GlobeNewswire Inc | Nov 3, 2021 07:00AM EDT

November 03, 2021

Strong double digit revenue growth, solid margin performance despite global supply chain disruptions

-- Revenue up 23% year-over-year as sales momentum continues -- Pre-clinical product revenue up 28% -- Cellular and Molecular Technologies (CMT) product revenue up 19%

HOLLISTON, Mass., Nov. 03, 2021 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc. (Nasdaq: HBIO) (the Company) today announced financial results for the period ended September 30, 2021.

Jim Green, Chairman and CEO said, The positive trends we reported in the first half of 2021 have carried through with our strong top line performance in Q3. Demand for our pre-clinical products was very strong, with revenue up 28% over prior year, and also up significantly over pre-Covid levels. Our CMT products also experienced meaningful growth, up 19% over prior year as academic lab sales continue to recover. Operating income was adversely impacted by increased material, freight and labor costs associated with ongoing global supply disruptions.

Mr. Green concluded, We expect revenue growth of 15% to 17% for 2021 compared to 2020 based on sales momentum, up from prior expectations of 12% to 15%. Although supply disruptions are forcing extra costs in the short term, we still expect adjusted operating margin expansion to the mid-teens for the year.

Quarterly Financial Results Q3'21 Q3'20 Summary Revenues $ 29.7 million $ 24.0 million Operating Income (GAAP) $ 0.5 million $ 0.2 million Adjusted Operating Income $ 3.9 million $ 3.6 million Operating Margin (GAAP) 1.8 % 0.8 % Adjusted Operating Margin 13.3 % 14.8 % Loss Per Share (GAAP) $ (0.00 ) $ (0.03 ) Adjusted Diluted Earnings Per $ 0.06 $ 0.04 Share Net Debt* $ 40.9 million $ 41.6 million * Debt outstanding less cash and cash equivalents

For more details on Q3 performance, a slide presentation that will be referenced during the webcast will be posted to our Investor Relations website shortly before the webcast begins.

Please refer to the exhibits below for a reconciliation of certain non-GAAP to GAAP financial measures, including operating income, net income and loss, diluted earnings per share and adjusted EBITDA. Please see Use of Non-GAAP Financial Information for additional information regarding our use of such adjusted financial information.

Webcast and Conference Call Details

Harvard Bioscience will be hosting a conference call and webcast today at 8:00 a.m. Eastern Time. You can access the live conference call by dialing the following phone numbers: toll-free 1 (877) 303-7611 or international 1 (970) 315-0445 and referencing the conference ID# 8391005.

The conference call will be simultaneously webcast and can be accessed through the Harvard Bioscience website. To listen to the webcast, log on to the webcast at: http://investor.harvardbioscience.com/ and click on the Earnings Call icon.

Use of Non-GAAP Financial Information

In this press release, we have included non-GAAP financial information including adjusted operating income, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA. We believe that this non-GAAP financial information provides investors with an enhanced understanding of the underlying operations of the business. For the periods presented, these non-GAAP financial measures have excluded certain expenses and income primarily resulting from purchase accounting or events that we do not believe are related to the underlying operations of the business such as amortization of intangibles related to acquisitions, costs related to acquisition, disposition and integration initiatives, impairment charges, severance, restructuring and other business transformation expenses, and stock-based compensation expense. They also exclude the tax impact of the reconciling items. This non-GAAP financial information approximates information used by our management to internally evaluate the operating results of the Company. Tabular reconciliations of our adjusted operating income, adjusted net income (loss), adjusted earnings (loss) per diluted share, and adjusted EBITDA are included as exhibits below in this press release.

The non-GAAP financial information provided in this press release should be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP and may be different than other companies non-GAAP financial information.

About Harvard Bioscience

Harvard Bioscience is a leading developer, manufacturer and seller of technologies, products and services that enable fundamental research, discovery, and pre-clinical testing for drug development. Our customers range from renowned academic institutions and government laboratories, to the worlds leading pharmaceutical, biotechnology and contract research organizations. With operations in North America, Europe, and China, we sell through a combination of direct and distribution channels to customers around the world.

For more information, please visit our website atwww.harvardbioscience.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," "guidance," "objectives," "optimistic," "potential," "future," "expects," "plans," "estimates," "continue," "drive," "strategy," "potential," "potentially," "growth," "long-term," "projects," "projected," "intends," "believes," "goals," "sees," "seek," "develop" "possible" "new," "emerging," "opportunity," "pursue" and similar expressions that do not relate to historical matters. Forward-looking statements in this press release or that may be made during our conference call may include, but are not limited to, statements or inferences about the Company's or management's beliefs or expectations, the Company's anticipated future revenues and earnings, the strength of the Company's market position and business model, industry outlook, the impact of the COVID-19 pandemic on the Companys business, the Company's business strategy, the positioning of the Company for growth, the market demand and opportunity for the Company's current products, or products it is developing or intends to develop, and the Company's plans, objectives and intentions that are not historical facts. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Investors should note that many factors, as more fully described under the caption Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2020, and in our other filings with the Securities and Exchange Commission and as otherwise enumerated herein or therein may cause the Company's actual results to differ materially from those in the forward-looking statements. The forward-looking statements in this press release are qualified by these risk factors. The Company's results may also be affected by factors of which the Company is not currently aware. The Company may not update these forward-looking statements, even though its situation may change in the future, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

For investor inquiries, please contact Michael A. Rossi, Chief Financial Officer at (508) 893-8999.

Exhibit 1 HARVARD BIOSCIENCE, INC.Consolidated Statements of Operations(unaudited, in thousands, except per share data) Three Months Ended Nine Months Ended September September September September 30, 2021 30, 2020 30, 2021 30, 2020 Revenues $ 29,663 $ 24,037 $ 85,849 $ 71,116 Cost of revenues 13,355 10,542 37,757 30,783 Gross profit 16,308 13,495 48,092 40,333 Operating expenses: Sales and marketing 6,183 4,588 17,299 14,446 expenses General and administrative 5,458 5,399 18,190 17,828 expenses Research and development 2,660 1,949 7,848 6,336 expenses Amortization of intangible 1,459 1,377 4,388 4,258 assets Total operating 15,760 13,313 47,725 42,868 expenses Operating income 548 182 367 (2,535 ) Other (expense) income: Interest (373 ) (1,205 ) (1,161 ) (3,737 ) expense Other (130 ) (392 ) (477 ) (472 ) expense, net Total other (503 ) (1,597 ) (1,638 ) (4,209 ) expense Income (loss) before income 45 (1,415 ) (1,271 ) (6,744 ) taxes Income tax expense 215 (317 ) (22 ) 451 (benefit) Net loss $ (170 ) $ (1,098 ) $ (1,249 ) $ (7,195 ) Loss per common share: Basic and $ (0.00 ) $ (0.03 ) $ (0.03 ) $ (0.19 ) diluted Weighted-average common shares: Basic and 40,754 38,920 40,202 38,540 diluted

Exhibit 2 HARVARD BIOSCIENCE, INC.Condensed Consolidated Balance Sheets(unaudited, in thousands) September 30, December 31, 2021 2020 Assets Cash and cash equivalents $ 5,548 $ 8,317 Accounts receivables 18,340 17,766 Inventories 25,978 22,262 Other current assets 5,820 3,355 Total current assets 55,686 51,700 Property, plant and equipment 3,453 3,960 Goodwill and other intangibles 86,928 91,741 Other long-term assets 7,805 8,853 Total assets $ 153,872 $ 156,254 Liabilities and Stockholders' Equity Current portion, long-term debt $ 2,470 $ 1,721 Other current liabilities 21,036 19,332 Total current liabilities 23,506 21,053 Long-term debt 42,740 46,286 Other long-term liabilities 10,739 12,234 Stockholders? equity 76,887 76,681 Total liabilities and stockholders? $ 153,872 $ 156,254 equity

Exhibit 3 HARVARD BIOSCIENCE, INC.Condensed Consolidated Statements of Cash Flows(unaudited, in thousands) Nine Months Ended September 30, September 30, 2021 2020 Cash flows from operating activities: Net loss $ (1,249 ) $ (7,195 ) Adjustments to operating cash flows 8,547 8,676 Changes in operating assets and (6,153 ) 5,360 liabilities Net cash provided by operating activities 1,145 6,841 Cash flows from investing activities: Additions to property, plant and (837 ) (1,088 ) equipment Addition to intangible assets (150 ) - Net cash used in investing activities (987 ) (1,088 ) Cash flows from financing activities: Proceeds from borrowings 2,500 9,615 Repayments of debt (5,500 ) (20,251 ) Payments of debt issuance costs (102 ) - Proceeds from exercise of stock options 2,909 194 Taxes related to net share settlemenrt of (2,653 ) (882 ) equity awards Net cash used in financing activities (2,846 ) (11,324 ) Effect of exchange rate changes on cash (81 ) 42 Decrease in cash and cash equivalents (2,769 ) (5,529 ) Cash and cash equivalents at the 8,317 8,335 beginning of period Cash and cash equivalents at the end of $ 5,548 $ 2,806 period

Exhibit 4 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months Ended September 30, 2021 (in thousands, except per share data) Stock-Based Acquired Restructuring, Income AssetsStatement of GAAP Compensation Amortization Transformation Taxes ADJUSTED Operations Revenues $ 29,663 - - - - $ 29,663 Cost of 13,355 (32 ) (15 ) (94 ) - 13,214 revenuesGross profit 16,308 32 15 94 - 16,449 Gross 55.0 % 55.5 % Margin Operating expenses:Sales andmarketing 6,183 (149 ) (2 ) (261 ) - 5,771 expensesGeneral andadministrative 5,458 (790 ) (16 ) (426 ) - 4,226 expensesResearch anddevelopment 2,660 (33 ) (10 ) (113 ) - 2,504 expensesAmortizationof intangible 1,459 - (1,459 ) - - - assetsTotaloperating 15,760 (972 ) (1,487 ) (800 ) - 12,501 expenses OperatingExpenses - % 53.1 % 42.1 % of Revenue Operating 548 1,004 1,502 894 - 3,948 income Operating 1.8 % 13.3 % Margin Other(expense) income:Interest (373 ) - - - - (373 ) expenseOther expense, (130 ) - - - - (130 ) netTotal other (503 ) - - - - (503 ) expense Income before 45 1,004 1,502 894 - 3,445 income taxesIncome tax 215 - - - 580 795 expenseNet (loss) $ (170 ) $ 1,004 $ 1,502 $ 894 $ (580 ) $ 2,650 income (Loss) income $ (0.00 ) $ 0.06 per share Dilutedweightedaverage 40,754 43,500 commonshares

Exhibit 4.1 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months Ended September 30, 2020 (in thousands, except per share data) Stock-Based Acquired Restructuring, Income AssetsStatement of GAAP Compensation Amortization Transformation Taxes ADJUSTED Operations Revenues $ 24,037 - - - - $ 24,037 Cost of 10,542 (18 ) (19 ) (19 ) - 10,486 revenuesGross profit 13,495 18 19 19 - 13,551 Gross 56.1 % 56.4 % Margin Operating expenses:Sales andmarketing 4,588 (91 ) (2 ) (15 ) - 4,480 expensesGeneral andadministrative 5,399 (908 ) (18 ) (834 ) - 3,639 expensesResearch anddevelopment 1,949 (62 ) (13 ) (9 ) - 1,865 expensesAmortizationof intangible 1,377 - (1,377 ) - - - assetsTotaloperating 13,313 (1,061 ) (1,410 ) (858 ) - 9,984 expenses OperatingExpenses - % 55.4 % 41.5 % of Revenue Operating 182 1,079 1,429 877 - 3,567 income Operating 0.8 % 14.8 % Margin Other(expense) income:Interest (1,205 ) - - - - (1,205 ) expenseOther expense, (392 ) - - - - (392 ) netTotal other (1,597 ) - - - - (1,597 ) expense (Loss) incomebefore income (1,415 ) 1,079 1,429 877 - 1,970 taxesIncome tax(benefit) (317 ) - - - 823 506 expenseNet (loss) $ (1,098 ) $ 1,079 $ 1,429 $ 877 $ (823 ) $ 1,464 income (Loss) income $ (0.03 ) $ 0.04 per share Dilutedweightedaverage 38,920 40,307 commonshares

Exhibit 4.2 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Nine Months Ended September 30, 2021 (in thousands, except per share data) Stock-Based Acquired Restructuring, Income AssetsStatement of GAAP Compensation Amortization Transformation Taxes ADJUSTED Operations Revenues $ 85,849 - - - - $ 85,849 Cost of 37,757 (83 ) (51 ) (247 ) - 37,376 revenuesGross profit 48,092 83 51 247 - 48,473 Gross Margin 56.0 % 56.5 % Operating expenses:Sales andmarketing 17,299 (373 ) (6 ) (375 ) - 16,545 expensesGeneral andadministrative 18,190 (2,593 ) (49 ) (2,380 ) - 13,168 expensesResearch anddevelopment 7,848 (87 ) (32 ) (408 ) - 7,321 expensesAmortizationof intangible 4,388 - (4,388 ) - - - assetsTotaloperating 47,725 (3,053 ) (4,475 ) (3,163 ) - 37,034 expenses OperatingExpenses - % 55.6 % 43.1 % of Revenue Operating 367 3,136 4,526 3,410 - 11,439 (loss) income Operating 0.4 % 13.3 % Margin Other(expense) income:Interest (1,161 ) - - - - (1,161 ) expenseOther expense, (477 ) - - - - (477 ) netTotal other (1,638 ) - - - - (1,638 ) expense (Loss) incomebefore income (1,271 ) 3,136 4,526 3,410 - 9,801 taxesIncome tax(benefit) (22 ) - - - 2,365 2,343 expenseNet (loss) $ (1,249 ) $ 3,136 $ 4,526 $ 3,410 $ (2,365 ) $ 7,458 income (Loss) income $ (0.03 ) $ 0.17 per share Dilutedweighted 40,202 43,113 average commonshares

Exhibit 4.3 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Nine Months Ended September 30, 2020 (in thousands, except per share data) Stock-Based Acquired Restructuring, Income AssetsStatement of GAAP Compensation Amortization Transformation Taxes ADJUSTED Operations Revenues $ 71,116 - - - - $ 71,116 Cost of 30,783 (43 ) (59 ) (21 ) - 30,660 revenuesGross profit 40,333 43 59 21 - 40,456 Gross Margin 56.7 % 56.9 % Operating expenses:Sales andmarketing 14,446 (205 ) (6 ) (125 ) - 14,110 expensesGeneral andadministrative 17,828 (2,248 ) (52 ) (3,480 ) - 12,048 expensesResearch anddevelopment 6,336 (145 ) (44 ) (7 ) - 6,140 expensesAmortizationof intangible 4,258 - (4,258 ) - - - assetsTotaloperating 42,868 (2,598 ) (4,360 ) (3,612 ) - 32,298 expenses OperatingExpenses - % 60.3 % 45.4 % of Revenue Operating (2,535 ) 2,641 4,419 3,633 - 8,158 (loss) income Operating -3.6 % 11.5 % Margin Other(expense) income:Interest (3,737 ) - - - - (3,737 ) expenseOther expense, (472 ) - - - - (472 ) netTotal other (4,209 ) - - - - (4,209 ) expense (Loss) incomebefore income (6,744 ) 2,641 4,419 3,633 - 3,949 taxesIncome tax 451 - - - 435 886 expenseNet (loss) $ (7,195 ) $ 2,641 $ 4,419 $ 3,633 $ (435 ) $ 3,063 income (Loss) income $ (0.19 ) $ 0.08 per share Dilutedweighted 38,540 39,824 average commonshares

Exhibit 5 HARVARD BIOSCIENCE, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) (in thousands) Three Months Ended Nine Months Ended September September September September 30, 2021 30, 2020 30, 2021 30, 2020 Operating income $ 548 $ 182 $ 367 $ (2,535 ) Amortization of intangible 1,459 1,377 4,388 4,258 assets Depreciation 420 471 1,311 1,453 expense Stock-based compensation 1,004 1,079 3,136 2,641 expense Restructuring and 893 877 3,408 3,635 transformation costs Adjusted EBITDA $ 4,324 $ 3,986 $ 12,610 $ 9,452