– Revenue of $1,609.8 Million Grows 89.3%,
86.5% in Constant Currency –
– Excluding Acquisitions and Divestitures,
Organic Revenue More than Doubles –
– Company Announces New $1.0 Billion Share
Repurchase Authorization, Pays Off Revolving Debt –
Hologic, Inc. (Nasdaq: HOLX) announced today preliminary revenue
results for its first fiscal quarter ended December 26, 2020.
The Company expects to report total revenues of approximately
$1,609.8 million, an increase of 89.3% compared to the prior year
period, or 86.5% in constant currency. These preliminary results
compare to the Company’s most recent guidance range of $1,350 to
$1,425 million, which was provided on November 4, 2020.
“Hologic’s strong momentum continued in the first quarter of
fiscal 2021 as organic revenue more than doubled, well ahead of our
prior expectations,” said Steve MacMillan, the Company’s Chairman,
President and Chief Executive Officer. “Thanks to the incredible
efforts of our Diagnostics team, we provided almost 30 million
COVID-19 tests to global customers in the quarter. Importantly as
well, our Breast Health and Surgical businesses showed remarkable
strength, with each franchise posting growth in all major
geographies – the United States, Europe and Asia-Pacific. I am so
proud of how our teams are showing up for our customers around the
world every day.”
Global revenues by division are expected to be:
$s in millions
Preliminary
Q1’21
Q1’20
Reported
Change
Constant
Currency
Change
Diagnostics
$1,128.2
$311.5
262.2%
256.3%
Excluding Blood
$1,120.1
$299.5
274.0%
267.8%
Breast Health
$332.7
$331.1
0.5%
(0.6%)
GYN Surgical
$124.0
$119.1
4.1%
3.3%
Skeletal Health
$24.9
$23.5
6.0%
4.0%
Medical Aesthetics
$0.0
$65.3
N/A
N/A
Total
$1,609.8
$850.5
89.3%
86.5%
Excluding Divestitures and Acessa
Acquisition (Organic)
$1,600.5
$773.2
107.0%
104.0%
Hologic has not yet completed its financial close processes for
the first quarter of 2021, so GAAP financial results for the
quarter have not yet been finalized. However, the Company expects
non-GAAP diluted earnings per share (EPS) to be significantly
higher than the guidance provided on November 4, 2020.
Hologic intends to provide its full financial results for the
first quarter on January 27, 2021. Until that time, the preliminary
revenue results described in this press release are estimates only
and are subject to revisions that could differ materially. When the
Company reports its first quarter results, it also expects to
provide financial guidance for the second quarter of fiscal 2021,
following the completion of its quarterly forecasting process.
Share Repurchases, Debt
Reduction
Hologic also announced today that its Board of Directors
recently approved a new, five-year, $1.0 billion share repurchase
plan. Under its prior authorization, the Company repurchased nearly
1.5 million shares of stock for $101 million in the first
quarter.
In addition, during the first quarter the Company paid off the
$250 million balance on its revolving credit facility.
J.P. Morgan Healthcare
Conference
Hologic is providing these updates in advance of its
participation in the 39th Annual J.P. Morgan Healthcare Conference,
which begins on Monday, January 11, 2021. The Company will post its
conference presentation to the investors section of its website at
www.investors.hologic.com. Live webcasts of the Company’s
presentation and question and answer session, which begin at 11:40
a.m. Eastern Time Monday, also may be accessed there. The webcasts
will be available for 30 days.
Use of Non-GAAP Financial
Measures
The Company has presented certain non-GAAP financial measures in
this press release: constant currency revenue, organic revenue and
non-GAAP EPS. Constant currency calculations show reported current
period revenues as if the foreign exchange rates remain the same as
those in effect in the comparable prior year period. Organic
revenue is on a constant currency basis and excludes the divested
Blood Screening and Cynosure businesses, and the acquired Acessa
business. The Company defines its non-GAAP net income and EPS to
exclude, as applicable: (i) the amortization of intangible assets
and impairment of goodwill, intangible assets and equipment; (ii)
additional depreciation expense from acquired fixed assets and
accelerated depreciation related to consolidation and closure of
facilities; (iii) additional expenses resulting from the purchase
accounting adjustment to record inventory at fair value and
adjustments to contingent consideration; (iv) restructuring and
divestiture charges and facility closure and consolidation charges
and costs incurred to integrate acquisitions (including retention,
transaction bonuses, legal and professional consulting services)
and separate divested businesses from existing operations; (v)
expenses related to its divested Cynosure business incurred
subsequent to the disposition date primarily related to
indemnification provisions for legal and tax matters; (vi)
transaction related expenses for divestitures and acquisitions;
(vii) third-party expenses incurred related to implementing the
European MDR/IVDR requirements and obtaining the appropriate
approvals for its existing products; (viii) debt extinguishment
losses and related transaction costs; (ix) the unrealized (gains)
losses on the mark-to-market of forward foreign currency contracts
and foreign currency option contracts for which the Company has not
elected hedge accounting; (x) litigation settlement charges
(benefits) and non-income tax related charges (benefits); (xi)
other-than-temporary impairment losses on investments and realized
gains and losses resulting from the sale of investments; (xii) the
one-time discrete impact of tax reform and other one-time impacts
related to internal restructuring and non-operational items; (xiii)
other one-time, non-recurring, unusual or infrequent charges,
expenses or gains that may not be indicative of the Company's core
business results; and (xiv) income taxes related to such
adjustments. The Company is unable to provide GAAP EPS in this
press release because certain significant items have not yet been
finalized. Such items depend on various factors and could have a
material impact on reported GAAP EPS. These non-GAAP financial
measures should be considered supplemental to, and not a substitute
for, financial information prepared in accordance with GAAP. The
Company's definition of non-GAAP measures may differ from similarly
titled measures used by others.
The non-GAAP financial measures used in this press release
adjust for specified items that can be highly variable or difficult
to predict. The Company generally uses non-GAAP financial measures
to facilitate management's financial and operational
decision-making, including evaluation of Hologic's historical
operating results and comparison to competitors' operating results.
Non-GAAP financial measures reflect an additional way of viewing
aspects of the Company's operations that, when viewed with GAAP
results and the reconciliations to corresponding GAAP financial
measures (when they become available), may provide a more complete
understanding of factors and trends affecting Hologic's business.
Because non-GAAP financial measures exclude the effect of items
that increase or decrease the company's reported results of
operations, management strongly encourages investors to review,
when they become available, the Company's consolidated financial
statements and publicly filed reports in their entirety.
About Hologic, Inc.
Hologic, Inc. is an innovative medical technology company
primarily focused on improving women's health and well-being
through early detection and treatment. For more information on
Hologic, visit www.hologic.com.
Hologic and associated logos are trademarks and/or registered
trademarks of Hologic, Inc. and/or its subsidiaries in the United
States and/or other countries.
Forward-Looking
Statements
This news release contains forward-looking information that
involves risks and uncertainties, including statements relating to
the Company’s anticipated revenue results for the first quarter of
fiscal 2021. These forward-looking statements are based upon
assumptions made by the Company as of the date hereof and are
subject to known and unknown risks and uncertainties that could
cause actual results to differ materially from those
anticipated.
Risks and uncertainties that could adversely affect the
Company’s business and prospects, and otherwise cause actual
results to differ materially from those anticipated, include
without limitation: the severity and duration of the COVID-19
pandemic and its impact on the U.S. healthcare system, the U.S.
economy and worldwide economy; the timing, scope and effect of
further U.S. and international governmental, regulatory, fiscal,
monetary and public health responses to the COVID-19 pandemic;
continued demand for the Company’s COVID-19 TMA assay; the
Company’s ability to manufacture, on a scale necessary to meet
demand, its COVID-19 TMA assay as well as the Panther systems on
which the assay runs; U.S., European and general worldwide economic
conditions; worldwide economic conditions and related
uncertainties; the Company’s reliance on third-party reimbursement
policies to support the sales and market acceptance of its
products; uncertainties regarding healthcare reform legislation,
budget reduction or other cost containment efforts; changes in
guidelines, recommendations and studies published by various
organizations that could affect the use of the Company’s products;
risks associated with acquisitions, including, without limitation,
the Company’s ability to successfully integrate acquired
businesses, the risks that the acquired businesses may not operate
as effectively and efficiently as expected even if otherwise
successfully integrated; the risks of conducting business
internationally; the risk of adverse exchange rate fluctuations on
the Company’s international activities and businesses; the
Company’s ability to predict accurately the demand for its products
and develop strategies to address its markets successfully; and
competition.
The risks included above are not exhaustive. Other factors that
could adversely affect the Company's revenue results are described
in the filings made by the Company with the SEC. The Company
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statements presented
herein to reflect any change in expectations or any change in
events, conditions or circumstances on which any such statements
are based.
SOURCE: Hologic, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20210108005034/en/
Michael Watts Vice President, Investor Relations and Corporate
Communications (858) 410-8588
Hologic (NASDAQ:HOLX)
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