PARSIPPANY, N.J., Feb. 09, 2024 (GLOBE NEWSWIRE) -- Embecta Corp. ("embecta" or the "Company") (NASDAQ:EMBC), a global diabetes care company, today reported financial results for the three month period ended December 31, 2023. "Building on our performance during 2023, embecta delivered strong results for the first quarter of 2024," said Devdatt (Dev) Kurdikar, Chief Executive Officer of embecta. "During the first quarter, I am pleased to report that we transitioned approximately sixty percent of our revenue ...

PARSIPPANY, N.J., Feb. 09, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Embecta Corp. ("embecta") (NASDAQ:EMBC) has declared a quarterly cash dividend of $0.15 for each issued and outstanding share of the Company's common stock. The dividend is payable on March 15, 2024 to stockholders of record at the close of business on February 28, 2024. About embecta embecta is a global diabetes care company that is leveraging its nearly 100-year legacy in insulin delivery to empower people with diabetes to live ...

Financial Performance - Revenues for the three months ended December 31, 2023, increased by $1.6 million, or 0.6%, to $277.3 million compared to $275.7 million in the same period of 2022[108] - Gross profit decreased by $2.9 million to $185.9 million, with gross profit as a percentage of revenue at 67.0%, down from 68.5% in the prior year[109] - Operating income fell by $43.3 million to $45.5 million, a decrease of 48.8% compared to the previous year[107] - Net income decreased by $15.1 million to $20.1 million, representing a decline of 42.9% from $35.2 million in the prior year[109] Expenses - Selling and administrative expenses rose by $17.5 million, or 24.0%, to $90.3 million, primarily due to increased compensation and benefits costs[111] - Research and development expenses increased by $3.3 million, or 19.5%, to $20.2 million, driven by spending on the insulin patch pump platform[112] - Cost of products sold increased by $4.5 million, or 5.2%, to $91.4 million, with costs as a percentage of revenues rising to 33.0% from 31.5%[110] Debt and Interest - As of December 31, 2023, total principal debt issued by Embecta is $1,633.4 million, with long-term debt amounting to $1,592.9 million[119] - Interest expense, net increased by $2.1 million to $27.7 million, primarily due to higher interest rates on variable rate debt[115] - The weighted average cost of total debt is 7.2%, with short-term debt representing 0.6% of total debt as of December 31, 2023[119] - The interest rate on the Term Loan is set at 300 basis points over SOFR, with a 0.50% SOFR floor[141] - A 100 basis points change in interest rates would impact interest expense on the Term Loan by $9.3 million annually[141] - The company is subject to risks related to changes in SOFR for any borrowings on the revolving credit facility[141] Cash Flow and Liquidity - Cash and cash equivalents decreased from $326.5 million as of September 30, 2023, to $298.7 million as of December 31, 2023, a reduction of $27.8 million[124] - Net cash used for operating activities was $13.1 million, primarily due to changes in trade receivables, which decreased by $78.6 million[124] - The company expects to convert outstanding trade receivables into cash during fiscal 2024 in line with contractual payment terms[126] Taxation - The effective tax rate was (40.6)% for the three months ended December 31, 2023, a decrease from 37.3% in the prior year, influenced by a tax benefit related to changes in Swiss tax law[117] Market Conditions - The company continues to face pricing pressures and increased competition in the medical device industry, impacting operating margins[96] Capital Expenditures and Obligations - Capital expenditures for the three months ended December 31, 2023, were $2.7 million, supporting further business expansion[131] - Lease obligations total $81.3 million, with significant payments due in the years following 2028[121] Credit Ratings - Moody's and S&P maintained credit ratings of Ba3 and B+, respectively, unchanged since January 2022[124] Inventory and Receivables - The change in inventories was driven by product sales of certain inventory levels built up in anticipation of the North America ERP system going live in November 2023[127] - The company is now responsible for the collection of outstanding trade receivables in the U.S. following the termination of a portion of the Factoring Agreement with BD[123]

PARSIPPANY, N.J., Feb. 07, 2024 (GLOBE NEWSWIRE) -- Embecta Corp. (embecta) (NASDAQ:EMBC) today announced that management will host one-on-one investor meetings on Tuesday, February 13, 2024, at the Cliff Lodge, Snowbird, UT. About embecta embecta is a global diabetes care company that is leveraging its 100-year legacy in insulin delivery to empower people with diabetes to live their best life through innovative solutions, partnerships and the passion of more than 2,000 employees around the globe. For more ...

Financial Performance - Revenue for the year ended September 30, 2023, decreased by $8.7 million, or 0.8%, to $1,120.8 million from $1,129.5 million in 2022[196] - Gross profit decreased by $25.0 million to $749.9 million, with gross profit as a percentage of revenue at 66.9%, down from 68.6% in the prior year[195] - Operating income decreased by $88.1 million to $221.5 million from $309.6 million[195] - Net income decreased by $153.2 million to $70.4 million from $223.6 million, resulting in a diluted net income per share of $1.22 compared to $3.89 in the previous year[194][195] Expenses - Cost of products sold increased by $16.3 million, or 4.6%, to $370.9 million, with cost of products sold as a percentage of revenues rising to 33.1% from 31.4%[198] - Selling and administrative expenses increased by $46.5 million, or 15.8%, to $341.3 million, primarily due to increased compensation and benefit costs[200] - Research and development expenses increased by $18.3 million, or 27.4%, to $85.2 million, attributed to investments in new products[202] - Other operating expenses rose to $99.4 million from $44.7 million, primarily related to accounting, auditing, and legal services[206] Foreign Currency and Geopolitical Impact - The company faced a $26.5 million negative impact on revenues due to foreign currency translation from the strengthening of the U.S. dollar[196] - The company continues to monitor geopolitical conflicts, including the situation in Ukraine and Israel, with no material impact on operations reported as of November 29, 2023[192] Interest and Taxation - Interest expense increased to $107.0 million for the year ended September 30, 2023, from $46.2 million in 2022, primarily due to longer debt outstanding and higher interest rates[207] - Other income (expense), net decreased by $2.0 million to $(8.8) million for the year ended September 30, 2023, compared to $(6.8) million in 2022[208] - The effective income tax rate increased due to a valuation allowance against interest expense carryforwards and higher U.S. tax on foreign earnings[209] - As of September 30, 2023, the company recorded deferred taxes on undistributed earnings of foreign subsidiaries, with an anticipated $18.0 million reduction in income tax expense in fiscal year 2024[210][211] Cash Flow and Debt - Cash and cash equivalents were $326.5 million as of September 30, 2023, a decrease from $330.9 million in 2022, with net cash provided by operating activities at $67.7 million[225] - Net cash used for investing activities was primarily $26.5 million for capital expenditures to support business expansion[226] - Total principal debt outstanding as of September 30, 2023, was $1,635.8 million, with long-term debt at $1,593.9 million[218] - The weighted average cost of total debt was 7.1% as of September 30, 2023, with short-term debt representing 0.6% of total debt[219] Contracts and Obligations - The company has contractual obligations of approximately $227 million for purchase obligations and $82 million for lease obligations as of September 30, 2023[228] - The company entered into a lease agreement for approximately 278,000 square feet of manufacturing space for an initial term of ten years[220] Tax and Accounting Practices - The company incurs stock-based compensation expenses over the requisite service period based on the grant date fair value of awards, utilizing the Black-Scholes-Merton option-pricing model[232] - The company recognizes deferred tax assets and liabilities for expected future tax consequences of temporary differences between financial statements and tax basis of assets and liabilities[233] - The company evaluates factors such as prior earnings history and expected future earnings to determine the necessity of valuation allowances for deferred tax assets[234] - The company establishes reserves for uncertain tax positions based on its interpretation of tax laws and regulations, recognizing interest and penalties as part of income tax expense when applicable[236] Risks and Challenges - The company is exposed to foreign currency exchange risks that could adversely affect its financial condition and results of operations[243] - As of September 30, 2023, the company's Term Loan interest rate is set at 300 basis points over SOFR, with a 100 basis points change impacting interest expense by $9.4 million annually[246] - The company faces risks related to competitive factors, including new drug therapies for diabetes and pricing pressures from lower-cost producers[240] - The company may encounter challenges in completing strategic partnerships and acquisitions that could accelerate growth and access innovative technologies[246] - The company is subject to risks from changes in laws and regulations affecting its domestic and foreign operations, including healthcare and tax policies[246] - The company acknowledges that actual results may differ materially from forward-looking statements due to various risks and uncertainties[241]

Embecta Corp. (NASDAQ:EMBC) Q4 2023 Results Conference Call November 21, 2023 7:00 AM ET Company Participants Pravesh Khandelwal - Vice President of Investor Relations Dev Kurdikar - Chief Executive Officer Jake Elguicze - Chief Financial Officer Conference Call Participants Marie Thibault - BTIG Mike Polark - Wolfe Research Operator Welcome, ladies and gentlemen, to the Fiscal Fourth Quarter and Full Year 2023 embecta Earnings Conference Call. at this time, all participants have been placed in a listen-onl ...

Financial Data and Key Metrics Changes - For Q3 2023, the company reported revenue of $286.1 million, a decrease of 1.7% on an as-reported basis and 0.3% on a constant currency basis [53][56] - GAAP gross profit was $189.5 million with a margin of 66.2%, down from $202.9 million and 69.7% in the prior year [7][73] - Adjusted net income was $39.8 million with earnings per share of $0.69, while GAAP net income was $15.2 million with earnings per diluted share of $0.26 [8][73] - The company raised its guidance for adjusted gross margin to approximately 66%, up from 64.5%, and adjusted EBITDA margin to approximately 33.5%, up from 32.5% [9][75] Business Line Data and Key Metrics Changes - The core injection business grew approximately 0.5% on a constant currency basis when normalizing for non-diabetes products [53][6] - U.S. revenue totaled $153.9 million, reflecting a year-over-year constant currency decline of 2.6% [43][56] - International revenue was $132.2 million, showing a year-over-year constant currency growth of 2.4% [6][55] Market Data and Key Metrics Changes - U.S. revenues were relatively flat on a constant currency basis, while international revenues grew approximately 3.2%, driven by emerging markets [54][56] - The company anticipates a 3.6% constant currency headwind in Q4 due to the lack of contract manufacturing revenue [14][74] Company Strategy and Development Direction - The company is focused on strengthening its base business, separating from BD, and investing in growth initiatives, particularly in the insulin patch pump program [41][52] - The company is monitoring competitive threats from new drug developments, including once-weekly insulin and GLP-1s, and is exploring opportunities to leverage its manufacturing capabilities [20][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of strategic priorities and raised financial guidance based on better-than-expected Q3 performance [10][75] - The company is cautious about the impact of contract manufacturing revenue and anticipates a sequential step down in margins due to temporary operational suspensions [57][82] Other Important Information - The company has begun the demerger process for its manufacturing facility in Suzhou, China, and is implementing an ERP solution during the temporary suspension of operations [16][23] - The company holds approximately $317 million in cash and cash equivalents and $1.64 billion in debt, resulting in a net leverage ratio of approximately 3.4x [56] Q&A Session Questions and Answers Question: What are the expectations for the China facility shutdown and margin improvement? - Management indicated that the timing for the facility shutdown is still being determined and that they will provide a multi-year outlook as they progress [32][64] Question: How does the company plan to address the impact of new drug developments like GLP-1s? - Management is closely monitoring the market and believes it is too early to determine the long-term impact of GLP-1s on their business, noting that growth is primarily in emerging markets [20][85] Question: What are the assumptions for base business growth and volume growth in the U.S. and international markets? - The company anticipates core injection business growth of 1.3% to 3.3% on a constant currency basis in Q4, driven by expectations in both the U.S. and China [62][74]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41186 | | Trading | Name of each exchange | | --- | --- | --- | | Title of each class | symbol(s) | on which r ...

Embecta Corp. (NASDAQ:EMBC) Q2 2023 Earnings Conference Call May 12, 2023 8:00 AM ET Company Participants Pravesh Khandelwal - Vice President, Investor Relations Dev Kurdikar - Chief Executive Officer Jake Elguicze - Chief Financial Officer Conference Call Participants Cecilia Furlong - Morgan Stanley Sam Eiber - BTIG Travis Steed - Bank of America Securities Anthony Petrone - Mizuho Securities Operator Welcome, ladies and gentlemen to the Fiscal Second Quarter 2023 Embecta Earnings Conference Call. At this ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 Or For the transition period from to Commission file number 001-41186 EMBECTA CORP. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...