LAVAL, Quebec,
Aug. 6, 2019 /PRNewswire/
--
- Second-Quarter 2019 Financial Results
-
- Revenues of $2.152
Billion
- GAAP Net Loss of $171
Million
- Adjusted EBITDA
(non-GAAP)1 of $880 Million
- GAAP Cash Flow From Operations of $339 Million
- Sixth Consecutive Quarter of Total Company Organic
Revenue Growth1,2
- Delivered Total Company Reported Revenue Growth of 1%;
Organic Revenue Growth1,2
of 3% Compared to Second Quarter of 2018
-
- Bausch + Lomb/International Segment Delivered Eleventh
Consecutive Quarter of Organic Revenue
Growth1,2
- Salix Segment Reported Total Quarterly Revenue in
Excess of $500 Million for the First
Time
- Raised Full-Year 2019 Guidance Ranges
Bausch Health Companies Inc. (NYSE/TSX: BHC) ("Bausch
Health" or the "Company" or "we") today announced its
second-quarter 2019 financial results.
"Delivering a second consecutive quarter of reported and
organic revenue growth, our second quarter 2019 results demonstrate
that Bausch Health is clearly pivoting to growth," said
Joseph C. Papa, chairman and CEO,
Bausch Health. "Bausch +
Lomb/International delivered its eleventh consecutive quarter of
organic revenue growth, driven by sustained strength in Global
Consumer and Global Vision Care; and Salix reported more than
$500 million in total quarterly
revenue for the first time."
Mr. Papa continued, "Looking to the second half of 2019,
we expect a number of catalysts to drive growth across our core
business segments as we continue to reduce debt, increase R&D
and further grow our newly launched products. In addition, we have
raised our full-year revenue and adjusted EBITDA guidance based on
our first half performance and our outlook for the second half of
the year."
Company Highlights
Executing on Core Businesses and Advancing
Pipeline
- The Bausch + Lomb/International segment comprised
approximately 56% of the Company's revenue in the second quarter of
2019
-
- Reported revenue in the Bausch + Lomb/International
segment decreased nominally compared to the second quarter of 2018;
revenue in this segment grew
organically1,2 by
4%compared to the second quarter of 2018,due to an increase in
volume across most of the business units, particularly in Global
Consumer and Global Vision Care
- Delivered eleventh consecutive quarter of organic revenue
growth1,2
- LOTEMAX® SM (Loteprednol Etabonate Ophthalmic Gel) 0.38%
for the treatment of postoperative inflammation and pain following
ocular surgery was launched in the U.S. in April 2019
- Bausch + Lomb ULTRA® Multifocal for Astigmatism contact
lenses, the first and only multifocal toric lens
available as a standard offering in the eye care professional's fit
set, was launched in the U.S. in June
2019
- The Salix segment comprised approximately 24% of the
Company's revenue in the second quarter of 2019
-
- XIFAXAN® revenue increased by 21% compared to the second
quarter of 2018
- Entered into a license agreement with the University of California, Los Angeles to develop
and commercialize a novel compound for the treatment of
non-alcoholic fatty liver disease and non-alcoholic
steatohepatitis
- Entered into an exclusive license agreement with
Mitsubishi Tanabe Pharma to develop and commercialize a late-stage
investigational sphingosine 1-phosphate (S1P) modulator for the
treatment of inflammatory bowel disease
- The Ortho Dermatologics segment comprised approximately
6% of the Company's revenue in the second quarter of
2019
-
- Revenues in the Global Solta business increased by 41%
compared to the second quarter of 2018, driven by continued strong
demand of Thermage® FLX in Asia
Pacific following the launch in the region
- DUOBRII™ Lotion for the topical
treatment of plaque psoriasis in adults was launched in the U.S. in
June 2019
Strategic Capital Allocation and Debt
Management
- Increased research and development by approximately 24%,
or $23 million, compared to the
second quarter of 2018
- Refinanced $1.5 billion of
2023 Senior Unsecured Notes
- Reduced debt by approximately $100
million in the second quarter of 2019
Second-Quarter 2019 Revenue
Performance
Total reported revenues were
$2.152 billion in the second quarter
of 2019, as compared to $2.128
billion in the second quarter of 2018, an increase of
$24 million. Excluding the
unfavorable impact of foreign exchange of $38 million, the impact of a 2019 acquisition of
$17 million and the impact of
divestitures and discontinuations of $16
million, revenue grew organically1,2 by 3%
compared to the second quarter of 2018, driven by organic
growth1,2 in the Bausch + Lomb/International and Salix
segments.
Revenues by segment for the second quarter of 2019 were as
follows:
(in
millions)
|
|
2Q 2019
|
|
2Q 2018
|
|
Reported
Change
|
|
Reported
Change
|
|
Change at
Constant
Currency3
|
|
Organic
Change1,2
|
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Bausch +
Lomb/International
|
|
$1,208
|
|
$1,209
|
|
($1)
|
|
0%
|
|
3%
|
|
4%
|
Salix
|
|
$509
|
|
$441
|
|
$68
|
|
15%
|
|
15%
|
|
12%
|
Ortho
Dermatologics
|
|
$122
|
|
$141
|
|
($19)
|
|
(13%)
|
|
(13%)
|
|
(13%)
|
Diversified
Products
|
|
$313
|
|
$337
|
|
($24)
|
|
(7%)
|
|
(7%)
|
|
(7%)
|
Total
Revenues
|
|
$2,152
|
|
$2,128
|
|
$24
|
|
1%
|
|
3%
|
|
3%
|
Bausch + Lomb/International
Segment
Bausch + Lomb/International segment
revenues were $1.208 billion in the
second quarter of 2019, as compared to $1.209 billion in the second quarter of 2018, a
decrease of $1 million. Excluding the
unfavorable impact of foreign exchange of $37 million and the impact of divestitures and
discontinuations of $12 million, the
Bausch + Lomb/International segment grew organically1,2
by approximately 4% compared to the second quarter of 2018,
primarily due to higher volumes.
Salix Segment
Salix segment
revenues were $509 million in the
second quarter of 2019, as compared to $441
million in the second quarter of 2018, an increase of
$68 million. The increase was
primarily driven by XIFAXAN®, which grew 21% in the quarter as
compared to the second quarter of 2018.
Ortho Dermatologics Segment
Ortho
Dermatologics segment revenues were $122 million in the second quarter of 2019, as
compared to $141 million in the
second quarter of 2018, a decrease of $19
million, or 13%, due to lower volumes primarily driven by
the loss of exclusivity of ELIDEL®, ZOVIRAX® and SOLODYN®,
partially offset by organic revenue growth1,2 in the
Global Solta business and new product launches.
Diversified Products
Segment
Diversified
Products segment revenues were $313 million in the second quarter of 2019, as
compared to $337 million in the
second quarter of 2018, a decrease of $24
million, or 7%. The decrease was primarily attributable to
the previously reported loss of exclusivity for a basket of
products.
Operating Income/Loss
Operating
income was $257 million for the
second quarter of 2019, as compared to an operating loss of
$245 million for the second quarter
of 2018, an increase in operating results of $502 million. The increase in the Company's
operating results for the second quarter of 2019 was primarily
driven by: (i) lower impairments and amortization and (ii) the
increase in reported revenues and higher gross margins in 2019 as
compared to 2018, partially offset by increased research and
development and increased advertising and promotion spend following
the launch of several new products.
Net Loss
Net loss for the three
months ended June 30, 2019 was
$171 million, as compared to net loss
of $873 million for the same period
in 2018, a decrease of $702 million.
The decrease in net loss was primarily due to: (i) the increase in
operating results discussed above, (ii) lower interest expense and
(iii) lower loss on extinguishment of debt.
Adjusted net income (non-GAAP)1 for the second
quarter of 2019 was$372 million, as compared to $327 million for the second quarter of 2018, an
increase of $45 million, or
14%.
Operating Cash
The Company
generated $339 million of cash from
operations in the second quarter of 2019, as compared to
$222 million in the second quarter of
2018, an increase of $117 million, or
53%, primarily driven by the improved operating results discussed
above and timing of cash receipts.
EPS
GAAP Earnings Per Share (EPS)
Diluted for the second quarter of 2019 was ($0.49), as compared to ($2.49) for the second quarter of
2018.
Adjusted EBITDA
(non-GAAP)1
Adjusted EBITDA
(non-GAAP) 1 was $880
million for the second quarter of 2019, as compared to
$868 million for the second quarter
of 2018, an increase of $12 million,
or 1%.
2019 Financial Outlook
Bausch
Health raised its revenue and its Adjusted EBITDA
(non-GAAP)1 guidance range for the full-year
2019:
- Raised full-year revenues from $8.35 - $8.55
billion to the range of $8.40
- $8.60 billion
- Raised full-year Adjusted EBITDA
(non-GAAP)1 from $3.40 -
$3.55 billion to the range of
$3.425 - $3.575 billion
Other than with respect to GAAP Revenues, the Company only
provides guidance on a non-GAAP basis. The Company does not provide
a reconciliation of forward-looking Adjusted EBITDA
(non-GAAP)1 to GAAP net income (loss), due to the
inherent difficulty in forecasting and quantifying certain amounts
that are necessary for such reconciliation. In periods where
significant acquisitions or divestitures are not expected, the
Company believes it might have a basis for forecasting the GAAP
equivalent for certain costs, such as amortization, which would
otherwise be treated as non-GAAP to calculate projected GAAP net
income (loss). However, because other deductions (such as
restructuring, gain or loss on extinguishment of debt and
litigation and other matters) used to calculate projected net
income (loss) vary dramatically based on actual events, the Company
is not able to forecast on a GAAP basis with reasonable certainty
all deductions needed in order to provide a GAAP calculation of
projected net income (loss) at this time. The amount of these
deductions may be material and, therefore, could result in
projected GAAP net income (loss) being materially less than
projected Adjusted EBITDA (non-GAAP)1. The
guidance provided in this section represents forward-looking
information, and actual results may vary. Please see the risks and
assumptions referred to in the Forward-looking Statements section
of this news release. The primary reasons for our change in our
2019 full-year guidance ranges are better than expected base
performance, later than expected loss of exclusivity for certain
products and favorable currency impact.
Additional Highlights
- Bausch Health's cash, cash equivalents and restricted
cash were $880 million at
June 30, 2019
- The Company's availability under its revolving credit
facility was approximately $905
million at June 30,
2019
- Basic weighted average shares outstanding for the quarter
were 352.1 million shares. Diluted weighted average shares
outstanding for the quarter were 356.5 million
shares4
Conference Call Details
Date:
|
Tuesday, August 6,
2019
|
Time:
|
8:00 a.m.
EDT
|
Webcast:
|
http://ir.bauschhealth.com/events-and-presentations
|
Participant Event
Dial-in:
|
+1 (888) 317-6003
(United States)
|
|
+1 (412) 317-6061
(International)
|
|
+1 (866) 284-3684
(Canada)
|
Participant
Passcode:
|
2275809
|
Replay
Dial-in:
|
+1 (877) 344-7529
(United States)
|
|
+1 (412) 317-0088
(International)
|
|
+1 (855) 669-9658
(Canada)
|
Replay
Passcode:
|
10132759 (replay
available until August 13, 2019)
|
About Bausch Health
Bausch
Health Companies Inc. (NYSE/TSX: BHC) is a global company whose
mission is to improve people's lives with our health care products.
We develop, manufacture and market a range of pharmaceutical,
medical device and over-the-counter products, primarily in the
therapeutic areas of eye health, gastroenterology and dermatology.
We are delivering on our commitments as we build an innovative
company dedicated to advancing global health. More information can
be found at
www.bauschhealth.com.
Forward-looking
Statements
This news release contains
forward-looking information and statements, within the meaning of
applicable securities laws (collectively, "forward-looking
statements"), including, but not limited to, Bausch Health's future
prospects and performance, including the Company's 2019 full-year
guidance, and the expected catalysts to drive growth, including the
Company's plans to continue to reduce debt, increase R&D and
further grow newly launched products. Forward-looking
statements may generally be identified by the use of the words
"anticipates," "expects," "intends," "plans," "should," "could,"
"would," "may," "will," "believes," "estimates," "potential,"
"target," or "continue" and variations or similar
expressions, and phrases or statements that certain
actions, events or results may, could, should or will be achieved,
received or taken, or will occur or result, and similar such
expressions also identify forward-looking information.
These forward-looking statements, including the
Company's full-year guidance, are based upon the
current expectations and beliefs of management and are
provided for the purpose of providing additional information about
such expectations and beliefs, and readers are cautioned that these
statements may not be appropriate for other purposes. These
forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those described in these forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks and uncertainties discussed in the Company's
most recent annual and quarterly reports and detailed from time to
time in the Company's other filings with the Securities and
Exchange Commission and the Canadian Securities Administrators,
which risks and uncertainties are incorporated herein by reference.
In addition, certain material factors and assumptions have been
applied in making these forward-looking statements, including,
without limitation, assumptions regarding our 2019 full-year
guidance with respect to adjusted SG&A expense (non-GAAP) and
the Company's ability to continue to manage such expense in the
manner anticipated, the anticipated timing and extent of the
Company's R&D expense, the expected timing and impact of loss
of exclusivity for certain of our products, expected currency
impact, expectations regarding gross margin and expectations
regarding base performance, and the assumption that the risks and
uncertainties outlined above will not cause actual results or
events to differ materially from those described in these
forward-looking statements. Additional information
regarding certain of these material factors and assumptions may
also be found in the Company's filings described
above. The Company believes that the material factors
and assumptions reflected in these forward-looking statements are
reasonable in the circumstances, but readers are cautioned not to
place undue reliance on any of these forward-looking statements.
These forward-looking statements speak only as of the date hereof.
Bausch Health undertakes no obligation to update any of these
forward-looking statements to reflect events or circumstances after
the date of this news release or to reflect actual outcomes, unless
required by law.
Non-GAAP Information
To supplement
the financial measures prepared in accordance
with U.S. generally accepted accounting principles
(GAAP), the Company uses certain non-GAAP financial measures,
including (i) Adjusted EBITDA (non-GAAP), (ii) organic
growth/change and (iii) constant currency. As discussed below, we
also provide Adjusted Net Income (non-GAAP) to provide supplemental
information to readers. Management uses these non-GAAP measures as
key metrics in the evaluation of company performance and the
consolidated financial results and, in part, in the determination
of cash bonuses for its executive officers. The Company believes
these non-GAAP measures are useful to investors in their assessment
of our operating performance and the valuation of our Company. In
addition, these non-GAAP measures address questions the Company
routinely receives from analysts and investors, and in order to
assure that all investors have access to similar data, the Company
has determined that it is appropriate to make this data available
to all investors.
However, these measures are not prepared in accordance
with GAAP nor do they have any standardized meaning under GAAP. In
addition, other companies may use similarly titled non-GAAP
financial measures that are calculated differently from the way we
calculate such measures. Accordingly, our non-GAAP financial
measures may not be comparable to such similarly titled non-GAAP
measures. We caution investors not to place undue reliance on such
non-GAAP measures, but instead to consider them with the most
directly comparable GAAP measures. Non-GAAP financial measures have
limitations as analytical tools and should not be considered in
isolation. They should be considered as a supplement to, not a
substitute for, or superior to, the corresponding measures
calculated in accordance with GAAP. The
reconciliations of these historic non-GAAP measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP are shown in the tables below. However, as
indicated above, for guidance purposes, the Company does not
provide reconciliations of projected Adjusted EBITDA (non-GAAP) to
projected GAAP net income (loss), due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliations.
Specific Non-GAAP
Measures
Adjusted EBITDA
(non-GAAP)
Adjusted EBITDA (non-GAAP) is GAAP net
(loss) income (its most directly comparable GAAP financial measure)
adjusted for certain items, as further described below. Management
believes that Adjusted EBITDA (non-GAAP), along with the GAAP
measures used by management, most appropriately reflect how the
Company measures the business internally and sets operational goals
and incentives, especially in light of the Company's new
strategies. In particular, the Company believes that Adjusted
EBITDA (non-GAAP) focuses management on the Company's underlying
operational results and business performance. As a result, the
Company uses Adjusted EBITDA (non-GAAP) both to assess the actual
financial performance of the Company and to forecast future results
as part of its guidance. Management believes Adjusted EBITDA
(non-GAAP) is a useful measure to evaluate current performance.
Adjusted EBITDA (non-GAAP) is intended to show our unleveraged,
pre-tax operating results and therefore reflects our financial
performance based on operational factors. In addition, cash bonuses
for the Company's executive officers and other key employees are
based, in part, on the achievement of certain Adjusted EBITDA
(non-GAAP) targets.
Adjusted EBITDA (non-GAAP) reflects adjustments based on
the following items:
- Restructuring and integration costs: The
Company has incurred restructuring costs as it implemented certain
strategies, which involved, among other things, improvements to its
infrastructure and operations, internal reorganizations and impacts
from the divestiture of assets and businesses. In addition, in
connection with its acquisition of certain assets of Synergy, the
Company has incurred certain severance and integration costs which
were not essential to complete, close or report the acquisition.
With regard to infrastructure and operational improvements which
the Company has taken to improve efficiencies in the businesses and
facilities, these tend to be costs intended to right size the
business or organization that fluctuate significantly between
periods in amount, size and timing, depending on the improvement
project, reorganization or transaction. With regard to the
severance and integration costs associated with the acquisition of
certain assets of Synergy, these costs are specific to the
acquisition itself and provided no benefit to the ongoing
operations of the Company. As a result, the Company does not
believe that such costs (and their impact) are truly representative
of the underlying business. The Company believes that the
adjustments of these items provide supplemental information with
regard to the sustainability of the Company's operating
performance, allow for a comparison of the financial results to
historical operations and forward-looking guidance and, as a
result, provide useful supplemental information to
investors.
- Acquired in-process research and development
costs: The Company has excluded expenses associated
with acquired in-process research and development, as these amounts
are inconsistent in amount and frequency and are significantly
impacted by the timing, size and nature of acquisitions.
Furthermore, as these amounts are associated with research and
development acquired, the Company does not believe that they are a
representation of the Company's research and development efforts
during the period.
- Asset impairments: The Company has excluded
the impact of impairments of finite-lived and indefinite-lived
intangible assets, as well as impairments of assets held for sale,
as such amounts are inconsistent in amount and frequency and are
significantly impacted by the timing and/or size of acquisitions
and divestitures. The Company believes that the adjustments of
these items correlate with the sustainability of the Company's
operating performance. Although the Company excludes intangible
impairments from its non-GAAP expenses, the Company believes that
it is important for investors to understand that intangible assets
contribute to revenue generation.
- Goodwill impairments: The Company has
excluded the impact of goodwill impairment. When the Company has
made acquisitions where the consideration paid was in excess of the
fair value of the net assets acquired, the remaining purchase price
is recorded as goodwill. For assets that we developed ourselves, no
goodwill is recorded. Goodwill is not amortized but is tested for
impairment. For periods prior to Jan. 1,
2018, the amount of goodwill impairment is measured as the
excess of the carrying value of a reporting unit's goodwill over
its implied fair value. However, in January
2017, new accounting guidance was issued which simplifies
the subsequent measurement of an impairment to goodwill. Under the
new guidance, which the Company early adopted effective
Jan. 1, 2018, the amount of goodwill
impairment is measured as the excess of a reporting unit's carrying
value over its fair value. Management excludes these charges in
measuring the performance of the Company and the
business.
- Share-based compensation: The Company has
excluded the impact of costs relating to share-based compensation.
The Company believes that the exclusion of share-based compensation
expense assists investors in the comparisons of operating results
to peer companies. Share-based compensation expense can vary
significantly based on the timing, size and nature of awards
granted.
- Acquisition-related costs and adjustments excluding
amortization of intangible assets: The Company has
excluded the impact of acquisition-related costs and fair value
inventory step-up resulting from acquisitions as the amounts and
frequency of such costs and adjustments are not consistent and are
significantly impacted by the timing and size of its acquisitions.
In addition, the Company has excluded the impact of
acquisition-related contingent consideration non-cash adjustments
due to the inherent uncertainty and volatility associated with such
amounts based on changes in assumptions with respect to fair value
estimates, and the amount and frequency of such adjustments is not
consistent and is significantly impacted by the timing and size of
the Company's acquisitions, as well as the nature of the
agreed-upon consideration.
- Loss on extinguishment of debt: The Company
has excluded loss on extinguishment of debt as this represents a
cost of refinancing our existing debt and is not a reflection of
our operations for the period. Further, the amount and frequency of
such charges are not consistent and are significantly impacted by
the timing and size of debt financing transactions and other
factors in the debt market out of management's control.
- Other Non-GAAP charges: The Company has
excluded certain other amounts, including legal and other
professional fees incurred in connection with recent legal and
governmental proceedings, investigations and information requests
respecting certain of our distribution, marketing, pricing,
disclosure and accounting practices, litigation and other matters,
and net gain on sale of assets. In addition, the Company has
excluded certain other expenses, such as IT infrastructure
investment, that are the result of other, non-comparable events to
measure operating performance. These events arise outside of the
ordinary course of continuing operations. Given the unique nature
of the matters relating to these costs, the Company believes these
items are not normal operating expenses. For example, legal
settlements and judgments vary significantly, in their nature, size
and frequency, and, due to this volatility, the Company believes
the costs associated with legal settlements and judgments are not
normal operating expenses. In addition, as opposed to more ordinary
course matters, the Company considers that each of the recent
proceedings, investigations and information requests, given their
nature and frequency, are outside of the ordinary course and relate
to unique circumstances. The Company believes that the exclusion of
such out-of-the-ordinary-course amounts provides supplemental
information to assist in the comparison of the financial results of
the Company from period to period and, therefore, provides useful
supplemental information to investors. However, investors should
understand that many of these costs could recur and that companies
in our industry often face litigation.
Finally, to the extent not already adjusted for above,
Adjusted EBITDA (non-GAAP) reflects adjustments for interest,
taxes, depreciation and amortization (EBITDA represents earnings
before interest, taxes, depreciation and amortization).
Adjusted Net Income
(non-GAAP)
Historically, management has used
adjusted net income (non-GAAP) (the most directly comparable GAAP
financial measure for which is GAAP net income (loss)) for
strategic decision making, forecasting future results and
evaluating current performance. This non-GAAP measure excludes the
impact of certain items (as further described below) that may
obscure trends in the Company's underlying performance. By
disclosing this non-GAAP measure, it was management's intention to
provide investors with a meaningful, supplemental comparison of the
Company's operating results and trends for the periods presented.
It was management's belief that this measure was also useful to
investors as such measure allowed investors to evaluate the
Company's performance using the same tools that management had used
to evaluate past performance and prospects for future performance.
Accordingly, it was the Company's belief that adjusted net income
(non-GAAP) was useful to investors in their assessment of the
Company's operating performance and the valuation of the Company.
It is also noted that, in recent periods, our GAAP net income
(loss) was significantly lower than our adjusted net income
(non-GAAP). Commencing in 2017, management of the Company
identified and began using certain new primary financial
performance measures to assess the Company's financial performance.
However, management still believes that adjusted net income
(non-GAAP) may be useful to investors in their assessment of the
Company and its performance.
In addition to certain of the adjustments described above
(namely restructuring and integration costs, acquired in-process
research and development costs, loss on extinguishment of debt,
asset impairments, goodwill impairments, acquisition-related
adjustments, excluding amortization, and other non-GAAP charges),
adjusted net income (non-GAAP) also reflects adjustments based on
the following additional item:
- Amortization of intangible assets: The
Company has excluded the impact of amortization of intangible
assets, as such amounts are inconsistent in amount and frequency
and are significantly impacted by the timing and/or size of
acquisitions. The Company believes that the adjustments of these
items correlate with the sustainability of the Company's operating
performance. Although the Company excludes amortization of
intangible assets from its non-GAAP expenses, the Company believes
that it is important for investors to understand that such
intangible assets contribute to revenue generation. Amortization of
intangible assets that relate to past acquisitions will recur in
future periods until such intangible assets have been fully
amortized. Any future acquisitions may result in the amortization
of additional intangible assets.
Organic Growth/Change
Organic
growth/change, a non-GAAP metric, is defined as a change on a
period-over-period basis in revenues on a constant currency basis
(if applicable) excluding the impact of recent acquisitions,
divestitures and discontinuations (if applicable). Organic
growth/change is change in GAAP Revenue (its most directly
comparable GAAP financial measure) adjusted for certain items, as
further described below, of businesses that have been owned for one
or more years. The Company uses organic revenue and organic
growth/change to assess performance of its business units and
operating and reportable segments, and the Company in total,
without the impact of foreign currency exchange fluctuations and
recent acquisitions, divestitures and product discontinuations. The
Company believes that such measures are useful to investors as it
provides a supplemental period-to-period comparison.
Organic growth/change reflects adjustments for: (i) the
impact of period-over-period changes in foreign currency exchange
rates on revenues and (ii) the revenues associated with
acquisitions, divestitures and discontinuations of businesses
divested and/or discontinued. These adjustments are determined as
follows:
- Foreign currency exchange rates: Although
changes in foreign currency exchange rates are part of our
business, they are not within management's control. Changes in
foreign currency exchange rates, however, can mask positive or
negative trends in the business. The impact for changes in foreign
currency exchange rates is determined as the difference in the
current period reported revenues at their current period currency
exchange rates and the current period reported revenues revalued
using the monthly average currency exchange rates during the
comparable prior period.
- Acquisitions, divestitures and discontinuations:
In order to present period-over-period organic revenues
(non-GAAP) on a comparable basis, revenues associated with
acquisitions, divestitures and discontinuations are adjusted to
include only revenues from those businesses and assets owned during
both periods. Accordingly, organic revenue (non-GAAP) growth/change
excludes from the current period, revenues attributable to each
acquisition for twelve months subsequent to the day of acquisition,
as there are no revenues from those businesses and assets included
in the comparable prior period. Organic revenue (non-GAAP)
growth/change excludes from the prior period (but not the current
period), all revenues attributable to each divestiture and
discontinuance during the twelve months prior to the day of
divestiture or discontinuance, as there are no revenues from those
businesses and assets included in the comparable current
period.
Constant Currency
Changes in the relative
values of non-U.S. currencies to the U.S. dollar may
affect the Company's financial results and financial position. To
assist investors in evaluating the Company's performance, we have
adjusted for foreign currency effects. Constant currency impact is
determined by comparing 2019 reported amounts adjusted to exclude
currency impact, calculated using 2018 monthly average exchange
rates, to the actual 2018 reported amounts.
Please also see the reconciliation tables below for
further information as to how these non-GAAP measures are
calculated for the periods presented.
1 Please see the tables at the end
of this news release for a reconciliation of this and other
non-GAAP measures to the nearest comparable GAAP
measure.
2 Organic
growth/change, a non-GAAP metric, is defined as a change on a
period-over-period basis in revenues on a constant currency basis
(if applicable) excluding the impact of recent acquisitions,
divestitures and
discontinuations.
3 To assist
investors in evaluating the Company's performance, we have adjusted
for changes in foreign currency exchange rates. Change at constant
currency, a non-GAAP metric, is determined by comparing 2019
reported amounts adjusted to exclude currency impact, calculated
using 2018 monthly average exchange rates, to the actual 2018
reported amounts.
4 Diluted
weighted average shares includes the dilutive impact of options and
restricted stock units which are 4,395,000 common shares for the 3
months ended June 30, 2019, and which
are excluded when calculating GAAP diluted loss per share because
the effect of including the impact would be
anti-dilutive.
FINANCIAL TABLES FOLLOW
Bausch Health Companies Inc.
|
|
|
|
|
|
|
|
Table 1
|
Condensed Consolidated Statements of
Operations
|
|
|
|
|
|
|
|
|
For the Three and Six Months Ended June 30, 2019 and
2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
|
|
|
|
|
|
|
|
Product
sales
|
|
$
|
2,122
|
|
|
$
|
2,100
|
|
|
$
|
4,111
|
|
|
$
|
4,065
|
|
Other
revenues
|
|
30
|
|
|
28
|
|
|
57
|
|
|
58
|
|
|
|
2,152
|
|
|
2,128
|
|
|
4,168
|
|
|
4,123
|
|
Expenses
|
|
|
|
|
|
|
|
|
Cost of goods sold
(excluding amortization and impairments of
intangible assets)
|
|
580
|
|
|
584
|
|
|
1,104
|
|
|
1,144
|
|
Cost of other
revenues
|
|
14
|
|
|
10
|
|
|
27
|
|
|
23
|
|
Selling, general and
administrative
|
|
651
|
|
|
642
|
|
|
1,238
|
|
|
1,233
|
|
Research and
development
|
|
117
|
|
|
94
|
|
|
234
|
|
|
186
|
|
Amortization of
intangible assets
|
|
488
|
|
|
741
|
|
|
977
|
|
|
1,484
|
|
Goodwill
impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,213
|
|
Asset
impairments
|
|
13
|
|
|
301
|
|
|
16
|
|
|
345
|
|
Restructuring and
integration costs
|
|
4
|
|
|
7
|
|
|
24
|
|
|
13
|
|
Acquisition-related
contingent consideration
|
|
20
|
|
|
(6)
|
|
|
(1)
|
|
|
(4)
|
|
Other expense,
net
|
|
8
|
|
|
—
|
|
|
5
|
|
|
12
|
|
|
|
1,895
|
|
|
2,373
|
|
|
3,624
|
|
|
6,649
|
|
Operating income
(loss)
|
|
257
|
|
|
(245)
|
|
|
544
|
|
|
(2,526)
|
|
Interest
income
|
|
3
|
|
|
3
|
|
|
7
|
|
|
6
|
|
Interest
expense
|
|
(409)
|
|
|
(435)
|
|
|
(815)
|
|
|
(851)
|
|
Loss on
extinguishment of debt
|
|
(33)
|
|
|
(48)
|
|
|
(40)
|
|
|
(75)
|
|
Foreign exchange and
other
|
|
3
|
|
|
(9)
|
|
|
3
|
|
|
18
|
|
Loss before benefit
from (provision for) income taxes
|
|
(179)
|
|
|
(734)
|
|
|
(301)
|
|
|
(3,428)
|
|
Benefit from
(provision for) income taxes
|
|
9
|
|
|
(138)
|
|
|
83
|
|
|
(23)
|
|
Net loss
|
|
(170)
|
|
|
(872)
|
|
|
(218)
|
|
|
(3,451)
|
|
Net income
attributable to noncontrolling interest
|
|
(1)
|
|
|
(1)
|
|
|
(5)
|
|
|
(3)
|
|
Net loss attributable to Bausch Health Companies
Inc.
|
|
$
|
(171)
|
|
|
$
|
(873)
|
|
|
$
|
(223)
|
|
|
$
|
(3,454)
|
|
Bausch Health Companies Inc.
|
|
|
|
|
|
|
|
Table 2
|
Reconciliation of GAAP Net Loss to Adjusted Net
Income (non-GAAP)
|
|
|
|
|
|
|
For the Three and Six Months Ended June 30, 2019 and
2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net loss attributable to Bausch Health Companies
Inc.
|
|
$
|
(171)
|
|
|
$
|
(873)
|
|
|
$
|
(223)
|
|
|
$
|
(3,454)
|
|
Non-GAAP adjustments:
(a)
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
488
|
|
|
741
|
|
|
977
|
|
|
1,484
|
|
Asset
impairments
|
|
13
|
|
|
301
|
|
|
16
|
|
|
345
|
|
Goodwill
impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,213
|
|
Restructuring and
integration costs
|
|
4
|
|
|
7
|
|
|
24
|
|
|
13
|
|
Acquired in-process
research and development costs
|
|
7
|
|
|
—
|
|
|
8
|
|
|
1
|
|
Acquisition-related
costs and adjustments (excluding amortization
of intangible assets)
|
|
24
|
|
|
(6)
|
|
|
12
|
|
|
(4)
|
|
Loss on
extinguishment of debt
|
|
33
|
|
|
48
|
|
|
40
|
|
|
75
|
|
IT infrastructure
investment
|
|
5
|
|
|
—
|
|
|
9
|
|
|
—
|
|
Legal and other
professional fees
|
|
11
|
|
|
15
|
|
|
19
|
|
|
20
|
|
Net loss (gain) on
sale of assets
|
|
1
|
|
|
—
|
|
|
(9)
|
|
|
—
|
|
Litigation and other
matters
|
|
1
|
|
|
(1)
|
|
|
3
|
|
|
10
|
|
Other
|
|
(3)
|
|
|
1
|
|
|
(7)
|
|
|
—
|
|
Tax effect of
non-GAAP adjustments
|
|
(41)
|
|
|
94
|
|
|
(139)
|
|
|
(64)
|
|
Total non-GAAP
adjustments
|
|
543
|
|
|
1,200
|
|
|
953
|
|
|
4,093
|
|
Adjusted net income attributable to Bausch Health
Companies
Inc. (non-GAAP)
|
|
$
|
372
|
|
|
$
|
327
|
|
|
$
|
730
|
|
|
$
|
639
|
|
(a)
|
The components of and
further details respecting each of these non-GAAP adjustments and
the financial statement line item to which each component relates
can be found on Table 2a.
|
Bausch Health Companies Inc.
|
|
|
|
|
|
Table 2a
|
Reconciliation of GAAP to Non-GAAP Financial
Information
|
|
|
|
|
|
|
|
|
For the Three and Six Months Ended June 30, 2019 and
2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cost of goods sold
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Cost of goods
sold (excluding amortization and impairments of
intangible assets)
|
|
$
|
580
|
|
|
$
|
584
|
|
|
$
|
1,104
|
|
|
$
|
1,144
|
|
Fair value inventory
step-up resulting from acquisitions (a)
|
|
(4)
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
Adjusted cost of
goods sold (excluding amortization and
impairments of intangible assets) (non-GAAP)
|
|
$
|
576
|
|
|
$
|
584
|
|
|
$
|
1,099
|
|
|
$
|
1,144
|
|
Selling, general and administrative
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Selling, general
and administrative
|
|
$
|
651
|
|
|
$
|
642
|
|
|
$
|
1,238
|
|
|
$
|
1,233
|
|
IT infrastructure
investment (b)
|
|
(5)
|
|
|
—
|
|
|
(9)
|
|
|
—
|
|
Legal and other
professional fees (c)
|
|
(11)
|
|
|
(15)
|
|
|
(19)
|
|
|
(20)
|
|
Other Selling,
general and administrative (d)
|
|
2
|
|
|
—
|
|
|
2
|
|
|
1
|
|
Adjusted selling,
general and administrative (non-GAAP)
|
|
$
|
637
|
|
|
$
|
627
|
|
|
$
|
1,212
|
|
|
$
|
1,214
|
|
Amortization of intangible assets
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Amortization of
intangible assets
|
|
$
|
488
|
|
|
$
|
741
|
|
|
$
|
977
|
|
|
$
|
1,484
|
|
Amortization of
intangible assets (e)
|
|
(488)
|
|
|
(741)
|
|
|
(977)
|
|
|
(1,484)
|
|
Adjusted amortization
of intangible assets (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Goodwill impairments
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Goodwill
impairments
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,213
|
|
Goodwill impairments
(f)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,213)
|
|
Adjusted goodwill
impairments (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring and integration costs
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Restructuring
and integration costs
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
24
|
|
|
$
|
13
|
|
Restructuring and
integration costs (g)
|
|
(4)
|
|
|
(7)
|
|
|
(24)
|
|
|
(13)
|
|
Adjusted
restructuring and integration costs (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Asset impairments
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Asset
impairments
|
|
$
|
13
|
|
|
$
|
301
|
|
|
$
|
16
|
|
|
$
|
345
|
|
Asset impairments
(i)
|
|
(13)
|
|
|
(301)
|
|
|
(16)
|
|
|
(345)
|
|
Adjusted asset
impairments (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Acquisition-related contingent consideration
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP
Acquisition-related contingent consideration
|
|
$
|
20
|
|
|
$
|
(6)
|
|
|
$
|
(1)
|
|
|
$
|
(4)
|
|
Acquisition-related
contingent consideration (a)
|
|
(20)
|
|
|
6
|
|
|
1
|
|
|
4
|
|
Adjusted
acquisition-related contingent consideration (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expense, net
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Other expense,
net
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
12
|
|
Net (loss) gain on
sale of assets (j)
|
|
(1)
|
|
|
—
|
|
|
9
|
|
|
—
|
|
Acquisition-related
costs (a)
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
Litigation and other
matters (k)
|
|
(1)
|
|
|
1
|
|
|
(3)
|
|
|
(10)
|
|
Acquired in-process
research and development costs (l)
|
|
(7)
|
|
|
—
|
|
|
(8)
|
|
|
(1)
|
|
Other
(d)
|
|
1
|
|
|
(1)
|
|
|
5
|
|
|
(1)
|
|
Adjusted other
expense (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Bausch Health Companies Inc.
|
|
|
|
|
Table 2a (continued)
|
Reconciliation of GAAP to Non-GAAP Financial
Information
|
|
|
|
|
|
|
|
|
For the Three and Six Months Ended June 30, 2019 and
2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Loss on extinguishment of debt
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Loss on
extinguishment of debt
|
|
$
|
(33)
|
|
|
$
|
(48)
|
|
|
$
|
(40)
|
|
|
$
|
(75)
|
|
Loss on
extinguishment of debt (m)
|
|
33
|
|
|
48
|
|
|
40
|
|
|
75
|
|
Adjusted loss on
extinguishment of debt (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Benefit from (provision for) income taxes
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Benefit from
(provision for) income taxes
|
|
$
|
9
|
|
|
$
|
(138)
|
|
|
$
|
83
|
|
|
$
|
(23)
|
|
Tax effect of
non-GAAP adjustments (n)
|
|
(41)
|
|
|
94
|
|
|
(139)
|
|
|
(64)
|
|
Adjusted provision
for income taxes (non-GAAP)
|
|
$
|
(32)
|
|
|
$
|
(44)
|
|
|
$
|
(56)
|
|
|
$
|
(87)
|
|
(a)
|
Represents the three
components of the non-GAAP adjustment of "Acquisition-related costs
and adjustments (excluding amortization of intangible assets)" (see
Table 2).
|
(b)
|
Represents the sole
component of the non-GAAP adjustment of "IT infrastructure
investment" (see Table 2).
|
(c)
|
Represents the sole
component of the non-GAAP adjustment of "Legal and other
professional fees" (see Table 2). Legal and other professional fees
incurred during the three and six months ended June 30, 2019 and
2018 in connection with recent legal and governmental proceedings,
investigations and information requests related to, among other
matters, our distribution, marketing, pricing, disclosure and
accounting practices.
|
(d)
|
Represents the two
components of the non-GAAP adjustment of "Other" (see Table
2).
|
(e)
|
Represents the sole
component of the non-GAAP adjustment of "Amortization of intangible
assets" (see Table 2).
|
(f)
|
Represents the sole
component of the non-GAAP adjustment of "Goodwill impairment" (see
Table 2).
|
(g)
|
Represents the sole
component of the non-GAAP adjustment of "Restructuring and
integration costs" (see Table 2).
|
(h)
|
Represents the sole
component of the non-GAAP adjustment of "Acquired in-process
research and development costs" (see Table 2).
|
(i)
|
Represents the sole
component of the non-GAAP adjustment of "Asset impairments" (see
Table 2).
|
(j)
|
Represents the sole
component of the non-GAAP adjustment of "Net gain on sale of
assets" (see Table 2).
|
(k)
|
Represents the sole
component of the non-GAAP adjustment of "Litigation and other
matters" (see Table 2).
|
(l)
|
Represents the sole
component of the non-GAAP adjustment of "Acquired in-process
research and development costs" (see Table 2).
|
(m)
|
Represents the sole
component of the non-GAAP adjustment of "Loss on extinguishment of
debt" (see Table 2).
|
(n)
|
Represents the sole
component of the non-GAAP adjustment of "Tax effect of non-GAAP
adjustments" (see Table 2).
|
Bausch Health Companies Inc.
|
|
|
|
|
|
Table 2b
|
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(non-GAAP)
|
|
|
|
|
|
|
For the Three and Six Months Ended June 30, 2019 and
2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net loss attributable to Bausch Health Companies
Inc.
|
|
$
|
(171)
|
|
|
$
|
(873)
|
|
|
$
|
(223)
|
|
|
$
|
(3,454)
|
|
|
Interest expense,
net
|
|
406
|
|
|
432
|
|
|
808
|
|
|
845
|
|
|
(Benefit from)
provision for income taxes
|
|
(9)
|
|
|
138
|
|
|
(83)
|
|
|
23
|
|
|
Depreciation and
amortization
|
|
531
|
|
|
784
|
|
|
1,063
|
|
|
1,570
|
|
EBITDA
|
|
757
|
|
|
481
|
|
|
1,565
|
|
|
(1,016)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Asset
impairments
|
|
13
|
|
|
301
|
|
|
16
|
|
|
345
|
|
|
Goodwill
impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,213
|
|
|
Restructuring and
integration costs
|
|
4
|
|
|
7
|
|
|
24
|
|
|
13
|
|
|
Acquired in-process
research and development costs
|
|
7
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
Acquisition-related
costs and adjustments (excluding amortization
of intangible assets)
|
|
24
|
|
|
(6)
|
|
|
12
|
|
|
(4)
|
|
|
Loss on
extinguishment of debt
|
|
33
|
|
|
48
|
|
|
40
|
|
|
75
|
|
|
Share-based
compensation
|
|
27
|
|
|
22
|
|
|
51
|
|
|
43
|
|
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
IT infrastructure
investment
|
|
5
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
Legal and other
professional fees (a)
|
|
11
|
|
|
15
|
|
|
19
|
|
|
20
|
|
|
Net loss (gain) on
sale of assets
|
|
1
|
|
|
—
|
|
|
(9)
|
|
|
—
|
|
|
Litigation and other
matters
|
|
1
|
|
|
(1)
|
|
|
3
|
|
|
10
|
|
|
Other
|
|
(3)
|
|
|
1
|
|
|
(7)
|
|
|
—
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
880
|
|
|
$
|
868
|
|
|
$
|
1,731
|
|
|
$
|
1,700
|
|
(a)
|
Legal and other
professional fees incurred during the three and six months ended
June 30, 2019 and 2018 in connection with recent legal and
governmental proceedings, investigations and information requests
related to, among other matters, our distribution, marketing,
pricing, disclosure and accounting practices.
|
Bausch Health Companies Inc.
|
|
|
|
|
|
|
Table 3a
|
Organic Growth (non-GAAP) - by
Segment
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2019 and
2018
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Organic Revenue for the Three Months
Ended
|
|
|
|
|
|
|
June 30, 2019
|
|
June 30, 2018
|
|
Change in
Organic
Revenue
|
|
|
Revenue
as
Reported
|
|
Changes
in
Exchange
Rates (a)
|
|
Acquisition
|
|
Organic
Revenue
(Non-
GAAP) (b)
|
|
Revenue
as
Reported
|
|
Divestitures
and
Discontinuations
|
|
Organic
Revenue
(Non-
GAAP) (b)
|
|
(in millions)
|
|
Amount
|
|
Pct.
|
Bausch + Lomb/International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Vision
Care
|
|
$
|
216
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
223
|
|
|
$
|
207
|
|
|
$
|
(1)
|
|
|
$
|
206
|
|
|
$
|
17
|
|
|
8
|
%
|
Global
Surgical
|
|
177
|
|
|
7
|
|
|
—
|
|
|
184
|
|
|
182
|
|
|
(2)
|
|
|
180
|
|
|
4
|
|
|
2
|
%
|
Global Consumer
Products
|
|
371
|
|
|
11
|
|
|
—
|
|
|
382
|
|
|
369
|
|
|
(4)
|
|
|
365
|
|
|
17
|
|
|
5
|
%
|
Global Ophtho
Rx
|
|
172
|
|
|
5
|
|
|
—
|
|
|
177
|
|
|
178
|
|
|
—
|
|
|
178
|
|
|
(1)
|
|
|
(1)
|
%
|
International Rx
|
|
272
|
|
|
7
|
|
|
—
|
|
|
279
|
|
|
273
|
|
|
(5)
|
|
|
268
|
|
|
11
|
|
|
4
|
%
|
Total Bausch +
Lomb/International
|
|
1,208
|
|
|
37
|
|
|
—
|
|
|
1,245
|
|
|
1,209
|
|
|
(12)
|
|
|
1,197
|
|
|
48
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salix
|
|
509
|
|
|
—
|
|
|
(17)
|
|
|
492
|
|
|
441
|
|
|
(3)
|
|
|
438
|
|
|
54
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ortho Dermatologics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ortho
Dermatologics(c)
|
|
77
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
109
|
|
|
—
|
|
|
109
|
|
|
(32)
|
|
|
(29)
|
%
|
Global
Solta
|
|
45
|
|
|
1
|
|
|
—
|
|
|
46
|
|
|
32
|
|
|
—
|
|
|
32
|
|
|
14
|
|
|
44
|
%
|
Total Ortho
Dermatologics
|
|
122
|
|
|
1
|
|
|
—
|
|
|
123
|
|
|
141
|
|
|
—
|
|
|
141
|
|
|
(18)
|
|
|
(13)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neurology and
Other
|
|
175
|
|
|
—
|
|
|
—
|
|
|
175
|
|
|
216
|
|
|
(1)
|
|
|
215
|
|
|
(40)
|
|
|
(19)
|
%
|
Generics(c)
|
|
112
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
90
|
|
|
—
|
|
|
90
|
|
|
22
|
|
|
24
|
%
|
Dentistry(c)
|
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
31
|
|
|
—
|
|
|
31
|
|
|
(5)
|
|
|
(16)
|
%
|
Total Diversified
Products
|
|
313
|
|
|
—
|
|
|
—
|
|
|
313
|
|
|
337
|
|
|
(1)
|
|
|
336
|
|
|
(23)
|
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
2,152
|
|
|
$
|
38
|
|
|
$
|
(17)
|
|
|
$
|
2,173
|
|
|
$
|
2,128
|
|
|
$
|
(16)
|
|
|
$
|
2,112
|
|
|
$
|
61
|
|
|
3
|
%
|
(a)
|
The impact for
changes in foreign currency exchange rates is determined as the
difference in the current period reported revenues at their current
period currency exchange rates and the current period reported
revenues revalued using the monthly average currency exchange rates
during the comparable prior period.
|
(b)
|
To supplement the
financial measures prepared in accordance with GAAP, the Company
uses certain non-GAAP financial measures. For additional
information about the Company's use of such non-GAAP financial
measures, refer to the body of the news release to which these
tables are attached. Organic revenue (non-GAAP) for the three
months ended June 30, 2019 is calculated as revenue as reported
adjusted for: (i) the impact for changes in exchange rates
(previously defined in this news release) and (ii) revenues
attributable to acquisitions during the twelve months subsequent to
the day of acquisition, as there are no revenues from those
businesses included in the comparable prior period. Organic revenue
(non-GAAP) for the three months ended June 30, 2018 is calculated
as revenue as reported less revenues attributable to divestitures
and discontinuances during the twelve months prior to the day of
divestiture or discontinuance, as there are no revenues from those
businesses and assets included in the comparable current
period.
|
(c)
|
Effective in the
first quarter of 2019, one product historically included in the
reported results of the Ortho Dermatologics business unit in the
Ortho Dermatologics segment is now included in the reported results
of the Generics business unit in the Diversified Products segment
and another product historically included in the reported results
of the Ortho Dermatologics business unit in the Ortho Dermatologics
segment is now included in the reported results of the Dentistry
business unit in the Diversified Products segment as management
believes the products better align with the new respective business
units. These changes in product alignment are not material. Prior
period presentations of business unit and segment revenues and
profits have been conformed to current segment and business unit
reporting structures.
|
Bausch Health Companies Inc.
|
|
|
|
|
|
|
Table 3b
|
Organic Growth (non-GAAP) - by
Segment
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2019 and
2018
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Organic Revenue for the Six Months
Ended
|
|
|
|
|
|
|
June 30, 2019
|
|
June 30, 2018
|
|
Change in
Organic
Revenue
|
|
|
Revenue
as
Reported
|
|
Changes
in
Exchange
Rates (a)
|
|
Acquisition
|
|
Organic
Revenue
(Non-
GAAP) (b)
|
|
Revenue
as
Reported
|
|
Divestitures
and
Discontinuations
|
|
Organic
Revenue
(Non-
GAAP) (b)
|
|
(in millions)
|
|
Amount
|
|
Pct.
|
Bausch + Lomb/International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Vision
Care
|
|
$
|
419
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
435
|
|
|
$
|
402
|
|
|
$
|
(1)
|
|
|
$
|
401
|
|
|
$
|
34
|
|
|
8
|
%
|
Global
Surgical
|
|
344
|
|
|
16
|
|
|
—
|
|
|
360
|
|
|
353
|
|
|
(3)
|
|
|
350
|
|
|
10
|
|
|
3
|
%
|
Global Consumer
Products
|
|
695
|
|
|
29
|
|
|
—
|
|
|
724
|
|
|
699
|
|
|
(10)
|
|
|
689
|
|
|
35
|
|
|
5
|
%
|
Global Ophtho
Rx
|
|
333
|
|
|
10
|
|
|
—
|
|
|
343
|
|
|
321
|
|
|
—
|
|
|
321
|
|
|
22
|
|
|
7
|
%
|
International Rx
|
|
535
|
|
|
24
|
|
|
—
|
|
|
559
|
|
|
537
|
|
|
(12)
|
|
|
525
|
|
|
34
|
|
|
6
|
%
|
Total Bausch +
Lomb/International
|
|
2,326
|
|
|
95
|
|
|
—
|
|
|
2,421
|
|
|
2,312
|
|
|
(26)
|
|
|
2,286
|
|
|
135
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salix
|
|
954
|
|
|
—
|
|
|
(23)
|
|
|
931
|
|
|
863
|
|
|
(6)
|
|
|
857
|
|
|
74
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ortho Dermatologics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ortho
Dermatologics(c)
|
|
177
|
|
|
—
|
|
|
—
|
|
|
177
|
|
|
220
|
|
|
—
|
|
|
220
|
|
|
(43)
|
|
|
(20)
|
%
|
Global
Solta
|
|
83
|
|
|
2
|
|
|
—
|
|
|
85
|
|
|
61
|
|
|
—
|
|
|
61
|
|
|
24
|
|
|
39
|
%
|
Total Ortho
Dermatologics
|
|
260
|
|
|
2
|
|
|
—
|
|
|
262
|
|
|
281
|
|
|
—
|
|
|
281
|
|
|
(19)
|
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neurology and
Other
|
|
361
|
|
|
—
|
|
|
—
|
|
|
361
|
|
|
425
|
|
|
(2)
|
|
|
423
|
|
|
(62)
|
|
|
(15)
|
%
|
Generics(c)
|
|
216
|
|
|
—
|
|
|
—
|
|
|
216
|
|
|
180
|
|
|
—
|
|
|
180
|
|
|
36
|
|
|
20
|
%
|
Dentistry(c)
|
|
51
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
62
|
|
|
—
|
|
|
62
|
|
|
(11)
|
|
|
(18)
|
%
|
Total Diversified
Products
|
|
628
|
|
|
—
|
|
|
—
|
|
|
628
|
|
|
667
|
|
|
(2)
|
|
|
665
|
|
|
(37)
|
|
|
(6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
4,168
|
|
|
$
|
97
|
|
|
$
|
(23)
|
|
|
$
|
4,242
|
|
|
$
|
4,123
|
|
|
$
|
(34)
|
|
|
$
|
4,089
|
|
|
$
|
153
|
|
|
4
|
%
|
(a)
|
The impact for
changes in foreign currency exchange rates is determined as the
difference in the current period reported revenues at their current
period currency exchange rates and the current period reported
revenues revalued using the monthly average currency exchange rates
during the comparable prior period.
|
(b)
|
To supplement the
financial measures prepared in accordance with GAAP, the Company
uses certain non-GAAP financial measures. For additional
information about the Company's use of such non-GAAP financial
measures, refer to the body of the news release to which these
tables are attached. Organic revenue (non-GAAP) for the six months
ended June 30, 2019 is calculated as revenue as reported adjusted
for: (i) the impact for changes in exchange rates (previously
defined in this news release) and (ii) revenues attributable to
acquisitions during the twelve months subsequent to the day of
acquisition, as there are no revenues from those businesses
included in the comparable prior period. Organic revenue (non-GAAP)
for the six months ended June 30, 2018 is calculated as revenue as
reported less revenues attributable to divestitures and
discontinuances during the twelve months prior to the day of
divestiture or discontinuance, as there are no revenues from those
businesses and assets included in the comparable current
period.
|
(c)
|
Effective in the
first quarter of 2019, one product historically included in the
reported results of the Ortho Dermatologics business unit in the
Ortho Dermatologics segment is now included in the reported results
of the Generics business unit in the Diversified Products segment
and another product historically included in the reported results
of the Ortho Dermatologics business unit in the Ortho Dermatologics
segment is now included in the reported results of the Dentistry
business unit in the Diversified Products segment as management
believes the products better align with the new respective business
units. These changes in product alignment are not material. Prior
period presentations of business unit and segment revenues and
profits have been conformed to current segment and business unit
reporting structures.
|
Bausch Health Companies Inc.
|
|
|
|
Table 4
|
Other Financial Information
|
|
|
|
|
(unaudited)
|
|
|
|
|
(in millions)
|
|
June 30,
2019
|
|
December 31,
2018
|
Cash Balances
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
878
|
|
|
$
|
721
|
|
Restricted
cash
|
|
2
|
|
|
2
|
|
Cash, cash
equivalents and restricted cash
|
|
$
|
880
|
|
|
$
|
723
|
|
|
|
|
|
|
Debt Balances
|
|
|
|
|
Senior Secured Credit
Facilities:
|
|
|
|
|
2023 Revolving Credit
Facility
|
|
$
|
150
|
|
|
$
|
75
|
|
June 2025 Term Loan B
Facility
|
|
4,029
|
|
|
4,269
|
|
November 2025 Term
Loan B Facility
|
|
1,384
|
|
|
1,456
|
|
Senior Secured Notes
|
|
|
|
|
5.75% Senior Secured
Notes due August 2027
|
|
493
|
|
|
—
|
|
All other Senior
Secured Notes
|
|
4,953
|
|
|
4,948
|
|
Senior Unsecured Notes:
|
|
|
|
|
5.625% Senior
Unsecured Notes due December 2021
|
|
—
|
|
|
697
|
|
5.50% Senior
Unsecured Notes due March 2023
|
|
400
|
|
|
995
|
|
5.875% Senior
Unsecured Notes due May 2023
|
|
1,539
|
|
|
3,229
|
|
8.50% Senior
Unsecured Notes due January 2027
|
|
1,757
|
|
|
738
|
|
7.00% Senior
Unsecured Notes due June 2028
|
|
740
|
|
|
—
|
|
7.25% Senior
Unsecured Notes due June 2029
|
|
740
|
|
|
—
|
|
All other Senior
Unsecured Notes
|
|
7,878
|
|
|
7,886
|
|
Other
|
|
16
|
|
|
12
|
|
Total long-term debt and other, net of premiums,
discounts and issuance costs
|
|
24,079
|
|
|
24,305
|
|
Plus: Unamortized
premiums, discounts and issuance costs
|
|
290
|
|
|
327
|
|
Total long-term debt and other
|
|
$
|
24,369
|
|
|
$
|
24,632
|
|
|
|
|
|
|
Maturities and Mandatory Payments of Debt
Obligations
|
|
|
|
|
Remainder of
2019
|
|
$
|
4
|
|
|
$
|
228
|
|
2020
|
|
203
|
|
|
303
|
|
2021
|
|
303
|
|
|
1,003
|
|
2022
|
|
1,553
|
|
|
1,553
|
|
2023
|
|
4,109
|
|
|
6,348
|
|
2024
|
|
2,303
|
|
|
2,303
|
|
2025
|
|
10,632
|
|
|
10,632
|
|
2026 -
2029
|
|
5,262
|
|
|
2,262
|
|
Total debt
obligations
|
|
$
|
24,369
|
|
|
$
|
24,632
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
Cash provided by operating activities - Three months
ended June 30,
|
|
$
|
339
|
|
|
$
|
222
|
|
|
|
|
|
|
|
Cash provided by operating activities - Six months
ended June 30,
|
|
$
|
752
|
|
|
$
|
660
|
|
Investor/Media
Contact:
Arthur
Shannon
arthur.shannon@bauschhealth.com
(514)
856-3855
(877) 281-6642 (toll
free)
View original content to download
multimedia:http://www.prnewswire.com/news-releases/bausch-health-companies-inc-announces-second-quarter-2019-results-and-raises-full-year-guidance-300896736.html
SOURCE Bausch Health Companies Inc.