qdel-20230402

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________

FORM 10-Q

____________________________________________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 2, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-41409

____________________________________________________________________________

QUIDELORTHO CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________________________________________________


Delaware						87-4496285
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

9975 Summers Ridge Road, San Diego, California						92121
(Address of principal executive offices)						(zip code)

(858) 552-1100

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 Par Value	QDEL	The Nasdaq Stock Market

____________________________________________________________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 25, 2023, 66,633,473 shares of the registrant’s common stock were outstanding.

INDEX


PART I—FINANCIAL INFORMATION
ITEM 1. Financial Statements (unaudited)
Consolidated Balance Sheets as of April 2, 2023 and January 1, 2023			3
Consolidated Statements of Income for the three months ended April 2, 2023 and April 3, 2022			4
Consolidated Statements of Comprehensive Income for the three months ended April 2, 2023 and April 3, 2022			5
Consolidated Statements of Stockholders’ Equity for the three months ended April 2, 2023 and April 3, 2022			6
Consolidated Statements of Cash Flows for the three months ended April 2, 2023 and April 3, 2022			7
Notes to Consolidated Financial Statements			8
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			21
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk			29
ITEM 4. Controls and Procedures			31
PART II—OTHER INFORMATION
ITEM 1. Legal Proceedings			32
ITEM 1A. Risk Factors			32
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			32
ITEM 3. Defaults Upon Senior Securities			32
ITEM 4. Mine Safety Disclosures			32
ITEM 5. Other Information			32
ITEM 6. Exhibits			33
Signatures			34

PART I FINANCIAL INFORMATION

ITEM 1. Financial Statements

QUIDELORTHO CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions, except par value)


	April 2, 2023		January 1, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	353.9	$	292.9
Marketable securities	42.8		52.1
Accounts receivable, net	274.8		453.9
Inventories	528.6		524.1
Prepaid expenses and other current assets	298.8		252.1
Total current assets	1,498.9		1,575.1
Property, plant and equipment, net	1,361.7		1,339.0
Marketable securities	33.8		21.0
Right-of-use assets	179.4		181.0
Goodwill	2,491.3		2,476.8
Intangible assets, net	3,078.5		3,123.8
Deferred tax asset	16.5		16.4
Other assets	127.0		122.7
Total assets	$	8,787.1	$	8,855.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	241.5	$	283.3
Accrued payroll and related expenses	108.5		139.2
Income tax payable	16.3		51.6
Current portion of borrowings	207.5		207.5
Other current liabilities	334.0		325.4
Total current liabilities	907.8		1,007.0
Operating lease liabilities	183.3		186.4
Long-term borrowings	2,379.6		2,430.8
Deferred tax liability	208.8		213.2
Other liabilities	111.1		83.8
Total liabilities	3,790.6		3,921.2
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 5.0 shares authorized; none issued or outstanding at April 2, 2023 and January 1, 2023	—		—
Common stock, $0.001 par value per share; 126.2 shares authorized; 66.6 and 66.4 shares issued and outstanding at April 2, 2023 and January 1, 2023, respectively	0.1		—

Additional paid-in capital	2,809.0		2,804.3
Accumulated other comprehensive loss	(59.3)		(67.6)
Retained earnings	2,246.7		2,197.9
Total stockholders’ equity	4,996.5		4,934.6
Total liabilities and stockholders’ equity	$	8,787.1	$	8,855.8

See accompanying notes.

QUIDELORTHO CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In millions, except per share data)


	Three Months Ended
	April 2, 2023		April 3, 2022
Total revenues	$	846.1	$	1,002.3
Cost of sales, excluding amortization of intangibles	397.5		260.3
Selling, marketing and administrative	202.4		84.8
Research and development	62.3		26.4
Amortization of intangible assets	50.8		7.1
Acquisition and integration costs	29.7		3.0
Other operating expenses	3.8		—
Operating income	99.6		620.7
Interest expense, net	36.7		1.0

SEC Form 10-Q filed by QuidelOrtho Corporation