Bausch Health 3Q 2019 Revenues Rise

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LAVAL, Quebec—Bausch Health Companies (NYSE/TSX: BHC) reported revenues of $2.209 billion for the third quarter ended September 30, 2019, which represented total company revenue growth of 3 percent. Excluding the unfavorable impact of foreign exchange of $15 million, the impact of a 2019 acquisition of $14 million and the impact of divestitures and discontinuations of $13 million, revenue grew organically by 4 percent compared to the third quarter of 2018, driven by organic growth in the Salix and Bausch + Lomb/International segments. The company said the increase was primarily driven by growth in the Global Consumer, International Rx and Global Vision Care business units.

Bausch Health's perating income was $329 million for the third quarter of 2019, as compared to an operating income of $117 million for the third quarter of 2018, an increase of $212 million. The increase in operating results for the third quarter of 2019 was primarily driven by a decrease in amortization and impairments and the increase in reported revenues and higher gross margins in 2019 as compared to 2018, offset by increased Selling, general and administrative (SG&A) expenses and R&D expenses, the company said.

Overall financials also reflected a GAAP net loss of $49 million, with adjusted EBIDTA (non-GAAP) of $942 million for the three-month period. The company said the Bausch + Lomb/International segment delivered its 12th consecutive quarter or organic revenue growth.

"In the third quarter, Bausch Health delivered another strong quarter with both reported and organic revenue growth, demonstrating that our efforts to grow our core businesses are continuing to gain traction. In addition to organic revenue growth in both the Bausch + Lomb/International and Salix segments due to higher revenues in several of our durable, established brands, such as Xifazan, BioTrue ONEday and Bausch + Lomb ULTRA, our performance was also strengthened by the success of newer products, such as Lumify and Thermage FLX," stated Joseph C. Papa, chairman and CEO, Bausch Health. "Additionally, we are excited by the potential we see from the early days of the launch of DuobrII, the newest product in our dermatology portfolio."

In its global vision care segment, Bausch reported revenues of $219 million for the quarter compared to $216 million in the third quarter of 2018, and cited 6 percent organic revenue growth in 3Q19 vs. 3Q18, driven by performance of Biotrue ONEday and Bausch + Lomb ULTRA as well as the AQUALOX launch. The company pointed out that its Biotrue ONEdayt contact lenses saw 22 percent organic revenue growth in 3Q19 vs. 3Q18 and added that Bausch + Lomb ULTRA saw 25 percent organic revenue growth in this year's third quarter compared to the prior year. The company also cited its recent launch of the iBausch + Lomb ULTRA Multifocal for Astigmatism as driving growth in the period.

In its consumer segment, Bausch reported healthy sales gains for Lumify of $21M in revenue for 3Q19, a 91 percent increase in revenues for the period. The company also launched Ocuvite Eye Performance vitamins in the U.S., which are formulated to help protect the eye from digital device blue light and UV exposure from the sun.

Overall, the company said it increased its research and development by approximately 15 percent, or $16 million, compared to the third quarter of 2018.

Bausch also noted it repaid debt by approximately $450 million in the third quarter of 2019, including the net impact of activity under the company's revolving credit facility.

Bausch Health raised its revenue and adjusted EBITDA (non-GAAP) guidance ranges for the full year of 2019. It raised full-year revenue range from $8.40 billion to $8.60 billion to $8.475 billion to $8.625 billion.