- Q4'21 net revenue of $1.19 billion increased 25% as
reported, or 22% in constant currency, compared to Q4'20. Organic,
constant-currency net revenue grew 26%, compared to Q4'20.
- Fiscal 2021 net revenue of $4.00 billion increased 29% as
reported, or 26% in constant currency, compared to fiscal 2020.
Organic, constant-currency net revenue grew 25% compared to
FY'20.
- Q4'21 net earnings of $182 million and fiscal 2021 net
earnings of $585 million.
- Q4'21 Adjusted EBITDA(1) of $348 million increased 30% as
reported, or 27% in constant currency, compared to Q4'20.
- Announces proposed $1 billion acquisition of Bettera, a
leading manufacturer in the high-growth gummy, soft chew, and
lozenge segments of the nutritional supplements market.
- FY'22 financial guidance range projects net revenue growth
of 8-13% and Adjusted EBITDA growth of 11-18%.
Catalent, Inc. (NYSE: CTLT), the leading global provider of
development sciences and manufacturing platforms for medicines,
including biotherapeutics; cell and gene therapies; and consumer
health products, today announced financial results for the fourth
quarter of fiscal 2021, which ended June 30, 2021. In addition, the
company also announced in a separate press release today the
details of its agreement to acquire Bettera Holdings, LLC, a
leading manufacturer in the high-growth gummy, soft chew, and
lozenge segments of the nutritional supplements market.
“The past year has been extraordinary, for society and for our
organization, during which we achieved great things, including
building our infrastructure, growing our talent, deepening our
long-standing commitment to sustainability practices, and
accelerating our growth strategy,” said John Chiminski, Chair and
Chief Executive Officer of Catalent, Inc. “We rose to the challenge
of scaling our capacity to meet demand for vaccines and treatments
to address the global COVID-19 pandemic, all while continuing to
produce a broad range of important medicines under unprecedented
circumstances. We are humbled to see the dedication of all our
employees, who have allowed us to achieve this success. As we look
ahead, we carry with us new knowledge, new capabilities, and
strengthened partnerships, enabling us to continue to deliver
products that ultimately allow people to live better, healthier
lives.”
Fourth Quarter 2021 Consolidated Results
Net revenue of $1.19 billion increased 25% as reported, or 22%
in constant currency, from the $947 million reported for the fourth
quarter a year ago. Overall organic net revenue growth (i.e.,
excluding the effect of acquisitions and divestitures) was 26%.
After accounting for the net earnings attributable to holders of
Catalent’s Series A convertible preferred stock, net earnings
attributable to common shareholders were $167 million, or $0.98 per
basic share, compared to net earnings attributable to common
shareholders of $135 million, or $0.86 per basic share, in the
fourth quarter a year ago.
EBITDA from operations(1) was $326 million, an increase of $60
million from $266 million in the fourth quarter a year ago. Fourth
quarter fiscal 2021 Adjusted EBITDA(1) was $348 million, or 29.3%
of net revenue, compared to $268 million, or 28.2% of net revenue,
in the fourth quarter a year ago. This represents an increase of
30% as reported, and an increase of 27% on a constant-currency
basis.
Adjusted Net Income(1) was $209 million, or $1.16 per diluted
share, compared to Adjusted Net Income of $154 million, or $0.90
per diluted share, in the fourth quarter a year ago.
Fourth Quarter 2021 Segment Review
Biologics
Net revenue from the Biologics segment was $603 million for the
fourth quarter of fiscal 2021, an increase of 69% as reported and
66% in constant currency, compared to the fourth quarter a year
ago. Segment EBITDA(1) in the fourth quarter of fiscal 2021 was
$186 million, an increase of 114% as reported and 112% in constant
currency, compared to the fourth quarter a year ago. Segment EBITDA
margin was 30.9% in the fourth quarter of fiscal 2021, compared to
24.3% in the fourth quarter of the prior year.
Excluding the effect of acquisitions, net revenue increased 66%
and Segment EBITDA increased 111% compared to the quarter ended
June 30, 2020.
Softgel and Oral Technologies
Net revenue from the Softgel and Oral Technologies segment was
$301 million for the fourth quarter of fiscal 2021, an increase of
3% as reported and a decrease of 1% in constant currency, compared
to the fourth quarter a year ago. Segment EBITDA was $94 million in
the fourth quarter of fiscal 2021, an increase of 10% as reported,
or 6% in constant currency, compared to the fourth quarter a year
ago. Segment EBITDA margin was 31.3% in the fourth quarter of
fiscal 2021, compared to 29.4% in the fourth quarter of the prior
year.
Oral and Specialty Delivery
Net revenue from the Oral and Specialty Delivery segment was
$186 million for the fourth quarter of fiscal 2021, a decrease of
15% as reported and 19% in constant currency, over the fourth
quarter a year ago. Segment EBITDA in the fourth quarter of fiscal
2021 was $63 million, a decrease of 24% as reported, or 29% in
constant currency, compared to the fourth quarter a year ago.
Segment EBITDA margin was 34.4% in the fourth quarter of fiscal
2021, compared to 38.4% in the fourth quarter of the prior
year.
Excluding the effect of acquisitions and divestitures, net
revenue decreased 4% and Segment EBITDA decreased 11% compared to
the quarter ended June 30, 2020.
Clinical Supply Services
Net revenue from the Clinical Supply Services segment was $105
million for the fourth quarter of fiscal 2021, an increase of 25%
as reported and 21% in constant currency, compared to the fourth
quarter a year ago. Segment EBITDA in the fourth quarter of fiscal
2021 was $31 million, an increase of 45% as reported, or 35% in
constant currency, compared to the fourth quarter a year ago.
Segment EBITDA margin was 29.0% in the fourth quarter of fiscal
2021 compared to 25.1% in the fourth quarter of the prior year.
(1) See "Non-GAAP Financial Measures" below and GAAP to non-GAAP
reconciliation provided later in this release.
Segment Net Revenue as a % of Total Net Revenue
Three Months Ended
June 30, 2021
March 31, 2021
December 31, 2020
September 30, 2020
Biologics
50
%
52
%
44
%
44
%
Softgel and Oral Technologies
25
%
23
%
27
%
26
%
Oral and Specialty Delivery
16
%
16
%
19
%
19
%
Clinical Supply Services
9
%
9
%
10
%
11
%
Net Revenue
100
%
100
%
100
%
100
%
Fiscal 2021 Consolidated Results
Net revenue of $4.00 billion increased 29% as reported, or 26%
in constant currency, from the $3.09 billion reported for the prior
fiscal year. Overall organic net revenue growth (i.e., excluding
the effect of acquisitions and divestitures) was 25%.
After accounting for the net earnings attributable to holders of
Catalent’s Series A convertible preferred stock, net earnings
attributable to common shareholders were $529 million, or $3.15 per
basic share, compared to net earnings attributable to common
shareholders of $173 million, or $1.16 per basic share, in the
prior fiscal year.
EBITDA from operations(1) was $1.11 billion, an increase of $474
million from $640 million in the prior fiscal year. Fiscal 2021
Adjusted EBITDA(1) was $1.02 billion, or 25.5% of net revenue,
compared to $751 million, or 24.3% of net revenue, in the prior
fiscal year. This represents an increase of 36% as reported, and an
increase of 32% on a constant-currency basis.
Adjusted Net Income(1) was $549 million, or $3.04 per diluted
share, compared to Adjusted Net Income of $350 million, or $2.11
per diluted share, in fiscal 2020.
Fiscal 2021 Segment Review
Biologics
Net revenue from the Biologics segment was $1.93 billion for
fiscal 2021, an increase of 89% as reported and 86% in constant
currency, compared to fiscal 2020. Segment EBITDA(1) in fiscal 2021
was $608 million, an increase of 156% as reported and 151% in
constant currency, compared to fiscal 2020. Segment EBITDA margin
was 31.5% in fiscal 2021, compared to 23.2% in fiscal 2020.
Excluding the effect of acquisitions, net revenue increased 80%
and Segment EBITDA increased 148% compared to fiscal 2020.
Softgel and Oral Technologies
Net revenue from the Softgel and Oral Technologies segment was
$1.01 billion for fiscal 2021, a decrease of 5% as reported and 7%
in constant currency, compared to fiscal 2020. Segment EBITDA was
$237 million in fiscal 2021, a decrease of 8% as reported, or 10%
in constant currency, compared to fiscal 2020. Segment EBITDA
margin was 23.4% in fiscal 2021, compared to 24.2% in fiscal
2020.
Excluding the effect of divestitures, net revenue decreased 6%
compared to fiscal 2020 and Segment EBITDA decreased 10% compared
to fiscal 2020.
Oral and Specialty Delivery
Net revenue from the Oral and Specialty Delivery segment was
$686 million for fiscal 2021, an increase of 1% as reported and a
decrease of 2% in constant currency, over fiscal 2020. Segment
EBITDA in fiscal 2021 was $160 million, a decrease of 20% as
reported, or 25% in constant currency, compared to fiscal 2020.
Segment EBITDA margin was 23.3% in fiscal 2021, compared to 29.7%
in fiscal 2020.
Excluding the effect of acquisitions and divestitures, net
revenue decreased 3% and Segment EBITDA decreased 24%, compared to
fiscal 2020.
Clinical Supply Services
Net revenue from the Clinical Supply Services segment was $391
million for fiscal 2021, an increase of 13% as reported and 10% in
constant currency, compared to fiscal 2020. Segment EBITDA in
fiscal 2021 was $108 million, an increase of 18% as reported, or
13% in constant currency, compared to fiscal 2020. Segment EBITDA
margin was 27.6% in fiscal 2021 compared to 26.4% in fiscal
2020.
Balance Sheet and Liquidity
As of June 30, 2021, Catalent had $3.24 billion in total debt,
and $2.27 billion in total debt net of cash and short-term
investments, compared to $2.16 billion in total net debt as of
March 31, 2021. The current debt structure does not include any
significant maturity until 2027.
Catalent’s net leverage ratio(1) as of June 30, 2021 was 2.2x,
compared to 2.3x at March 31, 2021 and 2.8x at June 30, 2020.
Fiscal Year 2022 Outlook
Catalent is introducing financial guidance for fiscal 2022,
which assumes no major unforeseen change to either the current
status of the COVID-19 pandemic generally or its effect on
Catalent’s operations and business. The guidance projects:
FY 2022
Full Year Guidance
Net revenue
$4.30 billion - $4.50 billion
Adjusted EBITDA
$1.13 billion - $1.20 billion
Adjusted net income
$585 million - $650 million
Weighted average shares outstanding -
diluted (1)
181 million - 183 million
(1) Includes the outstanding Series A convertible preferred
stock as-if converted.
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], an S&P 500® company, is the
leading global provider of development sciences and manufacturing
platforms for medicines, including biotherapeutics; cell and gene
therapies; and consumer health products. With almost 90 years
serving the industry, Catalent has proven expertise in bringing
more customer products to market faster, enhancing product
performance, and ensuring reliable global clinical and commercial
product supply. Catalent’s workforce exceeds 17,000 people,
including more than 2,500 scientists and technicians, at more than
50 facilities on four continents, and in fiscal year 2021, it
generated $4 billion in annual revenue. Catalent is headquartered
in Somerset, New Jersey. For more information, please visit
www.catalent.com.
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 U.S. GAAP, is not a measure of operating income, operating
performance, or liquidity presented in accordance with U.S. GAAP,
and is subject to important limitations.
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 its 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 U.S. GAAP
measures. Catalent’s definition of EBITDA from operations may not
be the same as similarly titled measures used by other
companies.
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 U.S. GAAP, is not a measure of operating
income, operating performance, or liquidity presented in accordance
with U.S. GAAP, and is subject to important limitations. Adjusted
EBITDA is the covenant compliance measure used in the credit
agreement governing debt incurrence and restricted payments.
Because not all companies use identical calculations, Catalent’s
presentation of Adjusted EBITDA may not be comparable to other
similarly titled measures of other companies.
Management also measures operating performance based on Adjusted
Net Income and Adjusted Net Income per share. Adjusted Net Income
is not defined under U.S. GAAP, is not a measure of operating
income, operating performance, or liquidity presented in accordance
with U.S. GAAP and is subject to important limitations. Catalent
believes that the presentation of Adjusted Net Income and Adjusted
Net Income per share enhances an investor’s understanding of its
financial performance. Catalent believes these measures are 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 Catalent uses these
measures for business planning purposes. Catalent defines Adjusted
Net Income as net earnings adjusted for amortization attributable
to purchase accounting and adjustments for other cash and non-cash
items included in the table below, partially offset by its estimate
of the tax effects of such cash and non-cash items. Catalent
believes that Adjusted Net Income and Adjusted Net Income per share
provides investors with a useful tool for assessing the
comparability between periods of its ability to generate cash from
operations available to its stockholders. Catalent’s definition of
Adjusted Net Income may not be the same as similarly titled
measures used by other companies.
The most directly comparable U.S. GAAP measure to EBITDA from
operations, Adjusted EBITDA and Adjusted Net Income is net
earnings. Included in this release is a reconciliation of net
earnings to EBITDA from operations, Adjusted EBITDA and Adjusted
Net Income.
Catalent does not provide a reconciliation of forward-looking
non-GAAP financial measures to their comparable U.S. GAAP financial
measures because it could not do so without unreasonable effort due
to the unavailability of the information needed to calculate
reconciling items and due to the variability, complexity and
limited visibility of the adjusting items that would be excluded
from the non-GAAP financial measures in future periods. When
planning, forecasting, and analyzing future periods, Catalent does
so primarily on a non-GAAP basis without preparing a U.S. GAAP
analysis as that would require estimates for various cash and
non-cash reconciling items that would be difficult to predict with
reasonable accuracy. For example, equity compensation expense would
be difficult to estimate because it depends on Catalent’s future
hiring and retention needs, as well as the future fair market value
of its common stock, all of which are difficult to predict and
subject to constant change. It is equally difficult to anticipate
the need for or magnitude of a presently unforeseen one-time
restructuring expense or the values of end-of-period foreign
currency exchange rates. As a result, Catalent does not believe
that a U.S. GAAP reconciliation would provide meaningful
supplemental information about its outlook.
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 U.S. GAAP. Results on a constant-currency basis, as
Catalent presents them, may not be comparable to similarly titled
measures used by other companies and are not measures of
performance presented in accordance with U.S. GAAP.
Forward-Looking Statements
This release contains both historical and forward-looking
statements. All statements other than statements of historical
fact, are, or may be deemed to be, forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally can be
identified by the use of statements that include phrases such as
“believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,”
“project,” “foresee,” “likely,” “may,” “will,” “would,” or other
words or phrases with similar meanings. Similarly, statements that
describe Catalent’s objectives, plans, or goals are, or may be,
forward-looking statements. These statements are based on current
expectations of future events. If underlying assumptions prove
inaccurate or unknown risks or uncertainties materialize, actual
results could vary materially from Catalent’s expectations and
projections. Some of the factors that could cause actual results to
differ include, but are not limited to, the following: the current
or future effects of the COVID-19 pandemic on Catalent's and its
clients' or suppliers' businesses; 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; 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 the United
States or internationally; fluctuations in the exchange rate of the
U.S. dollar against other currencies; adverse tax legislative or
regulatory initiatives or challenges or adjustments to Catalent’s
tax positions; loss of key personnel; risks generally associated
with information systems; inability to complete any future
acquisitions, including the pending acquisition of Bettera, or
other transactions that may complement or expand its business or
divest of non-strategic businesses or assets and difficulties in
successfully integrating acquired businesses and realizing
anticipated benefits of such acquisitions; risks associated with
timely and successfully completing, and correctly anticipating the
future demand predicted for, capital expansion projects at existing
facilities, offerings and customers’ products that may infringe on
the intellectual property rights of third parties; environmental,
health and safety laws and regulations, which could increase costs
and restrict operations; labor and employment laws and regulations
or labor difficulties, which could increase costs or result in
operational disruptions; additional cash contributions required to
fund Catalent’s existing pension plans; substantial leverage that
may limit its ability to raise additional capital to fund
operations and react to changes in the economy or in the industry;
and exposure to interest-rate risk to the extent of its
variable-rate debt preventing it from meeting its obligations under
its indebtedness. For a more detailed discussion of these and other
factors, see the information under the caption “Risk Factors” in
Catalent’s Annual Report on Form 10-K for the fiscal year ended
June 30, 2021, filed August 30, 2021. All forward-looking
statements speak only as of the date of this release or as of the
date they are made, and Catalent does not undertake to update any
forward-looking statement as a result of new information or future
events or developments except to the extent required by law.
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
June 30,
FX Impact
Constant Currency Increase
(Decrease)
2021
2020
Change $
Change %
Net revenue
$
1,188
$
947
$
35
$
206
22
%
Cost of sales
749
613
23
113
18
%
Gross margin
439
334
12
93
28
%
Selling, general, and administrative
expenses
184
157
4
23
14
%
Loss on sale of subsidiary
2
—
—
2
*
Other operating expense
2
7
(1
)
(4
)
(61
)
%
Operating earnings
251
170
9
72
42
%
Interest expense, net
32
20
—
12
54
%
Other expense, net
(2
)
(29
)
3
24
(82
)
%
Earnings before income taxes
221
179
6
36
20
%
Income tax expense
39
25
1
13
55
%
Net earnings
$
182
$
154
$
5
$
23
15
%
Less: Net earnings attributable to
preferred shareholders
(15
)
(19
)
Net earnings attributable to common
shareholders
$
167
$
135
Weighted average shares outstanding -
basic
171
156
Weighted average shares outstanding -
diluted
172
159
Earnings per share:
Basic
Net earnings
$
0.98
$
0.86
Diluted
Net earnings
$
0.97
$
0.85
*Percentage not meaningful
Catalent, Inc. Selected Segment Financial
Data (Unaudited; dollars in millions)
Three Months Ended
June 30,
FX Impact
Constant Currency Increase
(Decrease)
2021
2020
Change $
Change %
Biologics
Net revenue
$
603
$
357
$
9
$
237
66
%
Segment EBITDA
186
86
2
98
112
%
Softgel and Oral Technologies
Net revenue
301
291
13
(3
)
(1
)
%
Segment EBITDA
94
86
3
5
6
%
Oral and Specialty Delivery
Net revenue
186
219
10
(43
)
(19
)
%
Segment EBITDA
63
84
4
(25
)
(29
)
%
Clinical Supply Services
Net revenue
105
84
4
17
21
%
Segment EBITDA
31
21
3
7
35
%
Inter-segment revenue
elimination
(7
)
(4
)
(1
)
(2
)
(61
)
%
Unallocated costs
(48
)
(11
)
(3
)
(34
)
(296
)
%
Combined totals
Net revenue
$
1,188
$
947
$
35
$
206
22
%
EBITDA from operations
$
326
$
266
$
9
$
51
19
%
Refer to Catalent's description of non-GAAP measures, including
segment EBITDA and EBITDA from operations as referenced above.
Catalent, Inc. Consolidated Statements of
Operations (Unaudited; dollars in millions, except per share
amounts)
Fiscal Year Ended
June 30,
FX impact
Constant Currency Increase
(Decrease)
2021
2020
Change $
Change %
Net revenue
$
3,998
$
3,094
$
89
$
815
26
%
Cost of sales
2,646
2,111
56
479
23
%
Gross margin
1,352
983
33
336
34
%
Selling, general and administrative
expenses
687
577
8
102
17
%
(Gain) loss on sale of subsidiary
(182
)
1
—
(183
)
*
Other operating expense
19
11
—
8
96
%
Operating earnings
828
394
25
409
104
%
Interest expense, net
110
126
1
(17
)
(14
)
%
Other expense, net
3
8
8
(13
)
(166
)
%
Earnings before income taxes
715
260
16
439
169
%
Income tax expense
130
39
2
89
223
%
Net earnings
$
585
$
221
$
14
$
350
159
%
Less: Net earnings attributable to
preferred shareholders
(56
)
(48
)
Net earnings attributable to common
shareholders
$
529
$
173
Weighted average shares outstanding -
basic
168
150
Weighted average shares outstanding -
diluted
170
152
Earnings per share:
Basic
Net earnings
$
3.15
$
1.16
Diluted
Net earnings
$
3.11
$
1.14
*Percentage not meaningful
Catalent, Inc. Selected Segment Financial
Data (Unaudited; dollars in millions)
Fiscal Year Ended
June 30,
FX Impact
Constant Currency
Increase/(Decrease)
2021
2020
Change $
Change %
Biologics
Net revenue
$
1,928
$
1,021
$
31
$
876
86
%
Segment EBITDA
608
237
11
360
151
%
Softgel and Oral Technologies
Net revenue
1,012
1,062
27
(77
)
(7
)
%
Segment EBITDA
237
257
6
(26
)
(10
)
%
Oral and Specialty Delivery
Net revenue
686
676
21
(11
)
(2
)
%
Segment EBITDA
160
201
9
(50
)
(25
)
%
Clinical Supply Services
Net revenue
391
345
11
35
10
%
Segment EBITDA
108
91
5
12
13
%
Inter-segment revenue
elimination
(19
)
(10
)
(1
)
(8
)
(80
)
%
Unallocated costs
1
(146
)
(8
)
155
107
%
Combined totals
Net revenue
$
3,998
$
3,094
$
89
$
815
26
%
EBITDA from operations
$
1,114
$
640
$
23
$
451
70
%
Refer to Catalent's description of non-GAAP measures, including
segment EBITDA and EBITDA from operations as referenced above.
Catalent, Inc. Reconciliation of Net
Earnings to EBITDA from Operations and Adjusted EBITDA* (Unaudited;
dollars in millions)
Three months ended
June 30, 2020
September 30, 2020
December 31, 2020
March 31, 2021
June 30, 2021
Net earnings
$
154
$
83
$
88
$
232
$
182
Interest expense, net
20
25
26
27
32
Income tax expense (benefit)
25
(15
)
21
85
39
Depreciation and amortization
67
69
71
76
73
EBITDA from operations
266
162
206
420
326
Stock-based compensation
13
19
11
8
13
Impairment charges and (gain) loss on sale
of assets
3
2
1
5
1
Financing-related expenses
—
—
—
17
1
Restructuring costs
3
1
5
3
1
Acquisition, integration, and other
special items
11
4
9
1
7
(Gain) loss on sale of subsidiary
—
—
—
(184
)
2
Foreign exchange loss (gain)
—
(4
)
(2
)
4
(2
)
Other adjustments
(28
)
(10
)
(6
)
—
(1
)
Adjusted EBITDA
$
268
$
174
$
224
$
274
$
348
Favorable (unfavorable) FX impact
9
Adjusted EBITDA at constant currency
$
339
* Refer to Catalent's description of non-GAAP measures,
including EBITDA from operations and Adjusted EBITDA as referenced
above.
Catalent, Inc. Reconciliation of Net
Earnings to Adjusted Net Income* (Unaudited; dollars in millions,
except per share data)
Three months ended
June 30, 2020
September 30, 2020
December 31, 2020
March 31, 2021
June 30, 2021
Net earnings
$
154
$
83
$
88
$
232
$
182
Amortization (1)
23
23
23
23
24
Stock-based compensation
13
19
11
8
13
Impairment charges and (gain) loss on sale
of assets
3
2
1
5
1
Financing-related expenses
—
—
—
17
1
Restructuring costs
3
1
5
3
1
Acquisition, integration, and other
special items
11
4
9
1
7
(Gain) loss on sale of subsidiary (2)
—
—
—
(184
)
2
Foreign exchange loss (gain)
—
(4
)
(2
)
4
(2
)
Other adjustments (3)
(29
)
(10
)
(6
)
—
(1
)
Estimated tax effect of adjustments
(4)
(7
)
(9
)
(11
)
(17
)
40
Discrete income tax (benefit) expense
items (5)
(17
)
(31
)
(4
)
56
(59
)
Adjusted net income (ANI)
$
154
$
78
$
114
$
148
$
209
Weighted average shares outstanding -
basic
156
171
Weighted average shares outstanding -
diluted
159
172
Earnings per share:
Net earnings per share - basic
$
0.86
$
0.98
Net earnings per share - diluted
$
0.85
$
0.97
ANI per share:
ANI per share - basic
$
0.99
$
1.22
ANI per share - diluted (6)
$
0.90
$
1.16
* 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) Represents the (gain) loss on sale of subsidiary associated
with the blow-fill-seal business divestiture.
(3) Represents unrealized (gains) losses related to the fair
value of the derivative liability associated with the Series A
convertible preferred stock.
(4) The tax effect of adjustments to Adjusted Net Income are
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.
(5) Discrete period income tax expense (benefit) items are
unusual or infrequently occurring items, primarily including:
changes in judgment related to the realizability of deferred tax
assets in future years, changes in measurement of a prior-year tax
position, deferred tax impact of changes in tax law, and purchase
accounting.
(6) Represents Adjusted Net Income divided by the weighted
average sum of (a) the number of shares of Common Stock
outstanding, plus (b) the number of shares of Common Stock that
would be issued assuming exercise or vesting of all potentially
dilutive instruments, plus (c) the number of shares of Common Stock
equivalent to the shares of Series A Preferred Stock outstanding
under the "if-converted" method. For the three months ended June
30, 2021 and 2020, the weighted average was 180 million and 172
million, respectively.
Catalent, Inc. Condensed Consolidated
Balance Sheets (Unaudited; dollars in millions)
June 30, 2021
June 30, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
896
$
953
Trade receivables, net
1,012
838
Inventories
563
324
Prepaid expenses and other
376
178
Marketable securities
71
—
Total current assets
2,918
2,293
Property, plant, and equipment, net
2,524
1,901
Other non-current assets, including
intangible assets
3,670
3,583
Total assets
$
9,112
$
7,777
LIABILITIES, REDEEMABLE PREFERRED
STOCK, AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations
and other short-term borrowings
$
75
$
73
Accounts payable
385
321
Other accrued liabilities
736
499
Total current liabilities
1,196
893
Long-term obligations, less current
portion
3,166
2,945
Other non-current liabilities
476
433
Redeemable preferred stock
359
607
Total shareholders' equity
3,915
2,899
Total liabilities, redeemable preferred
stock, and shareholders' equity
$
9,112
$
7,777
Catalent, Inc. Condensed Consolidated
Statements of Cash Flows (Unaudited; dollars in
millions)
Fiscal Year Ended
June 30,
2021
2020
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net cash provided by operating
activities
$
433
$
440
CASH FLOWS FROM INVESTING
ACTIVITIES:
Acquisition of property, equipment, and
other productive assets
(686
)
(466
)
Purchases of marketable securities
(72
)
—
Proceeds from sale of subsidiaries,
net
287
21
Payment for acquisitions, net of cash
acquired
(147
)
(379
)
Payments for investments
(31
)
(3
)
Net cash used in investing activities
(649
)
(827
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net change in other borrowings
2
(49
)
Proceeds from borrowing, net
164
909
Payments related to long-term
obligations
(67
)
(811
)
Financing fees paid
(19
)
(25
)
Dividends paid
(22
)
(36
)
Proceeds from sale of common stock,
net
82
1,046
Cash paid, in lieu of equity, for tax
withholding obligations
(46
)
(32
)
Exercise of stock options
38
—
Other financing activities
10
—
Net cash provided by financing
activities
142
1,002
Effect of foreign currency exchange on
cash and cash equivalents
17
(7
)
NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS
(57
)
608
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD
953
345
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
$
896
$
953
Catalent, Inc. Reconciliation of
Segment EBITDA to Net Earnings (Unaudited; dollars in
millions, except per share data)
Three Months Ended
June 30,
Fiscal Year Ended
June 30,
2021
2020
2021
2020
Biologics
$
186
$
86
$
608
$
237
Softgel and Oral Technologies
94
86
237
257
Oral and Specialty Delivery
63
84
160
201
Clinical Supply Services
31
21
108
91
Sub-Total
$
374
$
277
$
1,113
$
786
Reconciling items to net earnings
Unallocated costs (1)
(48
)
(11
)
1
(146
)
Depreciation and amortization
(73
)
(67
)
(289
)
(254
)
Interest expense, net
(32
)
(21
)
(110
)
(126
)
Income tax expense
(39
)
(24
)
(130
)
(39
)
Net earnings
$
182
$
154
$
585
$
221
(1) Unallocated costs include restructuring and special items,
stock-based compensation, impairment charges, gain (loss) on sale
of subsidiary, certain other corporate directed costs, and other
costs that are not allocated to the segments.
Catalent, Inc. Calculation of Net
Leverage Ratio (Unaudited; dollars in millions)
June 30, 2020
September 30,
2020
December 31,
2020
March 31, 2021
June 30, 2021
Total Secured Debt
$
928
$
927
$
925
$
992
$
989
Total Unsecured Debt
2,090
2,132
2,131
2,231
2,252
Total Debt
3,018
3,059
3,056
3,223
3,241
Cash and Cash Equivalents
953
1,007
833
988
896
Marketable Securities
—
—
—
75
71
Total Net Debt
2,065
2,052
2,223
2,160
2,274
Adjusted EBITDA
Q1 2020
127
Q2 2020
171
171
Q3 2020
185
185
185
Q4 2020
268
268
268
268
Q1 2021
174
174
174
174
Q2 2021
224
224
224
Q3 2021
274
274
Q4 2021
348
LTM Adjusted EBITDA
$
751
$
798
$
851
$
940
$
1,020
Net Sr. Secured Debt / Adj. EBITDA
n.a.1
n.a.1
0.1x
n.a.1
n.a.
Net Debt / Adj. EBITDA
2.8x
2.6x
2.6x
2.3x
2.2x
1 The sum of cash and cash equivalents plus marketable
securities exceeds total secured debt.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210830005155/en/
Investors: Catalent, Inc. Paul Surdez 732-537-6325 investors@catalent.com
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