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• Revenue: $151 million, a 10% increase compared to the prior year.

• Organic Revenue Growth: 14% increase, excluding the impact of the Wound Business divestiture.

• Adjusted EBITDA: Over $34 million, a 22% increase compared to the prior year.

• Adjusted Gross Margin: 76%, improved by 180 basis points from the prior year.

• Surgical Solutions Revenue: 16% increase, driven by Ultrasonics and Bone Graft Substitutes.

• Pain Treatments Revenue: 17% increase, driven by Durolane's brand recognition.

• Restorative Therapies Organic Growth: 5% increase, driven by Exogen.

• International Segment Growth: 4% increase, driven by Durolane.

• Adjusted Operating Income: $31 million, a 12% increase from the prior year.

• Adjusted Net Income: $15 million, a 37% increase from the prior year.

• Adjusted Earnings Per Share: $0.19 for the quarter.

• Cash on Hand: $32 million at the end of the quarter.

• Debt Outstanding: $383 million, an $8 million reduction for the quarter.

• Operating Cash Flow: $15 million inflow for the quarter.

• 2024 Financial Guidance - Net Sales: Expected to be between $557 million and $567 million.

• 2024 Financial Guidance - Adjusted EBITDA: Expected to be between $104 million and $107 million.

• 2024 Financial Guidance - Adjusted EPS: Expected to be between $0.36 and $0.42.

• Warning! GuruFocus has detected 10 Warning Signs with BVS.

Release Date: August 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bioventus Inc (NASDAQ:BVS) achieved a 14% organic revenue growth in the second quarter, marking the third consecutive quarter of double-digit growth.

• The company reported its highest adjusted EBITDA to date at over $34 million, with a 224-basis point increase in adjusted EBITDA margin.

• The Surgical Solutions segment saw a 16% revenue increase, driven by strong performance in Ultrasonics and Bone Graft Substitutes.

• The Pain Treatments segment experienced a 17% revenue increase, supported by strong demand for Durolane and effective commercial execution.

• Bioventus Inc (NASDAQ:BVS) improved its liquidity position by reducing its net leverage ratio and increasing cash flow, with expectations to reduce the ratio below 3x by the end of 2025.

Negative Points

• The Restorative Therapies segment experienced a 9% decline in sales, primarily due to the divestiture of the Wound Business.

• The company plans to divest its Advanced Rehabilitation business, which may impact its focus and resources on core businesses.

• Despite strong performance, the company anticipates a step down in adjusted EBITDA and margins in the second half of the year due to strategic investments.

• The International segment only grew by 4%, with growth expected to accelerate in the latter half of the year due to previous shipment delays.

• Operating expenses increased by nearly $10 million compared to the prior year, driven by higher sales commissions and increased headcount.