Raises Full-Year 2024 Financial Guidance Reflecting Enhanced Revenue Growth and Strong Execution of Strategic Priorities Accelerated First Quarter Revenue Growth by 8.7%, Organic Growth* by 15.3% Gross Margin Expanded 620 bps and Adjusted Gross Margin* 190 bps DURHAM, N.C., May 07, 2024 (GLOBE NEWSWIRE) -- Bioventus Inc. (NASDAQ:BVS) ("Bioventus" or the "Company"), a global leader in innovations for active healing, today reported financial results for the three months ended March 30, 2024. "We are pleased with the strong start to the year driven by double-digit revenue growth in both Pain Treatments and Surgical Solutions leading to a substantial increase in our profitability," said Rob Claypoole, Bioventus' President and Chief Executive Officer. "As we look ahead, we remain laser focused on executing on our priorities to accelerate revenue growth, enhance profitability and reduce our leverage. The increase in our financial guidance signals the confidence we have in our ability to build on our momentum throughout 2024 and create further value for our stakeholders." First Quarter 2024 Financial Results: For the first quarter, worldwide revenue totaled $129.5 million, an increase of 8.7% compared to the prior-year period. On an organic* basis, revenue increased 15.3%, driven by growth in Pain Treatments and Surgical Solutions. The Company also reported a first quarter net loss from continuing operations of $6.0 million, compared to a net loss from continuing operations of $100.0 million in the prior-year period. Adjusted EBITDA* from continuing operations totaled $22.6 million, advancing 33.5%, compared to the prior year total of $17.0 million due to strong revenue growth and increased gross margin. Loss per share of Class A common stock from continuing operations was $0.07 in the first quarter, compared to a loss of $1.28 in the prior-year period. Non-GAAP earnings per share of Class A common stock from continuing operations* was $0.07 in the first quarter, compared to a loss of $0.26 in the prior-year period.           Revenue By Business The following table represents net sales by geographic region, and by business, for the three months ended March 30, 2024 and April 1, 2023:   Three Months Ended   Change as Reported   Constant Currency* Change (in thousands, except for percentage) March 30, 2024   April 1, 2023   $   %   % U.S.                   Pain Treatments $        50,637    $        40,995    $          9,642   23.5%   23.5% Restorative Therapies(a)          25,304             30,776              (5,472)   (17.8%)   (17.8%) Surgical Solutions(a)          38,340             32,207               6,133   19.0%   19.0% Total U.S. net sales         114,281            103,978             10,303    9.9%   9.9% International                   Pain Treatments            6,052              5,331                 721   13.5%   12.5% Restorative Therapies(a)            5,170              5,549                (379)   (6.8%)   (7.1%) Surgical Solutions(a)            3,954              4,201                (247)   (5.9%)   (6.0%) Total International net sales          15,176             15,081                    95   0.6%   0.2% Total net sales $      129,457    $      119,059    $        10,398    8.7%   7.3% (a) Sales from the SonicOne product were reclassified from Restorative Therapies to Surgical Solutions on a prospective and retrospective basis during 2024 as its abilities to remove devitalized or necrotic tissue and fiber deposits more closely aligns with Surgical Solutions' soft tissue management. SonicOne revenue reclassified for the three months ended April 1, 2023 totaled $1,712 and $65 for the U.S. and International reporting segments, respectively.  Recent Business Highlights Bioventus continues to advance its strategic priorities with key achievements, which recently included the following: Revenue growth in Pain Treatments and Surgical Solutions and increased gross margin resulting in a 33.5% increase in Adjusted EBITDA*. Continued to enhance liquidity position through increased Adjusted EBITDA*. Amended its Credit and Guaranty Agreement in January 2024 with enhanced terms to provide additional covenant flexibility expected through the third quarter of 2025. Obtained EU MDR Certification for its Exogen Bone Stimulation System in April 2024. 2024 Financial Guidance: Based on strong execution and significant momentum across the business, Bioventus is raising financial guidance for full-year 2024. The Company now expects: Net sales of $535 million to $550 million—An increase of $15 million from previous guidance Adjusted EBITDA* of $94 million to $99 million—An increase of $5 million from previous guidance Non-GAAP EPS* of $0.25 to $0.33—An increase of $0.13 from previous guidance The Company does not provide U.S. GAAP financial measures, other than net sales, on a forward-looking basis, because the Company is unable to predict with reasonable certainty the impact and timing of acquisition related expenses, accounting fair-value adjustments, and certain other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company's results computed in accordance with U.S. GAAP. About Bioventus Bioventus delivers clinically proven, cost-effective products that help people heal quickly and safely. Its mission is to make a difference by helping patients resume and enjoy active lives. The Innovations for Active Healing from Bioventus include offerings for Pain Treatments, Restorative Therapies and Surgical Solutions. Built on a commitment to high quality standards, evidence-based medicine and strong ethical behavior, Bioventus is a trusted partner for physicians worldwide. For more information, visit www.bioventus.com and follow the Company on LinkedIn and Twitter. Bioventus and the Bioventus logo are registered trademarks of Bioventus LLC. First Quarter 2024 Earnings Conference Call: Management will host a conference call to discuss the Company's financial results and provide a business update, with a question and answer session, at 8:30 a.m. Eastern Time on May 7, 2024. Those who would like to participate may dial 1-833-636-0497 (domestic and international) and refer to Bioventus Inc. A live webcast of the call and any accompanying materials will also be provided on the investor relations section of the Company's website at https://ir.bioventus.com/. The webcast will be archived on the Company's website at https://ir.bioventus.com/ and available for replay until May 6, 2025. Legal Notice Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements concerning our future financial results and liquidity; the impact of our recent amendment to our Credit and Guaranty Agreement on our financial condition, operations, and liquidity; our business strategy, position and operations; and expected sales trends, opportunities, market position and growth. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "contemplate," "continue," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "positioned," "seek," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause our actual results to differ materially from those contemplated in this press release include, but are not limited to the risk that if we are unable to meet our current operating projections or secure other sources of liquidity, substantial doubt about our ability to continue as a going concern may arise; the risk that we might not meet certain of our debt covenants under our Credit and Guaranty Agreement and might be required to repay our indebtedness; risks associated with the disposition of our Wound Business and expected impacts on our business; restrictions on operations and other costs associated with our indebtedness; our ability to complete acquisitions or successfully integrate new businesses, products or technologies in a cost-effective and non-disruptive manner; we maintain cash at financial institutions, often in balance that exceed federally insured limits; we are subject to securities class action litigation and may be subject to similar or other litigation in the future, which will require significant management time and attention, result in significant legal expenses and may result in unfavorable outcomes; our ability to maintain our competitive position depends on our ability to attract, retain and motivate our senior management team and highly qualified personnel; we are highly dependent on a limited number of products; our long-term growth depends on our ability to develop, acquire and commercialize new products, line extensions or expanded indications; we may be unable to successfully commercialize newly developed or acquired products or therapies in the United States; demand for our existing portfolio of products and any new products, line extensions or expanded indications depends on the continued and future acceptance of our products by physicians, patients, third-party payers and others in the medical community; the proposed down classification of non-invasive bone growth stimulators, including our Exogen system, by the U.S. Food and Drug Administration (FDA) could increase future competition for bone growth stimulators and otherwise adversely affect the Company's sales of Exogen; failure to achieve and maintain adequate levels of coverage and/or reimbursement for our products or future products, the procedures using our products, such as our hyaluronic acid (HA) viscosupplements, or future products we may seek to commercialize; pricing pressure and other competitive factors; governments outside the United States might not provide coverage or reimbursement of our products; we compete and may compete in the future against other companies, some of which have longer operating histories, more established products or greater resources than we do; if our HA products are reclassified from medical devices to drugs in the United States by the FDA, it could negatively impact our ability to market these products and may require that we conduct costly additional clinical studies to support current or future indications for use of those products; our failure to properly manage our anticipated growth and strengthen our brands; risks related to product liability claims; fluctuations in demand for our products; issues relating to the supply of our products, potential supply chain disruptions, and the increased cost of parts and components used to manufacture our products due to inflation; our reliance on a limited number of third-party manufacturers to manufacture certain of our products; if our facilities are damaged or become inoperable, we will be unable to continue to research, develop and manufacture certain of our products; economic, political, regulatory and other risks related to international sales, manufacturing and operations; failure to maintain contractual relationships; security breaches, unauthorized access to or disclosure of information, cyberattacks, or other incidents or the perception that confidential information in our or our vendors' or service providers' possession or control is not secure; failure of key information technology and communications systems, process or sites; risks related to our debt and future capital needs; the risk that new material weaknesses could adversely affect our ability to report our results of operations and financial condition accurately and in timely manner; failure to comply with extensive governmental regulation relevant to us and our products; we may be subject to enforcement action if we engage in improper claims submission practices and resulting audits or denials of our claims by government agencies could reduce our net sales or profits; the FDA regulatory process is expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and approvals could prevent us from commercializing our products; if clinical studies of our future product candidates do not produce results necessary to support regulatory clearance or approval in the United States or elsewhere, we will be unable to expand the indications for or commercialize these products; legislative or regulatory reforms; our business may continue to experience adverse impacts as a result of the COVID-19 pandemic or similar epidemics; risks related to intellectual property matters; and the other risks identified in our Annual Report on Form 10-K for the year ended December 31, 2023, as such factors may be updated from time to time in Bioventus' other filings with the SEC which are accessible on the SEC's website at www.sec.gov and the Investor Relations page of Bioventus' website at https://ir.bioventus.com. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ materially from those set forth in the forward-looking statements.   BIOVENTUS INC.Consolidated balance sheetsAs of March 30, 2024 and December 31, 2023(Amounts in thousands, except share amounts) (unaudited)     March 30, 2024   December 31, 2023 Assets       Current assets:       Cash and cash equivalents $ 25,173     $ 36,964   Accounts receivable, net   125,541       122,789   Inventory   97,005       91,333   Prepaid and other current assets   18,184       16,913   Total current assets   265,903       267,999   Property and equipment, net   34,532       36,605   Goodwill   7,462       7,462   Intangible assets, net   470,668       482,350   Operating lease assets   12,462       13,353   Investment and other assets   3,211       3,141   Total assets $ 794,238     $ 810,910   Liabilities and Stockholders' Equity       Current liabilities:       Accounts payable $ 19,099     $ 23,038   Accrued liabilities   113,605       119,795   Current portion of long-term debt   35,811       27,848   Other current liabilities   4,806       4,816   Total current liabilities   173,321       175,497   Long-term debt, less current portion   355,430       366,998   Deferred income taxes   1,294       1,213   Contingent consideration   18,445       18,150   Other long-term liabilities   28,316       27,934   Total liabilities   576,806       589,792   Stockholders' Equity:       Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued       Class A common stock, $0.001 par value, 250,000,000 shares authorized as of March 30, 2024 and December 31, 2023, 63,672,170 and 63,267,436 shares issued and outstanding as of March 30, 2024 and December 31, 2023, respectively   64       63   Class B common stock, $0.001 par value, 50,000,000 shares authorized, 15,786,737 shares issued and outstanding as of March 30, 2024 and December 31, 2023   16       16   Additional paid-in capital   496,977       494,254   Accumulated deficit   (326,106 )     (321,536 ) Accumulated other comprehensive income   325       794   Total stockholders' equity attributable to Bioventus Inc.   171,276       173,591   Noncontrolling interest   46,156       47,527   Total stockholders' equity   217,432       221,118   Total liabilities and stockholders' equity $ 794,238     $ 810,910     BIOVENTUS INC.Consolidated statements of operations and comprehensive loss(Amounts in thousands, except share and per share data, unaudited)     Three Months Ended   March 30, 2024   April 1, 2023 Net sales $ 129,457     $ 119,059   Cost of sales (including depreciation and amortization of $10,025 and $14,339, respectively)   41,077       45,140   Gross profit   88,380       73,919   Selling, ...