Bausch Health Companies Inc. (NYSE:BHC) Q3 2018 Earnings Conference Call Transcript

Nov 06, 2018 • 08:00 am ET


Bausch Health Companies Inc. (NYSE:BHC) Q3 2018 Earnings Conference Call Transcript


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Good morning, and welcome to the Bausch Health Third Quarter 2018 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Art Shannon, Senior Vice President, Head of Investor Relations and Global Communications. Please go ahead.

Arthur Shannon

Thank you, Chad. Good morning, everyone, and welcome to our Third Quarter 2018 Financial Results Conference Call. Participating on today's call are Chairman and Chief Executive Officer, Mr. Joe Papa; and Chief Financial Officer, Mr. Paul Herendeen. In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section.

(Forward-Looking Cautionary Statements)

This presentation contains non-GAAP financial measures. For more information about these measures, please refer to Slide 2 of the presentation. Non-GAAP reconciliations can be found in the appendix of the presentation posted on our website.

Finally, financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter and not to update or affirm guidance other than through broadly disseminated public disclosure.

With that, it's my pleasure to turn the call over to Joe.

Joseph Papa

Thank you, Art, and thanks, everyone, on the phone for joining us this morning. Let's quickly review the topic for today's call. I'll begin with the third quarter highlights before turning the call over to Paul Herendeen, our CFO, to review the financial results in detail and update our 2018 guidance. I then will review the segment highlights and catalysts before opening the line for questions.

Beginning on Slide 4. I'm pleased to say the third quarter results further demonstrate that our progress towards transformation is on track. In addition to another consecutive overall organic growth, we successfully delivered organic growth across all reporting segments and generated great cash flow from operations in the third quarter. Based on the efforts of the 21,000-plus Bausch Health team members around the world, we are executing on our plans to resolve legacy issues, investing in core franchises and launching new products that we expect to be the foundation of our future growth.

On Slide 5, we've called out some of the highlights that demonstrate our continued progress towards transformation. First and foremost, our businesses are growing. Revenue grew organically by 3% compared to the prior year quarter, and third quarter 2018 was our third consecutive quarter of overall organic revenue growth. We also generated $522 million of cash from operations in the third quarter.

At the product level, our top 10 products grew organically by 7% in the aggregate compared to the prior year quarter.

Moving on to the top right of Slide 5, we had a lot of new product activity, including the launches of LUCEMYRA in August, the SiHy Daily lenses, which were launched in Japan in September and PLENVU, which was also launched in September. I'll cover a few other recent and upcoming launches in more detail