Bioventus Reports First Quarter Financial Results
-- Q1 reported revenue of $123.9 million declined 4.3%; Organic* revenue
advanced 5.0%
-- First quarter net loss was $0.04 per share compared to a loss of $0.08 in
the prior-year period
-- Non-GAAP earnings* of $0.08 per share increased 33%
-- Company reiterated revenue, Adjusted EBITDA* and Non-GAAP EPS* guidance
for full year 2025
DURHAM, N.C., May 06, 2025 (GLOBE NEWSWIRE) -- Bioventus Inc. (Nasdaq: BVS) ("Bioventus" or the "Company"), a global leader in innovations for active healing, today reported financial results for the three months ended March 29, 2025.
"Our Bioventus team delivered solid results to start the year and we are making substantial progress with executing our strategic plan," said Rob Claypoole, Bioventus President and Chief Executive Officer. "We remain well positioned to navigate the uncertain macro-environment while achieving above-market revenue growth through a multitude of diverse growth drivers, enhancing profitability and accelerating cash flow to create significant shareholder value."
First Quarter 2025 Financial Results:
For the first quarter, worldwide revenue of $123.9 million declined 4.3% from $129.5 million in the prior-year period. This performance reflects the impact from the prior-year divestiture of the Advanced Rehabilitation Business. Organic* revenue increased 5.0% as a result of positive organic* growth across all three businesses.
Net loss attributable to Bioventus Inc. of $2.6 million compares to a net loss attributable to Bioventus Inc. of $4.9 million in the prior-year period.
Adjusted EBITDA* of $19.2 million was lower than the prior-year period Adjusted EBITDA* of $22.6 million primarily due to the impact of the Advanced Rehabilitation divestiture and planned growth investments.
Loss per share of Class A common stock was $0.04 per share, compared to a loss of $0.08 in the prior-year period. Non-GAAP earnings per share of Class A common stock(*) was $0.08 per share, reflecting an increase of 33% from $0.06 per share in the prior-year period.
Revenue By Business
The following table represents net sales by business and geographic region for the three months ended March 29, 2025 and March 30, 2024:
Constant
Three Months Currency*
Ended Change as Reported Change
------------------ -----------
(in thousands, March March
except for 29, 30,
percentage) 2025 2024 $ % %
----------------- -------- -------- -------- --------- -----------
U.S.
Pain Treatments $ 52,686 $ 50,637 $ 2,049 4.0% 4.0%
Surgical
Solutions 40,844 38,340 2,504 6.5% 6.5%
Restorative
Therapies(a) 16,990 25,304 (8,314) (32.9%) (32.9%)
----------------- ------- ------- ------ -----
Total U.S. net
sales 110,520 114,281 (3,761) (3.3%) (3.3%)
----------------- ------- ------- ------ -----
International
Pain Treatments 6,232 6,052 180 3.0% 6.7%
Surgical
Solutions 4,390 3,954 436 11.0% 14.0%
Restorative
Therapies(a) 2,734 5,170 (2,436) (47.1%) (45.7%)
----------------- ------- ------- ------ -----
Total
International
net sales 13,356 15,176 (1,820) (12.0%) (9.3%)
----------------- ------- ------- ------ -----
Total net sales $123,876 $129,457 $(5,581) (4.3%) (4.0%)
================= ======= ======= ====== =====
(a) U.S. revenue from the Advanced Rehabilitation Business totaled $330 and $9,897 for the three months ended March 29, 2025 and March 30, 2024, respectively. International revenue from the Advanced Rehabilitation Business totaled $1,924 for the three months ended March 30, 2024.
Pain Treatments: Global revenue of $58.9 million increased 3.9% led by double-digit growth in demand for Durolane, a differentiated, single-injection hyaluronic acid therapy for knee osteoarthritis. Growth was impacted by reduced buying by certain distributors following higher purchases at the end of last year.
Surgical Solutions: Global revenue of $45.2 million increased 7.0% driven by double-digit growth from Ultrasonics as a result of strong capital equipment purchases in the U.S.
Restorative Therapies: Global revenue of $19.7 million declined 35.3% reflecting the Company's divestiture of its Advanced Rehabilitation business at the end of 2024. On an organic(*) basis, revenue grew 4.0% driven by improvement in commercial effectiveness and sales force execution with the EXOGEN Bone Stimulation System.
Recent Business Highlights
Bioventus continues to advance its strategic priorities with key achievements, including the following:
-- Entered into a distribution agreement for the United States with APEX
Biologix to distribute its XCELL PRP system. This partnership broadens
Bioventus' Pain Treatments portfolio and is synergistic with its
patient-based mission, existing channels and call points.
-- Strengthened its executive leadership team with the addition of Dave
Venner, Senior Vice-President and General Manager of Surgical Solutions
and Jeff Ciardi, Vice-President for Strategic Accounts and Market Access.
2025 Financial Guidance:
Bioventus reiterated its 2025 Financial Guidance initially provided on March 11, 2025, which now includes an estimated impact of tariffs, which is immaterial at this time. For the twelve months ending December 31, 2025, the Company continues to expect:
-- Net sales of $560 million to $570 million. This reflects organic* growth
of approximately 6.1% to 8.0% when including the impact of the Company's
divestiture of its Advanced Rehabilitation Business, which generated
revenue of $45.4 million in 2024
-- Adjusted EBITDA* of $112 million to $116 million, reflecting 100 basis
points in Adjusted EBITDA Margin* growth compared to the 2024 Adjusted
EBITDA Margin* of 19.0% when using the low end of the 2025 revenue and
Adjusted EBITDA* guidance
-- Non-GAAP EPS* of $0.64 to $0.68, reflecting an increase of 30.6% to 38.8%
The Company does not provide U.S. GAAP financial measures, other than net sales, on a forward-looking basis, because the Company is unable to predict with reasonable certainty the impact and timing of acquisition and divestiture related expenses, accounting fair-value adjustments, and certain other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company's results computed in accordance with U.S. GAAP.
*See below under "Use of Non-GAAP Financial Measures" for more details.
About Bioventus
Bioventus delivers clinically proven, cost-effective products that help people heal quickly and safely. Its mission is to make a difference by helping patients resume and enjoy active lives. The Innovations for Active Healing from Bioventus include offerings for Pain Treatments, Surgical Solutions and Restorative Therapies. Built on a commitment to high quality standards, evidence-based medicine and strong ethical behavior, Bioventus is a trusted partner for physicians worldwide. For more information, visit www.bioventus.com and follow the Company on LinkedIn and Twitter. Bioventus and the Bioventus logo are registered trademarks of Bioventus LLC.
First Quarter 2025 Earnings Conference Call:
Management will host a conference call to discuss the Company's financial results and provide a business update, with a question and answer session, at 8:30 a.m. Eastern Time on May 6, 2025. Those who would like to participate may dial 1-833-636-0497 (domestic and international) and refer to Bioventus Inc.
A live webcast of the call and any accompanying materials will also be provided on the investor relations section of the Company's website at https://ir.bioventus.com/.
The webcast will be archived on the Company's website at https://ir.bioventus.com/ and available for replay until May 5, 2026.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements concerning our future financial results and liquidity; regarding our business strategy, including, without limitation, the impact of the divestiture of our Advanced Rehabilitation Business on our financial condition and operations; and expected sales trends, opportunities, market position and growth. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "contemplate," "continue," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "positioned," "seek," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Important factors that may cause actual results to differ materially from current expectations include, among other things: the risks related to tariffs and unexpected changes in tariffs, trade barriers and regulatory requirements, export licensing requirements or other restrictive actions by the United States or retaliatory tariffs and other actions taken by foreign governments; the risk that we might not realize some or all of the benefits expected to result from the recently completed divestiture of our Advanced Rehabilitation Business; if we fail to properly manage growth or scale our business processes, systems, or data management, our business could suffer; our ability to maintain our competitive position depends on our ability to attract, retain and motivate our senior management team and highly qualified personnel necessary to execute our strategic plans; we may face issues with respect to the supply of our products or their components due to product quality and regulatory compliance issues, including increased costs, disruptions of supply, shortages, contamination or mislabeling; we might not meet certain of our debt covenants under our Credit and Guaranty Agreement and might be required to repay our indebtedness on an accelerated basis; there are restrictions on operations and other costs associated with our indebtedness; we might require additional capital to fund our current financial obligations and support business growth; failure to establish and maintain effective financial controls could adversely affect our business and stock price; we might not be able to complete acquisitions or successfully integrate new businesses, products or technologies in a cost-effective and non-disruptive manner; our cash is maintained at financial institutions, often in balance that exceed federally insured limits; we are subject to securities class action litigation and may be subject to similar or other litigation, in the future, which will require significant management time and attention, result in significant legal expenses or costs not covered by our insurers, and may result in unfavorable outcomes; we are highly dependent on a limited number of products; our long-term growth depends on our ability to develop, acquire and commercialize new products, line extensions or expanded indications; we may be unable to successfully commercialize newly developed or acquired products or therapies in the United States; demand for our existing portfolio of products and any new products, line extensions or expanded indications depends on the continued and future acceptance of our products by physicians, patients, third-party payers and others in the medical community; the proposed down classification of non-invasive bone growth stimulators, including our EXOGEN system, by the U.S. Food and Drug Administration ("FDA") could increase future competition for bone growth stimulators and otherwise adversely affect the Company's sales of EXOGEN; failure to achieve and maintain adequate levels of coverage and/or reimbursement for our products or future products, the procedures using our products, such as our hyaluronic acid ("HA") viscosupplements, or future products we may seek to commercialize; pricing and other competitive factors; we may be unable to successfully commercialize newly developed or acquired products or therapies in the United States; governments outside the United States might not provide coverage or reimbursement of our products; we compete and may compete in the future against other companies, some of which have longer operating histories, more established products or greater resources than we do; if our HA products are reclassified from medical devices to drugs in the United States by the FDA, it could negatively impact our ability to market these products and may require that we conduct costly additional clinical studies to support current or future indications for use of those products; our failure to properly manage our anticipated growth and strengthen our brands; risks related to product liability claims; fluctuations in demand for our products; issues relating to the supply of our products or their components due to product quality and regulatory compliance issues, including increased costs, disruptions of supply, shortages, contamination or mislabeling; our reliance on a limited number of third-party manufacturers to manufacture certain of our products; if our facilities are damaged or become inoperable, we will be unable to continue to research, develop and manufacture certain of our products; economic, political, regulatory and other risks related to international sales, manufacturing and operations; failure to maintain contractual relationships; security breaches, unauthorized access to our disclosure of information, cyberattacks, or other incidents, or the perception that confidential information in our or our vendors' or service providers' possession or control is not secure; failure of key information technology and communications systems, process or sites; risks related to our future capital needs; failure to comply with extensive governmental regulation relevant to us and our products; we may be subject to enforcement action if we engage in improper claims submission practices and resulting audits or denials of our claims by government agencies could reduce our net sales or profits; the FDA regulatory process is expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and approvals could prevent us from commercializing our products; if clinical studies of our future product candidates do not produce results necessary to support regulatory clearance or approval in the United States or elsewhere, we will be unable to expand the indications for or commercialize these products; unstable political or economic conditions; legislative or regulatory reforms; our business might experience adverse impacts due to public health outbreaks; risks related to intellectual property matters; the dilution of our Class A common stockholders upon an exchange of the outstanding common membership interests in Bioventus LLC could adversely affect the market price of our Class A common stock and the resale of such shares could cause the market price of our Class A common stock to fall; and other the other risks identified in our Annual Report on Form 10-K for the year ended December 31, 2024, as such factors may be updated from time to time in Bioventus' other filings with the SEC which are accessible on the SEC's website at www.sec.gov and the Investor Relations page of Bioventus' website at https://ir.bioventus.com. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ materially from those set forth in the forward-looking statements.
BIOVENTUS INC.
Consolidated balance sheets
As of March 29, 2025 and December 31, 2024
(Amounts in thousands, except share amounts) (unaudited)
December 31,
March 29, 2025 2024
---------------- ----------------
Assets
Current assets:
Cash and cash equivalents $ 22,802 $ 41,582
Accounts receivable, net 118,082 127,393
Inventory 94,045 92,475
Prepaid and other current assets 14,438 14,160
----------- ---------
Total current assets 249,367 275,610
Property and equipment, net 25,722 27,012
Goodwill 7,462 7,462
Intangible assets, net 395,731 404,729
Operating lease assets 6,631 6,506
Deferred tax assets 4,745 4,745
Investment and other assets 1,756 1,892
----------- ---------
Total assets $ 691,414 $ 727,956
=========== =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 19,197 $ 23,690
Accrued liabilities 103,283 135,879
Current portion of long-term
debt 37,339 27,339
Current portion of contingent
consideration 10,573 19,573
Other current liabilities 4,359 3,917
----------- ---------
Total current liabilities 174,751 210,398
Long-term debt, less current portion 308,593 308,288
Deferred income taxes 607 564
Contingent consideration -- --
Other long-term liabilities 21,984 23,102
----------- ---------
Total liabilities 505,935 542,352
----------- ---------
Stockholders' Equity:
Preferred stock, $0.001 par value,
10,000,000 shares authorized, 0 shares
issued
Class A common stock, $0.001 par
value, 250,000,000 shares authorized
as of March 29, 2025 and December 31,
2024, 66,231,388 and 65,758,341
shares issued and outstanding as of
March 29, 2025 and December 31, 2024,
respectively 66 66
Class B common stock, $0.001 par
value, 50,000,000 shares authorized,
15,786,737 shares issued and
outstanding as of March 29, 2025 and
December 31, 2024 16 16
Additional paid-in capital 510,422 508,092
Accumulated deficit (360,298) (357,661)
Accumulated other comprehensive loss (2,062) (2,573)
----------- ---------
Total stockholders' equity
attributable to Bioventus Inc. 148,144 147,940
Noncontrolling interest 37,335 37,664
----------- ---------
Total stockholders' equity 185,479 185,604
----------- ---------
Total liabilities and stockholders'
equity $ 691,414 $ 727,956
=========== =========
BIOVENTUS INC.
Consolidated statements of operations and comprehensive
loss
(Amounts in thousands, except share and per share
data, unaudited)
Three Months Ended
------------------------------------
March 29, 2025 March 30, 2024
---------------- ------------------
Net sales $ 123,876 $ 129,457
Cost of sales (including
depreciation and amortization of
$10,265 and $10,025, respectively) 40,820 41,077
----------- -----------
Gross profit 83,056 88,380
Selling, general and administrative
expense 73,502 78,775
Research and development expense 3,011 2,627
Change in fair value of contingent
consideration -- 295
Depreciation and amortization 1,593 1,755
Loss on disposals 81 --
----------- -----------
Operating income 4,869 4,928
----------- -----------
Interest expense, net 7,509 10,339
Other expense, net 777 63
----------- -----------
Other expense 8,286 10,402
----------- -----------
Loss before income taxes (3,417) (5,474)
Income tax (benefit) expense, net (95) 907
----------- -----------
Net loss (3,322) (6,381)
Loss attributable to noncontrolling
interest 685 1,491
----------- -----------
Net loss attributable to Bioventus
Inc. $ (2,637) $ (4,890)
=========== ===========
Loss per share of Class A common
stock, basic and diluted: $ (0.04) $ (0.08)
=========== ===========
Weighted-average shares of Class A
common stock outstanding, basic and
diluted: 66,008,683 63,380,187
=========== ===========
BIOVENTUS INC.
Consolidated condensed statements of cash flows
(Amounts in thousands, unaudited)
Three Months Ended
March 29, 2025 March 30, 2024
---------------- ------------------
Operating activities:
Net loss $ (3,322) $ (6,381)
Adjustments to reconcile net loss to
net cash from operating activities:
Depreciation and amortization 11,865 11,785
Equity-based compensation 2,414 2,990
Change in fair value of
contingent consideration -- 295
Deferred income taxes 43 81
Unrealized (gain) loss on
foreign currency fluctuations (242) 377
Loss on disposals 81 --
Other, net 1,031 (395)
Changes in working capital (31,201) (14,757)
----------- -----------
Net cash from operating activities (19,331) (6,005)
Investing activities:
Purchase of property and equipment (826) (291)
Investments and acquisition of
distribution rights -- (709)
----------- -----------
Net cash from investing activities (826) (1,000)
Financing activities:
Proceeds from issuance of Class A
common stock 150 177
Payment of contingent consideration (9,000) --
Borrowing on revolver 15,000 --
Payment on revolver (5,000) --
Debt refinancing costs -- (1,180)
Payments on long-term debt -- (3,056)
Other, net (203) (183)
----------- -----------
Net cash from financing activities 947 (4,242)
Effect of exchange rate changes on
cash 430 $(544.SI)$
----------- -----------
Net change in cash and cash
equivalents (18,780) (11,791)
Cash and cash equivalents at the
beginning of the period 41,582 36,964
----------- -----------
Cash and cash equivalents at the end
of the period $ 22,802 $ 25,173
=========== ===========
Use of Non-GAAP Financial Measures
Organic Revenue Growth
The Company defines the term "organic revenue" as revenue in the stated period excluding the impact from business acquisitions and divestitures. The Company uses the related term "organic revenue growth" or "organic growth" to refer to the financial performance metric of comparing the stated period's organic revenue with the comparable reported revenue of the corresponding period in the prior year. The Company believes that these non-GAAP financial measures, when taken together with GAAP financial measures, allow the Company and its investors to better measure the Company's performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company's performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of acquisitions and divestitures because these activities can have a significant impact on the Company's reported results, which the Company believes makes comparisons of long-term performance trends difficult for management and investors.
Adjusted EBITDA, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Earnings per share of Class A Common Stock
We present Adjusted EBITDA, Non-GAAP Gross Profit, Non-GAAP (or Adjusted) Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Earnings per share of Class A common stock, all non-GAAP financial measures, to supplement our GAAP financial reporting because we believe these measures are useful indicators of our operating performance.
We define Adjusted EBITDA as net loss before depreciation and amortization, provision of income taxes and interest expense, net, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring and succession charges, equity-based compensation expense, financial restructuring costs and other items. See the table below for a reconciliation of net loss to Adjusted EBITDA. Our management uses Adjusted EBITDA principally as a measure of our operating performance and believes that Adjusted EBITDA is useful to our investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in industries similar to ours. Our management also uses Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections.
Our management uses Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expense, Non-GAAP Operating Margin and Non-GAAP Net Income principally as measures of our operating performance and believes that these non-GAAP financial measures are useful to better understand the long term performance of our core business and to facilitate comparison of our results to those of peer companies. Our management also uses these non-GAAP financial measures for planning purposes, including the preparation of our annual operating budget and financial projections.
We define Non-GAAP Gross Profit as gross profit, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization included in the cost of goods sold and acquisition and divestiture related costs in the cost of goods sold. We define Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by net sales. See the table below for a reconciliation of gross profit and gross margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin.
We define Non-GAAP Operating Income as operating income, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring and succession charges, financial restructuring costs and other items. Non-GAAP Operating Margin is defined as Non-GAAP Operating Income divided by net sales. See the table below for a reconciliation of operating income (loss) and operating margin to Non-GAAP Operating Income and Non-GAAP Operating Margin.
We define Non-GAAP Operating Expenses as operating expenses, adjusted to exclude certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring and succession charges, financial restructuring costs and other items. See the table below for a reconciliation of operating expenses to Non-GAAP Operating Expenses.
We define Non-GAAP R&D as research and development, adjusted to exclude certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, restructuring and succession charges, and other items. See the table below for a reconciliation of operating expenses to Non-GAAP R&D.
We define Non-GAAP Net Income as Net Income, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, certain shareholder litigation costs, restructuring and succession charges, impairment of assets, financial restructuring costs, other items and the tax effect of adjusting items. See the table below for a reconciliation of Net loss to Non-GAAP Net Income.
We define Non-GAAP Earnings per Class A share as Earnings per Class A share, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, acquisition and divestiture related costs, certain shareholder litigation costs, restructuring and succession charges, impairment of assets, financial restructuring costs, other items and the tax effect of adjusting items divided by weighted average number of shares of Class A common stock outstanding during the period. See the table below for a reconciliation of loss per Class A share to Non-GAAP Earnings per Class A share.
Net Sales, International Net Sales Growth and Constant Currency Basis
Net Sales, International Net Sales Growth and Constant Currency Basis are non-GAAP measures, which are calculated by translating current and prior year results at the same foreign currency exchange rate. Constant currency can be presented for numerous GAAP measures, but is most commonly used by management to facilitate the comparison of sales in foreign currencies to prior periods and analyze net sales performance without the impact of changes in foreign currency exchange rates.
Prior Period Recast
The Company identified an immaterial error in its equity-based compensation expense, which impacted annual and interim financial statements for the fiscal year 2024. Financial information relating to 2024 has been revised to correct this immaterial error. Refer to Note 1. Organization in the Company's Form 10-Q for the period ended March 29, 2025, filed on May 6, 2025, for further details regarding the immaterial error in equity-based compensation.
Limitations of the Usefulness of Non-GAAP Measures
Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for, or as superior to, the financial information prepared and presented in accordance with GAAP. These measures might exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures. Additionally, other companies might define their non-GAAP financial measures differently than we do. Investors are encouraged to review the reconciliation of the non-GAAP measures provided in this press release, including in the tables below, to their most directly comparable GAAP measures. Additionally, the Company does not provide U.S. GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the impact and timing of acquisition and divestiture related expenses, accounting fair-value adjustments and certain other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company's results computed in accordance with U.S. GAAP.
Reconciliation of Net (Loss) Income to Adjusted EBITDA
(unaudited)
Twelve Months
Three Months Ended Ended
---------------------------------
($, thousands) March 29, 2025 March 30, 2024 December 31, 2024
---------------- --------------- ---------------- -----------------
Net loss $ (3,322) $ (6,381) $ (47,049)
Interest
expense, net 7,509 10,339 38,792
Income tax
expense
(benefit), net (95) 907 (5,293)
Depreciation and
amortization(a) 11,865 11,785 49,555
Acquisition and
related
costs(b) -- 211 1,339
Shareholder
litigation
costs(c) 23 1,168 13,802
Restructuring
and succession
charges(d) -- 53 (57)
Equity
compensation(e) 2,414 2,990 13,274
Financial
restructuring
costs(f) -- 352 351
Impairment of
assets(g) -- -- 36,357
Loss on disposal
of a
business(h) 81 -- 292
Other items((i)
() 737 1,199 7,519
---------- ----------- ----------
Adjusted EBITDA $ 19,212 $ 22,623 $ 108,882
========== =========== ==========
(a) Includes for the three months ended March 29, 2025 and March 30, 2024, respectively, depreciation and amortization of $10.3 million and $10.0 million in cost of sales and $1.6 million and $1.8 million in operating expenses presented in the consolidated statements of operations and comprehensive loss.
The year ended December 31, 2024 includes depreciation and amortization of $41.9 million in cost of sales and $7.7 million in operating expenses.
(b) Includes acquisition and integration costs related to completed acquisitions and changes in fair value of contingent consideration.
(c) Costs incurred as a result of certain shareholder litigation unrelated to our ongoing operations.
(d) Costs incurred were the result of adopting restructuring plans to reduce headcount, contract terminations, reorganize management structure and consolidate certain facilities.
(e) Includes compensation expense resulting from awards granted under our equity-based compensation plans.
(f) Financial restructuring costs include advisory fees and debt amendment related costs.
(g) Represents a non-cash impairment charge for intangible assets solely attributable to our Advanced Rehabilitation Business in 2024 due to our decision to divest the business.
(h) Represents the loss on the disposal of the Advanced Rehabilitation Business.
(i) Other items includes charges associated with strategic transactions, including potential acquisitions or divestitures and a transformative project to redesign systems and information processing. Other items during the three months ended March 29, 2025 primarily consisted of $0.5 million of divestiture expenses related to the Advanced Rehabilitation Business sold on December 31, 2024.
During the three months ended March 30, 2024, other items primarily consisted of: (i) strategic transactions and divestiture expenses of $0.5 million, primarily related to the Advanced Rehabilitation Business; and (ii) transformative project costs of $0.8 million.
During the year ended December 31, 2024, other items primarily consisted of: (i) divestiture costs of $4.7 million related to the Advanced Rehabilitation Business, including transactional fees; (ii) transformative project costs of $1.7 million; and (iii) strategic transaction costs of $0.4 million.
Reconciliation of Other Reported GAAP Measures to
Non-GAAP Measures
Three Months
Ended March 29, Gross Operating Operating
2025 Profit Expenses(a) R&D Income Net Loss EPS(j)
----------- ------------- ---------- ----------- -------- ------------
Reported GAAP
measure $83,056 $ 75,176 $ 3,011 $ 4,869 $(3,322) $ (0.04)
Reported GAAP
margin 67.0% 3.9%
Depreciation and
amortization(b) 10,265 1,593 7 11,865 11,865 0.15
Shareholder
litigation
costs(c) -- 23 -- 23 23 --
Loss on disposal
of a
business(d) -- 81 -- 81 81 --
Other items(h) -- 792 69 861 737 0.01
Tax effect of
adjusting
items((i) () -- -- -- -- (3,189) (0.04)
------ --- -------- ------ ------ ------ -----
Non-GAAP measure $93,321 $ 72,687 $ 2,935 $17,699 $ 6,195 $ 0.08
------ --- -------- ------ ------ ------ -----
Non-GAAP margin 75.3% 14.3%
====== ======
Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-GAAP Adjusted
Gross Operating R&D Operating Net EPS
Margin Expenses Income Income
Three Months
Ended March 30, Gross Operating Operating
2024 Profit Expenses(a) R&D Income Net Loss EPS(j)
----------- ----------- ---------- ----------- -------- ------------
Reported GAAP
measure $88,380 $ 80,825 $ 2,627 $ 4,928 $(6,381) $ (0.08)
Reported GAAP
margin 68.3% 3.8%
Depreciation and
amortization(b) 10,025 1,755 5 11,785 11,785 0.15
Acquisition and
related
costs(e) -- 211 -- 211 211 --
Shareholder
litigation
costs(c) -- 1,168 -- 1,168 1,168 0.01
Restructuring
and succession
charges(f) -- 53 -- 53 53 --
Financial
restructuring
costs(g) -- 352 -- 352 352 0.01
Other items(h) -- 1,113 86 1,199 1,199 0.02
Tax effect of
adjusting
items((i) () -- -- -- -- (3,706) (0.05)
------ ---------- ------ ------ ------ -----
Non-GAAP measure $98,405 $ 76,173 $ 2,536 $19,696 $ 4,681 $ 0.06
------ ---------- ------ ------ ------ -----
Non-GAAP margin 76.0% 15.2%
====== ======
Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-GAAP Adjusted
Gross Operating R&D Operating Net EPS
Margin Expenses Income Income
(a) The "Reported GAAP Measure" under the "Operating Expenses" column is a sum of all GAAP operating expense line items, excluding research and development.
(b) Includes for the three months ended March 29, 2025 and March 30, 2024, respectively, depreciation and amortization of $10.3 million and $10.0 million in cost of sales and $1.6 million and $1.8 million in operating expenses presented in the consolidated statements of operations and comprehensive loss.
(c) Comprised of costs incurred as a result of certain shareholder litigation unrelated to our ongoing operations.
(d) Represents the loss on disposal of the Advanced Rehabilitation Business.
(e) Includes acquisition and integration costs related to completed acquisitions and changes in fair value of contingent consideration.
(f) Costs incurred were the result of contract terminations.
(g) Financial restructuring costs include advisory fees and debt amendment related costs.
(h) Other items includes charges associated with strategic transactions, including potential acquisitions or divestitures and a transformative project to redesign systems and information processing. Other items during the three months ended March 29, 2025 primarily consisted of $0.5 million of divestiture expenses related to the Advanced Rehabilitation Business sold on December 31, 2024.
During the three months ended March 30, 2024, other items primarily consisted of: (i) strategic transactions and divestiture expenses of $0.5 million, primarily related to the Advanced Rehabilitation Business; and (ii) transformative project costs of $0.8 million.
(i) An estimated tax impact for adjustments to Non-GAAP Net Income was calculated by applying a rate of 25.1% for the three months ended March 29, 2025 and March 30, 2024.
(j) Adjustments are pro-rated to exclude the weighted average non-controlling interest ownership of 19.2% and 19.9%, respectively, for the three months ended March 29, 2025 and March 30, 2024.
Investor Inquiries and Media:
Dave Crawford
Bioventus
investor.relations@bioventus.com
(END) Dow Jones Newswires
May 06, 2025 07:30 ET (11:30 GMT)