Ortho Clinical revenue grows, EBITDA dips in 2Q19

Ortho Clinical Diagnostics reported 2Q19 earnings showing a slight year-over-year bump in revenue alongside a 3.7% dip in adjusted EBITDA, according to two sources familiar with the matter.

The Carlyle Group–owned in vitro diagnostics and blood testing company booked USD 454m in revenue for the quarter, up from USD 449m for the corresponding period last year. Adjusted EBITDA declined to USD 126.1m from USD 131m in 2Q18, primarily driven by a decrease in sales in the EMEA region.

During the quarter, EMEA revenues fell 6% YoY on a constant currency basis to USD 27m, whereas North American revenues grew 3% YoY on constant currency basis to USD 225m.

The results put leverage at 4.7x through USD 2.29bn in first lien debt and 7.4x total USD 3.64bn of debt, given USD 491m of LTM EBITDA.

As of 30 June, liquidity stands at USD 360m through USD 323m of revolver availability and USD 37m of cash.

The company’s USD 1.3bn 6.625% senior unsecured notes due 2022 traded at 96.625 to yield 8.011% today, down slightly from a trade at 97 to yield 7.853% yesterday before the earnings report, according to MarketAxess.

Ortho’s USD 2.29bn Libor+ 325bps (0% floor) first lien term loan due 2025 is currently quoted at 95.075/95.925, down from 95.208/95.875 yesterday (13 August), according to Markit.

Ortho did not respond to a request for comment.

2019 Debtwire

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