Mirion Technologies(MIR) - 2024 Q1 - Quarterly Results

Mirion First Quarter 2024 Financial Results Financial Highlights and CEO Commentary 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] - Management expressed excitement about the positive macro trends developing in the nuclear power and cancer care end markets[3] 2024 Financial Outlook 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][5] 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 The financial statements detail increased quarterly revenue and a significant reduction in net loss compared to the prior year Condensed Consolidated Balance Sheets 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 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 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 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] Reconciliation of Adjusted EBITDA 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 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 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] - The company's 18,749,779 publicly-traded warrants were called for redemption on April 18, 2024[23] Important Disclosures 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] - 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][12] - The company presents non-GAAP financial information as a supplement to GAAP results to provide additional insight into financial and business trends[13]