Exhibit 99.1
Harvard Bioscience Announces Third Quarter 2021 Financial Results
Strong double digit revenue growth, solid margin performance despite global supply chain disruptions
| • | Revenue up 23% year-over-year as sales momentum continues |
| • | Pre-clinical product revenue up 28% |
| • | Cellular and Molecular Technologies (CMT) product revenue up 19% |
HOLLISTON, Mass., November 3, 2021 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc. (Nasdaq: HBIO) (the “Company”) today announced financial results for the period ended September 30, 2021.
Jim Green, Chairman and CEO said, “The positive trends we reported in the first half of 2021 have carried through with our strong top line performance in Q3. Demand for our pre-clinical products was very strong, with revenue up 28% over prior year, and also up significantly over pre-Covid levels. Our CMT products also experienced meaningful growth, up 19% over prior year as academic lab sales continue to recover. Operating income was adversely impacted by increased material, freight and labor costs associated with ongoing global supply disruptions.”
Mr. Green concluded, “We expect revenue growth of 15% to 17% for 2021 compared to 2020 based on sales momentum, up from prior expectations of 12% to 15%. Although supply disruptions are forcing extra costs in the short term, we still expect adjusted operating margin expansion to the mid-teens for the year.”
| Quarterly Financial Results Summary | Q3'21 | Q3'20 | ||||||||
| Revenues | $ | 29.7 | million | $ | 24.0 | million | ||||
| Operating Income (GAAP) | $ | 0.5 | million | $ | 0.2 | million | ||||
| Adjusted Operating Income | $ | 3.9 | million | $ | 3.6 | million | ||||
| Operating Margin (GAAP) | 1.8 | % | 0.8 | % | ||||||
| Adjusted Operating Margin | 13.3 | % | 14.8 | % | ||||||
| Loss Per Share (GAAP) | $ | (0.00) | $ | (0.03) | ||||||
| Adjusted Diluted Earnings Per Share | $ | 0.06 | $ | 0.04 | ||||||
| Net Debt* | $ | 40.9 | million | $ | 41.6 | million | ||||
* Debt outstanding less cash and cash equivalents
For more details on Q3 performance, a slide presentation that will be referenced during the webcast will be posted to our Investor Relations website shortly before the webcast begins.
Please refer to the exhibits below for a reconciliation of certain non-GAAP to GAAP financial measures, including operating income, net income and loss, diluted earnings per share and adjusted EBITDA. Please see “Use of Non-GAAP Financial Information” for additional information regarding our use of such adjusted financial information.
Webcast and Conference Call Details
Harvard Bioscience will be hosting a conference call and webcast today at 8:00 a.m. Eastern Time. You can access the live conference call by dialing the following phone numbers: toll-free 1 (877) 303-7611 or international 1 (970) 315-0445 and referencing the conference ID# 8391005.
The conference call will be simultaneously webcast and can be accessed through the Harvard Bioscience website. To listen to the webcast, log on to the webcast at: http://investor.harvardbioscience.com/ and click on the Earnings Call icon.
Use of Non-GAAP Financial Information
In this press release, we have included non-GAAP financial information including adjusted operating income, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA. We believe that this non-GAAP financial information provides investors with an enhanced understanding of the underlying operations of the business. For the periods presented, these non-GAAP financial measures have excluded certain expenses and income primarily resulting from purchase accounting or events that we do not believe are related to the underlying operations of the business such as amortization of intangibles related to acquisitions, costs related to acquisition, disposition and integration initiatives, impairment charges, severance, restructuring and other business transformation expenses, and stock-based compensation expense. They also exclude the tax impact of the reconciling items. This non-GAAP financial information approximates information used by our management to internally evaluate the operating results of the Company. Tabular reconciliations of our adjusted operating income, adjusted net income (loss), adjusted earnings (loss) per diluted share, and adjusted EBITDA are included as exhibits below in this press release.
The non-GAAP financial information provided in this press release should be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP and may be different than other companies’ non-GAAP financial information.
About Harvard Bioscience
Harvard Bioscience is a leading developer, manufacturer and seller of technologies, products and services that enable fundamental research, discovery, and pre-clinical testing for drug development. Our customers range from renowned academic institutions and government laboratories, to the world’s leading pharmaceutical, biotechnology and contract research organizations. With operations in North America, Europe, and China, we sell through a combination of direct and distribution channels to customers around the world.
For more information, please visit our website at www.harvardbioscience.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," "guidance," "objectives," "optimistic," "potential," "future," "expects," "plans," "estimates," "continue," "drive," "strategy," "potential," "potentially," "growth," "long-term," "projects," "projected," "intends," "believes," "goals," "sees," "seek," "develop" "possible" "new," "emerging," "opportunity," "pursue" and similar expressions that do not relate to historical matters. Forward-looking statements in this press release or that may be made during our conference call may include, but are not limited to, statements or inferences about the Company's or management's beliefs or expectations, the Company's anticipated future revenues and earnings, the strength of the Company's market position and business model, industry outlook, the impact of the COVID-19 pandemic on the Company’s business, the Company's business strategy, the positioning of the Company for growth, the market demand and opportunity for the Company's current products, or products it is developing or intends to develop, and the Company's plans, objectives and intentions that are not historical facts. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Investors should note that many factors, as more fully described under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, and in our other filings with the Securities and Exchange Commission and as otherwise enumerated herein or therein may cause the Company's actual results to differ materially from those in the forward-looking statements. The forward-looking statements in this press release are qualified by these risk factors. The Company's results may also be affected by factors of which the Company is not currently aware. The Company may not update these forward-looking statements, even though its situation may change in the future, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.
For investor inquiries, please contact Michael A. Rossi, Chief Financial Officer at (508) 893-8999.
Exhibit 1
HARVARD BIOSCIENCE, INC.
Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
| Revenues | $ | 29,663 | $ | 24,037 | $ | 85,849 | $ | 71,116 | ||||||||
| Cost of revenues | 13,355 | 10,542 | 37,757 | 30,783 | ||||||||||||
| Gross profit | 16,308 | 13,495 | 48,092 | 40,333 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing expenses | 6,183 | 4,588 | 17,299 | 14,446 | ||||||||||||
| General and administrative expenses | 5,458 | 5,399 | 18,190 | 17,828 | ||||||||||||
| Research and development expenses | 2,660 | 1,949 | 7,848 | 6,336 | ||||||||||||
| Amortization of intangible assets | 1,459 | 1,377 | 4,388 | 4,258 | ||||||||||||
| Total operating expenses | 15,760 | 13,313 | 47,725 | 42,868 | ||||||||||||
| Operating income | 548 | 182 | 367 | (2,535 | ) | |||||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (373 | ) | (1,205 | ) | (1,161 | ) | (3,737 | ) | ||||||||
| Other expense, net | (130 | ) | (392 | ) | (477 | ) | (472 | ) | ||||||||
| Total other expense | (503 | ) | (1,597 | ) | (1,638 | ) | (4,209 | ) | ||||||||
| Income (loss) before income taxes | 45 | (1,415 | ) | (1,271 | ) | (6,744 | ) | |||||||||
| Income tax expense (benefit) | 215 | (317 | ) | (22 | ) | 451 | ||||||||||
| Net loss | $ | (170 | ) | $ | (1,098 | ) | $ | (1,249 | ) | $ | (7,195 | ) | ||||
| Loss per common share: | ||||||||||||||||
| Basic and diluted | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.19 | ) | ||||
| Weighted-average common shares: | ||||||||||||||||
| Basic and diluted | 40,754 | 38,920 | 40,202 | 38,540 | ||||||||||||
Exhibit 2
HARVARD BIOSCIENCE, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
| September 30, 2021 | December 31, 2020 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 5,548 | $ | 8,317 | ||||
| Accounts receivables | 18,340 | 17,766 | ||||||
| Inventories | 25,978 | 22,262 | ||||||
| Other current assets | 5,820 | 3,355 | ||||||
| Total current assets | 55,686 | 51,700 | ||||||
| Property, plant and equipment | 3,453 | 3,960 | ||||||
| Goodwill and other intangibles | 86,928 | 91,741 | ||||||
| Other long-term assets | 7,805 | 8,853 | ||||||
| Total assets | $ | 153,872 | $ | 156,254 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current portion, long-term debt | $ | 2,470 | $ | 1,721 | ||||
| Other current liabilities | 21,036 | 19,332 | ||||||
| Total current liabilities | 23,506 | 21,053 | ||||||
| Long-term debt | 42,740 | 46,286 | ||||||
| Other long-term liabilities | 10,739 | 12,234 | ||||||
| Stockholders’ equity | 76,887 | 76,681 | ||||||
| Total liabilities and stockholders’ equity | $ | 153,872 | $ | 156,254 | ||||
Exhibit 3
HARVARD BIOSCIENCE, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
| Nine Months Ended | ||||||||
| September 30, 2021 | September 30, 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,249 | ) | $ | (7,195 | ) | ||
| Adjustments to operating cash flows | 8,547 | 8,676 | ||||||
| Changes in operating assets and liabilities | (6,153 | ) | 5,360 | |||||
| Net cash provided by operating activities | 1,145 | 6,841 | ||||||
| Cash flows from investing activities: | ||||||||
| Additions to property, plant and equipment | (837 | ) | (1,088 | ) | ||||
| Addition to intangible assets | (150 | ) | - | |||||
| Net cash used in investing activities | (987 | ) | (1,088 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from borrowings | 2,500 | 9,615 | ||||||
| Repayments of debt | (5,500 | ) | (20,251 | ) | ||||
| Payments of debt issuance costs | (102 | ) | - | |||||
| Proceeds from exercise of stock options | 2,909 | 194 | ||||||
| Taxes related to net share settlemenrt of equity awards | (2,653 | ) | (882 | ) | ||||
| Net cash used in financing activities | (2,846 | ) | (11,324 | ) | ||||
| Effect of exchange rate changes on cash | (81 | ) | 42 | |||||
| Decrease in cash and cash equivalents | (2,769 | ) | (5,529 | ) | ||||
| Cash and cash equivalents at the beginning of period | 8,317 | 8,335 | ||||||
| Cash and cash equivalents at the end of period | $ | 5,548 | $ | 2,806 | ||||
Exhibit 4
HARVARD BIOSCIENCE, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
Three Months Ended September 30, 2021
(in thousands, except per share data)
| Stock-Based | Acquired Assets | Restructuring, | Income | |||||||||||||||||||||
| Statement of Operations | GAAP | Compensation | Amortization | Transformation | Taxes | ADJUSTED | ||||||||||||||||||
| Revenues | $ | 29,663 | - | - | - | - | $ | 29,663 | ||||||||||||||||
| Cost of revenues | 13,355 | (32 | ) | (15 | ) | (94 | ) | - | 13,214 | |||||||||||||||
| Gross profit | 16,308 | 32 | 15 | 94 | - | 16,449 | ||||||||||||||||||
| Gross Margin | 55.0 | % | 55.5 | % | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Sales and marketing expenses | 6,183 | (149 | ) | (2 | ) | (261 | ) | - | 5,771 | |||||||||||||||
| General and administrative expenses | 5,458 | (790 | ) | (16 | ) | (426 | ) | - | 4,226 | |||||||||||||||
| Research and development expenses | 2,660 | (33 | ) | (10 | ) | (113 | ) | - | 2,504 | |||||||||||||||
| Amortization of intangible assets | 1,459 | - | (1,459 | ) | - | - | - | |||||||||||||||||
| Total operating expenses | 15,760 | (972 | ) | (1,487 | ) | (800 | ) | - | 12,501 | |||||||||||||||
| Operating Expenses - % of Revenue | 53.1 | % | 42.1 | % | ||||||||||||||||||||
| Operating income | 548 | 1,004 | 1,502 | 894 | - | 3,948 | ||||||||||||||||||
| Operating Margin | 1.8 | % | 13.3 | % | ||||||||||||||||||||
| Other (expense) income: | ||||||||||||||||||||||||
| Interest expense | (373 | ) | - | - | - | - | (373 | ) | ||||||||||||||||
| Other expense, net | (130 | ) | - | - | - | - | (130 | ) | ||||||||||||||||
| Total other expense | (503 | ) | - | - | - | - | (503 | ) | ||||||||||||||||
| Income before income taxes | 45 | 1,004 | 1,502 | 894 | - | 3,445 | ||||||||||||||||||
| Income tax expense | 215 | - | - | - | 580 | 795 | ||||||||||||||||||
| Net (loss) income | $ | (170 | ) | $ | 1,004 | $ | 1,502 | $ | 894 | $ | (580 | ) | $ | 2,650 | ||||||||||
| (Loss) income per share | $ | (0.00 | ) | $ | 0.06 | |||||||||||||||||||
| Diluted weighted average common shares | 40,754 | 43,500 | ||||||||||||||||||||||
Exhibit 4.1
HARVARD BIOSCIENCE, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
Three Months Ended September 30, 2020
(in thousands, except per share data)
| Stock-Based | Acquired Assets | Restructuring, | Income | |||||||||||||||||||||
| Statement of Operations | GAAP | Compensation | Amortization | Transformation | Taxes | ADJUSTED | ||||||||||||||||||
| Revenues | $ | 24,037 | - | - | - | - | $ | 24,037 | ||||||||||||||||
| Cost of revenues | 10,542 | (18 | ) | (19 | ) | (19 | ) | - | 10,486 | |||||||||||||||
| Gross profit | 13,495 | 18 | 19 | 19 | - | 13,551 | ||||||||||||||||||
| Gross Margin | 56.1 | % | 56.4 | % | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Sales and marketing expenses | 4,588 | (91 | ) | (2 | ) | (15 | ) | - | 4,480 | |||||||||||||||
| General and administrative expenses | 5,399 | (908 | ) | (18 | ) | (834 | ) | - | 3,639 | |||||||||||||||
| Research and development expenses | 1,949 | (62 | ) | (13 | ) | (9 | ) | - | 1,865 | |||||||||||||||
| Amortization of intangible assets | 1,377 | - | (1,377 | ) | - | - | - | |||||||||||||||||
| Total operating expenses | 13,313 | (1,061 | ) | (1,410 | ) | (858 | ) | - | 9,984 | |||||||||||||||
| Operating Expenses - % of Revenue | 55.4 | % | 41.5 | % | ||||||||||||||||||||
| Operating income | 182 | 1,079 | 1,429 | 877 | - | 3,567 | ||||||||||||||||||
| Operating Margin | 0.8 | % | 14.8 | % | ||||||||||||||||||||
| Other (expense) income: | ||||||||||||||||||||||||
| Interest expense | (1,205 | ) | - | - | - | - | (1,205 | ) | ||||||||||||||||
| Other expense, net | (392 | ) | - | - | - | - | (392 | ) | ||||||||||||||||
| Total other expense | (1,597 | ) | - | - | - | - | (1,597 | ) | ||||||||||||||||
| (Loss) income before income taxes | (1,415 | ) | 1,079 | 1,429 | 877 | - | 1,970 | |||||||||||||||||
| Income tax (benefit) expense | (317 | ) | - | - | - | 823 | 506 | |||||||||||||||||
| Net (loss) income | $ | (1,098 | ) | $ | 1,079 | $ | 1,429 | $ | 877 | $ | (823 | ) | $ | 1,464 | ||||||||||
| (Loss) income per share | $ | (0.03 | ) | $ | 0.04 | |||||||||||||||||||
| Diluted weighted average common shares | 38,920 | 40,307 | ||||||||||||||||||||||
Exhibit 4.2
HARVARD BIOSCIENCE, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
Nine Months Ended September 30, 2021
(in thousands, except per share data)
| Stock-Based | Acquired Assets | Restructuring, | Income | |||||||||||||||||||||
| Statement of Operations | GAAP | Compensation | Amortization | Transformation | Taxes | ADJUSTED | ||||||||||||||||||
| Revenues | $ | 85,849 | - | - | - | - | $ | 85,849 | ||||||||||||||||
| Cost of revenues | 37,757 | (83 | ) | (51 | ) | (247 | ) | - | 37,376 | |||||||||||||||
| Gross profit | 48,092 | 83 | 51 | 247 | - | 48,473 | ||||||||||||||||||
| Gross Margin | 56.0 | % | 56.5 | % | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Sales and marketing expenses | 17,299 | (373 | ) | (6 | ) | (375 | ) | - | 16,545 | |||||||||||||||
| General and administrative expenses | 18,190 | (2,593 | ) | (49 | ) | (2,380 | ) | - | 13,168 | |||||||||||||||
| Research and development expenses | 7,848 | (87 | ) | (32 | ) | (408 | ) | - | 7,321 | |||||||||||||||
| Amortization of intangible assets | 4,388 | - | (4,388 | ) | - | - | - | |||||||||||||||||
| Total operating expenses | 47,725 | (3,053 | ) | (4,475 | ) | (3,163 | ) | - | 37,034 | |||||||||||||||
| Operating Expenses - % of Revenue | 55.6 | % | 43.1 | % | ||||||||||||||||||||
| Operating (loss) income | 367 | 3,136 | 4,526 | 3,410 | - | 11,439 | ||||||||||||||||||
| Operating Margin | 0.4 | % | 13.3 | % | ||||||||||||||||||||
| Other (expense) income: | ||||||||||||||||||||||||
| Interest expense | (1,161 | ) | - | - | - | - | (1,161 | ) | ||||||||||||||||
| Other expense, net | (477 | ) | - | - | - | - | (477 | ) | ||||||||||||||||
| Total other expense | (1,638 | ) | - | - | - | - | (1,638 | ) | ||||||||||||||||
| (Loss) income before income taxes | (1,271 | ) | 3,136 | 4,526 | 3,410 | - | 9,801 | |||||||||||||||||
| Income tax (benefit) expense | (22 | ) | - | - | - | 2,365 | 2,343 | |||||||||||||||||
| Net (loss) income | $ | (1,249 | ) | $ | 3,136 | $ | 4,526 | $ | 3,410 | $ | (2,365 | ) | $ | 7,458 | ||||||||||
| (Loss) income per share | $ | (0.03 | ) | $ | 0.17 | |||||||||||||||||||
| Diluted weighted average common shares | 40,202 | 43,113 | ||||||||||||||||||||||
Exhibit 4.3
HARVARD BIOSCIENCE, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
Nine Months Ended September 30, 2020
(in thousands, except per share data)
| Stock-Based | Acquired Assets | Restructuring, | Income | |||||||||||||||||||||
| Statement of Operations | GAAP | Compensation | Amortization | Transformation | Taxes | ADJUSTED | ||||||||||||||||||
| Revenues | $ | 71,116 | - | - | - | - | $ | 71,116 | ||||||||||||||||
| Cost of revenues | 30,783 | (43 | ) | (59 | ) | (21 | ) | - | 30,660 | |||||||||||||||
| Gross profit | 40,333 | 43 | 59 | 21 | - | 40,456 | ||||||||||||||||||
| Gross Margin | 56.7 | % | 56.9 | % | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Sales and marketing expenses | 14,446 | (205 | ) | (6 | ) | (125 | ) | - | 14,110 | |||||||||||||||
| General and administrative expenses | 17,828 | (2,248 | ) | (52 | ) | (3,480 | ) | - | 12,048 | |||||||||||||||
| Research and development expenses | 6,336 | (145 | ) | (44 | ) | (7 | ) | - | 6,140 | |||||||||||||||
| Amortization of intangible assets | 4,258 | - | (4,258 | ) | - | - | - | |||||||||||||||||
| Total operating expenses | 42,868 | (2,598 | ) | (4,360 | ) | (3,612 | ) | - | 32,298 | |||||||||||||||
| Operating Expenses - % of Revenue | 60.3 | % | 45.4 | % | ||||||||||||||||||||
| Operating (loss) income | (2,535 | ) | 2,641 | 4,419 | 3,633 | - | 8,158 | |||||||||||||||||
| Operating Margin | -3.6 | % | 11.5 | % | ||||||||||||||||||||
| Other (expense) income: | ||||||||||||||||||||||||
| Interest expense | (3,737 | ) | - | - | - | - | (3,737 | ) | ||||||||||||||||
| Other expense, net | (472 | ) | - | - | - | - | (472 | ) | ||||||||||||||||
| Total other expense | (4,209 | ) | - | - | - | - | (4,209 | ) | ||||||||||||||||
| (Loss) income before income taxes | (6,744 | ) | 2,641 | 4,419 | 3,633 | - | 3,949 | |||||||||||||||||
| Income tax expense | 451 | - | - | - | 435 | 886 | ||||||||||||||||||
| Net (loss) income | $ | (7,195 | ) | $ | 2,641 | $ | 4,419 | $ | 3,633 | $ | (435 | ) | $ | 3,063 | ||||||||||
| (Loss) income per share | $ | (0.19 | ) | $ | 0.08 | |||||||||||||||||||
| Diluted weighted average common shares | 38,540 | 39,824 | ||||||||||||||||||||||
Exhibit 5
| HARVARD BIOSCIENCE, INC. | ||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
| Operating income | $ | 548 | $ | 182 | $ | 367 | $ | (2,535 | ) | |||||||
| Amortization of intangible assets | 1,459 | 1,377 | 4,388 | 4,258 | ||||||||||||
| Depreciation expense | 420 | 471 | 1,311 | 1,453 | ||||||||||||
| Stock-based compensation expense | 1,004 | 1,079 | 3,136 | 2,641 | ||||||||||||
| Restructuring and transformation costs | 893 | 877 | 3,408 | 3,635 | ||||||||||||
| Adjusted EBITDA | $ | 4,324 | $ | 3,986 | $ | 12,610 | $ | 9,452 | ||||||||