SAN DIEGO--(BUSINESS WIRE)--Nov. 6, 2018--
Quidel Corporation (NASDAQ: QDEL), a provider of rapid diagnostic
testing solutions, cellular-based virology assays and molecular
diagnostic systems, announced today financial results for the third
quarter ended September 30, 2018.
Third Quarter 2018 Highlights
-
Total revenue was $117.4 million as compared to $50.9 million in the
third quarter of 2017.
-
Cardiac Immunoassay revenue was $65.3 million.
-
Influenza revenue was $21.6 million as compared to $23.1 million in
the third quarter of 2017.
-
Reported GAAP EPS of $0.27 per diluted share in the third quarter of
2018, as compared to $(0.16) per share in the third quarter of 2017.
Excluding the one-time costs associated with the loss on
extinguishment of debt, diluted EPS was $0.30 for the third quarter of
2018. Reported non-GAAP EPS of $0.59 per diluted share in the third
quarter of 2018, as compared to $0.17 per diluted share in the third
quarter of 2017.
-
Received FDA clearance and CLIA waiver for Sofia® 2 Lyme FIA from
finger-stick whole blood specimens.
-
Received FDA clearance for Solana® Bordetella Complete® molecular
diagnostic assay for pertussis (whooping cough), parapertussis
infections.
Third Quarter 2018 Results
Total revenue for the third quarter of 2018 was $117.4 million, versus
$50.9 million for the third quarter of 2017. The 131% increase in sales
from the third quarter of 2018 was driven by incremental revenue from
the acquired Cardiac Immunoassay business and 60% revenue growth from
our Molecular Diagnostic Solutions. This was slightly offset by a 3%
decline in the Rapid Immunoassay business, due to the timing of
Influenza orders in the third quarter of 2018 as compared to the third
quarter of 2017.
Cardiac Immunoassay revenue, which includes revenue from the Triage,
Triage Toxicology and Beckman BNP products acquired in October 2017,
totaled $65.3 million in the third quarter of 2018, growing 4% from the
third quarter of 2017. Rapid Immunoassay product revenue (which includes
QuickVue, Sofia and Eye Health products) decreased 3% in the third
quarter of 2018 to $35.4 million, primarily due to a $1.5 million
decrease in Influenza revenue from the third quarter of 2017. Molecular
Diagnostic Solutions revenue increased 60% to $4.5 million, led by 88%
revenue growth from Solana, our instrumented molecular diagnostic
system. Specialized Diagnostic Solutions revenue, which includes revenue
from Virology/DHI, Specialty and Other, increased 5% from the third
quarter of 2017 to $12.3 million.
“We delivered another strong quarter, with continued commercial traction
in the Cardiac Immunoassay product segment. In addition, integration of
the acquired businesses is going well, and the programs to deliver
operational synergies remain on track," said Douglas Bryant, president
and CEO of Quidel Corporation. "We saw growth in Sofia and Molecular,
and a 19% increase year-over-year in influenza outsales from
distributors to our customers. As a result, inventories at distribution
are low, which positions us nicely for Q4 influenza revenue in advance
of the season. Importantly, we also launched our CLIA-waived Sofia 2
Lyme whole blood diagnostic assay. Although approval was received late
in the Lyme season, the early indications from the market are positive,
and we expect to build on that momentum going into the 2019 Lyme season.
As we move into the fourth quarter, we are well positioned and remain
focused on delivering long-term growth.”
Gross Profit in the third quarter of 2018 increased to $69.6 million,
driven by the addition of the Cardiac Immunoassay products from the
acquisition of the Triage and BNP Businesses in October 2017. Overall,
gross margin for the quarter was 59% as compared to 58% for the same
period last year, due to lower amortization of intangibles on our legacy
Quidel business. R&D expense increased by $5.6 million in the third
quarter as compared to the same period last year, primarily due to
incremental expense for the Triage business, as well as increased
investment in the Savanna molecular diagnostic platform. Sales and
Marketing expense increased by $12.9 million in the third quarter of
2018, as compared to the third quarter of 2017, largely due to expenses
associated with the global infrastructure for the Triage business. G&A
expense increased by $4.0 million in the quarter, primarily due to
additional costs associated with the Triage business. As a percentage of
revenue, operating expenses before integration costs were 43% in the
third quarter of 2018 as compared to 54% in the third quarter of 2017.
Acquisition and Integration Costs in the quarter decreased by $2.1
million to $2.5 million, as more of the global operations become fully
integrated into the business. The loss on extinguishment of debt
represents one-time costs of $1.3 million related to the partial write
off of unamortized debt issuance costs related to the Senior Credit
Facility.
Net income for the third quarter of 2018 was $10.8 million, or $0.27 per
diluted share, as compared to a net loss of $5.5 million, or $(0.16) per
share, for the third quarter of 2017. Excluding the one-time costs
associated with the loss on extinguishment of debt, diluted EPS was
$0.30 for the third quarter of 2018. On a non-GAAP basis, net income for
the third quarter of 2018 was $25.5 million, or $0.59 per diluted share,
as compared to net income of $5.9 million, or $0.17 per diluted share,
for the same period in 2017.
Results for the Nine Months Ended September 30, 2018
Total revenue for the nine-month period ended September 30, 2018 was
$389.7 million, versus $162.9 million for the same period in 2017. The
139% increase in sales was driven by incremental revenue from the
acquired Cardiac Immunoassay business, 14% revenue growth from the Rapid
Immunoassay business and 48% revenue growth from our Molecular
Diagnostic Solutions.
Cardiac Immunoassay revenue, which includes revenues from the Triage,
Triage Toxicology and Beckman BNP products acquired in October 2017,
totaled $203.6 million in the nine-month period ended September 30,
2018. Rapid Immunoassay product revenue increased 14% in the nine-month
period ended September 30, 2018 to $132.7 million, led by a 60% rise in
Sofia revenue, while QuickVue sales declined 28% from the same period of
2017. Molecular Diagnostic Solutions revenue increased 48% to $13.5
million for the nine-month period ended September 30, 2018, led by 120%
revenue growth from Solana, our instrumented molecular diagnostic
system. Specialized Diagnostic Solutions revenue increased 6% from the
nine-month period ended September 30, 2018 to $39.9 million.
Influenza revenue for the nine months ended September 30, 2018 increased
24% to $91.7 million as compared to $74.0 million in the first nine
months of 2017.
Gross Profit in the nine-month period ended September 30, 2018 increased
to $233.6 million, the result of increased sales revenue from the
acquired Triage and BNP Businesses and improved product mix, with a
higher mix of Influenza products in the current year. Gross margin for
the nine-month period ended September 30, 2018 was flat to prior year,
at 60%. Included in the 2018 gross margin is the one-time impact of the
Triage/BNP inventory step-up of fair value which reduced the
consolidated gross margin by one percentage point. R&D expense increased
by $16.0 million in the nine-month period ended 2018 as compared to the
same period last year, primarily due to additional expenses associated
with the acquired Triage business, and additional investments in the
Savanna molecular diagnostic platform. Sales and Marketing expense
increased by $41.7 million in the nine-month period ended 2018, as
compared to the same period in 2017, largely due to incremental costs
associated with the Triage business, as well as higher compensation
costs associated with improved company performance. G&A expense
increased by $12.2 million, primarily due to costs associated with
Triage and BNP Businesses, as well as higher professional fees and
compensation expenses. As a percentage of revenue, operating expenses
before integration costs were 40% in the nine months ended September 30,
2018 as compared to 52% for the comparable nine-month period in the
prior year. Acquisition and Integration Costs were $10.9 million in the
period. The loss on extinguishment of debt includes one-time costs of
$6.0 million related to the partial write-off of unamortized debt
issuance costs related to the Senior Credit Facility, and $2.3 million
loss associated with the Convertible Senior Note exchange agreements.
Net income for the nine-month period ended September 30, 2018 was $41.7
million, or $1.08 per diluted share, as compared to net loss of $3.1
million, or $(0.09) per share, for the same period in 2017. Excluding
the one-time costs associated with the loss on extinguishment of debt,
diluted EPS was $1.24 for the nine-month period ended September 30,
2018. On a non-GAAP basis, net income for the nine months ended
September 30, 2018 was $95.2 million, or $2.24 per diluted share, as
compared to net income of $17.2 million, or $0.50 per diluted share, for
the same period in 2017.
Non-GAAP Financial Information
The Company is providing non-GAAP financial information to exclude the
effect of stock-based compensation, amortization of intangibles,
non-cash interest expense, impact of the valuation allowance for
deferred tax assets and certain non-recurring items on income and net
earnings per share as a supplement to its consolidated financial
statements, which are presented in accordance with generally accepted
accounting principles in the U.S., or GAAP.
Management is providing the adjusted gross profit, adjusted operating
income, adjusted net income and adjusted net earnings per share
information for the periods presented because it believes this enhances
the comparison of the Company’s financial performance from
period-to-period, and to that of its competitors. This press release is
not meant to be considered in isolation, or as a substitute for results
prepared in accordance with GAAP. A reconciliation of the non-GAAP
financial measures to the comparable GAAP measures is included in this
press release as part of the attached financial tables.
Conference Call Information
Quidel management will host a conference call to discuss the third
quarter 2018 results as well as other business matters today beginning
at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). During the
conference call, management may answer questions concerning business and
financial developments and trends. Quidel’s responses to these
questions, as well as other matters discussed during the conference
call, may contain or constitute material information that has not been
previously disclosed.
To participate in the live call by telephone from the U.S., dial
877-930-5791, or from outside the U.S. dial 253-336-7286, and enter the
audience pass code 802-9037.
A live webcast of the call can be accessed on the Investor Relations
section of the Quidel website (http://ir.quidel.com).
The website replay will be available for 14 days. The telephone replay
will be available for 48 hours beginning at 8:00 p.m. Eastern Time (5:00
p.m. Pacific Time) today by dialing 855-859-2056 from the U.S., or by
dialing 404-537-3406 for international callers, and entering pass code
802-9037.
About Quidel Corporation
Quidel Corporation serves to enhance the health and well-being of people
around the globe through the development of diagnostic solutions that
can lead to improved patient outcomes and provide economic benefits to
the healthcare system. Marketed under the Sofia®, QuickVue®, D3® Direct
Detection, Thyretain®, Triage® and InflammaDry® leading brand names, as
well as under the new Solana®, AmpliVue® and Lyra® molecular diagnostic
brands, Quidel’s products aid in the detection and diagnosis of many
critical diseases and conditions, including, among others, influenza,
respiratory syncytial virus, Strep A, herpes, pregnancy, thyroid disease
and fecal occult blood. Quidel's recently acquired Triage® system of
tests comprises a comprehensive test menu that provides rapid,
cost-effective treatment decisions at the point-of-care (POC), offering
a diverse immunoassay menu in a variety of tests to provide diagnostic
answers for quantitative BNP, CK-MB, d-dimer, myoglobin, troponin I and
qualitative TOX Drug Screen. Quidel’s research and development engine is
also developing a continuum of diagnostic solutions from advanced
immunoassay to molecular diagnostic tests to further improve the quality
of healthcare in physicians’ offices, hospital and reference
laboratories, and other alternate sites, like urgent care centers and
retail clinics, where healthcare is provided. For more information about
Quidel’s comprehensive product portfolio, visit quidel.com.
This press release contains forward-looking statements within the
meaning of the federal securities laws that involve material risks,
assumptions and uncertainties. Many possible events or factors could
affect our future financial results and performance, such that our
actual results and performance may differ materially from those that may
be described or implied in the forward-looking statements. As such, no
forward-looking statement can be guaranteed. Differences in actual
results and performance may arise as a result of a number of factors
including, without limitation; our reliance on sales of our influenza
diagnostic tests; fluctuations in our operating results resulting from
the timing of the onset, length and severity of cold and flu seasons,
seasonality, government and media attention focused on influenza and the
related potential impact on humans from novel influenza viruses, adverse
changes in competitive conditions in domestic and international markets,
the reimbursement system currently in place and future changes to that
system, changes in economic conditions in our domestic and international
markets, lower than anticipated market penetration of our products, the
quantity of our product in our distributors’ inventory or distribution
channels, changes in the buying patterns of our distributors, and
changes in the healthcare market and consolidation of our customer base;
our development and protection of proprietary technology rights; our
development of new technologies, products and markets; our reliance on a
limited number of key distributors; intellectual property risks,
including but not limited to, infringement litigation; our need for
additional funds to finance our capital or operating needs; the
financial soundness of our customers and suppliers; acceptance of our
products among physicians and other healthcare providers; competition
with other providers of diagnostic products; adverse actions or delays
in new product reviews or related to currently-marketed products by the
U.S. Food and Drug Administration (the “FDA”) or other regulatory
authorities or loss of any previously received regulatory approvals or
clearances; changes in government policies; our exposure to claims and
litigation, including litigation currently pending against us; costs of
or our failure to comply with government regulations in addition to FDA
regulations; compliance with government regulations relating to the
handling, storage and disposal of hazardous substances; third-party
reimbursement policies; our failure to comply with laws and regulations
relating to billing and payment for healthcare services; our ability to
meet demand for our products; interruptions in our supply of raw
materials; product defects; business risks not covered by insurance; our
exposure to cyber-based attacks and security breaches; competition for
and loss of management and key personnel; international risks, including
but not limited to, compliance with product registration requirements,
exposure to currency exchange fluctuations and foreign currency exchange
risk sharing arrangements, longer payment cycles, lower selling prices
and greater difficulty in collecting accounts receivable, reduced
protection of intellectual property rights, political and economic
instability, taxes, and diversion of lower priced international products
into U.S. markets; changes in tax rates and exposure to additional tax
liabilities or assessments; risks relating to the acquisition and
integration of the Triage and BNP Businesses; Alere’s failure to perform
under various transition agreements relating to our acquisition of the
Triage and BNP Businesses; that we may incur substantial costs to build
our information technology infrastructure to transition the Triage and
BNP Businesses; that we may have to write off goodwill relating to our
acquisition of the Triage and BNP Businesses; our ability to manage our
growth strategy; the level of our indebtedness; the amount of, and our
ability to repay, renew or extend, our outstanding debt and its impact
on our operations and our ability to obtain financing; that
substantially the Senior Credit Facility is secured by substantially all
of our assets; our prepayment requirements under the Senior Credit
Facility; the agreements for our indebtedness place operating and
financial restrictions on the Company; that an event of default could
trigger acceleration of our outstanding indebtedness; the effect on our
operating results from the trigger of the conditional conversion feature
of our Convertible Senior Notes; that we may incur additional
indebtedness; increases in interest rate relating to our variable rate
debt; dilution resulting from future sales of our equity; volatility in
our stock price; provisions in our charter documents, Delaware law and
the indenture governing our Convertible Senior Notes that might delay or
impede stockholder actions with respect to business combinations or
similar transactions; and our intention of not paying
dividends. Forward-looking statements typically are identified by the
use of terms such as “may,” “will,” “should,” “might,” “expect,”
“anticipate,” “estimate,” “plan,” “intend,” “goal,” “project,”
“strategy,” “future,” and similar words, although some forward-looking
statements are expressed differently. The risks described in reports and
registration statements that we file with the Securities and Exchange
Commission (the “SEC”) from time to time, should be carefully
considered. You are cautioned not to place undue reliance on these
forward-looking statements, which reflect management’s analysis only as
of the date of this press release. Except as required by law, we
undertake no obligation to publicly release the results of any revision
or update of these forward-looking statements, whether as a result of
new information, future events or otherwise.
|
QUIDEL CORPORATION
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Consolidated Statements of Operations:
|
|
2018
|
|
2017
|
|
Total revenues
|
|
$
|
117,399
|
|
|
$
|
50,894
|
|
|
Cost of sales
|
|
47,757
|
|
|
21,204
|
|
|
Gross profit
|
|
69,642
|
|
|
29,690
|
|
|
Research and development
|
|
13,103
|
|
|
7,468
|
|
|
Sales and marketing
|
|
26,504
|
|
|
13,588
|
|
|
General and administrative
|
|
10,620
|
|
|
6,580
|
|
|
Acquisition and integration costs
|
|
2,521
|
|
|
4,591
|
|
|
Total costs and expenses
|
|
52,748
|
|
|
32,227
|
|
|
Operating income (loss)
|
|
16,894
|
|
|
(2,537
|
)
|
|
Other expense, net:
|
|
|
|
|
|
Interest expense, net
|
|
(4,786
|
)
|
|
(2,784
|
)
|
|
Loss on extinguishment of debt
|
|
(1,297
|
)
|
|
—
|
|
|
Total other expense, net
|
|
(6,083
|
)
|
|
(2,784
|
)
|
|
Income (loss) before income taxes
|
|
10,811
|
|
|
(5,321
|
)
|
|
(Benefit) provision for income taxes
|
|
(11
|
)
|
|
204
|
|
|
Net income (loss)
|
|
$
|
10,822
|
|
|
$
|
(5,525
|
)
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
$
|
0.28
|
|
|
$
|
(0.16
|
)
|
|
Diluted earnings (loss) per share
|
|
$
|
0.27
|
|
|
$
|
(0.16
|
)
|
|
Shares used in basic per share calculation
|
|
39,290
|
|
|
33,913
|
|
|
Shares used in diluted per share calculation
|
|
42,889
|
|
|
33,913
|
|
|
|
|
|
|
|
|
Gross profit as a % of total revenues
|
|
59
|
%
|
|
58
|
%
|
|
Research and development as a % of total revenues
|
|
11
|
%
|
|
15
|
%
|
|
Sales and marketing as a % of total revenues
|
|
23
|
%
|
|
27
|
%
|
|
General and administrative as a % of total revenues
|
|
9
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
Consolidated net revenues by product category are as follows:
|
|
|
|
|
|
Rapid Immunoassay
|
|
$
|
35,366
|
|
|
$
|
36,458
|
|
|
Cardiac Immunoassay
|
|
65,287
|
|
|
—
|
|
|
Specialized Diagnostic Solutions
|
|
12,294
|
|
|
11,655
|
|
|
Molecular Diagnostic Solutions
|
|
4,452
|
|
|
2,781
|
|
|
Total revenues
|
|
$
|
117,399
|
|
|
$
|
50,894
|
|
|
|
|
|
|
|
|
Condensed balance sheet data:
|
|
9/30/2018
|
|
12/31/2017
|
|
Cash and cash equivalents
|
|
$
|
38,694
|
|
|
$
|
36,086
|
|
|
Accounts receivable, net
|
|
66,845
|
|
|
67,046
|
|
|
Inventories
|
|
63,309
|
|
|
67,078
|
|
|
Total assets
|
|
793,884
|
|
|
935,251
|
|
|
Short-term debt
|
|
54,046
|
|
|
20,184
|
|
|
Long-term debt
|
|
86,912
|
|
|
381,110
|
|
|
Stockholders’ equity
|
|
388,454
|
|
|
227,104
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
Consolidated Statements of Operations:
|
|
2018
|
|
2017
|
|
Total revenues
|
|
$
|
389,697
|
|
|
$
|
162,853
|
|
|
Cost of sales
|
|
156,116
|
|
|
65,838
|
|
|
Gross profit
|
|
233,581
|
|
|
97,015
|
|
|
Research and development
|
|
39,008
|
|
|
22,970
|
|
|
Sales and marketing
|
|
82,607
|
|
|
40,875
|
|
|
General and administrative
|
|
32,652
|
|
|
20,483
|
|
|
Acquisition and integration costs
|
|
10,923
|
|
|
7,022
|
|
|
Total costs and expenses
|
|
165,190
|
|
|
91,350
|
|
|
Operating income
|
|
68,391
|
|
|
5,665
|
|
|
Other expense, net:
|
|
|
|
|
|
Interest expense, net
|
|
(19,475
|
)
|
|
(8,387
|
)
|
|
Loss on extinguishment of debt
|
|
(8,262
|
)
|
|
—
|
|
|
Total other expense, net
|
|
(27,737
|
)
|
|
(8,387
|
)
|
|
Income before income taxes
|
|
40,654
|
|
|
(2,722
|
)
|
|
(Benefit) provision for income taxes
|
|
(1,050
|
)
|
|
355
|
|
|
Net income
|
|
$
|
41,704
|
|
|
$
|
(3,077
|
)
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
$
|
1.11
|
|
|
$
|
(0.09
|
)
|
|
Diluted earnings (loss) per share
|
|
$
|
1.08
|
|
|
$
|
(0.09
|
)
|
|
Shares used in basic per share calculation
|
|
37,490
|
|
|
33,538
|
|
|
Shares used in diluted per share calculation
|
|
42,467
|
|
|
33,538
|
|
|
|
|
|
|
|
|
Gross profit as a % of total revenues
|
|
60
|
%
|
|
60
|
%
|
|
Research and development as a % of total revenues
|
|
10
|
%
|
|
14
|
%
|
|
Sales and marketing as a % of total revenues
|
|
21
|
%
|
|
25
|
%
|
|
General and administrative as a % of total revenues
|
|
8
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
Consolidated net revenues by product category are as follows:
|
|
|
|
|
|
Rapid Immunoassay
|
|
$
|
132,740
|
|
|
$
|
115,974
|
|
|
Cardiac Immunoassay
|
|
203,581
|
|
|
—
|
|
|
Specialized Diagnostic Solutions
|
|
39,859
|
|
|
37,731
|
|
|
Molecular Diagnostic Solutions
|
|
13,517
|
|
|
9,148
|
|
|
Total revenues
|
|
$
|
389,697
|
|
|
$
|
162,853
|
|
|
|
|
|
|
|
|
|
|
|
|
QUIDEL CORPORATION
Reconciliation of Non-GAAP Financial Information
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Gross Profit
|
|
Operating Income
|
|
Net Income
|
|
Diluted EPS
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
GAAP Financial Results
|
|
$
|
69,642
|
|
|
$
|
29,690
|
|
|
$
|
16,894
|
|
|
$
|
(2,537
|
)
|
|
$
|
10,822
|
|
|
$
|
(5,525
|
)
|
|
|
|
|
|
Interest expense on Convertible Senior Notes, net of tax (a)
|
|
|
|
|
|
|
|
|
|
791
|
|
|
—
|
|
|
|
|
|
|
Net income (loss) used for diluted earnings per share,
if-converted method
|
|
|
|
|
|
|
|
|
|
11,613
|
|
|
(5,525
|
)
|
|
$
|
0.27
|
|
|
$
|
(0.16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on Convertible Senior Notes (a)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
1,388
|
|
|
|
|
|
|
Non-cash stock compensation expense
|
|
255
|
|
|
117
|
|
|
2,775
|
|
|
1,879
|
|
|
2,775
|
|
|
1,879
|
|
|
|
|
|
|
Amortization of intangibles
|
|
1,998
|
|
|
2,030
|
|
|
7,031
|
|
|
2,720
|
|
|
7,031
|
|
|
2,720
|
|
|
|
|
|
|
Amortization of debt discount and issuance costs on credit facility
|
|
|
|
|
|
|
|
|
|
145
|
|
|
—
|
|
|
|
|
|
|
Non-cash interest expense for deferred consideration
|
|
|
|
|
|
|
|
|
|
2,285
|
|
|
—
|
|
|
|
|
|
|
Loss on extinguishment of Senior Credit Facility
|
|
|
|
|
|
|
|
|
|
1,297
|
|
|
—
|
|
|
|
|
|
|
Acquisition and integration costs
|
|
|
|
|
|
2,521
|
|
|
4,591
|
|
|
2,521
|
|
|
4,591
|
|
|
|
|
|
|
Income tax impact of adjustments (a)(b)
|
|
|
|
|
|
|
|
|
|
(3,050
|
)
|
|
(3,700
|
)
|
|
|
|
|
|
Income tax impact of valuation allowance for deferred tax assets
|
|
|
|
|
|
|
|
|
|
836
|
|
|
4,590
|
|
|
|
|
|
|
Adjusted (c)
|
|
$
|
71,895
|
|
|
$
|
31,837
|
|
|
$
|
29,221
|
|
|
$
|
6,653
|
|
|
$
|
25,453
|
|
|
$
|
5,943
|
|
|
$
|
0.59
|
|
|
$
|
0.17
|
|
(a) The if-converted method was not applicable during 2017 as the
Convertible Senior Notes were not convertible.
(b) Income tax impact of adjustments represents the tax impact related
to the non-GAAP adjustments listed above and reflects an effective tax
rate of 19% for 2018 and 35% for 2017.
(c) Adjusted net earnings per share for the three months ended September
30, 2018 was calculated using an adjusted diluted weighted average
shares outstanding of 42.9 million shares. Adjustments from GAAP diluted
weighted average shares outstanding consisted of 1.8 million potentially
dilutive shares issuable from Convertible Senior Notes and 1.8 million
potentially dilutive shares issuable from stock options and unvested
RSUs.
|
QUIDEL CORPORATION
Reconciliation of Non-GAAP Financial Information
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
Gross Profit
|
|
Operating Income
|
|
Net Income
|
|
Diluted EPS
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
GAAP Financial Results
|
|
$
|
233,581
|
|
|
$
|
97,015
|
|
|
$
|
68,391
|
|
|
$
|
5,665
|
|
|
$
|
41,704
|
|
|
$
|
(3,077
|
)
|
|
|
|
|
|
Interest expense on Convertible Senior Notes, net of tax (a)
|
|
|
|
|
|
|
|
|
|
4,152
|
|
|
—
|
|
|
|
|
|
|
Net income (loss) used for diluted earnings per share,
if-converted method
|
|
|
|
|
|
|
|
|
|
45,856
|
|
|
(3,077
|
)
|
|
$
|
1.08
|
|
|
$
|
(0.09
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on Convertible Senior Notes (a)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
4,129
|
|
|
|
|
|
|
Non-cash stock compensation expense
|
|
751
|
|
|
354
|
|
|
9,190
|
|
|
5,938
|
|
|
9,190
|
|
|
5,938
|
|
|
|
|
|
|
Amortization of intangibles
|
|
6,739
|
|
|
5,543
|
|
|
21,890
|
|
|
7,605
|
|
|
21,890
|
|
|
7,605
|
|
|
|
|
|
|
Amortization of debt discount and issuance costs on credit facility
|
|
|
|
|
|
|
|
|
|
760
|
|
|
—
|
|
|
|
|
|
|
Non-cash interest expense for deferred consideration
|
|
|
|
|
|
|
|
|
|
7,686
|
|
|
—
|
|
|
|
|
|
|
Loss on extinguishment of Convertible Senior Notes
|
|
|
|
|
|
|
|
|
|
2,304
|
|
|
—
|
|
|
|
|
|
|
Loss on extinguishment of Senior Credit Facility
|
|
|
|
|
|
|
|
|
|
5,958
|
|
|
—
|
|
|
|
|
|
|
Amortization of inventory step-up of fair value
|
|
3,650
|
|
|
—
|
|
|
3,650
|
|
|
—
|
|
|
3,650
|
|
|
—
|
|
|
|
|
|
|
Change in fair value of acquisition contingencies
|
|
|
|
|
|
745
|
|
|
—
|
|
|
745
|
|
|
—
|
|
|
|
|
|
|
Acquisition and integration costs
|
|
|
|
|
|
10,923
|
|
|
7,022
|
|
|
10,923
|
|
|
7,022
|
|
|
|
|
|
|
Income tax impact of adjustments (a)(b)
|
|
|
|
|
|
|
|
|
|
(11,990
|
)
|
|
(8,640
|
)
|
|
|
|
|
|
Income tax impact of valuation allowance for deferred tax assets
|
|
|
|
|
|
|
|
|
|
(1,786
|
)
|
|
4,264
|
|
|
|
|
|
|
Adjusted (c)
|
|
$
|
244,721
|
|
|
$
|
102,912
|
|
|
$
|
114,789
|
|
|
$
|
26,230
|
|
|
$
|
95,186
|
|
|
$
|
17,241
|
|
|
$
|
2.24
|
|
|
$
|
0.50
|
|
(a) The if-converted method was not applicable during 2017 as the
Convertible Senior Notes were not convertible.
(b) Income tax impact of adjustments represents the tax impact related
to the non-GAAP adjustments listed above and reflects an effective tax
rate of 19% for 2018 and 35% for 2017.
(c) Adjusted net earnings per share for the nine months ended September
30, 2018 was calculated using an adjusted diluted weighted average
shares outstanding of 42.5 million shares. Adjustments from GAAP diluted
weighted average shares outstanding consisted of 3.2 million potentially
dilutive shares issuable from Convertible Senior Notes and 1.8 million
potentially dilutive shares issuable from stock options and unvested
RSUs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181106005937/en/
Source: Quidel Corporation
Quidel Contact:
Quidel Corporation
Randy Steward
Chief
Financial Officer
858.552.7931
or
Media and Investors
Contact:
Quidel Corporation
Ruben Argueta
858.646.8023
rargueta@quidel.com