | China | $70.6 | $8.7 | 711% | | Other | $111.4 | $16.9 | 559% | Segment Adjusted EBITDA (in millions) | Segment | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | North America | $278.4 | $713.4 | (61)% | | EMEA | $7.2 | $3.5 | 106% | | China | $28.5 | $3.8 | 650% | | Other | $21.8 | $9.5 | 129% | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) As of April 2, 2023, the company's liquidity included **$353.9 million** in cash and cash equivalents and **$787.0 million** available under its Revolving Credit Facility, deemed sufficient to fund operations for at least the next 12 months Sources of Liquidity (in millions) | Source | April 2, 2023 | January 1, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $353.9 | $292.9 | | Total cash, cash equivalents and marketable securities | $430.5 | $366.0 | | Amount available to borrow under Revolving Credit Facility | $787.0 | $786.9 | - The company's Credit Agreement includes a **$2.75 billion** Term Loan and an **$800.0 million** Revolving Credit Facility, both maturing on May 27, 2027[130](index=130&type=chunk)[131](index=131&type=chunk) - The company is focused on expanding instrument placements through a reagent rental model, which lowers upfront customer costs and is expected to grow the installed base and increase sales of higher-margin consumables[144](index=144&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate fluctuations on variable-rate debt and foreign currency exchange rate volatility, which it manages using derivative instruments for hedging purposes - The company is subject to interest rate risk on its variable rate debt, including a **$2.75 billion** Term Loan and an **$800.0 million** Revolving Credit Facility. A **0.125%** change in interest rates would impact annual interest expense by approximately **$4.2 million** before hedges[152](index=152&type=chunk) - To mitigate interest rate risk, the company has entered into interest rate swap agreements with a total notional value of **$1.3 billion** through December 2023, increasing to **$1.8 billion** subsequently[154](index=154&type=chunk) - Approximately **33%** of total revenues for Q1 2023 were derived from operations outside the U.S., exposing the company to foreign currency exchange risk. The company uses foreign currency forward contracts to manage this exposure, with a total notional amount of **$970.7 million** outstanding as of April 2, 2023[156](index=156&type=chunk)[160](index=160&type=chunk) [Controls and Procedures](index=31&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of April 2, 2023, with ongoing integration of the acquired Ortho business's internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of April 2, 2023[162](index=162&type=chunk) - As of April 2, 2023, the company is in the process of integrating the internal controls of the acquired Ortho business[163](index=163&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management believes the aggregate outcome of current actions will not have a material adverse effect on the company - The company accrues for legal claims when losses become probable and reasonably estimable. Management does not expect current legal actions to have a material adverse effect on the company[72](index=72&type=chunk)[73](index=73&type=chunk)[165](index=165&type=chunk) [Risk Factors](index=32&type=page&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors since those disclosed in its Annual Report on Form 10-K for the fiscal year ended January 1, 2023 - No material changes have occurred in the company's risk factors from those previously disclosed in the 2022 Annual Report on Form 10-K[166](index=166&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2023, the company repurchased **107,155** shares of common stock at an average price of **$88.07** per share to satisfy tax withholding obligations, with approximately **$225.7 million** remaining under its stock repurchase program Issuer Purchases of Equity Securities (Q1 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2 - Jan 29, 2023 | **1,988** | $85.69 | | Jan 30 - Feb 26, 2023 | **92,488** | $88.22 | | Feb 27 - Apr 2, 2023 | **12,679** | $87.33 | | **Total** | **107,155** | **$88.07** | - The shares were surrendered to the company to satisfy minimum tax withholding obligations and were not part of a publicly announced repurchase program[168](index=168&type=chunk) - As of April 2, 2023, approximately **$225.7 million** remained available for repurchase under the company's stock repurchase program authorized on August 17, 2022[168](index=168&type=chunk)[169](index=169&type=chunk) [Exhibits](index=33&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, new material agreements, and certifications by the Principal Executive Officer and Principal Financial Officer - Exhibits filed include certifications by the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[174](index=174&type=chunk) - A Special Advisor Agreement with Randall Steward and an Amended and Restated Individual Retirement Program for Werner Kroll are listed as new exhibits[174](index=174&type=chunk)

In terms of capital deployment in the first quarter, we paid down $52 million of debt working towards the $206 million minimum payments in 2023. And while we did not buy back any shares in the quarter, we intend to maintain a balanced and opportunistic approach to share repurchases while also continuing to prioritize our debt paydown going forward. Notably, following the end of the quarter, we made our final $40 million payment to Abbott for the $680 million purchase of the Alere cardiometabolic assets. We ...

• Non-respiratory revenue up 7% y/y on a supplemental combined basis QuidelOrtho – Proprietary & Confidential. | © 2023. All Rights Reserved. 8 • China strength was driven by the end of lockdowns Non-GAAP Financial Measures: This presentation contains financial measures, including but not limited to "constant currency" revenue changes, "adjusted net income," "adjusted diluted EPS," "adjusted EBITDA," "adjusted EBITDA margin," "supplemental combined adjusted net income," "supplemental combined adjusted dilut ...

February 15, 2023 QuidelOrtho Financial Results 4Q & FY 2022 © 2023. All Rights Reserved. 2 Forward-Looking Statements Forward-Looking Statements: This presentation of QuidelOrtho Corporation ("QuidelOrtho" or the "Company") contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements in this presentation by words such as "may," "will," "would," "expect," "anticipate," "believe," "estimate," "plan," "intend," "continue" o ...

Andrew Brackmann Yeah. Hey, Andrew. We did go -- the $300 million to $500 million is still our range. So thatÂ's consistent and we can talk about the government contracts. But thatÂ's -- we are not treating that as normal and usual. [Inaudible] Joe Busky Hey, guys. Thank you for taking the questions. Hey, guys. Thanks for taking the question. I appreciate it. Yeah. Thanks, Conor. Joe Busky Oh! Eliza. Doug Bryant Okay. Makes total sense. And then I just wanted to get some clarification around the EBITDA to f ...

QuidelOrtho Corporation (NASDAQ:QDEL) Q3 2022 Earnings Conference Call November 2, 2022 5:00 PM ET Company Participants Bryan Brokmeier - Vice President, Investor Relations Douglas Bryant - Chairman and CEO Joseph Busky - CFO Conference Call Participants Andrew Cooper - Raymond James Patrick Donnelly - Citi Andrew Brackmann - William Blair Alexander Nowak - Craig Hallum Casey Woodring - JP Morgan Operator Welcome to the QuidelOrtho Third Quarter 2022 Financial Results Conference Call and Webcast. At this ti ...

| --- | --- | |-----------------------------------|-------| | | | | | | | Forging the Future of Diagnostics | | | Financial Results 3Q 2022 | | Forward-Looking Statements Forward-Looking Statements: This presentation of QuidelOrtho Corporation ("QuidelOrtho" or the "Company") contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this presentation by words such as "may," "will ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 3, 2022 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commi ...

QuidelOrtho Corporation (NASDAQ:QDEL) Q2 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Bryan Brokmeier - Vice President, Investor Relations Douglas Bryant - Chairman and CEO Joseph Busky - CFO Conference Call Participants Jack Meehan - Nephron Research Andrew Cooper - Raymond James Casey Woodring - JP Morgan Alex Nowak - Craig Hallum Operator Welcome to the QuidelOrthoÂ's Second Quarter 2022 Financial Results Conference Call and Webcast. At this time, all participants lines are in ...

| --- | |-------| | | | | | | | | Forward-Looking Statements Forward-Looking Statements: This presentation of QuidelOrtho Corporation ("QuidelOrtho" or the "Company") contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this presentation by words such as "may," "will," "would," "expect," "anticipate," "believe," "estimate," "plan," "intend," "continue," or similar words, exp ...