Embecta (EMBC) - 2025 Q1 - Quarterly Results

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