Bioventus (US:BVS)2023-08-12 17:56Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $137 million, a decline of 2% compared to the same period last year. Adjusting for the divestiture of the wound business, revenue growth was even with the prior year [23][28] - Adjusted EBITDA increased to $28 million from $22 million in the prior year, representing a growth of nearly 27% [7][58] - Adjusted earnings per share were $0.14 for the quarter compared to $0.10 in the prior year [58] Business Line Data and Key Metrics Changes - Pain treatments sales declined by 4% year-over-year, primarily due to pricing pressure, but there was double-digit volume growth for DUROLANE and SUPARTZ [29] - Surgical Solutions revenue growth slowed due to increased distributor churn, but growth is expected to accelerate in the second half of the year [11] - Restorative Therapies revenue fell by 8%, largely due to the wound business divestiture, with organic revenue declining by 2% [30] Market Data and Key Metrics Changes - The International segment grew by 16%, with constant currency growth at 17%, driven by strength in the Surgical Solutions business and EXOGEN [26] - The overall market for HA products is expected to see a reduction in revenue of high single to low double digits due to lower selling prices, but growth is anticipated to return in Q4 2023 [24] Company Strategy and Development Direction - The company is focusing on sustainable profitable growth and is selective in investment areas due to current leverage [8] - There is an emphasis on improving operating efficiencies to bolster cash flow and enhance internal controls [9] - The company plans to maintain cost control while selectively investing in areas that promise sustainable growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver on revenue and earnings commitments for the year, while also improving processes and controls [87] - The leadership team is focused on addressing last year's challenges and is optimistic about the company's future performance [19][53] - Management anticipates price stabilization in the HA portfolio starting in Q4 2023, which should support revenue growth [24][49] Other Important Information - The company ended the quarter with $29 million in cash and $386 million in debt, having reduced overall bank borrowings by $60 million [32] - Adjusted gross margin was 74%, down 280 basis points compared to the prior year, primarily due to increased private payer revenue and an unfavorable product mix [57] Q&A Session Summary Question: What are the growth expectations for the pain business in the future? - Management indicated that they are growing volume faster than the market, with double-digit growth, while the market itself is growing at 3% to 5% [63][64] Question: Are there plans for further divestitures? - Management stated that they are focused on reducing debt and simplifying the business, with ongoing discussions about potential divestitures that make strategic sense [41][66] Question: How is employee morale and turnover post-restructuring? - Management reported improved morale and a strong team dynamic, with turnover levels consistent with industry norms [98][101]