Mr. Brent Saunders reports

BAUSCH + LOMB ANNOUNCES FIRST-QUARTER 2023 RESULTS AND PROVIDES 2023 GUIDANCE

Bausch + Lomb Corp. has released its first quarter 2023 financial results.

"Bausch + Lomb delivered a strong first quarter with continued high-quality growth across all three reporting segments and in most of our significant markets around the world," said Brent Saunders, chairman and chief executive officer of Bausch + Lomb. "Revenues grew 5 per cent on a reported basis and 8 per cent on a constant currency basis, driven by solid growth from several key franchises within our vision care segment, strong execution in our ophthalmic pharmaceuticals segment, and increased demand for consumables, intraocular lenses and systems in our surgical segment.

"Since returning to Bausch + Lomb 50 days ago, I've observed that the company has a solid foundation with favourable conditions to support continued demand for our eye health products. Going forward, my focus will be to build on this base and optimize performance to enable Bausch + Lomb to become a best-in-class global eye health company," continued Mr. Saunders.

Select company and pipeline highlights:

• Acquired AcuFocus Inc., whose IC-8 Apthera intraocular lens (IOL) was approved by the U.S. Food and Drug Administration as the first and only small-aperture non-toric, extended-depth-of-focus IOL for certain cataract patients who have as much as 1.5 diopters of corneal astigmatism and wish to address presbyopia at the same time;
• Launched PreserVision AREDS 2 Formula mini soft gels with OCUSorb in the United States;
• Introduced the SeeLuma fully digital surgical visualization platform in the United States and western Europe in partnership with Heidelberg Engineering;
• Launched the StableVisc cohesive ophthalmic viscosurgical device, as well as the TotalVisc viscoelastic system, in the United States;
• Results from the two pivotal phase 3 trials for NOV032 (perfluorohexyloctane), an investigational treatment with a proposed indication of treating the signs and symptoms of dry eye disease associated with meibomian gland dysfunction, were published in Ophthalmology and the American Journal of Ophthalmology, respectively;
• Acquired the rights to market Lumify (brimonidine tartrate ophthalmic solution 0.025 per cent) in 18 additional countries.

First quarter 2023 revenue performance

Total reported revenues were $931-million for the first quarter of 2023, as compared with $889-million in the first quarter of 2022, an increase of $42-million, or 5 per cent. Excluding the unfavourable impact of foreign exchange of $31-million, revenue increased by approximately 8 per cent on a constant currency basis compared with the first quarter of 2022.

Revenues by segment were as shown in an attached table.

Vision care segment

Vision Care segment revenues were $587-million for the first quarter of 2023, as compared with $560-million for the first quarter of 2022, an increase of $27-million, or 5 per cent. Excluding the unfavourable impact of foreign exchange of $20-million, segment revenues increased on a constant currency basis1 by approximately 8 per cent compared with the first quarter of 2022, primarily due to higher sales of LUMIFY (brimonidine tartrate ophthalmic solution 0.025 per cent), Bausch + Lomb INFUSE/ULTRA ONE DAY daily disposable silicone hydrogel contact lenses, the Biotrue franchise, Bausch + Lomb ULTRA monthly contact lenses and the Artelac franchise.

Surgical Segment

Surgical segment revenues were $183-million for the first quarter of 2023, as compared with $174-million for the first quarter of 2022, an increase of $9-million, or 5 per cent. Excluding the unfavourable impact of foreign exchange of $6-million, segment revenues increased on a constant currency basis1 by approximately 9 per cent compared with the first quarter of 2022, primarily due to increased sales of consumables, IOLs and systems.

Ophthalmic Pharmaceuticals Segment

Ophthalmic Pharmaceuticals segment revenues were $161-million for the first quarter of 2023, as compared with $155-million for the first quarter of 2022, an increase of $6-million, or 4 per cent. Excluding the unfavourable impact of foreign exchange of $5-million, segment revenues increased on a constant currency basis1 by approximately 7 per cent compared with the first quarter of 2022, primarily due to higher sales in the U.S. generics business and the international portfolio.

Operating Results

Operating results in the first quarter of 2022 were prepared on a carve-out basis and do not include expenses we are now incurring as a publicly traded company, such as Interest expense and standalone public company costs.

Operating loss was $2-million for the first quarter of 2023, as compared with operating income of $54-million for the first quarter of 2022, a decrease of $56-million. The change was largely driven by an increase in Selling, general and administrative ("SG&A") expenses, due to dis-synergy costs in the first quarter of 2023 associated with the company becoming a stand-alone entity (following its initial public offering ("IPO") in May 2022); restructuring, integration and transformation costs; and higher selling expenses due to inflationary factors mostly in freight and distribution, and investment for upcoming product launches. The change was also driven by an increase in Cost of goods sold, primarily due to higher year over year inflationary pressures and the ramp-up of new manufacturing lines for Bausch + Lomb INFUSE/ULTRA ONE DAY daily disposable silicone hydrogel contact lenses. The company is continuing to maintain a disciplined approach to cost management and to leverage its infrastructure.

Net Loss/Income

Net income attributable to Bausch + Lomb Corporation in the first quarter of 2022 was prepared on a carve-out basis and does not include expenses we are now incurring as a publicly traded company, such as Interest expense, taxes and standalone public company costs.

Net loss attributable to Bausch + Lomb Corporation for the first quarter of 2023 was $90-million, as compared with a net income attributable to Bausch + Lomb Corporation of $20-million for the first quarter of 2022, a decrease of $110-million. The change was primarily due to the decrease in operating results noted above, an increase in the Provision for income taxes and an increase in Interest expense.

Adjusted net income (non-GAAP)1 for the first quarter of 2023 was $34-million, as compared with $85-million for the first quarter of 2022, a decrease of $51-million.

Cash from Operations

Cash flow from operations in the first quarter of 2022 was prepared on a carve-out basis and does not include expenses we are now incurring as a publicly traded company, such as Interest expense and standalone public company costs.

Cash used by operations for the first quarter of 2023 was $56-million, as compared with cash flow from operations of $3-million for the first quarter of 2022, a decrease of $59-million. Cash flow from operations was negatively impacted in the first quarter of 2023 primarily by interest payments that were not incurred in the first quarter of 2022, which was prior to our IPO, and a strategic inventory build.

Earnings Per Share

GAAP Earnings Per Share ("EPS") and Adjusted EPS (non-GAAP)1 for the first quarter of 2022 has been calculated on a pro forma basis after giving effect to our IPO.

GAAP EPS Basic and Diluted attributable to Bausch + Lomb Corporation for the first quarter of 2023 was ($0.26), as compared with $0.06 for the first quarter of 2022. Adjusted EPS (non-GAAP)1 for the first quarter of 2023 was $0.10, as compared with $0.24 for the first quarter of 2022.

Adjusted EBITDA (non-GAAP)1

Adjusted EBITDA (non-GAAP)1 in the first quarter of 2022 was prepared on a carve-out basis and does not include expenses we are now incurring as a standalone publicly traded company.

Adjusted EBITDA (non-GAAP) 1 was $141-million for the first quarter of 2023, as compared with $170-million for the first quarter of 2022, a decrease of $29-million, primarily due to dis-synergies and foreign exchange headwinds, partially offset by revenue growth across all three segments.

2023 Financial Outlook4

Bausch + Lomb provided guidance for the full year of 2023, as follows:

Full-year revenue range of $3.90 - $3.95 billion, reflecting anticipated growth of 5-6 per cent on a constant currency basis1

Full-year Adjusted EBITDA (non-GAAP)1 range of $700 - $750-million

$760-million at the mid-point of the full-year Adj. EBITDA (non-GAAP) guidance range, adjusted for currency headwinds1

Foreign exchange revenue and Adjusted EBITDA (non-GAAP)1 headwinds expected to be approximately $50-million and $35-million for the full year, respectively.

Other than with respect to GAAP Revenues, the company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP)1 to GAAP net income (loss) attributable to Bausch + Lomb Corporation, of forward-looking Adjusted EBITDA (non-GAAP), adjusted for currency headwinds1 to GAAP net income (loss) attributable to Bausch + Lomb Corporation or of forward-looking constant currency growth1 to reported revenue growth, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. These amounts may be material and, therefore, could result in the projected GAAP measure or ratio being materially different or less than the projected non-GAAP measure or ratio. These statements represent forward-looking information and may not represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-looking Statements section of this news release.

Balance Sheet Highlights

Bausch + Lomb's cash, cash equivalents and restricted cash were $358-million at March 31, 2023

Basic weighted average shares outstanding for the first quarter of 2023 were 350-million, and diluted weighted average shares outstanding for the first quarter of 2023 were 351.3-million

Conference Call Details
 
 Date:                          Wednesday, May 3, 2023                                              
Time:                          8:00 a.m. ET                                                        
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About Bausch + Lomb

Bausch + Lomb is dedicated to protecting and enhancing the gift of sight for-millions of people around the world - from the moment of birth through every phase of life. Its comprehensive portfolio of more than 400 products includes contact lenses, lens care products, eye care products, ophthalmic pharmaceuticals, over-the-counter products and ophthalmic surgical devices and instruments. Founded in 1853, Bausch + Lomb has a significant global research and development, manufacturing and commercial footprint with approximately 13,000 employees and a presence in nearly 100 countries. Bausch + Lomb is headquartered in Vaughan, Ontario with corporate offices in Bridgewater, New Jersey. For more information, visit www.bausch.com and connect with us on Twitter, LinkedIn, Facebook and Instagram.

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