Catalent, Inc. Reports Preliminary First Quarter Fiscal 2024 Results and Reaffirms Full-Year Fiscal 2024 Guidance
- Catalent's solid internal pipeline and Q1 financial performance support the reiteration of the full-year guidance, indicating confidence in the company's strategy and operations.
- The 8% decrease in organic, constant-currency net revenue compared to Q1'23 and the significant non-cash goodwill impairment charges of $700 million in Q1'24 are negative aspects of the report.
-
Q1'24 net revenue of
$982 million 4% as reported, or6% in constant currency(1), compared to Q1'23. Organic, constant-currency net revenue decreased by8% , compared to Q1'23.
-
Q1'24 net revenue, excluding COVID revenue of
~ in Q1’23 and$185 million ~ in Q1’24, increased$100 million 5% compared to Q1'23.
-
Q1'24 net loss of
$(715) million $700 million
-
Q1'24 Adjusted EBITDA(1) of
$115 million 38% as reported, or39% in constant currency, compared to Q1'23.
-
Reaffirming FY'24 financial guidance range, which includes net revenue of
$4.3 billion $4.5 billion $680 million $760 million
(1) See "Non-GAAP Financial Measures" below and the GAAP to non-GAAP reconciliation provided later in this release.
“As Catalent continues to execute our strategy to enhance value for our stakeholders, the strength of our internal pipeline and our solid first quarter financial performance give us the confidence to reiterate our guidance for the full year,” said Alessandro Maselli, President and Chief Executive Officer of Catalent, Inc. “We continue to make strides towards improving our operations and bringing our performance back to pre-COVID levels. We remain the partner of choice for our customers’ most complex manufacturing needs and continue to work to complete strategic capital investments that will address the surging demand from patients in high-growth areas, including capacity for sterile pre-filled syringes.”
First Quarter 2024 Consolidated Results
Net revenue of
Net loss and loss per basic and diluted share was
EBITDA (loss) from operations(1) was
Adjusted Net Loss(1) was
(1) |
See "Non-GAAP Financial Measures" below and the GAAP to non-GAAP reconciliation provided later in this release. |
First Quarter 2024 Segment Review
(Dollars in millions) |
Three Months Ended September 30, |
|
Constant Currency |
||||||||
|
2023(3) |
|
2022 |
|
Change % |
||||||
Biologics |
|
|
|
|
|
||||||
Net revenue |
$ |
447 |
|
|
$ |
523 |
|
|
(16 |
)% |
|
Segment EBITDA |
|
52 |
|
|
|
113 |
|
|
(54 |
)% |
|
Segment EBITDA margin |
|
11.6 |
% |
|
|
21.5 |
% |
|
|
||
Pharma and Consumer Health |
|
|
|
|
|
||||||
Net revenue |
|
535 |
|
|
|
499 |
|
|
5 |
% |
|
Segment EBITDA |
|
101 |
|
|
|
108 |
|
|
(9 |
)% |
|
Segment EBITDA margin |
|
18.9 |
% |
|
|
21.7 |
% |
|
|
||
Unallocated costs (2) |
|
(789 |
) |
|
|
(87 |
) |
|
* |
||
Combined totals |
|
|
|
|
|
||||||
Net revenue |
$ |
982 |
|
|
$ |
1,022 |
|
|
(6 |
)% |
|
EBITDA (loss) from operations |
$ |
(636 |
) |
|
$ |
134 |
|
|
* |
||
(2) |
For the three months ended September 30, 2023, unallocated costs include |
|
(3) |
Represents preliminary results. |
|
* |
Not meaningful |
Biologics segment |
2023 vs. 2022 |
|||||
Year-Over-Year Change |
Three Months Ended September 30, |
|||||
|
Net Revenue |
|
Segment EBITDA |
|||
Organic |
(16 |
)% |
|
(54 |
)% |
|
Constant-currency change |
(16 |
)% |
|
(54 |
)% |
|
Foreign exchange translation impact on reporting |
1 |
% |
|
— |
% |
|
Total % change |
(15 |
)% |
|
(54 |
)% |
|
Pharma and Consumer Health segment |
2023 vs. 2022 |
|||||
Year-Over-Year Change |
Three Months Ended September 30, |
|||||
|
Net Revenue |
|
Segment EBITDA |
|||
Organic |
(1 |
)% |
|
(19 |
)% |
|
Impact of acquisitions |
6 |
% |
|
10 |
% |
|
Constant-currency change |
5 |
% |
|
(9 |
)% |
|
Foreign currency translation impact on reporting |
2 |
% |
|
3 |
% |
|
Total % change |
7 |
% |
|
(6 |
)% |
|
Segment Net Revenue as a % of Total Net Revenue |
|||||||||||||||
|
Three Months Ended |
||||||||||||||
|
September 30, 2023* |
|
June 30, 2023* |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
||||||
Biologics |
46 |
% |
|
38 |
% |
|
46 |
% |
|
50 |
% |
|
51 |
% |
|
Pharma and Consumer Health |
54 |
% |
|
62 |
% |
|
54 |
% |
|
50 |
% |
|
49 |
% |
|
Net Revenue |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
*Represents preliminary results. |
Balance Sheet and Liquidity
As of September 30, 2023, Catalent had
Catalent's ratio of First Lien Debt over LTM Adjusted EBITDA was 3.4x at September 30, 2023. Catalent's senior secured credit agreement requires that this ratio remain below 6.5x.
Catalent’s net leverage ratio(1) as of September 30, 2023 was 7.4x, compared to 6.4x at June 30, 2023 and 3.2x as of September 30, 2022.
(1) |
See "Non-GAAP Financial Measures" below and the GAAP to non-GAAP reconciliation provided later in this release. |
Fiscal Year 2024 Outlook
Management is reaffirming its previously issued financial guidance for Fiscal Year 2024.
|
FY'24 Full-Year Guidance |
Net revenue |
|
Adjusted EBITDA |
|
Adjusted net income |
|
Weighted average shares outstanding - diluted |
181 million - 183 million |
Earnings Webcast
The Company’s management will host a webcast to discuss the results at 8:15 a.m. ET today. Catalent invites all interested parties to listen to the webcast, which will be accessible through Catalent’s website at http://investor.catalent.com. A supplemental slide presentation will also be available in the “Investors” section of Catalent’s website prior to the start of the webcast. The webcast replay, along with the supplemental slides, will be available for 90 days in the “Investors” section of Catalent’s website at www.catalent.com.
About Catalent, Inc.
Catalent, Inc. (NYSE: CTLT), is the global leader in enabling pharma, biotech, and consumer health partners to optimize product development, launch, and full life-cycle supply for patients around the world. With broad and deep scale and expertise in development sciences, delivery technologies, and multi-modality manufacturing, Catalent is a preferred industry partner for personalized medicines, consumer health brand extensions, and blockbuster drugs. Catalent helps accelerate over 1,500 partner programs and launch over 150 new products every year. Its flexible manufacturing platforms at over 50 global sites supply approximately 70 billion doses of nearly 8,000 products annually. Catalent’s expert workforce of nearly 18,000 includes more than 3,000 scientists and technicians. Headquartered in
Annual Report on Form 10-K and Quarterly Report on Form 10-Q
On November 13, 2023, the Company filed with the Securities and Exchange Commission (“SEC”) a Notification of Late Filing on Form 12b-25, as it determined it would be unable to file its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 (the “Form 10-Q”) by its original due date of November 9, 2023, and did not expect to file the Form 10-Q on or before the expiration of the five calendar day extension period provided in Rule 12b-25 of the Securities Exchange Act of 1934, as amended. The Company continues to dedicate significant resources to the completion of procedures related to management’s assessment of the effectiveness of its internal controls over financial reporting as of June 30, 2023 and other closing procedures related to the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “2023 Form 10-K”). The Company also requires additional time to complete its procedures related to management’s assessment of the measurement and timing of the non-cash goodwill impairment discussed herein, and other closing procedures related to the Form 10-Q. The Company is working diligently to complete the necessary work to file the 2023 Form 10-K and currently expects to file the Form 10-Q promptly following the filing of the 2023 Form 10-K.
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
Catalent believes that the presentation of EBITDA from operations enhances an investor’s understanding of its financial performance. Catalent believes this measure is a useful financial metric to assess its operating performance across periods by excluding certain items that it believes are not representative of its core business and uses this measure for business planning purposes.
In addition, given the significant investments that Catalent has made in the past in property, plant and equipment, depreciation and amortization expenses represent a meaningful portion of its cost structure. Catalent believes that EBITDA from operations will provide investors with a useful tool for assessing the comparability between periods of Catalent's ability to generate cash from operations sufficient to pay taxes, to service debt and to undertake capital expenditures because it eliminates depreciation and amortization expense. Catalent presents EBITDA from operations in order to provide supplemental information that it considers relevant for the readers of its consolidated financial statements, and such information is not meant to replace or supersede
Catalent evaluates the performance of its segments based on segment earnings before non-controlling interest, other (income) expense, impairments, restructuring costs, interest expense, income tax expense (benefit), and depreciation and amortization (“segment EBITDA”). Moreover, under Catalent’s credit agreement, its ability to engage in certain activities, such as incurring certain additional indebtedness, making certain investments and paying certain dividends, is tied to ratios based on Adjusted EBITDA, which is not defined under
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
Catalent does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable
Use of Constant Currency
As changes in exchange rates are an important factor in understanding period-to-period comparisons, Catalent believes the presentation of results on a constant-currency basis in addition to reported results helps improve investors’ ability to understand its operating results and evaluate its performance in comparison to prior periods. Constant-currency information compares results between periods as if exchange rates had remained constant period over period. Catalent uses results on a constant-currency basis as one measure to evaluate its performance. Catalent calculates constant currency by calculating current-year results using prior-year foreign currency exchange rates. Catalent generally refers to such amounts calculated on a constant-currency basis as excluding the impact of foreign exchange or being on a constant-currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with
Forward-Looking Statements
This release contains both historical and forward-looking statements and guidance. 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, projections, and guidance. Some of the factors that could cause actual results to differ include, but are not limited to, the following: the finalization of Catalent’s fiscal 2023 and first quarter fiscal 2024 financial statements, the completion of Catalent’s closing procedures, including without limitation its evaluation of the effectiveness of its internal controls over financial reporting, Catalent’s first quarter fiscal 2024 final results differing materially from the preliminary results set forth herein, the final timing of filing Catalent’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023 and the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 with the SEC; Catalent’s ability to resolve productivity issues at three of its manufacturing facilities, the impact of such issues on product made at these facilities, the timing of recovering unproduced batches and resumption of normal activities at these facilities, and the impact of such issues on Catalent’s results of operations and financial condition; the declining demand for various vaccines and treatments for the SARS-Co-V-2 strain of coronavirus and its variants (“COVID-19”) from both patients and governments around the world may affect sales of the COVID-19 products Catalent manufactures; participation in a highly competitive market and increased competition that may adversely affect Catalent’s business; demand for its offerings, which depends in part on its customers’ research and development and the clinical and market success of their products; product and other liability risks that could adversely affect Catalent’s results of operations, financial condition, liquidity and cash flows; failure to comply with existing and future regulatory requirements; failure to provide quality offerings to customers could have an adverse effect on Catalent’s business and subject it to regulatory actions and costly litigation; problems providing the highly exacting and complex services or support required; global economic, political and regulatory risks to Catalent’s operations, including risks from inflation, disruptions to global supply chains, or from the Ukrainian-Russian war; inability to enhance existing or introduce new technology or service offerings in a timely manner; inadequate patents, copyrights, trademarks and other forms of intellectual property protections; fluctuations in the costs, availability, and suitability of the components of the products Catalent manufactures, including active pharmaceutical ingredients, excipients, purchased components and raw materials; changes in market access or healthcare reimbursement in
More products. Better treatments. Reliably supplied.™
Catalent, Inc. Consolidated Statements of Operations (Unaudited; dollars and shares in millions, except per share data) |
||||||||||||||||||
|
Three Months Ended September 30, |
|
FX Impact |
|
Constant Currency Increase (Decrease) |
|||||||||||||
|
2023(1) |
|
2022 |
|
|
|
Change $ |
|
Change % |
|||||||||
Net revenue |
$ |
982 |
|
|
$ |
1,022 |
|
$ |
18 |
|
|
$ |
(58 |
) |
|
(6 |
)% |
|
Cost of sales |
|
801 |
|
|
|
764 |
|
|
14 |
|
|
|
23 |
|
|
3 |
% |
|
Gross margin |
|
181 |
|
|
|
258 |
|
|
4 |
|
|
|
(81 |
) |
|
(32 |
)% |
|
Selling, general, and administrative expenses |
|
215 |
|
|
|
196 |
|
|
3 |
|
|
|
16 |
|
|
8 |
% |
|
Goodwill impairment charges |
|
700 |
|
|
|
— |
|
|
— |
|
|
|
700 |
|
|
* |
||
Other operating expense, net |
|
1 |
|
|
|
2 |
|
|
— |
|
|
|
(1 |
) |
|
(18 |
)% |
|
Operating (loss) earnings |
|
(735 |
) |
|
|
60 |
|
|
1 |
|
|
|
(796 |
) |
|
* |
||
Interest expense, net |
|
58 |
|
|
|
32 |
|
|
— |
|
|
|
26 |
|
|
80 |
% |
|
Other expense, net |
|
13 |
|
|
|
25 |
|
|
1 |
|
|
|
(13 |
) |
|
(54 |
)% |
|
(Loss) earnings before income taxes |
|
(806 |
) |
|
|
3 |
|
|
— |
|
|
|
(809 |
) |
|
* |
||
Income tax (benefit) expense |
|
(91 |
) |
|
|
3 |
|
|
1 |
|
|
|
(95 |
) |
|
* |
||
Net loss |
$ |
(715 |
) |
|
$ |
— |
|
$ |
(1 |
) |
|
$ |
(714 |
) |
|
* |
||
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding – basic |
|
181 |
|
|
|
180 |
|
|
|
|
|
|
||||||
Weighted average shares outstanding – diluted |
|
181 |
|
|
|
181 |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|||||||||
Basic |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(3.94 |
) |
|
$ |
— |
|
|
|
|
|
|
||||||
Diluted |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(3.94 |
) |
|
$ |
— |
|
|
|
|
|
|
||||||
(1) |
Represents preliminary results. |
|
* |
Not meaningful |
Catalent, Inc. Condensed Consolidated Balance Sheets (Unaudited; dollars in millions) |
||||||
|
September 30, 2023(1) |
|
June 30, 2023(1) |
|||
ASSETS |
|
|
|
|||
Current assets: |
|
|
|
|||
Cash and cash equivalents |
$ |
209 |
|
$ |
280 |
|
Trade receivables, net |
|
826 |
|
|
977 |
|
Inventories |
|
811 |
|
|
764 |
|
Prepaid expenses and other |
|
795 |
|
|
658 |
|
Total current assets |
|
2,641 |
|
|
2,679 |
|
Property, plant, and equipment, net |
|
3,729 |
|
|
3,699 |
|
Other non-current assets, including intangible assets |
|
3,676 |
|
|
4,403 |
|
Total assets |
$ |
10,046 |
|
$ |
10,782 |
|
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
Current liabilities: |
|
|
|
|||
Current portion of long-term obligations and other short-term borrowings |
$ |
624 |
|
$ |
536 |
|
Accounts payable |
|
367 |
|
|
427 |
|
Other accrued liabilities |
|
552 |
|
|
544 |
|
Total current liabilities |
|
1,543 |
|
|
1,507 |
|
Long-term obligations, less current portion |
|
4,322 |
|
|
4,313 |
|
Other non-current liabilities |
|
276 |
|
|
325 |
|
Total shareholders' equity |
|
3,905 |
|
|
4,635 |
|
Total liabilities and shareholders' equity |
$ |
10,046 |
|
$ |
10,782 |
|
(1) |
Represents preliminary results. |
Catalent, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited; dollars in millions) |
||||||||
|
Three Months Ended September 30, |
|||||||
|
2023(1) |
|
2022 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||
Net cash used in operating activities |
$ |
(70 |
) |
|
$ |
(92 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||
Acquisition of property, equipment, and other productive assets |
|
(84 |
) |
|
|
(149 |
) |
|
Proceeds from maturity of marketable securities |
|
— |
|
|
|
24 |
|
|
Proceeds from sale of property and equipment |
|
1 |
|
|
|
6 |
|
|
(Payments) proceeds for investments |
|
(1 |
) |
|
|
3 |
|
|
Net cash used in investing activities |
|
(84 |
) |
|
|
(116 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||
Proceeds from borrowing |
|
115 |
|
|
|
75 |
|
|
Payments related to long-term obligations |
|
(35 |
) |
|
|
(7 |
) |
|
Financing fees paid |
|
(1 |
) |
|
|
— |
|
|
Cash received, in lieu of equity, for tax withholding obligations |
|
— |
|
|
|
2 |
|
|
Exercise of stock options |
|
1 |
|
|
|
1 |
|
|
Other financing activities |
|
18 |
|
|
|
3 |
|
|
Net cash provided by financing activities |
|
98 |
|
|
|
74 |
|
|
Effect of foreign currency exchange on cash and cash equivalents |
|
(15 |
) |
|
|
(34 |
) |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
(71 |
) |
|
|
(168 |
) |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
280 |
|
|
|
449 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
209 |
|
|
$ |
281 |
|
|
(1) |
Represents preliminary results. |
Catalent, Inc. Reconciliation of Net Earnings (Loss) to EBITDA from Operations and Adjusted EBITDA* (Unaudited; dollars in millions) |
||||||||||||||||||||
|
Three months ended |
|||||||||||||||||||
|
September 30, 2022 |
|
December 31, 2022 |
|
March 31, 2023 |
|
June 30, 2023(1) |
|
September 30, 2023(1) |
|||||||||||
Net earnings (loss) |
$ |
— |
|
|
$ |
81 |
|
|
$ |
(227 |
) |
|
$ |
(86 |
) |
|
$ |
(715 |
) |
|
Interest expense, net |
|
32 |
|
|
|
47 |
|
|
|
51 |
|
|
|
54 |
|
|
|
58 |
|
|
Income tax expense (benefit) |
|
3 |
|
|
|
33 |
|
|
|
(55 |
) |
|
|
(64 |
) |
|
|
(91 |
) |
|
Depreciation and amortization |
|
99 |
|
|
|
103 |
|
|
|
106 |
|
|
|
114 |
|
|
|
112 |
|
|
EBITDA (loss) from operations |
|
134 |
|
|
|
264 |
|
|
|
(125 |
) |
|
|
18 |
|
|
|
(636 |
) |
|
Goodwill impairment charges |
|
— |
|
|
|
— |
|
|
|
210 |
|
|
|
— |
|
|
|
700 |
|
|
Stock-based compensation |
|
19 |
|
|
|
10 |
|
|
|
6 |
|
|
|
— |
|
|
|
19 |
|
|
Impairment charges and gain/loss on sale of assets |
|
(2 |
) |
|
|
1 |
|
|
|
6 |
|
|
|
85 |
|
|
|
(1 |
) |
|
Restructuring costs |
|
4 |
|
|
|
23 |
|
|
|
9 |
|
|
|
30 |
|
|
|
2 |
|
|
Acquisition, integration, and other special items |
|
5 |
|
|
|
9 |
|
|
|
8 |
|
|
|
9 |
|
|
|
8 |
|
|
Foreign exchange loss (gain) |
|
27 |
|
|
|
(26 |
) |
|
|
(8 |
) |
|
|
(4 |
) |
|
|
9 |
|
|
Site transformation costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
Other adjustments |
|
— |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
187 |
|
|
$ |
283 |
|
|
$ |
105 |
|
|
$ |
139 |
|
|
$ |
115 |
|
|
Favorable (unfavorable) FX impact |
|
|
|
|
|
|
|
|
|
2 |
|
|||||||||
Adjusted EBITDA at constant currency |
|
|
|
|
|
|
|
|
$ |
113 |
|
|||||||||
* |
Refer to Catalent's description of non-GAAP measures, including EBITDA from operations and Adjusted EBITDA as referenced above. |
|
(1) |
Represents preliminary results. |
Catalent, Inc. Reconciliation of Net Loss to Adjusted Net (Loss) Income* (Unaudited; dollars in millions, except per share data) |
||||||||||||||||||||
|
Three months ended |
|||||||||||||||||||
|
September 30, 2022 |
|
December 31, 2022 |
|
March 31, 2023 |
|
June 30, 2023(10) |
|
September 30, 2023(10) |
|||||||||||
Net earnings (loss) |
$ |
— |
|
|
$ |
81 |
|
|
$ |
(227 |
) |
|
$ |
(86 |
) |
|
$ |
(715 |
) |
|
Amortization (1) |
|
33 |
|
|
|
34 |
|
|
|
34 |
|
|
|
35 |
|
|
|
34 |
|
|
Goodwill impairment charges (2) |
|
— |
|
|
|
— |
|
|
|
210 |
|
|
|
— |
|
|
|
700 |
|
|
Stock-based compensation |
|
19 |
|
|
|
10 |
|
|
|
6 |
|
|
|
— |
|
|
|
19 |
|
|
Impairment charges and gain/loss on sale of assets (3) |
|
(2 |
) |
|
|
1 |
|
|
|
6 |
|
|
|
85 |
|
|
|
(1 |
) |
|
Restructuring costs (4) |
|
4 |
|
|
|
23 |
|
|
|
9 |
|
|
|
30 |
|
|
|
2 |
|
|
Acquisition, integration, and other special items (5) |
|
5 |
|
|
|
9 |
|
|
|
8 |
|
|
|
9 |
|
|
|
8 |
|
|
Foreign exchange loss (gain) |
|
27 |
|
|
|
(26 |
) |
|
|
(8 |
) |
|
|
(4 |
) |
|
|
9 |
|
|
Site transformation costs(6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
Other adjustments |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Estimated tax effect of adjustments (7) |
|
(19 |
) |
|
|
(12 |
) |
|
|
(12 |
) |
|
|
(81 |
) |
|
|
(21 |
) |
|
Discrete income tax benefit items (8) |
|
(6 |
) |
|
|
— |
|
|
|
(43 |
) |
|
|
28 |
|
|
|
(68 |
) |
|
Adjusted net (loss) income (ANI) |
$ |
61 |
|
|
$ |
122 |
|
|
$ |
(17 |
) |
|
$ |
16 |
|
|
$ |
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding – basic |
|
180 |
|
|
|
|
|
|
|
|
|
181 |
|
|||||||
Weighted average shares outstanding – diluted |
|
181 |
|
|
|
|
|
|
|
|
|
181 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss per share – basic |
$ |
— |
|
|
|
|
|
|
|
|
$ |
(3.94 |
) |
|||||||
Net loss per share – diluted |
$ |
— |
|
|
|
|
|
|
|
|
$ |
(3.94 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
ANI per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
ANI per share – basic |
$ |
0.34 |
|
|
|
|
|
|
|
|
$ |
(0.10 |
) |
|||||||
ANI per share – diluted (9) |
$ |
0.34 |
|
|
|
|
|
|
|
|
$ |
(0.10 |
) |
|||||||
* Refer to Catalent's description of non-GAAP measures, including Adjusted Net Income as referenced above. |
||
|
||
(1) |
Represents the amortization attributable to purchase accounting for previously completed business combinations. |
|
|
||
(2) |
Non-cash goodwill impairment charges during the three months ended March 31, 2023 were associated with the Company's Consumer Health reporting unit. Non-cash goodwill impairment charges during the three months ended September 30, 2023 were associated with the Company's Biomodalities and Consumer Health reporting units. |
|
|
||
(3) |
For the three months ended June 30, 2023, represents fixed asset impairment charges primarily associated with an idle facility in the Biologics segment. |
|
|
||
(4) |
Restructuring costs represent employee and non-employee restructuring charges associated with Catalent's plans to reduce costs, consolidate facilities, and optimize its infrastructure across the organization. |
|
|
||
(5) |
Acquisition, integration and other special items include costs associated with its October 2022 acquisition of Metrics Contract Services. |
|
|
||
(6) |
For the three months ended September 30, 2023, represents operational and engineering enhancements and costs related to a transformation program in our Biologics segment. |
|
|
||
(7) |
The tax effect of adjustments to Adjusted Net (Loss) 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. |
|
|
||
(8) |
Discrete period income tax expense 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. |
|
(9) |
For the three months ended September 30, 2023 and 2022, represents Adjusted Net (Loss) Income divided by the weighted average sum of fully diluted shares outstanding, which is equal to (a) the number of shares of common stock outstanding, plus (b) the number of shares of its common stock that would be issued assuming exercise or vesting of all potentially dilutive instruments. For the three months ended September 30, 2023 and 2022, the weighted average number of shares was 181 million. |
|
|
||
(10) |
Represents preliminary results. |
|
Catalent, Inc. Reconciliation of Segment EBITDA to Net Loss (Unaudited; dollars in millions, except per share data) |
||||||||
|
Three Months Ended September 30, |
|||||||
2023(2) |
|
2022 |
||||||
Biologics Segment EBITDA |
$ |
52 |
|
|
$ |
113 |
|
|
Pharma and Consumer Health Segment EBITDA |
|
101 |
|
|
|
108 |
|
|
Sub-Total |
$ |
153 |
|
|
$ |
221 |
|
|
Reconciling items to net loss |
|
|
|
|||||
Goodwill impairment charges |
$ |
(700 |
) |
|
$ |
— |
|
|
Unallocated costs, excluding goodwill impairment charges (1) |
|
(89 |
) |
|
|
(87 |
) |
|
Depreciation and amortization |
|
(112 |
) |
|
|
(99 |
) |
|
Interest expense, net |
|
(58 |
) |
|
|
(32 |
) |
|
Income tax benefit (expense) |
|
91 |
|
|
|
(3 |
) |
|
Net loss |
$ |
(715 |
) |
|
$ |
— |
|
|
(1) |
Unallocated costs include restructuring and special items, stock-based compensation, impairment charges, gain on sale of subsidiary, certain other corporate directed costs, and other costs that are not allocated to the segments. |
|
(2) |
Represents preliminary results. |
Catalent, Inc. Calculation of Net Leverage Ratio (Unaudited; dollars in millions) |
||||||||||||||||||||
|
September 30, 2022 |
|
December 31, 2022 |
|
March 31, 2023 |
|
June 30, 2023(1) |
|
September 30, 2023(1) |
|||||||||||
Incremental Term Loan, due 2028 |
$ |
1,429 |
|
|
$ |
1,426 |
|
|
$ |
1,422 |
|
|
$ |
1,418 |
|
|
$ |
1,415 |
|
|
Revolving credit facility |
|
75 |
|
|
|
600 |
|
|
|
550 |
|
|
|
500 |
|
|
|
585 |
|
|
Unamortized discount and debt issuance costs |
|
(7 |
) |
|
|
(13 |
) |
|
|
(12 |
) |
|
|
(11 |
) |
|
|
(12 |
) |
|
Total Secured Debt |
|
1,497 |
|
|
|
2,013 |
|
|
|
1,960 |
|
|
|
1,907 |
|
|
|
1,988 |
|
|
Senior Notes, due 2027, |
|
500 |
|
|
|
500 |
|
|
|
500 |
|
|
|
500 |
|
|
|
500 |
|
|
Senior Notes, due 2028 (EUR), |
|
794 |
|
|
|
879 |
|
|
|
895 |
|
|
|
904 |
|
|
|
872 |
|
|
Senior Notes, due 2029, |
|
550 |
|
|
|
550 |
|
|
|
550 |
|
|
|
550 |
|
|
|
550 |
|
|
Senior Notes due 2030, |
|
650 |
|
|
|
650 |
|
|
|
650 |
|
|
|
650 |
|
|
|
650 |
|
|
Finance Leases / Other |
|
245 |
|
|
|
291 |
|
|
|
323 |
|
|
|
366 |
|
|
|
412 |
|
|
Unamortized discount and debt issuance costs |
|
(32 |
) |
|
|
(30 |
) |
|
|
(29 |
) |
|
|
(28 |
) |
|
|
(26 |
) |
|
Total Unsecured Debt |
|
2,707 |
|
|
|
2,840 |
|
|
|
2,889 |
|
|
|
2,942 |
|
|
|
2,958 |
|
|
Total Debt |
|
4,204 |
|
|
|
4,853 |
|
|
|
4,849 |
|
|
|
4,849 |
|
|
|
4,946 |
|
|
Cash and Cash Equivalents |
|
281 |
|
|
|
442 |
|
|
|
252 |
|
|
|
280 |
|
|
|
209 |
|
|
Marketable Securities |
|
64 |
|
|
|
28 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total Net Debt |
$ |
3,859 |
|
|
$ |
4,383 |
|
|
$ |
4,597 |
|
|
$ |
4,569 |
|
|
$ |
4,737 |
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|||||||||||
Q2 2022 |
|
310 |
|
|
|
|
|
|
|
|
|
|||||||||
Q3 2022 |
|
339 |
|
|
|
339 |
|
|
|
|
|
|
|
|||||||
Q4 2022 |
|
358 |
|
|
|
358 |
|
|
|
358 |
|
|
|
|
|
|||||
Q1 2023 |
|
187 |
|
|
|
187 |
|
|
|
187 |
|
|
|
187 |
|
|
|
|||
Q2 2023 |
|
|
|
283 |
|
|
|
283 |
|
|
|
283 |
|
|
|
283 |
|
|||
Q3 2023 |
|
|
|
|
|
105 |
|
|
|
105 |
|
|
|
105 |
|
|||||
Q4 2023 |
|
|
|
|
|
|
|
139 |
|
|
|
139 |
|
|||||||
Q1 2024 |
|
|
|
|
|
|
|
|
|
115 |
|
|||||||||
LTM Adjusted EBITDA |
$ |
1,194 |
|
|
$ |
1,167 |
|
|
$ |
933 |
|
|
$ |
714 |
|
|
$ |
642 |
|
|
First Lien Debt / Adj. EBITDA |
1.2x |
|
1.6x |
|
2.2x |
|
2.8x |
|
3.4x |
|||||||||||
Net Sr. Secured Debt / Adj. EBITDA |
1.0x |
|
1.3x |
|
1.8x |
|
2.3x |
|
2.8x |
|||||||||||
Net Debt / Adj. EBITDA |
3.2x |
|
3.8x |
|
4.9x |
|
6.4x |
|
7.4x |
|||||||||||
(1) |
Represents preliminary results. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231114206805/en/
Investor Contact:
Catalent, Inc.
Paul Surdez
732-537-6325
investors@catalent.com
Source: Catalent, Inc.
FAQ
What is Catalent, Inc.'s Q1'24 net revenue?
What is the Q1'24 net loss for Catalent, Inc.?
What is Catalent, Inc.'s reaffirmed FY'24 financial guidance?
