Bausch + Lomb (BLCO) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2024 was $1.196 billion, a 19% increase from $1.007 billion in Q3 2023[4] - GAAP net income attributable to Bausch + Lomb was $4 million, compared to a net loss of $84 million in Q3 2023, representing a favorable change of $88 million[10] - Adjusted EBITDA (non-GAAP) for Q3 2024 was $212 million, up from $187 million in Q3 2023, an increase of $25 million[12] - Product sales for Q3 2024 reached $1,192 million, a 19% increase from $1,004 million in Q3 2023[33] - The adjusted EBITDA for the three months ended September 30, 2024, was $212 million, up from $187 million in the same period of 2023, reflecting a growth of 13%[37] - The adjusted net income for the three months ended September 30, 2024, was $144 million, compared to a loss of $84 million in the same period of 2023[37] - The company reported a net income of $4 million in Q3 2024, a significant improvement from a net loss of $84 million in Q3 2023[33] Segment Performance - Pharmaceuticals segment revenue surged 76% to $306 million in Q3 2024, driven by the acquisition of XIIDRA and the launch of MIEBO[8] - Surgical segment revenue increased by 11% to $206 million, primarily due to demand for premium IOL products[7] - Vision Care segment revenue grew 6% to $684 million, supported by sales from the dry eye portfolio and SiHy Daily lenses[6] - The Vision Care segment reported revenue of $684 million for the three months ended September 30, 2024, a 6% increase from $648 million in the same period of 2023[38] - The Pharmaceuticals segment experienced significant growth, with revenue increasing by 76% to $306 million for the three months ended September 30, 2024, compared to $174 million in 2023[38] Cash Flow and Guidance - Cash flow from operations for Q3 2024 was $154 million, significantly up from $48 million in Q3 2023, an increase of $106 million[11] - Full-year 2024 revenue guidance raised to $4.725 - $4.825 billion, reflecting strong performance and reduced currency headwinds[13] - Bausch + Lomb's cash, cash equivalents, and restricted cash totaled $350 million as of September 30, 2024[14] - Bausch + Lomb's 2024 full-year guidance is based on current management expectations and includes anticipated growth in key products like XIIDRA® and MIEBO®[17] Costs and Expenses - Research and development expenses for Q3 2024 were $84 million, slightly up from $82 million in Q3 2023[33] - The adjusted selling, general, and administrative expenses for the three months ended September 30, 2024, were $495 million, compared to $396 million in the same period of 2023[36] - The cost of goods sold for Q3 2024 was $464 million, an increase of 18.7% from $391 million in Q3 2023[33] Non-GAAP Measures - Adjusted EPS (non-GAAP) for Q3 2024 was $0.13, down from $0.22 in Q3 2023[12] - Adjusted net income (non-GAAP) for Q3 2024 was $46 million, compared to $76 million in Q3 2023, reflecting a decrease of 39%[34] - Non-GAAP financial measures are utilized to supplement GAAP measures, aiding investors in assessing the company's performance[20] - The company emphasizes that certain costs related to acquisitions and separations are excluded from non-GAAP measures to provide a clearer financial picture[26] Risks and Challenges - Risks associated with the proposed separation from Bausch Health Companies Inc. include potential delays and the need for various regulatory approvals[16] - Economic factors such as inflation and interest rates are anticipated to adversely impact revenue, expenses, and margins[17] - The company has incurred restructuring and transformation costs related to operational improvements and the separation process, which are expected to fluctuate significantly[25] - The company is pursuing acquisitions, including XIIDRA® and other ophthalmology assets, with associated risks of not realizing expected benefits in a timely manner[16] Foreign Exchange and Adjustments - The company experienced a foreign exchange loss of $5 million in Q3 2024, compared to a loss of $3 million in Q3 2023[33] - Total non-GAAP adjustments for Q3 2024 amounted to $42 million, compared to $160 million in Q3 2023[34] - The company utilized Constant Currency revenue growth to assess performance, indicating that foreign currency fluctuations can obscure underlying business trends[31]