Catalent(CTLT) - 2024 Q4 - Annual Results

Financial Performance - Q4'24 net revenue reached $1.30 billion, a 23$4.38 billion, reflecting a 3% increase as reported, or 2% in constant currency, compared to fiscal 2023[1] - Q4'24 Adjusted EBITDA was $305 million, a 150$703 million, a 1% increase as reported, or 0% in constant currency, compared to FY'23[1] - Non-COVID revenue grew nearly 30% in Q4'24 compared to Q4'23[2] - Net revenue for the three months ended June 2024 was $1,301 million, a 24$1,055 million in the prior year[26] - Net revenue for the fiscal year ended June 30, 2024, was $4,381 million, representing a 2$4,263 million in the previous year[28] - Adjusted EBITDA for the quarter ended June 30, 2024, was $305 million, an increase from$122 million in the same quarter of the previous year[31] - The Adjusted EBITDA for the fiscal year ended June 30, 2024, was $703 million, an increase from$622 million in the previous year[40] Segment Performance - The Biologics segment reported Q4'24 net revenue of $605 million, a 51$400 million in Q4'23[5] - The Pharma and Consumer Health segment achieved Q4'24 net revenue of $697 million, a 7$655 million in Q4'23[5] - The Biologics Segment EBITDA for the three months ended June 30, 2024, was $136 million, a significant increase from a loss of$23 million in the prior year[39] Earnings and Losses - Operating earnings for the period were $106 million, a significant turnaround from an operating loss of$126 million in the same period last year, marking a 186% improvement[26] - Net earnings for the three months ended June 2024 were $23 million, compared to a net loss of$110 million in the prior year, reflecting a 120% increase[26] - The company reported a net loss of $1,043 million, compared to a net loss of$256 million in the previous year[28] - Operating loss for the fiscal year was $749 million, significantly higher than the previous year's loss of$163 million[28] - For the three months ended June 30, 2024, Catalent reported an Adjusted Net Income (ANI) of $1 million, compared to a loss of$24 million in the same period last year[33] - The company reported a net loss of $110 million for the three months ended June 30, 2023, compared to a net income of$23 million for the same period in 2024[39] Cash Flow and Debt - The company generated positive free cash flow exceeding $100 million in the last three months of fiscal 2024[2] - Catalent's total debt as of June 30, 2024, was$4.91 billion, with a net leverage ratio of 6.6x[10] - Total Secured Debt as of June 30, 2024, was $1,980 million, down from$1,907 million as of June 30, 2023[40] - The company’s total net debt decreased to $4,616 million as of June 30, 2024, compared to$4,569 million a year earlier[40] - Cash and cash equivalents at the end of the period were $289 million, slightly up from$280 million at the beginning of the period[30] - Interest expense increased to $254 million, up 36$186 million year-over-year[28] Mergers and Acquisitions - Catalent announced a merger agreement with Novo Holdings, valuing the company at $16.5 billion, expected to close by the end of calendar year 2024[11] - Catalent is currently navigating risks associated with a pending merger with an affiliate of Novo Holdings, which may impact future operations and financial results[23] Other Financial Metrics - Adjusted Net Income is used to provide a clearer picture of financial performance, excluding non-core items, although it is not defined under U.S. GAAP[17] - Catalent's Adjusted EBITDA is a key metric for covenant compliance in its credit agreement, although it is not directly comparable to U.S. GAAP measures[16] - The company emphasizes the importance of constant currency results to better understand period-to-period performance, excluding foreign exchange impacts[20] - The company reported a weighted average diluted shares outstanding of 183 million for the period[26] - Earnings per share for the diluted shares was$0.13, compared to a loss of $0.59 in the prior year[26] - Gross margin improved to$384 million, representing a 79% increase compared to $215 million in the previous year[26] - Gross margin decreased to$953 million, down 9% from $1,040 million year-over-year[28] - The company incurred goodwill impairment charges of$687 million during the fiscal year[28] - The company incurred goodwill impairment charges of $689 million during the three months ended September 30, 2023, primarily related to its Biomodalities and Consumer Health reporting units[34] - The company’s first lien debt to Adjusted EBITDA ratio improved to 3.0x as of June 30, 2024, compared to 2.9x in the previous year[40]