– Revenue of $1,074.2 Million Exceeds Guidance
–
– 15.8% Organic Constant Currency Growth in
Diagnostics ex-COVID –
– 24.5% Organic Constant Currency Growth in
Molecular Diagnostics ex-COVID –
– 14.7% Organic Constant Currency Growth in
Surgical –
Hologic, Inc. (Nasdaq: HOLX) announced today preliminary revenue
results for its first fiscal quarter ended December 31, 2022.
The Company expects to report total revenues of approximately
$1,074.2 million, a decrease of (27.0%) compared to the prior year
period, or (25.1%) in constant currency. These preliminary results
are higher than the Company’s most recent revenue guidance range of
$940 to $990 million, which was provided on October 31, 2022.
“We delivered robust revenue performance in our fiscal first
quarter of 2023, with our Diagnostics and Surgical businesses
growing organically double-digits in constant currency, excluding
COVID,” said Steve MacMillan, the Company’s Chairman, President and
Chief Executive Officer. “In addition, recovery in our Breast
Health business is underway, with results ahead of our prior
estimate for the quarter. Our preliminary revenue results once
again showcase the strength of our franchises, with more growth
drivers in each, powering Hologic in fiscal 2023 and beyond.”
Global revenues by division are expected to be:
$s in millions
Preliminary
Q1’23
Q1’22
Reported Change
Constant Currency Change
Diagnostics
$559.3
$950.4
(41.2%)
(39.4%)
Organic Diagnostics excluding COVID
$387.7
$345.5
12.2%
15.8%
Organic Molecular Diagnostics excluding
COVID
$260.9
$214.8
21.5%
24.5%
Breast Health
$334.2
$359.3
(7.0%)
(5.2%)
GYN Surgical
$154.1
$134.3
14.7%
17.4%
Organic GYN Surgical
$149.7
$133.6
12.1%
14.7%
Skeletal Health
$26.6
$27.1
(1.8%)
0.7%
Total
$1,074.2
$1,471.1
(27.0%)
(25.1%)
Organic revenue
$1,062.5
$1,464.1
(27.4%)
(25.5%)
Organic revenue excluding COVID
$898.2
$865.5
3.8%
6.4%
Hologic has not yet completed its financial close processes for
the first quarter of fiscal 2023, therefore GAAP financial results
for the quarter have not yet been finalized. However, the Company
expects non-GAAP diluted earnings per share (EPS) to be above the
guidance range of $0.80 to $0.90 provided on October 31, 2022.
Hologic intends to provide its full financial results for the
first quarter on February 1, 2023. 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 updated financial guidance for the second quarter and full
year of fiscal 2023, following the completion of its quarterly
forecasting process.
J.P. Morgan Healthcare
Conference
Hologic is providing these updates in advance of its
participation in the 41st Annual J.P. Morgan Healthcare Conference,
which begins tomorrow. The Company will post its conference
presentation to the investors section of its website at
http://investors.hologic.com/. A live webcast of the Company’s
presentation and question and answer session, which begins at 4:30
p.m. Eastern Time on Tuesday, January 10, 2023, also may be
accessed there. The webcast will be available for 30 days.
Use of
Non-GAAP Financial Measures
The Company has presented the following non-GAAP financial
measures in this press release: constant currency revenues; organic
revenues; organic revenues excluding COVID, and non-GAAP EPS.
Organic revenue for the fiscal first quarter of 2023 excludes the
divested Blood Screening business, as well as the acquired Bolder
business. Revenue from acquired businesses is generally included in
organic revenue starting a year after the acquisition. Organic
revenue excluding COVID-19 revenues is organic revenue less COVID
assay revenue, COVID related sales of instruments, COVID related
revenue from Diagenode and Mobidiag, collection kits and
ancillaries, as well as license revenue, and revenues from
discontinued products. The Company defines its non-GAAP EPS and
other non-GAAP financial measures to exclude, as applicable: (i)
the amortization of intangible assets and impairment of goodwill,
intangible assets and equipment; (ii) adjustments to record
contingent consideration at fair value; (iii) additional expenses
resulting from the purchase accounting adjustment to record
inventory at fair value; (iv) restructuring and divestiture charges
and facility closure and consolidation charges, including
accelerated depreciation, 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 the 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 foreign currency
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 impacts
related to internal restructurings 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.
Because the quarterly financial information contained in this
press release is preliminary, it is deemed to be forward-looking.
The Company has not provided a reconciliation of preliminary
organic revenue and preliminary organic revenue excluding COVID to
preliminary or projected GAAP revenue because of the unreasonable
efforts it would take to provide such reconciliations at this time.
The Company is also 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. GAAP results and a
reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure will be presented in
connection with the Company’s press release reporting full
financial results for the first quarter of fiscal 2023 scheduled to
be released after the close of the market on February 1, 2023.
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 about the
Company’s plans, objectives, expectations and intentions. Such
statements include, without limitation: financial or other
information based upon or otherwise incorporating judgments or
estimates relating to future performance, events or expectations;
the Company’s strategies, positioning, resources, capabilities, and
expectations for future performance; and the Company's outlook and
financial and other guidance. 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 ongoing and possible future effects of
global challenges, including macroeconomic uncertainties, the war
in Ukraine, other economic disruptions and U.S. and global
recession concerns, on the Company’s customers and suppliers and on
the Company’s business, financial condition, results of operations
and cash flows and the Company’s ability to draw down its revolver;
the effect of the worldwide political and social uncertainty and
divisions, including the impact on trade regulation and tariffs,
that may adversely impact the cost and sale of the Company’s
products in certain countries, or increase the costs the Company
may incur to purchase materials, parts and equipment from its
suppliers; the ongoing and possible future effects of supply chain
constraints, including the availability of critical raw materials
and components, including semiconductor chips, as well as cost
inflation in materials, packaging and transportation; the
possibility of interruptions or delays at the Company’s
manufacturing facilities, or the failure to secure alternative
suppliers if any of the Company’s sole source third-party
manufacturers fail to supply the Company; the development of new
competitive technologies and products and competition; the
Company’s ability to predict accurately the demand for its
products, and products under development and to develop strategies
to address markets successfully; continued demand for the Company’s
COVID-19 assays; the timing, scope and effect of further U.S. and
international governmental, regulatory, fiscal, monetary and public
health responses to the COVID-19 pandemic and any future public
health crises; potential cybersecurity threats and targeted
computer crime; the ability to execute acquisitions and the impact
and anticipated benefits of completed acquisitions and acquisitions
the Company may complete in the future; the ability to consolidate
certain of the Company’s manufacturing and other operations on a
timely basis and within budget, without disrupting its business and
to achieve anticipated cost synergies related to such actions; the
ability of the Company to successfully manage leadership and
organizational changes, including the ability of the Company to
attract, motivate and retain key employees and maintain engagement
and efficiency in remote work environments; the ability to obtain
regulatory approvals and clearances for the Company’s products,
including the implementation of the European Union Medical Device
Regulations, and to maintain compliance with complex and evolving
regulations; the Company’s reliance on third-party reimbursement
policies to support the sales and market acceptance of its
products, including the possible adverse impact of government
regulation and changes in the availability and amount of
reimbursement and uncertainties for new products or product
enhancements; changes to applicable laws and regulations, including
tax laws, global health care reform, and import/export trade laws;
changes in guidelines, recommendations and studies published by
various organizations that could affect the use of the Company’s
products; uncertainties inherent in the development of new products
and the enhancement of existing products, including FDA approval
and/or clearance and other regulatory risks, technical risks, cost
overruns and delays; the risk that products may contain undetected
errors or defects or otherwise not perform as anticipated; risks
associated with strategic alliances and the ability of the Company
to realize anticipated benefits of those alliances; the risks of
conducting business internationally; the risk of adverse exchange
rate fluctuations on the Company’s international activities and
businesses; the early stage of market development for certain of
the Company’s products; the Company’s leverage risks, including the
Company’s obligation to meet payment obligations and financial
covenants associated with its debt; risks related to the use and
protection of intellectual property; expenses, uncertainties and
potential liabilities relating to litigation, including, without
limitation, commercial, intellectual property, employment and
product liability litigation; and technical innovations that could
render products marketed or under development by the Company
obsolete.
The risks included above are not exhaustive. Other factors that
could adversely affect the Company's business and prospects are
described in the filings made by the Company with the SEC,
including its most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230108005028/en/
Ryan Simon Vice President, Investor Relations
ryan.simon@hologic.com (858) 410-8514
Francis Pruell Senior Director, Investor Relations
francis.pruell@hologic.com (508) 364-7554
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