- Revenue decreased 2% as reported and increased 2% in constant currency to $438.0 million from third quarter 2015
- Adjusted Net Income(1) totaled $25.0 million, or $0.20 per diluted share
- Full resolution of Beinheim facility license suspension; license reinstated April 28th, 2016
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
third quarter of fiscal year 2016, which ended March 31, 2016.
Third quarter 2016 revenue of $438.0 million decreased 2% as reported
and increased 2% in constant currency from $446.6 million reported in
the third quarter a year ago. The increase on a constant currency basis
was attributable to strong performance of the Medication Delivery
Solutions and Development and Clinical Services segments, which was
partially offset by a decrease in the Oral Technologies segment. For the
first nine months of fiscal year 2016, revenue was $1.32 billion, in
line with the prior year as reported and an increase of 6% in constant
currency. All three of the Company’s reporting segments have posted
constant currency revenue growth year-to-date, led by a double-digit
increase in the Development and Clinical Services segment.
Third quarter 2016 net earnings attributable to Catalent were $9.8
million, or $0.08 per diluted share, compared to net earnings of $31.5
million, or $0.25 per diluted share, in the third quarter a year ago.
The decrease in profitability was primarily due to lower sales and
higher operating expenses compared to the prior-year period. For the
first nine months of fiscal year 2016, net earnings attributable to
Catalent were $49.6 million, or $0.39 per diluted share, compared to net
earnings of $58.5 million, or $0.49 per diluted share, for the same
period a year ago.
Third quarter 2016 EBITDA from continuing operations of $70.5 million
decreased 30% from $100.1 million in the third quarter a year ago. For
the first nine months of fiscal year 2016, EBITDA from continuing
operations was $240.1 million, an increase of 1% from $238.4 million for
the same period a year ago.
Third quarter 2016 Adjusted EBITDA, as referenced in the GAAP to
non-GAAP reconciliation provided later in this release, was $80.7
million, or 18.4% of revenue, compared to $110.5 million, or 24.7% of
revenue, in the third quarter a year ago. On a constant currency basis,
third quarter 2016 Adjusted EBITDA was $87.2 million, compared to $110.5
million a year ago.
Third quarter 2016 Adjusted Net Income, as referenced in the GAAP to
non-GAAP reconciliation provided later in this release, was $25.0
million, or $0.20 per diluted share, compared to Adjusted Net Income of
$50.5 million, or $0.40 per diluted share, in the third quarter a year
ago.
"Our third quarter operational performance was impacted by the
challenges we faced in our Oral Technologies segment related to the
Beinheim facility temporary suspension. We are very pleased to announce
that on April 28th, the ANSM reinstated the Beinheim GMP license,” said
John Chiminski, President and Chief Executive Officer of Catalent, Inc.
“While it took longer than we had anticipated to bring the facility back
on line, we remain encouraged by the underlying trends across our
softgel business. Our focus for the remainder of the fiscal year will be
on growth in Oral Technologies and continuing to build on the momentum
in our other two business segments.”
Third Quarter 2016 Segment Highlights
Revenue Highlights by Business Segment
Revenue from the Oral Technologies segment was $260.8 million for the
third quarter of fiscal 2016, a decrease of 8% as reported, or a
decrease of 3% in constant currency, compared to the third quarter a
year ago. This performance on a constant currency basis was attributable
to the temporary suspension of operations of the Company’s facility in
Beinheim, France during the third quarter, lower volume of certain
higher margin offerings within the Company’s modified release
technologies, and lower revenue from product participation-related
activities, partially offset by higher consumer health volume for
certain softgel products.
Revenue from the Development and Clinical Services segment was $112.6
million for the third quarter of fiscal 2016, an increase of 9% as
reported, or an increase of 11% in constant currency, over the third
quarter a year ago. This growth was primarily driven by the Company’s
clinical services offerings attributed to increased lower-margin
comparator sourcing volume, as well as improved performance of
analytical services in the U.S. related to fee-for-service development
work.
Revenue from the Medication Delivery Solutions segment was $68.3 million
for the third quarter of fiscal 2016, an increase of 12% both as
reported and in constant currency over the third quarter a year ago.
This strong performance was primarily due to increased volume of the
Company’s biologics offering and products utilizing the blow-fill-seal
technology platform, as well as increased demand for the Company’s
injectable products at its European pre-filled syringe operations.
Segment EBITDA Highlights
Oral Technologies segment EBITDA in the third quarter of 2016 was $55.6
million, a decrease of 32% as reported, or a decrease of 25% in constant
currency, versus the third quarter a year ago. The decrease was
primarily attributable to the temporary suspension of operations of the
softgel facility in Beinheim, France, and reduced volume of certain
higher margin offerings within the Company’s modified release
technologies platform. This was partially offset by higher sales and
more effective absorption of fixed costs through higher capacity
utilization within the Company’s softgel operations.
Development and Clinical Services segment EBITDA in the third quarter of
2016 was $19.7 million, a decrease of 17% as reported, or a decrease of
15% in constant currency. The decrease was primarily due to a shift to
lower-margin comparator sourcing volume and increased costs related to
business reorganization efforts to further streamline the clinical
services business.
Medication Delivery Solutions segment EBITDA in the third quarter of
2016 was $12.1 million, an increase of 11% as reported, or an increase
of 12% in constant currency. The increase was primarily attributable to
increased profit generated by the Company’s biologics and blow-fill-seal
technology offerings, as well as increased volume and favorable revenue
mix shift from the Company’s injectable products at its European
pre-filled syringe operations.
First Nine Months of Fiscal 2016 Segment Highlights
Revenue Highlights by Business Segment
Revenue from the Oral Technologies segment was $763.6 million for the
first nine months of fiscal year 2016, a decrease of 7% as reported, or
an increase of 1% in constant currency, over the same period a year ago.
This improvement on a constant currency basis was attributable to
organic consumer health revenue growth within the Company’s softgel
offering, partially offset by the temporary suspension of operations of
the facility in Beinheim, France, lower volume of certain higher margin
offerings within the Company’s modified release technologies platform in
the U.S., and lower revenue from product participation-related
activities.
Revenue from the Development and Clinical Services segment was $367.1
million for the first nine months of fiscal year 2016, an increase of
17% as reported, or an increase of 19% in constant currency, over the
same period a year ago. This strong growth was primarily attributable to
increased organic revenue in the analytical services business driven by
the timing of resolution of volume commitments and increased sales
volume related to fee for service development work and analytical
testing in the U.S., as well as organic growth in clinical services due
primarily to increased lower-margin comparator sourcing volume.
Revenue from the Medication Delivery Solutions segment was $195.1
million for the first nine months of fiscal year 2016, an increase of 2%
as reported, or an increase of 6% in constant currency, over the same
period a year ago. This growth was primarily due to increased volume of
the Company’s biologics offerings and for products utilizing the
blow-fill-seal technology platform. The increase was partially offset by
a decrease in revenue due to the resolution of volume commitments within
the Company’s blow-fill-seal technology platform that were recorded in
the prior year period, and by lower volume of injectable products at the
Company’s European pre-filled syringe operations.
Segment EBITDA Highlights
Oral Technologies segment EBITDA for the first nine months of fiscal
year 2016 was $165.8 million, a decrease of 23% as reported, or a
decrease of 15% on a constant currency basis. The decrease was driven by
the temporary suspension of operations at the Company’s facility in
Beinheim, France and lower volume of certain higher margin offerings
within the Company’s modified release technologies platform. These
declines were partially offset by higher sales and more effective
absorption of fixed costs through higher capacity utilization within the
Company’s softgel business.
Development and Clinical Services segment EBITDA for the first nine
months of fiscal year 2016 was $80.9 million, an increase of 21% as
reported, or an increase of 24% in constant currency. This strong EBITDA
improvement was primarily attributable to the timing of resolution of
volume commitments and increased sales volume across the segment, as
well as contribution from the Micron acquisition.
Medication Delivery Solutions segment EBITDA for the first nine months
of fiscal year 2016 was $37.1 million, a decrease of 5% as reported, or
a decrease of 2% in constant currency. This decrease was primarily
attributable to the resolution of volume commitments that were recorded
in the prior year period related to the Company's blow-fill-seal
technology platform and incremental resource commitments to the Redwood
Bioscience business. These decreases were partially offset by higher
profit generated from the Company’s biologics offerings and from
products utilizing its blow-fill-seal technology platform.
Additional Financial Highlights
Third quarter 2016 gross margin of 28.8% declined 530 basis points from
34.1% in the third quarter a year ago on a constant currency basis. The
decrease was primarily driven by an unfavorable shift in revenue mix
within the Company’s Oral Technologies segment and increased
lower-margin comparator sourcing volume in the Company’s clinical
services business within its Development and Clinical Services segment.
For the first nine months of fiscal year 2016, gross margin was 30.4%, a
decrease of 240 basis points from 32.8% for the same period a year ago
on a constant currency basis. The decrease was primarily attributable to
an unfavorable shift in revenue mix within the Company’s Oral
Technologies segment and the timing of the resolution of volume
commitments within its Medication Delivery Solutions segment.
Third quarter 2016 selling, general and administrative expenses were
$93.2 million and represented 21.3% of revenue, compared to $80.9
million, or 18.1% of revenue, in the third quarter a year ago. For the
first nine months of fiscal 2016, selling, general and administrative
expenses were $268.4 million and represented 20.4% of revenue, compared
to $250.4 million, or 19.0% of revenue, for the same period a year ago.
Backlog for the Development and Clinical Services segment was $454.9
million as of March 31, 2016, a 5% increase compared to the second
quarter of fiscal year 2016. The segment also recorded net new business
wins of $129.2 million during the third quarter, which represented a 15%
increase year over year. The segment’s trailing-twelve-month
book-to-bill ratio was 1.1x.
Balance Sheet and Liquidity
As of March 31, 2016, Catalent had $1.9 billion in total debt,
essentially unchanged compared to the debt level as of June 30, 2015. As
of March 31, 2016, Catalent’s leverage ratio was 4.4x, compared to 3.9x
as of June 30, 2015.
Fiscal Year 2016 Outlook
The Company is lowering certain elements of its previously issued
financial guidance for fiscal year 2016, primarily due to the Beinheim
facility suspension. Adjusted EBITDA is now expected in the range of
$400 million to $410 million, compared to the previous range of $410
million to $435 million. Adjusted Net Income is now expected in the
range of $145 million to $160 million, compared to the previous range of
$185 million to $205 million. With respect to revenue, the company is
narrowing its guidance range and now expects revenue to be in the range
of $1.80 billion to $1.84 billion compared to the previous range of
$1.78 billion to $1.84 billion. The Company is reiterating its previous
guidance with respect to capital expenditures in the range of $125
million to $135 million and fully diluted share count in the range of
125 million to 127 million shares.
(1) Please refer to the Reconciliation of Net
Earnings/(Loss) to Adjusted Net Income/(Loss) provided later in this
release for explanatory note on revision to Adjusted Net Income.
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 8,700
people, including over 1,000 scientists, at 31 facilities across 5
continents and in fiscal 2015 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
(Unaudited; Dollars in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
Change $
|
|
Change %
|
|
Net revenue
|
|
|
|
$
|
438.0
|
|
|
$
|
446.6
|
|
|
$
|
(16.9
|
)
|
|
$
|
8.3
|
|
|
2
|
%
|
|
Cost of sales
|
|
|
|
311.8
|
|
|
294.4
|
|
|
(10.4
|
)
|
|
27.8
|
|
|
9
|
%
|
|
Gross margin
|
|
|
|
126.2
|
|
|
152.2
|
|
|
(6.5
|
)
|
|
(19.5
|
)
|
|
(13
|
)%
|
|
Selling, general and administrative expenses
|
|
|
|
93.2
|
|
|
80.9
|
|
|
(1.6
|
)
|
|
13.9
|
|
|
17
|
%
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
|
|
(0.3
|
)
|
|
0.3
|
|
|
0.2
|
|
|
(0.8
|
)
|
|
*
|
|
Restructuring and other
|
|
|
|
1.8
|
|
|
5.2
|
|
|
—
|
|
|
(3.4
|
)
|
|
(65
|
)%
|
|
Operating earnings/(loss)
|
|
|
|
31.5
|
|
|
65.8
|
|
|
(5.1
|
)
|
|
(29.2
|
)
|
|
(44
|
)%
|
|
Interest expense, net
|
|
|
|
21.7
|
|
|
23.0
|
|
|
(0.3
|
)
|
|
(1.0
|
)
|
|
(4
|
)%
|
|
Other (income)/expense, net
|
|
|
|
(4.2
|
)
|
|
0.8
|
|
|
0.6
|
|
|
(5.6
|
)
|
|
*
|
|
Earnings/(loss) from continuing operations, before income taxes
|
|
|
|
14.0
|
|
|
42.0
|
|
|
(5.4
|
)
|
|
(22.6
|
)
|
|
(54
|
)%
|
|
Income tax expense/(benefit)
|
|
|
|
4.2
|
|
|
11.2
|
|
|
(2.4
|
)
|
|
(4.6
|
)
|
|
(41
|
)%
|
|
Earnings/(loss) from continuing operations
|
|
|
|
9.8
|
|
|
30.8
|
|
|
(3.0
|
)
|
|
(18.0
|
)
|
|
(58
|
)%
|
|
Net earnings/(loss) from discontinued operations, net of tax
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
*
|
|
Net earnings/(loss)
|
|
|
|
9.8
|
|
|
30.8
|
|
|
(3.0
|
)
|
|
(18.0
|
)
|
|
(58
|
)%
|
|
Less: Net earnings/(loss) attributable to noncontrolling interest,
net of tax
|
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
0.7
|
|
|
*
|
|
Net earnings/(loss) attributable to Catalent
|
|
|
|
$
|
9.8
|
|
|
$
|
31.5
|
|
|
$
|
(3.0
|
)
|
|
$
|
(18.7
|
)
|
|
(59
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations less net income (loss)
attributable to noncontrolling interest
|
|
|
|
9.8
|
|
|
31.5
|
|
|
|
|
|
|
|
|
Net earnings/(loss) attributable to Catalent
|
|
|
|
9.8
|
|
|
31.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
125.8
|
|
|
126.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
|
0.08
|
|
|
0.25
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
|
0.08
|
|
|
0.25
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
|
0.08
|
|
|
0.25
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
|
0.08
|
|
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
Catalent, Inc. and Subsidiaries
Selected Segment Financial Data
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
Change $
|
|
Change %
|
|
Oral Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
$
|
260.8
|
|
|
$
|
284.0
|
|
|
$
|
(14.6
|
)
|
|
$
|
(8.6
|
)
|
|
(3
|
)%
|
|
Segment EBITDA
|
|
|
|
|
55.6
|
|
|
81.7
|
|
|
(5.5
|
)
|
|
(20.6
|
)
|
|
(25
|
)%
|
|
Medication Delivery Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
68.3
|
|
|
61.2
|
|
|
(0.4
|
)
|
|
7.5
|
|
|
12
|
%
|
|
Segment EBITDA
|
|
|
|
|
12.1
|
|
|
10.9
|
|
|
(0.1
|
)
|
|
1.3
|
|
|
12
|
%
|
|
Development and Clinical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
112.6
|
|
|
103.7
|
|
|
(2.0
|
)
|
|
10.9
|
|
|
11
|
%
|
|
Segment EBITDA
|
|
|
|
|
19.7
|
|
|
23.8
|
|
|
(0.5
|
)
|
|
(3.6
|
)
|
|
(15
|
)%
|
|
Inter-segment revenue elimination
|
|
|
|
|
(3.7
|
)
|
|
(2.3
|
)
|
|
0.1
|
|
|
(1.5
|
)
|
|
65
|
%
|
|
Unallocated Costs
|
|
|
|
|
(16.9
|
)
|
|
(16.3
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
*
|
|
Combined Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
$
|
438.0
|
|
|
$
|
446.6
|
|
|
$
|
(16.9
|
)
|
|
$
|
8.3
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
|
|
|
|
$
|
70.5
|
|
|
$
|
100.1
|
|
|
$
|
(6.7
|
)
|
|
$
|
(22.9
|
)
|
|
(23
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited; Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
Change $
|
|
Change %
|
|
Net revenue
|
|
|
|
$
|
1,315.9
|
|
|
$
|
1,320.7
|
|
|
$
|
(85.2
|
)
|
|
$
|
80.4
|
|
|
6
|
%
|
|
Cost of sales
|
|
|
|
916.1
|
|
|
887.1
|
|
|
(63.7
|
)
|
|
92.7
|
|
|
10
|
%
|
|
Gross margin
|
|
|
|
399.8
|
|
|
433.6
|
|
|
(21.5
|
)
|
|
(12.3
|
)
|
|
(3
|
)%
|
|
Selling, general and administrative expenses
|
|
|
|
268.4
|
|
|
250.4
|
|
|
(8.6
|
)
|
|
26.6
|
|
|
11
|
%
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
|
|
0.8
|
|
|
3.8
|
|
|
0.3
|
|
|
(3.3
|
)
|
|
(87
|
)%
|
|
Restructuring and other
|
|
|
|
3.4
|
|
|
8.7
|
|
|
(0.1
|
)
|
|
(5.2
|
)
|
|
(60
|
)%
|
|
Operating earnings/(loss)
|
|
|
|
127.2
|
|
|
170.7
|
|
|
(13.1
|
)
|
|
(30.4
|
)
|
|
(18
|
)%
|
|
Interest expense, net
|
|
|
|
66.7
|
|
|
82.4
|
|
|
(1.4
|
)
|
|
(14.3
|
)
|
|
(17
|
)%
|
|
Other (income)/expense, net
|
|
|
|
(7.1
|
)
|
|
38.5
|
|
|
(2.3
|
)
|
|
(43.3
|
)
|
|
*
|
|
Earnings/(loss) from continuing operations before income taxes
|
|
|
|
67.6
|
|
|
49.8
|
|
|
(9.4
|
)
|
|
27.2
|
|
|
55
|
%
|
|
Income tax expense/(benefit)
|
|
|
|
18.3
|
|
|
(6.9
|
)
|
|
(3.2
|
)
|
|
28.4
|
|
|
*
|
|
Earnings/(loss) from continuing operations
|
|
|
|
49.3
|
|
|
56.7
|
|
|
(6.2
|
)
|
|
(1.2
|
)
|
|
(2
|
)%
|
|
Net earnings/(loss) from discontinued operations, net of tax
|
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
(0.2
|
)
|
|
*
|
|
Net earnings/(loss)
|
|
|
|
49.3
|
|
|
56.9
|
|
|
(6.2
|
)
|
|
(1.4
|
)
|
|
(2
|
)%
|
|
Less: Net earnings/(loss) attributable to noncontrolling interest,
net of tax
|
|
|
|
(0.3
|
)
|
|
(1.6
|
)
|
|
—
|
|
|
1.3
|
|
|
(81
|
)%
|
|
Net earnings/(loss) attributable to Catalent
|
|
|
|
$
|
49.6
|
|
|
$
|
58.5
|
|
|
$
|
(6.2
|
)
|
|
$
|
(2.7
|
)
|
|
(5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations less net income (loss)
attributable to noncontrolling interest
|
|
|
|
49.6
|
|
|
58.3
|
|
|
|
|
|
|
|
|
Net earnings/(loss) attributable to Catalent
|
|
|
|
49.6
|
|
|
58.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
125.9
|
|
|
119.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
|
0.40
|
|
|
0.50
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
|
0.40
|
|
|
0.50
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) from continuing operations
|
|
|
|
0.39
|
|
|
0.49
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
|
|
0.39
|
|
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
Catalent, Inc. and Subsidiaries
Selected Segment Financial Data
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
FX impact
(unfavorable) /
favorable
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
Change $
|
|
Change %
|
|
Oral Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
$
|
763.6
|
|
|
$
|
822.3
|
|
|
$
|
(69.8
|
)
|
|
$
|
11.1
|
|
|
1
|
%
|
|
Segment EBITDA
|
|
|
|
|
165.8
|
|
|
214.1
|
|
|
(16.0
|
)
|
|
(32.3
|
)
|
|
(15
|
)%
|
|
Medication Delivery Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
195.1
|
|
|
191.8
|
|
|
(7.6
|
)
|
|
10.9
|
|
|
6
|
%
|
|
Segment EBITDA
|
|
|
|
|
37.1
|
|
|
38.9
|
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
(2
|
)%
|
|
Development and Clinical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
367.1
|
|
|
314.6
|
|
|
(7.9
|
)
|
|
60.4
|
|
|
19
|
%
|
|
Segment EBITDA
|
|
|
|
|
80.9
|
|
|
67.1
|
|
|
(2.1
|
)
|
|
15.9
|
|
|
24
|
%
|
|
Inter-segment revenue elimination
|
|
|
|
|
(9.9
|
)
|
|
(8.0
|
)
|
|
0.1
|
|
|
(2.0
|
)
|
|
25
|
%
|
|
Unallocated Costs
|
|
|
|
|
(43.7
|
)
|
|
(81.7
|
)
|
|
2.5
|
|
|
35.5
|
|
|
(43
|
)%
|
|
Combined Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
$
|
1,315.9
|
|
|
$
|
1,320.7
|
|
|
$
|
(85.2
|
)
|
|
$
|
80.4
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
|
|
|
|
$
|
240.1
|
|
|
$
|
238.4
|
|
|
$
|
(16.5
|
)
|
|
$
|
18.2
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
March 31,
2015
|
|
June 30,
2015
|
|
September 30,
2015
|
|
December 31,
2015
|
|
March 31,
2016
|
|
March 31,
2016
|
|
Earnings/(loss) from continuing operations
|
|
|
|
|
$
|
30.8
|
|
|
$
|
153.5
|
|
|
$
|
8.9
|
|
|
$
|
30.6
|
|
|
$
|
9.8
|
|
|
$
|
202.8
|
|
|
Interest expense, net
|
|
|
|
|
23.0
|
|
|
22.6
|
|
|
22.7
|
|
|
22.3
|
|
|
21.7
|
|
|
89.3
|
|
|
Income tax expense/(benefit)
|
|
|
|
|
11.2
|
|
|
(90.8
|
)
|
|
4.9
|
|
|
9.2
|
|
|
4.2
|
|
|
(72.5
|
)
|
|
Depreciation and amortization
|
|
|
|
|
34.4
|
|
|
36.2
|
|
|
35.5
|
|
|
35.2
|
|
|
34.8
|
|
|
141.7
|
|
|
Noncontrolling interest
|
|
|
|
|
0.7
|
|
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
0.6
|
|
|
EBITDA from continuing operations
|
|
|
|
|
100.1
|
|
|
121.8
|
|
|
72.2
|
|
|
97.4
|
|
|
70.5
|
|
|
361.9
|
|
|
Equity compensation
|
|
|
|
|
2.2
|
|
|
2.6
|
|
|
2.5
|
|
|
2.6
|
|
|
3.4
|
|
|
11.1
|
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
|
|
|
0.3
|
|
|
0.9
|
|
|
1.2
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
1.7
|
|
|
Financing related expenses
and other
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
US GAAP Restructuring
|
|
|
|
|
5.2
|
|
|
4.7
|
|
|
1.0
|
|
|
0.6
|
|
|
1.8
|
|
|
8.1
|
|
|
Acquisition, integration and other special items
|
|
|
|
|
2.5
|
|
|
3.7
|
|
|
1.0
|
|
|
3.6
|
|
|
7.8
|
|
|
16.1
|
|
|
Foreign Exchange loss/(gain) (included in other, net) (1)
|
|
|
|
|
(1.0
|
)
|
|
1.5
|
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
(2.0
|
)
|
|
(4.3
|
)
|
|
Other adjustments
|
|
|
|
|
1.2
|
|
|
1.1
|
|
|
0.2
|
|
|
0.3
|
|
|
(0.5
|
)
|
|
1.1
|
|
|
Subtotal
|
|
|
|
|
110.5
|
|
|
136.3
|
|
|
77.6
|
|
|
101.1
|
|
|
80.7
|
|
|
395.7
|
|
|
Estimated cost savings
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
110.5
|
|
|
$
|
136.3
|
|
|
$
|
77.6
|
|
|
$
|
101.1
|
|
|
$
|
80.7
|
|
|
$
|
395.7
|
|
|
FX impact (unfavorable)
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
(6.5
|
)
|
|
|
|
Adjusted EBITDA - Constant Currency
|
|
|
|
|
110.5
|
|
|
|
|
|
|
|
|
87.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Foreign exchange gain of $4.3 million for the twelve months ended
March 31, 2016 included $12.2 million of non-cash unrealized foreign
currency exchange rate gains primarily driven by gains of $11.3
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 $7.9 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/(Loss)
(Unaudited;
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 year end and interim
periods presented have been re-cast to reflect the revised calculation.
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Quarter Ended
|
|
|
|
|
|
June 30, 2015
|
|
March 31,
2015
|
|
June 30,
2015
|
|
September 30,
2015
|
|
December 31,
2015
|
|
March 31,
2016
|
|
Net earnings
|
|
|
|
$
|
210.3
|
|
|
$
|
30.8
|
|
|
$
|
153.4
|
|
|
$
|
8.9
|
|
|
$
|
30.6
|
|
|
$
|
9.8
|
|
|
Net earnings/(loss) from discontinued operations, net of tax
|
|
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Earnings/(loss) from continuing operations, net of tax
|
|
|
|
210.2
|
|
|
30.8
|
|
|
153.5
|
|
|
8.9
|
|
|
30.6
|
|
|
9.8
|
|
|
Amortization (1)
|
|
|
|
46.5
|
|
|
11.8
|
|
|
11.8
|
|
|
11.9
|
|
|
11.7
|
|
|
11.4
|
|
|
Net (earnings)/loss attributable to noncontrolling interest, net of
tax
|
|
|
|
1.9
|
|
|
0.7
|
|
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
Equity compensation
|
|
|
|
9.0
|
|
|
2.2
|
|
|
2.6
|
|
|
2.5
|
|
|
2.6
|
|
|
3.4
|
|
|
Impairment charges and loss on sale of assets
|
|
|
|
4.7
|
|
|
0.3
|
|
|
0.9
|
|
|
1.2
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
Financing related expenses
|
|
|
|
21.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
U.S. GAAP restructuring
|
|
|
|
13.4
|
|
|
5.2
|
|
|
4.7
|
|
|
1.0
|
|
|
0.6
|
|
|
1.8
|
|
|
Acquisition, integration and other special items
|
|
|
|
13.8
|
|
|
2.5
|
|
|
3.7
|
|
|
1.0
|
|
|
3.6
|
|
|
7.8
|
|
|
Foreign exchange loss/(gain) (included in other (income)/expense,
net)
|
|
|
|
(2.7
|
)
|
|
(1.0
|
)
|
|
1.5
|
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
(2.0
|
)
|
|
Other adjustments
|
|
|
|
22.9
|
|
|
1.2
|
|
|
1.1
|
|
|
0.2
|
|
|
0.3
|
|
|
(0.8
|
)
|
|
Discrete tax items(2)
|
|
|
|
(130.9
|
)
|
|
(0.4
|
)
|
|
(110.5
|
)
|
|
(0.6
|
)
|
|
(2.8
|
)
|
|
0.4
|
|
|
Estimated tax effect of adjustments(3)
|
|
|
|
(42.7
|
)
|
|
(2.8
|
)
|
|
(7.6
|
)
|
|
(5.7
|
)
|
|
(4.4
|
)
|
|
(6.5
|
)
|
|
Adjusted net income
|
|
|
|
$
|
167.9
|
|
|
$
|
50.5
|
|
|
$
|
62.0
|
|
|
$
|
20.1
|
|
|
$
|
38.9
|
|
|
$
|
25.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments made to revise previously reported Adjusted Net
Income:
|
|
|
|
Income tax expense/(benefit) (4)
|
|
|
|
(97.7
|
)
|
|
11.2
|
|
|
(90.8
|
)
|
|
4.9
|
|
|
9.2
|
|
|
|
|
Cash taxes (paid)/refunded (4)
|
|
|
|
(34.5
|
)
|
|
(5.6
|
)
|
|
(10.8
|
)
|
|
(10.0
|
)
|
|
(10.0
|
)
|
|
|
|
Estimated cash tax (savings)/expense attributable to reconciling
items (4)
|
|
|
|
(5.8
|
)
|
|
(1.7
|
)
|
|
(1.9
|
)
|
|
(0.6
|
)
|
|
(0.4
|
)
|
|
|
|
Discrete tax items(2)
|
|
|
|
130.9
|
|
|
0.4
|
|
|
110.5
|
|
|
0.6
|
|
|
2.8
|
|
|
|
|
Estimated tax effect of adjustments(3)
|
|
|
|
42.7
|
|
|
2.8
|
|
|
7.6
|
|
|
5.7
|
|
|
4.4
|
|
|
|
|
Previously Reported Adjusted Net Income
|
|
|
|
$
|
203.5
|
|
|
$
|
57.6
|
|
|
$
|
76.6
|
|
|
$
|
20.7
|
|
|
$
|
44.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents the amortization attributable to purchase accounting for
previously completed business combinations.
|
|
(2)
|
|
Discrete period tax 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.
|
|
(3)
|
|
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.
|
|
(4)
|
|
Represents the cash basis tax adjustments which were removed from
the previous Adjusted Net Income calculation.
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
June 30,
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
133.9
|
|
|
$
|
151.3
|
|
Trade receivables, net
|
|
|
|
343.7
|
|
|
372.4
|
|
Inventories
|
|
|
|
167.7
|
|
|
132.9
|
|
Prepaid expenses and other
|
|
|
|
82.2
|
|
|
80.9
|
|
Total current assets
|
|
|
|
727.5
|
|
|
737.5
|
|
Property, plant, and equipment, net
|
|
|
|
906.3
|
|
|
885.2
|
|
Other non-current assets, including intangible assets
|
|
|
|
1,423.9
|
|
|
1,515.6
|
|
Total assets
|
|
|
|
$
|
3,057.7
|
|
|
$
|
3,138.3
|
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND
SHAREHOLDERS' EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term obligations and other short-term
borrowings
|
|
|
|
$
|
25.9
|
|
|
$
|
23.8
|
|
Accounts payable
|
|
|
|
135.1
|
|
|
128.2
|
|
Other accrued liabilities
|
|
|
|
210.5
|
|
|
247.0
|
|
Total current liabilities
|
|
|
|
371.5
|
|
|
399.0
|
|
Long-term obligations, less current portion
|
|
|
|
1,844.9
|
|
|
1,857.0
|
|
Other non-current liabilities
|
|
|
|
238.4
|
|
|
242.5
|
|
Redeemable noncontrolling interest
|
|
|
|
—
|
|
|
5.8
|
|
Commitment and contingencies (1)
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
602.9
|
|
|
634.0
|
|
Total liabilities, redeemable noncontrolling interest and
shareholders' equity
|
|
|
|
$
|
3,057.7
|
|
|
$
|
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, 2015.
|
|
|
Catalent, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited; Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net cash provided by/(used in) operating activities from continuing
operations
|
|
|
|
|
$
|
121.4
|
|
|
$
|
94.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by/(used in) operating activities from
discontinued operations
|
|
|
|
|
—
|
|
|
0.2
|
|
|
Net cash provided by/(used in) operating activities
|
|
|
|
|
121.4
|
|
|
94.7
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment and other productive assets
|
|
|
|
|
(107.8
|
)
|
|
(108.7
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
|
|
—
|
|
|
—
|
|
|
Payment for acquisitions, net
|
|
|
|
|
—
|
|
|
(131.6
|
)
|
|
Net cash provided by/(used in) investing activities from continuing
operations
|
|
|
|
|
(107.8
|
)
|
|
(240.3
|
)
|
|
Net cash provided by/(used in) investing activities from
discontinued operations
|
|
|
|
|
—
|
|
|
—
|
|
|
Net cash provided by/(used in) investing activities
|
|
|
|
|
(107.8
|
)
|
|
(240.3
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net change in short-term borrowings
|
|
|
|
|
0.6
|
|
|
4.8
|
|
|
Proceeds from borrowing, net
|
|
|
|
|
—
|
|
|
150.4
|
|
|
Payments related to long-term obligations
|
|
|
|
|
(13.9
|
)
|
|
(874.8
|
)
|
|
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
|
|
|
|
|
(8.0
|
)
|
|
(7.6
|
)
|
|
Net cash (used in)/provided by financing activities from continuing
operations
|
|
|
|
|
(27.1
|
)
|
|
209.0
|
|
|
Net cash (used in)/provided by financing activities from
discontinued operations
|
|
|
|
|
—
|
|
|
—
|
|
|
Net cash (used in)/provided by financing activities
|
|
|
|
|
(27.1
|
)
|
|
209.0
|
|
|
Effect of foreign currency on cash
|
|
|
|
|
(3.9
|
)
|
|
(21.7
|
)
|
|
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS
|
|
|
|
|
(17.4
|
)
|
|
41.7
|
|
|
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
|
|
151.3
|
|
|
74.4
|
|
|
CASH AND EQUIVALENTS AT END OF PERIOD
|
|
|
|
|
$
|
133.9
|
|
|
$
|
116.1
|
|
Investors:
Catalent, Inc.
Thomas Castellano, 732-537-6325
[email protected]