Reports record results, screened more than 1
million people with Cologuard®, raises adjusted EBITDA guidance
Second quarter highlights
- Delivered total second quarter revenue of $699 million, an
increase of 12%, or 13% on a core revenue basis, including
Screening revenue of $532 million and Precision Oncology revenue of
$168 million
- Screened more than 1 million people with Cologuard for the
first time during a quarter and tested a record number of cancer
patients with Oncotype DX®
- Advanced pipeline by generating evidence supporting molecular
residual disease, multi-cancer screening, and blood-based
colorectal cancer screening tests
- Maintains full-year 2024 revenue guidance and raises full-year
adjusted EBITDA guidance midpoint by $8M
Exact Sciences Corp. (Nasdaq: EXAS), a leading provider of
cancer screening and diagnostic tests, today announced that the
Company generated revenue of $699 million for the second quarter
ended June 30, 2024, compared to $622 million for the same period
of 2023.
“Our second quarter results show the dedication of Exact
Sciences' world-class team and the power of our unique platform,”
said Kevin Conroy, chairman and CEO. “We delivered answers to more
patients and healthcare professionals than ever before, achieved
record revenue and profitability, and advanced each of our key
pipeline programs. Momentum continues to build, fueling our purpose
to help eradicate cancer.”
Second-quarter 2024 financial results
For the three-month period ended June 30, 2024, as compared to
the same period of 2023 (where applicable):
- Total revenue was $699 million, an increase of 12 percent or 13
percent on a core revenue basis
- Screening revenue was $532 million, an increase of 15
percent
- Precision Oncology revenue was $168 million, an increase of 7
percent, or 6 percent on a core revenue basis
- Gross margin including amortization of acquired intangible
assets was 70 percent, and non-GAAP gross margin excluding
amortization of acquired intangible assets was 73 percent
- Net loss was $16 million, or $0.09 per share, an improvement of
$65 million and $0.36 per share, respectively
- Adjusted EBITDA was $110 million an increase of $43 million,
and adjusted EBITDA margin was 16 percent, an increase of 500 basis
points
- Operating cash flow was $107 million and free cash flow was $71
million, increases of $7 million and $5 million, respectively
- Cash, cash equivalents, and marketable securities were $947
million 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.
2024 outlook
The Company has maintained its full-year 2024 revenue guidance
and raised its full-year 2024 adjusted EBITDA guidance:
Prior guidance
July 31 update
Total revenue
$2.810 - $2.850 billion
$2.810 - $2.850 billion
Screening
$2.155 - $2.175 billion
$2.155 - $2.175 billion
Precision Oncology
$655 - $675 million
$655 - $675 million
Adjusted EBITDA
$325 - $350 million
$335 - $355 million
Second-quarter 2024 conference call & webcast
Company management will host a conference call and webcast on
Wednesday, July 31, 2024, at 5 p.m. ET to discuss second-quarter
2024 results. The webcast will be available at exactsciences.com.
Domestic callers should dial 888-330-2384 and international callers
should dial +1-240-789-2701. The access code for both domestic and
international callers is 4437608. A replay of the webcast will be
available at exactsciences.com. The webcast, conference call, and
replay are open to all interested parties.
Non-GAAP disclosure
In addition to the Company’s financial results determined in
accordance with U.S. GAAP, the Company provides non-GAAP measures
that it determines to be useful in evaluating its operating
performance and liquidity. The Company presents core revenue,
non-GAAP gross margin, non-GAAP gross profit, adjusted EBITDA,
adjusted EBITDA margin, adjusted cost of sales (exclusive of
amortization of acquired intangible assets), adjusted research and
development expenses, adjusted sales and marketing expenses,
adjusted general and administrative expenses, adjusted amortization
of acquired intangible assets, adjusted impairment of long-lived
assets, adjusted other operating income (loss), adjusted operating
income (loss), and free cash flow. Core revenue is calculated to
adjust for recent acquisitions and divestitures, COVID-19 testing
revenue and foreign currency exchange rate fluctuations. To exclude
the impact of change in foreign currency exchange rates from the
prior period under comparison, the Company converts the current
period non-U.S. dollar denominated revenue using the prior year
comparative period exchange rates. The Company defines non-GAAP
gross profit and non-GAAP gross margin as GAAP gross profit and
GAAP gross margin, respectively, excluding amortization of acquired
intangible assets. The amortization of acquisition-related
intangible assets used in the calculation of non-GAAP gross profit
and non-GAAP gross margin pertain only to the amortization
associated with developed technology acquired and recorded through
purchase accounting transactions. The amortization of these
intangible assets will recur in future periods until such
intangible assets have been fully amortized. Adjusted EBITDA,
adjusted cost of sales (exclusive of amortization of acquired
intangible assets), adjusted research and development expenses,
adjusted sales and marketing expenses, adjusted general and
administrative expenses, adjusted amortization of acquired
intangible assets, adjusted impairment of long-lived assets,
adjusted other operating income (loss), and adjusted operating
income (loss) consist of the applicable GAAP measure after
adjustment for those items shown in the reconciliations below.
Adjusted EBITDA margin is calculated as adjusted EBITDA divided by
total revenue. The Company considers free cash flow to be a
liquidity measure and is calculated as net cash used in or provided
by operating activities, reduced by purchases of property, plant
and equipment. Management believes that presentation of non-GAAP
financial measures provides useful supplemental information to
investors and facilitates the analysis of the Company’s core
operating results and comparison of operating results across
reporting periods. The Company uses this non-GAAP financial
information to establish budgets, manage the Company’s business,
and set incentive and compensation arrangements. The Company
believes free cash flow provides useful information to management
and investors since it measures our ability to generate cash from
business operations. Non-GAAP financial information, when taken
collectively, may be helpful to investors because it provides
consistency and comparability with past financial performance.
However, non-GAAP financial information is presented for
supplemental information purposes only, has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for financial information presented in accordance with
U.S. GAAP. For example, non-GAAP gross margin and non-GAAP gross
profit exclude the amortization of acquired intangible assets
although such measures include the revenue associated with the
acquisitions. Additionally, adjusted EBITDA and other adjusted
operating result metrics exclude a number of expense items that are
included in net loss. As a result, positive adjusted EBITDA or
adjusted operating income may be achieved while a significant net
loss persists. For a reconciliation of these non-GAAP measures to
GAAP, see below “Reconciliation of Core Revenue”, “Non-GAAP Gross
Profit and Non-GAAP Gross Margin Reconciliations”, “Adjusted EBITDA
Reconciliations”, “Reconciliation of U.S. GAAP to Non-GAAP
Measures”, and “Condensed Consolidated Statements of Cash Flows and
Reconciliation of Free Cash Flow”. The Company presents certain
forward-looking statements about the Company’s future financial
performance that include non-GAAP measures. These non-GAAP measures
include adjustments like stock-based compensation, acquisition and
integration costs including gains and losses on contingent
consideration, and other significant charges or gains that are
difficult to predict for future periods because the nature of the
adjustments pertain to events that have not yet occurred.
Additionally management does not forecast many of the excluded
items for internal use. Information reconciling forward-looking
non-GAAP measures to U.S. GAAP measures is therefore not available
without unreasonable effort, and is not provided. The occurrence,
timing, and amount of any of the items excluded from GAAP to
calculate non-GAAP could significantly impact the Company’s GAAP
results.
About Cologuard
The Cologuard test was approved by the FDA in August 2014, and
results from Exact Sciences’ prospective 90-site, point-in-time,
10,000-patient pivotal trial were published in the New England
Journal of Medicine in March 2014. The Cologuard test is included
in the American Cancer Society’s (2018) colorectal cancer screening
guidelines and the recommendations of the U.S. Preventive Services
Task Force (2021) and National Comprehensive Cancer Network (2016).
The Cologuard test is indicated to screen adults 45 years of age
and older who are at average risk for colorectal cancer by
detecting certain DNA markers and blood in the stool. Do not use
the Cologuard test if you have had precancer, have inflammatory
bowel disease and certain hereditary syndromes, or have a personal
or family history of colorectal cancer. The Cologuard test is not a
replacement for colonoscopy in high risk patients. The Cologuard
test performance in adults ages 45-49 is estimated based on a large
clinical study of patients 50 and older. The Cologuard test
performance in repeat testing has not been evaluated.
The Cologuard test result should be interpreted with caution. A
positive test result does not confirm the presence of cancer.
Patients with a positive test result should be referred for
colonoscopy. A negative test result does not confirm the absence of
cancer. Patients with a negative test result should discuss with
their doctor when they need to be tested again. Medicare and most
major insurers cover the Cologuard test. For more information about
the Cologuard test, visit cologuardtest.com. Rx only.
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. Exact Sciences enables patients to
take a more active role in their cancer care and makes it easy for
providers to order tests, interpret results, and personalize
medicine. To learn more, visit
precisiononcology.exactsciences.com.
About PreventionGenetics
Founded in 2004 and located in Marshfield, Wisconsin,
PreventionGenetics is a CLIA and ISO 15189:2012 accredited
laboratory. PreventionGenetics delivers clinical genetic testing of
the highest quality at fair prices with exemplary service to people
around the world. PreventionGenetics has 25 PhD geneticists on
staff and provides tests for nearly all clinically relevant genes
including the powerful and comprehensive germline whole genome
sequencing test, PGnome® and whole exome sequencing test, PGxome®.
PreventionGenetics was acquired by Exact Sciences in December
2021.
About Exact Sciences Corp.
A leading provider of cancer screening and diagnostic tests,
Exact Sciences gives patients and health care professionals the
clarity needed to take life-changing action earlier. Building on
the success of the Cologuard and Oncotype DX tests, Exact Sciences
is investing in its pipeline to develop innovative solutions for
use before, during, and after a cancer diagnosis. For more
information, visit ExactSciences.com, follow Exact Sciences on X
(formerly known as Twitter) @ExactSciences, or find Exact Sciences
on LinkedIn and Facebook.
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 U.S.; the amount and nature of
competition for our products and services; the effects of any
judicial, executive or legislative action affecting us or the
healthcare system; recommendations, guidelines and quality metrics
issued by various organizations regarding cancer screening or our
products and services; our ability to successfully develop and
commercialize new products and services and assess potential market
opportunities; our ability to effectively enter into and utilize
strategic partnerships and acquisitions; our success establishing
and maintaining collaborative, licensing and supplier arrangements;
our ability to obtain and maintain regulatory approvals and comply
with applicable regulations; our ability to protect and enforce our
intellectual property; the results of our validation studies and
clinical trials, including the risks that the results of future
studies and trials may differ materially from the results of
previously completed studies and trials; our ability to manage an
international business and our expectations regarding our
international expansion and opportunities; our ability to raise the
capital necessary to support our operations or meet our payment
obligations under our indebtedness; the potential effects of
changing macroeconomic conditions, including the effects of
inflation, interest rate and foreign currency exchange rate
fluctuations, and geopolitical conflict; the possibility that the
anticipated benefits from our business acquisitions will not be
realized in full or at all or may take longer to realize than
expected; the possibility that costs or difficulties related to the
integration of acquired businesses’ operations or the divestiture
of business operations will be greater than expected and the
possibility that integration or divestiture efforts will disrupt
our business and strain management time and resources; the outcome
of any litigation, government investigations, enforcement actions
or other legal proceedings; and our ability to retain and hire key
personnel. The risks included above are not exhaustive. Other
important risks and uncertainties are described in the Risk Factors
sections of our most recent Annual Report on Form 10-K and any
subsequent Quarterly Reports on Form 10-Q, and in our other reports
filed with the Securities and Exchange Commission. We undertake no
obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Condensed Consolidated
Statements of Operations
(Amounts in thousands, except
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
699,264
$
622,093
$
1,336,788
$
1,224,543
Operating expenses
Cost of sales (exclusive of amortization
of acquired intangible assets)
189,848
156,991
359,949
313,857
Research and development
120,884
104,095
231,492
199,514
Sales and marketing
185,270
176,490
377,635
363,454
General and administrative
201,856
237,965
444,973
455,260
Amortization of acquired intangible
assets
23,311
22,929
46,622
45,857
Impairment of long-lived assets
8,152
552
12,598
621
Total operating expenses
729,321
699,022
1,473,269
1,378,563
Other operating income
3,800
—
3,532
—
Loss from operations
(26,257
)
(76,929
)
(132,949
)
(154,020
)
Other income (expense)
Investment income, net
11,801
4,828
18,014
5,318
Interest income (expense), net
111
(7,818
)
(7,832
)
(3,711
)
Total other income (expense)
11,912
(2,990
)
10,182
1,607
Net loss before tax
(14,345
)
(79,919
)
(122,767
)
(152,413
)
Income tax expense
(1,463
)
(1,107
)
(3,269
)
(2,764
)
Net loss
$
(15,808
)
$
(81,026
)
$
(126,036
)
$
(155,177
)
Net loss per share—basic and diluted
$
(0.09
)
$
(0.45
)
$
(0.69
)
$
(0.87
)
Weighted average common shares
outstanding—basic and diluted
184,313
180,204
183,332
179,393
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Condensed Consolidated Balance
Sheets
(Amounts in thousands)
June 30, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
530,180
$
605,378
Marketable securities
416,602
172,266
Accounts receivable, net
263,865
203,623
Inventory
127,373
127,475
Prepaid expenses and other current
assets
114,467
85,627
Property, plant and equipment, net
703,083
698,354
Operating lease right-of-use assets
139,807
143,708
Goodwill
2,366,972
2,367,120
Intangible assets, net
1,843,478
1,890,396
Other long-term assets, net
167,468
177,387
Total assets
$
6,673,295
$
6,471,334
Liabilities and stockholders’
equity
Convertible notes, net, current
portion
$
248,923
$
—
Current liabilities
419,719
514,701
Convertible notes, net, less current
portion
2,317,948
2,314,276
Other long-term liabilities
326,678
335,982
Operating lease liabilities, less current
portion
167,665
161,070
Total stockholders’ equity
3,192,362
3,145,305
Total liabilities and stockholders’
equity
$
6,673,295
$
6,471,334
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Reconciliation of Core
Revenue
(Amounts in thousands)
GAAP
Three Months Ended June
30,
2024
2023
% Change
Screening
$
531,606
$
462,787
15
%
Precision Oncology
167,658
157,174
7
%
COVID-19 Testing
—
2,132
(100
)%
Total
$
699,264
$
622,093
12
%
Non-GAAP
Three Months Ended June
30,
2024(1)
2023(1)
% Change
Foreign Currency
Impact(2)
Core Revenue(3)
% Change(3)
Screening
$
531,606
$
462,787
15
%
$
—
$
531,606
15
%
Precision Oncology
164,260
154,884
6
%
(210
)
164,050
6
%
Total
$
695,866
$
617,671
13
%
$
(210
)
$
695,656
13
%
GAAP
Six Months Ended June
30,
2024
2023
% Change
Screening
$
1,006,404
$
905,982
11
%
Precision Oncology
330,384
312,606
6
%
COVID-19 Testing
—
5,955
(100
)%
Total
$
1,336,788
$
1,224,543
9
%
Non-GAAP
Six Months Ended June
30,
2024 (1)
2023 (1)
% Change
Foreign Currency Impact
(2)
Core Revenue (3)
% Change (3)
Screening
$
1,006,404
$
905,982
11
%
$
—
$
1,006,404
11
%
Precision Oncology
323,700
308,275
5
%
(318
)
323,382
5
%
Total
$
1,330,104
$
1,214,257
10
%
$
(318
)
$
1,329,786
10
%
____________________________
(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-U.S. dollar denominated revenue using the prior year
comparative period exchange rates.
(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.
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Non-GAAP Gross Profit and
Non-GAAP Gross Margin Reconciliations
(Amounts in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
699,264
$
622,093
$
1,336,788
$
1,224,543
Cost of sales (exclusive of amortization
of acquired intangible assets)
189,848
156,991
359,949
313,857
Amortization of acquired intangible assets
(1)
21,100
20,718
42,200
41,435
Gross profit
$
488,316
$
444,384
$
934,639
$
869,251
Gross margin
70
%
71
%
70
%
71
%
Amortization of acquired intangible assets
(1)
21,100
20,718
42,200
41,435
Non-GAAP gross profit
$
509,416
$
465,102
$
976,839
$
910,686
Non-GAAP gross margin
73
%
75
%
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.
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Adjusted EBITDA
Reconciliations
(Amounts in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net loss
$
(15,808
)
$
(81,026
)
$
(126,036
)
$
(155,177
)
Interest expense (income) (1)
(111
)
7,818
7,832
3,711
Income tax expense
1,463
1,107
3,269
2,764
Investment income
(11,801
)
(4,828
)
(18,014
)
(5,318
)
Depreciation and amortization
52,998
50,439
106,941
100,182
Stock-based compensation (2)
66,386
70,766
139,924
132,663
Acquisition and integration costs (3)
(13,239
)
4,773
(2,474
)
(3,751
)
Impairment of long-lived assets (4)
8,152
552
12,598
621
Gain on sale of asset and divestiture
related costs (5)
(3,800
)
—
(3,532
)
—
Restructuring (6)
—
—
2,936
907
License agreement termination (7)
25,843
—
25,843
—
Legal settlement (8)
—
17,250
—
36,186
Adjusted EBITDA
$
110,083
$
66,851
$
149,287
$
112,788
Adjusted EBITDA margin
16
%
11
%
11
%
9
%
____________________________
Refer below the Reconciliations of U.S. GAAP to Non-GAAP
Measures section for endnote descriptions.
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Reconciliation of U.S. GAAP to
Non-GAAP Measures
(Amounts in thousands)
Three Months Ended June 30,
2024
Cost of Sales(9)
Research & Development
Expenses
Sales & Marketing
Expenses
General & Administrative
Expenses
Amortization of acquired
intangible assets
Impairment of Long-Lived
Assets
Other Operating Income
Income (Loss) from
Operations
Reported
$
189,848
$
120,884
$
185,270
$
201,856
$
23,311
$
8,152
$
3,800
$
(26,257
)
Amortization of acquired intangible
assets
—
—
—
—
(23,311
)
—
—
23,311
Acquisition and integration costs(3)
—
—
—
13,239
—
—
—
(13,239
)
Impairment of long-lived assets(4)
—
—
—
—
—
(8,152
)
—
8,152
Loss on sale of asset and divestiture
related costs(5)
—
—
—
—
—
—
(3,800
)
(3,800
)
License agreement termination(7)
—
(25,933
)
—
—
—
—
—
25,933
Adjusted
$
189,848
$
94,951
$
185,270
$
215,095
$
—
$
—
$
—
$
14,100
Six Months Ended June 30,
2024
Cost of Sales(9)
Research & Development
Expenses
Sales & Marketing
Expenses
General & Administrative
Expenses
Amortization of acquired
intangible assets
Impairment of Long-Lived
Assets
Other Operating Income
Income (Loss) from
Operations
Reported
$
359,949
$
231,492
$
377,635
$
444,973
$
46,622
$
12,598
$
3,532
$
(132,949
)
Amortization of acquired intangible
assets
—
—
—
—
(46,622
)
—
—
46,622
Acquisition and integration costs(3)
—
—
—
2,474
—
—
—
(2,474
)
Impairment of long-lived assets(4)
—
—
—
—
—
(12,598
)
—
12,598
Loss on sale of asset and divestiture
related costs(5)
—
—
—
—
—
—
(3,532
)
(3,532
)
Restructuring(6)
(200
)
(2,393
)
(222
)
(121
)
—
—
—
2,936
License agreement termination(7)
—
(25,933
)
—
—
—
—
—
25,933
Adjusted
$
359,749
$
203,166
$
377,413
$
447,326
$
—
$
—
$
—
$
(50,866
)
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Reconciliation of U.S. GAAP to
Non-GAAP Measures
(Amounts in thousands)
Three Months Ended June 30,
2023
Cost of Sales(9)
Research & Development
Expenses
Sales & Marketing
Expenses
General & Administrative
Expenses
Amortization of acquired
intangible assets
Impairment of Long-Lived
Assets
Other Operating Income
Income (Loss) from
Operations
Reported
$
156,991
$
104,095
$
176,490
$
237,965
$
22,929
$
552
$
—
$
(76,929
)
Amortization of acquired intangible
assets
—
—
—
—
(22,929
)
—
—
22,929
Acquisition and integration costs(3)
—
—
—
(4,773
)
—
—
—
4,773
Impairment of long-lived assets(4)
—
—
—
—
—
(552
)
—
552
Legal settlement(8)
—
—
—
(17,250
)
—
—
—
17,250
Adjusted
$
156,991
$
104,095
$
176,490
$
215,942
$
—
$
—
$
—
$
(31,425
)
Six Months Ended June 30,
2023
Cost of Sales(9)
Research & Development
Expenses
Sales & Marketing
Expenses
General & Administrative
Expenses
Amortization of acquired
intangible assets
Impairment of Long-Lived
Assets
Other Operating Income
Income (Loss) from
Operations
Reported
$
313,857
$
199,514
$
363,454
$
455,260
$
45,857
$
621
$
—
$
(154,020
)
Amortization of acquired intangible
assets
—
—
—
—
(45,857
)
—
—
45,857
Acquisition and integration costs(3)
—
—
—
3,751
—
—
—
(3,751
)
Impairment of long-lived assets(4)
—
—
—
—
—
(621
)
—
621
Restructuring(6)
—
(723
)
—
(184
)
—
—
—
907
Legal settlement(8)
—
—
—
(36,186
)
—
—
—
36,186
Adjusted
$
313,857
$
198,791
$
363,454
$
422,641
$
—
$
—
$
—
$
(74,200
)
____________________________
(1) Interest expense (income) includes net gains recorded of
$10.3 million and $10.3 million for the three and six months ended
June 30, 2024 and six months ended June 30, 2023, respectively,
from the settlement of convertible notes. The gains represent the
difference between (i) the fair value of the consideration
transferred and (ii) the sum of the carrying value of the debt at
the time of the exchange.
(2) Represents stock-based compensation expense and 401(k) match
expense. The Company matches a portion of Exact Sciences employees’
contributions annually in the form of the Company’s common
stock.
(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 six months ended June 30, 2024 and 2023.
Integration related costs represent expenses incurred outside
regular business operations, specifically relating to the
integration of businesses acquired through a business combination.
This includes any gain or loss on contingent consideration
liabilities, severance and accelerated vesting of stock awards, and
professional services. The remeasurement of the contingent
consideration liabilities resulted in a gain of $13.2 million and
$7.6 million for the three and six months ended June 30, 2024,
respectively. The remeasurement of the contingent consideration
liabilities resulted in a loss of $4.2 million and a gain of $4.7
million for the three and six months ended June 30, 2023,
respectively. The Company also incurred severance costs and
professional service fees which were not significant for the three
and six months ended June 30, 2024 and 2023. The majority of the
professional service fees relate to the integration of information
technology systems.
(4) Represents impairment charges on the Company’s long-lived
assets. For the three and six months ended June 30, 2024, the
Company recorded impairment charges related to certain of our
domestic facilities. For the three and six months ended June 30,
2023, the Company recorded an insignificant impairment to building
leases that were vacated during the year.
(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 August 2022
and the subsequent Second Amendment to the Asset Purchase Agreement
related to the sale in August 2023. For the three and six months
ended June 30, 2024, this represents a contingent consideration
gain.
(6) Includes costs associated with the consolidation of
operations related to the closure of one of the Company’s domestic
laboratory facilities, which was announced in October 2023, and a
separate reduction in the Company's workforce due to a
simplification of the Company's organizational structure in its
international operations. For the six months ended June 30, 2024,
this primarily includes accelerated stock-based compensation
expense and severance costs related to the laboratory closure. For
the six months ended June 30, 2023, this primarily includes
accelerated stock-based compensation expense and severance costs
related to the Company's international workforce.
(7) The Company terminated its license and sponsored research
agreements with The Translational Genomics Research Institute
related to its Targeted Digital Sequencing technology, which
resulted in the recognition of termination related charges in the
second quarter of 2024.
(8) The Company reached settlements with the counterparties
related to the Medicare Date of Service Rule Investigation (“DOS
Rule Matter”) and the Federal Anti-Kickback Statute and False
Claims Act qui tam lawsuit during the third quarter of 2023. The
Company previously accrued $10 million in the third quarter of 2021
related to the DOS Rule Matter, and made incremental accruals in
the first and second quarters of 2023 based on the Company’s best
estimate of the probable loss on this matter.
(9) Represents Cost of sales (exclusive of amortization of
acquired intangible assets) from the Company's condensed
consolidated statement of operations.
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Condensed Consolidated
Statements of Cash Flows and Reconciliation of Free Cash
Flow
(Amounts in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net cash provided by operating
activities
$
107,065
$
100,424
$
24,754
$
62,209
Net cash provided by (used in) investing
activities
(147,129
)
66,474
(318,567
)
149,415
Net cash provided by financing
activities
224,603
16,041
221,601
149,637
Effects of exchange rate changes on cash
and cash equivalents
(306
)
59
(1,446
)
609
Net increase (decrease) in cash, cash
equivalents and restricted cash
184,233
182,998
(73,658
)
361,870
Cash, cash equivalents and restricted
cash, beginning of period
351,784
421,662
609,675
242,790
Cash, cash equivalents and restricted
cash, end of period
$
536,017
$
604,660
$
536,017
$
604,660
Reconciliation of free cash flow:
Net cash provided by operating
activities
$
107,065
$
100,424
$
24,754
$
62,209
Purchases of property, plant and
equipment
(35,866
)
(34,721
)
(73,515
)
(64,081
)
Free cash flow
$
71,199
$
65,703
$
(48,761
)
$
(1,872
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731233192/en/
Investor Contact: Erik Holznecht Exact Sciences Corp.
investorrelations@exactsciences.com 608-535-8659
Media Contact: Morry Smulevitz Exact Sciences Corp.
msmulevitz@exactsciences.com 608-345-8010
EXACT Sciences (NASDAQ:EXAS)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
EXACT Sciences (NASDAQ:EXAS)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024
