Harvard Bioscience(HBIO) - 2024 Q1 - Quarterly Results

Financial Highlights Harvard Bioscience experienced Q1 2024 revenue decline due to market headwinds, maintaining strong gross margins while implementing cost reductions and anticipating second-half growth - CEO Jim Green noted Q1 revenues were impacted by market headwinds, particularly in APAC, despite achieving a 60% gross margin[2] - Solid growth is anticipated in the second half of the year, driven by new product commercializations and expected Chinese stimulus for academic research and healthcare[2] Q1 2024 Financial Results Summary | Financial Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues (Millions USD) | $24.5 | $30.0 | | Gross Margin (%) | 60.3 | 61.2 | | Operating (Loss) Income (GAAP) (Millions USD) | $(2.3) | $1.7 | | Adjusted Operating Income (Millions USD) | $1.2 | $4.4 | | Net (Loss) Income (GAAP) (Millions USD) | $(4.7) | $0.6 | | Diluted (Loss) EPS (GAAP) (USD/share) | $(0.11) | $0.01 | | Diluted Adjusted EPS (USD/share) | $0.02 | $0.06 | | Adjusted EBITDA (Millions USD) | $1.6 | $4.8 | | Adjusted EBITDA Margin (%) | 6.6 | 15.9 | Detailed Financial Performance The company experienced a Q1 2024 revenue decline and net loss, with full-year 2024 revenues expected to be flat, anticipating second-half growth and stable margins First Quarter 2024 Results Q1 2024 results indicate a revenue decrease and net loss, alongside positive cash flow from operations and a reduction in debt Q1 Revenue and Gross Margin Comparison | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues (Millions USD) | $24.5 | $30.0 | | Gross Margin (%) | 60.3 | 61.2 | - The company reported a net loss of $(4.7) million, including a $(2.3) million loss on marketable securities and other operating expenses, compared to a net income of $0.6 million in Q1 2023[4] Q1 Adjusted EBITDA and Cash Flow | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Adjusted EBITDA (Millions USD) | $1.6 | $4.8 | | Cash provided by operations (Millions USD) | $1.4 | $1.8 | - Debt was reduced by $1.0 million during the first quarter of 2024[5] 2024 Guidance Full-year 2024 revenues are projected to be flat, with anticipated second-half growth, a 60% gross margin, and mid-teens adjusted EBITDA margin - Full-year 2024 revenues are expected to be approximately flat compared to 2023[6] - Growth is anticipated in the second half of 2024, driven by new product commercializations and expected improvements in China[6] - The company expects a full-year 2024 gross margin of approximately 60% and an adjusted EBITDA margin in the mid-teens[6] Financial Statements The consolidated financial statements detail Q1 2024 performance, showing a net loss, total assets of $133.2 million, and $1.4 million in cash from operations Consolidated Statements of Operations The Q1 2024 Consolidated Statement of Operations reports revenues of $24.5 million, an operating loss of $(2.3) million, and a net loss of $(4.7) million Q1 2024 Consolidated Statement of Operations (in thousands) | Line Item | Q1 2024 (Thousands USD) | Q1 2023 (Thousands USD) | | :--- | :--- | :--- | | Revenues | $24,512 | $29,975 | | Gross Profit | $14,772 | $18,346 | | Total Operating Expenses | $17,051 | $16,597 | | Operating (Loss) Income | $(2,279) | $1,749 | | Net (Loss) Income | $(4,694) | $622 | | Diluted (Loss) EPS | $(0.11) | $0.01 | Condensed Consolidated Balance Sheets As of March 31, 2024, the balance sheet shows total assets of $133.2 million, with $4.3 million in cash and $31.9 million in long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 (Thousands USD) | Dec 31, 2023 (Thousands USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $4,255 | $4,283 | | Total current assets | $48,148 | $49,038 | | Total assets | $133,161 | $137,366 | | Total current liabilities | $25,677 | $26,542 | | Long-term debt, net | $31,890 | $30,704 | | Stockholders' equity | $68,812 | $73,074 | | Total liabilities and stockholders' equity | $133,161 | $137,366 | Condensed Consolidated Statements of Cash Flows Q1 2024 cash flow statements show $1.4 million provided by operating activities, with net cash used in investing and financing activities Q1 Condensed Consolidated Statement of Cash Flows (in thousands) | Cash Flow Activity | Q1 2024 (Thousands USD) | Q1 2023 (Thousands USD) | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,403 | $1,812 | | Net cash (used in) provided by investing activities | $(225) | $288 | | Net cash used in financing activities | $(1,055) | $(2,893) | | Decrease in cash and cash equivalents | $(28) | $(719) | Non-GAAP Financial Measures The company uses non-GAAP measures to clarify core operational performance, reconciling Q1 2024 GAAP operating loss to $1.2 million adjusted operating income and net loss to $0.7 million non-GAAP net income Use of Non-GAAP Financial Information Non-GAAP financial information is provided to enhance understanding of underlying operations by excluding specific non-representative items - Non-GAAP financial information is included to provide investors with an enhanced understanding of the business's underlying operations[9] - Excluded items from non-GAAP measures, such as stock-based compensation and amortization of intangibles, are not considered representative of underlying operations[9] Reconciliation of GAAP to Non-GAAP Measures This section reconciles Q1 2024 GAAP operating loss to $1.2 million adjusted operating income and net loss to $0.7 million non-GAAP net income, detailing adjustments and net debt Q1 2024 GAAP to Non-GAAP Reconciliation Highlights (in thousands) | Metric | GAAP (Thousands USD) | Adjustments (Thousands USD) | Non-GAAP (Adjusted) (Thousands USD) | | :--- | :--- | :--- | :--- | | Operating (Loss) Income | $(2,279) | $3,450 | $1,171 | | Net (Loss) Income | $(4,694) | $5,389 | $695 | | Diluted (Loss) EPS | $(0.11) | - | $0.02 | - Other operating expenses in Q1 2024 totaled $966 thousand, including a $0.5 million commission fee for employee retention credits and an estimated $0.5 million loss from an unclaimed property audit[23] Net Debt Calculation (in thousands) | Date | Total Debt (Thousands USD) | Cash (Thousands USD) | Net Debt (Thousands USD) | | :--- | :--- | :--- | :--- | | Mar 31, 2024 | $35,610 | $(4,255) | $31,845 | | Dec 31, 2023 | $36,563 | $(4,283) | $32,840 | | Mar 31, 2023 | $44,053 | $(3,789) | $41,034 | Corporate Information and Forward-Looking Statements This section outlines Harvard Bioscience's business in life science technologies, details investor communications, and includes a safe harbor statement for forward-looking information - Harvard Bioscience develops and sells life science technologies globally, serving academic, government, pharmaceutical, and biotech sectors[13] - The report includes forward-looking statements regarding future financial performance, growth, and new product introductions, subject to inherent risks and uncertainties[15] - A conference call and webcast were hosted on May 7, 2024, at 8:00 a.m. Eastern Time to discuss the financial results[7]