Mr. Brent Saunders reports

BAUSCH + LOMB ANNOUNCES THIRD-QUARTER 2023 RESULTS AND RAISES FULL-YEAR 2023 GUIDANCE

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

"We continue to grow revenue at or above market thanks to the strength of established and emerging brands that cover the entire spectrum of eye health," said Brent Saunders, chairman and chief executive officer, Bausch + Lomb. "Our multiyear effort to rewire the company is gaining traction as we methodically review and improve areas critical to our success, with a focus on sales and supply chain."

Select company highlights:

• Acquired Xiidra (lifitegrast ophthalmic solution) 5 per cent, a non-steroid eye drop specifically approved to treat the signs and symptoms of dry eye disease (DED) focusing on inflammation associated with dry eye, and certain other ophthalmology assets;
• Launched Miebo (perfluorohexyloctane ophthalmic solution), for the treatment of the signs and symptoms of DED in the United States;
• Launched Lumify Eye Illuminations in the United States, a new line of hypoallergenic specialty eye care products scientifically developed to cleanse, nourish and brighten the sensitive eye area;
• Launched enVista Aspire monofocal and toric intraocular lenses with intermediate optimized optics in the United States.

Third quarter 2023 revenue performance

Total reported revenues were $1,007-million for the third quarter of 2023, as compared with $942-million in the third quarter of 2022, an increase of $65-million, or 7 per cent. Excluding the unfavourable impact of foreign exchange of $10-million, revenue increased by approximately 8 per cent on a constant currency basis compared with the third quarter of 2022.

Vision care segment

Vision care segment revenues were $648-million for the third quarter of 2023, as compared with $597-million for the third quarter of 2022, an increase of $51-million, or 9 per cent. Excluding the unfavourable impact of foreign exchange of $13-million, segment revenues increased on a constant currency basis by approximately 11 per cent compared with the third quarter of 2022, primarily due to higher sales of Lumify and eye vitamins in the company's consumer eye care business and higher sales of SiHy Daily lenses and Ultra within its contact lens business, partially offset by unfilled orders as a result of the implementation of a system upgrade at a U.S. distribution facility that impacted the company's contact lens business. Bausch + Lomb expects to substantially resolve the Lynchburg implementation disruptions, and optimize the system upgrade, during the first quarter of 2024.

Surgical segment

Surgical segment revenues were $185-million for the third quarter of 2023, as compared with $172-million for the third quarter of 2022, an increase of $13-million, or 8 per cent. Excluding the favourable impact of foreign exchange of $3-million, segment revenues increased on a constant currency basis by approximately 6 per cent compared with the third quarter of 2022, primarily due to increased demand of consumables and equipment.

Pharmaceuticals segment

Pharmaceuticals segment revenues were $174-million for the third quarter of 2023, as compared with $173-million for the third quarter of 2022, an increase of $1-million, or 1 per cent, on a reported and constant currency basis. The increase compared with the third quarter of 2022 was primarily due to higher sales of Vyzulta and the company's international pharmaceuticals portfolio.

Operating results

Operating income was $40-million for the third quarter of 2023, as compared with $46-million for the third quarter of 2022, a decrease of $6-million. The change was largely driven by an increase in selling, general and administrative expenses, driven by higher professional fees, primarily related to business transformation costs, and higher selling, advertising and promotion expenses due to product launches during the quarter, primarily Miebo.

The company is committed to continuing to maintain a disciplined approach to cost management and to leverage its infrastructure.

Net loss

Net loss attributable to Bausch + Lomb for the third quarter of 2023 was $84-million, as compared with $18-million for the third quarter of 2022, an unfavourable change of $66-million. The change was primarily due to operating results noted above as well as higher interest expense.

Adjusted net income attributable to Bausch + Lomb (non-generally accepted accounting principles (GAAP)) for the third quarter of 2023 was $76-million, as compared with $107-million for the third quarter of 2022, a decrease of $31-million.

Cash from operations

Cash flow from operations for the third quarter of 2023 was $48-million, as compared with $27-million for the third quarter of 2022, an increase of $21-million. Cash flow from operations was positively impacted in the third quarter of 2023 primarily by the timing of collections and payments in the ordinary course of business, offset by a strategic increase in inventories.

Earnings per share

GAAP earnings per share (EPS) basic and diluted attributable to Bausch + Lomb for the third quarter of 2023 was (24 cents), as compared with (five cents) for the third quarter of 2022. Adjusted EPS attributable to Bausch + Lomb (non-GAAP) for the third quarter of 2023 was 22 cents, as compared with 31 cents for the third quarter of 2022.

2023 financial outlook

Bausch + Lomb raised its revenue and adjusted earnings before interest, taxes, depreciation and amortization (non-GAAP) guidance for the full year of 2023, as noted herein.

Balance sheet highlights:

• Bausch + Lomb's cash, cash equivalents and restricted cash were $360-million at Sept. 30, 2023;
• Completed an offering of $1.4-billion aggregate principal amount of 8.375 per cent senior secured notes due 2028 and borrowed $500-million of new term B loans under its new incremental term loan facility, a portion of the proceeds from which were used to finance the upfront payment for the acquisition of Xiidra and certain other ophthalmology assets and pay related acquisition and financing costs;
• Basic weighted average shares outstanding for the third quarter of 2023 were 350.8 million, and diluted weighted average shares outstanding for the third quarter of 2023 were 352.7 million.

Conference call details

Date: Wednesday, Nov. 1, 2023

Time: 8 a.m. ET

Participant event dial-in: 1-888-506-0062 (North America), 1-973-528-0011 (international)

Participant Access Code: 632888

Replay dial-in: 1-877-481-4010 (North America), 1-919-882-2331 (international)

Replay passcode: 47447 (replay available until Nov. 15, 2023)

About Bausch + Lomb Corp.

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, Ont., with corporate offices in Bridgewater, N.J.

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