Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the QuidelOrtho Fourth Quarter and Full Year 2022 Financial Results Conference Call and Webcast. At this time, all participant lines are in listen-only mode.

For those of you participating on the conference call, there will be an opportunity for your questions at the end of today’s prepared remarks. Please note, this conference call is being recorded. An audio replay of the conference call will be available on the company’s website shortly after this call.

to of call Investor like Brokmeier, to now President Vice Relations. would turn over the Bryan I Bryan?

Bryan Brokmeier

a Thank you, results Operator. results the me QuidelOrtho Good to Financial be are CEO; the afternoon, everyone. quarter of page Investor today Chief President full conference version today’s is can Officer. and presentation And of and Doug there. and Bryant, Joe Busky, year being and call downloaded our Relations our This QuidelOrtho’s financial discuss simultaneously conference QuidelOrtho’s on website webcast With fourth call. financial welcome to

Before of such Harbor and during plans we we statements. Private Act Reform the for the begin, which today’s I The make expectations, meaning will future prospects cover Securities a Litigation include about our will Safe XXXX, call Harbor company’s statement. of Safe forward-looking -- statements provides this during the statements within

differ factors or and forward-looking cause actual Our risks, of use subject to uncertainties from number of to forward-looking that statements. could in a these materially statements those other is results implied expressed

and the uncertainties Factors to a include, Risk uncertainties to, reports SEC factors on limited risks those such but the Form detailed X, not more with refer of filings filed and are of under SEC August XXXX, and and discussion report filed the with our identified XX-Q SEC. quarterly in statements Please risks on for subsequent our These forward-looking statements.

any make to by we for Except to you events, or or today. information and We statements no implied by as other reason. judgment forward-looking statements be we statements any required changed forward-looking law, are such future expectations cannot assure as forward-looking realized. management’s or or any update obligation represent time-sensitive that statements the reflect developments will circumstances our undertake Furthermore, of

we the quarter Quidel will of combined the XXXX, to comparison and performance Ortho applicable year full during the revenue supplemental and been to fourth XXXX the be adjusted the of company’s other operating a operating call, have facilitate to of full XXXX from periods. as of and fourth supplemental Also, quarter the year XXXX today’s discussing for from results

supplemental we to will this information, items or do We to information. not will other as as This Generally combined discuss as GAAP. well combined Accepted Accounting certain conform information supplemental U.S. Principles refer our

Please list see included for page Relations slide comparable of of both GAAP the available their QuidelOrtho a are release directly this afternoon, these non-GAAP are of measures press three in Reconciliations the to Investor measures. the most of non-GAAP appendix which presentation website. the and measures issued on investor to

stated currency rates, call, ranges Lastly, year-over-year all growth a unless otherwise, revenue including basis. comparable on today’s given constant growth given revenue are on

and like I’d over Now, Doug? turn QuidelOrtho’s Bryant, CEO. call to Doug to the President

Doug Bryant

performance for Bryan. with am financial Equally, productive the and for things many call we afternoon, overall. Thanks, today. I QuidelOrtho’s joining the Good quarter am done pleased I quarter. XXXX fourth in and the the everybody, thanks in with got pleased

Our growth for accomplishments up gains to and set for margin and productivity will in XXXX years come. us I meaningful continued for that believe revenue

I and getting revenue. performance key over to back talk highlight growth EBITDA will will drivers, create Today, I of programs that will our in revenue instrumental briefly the will and our be XX% financial growth that about accelerated

versus the billion. excluding the for and supplemental revenue basis, a and year increased As Diagnostics of quarter year XX%, the In respectively, for by by revenue in driven Supplemental reported, quarter. quarter million revenue full grew revenue combined year Fourth XX% Molecular the on full our prior businesses. periods, year over prior $XXX.X strength XX% $X.X and the Point-of-Care COVID was combined

lockdowns year. revenue and by for growth partially higher immunoassay chemistry path will as to this by in was respiratory season talk clinical well double-digit weakness than typical later, about prevalence as respiratory our the pronounced there virus and offset China to rates. in early Joe more an syncytial marked influenza there. China and In due was This

ex-COVID By quarter in Labs business versus the unit, year. prior fourth the XX% revenue unit declined

If would Medicine for was and unit and be prior Labs the China digits. you X% increased lockdowns, Transfusion Molecular Labs up mid-single were XX% business up flat Point-of-Care the and was year. from to the normalize XXX% at

a From well. a again half the organization good China flat regions well the It year, which of all quarter regional trajectory was bodes the was the combined years. for or Overall, an next few perspective, were a down newly over revenue performed which lockdowns. to except the solid up due and increasing growth back

important to company growth it’s continue I view business for such. to as will market QuidelOrtho I the investors our recognize and we a that broader and think as manage

that customer-driven active we an have executing been R&D just a in and with regulatory and we XXX as will over in clinical company are be past. prolific We is that expectation on product as projects, development the

are our lines, Sofia, product instruments and The that XX,XXX VITROS on and focused three growth acutely key with near-term Savanna XXXX we drivers Sofia installed in worldwide. systems are over

increasingly United in The and longer the market. our is informative strategy understanding of Sofia the as longevity durable solid, segment be franchise as IVD placements of Sofia the investors is term and business. well the in platform, States review address A should decentralized our a to growing helpful of an to

excuse multiyear urgent care On products. multiple the Roughly Sofia XX% X.X in XX% average, in in U.S., care, include most the me, Sofia of Sofia’s instruments of urgent X.X sites POL are in corporate XX% and have urgent at are sites care hospitals hospitals, have XX,XXX which on are accounts. instruments, and are X.X. of contracts, which most POL, XX% over are include In

of number U.S. The

Sofia POL understandably by customers down The care up are hospital Home COVID-XX X% up of customers Program. customers to are customers long-term number X%, to XX,XXX. and the Nursing X%, year-over-year up which customers, end offset urgent given around were is the Government’s is care up X% XX%,

year and the in presence basis. we outpatient antigen the XX a a customers on our tests, an -- purchasing XX-month understatement. of that quick have settings including disease a over a aside, U.S. is trailing As QuickVue, meaningful total XX,XXX is respiratory our number Saying rapid

Importantly, have XX% last run experienced the we And COVID, market run disease instruments XX% Sofia only. the share year-end on of couple only influenza instruments in run sales gain Sofia [ph] of instrument per of and Non-COVID trailing respiratory increased years basis. over category. COVID interestingly, which XX,XXX the XX% at ALK X% explains XX-month a

why with greatest franchise is Sofia menu clearly the us developing its installed possible, can valuable team the on Sofia by for that base which one additional R&D The huge and customers. be our is to asset, so leveraged should focused extent is a

which panels solutions healthcare. Savanna the strategy address companies validates of molecular would need is potentially efforts and bring further decentralized our access Point-of-Care increasing, that points The number to to pursuing smaller for syndromic to

global have we I say for us are anticipated to the launch to now largely pleased ready am we that we season. instrument ahead to begin along. nearly of respiratory chain for next the and manufacturing issues a and an all resolved there, expanded the Supply ship had nearly that challenge are that were capacity analyzers

cartridges we manufacturer lines, the lines of be process installing are cartridge millions hiring automated will manufacturing -- additional in For manual increasing that of will produce manufacturing, and required. high that staff volume

we the HSV/VZV that panels in will panel. RVPX our lesion two launch first The

parasite pharyngitis trials for Beyond the to RVPXX, and vaginitis. STI, bacterial, and begin expect clinical that, panel, XGI viral panels, we

features, initial cost and time, of lower Savanna’s have focused faster areas test turnaround purposely total to our on take ownership. these We menu flexibility unique advantage of

back terms and immunoassay to global representing of XXX and of The order the our franchises chemistry driven our VITRO’s largest of revenue our of commercial a experiencing business chemistry close increasing Labs our we platforms and for systems is integrated instruments. unit demand in slides, XX% around and revenue clinical immunoassay good execution, and by are

While addressing our due to component most of demand, is a there chain is this supply we which suppliers. strong are with also

that we we year. suppliers confident I will employed expect to chain platform. XXXX move that am other In reduce Savanna collaborate forecast we and I our in as applying the to did improve and with have our Savanna, to significant by XXXX progress as same order we words, the will through back principles we challenges in the VITROS we to resolve with make Just visibility expect supply with

In automated lines increasing installing Rochester meet two in slide more addition, slide demand. we are manufacturing to

fourth develop step to we entering VITROS undertook term which a will strategy assays assays Runda time growth for of to China, in in into China. Shanghai support compelling we longer joint with believe the venture translate VITROs quarter in manufacture faster Medical was menu market our more a and Another into and in

our also China progress localization We to continue instrument initiative.

first. least speed In matter on and first Internally, a excellent are as things two much, giving I execution too at done things things focus, of focus that to often Achieving requires yourself speed. the picking or things at other words, currently. permission that to speak not acutely matter going not being three well don’t function about

matter. these mind, my In three franchises

the Our years. success our that will donor term, a will it return create doesn’t be It development with screening that it will. longer next next-gen greatest of because and three the these shareholder Medicine is platform couple Transfusion the mean in of programs important isn’t and important in

the they But focused. doesn’t isn’t And important in term, and longer it in that’s these am where wisely at for because quantitative most It important, XXXX, are. our that me assays mean and Point-of-Care businesses are leapfrog that is. doesn’t mean because the it deploying three matter capital I

Of am closely it’s going also with well. very progress integration and our following course, I

achievement state to XX% been our As milestones time. interim over to-date, completed our short remarkable state interim in such we a transition from future of amount state a have of

identifying Following cost a synergies. expectations thoughtful team both realizing is integration disciplined ahead and of in and approach, our

$XX Last in year, we realized approximately cost synergies. million

also that over be upside. could identified believe in million years even have there next the synergies cost We three full and $XX the more

target million cross-training where confident we well revenue Given our $XX is and are exceed underway. synergies we through XXXX training we related commercial today, will that are of

had quarter we summary, a and In fantastic terrific a year.

drivers our of have ahead are multiple growth integration schedule work. on at and plans We

our a in we forward. going have financial everything We and hit targets to plan need place

rightly understood Our as our beyond. not move as headwinds performance strong growth us obstacles and quarter XXXX and we onward The and concerned and may were is Objectively, largely well that sets an from path truly were had derisked. not to we expecting as outstanding was the XXXX we for be up be a originally significant fourth meaningful about we thought.

QX call further guidance. discuss With Joe? that, financial results I’d to like XXXX and to Joe turn the over our to

Joe Busky

and on for Thanks, the quarter Doug, begin and with operating a our full detail everyone. results the year. afternoon, bit good will more I

comparison Quidel rates I the have supplemental all XXXX year As if full the XXXX, a to supplemental quarter of combined that full combined basis, to as Ortho referred of and the the and been periods XXXX XXXX presented of growth on company’s fourth quarter and fourth from performance operating as to the year a may previously, facilitate from be mentioned combined the applicable to of referenced for are information.

with I strong today year So great exceeded guidance Day me the two, line a let provided by we saying that we that; one, both the and providing that will those are Investor was three-year in expectations; QX December. with start our provide XXXX at detail now more on in that finished our outlook areas. is

recorded Starting by we Molecular seven. provided guidance with revenue the In the excluding on in revenue up quarter. in totaled revenue COVID-related November. in quarter, QX million, above driven fourth Revenue is $XXX COVID-related the of million which currency the Diagnostics. came at revenue Point-of-Care slide and breakdown $XXX XX.X% in constant we

we sales in in about constant The points total decrease translation basis XXX of total, a XX% resulting million, sales revenue in So $XXX decreased currency decline of recorded of by year-over-year XX%. growth currency.

$X.X up revenue billion. XX% For year, constant in the to was currency full total however,

Excluding full believe in the several that year in and diagnostics saying we forward. appropriately, and COVID-related state others it begin we as have is now endemic with for other Note and respiratory constant increased to quarters revenue we been revenue we space COVID-XX transitioning an revenue, our revenue disease, as XXXX just and see XX% now, respiratory bucket to will in currency. COVID-XX another

tailwinds business unit that cumulative respiratory XX,XXX excluding our continue currency has the Turning associated and view instrument driven Point-of-Care system on be by beneficiary broad and basis the increased our will largely respiratory revenue, XXX% pull-through by constant among These results with to reinforce revenue our our a to especially of been QX testing, Sofia COVID-related of performance placements. grew menu.

Labs to the declined in primarily challenges revenue continued in the China. lockdown XX% quarter, due

in China. volumes donor by Transfusion by Medicine revenue plasma procedure growth driven grew demand, partially due lower high X% single-digit immunohematology screening in to offset with

revenue Diagnostics the in base. a quarter, this on relatively low grew finally, And is though Molecular XX%

North Now X%. America by geography markets currency and regions, XX%, performance EMEA declined a Japan XX% Latin revenue, excluding Asia constant on looking which and quarterly grew at other includes X%, grew China and COVID-related our basis other revenue America, Pacific declined

by driven by quarter, government and contracts. meaningfully Point-of-Care delivered geography COVID-related impact excluding we largest growth received our America, North strong revenue though revenue recently it the two didn’t

for Government contract a initial $XXX maximum did remaining order we one-year million. COVID-XX an $XXX QuickVue at-home the value in XX value and provides ship expected this order a QX. $XX We of million for order million tests. primarily shift million a tests in of million QX U.S. and of tests expect The contract only few the to in One,

recently Government million. for tests up million ship but a And contract we this XX We approximately in a total most then COVID is second $XX also shipped very of more for late a small in amount to QX, QX. expected U.S. received non-guaranteed contract of to

and affected volumes grew In as Positively, strong slowed revenue growth, by strength digits, both Triage. timing by Sofia EMEA, Point-of-Care were double Lab driven negatively the tenders. excluding of COVID-related revenue in

new fourth caused decline and our recurring severe we The late the XX% saw up makes revenues. policy zero we increased through though, acceleration XXXX. into revenue is moved accelerating which of COVID-XX and an COVID of Positively, support which hospital on China, end in in of QX China’s had quarter demand visits, lockdowns company expected as testing to a orders. our double-digit total a impact In about

nice and a XXX%, Recurring Looking revenue. but our which America. consumables North excluding COVID-related by revenue Instrument other at up reagents, XX% revenue. X% includes and in down including strong driven excluding was COVID-related service business, revenue, in sales by revenue wins instrument up our revenue category. QuickVue X%, XX% cash grew TM few grew large QX was

continue challenges to Labs ability business. instruments our chain Global deliver limit our to in supply

new orders seasonality and Labs said, instrument placements That integrated and QX modestly recurring prioritizing Open instrument third to Given quarter. continues in demand up demand, be strong from were instrument we revenue to pull-through. the instruments maximize customer and order our are

year our on revenue turning fourth supplemental below eight. a versus I’d again basis. financial performance comment to prior to on combined slide Now like quarter the

in strong Although rates COVID-related below revenues, year-over-year the delivered impacted were we growth negatively performance topline. a the of by decline quarter

Gross headwinds, expectations to quarter base as largely year, state margin partially COVID-related as from mix. line our the endemic we the well for from a prior FX profit as to favorable XX.X%, offset transition business state, pandemic was with an in down and decline in revenue due by

million, in of Adjusted EBITDA the year-over-year, contracted EBITDA margin strong XX.X%, also again pandemic to year-over-year of to better adjusted than a state expectations EBITDA Adjusted declined the state, our transition COVID-XX due expectations. from to again our endemic $XXX.X to resulting an ahead due revenue.

million interest partially outstanding increase Net rates, million, expense was due combination. the as period interest for average $XX.X in balances anticipated the to lower by the a decrease related of the offset $X to debt

income year adjusted million period. was tax bringing represents for year of the $XX to rate $XX rate provision quarter tax compared full This Our our prior million, for adjusted a fourth to XX.X%, XX.X%. taxes

fourth The supplemental compared the fourth guidance on earnings fourth adjusted of combined quarter in of the diluted fully on and $XX.XX the our adjusted for And was $X.XX of Our basis. in per revenue this year, our share diluted the compared XXXX XXXX earnings by full driven $X.XX, $XX.XX, fully than a the quarter supplemental per greater EPS quarter higher share in fourth to for the a was basis. quarter combined above COVID-related to XXXX year. in was

to of CapEx adjusted flow cash estimate flow funding fourth $XX integration operating million to our we in In EBITDA. and recurring of a the million basis, sheet or slide on cash $XXX XX% $XX GAAP flow $XXX cash and we generated on back after Turning be other QX and quarter and million free balance nine. costs in million adding

quarter, on going and of a down in bringing leverage combination for the paid $XXX in We million include a the net to shares any QX a share In at and least building $XX of terms down We will required to paydown which balanced and as $XXX debt of in in million million intend buy through of repurchases fourth XXXX. second focus balance not paydown approach of maintain debt we down did total debt debt on XXXX. our we flexible back half cash deployment, paying forward, the capital the of sheet.

Investment securities cash COVID-related total debt we with as level consistent Day, debt-to-EBITDA year, what at We supplemental and the top expect leverage quarter to the XXXX revenue marketable we is and leverage quarter said priority of X be Investor to net our X.X we to a ended -- to up and an of ended million levels in at plan maintain leverage net endemic December and to coming a billion. on M&A combined goal with a $XXX continue business. the to declines We opportunities. that over smaller prudent increase maintaining to of while the cash, believe equivalents $X.X XXXX, with are flexibility we X.X and of we good basis times or end have strategic by times the invest and us for for a of end position below in Deleveraging by approximately times the

our to XX. Okay, guidance on XXXX year now fiscal turning slide

to First, I’d broader this on some provide outlook. like context

there sure, although and with respiratory seasonal those and really and plan we respiratory COVID-XX assume be Similar to an knows forward, no XXXX forward. one we in for bucket Going viruses other other transitions it endemic viruses may state. to to spikes

to included we a record-setting flu season, XXXX expect XXXX respiratory including and normal a more season. while to And COVID-XX, respiratory return

market We our share by to our of and expect Sofia underpinned large to growing grow the continue capture respiratory placements. and

Point-of-Care strong and is revenue growth the is healthy market deliver in to our XXXX. Outside expected respiratory,

solid flat business within business our IH in screening. Medicine is Transfusion Our donor core expected about be and growth softness to with

expected an little anticipated more with loaded. it issues move instrument drive recovery which half alleviate in to expected supply back modestly are we a growth, are China solid along to through, Labs is as

business, the the the our with the strong receipt along drive expected expected Savanna ramp meaningful half regulatory of drive sales of Diagnostics in are expected after Molecular year. are Europe in which to U.S. volumes within growth to back revenue in clearance

Given we the strength are expecting are our in the end vitros-XTXXXX we recent plans, China, COVID-related strong volume localization and stat revenue. the in of launch through to seeing Labs double-digit excluding the of in lockdowns growth China, our

And challenge. be disruptions supply inflation to chain global a then and continue finally,

greater we move as access and expect chips are further challenges seeing we However, ease semiconductor through year. the to to

line we as to is in model billion light $X.X of with $X.X these are XXXX guidance, Day three-year at following Total fiscal dynamics, of in in our revenue our introducing So Investor billion. year December. the which presented

respiratory total million, further, rapid to benefit which includes includes X% $XX to $XXX million recently of Breaking revenue COVID $XXX this this flu $XXX respiratory down as to awarded million, $XXX company respiratory $X.XX of revenue and $X.XX contracts to currency X% million to million, revenue $XXX growth, excluding million other to revenue supplemental compared of to to and combined basis million expected billion. $X.X million is Respiratory sales, to XXXX of a grow some $XXX $XXX on revenue of revenue billion constant billion. of government and

is XX.X%. to year. to margin $X.XX, a the million interest includes of diluted Adjusted million, increase of over Adjusted rate range XX.X% the range to in in of expected representing to expected $X be $XXX environment the in to last be $XXX EBITDA the EPS is the which

billing adjusted assumptions be translation helpful are to to no and year days XXXX In that sales XXXX. to compared to we about be of in addition, full I’d the EBITDA. neutral There currency number purposes. for in modeling like differences current At rates, may expect provide

$XXX interest range $XXX is million. Net of to to be in expense expected the million

with diluted of flow Investor end then cash XX.X%. tax a of year XX% adjusted lower XX% be count expect average are said of our we free million. the finally, we full at consistent year to at adjusted expecting And about share full what weighted Day, of EBITDA. XX.X We the to And have rate recurring

weakness business, strong quarter to our So, faced results as generally fourth in temporary Labs, in positioning drove our exceptional due most summary, largely as the China the lockdowns. were respiratory largest even market resilient and the results

guidance line back season, normal fully profile. support we model in long-term for a two-year and respiratory to Investor outlook comp XXXX, in revenue, our This we CAGR continue XXXX which business to bounce we a difficult provides cause indicates. XXXX Labs growth high Day. excluding for beyond In to COVID, expect will with X% expect guidance single-digit a expect And a long-term our XXXX, our as at we the delivering X% on provided and

we with to ready questions. think, are call open Operator, that, I now the for So,

Operator

The first comes of the Instructions] question [Operator Blair. Brackmann of Please William Andrew from line proceed.

Andrew Brackmann

maybe for just But think, comments you Thanks here, could as start the taking of impact we scripts. does to and think how Hey, through variables moving on if out, I on of value the business Thanks. a that X% Joe, helpful. here? the about I impacting think, the that maybe number, X% guys. you guide thinking on you were year how Good wins cross about in that thought get guess, Maybe the the of appreciate also base to drivers can called your was lot progression about I to I as talk just questions thoughts afternoon. those and pacing the lot sort already of the pieces, then I those just anticipated. clear those a are

Doug Bryant

question. Yeah. Thanks the for Hey, Andrew.

the little little a will also we more couple recovery more certainly of little be then think be As reasons. loaded. in expect Labs well. be the more recovery instrument And growth back-end loaded a in that, a we a do the for comments, loaded back-end back-end Labs will the as China particular, will I backorder that One,

particularly I a more going the year, little half that the into growth second to think revenue QX. So that is the push of of

that QX that QX. of given quickly also of the very end would I a at flu respiratory with XXXX, the season how strong played fairly sort ended out season add in in

expecting respiratory fairly more again are expecting QX. to is some move typical in in QX, respiratory which We we season a are very that into a not going but of season heavy revenue QX,

Andrew Brackmann

EBITDA there? for on bit the profitability adjusted And looks little front, a like earnings guess similar And on that. for thoughts the question here. and pacing share then both higher were I feared dollars Okay. any then than a per Thanks it just

how thoughts year So should of Thanks. trends any thinking margin sort and OpEx? sort around or gross specific we of comments any about for be the

Joe Busky

Yeah. EBITDA our what particularly is quarters latest the that stronger QX QX the lower you XXXX in seasonality to QX said QX QX we those still have margins costs, to and you of and that have of for to gross of have I produce it’s going mid-XXs low revenue on range. revenue margins and QX, GP quarters you sort And calls, still full quarters EBITDA going been in to so we quarters margins year, QX. to because and are going a year of then stronger QX, be with saying, as margins the and expect and and that, lower slightly Consistent with previous in a have in GP to that’s going with get in have when level and fixed got QX,

Doug Bryant

our quarter and that Joe, investors think most add, terms this, historically, has of lowest just our of been know can I in I QX if And revenue.

Andrew Brackmann

Thanks, Okay. guys.

Joe Busky

Thanks.

Doug Bryant

Andrew. Thanks,

Operator

Please Thank question the James. next you. comes proceed. Raymond line from Cooper of Andrew of The

Andrew Cooper

of like just Andrews million certainly jump thing I teed COVID. million $XXX I the being But kind $XXX here. back-to-back to be normal that it, into and are commentary going guys. think into to for XXXX the of one investors Thanks, is to

think it at some or those it contribution include sounds least does government from. I contracts like

and play of general? and what course respiratory that’s in sort of some the settling of, Joe, to might normal are of So out, can seasonality you context in COVID through out for going the where what for of said of us you year give how sense kind about you just be flu the in a

Doug Bryant

our million go $XXX range. the We Yeah. million to Hey, -- Andrew. is $XXX still did

about can contracts. treating government as So that’s not that usual. -- But the we that’s are consistent and we talk and normal

Joe Busky

contracts it’s were it’s $XXX we And and to we it have Investor said because government $XXX know for at in level Yeah. million what we we hand. with up $XXX Day, million got million, saying to endemic have of $XXX is you million this consistent that exactly, state

Doug Bryant

Yeah.

Joe Busky

So there. that’s -- there’s change no

Doug Bryant

what was That’s Yeah. to say. I trying

Joe Busky

flu And as $XXX there’s season XXXX. no what same the in defined to for we guidance have million, $XXX the normal million change is we which a gave either

what to we back a flu that calling are are guidance. that’s this season. XXXX in That’s -- We inherent and normal

Doug Bryant

Yeah.

Andrew Cooper

helpful. Perfect. Okay. That’s

Doug Bryant

want as to respiratory well? you total about Do talk

Joe Busky

and Yeah. then the of you molecular would RS… got just what have Those pieces are main respiratory, I two and the call which be will

Doug Bryant

[Inaudible]

Joe Busky

strep… …

Doug Bryant

Yeah.

Joe Busky

…in million million the to range. $XX $XXX

Doug Bryant

three are pieces. those So the

Joe Busky

Exactly.

Andrew Cooper

mentioned a that I I us piece in right Labs, appreciate on Perfect. business, sizing rare just give adult specifically the some the of kind China contribute lockdowns of you give supply chain those a dynamics for you tender the versus EMEA the how just impact big growth footing business. a -- a could perspective? lift, OUS versus strip each and as had Maybe for from us now. sense of of of can sense next those

Joe Busky

you Doug Well, color. can start then any and I can add

that timing XXXX. the say tender XXXX in of was timing I It was rate into QX XXXX EMEA, Andrew, in growth tenders with -- -- QX I issue significant. wouldn’t the really the from wouldn’t causing For more that’s

going I as XXXX which was to So get fully growth range, well. single-digit where in expect the are low we EMEA is it that into

there’s be new expect range growth nothing We still no the XXXX. in there. in -- EMEA to really single-digit So low

it In for it outpatient was difficult sense. in China, makes when really China. number, quarter, look -- a decline our market, the outpatient doubt visits the in no But overall at you the

Doug Bryant

The down… patients number was of

Joe Busky

Yeah.

Doug Bryant

much XX%, … so happening… it what mirrors pretty

Joe Busky

Yeah.

Doug Bryant

what than well. in as different see from country not it’s other that And companies we

Joe Busky

for we seeing in flow mentioned. on boxes we opened XXXX we China, I of And have so a -- increased our as nicely and through have things do double-digit up, since have seen confidence Correct. growth lot are in the

Doug Bryant

now. fact, months couple that it’s In been for of a

Andrew Cooper

hop and stop back Okay. will Thanks. there the I in queue.

Doug Bryant

Okay.

Joe Busky

bet. You

Doug Bryant

Andrew. Thanks,

Operator

Thank of Please proceed. Citi. next you. Donnelly Patrick question The comes from

Patrick Donnelly

Hey, you questions. for guys. the Thank taking

Doug Bryant

Sure.

Patrick Donnelly

I on Joe, you have well maybe on know aware the this the people EBITDA amount one one. of are focus side. of

middle, kind we $XXX to So understand I on don’t kind you stepping right? already. ask XXXX to this you make maybe forward, the COVID of about about the of that mean But XXXX mean, think I just is million government XX% want when contracts. have I right mentioned you guidance. going sure in point of the off

than fear be the as I a of the and this work takes maybe there’s about on think little this think and EBITDA, those least point just that of those lower is to on forward? of stepping a at I tend COVID talk kind then out year we step some XXXX way through down, look average. moving retail But our corporate at kind kind of pieces as right off the comes maybe

Joe Busky

Yeah. Patrick. Hey,

million back point COVID, pretty the you a revenue $XXX is another you there’s with of million. guide no fair endemic right, all it change doesn’t we $XXX think it’s really as super you it’s margin. carry significant I which up million And $XXX just go there amount government because to jumping level annual in because made those said, again, XXXX point, a of being if to orders, that on look, of are

I good think do it’s So jumping point. a off

margin in that so is And Investor at the to right XX%, our gave. midpoint of EBITDA in what December. the middle guide is Day range talked of at we XX% which XX% about the we that It’s

going -- know get there margin, to going get comments, growth So no going overachievement is good back revenue Doug’s get goal are we going there to it’s feel there are on doubt. XX% through to we it get how about a to get and up to greater synergies. pretty And there, the to we EBITDA do that. to But through we

Patrick Donnelly

pathway $XXX way think about guide appreciate time around to U.S. number? can timing talk this you layered just guess, probably assumptions not the just here EUA our the in there, and line the I how maybe seems into that just the happening. to are be would the And in just maybe are I But helpful. here we talk It Savanna the then time quarter you where is supposed Doug, and I That’s be over think the years, on that. XXX(k) U.S. it’s then, are assumptions, through, the I and great? Okay. can very on the we that like submission. here? that’s line million again, progressing three

Doug Bryant

Yeah. Thanks Patrick. for that question,

at. will I just think clarify are it us help we

XXX(k) the EUA RVP that. shortly will be just are We for and expecting April still after in

very we the So launch. track are much for on

think around cartridge the launch issues we the up. at of we is have the where have now meaningful largely a right are point we are we As most are already instrument the said, been to build ramp effort I capacity at resolved, and

surely. manual lines timing down to we are the the we cartridges Obviously, but immediate we on in automated that we ability very on got the expect we Europe. of in we have place. line, doubling of we depending potentially the that to have the are -- There think So have millions can mainline make make demand

are So while. shape. I It’s good in been a think we

hi-ho So lot I I of at well cross-selling. and And effective. lot been anxious a in say hearing are United we meeting would how to we and States, see kickoff a am It’s do. our the of

because way are It’s think this other I of immunoassay well going it’s chemistry extremely the group. attitude. attitude. we the VITROS we shape. training am point, the commercializing. about The I product, collegiality I not and here about at like talking just so making I the also like is Mostly, in are good the can-do cooperation, about analyzers. But encouraged instruments and the with

Patrick Donnelly

has It guys. in the a but and it Doug. while, seeing Understood. looking you, been to Yeah. forward Thank market, Joe out

Doug Bryant

Patrick. Thanks,

Operator

Conor question Thank from McNamara comes proceed. of you. next RBC. Please The

Conor McNamara

Thanks guys. appreciate for it. question. I taking Hey, the

Doug Bryant

Hi.

Conor McNamara

back getting regulatory you... Just if to business,

Doug Bryant

Hi, Conor.

Please go Sorry, Conor. ahead.

Conor McNamara

you guys okay? you hear guys hear me Can me -- can

Doug Bryant

Yeah. you, Absolutely. Conor. Thank Absolutely.

Conor McNamara

Okay.

the this back on contract just including of the business, think you to all year, just if respiratory kind pieces moving the of getting government about for COVID. So

year’s into just that size business size that business? of once And not but and change about that? does wise how getting Savanna, of think next year then should all Going we going the into respiratory total you have do including guidance, next how the forward,

Doug Bryant

Joe. ahead, Go Yeah.

Joe Busky

Conor. And I it again, can the start up into pieces, breaking Yeah. here.

think I the $XXX would again numbers. Those we $XXX are the $XXX the go million million back $XXX to to COVID and two million. base in flu the rapid to million

revenue be is based And obviously, slope the because into Savanna Savanna of call then is going a and are that XXXX, pieces got you that your million the launch, strep, and to then we million RVPX to as the And so I RVPXX. you RSP be respiratory, forward. those bit on of the a as of number, the TBD or going to that the number because ramp you mentioned other little it’s $XXX it, the some and $XX move have piece move

Conor McNamara

excitement of Savanna, success the Thanks. you the Got seen of it. some cross-selling about? and of That you just some -- just makes some of sense. have without areas what mentioned excited And are and then the what cross-sell Doug, have that reps they are really

Doug Bryant

the we the people that’s with in of our got they a reasonably accounts are Triage bit Ex-U.S., Right too. in the into the Ortho the with little successful number I surprised have Savanna, a former at mainly And -- assays. people close and would fair it to we encouraging. platform and the now have least, spending is think say U.S. in have mainly a cardiovascular launch Europe that taking limited enthusiasm been by we be opportunity for Quidel there

Conor McNamara

question. a Thanks nice well. and for appreciate I on quarter. Very it taking the congrats

Doug Bryant

Conor. Thanks, Yeah.

Operator

proceed. Thank you. Eliza from Garcia comes next The of question Please UBS.

Eliza Garcia

for it. squeezing me guys. in appreciate Thanks much Hey, so here. Really

of there So have and the kind Lab incremental were to in the of you it the you the those add open think business I given of orders. parts if fill that order X% kind open topline to kind moving appreciate could I are XXX some --

maybe how there into provide if I is an of could any about even to it guidance on of constraint think like it? think guess capacity about could quickly to just or So case layered this, how how downside be the you resolution what’s the or kind in upside in guideposts

Doug Bryant

that order eliminating visibility back entire $XXX to to it get Well, the was it increasing that and necessary to wasn’t it growth. we manufacture to have instruments say X-point improvement would I think, million the It down around somewhere the got the or by supply be so… in to fair to chain

Joe Busky

was normal level… Which a

Doug Bryant

if be which … million. typical we at level normal $XXX about would would exit it year

are a in additional confident order. So rate can observe are exit a just increasing back about that get probably pretty we rate and to would -- talking are clear, the naturally with not boxes, we an we more back But to create close be which we normal instruments as XXXX. well

happen not But either. immediately that’s to going

improving be at. you not quite are hope at want of level I needing little and do that it’s the clear. something? bit encouraging yet for are Joe, we quarter, to to that’s We a but add the have first we news

Joe Busky

Yeah.

and right way into all going $XXX guide, backlog XXXX goes in from million I that, drill just we is just down the modestly. We came the It we be would to that’s the that where did we to million. to be. clear, did So assumed it not, it take down that to add as to not that full to want $XXX assume

Eliza Garcia

pointing troponin Okay. of A, kind shook that you $XXX should helpful. for to million think had kind flu, been year we potentially that’s the just, could was Super XXXX? OUS. test and have as U.S. And about I of, if then -- if the of opportunity out the how kind you to you confirm How said high And TriageTrue guess to I there? in any updates back launch the well sensitive around think,

Doug Bryant

Yeah.

say flu $XXX the first clear, is be question million. I To guess. total First you heard I I think

Joe Busky

XXXX. In

Doug Bryant

XXXX. In

Joe Busky

correct. That’s

Doug Bryant

she said? what Is that

Joe Busky

Yeah.

Doug Bryant

stated that She correctly.

Joe Busky

Yeah.

Doug Bryant

And then second piece? the

Joe Busky

TriageTrue…

Doug Bryant

Oh! Eliza.

Joe Busky

…and troponin.

Doug Bryant

Sorry.

I that. actually Sorry, that missed -- Yeah.

to will are are we working the we still to FDA respect But determine through once to FDA. the And that be those are we next conversations, get We with are where prepared with at. disclose steps submission. at we working now, we the right where with point

Joe Busky

selling CE. we are Europe But in under

Doug Bryant

CE. Yeah. Two questions.

the you asking Let’s Are be about asking Triage? VITROS about on clear. Eliza, are system? you

Joe Busky

Triage.

Eliza Garcia

Triage.

Doug Bryant

-- Perfect. asking Perfect. okay. Are you Yeah.

are high in the fact, the setting should and And automated process market. fully troponin Triage. line better in up are of competitive manufacturing We be currently. will that sense be that the be for better, we the expect we yields we on will costs in our that And an

there. us that a pretty to it’s So I it’s think say safe good opportunity for

Eliza Garcia

all guys questions. taking Great. my Thanks much for so

Joe Busky

you. Thank

Operator

Nowak from Please next Thank question Craig-Hallum. The proceed. Alex you. of comes

Alex Nowak

everyone. continue the on flu afternoon, how to I to want Good for just about think around XXXX. season here the Great. it theme and Okay.

sales at You of million to $XXX if for XXXX, back flu put number but the you did $XXX flu XXXX, $XXX you year. million million, go that

were share the rest that really more new this gains gains, difference of for is really talking And the testing that could mean you share about? the what the normal about Sofia with does that if the business So that pull is instrument? or you it’s alongside combo

Doug Bryant

customers. the due XX,XXX. the were X% because base instruments up over the was we under we that are is share I total That’s trailing you XX,XXX. And remember placed are -- Globally the that U.S. installed We XX-month to we were talking period. now we it gain, at Well, our think, XX,XXX XX,XXX year I think States, prior in United in significant a in about, number. you

Joe on that that the yeah, that’s and shows pull-through an So, product, we expectation have as RSV but if mentioned. have will in strep, we up

and moment. So time -- I reasonable you it could think right are But pretty have for be I little estimate higher, are peg challenging I think a a for being. us the that’s it’s that think I sense the we bit a thinking possible. we

Alex Nowak

actual sense. there’s know can this I wanted cash cash divergence I around walk flow maybe than And the recurring bit onetime between get like to free in numbers million flow some million. free some a and conversion, clarification to Okay. quarter free adjusted expect items EBITDA, cash then recurring just Makes $XX have total EBITDA $XXX in flow higher flow, you what the cash I through free flow then to your cash there, free so But being that. XXXX? EBITDA,

Joe Busky

recurring to for quarter for that be flow range free cash the -- gets should year $XXX say. if for quarter, million add or CapEx EBITDA you the operating XX% cash was XX% range which XX%, cash, looking so makes million low that on of and this somewhere same the you and I it, Yeah. is flow the range $XX million next less guidance, that million in to of adjusted forward sense end lay $XX of then -- will, non-recurring expect that XXXX, of to and year The our of of free XX% $XXX call you into we in one-time back, for

Alex Nowak

Okay.

So for expect year? that next

Joe Busky

right. That’s Yeah.

Alex Nowak

Thank it. you. Got Okay.

Doug Bryant

Sure.

Joe Busky

Thank you.

Operator

Thank question Nephron. next you. Meehan The from Please proceed. of comes Jack

Jack Meehan

sure we flu have am data, you are right the Good CDC flu we Thanks. respiratory. quarter for rapid expectations drop In point seen three I off buckets Virena, not those hoping in to I but what want sure could first in just in make you seeing for On activity. COVID, the and XQ. the guidance, other have finer afternoon. was this I draw expectations just on a

Joe Busky

How Hey, Jack. Yeah. are you? Yeah.

I Given QX. end earlier, pretty at quickly did said drop season I think of the respiratory the

still So I light, we expecting COVID’s are a hanging flu will season. call it, there. fairly in

well. If in you hanging in got the we there. still there, infection the government flu, hanging is contracts COVID’s And rates look as down ILI at then but COVID came have

will think than to that flu go COVID where have season I a QX rest respiratory decent we QX, is So is going guidance. the in driven of in by and then the respiratory season more

Doug Bryant

Yeah.

and Let Jack me of the color, would but most the the have off it. higher I in positivity add pretty at because this chart, access asked a the see rates, Virena data are doesn’t be still I about little drastic positivity really rates just than look audience time. to When they now at drop

what, peak, week second the did it fair, be to but -- December. So in

Joe Busky

Yeah.

Doug Bryant

nicely. pretty down And so it’s been coming

should first So It I think won’t have reasonable we a normal… you quarter. though, are right, be the just

Joe Busky

Right.

Doug Bryant

biggest in that. will leave year, … quarter I with the

Jack Meehan

region China and in Is And business you, quarter? to much both was in core Joe then Medicine I down for and -- what referenced first how or Doug, the Transfusion ex-COVID. XX% legacy versus you Lab the kind think this Quidel it. do Got of the just of expect

Doug Bryant

don’t overall patient it’s… down know most volumes Labs, XX% just period I yeah, and being Well,

Joe Busky

Everything was down.

Doug Bryant

… down.

Joe Busky

was be it the was it of bouncing is Yeah. to chunk going but Labs biggest down, it’s Everything QX and back.

nice the We in through flow on seeing QX. instruments are

Jack Meehan

Would you quarter? in expect down though, first still be to the it year-over-year,

Joe Busky

be will up. It up. will It be

Jack Meehan

me, forecast the one, granularity for you there provide XXXX that can just Last is around you will humor for Okay. if segment? molecular, just any

Joe Busky

going the back-end back-end U.S. and The loaded. be Savanna will think, to the clearance in loaded again it’s be mostly I again, regulatory due growth mean, I Well, to

probably think that’s give the I I best can color you.

Jack Meehan

Joe. Okay. Thanks,

Joe Busky

got You it.

Operator

from Woodring Please JPMorgan. of Casey question Thank next of comes and the final you. line the proceed. The question

Casey Woodring

what’s fitting across your should Great. about Hi, for and versus products buckets? guess we within expectation trending how different guys. that pricing just three for those on pricing, think XXXX Thanks in. me in XXXX I your respiratory

Doug Bryant

Yeah.

our We price are hanging wise. still

We expect flat price.

Casey Woodring

you one, have last particularly the Got And just of that Sofia’s, noted the six What then in gives terms helpful. confidence prepared. That’s on multiple or you five in it. average that… hospitals the that sites with

Doug Bryant

Yeah.

Casey Woodring

those … instrument respiratory into then you And multiyear contracts, and revenue flu those those how sites elaborate you other multiple visibility just those can numbers? have on do much consolidate? won’t

Doug Bryant

So be a clear. per of instruments couple things. X.X to hospital, is Hospitals

only In just terms X% think, I was the boxes I made most of consolidation, out that there that those of important COVID. point run

the the homes nursing example, the So be would in returns. expect, -- you could boxes for

end a But yet. that expect it handful You opportunity run could be of can at that of the day, COVID-only customers would the to consolidate. we an maybe just haven’t seen

moving forecast I not forward, know but are it it to I would say, yet. how don’t So we just seeing

Casey Woodring

Thank helpful. That’s it. Got you.

Doug Bryant

Thank Sure. you, right. Casey. All

Operator

Thank you.

Doug Bryant

commercial great I of really a and extraordinary folks. think say the whether talking the have going just I did -- talking in closing, Board, the for the about the supply and am meetings, well, finish factories that’s to chain and books. get in all everybody for integration across thanks strong I your We revenue in the the or questions. to I about not synergy, is thanks when it’s actually, dedication and our for am people Once questions again, watching in thank I cost or that, XXXX. together want

am everybody success expecting are I I happy great people think getting is along and a tremendously, XXXX onward. from

everybody. thanks, So,

Operator

conference the concludes you -- for That conclude thank That participation. your call.

lines. You may now disconnect your

QuidelOrtho (QDEL) 15 Feb 232022 Q4 Earnings call transcript