2024 Q1 Form 10-K Financial Statement

#000088559024000011 Filed on February 22, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $2.153B $2.408B $8.757B
YoY Change 10.75% 9.8% 7.79%
Cost Of Revenue $640.0M $705.0M $2.559B
YoY Change 9.97% 8.13% 8.25%
Gross Profit $1.513B $1.703B $6.198B
YoY Change 11.09% 10.51% 7.6%
Gross Profit Margin 70.27% 70.72% 70.78%
Selling, General & Admin $794.0M $766.0M $2.917B
YoY Change 9.52% 15.02% 11.12%
% of Gross Profit 52.48% 44.98% 47.06%
Research & Development $151.0M $152.0M $604.0M
YoY Change 5.59% 7.04% 14.18%
% of Gross Profit 9.98% 8.93% 9.75%
Depreciation & Amortization $320.0M $329.0M $187.0M
YoY Change 0.31% -8.61% 4.47%
% of Gross Profit 21.15% 19.32% 3.02%
Operating Expenses $945.0M $1.200B $3.521B
YoY Change 8.87% 6.86% 11.64%
Operating Profit $281.0M $503.0M $963.0M
YoY Change 60.57% 20.33% 112.11%
Interest Expense -$361.0M -$370.0M -$1.354B
YoY Change 16.08% 18.21% -7.13%
% of Operating Profit -128.47% -73.56% -140.6%
Other Income/Expense, Net $0.00 -$28.00M
YoY Change -100.0% -20.0%
Pretax Income -$69.00M -$7.000M -$390.0M
YoY Change -49.26% -98.04% 202.33%
Income Tax $8.000M $40.00M $221.0M
% Of Pretax Income
Net Earnings -$64.00M -$39.00M -$592.0M
YoY Change -68.16% -90.49% 163.11%
Net Earnings / Revenue -2.97% -1.62% -6.76%
Basic Earnings Per Share -$0.17 -$1.62
Diluted Earnings Per Share -$0.17 -$0.11 -$1.62
COMMON SHARES
Basic Shares Outstanding 365.4M shares 365.2M shares 364.9M shares
Diluted Shares Outstanding 366.8M shares 364.9M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $733.0M $947.0M $947.0M
YoY Change 41.51% 67.91% 67.91%
Cash & Equivalents $733.0M $947.0M $947.0M
Short-Term Investments
Other Short-Term Assets $979.0M $1.107B $1.107B
YoY Change 21.01% 37.86% 37.86%
Inventory $1.636B $1.544B $1.544B
Prepaid Expenses
Receivables $2.048B $1.998B $1.998B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $5.396B $5.596B $5.596B
YoY Change 27.35% 31.76% 31.76%
LONG-TERM ASSETS
Property, Plant & Equipment $1.713B $1.707B $1.892B
YoY Change 7.33% 6.69% 3.9%
Goodwill $11.16B $11.18B
YoY Change -3.62% -3.15%
Intangibles $6.183B $6.456B
YoY Change 11.37% 11.31%
Long-Term Investments
YoY Change
Other Assets $312.0M $307.0M $2.223B
YoY Change -1.89% -5.83% -2.11%
Total Long-Term Assets $21.52B $21.75B $21.75B
YoY Change 1.46% 1.47% 1.47%
TOTAL ASSETS
Total Short-Term Assets $5.396B $5.596B $5.596B
Total Long-Term Assets $21.52B $21.75B $21.75B
Total Assets $26.91B $27.35B $27.35B
YoY Change 5.77% 6.48% 6.48%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $642.0M $719.0M $719.0M
YoY Change 14.44% 38.0% 38.0%
Accrued Expenses $3.225B $3.133B $3.086B
YoY Change 10.6% 4.85% 4.33%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $538.0M $450.0M $450.0M
YoY Change 20.63% 4.17% 4.17%
Total Short-Term Liabilities $4.405B $4.302B $4.302B
YoY Change 12.29% 9.16% 9.16%
LONG-TERM LIABILITIES
Long-Term Debt $21.54B $21.94B $21.94B
YoY Change 6.58% 7.89% 7.89%
Other Long-Term Liabilities $751.0M $776.0M $1.029B
YoY Change 0.67% 4.72% 8.43%
Total Long-Term Liabilities $22.29B $22.71B $22.97B
YoY Change 6.37% 7.78% 7.91%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.405B $4.302B $4.302B
Total Long-Term Liabilities $22.29B $22.71B $22.97B
Total Liabilities $27.09B $27.43B $28.37B
YoY Change 7.06% 7.89% 7.56%
SHAREHOLDERS EQUITY
Retained Earnings -$9.842B -$9.778B
YoY Change 4.85% 6.44%
Common Stock $10.64B $10.64B
YoY Change 0.64% 0.82%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$1.115B -$1.022B -$1.022B
YoY Change
Total Liabilities & Shareholders Equity $26.91B $27.35B $27.35B
YoY Change 5.77% 6.48% 6.48%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$64.00M -$39.00M -$592.0M
YoY Change -68.16% -90.49% 163.11%
Depreciation, Depletion And Amortization $320.0M $329.0M $187.0M
YoY Change 0.31% -8.61% 4.47%
Cash From Operating Activities $211.0M $390.0M $1.032B
YoY Change 37.01% -17.89% -241.76%
INVESTING ACTIVITIES
Capital Expenditures $82.00M $144.0M $215.0M
YoY Change 74.47% 50.0% -1.38%
Acquisitions $1.890B
YoY Change 4100.0%
Other Investing Activities $10.00M -$4.000M -$1.873B
YoY Change -137.04% -90.0% 5251.43%
Cash From Investing Activities -$73.00M -$148.0M -$2.145B
YoY Change -6.41% 8.82% 607.92%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $390.0M $1.710B
YoY Change 39.78% -78.21%
Cash From Financing Activities -$340.0M -79.00M $1.475B
YoY Change 139.44% -71.38% -411.18%
NET CHANGE
Cash From Operating Activities $211.0M 390.0M $1.032B
Cash From Investing Activities -$73.00M -148.0M -$2.145B
Cash From Financing Activities -$340.0M -79.00M $1.475B
Net Change In Cash -$207.0M 163.0M $371.0M
YoY Change 245.0% 158.73% -124.28%
FREE CASH FLOW
Cash From Operating Activities $211.0M $390.0M $1.032B
Capital Expenditures $82.00M $144.0M $215.0M
Free Cash Flow $129.0M $246.0M $817.0M
YoY Change 20.56% -35.09% -186.36%

Facts In Submission

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<div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of Estimates</span></div><div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In preparing the Company’s Consolidated Financial Statements, management is required to make estimates and assumptions. This includes estimates and assumptions regarding the nature, timing and extent of certain global macroeconomic conditions, including, but not limited to, those related to inflation and supply chain, will have on its operations and cash flows. The estimates and assumptions used by the Company affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include: provisions for product returns, rebates, chargebacks, discounts and allowances and distribution fees paid to certain wholesalers; useful lives of amortizable intangible assets and property, plant and equipment; expected future cash flows used in evaluating intangible assets for impairment, assessing compliance with debt covenants and making going concern assessments; reporting unit fair values for testing goodwill for impairment and allocating goodwill to new reporting unit structures on a relative fair value basis; provisions for loss contingencies; provisions for income taxes, uncertain tax positions and realizability of deferred tax assets; fair value of cross-currency swaps; fair value of foreign currency exchange contracts; and the recognition of the fair value of assets and liabilities acquired in a business combination or asset acquisition. Under certain product manufacturing and supply agreements, management uses information from the Company’s commercialization counterparties to arrive at estimates for future returns, rebates and chargebacks. </span></div><div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On an ongoing basis, management reviews its estimates to ensure that these estimates appropriately reflect changes in the Company’s business and new information as it becomes available. If historical experience and other factors used by management to make these estimates do not reasonably reflect future activity, the Company’s Consolidated Financial Statements could be materially impacted.</span></div>
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;padding-left:10.5pt">DESCRIPTION OF BUSINESS</span><div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Bausch Health Companies Inc. (the “Company” or “Bausch Health”) is a global, diversified specialty pharmaceutical and medical device company that develops, manufactures and markets, primarily in the therapeutic areas of gastroenterology (“GI”), hepatology, neurology and dermatology, a broad range of branded, generic and branded generic pharmaceuticals, over-the-counter (“OTC”) products and aesthetic medical devices, and, through its approximately 88% ownership of Bausch + Lomb Corporation (“Bausch + Lomb” or “B+L”), branded, and branded generic pharmaceuticals, OTC products and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment) in the therapeutic areas of eye health. The Company’s products are marketed directly or indirectly in approximately 90 countries. Effective August 9, 2013, the Company continued from the federal jurisdiction of Canada to the Province of British Columbia, meaning that the Company became a company registered under the laws of the Province of British Columbia as if it had been incorporated under the laws of the Province of British Columbia. As a result of this continuance, the legal domicile of the Company became the Province of British Columbia, the Canada Business Corporations Act ceased to apply to the Company and the Company became subject to the British Columbia Business Corporations Act.</span></div>
CY2023 us-gaap Prior Period Reclassification Adjustment Description
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<div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Reclassifications</span></div><div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain reclassifications have been made to prior year amounts to conform to the current year presentation.</span></div>
CY2023 us-gaap Concentration Risk Credit Risk
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<div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Concentrations of Credit Risk</span></div><div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, trade receivables, cross-currency swaps and foreign currency exchange contracts.</span></div><div style="margin-bottom:8pt;margin-top:8pt;padding-left:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company invests its excess cash in high-quality, money market instruments and term deposits with varying maturities, but typically less than three months.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%"> </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Cash deposited at banks may exceed the amount of insurance provided on such deposits. Generally, these cash deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate such risks by spreading its risk across multiple counterparties and monitoring the risk profiles of these counterparties.</span></div>The Company’s trade receivables primarily represent amounts due from wholesale distributors, retail pharmacies, government entities and group purchasing organizations. Outside of the U.S., concentrations of credit risk with respect to trade receivables, which are typically unsecured, are limited due to the number of customers using the Company’s products, as well as their dispersion across many different geographic regions. The Company performs periodic credit evaluations of customers and does not require collateral. The Company monitors economic conditions, including volatility associated with international economies, and related impacts on the relevant financial markets and its business, especially in light of sovereign credit issues. The credit and economic conditions within Algeria, Argentina, Belarus, Brazil, Greece, Iran, Russia, Serbia, South Africa, Turkey, Ukraine and Venezuela have been weak in recent years.
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