Mr. Thomas Appio reports

BAUSCH HEALTH ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2023 RESULTS

Bausch Health Companies Inc. has released its fourth quarter and full-year 2023 financial results.

"I am pleased that we delivered against the financial guidance we established at the beginning of 2023. During the year, we made meaningful progress in driving performance across each of our business segments, continued to focus on our balance sheet and liquidity, and made significant progress on our key R&D initiatives, all helping to position the company for continued growth and performance. We are excited about the positive momentum in our business as we enter 2024 and will continue to prioritize advancing our pipeline, investing in initiatives to continue to drive growth and positioning the company for long-term success," said Thomas J. Appio, chief executive officer, Bausch Health.

Bausch Health (excluding Bausch + Lomb) research and development update:

• Amiselimod (S1P modulator): once-daily oral treatment of mild to moderate ulcerative colitis:
  • Phase 2 study completed enrolment in July, 2023, and positive top-line data results announced in December, 2023.
• RED-C: prevention and delay of first episode of hepatic encephalopathy:
  • Enrolment of one of two global phase 3 trials completed, with enrolment of the second trial on track and expected to be completed in the first half of 2024.

Fourth quarter and full-year 2023 revenue performance

Total reported revenues were $2.41-billion for the fourth quarter of 2023, compared with $2.19-billion in the fourth quarter of 2022, an increase of $215-million, or 10 per cent. Excluding the favourable impact of foreign exchange totalling $6-million and the impact of acquisitions of $122-million, revenue increased by 4 per cent organically compared with the fourth quarter of 2022.

Total reported revenues were $8.76-billion for the full year of 2023, compared with $8.12-billion in the full year of 2022, an increase of $633-million, or 8 per cent. Excluding the unfavourable impact of foreign exchange of $45-million and the impact of acquisitions of $141-million, revenue increased organically by 7 per cent compared with the full year of 2022.

Salix segment

Salix segment reported and organic revenues were $583-million for the fourth quarter and $2,250-million for the full year 2023, compared with $581-million for the fourth quarter and $2,090-million for the full year of 2022, an increase of $2-million in the fourth quarter, and $160-million, or 8 per cent for the full year. Sales for the quarter reflected growth driven by Relistor, while Xifaxan and Trulance sales were in line with the fourth quarter of 2022. Sales growth for the full year was primarily driven by Xifaxan, Relistor and Trulance.

International segment

International segment reported revenues were $290-million for the fourth quarter and $1,071-million for the full year of 2023, compared with $261-million for the fourth quarter and $988-million for the full year of 2022, an increase of $29-million, or 11 per cent in the fourth quarter, and $83-million, or 8 per cent for the full year.

Excluding the favourable impact of foreign exchange of $16-million for the fourth quarter and $31-million for the full year of 2023, and the impact of divestitures and discontinuations of $2-million for the fourth quarter and $10-million for the full year of 2022, segment revenues increased organically by 6 per cent for the fourth quarter and full year, compared with the fourth quarter and full year of 2022, with growth across all three regions -- EMEA (Europe, Middle East, Africa), Canada and Latin America.

Solta Medical segment

Solta Medical segment reported revenues were $103-million for the fourth quarter and $347-million for the full year of 2023, compared with $99-million for the fourth quarter and $300-million for the full year of 2022, an increase of $4-million, or 4 per cent in the fourth quarter, and $47-million, or 16 per cent for the full year.

Excluding the unfavourable impact of foreign exchange of $1-million for the fourth quarter and $8-million for the full year of 2023, segment revenues increased organically by 5 per cent for the fourth quarter and 18 per cent for the full year, compared with the fourth quarter and the full year of 2022, primarily driven by strong growth in Asia-Pacific, especially China.

Diversified segment

Diversified segment reported revenues were $259-million for the fourth quarter and $943-million for the full year of 2023, compared with $256-million for the fourth quarter and $978-million for the full year of 2022, an increase of $3-million, or 1 per cent in the fourth quarter, and a decrease of $35-million, or 4 per cent for the full year. Segment revenues increased organically by 2 per cent for the fourth quarter and decreased 3 per cent for the full year, compared with the fourth quarter and the full year of 2022.

Bausch + Lomb segment

Bausch + Lomb segment reported revenues were $1,173-million for the fourth quarter and $4,146-million for the full year of 2023, compared with $996-million for the fourth quarter and $3,768-million for the full year of 2022, an increase of $177-million, or 18 per cent in the fourth quarter, and an increase of $378-million, or 10 per cent for the full year.

Excluding the unfavourable impact of foreign exchange of $9-million for the fourth quarter and $68-million for the full year of 2023, and the impact of acquisitions of $122-million for the quarter and $141-million for the full year 2023, segment revenues increased organically by 7 per cent for the fourth quarter and 8 per cent for the full year, compared with the fourth quarter and the full year of 2022.

Consolidated operating income (loss)

Consolidated operating income was $362-million for the fourth quarter of 2023, compared with an operating loss of $236-million for the fourth quarter of 2022, an increase of $598-million, reflecting higher goodwill impairment charges in the fourth quarter of 2022 compared with the fourth quarter of 2023.

Consolidated operating income was $963-million for the full year of 2023, compared with operating income of $454-million for the full year of 2022, an increase of $509-million. The change reflects, among other factors, the following: an increase in contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) of $435-million, increased selling, general and administrative expenses of $292-million reflecting investments in the Salix and Bausch + Lomb segments, higher research and development expenses of $75-million, primarily related to Salix projects, and decreases in goodwill impairments of $331-million and in amortization of intangible assets of $138-million.

Net loss attributable to Bausch Health

Net loss attributable to Bausch Health for the fourth quarter of 2023 was $39-million, compared with a net loss of $410-million for the fourth quarter of 2022, a favourable change of $371-million. Net loss attributable to Bausch Health for the full year of 2023 was $592-million, compared with a loss of $225-million for the full year of 2022, an unfavourable change of $367-million. These changes were primarily due to the changes in operating income noted above along with lower gains on the extinguishment of debt in the fourth quarter and full year of 2023 compared with the corresponding periods in 2022.

Adjusted net income attributable to Bausch Health (non-GAAP (generally accepted accounting principles)) was $406-million for the fourth quarter and $1,274-million for the full year of 2023, compared with $372-million for the fourth quarter and $1,113-million for the full year of 2022, an increase of $34-million in the fourth quarter and $161-million for the full year.

Loss per share attributable to Bausch Health

GAAP loss per share attributable to Bausch Health was (11 cents) for the fourth quarter and ($1.62) for the full year of 2023, compared with ($1.13) for the fourth quarter and (62 cents) for the full year of 2022.

Adjusted earnings before interest, taxes, depreciation and amortization attributable to Bausch Health (non-GAAP)

Adjusted EBITDA attributable to Bausch Health (non-GAAP) was $869-million for the fourth quarter and $3,014-million for the full year of 2023, compared with $823-million for the fourth quarter and $3,022-million for the full year of 2022, an increase of $46-million in the quarter and a decrease of $8-million for the full year.

Cash provided by (used in) operating activities

The company generated $390-million of cash from operating activities in the fourth quarter and $1,032-million for the full year of 2023, compared with generating $475-million in the fourth quarter and using $728-million for the full year of 2022. The increase in cash flow from operations of $1,760-million for the full year is primarily attributable to changes in business performance as well as the effect in 2022 of reductions of restricted cash as certain litigation settlements became final and unappealable.

Balance sheet highlights as of Dec. 31, 2023:

• Cash, cash equivalents and restricted cash were $962-million.
• Bausch Health (excluding Bausch + Lomb) had availability under its revolving credit facility of approximately $950-million and Bausch + Lomb had availability under its revolving credit facility of approximately $199-million.

2024 financial outlook

The company updated its full-year revenue and adjusted EBITDA (non-GAAP) guidance.

Conference call details

Date: Thursday, Feb. 22, 2024

Time: 8 a.m. U.S. EST

Webcast: Bausch Health website

A replay of the conference call will be available on the investor relations website.

About Bausch Health Companies Inc.

Bausch Health Companies is a global diversified pharmaceutical company enriching lives through its relentless drive to deliver better health care outcomes. The company develops, manufactures and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, medical aesthetic devices, international pharmaceuticals and eye health, through its controlling interest in Bausch + Lomb. Bausch Health's ambition is to be a globally integrated health care company, trusted and valued by patients, health care professionals, employees and investors.

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