Quidel Corporation (NASDAQ: QDEL), a provider of rapid
diagnostic testing solutions, cellular-based virology assays and
molecular diagnostic systems, announced today financial results for
the first quarter ended March 31, 2022.
First Quarter 2022 Highlights
- Total revenues increased 167% to $1,002.3 million, from $375.3
million in the first quarter of 2021.
- Total sales of COVID-19 products increased 211% to $836.1
million, from $269.1 million in the first quarter of 2021.
- Total sales of Influenza products were $89.1 million, as
compared to $16.4 million in the first quarter of 2021.
- Reported GAAP EPS of $11.31 per diluted share in the first
quarter of 2022, as compared to $4.09 per diluted share in the
first quarter of 2021.
- Reported non-GAAP EPS of $11.66 per diluted share in the first
quarter of 2022, as compared to $4.38 per diluted share in the
first quarter of 2021.
First Quarter 2022 Results
Total revenues for the first quarter of 2022 were $1,002.3
million, versus $375.3 million for the first quarter of 2021. The
167% increase in sales from the first quarter of 2021 was driven by
significantly increased sales of Rapid Immunoassay products that
were minimally offset by decreased sales of Cardiometabolic
Immunoassay and Molecular Diagnostic Solutions products. Currency
exchange rate impact for the first quarter of 2022 was unfavorable
by $1.0 million.
Rapid Immunoassay revenue increased by $655.1 million in the
first quarter of 2022 to $892.8 million, driven primarily by
significant sales of QuickVue® At-Home OTC COVID-19 tests, as well
as increased sales of Sofia® Influenza + SARS and Sofia Influenza
tests. Cardiometabolic Immunoassay revenue totaled $50.2 million in
the first quarter of 2022, as compared to $66.6 million in the
first quarter of 2021. The decline in Cardiometabolic Immunoassay
revenue was due to the impact of the transition agreement with
Beckman Coulter, Inc. for Beckman's B-type Natriuretic Peptide
assay business. Under such agreement, $16.8 million in revenue was
recorded in the first quarter of 2022 versus $33.5 million in the
first quarter of 2021. Molecular Diagnostic Solutions revenue in
the first quarter of 2022 was $46.0 million and Specialized
Diagnostic Solutions revenue increased 23% from the first quarter
of 2021 to $13.3 million.
“We had an extraordinary start to the year, achieving record
revenue and profitability along with strong cash generation as we
continued to execute against our growth roadmap. Our diverse suite
of assays, increasing brand strength, and growing installed base of
Sofia analyzers continue to propel our market expansion, broadening
our post-pandemic opportunities,” said Douglas Bryant, President
and Chief Executive Officer of Quidel. “Once again, the entire
Quidel team performed brilliantly, and we fired on all
cylinders.”
“With the planned acquisition of Ortho Clinical Diagnostics
Holdings plc (“Ortho”), which is expected to expand our Quidel
customer base and accelerate our market penetration even further,
the future looks exceptionally bright for Quidel. We are thrilled
by the expected synergies and catalysts from the combined business.
We believe it is a truly compelling formula that can position the
combined business for long-term growth and global impact in
delivering advanced diagnostics to improve human health,” Mr.
Bryant concluded.
Gross profit was $740.0 million, or 74% of revenue for the three
months ended March 31, 2022, compared to $302.0 million, or 80% of
revenue for the three months ended March 31, 2021. The $438.0
million increase in gross profit was due to higher sales volumes in
the current period, partially offset by changes in product mix and
lower selling prices for our SARS products. Gross margin for the
three months ended March 31, 2022 declined as compared to the same
period in the prior year, driven primarily by product mix and lower
selling prices. R&D expense increased by $3.1 million in the
first quarter of 2022 as compared to the same period last year,
primarily due to increased costs related to the Savanna®
development, partially offset by lower spending on QuickVue OTC
assays and Sofia projects. Sales and marketing expense increased by
$31.2 million in the first quarter of 2022 as compared to the same
period last year, primarily driven by higher freight expense due to
higher sales volume, higher product promotional spend associated
with the QuickVue At-Home OTC COVID-19 Test and higher compensation
costs driven by increased headcount. G&A expense increased by
$5.0 million in the first quarter of 2022 as compared to the same
period last year, primarily due to higher compensation costs driven
by outstanding performance during the current period.
In the first quarter of 2022, Quidel recorded an income tax
expense of $140.7 million, as compared to $43.7 million in the same
quarter of the prior year. The higher tax expense for the three
months ended March 31, 2022 compared to the same period in the
prior year is primarily a result of a proportionate increase in
pre-tax profits, as well as a decrease in tax deductions from
stock-based compensation.
Net income for the first quarter of 2022 was $479.9 million, or
$11.31 per diluted share, as compared to net income of $178.1
million, or $4.09 per diluted share, for the first quarter of 2021.
On a non-GAAP basis, adjusted net income for the first quarter of
2022 was $494.9 million, or $11.66 per diluted share, as compared
to adjusted net income of $190.5 million, or $4.38 per diluted
share, for the same period in 2021.
Non-GAAP Financial Information
Quidel is providing non-GAAP financial information to exclude
the effect of non-cash stock-based compensation, amortization of
intangibles, non-cash interest expense, foreign exchange gains and
losses, acquisition and integration costs, amortization of debt
issuance costs, and certain non-recurring items on net income and
earnings per share as a supplement to its consolidated financial
statements, which are presented in accordance with generally
accepted accounting principles in the U.S., or GAAP.
Quidel is providing the adjusted gross profit, adjusted
operating income, adjusted net income, adjusted net earnings per
share, and constant currency revenue information for the periods
presented because it believes these non-GAAP financial measures
enhance the comparison of Quidel’s financial results from
period-to-period and to that of its competitors. Constant currency
revenue is calculated by (i) translating current period revenues
using prior period exchange rates and (ii) excluding any hedging
effect recognized in the current period. The related constant
currency fluctuation rate (expressed as a percentage) is calculated
by determining the change in current period constant currency
revenue compared to prior period revenue.
The non-GAAP information in this press release is not meant to
be considered in isolation, or as a substitute for results prepared
in accordance with GAAP. A reconciliation of the non-GAAP financial
measures to the comparable GAAP measures is included in this press
release as part of the attached financial tables.
Conference Call Information
Quidel management will host a conference call to discuss the
first quarter 2022 results, as well as other business matters,
today beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time).
During the conference call, management may answer questions
concerning business and financial developments and trends. Quidel’s
responses to these questions, as well as other matters discussed
during the conference call, may contain or constitute material
information that has not been previously disclosed.
To participate in the live call by telephone from the U.S., dial
844-200-6205, or from outside the U.S., dial +1 929-526-1599, and
enter access code 708-757.
To join the live webcast, participants may click the following
link directly: https://events.q4inc.com/attendee/767185054, or
access the event via the Investor Relations section of the Quidel
website (http://ir.quidel.com).
The website replay will be available for one year. The telephone
replay will be available for 14 days beginning at 8:00 p.m. Eastern
Time (5:00 p.m. Pacific Time) on May 4, 2022 by dialing
929-458-6194 from the U.S., or by dialing +44-204-525-0658 for
international callers, and entering pass code 462-084.
About Quidel Corporation
Quidel Corporation (Nasdaq: QDEL) is a leading manufacturer of
diagnostic solutions at the point of care, delivering a continuum
of rapid testing technologies that further improve the quality of
health care throughout the globe. An innovator for over 40 years in
the medical device industry, Quidel pioneered the first FDA-cleared
point-of-care test for influenza in 1999 and was the first to
market a rapid SARS-CoV-2 antigen test in the U.S. Under trusted
brand names Sofia, Solana®, Lyra®, Triage® and QuickVue, Quidel’s
comprehensive product portfolio includes tests for a wide range of
infectious diseases, cardiac and autoimmune biomarkers, as well as
a host of products to detect COVID-19. Quidel’s mission is to
provide patients with immediate and frequent access to highly
accurate, affordable testing for the good of our families, our
communities and the world. For more information about Quidel, visit
quidel.com.
View our story told by our people at
www.quidel.com/ourstory.
Where You Can Find Additional Information
In connection with the proposed business combination transaction
among Quidel, Ortho and Coronado Topco, Inc. (“Topco”), Topco has
filed a registration statement on Form S-4 (File No. 333-262434)
with the Securities and Exchange Commission (the “Commission”) that
contains a definitive joint proxy statement/prospectus and other
relevant documents concerning the proposed transaction. The
registration statement, as amended, was declared effective by the
Commission on April 11, 2022. Each of Quidel and Ortho commenced
mailing copies of the definitive joint proxy statement/prospectus
to stockholders of Quidel and Ortho, respectively, on or about
April 11, 2022. Quidel and Ortho may also file other documents with
the Commission regarding the proposed transaction. This
communication is not a substitute for the joint proxy
statement/prospectus or registration statement or for any other
document that Quidel and Ortho have filed or may file with the
Commission in connection with the proposed transaction. YOU ARE
URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND THE OTHER
RELEVANT DOCUMENTS FILED WITH THE COMMISSION (INCLUDING ANY
AMENDMENTS OR SUPPLEMENTS THERETO) BECAUSE THEY CONTAIN IMPORTANT
INFORMATION ABOUT QUIDEL, ORTHO AND THE PROPOSED TRANSACTION. The
joint proxy statement/prospectus and the other documents filed with
the Commission may be obtained free of charge at the Commission’s
website, www.sec.gov. In addition, you may obtain free copies of
the joint proxy statement/prospectus and the other documents filed
by Quidel and Ortho with the Commission by requesting them in
writing from Quidel Corporation, 9975 Summers Ridge Road, San
Diego, California 92121, Attention: Investor Relations, or by
telephone at 858-646-8023, or from Ortho Clinical Diagnostics
Holdings plc, 1001 Route 202, Raritan, New Jersey 08869, Attention:
Investor Relations, or by directing a written request to SVC
Ortho-SVC@SARDVERB.com.
Quidel and Ortho and their respective directors and executive
officers may be deemed under the rules of the Commission to be
participants in the solicitation of proxies. Information about
Quidel’s directors and executive officers and their ownership of
Quidel’s common stock is set forth in the joint proxy
statement/prospectus. Information about Ortho’s directors and
executive officers and their ownership of Ortho’s ordinary shares
is also set forth in the joint proxy statement/prospectus. The
joint proxy statement/prospectus may be obtained free of charge
from the sources indicated above. Information regarding the
identity of the potential participants, and their direct or
indirect interests in the transaction, by security holdings or
otherwise, is included in the joint proxy statement/prospectus,
which constitutes a part of the registration statement on Form S-4
filed by Topco with the Commission, as amended from time to time.
Stockholders may obtain additional information about the interests
of the directors and executive officers in the proposed transaction
by reading the joint proxy statement/prospectus and other relevant
materials filed with the Commission.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. You can identify these statements and other forward-looking
statements in this press release by words such as “may,” “will,”
“would,” “expect,” “anticipate,” “believe,” “estimate,” “plan,”
“intend,” “continue,” or similar words, expressions or the negative
of such terms or other comparable terminology. These statements
include, but are not limited to, the benefits of the business
combination transaction involving Quidel, Ortho and Topco,
including the combined company’s future financial and operating
results, plans, objectives, expectations and intentions and other
statements that are not historical facts. Such statements are based
upon the current beliefs and expectations of Quidel’s and Ortho’s
management and are subject to significant risks and uncertainties.
Actual results may differ from those set forth in the
forward-looking statements.
The following factors, among others, could cause actual results
to differ from those set forth in the forward-looking statements:
the evolution of the COVID-19 pandemic and its impact; competition;
our development of new technologies, products, and markets; our
reliance on sales of our COVID-19 and influenza diagnostic tests;
our reliance on a limited number of key distributors; acceptance of
our products among physicians, healthcare providers, or other
customers; the impact of third-party reimbursement policies; our
ability to meet demand for our products; interruptions in our
supply of raw materials and other product and production
components; costs and disruptions from failures in our information
technology and storage systems; international risks, including
compliance with product registration requirements and legal
requirements, tariffs, currency exchange fluctuations, reduced
protection of intellectual property rights, and taxes; worldwide
economic, political, and social uncertainty; our development,
acquisition, and protection of proprietary technology rights;
intellectual property risks and third-party claims of infringement;
loss of our Emergency Use Authorization from the U.S. Food and Drug
Administration for our COVID-19 products; failures or delays in
receiving regulatory approvals, clearances, or authorizations, the
loss of previously received approvals, or other adverse actions by
regulatory authorities; performance, timing, funding and compliance
risks relating to government contracts; product defects; compliance
with government regulations relating to the handling, storage, and
disposal of hazardous substances; our ability to identify and
successfully acquire and integrate potential acquisition targets;
our need for additional funds to finance our capital or operating
needs; failure to complete the proposed business combination
transaction with Ortho on the proposed terms or on the anticipated
timeline, or at all, including risks and uncertainties related to
securing the necessary regulatory and stockholder approvals, the
sanction of the High Court of Justice of England and Wales and
satisfaction of other closing conditions to consummate the proposed
transaction; the occurrence of any event, change or other
circumstance that could give rise to the termination of the
definitive transaction agreement relating to the proposed business
combination transaction; the challenges and costs of closing,
integrating, restructuring and achieving anticipated synergies; the
ability to retain key employees; and other economic, business,
competitive, and/or regulatory factors affecting the businesses of
Quidel and Ortho generally. Additional risks and factors are
identified under “Risk Factors” in the joint proxy
statement/prospectus and in Quidel's Annual Report on Form 10-K
filed on February 18, 2022 and subsequent reports filed with the
Commission.
You should not rely upon forward-looking statements as
predictions of future events because these statements are based on
assumptions that may not come true and are speculative by their
nature. Neither Quidel nor Ortho undertakes an obligation to update
any of the forward-looking information included in this press
release, whether as a result of new information, future events,
changed expectations or otherwise, except as required by law.
The City Code on Takeovers and Mergers
The City Code on Takeovers and Mergers does not apply to the
proposed business combination.
QUIDEL CORPORATION
(In thousands, except per share
data; unaudited)
Three months ended March
31,
Consolidated Statements of
Operations:
2022
2021
Total revenues
$
1,002,259
$
375,338
Cost of sales
262,301
73,379
Gross profit
739,958
301,959
Research and development
26,368
23,304
Sales and marketing
65,388
34,233
General and administrative
24,508
19,507
Acquisition and integration costs
3,037
726
Total operating expenses
119,301
77,770
Operating income
620,657
224,189
Interest and other expense, net
29
2,382
Income before income taxes
620,628
221,807
Provision for income taxes
140,692
43,723
Net income
$
479,936
$
178,084
Basic earnings per share
$
11.46
$
4.19
Diluted earnings per share
$
11.31
$
4.09
Shares used in basic per share
calculation
41,875
42,510
Shares used in diluted per share
calculation
42,449
43,533
Gross profit as a % of total revenues
74
%
80
%
Research and development as a % of total
revenues
3
%
6
%
Sales and marketing as a % of total
revenues
7
%
9
%
General and administrative as a % of total
revenues
2
%
5
%
Consolidated net revenues by product
category are as follows:
Rapid Immunoassay
$
892,810
$
237,670
Cardiometabolic Immunoassay
50,153
66,552
Molecular Diagnostic Solutions
45,989
60,263
Specialized Diagnostic Solutions
13,307
10,853
Total revenues
$
1,002,259
$
375,338
Condensed balance sheet data:
3/31/2022
12/31/2021
Cash and cash equivalents
$
1,275,536
$
802,751
Accounts receivable, net
$
569,817
$
377,969
Inventories
$
181,388
$
198,765
Total assets
$
3,093,125
$
2,430,374
Short-term debt
$
255
$
275
Long-term debt
$
290
$
361
Stockholders’ equity
$
2,414,922
$
1,929,362
QUIDEL CORPORATION
Reconciliation of Non-GAAP
Financial Information
(In thousands, except per share
data; unaudited)
Three months ended March
31,
Gross Profit
Operating Income
Net Income
Diluted EPS
2022
2021
2022
2021
2022
2021
2022
2021
GAAP Financial Results
$
739,958
$
301,959
$
620,657
$
224,189
$
479,936
$
178,084
$
11.31
$
4.09
Adjustments:
Non-cash stock compensation expense
649
516
7,432
5,828
7,432
5,828
Amortization of intangibles
2,340
1,959
8,033
7,503
8,033
7,503
Amortization of debt issuance costs on
credit facility
101
101
Non-cash interest expense for deferred
consideration
982
1,451
Gain on other investments
(49
)
—
Acquisition and integration costs
3,037
726
3,037
726
Foreign exchange (gain) loss
(383
)
369
Income tax impact of adjustments (a)
(4,214
)
(3,515
)
Adjusted
$
742,947
$
304,434
$
639,159
$
238,246
$
494,875
$
190,547
$
11.66
$
4.38
(a) Income tax impact of adjustments
represents the tax impact related to the non-GAAP adjustments
listed above and reflects an effective tax rate of 22% for each of
2022 and 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220504005969/en/
Quidel Contact: Quidel Corporation Randy Steward Chief Financial
Officer 858.552.7931
Media and Investors Contact: Quidel Corporation Ruben Argueta
858.646.8023 rargueta@quidel.com
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