Harvard Bioscience, Inc. · NASDAQ:HBIO
Harvard Bioscience — Q3 2021 Earnings Presentation
20 slides from Harvard Bioscience's earnings presentation, Nov 3, 2021
Slide 1: Q3'21 Earnings Presentation
NASDAQ: HBIO Q3’21 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO November 3, 2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements Information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities
Slide 3: Table of Contents
Table of Contents ▪ Summary ▪ Q3 Performance ▪ Customer/Product Family Update ▪ Business Update ▪ Financial Update ▪ 2021 Outlook 3
Slide 4: Summary
Summary ▪ Revenue up 23% over Q3’20, up 8% over pre-Covid (Q3’19) levels ▪ Pre-Clinical revenue up 28% on strong global demand ▪ CMT revenue up 19% with academic labs continuing to return from lockdowns ▪ Adjusted Operating Margin: 13% vs. 15% in Q3’20, and 12% in Q3’19 o Adjusted Gross Margin of 56
Slide 5: Q3 2021 Performance versus Q3 2020
Q3 2021 Performance versus Q3 2020 Revenue ($M) ▪ Revenue $29.7M, up 23% ▪ Gross Margin 55.0%, down 110 bps 29.7 27.4 24.0 ▪ Operating Income / Margin (GAAP) $0.5M / 1.8% ▪ Adj. Operating Income / Margin* $3.9M / 13.3% ▪ Loss Per Diluted Share (GAAP) ($0.00), up from ($0.03) Q3'21 Q3'20 Q3'19 ▪ Adju
Slide 6: 2021 Q3 Revenue by Product Family
2021 Q3 Revenue by Product Family (in $M) Q3 Q3 Q3 Comments 2021 2020 2019 Vs. Vs. Q3’20 Q3’19 Cellular & 16.3 13.7 17.0 19% -4% Revenue up 19% Molecular • Strong orders and backlog up significantly Product • Global supply chain disruption continues Lines • Fulfillment improving with accelerated reh
Slide 7: Q3'21 Business Update
Q3’21 Business Update Post-Covid Operating Environment o Global supply chain, labor sourcing/retention challenges continue, similar to Q2 o Operations stabilizing, improving after hiring back up, higher labor costs continues o Pricing actions taken to help combat materials inflation Europe Sales Org
Slide 8: Financial Section
(HY Harvard Bioscience Financial Section
Slide 9: 2021 Q3 Non-GAAP Results Year-over-Year
2021 Q3 Non-GAAP Results Year-over-Year (in M, except EPS) Q3’21 Q3’20 ▪ Adj. Gross Margin: supply chain, labor cost increases offset positive Revenue 29.7 24.0 impact of volume, significant product mix improvements Adj. Gross Profit 16.4 13.6 Adj. Gross Margin % 55.5% 56.4% ▪ Adj. Operating Expense
Slide 10: 2021 Outlook
(HY Harvard Bioscience 2021 Outlook
Slide 11: 2021 Outlook: Q3 Earnings Call
2021 Outlook: Q3 Earnings Call Revenue: revenue growth outlook increase to 15-to-17% from 12-to-15% Adj. Operating Margin: actions taken to maintain mid-teens (no change from Q2) ▪ Revenue growth: expect improvement to 15-to-17% versus 2020 on a reported basis o Pre-Clinical & APAC tailwinds, overal
Slide 12: Appendix
Appendix: • Revenue by Product Family • GAAP Financials • GAAP to Non-GAAP Reconciliations 12
Slide 13: Revenue By Product Family
Revenue By Product Family (in $M) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q1 21 Q2 Q2 21 Q3 Q3 21 19 19 19 19 19 20 20 20 20 20 21* Reported 21* Reported 21* Reported Cellular & 18.4 19.0 17.0 19.4 73.8 15.4 12.6 13.7 16.9 58.6 15.8 16.5 15.4 16.1 16.3 16.4 Molecular Product Lines Preclinical 9.8 10.6 10.4
Slide 14: GAAP Income Statements
GAAP Income Statements (in $ M, except EPS) Q3’21 Q3’20 Q3’19 Q3’21 Q3’20 Q3’19 QTD QTD QTD YTD YTD YTD Revenue 29.7 24.0 27.4 85.8 71.1 85.2 Gross Profit 16.3 13.5 15.0 48.1 40.3 47.1 Gross Margin % 55.0% 56.1% 54.6% 56.0% 56.7% 55.3% Operating Expenses 15.8 13.3 16.3 47.7 42.9 48.3 % of revenue 53
Slide 15: Balance Sheets
Balance Sheets (in $ M) Q3’21 Q4’20 Assets Cash & Cash Equivalents 5.5 8.3 Accounts Receivable 18.3 17.8 Inventories 26.0 22.3 Other Current Assets 5.8 3.4 Total Current Assets 55.7 51.7 Property, Plant, Equipment 3.5 4.0 Goodwill & Other Intangibles 86.9 91.7 Other Assets 7.8 8.9 Total Assets 153.9
Slide 16: Cash Flow Statements: Nine Months Ended
Cash Flow Statements: Nine Months Ended (in $ M) Q3’21 Q3’20 Net Cash Provided by Operating Activities 1.1 6.8 Additions to PP&E (0.8) (1.1) Other Investing Activities (0.2) - Net Cash (Used in) Provided by Investing Activities (1.0) (1.1) Repayments of Debt, Net (3.0) (10.6) Other Financing Activit
Slide 17: GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2021
GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2021 (in thousands, except per share data) HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months Ended September 30, 2021 (in thousands, except per share data) Stock-Based Acquired Ass
Slide 18: GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2020
GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2020 (in thousands, except per share data) HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months Ended September 30, 2020 (in thousands, except per share data) Stock-Based Acquired Ass
Slide 19: GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2019
GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2019 (in thousands, except per share data) HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months Ended September 30, 2019 (in thousands, except per share data) Acquired Assets Severanc
Slide 20: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Adjusted EBITDA (in thousands) HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) (in thousands) Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Operating income