Exact Sciences Announces Third-Quarter 2024 Results
Delivered record revenue and cash flow, improved adjusted EBITDA, advanced pipeline
Third quarter highlights
-
Total third quarter revenue of
$709 million , an increase of 13% on a reported and core revenue basis, including Screening revenue of$545 million and Precision Oncology revenue of$164 million -
Net loss was
$38 million , adjusted EBITDA was$99 million , and adjusted EBITDA margin increased 500 basis points to 14% -
Operating cash flow was
$139 million with free cash flow of$113 million - Received FDA approval for the Cologuard Plus™ test, the Company's next-generation Cologuard® test
- Presented data showing potential of its blood-based colorectal cancer screening test, with sensitivities of 88% for colorectal cancer and 31% for advanced precancerous lesions at 90% specificity
- Secured acceptance from a peer reviewed journal for the first publication on the Oncodetect™ test, its molecular residual disease and recurrence monitoring test
“The Exact Sciences’ team is helping eradicate cancer while strengthening our platform and growing our business efficiently,” said
Third-quarter 2024 financial results
For the three-month period ended
-
Total revenue was
$709 million , an increase of 13 percent on a reported and core revenue basis -
Screening revenue was
$545 million , an increase of 15 percent -
Precision Oncology revenue was
$164 million , an increase of 5 percent on a reported and core revenue basis - Gross margin including amortization of acquired intangible assets was 69 percent, and non-GAAP gross margin excluding amortization of acquired intangible assets was 72 percent
-
Other operating income was
$3 million compared to$72 million , which included a gain related to the sale of the Oncotype DX Genomic Prostate Score Test in third-quarter 2023 -
Net loss was
$38 million , or$0.21 per basic and diluted share, a reduction of$39 million , or$0.21 per basic and diluted share -
Adjusted EBITDA was
$99 million an increase of$42 million , and adjusted EBITDA margin was 14 percent, an increase of 500 basis points -
Operating cash flow was
$139 million and free cash flow was$113 million , increases of$114 million and$113 million , respectively -
Cash, cash equivalents, and marketable securities were
$1.02 billion at the end of the quarter
Screening primarily includes laboratory service revenue from Cologuard tests and PreventionGenetics. Precision Oncology includes laboratory service revenue from global Oncotype DX and therapy selection tests.
Platform and pipeline advancements
The Company's ExactNexus™ technology platform allows
In the third quarter, the Company also presented data for its blood-based colorectal cancer screening test, showcasing a sensitivity of 88% for colorectal cancer and 31% for advanced precancerous lesions at 90% specificity. These results show the potential of the Company's novel marker panel to detect advanced precancerous lesions and cancers at an attractive cost profile. This innovation is expected to provide average-risk patients with another screening option, reinforcing the power of the Company’s unique scientific approach.
The Company also shared evidence supporting its blood-based multi-cancer screening test, assessing organ-specific performance of methylation and protein biomarkers in a prospectively collected cohort of samples from its ASCEND 2 study. The analysis indicated an overall sensitivity of 55% in cancers without standard-of-care screening options (excluding lung), and 64% in the six most aggressive cancers with the shortest survival rates, with a specificity of 98.5%. These findings highlight the potential clinical value of using multiple biomarkers to detect various cancer types, including the most aggressive and those without recommended screening options.
2024 outlook
The Company has updated its full-year 2024 revenue and adjusted EBITDA guidance:
|
Prior guidance |
|
|
Total revenue |
|
|
|
Screening |
|
|
|
Precision Oncology |
|
|
|
Adjusted EBITDA |
|
|
|
Third-quarter 2024 conference call & webcast
Company management will host a conference call and webcast on
Non-GAAP disclosure
In addition to the Company’s financial results determined in accordance with
About the Cologuard® and Cologuard Plus™ tests:
Developed in collaboration with
The Cologuard test revolutionized CRC screening by detecting specific DNA markers and blood associated with cancer and precancer in stool, allowing patients to use the test at home without special preparation or time off. It is covered by Medicare and included in national screening guidelines from both the
Building on this success, the FDA-approved Cologuard Plus test raises the performance bar even further and features novel biomarkers, improved laboratory processes, and enhanced sample stability. The Cologuard Plus test is expected to reduce false positives by more than 30%, to help minimize unnecessary follow-up colonoscopies. Both tests demonstrate Exact Sciences’ commitment to improving CRC screening access and outcomes.
About Exact Sciences’ Precision Oncology portfolio
Exact Sciences’ Precision Oncology portfolio delivers actionable genomic insights to inform prognosis and cancer treatment after a diagnosis. In breast cancer, the Oncotype DX Breast Recurrence Score® test is the only test shown to predict the likelihood of chemotherapy benefit as well as recurrence in invasive breast cancer. The Oncotype DX test is recognized as the standard of care and is included in all major breast cancer treatment guidelines. The OncoExTra® test applies comprehensive tumor profiling, utilizing whole exome and whole transcriptome sequencing, to aid in therapy selection for patients with advanced, metastatic, refractory, relapsed, or recurrent cancer. With an extensive panel of approximately 20,000 genes and 169 introns, the OncoExTra test is one of the most comprehensive genomic (DNA) and transcriptomic (RNA) panels available today.
About PreventionGenetics
Founded in 2004 and located in
About
A leading provider of cancer screening and diagnostic tests,
Forward-Looking Statements
This news release contains forward-looking statements concerning our expectations, anticipations, intentions, beliefs or strategies regarding the future. These forward-looking statements are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions and events to differ materially from those anticipated. Therefore, you should not place undue reliance on forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results; expectations for development of new or improved products and services and their impacts on patients; our strategies, positioning, resources, capabilities and expectations for future events or performance; and the anticipated benefits of our acquisitions, including estimated synergies and other financial impacts.
Important factors that could cause actual results, conditions and events to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully and profitably market our products and services; the acceptance of our products and services by patients and healthcare providers; our ability to meet demand for our products and services; our reliance upon certain suppliers, including suppliers that are the sole source of certain supplies and products used in our tests and operations; approval and maintenance of adequate reimbursement rates for our products and services within and outside of the
Selected Unaudited Financial Information Condensed Consolidated Statements of Operations (Amounts in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
708,655 |
|
|
$ |
628,338 |
|
|
$ |
2,045,443 |
|
|
$ |
1,852,881 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of amortization of acquired intangible assets) |
|
196,070 |
|
|
|
168,526 |
|
|
|
556,019 |
|
|
|
482,383 |
|
Research and development |
|
100,101 |
|
|
|
111,446 |
|
|
|
331,593 |
|
|
|
310,960 |
|
Sales and marketing |
|
194,653 |
|
|
|
173,159 |
|
|
|
572,288 |
|
|
|
536,613 |
|
General and administrative |
|
217,201 |
|
|
|
217,393 |
|
|
|
662,174 |
|
|
|
672,653 |
|
Amortization of acquired intangible assets |
|
24,435 |
|
|
|
22,992 |
|
|
|
71,057 |
|
|
|
68,849 |
|
Impairment of long-lived assets |
|
18,698 |
|
|
|
— |
|
|
|
31,296 |
|
|
|
621 |
|
Total operating expenses |
|
751,158 |
|
|
|
693,516 |
|
|
|
2,224,427 |
|
|
|
2,072,079 |
|
|
|
|
|
|
|
|
|
||||||||
Other operating income |
|
3,100 |
|
|
|
72,027 |
|
|
|
6,632 |
|
|
|
72,027 |
|
Income (loss) from operations |
|
(39,403 |
) |
|
|
6,849 |
|
|
|
(172,352 |
) |
|
|
(147,171 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income (expense) |
|
|
|
|
|
|
|
||||||||
Investment income, net |
|
11,582 |
|
|
|
2,065 |
|
|
|
29,596 |
|
|
|
7,383 |
|
Interest expense |
|
(9,607 |
) |
|
|
(7,871 |
) |
|
|
(17,439 |
) |
|
|
(11,582 |
) |
Total other income (expense) |
|
1,975 |
|
|
|
(5,806 |
) |
|
|
12,157 |
|
|
|
(4,199 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) before tax |
|
(37,428 |
) |
|
|
1,043 |
|
|
|
(160,195 |
) |
|
|
(151,370 |
) |
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
(808 |
) |
|
|
(249 |
) |
|
|
(4,077 |
) |
|
|
(3,013 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(38,236 |
) |
|
$ |
794 |
|
|
$ |
(164,272 |
) |
|
$ |
(154,383 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share—basic |
$ |
(0.21 |
) |
|
$ |
0.00 |
|
|
$ |
(0.89 |
) |
|
$ |
(0.86 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share—diluted |
$ |
(0.21 |
) |
|
$ |
0.00 |
|
|
$ |
(0.89 |
) |
|
$ |
(0.86 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding—basic |
|
184,795 |
|
|
|
180,649 |
|
|
|
183,823 |
|
|
|
179,817 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding—diluted |
|
184,795 |
|
|
|
184,075 |
|
|
|
183,823 |
|
|
|
179,817 |
|
Selected Unaudited Financial Information Condensed Consolidated Balance Sheets (Amounts in thousands) |
|||||
|
|
|
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
588,830 |
|
$ |
605,378 |
Marketable securities |
|
432,301 |
|
|
172,266 |
Accounts receivable, net |
|
264,819 |
|
|
203,623 |
Inventory |
|
136,987 |
|
|
127,475 |
Prepaid expenses and other current assets |
|
110,180 |
|
|
85,627 |
Property, plant and equipment, net |
|
690,332 |
|
|
698,354 |
Operating lease right-of-use assets |
|
122,452 |
|
|
143,708 |
|
|
2,367,450 |
|
|
2,367,120 |
Intangible assets, net |
|
1,864,399 |
|
|
1,890,396 |
Other long-term assets, net |
|
170,821 |
|
|
177,387 |
Total assets |
$ |
6,748,571 |
|
$ |
6,471,334 |
|
|
|
|
||
Liabilities and stockholders’ equity |
|
|
|
||
Convertible notes, net, current portion |
$ |
249,038 |
|
$ |
— |
Current liabilities |
|
474,624 |
|
|
514,701 |
Convertible notes, net, less current portion |
|
2,319,490 |
|
|
2,314,276 |
Other long-term liabilities |
|
332,213 |
|
|
335,982 |
Operating lease liabilities, less current portion |
|
162,695 |
|
|
161,070 |
Total stockholders’ equity |
|
3,210,511 |
|
|
3,145,305 |
Total liabilities and stockholders’ equity |
$ |
6,748,571 |
|
$ |
6,471,334 |
Selected Unaudited Financial Information Reconciliation of Core Revenue (Amounts in thousands) |
|||||||||||||||||||||
|
|
GAAP |
|
|
|
|
|
|
|||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
|
|||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
|
|
|
|
|||||
Screening |
|
$ |
544,901 |
|
|
$ |
472,013 |
|
|
15 |
% |
|
|
|
|
|
|
||||
Precision Oncology |
|
|
163,754 |
|
|
|
156,325 |
|
|
5 |
% |
|
|
|
|
|
|
||||
Total |
|
$ |
708,655 |
|
|
$ |
628,338 |
|
|
13 |
% |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Non-GAAP |
|
|
|
|
|
|
|||||||||||||
|
|
Three Months Ended |
|
|
|||||||||||||||||
|
|
|
2024 (1 ) |
|
|
|
2023 (1 ) |
|
|
% Change |
|
Foreign Currency
|
|
Core Revenue (3) |
|
% Change (3) |
|||||
Screening |
|
$ |
544,901 |
|
|
$ |
472,013 |
|
|
15 |
% |
|
$ |
— |
|
|
$ |
544,901 |
|
15 |
% |
Precision Oncology |
|
|
162,819 |
|
|
|
154,451 |
|
|
5 |
% |
|
|
(810 |
) |
|
|
162,009 |
|
5 |
% |
Total |
|
$ |
707,720 |
|
|
$ |
626,464 |
|
|
13 |
% |
|
$ |
(810 |
) |
|
$ |
706,910 |
|
13 |
% |
|
|
GAAP |
|
|
|
|
|
|
|||||||||||||
|
|
Nine Months Ended |
|
|
|
|
|
|
|||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
|
|
|
|
|||||
Screening |
|
$ |
1,551,305 |
|
|
$ |
1,377,995 |
|
|
13 |
% |
|
|
|
|
|
|
||||
Precision Oncology |
|
|
494,138 |
|
|
|
468,931 |
|
|
5 |
% |
|
|
|
|
|
|
||||
COVID-19 Testing |
|
|
— |
|
|
|
5,955 |
|
|
(100 |
)% |
|
|
|
|
|
|
||||
Total |
|
$ |
2,045,443 |
|
|
$ |
1,852,881 |
|
|
10 |
% |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Non-GAAP |
|
|
|
|
|
|
|||||||||||||
|
|
Nine Months Ended |
|
|
|||||||||||||||||
|
|
|
2024 (1 ) |
|
|
|
2023 (1 ) |
|
|
% Change |
|
Foreign Currency
|
|
Core Revenue (3) |
|
% Change (3) |
|||||
Screening |
|
$ |
1,551,305 |
|
|
$ |
1,377,995 |
|
|
13 |
% |
|
$ |
— |
|
|
$ |
1,551,305 |
|
13 |
% |
Precision Oncology |
|
|
486,518 |
|
|
|
462,725 |
|
|
5 |
% |
|
|
(672 |
) |
|
|
485,846 |
|
5 |
% |
Total |
|
$ |
2,037,823 |
|
|
$ |
1,840,720 |
|
|
11 |
% |
|
$ |
(672 |
) |
|
$ |
2,037,151 |
|
11 |
% |
|
(1) Excludes revenue from COVID-19 testing, the divested Oncotype DX Genomic Prostate Score test, and the Resolution Bioscience acquisition.
(2) Foreign currency impact is calculating the change in current period non-
(3) Excludes revenue from COVID-19 testing, the divested Oncotype DX Genomic Prostate Score test, the impact of foreign currency exchange rate fluctuations, and the Resolution Bioscience acquisition.
Selected Unaudited Financial Information Non-GAAP Gross Profit and Non-GAAP Gross Margin Reconciliations (Amounts in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
708,655 |
|
|
$ |
628,338 |
|
|
$ |
2,045,443 |
|
|
$ |
1,852,881 |
|
Cost of sales (exclusive of amortization of acquired intangible assets) |
|
|
196,070 |
|
|
|
168,526 |
|
|
|
556,019 |
|
|
|
482,383 |
|
Amortization of acquired intangible assets (1) |
|
|
21,100 |
|
|
|
20,781 |
|
|
|
63,300 |
|
|
|
62,216 |
|
Gross profit |
|
$ |
491,485 |
|
|
$ |
439,031 |
|
|
$ |
1,426,124 |
|
|
$ |
1,308,282 |
|
Gross margin |
|
|
69 |
% |
|
|
70 |
% |
|
|
70 |
% |
|
|
71 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Amortization of acquired intangible assets (1) |
|
|
21,100 |
|
|
|
20,781 |
|
|
|
63,300 |
|
|
|
62,216 |
|
Non-GAAP gross profit |
|
$ |
512,585 |
|
|
$ |
459,812 |
|
|
$ |
1,489,424 |
|
|
$ |
1,370,498 |
|
Non-GAAP gross margin |
|
|
72 |
% |
|
|
73 |
% |
|
|
73 |
% |
|
|
74 |
% |
|
(1) Includes only amortization of intangible assets identified as developed technology assets through purchase accounting transactions, which otherwise would have been allocated to cost of sales.
Selected Unaudited Financial Information Adjusted EBITDA Reconciliations (Amounts in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
|
$ |
(38,236 |
) |
|
$ |
794 |
|
|
$ |
(164,272 |
) |
|
$ |
(154,383 |
) |
Interest expense (1) |
|
|
9,607 |
|
|
|
7,871 |
|
|
|
17,439 |
|
|
|
11,582 |
|
Income tax expense |
|
|
808 |
|
|
|
249 |
|
|
|
4,077 |
|
|
|
3,013 |
|
Investment income |
|
|
(11,582 |
) |
|
|
(2,065 |
) |
|
|
(29,596 |
) |
|
|
(7,383 |
) |
Depreciation and amortization |
|
|
54,771 |
|
|
|
52,254 |
|
|
|
161,712 |
|
|
|
152,436 |
|
Stock-based compensation (2) |
|
|
57,219 |
|
|
|
72,089 |
|
|
|
197,143 |
|
|
|
204,752 |
|
Acquisition and integration costs (3) |
|
|
5,310 |
|
|
|
(4,395 |
) |
|
|
2,836 |
|
|
|
(8,146 |
) |
Impairment of long-lived assets (4) |
|
|
18,698 |
|
|
|
— |
|
|
|
31,296 |
|
|
|
621 |
|
Gain on sale of asset and divestiture related costs (5) |
|
|
(3,100 |
) |
|
|
(70,522 |
) |
|
|
(6,632 |
) |
|
|
(70,522 |
) |
Restructuring and business transformation (6) |
|
|
8,736 |
|
|
|
— |
|
|
|
11,671 |
|
|
|
907 |
|
License agreement termination (7) |
|
|
— |
|
|
|
— |
|
|
|
25,843 |
|
|
|
— |
|
Legal settlement (8) |
|
|
(3,500 |
) |
|
|
— |
|
|
|
(3,500 |
) |
|
|
36,186 |
|
Adjusted EBITDA |
|
$ |
98,731 |
|
|
$ |
56,275 |
|
|
$ |
248,017 |
|
|
$ |
169,063 |
|
Adjusted EBITDA margin |
|
|
14 |
% |
|
|
9 |
% |
|
|
12 |
% |
|
|
9 |
% |
|
Refer below the Reconciliations of
Selected Unaudited Financial Information
Reconciliation of (Amounts in thousands) |
||||||||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
Cost of
|
|
Research &
|
|
Sales &
|
|
General &
|
|
Amortization
|
|
Impairment
|
|
Other
|
|
Income
|
||||||||||||||
Reported |
|
$ |
196,070 |
|
$ |
100,101 |
|
|
$ |
194,653 |
|
$ |
217,201 |
|
|
$ |
24,435 |
|
|
$ |
18,698 |
|
|
$ |
3,100 |
|
|
$ |
(39,403 |
) |
Amortization of acquired intangible assets |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(24,435 |
) |
|
|
— |
|
|
|
— |
|
|
|
24,435 |
|
Acquisition and integration costs (3) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(5,310 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,310 |
|
Impairment of long-lived assets (4) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(18,698 |
) |
|
|
— |
|
|
|
18,698 |
|
Gain on sale of asset and divestiture related costs (5) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,100 |
) |
|
|
(3,100 |
) |
Restructuring and business transformation (6) |
|
|
— |
|
|
(4,181 |
) |
|
|
— |
|
|
(4,555 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,736 |
|
Legal settlement (8) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
3,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,500 |
) |
Adjusted |
|
$ |
196,070 |
|
$ |
95,920 |
|
|
$ |
194,653 |
|
$ |
210,836 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,176 |
|
|
|
Nine Months Ended |
||||||||||||||||||||||||||||||
|
|
Cost of
|
|
Research &
|
|
Sales &
|
|
General &
|
|
Amortization
|
|
Impairment
|
|
Other
|
|
Income
|
||||||||||||||||
Reported |
|
$ |
556,019 |
|
|
$ |
331,593 |
|
|
$ |
572,288 |
|
|
$ |
662,174 |
|
|
$ |
71,057 |
|
|
$ |
31,296 |
|
|
$ |
6,632 |
|
|
$ |
(172,352 |
) |
Amortization of acquired intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(71,057 |
) |
|
|
— |
|
|
|
— |
|
|
|
71,057 |
|
Acquisition and integration costs (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,836 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,836 |
|
Impairment of long-lived assets (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(31,296 |
) |
|
|
— |
|
|
|
31,296 |
|
Gain on sale of asset and divestiture related costs (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,632 |
) |
|
|
(6,632 |
) |
Restructuring and business transformation (6) |
|
|
(200 |
) |
|
|
(6,574 |
) |
|
|
(222 |
) |
|
|
(4,675 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,671 |
|
License agreement termination (7) |
|
|
— |
|
|
|
(25,843 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,843 |
|
Legal settlement (8) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,500 |
) |
Adjusted |
|
$ |
555,819 |
|
|
$ |
299,176 |
|
|
$ |
572,066 |
|
|
$ |
658,163 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(39,781 |
) |
Selected Unaudited Financial Information
Reconciliation of (Amounts in thousands) |
|||||||||||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||||||||||
|
|
Cost of
|
|
Research &
|
|
Sales &
|
|
General &
|
|
Amortization
|
|
Impairment
|
|
Other
|
|
Income
|
|||||||||||||
Reported |
|
$ |
168,526 |
|
$ |
111,446 |
|
|
$ |
173,159 |
|
$ |
217,393 |
|
|
$ |
22,992 |
|
|
$ |
— |
|
$ |
72,027 |
|
|
$ |
6,849 |
|
Amortization of acquired intangible assets |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(22,992 |
) |
|
|
— |
|
|
— |
|
|
|
22,992 |
|
Acquisition and integration costs (3) |
|
|
— |
|
|
(492 |
) |
|
|
— |
|
|
4,887 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(4,395 |
) |
Gain on sale of asset and divestiture related costs (5) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(1,505 |
) |
|
|
— |
|
|
|
— |
|
|
(72,027 |
) |
|
|
(70,522 |
) |
Adjusted |
|
$ |
168,526 |
|
$ |
110,954 |
|
|
$ |
173,159 |
|
$ |
220,775 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
(45,076 |
) |
|
|
Nine Months Ended |
||||||||||||||||||||||||||||
|
|
Cost of
|
|
Research &
|
|
Sales &
|
|
General &
|
|
Amortization
|
|
Impairment
|
|
Other
|
|
Income
|
||||||||||||||
Reported |
|
$ |
482,383 |
|
$ |
310,960 |
|
|
$ |
536,613 |
|
$ |
672,653 |
|
|
$ |
68,849 |
|
|
$ |
621 |
|
|
$ |
72,027 |
|
|
$ |
(147,171 |
) |
Amortization of acquired intangible assets |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(68,849 |
) |
|
|
— |
|
|
|
— |
|
|
|
68,849 |
|
Acquisition and integration costs (3) |
|
|
— |
|
|
(492 |
) |
|
|
— |
|
|
8,638 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,146 |
) |
Impairment of long-lived assets (4) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(621 |
) |
|
|
— |
|
|
|
621 |
|
Gain on sale of asset and divestiture related costs (5) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(1,505 |
) |
|
|
— |
|
|
|
— |
|
|
|
(72,027 |
) |
|
|
(70,522 |
) |
Restructuring and business transformation (6) |
|
|
— |
|
|
(723 |
) |
|
|
— |
|
|
(184 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
907 |
|
Legal settlement (8) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(36,186 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36,186 |
|
Adjusted |
|
$ |
482,383 |
|
$ |
309,745 |
|
|
$ |
536,613 |
|
$ |
643,416 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(119,276 |
) |
|
(1) Interest expense includes net gains recorded of
(2) Represents stock-based compensation expense and 401(k) match expense. The Company matches a portion of
(3) Represents acquisition and related integration costs incurred as a result of the Company’s business combinations. Acquisition costs represent legal and professional fees incurred to execute the transaction. There were no acquisition costs incurred for the three and nine months ended
(4) Represents impairment charges on the Company’s long-lived assets. For the three and nine months ended
(5) Relates to the sale of the intellectual property and know-how related to the Company’s Oncotype DX Genomic Prostate Score® (“GPS”) test to MDxHealth SA (“MDxHealth”) in
(6) Includes costs associated with the Company's business transformation program intended to consolidate operations, achieve targeted cost reductions, and focus resources on its key strategic priorities. For the three and nine months ended
(7) The Company terminated its license and sponsored research agreements with
(8) The Company reached settlements with counterparties related to the Medicare Date of Service Rule Investigation and the Federal Anti-Kickback Statute and False Claims Act qui tam lawsuit.
(9) Represents Cost of sales (exclusive of amortization of acquired intangible assets) from the Company's condensed consolidated statement of operations.
Selected Unaudited Financial Information Condensed Consolidated Statements of Cash Flows and Reconciliation of Free Cash Flow (Amounts in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
|
$ |
138,719 |
|
|
$ |
24,361 |
|
|
$ |
163,473 |
|
|
$ |
86,570 |
|
Net cash provided by (used in) investing activities |
|
|
(81,716 |
) |
|
|
(32,969 |
) |
|
|
(400,283 |
) |
|
|
116,446 |
|
Net cash provided by (used in) financing activities |
|
|
(226 |
) |
|
|
92 |
|
|
|
221,375 |
|
|
|
149,729 |
|
Effects of exchange rate changes on cash and cash equivalents |
|
|
1,873 |
|
|
|
(1,235 |
) |
|
|
427 |
|
|
|
(626 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
58,650 |
|
|
|
(9,751 |
) |
|
|
(15,008 |
) |
|
|
352,119 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
|
536,017 |
|
|
|
604,660 |
|
|
|
609,675 |
|
|
|
242,790 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
594,667 |
|
|
$ |
594,909 |
|
|
$ |
594,667 |
|
|
$ |
594,909 |
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of free cash flow: |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
138,719 |
|
|
$ |
24,361 |
|
|
$ |
163,473 |
|
|
$ |
86,570 |
|
Purchases of property, plant and equipment |
|
|
(26,158 |
) |
|
|
(25,187 |
) |
|
|
(99,673 |
) |
|
|
(89,268 |
) |
Free cash flow |
|
$ |
112,561 |
|
|
$ |
(826 |
) |
|
$ |
63,800 |
|
|
$ |
(2,698 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105076239/en/
Investor Contact:
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608-535-8659
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608-556-4380
Source: