LAVAL, Quebec, Nov. 4, 2019 /CNW/ --
- Third-Quarter 2019 Financial Results
-
- Revenues of $2.209
Billion
- GAAP Net Loss of $49
Million
- Adjusted EBITDA (non-GAAP)1 of $942 Million
- GAAP Cash Generated from Operations of $515 Million
- Delivered Total Company Reported Revenue Growth of 3% and
Organic Revenue Growth1,2 of 4%
Compared to the Third Quarter of 2018
-
- Bausch + Lomb/International Segment Delivered
12th Consecutive Quarter of Organic Revenue
Growth1,2
- Salix Segment Reported Revenue Increased by 20% Compared to
the Third Quarter of 2018
- Raised Full-Year 2019 Guidance Ranges
Bausch Health Companies Inc. (NYSE/TSX: BHC) ("Bausch Health" or
the "Company" or "we") today announced its third-quarter 2019
financial results.
"In the third quarter, Bausch Health delivered another strong
quarter with both reported and organic revenue
growth1,2, demonstrating that our efforts to grow our
core businesses are continuing to gain traction. In addition to
organic revenue growth1,2 in both the Bausch +
Lomb/International and Salix segments due to higher revenues in
several of our durable, established brands, such as XIFAXAN®,
BioTrue® ONEday and Bausch + Lomb ULTRA®, our performance was also
strengthened by the success of newer products, such as LUMIFY® and
Thermage® FLX," said Joseph C. Papa,
chairman and CEO, Bausch Health.
"Additionally, we are excited by the potential we see from the
early days of the launch of DUOBRII®, the newest product in our
dermatology portfolio."
Company Highlights
Executing on Core Businesses and Advancing Pipeline
- The Bausch + Lomb/International segment comprised approximately
53% of the Company's reported revenue in the third quarter of
2019
-
- Increased reported revenue in the Bausch + Lomb/International
segment by 2% compared to the third quarter of 2018; revenue in
this segment grew organically1,2 by 5%
compared to the third quarter of 2018; growth was primarily driven
by the Global Consumer, International Rx and Global Vision Care
business units
- Delivered 12th consecutive quarter of organic
revenue growth1,2
- Launched Ocuvite® Eye Performance vitamins in the United States, which are formulated to
help protect the eye from digital device blue light and UV exposure
from the sun
- The Salix segment comprised approximately 25% of the Company's
reported revenue in the third quarter of 2019
-
- Increased reported revenue in the Salix segment by 20% compared
to the third quarter of 2018
- Increased reported revenue of XIFAXAN® by 24% compared to the
third quarter of 2018
- The Ortho Dermatologics segment comprised approximately 7% of
the Company's reported revenue in the third quarter of 2019
-
- The U.S. Food and Drug Administration accepted the New Drug
Application for ARAZLO™3 (IDP-123) Lotion with a PDUFA
action date of Dec. 22, 2019; if
approved, ARAZLO™3 will be the first tazarotene acne
treatment available in a lotion form
- Expanded the cash-pay prescription program, Dermatology.com, to
all Walgreens U.S. retail pharmacy locations
- Reported revenues in the Global Solta business unit increased
by 62% compared to the third quarter of 2018, driven by continued
strong demand of Thermage® FLX following the launch in the
Asia Pacific region
- Released annual Corporate Social Responsibility report
Strategic Capital Allocation and Debt Management
- Increased Research and Development (R&D) by approximately
15%, or $16 million, compared to the
third quarter of 2018
- Repaid debt by approximately $450
million in the third quarter of 2019, including the net
impact of activity under our revolving credit facility
Third-Quarter 2019 Revenue Performance
Total reported
revenues were $2.209 billion for the
third quarter of 2019, as compared to $2.136
billion in the third quarter of 2018, an increase of
$73 million, or 3%. Excluding the
unfavorable impact of foreign exchange of $15 million, the impact of a 2019 acquisition of
$14 million and the impact of
divestitures and discontinuations of $13
million, revenue grew
organically1,2 by 4% compared to the
third quarter of 2018, driven by organic growth2 in the
Salix and Bausch + Lomb/International segments.
Revenues by segment were as follows:
|
|
Three Months
Ended
|
|
|
|
|
|
Change
at
|
|
|
|
|
|
September
30
|
|
Reported
|
|
Reported
|
|
Constant
|
|
Organic
|
|
(in
millions)
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
|
Currency4
|
|
Change1,2
|
|
Bausch +
Lomb/International
|
|
$1,175
|
|
$1,147
|
|
$28
|
|
2%
|
|
4%
|
|
5%
|
|
Salix
|
|
$551
|
|
$460
|
|
$91
|
|
20%
|
|
20%
|
|
18%
|
|
Ortho
Dermatologics
|
|
$147
|
|
$176
|
|
($29)
|
|
(16%)
|
|
(16%)
|
|
(16%)
|
|
Diversified
Products
|
|
$336
|
|
$353
|
|
($17)
|
|
(5%)
|
|
(5%)
|
|
(5%)
|
|
Total
Revenues
|
|
$2,209
|
|
$2,136
|
|
$73
|
|
3%
|
|
4%
|
|
4%
|
|
Bausch + Lomb/International Segment
Bausch +
Lomb/International segment revenues were $1.175 billion for the third quarter of 2019, as
compared to $1.147 billion for the
third quarter of 2018, an increase of $28
million, or 2%. Excluding the unfavorable impact of foreign
exchange of $15 million and the
impact of divestitures and discontinuations of $9 million, the Bausch + Lomb/International
segment grew organically1,2 by
approximately 5% compared to the third quarter of 2018. The
increase was primarily driven by growth in the Global Consumer,
International Rx and Global Vision Care business units.
Salix Segment
Salix segment revenues were $551 million for the third quarter of 2019, as
compared to $460 million for the
third quarter of 2018, an increase of $91
million, or 20%. The increase was primarily driven by
XIFAXAN®, which grew 24% as compared to the third quarter of
2018.
Ortho Dermatologics Segment
Ortho
Dermatologics segment revenues were $147 million for the third quarter of 2019, as
compared to $176 million for the
third quarter of 2018, a decrease of $29
million, or 16%, due to lower volumes primarily driven by
the loss of exclusivity of ZOVIRAX®, SOLODYN® and ELIDEL®,
partially offset by organic revenue growth2 in the
Global Solta business unit and from new product launches in the
Ortho Dermatologics business unit.
Diversified Products Segment
Diversified
Products segment revenues were $336 million for the third quarter of 2019, as
compared to $353 million for the
third quarter of 2018, a decrease of $17
million, or 5%. The decrease was primarily attributable to
the previously reported loss of exclusivity for a basket of
products.
Operating Income
Operating income was $329 million for the third quarter of 2019, as
compared to an operating income of $117
million for the third quarter of 2018, an increase of
$212 million. The increase in
operating results for the third quarter of 2019 was primarily
driven by a decrease in amortization and impairments and the
increase in reported revenues and higher gross margins in 2019 as
compared to 2018, offset by increased Selling, general and
administrative (SG&A) expenses and R&D expenses.
Net Loss
Net loss for the three months ended
Sept. 30, 2019 was $49 million, as compared to net loss of
$350 million for the same period in
2018, a favorable impact of $301
million. The change is primarily due to the increased
operating results noted above and the favorable change in
income tax provision.
Adjusted net income (non-GAAP)1 for the third quarter
of 2019 was $425 million, as compared
to $403 million for the third quarter
of 2018, an increase of $22 million,
or 5%.
Cash Generated from Operations
The Company generated
$515 million of cash from operations
in the third quarter of 2019, as compared to $522 million in the third quarter of 2018.
EPS
GAAP Earnings Per Share (EPS) Diluted for the
third quarter of 2019 was ($0.14), as
compared to ($1.00) for the third
quarter of 2018.
Adjusted
EBITDA (non-GAAP)1
Adjusted EBITDA
(non-GAAP)1 was $942
million for the third quarter of 2019, as compared to
$916 million for the third quarter of
2018, an increase of $26 million, or
3%.
2019 Financial Outlook
Bausch Health raised its
revenue and Adjusted EBITDA (non-GAAP) guidance ranges for the full
year of 2019:
- Raised full-year revenue range from $8.40 – $8.60
billion to $8.475 –
$8.625 billion
- Raised full-year Adjusted EBITDA (non-GAAP) range from
$3.425 – $3.575 billion to $3.50 – $3.60
billion
- Mid-point of the November guidance ranges is up by
$50 million versus the mid-point of
the August 2019 guidance
ranges
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) 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). 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 higher expected revenues from certain of our products
with loss of exclusivity, better than expected base performance and
improvements in our gross margins, partially offset by higher than
expected R&D expenses.
Additional Highlights
- Bausch Health's cash, cash equivalents and restricted cash were
$827 million at Sept. 30, 2019
- The Company's availability under the Revolving Credit Facility
was approximately $1.055 billion at
Sept. 30, 2019
- Basic weighted average shares outstanding for the quarter were
352.4 million shares. Diluted weighted average shares outstanding
for the quarter were 356.8 million shares5
Conference Call Details
Date:
|
Monday, Nov. 4,
2019
|
Time:
|
8:00 a.m.
ET
|
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:
|
0458346
|
Replay
Dial-in:
|
+1 (877) 344-7529
(United States)
|
|
+1 (412) 317-0088
(International)
|
|
+1 (855) 669-9658
(Canada)
|
Replay
Passcode:
|
10135669 (replay
available until Nov. 11, 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. 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 the
Company's 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. Organic revenue is impacted by changes in product
volumes and price. The price component is made up of two key
drivers: (i) changes in product gross selling price and (ii)
changes in sales deductions. 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
|
Provisional
name.
|
4
|
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.
|
5
|
Diluted weighted
average shares includes the dilutive impact of options and
restricted stock units, which are 4,453,000 common shares for the 3
months ended Sept. 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
Nine Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
(in
millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
|
|
|
|
|
|
|
|
Product
sales
|
|
$
|
2,180
|
|
|
$
|
2,108
|
|
|
$
|
6,291
|
|
|
$
|
6,173
|
|
Other
revenues
|
|
29
|
|
|
28
|
|
|
86
|
|
|
86
|
|
|
|
2,209
|
|
|
2,136
|
|
|
6,377
|
|
|
6,259
|
|
Expenses
|
|
|
|
|
|
|
|
|
Cost of goods sold
(excluding amortization and impairments of
intangible assets)
|
|
571
|
|
|
573
|
|
|
1,675
|
|
|
1,717
|
|
Cost of other
revenues
|
|
13
|
|
|
9
|
|
|
40
|
|
|
32
|
|
Selling, general and
administrative
|
|
648
|
|
|
614
|
|
|
1,886
|
|
|
1,847
|
|
Research and
development
|
|
123
|
|
|
107
|
|
|
357
|
|
|
293
|
|
Amortization of
intangible assets
|
|
475
|
|
|
658
|
|
|
1,452
|
|
|
2,142
|
|
Goodwill
impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,213
|
|
Asset
impairments
|
|
33
|
|
|
89
|
|
|
49
|
|
|
434
|
|
Restructuring and
integration costs
|
|
4
|
|
|
3
|
|
|
28
|
|
|
16
|
|
Acquisition-related
contingent consideration
|
|
3
|
|
|
(19)
|
|
|
2
|
|
|
(23)
|
|
Other expense
(income), net
|
|
10
|
|
|
(15)
|
|
|
15
|
|
|
(3)
|
|
|
|
1,880
|
|
|
2,019
|
|
|
5,504
|
|
|
8,668
|
|
Operating income
(loss)
|
|
329
|
|
|
117
|
|
|
873
|
|
|
(2,409)
|
|
Interest
income
|
|
2
|
|
|
3
|
|
|
9
|
|
|
9
|
|
Interest
expense
|
|
(406)
|
|
|
(420)
|
|
|
(1,221)
|
|
|
(1,271)
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
(40)
|
|
|
(75)
|
|
Foreign exchange and
other
|
|
9
|
|
|
—
|
|
|
12
|
|
|
18
|
|
Loss before benefit
from (provision for) income taxes
|
|
(66)
|
|
|
(300)
|
|
|
(367)
|
|
|
(3,728)
|
|
Benefit from
(provision for) income taxes
|
|
18
|
|
|
(51)
|
|
|
101
|
|
|
(74)
|
|
Net loss
|
|
(48)
|
|
|
(351)
|
|
|
(266)
|
|
|
(3,802)
|
|
Net (income) loss
attributable to noncontrolling interest
|
|
(1)
|
|
|
1
|
|
|
(6)
|
|
|
(2)
|
|
Net loss
attributable to Bausch Health Companies Inc.
|
|
$
|
(49)
|
|
|
$
|
(350)
|
|
|
$
|
(272)
|
|
|
$
|
(3,804)
|
|
Bausch Health
Companies Inc.
|
|
|
|
|
|
|
|
Table
2
|
Reconciliation of
GAAP Net Loss to Adjusted Net Income (non-GAAP)
|
|
|
|
|
|
|
For the Three and
Nine Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
(in
millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net loss
attributable to Bausch Health Companies Inc.
|
|
$
|
(49)
|
|
|
$
|
(350)
|
|
|
$
|
(272)
|
|
|
$
|
(3,804)
|
|
Non-GAAP adjustments:
(a)
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
475
|
|
|
658
|
|
|
1,452
|
|
|
2,142
|
|
Asset
impairments
|
|
33
|
|
|
89
|
|
|
49
|
|
|
434
|
|
Goodwill
impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,213
|
|
Restructuring and
integration costs
|
|
4
|
|
|
3
|
|
|
28
|
|
|
16
|
|
Acquired in-process
research and development costs
|
|
1
|
|
|
—
|
|
|
9
|
|
|
1
|
|
Acquisition-related
costs and adjustments (excluding amortization of
intangible assets)
|
|
3
|
|
|
(19)
|
|
|
15
|
|
|
(23)
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
40
|
|
|
75
|
|
IT infrastructure
investment
|
|
6
|
|
|
—
|
|
|
15
|
|
|
—
|
|
Legal and other
professional fees
|
|
3
|
|
|
15
|
|
|
22
|
|
|
35
|
|
Net (gain) loss on
sale of assets
|
|
(1)
|
|
|
26
|
|
|
(10)
|
|
|
26
|
|
Litigation and other
matters
|
|
9
|
|
|
(40)
|
|
|
12
|
|
|
(30)
|
|
Other
|
|
1
|
|
|
(1)
|
|
|
(6)
|
|
|
(1)
|
|
Tax effect of
non-GAAP adjustments
|
|
(60)
|
|
|
22
|
|
|
(199)
|
|
|
(42)
|
|
Total non-GAAP
adjustments
|
|
474
|
|
|
753
|
|
|
1,427
|
|
|
4,846
|
|
Adjusted net
income attributable to Bausch Health Companies Inc.
(non-GAAP)
|
|
$
|
425
|
|
|
$
|
403
|
|
|
$
|
1,155
|
|
|
$
|
1,042
|
|
|
|
(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
Nine Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
(in
millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cost of goods sold
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Cost of goods
sold (excluding amortization and impairments of
intangible assets)
|
|
$
|
571
|
|
|
$
|
573
|
|
|
$
|
1,675
|
|
|
$
|
1,717
|
|
Fair value inventory
step-up resulting from acquisitions (a)
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
Adjusted cost of
goods sold (excluding amortization and impairments of
intangible assets)
(non-GAAP)
|
|
$
|
571
|
|
|
$
|
573
|
|
|
$
|
1,670
|
|
|
$
|
1,717
|
|
Selling, general
and administrative reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Selling, general
and administrative
|
|
$
|
648
|
|
|
$
|
614
|
|
|
$
|
1,886
|
|
|
$
|
1,847
|
|
IT infrastructure
investment (b)
|
|
(6)
|
|
|
—
|
|
|
(15)
|
|
|
—
|
|
Legal and other
professional fees (c)
|
|
(3)
|
|
|
(15)
|
|
|
(22)
|
|
|
(35)
|
|
Other Selling,
general and administrative (d)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
Adjusted selling,
general and administrative (non-GAAP)
|
|
$
|
639
|
|
|
$
|
599
|
|
|
$
|
1,851
|
|
|
$
|
1,813
|
|
Amortization of
intangible assets reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Amortization of
intangible assets
|
|
$
|
475
|
|
|
$
|
658
|
|
|
$
|
1,452
|
|
|
$
|
2,142
|
|
Amortization of
intangible assets (e)
|
|
(475)
|
|
|
(658)
|
|
|
(1,452)
|
|
|
(2,142)
|
|
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
|
|
|
$
|
3
|
|
|
$
|
28
|
|
|
$
|
16
|
|
Restructuring and
integration costs (g)
|
|
(4)
|
|
|
(3)
|
|
|
(28)
|
|
|
(16)
|
|
Adjusted
restructuring and integration costs (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Asset impairments
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Asset
impairments
|
|
$
|
33
|
|
|
$
|
89
|
|
|
$
|
49
|
|
|
$
|
434
|
|
Asset impairments
(i)
|
|
(33)
|
|
|
(89)
|
|
|
(49)
|
|
|
(434)
|
|
Adjusted asset
impairments (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Acquisition-related contingent consideration
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP
Acquisition-related contingent consideration
|
|
$
|
3
|
|
|
$
|
(19)
|
|
|
$
|
2
|
|
|
$
|
(23)
|
|
Acquisition-related
contingent consideration (a)
|
|
(3)
|
|
|
19
|
|
|
(2)
|
|
|
23
|
|
Adjusted
acquisition-related contingent consideration (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Bausch Health
Companies Inc.
|
|
|
|
|
Table 2a
(continued)
|
Reconciliation of
GAAP to Non-GAAP Financial Information
|
|
|
|
|
|
|
|
|
For the Three and
Nine Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
(in
millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Other expense
(income), net reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Other expense
(income), net
|
|
$
|
10
|
|
|
$
|
(15)
|
|
|
$
|
15
|
|
|
$
|
(3)
|
|
Net gain (loss) on
sale of assets (j)
|
|
1
|
|
|
(26)
|
|
|
10
|
|
|
(26)
|
|
Acquisition-related
costs (a)
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
Litigation and other
matters (k)
|
|
(9)
|
|
|
40
|
|
|
(12)
|
|
|
30
|
|
Acquired in-process
research and development costs (l)
|
|
(1)
|
|
|
—
|
|
|
(9)
|
|
|
(1)
|
|
Other
(d)
|
|
(1)
|
|
|
1
|
|
|
4
|
|
|
—
|
|
Adjusted other
expense (income) (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loss on
extinguishment of debt reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Loss on
extinguishment of debt
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(40)
|
|
|
$
|
(75)
|
|
Loss on
extinguishment of debt (m)
|
|
—
|
|
|
—
|
|
|
40
|
|
|
75
|
|
Adjusted loss on
extinguishment of debt (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Benefit from
(provision for) income taxes reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Benefit from
(provision for) income taxes
|
|
$
|
18
|
|
|
$
|
(51)
|
|
|
$
|
101
|
|
|
$
|
(74)
|
|
Tax effect of
non-GAAP adjustments (n)
|
|
(60)
|
|
|
22
|
|
|
(199)
|
|
|
(42)
|
|
Adjusted provision
for income taxes (non-GAAP)
|
|
$
|
(42)
|
|
|
$
|
(29)
|
|
|
$
|
(98)
|
|
|
$
|
(116)
|
|
|
|
(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 nine months ended September 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) loss 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
Nine Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
(in
millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net loss
attributable to Bausch Health Companies Inc.
|
|
$
|
(49)
|
|
|
$
|
(350)
|
|
|
$
|
(272)
|
|
|
$
|
(3,804)
|
|
|
Interest expense,
net
|
|
404
|
|
|
417
|
|
|
1,212
|
|
|
1,262
|
|
|
(Benefit from)
provision for income taxes
|
|
(18)
|
|
|
51
|
|
|
(101)
|
|
|
74
|
|
|
Depreciation and
amortization
|
|
520
|
|
|
703
|
|
|
1,583
|
|
|
2,273
|
|
EBITDA
|
|
857
|
|
|
821
|
|
|
2,422
|
|
|
(195)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Asset
impairments
|
|
33
|
|
|
89
|
|
|
49
|
|
|
434
|
|
|
Goodwill
impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,213
|
|
|
Restructuring and
integration costs
|
|
4
|
|
|
3
|
|
|
28
|
|
|
16
|
|
|
Acquired in-process
research and development costs
|
|
1
|
|
|
—
|
|
|
9
|
|
|
1
|
|
|
Acquisition-related
costs and adjustments (excluding amortization of
intangible assets)
|
|
3
|
|
|
(19)
|
|
|
15
|
|
|
(23)
|
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
40
|
|
|
75
|
|
|
Share-based
compensation
|
|
26
|
|
|
22
|
|
|
77
|
|
|
65
|
|
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
IT infrastructure
investment
|
|
6
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
Legal and other
professional fees (a)
|
|
3
|
|
|
15
|
|
|
22
|
|
|
35
|
|
|
Net (gain) loss on
sale of assets
|
|
(1)
|
|
|
26
|
|
|
(10)
|
|
|
26
|
|
|
Litigation and other
matters
|
|
9
|
|
|
(40)
|
|
|
12
|
|
|
(30)
|
|
|
Other
|
|
1
|
|
|
(1)
|
|
|
(6)
|
|
|
(1)
|
|
Adjusted EBITDA
(non-GAAP)
|
|
$
|
942
|
|
|
$
|
916
|
|
|
$
|
2,673
|
|
|
$
|
2,616
|
|
|
|
(a)
|
Legal and other
professional fees incurred during the three and nine months ended
September 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 September 30, 2019 and 2018
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Organic Revenue for the Three Months Ended
|
|
|
|
|
|
|
September 30,
2019
|
|
September 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
|
|
$
|
219
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
221
|
|
|
$
|
209
|
|
|
$
|
(1)
|
|
|
$
|
208
|
|
|
$
|
13
|
|
|
6
|
%
|
Global
Surgical
|
|
161
|
|
|
4
|
|
|
—
|
|
|
165
|
|
|
159
|
|
|
(2)
|
|
|
157
|
|
|
8
|
|
|
5
|
%
|
Global Consumer
Products
|
|
370
|
|
|
5
|
|
|
—
|
|
|
375
|
|
|
354
|
|
|
(2)
|
|
|
352
|
|
|
23
|
|
|
7
|
%
|
Global Ophtho
Rx
|
|
150
|
|
|
2
|
|
|
—
|
|
|
152
|
|
|
161
|
|
|
—
|
|
|
161
|
|
|
(9)
|
|
|
(6)
|
%
|
International Rx
|
|
275
|
|
|
2
|
|
|
—
|
|
|
277
|
|
|
264
|
|
|
(4)
|
|
|
260
|
|
|
17
|
|
|
7
|
%
|
Total Bausch +
Lomb/International
|
|
1,175
|
|
|
15
|
|
|
—
|
|
|
1,190
|
|
|
1,147
|
|
|
(9)
|
|
|
1,138
|
|
|
52
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salix
|
|
551
|
|
|
—
|
|
|
(14)
|
|
|
537
|
|
|
460
|
|
|
(3)
|
|
|
457
|
|
|
80
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ortho
Dermatologics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ortho
Dermatologics(c)
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
147
|
|
|
—
|
|
|
147
|
|
|
(47)
|
|
|
(32)
|
%
|
Global
Solta
|
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
29
|
|
|
—
|
|
|
29
|
|
|
18
|
|
|
62
|
%
|
Total Ortho
Dermatologics
|
|
147
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|
176
|
|
|
—
|
|
|
176
|
|
|
(29)
|
|
|
(16)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neurology and
Other
|
|
186
|
|
|
—
|
|
|
—
|
|
|
186
|
|
|
211
|
|
|
(1)
|
|
|
210
|
|
|
(24)
|
|
|
(11)
|
%
|
Generics(c)
|
|
126
|
|
|
—
|
|
|
—
|
|
|
126
|
|
|
118
|
|
|
—
|
|
|
118
|
|
|
8
|
|
|
7
|
%
|
Dentistry(c)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
%
|
Total Diversified
Products
|
|
336
|
|
|
—
|
|
|
—
|
|
|
336
|
|
|
353
|
|
|
(1)
|
|
|
352
|
|
|
(16)
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
2,209
|
|
|
$
|
15
|
|
|
$
|
(14)
|
|
|
$
|
2,210
|
|
|
$
|
2,136
|
|
|
$
|
(13)
|
|
|
$
|
2,123
|
|
|
$
|
87
|
|
|
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 three
months ended September 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 September 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 Nine
Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Organic Revenue for the Nine Months Ended
|
|
|
|
|
|
|
September 30,
2019
|
|
September 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
|
|
$
|
638
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
656
|
|
|
$
|
611
|
|
|
$
|
(2)
|
|
|
$
|
609
|
|
|
$
|
47
|
|
|
8
|
%
|
Global
Surgical
|
|
505
|
|
|
20
|
|
|
—
|
|
|
525
|
|
|
512
|
|
|
(5)
|
|
|
507
|
|
|
18
|
|
|
4
|
%
|
Global Consumer
Products
|
|
1,065
|
|
|
34
|
|
|
—
|
|
|
1,099
|
|
|
1,053
|
|
|
(12)
|
|
|
1,041
|
|
|
58
|
|
|
6
|
%
|
Global Ophtho
Rx
|
|
483
|
|
|
12
|
|
|
—
|
|
|
495
|
|
|
482
|
|
|
—
|
|
|
482
|
|
|
13
|
|
|
3
|
%
|
International Rx
|
|
810
|
|
|
26
|
|
|
—
|
|
|
836
|
|
|
801
|
|
|
(16)
|
|
|
785
|
|
|
51
|
|
|
6
|
%
|
Total Bausch +
Lomb/International
|
|
3,501
|
|
|
110
|
|
|
—
|
|
|
3,611
|
|
|
3,459
|
|
|
(35)
|
|
|
3,424
|
|
|
187
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salix
|
|
1,505
|
|
|
—
|
|
|
(37)
|
|
|
1,468
|
|
|
1,323
|
|
|
(9)
|
|
|
1,314
|
|
|
154
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ortho
Dermatologics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ortho
Dermatologics(c)
|
|
277
|
|
|
—
|
|
|
—
|
|
|
277
|
|
|
367
|
|
|
—
|
|
|
367
|
|
|
(90)
|
|
|
(25)
|
%
|
Global
Solta
|
|
130
|
|
|
2
|
|
|
—
|
|
|
132
|
|
|
90
|
|
|
—
|
|
|
90
|
|
|
42
|
|
|
47
|
%
|
Total Ortho
Dermatologics
|
|
407
|
|
|
2
|
|
|
—
|
|
|
409
|
|
|
457
|
|
|
—
|
|
|
457
|
|
|
(48)
|
|
|
(11)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neurology and
Other
|
|
547
|
|
|
—
|
|
|
—
|
|
|
547
|
|
|
636
|
|
|
(3)
|
|
|
633
|
|
|
(86)
|
|
|
(14)
|
%
|
Generics(c)
|
|
342
|
|
|
—
|
|
|
—
|
|
|
342
|
|
|
298
|
|
|
—
|
|
|
298
|
|
|
44
|
|
|
15
|
%
|
Dentistry(c)
|
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
86
|
|
|
—
|
|
|
86
|
|
|
(11)
|
|
|
(13)
|
%
|
Total Diversified
Products
|
|
964
|
|
|
—
|
|
|
—
|
|
|
964
|
|
|
1,020
|
|
|
(3)
|
|
|
1,017
|
|
|
(53)
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
6,377
|
|
|
$
|
112
|
|
|
$
|
(37)
|
|
|
$
|
6,452
|
|
|
$
|
6,259
|
|
|
$
|
(47)
|
|
|
$
|
6,212
|
|
|
$
|
240
|
|
|
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 nine months
ended September 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 nine months ended September 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)
|
|
September 30,
2019
|
|
December 31,
2018
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
825
|
|
|
$
|
721
|
|
Restricted
cash
|
|
2
|
|
|
2
|
|
Cash, cash
equivalents and restricted cash
|
|
$
|
827
|
|
|
$
|
723
|
|
|
|
|
|
|
Debt
Obligations
|
|
|
|
|
Senior Secured Credit
Facilities:
|
|
|
|
|
Revolving Credit
Facility
|
|
$
|
—
|
|
|
$
|
75
|
|
Term Loan
Facilities
|
|
5,119
|
|
|
5,725
|
|
Senior Secured
Notes
|
|
5,448
|
|
|
4,948
|
|
Senior Unsecured
Notes
|
|
12,987
|
|
|
13,545
|
|
Other
|
|
12
|
|
|
12
|
|
Total long-term debt
and other, net of premiums, discounts and issuance costs
|
|
23,566
|
|
|
24,305
|
|
Plus: Unamortized
premiums, discounts and issuance costs
|
|
275
|
|
|
327
|
|
Total long-term debt
and other
|
|
$
|
23,841
|
|
|
$
|
24,632
|
|
|
|
|
|
|
Maturities and
Mandatory Payments of Debt Obligations
|
|
|
|
|
Remainder of
2019
|
|
$
|
100
|
|
|
$
|
228
|
|
2020
|
|
—
|
|
|
303
|
|
2021
|
|
203
|
|
|
1,003
|
|
2022
|
|
1,553
|
|
|
1,553
|
|
2023
|
|
3,788
|
|
|
6,348
|
|
2024
|
|
2,303
|
|
|
2,303
|
|
2025
|
|
10,632
|
|
|
10,632
|
|
2026 -
2029
|
|
5,262
|
|
|
2,262
|
|
Total debt
obligations
|
|
$
|
23,841
|
|
|
$
|
24,632
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash provided by
operating activities
|
|
$
|
515
|
|
|
$
|
522
|
|
|
$
|
1,267
|
|
|
$
|
1,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor
Contact:
|
Media
Contact:
|
Arthur
Shannon
|
Lainie
Keller
|
arthur.shannon@bauschhealth.com
|
lainie.keller@bauschhealth.com
|
(514)
856-3855
|
(908)
927-1198
|
(877) 281-6642 (toll
free)
|
|
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SOURCE Bausch Health Companies Inc.