Group 1 - Embecta Corp. will have its Chief Financial Officer, Jake Elguicze, present at the J.P. Morgan Global Leveraged Finance Conference on February 25, 2025 [1] - The conference will take place in Miami at 3:00 p.m. ET [1] Group 2 - Embecta is a global diabetes care company with nearly 100 years of experience in insulin delivery [2] - The company aims to empower people with diabetes through innovative solutions and partnerships [2] - Embecta employs approximately 2,000 individuals worldwide [2]

Embecta Corp. (NASDAQ:EMBC) Q1 2025 Earnings Conference Call February 6, 2025 8:00 AM ET Company Participants Pravesh Khandelwal - Vice President, Investor Relations Dev Kurdikar - President & Chief Executive Officer Jake Elguicze - Chief Financial Officer Conference Call Participants Kallum Titchmarsh - Morgan Stanley Ryan Schiller - Wolfe Research Operator Good day, and thank you for standing by. Welcome, ladies and gentlemen, to the Embecta Corp. Fiscal First Quarter 2025 Earnings Conference Call. At thi ...

Financial Performance - Revenues decreased by $15.4 million, or 5.6%, to $261.9 million for the three months ended December 31, 2024, compared to $277.3 million for the same period in 2023[112] - Gross profit decreased by $28.8 million to $157.1 million, with gross profit as a percentage of revenue dropping to 60.0% from 67.0% in the prior year[112] - Operating income fell by $16.8 million to $28.7 million, representing a decrease of 36.9%[112] - Net income decreased by $20.1 million to $0.0 million, marking a 100% decline compared to the previous year[112] - Cost of products sold increased by $13.4 million, or 14.7%, to $104.8 million, with cost of products sold as a percentage of revenues rising to 40.0% from 33.0%[113] - Selling and administrative expenses decreased by $9.2 million, or 10.2%, to $81.1 million, primarily due to lower costs associated with BD[114] - Research and development expenses increased slightly by $0.1 million, or 0.5%, to $20.3 million, driven by asset impairments related to the discontinued patch pump program[115] Debt and Cash Flow - As of December 31, 2024, total principal debt issued by the company was $1,568.9 million, with long-term debt amounting to $1,534.7 million after accounting for current debt obligations and debt issuance costs[123] - The company's total debt as of December 31, 2024, was $1,544.2 million, with short-term debt representing 0.6% of total debt and a weighted average cost of total debt at 6.7%[124] - Cash and equivalents decreased from $274.2 million on September 30, 2024, to $216.7 million on December 31, 2024, primarily due to cash used for financing activities totaling $45.2 million[133] - The company paid approximately $32.4 million on the Term Loan during the first quarter of fiscal year 2025, with $30.0 million being discretionary payments[125] - Net cash used for operating activities was $5.3 million, primarily due to changes in accounts payable and accrued expenses, which were affected by the timing of payments[133] - The company plans to explore options for retiring or repurchasing outstanding debt, depending on market conditions and liquidity requirements[126] Tax and Regulatory Issues - The effective tax rate increased to 100.0% for the three months ended December 31, 2024, compared to (40.6)% in the prior year, primarily due to the absence of tax benefits from deferred tax assets[121] Operational Challenges - The company continues to face pricing pressures and competition in the medical device industry, impacting operating margins[100] - The company is subject to various risks, including competitive factors, operating cost fluctuations, and potential impacts from geopolitical instability[141] - The company is exposed to foreign currency exchange risks that could adversely affect its financial condition and cash flows[145] Internal Controls and Compliance - As of December 31, 2024, the company's disclosure controls and procedures were deemed ineffective due to a material weakness in internal control over financial reporting[150] - The company has initiated a remediation plan to address the identified material weakness, which will continue through fiscal year 2025[152] - No changes in internal control over financial reporting occurred during the three months ended December 31, 2024, that materially affected internal controls[153] - The company is enhancing control documentation and design to improve the accuracy of data used in financial reporting[154] Technology and Infrastructure - The company expects to incur material costs associated with operating and maintaining its information technology infrastructure over the next several years[138] - The implementation of a new ERP system is ongoing, with phases completed in North America, EMEA, Asia, and Greater China during fiscal years 2023 and 2024; Latin America implementation was completed in Q1 FY2025[151] Interest Rates - The interest rate on the company's Term Loan is set at 300 basis points over SOFR, with a 0.50% SOFR floor; a 100 basis points change in interest rates would impact interest expense by $8.7 million annually[148] Lease Obligations - Total lease payments, including finance and operating leases, are projected to be $71.6 million as of December 31, 2024[128] Credit Ratings - The company’s credit ratings are B1 from Moody's and B+ from Standard & Poor's as of mid-2024[131]

Embecta Corp. (EMBC) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 44.44%. A quarter ago, it was expected that this company would post earnings of $0.40 per share when it actually produced earnings of $0.45, delivering a surprise of 12.50%.Over the last four quarters, the company ha ...

Forward-Looking Statements Earnings Conference Call Fiscal Q1 2025 February 6, 2025 Safe Harbor Statement Regarding Forward-Looking Statements Today's topics: Strategic Priorities Dev Kurdikar Chief Executive Officer Jake Elguicze Chief Financial Officer Guidance Q&A Pravesh Khandelwal This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern ou ...

Financial Performance - Revenues for Q1 FY2025 were $261.9 million, a decrease of 5.6% from $277.3 million in Q1 FY2024[4] - U.S. revenues decreased by 4.6% to $141.7 million, while international revenues decreased by 6.6% to $120.2 million[7] - Gross profit was $157.1 million with a margin of 60.0%, down from $185.9 million and 67.0% in the prior year[4] - Adjusted net income was $38.3 million, or $0.65 per diluted share, compared to $35.3 million, or $0.61 per diluted share in the prior year[4] - Reported revenues for the three months ended December 31, 2024, were $261.9 million, down from $277.3 million in the same period of 2023, indicating a decrease of about 5.2%[24] - GAAP net income for the three months ended December 31, 2024, was $0, compared to $20.1 million for the same period in 2023, reflecting a significant decline[21] - Adjusted EBITDA for Q1 FY2025 was $97.3 million, with a margin of 37.2%, compared to $90.4 million and 32.6% in the prior year[4] - Adjusted EBITDA for the three months ended December 31, 2024, was $97.3 million, an increase from $90.4 million in the same period of 2023, resulting in an adjusted EBITDA margin of 37.2% compared to 32.6%[24] - GAAP Operating Income for Q4 2024 was $28.7 million, down from $45.5 million in Q4 2023, resulting in a margin decrease from 16.4% to 11.0%[30] - Adjusted Operating Income increased to $80.5 million in Q4 2024, compared to $77.5 million in Q4 2023, with an improved margin of 30.7% versus 27.9%[30] - Adjusted Net Income rose to $38.3 million in Q4 2024, up from $35.3 million in Q4 2023, with Adjusted Net Income per Diluted share increasing from $0.61 to $0.65[30] Cash and Debt Management - The company had approximately $216.7 million in cash and equivalents and $1.569 billion in debt principal outstanding as of December 31, 2024[12] - Cash and equivalents decreased from $267.5 million as of September 30, 2024, to $210.0 million as of December 31, 2024, a reduction of approximately 21.5%[19] - Closing cash and equivalents and restricted cash were $216.7 million as of December 31, 2024, down from $298.7 million as of December 31, 2023[21] - Payments on long-term debt amounted to $32.4 million for the three months ended December 31, 2024, compared to $2.4 million in the same period of 2023[21] Restructuring and Strategic Initiatives - The restructuring plan related to the discontinuation of the insulin patch pump program is on track to be completed by the end of the first half of FY2025[5] - The brand transition program is progressing as planned, with the U.S. and Canada expected to transition in the second half of FY2025[5] - Future guidance includes plans for market expansion and strengthening the core business, alongside a restructuring plan related to the insulin patch pump program[32] - The company is actively pursuing strategic partnerships and acquisitions to enhance its product portfolio and market presence[32] Asset Management - Total assets decreased from $1,285.3 million as of September 30, 2024, to $1,149.5 million as of December 31, 2024, representing a decline of approximately 10.6%[19] - Total current liabilities decreased from $374.0 million as of September 30, 2024, to $298.2 million as of December 31, 2024, a decline of about 20.3%[19] - The accumulated deficit increased from $(498.6) million as of September 30, 2024, to $(507.9) million as of December 31, 2024[19] Employee and Operational Insights - The company has approximately 2,000 employees globally, focusing on innovative solutions in diabetes care[32] - Costs associated with the discontinued patch pump program amounted to $39.6 million in Q4 2024, with significant expenses recorded in R&D and other operating costs[30] Dividend Announcement - The company announced a quarterly cash dividend of $0.15 per share, payable on March 14, 2025[13] Tax and Shareholder Information - The non-GAAP effective tax rate for Q4 2024 was 25.0%, a slight decrease from 26.0% in Q4 2023[31] - Basic weighted average shares outstanding increased to 57,952 thousand in Q4 2024 from 57,486 thousand in Q4 2023[30]

Core Viewpoint - Embecta Corp reported a decline in revenues for the first quarter of fiscal year 2025, driven by unfavorable changes in volume and foreign currency translation, while also updating its financial guidance for the year [2][10][9]. Financial Highlights - Total revenues for the three months ended December 31, 2024, were $261.9 million, a decrease of 5.6% from $277.3 million in the same period of 2023 [7][9]. - U.S. revenues decreased by 4.6% on both reported and adjusted constant currency bases, while international revenues fell by 6.6% reported and 5.1% adjusted [6][7]. - Gross profit was $157.1 million with a margin of 60.0%, down from $185.9 million and 67.0% in the prior year [7][16]. - Adjusted net income was $38.3 million, or $0.65 per diluted share, compared to $35.3 million, or $0.61 per diluted share in the prior year [7][29]. Strategic Highlights - The company is on track to complete its restructuring plan related to the discontinuation of the insulin patch pump program by the end of the first half of fiscal year 2025 [2][7]. - A brand transition plan is set to launch in the second half of the fiscal year, starting in the U.S. and Canada [2][7]. - Progress is being made on GLP-1 initiatives to enhance patient access to pen needles for GLP-1 pen injectors [2][7]. Updated Financial Guidance - For fiscal year 2025, Embecta expects reported revenues to be between $1,075 million and $1,092 million, down from previous guidance of $1,093 million to $1,110 million [10]. - Adjusted constant currency revenue growth is anticipated to be between (2.5)% and (1.0)% [10]. - Adjusted gross margin is expected to remain between 63.25% and 64.25% [10]. Balance Sheet and Liquidity - As of December 31, 2024, the company had approximately $216.7 million in cash and equivalents, with total debt principal outstanding at $1.569 billion [11][19]. - The company declared a quarterly cash dividend of $0.15 per share, payable on March 14, 2025 [12][19].

PARSIPPANY, N.J., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Embecta Corp. ("embecta") (NASDAQ:EMBC), a global diabetes care company with a 100-year legacy in insulin delivery, will host a conference call to discuss its fiscal first quarter 2025 financial results, provide an operational update, and host a question and answer session, at 8:00 a.m. Eastern Time (ET) on Thursday, February 6, 2025. Those who would like to participate may access the live webcast here, or access the teleconference here. The live webcast c ...

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PARSIPPANY, N.J., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Embecta Corp. (embecta) (Nasdaq: EMBC) today announced that management will present at the J.P. Morgan Healthcare Conference in San Francisco on Wednesday, January 15, 2025 at 7:30 a.m. PT / 10:30 a.m. ET. Audio webcasts of the presentations will be accessible under the “News & Events” section of the Company's investor relations website at investors.embecta.com. About embecta embecta is a global diabetes care company that is leveraging its nearly 100-year ...