Mirion Technologies(US:MIR)2025-04-30 20:21PART I - FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) The company's Q1 2025 financial statements reflect improved performance with increased revenues, a shift to net income, and higher operating cash flow compared to the prior year Consolidated Statement of Operations Highlights (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $202.0 | $192.6 | +4.9% | | Gross Profit | $96.1 | $87.1 | +10.3% | | Income (Loss) from Operations | $8.7 | $(4.9) | N/A | | Net Income (Loss) | $0.4 | $(26.5) | N/A | | Diluted EPS | $0.00 | $(0.13) | N/A | Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $185.8 | $175.2 | | Total Current Assets | $590.2 | $594.7 | | Goodwill | $1,439.6 | $1,426.2 | | Total Assets | $2,625.6 | $2,636.0 | | Total Liabilities | $1,068.9 | $1,076.9 | | Total Stockholders' Equity | $1,556.7 | $1,559.1 | Consolidated Statement of Cash Flows Highlights (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $35.6 | $6.0 | | Net cash used in investing activities | $(7.6) | $(12.9) | | Net cash (used in) provided by financing activities | $(21.2) | $0.2 | Notes to Condensed Consolidated Financial Statements (Unaudited) These notes provide detailed insights into the company's accounting policies, segment performance, debt structure, and other financial items, including a significant remaining performance obligation and the resolution of specific litigation - The company's remaining performance obligations for all open customer contracts stood at approximately $813.5 million as of March 31, 2025, with about 47% expected to be recognized as revenue during 202544 - The 'Technologies' segment was renamed to 'Nuclear & Safety' during the year ended December 31, 2024120 - In November 2024, the company reached an agreement to modify a contract with a Russian customer, leading to the rescission of a $21 million claim against the company, and a separate settlement resulted in an agreement to refund €4.4 million103104 Segment Revenue and Operating Income (Q1 2025 vs Q1 2024) | Segment | Revenue Q1 2025 (in millions) | Revenue Q1 2024 (in millions) | Operating Income Q1 2025 (in millions) | Operating Income Q1 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Medical | $68.6 | $66.8 | $6.7 | $1.4 | | Nuclear & Safety | $133.4 | $125.8 | $21.7 | $12.6 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes revenue growth and the shift to net income to pricing and volume increases, particularly in Nuclear & Safety, while highlighting strong liquidity and ongoing geopolitical and trade risks Reconciliation of Net Income (Loss) to Adjusted EBITDA | Metric (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $0.4 | $(26.5) | | Interest expense, net | $10.6 | $13.8 | | Income tax expense | $0.2 | $1.2 | | Amortization | $25.4 | $31.5 | | Depreciation | $8.3 | $7.3 | | EBITDA | $44.9 | $27.3 | | Stock-based compensation expense | $3.4 | $3.6 | | Increase in fair value of warrant liabilities | — | $5.7 | | Foreign currency (gain) loss, net | $(2.8) | $0.8 | | Non-operating expenses | $1.2 | $2.1 | | Adjusted EBITDA | $46.7 | $39.5 | - The Medical segment revenue increase was driven by recovery in the Nuclear Medicine (NucMed) division and domestic sales, partially offset by an ERP implementation delay in the RTQA business and the exit from the lasers product line189203 - The Nuclear & Safety segment revenue increase was primarily due to organic volume growth of $6.9 million and pricing increases of $2.2 million190205 - The company amended its revolving line of credit on March 21, 2025, increasing commitments from $90.0 million to $175.0 million and extending the maturity date to March 21, 203083219 Item 3. Quantitative and Qualitative Disclosures about Market Risk The company reports no material changes to its quantitative and qualitative disclosures about market risk for the three months ended March 31, 2025, compared to the disclosures in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the disclosures regarding market risk since the last Annual Report on Form 10-K233 Item 4. Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025235 - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting237 PART II - OTHER INFORMATION Item 1. Legal Proceedings The company is subject to various legal actions arising in the ordinary course of business, with management not expecting a material effect on its business or financial condition from their resolution - The company states that the resolution of current legal proceedings is not expected to have a material effect on its business or financial condition239 Item 1A. Risk Factors The company reiterates its risk factors, emphasizing the potential impact of global economic conditions, geopolitical tensions, tariffs, and trade barriers on its operations and financial results - The company highlights significant risks from worldwide economic conditions, international trade disputes, tariffs, and geopolitical tensions, which could increase costs and adversely affect business242 - Revenue generated outside of North America accounted for approximately 37% of net sales for the year ended December 31, 2024, making international sales a material part of the business and subject to global risks243 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company details its share repurchase activity under a program authorized in December 2024, including the repurchase of 1,160,000 shares at an average price of $16.00 per share during Q1 2025 Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | Jan 1 - 31, 2025 | — | $— | $— | | Feb 1 - 28, 2025 | 1,160,000 | $16.00 | $81.4 | | Mar 1 - 31, 2025 | — | $— | $— | Item 5. Other Information The company reports that on February 19, 2025, Brian Schopfer, the Chief Financial Officer, adopted a Rule 10b5-1 trading plan for the potential sale of up to 150,000 shares of Class B common stock - Brian Schopfer, Chief Financial Officer, adopted a Rule 10b5-1 trading plan on February 19, 2025, for the potential sale of up to 150,000 shares of Class B common stock, effective from May 21, 2025, to May 20, 2026255256