- Q2'18 revenue of $606.3 million increased 25% as-reported, or 22% in constant currency from the prior-year period.
- Q2'18 YTD revenue of $1,150.2 million increased 24% as-reported, or 22% in constant currency from the prior-year period.
- FY’18 guidance raised to reflect continued strength in the business.
- Wetteny Joseph appointed as Chief Financial Officer.
Catalent, Inc. (NYSE: CTLT), the leading global provider of advanced
delivery technologies and development solutions for drugs, biologics and
consumer health products, today announced financial results for the
second quarter of fiscal 2018, which ended December 31, 2017.
Second quarter 2018 revenue of $606.3 million increased 25% as reported
and 22% in constant currency from $483.7 million reported in the second
quarter a year ago. For the first six months of fiscal year 2018,
revenue was $1,150.2 million and increased 24% as reported and 22% in
constant currency, compared to the $925.9 million recorded in the
prior-year period. All three of the Company’s reporting segments posted
constant-currency revenue growth for the second quarter and year-to-date
period when compared to the prior year.
Second quarter 2018 net loss was $21.9 million, or $0.16 per diluted
share, compared to net earnings of $17.4 million, or $0.14 per diluted
share, in the second quarter a year ago. For the first six months of
fiscal year 2018, net loss was $18.1 million, or $0.14 per diluted
share, compared to net earnings of $22.0 million, or $0.17 per diluted
share, in the same period of the prior year. During the second quarter,
the Company recorded a one-time net tax charge of $46.0 million as a
provisional estimate of the net accounting impact of the recently
enacted U.S. tax law changes.
Second quarter 2018 EBITDA from continuing operations of $102.0 million,
as referenced in the GAAP to non-GAAP reconciliation provided later in
this release, increased 20% from $85.2 million in the second quarter a
year ago. For the first six months of fiscal year 2018, EBITDA from
continuing operations was $167.2 million, an increase of 13% compared to
the $147.9 million recorded in the prior-year period.
Second quarter 2018 Adjusted EBITDA (see the non-GAAP reconciliation for
a discussion of this metric) was $139.3 million, or 23.0% of revenue,
compared to $98.1 million, or 20.3% of revenue, in the second quarter a
year ago. This represents an increase of 42% as reported, and an
increase of 39% on a constant-currency basis.
Second quarter 2018 Adjusted Net Income (see the non-GAAP
reconciliation) was $60.7 million, or $0.45 per diluted share, compared
to Adjusted Net Income of $34.7 million, or $0.27 per diluted share, in
the second quarter a year ago.
“We’re pleased with our performance during the second quarter, where we
recorded strong revenue growth on a constant-currency basis across all
three of our reporting segments,” said John Chiminski, Chairman,
President and Chief Executive Officer of Catalent, Inc. “The integration
of the Cook Pharmica acquisition, which closed during the second
quarter, is progressing according to plan and builds upon the successful
integration of softgel developer Accucaps last year. The acquisition of
Cook Pharmica significantly strengthened our position as a leader in
biologics development and manufacturing, and the growth prospects for
Catalent's biologics business remain extremely attractive."
New Chief Financial Officer
The Company also announced the appointment of senior executive Wetteny
Joseph as its Senior Vice President and Chief Financial Officer,
effective February 6, 2018, succeeding Matt Walsh, who has announced his
desire to leave the Company to assume the position of Chief Financial
Officer of Allergan plc.
“We are excited to have Wetteny move into this new role with Catalent,”
said Mr. Chiminski. “His leadership as President of our Clinical Supply
Services business for the last two years, together with his deep
experience in finance and controllership developed both here at the
company and throughout his career, will make him a key asset to all of
our strategic and financial initiatives. We look forward to his
continued success as a member of our executive leadership team.” Noting
Mr. Walsh’s departure, Mr. Chiminski added, “Matt Walsh has been an
important part of the Catalent story from its inception as a stand-alone
business, through its initial public offering, and its maturation as a
public company. All of us here thank him for the what he has done to
help us and our stockholders, and wish him all the best in his new
endeavor.”
Mr. Joseph has over 20 years of managerial, finance, accounting, and
strategic experience, most recently as the President of Catalent’s
Clinical Supply Services business unit. He joined the Company in 2008 as
its Vice President and Corporate Controller, and held senior finance
positions through 2015, when he was chosen to lead Clinical Supply
Services. Before joining Catalent, he held a variety of senior financial
positions at the industrial distribution company HD Supply, including as
CFO of its $1.2 billion plumbing and HVAC business unit, and as
corporate controller for Hughes Supply, a publicly traded, Fortune 500
company that was acquired by HD Supply. At the beginning of his career,
Mr. Joseph spent six years at PricewaterhouseCoopers as an auditor and
strategic financial advisor across a variety of industries. He earned
both his master’s and bachelor degrees in accounting from Florida
Atlantic University and is a Certified Public Accountant.
Second Quarter 2018 Segment Highlights
Revenue Highlights by Business Segment
Revenue from the Softgel Technologies segment was $228.1 million for the
second quarter of fiscal 2018, an increase of 13% as reported, or 9% in
constant currency, compared to the second quarter a year ago. The
constant-currency growth was attributable to the February 2017 Accucaps
acquisition, which contributed 12 percentage points to the segment’s
constant-currency revenue growth during the quarter. Excluding the
Accucaps acquisition, Softgel revenue declined 3% due to a decrease in
product participation revenue and lower end-market volume demand for
consumer health and prescription products in Europe and Asia Pacific.
Revenue from the Drug Delivery Solutions segment was $285.4 million for
the second quarter of fiscal 2018, an increase of 33% as reported, or
30% in constant currency, over the second quarter a year ago. The growth
was primarily attributable to the Cook Pharmica acquisition which
contributed 21 percentage points to the segment's revenue growth.
Excluding the impact of the acquisition, segment revenue increased 9%
driven by favorable end-customer demand for certain higher margin
offerings, primarily in our U.S. operations within our oral delivery
solutions platform, and increased volume from our biologics offerings,
partially offset by a decrease in product participation revenue.
Revenue from the Clinical Supply Services segment was $108.7 million for
the second quarter of fiscal 2018, an increase of 41% as reported, or
36% in constant currency over the second quarter a year ago. This growth
was due to higher volume related to core storage and distribution
services, as well as due to increased lower-margin comparator sourcing
activities.
Segment EBITDA Highlights
Softgel Technologies segment EBITDA (see the discussion of non-GAAP
measures below) in the second quarter of fiscal 2018 was $50.1 million,
an increase of 15% as reported, or 13% in constant currency, versus the
second quarter a year ago. The increase was primarily driven by the
acquisition of Accucaps, which contributed 9 percentage points of the
constant-currency growth in the segment EBITDA during the quarter.
Excluding the acquisition, segment EBITDA increased by 4% in constant
currency, primarily related to a historical contractual settlement and
to favorable product mix within North America.
Drug Delivery Solutions segment EBITDA in the second quarter of fiscal
2018 was $81.1 million, an increase of 62% as reported, or 58% in
constant currency. The increase was driven in part by the acquisition of
Cook Pharmica, which contributed 40 percentage points of the
constant-currency growth in the segment EBITDA during the quarter.
Excluding the acquisition, segment EBITDA increased by 18%, primarily
driven by favorable end-customer demand for certain higher margin
offerings, primarily in our U.S. operations within our oral delivery
solutions platform, and increased volume from our biologics offerings;
partially offset by operational inefficiencies with respect to products
utilizing our blow-fill-seal technology platform and a reduction in
profit related to product participation activities.
Clinical Supply Services segment EBITDA in the second quarter of fiscal
2018 was $19.0 million, an increase of 64% as reported, or 55% in
constant currency. The increase was primarily attributable to higher
demand for our core storage and distribution services, as well as
improved capacity utilization across the network. Increased volume
related to lower-margin comparator sourcing activities modestly
contributed to the segment’s EBITDA growth.
First Six Months of Fiscal 2018 Segment Highlights
Revenue Highlights by Business Segment
Revenue from the Softgel Technologies segment was $447.8 million for the
first six months of fiscal 2018, an increase of 15% as reported, or 12%
in constant currency, compared to the same period a year ago. The
constant-currency growth was attributable to the February 2017 Accucaps
acquisition, which contributed 13 percentage points to the segment’s
constant-currency revenue growth during the period. Excluding the
Accucaps acquisition, Softgel revenue declined 1% due to a decrease in
product participation revenue.
Revenue from the Drug Delivery Solutions segment was $511.2 million for
the first six months of fiscal 2018, an increase of 26% as reported, or
24% in constant currency, over the same period a year ago. The growth
was partially attributable to the Cook Pharmica and Pharmatek
acquisitions which contributed 13 percentage points to the segment's
revenue growth. Excluding the impact of the acquisition, segment revenue
increased 11% driven by favorable end-customer demand for certain higher
margin offerings, primarily in our U.S. operations within our oral
delivery solutions platform, and increased volume from our biologics
offerings.
Revenue from the Clinical Supply Services segment was $218.4 million for
the first six months of fiscal 2018, an increase of 44% as reported, or
41% in constant currency over the same period a year ago. This growth
was due to higher volume related to core storage and distribution
services, as well as due to increased lower-margin comparator sourcing
activities.
Segment EBITDA Highlights
Softgel Technologies segment EBITDA in the first six months of fiscal
2018 was $85.2 million, an increase of 15% as reported, or 14% in
constant currency, versus the same period a year ago. The increase was
primarily driven by the acquisition of Accucaps, which contributed 13
percentage points of the constant-currency growth in the segment EBITDA
during the period. Excluding the acquisition, segment EBITDA increased
by 1% in constant currency, primarily related to a historical
contractual settlement and to favorable product mix within North
America; partially offset by lower product participation revenue.
Drug Delivery Solutions segment EBITDA in the first six months of fiscal
2018 was $128.5 million, an increase of 40% as reported, or 37% in
constant currency. The increase was primarily driven by the acquisitions
of Cook Pharmica and Pharmatek, which contributed 23 percentage points
of the constant-currency growth in the segment EBITDA during the period.
Excluding the acquisition, segment EBITDA increased by 14%, primarily
driven by favorable end-customer demand for certain higher margin
offerings, primarily in our U.S. operations within our oral delivery
solutions platform, and increased volume from our biologics offerings,
partially offset by operational inefficiencies with respect to products
utilizing our blow-fill-seal technology platform.
Clinical Supply Services segment EBITDA in the first six months of
fiscal 2018 was $35.7 million, an increase of 62% as reported, or 57% in
constant currency. The increase was primarily attributable to higher
demand for our core storage and distribution services, as well as
improved capacity utilization across the network. Increased volume
related to lower-margin comparator sourcing activities modestly
contributed to the segment’s EBITDA growth.
Additional Financial Highlights
Second quarter 2018 gross margin of 31.1% increased 50 basis points
as-reported, from 30.6% in the second quarter a year ago. The increase
was primarily attributable to favorable product mix within the Drug
Delivery Solutions segment, and the Cook Pharmica acquisition, partially
offset by a decrease in product participation revenue within the Drug
Delivery Solutions and Softgel Technologies segments.
Second quarter 2018 selling, general and administrative expenses were
$114.3 million and represented 18.9% of revenue, compared to $96.2
million, or 19.9% of revenue, in the second quarter 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 $306.0 million as of December 31, 2017, a 8% decrease
compared to the first quarter of fiscal year 2018. The segment also
recorded net new business wins of $80.0 million during the second
quarter, which represented a 26% decrease year over year. The segment’s
trailing-twelve-month book-to-bill ratio was 0.9.
Balance Sheet and Liquidity
As of December 31, 2017, Catalent had $2.7 billion in total debt, and
$2.4 billion in total debt net of cash and short-term investments, which
is above the total debt and net debt as of September 30, 2017, due to
the new debt issued to fund the Cook Pharmica acquisition. As of
December 31, 2017, Catalent’s total net leverage ratio was 4.8x. On a
pro forma basis for the acquisition of Cook Pharmica, Catalent’s total
net leverage ratio as of December 31, 2017 would have been 4.4x; a
sequential improvement compared to the pro forma total net leverage
ratio of 4.8x as of September 30, 2017.
During the second quarter, on October 18, 2017, Catalent issued $450
million aggregate principal amount of 4.875% senior unsecured notes due
January 2026. The net proceeds of these notes were used, along with cash
on hand and the net proceeds of a primary offering of our common stock,
to fund the $750 million, subject to customary adjustments and a
previous deposit, due at the closing of the Cook Pharmica acquisition.
The remaining portion of the purchase price, $200 million, will be paid
in four equal installments over the first four anniversaries of the
October 23 closing.
Concurrently, the Company completed an amendment to its senior secured
credit facilities to lower the interest rates on its U.S.
dollar-denominated and euro-denominated term loans and on its revolving
credit facility and extend their maturities. The new applicable rate for
U.S. dollar-denominated term loans is LIBOR (subject to a floor of
1.00%) plus 2.25%, which is 0.50% lower than the previous rate, and the
new applicable rate for euro-denominated term loans is LIBOR (subject to
a floor of 1.00%) plus 1.75%, which is 0.75% lower than the previous
rate. The new applicable rate for revolving loans under the facilities
is initially LIBOR plus 2.25%, which is 1.25% lower than the previous
rate, and such rate can additionally be reduced to LIBOR plus 2.00% in
future periods based on a leverage ratio. The term loans and revolving
loans were also extended and will now mature in May 2024 and May 2022,
respectively. The amended credit agreement also includes a prepayment of
1.0% in the event of another repricing event on or before the six-month
anniversary of the amendment completed in the second quarter.
Fiscal Year 2018 Outlook
Management is updating its guidance as a result of continued strength in
the business, and tightening the range due to the passage of time. For
fiscal year 2018, the company expects revenue in the range of $2.42
billion to $2.48 billion. Catalent expects Adjusted EBITDA in the range
of $537 million to $557 million and Adjusted Net Income in the range of
$212 million to $232 million. The Company expects self-funded capital
expenditures in the range of $152 million to $165 million and fully
diluted share count in the range of 133 million to 135 million shares on
a weighted-average basis, taking into account the recent issuance of
additional shares in connection with the Cook Pharmica acquisition.
Earnings Webcast
The Company’s management will host a webcast to discuss the results at
8:15 a.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 over 11,000
people, including over 1,400 scientists, at more than 30 facilities
across 5 continents and in fiscal 2017 generated over $2 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) and Adjusted Net Income/(loss) per share. 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) and
Adjusted Net Income/loss per share 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) and
Adjusted Net Income/(loss) per share 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 a reconciliation of
net earnings/(loss) to Adjusted Net Income.
The Company does not provide a reconciliation of forward-looking
non-GAAP financial measures to their comparable GAAP financial measures
because it could not do so without unreasonable effort due to the
unavailability of the information needed to calculate reconciling items
and due to the variability, complexity and limited visibility of the
adjusting items that would be excluded from the non-GAAP financial
measures in future periods. When planning, forecasting and analyzing
future periods, the Company does so primarily on a non-GAAP basis
without preparing a GAAP analysis as that would require estimates for
various cash and non-cash reconciling items that would be difficult to
predict with reasonable accuracy. For example, equity compensation
expense would be difficult to estimate because it depends on the
Company’s future hiring and retention needs, as well as the future fair
market value of the Company’s common stock, all of which are difficult
to predict and subject to constant change. It is equally difficult to
anticipate the need for or magnitude of a presently unforeseen one-time
restructuring expense or the values of end-of-period foreign currency
exchange rates. As a result, the Company does not believe that a GAAP
reconciliation would provide meaningful supplemental information about
the Company’s outlook.
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 including as a result of the recent U.K.
referendum to exit from the European Union; adverse tax legislative or
regulatory 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 difficulties in
successfully integrating acquired business and realizing 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 or labor difficulties, which could increase costs or result
in operational disruptions; 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, 2017, filed on August 28, 2017, and in Exhibit 99.4 to
its Current Report on Form 8-K filed on September 25, 2017, 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
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
FX impact
|
|
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
Change $
|
|
|
|
Change %
|
|
|
Net revenue
|
|
$
|
|
606.3
|
|
|
|
|
|
$
|
|
483.7
|
|
|
|
|
|
$
|
|
17.0
|
|
|
|
|
|
$
|
|
105.6
|
|
|
|
|
|
22%
|
|
|
Cost of sales
|
|
418.9
|
|
|
|
|
|
335.8
|
|
|
|
|
|
12.7
|
|
|
|
|
|
70.4
|
|
|
|
|
|
21%
|
|
|
Gross margin
|
|
187.4
|
|
|
|
|
|
147.9
|
|
|
|
|
|
4.3
|
|
|
|
|
|
35.2
|
|
|
|
|
|
24%
|
|
|
Selling, general and administrative expenses
|
|
114.3
|
|
|
|
|
|
96.2
|
|
|
|
|
|
1.1
|
|
|
|
|
|
17.0
|
|
|
|
|
|
18%
|
|
|
Impairment charges and (gain)/loss on sale of assets
|
|
4.2
|
|
|
|
|
|
0.5
|
|
|
|
|
|
0.1
|
|
|
|
|
|
3.6
|
|
|
|
|
|
*
|
|
|
Restructuring and other
|
|
0.1
|
|
|
|
|
|
3.3
|
|
|
|
|
|
—
|
|
|
|
|
|
(3.2)
|
|
|
|
|
|
(97)%
|
|
|
Operating earnings
|
|
68.8
|
|
|
|
|
|
47.9
|
|
|
|
|
|
3.1
|
|
|
|
|
|
17.8
|
|
|
|
|
|
37%
|
|
|
Interest expense, net
|
|
27.2
|
|
|
|
|
|
22.8
|
|
|
|
|
|
0.3
|
|
|
|
|
|
4.1
|
|
|
|
|
|
18%
|
|
|
Other (income)/expense, net
|
|
13.6
|
|
|
|
|
|
(1.8)
|
|
|
|
|
|
1.4
|
|
|
|
|
|
14.0
|
|
|
|
|
|
*
|
|
|
Earnings from continuing operations, before income
taxes
|
|
28.0
|
|
|
|
|
|
26.9
|
|
|
|
|
|
1.4
|
|
|
|
|
|
(0.3)
|
|
|
|
|
|
(1)%
|
|
|
Income tax expense
|
|
49.9
|
|
|
|
|
|
9.5
|
|
|
|
|
|
—
|
|
|
|
|
|
40.4
|
|
|
|
|
|
*
|
|
|
Net earnings/(loss)
|
|
$
|
|
(21.9
|
|
)
|
|
|
|
$
|
|
17.4
|
|
|
|
|
|
$
|
|
1.4
|
|
|
|
|
|
$
|
|
(40.7)
|
|
|
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
133.0
|
|
|
|
|
|
124.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
133.0
|
|
|
|
|
|
126.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
$
|
|
(0.16)
|
|
|
|
|
|
$
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
|
$
|
|
(0.16)
|
|
|
|
|
|
$
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Selected Segment Financial Data
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
FX impact
|
|
|
|
Constant Currency
Increase/(Decrease)
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
Change $
|
|
|
|
Change %
|
|
|
Softgel Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
|
228.1
|
|
|
|
$
|
|
201.9
|
|
|
|
$
|
|
7.1
|
|
|
|
$
|
|
19.1
|
|
|
|
9%
|
|
|
Segment EBITDA
|
|
50.1
|
|
|
|
43.4
|
|
|
|
1.1
|
|
|
|
5.6
|
|
|
|
13%
|
|
|
Drug Delivery Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
285.4
|
|
|
|
214.0
|
|
|
|
7.0
|
|
|
|
64.4
|
|
|
|
30%
|
|
|
Segment EBITDA
|
|
81.1
|
|
|
|
50.0
|
|
|
|
2.0
|
|
|
|
29.1
|
|
|
|
58%
|
|
|
Clinical Supply Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
108.7
|
|
|
|
77.0
|
|
|
|
3.7
|
|
|
|
28.0
|
|
|
|
36%
|
|
|
Segment EBITDA
|
|
19.0
|
|
|
|
11.6
|
|
|
|
1.0
|
|
|
|
6.4
|
|
|
|
55%
|
|
|
Inter-segment revenue elimination
|
|
(15.9)
|
|
|
|
(9.2)
|
|
|
|
(0.8)
|
|
|
|
(5.9)
|
|
|
|
64%
|
|
|
Unallocated Costs
|
|
(48.2)
|
|
|
|
(19.8)
|
|
|
|
(1.3)
|
|
|
|
(27.1)
|
|
|
|
*
|
|
|
Combined Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
|
606.3
|
|
|
|
$
|
|
483.7
|
|
|
|
$
|
|
17.0
|
|
|
|
$
|
|
105.6
|
|
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
|
$
|
|
102.0
|
|
|
|
$
|
|
85.2
|
|
|
|
$
|
|
2.8
|
|
|
|
$
|
|
14.0
|
|
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refer to the Company's description of non-GAAP measures including
segment EBITDA as referenced above.
|
|
|
Catalent, Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
FX impact
|
|
Constant Currency
Increase/(Decrease)
|
|
|
2017
|
|
2016
|
|
|
|
Change $
|
|
Change %
|
|
Net revenue
|
$
|
1,150.2
|
|
|
$
|
925.9
|
|
|
$
|
23.5
|
|
|
$
|
200.8
|
|
|
22
|
%
|
|
Cost of sales
|
822.7
|
|
|
653.9
|
|
|
18.8
|
|
|
150.0
|
|
|
23
|
%
|
|
Gross margin
|
327.5
|
|
|
272.0
|
|
|
4.7
|
|
|
50.8
|
|
|
19
|
%
|
|
Selling, general and administrative expenses
|
221.3
|
|
|
194.4
|
|
|
1.4
|
|
|
25.5
|
|
|
13
|
%
|
|
Impairment charges and (gain)/loss on sale of assets
|
4.2
|
|
|
0.5
|
|
|
0.1
|
|
|
3.6
|
|
|
*
|
|
Restructuring and other
|
1.3
|
|
|
4.4
|
|
|
—
|
|
|
(3.1
|
)
|
|
(70
|
)%
|
|
Operating earnings
|
100.7
|
|
|
72.7
|
|
|
3.2
|
|
|
24.8
|
|
|
34
|
%
|
|
Interest expense, net
|
51.5
|
|
|
44.9
|
|
|
0.3
|
|
|
6.3
|
|
|
14
|
%
|
|
Other (income)/expense, net
|
19.3
|
|
|
(3.9
|
)
|
|
2.3
|
|
|
20.9
|
|
|
*
|
Earnings from continuing operations, before income
taxes
|
29.9
|
|
|
31.7
|
|
|
0.6
|
|
|
(2.4
|
)
|
|
(8
|
)%
|
|
Income tax expense
|
48.0
|
|
|
9.7
|
|
|
(0.3
|
)
|
|
38.6
|
|
|
*
|
|
Net earnings/(loss)
|
$
|
(18.1
|
)
|
|
$
|
22.0
|
|
|
$
|
0.9
|
|
|
$
|
(41.0
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
129.3
|
|
|
124.9
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
129.3
|
|
|
126.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Catalent:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
$
|
(0.14
|
)
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss)
|
$
|
(0.14
|
)
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - percentage not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Selected Segment Financial Data
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
FX impact
|
|
Constant Currency
Increase/(Decrease)
|
|
|
2017
|
|
2016
|
|
|
|
Change $
|
|
Change %
|
|
Softgel Technologies
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
$
|
447.8
|
|
|
$
|
388.3
|
|
|
$
|
11.1
|
|
|
$
|
48.4
|
|
|
12
|
%
|
|
Segment EBITDA
|
85.2
|
|
|
73.9
|
|
|
1.2
|
|
|
10.1
|
|
|
14
|
%
|
|
Drug Delivery Solutions
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
511.2
|
|
|
405.3
|
|
|
9.5
|
|
|
96.4
|
|
|
24
|
%
|
|
Segment EBITDA
|
128.5
|
|
|
92.0
|
|
|
2.3
|
|
|
34.2
|
|
|
37
|
%
|
|
Clinical Supply Services
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
218.4
|
|
|
152.0
|
|
|
4.1
|
|
|
62.3
|
|
|
41
|
%
|
|
Segment EBITDA
|
35.7
|
|
|
22.1
|
|
|
1.1
|
|
|
12.5
|
|
|
57
|
%
|
|
Inter-segment revenue elimination
|
(27.2
|
)
|
|
(19.7
|
)
|
|
(1.2
|
)
|
|
(6.3
|
)
|
|
32
|
%
|
|
Unallocated Costs
|
(82.2
|
)
|
|
(40.1
|
)
|
|
(2.3
|
)
|
|
(39.8
|
)
|
|
99
|
%
|
|
Combined total
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
$
|
1,150.2
|
|
|
$
|
925.9
|
|
|
$
|
23.5
|
|
|
$
|
200.8
|
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
$
|
167.2
|
|
|
$
|
147.9
|
|
|
$
|
2.3
|
|
|
$
|
17.0
|
|
|
11
|
%
|
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
|
|
Twelve
Months
Ended
|
|
|
December 31,
2016
|
|
March 31,
2017
|
|
June 30,
2017
|
|
September 30,
2017
|
|
December 31,
2017
|
|
December 31,
2017
|
|
Earnings/(loss) from continuing operations
|
$
|
17.4
|
|
|
$
|
26.0
|
|
|
$
|
61.8
|
|
|
$
|
3.8
|
|
|
$
|
(21.9
|
)
|
|
$
|
69.7
|
|
Interest expense, net
|
22.8
|
|
|
22.6
|
|
|
22.6
|
|
|
24.3
|
|
|
27.2
|
|
|
96.7
|
|
Income tax expense/(benefit)
|
9.5
|
|
|
8.7
|
|
|
7.4
|
|
|
(1.9
|
)
|
|
49.9
|
|
|
64.1
|
|
Depreciation and amortization
|
35.5
|
|
|
36.5
|
|
|
38.7
|
|
|
39.0
|
|
|
46.8
|
|
|
161.0
|
|
EBITDA from continuing operations
|
85.2
|
|
|
93.8
|
|
|
130.5
|
|
|
65.2
|
|
|
102.0
|
|
|
391.5
|
|
Equity compensation
|
4.9
|
|
|
4.6
|
|
|
4.5
|
|
|
7.0
|
|
|
8.5
|
|
|
24.6
|
|
Impairment charges and (gain)/loss on sale of assets
|
0.5
|
|
|
1.8
|
|
|
7.5
|
|
|
—
|
|
|
4.2
|
|
|
13.5
|
|
Financing related expenses
and other
|
4.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.8
|
|
|
11.8
|
|
US GAAP Restructuring and
Other
|
3.3
|
|
|
0.1
|
|
|
3.5
|
|
|
1.2
|
|
|
0.1
|
|
|
4.9
|
|
Acquisition, integration and other special items
|
3.9
|
|
|
8.4
|
|
|
8.5
|
|
|
11.0
|
|
|
11.8
|
|
|
39.7
|
|
Foreign Exchange loss/(gain) (included in other, net) (1)
|
(3.2
|
)
|
|
9.2
|
|
|
4.1
|
|
|
6.5
|
|
|
0.6
|
|
|
20.4
|
|
Other adjustments
|
(0.8
|
)
|
|
(0.1
|
)
|
|
0.5
|
|
|
—
|
|
|
0.3
|
|
|
0.7
|
|
Adjusted EBITDA
|
$
|
98.1
|
|
|
$
|
117.8
|
|
|
$
|
159.1
|
|
|
$
|
90.9
|
|
|
$
|
139.3
|
|
|
$
|
507.1
|
|
FX impact (unfavorable)
|
|
|
|
|
|
|
|
|
2.8
|
|
|
|
|
Adjusted EBITDA - Constant Currency
|
|
|
|
|
|
|
|
|
$
|
136.5
|
|
|
|
* Refer to the Company's description of non-GAAP measures including
Adjusted EBITDA as referenced above.
(1) Foreign exchange loss of $20.4 million for the twelve months ended
December 31, 2017 includes: (a) $5.8 million of unrealized losses
related to foreign trade receivables and payables, (b) $45.1 million of
unrealized losses on the ineffective portion of the Company's net
investment hedge, and (c) $10.1 million of unrealized gains on
inter-company loans. The foreign exchange adjustment was also affected
by the exclusion of realized foreign currency exchange rate gains from
the settlement of inter-company loans of $20.3 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)
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
Twelve
Months
Ended
|
|
|
|
|
December 31,
2016
|
|
March 31,
2017
|
|
June 30,
2017
|
|
September 30,
2017
|
|
December 31,
2017
|
|
December 31,
2017
|
|
Net earnings/(loss)
|
|
|
$
|
17.4
|
|
|
$
|
26.0
|
|
|
$
|
61.8
|
|
|
$
|
3.8
|
|
|
$
|
(21.9
|
)
|
|
$
|
69.7
|
|
|
Amortization (1)
|
|
|
11.1
|
|
|
11.0
|
|
|
11.2
|
|
|
11.4
|
|
|
16.1
|
|
|
49.7
|
|
|
Equity compensation
|
|
|
4.9
|
|
|
4.6
|
|
|
4.5
|
|
|
7.0
|
|
|
8.5
|
|
|
24.6
|
|
|
Impairment charges and loss on sale of assets
|
|
|
0.5
|
|
|
1.8
|
|
|
7.5
|
|
|
—
|
|
|
4.2
|
|
|
13.5
|
|
|
Financing related expenses
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.8
|
|
|
11.8
|
|
|
U.S. GAAP restructuring and other
|
|
|
3.3
|
|
|
0.1
|
|
|
3.5
|
|
|
1.2
|
|
|
0.1
|
|
|
4.9
|
|
|
Acquisition, integration and other special items
|
|
|
3.9
|
|
|
8.4
|
|
|
8.5
|
|
|
11.0
|
|
|
11.8
|
|
|
39.7
|
|
|
Foreign Exchange loss/(gain) (included in other, net) (2)
|
|
|
(3.2
|
)
|
|
9.2
|
|
|
4.1
|
|
|
6.5
|
|
|
0.6
|
|
|
20.4
|
|
|
Other adjustments
|
|
|
(0.8
|
)
|
|
(0.1
|
)
|
|
0.5
|
|
|
—
|
|
|
0.3
|
|
|
0.7
|
|
|
Estimated tax effect of
adjustments(3)
|
|
|
(6.5
|
)
|
|
(10.7
|
)
|
|
(12.2
|
)
|
|
(11.2
|
)
|
|
(14.0
|
)
|
|
(48.1
|
)
|
|
Discrete income tax expense/(benefit) items(4)
|
|
|
(0.2
|
)
|
|
(1.6
|
)
|
|
(6.8
|
)
|
|
(2.6
|
)
|
|
(2.8
|
)
|
|
(13.8
|
)
|
|
Tax law changes provision (5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46.0
|
|
|
46.0
|
|
|
Adjusted net income
|
|
|
$
|
34.7
|
|
|
$
|
48.7
|
|
|
$
|
82.6
|
|
|
$
|
27.1
|
|
|
$
|
60.7
|
|
|
$
|
219.1
|
|
* Refer to the Company's description of non-GAAP measures including
Adjusted Net Income as referenced above. The diluted share count of
134.9 million shares for the purposes of ANI per share in the quarter
ended December 31, 2017 differs from the count for GAAP EPS purposes
because ANI is positive.
|
(1)
|
|
Represents the amortization attributable to purchase accounting for
previously completed business combinations.
|
|
(2)
|
|
Foreign exchange loss of $20.4 million for the twelve months ended
December 31, 2017 includes: (a) $5.8 million of unrealized losses
related to foreign trade receivables and payables, (b) $45.1 million
of unrealized losses on the ineffective portion of the Company's net
investment hedge, and (c) $10.1 million of unrealized gains on
inter-company loans. The foreign exchange adjustment was also
affected by the exclusion of realized foreign currency exchange rate
gains from the settlement of inter-company loans of $20.3 million.
Inter-company loans are between Catalent entities and do not reflect
the ongoing results of the Company's trade operations.
|
|
(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)
|
|
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.
|
|
(5)
|
|
During the second quarter ended December 31, 2017, the Company
recorded a one-time net tax charge of $46.0 million as a
provisional estimate of the net accounting impact of the recently
enacted U.S. tax law changes. The Company will continue to
evaluate the full impact of the 2017 Tax Act and record any
potential adjustment during the permitted one-year measurement
period.
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
December 31,
2017
|
|
June 30,
2017
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
329.5
|
|
|
$
|
288.3
|
|
Trade receivables, net
|
|
427.9
|
|
|
488.8
|
|
Inventories
|
|
212.7
|
|
|
184.9
|
|
Prepaid expenses and other
|
|
105.4
|
|
|
97.8
|
|
Total current assets
|
|
1,075.5
|
|
|
1,059.8
|
|
Property, plant, and equipment, net
|
|
1,256.2
|
|
|
995.9
|
|
Other non-current assets, including intangible assets
|
|
2,055.4
|
|
|
1,398.6
|
|
Total assets
|
|
$
|
4,387.1
|
|
|
$
|
3,454.3
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
Current portion of long-term obligations and other short-term
borrowings
|
|
$
|
69.9
|
|
|
$
|
24.6
|
|
Accounts payable
|
|
164.3
|
|
|
163.2
|
|
Other accrued liabilities
|
|
249.8
|
|
|
281.2
|
|
Total current liabilities
|
|
484.0
|
|
|
469.0
|
|
Long-term obligations, less current portion
|
|
2,672.5
|
|
|
2,055.1
|
|
Other non-current liabilities
|
|
225.1
|
|
|
206.7
|
|
Commitment and contingencies (1)
|
|
—
|
|
|
—
|
|
Total shareholders' equity
|
|
1,005.5
|
|
|
723.5
|
|
Total liabilities and shareholders' equity
|
|
$
|
4,387.1
|
|
|
$
|
3,454.3
|
|
(1)
|
|
Please refer to note 13 of the consolidated financial statements
within our Quarterly Report on Form 10-Q for the quarter ended
December 31, 2017.
|
|
|
|
|
|
|
|
Catalent, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Dollars in millions)
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
|
|
2017
|
|
2016
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net cash provided by operating activities
|
|
176.0
|
|
|
96.0
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Acquisition of property and equipment and other productive assets
|
|
(82.9
|
)
|
|
(54.1
|
)
|
|
Proceeds from sale of property and equipment
|
|
1.8
|
|
|
1.3
|
|
|
Proceeds from sale of subsidiaries
|
|
3.4
|
|
|
—
|
|
|
Payment for acquisitions, net of cash acquired
|
|
(748.0
|
)
|
|
(85.7
|
)
|
|
Net cash provided by/(used in) investing activities from continuing
operations
|
|
(825.7
|
)
|
|
(138.5
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Net change in other borrowings
|
|
(0.6
|
)
|
|
(5.6
|
)
|
|
Proceeds from borrowing, net
|
|
442.6
|
|
|
397.4
|
|
|
Payments related to long-term obligations
|
|
(9.4
|
)
|
|
(209.2
|
)
|
|
Call premium payments and financing fees paid
|
|
(15.6
|
)
|
|
(6.4
|
)
|
|
Proceeds from sale of common stock, net
|
|
277.8
|
|
|
—
|
|
|
Cash paid, in lieu of equity, for tax withholding obligations
|
|
(12.4
|
)
|
|
(0.5
|
)
|
|
Net cash provided by financing activities
|
|
682.4
|
|
|
175.7
|
|
|
Effect of foreign currency on cash
|
|
8.5
|
|
|
(9.0
|
)
|
|
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS
|
|
41.2
|
|
|
124.2
|
|
|
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
|
|
288.3
|
|
|
131.6
|
|
|
CASH AND EQUIVALENTS AT END OF PERIOD
|
|
$
|
329.5
|
|
|
$
|
255.8
|
|
Investors:
Catalent, Inc.
Thomas Castellano, 732-537-6325
investors@catalent.com