Fourth Quarter 2023
- Net sales of $1.72 billion,
decrease of 4.0%; core organic decline of 4.8%
- Net income of $98.5 million;
Adjusted EBITDA of $302.1
million
- Diluted GAAP EPS of $0.15;
adjusted EPS of $0.25
- Operating cash flow of $251.6
million; free cash flow of $201.0
million
Full Year 2023
- Net sales of $6.97 billion,
decrease of 7.3%; core organic decline of 5.2%
- Net income of $321.1 million;
Adjusted EBITDA of $1,309.1
million
- Diluted GAAP EPS of $0.47;
adjusted EPS of $1.06
- Operating cash flow of $870.0
million; free cash flow of $723.6
million
- Adjusted net leverage of 3.9X; repaid approximately
$850 million of debt in 2023
RADNOR,
Pa., Feb. 14, 2024 /PRNewswire/ -- Avantor,
Inc. (NYSE: AVTR), a leading global provider of mission-critical
products and services to customers in the life sciences and
advanced technology industries, today reported financial results
for the fourth quarter and year ended December 31, 2023.
"We had a solid finish to the year with fourth quarter revenue,
margin and adjusted EPS coming in at the high end of our updated
guidance. Our free cash flow for the year exceeded the top end of
our guidance range, representing more than 120% conversion in the
quarter. I am proud of our commercial team's continued drive and
intensity, which resulted in additional wins and expanded
relationships among biotech, biopharma, and academic customers.
Avantor's results reflect our focus on operating with discipline
through our Avantor Business System, our market position, and our
relevance to customers' workflows," said Michael Stubblefield, President and Chief
Executive Officer.
"Looking ahead to 2024, while we are seeing encouraging signs
from our customers and end markets, we have not yet seen an
inflection point. We are continuing to take actions that position
Avantor for long-term growth, including advancing our new operating
model which unlocks significant operating efficiencies, sharpens
our focus on accelerating innovation, and builds on the strength of
our platform."
Fourth Quarter 2023
For the three months ended December 31,
2023, net sales were $1.72
billion, a decrease of 4.0% compared to the fourth quarter
of 2022. Foreign currency translation had a favorable impact of
1.9% resulting in an organic sales decline of 5.9% and core organic
sales decline (excluding COVID-19 headwinds) of 4.8%. Net income
decreased to $98.5 million from
$141.7 million in the fourth quarter
of 2022 and adjusted net income was $166.7
million as compared to $214.0
million in the comparable prior period. Adjusted EBITDA was
$302.1 million and adjusted EBITDA
margin was 17.5%.
Diluted earnings per share on a GAAP basis was $0.15, while adjusted EPS was $0.25.
Operating cash flow in the quarter was $251.6 million, while free cash flow was
$201.0 million.
Full Year 2023
For the full year ended December 31,
2023, net sales were $6.97
billion, a decrease of 7.3% compared to 2022. Foreign
currency translation had a favorable impact of 0.5% resulting in an
organic sales decline of 7.8% and core organic sales decline
(excluding COVID-19 headwinds) of 5.2%. Net income decreased to
$321.1 million from $686.5 million in 2022 and adjusted net income
was $720.1 million as compared to
$955.5 million in 2022. Adjusted
EBITDA was $1,309.1 million and
adjusted EBITDA margin was 18.8%.
Diluted earnings per share on a GAAP basis was $0.47, while adjusted EPS was $1.06.
Operating cash flow was $870.0
million, while free cash flow was $723.6 million.
Adjusted net leverage was 3.9X as of December 31, 2023, and we have repaid
approximately $850 million of total
debt in 2023.
Fourth Quarter 2023 – Segment Results
Management uses Adjusted EBITDA to measure and evaluate the
internal operating performance of our Company's business segments.
Adjusted EBITDA is also our segment reporting profitability measure
under generally accepted accounting principles.
Americas
- Net sales were $994.8 million, a
reported decrease of 5.1%, as compared to $1,048.0 million in the fourth quarter of 2022.
Core organic sales decreased 3.8%.
- Adjusted EBITDA margin decreased approximately 180 basis points
to 20.2%.
Europe
- Net sales were $603.5 million, a
reported decrease of 2.2%, as compared to $617.2 million in the fourth quarter of 2022.
Core organic sales decreased 6.8%.
- Adjusted EBITDA margin decreased approximately 240 basis points
to 18.8%.
AMEA
- Net sales were $124.5 million, a
reported decrease of 4.1%, as compared to $129.8 million in the fourth quarter of 2022.
Core organic sales decreased 3.5%.
- Adjusted EBITDA margin decreased approximately 570 basis points
to 25.4%.
Full Year 2023 – Segment Results
Americas
- Net sales were $4,071.6 million,
a reported decrease of 8.9%, as compared to $4,471.2 million in 2022. Core organic sales
decreased 6.1%.
- Adjusted EBITDA margin decreased approximately 170 basis points
to 22.4%.
Europe
- Net sales were $2,420.4 million,
a reported decrease of 3.8%, as compared to $2,516.5 million in 2022. Core organic sales
decreased 3.9%.
- Adjusted EBITDA margin decreased approximately 220 basis points
to 18.6%.
AMEA
- Net sales were $475.2 million, a
reported decrease of 9.4%, as compared to $524.7 million in 2022. Core organic sales
decreased 4.2%.
- Adjusted EBITDA margin decreased approximately 60 basis points
to 26.4%.
Conference Call
We will host a conference call to
discuss our results today, February 14,
2024, at 8:00 a.m. Eastern
Time. The live webcast and presentation as well as a replay
will be available on the investor section of Avantor's website.
About Avantor
Avantor®, a Fortune 500
company, is a leading global provider of mission-critical products
and services to customers in the biopharma, healthcare, education
& government, and advanced technologies & applied materials
industries. Our portfolio is used in virtually every stage of the
most important research, development and production activities in
the industries we serve. Our global footprint enables us to serve
more than 300,000 customer locations and gives us extensive access
to research laboratories and scientists in more than 180 countries.
We set science in motion to create a better world. For more
information, please visit www.avantorsciences.com.
Use of Non-GAAP Financial Measures
To evaluate our
performance, we monitor a number of key indicators. As appropriate,
we supplement our results of operations determined in accordance
with U.S. generally accepted accounting principles ("GAAP") with
certain non-GAAP financial measurements that we believe are useful
to investors, creditors and others in assessing our performance.
These measures should not be considered in isolation or as a
substitute for reported GAAP results because they may include or
exclude certain items as compared to similar GAAP-based measures,
and such measures may not be comparable to similarly titled
measures reported by other companies. Rather, these measures should
be considered as an additional way of viewing aspects of our
operations that provide a more complete understanding of our
business. We strongly encourage investors to review our
consolidated financial statements included in reports filed with
the SEC in their entirety and not rely solely on any one, single
financial measurement or communication.
The non-GAAP financial measures used in this press release are
sales growth (decline) on an organic basis, sales growth (decline)
on a core organic basis, Adjusted EBITDA, adjusted net income,
adjusted EPS, adjusted net leverage and free cash flow.
- Sales growth (decline) on an organic basis eliminates from our
reported net sales growth (decline) the impacts of earnings from
any acquired or disposed businesses that have been owned for less
than one year and changes in foreign currency exchange rates. Sales
growth (decline) on a core organic basis eliminates from our
organic growth (decline) the impacts of any COVID-19 related net
sales. We believe that these measurements are useful as a way to
measure and evaluate our underlying commercial operating
performance consistently across our segments and the periods
presented.
- Adjusted EBITDA is to measure and evaluate our operating
performance exclusive of interest expense, income tax expense,
depreciation, amortization and certain other adjustments. We
believe that this measurement is useful as a way to analyze the
underlying trends in our business consistently across the periods
presented.
- Adjusted net income is our net income or loss first adjusted
for the following items: (i) amortization of acquired intangible
assets, (ii) net foreign currency remeasurement gains or losses
relating to financing activities, (iii) losses on extinguishment of
debt, (iv) charges associated with the impairment of certain
assets, (v) other costs or credits that are either isolated or
cannot be expected to recur with any regularity or predictability.
From this amount, we then add or subtract an assumed incremental
income tax impact on the above noted pre-tax adjustments, using
estimated tax rates, to arrive at Adjusted Net Income. We believe
that this measurement is useful to investors as a way to analyze
the business consistently across the periods presented. This
measurement is used by our management for the same reason.
- Adjusted EPS is our adjusted net income divided by our diluted
GAAP weighted average share count adjusted for anti-dilutive
instruments. We believe that this measurement is useful to
investors as an additional way to analyze the underlying trends in
our business consistently across the periods presented. This
measurement is used by our management for the same reason.
- Adjusted net leverage is equal to our gross debt, reduced by
our cash and cash equivalents, divided by our trailing 12-month
Adjusted EBITDA (excluding stock-based compensation expense and
including the expected run-rate effect of cost synergies and the
incremental results of completed acquisitions as if those
acquisitions had occurred on the first day of the trailing 12-month
period). We believe that this measurement is useful to investors as
a way to evaluate and measure the Company's capital allocation
strategies and the underlying trends in the business. This
measurement is used by our management for the same reason.
- Free cash flow is equal to our cash flow from operating
activities, excluding acquisition-related costs paid in the period,
less capital expenditures. We believe that this measurement is
useful as it provides a view on the Company's ability to generate
cash for use in financing or investment activities.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
tables accompanying this release.
Forward-Looking and Cautionary Statements
This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, and are subject to the safe harbor
created thereby under the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact
included in this press release are forward-looking statements.
Forward-looking statements discuss our current expectations and
projections relating to our financial condition, results of
operations, plans, objectives, future performance and business.
These statements may be preceded by, followed by or include the
words "aim," "anticipate," "assumption," "believe," "continue,"
"estimate," "expect," "forecast," "goal," "guidance," "intend,"
"likely," "long-term," "near-term," "objective," "opportunity,"
"outlook," "plan," "potential," "project," "projection,"
"prospects," "seek," "target," "trend," "can," "could," "may,"
"should," "would," "will," the negatives thereof and other words
and terms of similar meaning.
Forward-looking statements are inherently subject to risks,
uncertainties and assumptions; they are not guarantees of
performance. You should not place undue reliance on these
statements. We have based these forward-looking statements on our
current expectations and projections about future events. Although
we believe that our assumptions made in connection with the
forward-looking statements are reasonable, we cannot assure you
that the assumptions and expectations will prove to be correct.
Factors that could contribute to these risks, uncertainties and
assumptions include, but are not limited to, the factors described
in "Risk Factors" in our most recent Annual Report on Form 10-K and
subsequent quarterly reports on Form 10-Q, as such risk factors may
be updated from time to time in our periodic filings with the
SEC.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the foregoing cautionary statements. In addition, all
forward-looking statements speak only as of the date of this press
release. We undertake no obligations to update or revise publicly
any forward-looking statements, whether as a result of new
information, future events or otherwise other than as required
under the federal securities laws.
Investor Relations Contact
Christina Jones
Vice President, Investor Relations
Avantor
+1 805-617-5297
Christina.Jones@avantorsciences.com
Media Contact
Emily
Collins
Vice President, External Communications
Avantor
+1 332-239-3910
Emily.Collins@avantorsciences.com
Avantor, Inc. and
subsidiaries
|
Consolidated
statements of operations
|
|
(in millions, except per share
data)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net sales
|
$
1,722.8
|
|
$
1,795.0
|
|
$
6,967.2
|
|
$
7,512.4
|
Cost of
sales
|
1,152.4
|
|
1,180.5
|
|
4,603.4
|
|
4,909.6
|
Gross
profit
|
570.4
|
|
614.5
|
|
2,363.8
|
|
2,602.8
|
Selling, general and
administrative expenses
|
387.1
|
|
362.7
|
|
1,506.6
|
|
1,472.6
|
Impairment
charges
|
—
|
|
—
|
|
160.8
|
|
—
|
Operating
income
|
183.3
|
|
251.8
|
|
696.4
|
|
1,130.2
|
Interest expense,
net
|
(65.3)
|
|
(69.8)
|
|
(284.8)
|
|
(265.8)
|
Loss on extinguishment
of debt
|
(1.0)
|
|
(1.7)
|
|
(6.9)
|
|
(12.5)
|
Other income (expense),
net
|
2.5
|
|
(5.6)
|
|
5.8
|
|
(0.8)
|
Income before income
taxes
|
119.5
|
|
174.7
|
|
410.5
|
|
851.1
|
Income tax
expense
|
(21.0)
|
|
(33.0)
|
|
(89.4)
|
|
(164.6)
|
Net income
|
98.5
|
|
141.7
|
|
321.1
|
|
686.5
|
Accumulation of yield
on preferred stock
|
—
|
|
—
|
|
—
|
|
(24.2)
|
Net income available
to common
stockholders
|
$ 98.5
|
|
$ 141.7
|
|
$ 321.1
|
|
$ 662.3
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$ 0.15
|
|
$ 0.21
|
|
$ 0.48
|
|
$ 1.02
|
Diluted
|
$ 0.15
|
|
$ 0.21
|
|
$ 0.47
|
|
$ 1.01
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
676.4
|
|
674.2
|
|
675.6
|
|
650.9
|
Diluted
|
679.2
|
|
677.1
|
|
678.4
|
|
679.4
|
Avantor, Inc. and
subsidiaries
|
Consolidated balance
sheets
|
|
(in millions)
|
December 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
262.9
|
|
$
372.9
|
Accounts receivable,
net
|
1,150.2
|
|
1,218.4
|
Inventory
|
828.1
|
|
913.5
|
Other current
assets
|
143.7
|
|
153.1
|
Total current
assets
|
2,384.9
|
|
2,657.9
|
Property, plant and
equipment, net
|
737.5
|
|
727.0
|
Other intangible
assets, net
|
3,775.3
|
|
4,133.3
|
Goodwill,
net
|
5,716.7
|
|
5,652.6
|
Other assets
|
358.3
|
|
293.5
|
Total
assets
|
$ 12,972.7
|
|
$
13,464.3
|
Liabilities and stockholders'
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
debt
|
$
259.9
|
|
$
364.2
|
Accounts
payable
|
625.9
|
|
758.2
|
Employee-related
liabilities
|
133.1
|
|
122.4
|
Accrued
interest
|
50.2
|
|
49.9
|
Other current
liabilities
|
411.2
|
|
364.1
|
Total current
liabilities
|
1,480.3
|
|
1,658.8
|
Debt, net of current
portion
|
5,276.7
|
|
5,923.3
|
Deferred income tax
liabilities
|
612.8
|
|
731.4
|
Other
liabilities
|
350.3
|
|
295.4
|
Total
liabilities
|
7,720.1
|
|
8,608.9
|
Stockholders'
equity:
|
|
|
|
Common stock including
paid-in capital
|
3,830.1
|
|
3,785.3
|
Accumulated
earnings
|
1,491.5
|
|
1,170.4
|
Accumulated other
comprehensive loss
|
(69.0)
|
|
(100.3)
|
Total stockholders'
equity
|
5,252.6
|
|
4,855.4
|
Total liabilities and
stockholders' equity
|
$ 12,972.7
|
|
$
13,464.3
|
Avantor, Inc. and
subsidiaries
|
Consolidated
statements of cash flows
|
|
(in millions)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$ 98.5
|
|
$ 141.7
|
|
$ 321.1
|
|
$ 686.5
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
100.6
|
|
100.7
|
|
402.3
|
|
405.5
|
Impairment
charges
|
—
|
|
—
|
|
160.8
|
|
—
|
Stock-based
compensation expense
|
8.8
|
|
10.0
|
|
40.5
|
|
45.8
|
Provision for accounts
receivable and
inventory
|
22.0
|
|
21.1
|
|
84.5
|
|
65.0
|
Deferred income tax
benefit
|
(78.3)
|
|
(7.3)
|
|
(172.4)
|
|
(69.1)
|
Amortization of
deferred financing costs
|
3.1
|
|
3.6
|
|
13.0
|
|
15.7
|
Loss on extinguishment
of debt
|
1.0
|
|
1.7
|
|
6.9
|
|
12.5
|
Foreign currency
remeasurement loss (gain)
|
0.5
|
|
5.1
|
|
(2.6)
|
|
10.0
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
21.9
|
|
53.8
|
|
77.0
|
|
(45.2)
|
Inventory
|
21.2
|
|
1.6
|
|
30.3
|
|
(112.5)
|
Accounts
payable
|
(43.8)
|
|
(49.5)
|
|
(139.6)
|
|
15.6
|
Accrued
interest
|
10.6
|
|
11.3
|
|
0.3
|
|
0.1
|
Other assets and
liabilities
|
87.1
|
|
(81.3)
|
|
48.6
|
|
(179.3)
|
Other
|
(1.6)
|
|
(6.9)
|
|
(0.7)
|
|
(7.0)
|
Net cash provided by
operating
activities
|
251.6
|
|
205.6
|
|
870.0
|
|
843.6
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Capital
expenditures
|
(50.6)
|
|
(33.6)
|
|
(146.4)
|
|
(133.4)
|
Cash paid for
acquisitions, net of cash acquired
|
—
|
|
—
|
|
—
|
|
(20.2)
|
Cash proceeds from
settlement of cross
currency swap
|
—
|
|
—
|
|
—
|
|
42.5
|
Other
|
0.6
|
|
0.5
|
|
2.7
|
|
1.5
|
Net cash used in
investing activities
|
(50.0)
|
|
(33.1)
|
|
(143.7)
|
|
(109.6)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Debt
borrowings
|
—
|
|
82.2
|
|
—
|
|
327.2
|
Debt
repayments
|
(188.1)
|
|
(164.0)
|
|
(846.0)
|
|
(947.0)
|
Payments of debt
refinancing fees and
premiums
|
—
|
|
(0.6)
|
|
(2.3)
|
|
(0.6)
|
Proceeds from issuance
of stock, net of
issuance costs
|
—
|
|
—
|
|
—
|
|
—
|
Payments of dividends
on preferred stock
|
—
|
|
—
|
|
—
|
|
(32.4)
|
Proceeds received from
exercise of stock
options
|
4.2
|
|
0.9
|
|
18.3
|
|
17.3
|
Shares repurchased to
satisfy employee tax
obligations for vested stock-based
awards
|
(0.2)
|
|
(0.1)
|
|
(13.7)
|
|
(13.2)
|
Net cash (used in)
provided by
financing activities
|
(184.1)
|
|
(81.6)
|
|
(843.7)
|
|
(648.7)
|
Effect of currency rate
changes on cash and cash
equivalents
|
9.5
|
|
18.2
|
|
8.2
|
|
(15.5)
|
Net change in cash,
cash equivalents and restricted
cash
|
27.0
|
|
109.1
|
|
(109.2)
|
|
69.8
|
Cash, cash equivalents
and restricted cash,
beginning of period
|
260.7
|
|
287.8
|
|
396.9
|
|
327.1
|
Cash, cash equivalents
and restricted cash, end of
period
|
$ 287.7
|
|
$ 396.9
|
|
$ 287.7
|
|
$ 396.9
|
Avantor, Inc. and
subsidiaries
|
Reconciliations of non-GAAP
measures
|
|
(in millions)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
$ 98.5
|
|
$ 141.7
|
|
$ 321.1
|
|
$ 686.5
|
Amortization
|
75.0
|
|
78.5
|
|
307.7
|
|
318.3
|
Loss on extinguishment
of debt
|
1.0
|
|
1.7
|
|
6.9
|
|
12.5
|
Net foreign currency
(gain) loss from financing
activities
|
(0.8)
|
|
7.2
|
|
(3.1)
|
|
7.0
|
Other stock-based
compensation expense
(benefit)
|
0.2
|
|
—
|
|
0.3
|
|
(3.3)
|
Integration-related
expenses1
|
(0.7)
|
|
5.6
|
|
7.6
|
|
19.2
|
Purchase accounting
adjustments2
|
—
|
|
—
|
|
—
|
|
9.4
|
Restructuring and
severance charges3
|
8.5
|
|
(0.2)
|
|
26.5
|
|
3.5
|
Reserve for certain
legal matters4
|
3.1
|
|
—
|
|
7.1
|
|
—
|
Impairment
charges5
|
—
|
|
—
|
|
160.8
|
|
—
|
Transformation
expenses6
|
5.4
|
|
—
|
|
5.4
|
|
—
|
Income tax benefit
applicable to pretax
adjustments
|
(23.5)
|
|
(20.5)
|
|
(120.2)
|
|
(97.6)
|
Adjusted net
income
|
166.7
|
|
214.0
|
|
720.1
|
|
955.5
|
Interest expense,
net
|
65.3
|
|
69.8
|
|
284.8
|
|
265.8
|
Depreciation
|
25.6
|
|
22.2
|
|
94.6
|
|
87.2
|
Income tax provision
applicable to Adjusted Net
income
|
44.5
|
|
53.5
|
|
209.6
|
|
262.2
|
Adjusted
EBITDA
|
$ 302.1
|
|
$ 359.5
|
|
$
1,309.1
|
|
$
1,570.7
|
━━━━━━━━━
|
1.
|
Represents
non-recurring direct costs incurred with third-parties and the
accrual of a long-term retention incentive to integrate acquired
companies. These expenses represent incremental costs and are
unrelated to normal operations of our business. Integration
expenses are incurred over a pre-defined integration period
specific to each acquisition.
|
2.
|
Represents the non-cash
reduction of contingent consideration related to the Ritter
acquisition and the amortization of the purchase accounting
adjustment to record Masterflex and Ritter inventory at fair
value.
|
3.
|
Reflects the
incremental expenses incurred in the period related to initiatives
to increase profitability and productivity. Typical costs included
in this caption are employee severance, site-related exit costs,
and contract termination costs.
|
4.
|
Represents charges and
legal costs in connection with certain litigation and other
contingencies that are unrelated to our core operations and not
reflective of on-going business and operating results.
|
5.
|
Related to impairment
of the Ritter asset group.
|
6.
|
Represents
non-recurring, incremental expenses directly associated with the
Company's publicly-announced program to transform our operating
model.
|
Avantor, Inc. and
subsidiaries
|
Reconciliations of non-GAAP measures
(continued)
|
Earnings per share
|
|
(shares in millions)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Diluted Earnings per
share (GAAP)
|
$ 0.15
|
|
$ 0.21
|
|
$ 0.47
|
|
$ 1.01
|
Dilutive impact of
convertible instruments
|
—
|
|
—
|
|
—
|
|
—
|
Fully diluted Earnings
per share (non-GAAP)
|
0.15
|
|
0.21
|
|
0.47
|
|
1.01
|
Amortization
|
0.11
|
|
0.12
|
|
0.45
|
|
0.47
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
0.01
|
|
0.01
|
Net foreign currency
loss from financing activities
|
—
|
|
0.01
|
|
—
|
|
0.01
|
Other stock-based
compensation expense
|
—
|
|
—
|
|
—
|
|
—
|
Integration-related
expenses
|
—
|
|
0.01
|
|
0.01
|
|
0.03
|
Purchase accounting
adjustments
|
—
|
|
—
|
|
—
|
|
0.01
|
Restructuring and
severance charges
|
0.01
|
|
—
|
|
0.04
|
|
0.01
|
Reserve for certain
legal matters
|
—
|
|
—
|
|
0.01
|
|
—
|
Impairment
charges
|
—
|
|
—
|
|
0.24
|
|
—
|
Transformation
expenses
|
0.01
|
|
|
|
0.01
|
|
|
Income tax benefit
applicable to pretax adjustments
|
(0.03)
|
|
(0.03)
|
|
(0.18)
|
|
(0.14)
|
Adjusted EPS
(non-GAAP)
|
$ 0.25
|
|
$ 0.32
|
|
$ 1.06
|
|
$ 1.41
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Diluted
(GAAP)
|
679.2
|
|
677.1
|
|
678.4
|
|
679.4
|
Incremental shares
excluded for GAAP
|
—
|
|
—
|
|
—
|
|
—
|
Share count for
Adjusted EPS (non-GAAP)
|
679.2
|
|
677.1
|
|
678.4
|
|
679.4
|
Avantor, Inc. and
subsidiaries
|
Reconciliations of non-GAAP measures
(continued)
|
Free cash flow
|
|
(in millions)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
$
251.6
|
|
$
205.6
|
|
$
870.0
|
|
$
843.6
|
Capital
expenditures
|
(50.6)
|
|
(33.6)
|
|
(146.4)
|
|
(133.4)
|
Free cash flow
(non-GAAP)
|
$
201.0
|
|
$
172.0
|
|
$
723.6
|
|
$
710.2
|
Adjusted net
leverage
|
|
(dollars in millions)
|
December 31,
2023
|
Total debt,
gross
|
$ 5,580.0
|
Less cash and cash
equivalents
|
(262.9)
|
|
$ 5,317.1
|
|
|
Trailing twelve months
Adjusted EBITDA
|
$ 1,309.1
|
Trailing twelve months
ongoing stock-based compensation expense
|
40.2
|
|
$ 1,349.3
|
|
|
Adjusted net leverage
(non-GAAP)
|
3.9 x
|
Avantor, Inc. and
subsidiaries
|
Reconciliations of non-GAAP measures
(continued)
|
Net sales
|
|
(in millions)
|
December 31
|
|
Reconciliation of net sales growth (decline) to
organic and
core organic net sales growth (decline)
|
Net sales
growth
(decline)
|
|
Foreign
currency
impact
|
|
Organic
net
sales
growth
(decline)
|
|
COVID -
19
|
|
Core
organic
net sales
growth
(decline)1
|
2023
|
|
2022
|
|
|
|
Three months
ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$ 994.8
|
|
$
1,048.0
|
|
$ (53.2)
|
|
$
1.5
|
|
$ (54.7)
|
|
$ (14.7)
|
|
$ (40.0)
|
Europe
|
603.5
|
|
617.2
|
|
(13.7)
|
|
31.1
|
|
(44.8)
|
|
(2.5)
|
|
(42.3)
|
AMEA
|
124.5
|
|
129.8
|
|
(5.3)
|
|
0.9
|
|
(6.2)
|
|
(1.7)
|
|
(4.5)
|
Total
|
$
1,722.8
|
|
$
1,795.0
|
|
$ (72.2)
|
|
$ 33.5
|
|
$
(105.7)
|
|
$ (18.9)
|
|
$ (86.8)
|
Year ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
4,071.6
|
|
$
4,471.2
|
|
$
(399.6)
|
|
$
(2.2)
|
|
$
(397.4)
|
|
$
(125.1)
|
|
$
(272.3)
|
Europe
|
2,420.4
|
|
2,516.5
|
|
(96.1)
|
|
50.5
|
|
(146.6)
|
|
(48.7)
|
|
(97.9)
|
AMEA
|
475.2
|
|
524.7
|
|
(49.5)
|
|
(7.1)
|
|
(42.4)
|
|
(20.5)
|
|
(21.9)
|
Total
|
$
6,967.2
|
|
$
7,512.4
|
|
$
(545.2)
|
|
$ 41.2
|
|
$
(586.4)
|
|
$
(194.3)
|
|
$
(392.1)
|
|
━━━━━━━━━
|
1.
|
Core organic net sales
growth (decline) eliminates from our organic net growth (decline)
the impact from the change in sales of COVID-19 related offerings
from 2022 to 2023. Numbers in this column are calculated by
removing the impact of COVID-19 sales from the numbers in the
"Organic net sales growth (decline)" column.
|
Adjusted
EBITDA
|
|
(in millions)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Americas
|
$
201.2
|
|
$
231.0
|
|
$
912.6
|
|
$
1,077.3
|
Europe
|
113.7
|
|
131.1
|
|
449.5
|
|
524.1
|
AMEA
|
31.6
|
|
40.4
|
|
125.3
|
|
141.5
|
Corporate
|
(44.4)
|
|
(43.0)
|
|
(178.3)
|
|
(172.2)
|
Total
|
$
302.1
|
|
$
359.5
|
|
$
1,309.1
|
|
$
1,570.7
|
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SOURCE Avantor and Financial News