- Q4'16 revenue $532.2 million increased 6% in constant currency from the prior year period
- FY'16 revenue of $1.85 billion increased 6% in constant currency from the prior year period
- Catalent's proprietary OptiShell™ softgel technology has been selected for use in OPKO Health's NDA for RAYALDEE ® and has been approved by the U.S. FDA
- Announced the launch of our FastChain™ service, for greater speed, flexibility and efficiency in the management and distribution of global clinical trial supplies
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
fourth quarter and fiscal year 2016, which ended June 30, 2016.
Fourth quarter 2016 revenue of $532.2 million increased 4% as reported
and increased 6% in constant currency from $510.1 million reported in
the fourth quarter a year ago. For the fiscal year 2016, revenue was
$1.85 billion, an increase of 1% as reported and an increase of 6% in
constant currency. All three of the Company’s reporting segments posted
constant currency revenue growth for the fourth quarter and the fiscal
year, led by a double-digit increase in the Clinical Supply Services
segment for the fiscal year.
Fourth quarter 2016 net earnings attributable to Catalent were $58.1
million, or $0.46 per diluted share, compared to net earnings of $153.7
million, or $1.22 per diluted share, in the fourth quarter a year ago.
The decrease in profitability was primarily due to the release of a
valuation allowance on deferred tax assets of $136.7 million, which was
recorded as a tax benefit in the fourth quarter of the prior fiscal
year. Fiscal year 2016 net earnings attributable to Catalent were $111.5
million, or $0.89 per diluted share, compared to net earnings of $212.2
million, or $1.75 per diluted share, for the same period a year ago.
Fourth quarter 2016 EBITDA from continuing operations of $134.4 million
increased 10% from $121.8 million in the fourth quarter a year ago.
Fiscal year 2016 EBITDA from continuing operations was $374.3 million,
an increase of 4% from $360.2 million for the same period a year ago.
Fourth quarter 2016 Adjusted EBITDA, as referenced in the GAAP to
non-GAAP reconciliation provided later in this release, was $141.8
million, or 26.6% of revenue, compared to $136.3 million, or 26.7% of
revenue, in the fourth quarter a year ago. This represents an increase
of 7% on a constant currency basis. Fiscal year 2016 Adjusted EBITDA of
$401.2 million, or 21.7% of revenue, compared to $443.1 million, or
24.2% of revenue, for the same period a year ago.
Fourth quarter 2016 Adjusted Net Income, as referenced in the GAAP to
non-GAAP reconciliation provided later in this release, was $64.9
million, or $0.52 per diluted share, compared to Adjusted Net Income of
$33.0 million, or $0.26 per diluted share, in the fourth quarter a year
ago. Fiscal year 2016 Adjusted Net Income was $153.2 million, or $1.22
per diluted share, compared to Adjusted Net Income of $167.9 million, or
$1.38 per diluted share, for the same period a year ago.
"While fiscal year 2016 was clearly a challenging year overall for the
company, I'm encouraged by our favorable Q4 results, which included
constant currency revenue growth of 6% and Adjusted EBITDA growth of
7%,” said John Chiminski, President and Chief Executive Officer of
Catalent, Inc. “We will look to carry this momentum into our 2017 fiscal
year, which we expect will be a strong year. We continue to believe that
ongoing market consolidation and strong demand for fewer, bigger, and
better suppliers in our dynamic industry positions us well for future
organic growth.”
In fiscal 2016, we engaged in a business reorganization to better align
our internal business unit structure with our "Follow the Molecule"
strategy. Under the revised structure, we have created a Drug Delivery
Solutions ("DDS") operating segment which encompasses all of our
modified release technologies; pre-filled syringes and other injectable
formats; blow-fill seal unit dose development and manufacturing;
biologic cell line development; analytical services; micronization
technologies; and other conventional oral dose forms under a single DDS
management team. Additionally, as part of the re-alignment, we have
created a stand-alone Clinical Supply Services ("CSS") operating segment
and management team with a sole focus on providing global clinical
supply chain management services that aim to speed our customers' drugs
to market. Further, as a result of the business unit re-alignment, our
Softgel Technologies business now reports as a distinct operating
segment. For financial reporting purposes, we present three financial
reporting segments based on criteria established by U.S. GAAP: Softgel
Technologies, Drug Delivery Solutions and Clinical Supply Services.
Fourth Quarter 2016 Segment Highlights
Revenue Highlights by Business Segment
Revenue from the Softgel Technologies segment was $224.8 million for the
fourth quarter of fiscal 2016, an increase of 1% as reported, or 4% in
constant currency, compared to the fourth quarter a year ago. This
performance on a constant currency basis was attributable to higher end
market volume demand for consumer health and prescription products,
primarily in North America, Latin America, and Asia Pacific.
Revenue from the Drug Delivery Solutions segment was $238.2 million for
the fourth quarter of fiscal 2016, an increase of 9% as reported, or 10%
in constant currency, over the fourth quarter a year ago. This strong
performance was primarily driven by increased volumes related to
fee-for-service development work and analytical testing in the U.S., and
increased volumes related to our biologics and blow-fill-seal offerings.
Revenue from the Clinical Supply Services segment was $81.5 million for
the fourth quarter of fiscal 2016, an increase of 1% as reported, or 4%
in constant currency over the fourth quarter a year ago. This growth was
primarily due to increased volume related to core manufacturing,
packaging, storage and distribution activities.
Segment EBITDA Highlights
Softgel Technologies segment EBITDA in the fourth quarter of 2016 was
$59.0 million, an increase of 1% as reported, or 5% in constant
currency, versus the fourth quarter a year ago. The increase was
primarily attributable to the higher end market volume demand for
consumer health and prescription softgel products across North America,
Latin America, and Asia Pacific, as well as from effective absorption of
fixed costs through higher capacity utilization across the network.
Drug Delivery Solutions segment EBITDA in the fourth quarter of 2016 was
$75.7 million, an increase of 13% as reported, or 15% in constant
currency. The increase was primarily driven by increased volumes related
to fee-for-service development work and analytical testing in the U.S.,
increased volumes related to our biologics offering, and higher demand
for products utilizing our blow-fill-seal technology platform.
Clinical Supply Services segment EBITDA in the fourth quarter of 2016
was $13.7 million, a decrease of 11% as reported, or 7% in constant
currency. The decrease was primarily attributable to increased costs
related to a business update to enhance operational efficiency, as well
further investments in the segment's infrastructure, project management
and business development efforts.
Fiscal 2016 Segment Highlights
Revenue Highlights by Business Segment
Revenue from the Softgel Technologies segment was $775.0 million for
fiscal year 2016, a decrease of 2% as reported, or an increase of 7% in
constant currency, over the same period a year ago. This improvement on
a constant currency basis was attributable to higher end market volume
demand for lower margin consumer health products primarily in Asia
Pacific. Partially offsetting increased revenue was a decrease in volume
of prescription products primarily in Europe due to the temporary
suspension of operations at our facility in Beinheim, France, which
occurred between November 2015 and April 2016.
Revenue from the Drug Delivery Solutions segment was $806.4 million for
fiscal year 2016, an increase of 1% as reported, or 4% in constant
currency, over the same period a year ago. This growth was primarily
attributable to analytical services driven by increased sales volumes
related to fee-for-service development work and analytical testing in
the U.S. Net revenue also increased as a result of increased volume from
our biologics offerings and increased volume of products utilizing our
blow-fill-seal technology platform. Partially offsetting these increases
was decreased sales from our oral delivery solutions platform due to
lower end customer demand for certain higher margin offerings primarily
in our U.S. operations and lower revenue from product participation
related activities.
Revenue from the Clinical Services Supplies segment was $307.5 million
for fiscal year 2016, an increase of 7% as reported, or 10% in constant
currency, over the same period a year ago. This growth was primarily due
to due to increased lower-margin comparator sourcing volume and
increased volume related to storage and distribution revenue.
Segment EBITDA Highlights
Softgel Technologies segment EBITDA for fiscal year 2016 was $163.8
million, a decrease of 6% as reported, or an increase of 4% on a
constant currency basis. The increase was primarily driven by increased
sales volumes of our lower margin consumer health products and more
effective absorption of fixed costs through higher capacity utilization,
partially offset by the temporary suspension of operations at our
facility in Beinheim, France which occurred between November 2015 and
April 2016.
Drug Delivery Solutions segment EBITDA for fiscal year 2016 was $215.2
million, a decrease of 7% as reported, or 4% in constant currency. The
decline in profitability was primarily due to reduced end customer
demand reducing volume of certain higher margin offerings and lower
absorption of fixed manufacturing costs within our oral delivery
solutions platform, partially offset by increased profit generated by
our biologics offering and from products utilizing our blow-fill-seal
technology platform.
Clinical Supply Services segment EBITDA for fiscal year 2016 was $53.2
million, a decrease of 6% as reported, or a decrease of 2% in constant
currency. This decrease was primarily attributable to a shift to
lower-margin comparator sourcing volume and increased cost related to
operational efficiency activities.
Additional Financial Highlights
Fourth quarter 2016 gross margin of 35.3% declined 30 basis points from
35.6% in the fourth quarter a year ago. For fiscal year 2016, gross
margin was 31.8%, a decrease of 180 basis points from 33.6% for the same
period a year ago. The decrease was primarily attributable to the
temporary suspension of operations at our facility in Beinheim, France
which occurred between November 2015 and April 2016.
Fourth quarter 2016 selling, general and administrative expenses were
$89.5 million and represented 16.8% of revenue, compared to $86.9
million, or 17.0% of revenue, in the fourth quarter a year ago. For
fiscal 2016, selling, general and administrative expenses were $358.1
million and represented 19.4% of revenue, compared to $337.3 million, or
18.4% of revenue, for the same period a year ago.
Backlog for the Clinical Supply Services segment, defined as estimated
future service revenues from work not yet completed under signed
contracts was $292.1 million as of June 30, 2016, a 9% increase compared
to the third quarter of fiscal year 2016. The segment also recorded net
new business wins of $106.4 million during the fourth quarter, which
represented a 10% increase year over year. The segment’s
trailing-twelve-month book-to-bill ratio was 1.2x.
Balance Sheet and Liquidity
As of June 30, 2016, Catalent had $1.8 billion in net debt, essentially
unchanged compared to the debt level as of June 30, 2015. As of June 30,
2016, Catalent’s net leverage ratio was 4.3x, compared to 3.9x as of
June 30, 2015.
Fiscal Year 2017 Outlook
For fiscal year 2017, the company expects revenue in the range of $1.920
billion to $1.995 billion. Catalent expects Adjusted EBITDA in the range
of $430 million to $455 million and Adjusted Net Income in the range of
$165 million to $190 million. These guidance ranges are consistent with
the organic, constant currency long-term CAGR growth expectations of
4-6% for revenue and 6-8% for Adjusted EBITDA. The Company expects
capital expenditures in the range of $125 million to $135 million and
fully diluted share count in the range of 126 million to 128 million
shares on a weighted average basis.
Earnings Webcast
The Company’s management will host a webcast to discuss the results at
4:45 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
.
A supplemental slide presentation will also be available in the
“Investors” section of Catalent’s website prior to the start of the
webcast. The webcast replay, along with the supplemental slides, will be
available for 90 days in the “Investors” section of Catalent’s website
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 more than 9,200
people, including over 1,400 scientists, at 31 facilities across 5
continents and in fiscal 2016 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 Measures
Use of EBITDA from continuing operations, Adjusted EBITDA, Adjusted
Net Income and Segment EBITDA
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.
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”).
Moreover, under the Company's 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. 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. The Company believes that the presentation of
Adjusted Net Income/(loss) 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 the Company uses this measure
for business planning purposes. The Company defines Adjusted Net
Income/(loss) as net earnings/(loss) adjusted for (1) earnings or loss
of discontinued operations, net of tax (2) amortization attributable to
purchase accounting and (3) income or loss from non-controlling interest
in its majority-owned operations. The Company also makes adjustments for
other cash and non-cash items included in the table below, partially
offset by its estimate of the tax effects as a result of such cash and
non-cash items. The Company believes that Adjusted Net Income/(loss)
will provide investors with a useful tool for assessing the
comparability between periods of its ability to generate cash from
operations available to its stockholders. The Company’s 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 the Company’s 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 the Company’s business and subject it 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 its obligations under its indebtedness. For a more detailed
discussion of these and other factors, see the information under the
caption “Risk Factors” in the Company’s Annual Report on Form 10-K for
the fiscal year ended June 30, 2015, 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
(Dollars in millions, except
per share data)
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
FX impact
(unfavorable)
/ favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
2016
|
|
2015
|
|
|
|
Change $
|
|
Change%
|
|
Net revenue
|
|
|
$
|
532.2
|
|
|
$
|
510.1
|
|
|
$
|
(10.3
|
)
|
|
$
|
32.4
|
|
|
6
|
%
|
|
Cost of sales
|
|
|
|
344.4
|
|
|
|
328.4
|
|
|
|
(5.3
|
)
|
|
|
21.3
|
|
|
6
|
%
|
|
Gross margin
|
|
|
|
187.8
|
|
|
|
181.7
|
|
|
|
(5.0
|
)
|
|
|
11.1
|
|
|
6
|
%
|
|
Selling, general and administrative expenses
|
|
|
|
89.5
|
|
|
|
86.9
|
|
|
|
(1.0
|
)
|
|
|
3.6
|
|
|
4
|
%
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
|
|
1.9
|
|
|
|
0.9
|
|
|
|
—
|
|
|
|
1.0
|
|
|
*
|
|
Restructuring and other
|
|
|
|
5.6
|
|
|
|
4.7
|
|
|
|
(0.5
|
)
|
|
|
1.4
|
|
|
30
|
%
|
|
Operating earnings
|
|
|
|
90.8
|
|
|
|
89.2
|
|
|
|
(3.5
|
)
|
|
|
5.1
|
|
|
6
|
%
|
|
Interest expense, net
|
|
|
|
21.8
|
|
|
|
22.6
|
|
|
|
(0.2
|
)
|
|
|
(0.6
|
)
|
|
(3
|
)%
|
|
Other (income)/expense, net
|
|
|
|
(8.5
|
)
|
|
|
3.9
|
|
|
|
(0.3
|
)
|
|
|
(12.1
|
)
|
|
*
|
|
Earnings from continuing operations, before income taxes
|
|
|
|
77.5
|
|
|
|
62.7
|
|
|
|
(3.0
|
)
|
|
|
17.8
|
|
|
28
|
%
|
|
Income tax expense/(benefit)
|
|
|
|
19.4
|
|
|
|
(90.8
|
)
|
|
|
(0.8
|
)
|
|
|
111.0
|
|
|
*
|
|
Earnings from continuing operations
|
|
|
|
58.1
|
|
|
|
153.5
|
|
|
|
(2.2
|
)
|
|
|
(93.2
|
)
|
|
(61
|
)%
|
|
Net earnings/(loss) from discontinued operations, net of tax
|
|
|
|
—
|
|
|
|
(0.1
|
)
|
|
|
—
|
|
|
|
0.1
|
|
|
*
|
|
Net earnings
|
|
|
|
58.1
|
|
|
|
153.4
|
|
|
|
(2.2
|
)
|
|
|
(93.1
|
)
|
|
(61
|
)%
|
|
Less: Net earnings/(loss) attributable to noncontrolling interest,
net of tax
|
|
|
|
—
|
|
|
|
(0.3
|
)
|
|
|
—
|
|
|
|
0.3
|
|
|
*
|
|
Net earnings attributable to Catalent
|
|
|
$
|
58.1
|
|
|
$
|
153.7
|
|
|
$
|
(2.2
|
)
|
|
$
|
(93.4
|
)
|
|
(61
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations less net income
(loss)
attributable to noncontrolling interest
|
|
|
|
58.1
|
|
|
|
153.8
|
|
|
|
|
|
|
|
|
Net earnings attributable to Catalent
|
|
|
|
58.1
|
|
|
|
153.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
124.8
|
|
|
|
124.6
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
125.9
|
|
|
|
126.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
|
0.47
|
|
|
|
1.23
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
|
0.47
|
|
|
|
1.23
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
|
0.46
|
|
|
|
1.22
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
|
0.46
|
|
|
|
1.22
|
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Selected Segment
Financial Data
(Dollars in millions)
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
2016
|
|
2015
|
|
|
|
Change $
|
|
Change%
|
|
Softgel Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$
|
224.8
|
|
|
$
|
221.7
|
|
|
$
|
(6.5
|
)
|
|
$
|
9.6
|
|
|
4
|
%
|
|
Segment EBITDA
|
|
|
|
59.0
|
|
|
|
58.7
|
|
|
|
(2.9
|
)
|
|
|
3.2
|
|
|
5
|
%
|
|
Drug Delivery Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
238.2
|
|
|
|
218.7
|
|
|
|
(1.5
|
)
|
|
|
21.0
|
|
|
10
|
%
|
|
Segment EBITDA
|
|
|
|
75.7
|
|
|
|
66.9
|
|
|
|
(1.0
|
)
|
|
|
9.8
|
|
|
15
|
%
|
|
Clinical Supply Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
81.5
|
|
|
|
80.6
|
|
|
|
(2.1
|
)
|
|
|
3.0
|
|
|
4
|
%
|
|
Segment EBITDA
|
|
|
|
13.7
|
|
|
|
15.4
|
|
|
|
(0.6
|
)
|
|
|
(1.1
|
)
|
|
(7
|
)%
|
|
Inter-segment revenue elimination
|
|
|
|
(12.3
|
)
|
|
|
(10.9
|
)
|
|
|
(0.2
|
)
|
|
|
(1.2
|
)
|
|
11
|
%
|
|
Unallocated Costs
|
|
|
|
(14.0
|
)
|
|
|
(19.2
|
)
|
|
|
0.8
|
|
|
|
4.4
|
|
|
(23
|
)%
|
|
Combined Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$
|
532.2
|
|
|
$
|
510.1
|
|
|
$
|
(10.3
|
)
|
|
$
|
32.4
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
|
|
$
|
134.4
|
|
|
$
|
121.8
|
|
|
$
|
(3.7
|
)
|
|
$
|
16.3
|
|
|
13
|
%
|
Refer to the Company's description of non-GAAP measures including
Segment EBITDA as referenced above.
|
|
|
Catalent, Inc. and Subsidiaries
Consolidated
Statements of Operations
(Dollars in millions, except
per share amounts)
|
|
|
|
|
|
|
Twelve Months Ended
June 30,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
2016
|
|
2015
|
|
|
|
Change $
|
|
Change%
|
|
Net revenue
|
|
|
$
|
1,848.1
|
|
|
$
|
1,830.8
|
|
|
$
|
(95.4
|
)
|
|
$
|
112.7
|
|
|
6
|
%
|
|
Cost of sales
|
|
|
|
1,260.5
|
|
|
|
1,215.5
|
|
|
|
(69.1
|
)
|
|
|
114.1
|
|
|
9
|
%
|
|
Gross margin
|
|
|
|
587.6
|
|
|
|
615.3
|
|
|
|
(26.3
|
)
|
|
|
(1.4
|
)
|
|
*
|
|
Selling, general and administrative expenses
|
|
|
|
358.1
|
|
|
|
337.3
|
|
|
|
(9.5
|
)
|
|
|
30.3
|
|
|
9
|
%
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
|
|
2.7
|
|
|
|
4.7
|
|
|
|
0.2
|
|
|
|
(2.2
|
)
|
|
(47
|
)%
|
|
Restructuring and other
|
|
|
|
9.0
|
|
|
|
13.4
|
|
|
|
(0.6
|
)
|
|
|
(3.8
|
)
|
|
(28
|
)%
|
|
Operating earnings
|
|
|
|
217.8
|
|
|
|
259.9
|
|
|
|
(16.4
|
)
|
|
|
(25.7
|
)
|
|
(10
|
)%
|
|
Interest expense, net
|
|
|
|
88.5
|
|
|
|
105.0
|
|
|
|
(1.5
|
)
|
|
|
(15.0
|
)
|
|
(14
|
)%
|
|
Other (income)/expense, net
|
|
|
|
(15.6
|
)
|
|
|
42.4
|
|
|
|
(2.6
|
)
|
|
|
(55.4
|
)
|
|
*
|
|
Earnings from continuing operations before income taxes
|
|
|
|
144.9
|
|
|
|
112.5
|
|
|
|
(12.3
|
)
|
|
|
44.7
|
|
|
40
|
%
|
|
Income tax expense/(benefit)
|
|
|
|
33.7
|
|
|
|
(97.7
|
)
|
|
|
(4.0
|
)
|
|
|
135.4
|
|
|
*
|
|
Earnings from continuing operations
|
|
|
|
111.2
|
|
|
|
210.2
|
|
|
|
(8.3
|
)
|
|
|
(90.7
|
)
|
|
(43
|
)%
|
|
Net earnings from discontinued operations, net of tax
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
(0.1
|
)
|
|
*
|
|
Net earnings
|
|
|
|
111.2
|
|
|
|
210.3
|
|
|
|
(8.3
|
)
|
|
|
(90.8
|
)
|
|
(43
|
)%
|
|
Less: Net earnings/(loss) attributable to noncontrolling interest,
net of tax
|
|
|
|
(0.3
|
)
|
|
|
(1.9
|
)
|
|
|
—
|
|
|
|
1.6
|
|
|
(84
|
)%
|
|
Net earnings attributable to Catalent
|
|
|
$
|
111.5
|
|
|
$
|
212.2
|
|
|
$
|
(8.3
|
)
|
|
$
|
(92.4
|
)
|
|
(44
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations less net
income (loss)
attributable to noncontrolling interest
|
|
|
|
111.5
|
|
|
|
212.1
|
|
|
|
|
|
|
|
|
Net earnings attributable to Catalent
|
|
|
|
111.5
|
|
|
|
212.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
124.8
|
|
|
|
119.6
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
125.9
|
|
|
|
121.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
0.89
|
|
|
|
1.77
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
0.89
|
|
|
|
1.77
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
0.89
|
|
|
|
1.75
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
0.89
|
|
|
|
1.75
|
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Selected Segment
Financial Data
(Dollars in millions)
|
|
|
|
|
|
|
Twelve Months Ended
June 30,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
2016
|
|
2015
|
|
|
|
Change $
|
|
Change%
|
|
Softgel Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$
|
775.0
|
|
|
$
|
787.5
|
|
|
$
|
(68.2
|
)
|
|
$
|
55.7
|
|
|
7
|
%
|
|
Segment EBITDA
|
|
|
|
163.8
|
|
|
|
173.6
|
|
|
|
(15.9
|
)
|
|
|
6.1
|
|
|
4
|
%
|
|
Drug Delivery Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
806.4
|
|
|
|
798.3
|
|
|
|
(20.4
|
)
|
|
|
28.5
|
|
|
4
|
%
|
|
Segment EBITDA
|
|
|
|
215.2
|
|
|
|
230.7
|
|
|
|
(5.2
|
)
|
|
|
(10.3
|
)
|
|
(4
|
)%
|
|
Clinical Supply Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
307.5
|
|
|
|
288.4
|
|
|
|
(9.4
|
)
|
|
|
28.5
|
|
|
10
|
%
|
|
Segment EBITDA
|
|
|
|
53.2
|
|
|
|
56.7
|
|
|
|
(2.4
|
)
|
|
|
(1.1
|
)
|
|
(2
|
)%
|
|
Inter-segment revenue elimination
|
|
|
|
(40.8
|
)
|
|
|
(43.4
|
)
|
|
|
2.6
|
|
|
|
—
|
|
|
*
|
|
Unallocated Costs
|
|
|
|
(57.9
|
)
|
|
|
(100.8
|
)
|
|
|
3.3
|
|
|
|
39.6
|
|
|
(39
|
)%
|
|
Combined Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$
|
1,848.1
|
|
|
$
|
1,830.8
|
|
|
$
|
(95.4
|
)
|
|
$
|
112.7
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
|
|
$
|
374.3
|
|
|
$
|
360.2
|
|
|
$
|
(20.2
|
)
|
|
$
|
34.3
|
|
|
10
|
%
|
Refer to the Company's description of non-GAAP measures including
Segment EBITDA as referenced above.
|
|
|
Catalent, Inc. and Subsidiaries
Reconciliation of
Earnings/(Loss) from Continuing Operations to EBITDA from
Continuing Operations and
Adjusted EBITDA*
(Dollars
in millions)
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
Quarter Ended
|
|
Year Ended
|
|
|
|
|
June 30,
2015
|
|
June 30,
2015
|
|
September
30,
2015
|
|
December
31,
2015
|
|
March 31,
2016
|
|
June 30,
2016
|
|
June 30,
2016
|
|
Earnings from continuing operations
|
|
|
$
|
153.5
|
|
|
$
|
210.2
|
|
|
$
|
11.7
|
|
|
$
|
30.7
|
|
|
$
|
10.7
|
|
|
$
|
58.1
|
|
|
$
|
111.2
|
|
|
Interest expense, net
|
|
|
22.6
|
|
|
105.0
|
|
|
22.7
|
|
|
22.3
|
|
|
21.7
|
|
|
21.8
|
|
|
88.5
|
|
|
Income tax expense/(benefit)
|
|
|
(90.8
|
)
|
|
(97.7
|
)
|
|
2.0
|
|
|
9.2
|
|
|
3.1
|
|
|
19.4
|
|
|
33.7
|
|
|
Depreciation and amortization
|
|
|
36.2
|
|
|
140.8
|
|
|
35.5
|
|
|
35.2
|
|
|
34.8
|
|
|
35.1
|
|
|
140.6
|
|
|
Noncontrolling interest
|
|
|
0.3
|
|
|
1.9
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
EBITDA from continuing operations
|
|
|
121.8
|
|
|
360.2
|
|
|
72.1
|
|
|
97.5
|
|
|
70.3
|
|
|
134.4
|
|
|
374.3
|
|
|
Equity compensation
|
|
|
2.6
|
|
|
9.0
|
|
|
2.6
|
|
|
2.5
|
|
|
3.6
|
|
|
2.1
|
|
|
10.8
|
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
|
0.9
|
|
|
4.7
|
|
|
1.2
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
1.9
|
|
|
2.7
|
|
|
Financing related expenses
and other
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
US GAAP Restructuring
|
|
|
4.7
|
|
|
13.4
|
|
|
1.0
|
|
|
0.6
|
|
|
1.8
|
|
|
5.6
|
|
|
9.0
|
|
|
Acquisition, integration and other special items
|
|
|
3.7
|
|
|
13.8
|
|
|
1.0
|
|
|
3.6
|
|
|
7.8
|
|
|
5.8
|
|
|
18.2
|
|
|
Foreign Exchange loss/(gain) (included in other, net) (1)
|
|
|
1.5
|
|
|
(2.7
|
)
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
(2.0
|
)
|
|
(4.7
|
)
|
|
(10.5
|
)
|
|
Other adjustments
|
|
|
1.1
|
|
|
22.9
|
|
|
0.2
|
|
|
0.3
|
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
(3.3
|
)
|
|
Subtotal
|
|
|
136.3
|
|
|
443.1
|
|
|
77.6
|
|
|
101.1
|
|
|
80.7
|
|
|
141.8
|
|
|
401.2
|
|
|
Estimated cost savings
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
$
|
136.3
|
|
|
$
|
443.1
|
|
|
$
|
77.6
|
|
|
$
|
101.1
|
|
|
$
|
80.7
|
|
|
$
|
141.8
|
|
|
$
|
401.2
|
|
|
FX impact (unfavorable)
|
|
|
|
|
|
|
|
|
|
|
|
|
(4.1
|
)
|
|
(20.8
|
)
|
|
Adjusted EBITDA - Constant Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
145.9
|
|
|
$
|
422.0
|
|
* Refer to the Company's description of non-GAAP measures including
Adjusted EBITDA as referenced above.
|
(1)
|
|
Foreign exchange gain of $10.5 million for the twelve months ended
June 30, 2016 included $16.3 million of non-cash unrealized foreign
currency exchange rate gains primarily driven by gains of $9.0
million related to foreign trade receivables and payables. The
foreign exchange adjustment was also affected by the exclusion of
realized foreign currency exchange rate losses from the non-cash and
cash settlement of inter-company loans of $5.8 million.
Inter-company loans are between Catalent entities and do not reflect
the ongoing results of the company's trade operations.
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Reconciliation of Net Earnings/(Loss) to Adjusted Net Income*
|
|
(Dollars in millions)
|
|
|
Note:
In response to a recent
regulatory focus on Non-GAAP performance metrics, the Company has
revised the calculation for Adjusted Net Income by replacing the cash
tax effects in the periods presented with the income tax expense,
discrete tax items and estimated tax effect of reconciling items as
described in the footnotes herein. Prior years end and interim
periods presented have been re-cast to reflect the revised calculation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
Quarter Ended
|
|
Year Ended
|
|
|
|
|
June 30,
2015
|
|
June 30,
2015
|
|
September
30, 2015
|
|
December
31, 2015
|
|
March 31,
2016
|
|
June 30,
2016
|
|
June 30,
2016
|
|
Net earnings
|
|
|
$
|
153.4
|
|
|
$
|
210.3
|
|
|
$
|
11.7
|
|
|
$
|
30.7
|
|
|
$
|
10.7
|
|
|
$
|
58.1
|
|
|
$
|
111.2
|
|
|
Net earnings/(loss) from discontinued operations, net of tax
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Earnings from continuing operations, net of tax
|
|
|
153.5
|
|
|
210.2
|
|
|
11.7
|
|
|
30.7
|
|
|
10.7
|
|
|
58.1
|
|
|
111.2
|
|
|
Amortization (1)
|
|
|
11.8
|
|
|
46.5
|
|
|
11.9
|
|
|
11.7
|
|
|
11.4
|
|
|
11.4
|
|
|
46.4
|
|
|
Net (earnings)/loss attributable to noncontrolling interest, net of
tax
|
|
|
0.3
|
|
|
1.9
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
Equity compensation
|
|
|
2.6
|
|
|
9.0
|
|
|
2.6
|
|
|
2.5
|
|
|
3.6
|
|
|
2.1
|
|
|
10.8
|
|
|
Impairment charges and loss on sale of assets
|
|
|
0.9
|
|
|
4.7
|
|
|
1.2
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
1.9
|
|
|
2.7
|
|
|
Financing related expenses
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
U.S. GAAP restructuring
|
|
|
4.7
|
|
|
13.4
|
|
|
1.0
|
|
|
0.6
|
|
|
1.8
|
|
|
5.6
|
|
|
9.0
|
|
|
Acquisition, integration and other special items
|
|
|
3.7
|
|
|
13.8
|
|
|
1.0
|
|
|
3.6
|
|
|
7.8
|
|
|
5.8
|
|
|
18.2
|
|
|
Foreign exchange loss/(gain) (included in other (income)/expense,
net)
|
|
|
1.5
|
|
|
(2.7
|
)
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
(2.0
|
)
|
|
(4.7
|
)
|
|
(10.5
|
)
|
|
Other adjustments
|
|
|
1.1
|
|
|
22.9
|
|
|
0.2
|
|
|
0.3
|
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
(3.3
|
)
|
|
Estimated tax effect of adjustments(2)
|
|
|
(36.6
|
)
|
|
(42.7
|
)
|
|
(5.7
|
)
|
|
(4.4
|
)
|
|
(6.5
|
)
|
|
(6.1
|
)
|
|
(22.7
|
)
|
|
Discrete income tax expense/(benefit) items(3)
|
|
|
(110.5
|
)
|
|
(130.9
|
)
|
|
(0.6
|
)
|
|
(2.8
|
)
|
|
0.4
|
|
|
(5.9
|
)
|
|
(8.9
|
)
|
|
Adjusted net income
|
|
|
$
|
33.0
|
|
|
$
|
167.9
|
|
|
$
|
23.0
|
|
|
$
|
38.9
|
|
|
$
|
26.4
|
|
|
$
|
64.9
|
|
|
$
|
153.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Refer to the Company's description of non-GAAP measures including
Adjusted Net Income as referenced above.
|
(1)
|
|
Represents the amortization attributable to purchase accounting for
previously completed business combinations.
|
|
(2)
|
|
The tax effect of adjustments to Adjusted Net Income is computed by
applying the statutory tax rate in the jurisdictions to the income
or expense items which are adjusted in the period presented; if a
valuation allowance exists, the rate applied is zero.
|
|
(3)
|
|
Discrete period income tax expense / (benefit) items are unusual or
infrequently occurring items primarily including: changes in
judgment related to the realizability of deferred tax assets in
future years, changes in measurement of a prior year tax position,
deferred tax impact of changes in tax law, and purchase accounting.
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
|
|
Reconciliation of Net Earnings/(Loss) to Adjusted Net
Income/(Loss)
|
|
(Dollars in millions)
|
|
|
Note:
In response to a recent
regulatory focus on Non-GAAP performance metrics, the Company has
revised the calculation for Adjusted Net Income by replacing the cash
tax effects in the periods presented with the income tax expense,
discrete tax items and estimated tax effect of reconciling items as
described in the footnotes herein. Prior years end and interim
periods presented have been re-cast to reflect the revised calculation.
|
|
|
|
Year Ended
|
|
Quarter Ended
|
|
Year
Ended
|
|
|
|
|
June 30,
2013
|
|
June 30,
2014
|
|
September
30, 2014
|
|
December
31, 2014
|
|
March 31,
2015
|
|
June 30,
2015
|
|
June 30,
2015
|
|
Net earnings / (loss)
|
|
|
$
|
(49.7
|
)
|
|
$
|
15.2
|
|
|
$
|
(19.9
|
)
|
|
$
|
46.0
|
|
|
$
|
30.8
|
|
|
$
|
153.4
|
|
|
$
|
210.3
|
|
|
Net earnings/(loss) from discontinued operations, net of tax
|
|
|
1.2
|
|
|
(2.7
|
)
|
|
0.4
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
Earnings/(loss) from continuing operations, net of tax
|
|
|
(50.9
|
)
|
|
17.9
|
|
|
(20.3
|
)
|
|
46.2
|
|
|
30.8
|
|
|
153.5
|
|
|
210.2
|
|
|
Amortization (1)
|
|
|
43.4
|
|
|
42.5
|
|
|
11.3
|
|
|
11.6
|
|
|
11.8
|
|
|
11.8
|
|
|
46.5
|
|
|
Net (earnings)/loss attributable to noncontrolling interest, net of
tax
|
|
|
0.1
|
|
|
1.0
|
|
|
0.4
|
|
|
0.5
|
|
|
0.7
|
|
|
0.3
|
|
|
1.9
|
|
|
Equity compensation
|
|
|
2.8
|
|
|
4.5
|
|
|
1.5
|
|
|
2.7
|
|
|
2.2
|
|
|
2.6
|
|
|
9.0
|
|
|
Impairment charges and loss on sale of assets
|
|
|
5.2
|
|
|
3.2
|
|
|
—
|
|
|
3.5
|
|
|
0.3
|
|
|
0.9
|
|
|
4.7
|
|
|
Financing related expenses
|
|
|
16.9
|
|
|
11.0
|
|
|
20.6
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
21.8
|
|
|
U.S. GAAP restructuring
|
|
|
18.4
|
|
|
19.7
|
|
|
1.4
|
|
|
2.1
|
|
|
5.2
|
|
|
4.7
|
|
|
13.4
|
|
|
Acquisition, integration and other special items
|
|
|
15.5
|
|
|
9.8
|
|
|
3.2
|
|
|
4.4
|
|
|
2.5
|
|
|
3.7
|
|
|
13.8
|
|
|
Foreign exchange loss/(gain) (included in other (income)/expense,
net)
|
|
|
5.7
|
|
|
(3.5
|
)
|
|
(3.7
|
)
|
|
0.5
|
|
|
(1.0
|
)
|
|
1.5
|
|
|
(2.7
|
)
|
|
Other adjustments
|
|
|
4.2
|
|
|
0.3
|
|
|
23.8
|
|
|
(3.2
|
)
|
|
1.2
|
|
|
1.1
|
|
|
22.9
|
|
|
Sponsor advisory fee
|
|
|
12.4
|
|
|
12.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Estimated tax effect of adjustments(2)
|
|
|
(14.2
|
)
|
|
(8.3
|
)
|
|
(1.1
|
)
|
|
(2.2
|
)
|
|
(2.8
|
)
|
|
(36.6
|
)
|
|
(42.7
|
)
|
|
Discrete income tax expense/(benefit)
items (3)
|
|
|
13.1
|
|
|
22.3
|
|
|
(4.8
|
)
|
|
(15.2
|
)
|
|
(0.4
|
)
|
|
(110.5
|
)
|
|
(130.9
|
)
|
|
Adjusted net income
|
|
|
$
|
72.6
|
|
|
$
|
133.3
|
|
|
$
|
32.3
|
|
|
$
|
52.1
|
|
|
$
|
50.5
|
|
|
$
|
33.0
|
|
|
$
|
167.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments made to revise previously reported Adjusted Net
Income:
|
|
Income tax expense/(benefit) (4)
|
|
|
27.0
|
|
|
49.5
|
|
|
(14.0
|
)
|
|
(4.1
|
)
|
|
11.2
|
|
|
(90.8
|
)
|
|
(97.7
|
)
|
|
Cash taxes (paid)/refunded (4)
|
|
|
(14.2
|
)
|
|
(21.1
|
)
|
|
(9.9
|
)
|
|
(8.2
|
)
|
|
(5.6
|
)
|
|
(10.8
|
)
|
|
(34.5
|
)
|
|
Estimated cash tax (savings)/expense attributable to reconciling
items (4)
|
|
|
(4.1
|
)
|
|
(5.3
|
)
|
|
(0.9
|
)
|
|
(1.3
|
)
|
|
(1.7
|
)
|
|
(1.9
|
)
|
|
(5.8
|
)
|
|
Discrete income tax expense/(benefit) items(2)
|
|
|
(13.1
|
)
|
|
(22.3
|
)
|
|
4.8
|
|
|
15.2
|
|
|
0.4
|
|
|
110.5
|
|
|
130.9
|
|
|
Estimated tax effect of adjustments(3)
|
|
|
14.2
|
|
|
8.3
|
|
|
1.1
|
|
|
2.2
|
|
|
2.8
|
|
|
36.6
|
|
|
42.7
|
|
|
Previously Reported Adjusted Net Income
|
|
|
$
|
82.4
|
|
|
$
|
142.4
|
|
|
$
|
13.4
|
|
|
$
|
55.9
|
|
|
$
|
57.6
|
|
|
$
|
76.6
|
|
|
$
|
203.5
|
|
|
(1)
|
|
Represents the amortization attributable to purchase accounting for
previously completed business combinations.
|
|
(2)
|
|
The tax effect of adjustments to Adjusted Net Income is computed by
applying the statutory tax rate in the jurisdictions to the income
or expense items which are adjusted in the period presented; if a
valuation allowance exists, the rate applied is zero.
|
|
(3)
|
|
Discrete period income tax expense / (benefit) items are unusual or
infrequently occurring items primarily including: changes in
judgment related to the realizability of deferred tax assets in
future years, changes in measurement of a prior year tax position,
deferred tax impact of changes in tax law, and purchase accounting.
|
|
(4)
|
|
Represents the cash basis tax adjustments which were removed from
the previous Adjusted Net Income calculation.
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Consolidated
Balance Sheets
(Dollars in millions)
|
|
|
|
|
|
|
June 30,
2016
|
|
June 30,
2015
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
131.6
|
|
|
$
|
151.3
|
|
Trade receivables, net
|
|
|
414.8
|
|
|
372.4
|
|
Inventories
|
|
|
154.8
|
|
|
132.9
|
|
Prepaid expenses and other
|
|
|
89.0
|
|
|
80.9
|
|
Total current assets
|
|
|
790.2
|
|
|
737.5
|
|
Property, plant, and equipment, net
|
|
|
905.8
|
|
|
885.2
|
|
Other non-current assets, including intangible assets
|
|
|
1,395.1
|
|
|
1,515.6
|
|
Total assets
|
|
|
$
|
3,091.1
|
|
|
$
|
3,138.3
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND
SHAREHOLDERS' EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
|
Current portion of long-term obligations and other short-term
borrowings
|
|
|
$
|
27.7
|
|
|
$
|
23.8
|
|
Accounts payable
|
|
|
143.7
|
|
|
128.2
|
|
Other accrued liabilities
|
|
|
219.8
|
|
|
247.0
|
|
Total current liabilities
|
|
|
391.2
|
|
|
399.0
|
|
Long-term obligations, less current portion
|
|
|
1,832.8
|
|
|
1,857.0
|
|
Other non-current liabilities
|
|
|
231.2
|
|
|
242.5
|
|
Redeemable noncontrolling interest
|
|
|
—
|
|
|
5.8
|
|
Commitment and contingencies (1)
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
635.9
|
|
|
634.0
|
|
Total liabilities, redeemable noncontrolling interest and
shareholders' equity
|
|
|
$
|
3,091.1
|
|
|
$
|
3,138.3
|
(1) Please refer to note 16 of the consolidated financial statements
within the Company’s Annual Report on Form 10-K for the fiscal year
ended June 30, 2016.
|
|
|
Catalent, Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
(Dollars in millions)
|
|
|
|
|
|
|
Twelve Months Ended
June 30,
|
|
|
|
|
2016
|
|
2015
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net cash provided by/(used in) operating activities from continuing
operations
|
|
|
$
|
155.3
|
|
|
$
|
171.7
|
|
|
Net cash provided by/(used in) operating activities from
discontinued operations
|
|
|
—
|
|
|
0.1
|
|
|
Net cash provided by/(used in) operating activities
|
|
|
155.3
|
|
|
171.8
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Acquisition of property and equipment and other productive assets
|
|
|
(139.6
|
)
|
|
(141.0
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
1.9
|
|
|
—
|
|
|
Payment for acquisitions, net
|
|
|
—
|
|
|
(130.8
|
)
|
|
Net cash provided by/(used in) investing activities from continuing
operations
|
|
|
(137.7
|
)
|
|
(271.8
|
)
|
|
Net cash provided by/(used in) investing activities from
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
Net cash provided by/(used in) investing activities
|
|
|
(137.7
|
)
|
|
(271.8
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Net change in short-term borrowings
|
|
|
2.3
|
|
|
—
|
|
|
Proceeds from borrowing, net
|
|
|
—
|
|
|
150.4
|
|
|
Payments related to long-term obligations
|
|
|
(18.6
|
)
|
|
(879.8
|
)
|
|
Call premium payments and financing fees paid
|
|
|
—
|
|
|
(12.6
|
)
|
|
Equity contribution/(redemption)
|
|
|
—
|
|
|
948.8
|
|
|
Purchase of Redeemable Noncontrolling Interest Shares
|
|
|
(5.8
|
)
|
|
—
|
|
|
Cash paid, in lieu of equity, for tax withholding obligations
|
|
|
(8.7
|
)
|
|
(10.3
|
)
|
|
Net cash (used in)/provided by financing activities from continuing
operations
|
|
|
(30.8
|
)
|
|
196.5
|
|
|
Net cash (used in)/provided by financing activities from
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
Net cash (used in)/provided by financing activities
|
|
|
(30.8
|
)
|
|
196.5
|
|
|
Effect of foreign currency on cash
|
|
|
(6.5
|
)
|
|
(19.6
|
)
|
|
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS
|
|
|
(19.7
|
)
|
|
76.9
|
|
|
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
151.3
|
|
|
74.4
|
|
|
CASH AND EQUIVALENTS AT END OF PERIOD
|
|
|
$
|
131.6
|
|
|
$
|
151.3
|
|
Investors:
Catalent, Inc.
Thomas Castellano, 732-537-6325
investors@catalent.com