Revvity(RVTY) - 2025 Q3 - Quarterly Results

Financial & Operational Highlights Q3 2024 Overall Performance Revvity returned to growth in Q3 2024, reporting increased revenue and significantly improved profitability, driven by strong margin performance and cash flow Q3 2024 Financial Performance | Financial Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $684M | $671M | +2% | | Organic Revenue Growth | 2% | N/A | N/A | | GAAP EPS | $0.77 | $0.08 | +863% | | Adjusted EPS (Continuing Ops) | $1.28 | $1.18 | +8.5% | | GAAP Operating Margin (Continuing Ops) | 14.3% | 10.3% | +400 bps | | Adjusted Operating Margin | 28.3% | 27.5% | +80 bps | - The company achieved positive revenue growth, strong margins, and excellent cash flow during the third quarter[5] Segment Performance The Diagnostics segment drove growth in Q3 2024 with increased revenue and expanded margins, while the Life Sciences segment experienced a revenue decline and margin contraction Q3 2024 Segment Performance Overview | Segment | Q3 2024 Revenue | YoY Change (Reported) | YoY Change (Organic) | Q3 2024 Adjusted Op. Margin | | :--- | :--- | :--- | :--- | :--- | | Life Sciences | $301M | -2% | -3% | 34.2% | | Diagnostics | $383M | +6% | +5% | 26.5% | - The Diagnostics segment's adjusted operating income grew from $82 million to $101 million YoY, with its margin expanding from 22.5% to 26.5%[9] - The Life Sciences segment's adjusted operating income decreased from $114 million to $103 million YoY, with its margin contracting from 37.1% to 34.2%[8] Full Year 2024 Guidance The company updated its full-year 2024 guidance, projecting revenue between $2.75 billion and $2.77 billion with modest organic growth, while raising its adjusted EPS guidance Full Year 2024 Financial Guidance | Guidance Metric | Full Year 2024 Range | | :--- | :--- | | Revenue | $2.75B - $2.77B | | Organic Growth | 0% - 1% | | Adjusted EPS | $4.83 - $4.87 | Capital Allocation & Corporate Updates Revvity's Board of Directors authorized a new $1 billion share repurchase program and announced an upcoming Investor Day in November 2024 - A new two-year, $1 billion share repurchase program has been authorized by the Board of Directors[6] - The company will host an Investor Day on Thursday, November 21, 2024[7] Financial Statements Consolidated Income Statement Revvity's Q3 2024 consolidated income statement shows increased revenue and a substantial rise in operating income, leading to a significant improvement in net income compared to the prior year Condensed Consolidated Income Statements | (In thousands) | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | | :--- | :--- | :--- | | Revenue | $684,049 | $670,739 | | Operating income from continuing operations | $98,151 | $69,228 | | Income from continuing operations | $93,386 | $32,469 | | Net income | $94,367 | $9,497 | | Diluted EPS from continuing operations | $0.76 | $0.26 | | Diluted EPS (Net income) | $0.77 | $0.08 | Consolidated Balance Sheet As of September 29, 2024, the company's balance sheet reflects a decrease in total assets and liabilities, primarily driven by reduced debt, while total stockholders' equity slightly increased Condensed Consolidated Balance Sheets | (In thousands) | September 29, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets | $2,448,406 | $3,001,091 | | Total assets | $12,769,737 | $13,564,665 | | Total current liabilities | $687,940 | $1,450,463 | | Total liabilities | $4,848,036 | $5,691,926 | | Total stockholders' equity | $7,921,701 | $7,872,739 | Consolidated Statement of Cash Flows For the nine months ended September 29, 2024, the company generated significant cash from operating and investing activities, while financing activities primarily involved debt payments and common stock repurchases Consolidated Statements of Cash Flows | (In thousands) | Nine Months Ended Sep 29, 2024 | | :--- | :--- | | Net cash provided by operating activities | $454,069 | | Net cash provided by investing activities | $793,491 | | Net cash used in financing activities | ($935,245) | | Net increase in cash | $316,435 | Reconciliation of GAAP to Non-GAAP Measures Reconciliation of Key Metrics The company provides detailed reconciliations for its non-GAAP metrics, demonstrating how GAAP EPS and reported revenue growth are adjusted to reflect underlying operational performance Reconciliation of Adjusted EPS | Reconciliation (per share) | Q3 2024 | | :--- | :--- | | GAAP EPS from continuing operations | $0.76 | | Amortization of intangible assets | $0.73 | | Tax on above items | ($0.18) | | Other adjustments (net) | ($0.03) | | Adjusted EPS from continuing operations | $1.28 | Organic Revenue Growth Reconciliation | Organic Revenue Growth Reconciliation | Q3 2024 | | :--- | :--- | | Reported revenue growth | 2% | | Less: effect of foreign exchange rates | 0% | | Less: effect of acquisitions/divestitures | 0% | | Organic revenue growth | 2% | Explanation of Non-GAAP Financial Measures Management uses non-GAAP financial measures to supplement GAAP results, providing a clearer understanding of ongoing operational performance by excluding variable or non-recurring items - Non-GAAP measures are presented to help investors understand short-term and long-term financial and operational trends by adjusting for certain non-cash, non-recurring, or other items[29] - Key non-GAAP metrics include "organic revenue" (excluding currency changes and recent M&A), "adjusted operating income," and "adjusted EPS"[31][36][39] - Common adjustments include amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, and restructuring charges[40][43][44]