QuidelOrtho Reports Third Quarter 2022 Financial Results

Highlights

• Revenue of $783.8 million increased by 54% as reported
• Supplemental combined revenue of $783.8 million decreased by 21.8% in constant currency and increased 3.0%, excluding COVID-19 revenue; the transition of Beckman BNP assay sales to Beckman was a 3 percentage point headwind to revenue so the underlying base business increased 6.0%
• Growth in revenue, excluding COVID-19 revenue, was driven by Point-of-Care and Donor Screening product lines
• Strength in North America, LATAM, and ASPAC was partially offset by weakness in China and EMEA
• GAAP EPS of $0.28; Supplemental combined adjusted EPS of $1.85, a (54)% decrease from prior year, largely reflecting the strength of high margin COVID-19 revenue in the third quarter of 2021

QuidelOrtho Corporation (NASDAQ: QDEL) (the “Company” or “QuidelOrtho”), a global provider of innovative in vitro diagnostics technologies designed for point-of-care settings, clinical labs and transfusion medicine, today announced financial results for the third quarter ended October 2, 2022.

The Company reported total revenue for the third quarter of 2022 of $783.8 million, a 54% increase as reported, compared to $509.8 million for the third quarter of 2021. This was largely due to the consummation of the business combination that occurred on May 27, 2022 pursuant to a Business Combination Agreement entered into as of December 22, 2021, by and among Quidel Corporation (“Quidel”), Ortho Clinical Diagnostics Holdings plc (“Ortho”), QuidelOrtho, and the other parties thereto (the “Combinations”). GAAP diluted earnings per share (EPS) for the third quarter of 2022 decreased to $0.28, compared to $5.08 for the third quarter of 2021. GAAP operating income for the third quarter of 2022 was $56.8 million, compared to $281.8 million for the third quarter of 2021, and GAAP operating margin was 7% and 55% for the third quarters of 2022 and 2021, respectively. The third quarter 2022 results include significant one-time charges related to the Combinations.

In addition to the Company’s GAAP results, the Company is providing supplemental combined third quarter 2022 and 2021 revenues and adjusted operating results as if Quidel and Ortho had been combined for the applicable periods. The following discussion of financial results is based on supplemental combined information:

Third quarter 2022 total revenue of $783.8 million decreased by 21.8% in constant currency, compared to $1,032.3 million for the third quarter of 2021. Foreign currency translation negatively impacted sales growth by approximately 230 basis points for the third quarter of 2022. Adjusted diluted EPS for the third quarter of 2022 decreased to $1.85, compared to $4.01 for the third quarter of 2021. Adjusted EBITDA for the third quarter of 2022 was $226.8 million, compared to $435.2 million in the third quarter of 2021. Adjusted EBITDA margin for the third quarter of 2022 was 28.9%, compared to 42.5% for the third quarter of 2021.

“Our third quarter results reflect the remarkable cohesion, agility and dedication of our unified QuidelOrtho team, aided by the strength of our comprehensive product portfolio and expanded global commercial footprint,” said Douglas Bryant, Chairman and Chief Executive Officer of QuidelOrtho. “We are pleased with the operating leverage we generated, and the better-than-expected earnings results position us to raise our guidance for the full year.”

“Integration of our QuidelOrtho business is going well, surpassing our initial expectations, and will continue to be a key focus for us in the coming quarters. The progress we’ve made thus far is a testament to the underlying strength of our combined business, our exceptional team and our global market strategy. We look forward to advancing all our initiatives to drive sustainable growth and create long-term stockholder value,” Mr. Bryant concluded.

Fiscal Year 2022 Financial Guidance

The Company will provide updated 2022 financial guidance during its financial results conference call today.

Conference Call Information

QuidelOrtho will hold a conference call today at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results for the third quarter ended October 2, 2022. Interested parties can access the call on the “Events & Presentations” section of the “Investor Relations” page of the Company’s website at https://ir.quidelortho.com/. Presentation materials will also be posted to the “Events & Presentations” section of the “Investor Relations” page of the Company’s website at the time of the call. Those unable to access the webcast may join the call via phone by dialing 844-200-6205 (domestic) or 929-526-1599 (international) and entering Conference ID number 968016.

A replay of the conference call will be available shortly after the event on the “Investor Relations” page of the Company’s website, under the “Events & Presentations” section.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this press release by words such as “may,” “will,” “would,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “continue,” or similar words, expressions or the negative of such terms or other comparable terminology. These statements include, but are not limited to, the benefits and results of the Combinations and integration of the businesses of Quidel and Ortho, including QuidelOrtho’s execution of cost and revenue synergies, commercial and other strategic goals, future financial and operating results, future plans, objectives, strategies, expectations and intentions and other statements that are not historical facts. Such statements are based on the current beliefs and expectations of QuidelOrtho’s management and are subject to significant risks and uncertainties. Actual results may differ significantly from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the challenges and costs of integrating, restructuring and achieving anticipated synergies as a result of the Combinations; the ability to retain key employees; and other economic, business, competitive, and/or regulatory factors affecting the business of QuidelOrtho generally. Additional risks and factors are identified under “Risk Factors” in QuidelOrtho’s joint proxy statement/prospectus (the “Joint Proxy Statement/Prospectus”) filed with the Securities and Exchange Commission (the “Commission”) on April 11, 2022 and subsequent reports filed with the Commission. You should not rely on forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. QuidelOrtho has no obligation to update any of the forward-looking information included in this press release, whether as a result of new information, future events, changed expectations or otherwise, except as required by law.