Ortho Clinical Diagnostics Holdings PLC (OCDX) 2022 Q1 法說會逐字稿

Welcome to the Ortho Clinical Diagnostics First Quarter 2022 Earnings Conference Call and Webcast. (Operator Instructions) Please note this conference is being recorded. An audio replay of the conference call will be available on the company's website within a few hours after the call. I would now like to turn the call over to Bryan Brokmeier, Vice President of Investor Relations. Bryan?

歡迎參加 Ortho Clinical Diagnostics 2022 年第一季度收益電話會議和網絡廣播。 （操作員說明）請注意，本次會議正在錄製中。電話會議的音頻重播將在電話會議結束後幾個小時內在公司網站上提供。我現在想將電話轉給投資者關係副總裁 Bryan Brokmeier。布萊恩？

Thank you, operator. Good afternoon, everyone, and welcome to the Ortho Clinical Diagnostics First Quarter Earnings Conference Call. With me today to discuss our financial results are Chris Smith, Ortho's Chairman and CEO; and Joe Busky, Ortho's Chief Financial Officer. This conference call is being simultaneously webcast on the Investors section of our website, and a version of today's presentation can be downloaded there.

謝謝你，接線員。大家下午好，歡迎參加 Ortho Clinical Diagnostics 第一季度收益電話會議。今天與我一起討論我們財務業績的是 Ortho 董事長兼首席執行官 Chris Smith；和 Ortho 首席財務官 Joe Busky。本次電話會議同時在我們網站的投資者部分進行網絡直播，您可以在那裡下載今天的演示文稿的版本。

Before we begin, I will cover our safe harbor statement. Some of the statements we will make during this call about the company's future expectations, plans and prospects constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a safe harbor for such statements. Our use of forward-looking statements is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from our current expectations. These risks and uncertainties include, but are not limited to, those factors identified on Slide 2 of today's presentation and our other filings with the SEC. Please refer to our SEC filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. We cannot assure you that the forward-looking statements we make will be realized. We undertake no obligation to update any forward-looking statement to reflect future events, developments or changed circumstances or for any other reason, except as required by law.

在我們開始之前，我將介紹我們的安全港聲明。我們將在本次電話會議中做出的有關公司未來預期、計劃和前景的一些聲明構成1934 年《證券交易法》第21E 條含義內的前瞻性聲明，該聲明為此類聲明提供了安全港。我們對前瞻性陳述的使用會受到許多風險、不確定性和其他因素的影響，這些因素可能導致實際結果與我們當前的預期存在重大差異。這些風險和不確定性包括但不限於今天演示文稿的幻燈片 2 以及我們向 SEC 提交的其他文件中確定的因素。請參閱我們向 SEC 提交的文件，了解有關前瞻性陳述以及此類陳述的風險和不確定性的更詳細討論。我們無法向您保證我們所做的前瞻性陳述將會實現。我們不承擔更新任何前瞻性聲明以反映未來事件、發展或情況變化或出於任何其他原因的義務，除非法律要求。

Also during today's call, there will be a discussion of some items that do not conform to U.S. generally accepted accounting principles or GAAP. Please refer to Slide 3 for a list of these non-GAAP measures, including, but not limited to, core revenue, constant currency, EBITDA, adjusted EBITDA, adjusted free cash flow and adjusted diluted earnings per share. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in the appendix to the investor presentation and press release issued this afternoon, both of which are available in the Investors section of the Ortho website.

此外，在今天的電話會議中，還將討論一些不符合美國公認會計原則或公認會計準則的項目。請參閱幻燈片 3，了解這些非 GAAP 指標的列表，包括但不限於核心收入、固定匯率、EBITDA、調整後 EBITDA、調整後自由現金流和調整後稀釋每股收益。這些非 GAAP 衡量標準與其最直接可比的 GAAP 衡量標準的對賬包含在今天下午發布的投資者介紹和新聞稿的附錄中，兩者均可在 Ortho 網站的投資者部分找到。

In addition, on today's call, we will refer to our core and noncore business. Our clinical lab -- our clinical laboratories, also known as clinical labs, transfusion medicine businesses represent our core business. Our noncore business is comprised of our contract manufacturing and licensing revenue. Unless stated otherwise, all year-over-year revenue growth rates, including revenue growth ranges given on today's call, are given on a comparable constant currency basis.

此外，在今天的電話會議上，我們將提及我們的核心和非核心業務。我們的臨床實驗室——我們的臨床實驗室，也稱為臨床實驗室，輸血醫學業務代表了我們的核心業務。我們的非核心業務包括合同製造和許可收入。除非另有說明，所有同比收入增長率，包括今天電話會議上給出的收入增長范圍，都是在可比較的固定貨幣基礎上給出的。

Lastly, due to the pending transaction between Ortho and Quidel, I would like to point out that we will not be conducting a Q&A session following our prepared remarks today. Now I'd like to turn the call over to Chris Smith, Ortho's Chairman and CEO. Chris?

最後，由於 Ortho 和 Quidel 之間的交易懸而未決，我想指出，我們今天準備好的發言後不會進行問答環節。現在我想將電話轉給 Ortho 董事長兼首席執行官 Chris Smith。克里斯？

Great. Thanks, Bryan, and welcome, everyone. Thanks for joining us this afternoon to go through our Q1 earnings update. We're going to start on Slide 4, and I always love to begin every presentation I do, whether it's to our teammates or customers or obviously to investors because it really is our credo and the mention of what drives the company because every test is alike. And that's why we do what we do. And we play a critical role today in the health care system around the world. To give you an example, today, we help over 800,000 patients with our products and our technologies. And I just want to thank our teammates for everything that they do around the world every single day.

偉大的。謝謝布萊恩，歡迎大家。感謝您今天下午加入我們，了解我們的第一季度收益更新。我們將從幻燈片4 開始，我總是喜歡開始我所做的每一次演示，無論是對我們的隊友、客戶還是顯然對投資者，因為這確實是我們的信條，並且提到了公司的驅動力，因為每一次測試都是一樣。這就是我們所做的事情的原因。如今，我們在世界各地的醫療保健系統中發揮著至關重要的作用。舉個例子，今天，我們用我們的產品和技術幫助了超過 800,000 名患者。我只想感謝我們的隊友每天在世界各地所做的一切。

Now let's move to Slide 6 and to get into the first quarter earnings. First off, as you know, we have a broad diagnostics portfolio. So COVID assays have not been a meaningful factor on our business throughout the pandemic as it has been for some other company. That said, we only generated $12 million of COVID assay revenue in Q1 2022 compared to $29 million a year ago, representing an approximate 4-point headwind on sales growth and the corresponding impact to the profitability. Given that, today, we will largely focus on our underlying base business, which excludes COVID assay revenue. Our core revenue, excluding CoV assay revenue grew slightly over 4% in constant currency in the quarter, with solid growth in both transfusion medicine and non-COVID immunoassays. Including the headwind from the COVID test, our core revenue grew approximately 1% in constant currency to $495 million.

現在讓我們轉到第 6 張幻燈片並了解第一季度的收益。首先，如您所知，我們擁有廣泛的診斷產品組合。因此，在整個大流行期間，新冠病毒檢測對我們的業務來說並沒有像其他一些公司那樣成為一個有意義的因素。也就是說，我們在 2022 年第一季度僅產生了 1200 萬美元的新冠檢測收入，而一年前為 2900 萬美元，這對銷售增長和盈利能力產生了約 4 個百分點的阻力。鑑於此，今天我們將主要關注我們的基礎業務，其中不包括新冠檢測收入。按固定匯率計算，本季度我們的核心收入（不包括新冠病毒檢測收入）增長略高於 4%，輸血醫學和非新冠病毒免疫檢測業務均實現穩健增長。包括新冠病毒測試帶來的不利影響，我們的核心收入按固定匯率計算增長了約 1%，達到 4.95 億美元。

Market demand continues to be very strong, though as we discussed last quarter, global supply chain disruptions continue to be a challenge, particularly on our analyzer placement. We are pleased with our 3% installed base growth during Q1 and even more so driven by the 14% integrated instrument growth. However, we ended the quarter with open orders of approximately 600 instruments due to semiconductor chip and other supply chain challenges. If we had shipped those open orders for new instrument placements, our total installed growth would have been closer to 5%, and we believe our revenue growth would have been an additional 2 to 3 percentage points higher. I'll further discuss this in a moment.

市場需求仍然非常強勁，儘管正如我們上季度討論的那樣，全球供應鏈中斷仍然是一個挑戰，特別是在我們的分析儀放置方面。我們對第一季度裝機量增長 3% 感到滿意，在集成儀器增長 14% 的推動下更是如此。然而，由於半導體芯片和其他供應鏈挑戰，我們在本季度結束時未平倉訂單約為 600 台儀器。如果我們運送新儀器放置的未結訂單，我們的總安裝量增長將接近 5%，我們相信我們的收入增長將額外提高 2 至 3 個百分點。我稍後會進一步討論這個問題。

Turning to our profitability. Our adjusted EBITDA margin of 27.9% is down 220 basis points due to manufacturing variance that benefited margins by approximately 200 basis points a year ago, and an estimated 210 basis points of headwind from the decline in that high-margin COVID assay revenue compared to last year.

轉向我們的盈利能力。我們調整後的EBITDA 利潤率為27.9%，下降了220 個基點，原因是製造差異使一年前的利潤率提高了約200 個基點，而與去年相比，高利潤率的新冠檢測收入下降預計將帶來210 個基點的不利影響年。

Let's now look at the regions and how we performed around the world. If you turn to Slide 7, you'll see the highlight of each region. The Americas, our largest geography grew 4%, with the U.S. commercial growth, excluding COVID assays up 3%, driven by strong immunoassay business and transfusion medicine. In EMEA, growth continues to go quite well. If you look at our growth, excluding COVID assay, it was 12%, driven by strength in our immunoassay and our transfusion medicine business and particularly in Northern Europe as well as the Middle East and Africa. Russia comprises less than 1% of our global sales. So while we are paying close attention to developments and impacts relating to the Russian-Ukraine war, the direct impact on our business during Q1 wasn't meaningful.

現在讓我們看看各個地區以及我們在世界各地的表現。如果您翻到幻燈片 7，您將看到每個區域的亮點。我們最大的地區美洲增長了 4%，在強勁的免疫分析業務和輸血醫學的推動下，美國商業增長（不包括新冠檢測）增長了 3%。在歐洲、中東和非洲地區，增長繼續良好。如果你看看我們的增長，不包括新冠檢測，你會發現增長了 12%，這是由我們的免疫檢測和輸血藥物業務的實力推動的，特別是在北歐、中東和非洲。俄羅斯占我們全球銷售額的不到 1%。因此，雖然我們正在密切關注與俄羅斯-烏克蘭戰爭有關的事態發展和影響，但第一季度對我們業務的直接影響並沒有意義。

Greater China declined 3% due to COVID lockdowns in key regions. However, immunoassay business still grew greater than 20% in the quarter. While instrument placements were negatively affected by instrument availability in the quarter, our installed base still grew in China, a solid 6%, driven by the integrated system growth of 12% and underlying demand remains strong. We still think China will grow high single or low double digits for the year.

由於關鍵地區的新冠疫情封鎖，大中華區下降了 3%。然而，免疫檢測業務本季度仍增長超過20%。儘管本季度儀器投放量受到儀器可用性的負面影響，但在集成系統增長 12% 和潛在需求依然強勁的推動下，我們在中國的安裝基數仍然增長了 6%。我們仍然認為中國今年將實現高個位數或低兩位數的增長。

Looking at our developed markets versus emerging markets, excluding the COVID assay revenue, our developed markets grew 3% and emerging markets grew 5%. While emerging market growth is below the recent trend, this is largely due to instrument supply chain challenges, but the other line demand remains solid, and we continue to see double-digit growth in our integrated installed base in China, Latin America and ASPAC.

看看我們的發達市場與新興市場，不包括新冠病毒檢測收入，我們的發達市場增長了 3%，新興市場增長了 5%。雖然新興市場的增長低於近期趨勢，這主要是由於儀器供應鏈的挑戰，但其他產品線的需求仍然強勁，我們繼續看到中國、拉丁美洲和亞太地區的綜合裝機量實現兩位數增長。

Next, let's move to Slide 8 and talking about our strategic pillars. We continue to remain steadfastly focused on executing against these strategic priorities to drive profitable growth and shareholder value. These 3 priorities are product innovation, global commercial excellence and operational efficiency. We continue to make progress against each of these areas in the first quarter, and let me cover just a few of the highlights. Beginning with product innovation, a turbocharger for growth, we discussed last quarter that we received Emergency Use Authorization from the U.S. government for the quantitative COVID spike antibody assay. I'm excited to announce that Ortho has been selected as a partner in a large CDC-funded study to further our understanding of individuals' immune response to infection and vaccination.

接下來，讓我們轉到幻燈片 8，討論我們的戰略支柱。我們將繼續堅定不移地專注於執行這些戰略重點，以推動盈利增長和股東價值。這三個優先事項是產品創新、全球商業卓越和運營效率。我們在第一季度繼續在每個領域取得進展，讓我只介紹一些亮點。從產品創新（增長的渦輪增壓器）開始，我們在上季度討論了我們獲得美國政府針對定量新冠病毒尖峰抗體檢測的緊急使用授權。我很高興地宣布 Ortho 已被選為 CDC 資助的一項大型研究的合作夥伴，以進一步了解個人對感染和疫苗接種的免疫反應。

In addition, CTS and the American Red Cross recently began testing donors with our assay to determine if antibody levels were detected at levels high enough for an individual's plasma to be used for convalescent plasma therapy. And finally, our Quant assay recently won the Gold Edison Award in the 2022 Innovations category. This is our second win in a row in this category, demonstrating our commitment to supporting our customers and our patients around the world.

此外，CTS 和美國紅十字會最近開始使用我們的檢測方法對捐獻者進行測試，以確定檢測到的抗體水平是否足夠高，足以使個人血漿用於恢復期血漿治療。最後，我們的定量分析最近榮獲 2022 年創新類別的愛迪生金獎。這是我們在該類別中連續第二次獲勝，體現了我們對支持世界各地的客戶和患者的承諾。

Turning to our second priority, global commercial excellence. We continue implementation of our commercial excellence programs in our growth strategy, which is to continue to drive double-digit growth in integrated installed base. I'm also pleased to announce that we were awarded a Stevie Award for Sales and Customer Service for the year. The award further recognizes our commitment to excellence through Ortho care service and support, which we believe is a key differentiator to our business.

轉向我們的第二要務，全球商業卓越。我們繼續在增長戰略中實施商業卓越計劃，即繼續推動綜合裝機量的兩位數增長。我還很高興地宣布，我們榮獲了年度銷售和客戶服務史蒂夫獎。該獎項進一步認可了我們通過骨科護理服務和支持實現卓越的承諾，我們認為這是我們業務的關鍵差異化因素。

And finally, our third priority, operational efficiency. Thanks to the strong revenue performance and the execution by our entire team around the world, we continue to remain a strong balance sheet and with a healthy net leverage ratio of 3.7x.

最後，我們的第三個優先事項是運營效率。得益於強勁的收入表現和我們全球整個團隊的執行力，我們繼續保持強勁的資產負債表和 3.7 倍的健康淨槓桿率。

Lastly, I'd like to comment today on the industry-wide supply chain disruptions. Market demand continues to be strong for our products through the first quarter, but was impacted by supply chain and inflationary challenges. As I stated earlier, the limited supply of chips negatively affected our installed base growth, and we ended the quarter with open orders of approximately 600 analyzers. We believe, however, that we're well positioned to weather this environment. We are raising prices and adding surcharges where possible. We have strategic partnerships with leading contract manufacturers who have significantly more buying power, enabling them to reduce the impact on our business more than we would have on our own.

最後，我今天想就全行業供應鏈中斷發表評論。第一季度市場對我們產品的需求持續強勁，但受到供應鍊和通脹挑戰的影響。正如我之前所說，芯片供應有限對我們的安裝基礎增長產生了負面影響，本季度結束時我們收到了大約 600 台分析儀的未結訂單。然而，我們相信，我們有能力應對這種環境。我們正在盡可能提高價格並增加附加費。我們與領先的合同製造商建立了戰略合作夥伴關係，他們的購買力明顯增強，使他們能夠比我們自己減少對我們業務的影響。

And additionally, we foresaw some of these challenges coming, and our team has done a fantastic job adding additional suppliers and employing many initiatives since early 2021 to mitigate the impact on our business. We are prioritizing delivery of analyzers to customers that need an instrument to meet testing demand as well as to new customer installations over replacement of existing installed base customers followed by shipments of integrated analyzers that provide greater and more profitable revenue. We are also exploring alternative components to reduce our dependency on specific chips, which are a key component in our analyzer. We anticipate this will allow us to further diversify our supply and reduce our costs. Of course, this will take some time, but we're confident in our strong R&D time that they will allow us to quickly deliver analyzer redesigns to the market.

此外，我們預見到其中一些挑戰即將到來，自 2021 年初以來，我們的團隊在增加更多供應商並採取許多舉措來減輕對我們業務的影響方面做得非常出色。我們優先向需要儀器來滿足測試需求的客戶以及新安裝的客戶交付分析儀，而不是替換現有的已安裝客戶，然後再交付可提供更大、更有利可圖的收入的集成分析儀。我們還在探索替代組件，以減少對特定芯片的依賴，這些芯片是我們分析儀的關鍵組件。我們預計這將使我們能夠進一步實現供應多元化並降低成本。當然，這需要一些時間，但我們對強大的研發時間充滿信心，它們將使我們能夠快速將分析儀重新設計推向市場。

With that, I'd like to turn the call over to Joe to further discuss our Q1 financials. Joe?

至此，我想將電話轉給喬，進一步討論我們第一季度的財務狀況。喬？

Okay. Thanks, Chris, and good afternoon, everyone. I'll begin with a bit more detail on our operating results for the quarter, starting with the breakdown of our revenues on Slide 10. In the first quarter, we recorded total revenues of $500 million, about flat year-over-year, in constant currency. Currency translation decreased our sales growth by approximately 100 basis points, resulting in a 1% sales decline on a reported basis. Core revenue, which excludes contract manufacturing and other licensing revenue increased 1% on a constant currency basis to $495 million. Excluding the 360 basis point headwind from year-over-year COVID assay sales, core revenue growth was up just over 4%, primarily driven by the solid recurring revenue pull-through on the instruments we placed over the last couple of years across our geographies in both Clin labs and transfusion medicine.

好的。謝謝克里斯，大家下午好。首先，我將更詳細地介紹本季度的運營業績，首先是幻燈片 10 上的收入細目。第一季度，我們的總收入為 5 億美元，與去年同期持平。恆定貨幣。貨幣換算使我們的銷售增長下降了約 100 個基點，導致報告銷售額下降 1%。核心收入（不包括合同製造和其他許可收入）按固定匯率計算增長了 1%，達到 4.95 億美元。排除新冠檢測銷售同比增長 360 個基點的不利影響，核心收入增長略高於 4%，這主要是由於過去幾年我們在各個地區部署的儀器帶來了穩定的經常性收入拉動在臨床實驗室和輸血醫學領域。

Turning to our Q1 performance by line of business, Clin Labs revenue, excluding COVID assay sales, grew 1% and largely driven by strength in immunoassay, partially offset by softness in clin chemistry, particularly with analyzers due to the previously mentioned building our open orders, as well as the COVID lockdowns in China. In transfusion medicine, we grew 11%, driven by strength in both immunohematology and donor screening businesses.

轉向我們按業務線劃分的第一季度業績，Clin Labs 收入（不包括新冠檢測銷售額）增長了1%，這主要是由免疫檢測的實力推動的，部分被臨床化學的疲軟所抵消，特別是由於前面提到的建立我們的開放訂單而導致的分析儀，以及中國的新冠疫情封鎖。在輸血醫學領域，由於免疫血液學和捐獻者篩選業務的強勁推動，我們增長了 11%。

Noncore revenue in the first quarter declined to $5 million from $7 million a year ago due to the completion of certain contract manufacturing arrangements. Looking ahead, we continue to expect noncore revenue to be in the $3 million to $5 million per quarter range.

由於某些合同製造安排的完成，第一季度的非核心收入從去年同期的 700 萬美元下降至 500 萬美元。展望未來，我們繼續預計非核心收入將在每季度 300 萬至 500 萬美元範圍內。

Turning to our core performance by geography. On a constant currency basis, Americas revenue decreased 1%. Excluding COVID assay revenue, Americas revenue was up 4%. The EMEA region revenue grew 7% with 11% growth in Middle East, Africa emerging markets. Western Europe was up 10%, excluding COVID assay revenue. Greater China declined 3% due to the issues that Chris mentioned, including COVID lockdowns and our other region, which includes Japan and other Asia Pacific markets grew 6%.

轉向我們按地理位置劃分的核心業績。按固定匯率計算，美洲地區收入下降 1%。不包括新冠病毒檢測收入，美洲收入增長 4%。歐洲、中東和非洲地區收入增長 7%，其中中東、非洲新興市場增長 11%。不包括新冠病毒檢測收入，西歐增長了 10%。由於克里斯提到的問題（包括新冠疫情封鎖），大中華區下降了 3%，而我們的其他地區（包括日本和其他亞太市場）增長了 6%。

Looking at our Q1 core revenue by category, recurring revenue, which includes reagents, service and other consumables, grew 2%. Excluding our COVID assay revenue, recurring revenue grew 6%, driven by solid growth in both clin-chemistry and non-COVID immunoassays as well as transfusion medicine. Instrument revenue actually declined 16% in the quarter due to the instrument supply chain challenges as Chris mentioned earlier.

按類別查看我們第一季度的核心收入，經常性收入（包括試劑、服務和其他消耗品）增長了 2%。不包括我們的新冠檢測收入，經常性收入增長了 6%，這得益於臨床化學和非新冠免疫檢測以及輸血藥物的穩健增長。正如 Chris 之前提到的，由於儀器供應鏈面臨挑戰，本季度儀器收入實際上下降了 16%。

Now turning to Slide 11. I did like to comment on our first quarter financial performance versus the prior year. We delivered a solid quarter of performance below the top line. GP margin for the quarter was 50.3%, an 80 basis point decrease due to the unusual manufacturing variances that benefited margins by approximately 200 basis points a year ago. And a 130 basis point headwind from high-margin COVID assay revenue as well as supply chain costs, partially offset by currency translation, volume and base business mix. Excluding the drop in high-margin COVID assay revenue impact, gross profit margin would have been up 50 basis points, despite a 100 basis point headwind from inflationary pressures on materials.

現在轉向幻燈片 11。我確實想評論一下我們第一季度的財務業績與去年相比。我們在營收以下實現了穩定的季度業績。該季度的毛利率為 50.3%，下降了 80 個基點，原因是異常的製造差異使毛利率比一年前提高了約 200 個基點。高利潤的新冠檢測收入和供應鏈成本帶來了 130 個基點的阻力，但部分被貨幣換算、銷量和基礎業務組合所抵消。排除高利潤的新冠檢測收入下降的影響，儘管材料的通脹壓力帶來了 100 個基點的阻力，但毛利率仍將上升 50 個基點。

Moving down to P&L for the first quarter. Sales, marketing and administrative as a percentage of revenue was flat year-over-year at 25.9% and R&D as a percentage of revenue increased 70 basis points to 6.4% as we continue to invest in our test menu and new platforms, most notably our [dry-dry] platform.

向下看第一季度的損益表。銷售、營銷和管理佔收入的百分比與去年同期持平，為 25.9%，隨著我們繼續投資於我們的測試菜單和新平台，研發佔收入的百分比增加了 70 個基點，達到 6.4%。 【幹幹】平台。

Adjusted EBITDA margin of 27.9% for the first quarter is down 220 basis points. The downward pressure was due to the previously mentioned manufacturing variances and an estimated 210 basis point headwind from the decline. Again, in high-margin COVID assay revenue, partially offset by positive base business mix and efficiency improvements. Excluding the drop in COVID assay revenue impact, adjusted EBITDA margin would have been down 10 basis points, but this includes a 100 basis point headwind from inflationary pressures on materials.

第一季度調整後 EBITDA 利潤率為 27.9%，下降 220 個基點。下行壓力是由於之前提到的製造業差異以及預計下降 210 個基點的阻力造成的。同樣，在高利潤的新冠檢測收入中，部分被積極的基礎業務組合和效率改進所抵消。排除新冠病毒檢測收入下降的影響，調整後的 EBITDA 利潤率將下降 10 個基點，但這包括材料通脹壓力帶來的 100 個基點的阻力。

Net interest expense for the period was $33 million, a decrease of $10 million as anticipated due to the lower average outstanding debt balances and lower interest rates. Our provision for income taxes was $4 million compared to $3 million in the year ago period. And our adjusted earnings per fully diluted share for the fourth quarter decreased $0.03 year-over-year to $0.23, including a $0.06 year-over-year impact from the previously mentioned COVID headwind as well as a negative $0.03 impact from the increase in our share count resulting from the February 2021 IPO.

該期間的淨利息支出為 3,300 萬美元，由於平均未償債務餘額較低和利率較低，比預期減少 1,000 萬美元。我們的所得稅撥備為 400 萬美元，而去年同期為 300 萬美元。第四季度調整後的完全稀釋每股收益同比下降 0.03 美元，至 0.23 美元，其中包括之前提到的新冠疫情帶來的 0.06 美元的同比影響，以及我們份額增加帶來的 0.03 美元的負面影響2021年2 月IPO 的結果。

Now if you were to exclude the drop in COVID assay revenue testing and we normalize the share count for the IPO, our Q1 EPS would have been up 6% -- $0.06 for the -- versus the prior year. On a GAAP basis, we reported net income per share of $0.06 compared to a net loss per share of $0.19 in Q1 '21.

現在，如果排除新冠病毒檢測收入下降的影響，並且我們將 IPO 的股數標準化，那麼我們第一季度的每股收益將比去年增長 6%，即 0.06 美元。按照 GAAP 計算，我們報告的每股淨利潤為 0.06 美元，而 2021 年第一季度的每股淨虧損為 0.19 美元。

Turning to free cash flow, capital deployment and balance sheet on Slide 12. In the first quarter, we used $20 million in adjusted free cash flow after funding $27 million in CapEx, consistent with our normal quarterly seasonality in the business. Our days sales outstanding came in at 42 days, an improvement of 17 days compared to the first quarter of last year. Now this includes the Q2 '21 securitization of $75 million of our U.S. accounts receivable and an off-balance sheet transaction. As discussed in prior quarters, but without the benefit of this financing transaction, our DSO would still have improved by 3 days compared to the first quarter of last year.

轉向幻燈片12 上的自由現金流、資本部署和資產負債表。第一季度，在為資本支出提供2700 萬美元資金後，我們使用了2000 萬美元的調整後自由現金流，這與我們正常的業務季度季節性一致。我們的應收賬款天數為 42 天，比去年第一季度增加了 17 天。現在，這包括 21 年第二季度我們的 7500 萬美元美國應收賬款證券化和一項表外交易。正如前幾個季度所討論的，但如果沒有這次融資交易的好處，我們的 DSO 仍比去年第一季度提高了 3 天。

Our Q1 cash performance enabled us to continue to maintain our strong balance sheet with a net debt-to-EBITDA ratio of 3.7. We ended the quarter with net debt of $1.9 billion, including cash and cash equivalents of $281 million and total debt of $2.2 billion.

第一季度的現金表現使我們能夠繼續保持強勁的資產負債表，淨債務與 EBITDA 比率為 3.7。本季度末，我們的淨債務為 19 億美元，其中現金和現金等價物為 2.81 億美元，總債務為 22 億美元。

Lastly, given the pending combination with Quidel, we are holding off on providing detailed guidance until the transaction closes. We want to largely reiterate the outlook we provided last quarter, though. So full year adjusted free cash flow is, however, expected to be negatively affected by approximately $20 million, including an approximate 150 basis point headwind on adjusted EBITDA margin, due to the increase in cost of materials. This impact is before any offsetting impacts from surcharges or price increases that Chris mentioned.

最後，鑑於與 Quidel 的合併懸而未決，我們將推遲提供詳細指導，直至交易結束。不過，我們希望在很大程度上重申我們上季度提供的前景。然而，全年調整後自由現金流預計將受到約 2000 萬美元的負面影響，其中包括由於材料成本增加而導致調整後 EBITDA 利潤率下降約 150 個基點。這種影響是在克里斯提到的附加費或價格上漲的任何抵消影響之前的。

And with that, I'd like now to turn the call back over to Chris to make a few summary comments.

說到這裡，我現在想把電話轉回給克里斯，讓他做一些總結性評論。

Thanks, Joe. If we move to Slide 13, it's a quick summary slide over the quarter. We had a solid quarter to start the year with 4% of constant currency growth in our core business, excluding the COVID assay and 28% adjusted EBITDA margins despite global supply chain challenges, the shutdowns in China and the Russian-Ukraine war.

謝謝，喬。如果我們轉到幻燈片 13，它是該季度的快速摘要幻燈片。儘管面臨全球供應鏈挑戰、中國停工和俄羅斯-烏克蘭戰爭，但我們的核心業務在年初取得了穩健的季度業績，不包括新冠病毒檢測，其核心業務實現了4% 的穩定匯率增長，調整後的EBITDA 利潤率為28%。

This may be my last earnings call with Ortho. So before concluding, I'd like to make a few final comments. It's been honored a privilege to serve as Chairman and CEO of Ortho Clinical Diagnostics over the last 3 years. The COVID-19 pandemic disrupted the global economy, the supply chains and the global health care community as we've seen it. However, our amazing teammates at Ortho rose to the challenge and achieved significant accomplishments during this time period.

這可能是我最後一次參加 Ortho 的財報電話會議。因此，在結束之前，我想做一些最後的評論。在過去的三年裡，我很榮幸擔任 Ortho Clinical Diagnostics 的董事長兼首席執行官。正如我們所見，COVID-19 大流行擾亂了全球經濟、供應鍊和全球醫療保健界。然而，我們在 Ortho 的出色團隊成員勇敢地面對挑戰，並在此期間取得了重大成就。

We accelerated company growth, especially in our core business. We completed a successful IPO offering. We increased our investment in product innovation driving the launch of 4 new analyzers and more than 20 newer improved assays. We pivoted our growth strategy and executed on a new commercial excellence program that drove penetration in the market by our integrated analyzers and the pull-through of what we started to talk a lot about this reoccurring revenues. To give you an idea, in Q1, reoccurring revenues was 94%. We reinforced our service leadership and earned the #1 ranking for the sixth consecutive year in ServiceTrak. And then we announced our proposed combination with the Quidel Corporation.

我們加速了公司的發展，特別是在我們的核心業務方面。我們成功完成了首次公開募股（IPO）。我們增加了對產品創新的投資，推動推出 4 種新分析儀和 20 多種更新的改進檢測方法。我們調整了增長戰略，並執行了一項新的商業卓越計劃，該計劃通過我們的集成分析器推動了市場滲透，並推動了我們開始大量談論的經常性收入。舉個例子，第一季度，經常性收入為 94%。我們鞏固了我們的服務領導地位，並連續第六年在 ServiceTrak 中排名第一。然後我們宣布了與 Quidel Corporation 的合併提議。

And looking ahead, we feel incredibly confident that the Ortho growth strategy and our clearly differentiated business built around innovation, commercial excellence and operational efficiency will continue to thrive. This provides us with a strong foundation as we finalize the pending combination with Quidel. This combination is really an exciting next chapter for the company, given that these 2 companies have highly complementary, robust product and service offerings, serving a wide range of customers around the world, the accelerated growth profile and the shareholder value we believe will be enhanced by combining these 2 companies.

展望未來，我們非常有信心 Ortho 的增長戰略以及我們圍繞創新、卓越商業和運營效率打造的明顯差異化業務將繼續蓬勃發展。這為我們最終確定與 Quidel 的合併提供了堅實的基礎。此次合併對於公司來說確實是一個令人興奮的新篇章，因為這兩家公司擁有高度互補、強大的產品和服務，為世界各地的廣泛客戶提供服務，我們相信加速增長和股東價值將會得到提升通過合併這兩家公司。

Finally, I want to thank our teammates and our customers as well as our investors and the sell-side analysts for covering us. It's been a pleasure working with all of you, and I wish you the very best. Thanks again for joining us today on this Q1 update call, and have a great day. Bye.

最後，我要感謝我們的隊友、客戶、投資者和賣方分析師對我們的報導。與大家一起工作非常愉快，我祝愿你們一切順利。再次感謝您今天加入我們的第一季度更新電話會議，祝您有美好的一天。再見。

And this concludes today's conference call. Thank you all for joining. You may now disconnect.

今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連接。