Bausch Health(BHC) - 2024 Q2 - Quarterly Results

Q2 2024 Financial & Operational Highlights Bausch Health achieved strong Q2 2024 results with 11% revenue growth and a 10% increase in Adjusted EBITDA, leading to raised full-year guidance Overall Performance Summary Bausch Health achieved strong Q2 2024 results with 11% revenue growth and a 10% increase in Adjusted EBITDA, leading to raised full-year guidance | Metric | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | | Consolidated Revenues | $2.40 billion | +11% Reported, +8% Organic | | GAAP Net Income Attributable to BHC | $10 million | - | | Adjusted EBITDA (non-GAAP) | $798 million | +10% | - The company raised its full-year 2024 guidance for both consolidated revenue and Adjusted EBITDA (non-GAAP)[3] - This marks the fifth consecutive quarter of year-over-year growth in both revenues and adjusted EBITDA, highlighting sustained momentum[4] Detailed Financial Performance Consolidated revenues grew 11% to $2.40 billion, driven by broad-based segment contributions, notably Bausch + Lomb and Solta Medical Revenue Performance by Segment Consolidated revenues grew 11% to $2.40 billion, driven by broad-based segment contributions, notably Bausch + Lomb and Solta Medical | Segment | Q2 2024 Revenue (millions) | Reported Change (YoY) | Organic Change (YoY) | | :--- | :--- | :--- | :--- | | Total Bausch Health | $2,403 | 11% | 8% | | Bausch Health (excl. B+L) | $1,187 | 5% | 6% | | Salix | $558 | 0% | 1% | | International | $276 | 7% | 6% | | Solta Medical | $102 | 16% | 19% | | Diversified | $251 | 10% | 12% | | Bausch + Lomb | $1,216 | 17% | 10% | Salix Segment Salix segment revenue remained flat at $558 million, as Xifaxan® growth was offset by declines in other products, resulting in 1% organic growth - Xifaxan® revenues grew 10% year-over-year, but this was offset by declines in other products, resulting in flat reported revenue for the segment[6] International Segment The International segment reported a 7% revenue increase to $276 million, with 6% organic growth driven by strong performance in Canada and Latin America - Organic revenue growth of 6% was led by strong performance in Canada (double-digit growth) and Latin America[6] Solta Medical Segment Solta Medical achieved strong results with a 16% reported revenue increase to $102 million and 19% organic growth, primarily from Asia-Pacific - The segment's 19% organic growth was driven by strong performance in the Asia-Pacific region, with South Korea being a key contributor[6] Diversified Segment The Diversified segment's revenue grew 10% to $251 million, with 12% organic growth driven by higher sales in Dermatology and Neurology - Organic revenue increased by 12%, primarily due to sales growth in Dermatology and Neurology[7] Bausch + Lomb Segment The Bausch + Lomb segment achieved a significant 17% reported revenue increase to $1,216 million, with 10% organic growth across all business units - The segment achieved 10% organic revenue growth, with positive contributions from all business units[7] Profitability and Cash Flow Operating income decreased to $389 million due to higher expenses, but Adjusted EBITDA grew 10% to $798 million, and operating cash flow significantly increased to $380 million | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Operating Income | $389 million | $412 million | | Net Income Attributable to BHC | $10 million | $26 million | | Adjusted Net Income (non-GAAP) | $328 million | $300 million | | GAAP EPS | $0.03 | $0.07 | | Adjusted EBITDA (non-GAAP) | $798 million | $727 million | | Cash Provided by Operating Activities | $380 million | $206 million | - The decrease in operating income was primarily due to higher selling, advertising, and promotion expenses, which offset the benefit of higher revenues[7] Balance Sheet and Liquidity Bausch Health maintained a solid liquidity position with $595 million in cash and $1.07 billion in available revolving credit, focusing on debt reduction - Key liquidity highlights as of June 30, 2024 include: - Consolidated cash and cash equivalents of $595 million. - Bausch Health (excl. B+L) had ~$950 million available under its 2027 revolving credit facility. - Bausch + Lomb had ~$120 million available under its revolving credit facility[10] - The company is actively evaluating strategies to reduce outstanding debt and improve its debt maturity profile[10] Business & Strategic Updates This section covers key updates on Xifaxan® intellectual property defense and progress in the company's R&D pipeline Xifaxan® Intellectual Property Update Bausch Health secured a legal victory affirming Xifaxan® 550 mg generic exclusivity until October 2029 and filed new patent infringement lawsuits - A Federal Circuit court ruling affirmed that the FDA cannot approve Norwich's first generic ANDA for Xifaxan® 550 mg tablets until October 2029[11] - The company has filed new patent infringement lawsuits against Norwich (for an amended ANDA) and Amneal related to their attempts to market a generic version of Xifaxan® 550 mg[12] R&D Pipeline Update The R&D pipeline is advancing with a Phase 3 protocol for Amiselimod, ongoing RED-C studies, and regulatory progress for aesthetic devices - Key pipeline developments include: - Amiselimod: Draft protocol for Phase 3 trial in moderate to severe UC submitted to the FDA. - RED-C: Both global Phase 3 studies are in the treatment phase. - Clear + Brilliant® Touch: Approved in Australia and the Philippines in Q2. - Next Generation Fraxel®: FDA submission is complete, with potential approval in H2 2024[12][13] 2024 Financial Outlook Bausch Health updated its full-year 2024 financial guidance, raising expectations for consolidated revenues and Adjusted EBITDA Updated Full-Year Guidance Bausch Health raised its full-year 2024 financial guidance for consolidated revenues and Adjusted EBITDA, reflecting strong first-half performance | Guidance (in Billions) | BHC (Consolidated) | BHC (excl. B+L) | B+L | | :--- | :--- | :--- | :--- | | Revenues | $9.400 - $9.650 | $4.700 - $4.850 | $4.700 - $4.800 | | Adjusted EBITDA (non-GAAP) | $3.21 - $3.36 | $2.36 - $2.46 | $0.85 - $0.90 | Appendix: Financial Tables The appendix provides detailed unaudited financial statements, reconciliations of GAAP to non-GAAP measures, and other financial information Detailed Financial Statements and Reconciliations This section presents detailed unaudited financial statements, including Consolidated Statements of Operations and reconciliations of GAAP to non-GAAP measures - The appendix includes the following key financial tables: - Consolidated Statements of Operations (unaudited). - Reconciliation of Net Income (GAAP) to Adjusted Net Income (non-GAAP). - Reconciliation of Net Income (GAAP) to Adjusted EBITDA (non-GAAP). - Calculation of Organic Revenue Growth (non-GAAP) by segment. - Other Financial Information, including cash and debt obligations[30][31][35]