10/25/2024 | Press release | Distributed by Public on 10/25/2024 04:20
(in millions, except per share data) |
Three months ended September 30,
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Nine months ended September 30,
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2024
|
2023
|
2024
|
2023
|
|||||
Net sales | $ | 1,714.4 | $ | 1,720.2 | $ | 5,097.0 | $ | 5,244.4 |
Cost of sales | 1,150.0 | 1,141.6 | 3,380.6 | 3,451.0 | ||||
Gross profit | 564.4 | 578.6 | 1,716.4 | 1,793.4 | ||||
Selling, general and administrative expenses | 439.8 | 368.4 | 1,269.7 | 1,119.5 | ||||
Impairment charges | - | - | - | 160.8 | ||||
Operating income
|
124.6 | 210.2 | 446.7 | 513.1 | ||||
Interest expense, net | (48.7) | (72.4) | (173.9) | (219.5) | ||||
Loss on extinguishment of debt | (2.1) | (2.0) | (6.5) | (5.9) | ||||
Other income, net
|
0.7 | 0.7 | 3.4 | 3.3 | ||||
Income before income taxes
|
74.5 | 136.5 | 269.7 | 291.0 | ||||
Income tax expense
|
(16.7) | (28.1) | (58.6) | (68.4) | ||||
Net income
|
$ | 57.8 | $ | 108.4 | $ | 211.1 | $ | 222.6 |
Earnings per share:
|
|
|||||||
Basic | $ | 0.08 | $ | 0.16 | $ | 0.31 | $ | 0.33 |
Diluted | $ | 0.08 | $ | 0.16 | $ | 0.31 | $ | 0.33 |
Weighted average shares outstanding: | ||||||||
Basic | 680.3 | 676.0 | 679.3 | 675.4 | ||||
Diluted | 683.0 | 678.5 | 682.1 | 678.1 |
(in millions) | September 30, 2024 | December 31, 2023 | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 285.3 | $ | 262.9 |
Accounts receivable, net | 1,087.7 | 1,150.2 | ||
Inventory | 779.6 | 828.1 | ||
Other current assets | 135.6 | 143.7 | ||
Assets held for sale | 216.5 | - | ||
Total current assets | 2,504.7 | 2,384.9 | ||
Property, plant and equipment, net | 722.8 | 737.5 | ||
Other intangible assets, net | 3,522.7 | 3,775.3 | ||
Goodwill, net | 5,670.6 | 5,716.7 | ||
Other assets | 419.8 | 358.3 | ||
Total assets | $ | 12,840.6 | $ | 12,972.7 |
Liabilities and stockholders' equity | ||||
Current liabilities: | ||||
Current portion of debt | $ | 229.7 | $ | 259.9 |
Accounts payable | 673.5 | 625.9 | ||
Employee-related liabilities | 183.3 | 133.1 | ||
Accrued interest | 39.9 | 50.2 | ||
Other current liabilities | 401.7 | 411.2 | ||
Liabilities held for sale | 101.7 | - | ||
Total current liabilities | 1,629.8 | 1,480.3 | ||
Debt, net of current portion | 4,691.4 | 5,276.7 | ||
Deferred income tax liabilities | 547.3 | 612.8 | ||
Other liabilities | 418.9 | 350.3 | ||
Total liabilities | 7,287.4 | 7,720.1 | ||
Stockholders' equity: | ||||
Common stock including paid-in capital | 3,924.5 | 3,830.1 | ||
Accumulated earnings
|
1,702.6 | 1,491.5 | ||
Accumulated other comprehensive loss
|
(73.9) | (69.0) | ||
Total stockholders' equity | 5,553.2 | 5,252.6 | ||
Total liabilities and stockholders' equity | $ | 12,840.6 | $ | 12,972.7 |
(in millions) |
Three months ended September 30,
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Nine months ended September 30,
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2024
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2023
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2024
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2023
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Cash flows from operating activities: | ||||||||
Net income
|
$ | 57.8 | $ | 108.4 | $ | 211.1 | $ | 222.6 |
Reconciling adjustments: | ||||||||
Depreciation and amortization | 102.4 | 98.0 | 304.6 |
|
301.7 | |||
Impairment charges | - | - | - | 160.8 | ||||
Stock-based compensation expense
|
11.9 | 9.8 | 35.7 |
|
31.7 | |||
Non-cash restructuring charges | 16.4 | - | 16.4 | - | ||||
Provision for accounts receivable and inventory | 16.3 | 19.4 | 55.8 | 62.5 | ||||
Deferred income tax benefit
|
(22.6) | (29.4) | (75.3) | (94.1) | ||||
Amortization of deferred financing costs | 2.8 | 3.2 | 8.6 | 9.9 | ||||
Loss on extinguishment of debt | 2.1 | 2.0 | 6.5 | 5.9 | ||||
Foreign currency remeasurement (gain) loss
|
(0.1) | (3.0) | 3.0 | (3.1) | ||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 34.2 | 47.2 | 34.2 | 55.1 | ||||
Inventory | (7.3) | 10.8 | (21.5) | 9.1 | ||||
Accounts payable | (4.0) | (21.4) | 41.9 | (95.8) | ||||
Accrued interest | (16.2) | (9.7) | (16.5) | (10.3) | ||||
Other assets and liabilities | 56.6 | (4.2) | 63.0 | (38.5) | ||||
Other | (5.5) | (0.4) | - | 0.9 | ||||
Net cash provided by operating activities
|
244.8 | 230.7 | 667.5 | 618.4 | ||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (40.8) | (37.7) | (121.3) | (95.8) | ||||
Other | 0.3 | 0.7 | 1.7 | 2.1 | ||||
Net cash used in investing activities
|
(40.5) | (37.0) | (119.6) | (93.7) | ||||
Cash flows from financing activities: | ||||||||
Debt repayments | (214.3) | (197.6) | (585.0) | (657.9) | ||||
Payments of debt refinancing fees and premiums | - | - | - | (2.3) | ||||
Proceeds received from exercise of stock options | 16.5 | 9.4 | 67.3 | 14.1 | ||||
Shares repurchased to satisfy employee tax obligations for vested stock-based awards | (0.8) | (0.2) | (8.2) | (13.5) | ||||
Net cash used in financing activities
|
(198.6) | (188.4) | (525.9) | (659.6) | ||||
Effect of currency rate changes on cash and cash equivalents | 7.9 | (5.4) | 0.6 | (1.3) | ||||
Net change in cash, cash equivalents and restricted cash | 13.6 | (0.1) | 22.6 | (136.2) | ||||
Cash, cash equivalents and restricted cash, beginning of period | 296.7 | 260.8 | 287.7 | 396.9 | ||||
Cash, cash equivalents and restricted cash, end of period | $ | 310.3 | $ | 260.7 | $ | 310.3 | $ | 260.7 |
(dollars in millions, % based on net sales) |
Three months ended September 30,
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Nine months ended September 30,
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2024
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2023
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2024
|
2023
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$ | % | $ | % | $ | % | $ | % | |||||||||
Net income
|
$ | 57.8 | 3.4 | % | $ | 108.4 | 6.3 | % | $ | 211.1 | 4.1 | % | $ | 222.6 | 4.2 | % |
Amortization | 75.4 | 4.3 | % | 75.4 | 4.4 | % | 225.6 | 4.4 | % | 232.7 | 4.4 | % | ||||
Loss on extinguishment of debt | 2.1 | 0.1 | % | 2.0 | 0.1 | % | 6.5 | 0.1 | % | 5.9 | 0.1 | % | ||||
Integration-related expenses1
|
- | - | % | 0.2 | - | % | - | - | % | 8.3 | 0.2 | % | ||||
Restructuring and severance charges2
|
49.4 | 2.9 | % | 6.1 | 0.4 | % | 82.3 | 1.7 | % | 18.0 | 0.3 | % | ||||
Transformation expenses3
|
17.1 | 1.0 | % | - | - | % | 46.6 | 0.9 | % | - | - | % | ||||
Reserve for certain legal matters4
|
7.9 | 0.5 | % | 3.0 | 0.1 | % | 7.9 | 0.2 | % | 4.0 | 0.1 | % | ||||
Other5
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0.4 | - | % | (0.4) | - | % | (0.4) | - | % | (2.2) | - | % | ||||
Impairment charges6
|
- | - | % | - | - | % | - | - | % | 160.8 | 3.1 | % | ||||
Income tax benefit applicable to pretax adjustments
|
(34.9) | (2.0) | % | (23.1) | (1.3) | % | (85.8) | (1.7) | % | (96.7) | (1.8) | % | ||||
Adjusted net income
|
175.2 | 10.2 | % | 171.6 | 10.0 | % | 493.8 | 9.7 | % | 553.4 | 10.6 | % | ||||
Interest expense, net | 48.7 | 2.8 | % | 72.4 | 4.2 | % | 173.9 | 3.4 | % | 219.5 | 4.2 | % | ||||
Depreciation | 27.0 | 1.6 | % | 22.6 | 1.4 | % | 79.0 | 1.5 | % | 69.0 | 1.3 | % | ||||
Income tax provision applicable to Adjusted Net income | 51.6 | 3.0 | % | 51.2 | 2.9 | % | 144.4 | 2.9 | % | 165.1 | 3.1 | % | ||||
Adjusted EBITDA | $ | 302.5 | 17.6 | % | $ | 317.8 | 18.5 | % | $ | 891.1 | 17.5 | % | $ | 1,007.0 | 19.2 | % |
(dollars in millions, % based on net sales) |
Three months ended September 30,
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Nine months ended September 30,
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2024
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2023
|
2024
|
2023
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$ | % | $ | % | $ | % | $ | % | |||||||||
Net income
|
$ | 57.8 | 3.4 | % | $ | 108.4 | 6.3 | % | $ | 211.1 | 4.1 | % | $ | 222.6 | 4.2 | % |
Interest expense, net | 48.7 | 2.8 | % | 72.4 | 4.2 | % | 173.9 | 3.4 | % | 219.5 | 4.2 | % | ||||
Income tax expense
|
16.7 | 1.0 | % | 28.1 | 1.6 | % | 58.6 | 1.2 | % | 68.4 | 1.3 | % | ||||
Loss on extinguishment of debt | 2.1 | 0.1 | % | 2.0 | 0.1 | % | 6.5 | 0.1 | % | 5.9 | 0.1 | % | ||||
Other income, net
|
(0.7) | - | % | (0.7) | - | % | (3.4) | (0.1) | % | (3.3) | - | % | ||||
Operating income
|
124.6 | 7.3 | % | 210.2 | 12.2 | % | 446.7 | 8.7 | % | 513.1 | 9.8 | % | ||||
Amortization | 75.4 | 4.3 | % | 75.4 | 4.4 | % | 225.6 | 4.4 | % | 232.7 | 4.4 | % | ||||
Integration-related expenses1
|
- | - | % | 0.2 | - | % | - | - | % | 8.3 | 0.2 | % | ||||
Restructuring and severance charges2
|
49.4 | 2.9 | % | 6.1 | 0.4 | % | 82.3 | 1.7 | % | 18.0 | 0.3 | % | ||||
Transformation expenses3
|
17.1 | 1.0 | % | - | - | % | 46.6 | 0.9 | % | - | - | % | ||||
Reserve for certain legal matters4
|
7.9 | 0.5 | % | 3.0 | 0.1 | % | 7.9 | 0.2 | % | 4.0 | 0.1 | % | ||||
Other5
|
0.4 | - | % | 0.1 | - | % | 1.4 | - | % | 0.1 | - | % | ||||
Impairment charges6
|
- | - | % | - | - | % | - | - | % | 160.8 | 3.1 | % | ||||
Adjusted Operating Income | $ | 274.8 | 16.0 | % | $ | 295.0 | 17.1 | % | $ | 810.5 | 15.9 | % | $ | 937.0 | 17.9 | % |
(shares in millions) |
Three months ended September 30,
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Nine months ended September 30,
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2024
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2023
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2024
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2023
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Diluted earnings per share (GAAP)
|
$ | 0.08 | $ | 0.16 | $ | 0.31 | $ | 0.33 |
Dilutive impact of convertible instruments | - | - | - | - | ||||
Fully diluted earnings per share (non-GAAP)
|
0.08 | 0.16 | 0.31 | 0.33 | ||||
Amortization | 0.11 | 0.11 | 0.33 | 0.34 | ||||
Loss on extinguishment of debt | 0.01 | - | 0.01 | - | ||||
Integration-related expenses | - | - | - | 0.01 | ||||
Restructuring and severance charges | 0.07 | 0.01 | 0.12 | 0.03 | ||||
Transformation expenses | 0.03 | - | 0.07 | - | ||||
Reserve for certain legal matters | 0.01 | - | 0.01 | 0.01 | ||||
Other | - | - | - | - | ||||
Impairment charges | - | - | - | 0.24 | ||||
Income tax benefit applicable to pretax adjustments
|
(0.05) | (0.03) | (0.13) | (0.14) | ||||
Adjusted EPS (non-GAAP) | $ | 0.26 | $ | 0.25 | $ | 0.72 | $ | 0.82 |
Weighted average shares outstanding: | ||||||||
Diluted (GAAP) | 683.0 | 678.5 | 682.1 | 678.1 | ||||
Incremental shares excluded for GAAP | - | - | - | - | ||||
Share count for Adjusted EPS (non-GAAP) | 683.0 | 678.5 | 682.1 | 678.1 |
(in millions) |
Three months ended September 30,
|
Nine months ended September 30,
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2024
|
2023
|
2024
|
2023
|
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Net cash provided by operating activities
|
$ | 244.8 | $ | 230.7 | $ | 667.5 | $ | 618.4 |
Capital expenditures | (40.8) | (37.7) | (121.3) | (95.8) | ||||
Free cash flow (non-GAAP) | $ | 204.0 | $ | 193.0 | $ | 546.2 | $ | 522.6 |
(dollars in millions) | September 30, 2024 | |
Total debt, gross1
|
$ | 5,001.6 |
Less cash and cash equivalents | (285.3) | |
$ | 4,716.3 | |
Trailing twelve months Adjusted EBITDA | $ | 1,193.2 |
Trailing twelve months ongoing stock-based compensation expense | 43.9 | |
$ | 1,237.1 | |
Adjusted net leverage (non-GAAP) | 3.8 | x |
(in millions) | September 30, | Reconciliation of net sales growth (decline) to organic net sales growth (decline) | ||||||||
Net sales growth (decline) | Foreign currency impact | Organic net sales growth (decline) | ||||||||
2024 | 2023 | |||||||||
Three months ended:
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Laboratory Solutions | $ | 1,171.5 | $ | 1,159.1 | $ | 12.4 | $ | 5.3 | $ | 7.1 |
Bioscience Production | 542.9 | 561.1 | (18.2) | 1.9 | (20.1) | |||||
Total | $ | 1,714.4 | $ | 1,720.2 | $ | (5.8) | $ | 7.2 | $ | (13.0) |
Nine months ended:
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Laboratory Solutions | $ | 3,484.3 | $ | 3,555.9 | $ | (71.6) | $ | 8.9 | $ | (80.5) |
Bioscience Production | 1,612.7 | 1,688.5 | (75.8) | 3.6 | (79.4) | |||||
Total | $ | 5,097.0 | $ | 5,244.4 | $ | (147.4) | $ | 12.5 | $ | (159.9) |
(dollars in millions, % based on net sales) | September 30, | Reconciliation of net sales growth (decline) to organic net sales growth (decline) | ||||||||
Net sales growth (decline) | Foreign currency impact | Organic net sales growth (decline) | ||||||||
2024 | 2023 | |||||||||
$ | $ | % | % | % | ||||||
Three months ended:
|
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Laboratory Solutions | $ | 1,171.5 | $ | 1,159.1 | 1.1 | % | 0.5 | % | 0.6 | % |
Bioscience Production | 542.9 | 561.1 | (3.2) | % | 0.3 | % | (3.5) | % | ||
Total | $ | 1,714.4 | $ | 1,720.2 | (0.3) | % | 0.4 | % | (0.7) | % |
Nine months ended:
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Laboratory Solutions | $ | 3,484.3 | $ | 3,555.9 | (2.0) | % | 0.3 | % | (2.3) | % |
Bioscience Production | 1,612.7 | 1,688.5 | (4.5) | % | 0.2 | % | (4.7) | % | ||
Total | $ | 5,097.0 | $ | 5,244.4 | (2.8) | % | 0.2 | % | (3.0) | % |
(dollars in millions, % represent Adjusted Operating Income margin) |
Three months ended September 30,
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Nine months ended September 30,
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2024
|
2023
|
2024
|
2023
|
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$ | % | $ | % | $ | % | $ | % | |||||||||
Laboratory Solutions | $ | 151.5 | 12.9 | % | $ | 159.1 | 13.7 | % | $ | 450.7 | 12.9 | % | $ | 511.0 | 14.4 | % |
Bioscience Production | 138.1 | 25.4 | % | 148.2 | 26.4 | % | 409.0 | 25.4 | % | 469.9 | 27.8 | % | ||||
Corporate | (14.8) | - | % | (12.3) | - | % | (49.2) | - | % | (43.9) | - | % | ||||
Total | $ | 274.8 | 16.0 | % | $ | 295.0 | 17.1 | % | $ | 810.5 | 15.9 | % | $ | 937.0 | 17.9 | % |