– Revenue of $1,013.1 Million, GAAP Diluted EPS
of $1.03, and Non-GAAP Diluted EPS of $0.98; All Exceed Guidance
–
– Total Company Organic Revenue Growth
Excluding COVID-19 of 5.2% in Constant Currency Against Four Fewer
Selling Days Compared to the Prior Year Period –
– Company Increases Full-Year Revenue and EPS
Guidance -
Hologic, Inc. (Nasdaq: HOLX) announced today the Company’s
financial results for the fiscal first quarter ended December 30,
2023.
“We delivered strong revenue and profitability to start fiscal
2024, exceeding the high-end of our guidance for both the top-line
and the bottom-line. Adjusting for the four fewer selling days in
the quarter, we estimate our organic growth rate ex. COVID-19 was
in the high single digits, highlighting the bigger, faster,
stronger Hologic we are today,” said Stephen P. MacMillan, the
Company’s Chairman, President and Chief Executive Officer. “Each
one of our divisions delivered solid results setting the stage for
another strong fiscal year. We are excited to continue our durable
and dependable performance as we progress through fiscal 2024.”
Recent Highlights
- Revenue of $1,013.1 million decreased (5.7%) for the quarter,
or (6.4%) in constant currency, primarily driven by lower sales of
COVID-19 assays compared to the prior year period, as expected.
- Excluding COVID-19 revenues, total organic revenue grew 6.1%,
or 5.2% on a constant currency basis despite the prior year period
including four extra selling days.
- Diagnostics revenue decreased (19.9%), or (20.6%) in constant
currency, primarily driven by lower sales of COVID-19 assays
compared to the prior year period.
- Excluding COVID-19 revenues, Diagnostics revenue declined
(0.9%) on an organic, constant currency basis.
- Molecular Diagnostics revenue declined (24.8%), or (25.4%) in
constant currency, primarily driven by lower sales of COVID-19
assays compared to the prior year period.
- Excluding COVID-19 revenues, Molecular Diagnostics revenue grew
1.9% on an organic, constant currency basis.
- Breast Health revenue increased 13.0%, or 12.2% in constant
currency, primarily due to higher capital equipment revenue
compared to the prior year period as supply chain headwinds
impacted our ability to manufacture sufficient units to meet demand
in fiscal Q1 2023.
- Surgical revenue grew 5.3%, or 4.6% in constant currency,
primarily driven by strong results from MyoSure, Fluent Fluid
Management, and Laparoscopy.
- Cash flow from operations remained strong in the first quarter
at $220.0 million. In addition, during the current quarter the
Company executed a $500 million accelerated share repurchase
agreement (ASR), repurchased 2.2 million shares of its stock in
open market trades for $150 million, and paid down $250 million of
outstanding floating rate debt under its credit agreement.
Key financial results for the fiscal first quarter are shown in
the table below.
GAAP
Non-GAAP
Q1’24
Q1’23
Change
Increase
(Decrease)
Q1’24
Q1’23
Change
Increase
(Decrease)
Revenues
$1,013.1
$1,074.2
(5.7%)
$1,013.1
$1,074.2
(5.7%)
Gross Margin
56.0%
57.5%
(150 bps)
60.8%
62.7%
(190 bps)
Operating Expenses
$369.3
$355.5
3.9%
$327.3
$339.4
(3.6%)
Operating Margin
19.6%
24.4%
(480 bps)
28.5%
31.1%
(260 bps)
Net Margin
24.3%
17.4%
690 bps
23.3%
24.9%
(160 bps)
Diluted EPS
$1.03
$0.75
37.3%
$0.98
$1.07
(8.4%)
Throughout this press release, all dollar figures are in
millions, except EPS, unless otherwise noted. Some totals may not
foot due to rounding. Unless otherwise noted, all results are
compared to the corresponding prior year period. Non-GAAP results
exclude certain cash and non-cash items as discussed under “Use of
Non-GAAP Financial Measures.” Constant currency percentage changes
show current period revenue results as if the foreign exchange
rates were the same as those in the prior year period. Our fiscal
first quarter organic revenue results exclude the divested Blood
Screening and SSI ultrasound imaging businesses. Revenue from
acquired businesses is generally included in organic revenue
starting a year after the acquisition.
Revenue Detail
Increase/(Decrease)
$ in millions
Q1’24
Q1’23
Global
Reported
Change
Global
Constant
Currency
Change
U.S.
Reported
Change
International
Reported
Change
International
Constant
Currency
Change
Diagnostics
Cytology and Perinatal
$120.0
$126.8
(5.4%)
(6.5%)
(10.7%)
3.3%
0.4%
Molecular Diagnostics
$319.8
$425.2
(24.8%)
(25.4%)
(24.6%)
(25.5%)
(28.1%)
Blood Screening
$8.0
$7.3
9.6%
9.6%
9.6%
N/A
N/A
Total Diagnostics
$447.8
$559.3
(19.9%)
(20.6%)
(21.4%)
(15.9%)
(18.6%)
Organic Diagnostics ex. COVID-19
$388.1
$387.7
0.1%
(0.9%)
(1.1%)
3.3%
(0.2%)
Breast Health
Breast Imaging
$301.4
$264.4
14.0%
13.2%
7.6%
40.0%
35.8%
Interventional Breast Solutions
$76.3
$69.8
9.3%
8.7%
5.9%
26.3%
22.3%
Total Breast Health
$377.7
$334.2
13.0%
12.2%
7.2%
37.4%
33.3%
GYN Surgical
$162.2
$154.1
5.3%
4.6%
1.7%
19.3%
15.9%
Skeletal Health
$25.4
$26.6
(4.5%)
(5.6%)
(18.6%)
19.2%
16.8%
Total
$1,013.1
$1,074.2
(5.7%)
(6.4%)
(8.5%)
3.5%
0.3%
Organic Revenue (definition above)
$1,004.4
$1,062.4
(5.5%)
(6.2%)
(8.5%)
4.4%
1.2%
Organic Revenue excluding COVID-19
$952.7
$898.0
6.1%
5.2%
2.5%
17.9%
14.2%
Other Financial
Highlights
- U.S. revenue of $753.7 million decreased (8.5%). International
revenue of $259.4 million increased 3.5% and 0.3% in constant
currency.
- GAAP gross margin of 56.0% decreased (150) basis points
primarily due to the decline in COVID-19 assay sales compared to
the prior year period. Non-GAAP gross margin of 60.8% decreased
(190) basis points, also primarily due to the decline in COVID-19
assay sales compared to the prior year period.
- GAAP operating margin of 19.6% decreased (480) basis points
primarily due to the decline in COVID-19 assay sales compared to
the prior year period. Non-GAAP operating margin of 28.5% decreased
(260) basis points, also primarily due to lower COVID-19 assay
revenue.
- GAAP net income of $246.5 million increased 31.5% and Non-GAAP
net income of $236.4 million decreased (11.8%). Earnings before
interest, taxes, depreciation and amortization (EBITDA) was $277.8
million, a decrease of (16.5%). Adjusted EBITDA was $315.0 million,
a decrease of (12.7%).
- COVID-19 revenues, which consist of COVID-19 assay revenue of
$26.8 million, and other COVID-19 related revenue plus revenue from
discontinued products of $24.6 million, decreased (68.5%) and
(68.7%) in constant currency.
- Total principal debt outstanding at the end of the first
quarter was $2.58 billion. The Company ended the quarter with cash
and equivalents of $1.93 billion, and a net leverage ratio (net
debt over EBITDA) of 0.7 times. The Company’s adjusted net leverage
ratio in the first quarter was 0.5 times.
- On a trailing 12-month basis, Return on Invested Capital (ROIC)
was 9.2%. Adjusted ROIC was 13.6%, a decrease of (420) basis points
compared to the prior year period.
Financial Guidance for the Second
Quarter and Full-Year Fiscal 2024
“Hologic delivered another strong financial performance in our
fiscal first quarter of 2024, beating our estimates on both revenue
and earnings” said Karleen Oberton, Hologic’s Chief Financial
Officer. “We continue to operate from a position of strength,
entering our second quarter with momentum and confidence to deliver
on our financial commitments for fiscal 2024.”
Hologic’s financial guidance for the second quarter and full
year 2024 is shown in the table below. The guidance is based on a
full year non-GAAP tax rate of approximately 19.75%, and diluted
shares outstanding of approximately 239 million for the full year.
Constant currency guidance assumes that foreign exchange rates are
the same in fiscal 2024 as in fiscal 2023. Organic revenue guidance
for fiscal 2024 is in constant currency and excludes the divested
Blood Screening and SSI ultrasound imaging businesses. Revenue from
acquired businesses is generally included in organic revenue
guidance starting a year after the acquisition. In fiscal 2024, all
prior transactions are part of Hologic’s organic revenue base.
Organic revenue excluding COVID-19 is in constant currency and is
organic revenue excluding COVID-19 assay revenue, COVID-19 related
revenue, and discontinued product sales in Diagnostics.
Current Guidance*
Previous Guidance
Guidance $
Reported
% Increase
(Decrease)
Constant Currency
% Increase
(Decrease)
Organic excluding
COVID-19
% Increase
(Decrease)
Guidance $
Fiscal
2024
Revenue
$3,990 - $4,065
(1.0%) to 0.9%
(1.3%) to 0.6%
4.7% to 6.8%
$3,920 - $4,020
GAAP EPS
$3.52 - $3.67
92.3% to 100.5%
$3.19 - $3.39
Non-GAAP EPS
$3.97 - $4.12
0.3% to 4.0%
$3.90 - $4.10
Q2 2024
Revenue
$990 - $1,010
(3.6%) to (1.6%)
(3.7%) to (1.8%)
2.3% to 4.5%
GAAP EPS
$0.77 - $0.82
(11.5%) to (5.7%)
Non-GAAP EPS
$0.95 - $1.00
(10.4%) to (5.7%)
*Fiscal 2024 has four fewer selling days compared to fiscal
2023. Factored into our guidance, we estimate the impact of the
four fewer selling days to be a headwind of more than 100 bps for
the full year.
Use of
Non-GAAP Financial Measures
The Company has presented the following non-GAAP financial
measures in this press release: constant currency revenues; organic
revenues; organic revenues excluding COVID-19, non-GAAP gross
margin; non-GAAP operating expenses; non-GAAP operating margin;
non-GAAP effective tax rate; non-GAAP net income; non-GAAP net
margin; non-GAAP EPS; adjusted EBITDA; net leverage ratio and
adjusted ROIC. Organic revenue for the fiscal first quarter of 2024
excludes the divested Blood Screening and SSI ultrasound imaging
businesses. Revenue from acquired businesses is generally included
in organic revenue starting a year after the acquisition. Organic
revenue excluding COVID-19 revenues is organic revenue less
COVID-19 assay revenue, COVID-19 related sales of instruments,
collection kits and ancillaries, COVID-19 related revenue from
Diagenode and Mobidiag, as well as COVID-19 related license
revenue, and revenues from discontinued products. The Company
defines its non-GAAP net income, EPS, and other non-GAAP financial
measures to exclude, as applicable: (i) the amortization of
intangible assets; (ii) the impairment of goodwill and intangible
assets and equipment and the loss to record assets held-for-sale to
fair value less costs to sell; (iii) adjustments to record
contingent consideration at fair value; (iv) charges to write-off
inventory for a product line discontinuance; (v) restructuring
charges, facility closure and consolidation charges (including
accelerated depreciation), and costs incurred to integrate
acquisitions (including retention, transaction bonuses, legal and
professional consulting services); (vi) transaction related
expenses for acquisitions; (vii) third-party expenses incurred
related to the implementation of the European MDR/IVDR requirements
and obtaining the appropriate approvals for its existing products;
(viii) debt extinguishment losses and related transaction costs;
(ix) the unrealized (gains) losses on the mark-to-market of foreign
currency contracts to hedge operating results for which the Company
has not elected hedge accounting; (x) litigation settlement charges
(benefits) and non-income tax related charges (benefits); (xi)
other-than-temporary impairment losses on investments and realized
gains and losses resulting from the sale of investments; (xii) the
impacts related to internal restructurings and non-operational
items; (xiii) other one-time, non-recurring, unusual or infrequent
charges, expenses or gains that may not be indicative of the
Company's core business results; and (xiv) income taxes related to
such adjustments. The Company defines adjusted EBITDA as its
non-GAAP net income plus net interest income/expense, income taxes,
and depreciation and amortization expense included in its non-GAAP
net income. The Company defines its net leverage ratio as the
principal amount of its debt net of cash and cash equivalents,
divided by its EBITDA for the last four quarters. The Company
defines its adjusted ROIC as its non-GAAP operating income tax
effected by its non-GAAP effective tax rate divided by the sum of
its average net debt and stockholders’ equity, which is adjusted to
exclude the effects of goodwill and intangible assets and equipment
impairment charges.
These non-GAAP financial measures should be considered
supplemental to, and not a substitute for, financial information
prepared in accordance with GAAP. The Company's definition of these
non-GAAP measures may differ from similarly titled measures used by
others.
The non-GAAP financial measures used in this press release
adjust for specified items that can be highly variable or difficult
to predict. The Company generally uses these non-GAAP financial
measures to facilitate management's financial and operational
decision-making, including evaluation of Hologic's historical
operating results, comparison to competitors' operating results and
determination of management incentive compensation. These non-GAAP
financial measures reflect an additional way of viewing aspects of
the Company's operations that, when viewed with GAAP results and
the reconciliations to corresponding GAAP financial measures, may
provide a more complete understanding of factors and trends
affecting Hologic's business.
Because non-GAAP financial measures exclude the effect of items
that will increase or decrease the Company's reported results of
operations, management strongly encourages investors to review the
Company's consolidated financial statements and publicly filed
reports in their entirety. A reconciliation of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures is included in the tables accompanying this release.
Conference Call and
Webcast
Hologic’s management will host a conference call at 4:30 p.m. ET
today to discuss its financial results for the first quarter of
fiscal 2024. Interested participants may listen to the call by
dialing 888-394-8218 (in the U.S. and Canada) or 773-305-6853 (for
international callers) and referencing access code 5909239.
Participants may also click to join. Participants should dial in
5-10 minutes before the call begins. The Company will also provide
a live and replay webcast of the call at hologic.com/investors. The
replay of the call will be available approximately two hours after
the call ends through Friday, March 1, 2024.
About Hologic, Inc.
Hologic, Inc. is an innovative medical technology company
primarily focused on improving women's health and well-being
through early detection and treatment. For more information on
Hologic, visit www.hologic.com.
Hologic and associated logos are trademarks and/or registered
trademarks of Hologic, Inc. and/or its subsidiaries in the United
States and/or other countries.
Forward-Looking
Statements
This news release contains forward-looking information that
involves risks and uncertainties, including statements about the
Company’s plans, objectives, expectations and intentions. Such
statements include, without limitation: financial or other
information based upon or otherwise incorporating judgments or
estimates relating to future performance, events or expectations;
the Company’s strategies, positioning, resources, capabilities, and
expectations for future performance; and the Company's outlook and
financial and other guidance. These forward-looking statements are
based upon assumptions made by the Company as of the date hereof
and are subject to known and unknown risks and uncertainties that
could cause actual results to differ materially from those
anticipated.
Risks and uncertainties that could adversely affect the
Company’s business and prospects, and otherwise cause actual
results to differ materially from those anticipated, include,
without limitation: the ongoing and possible future effects of
global challenges, including macroeconomic uncertainties, such as
inflation, bank failures, rising interest rates and availability of
capital markets, geopolitical conflicts, wars, other economic
disruptions and U.S. and global recession concerns, on the
Company’s customers and suppliers and on the Company’s business,
financial condition, results of operations and cash flows and the
Company’s ability to draw down its revolver; the effect of the
worldwide political and social uncertainty and divisions, including
the impact on trade regulation and tariffs, that may adversely
impact the cost and sale of the Company’s products in certain
countries, or increase the costs the Company may incur to purchase
materials, parts and equipment from its suppliers; the ability to
execute acquisitions and the impact and anticipated benefits of
completed acquisitions and acquisitions the Company may complete in
the future; the development of new competitive technologies and
products and competition; the Company’s ability to predict
accurately the demand for its products, and products under
development and to develop strategies to address markets
successfully; continued demand for the Company’s COVID-19 assays;
potential cybersecurity threats and targeted computer crime; the
ongoing and possible future effects of supply chain constraints,
including the availability of critical raw materials and
components, including semiconductor chips, as well as cost
inflation in materials, packaging and transportation; the
possibility of interruptions or delays at the Company’s
manufacturing facilities, or the failure to secure alternative
suppliers if any of the Company’s sole source third-party
manufacturers fail to supply the Company; the ability to
consolidate certain of the Company’s manufacturing and other
operations on a timely basis and within budget, without disrupting
its business and to achieve anticipated cost synergies related to
such actions; the ability of the Company to successfully manage
leadership and organizational changes, including the ability of the
Company to attract, motivate and retain key employees and maintain
engagement and efficiency in remote work environments; the ability
to obtain regulatory approvals and clearances for the Company’s
products, including the implementation of the European Union
Medical Device Regulations, and to maintain compliance with complex
and evolving regulations; the Company’s reliance on third-party
reimbursement policies to support the sales and market acceptance
of its products, including the possible adverse impact of
government regulation and changes in the availability and amount of
reimbursement and uncertainties for new products or product
enhancements; changes to applicable laws and regulations, including
tax laws, global health care reform, and import/export trade laws;
changes in guidelines, recommendations and studies published by
various organizations that could affect the use of the Company’s
products; uncertainties inherent in the development of new products
and the enhancement of existing products, including FDA approval
and/or clearance and other regulatory risks, technical risks, cost
overruns and delays; the risk that products may contain undetected
errors or defects or otherwise not perform as anticipated; risks
associated with strategic alliances and the ability of the Company
to realize anticipated benefits of those alliances; the risks of
conducting business internationally; the risk of adverse exchange
rate fluctuations on the Company’s international activities and
businesses; the early stage of market development for certain of
the Company’s products; the Company’s leverage risks, including the
Company’s obligation to meet payment obligations and financial
covenants associated with its debt; the effect of any future public
health crises, including the timing, scope and effect of U.S. and
international governmental, regulatory, fiscal, monetary and public
health responses to such crises; risks related to the use and
protection of intellectual property; expenses, uncertainties and
potential liabilities relating to litigation, including, without
limitation, commercial, intellectual property, employment and
product liability litigation; and technical innovations that could
render products marketed or under development by the Company
obsolete.
The risks included above are not exhaustive. Other factors that
could adversely affect the Company's business and prospects are
described in the filings made by the Company with the SEC,
including its most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q. The Company expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any
such statements presented herein to reflect any change in
expectations or any change in events, conditions or circumstances
on which any such statements are based.
SOURCE: Hologic, Inc.
HOLOGIC, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
(Unaudited)
(In millions, except number of
shares, which are reflected in thousands, and per share data)
Three Months Ended
December 30,
2023
December 31,
2022
Revenues:
Product
$
828.1
$
886.3
Service and other
185.0
187.9
Total revenues
1,013.1
1,074.2
Cost of revenues:
Product
307.2
296.2
Amortization of acquired intangible
assets
45.5
55.6
Service and other
92.9
104.5
Gross profit
567.5
617.9
Operating expenses:
Research and development
66.8
74.8
Selling and marketing
148.9
163.5
General and administrative
111.8
108.5
Amortization of acquired intangible
assets
13.3
7.6
Impairment of intangible asset
4.3
—
Contingent consideration - fair value
adjustment
1.7
—
Restructuring charges
22.5
1.1
Total operating expenses
369.3
355.5
Income from operations:
198.2
262.4
Interest income
27.9
20.6
Interest expense
(26.0
)
(28.1
)
Other expense, net
(8.8
)
(15.8
)
Income before income taxes:
191.3
239.1
Provision (benefit) for income taxes
(55.2
)
51.7
Net income
$
246.5
$
187.4
Net income per common share:
Basic
$
1.03
$
0.76
Diluted
$
1.03
$
0.75
Weighted average number of shares
outstanding:
Basic
238,627
247,319
Diluted
240,214
249,281
HOLOGIC, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In millions)
December 30, 2023
September 30, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,932.1
$
2,722.5
Accounts receivable, net
670.9
625.6
Inventory
633.6
617.6
Other current assets
257.6
206.9
Assets held-for-sale - current assets
—
11.9
Total current assets
3,494.2
4,184.5
Property, plant and equipment, net
527.0
517.0
Goodwill and intangible assets
4,138.6
4,169.9
Other assets
309.7
267.9
Total assets
$
8,469.5
$
9,139.3
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term debt
$
37.4
$
287.0
Accounts payable and accrued
liabilities
671.0
712.9
Deferred revenue
190.6
199.2
Assets held-for-sale - current
liabilities
—
8.2
Total current liabilities
899.0
1,207.3
Long-term debt, net of current portion
2,522.7
2,531.2
Deferred income taxes
19.8
20.2
Other long-term liabilities
374.2
363.7
Total stockholders' equity
4,653.8
5,016.9
Total liabilities and stockholders’
equity
$
8,469.5
$
9,139.3
HOLOGIC, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Unaudited)
(in millions)
Three Months Ended
December 30, 2023
December 31, 2022
OPERATING ACTIVITIES
Net income
$
246.5
$
187.4
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
29.6
22.7
Amortization of acquired intangible
assets
58.8
63.2
Stock-based compensation expense
28.7
20.5
Deferred income taxes
(17.6
)
(26.2
)
Intangible asset impairment charge
4.3
—
Other adjustments and non-cash items
27.5
29.1
Changes in operating assets and
liabilities, excluding the effect of acquisitions and
dispositions:
Accounts receivable
(38.2
)
(45.0
)
Inventories
(13.0
)
(47.0
)
Prepaid income taxes
(70.1
)
17.9
Prepaid expenses and other assets
2.6
26.2
Accounts payable
7.2
1.5
Accrued expenses and other liabilities
(35.7
)
0.8
Deferred revenue
(10.6
)
2.3
Net cash provided by operating
activities
220.0
253.4
INVESTING ACTIVITIES
Sale of business, net of cash disposed
(31.3
)
—
Capital expenditures
(22.7
)
(15.8
)
Increase in equipment under customer usage
agreements
(15.3
)
(13.3
)
Purchase of strategic equity
investments
(34.5
)
(10.0
)
Other activity
(0.4
)
(1.9
)
Net cash used in investing activities
(104.2
)
(41.0
)
FINANCING ACTIVITIES
Repayment of long-term debt
(259.4
)
(3.8
)
Payment of deferred acquisition
consideration
—
(0.8
)
Repurchases of common stock
(676.8
)
(100.0
)
Proceeds from issuance of common stock
pursuant to employee stock plans
9.5
15.1
Payment of minimum tax withholdings on net
share settlements of equity awards
(16.2
)
(23.0
)
Payments under finance lease
obligations
(0.9
)
(1.0
)
Net cash used in financing activities
(943.8
)
(113.5
)
Effect of exchange rate changes on cash
and cash equivalents
4.4
2.9
Net (decrease) increase in cash and cash
equivalents
(823.6
)
101.8
Cash and cash equivalents, beginning of
period*
2,755.7
2,339.5
Cash and cash equivalents, end of
period
$
1,932.1
$
2,441.3
*Includes $33.2 million of cash recorded within assets
held-for-sale - current assets as of September 30, 2023.
HOLOGIC, INC.
RECONCILIATION OF GAAP TO
NON-GAAP RESULTS
(Unaudited)
(In millions, except earnings per
share)
Reconciliation of GAAP Revenue to
Organic Revenue excluding COVID-19
Three Months Ended
December 30, 2023
December 31, 2022
Consolidated GAAP Revenue
$
1,013.1
$
1,074.2
Less: Blood Screening revenue
(8.0
)
(7.3
)
Less: SSI revenue
(0.7
)
(4.5
)
Organic Revenue
$
1,004.4
$
1,062.4
Less: COVID-19 Assays
(26.8
)
(126.9
)
Less: COVID-19 Related Revenue*
(24.6
)
(36.3
)
Less: Discontinued Product Revenue
(0.3
)
(1.2
)
Organic Revenue excluding
COVID-19
$
952.7
$
898.0
*Revenues estimated to be related to COVID assay sales for
instruments, collection kits and ancillaries.
Three Months Ended
December 30, 2023
December 31, 2022
Gross Profit:
GAAP gross profit
$
567.5
$
617.9
Adjustments:
Amortization of acquired intangible assets
(1)
45.5
55.6
Product line discontinuance (13)
2.8
—
Non-GAAP gross profit
$
615.8
$
673.5
Gross Margin Percentage:
GAAP gross margin percentage
56.0
%
57.5
%
Impact of adjustments above
4.8
%
5.2
%
Non-GAAP gross margin percentage
60.8
%
62.7
%
Operating Expenses:
GAAP operating expenses
$
369.3
$
355.5
Adjustments:
Amortization of acquired intangible assets
(1)
(13.3
)
(7.6
)
Impairment of intangible asset (14)
(4.3
)
—
Transaction expenses (4)
(0.2
)
—
Contingent consideration adjustment
(7)
(1.7
)
—
Integration/consolidation costs (3)
—
(0.3
)
MDR expenses (2)
—
(0.8
)
Legal related settlements (11)
—
(1.5
)
Restructuring charges (3)
(22.5
)
(1.1
)
Non-income tax charge (5)
—
(4.8
)
Non-GAAP operating expenses
$
327.3
$
339.4
Operating Margin:
GAAP income from operations
$
198.2
$
262.4
Adjustments to gross profit as detailed
above
48.3
55.6
Adjustments to operating expenses as
detailed above
42.0
16.1
Non-GAAP income from operations
$
288.5
$
334.1
Operating Margin Percentage:
GAAP income from operations margin
percentage
19.6
%
24.4
%
Impact of adjustments above
8.9
%
6.7
%
Non-GAAP operating margin percentage
28.5
%
31.1
%
Pre-Tax Income:
GAAP pre-tax earnings
$
191.3
$
239.1
Adjustments to pre-tax earnings as
detailed above
90.3
71.7
Debt extinguishment loss (6)
0.4
—
Unrealized losses on forward foreign
currency contracts (8)
12.5
20.0
Non-GAAP pre-tax income
$
294.5
$
330.8
Net Income:
GAAP net income
$
246.5
$
187.4
Adjustments:
Amortization of acquired intangible assets
(1)
58.8
63.2
Impairment of intangible asset (14)
4.3
—
Restructuring and
integration/consolidation costs (3)
22.5
1.4
Product line discontinuance (13)
2.8
—
MDR expenses (2)
—
0.8
Debt extinguishment loss (6)
0.4
—
Legal related settlements (11)
—
1.5
Acquisition related expenses and
adjustments (4)
0.2
—
Contingent consideration adjustment
(7)
1.7
—
Unrealized losses on forward foreign
currency contracts (8)
12.5
20.0
Non-income tax charge (5)
—
4.8
Worthless stock deduction (15)
(107.2
)
—
Income tax related items (9)
9.4
9.8
Income tax effect of reconciling items
(12)
(15.5
)
(21.0
)
Non-GAAP net income
$
236.4
$
267.9
Net Income Percentage:
GAAP net income percentage
24.3
%
17.4
%
Impact of adjustments above
(1.0
)%
7.5
%
Non-GAAP net income percentage
23.3
%
24.9
%
Earnings per Share:
GAAP income per share - Diluted
$
1.03
$
0.75
Adjustment to net income (as detailed
above)
(0.05
)
0.32
Non-GAAP earnings per share – diluted
(10)
$
0.98
$
1.07
EBITDA:
GAAP net income
$
246.5
$
187.4
Interest (income) expense, net
(1.9
)
7.5
Provision (benefit) for income taxes
(55.2
)
51.7
Depreciation expense
29.6
22.7
Amortization expense
58.8
63.2
EBITDA
$
277.8
$
332.5
Adjustments to net income, detailed above
except amortization expense and accelerated depreciation
37.2
28.5
Adjusted EBITDA
$
315.0
$
361.0
Explanatory Notes to Reconciliations:
(1)
To reflect non-cash expenses attributable
to the amortization of acquired intangible assets.
(2)
To reflect the exclusion of third-party
expenses incurred to obtain compliance with the European Medical
Device Regulation requirement for the Company's existing products
for which it already has FDA approval and/or CE mark.
(3)
To reflect restructuring charges, and
certain costs associated with the Company’s integration and
facility consolidation plans, which primarily include severance,
retention and transfer costs, as well as costs incurred to
integrate acquisitions, including consulting, legal and tax fees.
In addition, this category includes additional expenses, primarily
accelerated depreciation and an impairment on a lease asset
incurred in fiscal 2024 related to closing certain facilities in
the Diagnostics business.
(4)
To reflect expenses with third parties
related to acquisitions prior to when such transactions are
completed. These expenses primarily comprise legal, consulting and
due diligence fees.
(5)
To reflect the net impact of establishing
a non-income tax loss contingency related to prior years and the
settlement of a prior year non-income tax audit.
(6)
To reflect a debt extinguishment loss on a
prepayment of debt on the Credit Agreement in first quarter of
fiscal 2024.
(7)
To reflect an adjustment to the estimated
contingent consideration liability related to the Acessa Health
acquisition, which is payable upon meeting defined revenue growth
metrics.
(8)
To reflect non-cash unrealized gains and
losses on the mark-to market on outstanding forward foreign
currency contracts, which have not been designated for hedge
accounting.
(9)
To reflect the net impact of income tax
reserves from the statute of limitations expiration, non-recurring
income tax charges and benefits, and interest related to prior
years' income tax reserves.
(10)
Non-GAAP earnings per share was calculated
based on 240,214 and 249,281 weighted average diluted shares
outstanding for the three months ended December 30, 2023 and
December 31, 2022, respectively.
(11)
To reflect net charges and benefits from
legal related settlements.
(12)
To reflect the tax effects of Non-GAAP
reconciling items, excluding specific income tax related items
separately stated in Note 9 and the worthless stock deduction in
Note 15. Amounts are calculated using the effective tax rate in the
jurisdiction to which the adjustment relates.
(13)
To reflect the write-off of inventory
related to a product line discontinuance in the Diagnostics
division.
(14)
To reflect an impairment charge for an in
process research and development intangible asset acquired in the
Mobidiag acquisition.
(15)
To reflect the discrete tax benefit
related to a worthless stock deduction on the investment in one of
the Company’s international subsidiaries.
Reconciliation of GAAP to non-GAAP EPS
Guidance:
Guidance Range
Guidance Range
Quarter Ending March 30,
2024
Year Ending September 28,
2024
Low
High
Low
High
GAAP Net Income Per
Share
$0.77
$0.82
$3.52
$3.67
Amortization of acquired intangible
assets
0.21
0.21
0.88
0.88
Impairment of intangible assets
—
—
0.02
0.02
Restructuring, Integration and Other
charges
0.01
0.01
0.16
0.16
Non-operating charges
—
—
0.05
0.05
Worthless stock deduction
—
—
(0.45)
(0.45)
Tax Impact of exclusions
(0.04)
(0.04)
(0.21)
(0.21)
Non-GAAP Net Income Per Share
$0.95
$1.00
$3.97
$4.12
Trailing Twelve Months Ended
December 30, 2023
Return on Invested Capital:
ROIC
Adjustments
Adjusted ROIC
Adjusted Net Operating Profit After
Tax
Net Income
$
515.1
$
437.6
$
952.7
Plus:
Provision for income taxes
113.2
124.4
237.6
Interest expense
109.0
—
109.0
Other income
(133.1
)
(4.3
)
(137.4
)
Adjusted net operating profit before
tax
$
604.2
$
557.7
$
1,161.9
Effective tax rate (1)
18.0
%
22.1
%
20.0
%
Adjusted net operating profit after
tax
$
495.4
$
434.5
$
929.9
Average Net Debt plus Average
Stockholders' Equity (2)
Average total debt
$
2,693.5
$
—
$
2,693.5
Less: Average cash and cash
equivalents
(2,186.7
)
—
(2,186.7
)
Average net debt
$
506.8
$
—
$
506.8
Average stockholders' equity (3)
4,873.2
1,477.2
6,350.4
Average net debt plus average
stockholders' equity
$
5,380.0
$
1,477.2
$
6,857.2
Return on Invested Capital
9.2
%
13.6
%
(1) ROIC is presented on a TTM basis; non-GAAP effective tax
rate for the three months ended April 1, 2023 was 19.0%, the three
months ended July 1, 2023 was 21.43%, the three months ended
September 30, 2023 was 19.75% and the three months ended December
30, 2023 was 19.75%.
(2) Calculated using the average of the balances as of December
30, 2023 and December 31, 2022.
(3) For Adjusted ROIC, stockholder's equity is adjusted
(increased) to eliminate the effect of the impairment of intangible
assets of $32.2 million in fiscal 2014, the impairment of goodwill
of $685.7 million and an IPR&D asset of $46.0 million in fiscal
2018, the impairment of intangible assets and equipment of $685.4
million in fiscal 2019, the impairment of intangible assets and
equipment of $30.2 million in fiscal 2020, the impairment of
intangible assets of $45.1 million in fiscal 2022, the impairment
of intangible assets and equipment of $223.8 million in fiscal 2023
and the impairment of an intangible asset of $4.3 million in the
first quarter of fiscal 2024. The impact of the intangible asset
impairment charges is reflected net of tax.
As of December 30,
2023
Net Leverage Ratio:
Adjusted Net
Leverage Ratio:
Total principal debt
$
2,575.6
$
2,575.6
Total cash and cash equivalents
(1,932.1
)
(1,932.1
)
Net principal debt
$
643.5
$
643.5
EBITDA for the last four quarters
$
935.3
$
1,260.6
Net Leverage Ratio
0.69
0.51
Other Supplemental Information:
Three Months Ended
December 30,
2023
December 31,
2022
Geographic Revenues
U.S.
74.4
%
76.7
%
Europe
14.1
%
13.7
%
Asia-Pacific
6.3
%
5.9
%
All Others
5.2
%
3.7
%
Total Revenues
100.0
%
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240201564972/en/
Ryan Simon Vice President, Investor Relations
Ryan.Simon@hologic.com (858) 410-8514
Hologic (NASDAQ:HOLX)
過去 株価チャート
から 5 2024 まで 6 2024
Hologic (NASDAQ:HOLX)
過去 株価チャート
から 6 2023 まで 6 2024