- Total revenue increased 3% as reported and 8% in constant currency to $455.8 million from second quarter 2014
- Adjusted EBITDA increased 21% to $112.9 million from second quarter 2014
- Adjusted net income of $0.44 per diluted share, compared to adjusted net income of $0.37 per diluted share in second quarter 2014
- Acquired Micron Technologies, a leading global provider of particle size engineering technologies
- Acquired the remaining stake in Redwood Bioscience Inc. and its SMARTag™ Antibody-Drug Conjugate (ADC) technology platform
- Entered into a collaboration with Sanofi-Aventis to implement Catalent’s proprietary SMARTag™ technology in the development of next generation Antibody-Drug Conjugates (ADCs)
- Announced the addition of new coating and blister packaging equipment at Eberbach, Germany softgel facility, expanding the integrated softgel solutions available for customers
Catalent, Inc. (NYSE:CTLT), the leading global provider of advanced
delivery technologies and development solutions for drugs, biologics and
consumer health products, today announced financial results for the
second quarter of fiscal year 2015, which ended December 31, 2014.
Second quarter 2015 revenue of $455.8 million increased 3% as reported
and 8% at constant currency, from $440.7 million in the second quarter a
year ago. For the first six months of fiscal year 2015, revenue was
$874.1 million, an increase of 2% as reported and 5% at constant
currency, from $855.0 million for the same period a year ago. Revenue
growth for both the quarter and year-to-date was driven by strong
performance of the Medication Delivery Solutions segment and the
modified release technologies business within the Oral Technologies
segment, as well as increased demand for analytical services within the
Development and Clinical Services segment.
Second quarter 2015 net income was $46.5 million, or $0.37 per diluted
share, compared to a net loss of $19.2 million, or $0.26 per diluted
share, in the second quarter a year ago. For the first six months of
fiscal year 2015, net income was $27.0 million, compared to a net loss
of $17.7 million for the same period a year ago. The increase in
profitability for the quarter and year-to-date was primarily related to
strong business performance, as well as a $17.6 million decrease and a
$23.0 million decrease in net interest expense, respectively, due to
lower levels of the outstanding debt at the Company compared to the same
periods a year ago, as a result of the Company's fiscal year 2015 first
quarter initial public offering (IPO).
Second quarter 2015 EBITDA from continuing operations was $101.7
million, an increase of 22% from $83.5 million in the second quarter a
year ago. For the first six months of fiscal year 2015, EBITDA from
continuing operations was $138.3 million, a decrease of 11% from $156.2
million for the same period a year ago.
Second quarter 2015 Adjusted EBITDA, as referenced in the GAAP to
non-GAAP reconciliation provided later in this release, was $112.9
million, or 25% of revenue, compared to $93.4 million, or 21% of
revenue, in the second quarter a year ago. Second quarter 2015 Adjusted
Net Income, as referenced in the GAAP to non-GAAP reconciliation
provided later in this release, was $55.9 million, or $0.44 per diluted
share, compared to Adjusted Net Income of $27.9 million, or $0.37 per
diluted share, in the second quarter a year ago.
"We are pleased with our second quarter results, highlighted by revenue
growth across all of our business segments and strong levels of
profitability,” said John Chiminski, President and Chief Executive
Officer of Catalent, Inc. “Our recent acquisition of Micron Technologies
affirms our commitment to provide the best drug delivery technologies
and the broadest drug development expertise. Also, the acquisition of
Redwood Bioscience and its SMARTag antibody-drug conjugate technology
platform, along with our collaboration with Sanofi-Aventis, strengthens
our position in the fast growing biologics market. These recent
developments, coupled with the addition of new coating and blister
packaging equipment at our Eberbach softgel facility, position
Catalent for further growth and market share expansion.”
Second Quarter 2015 Segment Highlights
Revenue Highlights by Business Segment
Revenue from the Oral Technologies segment was $277.2 million for the
second quarter of fiscal 2015, a decrease of 3%, or an increase of 3% on
a constant currency basis, versus the second quarter a year ago. This
growth was attributable to favorable product mix within the modified
release technologies business and higher revenue from product
participation-related activities, partially offset by lower end-market
demand for certain customer products using the Company’s softgel
technology offering.
Revenue from the Development and Clinical Services segment was $107.8
million for the second quarter of fiscal 2015, an increase of 6%, or an
increase of 7% on a constant currency basis, over the second quarter a
year ago. This growth was primarily attributable to increased revenue in
the analytical services business, due to growth of the Company’s
integrated oral solids development and manufacturing capabilities, and
higher project volumes in the U.S., as well as due to the impact of the
acquisition completed during the quarter.
Revenue from the Medication Delivery Solutions segment was $73.7 million
for the second quarter of fiscal 2015, an increase of 33% as reported,
or an increase of 38% on a constant currency basis, over the second
quarter a year ago. The strong performance was attributable to timing of
customer order patterns, contractual settlements, increased demand for
blow-fill-seal products, injectable products, and biologics.
Segment EBITDA Highlights
Oral Technologies segment EBITDA in the second quarter of 2015 was $73.1
million, with no change as reported, or an increase of 7% on a constant
currency basis. The increase was primarily driven by increased profit
from the Company’s product-participation related activities and higher
revenues from products utilizing modified release technologies.
Development and Clinical Services segment EBITDA in the second quarter
of 2015 was $21.9 million, an increase of 18%, or 21% on a constant
currency basis. This EBITDA improvement was primarily attributable to
increased demand for analytical services and favorable product mix
within clinical services.
Medication Delivery Solutions segment EBITDA in the second quarter of
2015 was $18.1 million, an increase of 161%, or 164% on a constant
currency basis. This increase was driven by increased demand, timing of
customer ordering patterns, and a favorable product mix shift within
blow-fill-seal, as well as increased demand for injectable products.
First Six Months of Fiscal 2015 Segment Highlights
Revenue Highlights by Business Segment
Revenue from the Oral Technologies segment was $538.3 million for the
first six months of fiscal year 2015, a decrease of 1%, or an increase
of 3% on a constant currency basis, over the same period a year ago.
This growth was mainly attributable to strong performance within the
modified release technologies business and increased profit from product
participation-related activities, partially offset by lower end-market
demand for certain customer products using the Company’s softgel
technology offering.
Revenue from the Development and Clinical Services segment was $210.9
million for the first six months of fiscal year 2015, an increase of 4%,
or an increase of 3% on a constant currency basis, over the same period
a year ago. This growth was attributable to increased revenue in the
analytical services business, due to higher project volumes in the U.S.
and growth of the Company’s integrated oral solids development and
manufacturing capabilities, as well as due to the impact of the
acquisition completed in the second quarter. Lower revenue from clinical
services partially offset the organic and inorganic growth from the
analytical services business.
Revenue from the Medication Delivery Solutions segment was $130.6
million for the first six months of fiscal year 2015, an increase of
17%, or an increase of 19% on a constant currency basis, over the same
period a year ago. The strong performance was attributable to timing of
customer ordering patterns, contractual settlements, and increased
demand within the Company’s blow-fill-seal technology platform.
Increased revenue from biologics due to the timing of customer order
patterns and increased demand for the Company’s injectable products also
contributed to the favorability.
Segment EBITDA Highlights
Oral Technologies segment EBITDA for the first six months of fiscal year
2015 was $132.4 million, a decrease of 2%, or an increase of 3% on a
constant currency basis. The increase was primarily driven by increased
revenues and favorable product mix within the modified release
technologies platform, partially offset by decreased demand and
unfavorable product mix within the Company’s softgel offering.
Development and Clinical Services segment EBITDA for the first six
months of fiscal year 2015 was $43.3 million, an increase of 27%, or 26%
on a constant currency basis. This EBITDA improvement was attributable
to increased demand for analytical services and favorable revenue mix
across the business segment.
Medication Delivery Solutions segment EBITDA for the first six months of
fiscal year 2015 was $28.0 million, an increase of 84%, or 86% on a
constant currency basis. This increase was primarily attributable to
timing of customer order patterns, and a favorable product mix shift
within the Company’s blow-fill-seal technology platform.
Additional Financial Highlights
Second quarter 2015 gross margin of 34.2% increased 3.0 percentage
points from 31.2% in the second quarter a year ago. For the first six
months of fiscal year 2015, gross margin was 32.2%, an increase of 2.2
percentage points from 30.0% for the same period a year ago. The
increases in gross margins were driven by favorable product mix and by
improved leveraging of fixed manufacturing costs.
Second quarter 2015 selling, general and administrative expenses were
$88.1 million and represented 19.3% of revenue, compared to $87.5
million, or 19.9% of revenue, in the second quarter a year ago. For the
first six months of fiscal 2015, selling, general and administrative
expenses were $169.5 million and represented 19.4% of revenue, compared
to $168.6 million, or 19.7% of revenue, for the same period a year ago.
Backlog for the Development and Clinical Services segment was $381.0
million as of December 31, 2014, a 1% decrease compared to the first
quarter of fiscal year 2015. The segment also recorded net new business
wins of $95.5 million during the second quarter, which decreased
significantly compared to the second quarter of fiscal year 2014 due to
above normal new business wins in the prior year, led by several large
signings and recent softness in the European market. The segment’s
trailing-twelve-month book-to-bill ratio was 1.0x.
Balance Sheet and Liquidity
As of December 31, 2014, Catalent had $1.9 billion in debt as compared
to $2.7 billion as of June 30, 2014. During the first half of fiscal
2015, the Company's IPO raised over $1 billion in gross proceeds and the
Company used the net proceeds to pay down its unsecured debt. As of
December 31, 2014, Catalent’s leverage ratio was 4.1x, compared to 6.1x
as of June 30, 2014.
Fiscal Year 2015 Outlook
Due to the impact of the continued strengthening of the U.S. Dollar
against all other currencies in which the Company does business and its
effect on foreign exchange translations, Catalent is revising its
previously issued financial guidance despite that the Company is
trending above its previously issued guidance on a constant currency
basis. For fiscal year 2015, the Company now expects revenue to be in
the range of $1.82 billion to $1.86 billion, compared to its previous
guidance of $1.89 billion to $1.92 billion.
The Company now expects Adjusted EBITDA to be in the range of $434
million to $444 million, compared to previous guidance of $450 million
to $460 million. Adjusted Net Income is now expected to be in the range
of $204 million to $214 million, compared to previous guidance of $215
million to $225 million.
In addition, based on the updated operational outlook, capital
expenditures are now expected to be in the range of $120 million to $130
million, compared to previous guidance of $115 million to $125 million.
The Company is also now providing guidance for fully diluted share count
on a weighted average basis for fiscal year ending June 30, 2015, which
is expected to be in the range of 122 million shares to 124 million
shares.
Earnings Webcast
The Company’s management will host a webcast to discuss the results at
4:30 p.m. ET today.
Catalent invites all interested parties to listen to the webcast, which
will be accessible through Catalent’s website at http://investor.catalent.com.
The webcast replay, along with supplemental slides, will be available
for 90 days in the Investors section at www.catalent.com.
About Catalent, Inc.
Catalent, Inc. (NYSE: CTLT) is the leading global provider of advanced
delivery technologies and development solutions for drugs, biologics and
consumer health products. With over 80 years serving the industry,
Catalent has proven expertise in bringing more customer products to
market faster, enhancing product performance and ensuring reliable
clinical and commercial product supply. Catalent employs approximately
8,000 people, including over 1,000 scientists, at nearly 30 facilities
across 5 continents and in fiscal 2014 generated more than $1.8 billion
in annual revenue. Catalent is headquartered in Somerset, N.J. For more
information, please visit www.catalent.com.
Non-GAAP Financial Measure
Use of EBITDA from continuing operations, Adjusted EBITDA and
Adjusted Net Income
Management measures operating performance based on consolidated earnings
from continuing operations before interest expense, expense/(benefit)
for income taxes, and depreciation and amortization, and it is adjusted
for the income or loss attributable to non-controlling interest (“EBITDA
from continuing operations”). EBITDA from continuing operations is not
defined under U.S. GAAP and is not a measure of operating income,
operating performance or liquidity presented in accordance with U.S.
GAAP and is subject to important limitations.
The Company believes that the presentation of EBITDA from continuing
operations enhances an investor’s understanding of its financial
performance. The Company believes this measure is a useful financial
metric to assess its operating performance from period to period by
excluding certain items that it believes are not representative of its
core business and uses this measure for business planning purposes.
In addition, given the significant investments that Catalent has made in
the past in property, plant and equipment, depreciation and amortization
expenses represent a meaningful portion of its cost structure. The
Company believes that EBITDA from continuing operations will provide
investors with a useful tool for assessing the comparability between
periods of its ability to generate cash from operations sufficient to
pay taxes, to service debt and to undertake capital expenditures because
it eliminates depreciation and amortization expense. The Company
presents EBITDA from continuing operations in order to provide
supplemental information that it considers relevant for the readers of
the Consolidated Financial Statements, and such information is not meant
to replace or supersede U.S. GAAP measures. The Company’s definition of
EBITDA from continuing operations may not be the same as similarly
titled measures used by other companies. In addition, Catalent evaluates
the performance of its segments based on segment earnings before
non-controlling interest, other (income)/expense, impairments,
restructuring costs, interest expense, income tax expense/(benefit), and
depreciation and amortization (“segment EBITDA”). Under the credit
agreement, its ability to engage in certain activities such as incurring
certain additional indebtedness, making certain investments and paying
certain dividends is tied to ratios based on Adjusted EBITDA which is
not defined under U.S. GAAP, and is subject to important limitations.
The Company has included the calculations of Adjusted EBITDA for the
periods presented. Adjusted EBITDA is the covenant compliance measure
used in the credit agreement governing debt incurrence and restricted
payments. Because not all companies use identical calculations, the
Company’s presentation of Adjusted EBITDA may not be comparable to other
similarly titled measures of other companies.
Management also measures operating performance based on Adjusted Net
Income/(loss). Adjusted Net Income/(loss) is not defined under U.S. GAAP
and is not a measure of operating income, operating performance or
liquidity presented in accordance with U.S. GAAP and is subject to
important limitations. For example, Adjusted Net Income excludes our
non-cash tax expense and does not reflect the impact on earnings
resulting from certain other items. We believe that the presentation of
Adjusted Net Income/(loss) enhances an investor’s understanding of our
financial performance. We believe this measure is a useful financial
metric to assess our operating performance from period to period by
excluding certain items that we believe are not representative of our
core business and we use this measure for business planning purposes. We
define Adjusted Net Income/(loss) as net earnings/(loss) adjusted for
(1) earnings or loss of discontinued operations, net of tax, (2) tax
expense or income which is not cash, (3) amortization attributable to
purchase accounting and (4) income or loss from non-controlling interest
in our majority-owned operations. We also make adjustments for other
cash and non-cash items included in the table below, partially offset by
our estimate of the cash taxes saved as a result of such cash and
non-cash items. We believe that Adjusted Net Income/(loss) will provide
investors with a useful tool for assessing the comparability between
periods of our ability to generate cash from operations available to our
stockholders. Our definition of Adjusted Net Income/(loss) may not be
the same as similarly titled measures used by other companies.
The most directly comparable GAAP measure to EBITDA from continuing
operations and Adjusted EBITDA is earnings/(loss) from continuing
operations. The most directly comparable GAAP measure to Adjusted Net
Income/(loss) is net earnings/(loss). Included in this release is a
reconciliation of earnings/(loss) from continuing operations to EBITDA
from continuing operations and Adjusted EBITDA and reconciliation of net
earnings/(loss) to Adjusted Net Income.
Use of Constant Currency
As changes in exchange rates are an important factor in understanding
period-to-period comparisons, the Company believes the presentation of
results on a constant currency basis in addition to reported results
helps improve investors’ ability to understand its operating results and
evaluate its performance in comparison to prior periods. Constant
currency information compares results between periods as if exchange
rates had remained constant period-over-period. The Company uses results
on a constant currency basis as one measure to evaluate its performance.
The Company calculates constant currency by calculating current-year
results using prior-year foreign currency exchange rates. The Company
generally refers to such amounts calculated on a constant currency basis
as excluding the impact of foreign exchange or being on a constant
currency basis. These results should be considered in addition to, not
as a substitute for, results reported in accordance with U.S. GAAP.
Results on a constant currency basis, as the Company presents them, may
not be comparable to similarly titled measures used by other companies
and are not measures of performance presented in accordance with U.S.
GAAP.
Forward-Looking Statements
This release contains both historical and forward-looking statements.
All statements other than statements of historical fact are, or may be
deemed to be, forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements generally can be identified by the use of statements that
include phrases such as “believe,” “expect,” “anticipate,” “intend,”
“estimate,” “plan,” “project,” “foresee,” “likely,” “may,” “will,”
“would” or other words or phrases with similar meanings. Similarly,
statements that describe our objectives, plans or goals are, or may be,
forward-looking statements. These statements are based on current
expectations of future events. If underlying assumptions prove
inaccurate or unknown risks or uncertainties materialize, actual results
could vary materially from Catalent, Inc.’s expectations and
projections. Some of the factors that could cause actual results to
differ include, but are not limited to, the following: participation in
a highly competitive market and increased competition may adversely
affect the business of the Company; demand for the Company’s offerings
which depends in part on the Company’s customers’ research and
development and the clinical and market success of their products;
product and other liability risks that could adversely affect the
Company’s results of operations, financial condition, liquidity and cash
flows; failure to comply with existing and future regulatory
requirements; failure to provide quality offerings to customers could
have an adverse effect on our business and subject the Company to
regulatory actions and costly litigation; problems providing the highly
exacting and complex services or support required; global economic,
political and regulatory risks to the operations of the Company;
inability to enhance existing or introduce new technology or service
offerings in a timely manner; inadequate patents, copyrights, trademarks
and other forms of intellectual property protections; fluctuations in
the costs, availability, and suitability of the components of the
products the Company manufactures, including active pharmaceutical
ingredients, excipients, purchased components and raw materials; changes
in market access or healthcare reimbursement in the United States or
internationally; fluctuations in the exchange rate of the U.S. dollar
and other foreign currencies; adverse tax legislation initiatives or
challenges to the Company’s tax positions; loss of key personnel; risks
generally associated with information systems; inability to complete any
future acquisitions and other transactions that may complement or expand
the business of the Company or divest of non-strategic businesses or
assets and the Company’s ability to successfully integrate acquired
business and realize anticipated benefits of such acquisitions;
offerings and customers’ products that may infringe on the intellectual
property rights of third parties; environmental, health and safety laws
and regulations, which could increase costs and restrict operations;
labor and employment laws and regulations; additional cash contributions
required to fund the Company’s existing pension plans; substantial
leverage resulting in the limited ability of the Company to raise
additional capital to fund operations and react to changes in the
economy or in the industry, exposure to interest rate risk to the extent
of the Company’s variable rate debt and preventing the Company from
meeting our obligations under our indebtedness. For a more detailed
discussion of these and other factors, see the information under the
caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal
year ended June 30, 2014, filed with the Securities and Exchange
Commission. All forward-looking statements speak only as of the date of
this release or as of the date they are made, and Catalent, Inc. does
not undertake to update any forward-looking statement as a result of new
information or future events or developments except to the extent
required by law.
More products. Better treatments. Reliably supplied.™
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Consolidated Statements of Operations
|
|
(Unaudited; Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
FX impact
(unfavorable) /
favorable
|
|
Increase/(Decrease)
|
|
|
|
2014
|
|
2013
|
|
|
|
Change $
|
|
Change%
|
|
Net revenue
|
|
$
|
455.8
|
|
|
$
|
440.7
|
|
|
$
|
(22.1
|
)
|
|
$
|
37.2
|
|
|
8
|
%
|
|
Cost of sales
|
|
|
299.7
|
|
|
|
303.3
|
|
|
|
(15.8
|
)
|
|
|
12.2
|
|
|
4
|
%
|
|
Gross margin
|
|
|
156.1
|
|
|
|
137.4
|
|
|
|
(6.3
|
)
|
|
|
25.0
|
|
|
18
|
%
|
|
Selling, general and administrative expenses
|
|
|
88.1
|
|
|
|
87.5
|
|
|
|
(2.3
|
)
|
|
|
2.9
|
|
|
3
|
%
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
|
3.5
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
3.4
|
|
|
*
|
|
Restructuring and other
|
|
|
2.1
|
|
|
|
5.4
|
|
|
|
(0.2
|
)
|
|
|
(3.1
|
)
|
|
(57
|
)%
|
|
Operating earnings/(loss)
|
|
|
62.4
|
|
|
|
44.5
|
|
|
|
(3.9
|
)
|
|
|
21.8
|
|
|
49
|
%
|
|
Interest expense, net
|
|
|
23.9
|
|
|
|
41.5
|
|
|
|
(0.4
|
)
|
|
|
(17.2
|
)
|
|
(41
|
)%
|
|
Other (income)/expense, net
|
|
|
(3.6
|
)
|
|
|
(1.4
|
)
|
|
|
(1.6
|
)
|
|
|
(0.6
|
)
|
|
43
|
%
|
|
Earnings/(loss) from continuing operations, before
income
taxes
|
|
|
42.1
|
|
|
|
4.4
|
|
|
|
(1.9
|
)
|
|
|
39.6
|
|
|
*
|
|
Income tax expense/(benefit)
|
|
|
(4.1
|
)
|
|
|
23.3
|
|
|
|
(0.8
|
)
|
|
|
(26.6
|
)
|
|
*
|
|
Earnings/(loss) from continuing operations
|
|
|
46.2
|
|
|
|
(18.9
|
)
|
|
|
(1.1
|
)
|
|
|
66.2
|
|
|
*
|
|
Net earnings/(loss) from discontinued operations, net of
tax
|
|
|
(0.2
|
)
|
|
|
(0.6
|
)
|
|
|
—
|
|
|
|
0.4
|
|
|
(67
|
)%
|
|
Net earnings/(loss)
|
|
|
46.0
|
|
|
|
(19.5
|
)
|
|
|
(1.1
|
)
|
|
|
66.6
|
|
|
*
|
|
Less: Net earnings/(loss) attributable to noncontrolling
interest,
net of tax
|
|
|
(0.5
|
)
|
|
|
(0.3
|
)
|
|
|
—
|
|
|
|
(0.2
|
)
|
|
67
|
%
|
|
Net earnings/(loss) attributable to Catalent
|
|
$
|
46.5
|
|
|
$
|
(19.2
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
66.8
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations less net
income
(loss) attributable to noncontrolling interest
|
|
|
46.7
|
|
|
|
(18.6
|
)
|
|
|
|
|
|
|
|
Net earnings/(loss) attributable to Catalent
|
|
|
46.5
|
|
|
|
(19.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
126.0
|
|
|
|
75.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
0.38
|
|
|
|
(0.25
|
)
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
0.37
|
|
|
|
(0.26
|
)
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
0.37
|
|
|
|
(0.25
|
)
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
0.37
|
|
|
|
(0.26
|
)
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Selected Segment Financial Data
|
|
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
FX impact
(unfavorable) /
favorable
|
|
Increase/(Decrease)
|
|
|
|
2014
|
|
2013
|
|
|
|
Change $
|
|
Change%
|
|
Oral Technologies
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
277.2
|
|
|
$
|
285.8
|
|
|
$
|
(18.1
|
)
|
|
$
|
9.5
|
|
|
3
|
%
|
|
Segment EBITDA
|
|
|
74.7
|
|
|
|
74.6
|
|
|
|
(5.0
|
)
|
|
|
5.1
|
|
|
7
|
%
|
|
Medication Delivery Solutions
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
73.7
|
|
|
|
55.3
|
|
|
|
(2.7
|
)
|
|
|
21.1
|
|
|
38
|
%
|
|
Segment EBITDA
|
|
|
18.1
|
|
|
|
7.0
|
|
|
|
(0.1
|
)
|
|
|
11.2
|
|
|
*
|
|
Development and Clinical Services
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
107.8
|
|
|
|
102.1
|
|
|
|
(1.4
|
)
|
|
|
7.1
|
|
|
7
|
%
|
|
Segment EBITDA
|
|
|
21.9
|
|
|
|
18.5
|
|
|
|
(0.4
|
)
|
|
|
3.8
|
|
|
21
|
%
|
|
Inter-segment revenue elimination
|
|
|
(2.9
|
)
|
|
|
(2.5
|
)
|
|
|
0.1
|
|
|
|
(0.5
|
)
|
|
20
|
%
|
|
Unallocated Costs
|
|
|
(13.0
|
)
|
|
|
(16.6
|
)
|
|
|
1.8
|
|
|
|
1.8
|
|
|
(11
|
)%
|
|
Combined Total
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
455.8
|
|
|
$
|
440.7
|
|
|
$
|
(22.1
|
)
|
|
$
|
37.2
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
|
$
|
101.7
|
|
|
$
|
83.5
|
|
|
$
|
(3.7
|
)
|
|
$
|
21.9
|
|
|
26
|
%
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Consolidated Statements of Operations
|
|
(Unaudited; Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
2014
|
|
2013
|
|
|
|
Change $
|
|
Change%
|
|
Net revenue
|
|
$
|
874.1
|
|
|
$
|
855.0
|
|
|
$
|
(23.1
|
)
|
|
$
|
42.2
|
|
|
5
|
%
|
|
Cost of sales
|
|
|
592.7
|
|
|
|
598.4
|
|
|
|
(15.4
|
)
|
|
|
9.7
|
|
|
2
|
%
|
|
Gross margin
|
|
|
281.4
|
|
|
|
256.6
|
|
|
|
(7.7
|
)
|
|
|
32.5
|
|
|
13
|
%
|
|
Selling, general and administrative expenses
|
|
|
169.5
|
|
|
|
168.6
|
|
|
|
(2.2
|
)
|
|
|
3.1
|
|
|
2
|
%
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
|
3.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.5
|
|
|
*
|
|
Restructuring and other
|
|
|
3.5
|
|
|
|
8.4
|
|
|
|
(0.1
|
)
|
|
|
(4.8
|
)
|
|
(57
|
)%
|
|
Operating earnings/(loss)
|
|
|
104.9
|
|
|
|
79.6
|
|
|
|
(5.4
|
)
|
|
|
30.7
|
|
|
39
|
%
|
|
Interest expense, net
|
|
|
59.4
|
|
|
|
82.4
|
|
|
|
(0.1
|
)
|
|
|
(22.9
|
)
|
|
(28
|
)%
|
|
Other (income)/expense, net
|
|
|
37.7
|
|
|
|
(2.4
|
)
|
|
|
(2.2
|
)
|
|
|
42.3
|
|
|
*
|
|
Earnings/(loss) from continuing operations before
income taxes
|
|
|
7.8
|
|
|
|
(0.4
|
)
|
|
|
(3.1
|
)
|
|
|
11.3
|
|
|
*
|
|
Income tax expense/(benefit)
|
|
|
(18.1
|
)
|
|
|
16.7
|
|
|
|
(1.4
|
)
|
|
|
(33.4
|
)
|
|
*
|
|
Earnings/(loss) from continuing operations
|
|
|
25.9
|
|
|
|
(17.1
|
)
|
|
|
(1.7
|
)
|
|
|
44.7
|
|
|
*
|
|
Net earnings/(loss) from discontinued operations, net
of tax
|
|
|
0.2
|
|
|
|
(1.0
|
)
|
|
|
—
|
|
|
|
1.2
|
|
|
*
|
|
Net earnings/(loss)
|
|
|
26.1
|
|
|
|
(18.1
|
)
|
|
|
(1.7
|
)
|
|
|
45.9
|
|
|
*
|
|
Less: Net earnings/(loss) attributable to
noncontrolling
interest, net of tax
|
|
|
(0.9
|
)
|
|
|
(0.4
|
)
|
|
|
—
|
|
|
|
(0.5
|
)
|
|
*
|
|
Net earnings/(loss) attributable to Catalent
|
|
$
|
27.0
|
|
|
$
|
(17.7
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
46.4
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations less net
income
(loss) attributable to noncontrolling interest
|
|
|
26.8
|
|
|
|
(16.7
|
)
|
|
|
|
|
|
|
|
Net earnings/(loss) attributable to Catalent
|
|
|
27.0
|
|
|
|
(17.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
116.7
|
|
|
|
75.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
0.23
|
|
|
|
(0.22
|
)
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
0.24
|
|
|
|
(0.24
|
)
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
0.23
|
|
|
|
(0.22
|
)
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
0.23
|
|
|
|
(0.24
|
)
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Selected Segment Financial Data
|
|
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
2014
|
|
2013
|
|
|
|
Change $
|
|
Change%
|
|
Oral Technologies
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
538.3
|
|
|
$
|
544.7
|
|
|
$
|
(21.8
|
)
|
|
$
|
15.4
|
|
|
3
|
%
|
|
Segment EBITDA
|
|
|
132.4
|
|
|
|
135.0
|
|
|
|
(6.8
|
)
|
|
|
4.2
|
|
|
3
|
%
|
|
Medication Delivery Solutions
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
130.6
|
|
|
|
111.8
|
|
|
|
(2.7
|
)
|
|
|
21.5
|
|
|
19
|
%
|
|
Segment EBITDA
|
|
|
28.0
|
|
|
|
15.2
|
|
|
|
(0.2
|
)
|
|
|
13.0
|
|
|
86
|
%
|
|
Development and Clinical Services
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
210.9
|
|
|
|
203.1
|
|
|
|
1.5
|
|
|
|
6.3
|
|
|
3
|
%
|
|
Segment EBITDA
|
|
|
43.3
|
|
|
|
34.2
|
|
|
|
0.3
|
|
|
|
8.8
|
|
|
26
|
%
|
|
Inter-segment revenue elimination
|
|
|
(5.7
|
)
|
|
|
(4.6
|
)
|
|
|
(0.1
|
)
|
|
|
(1.0
|
)
|
|
22
|
%
|
|
Unallocated Costs (1)
|
|
|
(65.4
|
)
|
|
|
(28.2
|
)
|
|
|
2.4
|
|
|
|
(39.6
|
)
|
|
*
|
|
Combined Total
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
874.1
|
|
|
$
|
855.0
|
|
|
$
|
(23.1
|
)
|
|
$
|
42.2
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
|
$
|
138.3
|
|
|
$
|
156.2
|
|
|
$
|
(4.3
|
)
|
|
$
|
(13.6
|
)
|
|
(9
|
)%
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Reconciliation of Earnings/(Loss) from Continuing Operations to
EBITDA from Continuing Operations and Adjusted EBITDA
|
|
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Twelve
Months
Ended
|
|
Quarter
Ended
|
|
Twelve
Months
Ended
|
|
|
|
December 31,
2013
|
|
March 31,
2014
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
Earnings/(loss) from continuing operations
|
|
$
|
(18.9
|
)
|
|
$
|
8.0
|
|
|
$
|
27.0
|
|
|
$
|
(20.3
|
)
|
|
$
|
(4.2
|
)
|
|
$
|
46.2
|
|
|
$
|
60.9
|
|
|
Interest expense, net
|
|
|
41.5
|
|
|
|
40.4
|
|
|
|
40.3
|
|
|
|
35.5
|
|
|
|
157.7
|
|
|
|
23.9
|
|
|
|
140.1
|
|
|
Income tax expense/(benefit) (1)
|
|
|
23.3
|
|
|
|
6.6
|
|
|
|
26.2
|
|
|
|
(14.0
|
)
|
|
|
42.1
|
|
|
|
(4.1
|
)
|
|
|
14.7
|
|
|
Depreciation and amortization
|
|
|
37.3
|
|
|
|
35.1
|
|
|
|
34.0
|
|
|
|
35.0
|
|
|
|
141.4
|
|
|
|
35.2
|
|
|
|
139.3
|
|
|
Noncontrolling interest
|
|
|
0.3
|
|
|
|
0.4
|
|
|
|
0.2
|
|
|
|
0.4
|
|
|
|
1.3
|
|
|
|
0.5
|
|
|
|
1.5
|
|
|
EBITDA from continuing operations
|
|
|
83.5
|
|
|
|
90.5
|
|
|
|
127.7
|
|
|
|
36.6
|
|
|
|
338.3
|
|
|
|
101.7
|
|
|
|
356.5
|
|
|
Equity compensation
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.5
|
|
|
|
4.8
|
|
|
|
2.7
|
|
|
|
6.4
|
|
|
Impairment charges and (gain)/loss on
sale of assets
|
|
|
—
|
|
|
|
0.4
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
3.2
|
|
|
|
3.5
|
|
|
|
6.7
|
|
|
Financing related expenses
and other (2)
|
|
|
(0.1
|
)
|
|
|
0.1
|
|
|
|
10.9
|
|
|
|
20.6
|
|
|
|
31.5
|
|
|
|
1.2
|
|
|
|
32.8
|
|
|
US GAAP Restructuring
|
|
|
5.4
|
|
|
|
3.5
|
|
|
|
7.8
|
|
|
|
1.4
|
|
|
|
18.1
|
|
|
|
2.1
|
|
|
|
14.8
|
|
|
Acquisition, integration and other special
items
|
|
|
2.8
|
|
|
|
2.7
|
|
|
|
0.6
|
|
|
|
3.2
|
|
|
|
9.3
|
|
|
|
4.4
|
|
|
|
10.9
|
|
|
Foreign Exchange loss/(gain) (included
in other, net) (3)
|
|
|
(2.5
|
)
|
|
|
4.5
|
|
|
|
(3.8
|
)
|
|
|
(3.7
|
)
|
|
|
(5.5
|
)
|
|
|
0.5
|
|
|
|
(2.5
|
)
|
|
Other adjustments (4)
|
|
|
—
|
|
|
|
(0.1
|
)
|
|
|
0.4
|
|
|
|
23.8
|
|
|
|
24.1
|
|
|
|
(3.2
|
)
|
|
|
20.9
|
|
|
Sponsor monitoring fee (5)
|
|
|
3.2
|
|
|
|
3.3
|
|
|
|
3.2
|
|
|
|
—
|
|
|
|
9.7
|
|
|
|
—
|
|
|
|
6.5
|
|
|
Subtotal
|
|
|
93.4
|
|
|
|
106.0
|
|
|
|
150.7
|
|
|
|
83.4
|
|
|
|
433.5
|
|
|
|
112.9
|
|
|
|
453.0
|
|
|
Estimated cost savings
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
$
|
93.4
|
|
|
$
|
106.0
|
|
|
$
|
150.7
|
|
|
$
|
83.4
|
|
|
$
|
433.5
|
|
|
$
|
112.9
|
|
|
$
|
453.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents the amount of income tax-related expense/(benefit)
recorded within our net earnings/(loss) which may not result in cash
payment or receipt.
|
|
(2)
|
|
Financing related expenses for the three months ended September 30,
2014 include $20.6 million of early debt termination expenses which
were a result of the IPO. See footnote 4 for an additional $29.8
million of IPO related costs; totaling $50.4 million.
|
|
(3)
|
|
Foreign exchange gain of $2.5 million for the twelve months ended
December 31, 2014 included $21.7 million of unrealized foreign
currency exchange rate gains primarily driven by losses of $9.9
million related to inter-company loans denominated in a currency
different from the functional currency of either the borrower or the
lender, partially offset by foreign currency exchange gains of $31.6
million driven by the ineffective portion of the net investment
hedge related to the Euro denominated debt. The foreign exchange
adjustment was also impacted by the exclusion of realized foreign
currency exchange rate losses from the non-cash and cash settlement
of inter-company loans of $19.2 million. Inter-company loans are
between Catalent entities and do not reflect the ongoing results of
the company's trade operations.
|
|
(4)
|
|
Other Adjustments for the three months ended September 30, 2014
includes $29.8 million for a sponsor advisory agreement termination
fee paid in connection with the IPO. See footnote 2 for an
additional $20.6 million of IPO related costs; totaling $50.4
million.
|
|
(5)
|
|
Represents the amount of sponsor advisory fee for each respective
period. The sponsor advisory fee agreement was terminated following
the completion of our IPO.
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Reconciliation of Net Earnings/(Loss) to Adjusted Net
Income/(Loss)
|
|
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Twelve
Months
Ended
|
|
Quarter
Ended
|
|
Twelve
Months
Ended
|
|
|
|
December 31,
2013
|
|
March 31,
2014
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
Net earnings/(loss)
|
|
$
|
(19.5
|
)
|
|
$
|
6.3
|
|
|
$
|
27.0
|
|
|
$
|
(19.9
|
)
|
|
$
|
(6.1
|
)
|
|
$
|
46.0
|
|
|
$
|
59.4
|
|
|
Net earnings/(loss) from discontinued
operations, net of tax
|
|
|
(0.6
|
)
|
|
|
(1.7
|
)
|
|
|
—
|
|
|
|
0.4
|
|
|
|
(1.9
|
)
|
|
|
(0.2
|
)
|
|
|
(1.5
|
)
|
|
Earnings/(loss) from continuing
operations, net of tax
|
|
|
(18.9
|
)
|
|
|
8.0
|
|
|
|
27.0
|
|
|
|
(20.3
|
)
|
|
|
(4.2
|
)
|
|
|
46.2
|
|
|
|
60.9
|
|
|
Amortization (1)
|
|
|
10.5
|
|
|
|
11.0
|
|
|
|
10.8
|
|
|
|
11.3
|
|
|
|
43.6
|
|
|
|
11.6
|
|
|
|
44.7
|
|
|
Income tax expense/(benefit) (2)
|
|
|
23.3
|
|
|
|
6.6
|
|
|
|
26.2
|
|
|
|
(14.0
|
)
|
|
|
42.1
|
|
|
|
(4.1
|
)
|
|
|
14.7
|
|
|
Cash taxes (paid)/refunded
|
|
|
3.4
|
|
|
|
(1.1
|
)
|
|
|
(7.6
|
)
|
|
|
(9.9
|
)
|
|
|
(15.2
|
)
|
|
|
(8.2
|
)
|
|
|
(26.8
|
)
|
|
Net (earnings)/loss attributable to
noncontrolling interest,
net of tax
|
|
|
0.3
|
|
|
|
0.4
|
|
|
|
0.2
|
|
|
|
0.4
|
|
|
|
1.3
|
|
|
|
0.5
|
|
|
|
1.5
|
|
|
Equity compensation
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.5
|
|
|
|
4.8
|
|
|
|
2.7
|
|
|
|
6.4
|
|
|
Impairment charges and loss on sale of
assets
|
|
|
—
|
|
|
|
0.4
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
3.2
|
|
|
|
3.5
|
|
|
|
6.7
|
|
|
Financing related expenses (3)
|
|
|
(0.1
|
)
|
|
|
0.1
|
|
|
|
10.9
|
|
|
|
20.6
|
|
|
|
31.5
|
|
|
|
1.2
|
|
|
|
32.8
|
|
|
U.S. GAAP restructuring
|
|
|
5.4
|
|
|
|
3.5
|
|
|
|
7.8
|
|
|
|
1.4
|
|
|
|
18.1
|
|
|
|
2.1
|
|
|
|
14.8
|
|
|
Acquisition, integration and other special
items
|
|
|
2.8
|
|
|
|
2.7
|
|
|
|
0.6
|
|
|
|
3.2
|
|
|
|
9.3
|
|
|
|
4.4
|
|
|
|
10.9
|
|
|
Foreign exchange loss/(gain) (included in
other
(income)/expense, net) (4)
|
|
|
(2.5
|
)
|
|
|
4.5
|
|
|
|
(3.8
|
)
|
|
|
(3.7
|
)
|
|
|
(5.5
|
)
|
|
|
0.5
|
|
|
|
(2.5
|
)
|
|
Other adjustments (5)
|
|
|
—
|
|
|
|
(0.1
|
)
|
|
|
0.4
|
|
|
|
23.8
|
|
|
|
24.1
|
|
|
|
(3.2
|
)
|
|
|
20.9
|
|
|
Sponsor advisory fee (6)
|
|
|
3.2
|
|
|
|
3.3
|
|
|
|
3.2
|
|
|
|
—
|
|
|
|
9.7
|
|
|
|
—
|
|
|
|
6.5
|
|
|
Estimated cash tax (savings)/expense
attributable to
reconciling items (7)
|
|
|
(0.6
|
)
|
|
|
(1.4
|
)
|
|
|
(2.6
|
)
|
|
|
(0.9
|
)
|
|
|
(5.5
|
)
|
|
|
(1.3
|
)
|
|
|
(6.2
|
)
|
|
Adjusted net income/(loss)
|
|
$
|
27.9
|
|
|
$
|
39.0
|
|
|
$
|
77.0
|
|
|
$
|
13.4
|
|
|
$
|
157.3
|
|
|
$
|
55.9
|
|
|
$
|
185.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents the amortization attributable to purchase accounting for
previously completed business combinations.
|
|
(2)
|
|
Represents the amount of income tax-related expense/(benefit)
recorded within our net earnings/(loss) which may not result in cash
payment or receipt.
|
|
(3)
|
|
Financing related expenses for the three months ended September 30,
2014 include $20.6 million of early debt termination expenses which
were a result of the IPO. See footnote 5 for an additional $29.8
million of IPO related costs; totaling $50.4 million.
|
|
(4)
|
|
Foreign exchange gain of $2.5 million for the twelve months ended
December 31, 2014 included $21.7 million of unrealized foreign
currency exchange rate gains primarily driven by losses of $9.9
million related to inter-company loans denominated in a currency
different from the functional currency of either the borrower or the
lender, partially offset by foreign currency exchange gains of $31.6
million driven by the ineffective portion of the net investment
hedge related to the Euro denominated debt. The foreign exchange
adjustment was also impacted by the exclusion of realized foreign
currency exchange rate losses from the non-cash and cash settlement
of inter-company loans of $19.2 million. Inter-company loans are
between Catalent entities and do not reflect the ongoing results of
the company's trade operations.
|
|
(5)
|
|
Other Adjustments for the three months ended September 30, 2014
includes $29.8 million for a sponsor advisory agreement termination
fee paid in connection with the IPO. See footnote 3 for an
additional $20.6 million of IPO related costs; totaling $50.4
million.
|
|
(6)
|
|
Represents the amount of sponsor advisory fee for each respective
period. The sponsor advisory fee agreement was terminated following
the completion of our IPO.
|
|
(7)
|
|
Represents the estimated cash tax impact of certain items recorded
in each period that are added back in the calculation of Adjusted
Net Income/(Loss). The estimate is determined by applying the
statutory tax rate in tax paying jurisdictions to income or expense
items which impact cash taxes paid. Generally, amortization
attributable to purchase accounting, unrealized gains/losses due to
foreign currency translation and non-cash equity compensation do not
impact cash taxes.
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Consolidated Balance Sheets
|
|
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
June 30,
2014
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
84.1
|
|
$
|
74.4
|
|
|
Trade receivables, net
|
|
|
336.4
|
|
|
403.7
|
|
|
Inventories
|
|
|
144.3
|
|
|
134.8
|
|
|
Prepaid expenses and other
|
|
|
72.7
|
|
|
74.6
|
|
|
Total current assets
|
|
|
637.5
|
|
|
687.5
|
|
|
Property, plant, and equipment, net
|
|
|
865.1
|
|
|
873.0
|
|
|
Other non-current assets, including intangible assets
|
|
|
1,535.5
|
|
|
1,529.7
|
|
|
Total assets
|
|
$
|
3,038.1
|
|
$
|
3,090.2
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND
SHAREHOLDERS' EQUITY/(DEFICIT)
|
|
Current liabilities:
|
|
|
|
|
|
Current portion of long-term obligations and other short-term
borrowings
|
|
$
|
28.8
|
|
$
|
25.2
|
|
|
Accounts payable
|
|
|
118.4
|
|
|
148.1
|
|
|
Other accrued liabilities
|
|
|
199.3
|
|
|
279.7
|
|
|
Total current liabilities
|
|
|
346.5
|
|
|
453.0
|
|
|
Long-term obligations, less current portion
|
|
|
1,905.4
|
|
|
2,685.4
|
|
|
Other non-current liabilities
|
|
|
289.9
|
|
|
319.1
|
|
|
Redeemable noncontrolling interest
|
|
|
3.9
|
|
|
4.5
|
|
|
Commitment and contingencies (1)
|
|
|
|
|
|
Total Shareholders' equity/(deficit)
|
|
|
492.4
|
|
|
(371.8
|
)
|
|
Total liabilities, redeemable noncontrolling interest and
Shareholders' equity/(deficit)
|
|
$
|
3,038.1
|
|
$
|
3,090.2
|
|
|
|
|
|
|
|
|
(1)
|
|
Please refer to note 15 of the consolidated financial statements
within our December 31, 2014 Form 10-Q.
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Consolidated Statements of Cash Flows
|
|
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
|
|
2014
|
|
2013
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net cash provided by/(used in) operating activities from continuing
operations
|
|
$
|
0.2
|
|
|
$
|
41.5
|
|
|
Net cash provided by/(used in) operating activities from
discontinued operations
|
|
|
0.2
|
|
|
|
(1.1
|
)
|
|
Net cash provided by/(used in) operating activities
|
|
|
0.4
|
|
|
|
40.4
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Acquisition of property and equipment and other productive assets
|
|
|
(71.3
|
)
|
|
|
(39.8
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
—
|
|
|
|
0.8
|
|
|
Payment for acquisitions, net
|
|
|
(125.1
|
)
|
|
|
(51.0
|
)
|
|
Net cash provided by/(used in) investing activities from continuing
operations
|
|
|
(196.4
|
)
|
|
|
(90.0
|
)
|
|
Net cash provided by/(used in) investing activities from
discontinued operations
|
|
|
—
|
|
|
|
4.0
|
|
|
Net cash provided by/(used in) investing activities
|
|
|
(196.4
|
)
|
|
|
(86.0
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Net change in short-term borrowings
|
|
|
6.0
|
|
|
|
15.0
|
|
|
Proceeds from borrowing, net
|
|
|
150.4
|
|
|
|
0.7
|
|
|
Payments related to long-term obligations
|
|
|
(869.3
|
)
|
|
|
(15.2
|
)
|
|
Call premium payments and financing fees paid
|
|
|
(12.6
|
)
|
|
|
—
|
|
|
Equity contribution/(redemption)
|
|
|
948.8
|
|
|
|
0.2
|
|
|
Share settlement
|
|
|
(0.7
|
)
|
|
|
|
Net cash (used in)/provided by financing activities from continuing
operations
|
|
|
222.6
|
|
|
|
0.7
|
|
|
Net cash (used in)/provided by financing activities from
discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
Net cash (used in)/provided by financing activities
|
|
|
222.6
|
|
|
|
0.7
|
|
|
Effect of foreign currency on cash
|
|
|
(16.9
|
)
|
|
|
2.7
|
|
|
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS
|
|
|
9.7
|
|
|
|
(42.2
|
)
|
|
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
74.4
|
|
|
|
106.4
|
|
|
CASH AND EQUIVALENTS AT END OF PERIOD
|
|
$
|
84.1
|
|
|
$
|
64.2
|
|
|
|
|
|
|
|
Investor:
Catalent, Inc.
Thomas Castellano
or
Bertner Advisors, LLC
Jeremy Feffer, 732-537-6325
investors@catalent.com