Harvard Bioscience, Inc. (Nasdaq: HBIO) (the “Company”) today
announced financial results for the first quarter ended March 31,
2024.
Jim Green, Chairman and CEO, said, “As expected,
our first quarter revenues reflect ongoing market headwinds,
especially in APAC, amplified by a strong prior year comparison.
Despite these headwinds, we were pleased to deliver gross margins
of 60%. After quarter end, we announced a cost reduction initiative
to improve our operating cost structure and support our ongoing
investments in growth.”
Green continued, “Looking ahead, we are excited
by our growth strategy and new product commercializations. Together
with the new round of Chinese stimulus targeting a range of
products including academic research and healthcare products, we
continue to expect solid growth in the second half.”
|
|
|
|
|
Financial Results Summary |
Three Months
Ended March 31, |
(unaudited, $ in millions except per share
data) |
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
24.5 |
|
|
$ |
30.0 |
|
Gross margin |
|
60.3% |
|
|
|
61.2% |
|
Operating (loss) income (GAAP) |
$ |
(2.3) |
|
|
$ |
1.7 |
|
Adjusted operating income |
$ |
1.2 |
|
|
$ |
4.4 |
|
Net (loss) income (GAAP) |
$ |
(4.7) |
|
|
$ |
0.6 |
|
Diluted (loss) earnings per share (GAAP) |
$ |
(0.11) |
|
|
$ |
0.01 |
|
Diluted adjusted earnings per share |
$ |
0.02 |
|
|
$ |
0.06 |
|
Adjusted EBITDA |
$ |
1.6 |
|
|
$ |
4.8 |
|
Adjusted EBITDA margin |
|
6.6% |
|
|
|
15.9% |
|
Cash flow provided by operations |
$ |
1.4 |
|
|
$ |
1.8 |
|
|
|
|
|
|
This press release includes certain financial
information presented on an adjusted, or non-GAAP, basis. For
additional information on the non-GAAP financial measures included
in this press release, please see “Use of Non-GAAP Financial
Information” and “Reconciliation of GAAP to Non-GAAP Financial
Measures” below.
First
Quarter 2024
Results
For the first quarter of fiscal 2024, the
Company reported revenues of $24.5 million compared to $30.0
million in the first quarter of fiscal 2023. Gross margin for the
three months ended March 31, 2024 was 60.3% compared with 61.2% in
the comparable quarter of the prior year.
Net loss for the first quarter of 2024 was
$(4.7) million which included a loss on marketable securities and
other operating expenses of approximately ($2.3) million. This
compares to net income of $0.6 million in the first quarter of
2023. Adjusted EBITDA for the first quarter of 2024 was $1.6
million, compared to $4.8 million in the first quarter of the prior
year.
Cash provided by operations for the first
quarter of 2024 was $1.4 million compared to $1.8 million in the
same period last year. Debt was reduced by $1.0 million during the
first quarter of 2024.
2024 Guidance
For the full year 2024 we expect revenues to be
approximately flat versus 2023. We expect second half growth versus
both first half of 2024 and second half of 2023, supported by new
product commercializations and expected improvements in China. We
also continue to expect 2024 gross margin of approximately 60% and
adjusted EBITDA margin in the mid-teens.
Webcast and
Conference Call
Details
In conjunction with this announcement, Harvard
Bioscience will be hosting a conference call and webcast today at
8:00 a.m. Eastern Time. A presentation that will be referenced
during the webcast will be posted to our Investor Relations website
shortly before the webcast begins.
Analysts who would like to join the call and ask
a question must register here. Once registered, you will receive
the dial-in numbers and a unique PIN number.
Participants who would like to join the
audio-only webcast should go to our events and presentations on the
investor website here.
Use of
Non-GAAP Financial
Information
In this press release, we have included non-GAAP
financial information, including one or more of adjusted operating
income (loss), adjusted operating margin, adjusted net income
(loss), adjusted EBITDA, adjusted EBITDA margin, adjusted diluted
earnings (loss) per share, and net debt. We believe that this
non-GAAP financial information provides investors with an enhanced
understanding of the underlying operations of the business. For the
periods presented, these non-GAAP financial measures have excluded
certain expenses and income resulting from items that we do not
believe are representative of the underlying operations of the
business. Items excluded include stock-based compensation,
amortization of intangibles related to acquisitions, other
operating expenses, loss on equity securities, income taxes, and
the tax impact of the reconciling items. Management believes that
this non-GAAP financial information is important in comparing
current results with prior period results and is useful to
investors and financial analysts in assessing the Company’s
operating performance.
Non-GAAP historical financial statement
information included herein is accompanied by a reconciliation to
the nearest corresponding GAAP measure which is included as
exhibits below in this press release.
With respect to non-GAAP forward-looking
measures, we provide an outlook for adjusted EBITDA margin. Many of
the items that we exclude from this forward-looking measure
calculation are less capable of being controlled or reliably
predicted by management. These items could cause the
forward-looking measures presented in our outlook statements to
vary materially from our GAAP results.
The non-GAAP financial information provided in
this press release should be considered in addition to, not as a
substitute for, the financial information provided and presented in
accordance with GAAP and may be different than other companies’
non-GAAP financial information.
About Harvard
Bioscience
Harvard Bioscience, Inc. is a leading developer,
manufacturer and seller of technologies, products and services that
enable fundamental advances in life science applications, including
research, pharmaceutical and therapy discovery, bio-production and
preclinical testing for pharmaceutical and therapy development. Our
customers range from renowned academic institutions and government
laboratories to the world’s leading pharmaceutical, biotechnology
and contract research organizations. With operations in the United
States, Europe, and China, we sell through a combination of direct
and distribution channels to customers around the world.For more
information, please visit our website at
www.harvardbioscience.com.
Forward-Looking
Statements
This document contains forward-looking
statements within the meaning of the federal securities laws,
including the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words
such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,”
“intend” and similar expressions or statements that do not relate
to historical matters. Forward-looking statements include, but are
not limited to, information concerning expected future financial
and operational performance including revenues, gross margins,
earnings, cash and debt position, growth and the introduction of
new products, and the strength of the Company’s market position and
business model. Forward-looking statements are not guarantees of
future performance and involve known and unknown uncertainties,
risks, assumptions, and contingencies, many of which are outside
the Company’s control. Risks and other factors that could cause the
Company’s actual results to differ materially from those described
its forward-looking statements include those described in the “Risk
Factors” section of the Company’s most recently filed Annual Report
on Form 10-K as well as in the Company’s other filings with the
Securities and Exchange Commission. Forward-looking statements are
based on the Company’s expectations and assumptions as of the date
of this document. Except as required by law, the Company assumes no
obligation to update forward-looking statements to reflect any
change in expectations, even as new information becomes
available.
Company Contact: Jennifer Cote
Chief Financial Officer (508) 893-3120
Investors Contact: Three Part
Advisors Sandy Martin / Erol Girgin / William Shelmire
HBIO@threepa.com (214) 616-2207
|
|
|
|
|
|
|
|
|
HARVARD BIOSCIENCE, INC. |
Consolidated Statements of Operations |
(unaudited, in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
24,512 |
|
|
$ |
29,975 |
|
|
|
Cost of revenues |
|
9,740 |
|
|
|
11,629 |
|
|
|
|
Gross profit |
|
14,772 |
|
|
|
18,346 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
5,904 |
|
|
|
5,978 |
|
|
|
|
General and administrative expenses |
|
5,963 |
|
|
|
6,334 |
|
|
|
|
Research and development expenses |
|
2,885 |
|
|
|
2,897 |
|
|
|
|
Amortization of intangible assets |
|
1,333 |
|
|
|
1,388 |
|
|
|
|
Other operating expenses |
|
966 |
|
|
|
- |
|
|
|
Total operating expenses |
|
17,051 |
|
|
|
16,597 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
(2,279 |
) |
|
|
1,749 |
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
|
Interest expense |
|
(751 |
) |
|
|
(974 |
) |
|
|
|
Loss on equity securities |
|
(1,312 |
) |
|
|
- |
|
|
|
|
Other (expense) income, net |
|
(142 |
) |
|
|
432 |
|
|
|
Total other expense |
|
(2,205 |
) |
|
|
(542 |
) |
|
|
(Loss) income before income taxes |
|
(4,484 |
) |
|
|
1,207 |
|
|
|
Income tax expense |
|
210 |
|
|
|
585 |
|
|
|
Net (loss) income |
$ |
(4,694 |
) |
|
$ |
622 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per common share: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
|
|
Diluted |
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares: |
|
|
|
|
|
|
|
|
Basic |
|
43,402 |
|
|
|
42,119 |
|
|
|
|
Diluted |
|
43,402 |
|
|
|
42,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARVARD BIOSCIENCE, INC. |
Condensed Consolidated Balance Sheets |
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
4,255 |
|
$ |
4,283 |
|
|
Accounts receivable, net |
|
15,309 |
|
|
16,099 |
|
|
Inventories |
|
24,136 |
|
|
24,716 |
|
|
Other current assets |
|
4,448 |
|
|
3,940 |
|
|
Total current assets |
|
48,148 |
|
|
49,038 |
|
|
Property, plant and equipment |
|
4,492 |
|
|
3,981 |
|
|
Goodwill and other intangibles |
|
71,377 |
|
|
73,101 |
|
|
Other long-term assets |
|
9,144 |
|
|
11,246 |
|
|
Total assets |
$ |
133,161 |
|
$ |
137,366 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current portion, long-term debt |
$ |
3,720 |
|
$ |
5,859 |
|
|
Other current liabilities |
|
21,957 |
|
|
20,683 |
|
|
Total current liabilities |
|
25,677 |
|
|
26,542 |
|
|
Long-term debt, net |
|
31,890 |
|
|
30,704 |
|
|
Other long-term liabilities |
|
6,782 |
|
|
7,046 |
|
|
Stockholders’ equity |
|
68,812 |
|
|
73,074 |
|
|
Total liabilities and stockholders’ equity |
$ |
133,161 |
|
$ |
137,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARVARD BIOSCIENCE, INC. |
|
Condensed Consolidated Statements of Cash
Flows |
|
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
|
Cash flows
from operating activities: |
|
|
|
|
|
|
|
Net (loss) income |
$ |
(4,694 |
) |
|
$ |
622 |
|
|
|
Adjustments to operating cash flows |
|
4,389 |
|
|
|
2,486 |
|
|
|
Changes in operating assets and liabilities |
|
1,708 |
|
|
|
(1,296 |
) |
|
|
Net cash provided by operating activities |
|
1,403 |
|
|
|
1,812 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
(645 |
) |
|
|
(224 |
) |
|
|
Acquisition of intangible assets |
|
(75 |
) |
|
|
- |
|
|
|
Proceeds from sale of product line |
|
- |
|
|
|
512 |
|
|
|
Proceeds from sale of marketable equity securities |
|
495 |
|
|
|
- |
|
|
|
Net cash (used in) provided by investing activities |
|
(225 |
) |
|
|
288 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities: |
|
|
|
|
|
|
|
Borrowing from revolving line of credit |
|
2,500 |
|
|
|
1,500 |
|
|
|
Repayment of revolving line of credit |
|
(500 |
) |
|
|
(2,500 |
) |
|
|
Repayment of term debt |
|
(3,023 |
) |
|
|
(1,841 |
) |
|
|
Proceeds from exercise of employee stock options and purchases |
|
15 |
|
|
|
104 |
|
|
|
Taxes paid related to net share settlement of equity awards |
|
(47 |
) |
|
|
(156 |
) |
|
|
Net cash used in financing activities |
|
(1,055 |
) |
|
|
(2,893 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
(151 |
) |
|
|
74 |
|
|
|
Decrease in
cash and cash equivalents |
|
(28 |
) |
|
|
(719 |
) |
|
|
Cash and
cash equivalents at the beginning of period |
|
4,283 |
|
|
|
4,508 |
|
|
|
Cash and
cash equivalents at the end of period |
$ |
4,255 |
|
|
$ |
3,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARVARD BIOSCIENCE, INC. |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited) |
|
(in thousands, except per share data and
percentages) |
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2024 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating (loss) income |
$ |
(2,279 |
) |
|
$ |
1,749 |
|
|
|
|
Stock-based compensation |
|
1,048 |
|
|
|
1,153 |
|
|
|
|
Acquired asset depreciation & amortization |
|
1,339 |
|
|
|
1,401 |
|
|
|
|
Other operating expenses (1) |
|
966 |
|
|
|
- |
|
|
|
|
Other adjustments |
|
97 |
|
|
|
131 |
|
|
|
Adjusted operating income |
$ |
1,171 |
|
|
$ |
4,434 |
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
(9.3 |
%) |
|
|
5.8 |
% |
|
|
Adjusted operating margin |
|
4.8 |
% |
|
|
14.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) income |
$ |
(4,694 |
) |
|
$ |
622 |
|
|
|
|
Stock-based compensation |
|
1,048 |
|
|
|
1,153 |
|
|
|
|
Acquired asset depreciation & amortization |
|
1,339 |
|
|
|
1,401 |
|
|
|
|
Other operating expenses (1) |
|
966 |
|
|
|
- |
|
|
|
|
Other adjustments |
|
97 |
|
|
|
131 |
|
|
|
|
Gain on sale of product line and dividend income |
|
- |
|
|
|
(493 |
) |
|
|
|
Loss on equity securities |
|
1,312 |
|
|
|
- |
|
|
|
|
Income taxes |
|
627 |
|
|
|
(340 |
) |
|
|
Adjusted net income |
|
695 |
|
|
|
2,474 |
|
|
|
|
Depreciation & amortization |
|
443 |
|
|
|
321 |
|
|
|
|
Interest and other expense, net |
|
893 |
|
|
|
1,036 |
|
|
|
|
Adjusted income taxes (2) |
|
(417 |
) |
|
|
924 |
|
|
|
Adjusted EBITDA |
$ |
1,614 |
|
|
$ |
4,755 |
|
|
|
Adjusted EBITDA margin |
|
6.6 |
% |
|
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share (GAAP) |
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
Diluted adjusted earnings per share |
$ |
0.02 |
|
|
$ |
0.06 |
|
|
|
Weighted-average common shares: |
|
|
|
|
|
|
Diluted GAAP |
|
43,402 |
|
|
|
42,783 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Adjusted |
|
44,693 |
|
|
|
42,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other operating expenses include a $0.5 million commission fee
paid in connection with the receipt of employee retention credits
and an estimated loss of $0.5 million related to an unclaimed
property audit. |
|
|
(2) Adjusted income taxes includes the tax effect of adjusting for
the reconciling items using the tax rates in the jurisdictions in
which the reconciling items arise. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARVARD BIOSCIENCE, INC. |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited) |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
|
|
March 31, 2023 |
|
|
Debt, including unamortized deferred financing
costs |
$ |
35,610 |
|
|
$ |
36,563 |
|
|
$ |
44,053 |
|
|
|
Unamortized deferred financing costs |
|
490 |
|
|
|
560 |
|
|
|
770 |
|
|
|
Cash and cash equivalents |
|
(4,255) |
|
|
|
(4,283) |
|
|
|
(3,789) |
|
|
|
Net debt |
$ |
31,845 |
|
|
$ |
32,840 |
|
|
$ |
41,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvard Bioscience (NASDAQ:HBIO)
Historical Stock Chart
From Apr 2024 to May 2024
Harvard Bioscience (NASDAQ:HBIO)
Historical Stock Chart
From May 2023 to May 2024