Fourth-Quarter 2024 Financial Results
- Revenue of $1.280 Billion
- GAAP Net Loss Attributable to Bausch + Lomb Corporation of
$3 Million
- Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)1 of
$259 Million
- Revenue Grew 9% as Reported and 11% on a Constant Currency1
Basis Compared to the Fourth Quarter of 2023, with Growth Across
All Segments
Full-Year 2024 Financial Results
- Revenue of $4.791 Billion
- GAAP Net Loss Attributable to Bausch + Lomb Corporation of
$317 Million
- Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)1 of
$878 Million
- Revenue Grew 16% as Reported and 17% on a Constant Currency1
Basis Compared to the Full Year of 2023, with Growth Across All
Segments
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 2024
financial results.
“Underpinning our recent success is a commitment to long-term,
profitable growth,” said Brent Saunders, chairman and CEO, Bausch +
Lomb. “Our refocused pipeline is now filled with promise and
potential to significantly enhance the standard of care for
patients across the spectrum of eye health needs.”
Select Company Highlights
- Delivered broad-based growth across all segments, geographies
and key franchises
- Drove strong execution in dry eye, with annual dry eye
portfolio revenue approaching $1 billion
- Realized double-digit revenue growth in contact lens business
in the fourth quarter
- Expanded surgical portfolio with growth across all product
categories in the fourth quarter
- Achieved solid growth across key consumer franchises, including
LUMIFY® and eye vitamins
- Continued to transform the R&D pipeline and make strategic
investments, including the acquisition of Elios Vision
Fourth-Quarter and Full-Year 2024 Revenue Performance
Total reported revenue was $1.280 billion for the fourth quarter
of 2024, as compared to $1.173 billion in the fourth quarter of
2023, an increase of $107 million, or 9%. Excluding the unfavorable
impact of foreign exchange of $17 million, revenue increased by
approximately 11% on a constant currency1 basis compared to the
fourth quarter of 2023.
Total reported revenue was $4.791 billion for the full year of
2024, as compared to $4.146 billion in the full year of 2023, an
increase of $645 million, or 16%. Excluding the unfavorable impact
of foreign exchange of $69 million, revenue increased by
approximately 17% on a constant currency1 basis compared to the
full year of 2023.
Revenue by segment was as follows:
Fourth-Quarter 2024
(in millions)
Three Months Ended
December 31
Reported Change
Reported Change
Change at Constant
Currency1
(non-GAAP)
2024
2023
Total Bausch + Lomb Revenue
$1,280
$1,173
$107
9%
11%
Vision Care
$723
$662
$61
9%
11%
Surgical
$231
$204
$27
13%
15%
Pharmaceuticals
$326
$307
$19
6%
7%
Full-Year 2024
(in millions)
Twelve Months Ended December
31
Reported Change
Reported Change
Change at Constant
Currency1
(non-GAAP)
2024
2023
Total Bausch + Lomb Revenue
$4,791
$4,146
$645
16%
17%
Vision Care
$2,739
$2,543
$196
8%
10%
Surgical
$843
$767
$76
10%
11%
Pharmaceuticals
$1,209
$836
$373
45%
45%
Vision Care Segment
Vision Care segment revenue was $723 million for the fourth
quarter of 2024, as compared to $662 million for the fourth quarter
of 2023, an increase of $61 million, or 9%. Excluding the
unfavorable impact of foreign exchange of $12 million, segment
revenue increased on a constant currency1 basis by approximately
11% compared to the fourth quarter of 2023.
Vision Care segment revenue was $2.739 billion for the full year
of 2024, as compared to $2.543 billion for the full year of 2023,
an increase of $196 million, or 8%. Excluding the unfavorable
impact of foreign exchange of $54 million, segment revenue
increased on a constant currency1 basis by approximately 10%
compared to the full year of 2023.
Performance in fourth quarter of 2024 and full year 2024 was
primarily driven by increased demand for LUMIFY, over-the-counter
dry eye products and eye vitamins in our consumer business, and
Daily SiHy lenses and Bausch + Lomb ULTRA® in our contact lens
business.
Surgical Segment
Surgical segment revenue was $231 million for the fourth quarter
of 2024, as compared to $204 million for the fourth quarter of
2023, an increase of $27 million, or 13%. Excluding the unfavorable
impact of foreign exchange of $3 million, segment revenue increased
on a constant currency1 basis by approximately 15% compared to the
fourth quarter of 2023.
Surgical segment revenue was $843 million for the full year of
2024, as compared to $767 million for the full year of 2023, an
increase of $76 million, or 10%. Excluding the unfavorable impact
of foreign exchange of $9 million, segment revenue increased on a
constant currency1 basis by approximately 11% compared to the full
year of 2023.
Performance in fourth quarter of 2024 and full year 2024 was
driven by increased demand of consumables, equipment and
implantables, including strong growth in our premium IOL
portfolio.
Pharmaceuticals Segment
Pharmaceuticals segment revenue was $326 million for the fourth
quarter of 2024, as compared to $307 million for the fourth quarter
of 2023, an increase of $19 million, or 6%. Excluding the
unfavorable impact of foreign exchange of $2 million, segment
revenue increased on a constant currency1 basis by approximately 7%
compared to the fourth quarter of 2023, primarily driven by strong
execution of the launch of MIEBO®.
Pharmaceuticals segment revenue was $1.209 billion for the full
year of 2024, as compared to $836 million for the full year of
2023, an increase of $373 million, or 45%. Excluding the
unfavorable impact of foreign exchange of $6 million, segment
revenue increased on a constant currency1 basis by approximately
45% compared to the full year of 2023, primarily due to incremental
sales from the acquisition of XIIDRA®, launch of MIEBO and growth
in U.S. Generics and International Pharmaceuticals.
Operating Results
Operating income was $87 million for the fourth quarter of 2024,
as compared to an operating income of $49 million for the fourth
quarter of 2023, an increase of $38 million. The change was largely
driven by an increase in gross profit contribution, partially
offset by higher selling, advertising and promotion costs primarily
attributable to MIEBO.
Operating income was $162 million for the full year of 2024, as
compared to $130 million for the full year of 2023, an increase of
$32 million. The change was primarily due to the same factors as in
the fourth quarter of 2024, as noted above, partially offset by
higher selling, advertising and promotion costs attributable to
XIIDRA and amortization expense.
Net Loss
Net loss attributable to Bausch + Lomb Corporation for the
fourth quarter of 2024 was $3 million, as compared to $54 million
for the fourth quarter of 2023, a favorable change of $51 million.
The change was primarily driven by the increase in operating
results noted above.
Net loss attributable to Bausch + Lomb Corporation for the full
year of 2024 was $317 million, as compared to $260 million for the
full year of 2023, an unfavorable change of $57 million. The change
was primarily driven by the increase in interest expense, partially
offset by the increase in operating results, as noted above.
Adjusted net income attributable to Bausch + Lomb Corporation
(non-GAAP)1 for the fourth quarter of 2024 was $89 million, as
compared to $83 million for the fourth quarter of 2023, an increase
of $6 million.
Adjusted net income attributable to Bausch + Lomb Corporation
(non-GAAP)1 for the full year of 2024 was $204 million, as compared
to $258 million for the full year of 2023, a decrease of $54
million.
Cash Flow From Operations
Cash flow from operations for the full year of 2024 was $232
million, as compared to cash flow used in operations of $17 million
for the full year of 2023, an increase of $249 million. Cash flow
was positively impacted in the full year by the acquisition of
XIIDRA, increased gross profit and improved working capital
initiatives, partially offset by increased interest payments.
Earnings Per Share
GAAP Earnings Per Share (“EPS”) Basic and Diluted attributable
to Bausch + Lomb Corporation for the fourth quarter of 2024 was
($0.01), as compared to ($0.15) for the fourth quarter of 2023.
Adjusted EPS attributable to Bausch + Lomb Corporation (non-GAAP)1
for the fourth quarter of 2024 was $0.25, as compared to $0.24 for
the fourth quarter of 2023.
GAAP Earnings Per Share (“EPS”) Basic and Diluted attributable
to Bausch + Lomb Corporation for the full year of 2024 was ($0.90),
as compared to ($0.74) for the full year of 2023. Adjusted EPS
attributable to Bausch + Lomb Corporation (non-GAAP)1 for the full
year of 2024 was $0.58 as compared to $0.73 for the full year of
2023.
Adjusted EBITDA Excluding Acquired IPR&D
(non-GAAP)1
Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)1 was
$259 million for the fourth quarter of 2024, as compared to $231
million for the fourth quarter of 2023, an increase of $28 million,
primarily due to the increase in sales, as noted above, partially
offset by an investment in products, including MIEBO.
Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)1 was
$878 million for the full year of 2024, as compared to $738 million
for the full year of 2023, an increase of $140 million, primarily
due to the increase in sales, as noted above, partially offset by
investment in products, including MIEBO and XIIDRA.
2025 Financial Outlook2
Bausch + Lomb provided guidance for the full year of 2025, as
follows.
As of February 19, 2025
Full-Year Revenue
$4.950B - $5.050B
~5.5 - 7.5% constant currency growth1
Full-Year Adjusted EBITDA
$900M - $950M
Excluding Acquired IPR&D
(non-GAAP)1
Full-Year Revenue Foreign Exchange
Headwinds
-$100M
Full-Year Adj. EBITDA1 Foreign Exchange
Headwinds
-$20M
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 excluding
Acquired IPR&D (non-GAAP)1 to GAAP net income (loss)
attributable to Bausch + Lomb Corporation or of forward-looking
constant currency 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
$316 million at December 31, 2024
- Basic weighted average shares outstanding for the fourth
quarter of 2024 were 352.0 million, and diluted weighted average
shares outstanding for the fourth quarter of 2024 were 355.8
million3
- Basic weighted average shares outstanding for the full year of
2024 were 351.8 million, and diluted weighted average shares
outstanding for the full year of 2024 were 354.0 million3
Conference Call Details
Date:
Wednesday, February 19, 2025
Time:
8:00 a.m. ET
Webcast:
https://www.webcaster4.com/Webcast/Page/2883/51712
Participant Event Dial-in:
+1 (888) 506-0062 (North America)
+1 (973) 528-0011 (International)
Participant Access Code:
785090
Replay Dial-in:
+1 (877) 481-4010 (North America)
+1 (919) 882-2331 (International)
Replay Passcode:
51712 (replay available until March 5,
2025)
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 13,500 employees and a presence in
approximately 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 2025 full-year
guidance. 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, 2024 (which is anticipated to be filed with the SEC
and CSA on Feb. 19, 2025) and its most recent quarterly filings),
which factors are incorporated herein by reference. They also
include, but are not limited to, risks and uncertainties respecting
the proposed plan to separate Bausch + Lomb into an independent,
publicly traded company, separate from the remainder of Bausch
Health Companies Inc. (“BHC”) (the “separation”), which include,
but are not limited to, the expected benefits and costs of the
separation, the expected timing of completion of the separation and
its manner and terms (including that it may include the transfer of
all or a portion of BHC’s remaining direct or indirect equity
interest in Bausch + Lomb to its shareholders (the
“distribution”)), the expectation that, if the separation is to be
effected through a distribution, then it will be completed
following the achievement of targeted debt leverage ratios, subject
to receipt of applicable shareholder and other necessary approvals
and other factors, including those described in BHC’s public
statements, the ability to complete the distribution considering
the various conditions to the completion of the distribution (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
separation, diversion of management time on separation-related
issues, retention of existing management team members, the reaction
of customers and other parties to the separation, the structure of
the distribution, the qualification of the distribution 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 such
distribution (some of which are beyond their control), other
potential tax or other liabilities that may arise as a result of
the distribution, the potential dis-synergy costs resulting from
the separation, the impact of the separation 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 the separation will occur at all, or that any such
transaction will occur on the terms and timelines or in the manner
anticipated by the company and BHC. They also include risks and
uncertainties relating to acquisitions and other business
development transactions the company has completed or may, in the
future, pursue and complete, such as the acquisition of XIIDRA® and
certain other ophthalmology assets, including risks that the
company may not realize the expected benefits of those transactions
on a timely basis or at all and, where applicable, risks relating
to increased levels of debt as a result of debt incurred to finance
such transactions, including in regards to compliance with our debt
covenants. 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 heightened
inflation and interest rates, imposition of and adverse changes to
tariff, duties and other trade protection measures, 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
heightened domestic and global inflation and otherwise, heightened
interest rates, foreign currency rates, and the potential 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 2025 full-year guidance with respect to
expectations regarding base performance growth, expectations
regarding performance of certain key products (including XIIDRA®
and MIEBO®), currency impact, the estimated impact of our recent
acquisition of Elios Vision respecting US approval and launch
costs, 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, interest expense (which will vary based on, among
other things, interest rates and our indebtedness), adjusted tax
rate and full year capex 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, Adjusted EBITDA and Adjusted
EBITDA excluding Acquired IPR&D
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. Management believes
that Adjusted EBITDA (non-GAAP), along with the GAAP measures used
by management, most appropriately reflect how the company measures
the business internally and sets operational goals and incentives.
In particular, the company believes that Adjusted EBITDA (non-GAAP)
focuses management on the company’s underlying operational results
and business performance. As a result, the company uses Adjusted
EBITDA (non-GAAP) both to assess the actual financial performance
of the company and to forecast future results as part of its
guidance. Management believes Adjusted EBITDA (non-GAAP) is a
useful measure to evaluate current performance. Adjusted EBITDA
(non-GAAP) is intended to show our unleveraged, pre-tax operating
results and therefore reflects our financial performance based on
operational factors. In addition, cash bonuses for the company’s
executive officers and other key employees are based, in part, on
the achievement of certain Adjusted EBITDA (non-GAAP) targets.
Adjusted EBITDA (non-GAAP) is Net income (loss) attributable to
Bausch + Lomb Corporation (its most directly comparable U.S. GAAP
financial measure) adjusted for interest expense, net, (benefit
from) provision for income taxes, depreciation and amortization and
further adjusted for the following items:
- Asset impairments: The company has
excluded the impact of impairments of finite-lived and
indefinite-lived intangible assets as such amounts are inconsistent
in amount and frequency and are significantly impacted by the
timing and/or size of acquisitions and divestitures. The company
believes that the adjustments of these items correlate with the
sustainability of the company’s operating performance. Although the
company excludes impairments of intangible assets from measuring
the performance of the company and its business, the company
believes that it is important for investors to understand that
intangible assets contribute to revenue generation.
- Restructuring, integration and
transformation costs: The company has incurred restructuring
costs as it implemented certain strategies, which involved, among
other things, improvements to its infrastructure and operations,
internal reorganizations and impacts from the divestiture of assets
and businesses. With regard to infrastructure and operational
improvements which the company has taken to improve efficiencies in
the businesses and facilities, these tend to be costs intended to
right size the business or organization that fluctuate
significantly between periods in amount, size and timing, depending
on the improvement project, reorganization or transaction.
Additionally, with the completion of the Bausch + Lomb IPO, as the
company prepares for post-separation operations, the company is
launching certain transformation initiatives that will result in
certain changes to and investment in its organizational structure
and operations. These transformation initiatives arise outside of
the ordinary course of continuing operations and, as is the case
with the company’s restructuring efforts, costs associated with
these transformation initiatives are expected to fluctuate between
periods in amount, size and timing. These
out-of-the-ordinary-course charges include third-party advisory
costs, as well as certain compensation-related costs (including
costs associated with changes in our executive officers, such as
the severance costs associated with the departure of the company’s
former CEO and the costs associated with the appointment of the
company’s current CEO). Investors should understand that the
outcome of these transformation initiatives may result in future
restructuring actions and certain of these charges could recur. The
company believes that the adjustments of these items provide
supplemental information with regard to the sustainability of the
company’s operating performance, allow for a comparison of the
financial results to historical operations and forward-looking
guidance and, as a result, provide useful supplemental information
to investors.
- Acquisition-related costs and adjustments
excluding amortization of intangible assets: The company has
excluded the impact of acquisition-related costs and fair value
inventory step-up resulting from acquisitions as the amounts and
frequency of such costs and adjustments are not consistent and are
significantly impacted by the timing and size of its acquisitions.
In addition, the company excludes the impact of acquisition-related
contingent consideration non-cash adjustments due to the inherent
uncertainty and volatility associated with such amounts based on
changes in assumptions with respect to fair value estimates, and
the amount and frequency of such adjustments are not consistent and
are significantly impacted by the timing and size of the company’s
acquisitions, as well as the nature of the agreed-upon
consideration.
- Share-based compensation: The
company excludes costs relating to share-based compensation. The
company believes that the exclusion of share-based compensation
expense assists investors in the comparisons of operating results
to peer companies. Share-based compensation expense can vary
significantly based on the timing, size and nature of awards
granted.
- Separation costs and separation-related
costs: The company has excluded certain costs incurred in
connection with activities taken to: (i) separate the Bausch + Lomb
business from the remainder of BHC and (ii) register the Bausch +
Lomb business as an independent publicly traded entity. Separation
costs are incremental costs directly related to effectuating the
separation of the Bausch + Lomb business from the remainder of BHC
and include, but are not limited to, legal, audit and advisory
fees, talent acquisition costs and costs associated with
establishing a new Board of Directors and Audit Committee.
Separation-related costs are incremental costs indirectly related
to the separation of the Bausch + Lomb business from the remainder
of BHC and include, but are not limited to, IT infrastructure and
software licensing costs, rebranding costs and costs associated
with facility relocation and/or modification. As these costs arise
from events outside of the ordinary course of continuing
operations, the company believes that the adjustments of these
items provide supplemental information with regard to the
sustainability of the company’s operating performance, allow for a
comparison of the financial results to historical operations and
forward-looking guidance and, as a result, provide useful
supplemental information to investors.
- Other Non-GAAP adjustments: The
company also excludes certain other amounts, including IT
infrastructure investment, litigation and other matters,
gain/(loss) on sales of assets and certain other amounts that are
the result of other, non-comparable events to measure operating
performance if and when present in the periods presented. These
events arise outside of the ordinary course of continuing
operations. Given the unique nature of the matters relating to
these costs, the company believes these items are not routine
operating expenses. For example, legal settlements and judgments
vary significantly, in their nature, size and frequency, and, due
to this volatility, the company believes the costs associated with
legal settlements and judgments are not routine operating expenses.
The company believes that the exclusion of such
out-of-the-ordinary-course amounts provides supplemental
information to assist in the comparison of the financial results of
the company from period to period and, therefore, provides useful
supplemental information to investors. However, investors should
understand that many of these costs could recur and that companies
in our industry often face litigation.
Adjusted EBITDA excluding Acquired In-Process Research and
Development (IPR&D) (non-GAAP) is Adjusted EBITDA (non-GAAP)
further adjusted to exclude Acquired IPR&D. The IPR&D
expenditures represent costs directly resulting from business
development transactions and not through the normal course of
business. The company believes that the exclusion of such
out-of-the-ordinary-course amounts provides supplemental
information to assist in the comparison of the financial results of
the company from period to period and, therefore, provides useful
supplemental information to investors in assessing our performance.
However, investors should understand that the company may enter
into additional business development transactions in the future
and, as a result, such Acquired IPR&D may recur in the
future.
Adjusted Net Income (non-GAAP)
Adjusted net income (non-GAAP) is net income (loss) attributable
to Bausch + Lomb Corporation (its most directly comparable GAAP
financial measure) adjusted for asset impairments, restructuring,
integration and transformation costs, acquisition-related
contingent consideration, separation costs and separation-related
costs and other non-GAAP adjustments, as these adjustments are
described above, and further adjusted for amortization of
intangible assets and acquisition-related costs and adjustments
excluding amortization of intangible assets, as described
below:
- Amortization of intangible assets:
The company has excluded the impact of amortization of intangible
assets, as such amounts are inconsistent in amount and frequency
and are significantly impacted by the timing and/or size of
acquisitions. The company believes that the adjustments of these
items correlate with the sustainability of the company’s operating
performance. Although the company excludes the amortization of
intangible assets from its non-GAAP expenses, the company believes
that it is important for investors to understand that such
intangible assets contribute to revenue generation. Amortization of
intangible assets that relate to past acquisitions will recur in
future periods until such intangible assets have been fully
amortized. Any future acquisitions may result in the amortization
of additional intangible assets.
- Acquisition-related costs and adjustments
excluding amortization of intangible assets: In addition to
the acquisition-related costs and adjustments as described above,
the company has excluded the expense directly attributable to
one-time commitment and structuring fees related to a bridge loan
facility put in place prior to the acquisition of XIIDRA and
certain other ophthalmology assets. The company excluded these
costs as they are outside of the ordinary course of continuing
operations and are infrequent in nature. The company believes that
the exclusion of such out-of-the-ordinary-course amounts provides
supplemental information to assist in the comparison of the
financial results of the company from period to period and,
therefore, provides useful supplemental information to
investors.
Adjusted net income (non-GAAP) excludes the impact of these
certain items that may obscure trends in the company’s underlying
performance. Management uses Adjusted net income (non-GAAP) for
strategic decision making, forecasting future results and
evaluating current performance. By disclosing this non-GAAP
measure, it is management’s intention to provide investors with a
meaningful, supplemental comparison of the company’s operating
results and trends for the periods presented. Management believes
that this measure is also useful to investors as such measure
allows investors to evaluate the company’s performance using the
same tools that management uses to evaluate past performance and
prospects for future performance. Accordingly, the company believes
that Adjusted net income (non-GAAP) is useful to investors in their
assessment of the company’s operating performance and the valuation
of the company. It is also noted that, in recent periods, our GAAP
net income (loss) attributable to Bausch + Lomb Corporation was
significantly lower than our Adjusted net income (non-GAAP).
Constant Currency
Constant currency change or constant currency revenue growth is
a change in GAAP revenue (its most directly comparable GAAP
financial measure) on a period-over-period basis adjusted for
changes in foreign currency exchange rates. The company uses
Constant Currency revenue (non-GAAP) and Constant Currency revenue
Growth (non-GAAP) to assess performance of its reportable segments,
and the company in total, without the impact of foreign currency
exchange fluctuations. The company believes that such measures are
useful to investors as they provide a supplemental period-to-period
comparison. Although changes in foreign currency exchange rates are
part of our business, they are not within management’s control.
Changes in foreign currency exchange rates, however, can mask
positive or negative trends in the underlying business performance.
Constant currency impact is determined by comparing 2024 reported
amounts adjusted to exclude currency impact, calculated using 2023
monthly average exchange rates, to the actual 2023 reported
amounts.
Adjusted EPS (non-GAAP) and Adjusted EPS
excluding Acquired IPR&D (non-GAAP)
Adjusted earnings per share or Adjusted EPS (non-GAAP) is
calculated as Diluted income per share attributable to Bausch +
Lomb Corporation (“GAAP EPS”) (its most directly comparable GAAP
financial measure), adjusted for the per diluted share impact of
each adjustment made to reconcile Net income (loss) attributable to
Bausch + Lomb Corporation to Adjusted net income (non-GAAP) as
discussed above. Adjusted EPS excluding Acquired IPR&D
(non-GAAP) is Adjusted EPS (non-GAAP) further adjusted for the per
diluted share impact of Acquired IPR&D. Like Adjusted net
income (non-GAAP), Adjusted EPS (non-GAAP) and Adjusted EPS
excluding Acquired IPR&D (non-GAAP) excludes the impact of
certain items that may obscure trends in the company’s underlying
performance on a per share basis. By disclosing this non-GAAP
measure, it is management’s intention to provide investors with a
meaningful, supplemental comparison of the company’s results and
trends for the periods presented on a diluted share basis.
Accordingly, the company believes that Adjusted EPS (non-GAAP) and
Adjusted EPS excluding Acquired IPR&D (non-GAAP) are useful to
investors in their assessment of the company’s operating
performance, the valuation of the company and an investor’s return
on investment. It is also noted that, for the periods presented,
our GAAP EPS was significantly lower than our Adjusted EPS
(non-GAAP) and Adjusted EPS excluding Acquired IPR&D
(non-GAAP).
____________________________________ 1 This is a non-GAAP
measure or a non-GAAP ratio. For further information on non-GAAP
measures and non-GAAP ratios, please refer to the “Non-GAAP
Information” section of this news release. Please also refer to
tables at the end of this news release for a reconciliation of this
and other non-GAAP measures to the most directly comparable GAAP
measure. 2 The guidance in this news release is only effective as
of the date given, February 19, 2025, and will not be updated or
affirmed unless and until the company publicly announces updated or
affirmed guidance. Distribution or reference of this news release
following February 19, 2025, does not constitute the company
reaffirming guidance. See the “Forward-looking Statements” section
for further information. 3 Diluted weighted average shares includes
the dilutive impact of options, performance based restricted stock
units and restricted stock units, which are approximately 3,800,000
common shares for the 3 months ended December 31, 2024, and which
are excluded when calculating GAAP diluted loss per share because
the effect of including the impact would be anti-dilutive. Diluted
weighted average shares includes the dilutive impact of options,
performance based restricted stock units and restricted stock
units, which are approximately 2,200,000 common shares for the 12
months ended December 31, 2024, and which are excluded when
calculating GAAP diluted loss per share because the effect of
including the impact would be anti-dilutive.
© 2025 Bausch + Lomb.
FINANCIAL TABLES FOLLOW
Bausch + Lomb Corporation
Table 1
Consolidated Statements of
Operations
For the Three and Twelve Months Ended
December 31, 2024 and 2023
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions, except per share
amounts)
2024
2023
2024
2023
Revenues
Product sales
$
1,275
$
1,168
$
4,774
$
4,131
Other revenues
5
5
17
15
1,280
1,173
4,791
4,146
Expenses
Cost of goods sold (excluding amortization
and impairments of intangible assets)
499
461
1,868
1,640
Cost of other revenues
2
—
4
2
Selling, general and administrative
532
483
2,082
1,736
Research and development
93
80
343
324
Amortization of intangible assets
68
80
288
240
Other (income) expense, net
(1
)
20
44
74
1,193
1,124
4,629
4,016
Operating income
87
49
162
130
Interest income
5
3
15
15
Interest expense
(98
)
(99
)
(399
)
(283
)
Foreign exchange and other
(4
)
(10
)
(12
)
(28
)
Loss before provision for income
taxes
(10
)
(57
)
(234
)
(166
)
Benefit (provision) for income taxes
8
6
(71
)
(82
)
Net loss
(2
)
(51
)
(305
)
(248
)
Net income attributable to noncontrolling
interest
(1
)
(3
)
(12
)
(12
)
Net loss attributable to Bausch + Lomb
Corporation
$
(3
)
$
(54
)
$
(317
)
$
(260
)
Basic and diluted loss per share
attributable to Bausch + Lomb Corporation
$
(0.01
)
$
(0.15
)
$
(0.90
)
$
(0.74
)
Basic weighted-average common
shares
352.0
350.8
351.8
350.5
Diluted weighted-average common
shares
352.0
350.8
351.8
350.5
Bausch + Lomb Corporation
Table 2
Reconciliation of GAAP Net Loss and
Diluted Loss per Share Attributable to Bausch + Lomb Corporation to
Adjusted Net Income (non-GAAP) and Adjusted Earnings Per Share
(non-GAAP)
For the Three and Twelve Months Ended
December 31, 2024 and 2023
(unaudited)
Three Months Ended December
31,
2024
2023
(in millions, except per share
amounts)
Income (Expense)
Earnings per Share
Impact
Income (Expense)
Earnings per Share
Impact
Net loss and Diluted loss per share
attributable to Bausch + Lomb Corporation
$
(3
)
$
(0.01
)
$
(54
)
$
(0.15
)
Non-GAAP adjustments: (a)
Amortization of intangible assets
68
0.19
80
0.23
Restructuring, integration and
transformation costs
26
0.07
27
0.08
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
11
0.03
29
0.08
Separation costs and separation-related
costs
2
0.01
3
0.01
Other
5
0.01
4
0.01
Tax effect of non-GAAP adjustments
(20
)
(0.05
)
(6
)
(0.02
)
Total non-GAAP adjustments
92
0.26
137
0.39
Adjusted net income (non-GAAP) and
Adjusted earnings per
share (non-GAAP)
$
89
$
0.25
$
83
$
0.24
Acquired IPR&D
—
—
—
—
Adjusted net income excluding Acquired
IPR&D (non-GAAP) and Adjusted earnings per share excluding
Acquired IPR&D (non-GAAP)
$
89
$
0.25
$
83
$
0.24
Twelve Months Ended December
31,
2024
2023
(in millions, except per share
amounts)
Income (Expense)
Earnings per Share
Impact
Income (Expense)
Earnings per Share
Impact
Net loss and Diluted loss per share
attributable to Bausch + Lomb Corporation
$
(317
)
$
(0.90
)
$
(260
)
$
(0.74
)
Non-GAAP adjustments: (a)
Amortization of intangible assets
288
0.81
240
0.68
Asset impairments
5
0.01
—
—
Restructuring, integration and
transformation costs
99
0.28
123
0.35
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
77
0.22
66
0.19
Separation costs and separation-related
costs
4
0.01
10
0.03
Gain on sale of assets
(5
)
(0.01
)
—
—
Other
14
0.04
9
0.03
Tax effect of non-GAAP adjustments
39
0.12
70
0.19
Total non-GAAP adjustments
521
1.48
518
1.47
Adjusted net income (non-GAAP) and
Adjusted earnings per
share (non-GAAP)
$
204
$
0.58
$
258
$
0.73
Acquired IPR&D
18
0.05
—
—
Adjusted net income excluding Acquired
IPR&D (non-GAAP) and Adjusted earnings per share excluding
Acquired IPR&D (non-GAAP)
$
222
$
0.63
$
258
$
0.73
(a) The components of and further details
respecting each of these non-GAAP adjustments and the financial
statement line item to which each component relates can be found on
Table 2a.
Bausch + Lomb Corporation
Table 2a
Reconciliation of GAAP to Non-GAAP
Financial Information
For the Three and Twelve Months Ended
December 31, 2024 and 2023
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2024
2023
2024
2023
Cost of goods sold
reconciliation:
GAAP Cost of goods sold (excluding
amortization and impairments of intangible assets)
$
499
$
461
$
1,868
$
1,640
Fair value inventory step-up resulting
from acquisitions (a)
(21
)
(21
)
(82
)
(23
)
Adjusted cost of goods sold (excluding
amortization and impairments of intangible assets) (non-GAAP)
$
478
$
440
$
1,786
$
1,617
Selling, general and administrative
reconciliation:
GAAP Selling, general and
administrative
$
532
$
483
$
2,082
$
1,736
Separation-related costs (b)
—
(2
)
(1
)
(7
)
Transformation costs (c)
(22
)
(16
)
(75
)
(80
)
Other (d)
(1
)
—
(6
)
1
Adjusted selling, general and
administrative (non-GAAP)
$
509
$
465
$
2,000
$
1,650
Research and development
reconciliation:
GAAP Research and development
$
93
$
80
$
343
$
324
Separation-related costs (b)
—
(1
)
(1
)
(2
)
Adjusted research and development
(non-GAAP)
$
93
$
79
$
342
$
322
Amortization of intangible assets
reconciliation:
GAAP Amortization of intangible assets
$
68
$
80
$
288
$
240
Amortization of intangible assets (e)
(68
)
(80
)
(288
)
(240
)
Adjusted amortization of intangible assets
(non-GAAP)
$
—
$
—
$
—
$
—
Other expense, net
reconciliation:
GAAP Other (income) expense, net
$
(1
)
$
20
$
44
$
74
Litigation and other matters (d)
(3
)
(1
)
(5
)
(3
)
Restructuring and integration costs
(c)
(4
)
(11
)
(24
)
(43
)
Asset impairments (f)
—
—
(5
)
—
Separation costs (b)
(2
)
—
(2
)
(1
)
Acquisition-related contingent
consideration (a)
11
(2
)
9
(2
)
Acquisition-related costs (a)
(1
)
(6
)
(4
)
(25
)
Gain on sale of assets (g)
—
—
5
—
Adjusted other expense, net (non-GAAP)
$
—
$
—
$
18
$
—
Interest expense
reconciliation:
GAAP Interest expense
$
(98
)
$
(99
)
$
(399
)
$
(283
)
Acquisition-related financing costs
(a)
—
—
—
16
Adjusted interest expense (non-GAAP)
$
(98
)
$
(99
)
$
(399
)
$
(267
)
Foreign exchange and other
reconciliation:
GAAP Foreign exchange and other
$
(4
)
$
(10
)
$
(12
)
$
(28
)
Other (d)
1
3
3
7
Adjusted foreign exchange and other
(non-GAAP)
$
(3
)
$
(7
)
$
(9
)
$
(21
)
Provision for income taxes
reconciliation:
GAAP Benefit (provision) for income
taxes
$
8
$
6
$
(71
)
$
(82
)
Tax effect of non-GAAP adjustments (h)
(20
)
(6
)
39
70
Adjusted provision for income taxes
(non-GAAP)
$
(12
)
$
—
$
(32
)
$
(12
)
(a) Represents the four components of the
non-GAAP adjustment of “Acquisition-related costs and adjustments
(excluding amortization of intangible assets)” (see Table 2).
(b) Represents the three components of the
non-GAAP adjustment of “Separation costs and separation-related
costs” (see Table 2).
(c) Represents the two components of the
non-GAAP adjustment of “Restructuring, integration and
transformation costs” (see Table 2).
(d) Represents the three components of the
non-GAAP adjustment of “Other” (see Table 2).
(e) Represents the sole component of the
non-GAAP adjustment of “Amortization of intangible assets” (see
Table 2).
(f) Represents the sole component of the
non-GAAP adjustment of “Asset impairments” (see Table 2).
(g) Represents the sole component of the
non-GAAP adjustment of “Gain on sale of assets” (see Table 2).
(h) Represents the sole component of the
non-GAAP adjustment of “Tax effect of non-GAAP adjustments” (see
Table 2).
Bausch + Lomb Corporation
Table 2b
Reconciliation of GAAP Net Loss to
Adjusted EBITDA (non-GAAP)
For the Three and Twelve Months Ended
December 31, 2024 and 2023
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2024
2023
2024
2023
Net loss attributable to Bausch + Lomb
Corporation
$
(3
)
$
(54
)
$
(317
)
$
(260
)
Interest expense, net
93
96
384
268
(Benefit) provision for income taxes
(8
)
(6
)
71
82
Depreciation and amortization of
intangible assets
106
116
436
382
EBITDA
188
152
574
472
Adjustments:
Asset impairments
—
—
5
—
Restructuring, integration and
transformation costs
26
27
99
123
Acquisition-related costs and adjustments
(excluding amortization of intangible assets)
11
29
77
50
Share-based compensation
27
16
92
74
Separation and Separation-related
costs
2
3
4
10
Other non-GAAP adjustments:
Gain on sale of assets
—
—
(5
)
—
Other
5
4
14
9
Adjusted EBITDA (non-GAAP)
$
259
$
231
$
860
$
738
Acquired IPR&D
—
—
18
—
Adjusted EBITDA excluding Acquired
IPR&D (non-GAAP)
$
259
$
231
$
878
$
738
Bausch + Lomb Corporation
Table 3
Constant Currency Revenue (non-GAAP)
and Constant Currency Revenue Growth (non-GAAP) - by
Segment
For the Three and Twelve Months Ended
December 31, 2024 and 2023
(unaudited)
Calculation of Constant
Currency Revenue for the Three Months Ended
December 31, 2024
December 31, 2023
Change in Revenue as
Reported
Change in
Constant Currency Revenue
(Non-GAAP) (b)
Revenue
as
Reported
Changes in Exchange Rates
(a)
Constant Currency
Revenue
(Non-GAAP) (b)
Revenue
as
Reported
(in millions)
Amount
Pct.
Amount
Pct.
Vision Care
$
723
$
12
$
735
$
662
$
61
9
%
$
73
11
%
Surgical
231
3
234
204
27
13
%
30
15
%
Pharmaceuticals
326
2
328
307
19
6
%
21
7
%
Total revenues
$
1,280
$
17
$
1,297
$
1,173
$
107
9
%
$
124
11
%
Calculation of Constant
Currency Revenue for the Twelve Months Ended
December 31, 2024
December 31, 2023
Change in Revenue as
Reported
Change in
Constant Currency Revenue
(Non-GAAP) (b)
Revenue
as
Reported
Changes in Exchange Rates
(a)
Constant Currency
Revenue
(Non-GAAP) (b)
Revenue
as
Reported
(in millions)
Amount
Pct.
Amount
Pct.
Vision Care
$
2,739
$
54
$
2,793
$
2,543
$
196
8
%
$
250
10
%
Surgical
843
9
852
767
76
10
%
85
11
%
Pharmaceuticals
1,209
6
1,215
836
373
45
%
379
45
%
Total revenues
$
4,791
$
69
$
4,860
$
4,146
$
645
16
%
$
714
17
%
(a) The impact for changes in foreign
currency exchange rates is determined as the difference in the
current period reported revenues at their current period currency
exchange rates and the current period reported revenues revalued
using the monthly average currency exchange rates during the
comparable prior period.
(b) To supplement the financial measures
prepared in accordance with GAAP, the Company uses certain non-GAAP
financial measures and ratios. For additional information about the
Company’s use of such non-GAAP financial measures and ratios, refer
to the “Non-GAAP Information” section in the body of the news
release to which these tables are attached. Constant currency
revenue (non-GAAP) for the three and twelve months ended December
31, 2024 is calculated as revenue as reported adjusted for the
impact for changes in exchange rates (previously defined in this
news release). Change in constant currency revenue (non-GAAP) is
calculated as the difference between constant currency revenue for
the current period and revenue as reported for the comparative
period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219537971/en/
Media Contact: T.J. Crawford tj.crawford@bausch.com (908)
705-2851
Investor Contact: George Gadkowski
george.gadkowski@bausch.com (877) 354-3705 (toll free) (908)
927-0735
Bausch plus Lomb (NYSE:BLCO)
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