Bausch Health Companies Inc. announced its first-quarter 2021 financial results.
“Bausch Health entered 2021 with strong momentum as our recovery from the COVID-19 pandemic continues. Our business is generating strong cash flow, many of our leading products have increased market share in key markets, and we are advancing our pipeline,” said Joseph C. Papa, chairman and CEO, Bausch Health.
“We are taking action to accelerate the strategic alternatives process to expedite the spinoff of Bausch + Lomb as we remain committed to unlocking value across our two attractive businesses. We are focused on execution and growth as we position these two strong, but dissimilar businesses as attractive growth opportunities in the markets they serve,” continued Mr. Papa.
Select Company Highlights
Pipeline Advancements
Progress on Planned Separation of Eye Health Business
Today, the Company announced that Joseph C. Papa and Sam Eldessouky will serve as CEO and CFO of Bausch + Lomb upon separation of the Bausch + Lomb eye health business.3 In addition, the Company continued to make progress toward internal objectives necessary for the separation, including operating in five reportable segments commencing with the first quarter of 2021.
First-Quarter 2021 Revenue Performance
Total reported revenues were $2.027 billion for the first quarter of 2021, as compared to $2.012 billion in the first quarter of 2020, an increase of $15 million. Revenue was negatively impacted by approximately $100 million in the first quarter of 2021 due to the COVID-19 pandemic. Excluding the favorable impact of foreign exchange of $33 million and the impact of divestitures and discontinuations of $10 million, revenue declined organically1,4 by $8 million compared to the first quarter of 2020.
Revenues by segment were as follows:
Three Months Ended |
Reported |
Reported |
Change at |
Organic |
|||||||||||
(in millions) |
2021 |
20205 |
Change |
Change |
Currency6 |
Change1,4 |
|||||||||
Total Bausch Health Company |
$2,027 |
$2,012 |
$15 |
1% |
(1%) |
– |
|||||||||
Bausch + Lomb segment |
$881 |
$875 |
$6 |
1% |
(2%) |
(2%) |
|||||||||
Bausch Pharma7,8 |
$1,146 |
$1,137 |
$9 |
1% |
– |
1% |
|||||||||
Salix segment |
$472 |
$477 |
($5) |
(1%) |
(1%) |
(1%) |
|||||||||
International Rx segment |
$306 |
$291 |
$15 |
5% |
4% |
4% |
|||||||||
Ortho Dermatologics segment |
$141 |
$131 |
$10 |
8% |
5% |
5% |
|||||||||
Diversified Products segment |
$227 |
$238 |
($11) |
(5%) |
(5%) |
(2%) |
Bausch + Lomb Segment5
Bausch + Lomb segment revenues were $881 million for the first quarter of 2021, as compared to $875 million for the first quarter of 2020, an increase of $6 million, or 1%. Excluding the favorable impact of foreign exchange of $26 million and the impact of divestitures and discontinuations of $2 million, the Bausch + Lomb segment decreased organically1,4 by approximately 2% compared to the first quarter of 2020, primarily due to the impact of the COVID-19 pandemic.
Bausch Pharma7,8
Bausch Pharma revenues (non-GAAP)8 were $1.146 billion for the first quarter of 2021, as compared to $1.137 billion for the first quarter of 2020, an increase of $9 million, or 1%. Excluding the favorable impact of foreign exchange of $7 million and the impact of divestitures and discontinuations of $8 million, revenue increased organically1,4 by 1%.
Operating Results
Operating loss was $221 million for the first quarter of 2021, as compared to operating income of $248 million for the first quarter of 2020, an unfavorable change of $469 million. The change was primarily driven by a goodwill impairment charge of $469 million in our Ortho Dermatologics business and an impairment of $71 million related to the intangible assets of a certain product line in the Ortho Dermatologics business partially offset by profit protection measures taken to manage and reduce our operating expenses and preserve cash during the COVID-19 pandemic.
Net Loss
Net loss for the first quarter of 2021 was $610 million, as compared to $152 million for the same period in 2020, an unfavorable change of $458 million. The change was primarily due to the unfavorable change in our operating results.
Adjusted net income (non-GAAP)1 for the first quarter of 2021 was $370 million, as compared to $316 million for the first quarter of 2020, an increase of $54 million.
Cash Generated from Operations
The Company generated $443 million of cash from operations (GAAP basis) in the first quarter of 2021, as compared to $261 million in the first quarter of 2020, an increase of $182 million, or 70%. The increase in cash from operations was primarily attributed to the timing of payments in the ordinary course of business.
EPS
GAAP Earnings Per Share (EPS) Diluted for the first quarter of 2021 was ($1.71), as compared to ($0.43) for the first quarter of 2020.
Adjusted EBITDA (non-GAAP)1
Adjusted EBITDA (non-GAAP)1 was $852 million for the first quarter of 2021, as compared to $813 million for the first quarter of 2020, an increase of $39 million. The increase was primarily due to profit protection measures taken to manage and reduce our operating expenses and preserve cash during the COVID-19 pandemic.
2021 Financial Outlook
Bausch Health reiterated guidance for the full year of 2021 as follows:
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). These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-looking Statements section of this news release.
Additional Highlights
Conference Call Details
Date: |
Tuesday, May 4, 2021 |
Time: |
8:00 a.m. EDT |
Webcast: |
http://ir.bauschhealth.com/events-and-presentations |
Participant Event Dial-in: |
+1 (888) 317-6003 (United States) +1 (412) 317-6061 (International) +1 (866) 284-3684 (Canada) |
Participant Passcode: |
1092415 |
Replay Dial-in: |
+1 (877) 344-7529 (United States) +1 (412) 317-0088 (International) +1 (855) 669-9658 (Canada) |
Replay Passcode: |
10150424 (replay available until May 11, 2021) |
About Bausch Health
Bausch Health Companies Inc. 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.