Myriad Genetics, Inc. (NASDAQ: MYGN), a leader in genetic testing
and precision medicine, today announced financial results for its
first quarter ended March 31, 2024 and reiterated its
previously issued outlook on business performance for the full-year
2024.
“Myriad Genetics entered 2024 with positive momentum as we
generated double digit revenue growth over the prior year period,
significantly improved year-over-year net loss, and achieved
positive adjusted EBITDA in the first quarter,” said Paul J. Diaz,
President and CEO of Myriad Genetics. “First quarter saw early
indications of market share gains in hereditary cancer and prenatal
testing and we expect this trend to accelerate as we move through
the year. In addition, first quarter average revenue per test
across our product portfolio benefited from expanded coverage and
our ongoing efforts in revenue cycle management. We also remain
optimistic about the evolution of our product portfolio as we
continue to produce additional clinical validation studies and move
closer to the launch of our new products. At the same time, we
continue to advance a number of enhancements to improve access and
ease of use for our customers, including electronic medical record
(EMR) integrations and make meaningful progress in our Labs of the
Future initiative. Myriad Genetics is growing, delivering improved
financial results, and is continuing to invest in the innovation
required to achieve our Mission and Vision to reach more patients
with life-saving precision medicine.”
Financial and Operational Highlights:
- Test volumes of 381,000 in the first quarter of 2024 increased
9% year-over-year.
- The following table summarizes year-over-year testing volume
changes in the company's core product categories:
|
Three months ended |
|
|
|
March 31, 2024 |
|
March 31, 2023 |
|
% Change |
Product volumes: |
|
|
|
|
|
|
|
Hereditary cancer |
71,149 |
|
|
65,484 |
|
|
9 |
% |
Tumor profiling |
13,602 |
|
|
16,154 |
|
|
(16 |
)% |
Prenatal |
171,857 |
|
|
158,020 |
|
|
9 |
% |
Pharmacogenomics |
124,067 |
|
|
109,695 |
|
|
13 |
% |
Total |
380,675 |
|
|
349,353 |
|
|
9 |
% |
|
- The following table summarizes year-over-year revenue changes
in the company's core product categories:
|
Three months ended |
(in millions) |
March 31, 2024 |
|
March 31, 2023 |
|
% Change |
Product revenues: |
|
|
|
|
|
|
|
|
|
Hereditary cancer |
$ |
88.1 |
|
|
$ |
75.7 |
|
|
16 |
% |
Tumor profiling |
|
30.9 |
|
|
|
37.3 |
|
|
(17 |
)% |
Prenatal |
|
44.3 |
|
|
|
36.2 |
|
|
22 |
% |
Pharmacogenomics |
|
38.9 |
|
|
|
32.0 |
|
|
21 |
% |
Total |
$ |
202.2 |
|
|
$ |
181.2 |
|
|
12 |
% |
|
- Gross margin of 68.1% in the first quarter of 2024 increased 70
basis points year-over-year, reflecting operating leverage and
improved ASPs. Adjusted gross margin in the first quarter of 2024
was 68.5%, an increase of 80 basis points year-over-year.
- First quarter of 2024 operating expenses were $165.5 million,
while adjusted operating expenses were $139.1 million.
- Operating loss in the first quarter of 2024 was $27.9 million,
improving $24.3 million year-over-year; adjusted operating loss in
the first quarter of 2024 was $0.6 million, improving $21.3 million
year-over-year.
Business Performance and Highlights:
OncologyThe Oncology business delivered revenue
of $79.4 million in the first quarter of 2024.
- First quarter 2024 hereditary cancer testing volumes and
revenue in Oncology grew 10% and 20% year-over-year, respectively,
reflecting market share gains, and ongoing initiatives to improve
average revenue per test.
- Prolaris first quarter 2024 revenue grew 9% year-over-year,
benefiting, in part, from improved payer coverage.
- First quarter 2024 tumor profiling testing revenue of $30.9
million, decreased 17% year-over-year, reflecting, to a large
degree, a strong contribution from biopharma in the year ago
period.
- Established a research collaboration with the National Cancer
Center Hospital East in Japan to study the prognostic and
predictive value of MRD testing using Myriad Genetics’
highly-sensitive test, Precise MRD.
- Advanced the integration of the recently acquired
CLIA-certified laboratory and Precise Tumor and Liquid assays from
Intermountain Precision Genomics.
- Today announced the reorganization of its European operations
and sale of its EndoPredict business to Eurobio Scientific, while
retaining a license to produce and sell EndoPredict in the U.S., to
better align company resources to its domestic opportunities while
continuing to serve key biopharma partners and patients outside the
U.S.; Myriad will also license to Eurobio the right to sell
Prolaris in vitro diagnostic kits outside the U.S.
Women’s Health
The Women’s Health business delivered revenue of $83.9 million
in the first quarter of 2024.
- First quarter 2024 hereditary cancer testing volumes and
revenue in Women's Health grew 7% and 12% year-over-year,
respectively.
- Prenatal testing volumes and revenue
in the first quarter of 2024 grew 9% and 22% year-over-year,
respectively, reflecting market share gains, and ongoing
initiatives to improve average revenue per test.
- In April 2024, Prenatal Diagnosis
published a study demonstrating exceptional positive predictive
value for 22q11.2 microdeletion screening using Myriad’s prenatal
cell-free DNA (pcfDNA) screen, Prequel®, which incorporates fetal
fraction amplification. The American College of Medical Genetics
and Genomics recently recommended that 22q11.2 screening be offered
to all pregnant patients.
Pharmacogenomics
In the pharmacogenomics category, GeneSight test revenue was
$38.9 million in the first quarter of 2024.
- First quarter 2024 GeneSight testing volumes and revenue grew
13% and 21% year-over-year, respectively, reflecting ongoing
initiatives to improve average revenue per test.
- On April 8, 2024, study results presented at the American
Association of Psychiatric Pharmacists (AAPP) conference indicated
those with major depressive disorder had reduced healthcare
utilization after taking the GeneSight® Psychotropic test.
Financial GuidanceMyriad Genetics does not
provide forward-looking guidance on a GAAP basis for the measures
on which it provides forward-looking non-GAAP guidance as the
company is unable to provide a quantitative reconciliation of
forward-looking non-GAAP measures to the most directly comparable
forward-looking GAAP measure, without unreasonable effort, because
of the inherent difficulty in accurately forecasting the occurrence
and financial impact of the various adjusting items necessary for
such reconciliations that have not yet occurred, are dependent on
various factors, are out of the company's control, or cannot be
reasonably predicted. Such adjustments include, but are not limited
to, real estate optimization and transformation initiatives,
certain litigation charges and loss contingencies, costs related to
acquisitions/divestitures and the related amortization, impairment
and related charges, and other adjustments. For example,
stock-based compensation may fluctuate based on the timing of
employee stock transactions and unpredictable fluctuations in the
company's stock price. Any associated estimate of these items and
its impact on GAAP performance could vary materially.
Below is a table summarizing Myriad Genetics' fiscal year 2024
financial guidance*:
(in millions, except per share amounts) |
FY 2024 |
|
Expected Year-Over-Year Change |
|
|
|
|
Revenue |
$820 - $840 |
|
9% - 11% |
Gross margin % |
69.5% - 70.5% |
|
50 - 150 bps |
Adjusted OPEX |
$572 - $582 |
|
5% - 7% |
Adjusted EBITDA** |
$20 - $30 |
|
$31 - $41 |
Adjusted EPS*** |
$0.00 - $0.05 |
|
$0.27 - $0.32 |
*Assumes currency rates as of May 7, 2024 |
** Adjusted EBITDA is defined as Net Income (loss) plus income tax
expense (benefit), total other income (expense), non-cash operating
expenses, such as amortization of intangible assets, depreciation,
impairment of long-lived assets, and share-based compensation
expense, and one-time expenses such as expenses from real estate
optimization initiatives, transformation initiatives, legal
settlements, and divestitures and acquisitions. |
*** Full-year 2024 adjusted EPS is based on a 90 million share
count. |
|
These projections are forward-looking statements and are subject
to the risks summarized in the safe harbor statement at the end of
this press release.
Conference Call and WebcastA conference call
will be held today, Tuesday, May 7, 2024, at 4:30 p.m. EDT to
discuss Myriad Genetics’ financial results and business
developments for the first quarter 2024. A live webcast of the
conference call can be accessed on Myriad Genetics' Investor
Relations website at investor.myriad.com. To participate in the
live conference call via telephone, please register at
https://register.vevent.com/register/BIa6e5709e0e9d43a6a8b0070d0b806384.
Upon registering, a dial-in number and unique PIN will be provided
to join the conference call. Following the conference call, an
archived webcast of the call will be available at
investor.myriad.com.
About Myriad GeneticsMyriad Genetics is a
leading genetic testing and precision medicine company dedicated to
advancing health and well-being for all. Myriad Genetics provides
insights that help people take control of their health and enable
healthcare providers to better detect, treat, and prevent disease.
Myriad Genetics develops and offers genetic tests that help assess
the risk of developing disease or disease progression and guide
treatment decisions across medical specialties where critical
genetic insights can significantly improve patient care and lower
healthcare costs. For more information, visit www.myriad.com.
Myriad, the Myriad logo, BRACAnalysis, BRACAnalysis CDx,
Colaris, ColarisAP, MyRisk, Myriad myRisk, MyRisk Hereditary
Cancer, myChoice, Tumor BRACAnalysis CDx, MyChoice CDx, Prequel,
Prequel with Amplify, Amplify, Foresight, Foresight Universal Plus,
Precise Tumor, Precise Oncology Solutions, Precise Liquid, Precise
MRD, FirstGene, SneakPeek, SneakPeek Early Gender DNA Test,
SneakPeek Snap, Urosuite, Mygenehistory, Health.Illuminated.,
RiskScore, Prolaris, GeneSight, and EndoPredict are registered
trademarks or trademarks of Myriad Genetics, Inc.. All third-party
marks—® and ™—are the property of their respective owners. © 2024
Myriad Genetics, Inc. All rights reserved.
Revenue by Product (Unaudited):
|
Three months ended March 31 |
(in millions) |
2024 |
|
2023 |
|
|
|
WH |
ONC |
PGx |
Total |
|
WH |
ONC |
PGx |
Total |
|
% Change |
Hereditary Cancer |
$ |
39.6 |
|
$ |
48.5 |
|
$ |
— |
|
$ |
88.1 |
|
|
$ |
35.3 |
|
$ |
40.4 |
|
$ |
— |
|
$ |
75.7 |
|
|
16 |
% |
Tumor Profiling |
|
— |
|
|
30.9 |
|
|
— |
|
|
30.9 |
|
|
|
— |
|
|
37.3 |
|
|
— |
|
|
37.3 |
|
|
(17 |
)% |
Prenatal |
|
44.3 |
|
|
— |
|
|
— |
|
|
44.3 |
|
|
|
36.2 |
|
|
— |
|
|
— |
|
|
36.2 |
|
|
22 |
% |
Pharmacogenomics |
|
— |
|
|
— |
|
|
38.9 |
|
|
38.9 |
|
|
|
— |
|
|
— |
|
|
32.0 |
|
|
32.0 |
|
|
22 |
% |
Total Revenue |
$ |
83.9 |
|
$ |
79.4 |
|
$ |
38.9 |
|
$ |
202.2 |
|
|
$ |
71.5 |
|
$ |
77.7 |
|
$ |
32.0 |
|
$ |
181.2 |
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Units:WH = Women’s HealthONC = OncologyPGx =
Pharmacogenomics
Product Categories:Hereditary Cancer – MyRisk, BRACAnalysis,
BRACAnalysis CDxTumor Profiling – myChoice CDx, Prolaris, Precise
Tumor, EndoPredictPrenatal – Foresight, Prequel,
SneakPeekPharmacogenomics – GeneSight
|
MYRIAD GENETICS, INC.AND
SUBSIDIARIESCondensed Consolidated Statements of
Operations (in millions, except per share amounts) |
|
|
Three months endedMarch 31, |
|
2024 |
|
2023 |
|
(unaudited) |
Testing revenue |
$ |
202.2 |
|
|
$ |
181.2 |
|
Costs and expenses: |
|
|
|
Cost of testing revenue |
|
64.6 |
|
|
|
59.2 |
|
Research and development expense |
|
24.9 |
|
|
|
22.5 |
|
Selling, general, and administrative expense |
|
140.6 |
|
|
|
151.7 |
|
Total costs and expenses |
|
230.1 |
|
|
|
233.4 |
|
Operating loss |
|
(27.9 |
) |
|
|
(52.2 |
) |
Other income (expense): |
|
|
|
Interest income |
|
0.6 |
|
|
|
0.7 |
|
Interest expense |
|
(0.5 |
) |
|
|
(0.5 |
) |
Other |
|
1.9 |
|
|
|
(0.6 |
) |
Total other income (expense), net |
|
2.0 |
|
|
|
(0.4 |
) |
Loss before income tax |
|
(25.9 |
) |
|
|
(52.6 |
) |
Income tax expense |
|
0.1 |
|
|
|
2.1 |
|
Net loss |
$ |
(26.0 |
) |
|
$ |
(54.7 |
) |
Net loss per share: |
|
|
|
Basic and diluted |
$ |
(0.29 |
) |
|
$ |
(0.67 |
) |
Weighted average shares
outstanding: |
|
|
|
Basic and diluted |
|
89.9 |
|
|
|
81.3 |
|
|
|
|
|
|
|
|
|
MYRIAD GENETICS, INC.AND
SUBSIDIARIESCondensed Consolidated Balance Sheets(in
millions, except share information) |
|
|
March 31,2024 |
|
December 31,2023 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
96.9 |
|
|
$ |
132.1 |
|
Marketable investment securities |
|
7.4 |
|
|
|
8.8 |
|
Trade accounts receivable |
|
118.1 |
|
|
|
114.3 |
|
Inventory |
|
24.6 |
|
|
|
22.0 |
|
Prepaid taxes |
|
18.4 |
|
|
|
17.0 |
|
Prepaid expenses and other current assets |
|
24.9 |
|
|
|
19.4 |
|
Total current assets |
|
290.3 |
|
|
|
313.6 |
|
Operating lease right-of-use
assets |
|
58.9 |
|
|
|
61.6 |
|
Property, plant and equipment,
net |
|
118.5 |
|
|
|
119.0 |
|
Intangibles, net |
|
340.9 |
|
|
|
349.5 |
|
Goodwill |
|
287.0 |
|
|
|
287.4 |
|
Other assets |
|
14.9 |
|
|
|
15.4 |
|
Total assets |
$ |
1,110.5 |
|
|
$ |
1,146.5 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
|
33.1 |
|
|
|
25.8 |
|
Accrued liabilities |
|
99.2 |
|
|
|
113.9 |
|
Current maturities of operating lease liabilities |
|
13.8 |
|
|
|
16.2 |
|
Total current liabilities |
|
146.1 |
|
|
|
155.9 |
|
Unrecognized tax benefits |
|
30.8 |
|
|
|
30.2 |
|
Long-term debt |
|
38.7 |
|
|
|
38.5 |
|
Noncurrent operating lease
liabilities |
|
94.3 |
|
|
|
97.4 |
|
Other long-term
liabilities |
|
40.6 |
|
|
|
41.3 |
|
Total liabilities |
|
350.5 |
|
|
|
363.3 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, 90.5 million and
89.9 million shares outstanding at March 31, 2024 and December
31, 2023, respectively |
|
0.9 |
|
|
|
0.9 |
|
Additional paid-in capital |
|
1,418.8 |
|
|
|
1,415.5 |
|
Accumulated other comprehensive loss |
|
(4.2 |
) |
|
|
(3.7 |
) |
Accumulated deficit |
|
(655.5 |
) |
|
|
(629.5 |
) |
Total stockholders' equity |
|
760.0 |
|
|
|
783.2 |
|
Total liabilities and stockholders’ equity |
$ |
1,110.5 |
|
|
$ |
1,146.5 |
|
|
|
|
|
|
|
|
|
MYRIAD GENETICS, INC.AND
SUBSIDIARIESCondensed Consolidated Statements of Cash
Flows(in millions) |
|
|
Three months endedMarch 31, |
|
2024 |
|
2023 |
Net cash used in operating activities |
$ |
(18.6 |
) |
|
$ |
(33.2 |
) |
Net cash provided by (used in)
investing activities |
|
(7.1 |
) |
|
|
34.6 |
|
Net cash used in financing
activities |
|
(8.8 |
) |
|
|
(4.9 |
) |
Effect of foreign exchange
rates on cash, cash equivalents, and restricted cash |
|
(0.8 |
) |
|
|
0.2 |
|
Net increase (decrease) in
cash, cash equivalents, and restricted cash |
|
(35.3 |
) |
|
|
(3.3 |
) |
Cash, cash equivalents, and
restricted cash at beginning of the period |
|
140.9 |
|
|
|
66.4 |
|
Cash, cash equivalents, and
restricted cash at end of the period |
$ |
105.6 |
|
|
$ |
63.1 |
|
|
|
|
|
|
|
|
|
Safe Harbor StatementThis press release
contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, including the
company's fiscal year 2024 financial guidance, the company's plans
to continue to produce additional clinical validation studies and
move closer to the launch of new products, statements relating to
the company's advancement of a number of enhancements to improve
access and ease of use for customers, including EMR integrations,
and that the company is growing, delivering improved financial
results and is continuing to invest in the innovation required to
achieve its Mission and Vision to reach more patients with
life-saving precision medicine. These “forward-looking statements”
are management’s present expectations of future events as of the
date hereof and are subject to a number of known and unknown risks
and uncertainties that could cause actual results, conditions, and
events to differ materially and adversely from those
anticipated.
These risks include, but are not limited to: the risk that sales
and profit margins of the company’s existing tests may decline; the
risk that the company may not be able to operate its business on a
profitable basis; risks related to the company’s ability to achieve
certain revenue growth targets and generate sufficient revenue from
its existing product portfolio or in launching and commercializing
new tests to be profitable; risks related to changes in
governmental or private insurers’ coverage and reimbursement levels
for the company’s tests or the company’s ability to obtain
reimbursement for its new tests at comparable levels to its
existing tests; risks related to increased competition and the
development of new competing tests; the risk that the company may
be unable to develop or achieve commercial success for additional
tests in a timely manner, or at all; the risk that the company may
not successfully develop new markets or channels for its tests; the
risk that licenses to the technology underlying the company’s tests
and any future tests are terminated or cannot be maintained on
satisfactory terms; risks related to delays or other problems with
operating the company’s laboratory testing facilities and the
transition of such facilities to the company's new laboratory
testing facilities; risks related to public concern over genetic
testing in general or the company’s tests in particular; risks
related to regulatory requirements or enforcement in the United
States and foreign countries and changes in the structure of the
healthcare system or healthcare payment systems; risks related to
the company’s ability to obtain new corporate collaborations or
licenses and acquire or develop new technologies or businesses on
satisfactory terms, if at all; risks related to the company’s
ability to successfully integrate and derive benefits from any
technologies or businesses that it licenses, acquires or develops;
the risk that the company is not able to secure additional
financing to fund its business, if needed, in a timely manner or on
favorable terms, if it all; risks related to the company’s
projections or estimates about the potential market opportunity for
the company’s current and future products; the risk that the
company or its licensors may be unable to protect or that third
parties will infringe the proprietary technologies underlying the
company’s tests; the risk of patent-infringement claims or
challenges to the validity of the company’s patents; risks related
to changes in intellectual property laws covering the company’s
tests, or patents or enforcement, in the United States and foreign
countries; risks related to security breaches, loss of data and
other disruptions, including from cyberattacks; risks of new,
changing and competitive technologies in the United States and
internationally and that the company may not be able to keep pace
with the rapid technology changes in its industry, or properly
leverage new technologies to achieve or sustain competitive
advantages in its products; the risk that the company may be unable
to comply with financial or operating covenants under the company’s
credit or lending agreements; the risk that the company may not be
able to maintain effective disclosure controls and procedures and
internal control over financial reporting; risks related to current
and future investigations, claims or lawsuits, including derivative
claims, product or professional liability claims, and risks related
to the amount of the company's insurance coverage limits and scope
of insurance coverage with respect thereto; and other factors
discussed under the heading “Risk Factors” contained in Item 1A of
the company’s Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission (SEC) on February 28, 2024, as
well as any updates to those risk factors filed from time to time
in the company’s Quarterly Reports on Form 10-Q or Current Reports
on Form 8-K. Myriad Genetics is not under any obligation, and it
expressly disclaims any obligation, to update or alter any
forward-looking statements, whether as a result of new information,
future events or otherwise except as required by law.
Statement regarding use of non-GAAP
financial measuresIn this press release, the company’s
financial results and financial guidance are provided in accordance
with accounting principles generally accepted in the United States
(GAAP) and using certain non-GAAP financial measures. Management
believes that presentation of operating results using non-GAAP
financial measures provides useful supplemental information to
investors and facilitates the analysis of the company’s core
operating results and comparison of operating results across
reporting periods. Management also uses non-GAAP financial measures
to establish budgets and to manage the company’s business. A
reconciliation of the GAAP financial results to non-GAAP financial
results is included in the schedules below and a description of the
adjustments made to the GAAP financial measures is included at the
end of the schedules.
The company encourages investors to carefully consider its
results under GAAP, as well as its supplemental non-GAAP
information and the reconciliation between these presentations, to
more fully understand its business. Non-GAAP financial results are
reported in addition to, and not as a substitute for, or superior
to, financial measures calculated in accordance with
GAAP.
The company does not forecast GAAP operating expenses, net
income (loss) or earnings per share because it cannot predict
certain elements that are included in reported GAAP
results. Please see above under “Financial Guidance”
for a full explanation.
Reconciliation of GAAP to Non-GAAP Financial
Measuresfor the Three Months
Ended March 31, 2024 and 2023(unaudited data in
millions, except per share amounts)
|
Three months ended March 31, |
|
2024 |
|
2023 |
Adjusted Gross
Margin |
|
|
|
GAAP Gross Profit (1) |
$ |
137.6 |
|
|
$ |
122.0 |
|
Acquisition - amortization of intangible assets |
|
0.3 |
|
|
|
0.3 |
|
Equity compensation |
|
0.3 |
|
|
|
0.3 |
|
Other adjustments |
|
0.3 |
|
|
|
— |
|
Adjusted Gross Profit |
$ |
138.5 |
|
|
$ |
122.6 |
|
Adjusted Gross Margin |
|
68.5 |
% |
|
|
67.7 |
% |
(1) Consists of
total revenues less cost of testing revenue from the Condensed
Consolidated Statements of Operations. |
|
|
|
|
|
Three months ended March 31, |
|
2024 |
|
2023 |
Adjusted Operating
Expenses |
|
|
|
GAAP Operating Expenses
(1) |
$ |
165.5 |
|
|
$ |
174.2 |
|
Acquisition - amortization of intangible assets |
|
(10.4 |
) |
|
|
(10.3 |
) |
Equity compensation |
|
(11.6 |
) |
|
|
(7.1 |
) |
Real estate optimization |
|
(1.2 |
) |
|
|
(7.5 |
) |
Transformation initiatives |
|
(1.9 |
) |
|
|
(4.1 |
) |
Legal charges, net of insurance reimbursement |
|
0.1 |
|
|
|
(0.3 |
) |
Other adjustments |
|
(1.4 |
) |
|
|
(0.4 |
) |
Adjusted Operating
Expenses |
$ |
139.1 |
|
|
$ |
144.5 |
|
(1) Consists of
research and development expense and selling, general and
administrative expense from the Condensed Consolidated Statements
of Operations. |
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
2024 |
|
2023 |
Adjusted Operating
Income (Loss) |
|
|
|
GAAP Operating Loss |
$ |
(27.9 |
) |
|
$ |
(52.2 |
) |
Acquisition - amortization of intangible assets |
|
10.7 |
|
|
|
10.6 |
|
Equity compensation |
|
11.9 |
|
|
|
7.4 |
|
Real estate optimization |
|
1.2 |
|
|
|
7.5 |
|
Transformation initiatives |
|
1.9 |
|
|
|
4.1 |
|
Legal charges, net of insurance reimbursement |
|
(0.1 |
) |
|
|
0.3 |
|
Other adjustments |
|
1.7 |
|
|
|
0.4 |
|
Adjusted Operating Loss |
$ |
(0.6 |
) |
|
$ |
(21.9 |
) |
|
|
|
|
|
Three months ended March 31, |
|
2024 |
|
2023 |
Adjusted Net Income
(Loss) (1) |
|
|
|
GAAP Net Loss |
$ |
(26.0 |
) |
|
$ |
(54.7 |
) |
Acquisition - amortization of intangible assets |
|
10.7 |
|
|
|
10.6 |
|
Equity compensation |
|
11.9 |
|
|
|
7.4 |
|
Real estate optimization |
|
1.2 |
|
|
|
7.5 |
|
Transformation initiatives |
|
1.9 |
|
|
|
4.1 |
|
Legal charges, net of insurance reimbursement |
|
(0.1 |
) |
|
|
0.3 |
|
Other adjustments |
|
0.2 |
|
|
|
0.4 |
|
Tax adjustments |
|
(0.3 |
) |
|
|
7.0 |
|
Adjusted Net Loss |
$ |
(0.5 |
) |
|
$ |
(17.4 |
) |
Weighted average shares
outstanding: |
|
|
|
Basic |
|
89.9 |
|
|
|
81.3 |
|
Diluted |
|
89.9 |
|
|
|
81.3 |
|
Adjusted Earnings Per
Share |
|
|
|
Basic |
$ |
(0.01 |
) |
|
$ |
(0.21 |
) |
Diluted |
$ |
(0.01 |
) |
|
$ |
(0.21 |
) |
(1) To determine
Adjusted Earnings (Loss) Per Share, or adjusted EPS. |
|
|
Three months ended March 31, |
|
2024 |
|
2023 |
Adjusted
EBITDA |
|
|
|
GAAP Net Loss |
$ |
(26.0 |
) |
|
$ |
(54.7 |
) |
Acquisition - amortization of intangible assets |
|
10.7 |
|
|
|
10.6 |
|
Depreciation expense |
|
4.5 |
|
|
|
3.0 |
|
Equity compensation |
|
11.9 |
|
|
|
7.4 |
|
Real estate optimization(1) |
|
1.2 |
|
|
|
7.5 |
|
Transformation initiatives |
|
1.9 |
|
|
|
4.1 |
|
Legal charges, net of insurance reimbursement |
|
(0.1 |
) |
|
|
0.3 |
|
Interest expense, net of interest income(2) |
|
(0.1 |
) |
|
|
(0.2 |
) |
Other adjustments |
|
(0.1 |
) |
|
|
1.2 |
|
Income tax expense |
|
0.1 |
|
|
|
2.0 |
|
Adjusted EBITDA |
$ |
4.0 |
|
|
$ |
(18.8 |
) |
(1) Real estate
optimization includes $0.5 million and $5.8 million of depreciation
expense for the three months ended March 31, 2024 and 2023,
respectively. |
(2) Derived from
interest expense and interest income from the Condensed
Consolidated Statements of Operations. |
|
Adjusted Free Cash Flow
Reconciliationfor the Three Months Ended March 31,
2024 and 2023(unaudited data in millions)
|
Three months ended March 31, |
|
2024 |
|
2023 |
Cash flow from operations |
$ |
(18.6 |
) |
|
$ |
(33.2 |
) |
Real estate optimization |
|
6.2 |
|
|
|
1.8 |
|
Transformation initiatives |
|
1.9 |
|
|
|
4.1 |
|
Legal charges, net of insurance reimbursement |
|
— |
|
|
|
1.8 |
|
Other adjustments |
|
1.2 |
|
|
|
0.4 |
|
Adjusted operating cash
flow |
$ |
(9.3 |
) |
|
$ |
(25.1 |
) |
Capital expenditures |
|
(6.7 |
) |
|
|
(23.5 |
) |
Capitalization of internal-use software costs |
|
(1.9 |
) |
|
|
— |
|
Adjusted free cash flow |
$ |
(17.9 |
) |
|
$ |
(48.6 |
) |
|
|
|
|
|
|
|
|
Following is a description of the adjustments made to GAAP
financial measures:
- Acquisition – amortization of intangible assets – represents
recurring amortization charges resulting from the acquisition of
intangible assets.
- Equity compensation – non-cash equity-based compensation
provided to Myriad Genetics employees and directors.
- Real estate optimization – costs related to real estate
initiatives. Prior to the fourth quarter 2023 reporting period,
these costs were included in the transformation initiatives
category. With respect to the adjusted free cash flow
reconciliation, the cash flow effect of real estate optimizations
excludes non-cash items such as accelerated depreciation. These
costs include the following:
- For the three months ended March 31, 2024, additional rent as a
result of the build-out of our new laboratories in Salt Lake City,
Utah and South Francisco, California, while maintaining our current
laboratories in those locations, costs associated with the
voluntary termination of a lease, testing and set-up costs for
equipment in our new facilities, and impairment in connection with
the ceased use of one of our facilities.
- For the three months ended March 31, 2023, additional rent as a
result of the build-out of our new laboratories in Salt Lake City,
Utah and South San Francisco, California, while maintaining our
current laboratories in those locations, and accelerated
depreciation in connection with our decision to cease the use of
our former corporate headquarters in Salt Lake City, Utah.
- Transformation initiatives – costs related to transformation
initiatives including:
- For the three months ended March 31, 2024, consulting and
professional fees.
- For the three months ended March 31, 2023, consulting and
professional fees and severance costs related to
restructuring.
- Legal charges, net of insurance reimbursement – one-time legal
expenses, net of insurance reimbursement. With respect to the
adjusted free cash flow reconciliation, the cash flow effect
includes cash paid for settlements in the related period.
- Other adjustments – other one-time non-recurring expenses
including:
- For the three months ended March 31, 2024, primarily includes a
gain recognized on acquisition, changes in the fair value of
contingent consideration related to acquisitions from prior years,
the reclassifications of cumulative translation adjustments to
income upon liquidation of an investment in a foreign entity, and
costs incurred in connection with executive personnel changes.
- For the three months ended March 31, 2023, primarily includes
consulting and professional fees and changes in the fair value of
contingent consideration related to acquisitions from prior
years.
- For purposes of adjusted EBITDA, other adjustments include the
items listed above as well as amounts included in Other
income/expense in the financial statements.
- Depreciation expense - depreciation expense recognized on our
fixed assets.
- Tax adjustments – tax expense/(benefit) due to non-GAAP
adjustments, differences between stock compensation recorded for
book purposes as compared to the allowable tax deductions, and
valuation allowance recognized against federal and state deferred
tax assets in the United States.
- As of March 31, 2024, a valuation allowance of $57.0 million
was not recognized for non-GAAP purposes given our historical and
forecasted positive earnings performance.
- As of March 31, 2023, a valuation allowance of $11.6 million
was not recognized for non-GAAP purposes given our historical and
forecasted positive earnings performance.
- For purposes of adjusted EBITDA, the income tax expense
adjustment includes the income tax expense (benefit) recognized in
the financial statements.
|
|
|
|
Media
Contact: |
Megan
Manzari |
Investor
Contact: |
Matt
Scalo |
|
(385) 318-3718 |
|
(801) 584-3532 |
|
megan.manzari@myriad.com |
|
matt.scalo@myriad.com |
|
|
|
|
Grafico Azioni Myriad Genetics (NASDAQ:MYGN)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Myriad Genetics (NASDAQ:MYGN)
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Da Giu 2023 a Giu 2024