Bausch Health Announces Fourth Quarter and Full-Year 2024 Results

• Seventh consecutive quarter of year-over-year growth in both Revenue and Adjusted EBITDA (non-GAAP)¹, delivering results at the high-end and/or exceeding 2024 guidance

• Fourth Quarter Consolidated Revenues of $2.56 billion, up 6% on a Reported basis and up 9% on an Organic (non-GAAP)¹ basis over the prior year period

• Full-Year Consolidated Revenues of $9.63 billion, up 10% on a Reported basis and 8% on an Organic (non-GAAP)¹ basis, with growth in all segments

• GAAP Net Income Attributable to Bausch Health Companies Inc. of $93 million for the quarter and GAAP Net Loss of $46 million for the year

• Consolidated Adjusted EBITDA Attributable to Bausch Health Companies Inc. (non-GAAP)¹ of $935 million for the quarter, up 8%, and $3.31 billion for the year, up 10%

LAVAL, QC / ACCESS Newswire / February 19, 2025 / Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) ("Bausch Health" the "Company," "we" or "our") today announced its fourth quarter and full-year 2024 financial results and other key updates for the quarter.

"2024 was a year of delivering on our commitments, where we achieved the high-end of our revenue guidance range, and exceeded our adjusted EBITDA excluding Bausch + Lomb, and adjusted operating cash flow guidance expectations. We generated growth across all our business segments, highlighting the broad strength of our diverse portfolio that is supported by our strategic investments in the business. We also made progress on key initiatives, positioning us well to carry our momentum into 2025 as we pursue additional opportunities to deliver innovative solutions for patients." said Thomas J. Appio, Chief Executive Officer, Bausch Health.

Fourth Quarter and Full-Year 2024 Revenue Performance

Total consolidated reported revenues were $2.56 billion for the fourth quarter of 2024, compared with $2.41 billion in the fourth quarter of 2023, an increase of $151 million, or 6%. Excluding the impact of foreign exchange of $28 million, acquisitions of $5 million, and divestitures and discontinuations of $29 million, revenue increased by 9% on an organic¹ basis compared with the fourth quarter of 2023.

Total consolidated reported revenues were $9.63 billion for the full year of 2024, compared with $8.76 billion for the full year of 2023, an increase of $868 million, or 10%. Excluding the impact of foreign exchange of $70 million, acquisitions of $293 million, and divestitures and discontinuations of $77 million, revenues increased 8% on an organic¹ basis compared with the full year of 2023.

^{1 This is a non-GAAP measure or a non-GAAP ratio. For further information on non-GAAP measures and non-GAAP ratios, please refer to the "Non-GAAP Information" section of this news release. Please also refer to tables at the end of this news release for a reconciliation of this and other non-GAAP measures to the most directly comparable GAAP measure.}

Revenues by segment were as follows:

Salix Segment

Salix segment reported revenues were $634 million for the fourth quarter and $2.33 billion for the full year of 2024, compared with $583 million for the fourth quarter and $2.25 billion for the full year of 2023, an increase of 9% in the fourth quarter, and 4% for the full year. Excluding the impact of divestitures and discontinuations of $19 million for the fourth quarter, and $37 million for the full year, segment revenues increased 12% and 5% on an organic¹ basis for the fourth quarter and full year, respectively. Xifaxan^® drove sales in the fourth quarter with 16% growth and was the primary contributor to segment growth for the full year.

International Segment

International segment reported revenues were $279 million for the fourth quarter and $1.11 billion for the full year of 2024, compared with $290 million for the fourth quarter and $1.07 billion for the full year of 2023, a decrease of $11 million, or (4%), in the fourth quarter, and an increase of $40 million, or 4%, for the full year. Excluding the impact of foreign exchange of $10 million for the fourth quarter and $6 million for the full year, and divestitures and discontinuations of $5 million for the fourth quarter and $11 million for the full year, segment revenues increased by 1% on an organic¹ basis for the fourth quarter, and 4% for the full year, compared with the fourth quarter and full year of 2023, led by solid growth in Canada and EMEA.

Solta Medical Segment

Solta Medical segment reported revenues were $138 million for the fourth quarter and $440 million for the full year of 2024, compared with $103 million for the fourth quarter and $347 million for the full year of 2023, an increase of $35 million, or 34%, in the fourth quarter, and $93 million, or 27%, for the full year. Excluding the impact of foreign exchange of $1 million for the fourth quarter and $7 million for the full year 2024, segment revenues increased 35% on an organic¹ basis for the fourth quarter and 29% for the full year, compared with the fourth quarter and the full year of 2023, led by growth in South Korea and China.

Diversified Segment

Diversified segment reported revenues were $228 million for the fourth quarter and $950 million for the full year of 2024, compared with $259 million for the fourth quarter and $943 million for the full year of 2023, a decrease of $31 million, or (12%), in the fourth quarter, and an increase of $7 million, or 1% for the full year. Segment revenues decreased organically¹ by (11%) for the fourth quarter and increased 3% for the full year, compared with the fourth quarter and the full year of 2023. The fourth quarter of 2023 included the impact of higher Ativan sales, reflecting competitor supply disruptions.

Bausch + Lomb Segment

Bausch + Lomb segment reported revenues were $1.28 billion for the fourth quarter and $4.79 billion for the full year of 2024, compared with $1.17 billion for the fourth quarter and $4.15 billion for the full year of 2023, an increase of $107 million, or 9%, in the fourth quarter, and an increase of $645 million, or 16%, for the full year. Excluding the impact of foreign exchange of $17 million for the fourth quarter and $69 million for the full year of 2024, acquisitions of $5 million for the quarter and $293 million for the full year 2024, and divestitures and discontinuations of $1 million for the fourth quarter and $8 million for the full year, segment revenues increased 10% on an organic¹ basis for the fourth quarter and 10% for the full year, compared with the fourth quarter and the full year of 2023.

Consolidated Operating Income

Consolidated operating income was $558 million for the fourth quarter of 2024, compared with consolidated operating income of $362 million for the fourth quarter of 2023, an increase of $196 million, reflecting the impact of higher sales, as well as goodwill impairment charges in the fourth quarter of 2023.

Consolidated operating income was $1.55 billion for the full year of 2024, compared with consolidated operating income of $963 million for the full year of 2023, an increase of $583 million. The change reflects the impact of higher sales, partially offset by increased selling, general and administrative expenses in the Bausch + Lomb segment, as well as the goodwill impairment charges recorded in 2023.

Consolidated Net Income (Loss) Attributable to Bausch Health

Consolidated net income attributable to Bausch Health for the fourth quarter of 2024 was $93 million, compared with a consolidated net loss of $39 million for the fourth quarter of 2023, a favorable change of $132 million. Consolidated net loss attributable to Bausch Health for the full year 2024 was $46 million, compared with a consolidated net loss of $592 million for the full year 2023, a favorable change of $546 million. These changes were primarily due to the changes in operating income noted above along with an unfavorable change in income taxes in the fourth quarter and full year of 2024 compared to the corresponding periods in 2023.

Consolidated Adjusted Net Income Attributable to Bausch Health (non-GAAP)¹

Consolidated adjusted net income attributable to Bausch Health (non-GAAP)¹ was $430 million for the fourth quarter and $1.39 billion for the full year of 2024, compared with $406 million for the fourth quarter and $1.27 billion for the full year of 2023, an increase of $24 million in the fourth quarter and $120 million for the full year. The increases were due to higher revenues and gross profit, partially offset by higher selling, general and administrative expenses.

Consolidated Earnings (Loss) Per Share Attributable to Bausch Health

Consolidated GAAP Earnings Per Share attributable to Bausch Health were $0.25 for the fourth quarter and a loss per share of ($0.13) for the full year of 2024, compared with loss per share of ($0.11) for the fourth quarter and ($1.62) for the full year of 2023.

Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)¹

Consolidated adjusted EBITDA attributable to Bausch Health (non-GAAP)¹ was $935 million for the fourth quarter and $3.31 billion for the full year of 2024, compared with $869 million for the fourth quarter and $3.01 billion for the full year of 2023, an increase of $66 million in the fourth quarter and $293 million for the full year.

Consolidated Cash Provided by Operating Activities

The Company generated $601 million of cash from operating activities in the fourth quarter and $1.60 billion for the full year of 2024, compared to $390 million in the fourth quarter and $1.03 billion for the full year of 2023. The increase in cash flow from operations of $565 million for the full year is primarily attributable to changes in business performance and favorable changes in working capital in 2024 compared to 2023.

Balance Sheet Highlights as of December 31, 2024 and Recent Updates

• Consolidated cash, cash equivalents, and restricted cash were $1.20 billion.

• Bausch Health (excl. B+L) had availability under its 2027 revolving credit facility of approximately $950 million and Bausch + Lomb had availability under its revolving credit facility of approximately $360 million.

• Bausch Health (excl. B+L) has maintained its accounts receivable credit facility which provides for up to $600 million of availability, subject to certain borrowing base tests, $300 million of which was drawn as of December 31, 2024.

• On February 11, 2025, Bausch Health's wholly-owned subsidiary, 1261229 B.C. LTD., entered into a financing commitment with a third-party lender to provide a senior secured credit facility (the "Facility") in an aggregate principal amount of up to $700 million, subject to customary terms and conditions. Proceeds from the Facility, if funded, combined with the Company's existing sources of liquidity, would be applied to repay its 2025 and 2026 debt obligations. The Facility, if funded, is expected to be secured by a portion of the Bausch + Lomb shares owned by the Company, is available for drawing to Bausch Health for a period of seven months, and is expected to have a maturity of 364 days from the date of borrowing.

• The Company is exploring accessing the capital markets to more comprehensively address its maturity profile, which could include pledging a portion of the shares it holds in Bausch + Lomb.

Bausch Health (excl. B+L) R&D Update

• CABTREO^®: triple combination product for the treatment of acne vulgaris

  • Launched in Canada in October 2024

• RED-C: prevention and delay of first episode of overt hepatic encephalopathy

  • Both global Phase 3 studies are in the treatment phase

  • On track for top-line Phase 3 results by early 2026

• Amiselimod (S1P modulator): once-daily oral treatment addressing moderate- to severe- ulcerative colitis

  • Upon submitting draft protocols for a Phase 3 trial, met with all planned major regulatory bodies (FDA, EMA (EU), and PMDA (Japan) by year-end 2024); regulatory feedback under review

  • Phase 2 study for Crohn's disease will not proceed

• Thermage^® FLX: radio-frequency technology to help tighten and improve the smoothness and texture of skin's surface

  • Submitted for approval in Canada during the fourth quarter of 2024

• Clear + Brilliant^® Touch: fractionated laser device for skin rejuvenation

  • In addition to the United States, approvals have been received for Australia, New Zealand, Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024

  • Submitted for approval in Canada during the fourth quarter of 2024

  • Awaiting European regulatory response to submission

2025 Financial Outlook

The Company is providing the following full-year guidance for 2025:

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), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP)¹. These statements represent forward-looking information and may 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. The guidance in this news release is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. The rapid recent developments in the evolving landscape of tariffs and responses have resulted in uncertainty regarding these measures and the effects they may have. We continue to assess the direct and indirect impacts on our businesses of such tariffs, retaliatory tariffs and other trade protectionist measures as the situation develops.

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