- Fourth-Quarter 2022 Financial Results
- Revenues of $996 Million
- GAAP Net Loss Attributable to Bausch + Lomb Corporation of
$1 Million
- Adjusted EBITDA (non-GAAP)1 of $181 Million
- GAAP Cash Flow from Operations of $159 Million
- Reported Revenues Were in Line with Fourth-Quarter 2021
Reported Revenues, and Organic Revenues1,2 Grew 5%, Driven by
Organic Growth1,2 Across All Segments
- Full-Year 2022 Financial Results
- Revenues of $3.768 Billion
- GAAP Net Income Attributable to Bausch + Lomb Corporation of
$6 Million
- Adjusted EBITDA (non-GAAP)1 of $720 Million
- GAAP Cash Flow from Operations of $345 Million
- Reported Revenues Were in Line with Full-Year 2021 Reported
Revenues, and Organic Revenues1,2 Grew 5%, Driven by Organic
Growth1,2 in the Vision Care and Surgical Segments
- Fourth Quarter and Full-Year 2022 Revenues and Adjusted
EBITDA (non-GAAP)1 Were Negatively Impacted by Foreign
Exchange
Bausch + Lomb Corporation, (NYSE/TSX: BLCO) (“Bausch + Lomb” or
the “Company”, “we” or “our”), a leading global eye health company
dedicated to helping people see better to live better, today
announced its fourth-quarter and full-year 2022 financial
results.
“Bausch + Lomb delivered another year of strong performance in
2022, growing the business organically1,2 at a mid-single-digit
rate. Additionally, the fourth quarter marked our seventh
consecutive quarter of organic growth1,2, with all three segments
growing organically1,2,” said Joseph C. Papa, CEO, Bausch + Lomb.
“Substantial progress was made in 2022 to complete our full
separation from Bausch Health, and due to the dedication and
unwavering focus of our employees, I am confident Bausch + Lomb is
well-positioned for success as a stand-alone pure-play eye health
company.”
“I’m very excited for the future of Bausch + Lomb with Brent
Saunders as the incoming CEO and chair of the Board of Directors. I
have known Brent for a long time, and with his long and esteemed
track record in the health care industry, he has the right skills
and experience to lead Bausch + Lomb at this critical time in our
Company’s history,” continued Mr. Papa.
Brent Saunders Will Serve as CEO and Chair of the Board of
Directors, Effective March 6, 2023
On Feb. 15, 2023, the Company announced the appointment of Brent
Saunders as CEO and chair of the Board of Directors (“Board”),
effective March 6, 2023. Concurrent with this appointment, and as
previously announced, Joseph C. Papa will step down from his roles
as CEO and director. Additionally, effective upon Mr. Saunders’
appointment as chair of the Board, Thomas W. Ross, Sr. will become
the Lead Independent Director of the Board. To facilitate an
orderly transition, Mr. Saunders joined Bausch + Lomb on Feb. 16,
2023, in an advisory capacity, where he is working closely with Mr.
Papa.
Select Company and Pipeline Highlights
- Launched and introduced multiple products across our core
segments, including:
- XIPERE®3 (triamcinolone acetonide injectable suspension), a
therapy that uses the suprachoroidal space to treat patients
suffering from macular edema associated with uveitis, in the United
States; XIPERE® has also been filed for regulatory approval in
Canada
- Biotrue® Hydration Plus Multi-Purpose Solution in the United
States
- Revive™ custom soft contact lenses in the United States
- Enhanced Ocuvite® Adult 50+ eye vitamins with 30 micrograms of
vitamin D in the United States
- Project Watson™ health care products for dogs in the United
States
- PreserVision® AREDS 2 Formula mini soft gels with OCUSorb™ in
the United States
- The U.S. Food and Drug Administration (FDA) accepted the New
Drug Application for NOV034 (perfluorohexyloctane), an
investigational treatment with a proposed indication of treating
the signs and symptoms of dry eye disease associated with Meibomian
gland dysfunction
- Results from the first of two pivotal Phase 3 trials were
published in Ophthalmology
- Received 510(k) clearance from the FDA for Biotrue® Hydration
Boost Contact Lens Rehydrating Drops
- Enrolled first patient in a study evaluating the safety and
efficacy of the Technolas® TENEO™ excimer laser in the United
States for laser-assisted in situ keratomileusis (LASIK) vision
correction surgery for hyperopia with astigmatism5
- Completed six business development transactions since the
Company’s initial public offering (“IPO”) in May 2022 to enhance
our pipeline and commercial offerings, including, but not limited
to:
- Acquired AcuFocus, Inc., whose IC-8® Apthera™
intraocular lens (“IOL”) was approved by the FDA as the first and
only small aperture non-toric extended depth of focus IOL for
certain cataract patients who have as much as 1.5 diopters of
corneal astigmatism and wish to address presbyopia at the same
time
- Entered into strategic agreements with Sanoculis designed to
address unmet needs in glaucoma, including an equity investment in
Sanoculis, an exclusive European distribution agreement for
Sanoculis’ Minimally Invasive Micro Sclerostomy (“MIMS®”), which is
an innovative minimally invasive surgical procedure for the
treatment of glaucoma, and an option agreement to purchase all of
the assets of Sanoculis
- Entered into an exclusive distribution agreement with Alfa
Instruments s.r.l., under which Bausch + Lomb is distributing and
commercializing Alfa Instruments’ line of surgical intraocular
dyes, Vitreocare, globally with the exception of Italy, where Alfa
Instruments is based
- Continued geo-expansion for several products, including:
- Bausch + Lomb INFUSE®/ULTRA® ONE DAY daily disposable silicone
hydrogel contact lenses, which are now available in approximately
25 countries
- LUMIFY® (brimonidine tartrate ophthalmic solution 0.025%),
which is now approved in 6 countries. LUMIFY® was successfully
launched in Canada in 2022, and the Company recently acquired the
rights to market LUMIFY® in 18 additional countries
- VYZULTA® (latanoprostene bunod ophthalmic solution), 0.024%,
which has launched in 15 countries
Fourth-Quarter and Full-Year 2022 Revenue Performance
Total reported revenues were $996 million for the fourth quarter
of 2022, as compared to $1.001 billion in the fourth quarter of
2021, a decrease of $5 million. Excluding the unfavorable impact of
foreign exchange of $54 million and the impact of divestitures and
discontinuations of $3 million, revenue increased organically1,2 by
approximately 5% compared to the fourth quarter of 2021.
Total reported revenues were $3.768 billion for the full year of
2022, as compared to $3.765 billion in the full year of 2021, an
increase of $3 million. Excluding the unfavorable impact of foreign
exchange of $184 million and the impact of divestitures and
discontinuations of $10 million, revenue increased organically1,2
by approximately 5% compared to 2021.
Revenues by segment were as follows:
Fourth-Quarter 2022
(in millions)
Three Months Ended
Dec. 31
Reported
Change
Reported
Change
Change at
Constant
Currency1,6
Organic
Change1,2
2022
2021
(non-GAAP)
(non-GAAP)
Total Bausch + Lomb
Revenues
$996
$1,001
($5)
0%
5%
5%
Vision Care
$626
$626
$0
0%
5%
5%
Surgical
$188
$198
($10)
(5%)
2%
4%
Ophthalmic Pharmaceuticals
$182
$177
$5
3%
7%
7%
Full-Year 2022
(in millions)
Twelve Months Ended
Dec. 31
Reported
Change
Reported
Change
Change at
Constant
Currency1,6
Organic
Change1,2
2022
2021
(non-GAAP)
(non-GAAP)
Total Bausch + Lomb
Revenues
$3,768
$3,765
$3
0%
5%
5%
Vision Care
$2,373
$2,343
$30
1%
6%
6%
Surgical
$718
$718
$0
0%
6%
8%
Ophthalmic Pharmaceuticals
$677
$704
($27)
(4%)
0%
0%
Vision Care Segment
Vision Care segment revenues were $626 million for the fourth
quarter of 2022, which was in line with revenues for the fourth
quarter of 2021. Excluding the unfavorable impact of foreign
exchange of $32 million, segment revenues increased organically1,2
by approximately 5% compared to the fourth quarter of 2021,
primarily due to higher sales of Ocuvite® + PreserVision®, Bausch +
Lomb INFUSE®/ULTRA® ONE DAY daily disposable silicone hydrogel
contact lenses, LUMIFY® (brimonidine tartrate ophthalmic solution
0.025%) and the Artelac® franchise.
Vision Care segment revenues were $2.373 billion for the full
year of 2022, as compared to $2.343 billion for the full year of
2021, an increase of $30 million, or 1%. Excluding the unfavorable
impact of foreign exchange of $114 million, segment revenues
increased organically1,2 by approximately 6% compared to the full
year of 2021, primarily due to higher sales of Ocuvite® +
PreserVision® and LUMIFY® (brimonidine tartrate ophthalmic solution
0.025%), as well as the ongoing launches of Bausch + Lomb
INFUSE®/ULTRA® ONE DAY daily disposable silicone hydrogel contact
lenses in markets around the world, partially offset by decreased
sales in China due to the impact of the COVID-19 pandemic.
Surgical Segment
Surgical segment revenues were $188 million for the fourth
quarter of 2022, as compared to $198 million for the fourth quarter
of 2021, a decrease of $10 million, or 5%. Excluding the
unfavorable impact of foreign exchange of $14 million and
divestitures and discontinuations of $3 million, segment revenues
increased organically1,2 by approximately 4% compared to the fourth
quarter of 2021, primarily due to increased sales of intraocular
lenses.
Surgical segment revenues were $718 million for the full year of
2022, which was in line with revenues for the full year of 2021.
Excluding the unfavorable impact of foreign exchange of $44 million
and divestitures and discontinuations of $10 million, segment
revenues increased organically1,2 by approximately 8% compared to
the full year of 2021, primarily due to increased sales of
consumables and intraocular lenses.
Ophthalmic Pharmaceuticals Segment
Ophthalmic Pharmaceuticals segment revenues were $182 million
for the fourth quarter of 2022, as compared to $177 million for the
fourth quarter of 2021, an increase of $5 million, or 3%. Excluding
the unfavorable impact of foreign exchange of $8 million, segment
revenues increased organically1,2 by approximately 7% compared to
the fourth quarter of 2021, primarily due to higher revenues in the
U.S. portfolio, including VYZULTA® (latanoprostene bunod ophthalmic
solution), 0.024%.
Ophthalmic Pharmaceuticals segment revenues were $677 million
for the full year of 2022, as compared to $704 million for the full
year of 2021, a decrease of $27 million, or 4%. Excluding the
unfavorable impact of foreign exchange of $26 million, segment
revenues were flat organically1,2 compared to the full year of
2021, primarily due to continued loss of exclusivity in the U.S.
portfolio, partially offset by higher global revenues of VYZULTA®
(latanoprostene bunod ophthalmic solution), 0.024%, which grew 31%
compared to the full year of 2021.
Operating Results
Operating results in the fourth quarter and full year of 2021
were prepared on a carve-out basis and do not include expenses we
are now incurring as a publicly traded company, such as interest
expense and certain standalone public company costs.
Operating income was $51 million for the fourth quarter of 2022,
as compared to $92 million for the fourth quarter of 2021, a
decrease of $41 million. Operating income was $207 million for the
full year of 2022, as compared to $329 million for the full year of
2021, a decrease of $122 million.
For both the fourth quarter and full year of 2022, the changes
in operating income were largely driven by an increase in Cost of
goods sold (COGS) due to the ramp-up of new manufacturing lines for
Bausch + Lomb INFUSE®/ULTRA® ONE DAY daily disposable silicone
hydrogel contact lenses and Selling, general and administrative
(SG&A) expenses, due to restructuring, integration and
transformation costs, as well as separation-related costs and
dis-synergy costs associated with the Company becoming a
stand-alone entity following its IPO in May 2022. Additionally,
both COGS and SG&A expenses faced inflationary headwinds
throughout the year, and the Company made incremental investments
in R&D to expedite portfolio management. The Company is
continuing to maintain a disciplined approach to cost management
and to leverage its infrastructure.
Net Income/Loss
Net income attributable to Bausch + Lomb Corporation in the
fourth quarter and full year of 2021 was prepared on a carve-out
basis and does not include expenses we are now incurring as a
publicly traded company, such as interest expense and certain
standalone public company costs.
Net loss attributable to Bausch + Lomb Corporation for the
fourth quarter of 2022 was $1 million, as compared to a net income
attributable to Bausch + Lomb Corporation of $51 million for the
fourth quarter of 2021, a decrease of $52 million. Net income
attributable to Bausch + Lomb Corporation for the full year of 2022
was $6 million, as compared to a net income attributable to Bausch
+ Lomb Corporation of $182 million for the full year of 2021, a
decrease of $176 million.
For both the fourth quarter and full year of 2022, the changes
were largely due to an increase in interest expense and the
decrease in operating results noted above, partially offset by a
favorable change in the Provision for income taxes.
Adjusted net income (non-GAAP)1 for the fourth quarter of 2022
was $80 million, as compared to $121 million for the fourth quarter
of 2021, a decrease of $41 million.
Adjusted net income (non-GAAP)1 for the full year of 2022 was
$375 million, as compared to $454 million for the full year of
2021, a decrease of $79 million.
Cash Flow from Operations
Cash flow from operations in the fourth quarter and full year of
2021 was prepared on a carve-out basis and does not include
expenses we are now incurring as a publicly traded company, such as
interest expense and certain standalone public company costs.
Cash flow from operations for the fourth quarter of 2022 was
$159 million, as compared to $162 million for the fourth quarter of
2021, a decrease of $3 million.
Cash flow from operations for the full year of 2022 was $345
million, as compared to $873 million for the full year of 2021, a
decrease of $528 million. Cash flow from operations was negatively
impacted in the full year of 2022 by the decrease in our operating
results noted above, change in deferred income taxes and the change
in our operating assets and liabilities driven by a strategic build
in inventory.
Earnings Per Share
GAAP Earnings Per Share (“EPS”) and Adjusted EPS (non-GAAP)1 for
the fourth quarter and full year of 2021 has been calculated on a
pro forma basis after giving effect to the Company’s IPO.
GAAP EPS Basic and Diluted attributable to Bausch + Lomb
Corporation for the fourth quarter of 2022 was $0.00, as compared
to $0.15 for the fourth quarter of 2021. Adjusted EPS (non-GAAP)1
for the fourth quarter of 2022 was $0.23, as compared to $0.35 for
the fourth quarter of 2021.
GAAP EPS Basic and Diluted attributable to Bausch + Lomb
Corporation for the full year of 2022 was $0.02, as compared to
$0.52 for the full year of 2021. Adjusted EPS (non-GAAP)1 for the
full year of 2022 was $1.07, as compared to $1.30 for the full year
of 2021.
Adjusted EBITDA (non-GAAP)1
Adjusted EBITDA (non-GAAP)1 in the fourth quarter and full year
of 2021 was prepared on a carve-out basis and does not include
certain standalone public company costs.
Adjusted EBITDA (non-GAAP)1 was $181 million for the fourth
quarter of 2022, as compared to $216 million for the fourth quarter
of 2021, a decrease of $35 million, primarily due to foreign
exchange headwinds and R&D investment, partially offset by
organic revenue growth1,2 across all segments.
Adjusted EBITDA (non-GAAP)1 was $720 million for the full year
of 2022, as compared to $821 million for the full year of 2021, a
decrease of $101 million, primarily due to foreign exchange
headwinds, increases in COGS and SG&A driven by inflation and
dis-synergies, and R&D investment, as noted above, partially
offset by organic revenue growth1,2 in the Vision Care and Surgical
segments.
2023 Financial Outlook
Bausch + Lomb will provide expectations on its first-quarter
2023 outlook during the call today at 8 a.m. ET; however, given the
appointment of Mr. Saunders as CEO and chair of the Board,
effective March 6, 2023, the Company will provide full guidance for
2023 when it provides first-quarter 2023 results.
Balance Sheet Highlights
- Bausch + Lomb’s cash, cash equivalents and restricted cash were
$380 million at Dec. 31, 2022
- Basic weighted average shares outstanding for the fourth
quarter of 2022 were 350 million, and diluted weighted average
shares outstanding for the fourth quarter of 2022 were 350.5
million
- Basic weighted average shares outstanding for the full year of
2022 were 350 million, and diluted weighted average shares
outstanding for the full year of 2022 were 350.2 million
Conference Call Details
Date:
Wednesday, Feb. 22, 2023
Time:
8:00 a.m. ET
Webcast:
https://www.webcaster4.com/Webcast/Page/2883/47443
Participant Event Dial-in:
+1 (888) 506-0062 (North
America)
+1 (973) 528-0011
(International)
Participant Access Code:
681651
Replay Dial-in:
+1 (877) 481-4010 (North
America)
+1 (919) 882-2331
(International)
Replay Passcode:
47443 (replay available until
March 8, 2023)
About Bausch + Lomb
Bausch + Lomb is dedicated to protecting and enhancing the gift
of sight for millions of people around the world – from the moment
of birth through every phase of life. Its comprehensive portfolio
of more than 400 products includes contact lenses, lens care
products, eye care products, ophthalmic pharmaceuticals,
over-the-counter products and ophthalmic surgical devices and
instruments. Founded in 1853, Bausch + Lomb has a significant
global research and development, manufacturing and commercial
footprint with approximately 13,000 employees and a presence in
nearly 100 countries. Bausch + Lomb is headquartered in Vaughan,
Ontario with corporate offices in Bridgewater, New Jersey. For more
information, visit www.bausch.com and connect with us on Twitter,
LinkedIn, Facebook and Instagram.
Forward-looking Statements
This news release contains forward-looking information and
statements within the meaning of applicable securities laws
(collectively, “forward-looking statements”), which may generally
be identified by the use of the words “anticipates,” “hopes,”
“expects,” “intends,” “plans,” “should,” “could,” “would,” “may,”
“will,” “believes,” “estimates,” “potential,” “target,” or
“continue” and positive and negative 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. Forward-looking statements
include statements regarding Bausch + Lomb’s future prospects and
performance, including the anticipated spinoff of Bausch + Lomb
from Bausch Health Companies Inc. (“BHC”) and the timing thereof,
details of the Company’s product pipeline and the timing on which
the Company will provide its 2023 guidance. These forward-looking
statements 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 the forward-looking statements.
These risks and uncertainties include, but are not limited to, the
risks and uncertainties discussed in Bausch + Lomb’s filings with
the U.S. Securities and Exchange Commission (“SEC”) and the
Canadian Securities Administrators (the “CSA”) (including the
Company’s Annual Report on Form 10-K for the year ended Dec. 31,
2022 to be filed with the SEC on Feb. 22, 2023 and its most recent
quarterly filings), which factors are incorporated herein by
reference. They also include, but are not limited to, risks and
uncertainties relating to the proposed plan to spin off or separate
Bausch + Lomb from BHC, including the expected benefits and costs
of the spinoff transaction, the expected timing of completion of
the spinoff transaction and its terms (including the expectation
that the spinoff transaction will be completed following the
achievement of targeted net leverage ratios, subject to market
conditions and receipt of applicable shareholder and other
necessary approvals), the ability to complete the spinoff
transaction considering the various conditions to the completion of
the spinoff transaction (some of which are outside the Company’s
and BHC’s control, including conditions related to regulatory
matters and receipt of applicable shareholder and other approvals),
the impact of any potential sales of the Company’s common shares by
BHC, that market or other conditions are no longer favorable to
completing the transaction, that applicable shareholder, stock
exchange, regulatory or other approval is not obtained on the terms
or timelines anticipated or at all, business disruption during the
pendency of or following the spinoff transaction, diversion of
management time on spinoff transaction-related issues, retention of
existing management team members, the reaction of customers and
other parties to the spinoff transaction, the qualification of the
spinoff transaction as a tax-free transaction for Canadian and/or
U.S. federal income tax purposes (including whether or not an
advance ruling from the Canada Revenue Agency and/or the Internal
Revenue Service will be sought or obtained), the ability of the
Company and BHC to satisfy the conditions required to maintain the
tax-free status of the spinoff transaction (some of which are
beyond their control), other potential tax or other liabilities
that may arise as a result of the spinoff transaction, the
potential dis-synergy costs resulting from the spinoff transaction,
the impact of the spinoff transaction on relationships with
customers, suppliers, employees and other business counterparties,
general economic conditions, conditions in the markets the Company
is engaged in, behavior of customers, suppliers and competitors,
technological developments and legal and regulatory rules affecting
the Company’s business. In particular, the Company can offer no
assurance that any spinoff transaction will occur at all, or that
any spinoff transaction will occur on the terms and timelines
anticipated by the Company and BHC. They also include, but are not
limited to, risks and uncertainties caused by or relating to the
evolving COVID-19 pandemic, including the potential effects and
economic and future impact of that pandemic (or resurgence thereof)
and the reaction to it (including as it relates to the
reinstitution of any lockdowns or other restrictions), all of which
are highly uncertain and cannot be predicted, and which may have a
material adverse impact on the Company, including but not limited
to its supply chain, third-party suppliers, project development
timelines, employee base, liquidity, stock price, financial
condition and costs (which may increase) and revenue and margins
(both of which may decrease). Finally, they also include, but are
not limited to, risks and uncertainties caused by or relating to a
potential recession and other adverse economic conditions (such as
inflation and slower growth), which could adversely impact our
revenues, expenses and resulting margins and economic factors over
which we have no control, including inflationary pressures as a
result of historically high domestic and global inflation and
otherwise, interest rates, foreign currency rates, and the
positional effect of such factors on revenues, expenses and
resulting margins. In addition, certain material factors and
assumptions have been applied in making these forward-looking
statements, including, without limitation, 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. Management has also made certain
assumptions in assessing the anticipated impacts of the COVID-19
pandemic on the Company and its results of operations and financial
conditions, including: that there will be no material restrictions
on access to health care products and services resulting from a
possible resurgence of the virus and variant and subvariant strains
thereof on a global basis in 2023; there will be increased
availability and use of effective vaccines; that the strict social
restrictions in the first half of 2020 will not be materially
re-enacted in the event of a material resurgence of the virus and
variant and subvariant strains thereof; that there will be an
ongoing, gradual global recovery as the macroeconomic and health
care impacts of the COVID-19 pandemic diminish over time; that the
largest impact to the Company’s businesses were seen in the second
quarter of 2020; that, while our revenues have returned to
pre-pandemic levels for many of our businesses and geographies, the
rates of recovery for each business will vary by geography with
some regions, including China, continuing to experience negative
impacts of the COVID-19 pandemic on our business in those regions;
and no major interruptions in the Company’s supply chain and
distribution channels. If any of these assumptions regarding the
impacts of the COVID-19 pandemic are incorrect, our actual results
could differ materially from those described in these
forward-looking statements.
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 + Lomb 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 and ratios. Management
uses these non-GAAP measures and ratios 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 and ratios are useful to investors in their
assessment of our operating performance and the valuation of the
Company. In addition, these non-GAAP measures and ratios 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.
These measures and ratios do not have any standardized meaning
under GAAP and other companies may use similarly titled non-GAAP
financial measures and ratios that are calculated differently from
the way we calculate such measures and ratios. Accordingly, our
non-GAAP financial measures and ratios may not be comparable to
similar non-GAAP measures and ratios of other companies. We caution
investors not to place undue reliance on such non-GAAP measures and
ratios, but instead to consider them with the most directly
comparable GAAP measures and ratios. Non-GAAP financial measures
and ratios 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 financial
measures and ratios to the most directly comparable financial
measures and ratios calculated and presented in accordance with
GAAP are shown in the tables below.
Specific Non-GAAP Measures
EBITDA and Adjusted EBITDA
(non-GAAP)
EBITDA (non-GAAP) is Net income (loss) attributable to Bausch +
Lomb Corporation (its most directly comparable U.S. GAAP financial
measure) adjusted for interest, income taxes, depreciation and
amortization. Adjusted EBITDA (non-GAAP) is EBITDA (non-GAAP)
further adjusted for the items 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.
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) is Net income (loss) attributable to
Bausch + Lomb Corporation (its most directly comparable U.S. GAAP
financial measure) adjusted for interest expense, net, (benefit
from) provision for income taxes, depreciation and amortization and
further adjusted for the following items:
- Asset impairments: The Company has
excluded the impact of impairments of finite-lived and
indefinite-lived intangible assets 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 impairments of intangible assets from measuring
the performance of the Company and its business, the Company
believes that it is important for investors to understand that
intangible assets contribute to revenue generation.
- Restructuring, integration and
transformation 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. 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.
Additionally, with the recent completion of the Bausch + Lomb IPO,
as the Company prepares for post-Separation operations, the Company
is launching certain transformation initiatives that will result in
certain changes to and investment in its organizational structure
and operations. These transformation initiatives arise outside of
the ordinary course of continuing operations and, as is the case
with the Company’s restructuring efforts, costs associated with
these transformation initiatives are expected to fluctuate between
periods in amount, size and timing. These
out-of-the-ordinary-course charges include third-party advisory
costs, as well as certain severance-related costs (including the
severance costs associated with the departure of the Company’s
current CEO). Investors should understand that the outcome of these
transformation initiatives may result in future restructuring
actions and certain of these charges could recur. 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.
- Acquisition-related costs and adjustments
excluding amortization of intangible assets: The Company
excludes 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 are not consistent and are significantly impacted
by the timing and size of the Company’s acquisitions, as well as
the nature of the agreed-upon consideration.
- Share-based compensation: The
Company excludes 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.
- Separation costs and separation-related
costs: The Company has excluded certain costs incurred in
connection with activities taken to: (i) separate the Bausch + Lomb
business from the remainder of BHC and (ii) register the Bausch +
Lomb business as an independent publicly traded entity. Separation
costs are incremental costs directly related to effectuating the
separation of the Bausch + Lomb business from the remainder of BHC
and include, but are not limited to, legal, audit and advisory
fees, talent acquisition costs and costs associated with
establishing a new Board of Directors and Audit Committee.
Separation-related costs are incremental costs indirectly related
to the separation of the Bausch + Lomb business from the remainder
of BHC and include, but are not limited to, IT infrastructure and
software licensing costs, rebranding costs and costs associated
with facility relocation and/or modification. As these costs arise
from events outside of the ordinary course of continuing
operations, 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.
- Other Non-GAAP adjustments: The
Company also excludes certain other amounts, including IT
infrastructure investment, litigation and other matters,
gain/(loss) on sales of assets and certain other amounts that are
the result of other, non-comparable events to measure operating
performance if and when present in the periods presented. 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 routine
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 routine operating expenses.
The Company has also excluded certain other costs, including
settlement costs associated with the conversion of a portion of the
Company’s defined benefit plan in Ireland to a defined contribution
plan. The Company excluded these costs as this event is outside of
the ordinary course of continuing operations and is infrequent in
nature. 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.
Prior to 2022, in calculating Adjusted EBITDA, the Company had
excluded expenses associated with acquired in-process research and
development costs (“IPR&D”), as these amounts are inconsistent
in amount and frequency and are significantly impacted by the
timing, size and nature of acquisitions. Beginning in 2022, the
Company no longer excludes acquired IPR&D in its calculation of
Adjusted EBITDA. The Company is making this change to align with
evolving practice in this regard. The Company is making this change
for 2022 periods and onwards and has not made this change for
periods prior to 2022. The Company believes these costs are not
material for the periods presented.
Adjusted Net Income (non-GAAP)
Adjusted net income (non-GAAP) is net income (loss) attributable
to Bausch + Lomb Corporation (its most directly comparable GAAP
financial measure) adjusted for asset impairments, restructuring,
integration and transformation costs, acquisition-related
contingent consideration, separation costs and separation-related
costs and other non-GAAP adjustments, as these adjustments are
described above, and further adjusted for amortization of
intangible assets, as described below:
- 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 the 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.
Adjusted net income (non-GAAP) excludes the impact of these
certain items that may obscure trends in the Company’s underlying
performance. Management uses Adjusted net income (non-GAAP) for
strategic decision making, forecasting future results and
evaluating current performance. By disclosing this non-GAAP
measure, it is management’s intention to provide investors with a
meaningful, supplemental comparison of the Company’s operating
results and trends for the periods presented. Management believes
that this measure is also useful to investors as such measure
allows investors to evaluate the Company’s performance using the
same tools that management uses to evaluate past performance and
prospects for future performance. Accordingly, the Company believes
that Adjusted net income (non-GAAP) is 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).
As with Adjusted EBITDA, prior to 2022, in calculating Adjusted
Net Income, the Company had excluded expenses associated with
acquired IPR&D. However, for the same reasons indicated above,
commencing in 2022, the Company no longer excludes acquired
IPR&D in its calculation of Adjusted Net Income. Reference is
made to the description above for further details on this
change.
Organic Growth/Change and Organic
Revenue
Organic growth/change, a non-GAAP ratio, 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 a 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. Similarly, organic revenue, a non-GAAP measure, is
GAAP revenue (its most directly comparable GAAP financial measure)
adjusted for these same items. Organic revenue growth/change 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 growth/change and organic revenue to assess
the performance of its 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
they provide a supplemental period-to-period comparison.
Organic growth/change and organic revenue reflect 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 of 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 revenue (non-GAAP) growth/change 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 and organic growth/change exclude 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 and organic growth/change exclude from the
prior 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 2022 reported
amounts adjusted to exclude currency impact, calculated using 2021
monthly average exchange rates, to the actual 2021 reported
amounts.
Adjusted EPS (non-GAAP)
Adjusted earnings per share or Adjusted EPS (non-GAAP) is
calculated as Diluted income per share attributable to Bausch +
Lomb Corporation (“GAAP EPS”) (its most directly comparable GAAP
financial measure), adjusted for the per diluted share impact of
each adjustment made to reconcile Net income (loss) attributable to
Bausch + Lomb Corporation to Adjusted net income (non-GAAP) as
discussed above. Like Adjusted net income (non-GAAP), Adjusted EPS
(non-GAAP) excludes the impact of certain items that may obscure
trends in the Company’s underlying performance on a per share
basis. By disclosing this non-GAAP measure, it is management’s
intention to provide investors with a meaningful, supplemental
comparison of the Company’s results and trends for the periods
presented on a diluted share basis. Accordingly, the Company
believes that Adjusted EPS (non-GAAP) is useful to investors in
their assessment of the Company’s operating performance, the
valuation of the Company and an investor’s return on investment. It
is also noted that, for the periods presented, our GAAP EPS was
significantly lower than our Adjusted EPS (non-GAAP).
As with Adjusted Net Income, prior to 2022, in calculating
Adjusted EPS, the Company had excluded expenses associated with
acquired IPR&D. However, for the same reasons indicated above,
commencing in 2022, the Company no longer excludes acquired
IPR&D in its calculation of Adjusted EPS. Reference is made to
the description above for further details on this change.
_____________________________
1 This is a non-GAAP measure or a
non-GAAP ratio. For further information on non-GAAP measures and
non-GAAP ratios, please refer to the “Non-GAAP Information” section
of this news release. Please also refer to tables at the end of
this news release for a reconciliation of this and other non-GAAP
measures to the most directly comparable GAAP measure.
2 Organic growth/change, a
non-GAAP ratio, is defined as a change on a period-over-period
basis in reported revenues on a constant currency basis (if
applicable) excluding the impact of recent acquisitions,
divestitures and discontinuations.
3 In 2019, the Company acquired
an exclusive license from Clearside Biomedical, Inc. for the
commercialization and development of XIPERE® in the United States
and Canada.
4 In 2019, the Company acquired
an exclusive license from Novaliq GmbH for the commercialization
and development of NOV03 in the United States and Canada.
5 The Technolas® TENEO™ excimer
laser is currently being sold outside of the United States as
Technolas® TENEO™ laser 317 (model 2). The device is for
investigational use only and is not approved in the United States
or its territories.
6 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 ratio, is determined by comparing 2022 reported amounts
adjusted to exclude currency impact, calculated using 2021 monthly
average exchange rates, to the actual 2021 reported amounts.
© 2023 Bausch & Lomb Incorporated or its affiliates.
FINANCIAL TABLES FOLLOW
Bausch + Lomb
Corporation
Table 1
Consolidated Statements of
Operations
For the Three and Twelve
Months Ended December 31, 2022 and 2021
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions, except per share
amounts)
2022
2021
2022
2021
Revenues
Product sales
$
991
$
994
$
3,746
$
3,737
Other revenues
5
7
22
28
996
1,001
3,768
3,765
Expenses
Cost of goods sold (excluding
amortization and impairments of intangible assets)
418
402
1,511
1,458
Cost of other revenues
2
1
8
9
Selling, general and
administrative
386
365
1,478
1,389
Research and development
78
70
307
271
Amortization of intangible
assets
56
67
244
292
Other expense, net
5
4
13
17
945
909
3,561
3,436
Operating income
51
92
207
329
Interest income
3
—
6
—
Interest expense
(47
)
—
(146
)
—
Foreign exchange and other
(9
)
(6
)
6
(11
)
(Loss) income before provision
for income taxes
(2
)
86
73
318
Benefit (provision) for income
taxes
2
(32
)
(58
)
(125
)
Net income
—
54
15
193
Net income attributable to
noncontrolling interest
(1
)
(3
)
(9
)
(11
)
Net (loss) income attributable
to Bausch + Lomb Corporation
$
(1
)
$
51
$
6
$
182
Basic and diluted (loss)
income per share attributable to Bausch + Lomb Corporation
$
—
$
0.15
$
0.02
$
0.52
Basic and diluted
weighted-average common shares
350
350
350
350
Bausch + Lomb
Corporation
Table 2
Reconciliation of GAAP Net
(Loss) Income and Diluted (Loss) Income per Share Attributable to
Bausch + Lomb Corporation to Adjusted Net Income (non-GAAP) and
Adjusted Earnings Per Share (non-GAAP)
For the Three and Twelve
Months Ended December 31, 2022 and 2021
(unaudited)
Three Months Ended December
31,
2022
2021
(in millions, except per share
amounts)
Income
(Expense)
Earnings
per Share
Impact (b)
Income
(Expense)
Earnings
per Share
Impact (b)
Net (loss) income and Diluted (loss)
income per share attributable to Bausch + Lomb Corporation
$
(1
)
$
—
$
51
$
0.15
Non-GAAP adjustments: (a)
Amortization of intangible assets
56
0.16
67
0.19
Asset impairments
—
—
1
—
Restructuring, integration and
transformation costs
21
0.06
4
0.01
Acquired in-process research and
development costs (c)
—
—
4
0.01
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
1
—
—
—
Separation costs and separation-related
costs
7
0.02
1
—
Legal and other professional fees
1
—
(1
)
—
Other
—
—
7
0.02
Tax effect of non-GAAP adjustments
(5
)
(0.01
)
(13
)
(0.03
)
Total non-GAAP adjustments
81
0.23
70
0.20
Adjusted net income (non-GAAP) and
Adjusted earnings per share (non-GAAP)
$
80
$
0.23
$
121
$
0.35
Twelve Months Ended December
31,
2022
2021
(in millions, except per share
amounts)
Income
(Expense)
Earnings
per Share
Impact (b)
Income
(Expense)
Earnings
per Share
Impact (b)
Net income and Diluted income per share
attributable to Bausch + Lomb Corporation
$
6
$
0.02
$
182
$
0.52
Non-GAAP adjustments: (a)
Amortization of intangible assets
244
0.70
292
0.83
Asset impairments
1
—
12
0.03
Restructuring, integration and
transformation costs
36
0.10
11
0.03
Acquired in-process research and
development costs (c)
—
—
5
0.01
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
(4
)
(0.01
)
—
—
Separation costs and separation-related
costs
35
0.10
3
0.01
Legal and other professional fees
1
—
(1
)
—
Other
6
0.02
7
0.02
Tax effect of non-GAAP adjustments
50
0.14
(57
)
(0.15
)
Total non-GAAP adjustments
369
1.05
272
0.78
Adjusted net income (non-GAAP) and
Adjusted earnings per share (non-GAAP)
$
375
$
1.07
$
454
$
1.30
(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.
(b) On April 28, 2022, Bausch +
Lomb effected a share consolidation as a result of which it had
350,000,000 issued and outstanding common shares. These common
shares are treated as issued and outstanding at January 1, 2021 for
purposes of calculating Basic and diluted (loss) income per share
attributable to Bausch + Lomb Corporation.
(c) Prior to 2022, in calculating
Adjusted Net Income and Adjusted EPS, the Company had excluded
expenses associated with acquired in-process research and
development costs (“IPR&D”). Beginning in 2022, the Company no
longer excludes acquired IPR&D in its calculation of Adjusted
Net Income or Adjusted EPS. The Company is making this change to
align with evolving practice in this regard. The Company is making
this change for 2022 periods and onwards and has not made this
change for periods prior to 2022. The Company believes these costs
are not material for the periods presented. In particular, there
was no acquired IPR&D in the fourth quarter of 2022 and there
was less than $1 million in aggregate acquired IPR&D for the
twelve months ended December 31, 2022. For 2021, there was $4
million of acquired IPR&D in the fourth quarter of 2021 and
there was $5 million in aggregate acquired IPR&D for the twelve
months ended December 31, 2021.
Bausch + Lomb
Corporation
Table 2a
Reconciliation of GAAP to
Non-GAAP Financial Information
For the Three and Twelve
Months Ended December 31, 2022 and 2021
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2022
2021
2022
2021
Selling, general and administrative
reconciliation:
GAAP Selling, general and
administrative
$
386
$
365
$
1,478
$
1,389
Separation-related costs (a)
(5
)
(1
)
(26
)
(3
)
Transformation costs (b)
(20
)
(3
)
(31
)
(9
)
Adjusted selling, general and
administrative (non-GAAP)
$
361
$
361
$
1,421
$
1,377
Amortization of intangible assets
reconciliation:
GAAP Amortization of intangible assets
$
56
$
67
$
244
$
292
Amortization of intangible assets (c)
(56
)
(67
)
(244
)
(292
)
Adjusted amortization of intangible assets
(non-GAAP)
$
—
$
—
$
—
$
—
Other expense, net
reconciliation:
GAAP Other expense, net
$
5
$
4
$
13
$
17
Legal and other professional fees (d)
(1
)
1
(1
)
1
Restructuring and integration costs
(b)
(1
)
(1
)
(5
)
(2
)
Asset impairments (e)
—
(1
)
(1
)
(12
)
Separation costs (a)
(2
)
—
(9
)
—
Acquisition-related costs (f)
(1
)
—
(1
)
—
Acquired in-process research and
development costs (g)
—
(4
)
—
(5
)
Acquisition-related contingent
consideration (f)
—
—
5
—
Adjusted other expense, net (non-GAAP)
$
—
$
(1
)
$
1
$
(1
)
Foreign exchange and other
reconciliation:
GAAP Foreign exchange and other
$
(9
)
$
(6
)
$
6
$
(11
)
Other (h)
—
7
6
7
Adjusted foreign exchange and other
(non-GAAP)
$
(9
)
$
1
$
12
$
(4
)
Provision for income taxes
reconciliation:
GAAP benefit (provision) for income
taxes
$
2
$
(32
)
$
(58
)
$
(125
)
Tax effect of non-GAAP adjustments (i)
(5
)
(13
)
50
(57
)
Adjusted provision for income taxes
(non-GAAP)
$
(3
)
$
(45
)
$
(8
)
$
(182
)
(a) Represents the two components
of the non-GAAP adjustment of “Separation and separation-related
costs” (see Table 2).
(b) Represents the two components
of the non-GAAP adjustment of “Restructuring, integration and
transformation costs” (see Table 2).
(c) Represents the sole component
of the non-GAAP adjustment of “Amortization of intangible assets”
(see Table 2).
(d) Represents the sole component
of the non-GAAP adjustment of “Legal and other professional fees”
(see Table 2).
(e) Represents the sole component
of the non-GAAP adjustment of “Asset impairments” (see Table
2).
(f) Represents the two components
of the non-GAAP adjustment of “Acquisition-related costs and
adjustments (excluding amortization of intangible assets)” (see
Table 2).
(g) Represents the sole component
of the non-GAAP adjustment of “Acquired in-process research and
development costs” (see Table 2). Beginning in 2022, the Company no
longer excludes Acquired in-process research and development costs
in its calculation of Adjusted other expense, net. See Footnote (c)
to Table 2 for further information.
(h) Represents the sole component
of the non-GAAP adjustment of “Other” (see Table 2).
(i) Represents the sole component
of the non-GAAP adjustment of “Tax effect of non-GAAP adjustments”
(see Table 2).
Bausch + Lomb
Corporation
Table 2b
Reconciliation of GAAP Net
(Loss) Income to Adjusted EBITDA (non-GAAP)
For the Three and Twelve
Months Ended December 31, 2022 and 2021
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2022
2021
2022
2021
Net (loss) income attributable to
Bausch + Lomb Corporation
$
(1
)
$
51
$
6
$
182
Interest expense, net
44
—
140
—
Provision for income taxes
(2
)
32
58
125
Depreciation and amortization of
intangible assets
93
100
379
415
EBITDA
134
183
583
722
Adjustments:
Asset impairments
—
1
1
12
Restructuring, integration and
transformation costs
21
4
36
11
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
1
—
(4
)
—
Share-based compensation
17
17
62
62
Separation and Separation-related
costs
7
1
35
3
Other non-GAAP adjustments:
Legal and other professional fees
1
(1
)
1
(1
)
Acquired in-process research and
development costs (a)
—
4
—
5
Other
—
7
6
7
Adjusted EBITDA (non-GAAP)
$
181
$
216
$
720
$
821
(a) Prior to 2022, in calculating
Adjusted EBITDA, the Company had excluded expenses associated with
acquired in-process research and development costs (“IPR&D”).
Beginning in 2022, the Company no longer excludes acquired
IPR&D in its calculation of Adjusted EBITDA. The Company is
making this change to align with evolving practice in this regard.
The Company is making this change for 2022 periods and onwards and
has not made this change for periods prior to 2022. The Company
believes these costs are not material for the periods presented. In
particular, there was no acquired IPR&D in the fourth quarter
of 2022 and there was less than $1 million in aggregate acquired
IPR&D for the twelve months ended December 31, 2022. For 2021,
there was $4 million of acquired IPR&D in the fourth quarter of
2021 and there was $5 million in aggregate acquired IPR&D for
the twelve months ended December 31, 2021.
Bausch + Lomb
Corporation
Table 3
Organic Revenue (non-GAAP) and
Organic Revenue Growth (non-GAAP) - by Segment
For the Three and Twelve
Months Ended December 31, 2022 and 2021
(unaudited)
Calculation of Organic Revenue
for the Three Months Ended
December 31, 2022
December 31, 2021
Change in
Revenue as
Reported
Change in
Organic Revenue
Revenue
as
Reported
Changes
in
Exchange
Rates (a)
Organic
Revenue
(Non-
GAAP) (b)
Revenue
as
Reported
Divestitures
and
Discontinuations
Organic
Revenue
(Non-
GAAP) (b)
(in millions)
Amount
Pct.
Amount
Pct.
Vision Care
$
626
$
32
$
658
$
626
$
—
$
626
$
—
—
%
$
32
5
%
Surgical
188
14
202
198
(3
)
195
(10
)
(5
)%
7
4
%
Ophthalmic Pharmaceuticals
182
8
190
177
—
177
5
3
%
13
7
%
Total revenues
$
996
$
54
$
1,050
$
1,001
$
(3
)
$
998
$
(5
)
—
%
$
52
5
%
Calculation of Organic Revenue
for the Twelve Months Ended
December 31, 2022
December 31, 2021
Change in
Revenue as
Reported
Change in
Organic Revenue
Revenue
as
Reported
Changes
in
Exchange
Rates (a)
Organic
Revenue
(Non-
GAAP) (b)
Revenue
as
Reported
Divestitures
and
Discontinuations
Organic
Revenue
(Non-
GAAP) (b)
(in millions)
Amount
Pct.
Amount
Pct.
Vision Care
$
2,373
$
114
$
2,487
$
2,343
$
—
$
2,343
$
30
1
%
$
144
6
%
Surgical
718
44
762
718
(10
)
708
—
—
%
54
8
%
Ophthalmic Pharmaceuticals
677
26
703
704
—
704
(27
)
(4
)%
(1
)
—
%
Total revenues
$
3,768
$
184
$
3,952
$
3,765
$
(10
)
$
3,755
$
3
—
%
$
197
5
%
(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
“Non-GAAP Information” section in the body of the news release to
which these tables are attached. Organic revenue (non-GAAP) for the
three and twelve months ended December 31, 2022 is calculated as
revenue as reported adjusted for the impact for changes in exchange
rates (previously defined in this news release). Organic revenue
(non-GAAP) for the three and twelve months ended December 31, 2021
is calculated as revenue as reported less revenues attributable to
divestitures and discontinuations during the twelve months prior to
the day of divestiture or discontinuation, as there are no revenues
from those businesses and assets included in the comparable current
period. Organic revenue (non-GAAP) is also adjusted for
acquisitions, however, during the three and twelve months ended
December 31, 2022 and 2021, revenues related to acquisitions were
not material.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230222005242/en/
Investor Contacts: Arthur Shannon
arthur.shannon@bausch.com
Allison Ryan allison.ryan@bausch.com (877) 354-3705 (toll free)
(908) 927-0735
Media Contacts: Lainie Keller lainie.keller@bausch.com
(908) 927-1198
Kristy Marks kristy.marks@bausch.com (908) 927-0683
Bausch plus Lomb (NYSE:BLCO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bausch plus Lomb (NYSE:BLCO)
Historical Stock Chart
From Jul 2023 to Jul 2024