EX-99.2
FY2022 Q2 Results May 6, 2022 Exhibit
99.2
The Private Securities Litigation
Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements accompanied by meaningful cautionary statements. Except for historical information, this presentation contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which may be identified by words such as “continues”, “estimates”, “anticipates”,
“projects”, “plans”, “seeks”, “may”, “will”, “expects”, “intends”, “believes”, “signals”, “should”, “can”,
“guidance” and similar expressions or the negative versions thereof and which also may be identified by their context. All statements that address operating performance or events or developments that Meridian Bioscience, Inc.
(“Meridian” or “the Company”) expects or anticipates will occur in the future, including, but not limited to, statements relating to per share diluted net earnings, sales, product demand, net revenues, operating margin, other
guidance and the impact of COVID-19 on its business and prospects, are forward-looking statements. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. Specifically,
Meridian’s forward-looking statements are, and will be, based on management’s then-current views and assumptions regarding future events and operating performance. Meridian assumes no obligation to publicly update or revise any
forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. These statements are subject to various risks, uncertainties and other factors that could
cause actual results to differ materially, including, without limitation, the following: Meridian’s operating results, financial condition and continued growth depends, in part, on its ability to introduce into the marketplace enhancements of
existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian’s competition, its ability to effectively sell such products and its ability to successfully
expand and effectively manage increased sales and marketing operations. While Meridian has introduced a number of internally developed products and acquired products, there can be no assurance that it will be successful in the future in introducing
such products on a timely basis or in protecting its intellectual property, and unexpected or costly manufacturing costs associated with its introduction of new products or acquired products could cause actual results to differ from expectations.
Meridian relies on proprietary, patented and licensed technologies. As such, the Company’s ability to protect its intellectual property rights, as well as the potential for intellectual property litigation, would impact its results. Ongoing
consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Recessionary pressures on the economy and the markets in which the Company’s customers operate, as well
as adverse trends in buying patterns from customers, can change expected results. Costs and difficulties in complying with laws and regulations, including those administered by the United States Food and Drug Administration, and in complying with
the ongoing investigation of the Department of Justice described in Meridian’s reports filed with the SEC, can result in unanticipated expenses and delays and interruptions to the sale of new and existing products, as can the uncertainty of
regulatory approvals and the regulatory process. The international scope of Meridian’s operations, including changes in the relative strength or weakness of the U.S. dollar and general economic conditions in foreign countries, can impact
results and make them difficult to predict. One of Meridian’s growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be
successful and that the acquired businesses will be successfully integrated into Meridian’s operations. There may be risks that acquisitions may disrupt operations and may pose potential difficulties in employee retention, and there may be
additional risks with respect to Meridian’s ability to recognize the benefits of acquisitions, including potential synergies and cost savings or the failure of acquisitions to achieve their plans and objectives. Meridian cannot predict the
outcome of future goodwill impairment testing and the impact of possible goodwill impairments on Meridian’s earnings and financial results. Meridian cannot predict the possible impact of any modification or repeal of any of the provisions of
current U.S. healthcare legislation, and any similar initiatives in other countries on Meridian’s results of operations. Efforts to reduce the U.S. federal deficit, breaches of Meridian’s information technology systems, trade wars,
increased tariffs, and natural disasters and other events could have a materially adverse effect on Meridian’s results of operations and net revenues. The Company can make no assurances that a material weakness in its internal control over
financial reporting will not be identified in the future, which if identified and not properly corrected, could materially and adversely affect its operations and result in material misstatements in its consolidated financial statements. Meridian
also is subject to risks and uncertainties related to disruptions to or reductions in business operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as COVID-19, including,
without limitation, related supply chain interruptions. In addition to the factors described in this paragraph, as well as those factors identified from time to time in the Company’s filings with the Securities and Exchange Commission, Part I,
Item 1A Risk Factors of the Company’s most recent Annual Report on Form 10-K, contains a list and description of uncertainties, risks and other matters that may affect the Company. Readers should carefully review these forward-looking
statements and risk factors, and not place undue reliance on the Company’s forward-looking statements. Forward Looking Statements
Certain financial measures presented in
this presentation, such as operating expenses, operating income, operating margin, net earnings and net earnings per diluted share, each on an adjusted basis, excluding as applicable the effects of changes in fair value of acquisition consideration
and selected legal costs, are not recognized under United States generally accepted accounting principles, or GAAP. Management believes this non-GAAP financial information is useful to investors in evaluating our performance, as these measures: (i)
help investors to more meaningfully evaluate and compare the results of operations from period to period by removing the impacts of these non-routine items; and (ii) are used by management for various purposes, including evaluating performance from
period to period in presentations to our board of directors, and as a basis for strategic planning and forecasting. While we believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors, the
non-GAAP measures in this presentation may be different from non-GAAP measures used by other companies and should not be considered as an alternative to performance measures derived in accordance with GAAP. In addition, the non-GAAP measures
presented herein are not based on any comprehensive set of accounting rules or principles. These non-GAAP measures have limitations, in that they do not reflect all amounts associated with our results as determined in accordance with GAAP, and they
should not be considered as alternatives to information attributable to Meridian Bioscience, Inc. determined in accordance with GAAP. See the consolidated financial statements included in our reports filed with the U.S. Securities and Exchange
Commission for our GAAP results. For reconciliations of the non-GAAP measures included herein to our closest reported GAAP measures, refer to the reconciliations included in the press release of Meridian Bioscience, Inc. dated May 6, 2022. Non-GAAP
Financial Measures
Record quarterly revenues for Company
and both business segments Launched Lyo-Ready™ sample specific master mixes for blood Resumed shipment of LeadCare® II assay ahead of schedule Seamless transition of Board Chairman and addition of new CFO Q2 FY2022 Business Highlights
Diagnostics Life Science
FY2022 Second Quarter Earnings Summary
($000’s except Per Share Amounts) Adjusted (Non-GAAP) FY2022 FY2021 Change Net revenues $111,231 $85,264 +30% Gross margin % 62% 68% -6 pts Operating expenses(1) Ratio $31,760 29% $25,530 30% +24% -1 pts Operating income Margin % $36,717 33%
$32,242 38% +14% -5 pts Net earnings Diluted EPS $29,185 $0.66 $24,832 $0.56 +18% +18% GAAP FY2022 FY2021 Change Operating expenses $32,336 $23,571 +37% Operating income Margin % $36,141 32% $34,201 40% +6% -8 pts Net earnings Diluted EPS $28,752
$0.65 $26,302 $0.60 +9% +8% Highlights Diagnostics segment net revenues +29% YoY Life Science segment net revenues +32% YoY Lower business unit GM%s 2022 vs 2021 Diagnostics segment down primarily due to LeadCare® drag: 50% vs 52% Life Science
segment down primarily due to mix of immuno vs molecular: 68% vs 77% Operating expenses reflect $6.2M higher spend: R&D ($0.4M) Sales & Marketing $1.0M G&A, excl. incentive compensation $0.9M Incentive compensation $4.7M GAAP operating
expenses reflect ($0.5M) decrease in non-GAAP legal expenses and no contingent consideration expense versus ($3.0M) credit in 2021 1) Includes Corporate expenses of $5.2M in 2022 and $3.5M in 2021.
FY2022 Second Quarter Operating Segment
Highlights ($000’s) Diagnostics segment (Adjusted Non-GAAP) FY2022 FY2021 Change Net revenues $41,103 $31,949 +29% Operating income (loss) Margin % $1,589 4% ($348) NMF NMF NMF Diagnostics segment net revenues by: Technology: Molecular assays
$4,385 $4,395 --% Non-molecular assays 36,718 27,554 +33% Disease State: GI (Gastrointestinal) $20,281 $15,666 +29% RI (Respiratory Illnesses) 9,491 3,686 +157% Blood Chemistry (Lead) 3,425 4,358 -21% Other 7,906 8,239 -4% Life Science segment
(Adjusted Non-GAAP) FY2022 FY2021 Change Net revenues $70,128 $53,315 +32% Operating income Margin % $40,354 58% $36,025 68% +12% `-10 pts Life Science segment net revenues by: Technology: Molecular reagents $40,334 $37,752 +7% Immunological
reagents 29,794 15,563 +91% Region: Americas $10,377 $13,550 -23% EMEA 33,246 21,773 +53% ROW 26,505 17,992 +47% China (included in ROW) 4,931 4,626 +7% Product / Customer Highlights: GI shows continued growth – driven by breath products
Respiratory saw strong contribution from COVID Rapid Ag, but Core also up Blood Chemistry reflects impact of recall with only 6 weeks of sales in quarter Product / Customer Highlights: Operating margin driven by technology mix: Current period: ~58%
molecular; 42% Immuno Prior year period: ~71% molecular; 29% Immuno
FY2022 Fiscal Year Guidance Meridian
Bioscience Diagnostics Life Science Prior Guidance (2/4/2022) Updated FY2022 Guidance Meridian Bioscience Consolidated net revenues: $330 to $345 Million Adjusted operating margin: 22.5% to 23.5% Adjusted net earnings per share*: $1.30 to $1.40
Diagnostics Net revenues: $145 to $150 million Life Science Net revenues: $185 to $195 million Consolidated net revenues: $315 to $330 Million Adjusted operating margin: 21% to 23% Adjusted net earnings per share*: $1.10 to $1.30 Net revenues: $145
to $150 million Net revenues: $170 to $180 million * Assumes 44.3M diluted share count
Diagnostics R&D Pipeline (as of
3/31/2022) Breath Immunoassay Molecular Blood Chemistry Feasibility Development Clinicals FDA Liver MBT PMA Add’l Claim (1) C. difficile Shiga Toxin Streptococcus pneumoniae / Legionella RI Panel GI Panel COVID-19 EUA(3) PediaStat Analyzer
Lead Expected FY22 FDA Submissions Shiga Toxin Campylobacter (2) Submitted to FDA on 2/16/2022 Received FDA 510(k) clearance 12/23/2021 Received FDA Emergency Use Authorization (EUA) on 11/9/2021 – Not currently distributing pending changes to
detect omicron variant Add’l Claim
Meridian ESG Efforts Encompass Four Key
Areas Advancing Diagnostics to Enable Better Patient Healthcare Outcomes Accelerate diagnostic test development with high-quality Life Science reagents that power hundreds of diagnostic assays across 150+ disease states Supply hospitals, outpatient
clinics, reference labs, and physician office labs with close to 200 diagnostics tests and transport media in more than 30 disease states First responder to the COVID-19 crisis, providing critical raw materials to enable rapid development of
COVID-19 tests and now powering 100+ approved diagnostic assays Committing to Best-in-Class Governance Practices 88% of directors are considered independent Separated Chairman and CEO roles Aligned management compensation to clear financial targets
Reducing Environmental Impact with Product Innovation Reduce significant carbon emissions and Styrofoam packaging needs associated with cold chain shipping and storage of diagnostic assays through Lyo-Ready™ and Air-Dryable™
Molecular Master Mixes Enable broader distribution and use of diagnostics in resource-limited settings with limited cold chain management capabilities Lengthen shelf-life of molecular diagnostic assays to lower waste and improve assay availability
Creating an Inclusive, Diverse and Equitable Workforce Introduced the One Meridian Inclusion Diversity and Equity (“IDE”) Team to encourage and support an environment in which all employees feel included and empowered This global IDE
initiative further helps attract and retain a diverse workforce Approximately 55% of employees globally are women(1) 25% of Meridian’s US workforce is ethnically diverse(1) As of September 30, 2021
Life Science Molecular Master
Mixes
Disrupting Molecular Diagnostics
Development Meridian’s innovative sample-specific mixes (qPCR & LAMP) FAST TRACK YOUR R&D BLOOD URINE STOOL SALIVA PLANT/FOOD DNA RNA LIQUID LYOPHILIZED AIR-DRIED SPECIMEN? DETECTING? KIT FORMAT? ONLY ADD Primers & Probes INHIBITOR
TOLERANT Master Mixes have everything you need: Enzyme, Buffer, Excipients, Nucleotides, Mg USE CRUDE samples (no extraction) PERFECT FOR Multiplexing, fast cycling & POCT
Sample-Specific Mix Customer Trends
YTD
Contact:
mbi@meridianbioscience.com
