Baxter Reports First-Quarter 2022 Results

  • First-quarter revenue of $3.7 billion increased 26% on a reported basis, 29% on a constant currency basis and 3% on an operational basis1
  • First-quarter U.S. GAAP earnings per share (EPS) totaled $0.14; Adjusted EPS totaled $0.93
  • Baxter expects full-year 2022 sales growth of 23% to 24% on a reported basis, 25% to 26% on a constant currency basis and approximately 3% on an operational basis
  • Baxter expects full-year U.S. GAAP EPS of $2.35 to $2.43 and adjusted EPS of $4.12 to $4.20
  • The company is hosting an Investor Conference on May 25, 2022, to provide additional details regarding its strategic outlook and updated long-term financial guidance

DEERFIELD, Ill.--(BUSINESS WIRE)-- Baxter International Inc. (NYSE:BAX), a global medtech leader, today reported results for the first quarter of 2022.

“Our positive momentum in the first quarter of 2022 was fueled by the diversity and durability of our medically essential product portfolio – dynamics that have further strengthened with our recent acquisition of Hillrom,” said José (Joe) E. Almeida, chairman, president and chief executive officer. “As we continue to navigate the impact of COVID-19, geopolitical unrest, inflationary pressures and supply chain challenges, we remain focused on advancing our lifesaving Mission and enhancing shareholder value through innovation, increased global portfolio access and our steadfast focus on operational effectiveness. We look forward to sharing more information at our upcoming 2022 Investor Conference on how our strategy, long-range plan and trajectory will benefit our many stakeholder communities.”

First-Quarter Financial Results

Worldwide sales in the first quarter totaled approximately $3.7 billion, an increase of 26% on a reported basis, 29% on a constant currency basis and 3% on an operational basis. Operational sales in the quarter exclude the impacts of foreign exchange and the December 2021 acquisition of Hillrom.

Sales in the U.S. totaled $1.76 billion, increasing 49% on a reported basis and 3% operationally. International sales of $1.95 billion increased 10% on a reported basis, 16% at constant currency and 3% operationally.

Among Baxter’s businesses, Medication Delivery achieved double-digit growth at constant currency rates, driven by improving rates of hospital admissions and increased sales of large and small volume parenteral solutions as well as infusion systems. BioPharma Solutions also achieved double-digit constant-currency growth, reflecting the year-over-year impact of multiple collaborations to help manufacture COVID-19 vaccines on a contract basis. Advanced Surgery delivered high single-digit growth at constant currency rates, driven by an improvement in the rate of surgical procedures compared to the same period last year. Additionally, Renal Care and Clinical Nutrition grew at low single digits year-over-year at constant rates. Growth was partially offset by a decline in Pharmaceuticals, due to generic competition for certain molecules and supply constraints impacting product availability. Acute Therapies declined high single digits at constant currency rates, following last year’s surging demand for continuous renal replacement therapy (CRRT) products in the comparable period to help treat COVID-19.

Baxter’s newly acquired Hillrom businesses – Patient Support Systems, Front Line Care and Surgical Solutions – contributed approximately $755 million to first-quarter performance on a reported basis.

Please see the attached schedules accompanying this press release for additional details on sales performance in the quarter, including breakouts by Baxter’s product categories and segments.

For the first quarter, net income attributable to Baxter was $71 million, or $0.14 per diluted share, a decline of 76% on a U.S. GAAP (Generally Accepted Accounting Principles) basis. These results include special items totaling $400 million after tax, which were primarily related to intangible asset amortization and expenses related to the Hillrom acquisition. On an adjusted basis, net income attributable to Baxter totaled $471 million, or $0.93 per diluted share, a 22% increase for the quarter.

Business Highlights2

Baxter continues to advance its strategic priorities in pursuit of its Mission to Save and Sustain Lives. Among recent highlights, the company:

  • Announced a long-term strategic partnership with Digital Diagnostics to offer its IDx-DR® autonomous AI software as a diagnostic service combined with the Welch Allyn RetinaVue 700 Imager. The partnership is intended to improve access to effective diagnostic services for the detection of diabetic retinopathy, which frequently goes undiagnosed and untreated, potentially leading to higher risk of subsequent visual loss and blindness.
  • Received U.S. FDA clearance of its ST Set used in continuous renal replacement therapy (CRRT). The ST Set is a pre-connected, disposable, extracorporeal (outside the body) circuit that provides blood purification through a semipermeable membrane to be used with the PrisMax or Prismaflex control units (monitors). It has been available to customers in the U.S. since August 2020, when it received Emergency Use Authorization (EUA) from the FDA to provide CRRT to treat patients in an acute care environment during the COVID-19 pandemic.
  • Announced data indicating that the use of its Sharesource remote patient management platform with an automated peritoneal dialysis (APD) cycler may improve the clinical effectiveness of home kidney patients' care by extending their time on therapy by 3.4 months.
  • Announced findings from an observational study on data from the Starling Registry that found that monitoring changes in stroke volume and cardiac input may help predict mortality in critically ill patients. The study assessed 127 critical care patients in the intensive care unit that received hemodynamic monitoring using Baxter’s Starling Fluid Management Monitoring System.
  • Announced initial investments in nine startups participating in the mHUB Accelerator, the largest and fastest-growing physical product innovation center in the U.S. Each of the nine startups is developing technologies that align with Baxter’s early-stage innovation priorities.

Among corporate responsibility highlights, Baxter was recently recognized by Forbes on its list of America’s Best Large Employers 2022, based on employee ratings of factors such as working conditions, development opportunities and compensation. Baxter was also recently named to Forbes’ America’s Best Employers for Diversity 2022, which identifies companies most dedicated to diversity, equity and inclusion.

Novum IQ Infusion Platform Update

On March 21, 2022, and as shared in its Form 8-K, Baxter submitted responses to FDA’s additional information requests for the company’s new Novum IQ Large Volume Pump (LVP) and related Dose IQ Safety Software. On April 22, 2022, Baxter received an additional information request from FDA that identified an issue, the adequate resolution of which is required to obtain FDA clearance of the Novum IQ LVP. As a result, the 510(k) review has been placed on hold so that Baxter can respond accordingly. Baxter currently expects to respond to FDA’s additional information request within the calendar year. The company continues to expect submission of responses to FDA on the filing of the Novum IQ Syringe Pump in the second quarter of 2022.

“We are committed to responding to the FDA’s requests, and to bringing the benefits of the Novum IQ infusion platform to patients and caregivers in the U.S. and beyond,” said Almeida.

2022 Financial Outlook

For full-year 2022: Baxter now expects U.S. GAAP earnings of $2.35 to $2.43 per diluted share and adjusted earnings, before special items, of $4.12 to $4.20 per diluted share. The company expects sales growth of 23% to 24% on a reported basis, 25% to 26% on a constant currency basis and approximately 3% on an operational basis. Baxter’s updated full-year financial outlook reflects the impact from higher oil prices, ongoing supply chain challenges causing increased inflationary pressures as well as the removal of any contribution from the Novum IQ infusion system.

For second-quarter 2022: The company expects sales growth of approximately 26% on a reported basis, 29% to 30% on a constant currency basis and approximately 4% on an operational basis. The company expects U.S. GAAP earnings of $0.48 to $0.51 per diluted share and adjusted earnings, before special items, of $0.86 to $0.89 per diluted share.

2022 Investor Conference

On May 25, 2022, Baxter will host an Investor Conference in Glenview, Ill., with an accompanying live webcast. Chairman and CEO Joe Almeida and other members of Baxter’s senior leadership team will provide a closer look at the company’s growth strategy, innovation pipeline and long-range plan. More information including a link to register for the conference is available in the Investor Relations section of Baxter.com.

First-Quarter 2022 Earnings Conference Call

A webcast of Baxter’s first-quarter 2022 conference call for investors can be accessed live from a link on the company’s website at www.baxter.com beginning at 7:30 a.m. CDT on April 28, 2022. Please see www.baxter.com for more information regarding this and future investor events and webcasts.

About Baxter

Every day, millions of patients, caregivers and healthcare providers rely on Baxter’s leading portfolio of diagnostic, critical care, kidney care, nutrition, hospital and surgical products used across patient homes, hospitals, physician offices and other sites of care. For 90 years, we’ve been operating at the critical intersection where innovations that save and sustain lives meet the healthcare providers who make it happen. With products, digital health solutions and therapies available in more than 100 countries, Baxter’s employees worldwide are now building upon the company’s rich heritage of medical breakthroughs to advance the next generation of transformative healthcare innovations. To learn more, visit www.baxter.com and follow us on Twitter, LinkedIn and Facebook.

Non-GAAP Financial Measures

This press release and the accompanying tables contain financial measures that are not calculated in accordance with U.S. GAAP. The non-GAAP financial measures include adjusted gross margin, adjusted selling, general and administrative expense, adjusted research and development expense, adjusted other operating income, net, adjusted operating income, adjusted operating margin, adjusted interest expense, net, adjusted income before income taxes, adjusted income tax expense, adjusted net income, adjusted net income attributable to Baxter stockholders, and adjusted diluted earnings per share, all of which exclude special items, sales growth on a constant currency and operational basis, and free cash flow. Special items are excluded because they are highly variable or unusual, and of a size that may substantially affect the company’s reported operations for a period. Certain of those items represent estimates based on information reasonably available at the time of the press release. Future events or new information may result in different actual results.

Net sales growth rates are presented on a constant currency basis. These measures provide information on the percentage change in net sales growth assuming that foreign currency exchange rates have not changed between the prior and current periods. Net sales growth rates are also presented on an operational basis. For the quarter ended March 31, 2022, operational sales growth excludes the impact of foreign exchange and the December 2021 acquisition of Hillrom. This measure provides information on the change in net sales growth rates assuming that foreign exchange rates remained constant and excluding the impact of the company’s recent acquisition of Hillrom.

For the quarters ended March 31, 2022 and 2021, special items include intangible asset amortization, business optimization charges, acquisition and integration expenses, expenses related to European medical devices regulation, product-related items, and investigation and related costs. These items are excluded because they are highly variable or unusual and of a size that may substantially impact the company’s reported operations for a period. Additionally, intangible asset amortization is excluded as a special item to facilitate an evaluation of current and past operating performance and is consistent with how management and the company’s Board of Directors assess performance.

Non-GAAP financial measures may enhance an understanding of the company’s operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the reconciliations to corresponding U.S. GAAP financial measures, may enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. Accordingly, management uses these non-GAAP measures internally in financial planning, to monitor business unit performance, and, in some cases, for purposes of determining incentive compensation. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP.

Forward-Looking Statements

This release includes forward-looking statements concerning the company’s financial results (including the outlook for second-quarter and full-year 2022) and business development and regulatory activities (including the December 2021 acquisition of Hillrom). These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the impact of global economic conditions (including potential trade wars and economic sanctions) and public health crises and epidemics, such as the ongoing coronavirus (COVID-19) pandemic, on the company and its employees, customers and suppliers, including foreign governments in countries in which the company operates; demand for and market acceptance of risks for new and existing products; product development risks (including any delays in obtaining required regulatory approvals or failures to obtain such approvals); product quality or patient safety concerns; continuity, availability and pricing of acceptable raw materials and component supply; inability to create additional production capacity in a timely manner or the occurrence of other manufacturing or supply difficulties (including as a result of a natural disaster, public health crises and epidemics/pandemics, geopolitical crises, regulatory actions or otherwise); accurate identification of and execution on business development and R&D opportunities and realization of anticipated benefits (including the acquisitions of Cheetah Medical, Seprafilm Adhesion Barrier, specified OUS rights to Caelyx/Doxil, full U.S. and specific OUS rights to Transderm Scop, PerClot, Hillrom and certain rights to Zosyn in the U.S. and Canada); breaches or failures of the company’s information technology systems or products, including by cyberattack, unauthorized access or theft; the adequacy of the company’s cash flows from operations and other sources of liquidity to meet its ongoing cash obligations and fund its investment program; loss of key employees or inability to identify and recruit new employees; future actions of regulatory bodies and other governmental authorities, including FDA, the Department of Justice, the SEC, the New York Attorney General and foreign regulatory agencies, including the continued delay in lifting the warning letter at the company’s Ahmedabad facility; the outcome of pending or future litigation, including the opioid litigation and current and future ethylene oxide litigation or other claims; proposed regulatory changes of the U.S. Department of Health and Human Services in kidney health policy and reimbursement, which may substantially change the U.S. end-stage renal disease market and demand for the company’s peritoneal dialysis products, necessitating significant multiyear capital expenditures, which are difficult to estimate in advance; failures with respect to compliance programs; future actions of third parties, including payers; U.S. healthcare reform and other global austerity measures; pricing, reimbursement, taxation and rebate policies of government agencies and private payers; the impact of competitive products and pricing, including generic competition, drug reimportation and disruptive technologies; fluctuations in foreign exchange and interest rates; the ability to enforce owned or in-licensed patents or the prevention or restriction of the manufacture, sale or use of products or technology affected by patents of third parties; global, trade and tax policies; any change in laws concerning the taxation of income (including current or future tax reform), including income earned outside the United States and potential taxes associated with the Base Erosion and Anti-Abuse Tax or the Build Back Better framework; actions taken by tax authorities in connection with ongoing tax audits; and other risks identified in Baxter’s most recent filings on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter’s website. Baxter does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws.

Baxter, Caelyx, Cheetah Medical, Dose IQ, Doxil, Hillrom, Novum IQ, Prismaflex, PrisMax, PerClot, RetinaVue, Seprafilm, Sharesource, Starling, and Welch Allyn are registered trademarks of Baxter International Inc. or its subsidiaries. IDx-DR is a registered trademark of Digital Diagnostics. Transderm Scop is a registered trademark of Novartis AG. Zosyn is a registered trademark of Pfizer Inc. Any other trademarks or product brands appearing herein are the property of their respective owners.

___________________

1 See tables to the press release for reconciliations of non-GAAP measures used in this press release to the corresponding U.S. GAAP measures.

2 See links to original press releases for additional product information.

       

BAXTER INTERNATIONAL INC.

Consolidated Statements of Income

(unaudited)

(in millions, except per share and percentage data)

       
 

Three Months Ended
March 31,

   
   

2022

     

2021

   

Change

NET SALES

$

3,707

   

$

2,946

   

26%

COST OF SALES

 

2,359

     

1,801

   

31%

GROSS MARGIN

 

1,348

     

1,145

   

18%

% of Net Sales

 

36.4

%

   

38.9

%

 

(2.5 pts)

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

1,052

     

627

   

68%

% of Net Sales

 

28.4

%

   

21.3

%

 

7.1 pts

RESEARCH AND DEVELOPMENT EXPENSES

 

150

     

128

   

17%

% of Net Sales

 

4.0

%

   

4.3

%

 

(0.3 pts)

OTHER OPERATING INCOME, NET

 

(17

)

   

   

NM

OPERATING INCOME

 

163

     

390

   

(58) %

% of Net Sales

 

4.4

%

   

13.2

%

 

(8.8 pts)

INTEREST EXPENSE, NET

 

85

     

34

   

150%

OTHER (INCOME) EXPENSE, NET

 

(16

)

   

5

   

(420)%

INCOME BEFORE INCOME TAXES

 

94

     

351

   

(73)%

INCOME TAX EXPENSE

 

21

     

51

   

(59)%

% of Income Before Income Taxes

 

22.3

%

   

14.5

%

 

7.8 pts

NET INCOME

 

73

     

300

   

(76)%

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

2

     

2

   

0%

NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS

$

71

   

$

298

   

(76)%

           

EARNINGS PER SHARE

         

Basic

$

0.14

   

$

0.59

   

(76)%

Diluted

$

0.14

   

$

0.58

   

(76)%

           

WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING

         

Basic

 

503

     

505

     

Diluted

 

509

     

511

     
           

ADJUSTED OPERATING INCOME (excluding special items)¹

$

666

   

$

501

   

33%

ADJUSTED INCOME BEFORE INCOME TAXES (excluding special items)¹

$

597

   

$

462

   

29%

ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹

$

471

   

$

386

   

22%

ADJUSTED DILUTED EPS (excluding special items)¹

$

0.93

   

$

0.76

   

22%

1

Refer to page 9 for a description of the adjustments and a reconciliation to U.S. GAAP measures.

NM - Not Meaningful

   

BAXTER INTERNATIONAL INC.

Description of Adjustments and Reconciliation of U.S. GAAP to Non-GAAP Measures

(unaudited, in millions)

   

The company’s U.S. GAAP results for the three months ended March 31, 2022 included special items which impacted the U.S. GAAP measures as follows:

                       
 

Gross
Margin

Selling,
General and
Administrative
Expenses

Research and
Development
Expenses

Other
Operating
Income, Net

Operating
Income

Income
Before
Income
Taxes

Income
Tax
Expense

Net
Income

Net Income
Attributable
to Baxter
Stockholders

Diluted
Earnings
Per Share

Reported

$

1,348

 

$

1,052

 

$

150

 

$

(17

)

$

163

 

$

94

 

$

21

 

$

73

 

$

71

 

$

0.14

 

Reported percent of net sales (or percent of income before income taxes for income tax expense)

 

36.4

%

 

28.4

%

 

4.0

%

 

(0.5

)%

 

4.4

%

 

2.5

%

 

22.3

%

 

2.0

%

 

1.9

%

   

Intangible asset amortization1

 

122

   

(95

)

 

   

   

217

   

217

   

48

   

169

   

169

   

0.33

 

Business optimization items2

 

2

   

(78

)

 

(1

)

 

   

81

   

81

   

20

   

61

   

61

   

0.12

 

Acquisition and integration expenses3

 

164

   

(24

)

 

   

17

   

171

   

171

   

30

   

141

   

141

   

0.28

 

European medical devices regulation4

 

11

   

   

   

   

11

   

11

   

2

   

9

   

9

   

0.02

 

Product-related items5

 

23

   

   

   

   

23

   

23

   

3

   

20

   

20

   

0.04

 

Adjusted

$

1,670

 

$

855

 

$

149

 

$

 

$

666

 

$

597

 

$

124

 

$

473

 

$

471

 

$

0.93

 

Adjusted percent of net sales (or adjusted percent of income before income taxes for income tax expense)

 

45.0

%

 

23.1

%

 

4.0

%

 

0.0

%

 

18.0

%

 

16.1

%

 

20.8

%

 

12.8

%

 

12.7

%

   
                     

The company’s U.S. GAAP results for the three months ended March 31, 2021 included special items which impacted the U.S. GAAP measures as follows:

                     
 

Gross
Margin

Selling,
General and
Administrative
Expenses

Research and
Development
Expenses

Other
Operating
Income, Net

Operating
Income

Income
Before
Income
Taxes

Income
Tax
Expense

Net
Income

Net Income
Attributable
to Baxter
Stockholders

Diluted
Earnings
Per Share

Reported

$

1,145

 

$

627

 

$

128

 

$

 

$

390

 

$

351

 

$

51

 

$

300

 

$

298

 

$

0.58

 

Reported percent of net sales (or percent of income before income taxes for income tax expense)

 

38.9

%

 

21.3

%

 

4.3

%

 

0.0

%

 

13.2

%

 

11.9

%

 

14.5

%

 

10.2

%

 

10.1

%

   

Intangible asset amortization1

 

64

   

   

   

   

64

   

64

   

12

   

52

   

52

   

0.10

 

Business optimization items2

 

21

   

(6

)

 

   

   

27

   

27

   

7

   

20

   

20

   

0.04

 

Acquisition and integration expenses3

 

   

(1

)

 

   

   

1

   

1

   

   

1

   

1

   

0.00

 

European medical devices regulation4

 

8

   

   

   

   

8

   

8

   

2

   

6

   

6

   

0.01

 

Investigation and related costs6

 

   

(11

)

 

   

   

11

   

11

   

2

   

9

   

9

   

0.02

 

Adjusted

$

1,238

 

$

609

 

$

128

 

$

 

$

501

 

$

462

 

$

74

 

$

388

 

$

386

 

$

0.76

 

Adjusted percent of net sales (or adjusted percent of income before income taxes for income tax expense)

 

42.0

%

 

20.7

%

 

4.3

%

 

0.0

%

 

17.0

%

 

15.7

%

 

16.0

%

 

13.2

%

 

13.1

%

   

1

The company’s results in 2022 and 2021 included intangible asset amortization expense of $217 million ($169 million, or $0.33 per diluted share, on an after-tax basis) and $64 million ($52 million, or $0.10 per diluted share, on an after-tax basis), respectively.

2

The company’s results in 2022 and 2021 included charges of $81 million ($61 million, or $0.12 per diluted share, on an after-tax basis) and $27 million ($20 million, or $0.04 per diluted share, on an after-tax basis), respectively, associated with its programs to optimize its organization and cost structure on a global basis. In 2022, restructuring charges include actions taken in connection with our integration of Hill-Rom Holdings, Inc. (Hillrom), which we acquired in December 2021.

3

The company’s results in 2022 included $171 million ($141 million, or $0.28 per diluted share, on an after-tax basis) of acquisition and integration-related expenses. That amount includes costs related to our acquisition of Hillrom, primarily reflecting incremental costs of sales from the fair value step-ups on acquired Hillrom inventory that was sold in the current period. The acquisition and integration-related expenses related to Hillrom were partially offset by a benefit from a change in the estimated fair value of contingent consideration liabilities assumed in the Hillrom acquisition. The company’s results in 2021 included $1 million ($1 million, or $0.00 per diluted share, on an after-tax basis) of integration expenses related to the acquisition of the rights to Caelyx and Doxil for specified territories outside of the U.S.

4

The company’s results in 2022 and 2021 included costs of $11 million ($9 million, or $0.02 per diluted share, on an after-tax basis) and $8 million ($6 million, or $0.01 per diluted share, on an after-tax basis) related to updating its quality systems and product labeling to comply with the new medical device reporting regulation and other requirements of the European Union’s regulations for medical devices that became effective in stages beginning in 2021.

5

The company's results in 2022 included charges of $23 million ($20 million, or $0.04 per diluted share, on an after-tax basis) related to warranty and remediation activities from two field corrective actions on certain of our infusion pumps.

6

The company’s results in 2021 included costs of $11 million ($9 million, or $0.02 per diluted share, on an after-tax basis) for investigation and related costs from matters associated with the company’s investigation of foreign exchange gains and losses.

   

For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.

         

BAXTER INTERNATIONAL INC.

Sales by Operating Segment

(unaudited)

($ in millions)

         
 

Three Months Ended March 31,

   
 

2022

2021

% Growth @

Actual Rates

% Growth @

Constant Rates

Americas

$

1,626

 

$

1,560

 

4

%

5

%

EMEA

 

699

   

738

 

(5

)%

2

%

APAC

 

627

   

648

 

(3

)%

0

%

Hillrom

 

755

   

 

N/A

 

N/A

 

Total Baxter

$

3,707

 

$

2,946

 

26

%

29

%

                     

Constant currency growth is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.

       

BAXTER INTERNATIONAL INC.

Sales by Product Category

(unaudited)

($ in millions)

       
 

Three Months Ended March 31,

   
 

2022

2021

% Growth @

Actual Rates

% Growth @

Constant Rates

Renal Care ¹

$

894

 

$

922

 

(3

)%

1

%

Medication Delivery ²

 

706

   

652

 

8

%

10

%

Pharmaceuticals ³

 

521

   

552

 

(6

)%

(2

)%

Clinical Nutrition 4

 

227

   

234

 

(3

)%

1

%

Advanced Surgery 5

 

228

   

217

 

5

%

8

%

Acute Therapies 6

 

188

   

207

 

(9

)%

(7

)%

BioPharma Solutions 7

 

156

   

135

 

16

%

21

%

Patient Support Systems 8

 

383

   

 

N/A

 

N/A

 

Front Line Care 9

 

294

   

 

N/A

 

N/A

 

Surgical Solutions 10

 

78

   

 

N/A

 

N/A

 

Other 11

 

32

   

27

 

19

%

19

%

Total Baxter

$

3,707

 

$

2,946

 

26

%

29

%

1

Includes sales of the company’s peritoneal dialysis (PD), hemodialysis (HD) and additional dialysis therapies and services.

2

Includes sales of the company’s intravenous (IV) therapies, infusion pumps, administration sets and drug reconstitution devices.

3

Includes sales of the company’s premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services.

4

Includes sales of the company’s parenteral nutrition (PN) therapies and related products.

5

Includes sales of the company’s biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention.

6

Includes sales of the company’s continuous renal replacement therapies (CRRT) and other organ support therapies focused in the intensive care unit (ICU).

7

Includes sales of contracted services the company provides to various pharmaceutical and biopharmaceutical companies.

8

Includes sales of connected care solutions: devices, software, communications and integration technologies.

9

Includes sales of integrated patient monitoring and diagnostic technologies to help diagnose, treat and manage a wide variety of illness and diseases, including respiratory therapy, cardiology, vision screening and physical assessment.

10

Includes sales of surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories.

11

Includes sales of other miscellaneous product and service offerings.

   

Constant currency growth is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.

           

BAXTER INTERNATIONAL INC.

Product Category Sales by U.S. and International

(unaudited)

($ in millions)

           
 

Three Months Ended March 31,

       
 

2022

 

2021

 

% Growth

 

U.S.

International

Total

 

U.S.

International

Total

 

U.S.

International

Total

Renal Care

$

225

$

669

$

894

 

$

216

$

706

$

922

 

4

%

(5

)%

(3

)%

Medication Delivery

 

472

 

234

 

706

   

411

 

241

 

652

 

15

%

(3

)%

8

%

Pharmaceuticals

 

157

 

364

 

521

   

200

 

352

 

552

 

(22

)%

3

%

(6

)%

Clinical Nutrition

 

84

 

143

 

227

   

83

 

151

 

234

 

1

%

(5

)%

(3

)%

Advanced Surgery

 

136

 

92

 

228

   

126

 

91

 

217

 

8

%

1

%

5

%

Acute Therapies

 

68

 

120

 

188

   

81

 

126

 

207

 

(16

)%

(5

)%

(9

)%

BioPharma Solutions

 

52

 

104

 

156

   

44

 

91

 

135

 

18

%

14

%

16

%

Patient Support Systems

 

295

 

88

 

383

   

 

 

 

N/A

 

N/A

 

N/A

 

Front Line Care

 

207

 

87

 

294

   

 

 

 

N/A

 

N/A

 

N/A

 

Surgical Solutions

 

37

 

41

 

78

   

 

 

 

N/A

 

N/A

 

N/A

 

Other

 

24

 

8

 

32

   

19

 

8

 

27

 

26

%

0

%

19

%

Total Baxter

$

1,757

$

1,950

$

3,707

 

$

1,180

$

1,766

$

2,946

 

49

%

10

%

26

%

   

BAXTER INTERNATIONAL INC.

Reconciliation of Non-GAAP Financial Measure

Operating Cash Flow to Free Cash Flow

(unaudited)

($ in millions)

   
 

Three Months Ended March 31,

 

2022

 

2021

Cash flows from operations – continuing operations

$

208

   

$

377

 

Cash flows from investing activities

 

(304

)

   

(538

)

Cash flows from financing activities

 

(548

)

   

(358

)

       

Cash flows from operations - continuing operations

$

208

   

$

377

 

Capital expenditures

 

(140

)

   

(171

)

Free cash flow - continuing operations

$

68

   

$

206

 
               

Free cash flow is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.

         

BAXTER INTERNATIONAL INC.

Reconciliation of Non-GAAP Financial Measure

Change in Net Sales Growth As Reported to Operational Sales Growth

From The Three Months Ended March 31, 2021 to The Three Months Ended March 31, 2022

(unaudited)

         
 

Net Sales
Growth
As Reported

Hillrom

FX

Operational

Sales Growth*

Renal Care

(3

)%

0

%

4

%

1

%

Medication Delivery

8

%

0

%

2

%

10

%

Pharmaceuticals

(6

)%

0

%

4

%

(2

)%

Clinical Nutrition

(3

)%

0

%

4

%

1

%

Advanced Surgery

5

%

0

%

3

%

8

%

Acute Therapies

(9

)%

0

%

2

%

(7

)%

BioPharma Solutions

16

%

0

%

5

%

21

%

Patient Support Systems

N/A

 

N/A

 

N/A

 

N/A

 

Front Line Care

N/A

 

N/A

 

N/A

 

N/A

 

Surgical Solutions

N/A

 

N/A

 

N/A

 

N/A

 

Other

19

%

0

%

0

%

19

%

Total Baxter

26

%

(26

)%

3

%

3

%

         

U.S.

49

%

(46

)%

0

%

3

%

International

10

%

(12

)%

6

%

3

%

                 

*Totals may not add across due to rounding

               
                 

Operational sales growth is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.

     

BAXTER INTERNATIONAL INC.

Reconciliation of Non-GAAP Financial Measures

Projected Second Quarter and Full Year 2022 U.S. GAAP Sales Growth to Projected Operational Sales Growth, and Projected Second Quarter and Full Year 2022 U.S. GAAP Earnings Per Share to Projected Adjusted Earnings Per Share

(unaudited)

     

Sales Growth Guidance

Q2 2022*

FY 2022*

Sales Growth - U.S. GAAP

26%

23% - 24%

Hillrom

(25)% - (26)%

(22)% - (23)%

Foreign exchange

3% - 4%

2%

Sales Growth - Operational

4%

3%

     

*Totals may not foot due to rounding

   
     

Earnings Per Share Guidance

Q2 2022*

FY 2022*

Earnings per Diluted Share - U.S. GAAP

$0.48 - $0.51

$2.35 - $2.43

Estimated intangible asset amortization

$0.29

$1.11

Estimated business optimization charges

$0.02

$0.16

Estimated acquisition and integration expenses

$0.05

$0.39

Estimated product-related items

$0.00

$0.04

Estimated European medical devices regulation

$0.02

$0.07

Earnings per Diluted Share - Adjusted

$0.86 - $0.89

$4.12 - $4.20

     

*Totals may not foot due to rounding

   
     

The company’s outlook for U.S. GAAP earnings per share only includes the impact of special items that are known or expected as of the date of this release. Accordingly, actual U.S. GAAP earnings per share for the second quarter and full year of 2022 may differ significantly from those amounts. For example, the company’s outlook does not reflect the potential impact of future business or asset acquisitions or dispositions, intangible asset impairments, restructuring actions, developments related to gain or loss contingencies, or unusual or infrequently occurring items that may occur during the remainder of 2022.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220426006295/en/

Contacts

Media Contact
Eric Tatro, (224) 948-5353
media@baxter.com

Investor Contact
Clare Trachtman, (224) 948-3020

Source: Baxter International Inc.

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