Harvard Bioscience, Inc. · NASDAQ:HBIO
Harvard Bioscience — Q3 2022 Earnings Presentation
21 slides from Harvard Bioscience's earnings presentation, Nov 8, 2022
Slide 1: Q3'22 Earnings Presentation
HBIO NASDAQ:Overview HBIO to Q3’22 Earnings Presentation Investors Jim Green, Chairman, President & CEO Mike Rossi, CFO November 8, 2022
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 ▪ Financial Update ▪ 2022 Outlook 3
Slide 4: CEO Summary: Q3'22 Highlights
CEO Summary: Q3’22 Highlights “Grinding through improving the portfolio and re-sizing the organization by end of Q4” ▪ Revenue of $26.9M, down 9% as reported, versus near record Q3 prior year o Includes currency impact (-$1.0M) o A very slow summer with lower pre-clinical sales to CRO/pharma across
Slide 5: 2022 Q3 Revenue by Product Family
2022 Q3 Revenue by Product Family -Q3 2022 revenue and YoY growth rates shown in constant currency (in $M) Growth Comments Rate Q3 Q3 Vs. 2022 2021 Q3’21 Cellular & 15.0* 14.1 6% CMT revenue up 6% Molecular o Solid growth across geographies with strong growth in cellular products o CMT grew despite
Slide 6: New Product Introduction Launches
New Product Introduction Launches (Flat Pack Reaction Chamber) • BTX Electroporation Bio- • Premium U7500 • “Exclusive” Glucose Electroporation Telemetry Spectrophotometry Production Configuration • GLP/21 CFR Compliant Endpoint Implantable • Bridge to Production • Bandwidth <2nm for High • Only Con
Slide 7: Financial Section
(H Harvard Bioscience Financial Section
Slide 8: Q3'22 Performance versus Q3'21
Q3’22 Performance versus Q3’21 ▪ Revenue $26.9M, down 9% (-$1M Currency)) ▪ Gross Margin (GAAP) / Adjusted* 45.2% / 50.6% ▪ Operating Income / Margin (GAAP) (3.8M) / -14.0% ▪ Adj. Operating Income / Margin* $0.7M / 2.6% ▪ Income/(Loss) Per Diluted Share (GAAP) ($0.08) ▪ Adjusted Diluted EPS* ($0.01)
Slide 9: 2022 Q3 Non-GAAP Results Year-over-Year
2022 Q3 Non-GAAP Results Year-over-Year ▪ Adj. Gross Margin: decline due to higher COGS associated (in M, except EPS) Q3’22 Q3’21 with inflation (labor, materials costs) plus lower fixed cost Revenue 26.9 29.7 absorption with revenue decline. Adj. Gross Profit* 13.6 16.4 Adj. Gross Margin % 50.6% 55
Slide 10: 2022 Outlook
(HB Harvard Bioscience 2022 Outlook
Slide 11: 2022 Outlook: Looking Forward
2022 Outlook: Looking Forward “Assuming no major market interruptions” Q4’22 Outlook ▪ Revenue in the $30M range ▪ Sequentially improving revenue, improved mix returns gross margin to 1st half range and operating margin 14% to 15% range ▪ Improving inventory and working capital management improves c
Slide 12: Appendix
Appendix: • Revenue by Product Family and GAAP to Non-GAAP Constant Currency Reconciliations • GAAP Financials • GAAP to Non-GAAP Reconciliations 12
Slide 13: Revenue By Product Family
Revenue By Product Family -Including GAAP to Non-GAAP constant currency reconciliation (in $M) Q1'21 Q2'21 Q3'21 Q4'21 FY'21 Q1'22* Q2'22* Q3'22* Cellular & Molecular 13.6 13.6 14.1 14.9 56.2 14.5 16.0 15.0 Product Lines - constant currency* Currency ADJ (0.3) (0.7) (0.8) Cellular & Molecular 14.2 1
Slide 14: GAAP Income Statements
GAAP Income Statements (in $ M, except EPS) Q3’22 QTD Q3’21 QTD Q3’22 YTD Q3’21 YTD Revenue 26.9 29.7 84.9 85.8 Gross Profit 12.2 16.3 45.0 48.1 Gross Margin % 45.2% 55.0% 53.0% 56.0% Operating Expenses 15.9 15.8 51.5 47.7 % of Revenue 59.2% 53.1% 60.6% 55.6% Operating Income / (Loss) (3.8) 0.5 (6.5
Slide 15: Balance Sheet Q3 2022
Balance Sheet Q3 2022 (in $ M) Q3’22 Q ’21 Assets Cash & Cash Equivalents 5.1 7.8 Accounts Receivable 15.0 21.8 Inventories 26.1 27.6 Other Current Assets 5.5 4.3 Total Current Assets 51.8 61.6 Property, Plant, Equipment 3.6 3.4 Goodwill & Other Intangibles 77.3 85.1 Other Assets 14.3 12.3 Total Ass
Slide 16: Cash Flow Statements: Nine Months Ended
Cash Flow Statements: Nine Months Ended (in $ M) Sep' 2022 Sep' 2021 Net Cash (Used in) Provided by Operating Activities (1.5) 1.1 Additions to PP&E (1.4) (0.8) Other Investing Activities - (0.2) Net Cash Used in Investing Activities (1.4) (1.0) Net Debt Activity 0.7 (3.1) Other Financing Activities
Slide 17: GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2022
GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2022 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months Ended September 30, 2022 (in thousands, except per share data) Settlement, Restructuring, Stock-Based Acquired Assets Transfo
Slide 18: GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2021
GAAP to Non-GAAP Reconciliation: Three Months Ended September 30, 2021 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 Assets Restructuring, Income Statement of
Slide 19: GAAP to Non-GAAP Reconciliation: Nine Months Ended September 30, 2022
GAAP to Non-GAAP Reconciliation: Nine Months Ended September 30, 2022 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Nine Months Ended September 30, 2022 (in thousands, except per share data) Settlement, Restructuring, Stock-Based Acquired Assets Transform
Slide 20: GAAP to Non-GAAP Reconciliation: Nine Months Ended September 30, 2021
GAAP to Non-GAAP Reconciliation: Nine Months Ended September 30, 2021 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Nine Months Ended September 30, 2021 (in thousands, except per share data) Stock-Based Acquired Assets Restructuring, Income Statement of O
Slide 21: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Adjusted EBITDA HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) (in thousands) Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Operating income $ (3,762) $ 548