Catalent, Inc. Reports Fourth Quarter Fiscal 2022 Results
Catalent, Inc. (CTLT) reported a robust Q4'22 net revenue of $1.31 billion, a 10% increase year-over-year, with a 15% growth in constant currency. For FY'22, total net revenue reached $4.83 billion, up 21% as reported. Q4'22 net earnings soared to $188 million, translating to $1.04 per share. Adjusted EBITDA for Q4'22 was $384 million, marking a 10% increase, while FY'22 Adjusted EBITDA hit $1.29 billion, a 26% rise. FY'23 guidance estimates net revenue between $4,975 million and $5,225 million.
- Q4'22 net revenue of $1.31 billion increased 10% YoY.
- FY'22 net revenue reached $4.83 billion, a 21% increase.
- Q4'22 net earnings rose to $188 million, or $1.04 per share.
- FY'22 Adjusted EBITDA was $1.29 billion, up 26%.
- FY'23 guidance estimates net revenue of $4,975-$5,225 million.
- Total debt as of June 30, 2022, was $4.20 billion with a net leverage ratio of 2.9x.
- Unallocated costs in Q4'22 increased by 62% YoY, impacting profitability.
-
Q4'22 net revenue of
increased$1.31 billion 10% as reported, or15% in constant currency, compared to Q4'21. Organic, constant-currency net revenue grew10% , compared to Q4'21. -
Fiscal 2022 net revenue of
increased$4.83 billion 21% as reported, or23% in constant currency, compared to fiscal 2021. Organic, constant-currency net revenue grew20% compared to FY'21. -
Q4'22 net earnings of
and fiscal 2022 net earnings of$188 million .$519 million -
Q4'22 Adjusted EBITDA(1) of
increased$384 million 10% as reported, or16% in constant currency, compared to Q4'21. -
Fiscal 2022 Adjusted EBITDA(1) of
increased$1.29 billion 26% as reported, or28% in constant currency, compared to FY'21. -
FY'23 financial guidance includes net revenue of
to$4,975 million and Adjusted EBITDA of$5,225 million to$1,310 million $1,390 million -
Karen Flynn ,Catalent's retired SVP & Chief Commercial Officer, to join the Board of Directors.
“Our past fiscal year saw record performance and growth for
Fourth Quarter 2022 Consolidated Results
Net revenue of
Net earnings attributable to common shareholders were
EBITDA from operations(1) was
Adjusted Net Income(1) was
Fourth Quarter 2022 Segment Review
Effective
- Biologics - The Biologics segment provides the same services as the segment we reported in fiscal 2022, with some organizational adjustments and the addition of existing analytical development and testing services for large molecules that was previously offered by the Oral and Specialty Delivery segment. The Biologics segment now provides development and manufacturing for biologic proteins; cell, gene, and other nucleic acid therapies; plasmid DNA; iPSCs, and vaccines. It also provides formulation, development, and manufacturing for parenteral dose forms, including vials, prefilled syringes, and cartridges; and, as noted above, analytical development and testing services for large molecules.
-
Pharma and Consumer Health -The Pharma and Consumer Health segment encompasses the offerings of three prior segments - Softgel and Oral Technologies, Oral and Specialty Delivery and Clinical Supply Services - and comprises the Company’s market-leading capabilities for complex oral solids, softgel formulations, Zydis® fast-dissolve technologies, and gummy, soft chew, and lozenge dosage forms; formulation, development, and manufacturing platforms for oral, nasal, inhaled, and topical dose forms; and clinical trial development and supply services.
Results below reflect the Company's prior reporting structure through
(Dollars in millions) |
Three Months Ended
|
|
Constant
|
||||||||
|
2022 |
|
2021 |
|
Change % |
||||||
Biologics |
|
|
|
|
|
||||||
Net revenue |
$ |
667 |
|
|
$ |
603 |
|
|
14 |
% |
|
Segment EBITDA |
|
219 |
|
|
|
186 |
|
|
22 |
% |
|
Segment EBITDA margin |
|
32.8 |
% |
|
|
30.9 |
% |
|
|
||
Softgel and Oral Technologies |
|
|
|
|
|
||||||
Net revenue |
|
350 |
|
|
|
301 |
|
|
22 |
% |
|
Segment EBITDA |
|
98 |
|
|
|
94 |
|
|
9 |
% |
|
Segment EBITDA margin |
|
28.0 |
% |
|
|
31.3 |
% |
|
|
||
Oral and Specialty Delivery |
|
|
|
|
|
||||||
Net revenue |
|
194 |
|
|
|
186 |
|
|
11 |
% |
|
Segment EBITDA |
|
74 |
|
|
|
63 |
|
|
27 |
% |
|
Segment EBITDA margin |
|
37.9 |
% |
|
|
34.4 |
% |
|
|
||
Clinical Supply Services |
|
|
|
|
|
||||||
Net revenue |
|
104 |
|
|
|
105 |
|
|
4 |
% |
|
Segment EBITDA |
|
27 |
|
|
|
31 |
|
|
(2 |
)% |
|
Segment EBITDA margin |
|
26.3 |
% |
|
|
29.0 |
% |
|
|
||
Inter-segment revenue elimination |
|
(2 |
) |
|
|
(7 |
) |
|
48 |
% |
|
Unallocated costs |
|
(75 |
) |
|
|
(48 |
) |
|
62 |
% |
|
Combined totals |
|
|
|
|
|
||||||
Net revenue |
$ |
1,313 |
|
|
$ |
1,188 |
|
|
15 |
% |
|
EBITDA from operations |
$ |
343 |
|
|
$ |
326 |
|
|
11 |
% |
(1) See "Non-GAAP Financial Measures" below and the GAAP to non-GAAP reconciliation provided later in this release. |
Fiscal Year 2022 Segment Review
(Dollars in millions) |
Fiscal Year Ended
|
|
FX Impact |
|
Constant Currency
|
||||||||||||||
|
2022 |
|
2021 |
|
|
|
Change $ |
|
Change % |
||||||||||
Biologics |
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue |
$ |
2,549 |
|
|
$ |
1,928 |
|
|
$ |
(35 |
) |
|
$ |
656 |
|
|
34 |
% |
|
Segment EBITDA |
|
798 |
|
|
|
608 |
|
|
|
(14 |
) |
|
|
204 |
|
|
34 |
% |
|
Segment EBITDA margin |
|
31.3 |
% |
|
|
31.5 |
% |
|
|
|
|
|
|
||||||
Softgel and Oral Technologies |
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue |
|
1,246 |
|
|
|
1,012 |
|
|
|
(32 |
) |
|
|
266 |
|
|
26 |
% |
|
Segment EBITDA (2) |
|
292 |
|
|
|
237 |
|
|
|
(8 |
) |
|
|
63 |
|
|
27 |
% |
|
Segment EBITDA margin (2) |
|
23.4 |
% |
|
|
23.4 |
% |
|
|
|
|
|
|
||||||
Oral and Specialty Delivery |
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue |
|
650 |
|
|
|
686 |
|
|
|
(12 |
) |
|
|
(24 |
) |
|
(3 |
)% |
|
Segment EBITDA |
|
192 |
|
|
|
160 |
|
|
|
(6 |
) |
|
|
38 |
|
|
24 |
% |
|
Segment EBITDA margin |
|
29.5 |
% |
|
|
23.3 |
% |
|
|
|
|
|
|
||||||
Clinical Supply Services |
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue |
|
400 |
|
|
|
391 |
|
|
|
(6 |
) |
|
|
15 |
|
|
4 |
% |
|
Segment EBITDA |
|
110 |
|
|
|
108 |
|
|
|
(3 |
) |
|
|
5 |
|
|
5 |
% |
|
Segment EBITDA margin |
|
27.6 |
% |
|
|
27.6 |
% |
|
|
|
|
|
|
||||||
Inter-segment revenue elimination |
|
(17 |
) |
|
|
(19 |
) |
|
|
1 |
|
|
|
1 |
|
|
3 |
% |
|
Unallocated Costs |
|
(286 |
) |
|
|
1 |
|
|
|
5 |
|
|
|
(292 |
) |
|
* |
||
Combined totals |
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue |
$ |
4,828 |
|
|
$ |
3,998 |
|
|
$ |
(84 |
) |
|
$ |
914 |
|
|
23 |
% |
|
EBITDA from operations |
$ |
1,106 |
|
|
$ |
1,114 |
|
|
$ |
(26 |
) |
|
$ |
18 |
|
|
2 |
% |
(2) SOT Segment EBITDA and Segment EBITDA margin for the fiscal year ended |
Biologics segment |
2022 vs. 2021 |
|
2022 vs. 2021 |
|||||||||
Year-Over-Year Change |
Three Months Ended
|
|
Fiscal Year Ended
|
|||||||||
|
Net Revenue |
|
Segment
|
|
Net Revenue |
|
Segment
|
|||||
Organic |
14 |
% |
|
23 |
% |
|
34 |
% |
|
35 |
% |
|
Impact of acquisitions |
— |
% |
|
(1 |
)% |
|
— |
% |
|
(1 |
)% |
|
Constant-currency change |
14 |
% |
|
22 |
% |
|
34 |
% |
|
34 |
% |
|
Foreign exchange translation impact on reporting |
(3 |
)% |
|
(5 |
)% |
|
(2 |
)% |
|
(2 |
)% |
|
Total % change |
11 |
% |
|
17 |
% |
|
32 |
% |
|
32 |
% |
Softgel and Oral Technologies segment |
2022 vs. 2021 |
|
2022 vs. 2021 |
|||||||||
Year-Over-Year Change |
Three Months Ended
|
|
Fiscal Year Ended
|
|||||||||
|
Net Revenue |
|
Segment
|
|
Net Revenue |
|
Segment
|
|||||
Organic |
4 |
% |
|
(4 |
)% |
|
10 |
% |
|
12 |
% |
|
Impact of acquisitions (3) |
18 |
% |
|
13 |
% |
|
16 |
% |
|
15 |
% |
|
Constant-currency change |
22 |
% |
|
9 |
% |
|
26 |
% |
|
27 |
% |
|
Foreign currency translation impact on reporting |
(6 |
)% |
|
(5 |
)% |
|
(3 |
)% |
|
(4 |
)% |
|
Total % change |
16 |
% |
|
4 |
% |
|
23 |
% |
|
23 |
% |
(3) Segment EBITDA for the fiscal year ended |
Oral and Specialty Delivery segment |
2022 vs. 2021 |
|
2022 vs. 2021 |
|||||||||
Year-Over-Year Change |
Three Months Ended
|
|
Fiscal Year Ended
|
|||||||||
|
Net Revenue |
|
Segment
|
|
Net Revenue |
|
Segment
|
|||||
Organic |
11 |
% |
|
27 |
% |
|
6 |
% |
|
43 |
% |
|
Impact of acquisitions |
— |
% |
|
— |
% |
|
1 |
% |
|
(7 |
)% |
|
Impact of divestitures |
— |
% |
|
— |
% |
|
(10 |
)% |
|
(12 |
)% |
|
Constant-currency change |
11 |
% |
|
27 |
% |
|
(3 |
)% |
|
24 |
% |
|
Foreign currency translation impact on reporting |
(6 |
)% |
|
(11 |
)% |
|
(2 |
)% |
|
(4 |
)% |
|
Total % change |
5 |
% |
|
16 |
% |
|
(5 |
)% |
|
20 |
% |
Clinical Supply Services segment |
2022 vs. 2021 |
|
2022 vs. 2021 |
|||||||||
Year-Over-Year Change |
Three Months Ended
|
|
Fiscal Year Ended
|
|||||||||
|
Net Revenue |
|
Segment
|
|
Net Revenue |
|
Segment
|
|||||
Organic |
4 |
% |
|
(2 |
)% |
|
4 |
% |
|
5 |
% |
|
Constant-currency change |
4 |
% |
|
(2 |
)% |
|
4 |
% |
|
5 |
% |
|
Foreign currency translation impact on reporting |
(5 |
)% |
|
(8 |
)% |
|
(2 |
)% |
|
(3 |
)% |
|
Total % change |
(1 |
)% |
|
(10 |
)% |
|
2 |
% |
|
2 |
% |
Segment Net Revenue as a % of Total Net Revenue
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
Biologics |
51 |
% |
|
55 |
% |
|
52 |
% |
|
53 |
% |
|
50 |
% |
|
Softgel and Oral Technologies |
26 |
% |
|
25 |
% |
|
27 |
% |
|
24 |
% |
|
25 |
% |
|
Oral and Specialty Delivery |
15 |
% |
|
12 |
% |
|
13 |
% |
|
14 |
% |
|
16 |
% |
|
Clinical Supply Services |
8 |
% |
|
8 |
% |
|
8 |
% |
|
9 |
% |
|
9 |
% |
|
Net Revenue |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
Balance Sheet and Liquidity
As of
Catalent’s net leverage ratio(1) as of
Fiscal Year 2023 Outlook
|
FY'23 Initial Full Year Guidance |
Net revenue |
|
Adjusted EBITDA |
|
Adjusted net income |
|
Weighted average shares outstanding - diluted |
181 million - 183 million |
Board Member Appointment
On
Earnings Webcast
The Company’s management will host a webcast to discuss the results at
About
With broad and deep scale and expertise in development sciences, delivery technologies, and multi-modality manufacturing,
Catalent’s expert workforce exceeds 19,000, including more than 2,500 scientists and technicians. Headquartered in
(1) See "Non-GAAP Financial Measures" below and the GAAP to non-GAAP reconciliation provided later in this release. |
Non-GAAP Financial Measures
Use of EBITDA from operations, Adjusted EBITDA, Adjusted Net Income and Segment EBITDA
Management measures operating performance based on consolidated earnings from operations before interest expense, expense (benefit) for income taxes, and depreciation and amortization, adjusted for the income or loss attributable to non-controlling interests (“EBITDA from operations”). EBITDA from operations is not defined under
In addition, given the significant investments that
Management also measures operating performance based on Adjusted Net Income and Adjusted Net Income per share. Adjusted Net Income is not defined under
The most directly comparable
Use of Constant Currency
As changes in exchange rates are an important factor in understanding period-to-period comparisons,
Forward-Looking Statements
This release contains both historical and forward-looking statements. All statements other than statements of historical fact, are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by the use of statements that include phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “predict,” “hope,” “foresee,” “likely,” “may,” “could,” “target,” “will,” “would,” or other words or phrases with similar meanings. Similarly, statements that describe Catalent’s objectives, plans, or goals are, or may be, forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Catalent’s expectations and projections. Some of the factors that could cause actual results to differ include, but are not limited to, the following: the current or future effects of the COVID-19 pandemic or any global health developments on
More products. Better treatments. Reliably supplied.™
|
||||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||||
(Unaudited; dollars and shares in millions, except per share data) |
||||||||||||||||||
|
Three Months Ended
|
|
FX Impact |
|
Constant Currency
|
|||||||||||||
|
2022 |
|
2021 |
|
|
|
Change $ |
|
Change % |
|||||||||
Net revenue |
$ |
1,313 |
|
$ |
1,188 |
|
|
$ |
(54 |
) |
|
$ |
179 |
|
|
15 |
% |
|
Cost of sales |
|
825 |
|
|
749 |
|
|
|
(29 |
) |
|
|
105 |
|
|
14 |
% |
|
Gross margin |
|
488 |
|
|
439 |
|
|
|
(25 |
) |
|
|
74 |
|
|
17 |
% |
|
Selling, general, and administrative expenses |
|
226 |
|
|
184 |
|
|
|
(4 |
) |
|
|
46 |
|
|
26 |
% |
|
Loss on sale of subsidiary |
|
— |
|
|
2 |
|
|
|
— |
|
|
|
(2 |
) |
|
* |
||
Other operating expense |
|
16 |
|
|
2 |
|
|
|
— |
|
|
|
14 |
|
|
485 |
% |
|
Operating earnings |
|
246 |
|
|
251 |
|
|
|
(21 |
) |
|
|
16 |
|
|
6 |
% |
|
Interest expense, net |
|
32 |
|
|
32 |
|
|
|
(1 |
) |
|
|
1 |
|
|
1 |
% |
|
Other expense (income), net |
|
3 |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
8 |
|
|
(328 |
)% |
|
Earnings before income taxes |
|
211 |
|
|
221 |
|
|
|
(17 |
) |
|
|
7 |
|
|
3 |
% |
|
Income tax expense |
|
23 |
|
|
39 |
|
|
|
(5 |
) |
|
|
(11 |
) |
|
(28 |
)% |
|
Net earnings |
$ |
188 |
|
$ |
182 |
|
|
$ |
(12 |
) |
|
$ |
18 |
|
|
10 |
% |
|
Less: Net earnings attributable to preferred shareholders |
|
— |
|
|
(15 |
) |
|
|
|
|
|
|
||||||
Net earnings attributable to common shareholders |
$ |
188 |
|
$ |
167 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding - basic |
|
180 |
|
|
171 |
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding - diluted |
|
181 |
|
|
172 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|||||||||
Basic |
|
|
|
|
|
|
|
|
|
|||||||||
Net earnings |
$ |
1.04 |
|
$ |
0.98 |
|
|
|
|
|
|
|
||||||
Diluted |
|
|
|
|
|
|
|
|
|
|||||||||
Net earnings |
$ |
1.04 |
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|||||||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||||||
(Unaudited; dollars and shares in millions, except per share data) |
|||||||||||||||||||
|
Fiscal Year Ended
|
|
FX impact |
|
Constant Currency
|
||||||||||||||
|
2022 |
|
2021 |
|
|
|
Change $ |
|
Change % |
||||||||||
Net revenue |
$ |
4,828 |
|
|
$ |
3,998 |
|
|
$ |
(84 |
) |
|
$ |
914 |
|
|
23 |
% |
|
Cost of sales |
|
3,188 |
|
|
|
2,646 |
|
|
|
(48 |
) |
|
|
590 |
|
|
22 |
% |
|
Gross margin |
|
1,640 |
|
|
|
1,352 |
|
|
|
(36 |
) |
|
|
324 |
|
|
24 |
% |
|
Selling, general and administrative expenses |
|
844 |
|
|
|
687 |
|
|
|
(6 |
) |
|
|
163 |
|
|
24 |
% |
|
Gain on sale of subsidiary |
|
(1 |
) |
|
|
(182 |
) |
|
|
— |
|
|
|
181 |
|
|
(99 |
)% |
|
Other operating expense |
|
41 |
|
|
|
19 |
|
|
|
(1 |
) |
|
|
23 |
|
|
110 |
% |
|
Operating earnings |
|
756 |
|
|
|
828 |
|
|
|
(29 |
) |
|
|
(43 |
) |
|
(5 |
)% |
|
Interest expense, net |
|
123 |
|
|
|
110 |
|
|
|
(1 |
) |
|
|
14 |
|
|
12 |
% |
|
Other expense, net |
|
28 |
|
|
|
3 |
|
|
|
(7 |
) |
|
|
32 |
|
|
1227 |
% |
|
Earnings before taxes |
|
605 |
|
|
|
715 |
|
|
|
(21 |
) |
|
|
(89 |
) |
|
(12 |
)% |
|
Income tax expense |
|
86 |
|
|
|
130 |
|
|
|
(6 |
) |
|
|
(38 |
) |
|
(30 |
)% |
|
Net earnings |
$ |
519 |
|
|
$ |
585 |
|
|
$ |
(15 |
) |
|
$ |
(51 |
) |
|
(9 |
)% |
|
Less: Net earnings attributable to preferred shareholders |
|
(16 |
) |
|
|
(56 |
) |
|
|
|
|
|
|
||||||
Net earnings attributable to common shareholders |
$ |
503 |
|
|
$ |
529 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding - basic |
|
176 |
|
|
|
168 |
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding - diluted |
|
178 |
|
|
|
170 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings |
$ |
2.85 |
|
|
$ |
3.15 |
|
|
|
|
|
|
|
||||||
Diluted |
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings |
$ |
2.84 |
|
|
$ |
3.11 |
|
|
|
|
|
|
|
|
||||||
Condensed Consolidated Balance Sheets |
||||||
(Unaudited; dollars in millions) |
||||||
|
|
|
|
|||
ASSETS |
|
|
|
|||
Current assets: |
|
|
|
|||
Cash and cash equivalents |
$ |
449 |
|
$ |
896 |
|
Trade receivables, net |
|
1,051 |
|
|
1,012 |
|
Inventories |
|
702 |
|
|
563 |
|
Prepaid expenses and other |
|
658 |
|
|
376 |
|
Marketable securities |
|
89 |
|
|
71 |
|
Total current assets |
|
2,949 |
|
|
2,918 |
|
Property, plant, and equipment, net |
|
3,127 |
|
|
2,524 |
|
Other non-current assets, including intangible assets |
|
4,431 |
|
|
3,670 |
|
Total assets |
$ |
10,507 |
|
$ |
9,112 |
|
|
|
|
|
|||
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND SHAREHOLDERS' EQUITY |
||||||
Current liabilities: |
|
|
|
|||
Current portion of long-term obligations and other short-term borrowings |
$ |
31 |
|
$ |
75 |
|
Accounts payable |
|
421 |
|
|
385 |
|
Other accrued liabilities |
|
620 |
|
|
736 |
|
Total current liabilities |
|
1,072 |
|
|
1,196 |
|
Long-term obligations, less current portion |
|
4,171 |
|
|
3,166 |
|
Other non-current liabilities |
|
469 |
|
|
476 |
|
Redeemable preferred stock |
|
— |
|
|
359 |
|
Total shareholders' equity |
|
4,795 |
|
|
3,915 |
|
Total liabilities, redeemable preferred stock, and shareholders' equity |
$ |
10,507 |
|
$ |
9,112 |
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(Unaudited; dollars in millions) |
||||||||
|
Fiscal Year Ended
|
|||||||
|
2022 |
|
2021 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||
Net cash provided by operating activities |
$ |
439 |
|
|
$ |
433 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||
Acquisition of property, equipment, and other productive assets |
|
(660 |
) |
|
|
(686 |
) |
|
Purchases of marketable securities |
|
(20 |
) |
|
|
(72 |
) |
|
(Settlement on) proceeds from sale of subsidiaries, net |
|
(3 |
) |
|
|
287 |
|
|
Payment for acquisitions, net of cash acquired |
|
(1,199 |
) |
|
|
(147 |
) |
|
Payments for investments |
|
(2 |
) |
|
|
(31 |
) |
|
Net cash used in investing activities |
|
(1,884 |
) |
|
|
(649 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||
Proceeds from borrowing, net |
|
1,100 |
|
|
|
166 |
|
|
Payments related to long-term obligations |
|
(78 |
) |
|
|
(67 |
) |
|
Financing fees paid |
|
(15 |
) |
|
|
(19 |
) |
|
Dividends paid |
|
(4 |
) |
|
|
(22 |
) |
|
Proceeds from sale of common stock, net |
|
— |
|
|
|
82 |
|
|
Cash paid, in lieu of equity, for tax withholding obligations |
|
(10 |
) |
|
|
(46 |
) |
|
Exercise of stock options |
|
26 |
|
|
|
38 |
|
|
Other financing activities |
|
12 |
|
|
|
10 |
|
|
Net cash provided by financing activities |
|
1,031 |
|
|
|
142 |
|
|
Effect of foreign currency exchange on cash and cash equivalents |
|
(33 |
) |
|
|
17 |
|
|
|
|
(447 |
) |
|
|
(57 |
) |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
896 |
|
|
|
953 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
449 |
|
|
$ |
896 |
|
|
|||||||||||||||||||
Reconciliation of Net Earnings to EBITDA from Operations and Adjusted EBITDA* |
|||||||||||||||||||
(Unaudited; dollars in millions) |
|||||||||||||||||||
|
Three months ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings |
$ |
182 |
|
|
$ |
93 |
|
|
$ |
97 |
|
$ |
141 |
|
|
$ |
188 |
|
|
Interest expense, net |
|
32 |
|
|
|
26 |
|
|
|
32 |
|
|
33 |
|
|
|
32 |
|
|
Income tax expense |
|
39 |
|
|
|
10 |
|
|
|
18 |
|
|
35 |
|
|
|
23 |
|
|
Depreciation and amortization |
|
73 |
|
|
|
81 |
|
|
|
98 |
|
|
99 |
|
|
|
100 |
|
|
EBITDA from operations |
|
326 |
|
|
|
210 |
|
|
|
245 |
|
|
308 |
|
|
|
343 |
|
|
Stock-based compensation |
|
13 |
|
|
|
21 |
|
|
|
11 |
|
|
10 |
|
|
|
12 |
|
|
Impairment charges and gain/loss on sale of assets |
|
1 |
|
|
|
3 |
|
|
|
16 |
|
|
2 |
|
|
|
10 |
|
|
Financing-related expenses |
|
1 |
|
|
|
4 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
Restructuring costs |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
3 |
|
|
|
5 |
|
|
Acquisition, integration, and other special items |
|
7 |
|
|
|
7 |
|
|
|
22 |
|
|
9 |
|
|
|
8 |
|
|
Loss (gain) on sale of subsidiary |
|
2 |
|
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
Foreign exchange (gain) loss |
|
(2 |
) |
|
|
9 |
|
|
|
15 |
|
|
1 |
|
|
|
6 |
|
|
Inventory fair value step-up charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
7 |
|
|
|
— |
|
|
Other adjustments |
|
(1 |
) |
|
|
(2 |
) |
|
|
— |
|
|
(1 |
) |
|
|
— |
|
|
Adjusted EBITDA |
$ |
348 |
|
|
$ |
252 |
|
|
$ |
310 |
|
$ |
339 |
|
|
$ |
384 |
|
|
Favorable (unfavorable) FX impact |
|
|
|
|
|
|
|
|
|
(19 |
) |
||||||||
Adjusted EBITDA at constant currency |
|
|
|
|
|
|
|
|
$ |
403 |
|
* Refer to |
|
||||||||||||||||||||
Reconciliation of Net Earnings to Adjusted Net Income* |
||||||||||||||||||||
(Unaudited; dollars in millions, except per share data) |
||||||||||||||||||||
|
Three months ended |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net earnings |
$ |
182 |
|
|
$ |
93 |
|
|
$ |
97 |
|
|
$ |
141 |
|
|
$ |
188 |
|
|
Amortization (1) |
|
24 |
|
|
|
23 |
|
|
|
34 |
|
|
|
33 |
|
|
|
33 |
|
|
Stock-based compensation |
|
13 |
|
|
|
21 |
|
|
|
11 |
|
|
|
10 |
|
|
|
12 |
|
|
Impairment charges and gain/loss on sale of assets (2) |
|
1 |
|
|
|
3 |
|
|
|
16 |
|
|
|
2 |
|
|
|
10 |
|
|
Financing-related expenses |
|
1 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Restructuring costs |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
5 |
|
|
Acquisition, integration, and other special items |
|
7 |
|
|
|
7 |
|
|
|
22 |
|
|
|
9 |
|
|
|
8 |
|
|
Loss (gain) on sale of subsidiary (3) |
|
2 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Foreign exchange (gain) loss |
|
(2 |
) |
|
|
9 |
|
|
|
15 |
|
|
|
1 |
|
|
|
6 |
|
|
Inventory fair value step-up charges (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
Other adjustments (5) |
|
(1 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
Estimated tax effect of adjustments (6) |
|
40 |
|
|
|
(15 |
) |
|
|
(24 |
) |
|
|
(15 |
) |
|
|
(18 |
) |
|
Discrete income tax benefit items (7) |
|
(59 |
) |
|
|
(15 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
|
(28 |
) |
|
Adjusted net income (ANI) |
$ |
209 |
|
|
$ |
128 |
|
|
$ |
163 |
|
|
$ |
188 |
|
|
$ |
215 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding - basic |
|
171 |
|
|
|
|
|
|
|
|
|
180 |
|
|||||||
Weighted average shares outstanding - diluted |
|
172 |
|
|
|
|
|
|
|
|
|
181 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
Net earnings per share - basic |
$ |
0.98 |
|
|
|
|
|
|
|
|
$ |
1.04 |
|
|||||||
Net earnings per share - diluted |
$ |
0.97 |
|
|
|
|
|
|
|
|
$ |
1.04 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
ANI per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
ANI per share - basic |
$ |
1.22 |
|
|
|
|
|
|
|
|
$ |
1.20 |
|
|||||||
ANI per share - diluted (8) |
$ |
1.16 |
|
|
|
|
|
|
|
|
$ |
1.19 |
|
* Refer to |
|
(1) |
Represents the amortization attributable to purchase accounting for previously completed business combinations. |
(2) |
For the three months ended |
(3) |
Represents the (gain) loss on sale of subsidiary associated with the 2021 divestiture of |
(4) |
Represents a one-time non-cash inventory fair value adjustment of |
(5) |
Represents unrealized gains related to the fair value of the derivative liability associated with |
(6) |
The tax effect of adjustments to Adjusted Net Income is computed by applying the statutory tax rate in the jurisdictions to the income or expense items that are adjusted in the period presented; if a valuation allowance exists, the rate applied is zero. |
(7) |
Discrete period income tax expense (benefit) items are unusual or infrequently occurring items, primarily including: changes in judgment related to the realizability of deferred tax assets in future years, changes in measurement of a prior-year tax position, deferred tax impact of changes in tax law, and purchase accounting. |
(8) |
For the three months ended |
|
||||||||||||||||
Reconciliation of Segment EBITDA to Net Earnings |
||||||||||||||||
(Unaudited; dollars in millions, except per share data) |
||||||||||||||||
|
Three Months Ended
|
|
Fiscal Year Ended
|
|||||||||||||
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||
Biologics |
$ |
219 |
|
|
$ |
186 |
|
|
$ |
798 |
|
|
$ |
608 |
|
|
Softgel and Oral Technologies |
|
98 |
|
|
|
94 |
|
|
|
292 |
|
|
|
237 |
|
|
Oral and Specialty Delivery |
|
74 |
|
|
|
63 |
|
|
|
192 |
|
|
|
160 |
|
|
Clinical Supply Services |
|
27 |
|
|
|
31 |
|
|
|
110 |
|
|
|
108 |
|
|
Sub-Total |
$ |
418 |
|
|
$ |
374 |
|
|
$ |
1,392 |
|
|
$ |
1,113 |
|
|
Reconciling items to net earnings |
|
|
|
|
|
|
|
|||||||||
Unallocated costs (1) |
|
(75 |
) |
|
|
(48 |
) |
|
|
(286 |
) |
|
|
1 |
|
|
Depreciation and amortization |
|
(100 |
) |
|
|
(73 |
) |
|
|
(378 |
) |
|
|
(289 |
) |
|
Interest expense, net |
|
(32 |
) |
|
|
(32 |
) |
|
|
(123 |
) |
|
|
(110 |
) |
|
Income tax expense |
|
(23 |
) |
|
|
(39 |
) |
|
|
(86 |
) |
|
|
(130 |
) |
|
Net earnings |
$ |
188 |
|
|
$ |
182 |
|
|
$ |
519 |
|
|
$ |
585 |
|
(1) |
Unallocated costs include restructuring and special items, stock-based compensation, impairment charges, gain/loss on sale of subsidiary, certain other corporate directed costs, and other costs that are not allocated to the segments. |
|
|||||||||||||||
Calculation of Net Leverage Ratio |
|||||||||||||||
(Unaudited; dollars in millions) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
Total Secured Debt |
$ |
989 |
|
$ |
1,435 |
|
$ |
1,431 |
|
$ |
1,428 |
|
$ |
1,424 |
|
Total Unsecured Debt |
|
2,252 |
|
|
2,869 |
|
|
2,789 |
|
|
2,758 |
|
|
2,778 |
|
Total Debt |
|
3,241 |
|
|
4,304 |
|
|
4,220 |
|
|
4,186 |
|
|
4,202 |
|
Cash and Cash Equivalents |
|
896 |
|
|
971 |
|
|
849 |
|
|
786 |
|
|
449 |
|
|
|
71 |
|
|
50 |
|
|
66 |
|
|
94 |
|
|
89 |
|
Total Net Debt |
|
2,274 |
|
|
3,283 |
|
|
3,305 |
|
|
3,306 |
|
|
3,664 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
||||||
Q1 2021 |
|
174 |
|
|
|
|
|
|
|
|
|||||
Q2 2021 |
|
224 |
|
|
224 |
|
|
|
|
|
|
||||
Q3 2021 |
|
274 |
|
|
274 |
|
|
274 |
|
|
|
|
|||
Q4 2021 |
|
348 |
|
|
348 |
|
|
348 |
|
|
348 |
|
|
||
Q1 2022 |
|
|
|
252 |
|
|
252 |
|
|
252 |
|
|
252 |
||
Q2 2022 |
|
|
|
|
|
310 |
|
|
310 |
|
|
310 |
|||
Q3 2022 |
|
|
|
|
|
|
|
339 |
|
|
339 |
||||
Q4 2022 |
|
|
|
|
|
|
|
|
|
384 |
|||||
LTM Adjusted EBITDA |
$ |
1,020 |
|
$ |
1,098 |
|
$ |
1,184 |
|
$ |
1,249 |
|
$ |
1,285 |
|
|
0.0x |
|
0.4x |
|
0.4x |
|
0.4x |
|
0.7x |
||||||
Net Debt / Adj. EBITDA |
2.2x |
|
3.0x |
|
2.8x |
|
2.6x |
|
2.9x |
(1) Assumes Bettera acquisition closed on |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220829005095/en/
Investors:
732-537-6325
investors@catalent.com
Source:
FAQ
What were Catalent's Q4'22 earnings results?
How did Catalent perform in fiscal year 2022?
What is Catalent's guidance for fiscal year 2023?
What was Catalent's Adjusted EBITDA for Q4'22?