Harvard Bioscience, Inc. · NASDAQ:HBIO
Harvard Bioscience — Q2 2021 Earnings Presentation
20 slides from Harvard Bioscience's earnings presentation, Aug 5, 2021
Slide 1: Q2'21 Earnings Presentation
NASDAQ: HBIO Q2’21 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO August 5, 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 ▪ Q2 Performance ▪ Customer/Product Family Update ▪ Business Update ▪ Financial Update ▪ 2021 Outlook 3
Slide 4: Summary
Summary ▪ Revenue up 25% over Q2’20, near pre-Covid levels on Pre-Clinical growth ▪ Pre-Clinical (DSI) revenue up 20% on strong demand, growth across all key products ▪ CMT revenue up 22%, continuing recovery as labs re-open, supply chain stabilizes ▪ Very strong order growth, however continued fulf
Slide 5: Q2 2021 Performance versus Q2 2020
Q2 2021 Performance versus Q2 2020 Revenue ($M) ▪ Revenue $29.2M, up 25.3% 29.6 ▪ Gross Margin 56.0%, down 340 bps 29.2 23.3 ▪ Operating Income / Margin (GAAP) 0.1M / 0.2% ▪ Adj. Operating Income / Margin* $4.3M / 14.6% ▪ Loss Per Diluted Share (GAAP) ($0.01), up from ($0.04) Q2'21 Q2'20 Q2'19 ▪ Adj
Slide 6: Q2 2021 Revenue By Customer/Product Family
Q2 2021 Revenue By Customer/Product Family (in $M) Q2 Q2 Q2 Comments 2021 2020 2019 Vs. Vs. Q2’20 Q2’19 Cellular & 15.4 12.6 19.0 22.2% -18.9% CMT Products Molecular Revenue up 22% Product • Orders, backlog up significantly Lines • Shipment delays due to global supply chain disruption • Pruning of n
Slide 7: Q2 2021 Business Update
Q2 2021 Business Update ▪ Post-Covid operating dynamics impacting global supply chain, labor sourcing/retention ▪ European Restructuring: 2020 Plan Complete o Completed move of UK engineering to Boston, 2 small sites closed ▪ New Product Introductions: 9 new/refreshed products announced o 17 in tota
Slide 8: Financial Section
(HY Harvard Bioscience Financial Section
Slide 9: 2021 Q2 Non-GAAP Results Year-over-Year
2021 Q2 Non-GAAP Results Year-over-Year (in M, except EPS) Q2’21 Q2’20 ▪ Adj. Gross Margin: decline due to higher costs associated with Revenue 29.2 23.3 global supply chain challenges. Product mix remain favorable. Adj. Gross Profit 16.5 13.9 Adj. Gross Margin % 56.5% 59.8% ▪ Adj. Operating Expense
Slide 10: 2021 Outlook
(HY Harvard Bioscience 2021 Outlook
Slide 11: 2021 Outlook
2021 Outlook Improving revenue growth outlook, narrowing operating margin target due to supply chain cost increases ▪ Revenue growth: expect improvement to 12-to-15% versus 2020 on a reported basis o Strong order, backlog growth will enable sustained growth in Pre-Clinical product revenue o Academic
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 Q2 Q1 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 * Reported * 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 Molecular Product Lines Preclinical 9.8 10.6 10.4 1
Slide 14: GAAP Income Statements
GAAP Income Statements (in $ M, except EPS) Q2’21 Q2’20 Q2’19 Q2’21 Q2’20 Q2’19 QTD QTD QTD YTD YTD YTD Revenue 29.2 23.3 29.6 56.2 47.1 57.8 Gross Profit 16.4 13.9 16.0 31.8 26.8 32.1 Gross Margin % 56.0% 59.4% 53.9% 56.6% 57.0% 55.6% Operating Expenses 16.3 13.3 15.7 32.0 29.6 32.0 % of revenue 55
Slide 15: Balance Sheets
Balance Sheets (in $ M) Q2’21 Q4’20 Assets Cash & Cash Equivalents 6.2 8.3 Accounts Receivable 17.4 17.8 Inventories 24.7 22.3 Other Current Assets 5.2 3.4 Total Current Assets 53.6 51.7 Property, Plant, Equipment 3.4 4.0 Goodwill & Other Intangibles 88.9 91.7 Other Assets 8.1 8.9 Total Assets 154.0
Slide 16: Cash Flow Statements: Six Months Ended
Cash Flow Statements: Six Months Ended (in $ M) Q2’21 Q2’20 Net Cash Provided by Operating Activities 1.8 5.2 Additions to PP&E (0.4) (0.5) Other Investing Activities (0.2) - Net Cash (Used in) Provided by Investing Activities (0.5) (0.5) Repayments of Debt, Net (5.1) (10.3) Other Financing Activiti
Slide 17: GAAP to Non-GAAP Reconciliation: Three Months Ended June 30, 2021
GAAP to Non-GAAP Reconciliation: Three Months Ended June 30, 2021 (in thousands, except per share data) Acquired Assets Severance, Stock-Based Amortization Restructuring, Income Statement of Operations GAAP Compensation & Impairments Transformation Taxes ADJUSTED Revenues $ 29,197 - - - - $ 29,197 C
Slide 18: GAAP to Non-GAAP Reconciliation: Three Months Ended June 30, 2020
GAAP to Non-GAAP Reconciliation: Three Months Ended June 30, 2020 (in thousands, except per share data) Acquired Assets Severance, Stock-Based Amortization Restructuring, Income Statement of Operations GAAP Compensation & Impairments Transformation Taxes ADJUSTED Revenues $ 23,308 - - - - $ 23,308 C
Slide 19: GAAP to Non-GAAP Reconciliation: Three Months Ended June 30, 2019
GAAP to Non-GAAP Reconciliation: Three Months Ended June 30, 2019 (in thousands, except per share data) Acquired Assets Severance, Stock-Based Amortization Restructuring, Income Statement of Operations GAAP Compensation & Impairments Transformation Taxes ADJUSTED Revenues $ 29,584 - - - - $ 29,584 C
Slide 20: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Adjusted EBITDA (in thousands) Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net loss $ (410) $ (1,581) $ (1,079) $ (6,097) Amortization of intangible assets 1,465 1,454 2,929 2,881 Depreciation expense 446 498 891 982 In