Bausch + Lomb Announces Fourth-Quarter and Full-Year 2023 Results and Provides 2024 Guidance

• Fourth-Quarter 2023 Financial Results
  • Revenue of $1.173 Billion
  • GAAP Net Loss Attributable to Bausch + Lomb Corporation of $54 Million
  • Adjusted EBITDA (non-GAAP)¹ of $231 Million
  • Revenue Grew 18% as Reported and 19% on a Constant Currency¹ Basis Compared to the Fourth Quarter of 2022, Driven by Growth Across All Segments
• Full-Year 2023 Financial Results
  • Revenue of $4.146 Billion
  • GAAP Net Loss Attributable to Bausch + Lomb Corporation of $260 Million
  • Adjusted EBITDA (non-GAAP)¹ of $738 Million
  • Revenue Grew 10% as Reported and 12% on a Constant Currency¹ Basis Compared to the Full Year of 2022, Driven by Growth Across All Segments
  • Foreign Exchange Negatively Impacted Revenue and Adjusted EBITDA (non-GAAP)¹ by Approximately $68 Million and $51 Million, Respectively

VAUGHAN, Ontario–(BUSINESS WIRE)–Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, today announced its fourth-quarter and full-year 2023 financial results.

“Revenue growth in 2023, and in the fourth quarter in particular, exceeded our expectations and set the tone for 2024,” said Brent Saunders, chairman and CEO, Bausch + Lomb. “Double-digit growth is always impressive, but even more so when you consider how we got there. Our quality of growth is what helps set us apart from others.”

Select Fourth-Quarter Company Highlights

• Launched enVista^® Aspire monofocal and toric intraocular lenses with Intermediate Optimized optics in the United States
• Launched SeeNa™, an ophthalmic diagnostic system for refractive cataract patients that is fully integrated with Bausch + Lomb’s Eyetelligence™ surgical planning software to help streamline surgical planning and information flow
• Received U.S. Food and Drug Administration approval for TENEO™ Excimer Laser Platform for laser-assisted in situ keratomileusis (LASIK) vision correction surgery for myopia and myopic astigmatism (nearsightedness and nearsightedness with astigmatism)² – the first excimer platform approved in nearly two decades

Fourth-Quarter and Full-Year 2023 Revenue Performance

Total reported revenue was $1.173 billion for the fourth quarter of 2023, as compared to $996 million in the fourth quarter of 2022, an increase of $177 million, or 18%. Excluding the unfavorable impact of foreign exchange of $9 million, revenue increased by approximately 19% on a constant currency¹ basis compared to the fourth quarter of 2022.

Total reported revenue was $4.146 billion for the full year of 2023, as compared to $3.768 billion in the full year of 2022, an increase of $378 million, or 10%. Excluding the unfavorable impact of foreign exchange of $68 million, revenue increased by approximately 12% on a constant currency¹ basis compared to the full year of 2022.

Revenue by segment was as follows:

Fourth-Quarter 2023

Full-Year 2023

Vision Care Segment³

Vision Care segment revenue was $662 million for the fourth quarter of 2023, as compared to $624 million for the fourth quarter of 2022, an increase of $38 million, or 6%. Excluding the unfavorable impact of foreign exchange of $13 million, segment revenue increased on a constant currency¹ basis by approximately 8% compared to the fourth quarter of 2022, primarily due to higher sales of Lumify^®, Eye Vitamins and Dry Eye Portfolio in our consumer eye care business and higher sales of SiHy Daily lenses and Ultra^® within our contact lens business, partially offset by unfilled orders as a result of the implementation of a system upgrade at our Lynchburg distribution facility that impacted our contact lens business.

Vision Care segment revenue was $2.543 billion for the full year of 2023, as compared to $2.369 billion for the full year of 2022, an increase of $174 million, or 7%. Excluding the unfavorable impact of foreign exchange of $61 million, segment revenue increased on a constant currency¹ basis by approximately 10% compared to the full year of 2022, primarily due to higher sales of Lumify, Eye Vitamins, Dry Eye Portfolio and Biotrue^® in our consumer eye care business and higher sales of SiHy Daily lenses and Ultra within our contact lens business, partially offset by unfilled orders as a result of the implementation of a system upgrade at our Lynchburg distribution facility that impacted our contact lens business.

Surgical Segment

Surgical segment revenue was $204 million for the fourth quarter of 2023, as compared to $188 million for the fourth quarter of 2022, an increase of $16 million, or 9%. Excluding the favorable impact of foreign exchange of $3 million, segment revenue increased on a constant currency¹ basis by approximately 7% compared to the fourth quarter of 2022, primarily due to higher sales of consumables, equipment and premium intraocular lenses (“IOLs”).

Surgical segment revenue was $767 million for the full year of 2023, as compared to $718 million for the full year of 2022, an increase of $49 million, or 7%. Excluding the unfavorable impact of foreign exchange of $1 million, segment revenue increased on a constant currency¹ basis by approximately 7% compared to the full year of 2022, primarily due to higher sales of consumables, equipment and premium IOLs.

Pharmaceuticals Segment³

Pharmaceuticals segment revenue was $307 million for the fourth quarter of 2023, as compared to $184 million for the fourth quarter of 2022, an increase of $123 million, or 67%. Excluding the favorable impact of foreign exchange of $1 million, segment revenue increased on a constant currency¹ basis by approximately 66% compared to the fourth quarter of 2022, primarily due to the acquisition of XIIDRA^®, sales of MIEBO^® and higher sales of Vyzulta^®.

Pharmaceuticals segment revenue was $836 million for the full year of 2023, as compared to $681 million for the full year of 2022, an increase of $155 million, or 23%. Excluding the unfavorable impact of foreign exchange of $6 million, segment revenue increased on a constant currency¹ basis by approximately 24% compared to the full year of 2022, primarily due to the acquisition of XIIDRA, launch of MIEBO and higher sales of Vyzulta, U.S. generics business and International Pharmaceuticals.

Operating Results

Operating income was $49 million for the fourth quarter of 2023, as compared to $51 million for the fourth quarter of 2022, a decrease of $2 million. Operating income was $130 million for the full year of 2023, as compared to $207 million for the full year of 2022, a decrease of $77 million.

For both the fourth quarter and full year of 2023, the changes in operating income were largely driven by an increase in selling, general and administrative expenses driven by product launches. Full year 2023 was also impacted by Business Transformation Costs and dis-synergy costs associated with the company becoming a stand-alone entity. The company is committed to continuing to maintain a disciplined approach to cost management and to leverage its infrastructure.

Net Loss

Net loss attributable to Bausch + Lomb Corporation for the fourth quarter of 2023 was $54 million, as compared to $1 million for the fourth quarter of 2022, an unfavorable change of $53 million. Net loss attributable to Bausch + Lomb Corporation for the full year of 2023 was $260 million, as compared to a net income attributable to Bausch + Lomb Corporation of $6 million for the full year of 2022, an unfavorable change of $266 million.

For the fourth quarter of 2023, the change was primarily due to higher interest expense and the decrease in operating results noted above.

For the full year of 2023, the change was primarily due to higher interest expense, the decrease in operating results noted above and foreign exchange headwinds.

Adjusted net income attributable to Bausch + Lomb Corporation (non-GAAP)¹ for the fourth quarter of 2023 was $83 million, as compared to $80 million for the fourth quarter of 2022, an increase of $3 million.

Adjusted net income (non-GAAP)¹ for the full year of 2023 was $258 million, as compared to $375 million for the full year of 2022, a decrease of $117 million.

Cash from Operations

Cash flow from operations for the fourth quarter of 2023 was $15 million, as compared to $159 million for the fourth quarter of 2022, a decrease of $144 million. Cash flow from operations was negatively impacted in the fourth quarter of 2023 primarily by the timing of collections and payments in the ordinary course of business and a strategic increase in inventories.

Cash flow used in operations for the full year of 2023 was $17 million, as compared to cash flow from operations of $345 million for the full year of 2022, a decrease of $362 million. Cash flow was negatively impacted in the full year of 2023 primarily by a strategic increase in inventories, decrease in operating results, and the timing of collections and payments in the ordinary course of business.

Earnings Per Share

GAAP Earnings Per Share (“EPS”) Basic and Diluted attributable to Bausch + Lomb Corporation for the fourth quarter of 2023 was ($0.15), as compared to $0.00 for the fourth quarter of 2022. Adjusted EPS attributable to Bausch + Lomb Corporation (non-GAAP)¹ for the fourth quarter of 2023 was $0.24, as compared to $0.23 for the fourth quarter of 2022.

GAAP EPS Basic and Diluted attributable to Bausch + Lomb Corporation for the full year of 2023 was ($0.74), as compared to $0.02 for the full year of 2022. Adjusted EPS attributable to Bausch + Lomb Corporation (non-GAAP)¹ for the full year of 2023 was $0.73, as compared to $1.07 for the full year of 2022.

Adjusted EBITDA (non-GAAP)¹

Adjusted EBITDA (non-GAAP)¹ was $231 million for the fourth quarter of 2023, as compared to $181 million for the fourth quarter of 2022, an increase of $50 million, primarily due to the acquisition of XIIDRA and revenue growth across all segments.

Adjusted EBITDA (non-GAAP)¹ was $738 million for the full year of 2023, as compared to $720 million for the full year of 2022, an increase of $18 million, primarily due to the acquisition of XIIDRA and revenue growth across all segments, partially offset by foreign exchange headwinds.

2024 Financial Outlook⁴

Bausch + Lomb provided guidance for the full year of 2024, as follows.

Other than with respect to GAAP revenue, the company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP)¹ to GAAP net income (loss) attributable to Bausch + Lomb Corporation or of forward-looking constant currency revenue growth¹ to reported revenue growth, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. These amounts may be material and, therefore, could result in the projected GAAP measure or ratio being materially different or less than the projected non-GAAP measure or ratio. 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.

Balance Sheet Highlights

• Bausch + Lomb’s cash, cash equivalents and restricted cash were $334 million at Dec. 31, 2023
• Basic weighted average shares outstanding for the fourth quarter of 2023 were 350.8 million, and diluted weighted average shares outstanding for the fourth quarter of 2023 were 352.2 million⁵
• Basic weighted average shares outstanding for the full year of 2023 were 350.5 million, and diluted weighted average shares outstanding for the full year of 2023 were 352 million⁵

Conference Call Details

About Bausch + Lomb

Bausch + Lomb is dedicated to protecting and enhancing the gift of sight for millions of people around the world – from birth through every phase of life. Its comprehensive portfolio of approximately 400 products includes contact lenses, lens care products, eye care products, ophthalmic pharmaceuticals, over-the-counter products and ophthalmic surgical devices and instruments. Founded in 1853, Bausch + Lomb has a significant global research and development, manufacturing and commercial footprint with approximately 13,000 employees and a presence in nearly 100 countries. Bausch + Lomb is headquartered in Vaughan, Ontario with corporate offices in Bridgewater, New Jersey. For more information, visit www.bausch.com and connect with us on X, LinkedIn, Facebook and Instagram.

Forward-looking Statements

This news release contains forward-looking information and statements within the meaning of applicable securities laws (collectively, “forward-looking statements”), which may generally be identified by the use of the words “anticipates,” “hopes,” “expects,” “intends,” “plans,” “projects,” “predicts,” “forecasts,” “should,” “could,” “would,” “may,” “might,” “will,” “strive,” “believes,” “estimates,” “potential,” “target,” “guidance,” “outlook,” or “continue” and positive and negative variations or similar expressions and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. Forward-looking statements include statements regarding Bausch + Lomb’s future prospects and performance, including the company’s 2024 full-year guidance, and the company’s planned approach to cost management. These forward-looking statements, including the company’s full-year guidance, are based upon the current expectations and beliefs of management and are provided for the purpose of providing additional information about such expectations and beliefs, and readers are cautioned that these statements may not be appropriate for other purposes. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in Bausch + Lomb’s filings with the U.S. Securities and Exchange Commission (“SEC”) and the Canadian Securities Administrators (the “CSA”) (including the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2023 (which is anticipated to be filed with the SEC and CSA on Feb. 21, 2024) and its most recent quarterly filings), which factors are incorporated herein by reference. They also include, but are not limited to, risks and uncertainties relating to the expected timing of resolving the disruptions (including unfulfilled orders) caused by the implementation of a system upgrade at our Lynchburg distribution facility. They also include risks and uncertainties respecting the proposed plan to spin off or separate Bausch + Lomb from Bausch Health Companies Inc. (“BHC”), including the expected benefits and costs of the spinoff transaction, the expected timing of completion of the spinoff transaction and its terms (including the expectation that the spinoff transaction will be completed following the achievement of targeted net leverage ratios, subject to receipt of applicable shareholder and other necessary approvals), the ability to complete the spinoff transaction considering the various conditions to the completion of the spinoff transaction (some of which are outside the company’s and BHC’s control, including conditions related to regulatory matters and receipt of applicable shareholder and other approvals), the impact of any potential sales of the company’s common shares by BHC, that market or other conditions are no longer favorable to completing the transaction, that applicable shareholder, stock exchange, regulatory or other approval is not obtained on the terms or timelines anticipated or at all, business disruption during the pendency of or following the spinoff transaction, diversion of management time on spinoff transaction-related issues, retention of existing management team members, the reaction of customers and other parties to the spinoff transaction, the structure of the spinoff transaction and related distribution, the qualification of the spinoff transaction as a tax-free transaction for Canadian and/or U.S. federal income tax purposes (including whether or not an advance ruling from the Canada Revenue Agency and/or the Internal Revenue Service will be sought or obtained), the ability of the company and BHC to satisfy the conditions required to maintain the tax-free status of the spinoff transaction (some of which are beyond their control), other potential tax or other liabilities that may arise as a result of the spinoff transaction, the potential dis-synergy costs resulting from the spinoff transaction, the impact of the spinoff transaction on relationships with customers, suppliers, employees and other business counterparties, general economic conditions, conditions in the markets the company is engaged in, behavior of customers, suppliers and competitors, technological developments and legal and regulatory rules affecting the company’s business. In particular, the company can offer no assurance that any spinoff transaction will occur at all, or that any spinoff transaction will occur on the terms and timelines anticipated by the company and BHC. They also include risks and uncertainties respecting the acquisition of XIIDRA^® and certain other ophthalmology assets, including the company’s ability to effectively and efficiently integrate the acquired business into its existing business; the effect of the transaction on Bausch + Lomb’s ability to maintain relationships with customers, suppliers and other business partners; risks relating to potential diversion of management attention away from Bausch + Lomb’s ongoing business operations; risks relating to increased levels of debt as a result of debt incurred to finance such transaction, including in regards to compliance with our debt covenants; and risks that the company may not realize the expected benefits of that transaction on a timely basis or at all. Finally, they also include, but are not limited to, risks and uncertainties caused by or relating to adverse economic conditions and other macroeconomic factors, including inflation, slower growth or a potential recession, which could adversely impact our revenue, expenses and resulting margins, and economic factors over which we have no control, including inflationary pressures as a result of historically high domestic and global inflation and otherwise, interest rates, foreign currency rates, and the positional effect of such factors on revenue, expenses and resulting margins. In addition, certain material factors and assumptions have been applied in making these forward-looking statements, including, without limitation, the assumption that the risks and uncertainties outlined above will not cause actual results or events to differ materially from those described in these forward-looking statements. In addition, management has also made certain assumptions regarding our 2024 full-year guidance with respect to expectations regarding base performance growth, expectations regarding performance of certain of our key products (including XIIDRA^® and MIEBO^®), currency impact, run-rate dis-synergies and inflation, expectations regarding adjusted gross margin (non-GAAP), adjusted SG&A expense (non-GAAP) and the company’s ability to continue to manage such expense in the manner anticipated and the anticipated timing and extent of the company’s R&D expense.

Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Bausch + Lomb undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Links provided in this news release are solely for information purposes and do not constitute Bausch + Lomb affirming any forward-looking statements contained in the linked content.

Non-GAAP Information

To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the company uses certain non-GAAP financial measures and ratios. Management uses these non-GAAP measures and ratios as key metrics in the evaluation of the company’s performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The company believes these non-GAAP measures and ratios are useful to investors in their assessment of our operating performance and the valuation of the company. In addition, these non-GAAP measures and ratios address questions the company routinely receives from analysts and investors, and in order to assure that all investors have access to similar data, the company has determined that it is appropriate to make this data available to all investors.

These measures and ratios do not have any standardized meaning under GAAP and other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to similar non-GAAP measures and ratios of other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

The reconciliations of these historic non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the tables below.

Specific Non-GAAP Measures

EBITDA and Adjusted EBITDA

EBITDA (non-GAAP) is Net income (loss) attributable to Bausch + Lomb Corporation (its most directly comparable U.S. GAAP financial measure) adjusted for interest, income taxes, depreciation and amortization. Adjusted EBITDA (non-GAAP) is EBITDA (non-GAAP) further adjusted for the items described below.

Contacts

Media:
T.J. Crawford

[email protected]
(908) 705-2851

Investor:
George Gadkowski

[email protected]
(877) 354-3705 (toll free)

(908) 927-0735

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