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Press Release: Meridian Bioscience Reports Record Setting First Quarter Fiscal 2021 Operating Results and Raises Full Year Fiscal 2021 Guidance

· 02/05/2021 07:30
December 31, September 30, 2020 2020 --------------------- ----------------- Cash and cash equivalents $ 63,193 $ 53,514 Working capital 123,785 109,666 Long-term debt 58,824 68,824 Shareholders' equity 278,867 247,629 Total assets 423,930 405,261Three Months Ended December 31, ------------------------ 2020 2019 --------- --------- Net revenues $ 92,917 $ 47,421 Cost of sales 31,369 19,770 -------- -------- Gross profit 61,548 27,651 -------- -------- Operating expenses Research and development 5,651 4,763 Selling and marketing 7,021 6,728 General and administrative 11,938 8,984 Change in fair value of acquisition consideration 1,047 1,187 Restructuring costs - 275 Selected legal costs 1,227 320 -------- -------- Total operating expenses 26,884 22,257 -------- -------- Operating income 34,664 5,394 Other expense, net (416) (1,368) -------- -------- Earnings before income taxes 34,248 4,026 Income tax provision 7,469 1,199 -------- -------- Net earnings $ 26,779 $ 2,827 ======== ======== Net earnings per basic common share $ 0.62 $ 0.07 Basic common shares outstanding 43,098 42,789 Net earnings per diluted common share $ 0.61 $ 0.07 Diluted common shares outstanding 43,779 42,938 Three Months Ended December 31, -------------------------------- 2020 2019 -------------- ----------- Adjusted Financial Measures (see non-GAAP financial measure reconciliation below) Operating income $ 36,938 $ 7,176 Net earnings 28,486 4,179 Net earnings per diluted common share $ 0.65 $ 0.10-- Consolidated $320 million to $350 million -- Diagnostics segment $140 million to $150 million -- Life Science segment $180 million to $200 million-- Consolidated net revenues of $92.9 million, up 96% year-over-year -- Life Science segment delivered net revenues of $62.6 million, up 396% year-over-year -- Diagnostics segment net revenues decreased 13% year-over-year to $30.3 million, up 2% from the fourth quarter of fiscal 2020 -- Received a National Institutes of Health Rapid Acceleration of Diagnostics ("RADx") grant for the development of Revogene(R) SARS-CoV-2 assay and submitted application to FDA for Emergency Use Authorization -- Launched paradigm-shifting Air-Dryable Master Mix to replace lyophilization in manufacturing of molecular assays -- Launched complete solution of Life Science products to support liquid biopsy cancer molecular diagnostics

Meridian Bioscience Reports Record Setting First Quarter Fiscal 2021 Operating Results and Raises Full Year Fiscal 2021 Guidance

CINCINNATI, Feb. 05, 2021 (GLOBE NEWSWIRE) -- Meridian Bioscience, Inc. (NASDAQ: VIVO) today announced financial results for the first quarter ended December 31, 2020.

First Quarter 2021 Highlights (Comparison to First Quarter Fiscal 2020):

First Quarter Fiscal 2021 Results (Comparison to First Quarter Fiscal 2020)

Consolidated net revenues for the first quarter of fiscal 2021 increased 96% to $92.9 million, compared to $47.4 million last year. Diagnostics segment net revenues were down 13% year-over-year, but continued its recovery, up 2% from the fourth quarter of fiscal 2020 and up 40% from the low seen in the third quarter of fiscal 2020. Life Science segment revenues were up 396%. Our Life Science segment net revenues for the quarter included $43 million in net revenues from COVID-19 related products with $34 million coming from molecular products and $9 million coming from immunological products. Core (non-COVID-19 related) Life Science segment net revenues were up 55% year-over-year.

Reported operating income for the first quarter of fiscal 2021 was $34.7 million. Operating expenses included: (i) higher research and development spending in the Diagnostics segment; (ii) higher amortization related to the acquisition of Exalenz in April 2020, as well as an upward adjustment in the fair value of the contingent consideration related to the acquisition of the GenePOC business in fiscal 2019. On an adjusted basis, operating income was $36.9 million, a margin of 40% (see non-GAAP financial measure reconciliation below), up from a margin of 15% representing year-over-year growth of over 400%.

Jack Kenny, Chief Executive Officer, commented, "Q1 was another strong performance by the team and its great to have both Life Science and Diagnostics segments contributing to the pandemic. Submission of the Revogene(R) SARS-CoV-2 assay EUA is the first key milestone in the resurgence of the Diagnostics segment during the remainder of the year."

Bryan Baldasare, Chief Financial Officer, commented, "Our balance sheet continues to strengthen as a result of the robust cash generation of our business. We look forward to putting that cash generation to work in the coming months as we fortify our Life Science segment production capacity and build out a new production facility for assays on the Revogene(R) platform."

Raising Fiscal 2021 Guidance

Our performance in the first quarter exceeded our expectations and we are raising our guidance for the year.

FY2021 Net Revenues:

FY2021 Adjusted Operating Margin: Consolidated 31% to 33%

FY2021 Adjusted Net Earnings Per Share on a Diluted Basis ("EPS"): $1.70 to $1.90 (44.3M shares)

The net revenue component of this guidance anticipates that our Life Science segment will continue to see strong demand in the second quarter, similar to that of the first quarter of fiscal 2021. In Life Science, the forecast for the second half of the year assumes we return to levels similar to the fourth quarter of fiscal 2020 in anticipation of declining infection rates as the COVID-19 vaccines are administered around the world. We anticipate this would still result in Life Science segment net revenues significantly above pre-pandemic levels and the Diagnostics segment contributions from our COVID-19 assays offsetting lingering headwinds from the pandemic. The increased adjusted operating margin and adjusted EPS reflect a flow-through of the additional net revenue and gross profit, as well as lower spending for travel, tradeshows and selected new product development programs.

This guidance reflects our current visibility into market conditions and customer order patterns for our products and our current assumptions about the impacts from the COVID-19 pandemic in the U.S. and around the globe.

Financial Condition

At December 31, 2020, cash and cash equivalents were $63.2 million and the Company had $101.2 million of borrowing capacity under its $160.0 million commercial bank credit facility. The Company's obligations under the commercial bank credit facility totaled $58.8 million as of December 31, 2020.

Conference Call Information

Jack Kenny, Chief Executive Officer, and Bryan Baldasare, Executive Vice President and Chief Financial Officer, will host a conference call on Friday, February 5, 2021 beginning at 10:00 a.m. Eastern Time to discuss the first quarter financial results and answer questions. A presentation to accompany the quarterly financial results and related discussion will be made available within the Investor Relations section of the Company's website, www.meridianbioscience.com, prior to the conference call.

To participate in the live call by telephone from the U.S., dial (866) 443-5802, or from outside the U.S., dial (513) 360-6924, and enter the audience pass code 5617405. A replay will be available for 14 days beginning at 1:00 p.m. Eastern Time on February 5, 2021 by dialing (855) 859-2056 or (404) 537-3406 and entering pass code 5617405.

FIRST QUARTER FISCAL 2021 UNAUDITED OPERATING RESULTS

(In Thousands, Except per Share Data)

The following table sets forth the unaudited comparative results of Meridian on a U.S. generally accepted accounting principles ("GAAP") basis for the first quarters of fiscal 2021 and fiscal 2020.

Condensed Consolidated Balance Sheet Data

Segment Data

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February 05, 2021 07:30 ET (12:30 GMT)