Bausch Health(BHC)2025-02-19 21:25Revenue Performance - Total consolidated reported revenues for Q4 2024 were $2.56 billion, a 6% increase from $2.41 billion in Q4 2023, with organic revenue growth of 9%[4] - Full-year 2024 consolidated revenues reached $9.63 billion, up 10% from $8.76 billion in 2023, with organic revenue growth of 8%[4] - Product sales for Q4 2024 reached $2,528 million, a 6.1% increase from $2,382 million in Q4 2023[51] - Total revenues for the twelve months ended December 31, 2024, were $9,625 million, up 9.9% from $8,757 million in 2023[51] - Total revenues for Bausch Health Companies Inc. for the three months ended December 31, 2024, were $2.582 billion, an increase of 6% from $2.408 billion in 2023[64] - Bausch + Lomb's total revenue was $4,791 million, a 16% increase from $4,146 million in 2023[66] Segment Performance - The Salix segment reported Q4 revenues of $634 million, a 9% increase year-over-year, with organic growth of 12% after excluding divestitures[6] - The Solta Medical segment saw Q4 revenues of $138 million, a 34% increase, with organic growth of 35%[8] - The Bausch + Lomb segment reported Q4 revenues of $1.28 billion, a 9% increase, with organic growth of 10%[10] - Salix segment revenue reached $2,333 million, up 4% from $2,250 million in the previous year[66] - Solta Medical segment showed significant growth with revenue of $440 million, a 27% increase from $347 million in 2023[66] - Bausch Health's Pharmaceuticals segment revenue was $1,209 million, reflecting a 45% increase from $836 million in 2023[66] Profitability Metrics - Adjusted EBITDA for Q4 2024 was $935 million, an 8% increase from $869 million in Q4 2023, while full-year adjusted EBITDA was $3.31 billion, up 10% from $3.01 billion[16] - Consolidated net income for Q4 2024 was $93 million, compared to a net loss of $39 million in Q4 2023, marking a favorable change of $132 million[13] - Operating income for Q4 2024 was $558 million, compared to $362 million in Q4 2023, reflecting a 54.1% increase[51] - Adjusted net income for the twelve months ended December 31, 2024, was $1.394 billion, an increase from $1.274 billion in 2023, reflecting a growth of 9.4%[52] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $3.425 billion, an increase from $3.110 billion in 2023, reflecting a growth of 10.1%[62] Cash Flow and Debt Management - Cash provided by operating activities was $601 million for Q4 2024, compared to $390 million in Q4 2023, reflecting improved business performance[16] - Cash provided by operating activities for the twelve months ended December 31, 2024, was $1,597 million, compared to $1,032 million in 2023[68] - Consolidated cash, cash equivalents, and restricted cash totaled $1.20 billion as of December 31, 2024[18] - Total long-term debt decreased to $21,616 million in 2024 from $22,388 million in 2023[68] - The company reported a total of $20,480 million in debt obligations for 2024, down from $21,006 million in 2023[68] - The company is exploring capital market options to address its debt maturity profile, potentially involving pledging shares in Bausch + Lomb[18] Guidance and Future Outlook - The Company provides full-year 2025 revenue guidance of $9.900 - $10.150 billion, with a revenue growth of 2% - 6% compared to the prior year[20] - Adjusted EBITDA guidance for 2025 is set at $3.525 - $3.675 billion, reflecting a growth of 3% - 7% year-over-year[20] - Adjusted Operating Cash Flow is projected to be between $0.975 - $1.025 billion for 2025[20] Research and Development - CABTREO®, a triple combination product for acne vulgaris, was launched in Canada in October 2024[22] - RED-C, aimed at preventing overt hepatic encephalopathy, is on track for top-line Phase 3 results by early 2026[22] - Amiselimod, a treatment for ulcerative colitis, has met with major regulatory bodies and is awaiting feedback[22] - Thermage® FLX and Clear + Brilliant® Touch are undergoing regulatory approval processes in multiple countries, including Canada and Europe[22] - Research and development expenses for the twelve months ended December 31, 2024, totaled $616 million, slightly up from $604 million in 2023[51] - Research and development expenses for the three months ended December 31, 2024, were $163 million, slightly up from $152 million in 2023, reflecting a growth of 7.2%[54] Non-GAAP Measures - The Company emphasizes the importance of non-GAAP measures for evaluating performance and setting operational goals[29] - Adjusted EBITDA attributable to Bausch Health (non-GAAP) is used to provide a clearer picture of operational performance, excluding nonrecurring items[38] - Adjusted net income (non-GAAP) is utilized for strategic decision-making and evaluating performance trends, highlighting the company's focus on underlying operational results[42] - The company excluded acquisition-related costs and adjustments from its financial results to provide a clearer view of ongoing operations[39] - The Company does not provide reconciliations of projected Adjusted EBITDA to GAAP net income due to forecasting difficulties[20] Cost Management - The company reported a cost of goods sold of $711 million in Q4 2024, compared to $695 million in Q4 2023, indicating a 2.3% increase[51] - Bausch Health's adjusted cost of goods sold for the twelve months ended December 31, 2024, was $2.647 billion, compared to $2.496 billion in 2023, an increase of 6%[54] - Selling, general and administrative expenses for the twelve months ended December 31, 2024, totaled $3.296 billion, compared to $2.917 billion in 2023, marking a 13% increase[54] - The adjusted selling, general and administrative expenses for the three months ended December 31, 2024, were $795 million, up from $740 million in 2023, indicating a rise of 7.4%[54] Tax and Impairments - The company reported a provision for income taxes of $111 million for the three months ended December 31, 2024, compared to $40 million in 2023[62] - The company reported goodwill impairments of $91 million for the three months ended December 31, 2023, which were eliminated in 2024[55] - The company reported a tax effect of non-GAAP adjustments amounting to $(57) million for the twelve months ended December 31, 2024, compared to $25 million in 2023[55]