Fourth Quarter 2024
- Net sales of $1.69 billion,
decrease of 2%; organic growth of 1%
- Net income of $500.4 million;
Adjusted EBITDA of $307.7
million
- Diluted GAAP EPS of $0.73;
adjusted EPS of $0.27
- Operating cash flow of $173.3
million; free cash flow of $222.1
million
Full Year 2024
- Net sales of $6.78 billion,
decrease of 3%; organic decline of 2%
- Net income of $711.5 million;
Adjusted EBITDA of $1,198.8
million
- Diluted GAAP EPS of $1.04;
adjusted EPS of $0.99
- Operating cash flow of $840.8
million; free cash flow of $768.3
million
RADNOR,
Pa., Feb. 7, 2025 /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 its fourth fiscal quarter and year ended December 31, 2024.
"Our fourth quarter results highlight our team's commitment to
commercial intensity, operational discipline, and enabling
breakthrough therapies. As anticipated, we returned to growth in
the fourth quarter and delivered sequential and year-over-year
growth in adjusted EBITDA margin, adjusted EPS, and best-in-class
free cash flow conversion. We grew our bioprocessing platform
high-single-digits and expect continued strength driven by our
focused execution and improving end market conditions," said
Michael Stubblefield, President and
Chief Executive Officer.
"Looking ahead, we're entering the year with strong momentum and
a clear focus on innovation-driven revenue growth, margin
expansion, and continued deleveraging. Our new operating model is
driving greater efficiency, and our cost transformation program is
ahead of schedule. With our industry-leading portfolio, resilient
supply chain, and relentless efficiency, we are confident in
achieving both our near-term and long-term financial goals,"
Stubblefield concluded.
Fourth Quarter 2024
For the three months ended December 31,
2024, net sales were $1,686.6
million, a decrease of 2% compared to the fourth quarter of
2023. Foreign currency translation and our Clinical Services
divestiture had a negative impact, resulting in sales growth of 1%
on an organic basis.
Net income increased to $500.4
million from $98.5 million in
the fourth quarter of 2023, and adjusted net income was
$183.9 million as compared to
$166.7 million in the comparable
prior period. Net Income margin was 29.7%. Adjusted EBITDA was
$307.7 million and Adjusted EBITDA
margin was 18.2%. Adjusted Operating Income was $279.4 million and Adjusted Operating Income
margin was 16.6%.
Diluted earnings per share on a GAAP basis was $0.73, while adjusted EPS was $0.27.
Operating cash flow was $173.3
million, while free cash flow was $222.1 million.
Full Year 2024
For the full year ended December 31,
2024, net sales were $6,783.6
million, a decrease of 3% compared to 2023. Modest foreign
currency translation benefit was offset by our Clinical Services
divestiture, resulting in a sales decline of 2% on an organic
basis.
Net income increased to $711.5
million from $321.1 million in
2023, and adjusted net income was $677.7
million as compared to $720.1
million in the comparable prior period. Net Income margin
was 10.5%. Adjusted EBITDA was $1,198.8
million and Adjusted EBITDA margin was 17.7%. Adjusted
Operating Income was $1,089.8 million
and Adjusted Operating Income margin was 16.1%.
Diluted earnings per share on a GAAP basis was $1.04, while adjusted EPS was $0.99.
Operating cash flow was $840.8
million, while free cash flow was $768.3 million. Adjusted net leverage was 3.2x as
of December 31, 2024.
Fourth Quarter 2024 – Segment Results
Laboratory Solutions
- Net sales were $1,125.8 million,
a reported decrease of 5%, as compared to $1,182.4 million in the fourth quarter of 2023.
Foreign currency translation and our Clinical Services divestiture
had a negative impact resulting in sales decline of 1% on an
organic basis.
- Adjusted Operating Income was $147.4
million as compared to $157.3
million in the comparable prior period. Adjusted Operating
Income margin was 13.1%.
Bioscience Production
- Net sales were $560.8 million, a
reported increase of 4%, as compared to $540.4 million in the fourth quarter of 2023.
Sales also increased 4% on an organic basis.
- Adjusted Operating Income was $149.2
million, as compared to $132.0
million in the comparable prior period. Adjusted Operating
Income margin was 26.6%.
Full Year 2024 – Segment Results
Laboratory Solutions
- Net sales were $4,610.1 million,
a reported decrease of 3%, as compared to $4,738.3 million in 2023. Modest foreign currency
translation benefit was offset by our Clinical Services divestiture
resulting in sales declines of 2% on an organic basis.
- Adjusted Operating Income was $598.0
million as compared to $668.3
million in the comparable prior period. Adjusted Operating
Income margin was 13.0%.
Bioscience Production
- Net sales were $2,173.5 million,
a reported decrease of 3%, as compared to $2,228.9 million in 2023. Sales also declined 3%
on an organic basis.
- Adjusted Operating Income was $558.2
million, as compared to $601.9
million in the comparable prior period. Adjusted Operating
Income margin was 25.7%.
Adjusted Operating Income is Avantor's segment reporting
profitability measure under generally accepted accounting
principles and is used by management to measure and evaluate the
performance of our Company's business segments.
Conference Call
We will host a conference call to
discuss our results today, February 7,
2025, 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® is a leading life
science tools company and global provider of mission-critical
products and services to the life sciences and advanced technology
industries. We work side-by-side with customers at every step of
the scientific journey to enable breakthroughs in medicine,
healthcare, and technology. Our portfolio is used in virtually
every stage of the most important research, development and
production activities at more than 300,000 customer locations in
180 countries. For more information,
visit avantorsciences.com and find us
on LinkedIn, X (Twitter) and Facebook.
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 measures 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 measure or communication.
The non-GAAP financial measures used in this press release are
sales growth (decline) on an organic basis, Adjusted Operating
Income, Adjusted Operating Income margin, Adjusted EBITDA, Adjusted
EBITDA margin, adjusted net income, adjusted EPS, adjusted net
leverage, free cash flow and free cash flow conversion.
- Organic net sales growth (decline) eliminates from
our reported net sales change the impacts of revenues from
acquisitions and divestitures that occurred in the last year and
changes in foreign currency exchange rates. We believe that this
measurement is useful to investors as a way to measure and evaluate
our underlying commercial operating performance consistently across
our segments and the periods presented. This measure is used by our
management for the same reason.
- Adjusted Operating Income is our net income or loss
adjusted for the following items: (i) interest expense, (ii) income
tax expense, (iii) amortization of acquired intangible assets, (iv)
losses on extinguishment of debt, (v) charges associated with the
impairment of certain assets, (vi) gain on sale of business, (vii)
and certain other adjustments. Adjusted Operating Income
margin is Adjusted Operating Income divided by net sales as
determined under GAAP. We believe that these measures are useful to
investors as ways to analyze the underlying trends in our business
consistently across the periods presented. These measures are used
by our management for the same reason. Additionally, Adjusted
Operating Income is our segment reporting profitability measure
under GAAP.
- Adjusted EBITDA is our net income or loss adjusted
for the following items: (i) interest expense, (ii) income tax
expense, (iii) amortization of acquired intangible assets, (iv)
depreciation expense, (v) losses on extinguishment of debt, (vi)
charges associated with the impairment of certain assets, (vii)
gain on sale of business, (viii) and certain other adjustments.
Adjusted EBITDA margin is Adjusted EBITDA divided by
net sales as determined under GAAP. We believe that these measures
are useful to investors as ways to analyze the underlying trends in
our business consistently across the periods presented. These
measures are used by our management for the same reason.
- Adjusted net income is our net income or loss first
adjusted for the following items: (i) amortization of acquired
intangible assets, (ii) losses on extinguishment of debt, (iii)
charges associated with the impairment of certain assets, (iv) gain
on sale of business, (v) and certain other adjustments. 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
measure is useful to investors as a way to analyze the business
consistently across the periods presented. This measure 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 measure is useful
to investors as an additional way to analyze the underlying trends
in our business consistently across the periods presented. This
measure 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 and
divestitures as if those acquisitions and divestitures had occurred
on the first day of the trailing 12-month period). We believe that
this measure 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 measure is used by our
management for the same reason.
- Free cash flow is equal to our cash flows from
operating activities, less capital expenditures, plus direct
transaction costs and income taxes paid related to acquisitions and
divestitures (as applicable) in the period. Free cash flow
conversion is free cash flow divided by adjusted net income. We
believe that these measures are useful to investors as they provide
a view on the Company's ability to generate cash for use in
financing or investing activities. These measures are used by our
management for the same reason.
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, including our cost transformation initiative,
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
Allison Hosak
Senior Vice President, Global Communications
Avantor
908.329.7281
Allison.Hosak@avantorsciences.com
Global Media Contact
Eric Van
Zanten
Head of External Communications
Avantor
610-529-6219
Eric.VanZanten@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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net sales
|
$
1,686.6
|
|
$
1,722.8
|
|
$
6,783.6
|
|
$
6,967.2
|
|
Cost of
sales
|
1,123.7
|
|
1,152.4
|
|
4,504.3
|
|
4,603.4
|
|
Gross
profit
|
562.9
|
|
570.4
|
|
2,279.3
|
|
2,363.8
|
|
Selling, general and
administrative expenses
|
371.4
|
|
387.1
|
|
1,641.1
|
|
1,506.6
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
160.8
|
|
Gain on sale of
business
|
(446.6)
|
|
—
|
|
(446.6)
|
|
—
|
|
Operating
income
|
638.1
|
|
183.3
|
|
1,084.8
|
|
696.4
|
|
Interest expense,
net
|
(44.9)
|
|
(65.3)
|
|
(218.8)
|
|
(284.8)
|
|
Loss on extinguishment
of debt
|
(4.4)
|
|
(1.0)
|
|
(10.9)
|
|
(6.9)
|
|
Other (expense) income,
net
|
(4.6)
|
|
2.5
|
|
(1.2)
|
|
5.8
|
|
Income before income
taxes
|
584.2
|
|
119.5
|
|
853.9
|
|
410.5
|
|
Income tax
expense
|
(83.8)
|
|
(21.0)
|
|
(142.4)
|
|
(89.4)
|
|
Net income
|
$ 500.4
|
|
$ 98.5
|
|
$ 711.5
|
|
$ 321.1
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.74
|
|
$ 0.15
|
|
$ 1.05
|
|
$ 0.48
|
|
Diluted
|
$ 0.73
|
|
$ 0.15
|
|
$ 1.04
|
|
$ 0.47
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
680.7
|
|
676.4
|
|
679.6
|
|
675.6
|
|
Diluted
|
682.7
|
|
679.2
|
|
681.9
|
|
678.4
|
|
Avantor, Inc. and
subsidiaries
Consolidated balance
sheets
|
|
|
(in millions)
|
December 31,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
261.9
|
|
$
262.9
|
|
Accounts receivable,
net
|
1,034.5
|
|
1,150.2
|
|
Inventory
|
731.5
|
|
828.1
|
|
Other current
assets
|
118.7
|
|
143.7
|
|
Total current
assets
|
2,146.6
|
|
2,384.9
|
|
Property, plant and
equipment, net
|
708.1
|
|
737.5
|
|
Other intangible
assets, net
|
3,360.2
|
|
3,775.3
|
|
Goodwill,
net
|
5,539.2
|
|
5,716.7
|
|
Other assets
|
360.4
|
|
358.3
|
|
Total
assets
|
$ 12,114.5
|
|
$
12,972.7
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
debt
|
$
821.1
|
|
$
259.9
|
|
Accounts
payable
|
662.8
|
|
625.9
|
|
Employee-related
liabilities
|
168.2
|
|
133.1
|
|
Accrued
interest
|
48.6
|
|
50.2
|
|
Other current
liabilities
|
306.8
|
|
411.2
|
|
Total current
liabilities
|
2,007.5
|
|
1,480.3
|
|
Debt, net of current
portion
|
3,234.7
|
|
5,276.7
|
|
Deferred income tax
liabilities
|
557.3
|
|
612.8
|
|
Other
liabilities
|
358.3
|
|
350.3
|
|
Total
liabilities
|
6,157.8
|
|
7,720.1
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock including
paid-in capital
|
3,937.7
|
|
3,830.1
|
|
Accumulated
earnings
|
2,203.0
|
|
1,491.5
|
|
Accumulated other
comprehensive loss
|
(184.0)
|
|
(69.0)
|
|
Total stockholders'
equity
|
5,956.7
|
|
5,252.6
|
|
Total liabilities and
stockholders' equity
|
$ 12,114.5
|
|
$
12,972.7
|
|
Avantor, Inc. and
subsidiaries
Consolidated
statements of cash flows
|
|
|
(in millions)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
$ 500.4
|
|
$ 98.5
|
|
$ 711.5
|
|
$ 321.1
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
100.9
|
|
100.6
|
|
405.5
|
|
402.3
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
160.8
|
|
Gain on sale of
business
|
(446.6)
|
|
—
|
|
(446.6)
|
|
—
|
|
Stock-based
compensation expense
|
11.1
|
|
8.8
|
|
46.8
|
|
40.5
|
|
Non-cash restructuring
charges
|
0.5
|
|
—
|
|
16.9
|
|
—
|
|
Provision for accounts
receivable and
inventory
|
19.3
|
|
22.0
|
|
75.1
|
|
84.5
|
|
Deferred income tax
expense (benefit)
|
28.4
|
|
(78.3)
|
|
(46.9)
|
|
(172.4)
|
|
Amortization of
deferred financing costs
|
2.6
|
|
3.1
|
|
11.2
|
|
13.0
|
|
Loss on extinguishment
of debt
|
4.4
|
|
1.0
|
|
10.9
|
|
6.9
|
|
Foreign currency
remeasurement (gain)
loss
|
(3.3)
|
|
0.5
|
|
(0.3)
|
|
(2.6)
|
|
Pension termination
charges
|
9.3
|
|
—
|
|
9.3
|
|
—
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
11.7
|
|
21.9
|
|
45.9
|
|
77.0
|
|
Inventory
|
3.0
|
|
21.2
|
|
(18.5)
|
|
30.3
|
|
Accounts
payable
|
17.7
|
|
(43.8)
|
|
59.6
|
|
(139.6)
|
|
Accrued
interest
|
14.9
|
|
10.6
|
|
(1.6)
|
|
0.3
|
|
Other assets and
liabilities
|
(100.7)
|
|
87.1
|
|
(37.7)
|
|
48.6
|
|
Other
|
(0.3)
|
|
(1.6)
|
|
(0.3)
|
|
(0.7)
|
|
Net cash provided by
operating
activities
|
173.3
|
|
251.6
|
|
840.8
|
|
870.0
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(27.5)
|
|
(50.6)
|
|
(148.8)
|
|
(146.4)
|
|
Proceeds from sale of
disposal group, net of
cash sold
|
585.2
|
|
—
|
|
585.2
|
|
—
|
|
Other
|
0.8
|
|
0.6
|
|
2.5
|
|
2.7
|
|
Net cash provided by
(used in)
investing activities
|
558.5
|
|
(50.0)
|
|
438.9
|
|
(143.7)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Debt
repayments
|
(756.8)
|
|
(188.1)
|
|
(1,341.8)
|
|
(846.0)
|
|
Payments of debt
refinancing fees and
premiums
|
—
|
|
—
|
|
—
|
|
(2.3)
|
|
Proceeds received from
exercise of stock
options
|
1.9
|
|
4.2
|
|
69.2
|
|
18.3
|
|
Shares repurchased to
satisfy employee tax
obligations for vested stock-based
awards
|
(0.4)
|
|
(0.2)
|
|
(8.6)
|
|
(13.7)
|
|
Net cash used in
financing activities
|
(755.3)
|
|
(184.1)
|
|
(1,281.2)
|
|
(843.7)
|
|
Effect of currency rate
changes on cash and cash
equivalents
|
(22.1)
|
|
9.5
|
|
(21.5)
|
|
8.2
|
|
Net change in cash,
cash equivalents and restricted
cash
|
(45.6)
|
|
27.0
|
|
(23.0)
|
|
(109.2)
|
|
Cash, cash equivalents
and restricted cash,
beginning of period
|
310.3
|
|
260.7
|
|
287.7
|
|
396.9
|
|
Cash, cash equivalents
and restricted cash, end of
period
|
$ 264.7
|
|
$ 287.7
|
|
$ 264.7
|
|
$ 287.7
|
|
Avantor, Inc. and
subsidiaries
Reconciliations of
non-GAAP measures
|
|
|
Adjusted EBITDA
and Adjusted EBITDA Margin
|
|
|
(dollars in millions, %
based on net sales)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|
Net income
|
$ 500.4
|
|
29.7 %
|
|
$
98.5
|
|
5.7 %
|
|
$ 711.5
|
|
10.5 %
|
|
$ 321.1
|
|
4.6 %
|
|
Amortization
|
74.2
|
|
4.4 %
|
|
75.0
|
|
4.4 %
|
|
299.8
|
|
4.4 %
|
|
307.7
|
|
4.4 %
|
|
Loss on
extinguishment
of debt
|
4.4
|
|
0.3 %
|
|
1.0
|
|
— %
|
|
10.9
|
|
0.2 %
|
|
6.9
|
|
0.1 %
|
|
Integration-related
expenses1
|
—
|
|
— %
|
|
(0.7)
|
|
— %
|
|
—
|
|
— %
|
|
7.6
|
|
0.1 %
|
|
Restructuring and
severance charges2
|
0.5
|
|
— %
|
|
8.5
|
|
0.5 %
|
|
82.8
|
|
1.2 %
|
|
26.5
|
|
0.4 %
|
|
Transformation
expenses3
|
12.3
|
|
0.8 %
|
|
5.4
|
|
0.3 %
|
|
58.9
|
|
0.9 %
|
|
5.4
|
|
0.1 %
|
|
Reserve for certain
legal
matters, net4
|
1.3
|
|
0.1 %
|
|
3.1
|
|
0.2 %
|
|
9.2
|
|
0.2 %
|
|
7.1
|
|
0.1 %
|
|
Other5
|
(3.5)
|
|
(0.3) %
|
|
(0.6)
|
|
— %
|
|
(3.9)
|
|
(0.2) %
|
|
(2.8)
|
|
— %
|
|
Impairment
charges6
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
160.8
|
|
2.3 %
|
|
Gain on sale of
business7
|
(446.6)
|
|
(26.5) %
|
|
—
|
|
— %
|
|
(446.6)
|
|
(6.6) %
|
|
—
|
|
— %
|
|
Pension termination
charges8
|
9.3
|
|
0.6 %
|
|
—
|
|
— %
|
|
9.3
|
|
0.2 %
|
|
—
|
|
— %
|
|
Income tax expense
(benefit)
applicable to
pretax
adjustments
|
31.6
|
|
1.8 %
|
|
(23.5)
|
|
(1.4) %
|
|
(54.2)
|
|
(0.8) %
|
|
(120.2)
|
|
(1.8) %
|
|
Adjusted net
income
|
183.9
|
|
10.9 %
|
|
166.7
|
|
9.7 %
|
|
677.7
|
|
10.0 %
|
|
720.1
|
|
10.3 %
|
|
Interest expense,
net
|
44.9
|
|
2.7 %
|
|
65.3
|
|
3.8 %
|
|
218.8
|
|
3.2 %
|
|
284.8
|
|
4.1 %
|
|
Depreciation
|
26.7
|
|
1.6 %
|
|
25.6
|
|
1.4 %
|
|
105.7
|
|
1.6 %
|
|
94.6
|
|
1.3 %
|
|
Income tax
provision
applicable to
Adjusted Net
income
|
52.2
|
|
3.0 %
|
|
$
44.5
|
|
2.6 %
|
|
$ 196.6
|
|
2.9 %
|
|
$ 209.6
|
|
3.1 %
|
|
Adjusted
EBITDA
|
$ 307.7
|
|
18.2 %
|
|
$ 302.1
|
|
17.5 %
|
|
$
1,198.8
|
|
17.7 %
|
|
$
1,309.1
|
|
18.8 %
|
|
|
|
1.
|
Represents 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.
|
Reflects the
incremental expenses incurred in the period related to
restructuring initiatives to increase profitability and
productivity. Costs included in this caption are specific to
employee severance, site-related exit costs, and contract
termination costs. The expenses recognized in 2024 represent costs
incurred to achieve the Company's publicly-announced cost
transformation initiative.
|
|
3.
|
Represents incremental
expenses directly associated with the Company's publicly-announced
cost transformation initiative, primarily related to the cost of
external advisors.
|
|
4.
|
Represents charges and
legal costs, net of recoveries, 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.
|
Represents net foreign
currency (gain) loss from financing activities and other
stock-based compensation expense (benefit).
|
|
6.
|
Related to impairment
of Ritter.
|
|
7.
|
Related to gain on sale
of our Clinical Services business.
|
|
8.
|
Represents pension
termination charges related to termination of our U.S. Pension
Plan.
|
|
Avantor, Inc. and
subsidiaries
Reconciliations of
non-GAAP measures (continued)
|
|
Adjusted Operating Income and Adjusted Operating
Income Margin
|
|
|
(dollars in millions, %
based on net sales)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|
Net income
|
$ 500.4
|
|
29.7 %
|
|
$
98.5
|
|
5.7 %
|
|
$ 711.5
|
|
10.5 %
|
|
$ 321.1
|
|
4.6 %
|
|
Interest expense,
net
|
44.9
|
|
2.7 %
|
|
65.3
|
|
3.8 %
|
|
218.8
|
|
3.2 %
|
|
284.8
|
|
4.1 %
|
|
Income tax
expense
|
83.8
|
|
4.8 %
|
|
21.0
|
|
1.2 %
|
|
142.4
|
|
2.1 %
|
|
89.4
|
|
1.3 %
|
|
Loss on
extinguishment
of debt
|
4.4
|
|
0.3 %
|
|
1.0
|
|
— %
|
|
10.9
|
|
0.2 %
|
|
6.9
|
|
0.1 %
|
|
Other (expense)
income,
net
|
4.6
|
|
0.3 %
|
|
(2.5)
|
|
(0.1) %
|
|
1.2
|
|
— %
|
|
(5.8)
|
|
(0.1) %
|
|
Operating income
|
638.1
|
|
37.8 %
|
|
183.3
|
|
10.6 %
|
|
1,084.8
|
|
16.0 %
|
|
696.4
|
|
10.0 %
|
|
Amortization
|
74.2
|
|
4.4 %
|
|
75.0
|
|
4.4 %
|
|
299.8
|
|
4.4 %
|
|
307.7
|
|
4.4 %
|
|
Integration-related
expenses1
|
—
|
|
— %
|
|
(0.7)
|
|
— %
|
|
—
|
|
— %
|
|
7.6
|
|
0.1 %
|
|
Restructuring and
severance charges2
|
0.5
|
|
— %
|
|
8.5
|
|
0.5 %
|
|
82.8
|
|
1.2 %
|
|
26.5
|
|
0.4 %
|
|
Transformation
expenses3
|
12.3
|
|
0.8 %
|
|
5.4
|
|
0.3 %
|
|
58.9
|
|
0.9 %
|
|
5.4
|
|
0.1 %
|
|
Reserve for certain
legal
matters, net4
|
1.3
|
|
0.1 %
|
|
3.1
|
|
0.2 %
|
|
9.2
|
|
0.2 %
|
|
7.1
|
|
0.1 %
|
|
Other5
|
(0.4)
|
|
— %
|
|
0.2
|
|
— %
|
|
0.9
|
|
— %
|
|
0.3
|
|
— %
|
|
Impairment
charges6
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
160.8
|
|
2.3 %
|
|
Gain on sale of
business7
|
(446.6)
|
|
(26.5) %
|
|
—
|
|
— %
|
|
(446.6)
|
|
(6.6) %
|
|
—
|
|
— %
|
|
Adjusted Operating
Income
|
$ 279.4
|
|
16.6 %
|
|
$ 274.8
|
|
16.0 %
|
|
$ 1,089.8
|
|
16.1 %
|
|
$ 1,211.8
|
|
17.4 %
|
|
|
|
1.
|
Represents 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.
|
Reflects the
incremental expenses incurred in the period related to
restructuring initiatives to increase profitability and
productivity. Costs included in this caption are specific to
employee severance, site-related exit costs, and contract
termination costs. The expenses recognized in 2024 represent costs
incurred to achieve the Company's publicly-announced cost
transformation initiative.
|
|
3.
|
Represents incremental
expenses directly associated with the Company's publicly-announced
cost transformation initiative, primarily related to the cost of
external advisors.
|
|
4.
|
Represents charges and
legal costs, net of recoveries, 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.
|
Represents other
stock-based compensation expense (benefit).
|
|
6.
|
Related to impairment
of Ritter.
|
|
7.
|
Related to gain on sale
of our Clinical Services business.
|
|
Avantor, Inc. and
subsidiaries
Reconciliations of
non-GAAP measures (continued)
|
|
|
Adjusted earnings per
share
|
|
(shares in millions)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Diluted earnings per
share (GAAP)
|
$ 0.73
|
|
$ 0.15
|
|
$ 1.04
|
|
$ 0.47
|
|
Amortization
|
0.11
|
|
0.11
|
|
0.44
|
|
0.45
|
|
Loss on extinguishment
of debt
|
0.01
|
|
—
|
|
0.02
|
|
0.01
|
|
Integration-related
expenses
|
—
|
|
—
|
|
—
|
|
0.01
|
|
Restructuring and
severance charges
|
—
|
|
0.01
|
|
0.12
|
|
0.04
|
|
Transformation
expenses
|
0.02
|
|
0.01
|
|
0.09
|
|
0.01
|
|
Reserve for certain
legal matters, net
|
—
|
|
—
|
|
0.01
|
|
0.01
|
|
Other
|
—
|
|
—
|
|
(0.01)
|
|
—
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
0.24
|
|
Gain on sale of
business
|
(0.66)
|
|
—
|
|
(0.65)
|
|
—
|
|
Pension termination
charges
|
0.01
|
|
—
|
|
0.01
|
|
—
|
|
Income tax expense
(benefit) applicable to pretax
adjustments
|
0.05
|
|
(0.03)
|
|
(0.08)
|
|
(0.18)
|
|
Adjusted EPS
(non-GAAP)
|
$ 0.27
|
|
$ 0.25
|
|
$ 0.99
|
|
$ 1.06
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding:
|
|
|
|
|
|
|
|
|
Share count for
Adjusted EPS (non-GAAP)
|
682.7
|
|
679.2
|
|
681.9
|
|
678.4
|
|
Avantor, Inc. and
subsidiaries
Reconciliations of
non-GAAP measures (continued)
|
|
|
Free cash flow
|
|
(in millions)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net cash provided by
operating activities
|
$
173.3
|
|
$
251.6
|
|
$
840.8
|
|
$
870.0
|
|
Capital
expenditures
|
(27.5)
|
|
(50.6)
|
|
(148.8)
|
|
(146.4)
|
|
Divestiture-related
transaction expenses and taxes paid
|
76.3
|
|
—
|
|
76.3
|
|
—
|
|
Free cash flow
(non-GAAP)
|
$
222.1
|
|
$
201.0
|
|
$
768.3
|
|
$
723.6
|
|
Adjusted net leverage
|
|
|
(dollars in millions)
|
December 31,
2024
|
|
Total debt,
gross
|
$ 4,077.8
|
|
Less cash and cash
equivalents
|
(261.9)
|
|
$ 3,815.9
|
|
|
|
Trailing twelve months
Adjusted EBITDA(1)
|
$ 1,149.7
|
|
Trailing twelve months
ongoing stock-based compensation expense
|
47.0
|
|
$ 1,196.7
|
|
|
|
Adjusted net leverage
(non-GAAP)
|
3.2 x
|
|
|
|
1.
|
Represents the Adjusted
EBITDA of Avantor for the trailing twelve-month period minus the
results attributable to the divested business as if such
divestiture had been completed on the 1st day of such trailing
twelve-month period, as contemplated by our debt
covenants.
|
|
Avantor, Inc. and
subsidiaries
Reconciliations of
non-GAAP measures (continued)
|
|
|
Net sales by segment
|
|
|
(in millions)
|
December 31
|
|
Reconciliation of net sales growth (decline) to
organic net sales growth (decline)
|
|
Net sales
growth
(decline)
|
|
Foreign
currency
impact
|
|
Divestiture
impact
|
|
Organic
net
sales
growth
(decline)
|
|
2024
|
|
2023
|
|
|
|
Three months
ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
Laboratory
Solutions
|
$
1,125.8
|
|
$ 1,182.4
|
|
$
(56.6)
|
|
$ (3.4)
|
|
$ (42.4)
|
|
$ (10.8)
|
|
Bioscience
Production
|
560.8
|
|
540.4
|
|
20.4
|
|
(1.8)
|
|
—
|
|
22.2
|
|
Total
|
$
1,686.6
|
|
$ 1,722.8
|
|
$
(36.2)
|
|
$ (5.2)
|
|
$ (42.4)
|
|
$ 11.4
|
|
Year ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
Laboratory
Solutions
|
$
4,610.1
|
|
$ 4,738.3
|
|
$
(128.2)
|
|
$
5.5
|
|
$ (42.4)
|
|
$ (91.3)
|
|
Bioscience
Production
|
2,173.5
|
|
2,228.9
|
|
(55.4)
|
|
1.8
|
|
—
|
|
(57.2)
|
|
Total
|
$
6,783.6
|
|
$ 6,967.2
|
|
$
(183.6)
|
|
$
7.3
|
|
$ (42.4)
|
|
$
(148.5)
|
|
|
(dollars in millions, %
based on net sales)
|
December 31
|
|
Reconciliation of net sales growth (decline) to
organic net sales growth (decline)
|
|
Net sales
growth
(decline)
|
|
Foreign
currency
impact
|
|
Divestiture
impact
|
|
Organic
net
sales
growth
(decline)
|
|
2024
|
|
2023
|
|
|
|
Three months
ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
Laboratory
Solutions
|
$
1,125.8
|
|
$ 1,182.4
|
|
(4.8) %
|
|
(0.3) %
|
|
(3.6) %
|
|
(0.9) %
|
|
Bioscience
Production
|
560.8
|
|
540.4
|
|
3.8 %
|
|
(0.3) %
|
|
— %
|
|
4.1 %
|
|
Total
|
$
1,686.6
|
|
$ 1,722.8
|
|
(2.1) %
|
|
(0.3) %
|
|
(2.5) %
|
|
0.7 %
|
|
Year ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
Laboratory
Solutions
|
$
4,610.1
|
|
$ 4,738.3
|
|
(2.7) %
|
|
0.1 %
|
|
(0.9) %
|
|
(1.9) %
|
|
Bioscience
Production
|
2,173.5
|
|
2,228.9
|
|
(2.5) %
|
|
0.1 %
|
|
— %
|
|
(2.6) %
|
|
Total
|
$
6,783.6
|
|
$ 6,967.2
|
|
(2.6) %
|
|
0.1 %
|
|
(0.6) %
|
|
(2.1) %
|
|
Adjusted
Operating Income by segment
|
|
|
(dollars in millions, %
represent Adjusted
Operating Income
margin)
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|
Laboratory
Solutions
|
$ 147.4
|
|
13.1 %
|
|
$ 157.3
|
|
13.3 %
|
|
$ 598.0
|
|
13.0 %
|
|
$ 668.3
|
|
14.1 %
|
|
Bioscience
Production
|
149.2
|
|
26.6 %
|
|
132.0
|
|
24.4 %
|
|
558.2
|
|
25.7 %
|
|
601.9
|
|
27.0 %
|
|
Corporate
|
(17.2)
|
|
— %
|
|
(14.5)
|
|
— %
|
|
(66.4)
|
|
— %
|
|
(58.4)
|
|
— %
|
|
Total
|
$ 279.4
|
|
16.6 %
|
|
$ 274.8
|
|
16.0 %
|
|
$ 1,089.8
|
|
16.1 %
|
|
$ 1,211.8
|
|
17.4 %
|
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multimedia:https://www.prnewswire.com/news-releases/avantor-reports-fourth-quarter-and-full-year-2024-results-302370858.html
SOURCE Avantor and Financial News
