Group 1 - Mirion Technologies, Inc. is part of the Business Services sector, which includes 305 individual stocks and currently holds a Zacks Sector Rank of 4 [1] - Year-to-date, Mirion Technologies has returned approximately 74.7%, outperforming the average gain of 23.4% for Business Services stocks [2] - Within the Technology Services industry, which consists of 162 companies, Mirion Technologies ranks 56 in the Zacks Industry Rank and has outperformed the industry average return of 58.2% this year [3] Group 2 - The Zacks Consensus Estimate for Mirion Technologies' full-year earnings has increased by 6.5% over the past quarter, indicating improved analyst sentiment [5] - Mirion Technologies currently holds a Zacks Rank of 2 (Buy), suggesting a positive earnings outlook [7] - Investors should monitor Mirion Technologies and Grab Holdings Limited as both companies are expected to maintain strong performance in the Business Services sector [9]

Core Insights - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that a solid trend can lead to successful trading [1][2]. Stock Performance - Mirion Technologies, Inc. (MIR) has shown a significant price increase of 81.1% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 18.2% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, MIR is trading at 90.7% of its 52-week high-low range, indicating a potential breakout [5]. Fundamental Strength - MIR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like MIR that are on an upward trend supported by strong fundamentals [3][8]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [8].

Revenue Growth - The company reported a significant increase in revenue, with a year-over-year growth of 15% for the third quarter of 2024, reaching $500 million[17]. - The company anticipates a revenue growth of 10% to 12% for the next quarter, projecting revenues between $550 million and $560 million[17]. - Total revenues for the three months ended September 30, 2024, were $206.8 million, an increase of 8.8% compared to $191.2 million for the same period in 2023[21]. - Total revenues for the nine months ended September 30, 2024, were $606.5 million, a 6.3% increase from $570.5 million for the same period in 2023[156]. - The company reported a revenue of $149.5 million for point-in-time recognition for the three months ended September 30, 2024, compared to $128.0 million in the same period of 2023, marking a 16.7% increase[157]. User Growth - User data showed a 20% increase in active users, totaling 2 million users as of September 30, 2024[17]. Market Expansion - The company is expanding its market presence in Asia, targeting a 25% increase in market share by the end of 2025[17]. - The company is actively exploring strategic partnerships to enhance its competitive positioning in the market[17]. Research and Development - Ongoing research and development efforts have led to advancements in technology, with a budget increase of 30% for R&D in 2024[17]. - Research and development expenses increased to $10.2 million for the three months ended September 30, 2024, compared to $7.9 million in the same period last year, indicating a focus on innovation[21]. Financial Performance - Gross profit for the three months ended September 30, 2024, was $92.9 million, up from $80.8 million in the same period last year, reflecting a gross margin improvement[21]. - The company reported a gross profit margin of 44.9% for the three months ended September 30, 2024, compared to 42.3% for the same period in 2023[21]. - The net loss attributable to Mirion Technologies, Inc. for the three months ended September 30, 2024, was $13.6 million, compared to a net loss of $12.1 million for the same period in 2023[21]. - Operating expenses for the three months ended September 30, 2024, totaled $94.5 million, slightly higher than $91.9 million in the prior year[21]. - The company experienced a foreign currency translation gain of $29.5 million for the three months ended September 30, 2024, compared to a loss of $20.3 million in the same period last year[23]. Acquisitions and Integration - The company has successfully integrated two recent acquisitions, which are projected to enhance operational efficiency by 15%[17]. - The acquisition of ec Software Solutions, LLC and NUMA LLC was completed for a purchase price of $31.4 million, including $14.5 million in intangible assets and $17.4 million in goodwill[70]. - The Company recorded a $1.4 million net increase in goodwill related to the ec acquisition during the nine months ended September 30, 2024[70]. Debt and Financing - As of September 30, 2024, total third-party debt amounted to $696.8 million, slightly increasing to $698.4 million by December 31, 2023[8]. - The 2021 Credit Agreement includes an $830.0 million senior secured first lien term loan facility and a $90.0 million senior secured revolving facility, with the term loan maturing on October 20, 2028[100]. - The interest rate on the term loan was 6.85% as of September 30, 2024, down from 8.40% on December 31, 2023, following an amendment that reduced the applicable margin rate[106]. Operational Efficiency - Supply chain improvements have reduced costs by 10%, positively impacting the overall profit margins[17]. - Total accrued expenses and other current liabilities amounted to $103.4 million as of September 30, 2024, compared to $95.6 million on December 31, 2023, reflecting an increase of 8.5%[83]. Risks and Challenges - Future risks include potential impacts from geopolitical tensions, particularly between the United States and China, which could affect operations[17]. - The company is actively monitoring inflation and interest rates, which have increased debt service costs[206]. Stockholder Equity - As of September 30, 2023, total stockholders' equity was $1,543.3 million, with an accumulated deficit of $490.2 million[28]. - The balance of total stockholders' equity as of December 31, 2023, was $1,550.0 million, with an accumulated deficit of $505.4 million[30]. Segment Performance - Medical segment revenues reached $74.1 million in Q3 2024, up from $68.8 million in Q3 2023, while Technologies segment revenues increased to $132.7 million from $122.4 million[153]. - Total segment income from operations for Q3 2024 was $18.7 million, compared to $9.4 million in Q3 2023, indicating a significant improvement in operational performance[153]. Restructuring and Costs - Total restructuring expenses for the nine months ended September 30, 2024, amounted to $4.7 million, compared to $1.6 million for the same period in 2023[189]. - The Company incurred severance and employee costs of $1.5 million for the three months ended September 30, 2024, and $0.3 million for the same period in 2023[184].

| --- | --- | |------------------------------------------------------------|-------| | | | | | | | | | | Third Quarter 2024 Earnings Presentation October 29, 2024 | | | | | | | | | | | Q3 2024 EARNINGS PRESENTATION Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate", "believe", "continue", "could", "estimate", "expect", "hope", "intend", "may", "might", "pl ...

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $207 million, an 8% increase compared to the same period last year [6][28] - Adjusted EPS was $0.08 per share, and adjusted EBITDA was $45.7 million, reflecting a 180 basis point margin improvement year-over-year [6][28] - Organic revenue growth was 6.1%, with adjusted EBITDA margins at 22.1%, marking the fifth consecutive quarter of margin expansion [29][30] Business Line Data and Key Metrics Changes - The Technologies group revenue grew 8.4% to $132.7 million, with margins up 370 basis points due to strong operating performance [37] - The Medical group revenue increased 7.7% to $74.1 million, with organic growth of 3.2% [35] - The nuclear medicine business saw significant growth, with year-to-date unit growth in dose calibrator shipments at 18% compared to 2023 [21] Market Data and Key Metrics Changes - The nuclear power segment experienced a 12% core order growth, excluding large orders from the previous year [16][30] - The backlog at the end of the quarter was $815 million, a 2% increase year-over-year [32] - The company noted a strong pipeline of $300 million to $400 million in new order opportunities expected to be awarded by the end of 2025 [18][55] Company Strategy and Development Direction - The company is focusing on strategic relationships with significant players in the small modular reactor (SMR) market, anticipating a robust demand for clean energy [12][50] - A strategic alliance with Siemens Healthineers aims to expand the global reach of the SunCHECK software platform [23] - The company is committed to improving operational performance through enhanced procurement strategies and business systems [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the evolving macro environment, particularly in nuclear power and cancer care, which are expected to provide favorable tailwinds [7][19] - The company anticipates continued growth in the nuclear medicine market driven by advancements in radiopharmaceutical therapy [20][52] - Management highlighted the improved economic health of the nuclear industry, which is expected to positively impact capital expenditures and operational spending [64][66] Other Important Information - The company has fine-tuned its guidance for revenue growth to 6% to 7% and organic revenue growth to 5% to 6% for the year [39][41] - Adjusted free cash flow guidance was narrowed to $65 million to $75 million [41] - The company plans to provide more detailed insights into its strategy and market positioning at the upcoming Investor Day on December 3rd [42][82] Q&A Session Summary Question: Can you discuss the de-booking that occurred this quarter? - Management explained that the de-booking was related to a contractual dispute on a project in Turkey, but they remain optimistic about regaining some of that business [43][44] Question: What is the status of the Sizewell project? - Management confirmed that the Sizewell contract was part of the expected deal flow and highlighted the significance of their relationship with EDF in securing this contract [47][74] Question: How does the company view the impact of Hyperscalers on future orders? - Management indicated that they are focused on broadening strategic alliances and expect to see additional funding and commitments in the SMR space, which could positively impact orders [49][50] Question: What is the long-term growth outlook for the radiopharmaceutical business? - Management expressed confidence in the growth potential of the radiopharmaceutical market, driven by a robust pipeline of Theranostic drugs and their unique position in the data management space [51][53] Question: Can you provide more details on the backlog by segments? - Management stated that the backlog is composed of 75% Technologies and 25% Medical, with a significant portion of Medical revenue being more short-term oriented [72] Question: How does the company leverage its relationship with EDF for new contracts? - Management elaborated on the strategic relationship with EDF, emphasizing its importance in securing contracts like Sizewell C and the efficiency it brings to the process of building new reactors [73][76]

Financial Data and Key Metrics Changes - Revenue grew by 5% in Q2 2024, reaching $207.1 million, with organic growth at 3.6% [14] - Adjusted EBITDA increased by 10.2% to $48.8 million, with adjusted EBITDA margins expanding 110 basis points to 23.6% [14] - Adjusted free cash flow was nearly $9 million in the quarter, contributing to a cash flow positive first half of the year [6] Business Line Data and Key Metrics Changes - Medical segment revenue grew by 7.7% with organic growth of 2.6%, driven by Nuclear Medicine [15] - Technology segment revenue increased by 3.7% with organic growth of 4.1%, supported by strong performance in Nuclear Power [17] - Adjusted EBITDA margin for the Medical segment was 34.3%, a 150 basis point expansion from the previous year [15] Market Data and Key Metrics Changes - Order growth was relatively flat compared to the same period last year, with Nuclear Power orders up by more than 15% [5] - Medical segment order growth was approximately 3%, with strong performance in Dosimetry and Nuclear Medicine [7] - Anticipated changes by CMS for the reimbursement of radio diagnostic drugs in the US market are expected to positively impact market dynamics [31] Company Strategy and Development Direction - A strategic partnership agreement was signed with EDF, making Mirion an exclusive content supplier for their nuclear new build projects over the next two decades [3][4] - The company is focusing on margin performance, with a target of 30% long-term EBITDA margin through procurement initiatives and operational improvements [11][36] - Organizational changes include the appointment of a Chief Revenue Officer and the exit from the Medical Lasers and Alignment business to streamline operations [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of end markets, particularly in Nuclear Power and Nuclear Medicine, despite facing tough order growth comparisons in the second half of the year [5][25] - The company anticipates that the international markets will improve in 2025, driven by strengthening economic conditions [21][29] - Management remains optimistic about the order pipeline and backlog, expecting to maintain or grow backlog levels in the upcoming quarters [24][25] Other Important Information - The company updated its 2024 financial guidance, raising the adjusted EBITDA target to $195 million to $205 million [6][19] - The company completed the redemption of all outstanding public and private warrants, simplifying its capital structure [22] - An Investor Day is planned for early December to share updated strategy and long-term financial targets with the investment community [22] Q&A Session Summary Question: Health of the order pipeline and backlog expectations - Management indicated that while order rates may not be positive year-over-year in the second half, they expect backlog to be up compared to the same period last year [24][25] Question: Impact of the EDF partnership on existing relationships - The partnership streamlines commercial terms and strengthens competitive positioning, providing greater confidence in future investments [27] Question: Anticipated impact of anticorruption dynamics in China - Management expects 2024 to be the low point for the RTQA business, with improvements anticipated in late 2024 and into 2025 [28][29] Question: Potential impact of CMS changes on reimbursement - Management noted that changes in CMS reimbursement protocols could reduce friction for the prescription of radio diagnostic procedures, potentially increasing demand for their products [31][43] Question: Capital structure improvements - Management stated that significant progress has been made on the balance sheet, with a focus on executing growth plans and improving margins [32][33] Question: Visibility on cash flow generation - Management expressed confidence in generating cash in the second half of the year, aligning with historical performance [40]

Company Overview - The9 Limited is an established Internet company listed on Nasdaq since 2004, aiming to become a global diversified high-tech Internet company engaged in blockchain and AI applications [4]. Licensing Agreement - The9's subsidiary, China Crown Technology Limited, has entered into an exclusive publishing license agreement with Wemade Co., Ltd. to publish and service the new MIR M game in mainland China for both Mobile and PC versions [1]. - The license term is set for 5 years from the commercial launch date, with a potential 1-year extension if neither party objects [1]. Game Development and Features - MIR is recognized as one of the largest game IPs in China, and the collaboration with Wemade aims to deliver a new gaming experience that diverges from traditional methods [2]. - The game may incorporate blockchain technology in compliance with PRC laws, and there are plans to explore AI utilization in game development, including enhancements to NPCs and personalized behavior prediction [1][2]. Market Launch - The commercial launch of the MIR M game is anticipated in early 2025 [1].

[Introduction](index=1&type=section&id=Introduction) This section introduces financial reporting distinctions and a cautionary note on forward-looking statements [Introductory Note](index=2&type=section&id=Introductory%20Note) Mirion Technologies completed its Business Combination, establishing 'Predecessor' and 'Successor' financial periods - Mirion Technologies, Inc. completed its **Business Combination on October 20, 2021**, leading to a distinction in financial reporting between 'Predecessor' and 'Successor' periods[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - Successor Period financial statements are presented on a **full step-up basis** due to the acquisition method of accounting, making them not comparable to Predecessor Period statements[8](index=8&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section warns of forward-looking statements subject to risks and uncertainties, not guaranteed to be updated - The report contains forward-looking statements based on current expectations, beliefs, and assumptions, which are not guarantees of future performance[10](index=10&type=chunk)[11](index=11&type=chunk) - Key risks and uncertainties include changes in domestic and foreign business conditions, government budgets, international conflicts (Russia-Ukraine, Middle East), public perception of nuclear technologies, and supply chain challenges[11](index=11&type=chunk)[12](index=12&type=chunk)[17](index=17&type=chunk) - The company uses its investor relations website, SEC filings, press releases, and social media to communicate material information[16](index=16&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents unaudited financial statements, management's discussion, and market risk disclosures [ITEM 1. Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents Mirion's unaudited condensed consolidated financial statements, including core financial statements [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific dates | Metric (in millions) | March 31, 2024 | December 31, 2023 | | :------------------- | :------------- | :---------------- | | Total current assets | $514.6 | $538.6 | | Total assets | $2,648.7 | $2,718.5 | | Total current liabilities | $234.6 | $265.7 | | Total liabilities | $1,130.8 | $1,168.5 | | Total stockholders' equity | $1,517.9 | $1,550.0 | - Total assets decreased by **$69.8 million**, and total liabilities decreased by **$37.7 million** from December 31, 2023, to March 31, 2024[23](index=23&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net loss over specific reporting periods | Metric (in millions, except per share data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Total revenues | $192.6 | $182.1 | | Gross profit | $87.1 | $79.1 | | Loss from operations | $(4.9) | $(13.6) | | Net loss | $(26.5) | $(42.9) | | Net loss attributable to Mirion Technologies, Inc. | $(25.8) | $(41.9) | | Net loss per common share (basic and diluted) | $(0.13) | $(0.22) | - Total revenues increased by **$10.5 million (5.8%)** year-over-year, while net loss decreased by **$16.4 million (38.2%)** for the three months ended March 31, 2024[25](index=25&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents net loss and other comprehensive income or loss components for reporting periods | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(26.5) | $(42.9) | | Other comprehensive (loss) income, net of tax | $(9.2) | $8.3 | | Comprehensive loss | $(35.7) | $(34.6) | | Comprehensive loss attributable to Mirion Technologies, Inc. | $(34.7) | $(33.9) | - Other comprehensive loss, net of tax, shifted from a gain of **$8.3 million** in Q1 2023 to a loss of **$9.2 million** in Q1 2024, primarily due to foreign currency translation loss[27](index=27&type=chunk) [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in the company's equity accounts, including net loss and comprehensive loss | Metric (in millions) | Balance December 31, 2023 | Balance March 31, 2024 | | :------------------- | :------------------------ | :--------------------- | | Additional paid-in capital | $2,056.5 | $2,063.9 | | Accumulated deficit | $(505.4) | $(531.2) | | Accumulated other comprehensive loss | $(65.3) | $(74.2) | | Total stockholders' equity | $1,550.0 | $1,517.9 | - Total stockholders' equity decreased by **$32.1 million** from December 31, 2023, to March 31, 2024, mainly due to net loss and increased accumulated other comprehensive loss[30](index=30&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash inflows and outflows from operating, investing, and financing activities | Metric (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by (used in) operating activities | $6.0 | $(2.7) | | Net cash used in investing activities | $(12.9) | $(7.5) | | Net cash provided by financing activities | $0.2 | $24.6 | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(8.8) | $15.1 | - Operating activities generated **$6.0 million** in cash in Q1 2024, a significant improvement from a **$2.7 million** cash usage in Q1 2023[33](index=33&type=chunk) - Investing activities used more cash in Q1 2024 (**$12.9 million**) compared to Q1 2023 (**$7.5 million**), primarily due to increased purchases of property, plant, and equipment[33](index=33&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed disclosures for financial statements, covering business, policies, and specific items [Note 1. Nature of Business and Summary of Significant Accounting Policies](index=11&type=section&id=Note%201.%20Nature%20of%20Business%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note describes Mirion's business operations and outlines its significant accounting policies - Mirion Technologies, Inc. is a global provider of radiation detection, measurement, analysis, and monitoring products and services for medical, nuclear, and defense markets[36](index=36&type=chunk) - The company operates through two reportable segments: Medical (radiation oncology QA, dosimetry, radionuclide therapy) and Technologies (personal radiation detection, nuclear power plant tools)[37](index=37&type=chunk)[41](index=41&type=chunk) - No material changes occurred in significant accounting policies during the three months ended March 31, 2024, compared to the prior fiscal year[43](index=43&type=chunk) Prepaid Expenses and Other Current Assets (in millions) | Prepaid Expenses and Other Current Assets (in millions) | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Prepaid insurance | $2.3 | $1.0 | | Prepaid vendor deposits | $7.3 | $7.6 | | Prepaid software licenses | $3.9 | $3.5 | | Short-term marketable securities | $5.4 | $5.3 | | Income tax receivable and prepaid income taxes | $1.0 | $8.0 | | Other tax receivables | $1.4 | $1.4 | | Other current assets | $17.2 | $17.3 | | Total | $38.5 | $44.1 | [Note 2. Business Combinations and Acquisitions](index=15&type=section&id=Note%202.%20Business%20Combinations%20and%20Acquisitions) This note details the company's recent business combinations and acquisition activities - On November 1, 2023, Mirion acquired ec2 Software Solutions, LLC and NUMA LLC for **$31.4 million**, integrating them into the Medical segment to expand software offerings[65](index=65&type=chunk) - Measurement period adjustments in Q1 2024 resulted in a **$0.6 million** net increase in goodwill and a **$0.3 million** net increase in intangible assets related to the ec2 acquisition[65](index=65&type=chunk) [Note 3. Contracts in Progress](index=16&type=section&id=Note%203.%20Contracts%20in%20Progress) This note provides information on the company's contracts in progress and related revenue recognition Contracts in Progress (in millions) | Contracts in Progress (in millions) | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Costs incurred on contracts | $353.1 | $324.5 | | Estimated earnings | $211.8 | $208.7 | | Contracts in progress | $564.9 | $533.2 | | Less: billings to date | $(524.3) | $(511.3) | | Net contracts in progress | $40.6 | $21.9 | - The net balance of contracts in progress increased from **$21.9 million** at December 31, 2023, to **$40.6 million** at March 31, 2024[69](index=69&type=chunk) - The Company recognized **$17.6 million** in revenue related to contract liabilities from December 31, 2023, during the three months ended March 31, 2024[70](index=70&type=chunk) [Note 4. Inventories](index=17&type=section&id=Note%204.%20Inventories) This note details the composition and changes in the company's inventory balances Inventory Components (in millions) | Inventory Components (in millions) | March 31, 2024 | December 31, 2023 | | :--------------------------------- | :------------- | :---------------- | | Raw materials | $66.5 | $67.2 | | Work in progress | $36.7 | $35.3 | | Finished goods | $43.6 | $41.6 | | Total inventories | $146.8 | $144.1 | - Total inventories increased by **$2.7 million** from December 31, 2023, to March 31, 2024, driven by increases in work in progress and finished goods[71](index=71&type=chunk) [Note 5. Property, Plant and Equipment, Net](index=17&type=section&id=Note%205.%20Property,%20Plant%20and%20Equipment,%20Net) This note provides details on the company's property, plant, and equipment, including depreciation Property, Plant and Equipment, Net (in millions) | Property, Plant and Equipment, Net (in millions) | March 31, 2024 | December 31, 2023 | | :----------------------------------------------- | :------------- | :---------------- | | Land, buildings, and leasehold improvements | $49.9 | $49.4 | | Machinery and equipment | $39.6 | $38.5 | | Badges | $44.2 | $41.0 | | Furniture, fixtures, computer equipment and other | $22.9 | $22.9 | | Software development costs | $11.0 | $10.7 | | Construction in progress | $32.5 | $28.6 | | Total gross PPE | $200.1 | $191.1 | | Less: accumulated depreciation and amortization | $(61.8) | $(56.6) | | Net PPE | $138.3 | $134.5 | - Net property, plant, and equipment increased by **$3.8 million** from December 31, 2023, to March 31, 2024, primarily due to an increase in construction in progress and badges[72](index=72&type=chunk) Depreciation Expense (in millions) | Depreciation Expense (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Cost of revenues | $5.3 | $4.7 | | Operating expenses | $2.0 | $2.9 | [Note 6. Accrued Expenses and Other Current Liabilities](index=18&type=section&id=Note%206.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) This note outlines the components of accrued expenses and other current liabilities Accrued Expenses and Other Current Liabilities (in millions) | Accrued Expenses and Other Current Liabilities (in millions) | March 31, 2024 | December 31, 2023 | | :----------------------------------------------------------- | :------------- | :---------------- | | Compensation and related benefit costs | $34.7 | $41.8 | | Customer deposits | $8.0 | $8.5 | | Accrued commissions | $0.3 | $0.3 | | Accrued warranty costs | $4.9 | $4.5 | | Non-income taxes payable | $9.2 | $11.8 | | Pension and other post-retirement obligations | $0.3 | $0.3 | | Income taxes payable | $2.7 | $4.2 | | Derivative liability | $7.7 | $10.7 | | Other accrued expenses | $11.2 | $13.5 | | Total | $79.0 | $95.6 | - Total accrued expenses and other current liabilities decreased by **$16.6 million** from December 31, 2023, to March 31, 2024, primarily due to decreases in compensation and related benefit costs, non-income taxes payable, and derivative liability[74](index=74&type=chunk) [Note 7. Goodwill and Intangible Assets](index=18&type=section&id=Note%207.%20Goodwill%20and%20Intangible%20Assets) This note details the company's goodwill and intangible assets, including impairment assessments - Goodwill is assessed for impairment annually and upon triggering events; no impairment was recognized for the three months ended March 31, 2024 or 2023[76](index=76&type=chunk)[80](index=80&type=chunk) Goodwill (in millions) | Goodwill (in millions) | Medical | Technologies | Consolidated | | :--------------------- | :------ | :----------- | :----------- | | Balance—December 31, 2023 | $633.4 | $814.2 | $1,447.6 | | Measurement period adjustment | $0.6 | — | $0.6 | | Translation adjustment | — | $(8.0) | $(8.0) | | Balance—March 31, 2024 | $634.0 | $806.2 | $1,440.2 | Intangible Assets (Net Book Value in millions) | Intangible Assets (Net Book Value in millions) | March 31, 2024 | December 31, 2023 | | :--------------------------------------------- | :------------- | :---------------- | | Customer relationships | $183.4 | $197.7 | | Distributor relationships | $43.1 | $44.9 | | Developed technology | $187.2 | $196.3 | | Trade names | $74.6 | $77.6 | | Backlog and other | $16.0 | $22.3 | | Total | $504.3 | $538.8 | - Total intangible assets, net, decreased by **$34.5 million** from December 31, 2023, to March 31, 2024, primarily due to amortization[83](index=83&type=chunk) [Note 8. Borrowings](index=19&type=section&id=Note%208.%20Borrowings) This note provides information on the company's debt obligations and borrowing arrangements Third-Party Debt (in millions) | Third-Party Debt (in millions) | March 31, 2024 | December 31, 2023 | | :----------------------------- | :------------- | :---------------- | | 2021 Credit Agreement | $694.6 | $694.6 | | Canadian Financial Institution | $1.0 | $1.0 | | Other | $1.7 | $2.8 | | Total third-party debt | $697.3 | $698.4 | | Less: third-party debt, current | $(0.1) | $(1.2) | | Less: deferred financing costs | $(11.8) | $(12.5) | | Third-party debt, non-current | $685.4 | $684.7 | - The 2021 Credit Agreement includes an **$830.0 million** senior secured first lien term loan (maturing October 2028) and a **$90.0 million** senior secured revolving facility (expiring October 2026)[87](index=87&type=chunk) - The term loan interest rate was **8.36%** as of March 31, 2024, and **8.40%** as of December 31, 2023. No principal payments are due on the term loan until expiration, following a **$125.0 million** early repayment in Q1 2023[92](index=92&type=chunk)[93](index=93&type=chunk) Contractual Principal Payments (in millions) | Contractual Principal Payments (in millions) | Amount | | :------------------------------------------- | :----- | | Remainder of 2024 | $0.1 | | Fiscal year ending December 31, 2025 | $0.1 | | Fiscal year ending December 31, 2026 | $1.7 | | Fiscal year ending December 31, 2027 | $0.1 | | Fiscal year ending December 31, 2028 | $694.7 | | Thereafter | $0.6 | | Gross Payments | $697.3 | | Unamortized debt issuance costs | $(11.8)| | Total third-party borrowings, net | $685.5 | [Note 9. Leased Assets](index=22&type=section&id=Note%209.%20Leased%20Assets) This note details the company's operating lease assets and liabilities Lease Assets and Liabilities (in millions) | Lease Assets and Liabilities (in millions) | March 31, 2024 | December 31, 2023 | | :----------------------------------------- | :------------- | :---------------- | | Operating lease right-of-use assets | $31.1 | $32.8 | | Total operating lease liabilities | $33.1 | $34.9 | - The weighted average remaining lease term for operating leases was **6.5 years**, and the weighted average discount rate was **4.32%** as of March 31, 2024[108](index=108&type=chunk) - Cash paid for operating lease liabilities was **$2.1 million** for the three months ended March 31, 2024, down from **$2.6 million** in the prior year period[109](index=109&type=chunk) [Note 10. Commitments and Contingencies](index=24&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) This note outlines the company's contractual commitments and potential contingent liabilities Unconditional Purchase Obligations (in millions) | Unconditional Purchase Obligations (in millions) | Amount | | :----------------------------------------------- | :----- | | Fiscal year ending December 31, 2024 | $45.6 | | Fiscal year ending December 31, 2025 | $9.5 | | Fiscal year ending December 31, 2026 | $1.1 | | Fiscal year ending December 31, 2027 | $0.6 | | Total | $56.8 | - A Russian customer made claims totaling **$21 million** (subject to a **$14 million** contractual cap) for project delays and demanded the return of **$10.2 million** for a cancelled Finland project; management disputes these claims[113](index=113&type=chunk) - A lawsuit alleging copyright infringement and breach of contract by a vendor was settled on March 30, 2024, with no material impact on Q1 2024 financial statements[114](index=114&type=chunk) [Note 11. Income Taxes](index=25&type=section&id=Note%2011.%20Income%20Taxes) This note provides details on the company's income tax provisions and effective tax rates Effective Income Tax Rate | Effective Income Tax Rate | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------ | :-------------------------------- | :-------------------------------- | | Effective tax rate | (4.7)% | 2.5% | - The effective income tax rate for Q1 2024 was **(4.7)%**, a decrease from **2.5%** in Q1 2023, primarily due to the mix of earnings and the impact of valuation allowances[115](index=115&type=chunk) [Note 12. Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows](index=26&type=section&id=Note%2012.%20Supplemental%20Disclosures%20to%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This note offers additional details on cash flow activities, including non-cash transactions Supplemental Cash Flow Information (in millions) | Supplemental Cash Flow Information (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------------------- | :-------------------------------- | :-------------------------------- | | Cash Paid For: | | | | Cash paid for interest | $14.8 | $13.9 | | Cash paid for income taxes | $2.8 | $2.8 | | Non-Cash Investing and Financing Activities: | | | | Property, plant, and equipment purchases in accrued expense and other liabilities | $1.9 | $0.2 | | Property, plant, and equipment purchases in accounts payable | $1.3 | $1.6 | Cash, Cash Equivalents, and Restricted Cash (in millions) | Cash, Cash Equivalents, and Restricted Cash (in millions) | March 31, 2024 | December 31, 2023 | | :-------------------------------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $120.2 | $128.8 | | Restricted cash—current | $0.4 | $0.6 | | Restricted cash—non-current | $1.1 | $1.1 | | Total | $121.7 | $130.5 | [Note 13. Stock-Based Compensation](index=26&type=section&id=Note%2013.%20Stock-Based%20Compensation) This note describes the company's stock-based compensation plans and related expenses - The 2021 Omnibus Incentive Plan reserved **38,492,328 shares** of Class A common stock for awards as of January 1, 2024[120](index=120&type=chunk) - In Q1 2024, the Company granted **548,939 RSUs** and **453,560 PSUs** to employees, with PSUs subject to service, performance (adjusted EBITDA, adjusted cash flow), and market (relative TSR) vesting conditions[121](index=121&type=chunk) Stock-Based Compensation Expense (in millions) | Stock-Based Compensation Expense (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------------- | :-------------------------------- | :-------------------------------- | | Total stock-based compensation expense | $3.6 | $5.6 | | Profits Interests expense | $0.9 | $4.0 | [Note 14. Related-Party Transactions](index=28&type=section&id=Note%2014.%20Related-Party%20Transactions) This note discloses transactions and relationships with related parties - Founder Shares (**18,750,000 Class B common stock**) converted to Class A common stock at Business Combination closing, subject to vesting conditions based on Class A common stock price thresholds (**$12, $14, $16**) before October 20, 2026[130](index=130&type=chunk) - The Sponsor purchased **8,500,000 Private Placement Warrants** at **$2.00** each, exercisable for Class A common stock at **$11.50** per share, and are accounted for as derivative liabilities[131](index=131&type=chunk)[132](index=132&type=chunk) - Profits Interests (**8,100,000**) were issued to certain individuals, subject to service and performance vesting conditions, including Class A common stock price thresholds[133](index=133&type=chunk) - Expenses related to secondary offerings by Charterhouse Capital Partners (former majority stockholder) decreased from **$0.6 million** in Q1 2023 to **$0** in Q1 2024, as CCP no longer owns shares[135](index=135&type=chunk) [Note 15. Segment Information](index=29&type=section&id=Note%2015.%20Segment%20Information) This note provides financial data broken down by the company's operating segments and geographic regions - The Industrial segment was renamed 'Technologies' during Q2 2023[136](index=136&type=chunk) Segment Operating Results (in millions) | Segment Operating Results (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Revenues: | | | | Medical | $66.8 | $66.4 | | Technologies | $125.8 | $115.7 | | Consolidated revenues | $192.6 | $182.1 | | Segment Income (Loss) from Operations: | | | | Medical | $1.4 | $0.7 | | Technologies | $12.6 | $5.5 | | Total segment income from operations | $14.0 | $6.2 | | Corporate and other | $(18.9) | $(19.8) | | Consolidated loss from operations | $(4.9) | $(13.6) | Revenues by Geographic Region (in millions) | Revenues by Geographic Region (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | North America | $119.0 | $115.9 | | Europe | $67.8 | $58.8 | | Asia Pacific | $5.8 | $7.4 | | Total revenues | $192.6 | $182.1 | Revenues by Timing of Recognition (in millions) | Revenues by Timing of Recognition (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | | Point in time | $126.9 | $118.3 | | Over time | $65.7 | $63.8 | | Total revenues | $192.6 | $182.1 | [Note 16. Fair Value Measurements](index=30&type=section&id=Note%2016.%20Fair%20Value%20Measurements) This note details the fair value measurements of financial instruments Fair Value Measurements (in millions) | Fair Value Measurements (in millions) | March 31, 2024 (Level 1) | March 31, 2024 (Level 2) | December 31, 2023 (Level 1) | December 31, 2023 (Level 2) | | :------------------------------------ | :----------------------- | :----------------------- | :-------------------------- | :-------------------------- | | Public warrants | $42.0 | — | $38.1 | — | | Private placement warrants | — | $19.0 | — | $17.3 | | Cross-currency rate swaps | — | $17.1 | — | $23.3 | - The fair value of Public Warrants is measured based on listed market price (Level 1), while Private Placement Warrants are valued equivalently to Public Warrants (Level 2)[144](index=144&type=chunk)[145](index=145&type=chunk) - An unrealized loss of **$5.7 million** was recognized in Q1 2024 due to an increase in the fair value of warrant liabilities, a reduction from the **$13.4 million** loss in Q1 2023[146](index=146&type=chunk) [Note 17. Derivatives and Hedging](index=32&type=section&id=Note%2017.%20Derivatives%20and%20Hedging) This note describes the company's use of derivative instruments for risk management - Mirion uses cross-currency rate swaps (CCRS) to manage currency risks for EUR-denominated operations and an interest rate swap to mitigate interest rate fluctuations on Credit Facilities[147](index=147&type=chunk) Derivative Instruments (Fair Value in millions) | Derivative Instruments (Fair Value in millions) | March 31, 2024 | December 31, 2023 | | :---------------------------------------------- | :------------- | :---------------- | | Assets: | | | | Accrued Interest Receivable on Cross-Currency Rate Swaps | $0.1 | $0.1 | | Interest Rate Swap | $0.9 | $0.1 | | Total assets | $1.0 | $0.2 | | Liabilities: | | | | Cross-Currency Rate Swaps (current) | $7.7 | $10.7 | | Cross-Currency Rate Swaps (non-current) | $9.5 | $12.6 | | Total liabilities | $17.2 | $23.3 | Net Investment Hedges (Notional Amount in millions) | Net Investment Hedges (Notional Amount in millions) | March 31, 2024 | December 31, 2023 | Gain (Loss) Recognized in AOCL (Q1 2024) | Gain (Loss) Recognized in AOCL (Q1 2023) | | :-------------------------------------------------- | :------------- | :---------------- | :--------------------------------------- | :--------------------------------------- | | Cross-currency rate swaps | €238.8 | €238.8 | $6.2 | $(2.9) | [Note 18. Loss Per Share](index=33&type=section&id=Note%2018.%20Loss%20Per%20Share) This note presents the calculation of basic and diluted loss per share Loss Per Share (in millions, except per share amounts) | Loss Per Share (in millions, except per share amounts) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss attributable to Mirion Technologies, Inc. shareholders | $(25.8) | $(41.9) | | Weighted average common shares outstanding – basic and diluted | 199.729 | 187.701 | | Net loss per common share – basic and diluted | $(0.13) | $(0.22) | - Potentially dilutive common shares (warrants, founder shares, stock-based awards) were excluded from diluted EPS calculations for Q1 2024 and Q1 2023 because their inclusion would be anti-dilutive due to net losses[154](index=154&type=chunk)[160](index=160&type=chunk)[162](index=162&type=chunk) - Class B common stock has voting rights but no economic interest and is excluded from EPS calculations[159](index=159&type=chunk) [Note 19. Restructuring](index=34&type=section&id=Note%2019.%20Restructuring) This note provides information on restructuring activities and associated expenses - No restructuring expenses were incurred for the three months ended March 31, 2024, compared to **$1.4 million** in Q1 2023[165](index=165&type=chunk) Restructuring Expenses (in millions) | Restructuring Expenses (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Medical | $— | $0.3 | | Technologies | $— | $0.1 | | Corporate and other | $— | $1.0 | | Total | $— | $1.4 | [Note 20. Noncontrolling Interests](index=35&type=section&id=Note%2020.%20Noncontrolling%20Interests) This note explains the nature and amount of noncontrolling interests in the company - Noncontrolling interests represent the portion of IntermediateCo Class B shares not attributable to Mirion Technologies, Inc[167](index=167&type=chunk)[169](index=169&type=chunk) - As of March 31, 2024, noncontrolling interests were **$60.7 million**, representing **7,326,423 shares (3.2%)** of non-voting Class B shares of IntermediateCo, down from **8,560,540 shares (4%)** at the Closing Date[169](index=169&type=chunk)[170](index=170&type=chunk) [Note 21. Accumulated Other Comprehensive Loss](index=36&type=section&id=Note%2021.%20Accumulated%20Other%20Comprehensive%20Loss) This note details the components of accumulated other comprehensive loss Components of AOCL (in millions) | Components of AOCL (in millions) | March 31, 2024 | December 31, 2023 | | :------------------------------- | :------------- | :---------------- | | Cumulative foreign currency translation adjustment, net of tax | $(67.0) | $(52.4) | | Unrealized gain on pension and postretirement benefit plans, net of tax | $2.0 | $2.0 | | Unrealized loss on net investment hedges, net of tax | $(13.1) | $(17.9) | | Unrealized gain on cash flow hedges, net of tax | $0.7 | $0.1 | | Less: cumulative loss attributable to noncontrolling interests | $(3.2) | $(2.9) | | Accumulated other comprehensive loss | $(74.2) | $(65.3) | - Accumulated other comprehensive loss increased by **$8.9 million** from December 31, 2023, to March 31, 2024, primarily due to a higher cumulative foreign currency translation adjustment loss[171](index=171&type=chunk) [Note 22. Subsequent Events](index=36&type=section&id=Note%2022.%20Subsequent%20Events) This note discloses significant events that occurred after the balance sheet date - On April 18, 2024, Mirion announced the redemption of all Public Warrants, effective May 20, 2024, at **$0.10** per warrant if not exercised[172](index=172&type=chunk) - Public Warrant holders can exercise for **$11.50 cash** per warrant or on a 'cashless' basis, receiving **0.220 shares** of Class A Common Stock per warrant[172](index=172&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Mirion's financial condition, operational results, key performance factors, and liquidity [Overview (MD&A)](index=37&type=section&id=Overview%20(MD%26A)) This overview describes Mirion's business and key factors influencing its financial performance - Mirion is a global provider of radiation detection, measurement, analysis, and monitoring products and services for medical, nuclear, and defense markets[175](index=175&type=chunk)[176](index=176&type=chunk) - Key factors affecting performance include international conflicts (Russia-Ukraine, Middle East), inflation and interest rates, tariffs/sanctions, medical end market trends, strategic transactions, environmental objectives, government budgets, nuclear new build projects, research and development, and global risks[178](index=178&type=chunk)[180](index=180&type=chunk) Revenue Contribution by Segment | Revenue Contribution by Segment | Q1 2024 | Q1 2023 | | :------------------------------ | :------ | :------ | | Medical segment | 34.7% | 36.5% | | Technologies segment | 65.3% | 63.5% | Backlog (in millions) | Backlog (in millions) | March 31, 2024 | December 31, 2023 | | :-------------------- | :------------- | :---------------- | | Total backlog | $840.5 | $857.1 | [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures used by management to assess performance - Management uses non-GAAP measures like EBITA, EBITDA, and Adjusted EBITDA to assess performance and make operational decisions[181](index=181&type=chunk)[182](index=182&type=chunk) Non-GAAP Financial Measures (in millions) | Non-GAAP Financial Measures (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(26.5) | $(42.9) | | EBITA | $20.0 | $4.5 | | EBITDA | $27.3 | $12.3 | | Adjusted EBITDA | $39.5 | $36.6 | - Adjusted EBITDA increased by **$2.9 million (7.9%)** year-over-year, reaching **$39.5 million** in Q1 2024[184](index=184&type=chunk) Adjusted EBITDA by Segment (in millions) | Adjusted EBITDA by Segment (in millions) | Medical (Q1 2024) | Technologies (Q1 2024) | Corporate & Other (Q1 2024) | Consolidated (Q1 2024) | | :--------------------------------------- | :---------------- | :--------------------- | :-------------------------- | :----------------------- | | Adjusted EBITDA | $20.5 | $33.1 | $(14.1) | $39.5 | | Adjusted EBITDA by Segment (in millions) | Medical (Q1 2023) | Technologies (Q1 2023) | Corporate & Other (Q1 2023) | Consolidated (Q1 2023) | | :--------------------------------------- | :---------------- | :--------------------- | :-------------------------- | :----------------------- | | Adjusted EBITDA | $20.4 | $28.5 | $(12.3) | $36.6 | [Our Business Segments](index=40&type=section&id=Our%20Business%20Segments) This section describes the company's Medical and Technologies operating segments - The Medical segment provides radiation therapy and personal dosimetry solutions, including quality assurance, monitoring, and nuclear medicine products[189](index=189&type=chunk) - The Technologies segment offers products and services for defense, nuclear energy, laboratories, and industrial markets, including Reactor Safety and Control Systems and Radiological Search, Measurement and Analysis Systems[190](index=190&type=chunk) [Recent Developments](index=40&type=section&id=Recent%20Developments) This section highlights recent events impacting the company's operations and financial position - The Russia-Ukraine conflict continues to impact the Technologies segment, with **$0.7 million** in net contract assets and accounts receivable for Russian customers and **$153.7 million** in remaining performance obligations for Russian-related projects[190](index=190&type=chunk) - Interest rates on the 2021 Credit Agreement term loan increased to **8.36%** as of March 31, 2024, from **7.48%** as of March 31, 2023, due to central bank rate hikes[193](index=193&type=chunk) - The Biodex Rehabilitation business was sold on April 3, 2023, impacting year-over-year comparisons for the Medical segment[194](index=194&type=chunk) - Mirion acquired ec2 Software Solutions LLC and NUMA LLC on November 1, 2023, for **$33 million**, enhancing its Medical segment's software offerings[195](index=195&type=chunk) - The company announced the redemption of all Public Warrants on April 18, 2024, effective May 20, 2024, at **$0.10** per warrant if unexercised[196](index=196&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) This section analyzes the company's revenues, expenses, and net loss for the reporting periods Results of Operations (in millions) | Results of Operations (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Revenues | $192.6 | $182.1 | | Cost of revenues | $105.5 | $103.0 | | Gross profit | $87.1 | $79.1 | | Selling, general and administrative expenses | $84.1 | $85.1 | | Research and development | $7.9 | $7.6 | | Loss from operations | $(4.9) | $(13.6) | | Net loss | $(26.5) | $(42.9) | - Total revenues increased by **$10.5 million (5.8%)** year-over-year, driven by price increases, organic volume growth, and the ec2 acquisition in Medical, and price increases, organic volume growth, and better product mix in Technologies[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - Net loss decreased by **$16.4 million**, primarily due to increased revenues in the Technologies segment, lower net interest expense, decreased amortization, reduced stock-based compensation, and a smaller increase in warrant liabilities' fair value[200](index=200&type=chunk) - Selling, general and administrative (SG&A) expenses decreased by **$1.0 million**, mainly due to a net decrease in stock-based compensation expense, partially offset by inflation and acquisition-related costs[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) - Interest expense, net, decreased by **$1.1 million** due to a **$125.0 million** early debt repayment and interest from derivatives, partially offset by higher interest rates[212](index=212&type=chunk) - The change in fair value of warrant liabilities resulted in a **$5.7 million** unrealized loss in Q1 2024, a **$7.7 million** reduction in loss compared to Q1 2023[214](index=214&type=chunk) [Business segments (MD&A detail)](index=44&type=section&id=Business%20segments%20(MD%26A%20detail)) This section provides a detailed analysis of the financial performance of each business segment Medical Segment Performance (in millions) | Medical Segment Performance (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Revenues | $66.8 | $66.4 | | Income from operations | $1.4 | $0.7 | | Income from operations as a % of revenues | 2.1% | 1.1% | - Medical segment revenues increased by **$0.4 million**, driven by price increases, organic growth, and the ec2 acquisition, partially offset by the disposal of the Rehab business and ERP system implementation delays[218](index=218&type=chunk) Technologies Segment Performance (in millions) | Technologies Segment Performance (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------------- | :-------------------------------- | :-------------------------------- | | Revenues | $125.8 | $115.7 | | Income from operations | $12.6 | $5.5 | | Income from operations as a % of revenues | 10.0% | 4.8% | - Technologies segment revenues increased by **$10.1 million**, primarily due to price increases, organic growth, and a better product mix, partially offset by project execution delays[219](index=219&type=chunk) [Corporate and other (MD&A detail)](index=45&type=section&id=Corporate%20and%20other%20(MD%26A%20detail)) This section details corporate-level expenses and other unallocated costs Corporate and Other Costs (in millions) | Corporate and Other Costs (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Corporate and other costs | $18.9 | $19.8 | - Corporate and other costs decreased by **$0.9 million**, mainly due to a net decrease in stock-based compensation expense, partially offset by increased compensation costs[222](index=222&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, debt, and ability to meet financial obligations - Mirion believes net cash from operating activities, augmented by long-term debt, will provide adequate liquidity for the next 12 months[224](index=224&type=chunk) Cash and Cash Equivalents (in millions) | Cash and Cash Equivalents (in millions) | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $120.2 | $128.8 | | Non-U.S. cash | $95.4 | $105.4 | - The 2021 Credit Agreement provides for a **$90.0 million** revolving facility, with **$73.6 million** available as of March 31, 2024[94](index=94&type=chunk)[228](index=228&type=chunk) Cash Flows (in millions) | Cash Flows (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------- | :-------------------------------- | :-------------------------------- | | Operating activities | $6.0 | $(2.7) | | Investing activities | $(12.9) | $(7.5) | | Financing activities | $0.2 | $24.6 | - Net cash provided by operating activities increased by **$8.7 million**, primarily due to improvements in changes in operating assets and liabilities[233](index=233&type=chunk) - Net cash used in investing activities increased by **$5.4 million**, mainly due to higher purchases of property, plant, equipment, and badges[234](index=234&type=chunk) - Net cash provided by financing activities decreased by **$24.4 million**, primarily due to **$150.0 million** gross proceeds from a direct investment in the prior year, partially offset by **$125.0 million** in debt repayments[235](index=235&type=chunk) [Critical Accounting Policies and Estimates](index=47&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines the significant accounting policies and estimates requiring management judgment - No material changes occurred in critical accounting policies and estimates during the three months ended March 31, 2024, from those described in the 2023 Annual Report on Form 10-K[237](index=237&type=chunk) [Recent Accounting Pronouncements (MD&A)](index=48&type=section&id=Recent%20Accounting%20Pronouncements%20(MD%26A)) This section refers to disclosures on recently adopted or issued accounting pronouncements - Refer to Note 1 for information on recent accounting pronouncements[238](index=238&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=48&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section reports no material changes to market risk disclosures from the prior annual report - No material changes to market risk disclosures for the three months ended March 31, 2024, compared to the Annual Report on Form 10-K for 2023[239](index=239&type=chunk) [ITEM 4. Controls and Procedures](index=48&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management confirms effective disclosure controls and procedures, with no material internal control changes - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024[241](index=241&type=chunk) - No material changes occurred in internal control over financial reporting during the quarter ended March 31, 2024[243](index=243&type=chunk) [PART II - OTHER INFORMATION](index=49&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part includes legal proceedings, risk factors, equity sales, and other miscellaneous disclosures [ITEM 1. Legal Proceedings](index=49&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 10 for legal proceedings, noting no material expected impact - Refer to Note 10 for details on legal proceedings and claims[246](index=246&type=chunk) - The disposition of pending or threatened legal actions is not expected to materially affect the company's business, results of operations, or financial condition, but outcomes are uncertain[246](index=246&type=chunk) [ITEM 1A. Risk Factors](index=49&type=section&id=ITEM%201A.%20Risk%20Factors) This section reports no material changes to previously disclosed risk factors or new undisclosed risks - No material changes to risk factors previously disclosed in the 2023 Annual Report on Form 10-K[248](index=248&type=chunk) - No previously undisclosed risks that could materially adversely affect the business and financial results have been identified[248](index=248&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable, indicating no unregistered equity sales or use of proceeds for the period - This item is not applicable for the reporting period[249](index=249&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=49&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This item reports no defaults upon senior securities during the reporting period - No defaults upon senior securities occurred during the reporting period[251](index=251&type=chunk) [ITEM 4. Mine Safety Disclosures](index=49&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable, indicating no mine safety disclosures are required for the period - This item is not applicable for the reporting period[253](index=253&type=chunk) [ITEM 5. Other Information](index=49&type=section&id=ITEM%205.%20Other%20Information) This section discloses officers' adoption of Rule 10b5-1 trading arrangements for company securities Officer Rule 10b5-1 Trading Arrangements | Name and Title | Action | Applicable Date | Duration of Trading Arrangement | Rule 10b5-1 Trading Arrangement? (Y/N) | Aggregate Number of Securities Subject to Trading Arrangement | | :--------------- | :----- | :-------------- | :------------------------------ | :------------------------------------- | :---------------------------------------------------------- | | Thomas D. Logan, Chief Executive Officer | Adopt | February 27, 2024 | May 25, 2024 - April 30, 2025 | Y | 90,000 | | Brian Schopfer, Chief Financial Officer | Adopt | February 26, 2024 | June 11, 2024 - June 11, 2025 | Y | 182,195 | | Emmanuelle Lee, Chief Legal Officer, Chief Compliance Officer and Corporate Secretary | Adopt | March 7, 2024 | June 6, 2024 - February 28, 2025 | Y | 50,000 | - Brian Schopfer intends to terminate his Rule 10b5-1 trading plan when the Company trading window opens during the second quarter of 2024[258](index=258&type=chunk) [ITEM 6. Exhibits](index=50&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed or incorporated by reference in the Quarterly Report on Form 10-Q - The exhibit index includes organizational documents, employment agreements, stock unit forms, and certifications[264](index=264&type=chunk) - Certifications furnished in Exhibits 32.1 and 32.2 are deemed to accompany the report but are not 'filed' for Section 18 purposes of the Securities Exchange Act of 1934[265](index=265&type=chunk) [SIGNATURES](index=52&type=section&id=SIGNATURES) This section contains duly authorized signatures of Mirion Technologies' principal executive and financial officers Authorized Signatures | Name | Title | Date | | :-------------- | :-------------------------- | :--------- | | Thomas D. Logan | Chief Executive Officer and Director | May 1, 2024 | | Brian Schopfer | Chief Financial Officer | May 1, 2024 | | Christopher Moore | Chief Accounting Officer | May 1, 2024 |

[Mirion First Quarter 2024 Financial Results](index=1&type=section&id=Mirion%20First%20Quarter%202024%20Financial%20Results) [Financial Highlights and CEO Commentary](index=1&type=section&id=Financial%20Highlights%20and%20CEO%20Commentary) The company reported a solid start to 2024 with a 5.8% revenue increase to $192.6 million and improved profitability Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $192.6M | $182.1M | +5.8% | | Net Loss | ($26.5M) | ($42.9M) | Improved | | Adjusted EBITDA | $39.5M | $36.6M | +7.9% | | Adjusted EBITDA Margin | 20.5% | 20.1% | +40 bps | | GAAP Net Loss per Share | ($0.13) | ($0.22) | Improved | | Adjusted EPS | $0.06 | $0.06 | Flat | - CEO Thomas Logan highlighted a solid start to the year, with revenue growth in line with expectations, led by the **Technologies segment**[3](index=3&type=chunk) - Management expressed excitement about the **positive macro trends** developing in the nuclear power and cancer care end markets[3](index=3&type=chunk) [2024 Financial Outlook](index=1&type=section&id=2024%20Financial%20Outlook) Mirion reaffirmed its full-year 2024 guidance, projecting revenue growth of 5% to 7% and continued operational momentum - The company **reaffirmed its full-year 2024 guidance** for revenue, adjusted EBITDA, adjusted EPS, and adjusted free cash flow[4](index=4&type=chunk)[5](index=5&type=chunk) Full-Year 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue Growth | 5% - 7% | | Organic Revenue Growth | 4% - 6% | | Adjusted EBITDA | $193M - $203M | | Adjusted EPS | $0.37 - $0.42 | | Adjusted Free Cash Flow | $65M - $85M | 2024 Modeling Assumptions | Assumption | Value | | :--- | :--- | | Depreciation | ~$33M | | Net Interest Expense | ~$55M | | Effective Tax Rate | 26% - 28% | | Capital Expenditures | ~$40M | | Cash Taxes | ~$35M | | Stock-based Compensation | ~$11M | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The financial statements detail increased quarterly revenue and a significant reduction in net loss compared to the prior year [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets stood at $2.65 billion as of March 31, 2024, with a corresponding decrease in total liabilities Balance Sheet Summary (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $120.2 | $128.8 | | Total current assets | $514.6 | $538.6 | | Total assets | $2,648.7 | $2,718.5 | | Total current liabilities | $234.6 | $265.7 | | Total liabilities | $1,130.8 | $1,168.5 | | Total stockholders' equity | $1,517.9 | $1,550.0 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company generated $192.6 million in Q1 2024 revenue and significantly narrowed its operating and net losses year-over-year Statement of Operations Summary (in millions) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $192.6 | $182.1 | | Gross profit | $87.1 | $79.1 | | Loss from operations | ($4.9) | ($13.6) | | Net loss attributable to Mirion | ($25.8) | ($41.9) | | Net loss per share (basic & diluted) | ($0.13) | ($0.22) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities turned positive to $6.0 million in Q1 2024, a significant improvement from the prior year Cash Flow Summary (in millions) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $6.0 | ($2.7) | | Net cash used in investing activities | ($12.9) | ($7.5) | | Net cash provided by financing activities | $0.2 | $24.6 | | Net (decrease) increase in cash | ($8.8) | $15.1 | | Cash, cash equivalents, and restricted cash at end of period | $121.7 | $90.1 | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP measures, showing an increase in Adjusted EBITDA and flat year-over-year Adjusted EPS - The company uses non-GAAP measures like **Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS** to evaluate ongoing operations and for internal planning and forecasting[24](index=24&type=chunk) [Reconciliation of Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Adjusted EBITDA increased to $39.5 million in Q1 2024, with the margin expanding to 20.5% Adjusted EBITDA Reconciliation (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Income from operations | ($4.9) | ($13.6) | | Amortization | $31.5 | $33.6 | | Depreciation | $7.3 | $7.8 | | Stock-based compensation | $3.6 | $5.6 | | Non-operating expenses | $2.1 | $3.1 | | **Adjusted EBITDA** | **$39.5** | **$36.6** | | **Adjusted EBITDA margin** | **20.5%** | **20.1%** | [Reconciliation of Adjusted Earnings per Share](index=10&type=section&id=Reconciliation%20of%20Adjusted%20Earnings%20per%20Share) Adjusted EPS remained flat at $0.06 year-over-year, with Adjusted Net Income rising to $12.7 million Adjusted EPS Reconciliation (in millions, except per share) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP net loss | ($26.5) | ($42.9) | | Amortization of acquired intangibles | $31.5 | $33.6 | | Change in fair value of warrant liabilities | $5.7 | $13.4 | | Stock-based compensation | $3.6 | $5.6 | | **Adjusted Net Income** | **$12.7** | **$10.6** | | Adjusted weighted average common shares | 200.487 | 187.949 | | **Adjusted earnings per share** | **$0.06** | **$0.06** | [Share Capital Information](index=8&type=section&id=Share%20Capital%20Information) As of March 31, 2024, the company had approximately 200 million shares of Class A common stock outstanding - As of March 31, 2024, there were **199,985,333 shares of Class A common stock** and 7,326,423 shares of Class B common stock outstanding[23](index=23&type=chunk) - The company's **18,749,779 publicly-traded warrants were called for redemption** on April 18, 2024[23](index=23&type=chunk) [Important Disclosures](index=2&type=section&id=Important%20Disclosures) This section provides details on the earnings conference call, forward-looking statements, and the use of non-GAAP measures - A conference call to discuss the financial results was scheduled for **May 1, 2024**, at 9:00 a.m. ET[8](index=8&type=chunk) - The press release includes **forward-looking statements** that are subject to significant risks and uncertainties, and readers are cautioned not to place undue reliance on them[11](index=11&type=chunk)[12](index=12&type=chunk) - The company presents **non-GAAP financial information** as a supplement to GAAP results to provide additional insight into financial and business trends[13](index=13&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 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: 001-39352 Mirion Technologies, Inc. (Exact name of registrant as specified in its charter) (I.R.S. Employer ...