Avantor® Announces Preliminary Second Quarter 2020 Unaudited Revenue

Rhea-AI Summary

Avantor (NYSE: AVTR) announced preliminary unaudited revenue estimates for Q2 2020, projecting earnings between $1.48 billion and $1.49 billion, down from $1.53 billion in Q2 2019, indicating a 2% to 3% organic revenue decline. The decline was primarily attributed to COVID-19 impacts in Education, Healthcare, and Advanced Technologies markets, though Biopharma remains strong. Concurrently, Avantor plans to increase its revolving credit facility to $515 million and extend its maturity to July 2025.

Positive

• Estimated Q2 2020 revenue of $1.48-1.49 billion, indicating resilience amidst challenges.
• Continued strength in the Biopharma sector, offsetting declines in other markets.

Negative

• Organic revenue decline of 2% to 3% compared to the previous year due to COVID-19 impacts.

RADNOR, Pa., July 7, 2020 /PRNewswire/ -- Avantor, Inc. (NYSE: AVTR), a leading global provider of mission critical products and services to customers in the life sciences and advanced technologies & applied materials industries, provided preliminary unaudited revenue estimates for the quarter ended June 30, 2020, in conjunction with a separately announced proposed offering of debt securities. Avantor also plans to increase its revolving credit facility and extend its maturity date.

Preliminary Second Quarter 2020 Unaudited Revenue

• Second quarter 2020 unaudited revenue is expected to be in the range of $1.48 billion to $1.49 billion, as compared to $1.53 billion in the comparable prior period of fiscal 2019, resulting in an estimated organic revenue decline of 2% to 3%.
• Estimated second quarter 2020 revenue was driven by COVID-19-related weakness in the Education, Healthcare and Advanced Technologies & Applied Materials end markets, offset by continued Biopharma strength.

"Our preliminary revenue results demonstrate the resiliency of our differentiated business model and strong execution in a challenging business environment," said Michael Stubblefield, CEO and President of Avantor. "We look forward to sharing our full financial results and anticipated enhancements to our capital structure at our second quarter earnings release call scheduled for July 29, 2020."

The estimated fiscal 2020 second quarter revenue results are preliminary, unaudited and subject to completion, reflect management's current views and may change as a result of management's review of results and other factors. Such preliminary results for the fiscal 2020 second quarter are subject to the finalization and closing of our accounting books and records (which have yet to be performed), and should not be viewed as a substitute for full quarterly financial statements prepared in accordance with accounting principles generally accepted in the U.S. Neither our independent registered public accounting firm nor any other independent registered public accounting firm has audited, reviewed or compiled, examined or performed any procedures with respect to the preliminary results, nor have they expressed any opinion or any other form of assurance on the preliminary results.

Revolving Credit Facility

Concurrently with the separately announced proposed offering of debt securities, we intend to (i) increase availability under our revolving credit facility to $515.00 million and (ii) extend the maturity date of the revolving credit facility to July 2025. There can be no assurance that such increases or amendments to our revolving credit facility will be implemented on the terms proposed, or at all.

About Avantor  
Avantor^®, a Fortune 500 company, is a leading global provider of mission-critical products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. Our portfolio is used in virtually every stage of the most important research, development and production activities in the industries we serve. One of our greatest strengths comes from having a global infrastructure that is strategically located to support the needs of our customers. Our global footprint enables us to serve more than 225,000 customer locations and gives us extensive access to research laboratories and scientists in more than 180 countries. We set science in motion to create a better world.

Media Contact 
Allison Hosak
Senior Vice President, Global Communications
Avantor
908-329-7281
Allison.Hosak@Avantorsciences.com

Investor Relations Contact 
Tommy J. Thomas, CPA
Vice President, Investor Relations
Avantor
781-375-8051
Tommy.Thomas@Avantorsciences.com

 

View original content:http://www.prnewswire.com/news-releases/avantor-announces-preliminary-second-quarter-2020-unaudited-revenue-301088911.html

SOURCE Avantor and Financial News

FAQ

What are Avantor's preliminary revenue estimates for Q2 2020?

Avantor estimates Q2 2020 revenue to be between $1.48 billion and $1.49 billion.

What caused the decline in Avantor's revenue for Q2 2020?

The revenue decline was primarily driven by COVID-19-related weakness in Education, Healthcare, and Advanced Technologies markets.

How much is Avantor increasing its revolving credit facility?

Avantor plans to increase its revolving credit facility to $515 million.

When is Avantor's next earnings release call?

Avantor's next earnings release call is scheduled for July 29, 2020.