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Catalent, Inc. Reports First Quarter Fiscal 2023 Results

11/01/2022
  • Q1'23 net revenue of $1.02 billion, consistent with the prior-year period as reported, but increased 4% in constant currency, compared to Q1'22. Organic, constant-currency net revenue decreased by 1%, compared to Q1'22.
  • Q1'23 net earnings of zero.
  • Q1'23 Adjusted EBITDA(1) of $187 million decreased 26% as reported, or 24% in constant currency, compared to Q1'22.
  • Q1'23 Revenue and Adjusted EBITDA negatively impacted by $54 million due to timing of resolution of previously executed take-or-pay contracts; amount has been paid and is expected to be recognized in Q2'23.
  • Completed acquisition of Metrics Contract Services in October 2022 for $475 million, excluding adjustments.
  • Updated FY'23 financial guidance projects net revenue of $4,625 million to $4,875 million and Adjusted EBITDA of $1,220 million to $1,300 million.

Catalent, Inc. (NYSE: CTLT), the global leader in enabling pharma, biotech, and consumer health partners to optimize development, launch, and supply of better patient treatments across multiple modalities, today announced financial results for the first quarter of fiscal 2023, which ended September 30, 2022.

“We are enthusiastic about our long-term prospects and opportunities, enabled by the groundwork we have laid with our strategic organic and inorganic investments and the strong, continuing demand for offerings across our comprehensive portfolio,” commented Alessandro Maselli, President and Chief Executive Officer of Catalent, Inc. “While we have revised our fiscal 2023 guidance to account for near-term headwinds, we remain confident that we have taken actionable steps to provide the necessary growth levers to position us for long-term growth, including our recent acquisition of Metrics Contract Services, which supplements our fit-for-scale high-potent capacity for in-demand products.”

First Quarter 2023 Consolidated Results

Note that Catalent’s reorganized its reporting segments as of July 1, 2022, the beginning of fiscal 2023. All segment data reported in this release for periods ending on or before June 30, 2022 are the result of recasting data previously reported as if the current segments had been in place during those periods. All of this data, as well as other segment data relating to earlier periods, is set forth in detail later in this release.

Results in the first quarter were initially expected to include $54 million of revenue and Adjusted EBITDA related to a settlement of previously executed take-or-pay contracts for fill and finish of a viral vector COVID-19 vaccine. Catalent received the related payment in October and now expects to recognize the revenue and reflect the Adjusted EBITDA in the second quarter of Catalent’s fiscal year. The change in the expected timing had no effect on the Company's updated fiscal 2023 guidance.

Net revenue of $1.02 billion was consistent with the prior-year period as reported, but increased 4% in constant currency, from the $1.03 billion reported for the first quarter a year ago. Overall organic net revenue decreased (i.e., excluding the effect of acquisitions, divestitures, and currency translation) by 1% over the same period.

Net earnings attributable to common shareholders and earnings per basic and diluted share were zero, compared to net earnings attributable to common shareholders of $84 million, or $0.49 per basic and diluted share, in the first quarter a year ago, respectively.

EBITDA from operations(1) was $134 million, a decrease of $76 million from $210 million in the first quarter a year ago. First quarter fiscal 2023 Adjusted EBITDA(1) was $187 million, or 18% of net revenue, compared to $252 million, or 25% of net revenue, in the first quarter a year ago. This represents a decrease of 26% as reported and a decrease of 24% on a constant-currency basis, compared to the fiscal 2021 period.

Adjusted Net Income(1) was $61 million, or $0.34 per diluted share, compared to Adjusted Net Income of $128 million, or $0.71 per diluted share, in the first quarter a year ago.

(1) See "Non-GAAP Financial Measures" below and the GAAP to non-GAAP reconciliation provided later in this release.

First Quarter 2023 Segment Review

(Dollars in millions)

Three Months Ended September 30,

 

Constant Currency

 

 

2022

 

 

 

2021

 

 

Change %

Biologics

 

 

 

 

 

Net revenue

$

523

 

 

$

548

 

 

(2

)%

Segment EBITDA

 

113

 

 

 

167

 

 

(33

)%

Segment EBITDA margin

 

21.5

%

 

 

30.4

%

 

 

Pharma and Consumer Health

 

 

 

 

 

Net revenue

 

499

 

 

 

477

 

 

11

%

Segment EBITDA

 

108

 

 

 

99

 

 

20

%

Segment EBITDA margin

 

21.7

%

 

 

20.7

%

 

 

Unallocated costs

 

(87

)

 

 

(56

)

 

67

%

Combined totals

 

 

 

 

 

Net revenue

$

1,022

 

 

$

1,025

 

 

4

%

EBITDA from operations

$

134

 

 

$

210

 

 

(34

)%

Biologics segment

2022 vs. 2021

Year-Over-Year Change

Three Months Ended

September 30,

 

Net Revenue

 

Segment EBITDA

Organic

(2

)%

 

(31

)%

Impact of acquisitions

%

 

(2

)%

Constant-currency change

(2

)%

 

(33

)%

Foreign exchange translation impact on reporting

(3

)%

 

(1

)%

Total % change

(5

)%

 

(34

)%

Pharma and Consumer Health segment

2022 vs. 2021

Year-Over-Year Change

Three Months Ended

September 30,

 

Net Revenue

 

Segment EBITDA

Organic

1

%

 

8

%

Impact of acquisitions

10

%

 

12

%

Constant-currency change

11

%

 

20

%

Foreign currency translation impact on reporting

(7

)%

 

(11

)%

Total % change

4

%

 

9

%

Segment Net Revenue as a % of Total Net Revenue

 

Three Months Ended

 

September 30, 2022

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30, 2021

Biologics

51

%

 

51

%

 

55

%

 

53

%

 

53

%

Pharma and Consumer Health

49

%

 

49

%

 

45

%

 

47

%

 

47

%

Net Revenue

100

%

 

100

%

 

100

%

 

100

%

 

100

%

Balance Sheet and Liquidity

As of September 30, 2022, Catalent had $4.20 billion in total debt, and $3.86 billion in total debt net of cash, cash equivalents, and marketable securities, compared to $3.66 billion in total net debt as of June 30, 2022.

Catalent’s net leverage ratio(1) as of September 30, 2022 was 3.2x, compared to 2.9x at June 30, 2022 and 3.0x at September 30, 2021. Assuming the Metrics acquisition closed on September 30, 2022 as opposed to October 3, 2022, Catalent’s net leverage ratio would have been 3.6x.

Updated Fiscal Year 2023 Outlook

 

Previous FY'23 Full Year Guidance

Updated FY'23 Full Year Guidance

Net revenue

$4,975 million - $5,225 million

$4,625 million - $4,875 million

Adjusted EBITDA

$1,310 million - $1,390 million

$1,220 million - $1,300 million

Adjusted net income

$660 million - $730 million

$567 million - $648 million

Weighted average shares outstanding - diluted

181 million - 183 million

181 million - 183 million

Catalent revised its fiscal year 2023 financial outlook to reflect changes to the assumptions underlying the previous guidance issued August 29, 2022, including: the completion on October 3, 2022 of the acquisition of Metrics Contract Services; worsening macroeconomic conditions, including unfavorable foreign exchange rate movement, higher inflation, and lower consumer discretionary spend related; and signs of short-term cash-sensitive decisions by some of our customers. In addition, we now expect to spend only 10-11% of our revenue on capital projects this fiscal year as we focus on realizing the benefits of capital projects and acquisitions already completed or in process.

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 is the global leader in enabling pharma, biotech, and consumer health partners to optimize product development, launch, and full life-cycle supply for patients around the world. With broad and deep scale and expertise in development sciences, delivery technologies, and multi-modality manufacturing, Catalent is a preferred industry partner for personalized medicines, consumer health brand extensions, and blockbuster drugs. Catalent helps accelerate over 1,000 partner programs and launch over 150 new products every year. Its flexible manufacturing platforms at over 50 global sites supply around 80 billion doses of nearly 8,000 products annually. Catalent’s expert workforce of approximately 19,000 includes more than 3,000 scientists and technicians. Headquartered in Somerset, New Jersey, the company generated nearly $5 billion in revenue in its 2022 fiscal year. For more information, visit www.catalent.com.

(1) See "Non-GAAP Financial Measures" below and the GAAP to non-GAAP reconciliation provided later in this release.

Non-GAAP Financial Measures

Use of EBITDA from operations, Adjusted EBITDA, Adjusted Net Income and Segment EBITDA

Management measures operating performance based on consolidated earnings from operations before interest expense, expense (benefit) for income taxes, and depreciation and amortization, adjusted for the income or loss attributable to non-controlling interests (“EBITDA from operations”). EBITDA from operations is not defined under U.S. GAAP, is not a measure of operating income, operating performance, or liquidity presented in accordance with U.S. GAAP, and is subject to important limitations.

Catalent believes that the presentation of EBITDA from operations enhances an investor’s understanding of its financial performance. Catalent believes this measure is a useful financial metric to assess its operating performance across periods 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. Catalent believes that EBITDA from operations will provide investors with a useful tool for assessing the comparability between periods of Catalent's 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. Catalent presents EBITDA from operations in order to provide supplemental information that it considers relevant for the readers of its consolidated financial statements, and such information is not meant to replace or supersede U.S. GAAP measures. Catalent’s definition of EBITDA from 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 Catalent’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, is not a measure of operating income, operating performance, or liquidity presented in accordance with 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, Catalent’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Management also measures operating performance based on Adjusted Net Income and Adjusted Net Income per share. Adjusted Net Income is not defined under U.S. GAAP, is not a measure of operating income, operating performance, or liquidity presented in accordance with U.S. GAAP and is subject to important limitations. Catalent believes that the presentation of Adjusted Net Income and Adjusted Net Income per share enhances an investor’s understanding of its financial performance. Catalent believes these measures are a useful financial metric to assess its operating performance across periods by excluding certain items that it believes are not representative of its core business and Catalent uses these measures for business planning purposes. Catalent defines Adjusted Net Income as net earnings adjusted for amortization attributable to purchase accounting and adjustments for other cash and non-cash items included in the table below, partially offset by its estimate of the tax effects of such cash and non-cash items. Catalent believes that Adjusted Net Income and Adjusted Net Income per share provides investors with a useful tool for assessing the comparability between periods of its ability to generate cash from operations available to its stockholders. Catalent’s definition of Adjusted Net Income may not be the same as similarly titled measures used by other companies. Adjusted Net Income per share is computed by dividing Adjusted Net Income by the weighted average diluted shares outstanding.

The most directly comparable U.S. GAAP measure to EBITDA from operations, Adjusted EBITDA, and Adjusted Net Income is net earnings. Included in this release is a reconciliation of net earnings to EBITDA from operations, Adjusted EBITDA and Adjusted Net Income.

Catalent does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable U.S. 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, Catalent does so primarily on a non-GAAP basis without preparing a U.S. 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 Catalent’s future hiring and retention needs, as well as the future fair market value of its 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, Catalent does not believe that a U.S. GAAP reconciliation would provide meaningful supplemental information about its outlook.

Use of Constant Currency

As changes in exchange rates are an important factor in understanding period-to-period comparisons, Catalent 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. Catalent uses results on a constant-currency basis as one measure to evaluate its performance. Catalent calculates constant currency by calculating current-year results using prior-year foreign currency exchange rates. Catalent 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 Catalent 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,” “predict,” “hope,” “foresee,” “likely,” “may,” “could,” “target,” “will,” “would,” or other words or phrases with similar meanings. Similarly, statements that describe Catalent’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’s expectations and projections. Some of the factors that could cause actual results to differ include, but are not limited to, the following: the current or future effects of the COVID-19 pandemic or any global health developments on Catalent's or its customers' or suppliers' businesses; participation in a highly competitive market and increased competition that may adversely affect Catalent’s business; demand for its offerings, which depends in part on its customers’ research and development and the clinical and market success of their products; product and other liability risks that could adversely affect Catalent’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 Catalent’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 Catalent’s operations, including risks from rising inflation, disruptions to global supply chains, or from the Ukrainian-Russian war; 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 Catalent 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 against other currencies; adverse tax legislative or regulatory initiatives or challenges or adjustments to Catalent’s tax positions; loss of key personnel; risks generally associated with information systems; inability to complete any future acquisition or other transaction that may complement or expand its business or divest of non-strategic businesses or assets and difficulties in successfully integrating acquired businesses and realizing anticipated benefits of such acquisitions; risks associated with timely and successfully completing, and correctly anticipating the future demand predicted for, capital expansion projects at existing facilities; 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 Catalent’s existing pension plans; substantial leverage that may limit its ability to raise additional capital to fund operations and react to changes in the economy or in the industry; and exposure to interest-rate risk to the extent of its variable-rate debt preventing it 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 Catalent’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022, filed August 29, 2022. All forward-looking statements speak only as of the date of this release or as of the date they are made, and Catalent 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.

Consolidated Statements of Operations

(Unaudited; dollars and shares in millions, except per share data)

 

 

Three Months Ended

September 30,

 

FX Impact

 

Constant Currency Increase (Decrease)

 

 

2022

 

 

2021

 

 

 

 

Change $

 

Change %

Net revenue

$

1,022

 

$

1,025

 

 

$

(48

)

 

$

45

 

 

4

%

Cost of sales

 

764

 

 

701

 

 

 

(36

)

 

 

99

 

 

14

%

Gross margin

 

258

 

 

324

 

 

 

(12

)

 

 

(54

)

 

(16

)%

Selling, general, and administrative expenses

 

196

 

 

183

 

 

 

(6

)

 

 

19

 

 

11

%

Gain on sale of subsidiary

 

 

 

(1

)

 

 

 

 

 

1

 

 

*

Other operating expense, net

 

2

 

 

4

 

 

 

1

 

 

 

(3

)

 

(72

)%

Operating earnings

 

60

 

 

138

 

 

 

(7

)

 

 

(71

)

 

(52

)%

Interest expense, net

 

32

 

 

26

 

 

 

(1

)

 

 

7

 

 

26

%

Other expense, net

 

25

 

 

9

 

 

 

(5

)

 

 

21

 

 

256

%

Earnings before income taxes

 

3

 

 

103

 

 

 

(1

)

 

 

(99

)

 

(96

)%

Income tax expense

 

3

 

 

10

 

 

 

(2

)

 

 

(5

)

 

(57

)%

Net earnings

$

 

$

93

 

 

$

1

 

 

$

(94

)

 

(100

)%

Less: Net earnings attributable to preferred shareholders

 

 

 

(9

)

 

 

 

 

 

 

Net earnings attributable to common shareholders

$

 

$

84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

180

 

 

171

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

181

 

 

172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

Net earnings

$

 

$

0.49

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

Net earnings

$

 

$

0.49

 

 

 

 

 

 

 

 

Catalent, Inc.

Condensed Consolidated Balance Sheets

(Unaudited; dollars in millions)

 

 

September 30,
2022

 

June 30,
2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

281

 

$

449

Trade receivables, net

 

989

 

 

1,051

Inventories

 

732

 

 

702

Prepaid expenses and other

 

632

 

 

625

Marketable securities

 

64

 

 

89

Total current assets

 

2,698

 

 

2,916

Property, plant, and equipment, net

 

3,167

 

 

3,127

Other non-current assets, including intangible assets

 

4,340

 

 

4,464

Total assets

$

10,205

 

$

10,507

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

 

 

 

Current portion of long-term obligations and other short-term borrowings

$

106

 

$

31

Accounts payable

 

379

 

 

421

Other accrued liabilities

 

458

 

 

620

Total current liabilities

 

943

 

 

1,072

Long-term obligations, less current portion

 

4,098

 

 

4,171

Other non-current liabilities

 

464

 

 

469

Total shareholders' equity

 

4,700

 

 

4,795

Total liabilities and shareholders' equity

$

10,205

 

$

10,507

 

Catalent, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited; dollars in millions)

 

 

Three Months Ended

September 30,

 

 

2022

 

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net cash (used in) provided by operating activities

$

(92

)

 

$

163

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Acquisition of property, equipment, and other productive assets

 

(149

)

 

 

(154

)

Proceeds from sale of marketable securities

 

24

 

 

 

20

 

Proceeds from sale of property and equipment

 

6

 

 

 

 

Settlement on sale of subsidiaries, net

 

 

 

 

(3

)

Payment for acquisitions, net of cash acquired

 

 

 

 

(26

)

Proceeds from (payments for) investments

 

3

 

 

 

(4

)

Net cash used in investing activities

 

(116

)

 

 

(167

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Proceeds from borrowing, net

 

75

 

 

 

1,096

 

Payments related to long-term obligations

 

(7

)

 

 

(3

)

Financing fees paid

 

 

 

 

(15

)

Dividends paid

 

 

 

 

(4

)

Cash received (paid), in lieu of equity, for tax withholding obligations

 

2

 

 

 

(4

)

Exercise of stock options

 

1

 

 

 

8

 

Other financing activities

 

3

 

 

 

4

 

Net cash provided by financing activities

 

74

 

 

 

1,082

 

Effect of foreign currency exchange on cash and cash equivalents

 

(34

)

 

 

(5

)

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

(168

)

 

 

1,073

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

449

 

 

 

896

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

281

 

 

$

1,969

 

 

Catalent, Inc.

Reconciliation of Net Earnings to EBITDA from Operations and Adjusted EBITDA*

(Unaudited; dollars in millions)

 

 

Three months ended

 

September 30,

2021

 

December 31, 2021

 

March 31, 2022

 

June 30, 2022

 

September 30, 2022

Net earnings

$

93

 

 

$

97

 

$

141

 

 

$

188

 

$

 

Interest expense, net

 

26

 

 

 

32

 

 

33

 

 

 

32

 

 

32

 

Income tax expense

 

10

 

 

 

18

 

 

35

 

 

 

23

 

 

3

 

Depreciation and amortization

 

81

 

 

 

98

 

 

99

 

 

 

100

 

 

99

 

EBITDA from operations

 

210

 

 

 

245

 

 

308

 

 

 

343

 

 

134

 

Stock-based compensation

 

21

 

 

 

11

 

 

10

 

 

 

12

 

 

19

 

Impairment charges and gain/loss on sale of assets

 

3

 

 

 

16

 

 

2

 

 

 

10

 

 

(2

)

Financing-related expenses

 

4

 

 

 

 

 

 

 

 

 

 

 

Restructuring costs

 

1

 

 

 

1

 

 

3

 

 

 

5

 

 

4

 

Acquisition, integration, and other special items

 

7

 

 

 

22

 

 

9

 

 

 

8

 

 

5

 

Gain on sale of subsidiary

 

(1

)

 

 

 

 

 

 

 

 

 

 

Foreign exchange loss

 

9

 

 

 

15

 

 

1

 

 

 

6

 

 

27

 

Inventory fair value step-up charges

 

 

 

 

 

 

7

 

 

 

 

 

 

Other adjustments

 

(2

)

 

 

 

 

(1

)

 

 

 

 

 

Adjusted EBITDA

$

252

 

 

$

310

 

$

339

 

 

$

384

 

$

187

 

Favorable (unfavorable) FX impact

 

 

 

 

 

 

 

 

 

(4

)

Adjusted EBITDA at constant currency

 

 

 

 

 

 

 

 

$

191

 

 

* Refer to Catalent's description of non-GAAP measures, including EBITDA from operations and Adjusted EBITDA as referenced above.

 

Catalent, Inc.

Reconciliation of Net Earnings to Adjusted Net Income*

(Unaudited; dollars in millions, except per share data)

 

 

Three months ended

 

September 30, 2021

 

December 31, 2021

 

March 31, 2022

 

June 30, 2022

 

September 30, 2022

Net earnings

$

93

 

 

$

97

 

 

$

141

 

 

$

188

 

 

$

 

Amortization (1)

 

23

 

 

 

34

 

 

 

33

 

 

 

33

 

 

 

33

 

Stock-based compensation

 

21

 

 

 

11

 

 

 

10

 

 

 

12

 

 

 

19

 

Impairment charges and gain/loss on sale of assets (2)

 

3

 

 

 

16

 

 

 

2

 

 

 

10

 

 

 

(2

)

Financing-related expenses

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring costs

 

1

 

 

 

1

 

 

 

3

 

 

 

5

 

 

 

4

 

Acquisition, integration, and other special items

 

7

 

 

 

22

 

 

 

9

 

 

 

8

 

 

 

5

 

Gain on sale of subsidiary (3)

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange loss

 

9

 

 

 

15

 

 

 

1

 

 

 

6

 

 

 

27

 

Inventory fair value step-up charges (4)

 

 

 

 

 

 

 

7

 

 

 

 

 

 

 

Other adjustments (5)

 

(2

)

 

 

 

 

 

(1

)

 

 

(1

)

 

 

 

Estimated tax effect of adjustments (6)

 

(15

)

 

 

(24

)

 

 

(15

)

 

 

(18

)

 

 

(19

)

Discrete income tax (benefit) expense items (7)

 

(15

)

 

 

(9

)

 

 

(2

)

 

 

(28

)

 

 

(6

)

Adjusted net income (ANI)

$

128

 

 

$

163

 

 

$

188

 

 

$

215

 

 

$

61

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

171

 

 

 

 

 

 

 

 

 

180

 

Weighted average shares outstanding - diluted

 

172

 

 

 

 

 

 

 

 

 

181

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Net earnings per share - basic

$

0.49

 

 

 

 

 

 

 

 

$

 

Net earnings per share - diluted

$

0.49

 

 

 

 

 

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

ANI per share:

 

 

 

 

 

 

 

 

 

ANI per share - basic

$

0.75

 

 

 

 

 

 

 

 

$

0.34

 

ANI per share - diluted (8)

$

0.71

 

 

 

 

 

 

 

 

$

0.34

 

* Refer to Catalent's description of non-GAAP measures, including Adjusted Net Income as referenced above.

 

(1)

Represents the amortization attributable to purchase accounting for previously completed business combinations.

(2)

For the three months ended June 30, 2022, represents fixed asset impairment charges primarily associated with obsolete equipment in our Biologics segment. For the three months ended December 31, 2021, represents $16 million in fixed asset impairment charges primarily associated with a product we no longer manufacture in our respiratory and specialty platform, which is part of our Pharma and Consumer Health segment.

(3)

Represents the gain on sale of subsidiary associated with the 2021 divestiture of our former blow-fill-seal business.

(4)

Represents a one-time non-cash inventory fair value adjustment of $7 million recorded in connection with our October 2021 acquisition of the Bettera Wellness business.

(5)

Represents unrealized gains related to the fair value of the derivative liability associated with our formerly outstanding Series A convertible preferred stock.

(6)

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 that are adjusted in the period presented; if a valuation allowance exists, the rate applied is zero.

(7)

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.

(8)

For the three months ended September 30, 2022, represents Adjusted Net Income divided by the weighted average sum of (a) the number of shares of common stock outstanding, plus (b) the number of shares of our common stock that would be issued assuming exercise or vesting of all potentially dilutive instruments. For the three months ended September 30, 2021, represents Adjusted Net Income divided by the weighted average sum of (a) the number of shares of common stock outstanding, plus (b) the number of shares of common stock that would be issued assuming exercise or vesting of all potentially dilutive instruments, plus (c) the number of shares of common stock equivalent to the shares of the formerly outstanding Series A convertible preferred stock outstanding under the "if-converted" method. For the three months ended September 30, 2022 and 2021, the weighted average number of shares was 181 million and 180 million, respectively.

 

Catalent, Inc.

Reconciliation of Segment EBITDA to Net Earnings

(Unaudited; dollars in millions, except per share data)

 

 

Three Months Ended

September 30,

 

2022

 

 

 

2021

 

Biologics

$

113

 

 

$

167

 

Pharma and Consumer Health

 

108

 

 

 

99

 

Sub-Total

$

221

 

 

$

266

 

Reconciling items to net earnings

 

 

 

Unallocated costs (1)

 

(87

)

 

 

(56

)

Depreciation and amortization

 

(99

)

 

 

(81

)

Interest expense, net

 

(32

)

 

 

(26

)

Income tax expense

 

(3

)

 

 

(10

)

Net earnings

$

 

 

$

93

 

 

(1) Unallocated costs include restructuring and special items, stock-based compensation, impairment charges, gain on sale of subsidiary, certain other corporate directed costs, and other costs that are not allocated to the segments.

 

Catalent, Inc.

Calculation of Net Leverage Ratio

(Unaudited; dollars in millions)

 

 

September 30, 2021

Pro Forma (1)

 

December 31,
2021

 

March 31, 2022

 

June 30, 2022

 

September 30, 2022

 

September 30, 2022

Pro Forma (2)

Total Secured Debt

$

1,435

 

$

1,431

 

$

1,428

 

$

1,424

 

$

1,497

 

$

1,997

Total Unsecured Debt

 

2,869

 

 

2,789

 

 

2,758

 

 

2,778

 

 

2,707

 

 

2,707

Total Debt

 

4,304

 

 

4,220

 

 

4,186

 

 

4,202

 

 

4,204

 

 

4,704

Cash and Cash Equivalents

 

971

 

 

849

 

786

 

 

449

 

 

281

 

 

281

Marketable Securities

 

50

 

 

66

 

94

 

 

89

 

 

64

 

 

64

Total Net Debt

 

3,283

 

 

3,305

 

 

3,306

 

 

3,664

 

 

3,859

 

 

4,359

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

Q2 2021

 

224

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

274

 

 

274

 

 

 

 

 

 

 

 

Q4 2021

 

348

 

 

348

 

 

348

 

 

 

 

 

 

Q1 2022

 

252

 

 

252

 

 

252

 

 

252

 

 

 

 

Q2 2022

 

 

 

310

 

 

310

 

 

310

 

 

310

 

 

310

Q3 2022

 

 

 

 

 

339

 

 

339

 

 

339

 

 

339

Q4 2022

 

 

 

 

 

 

 

384

 

 

384

 

 

384

Q1 2023

 

 

 

 

 

 

 

 

 

187

 

 

187

LTM Adjusted EBITDA

$

1,098

 

$

1,184

 

$

1,249

 

$

1,285

 

$

1,220

 

$

1,220

Net Sr. Secured Debt / Adj. EBITDA

0.4x

 

0.4x

 

0.4x

 

0.7x

 

0.9x

 

1.4x

Net Debt / Adj. EBITDA

3.0x

 

2.8x

 

2.6x

 

2.9x

 

3.2x

 

3.6x

 

(1) Assumes our Bettera Wellness acquisition, which actually closed in October 2021, had closed on September 30, 2021.

(2) Assumes our Metrics acquisition, which actually closed in October 2022, had closed on September 30, 2022.
 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Segment information for the three months ended September 30, 2021 and 2020

 

 

Three Months Ended

September 30, 2021

Biologics

 

Net revenue

$

548

 

Segment EBITDA

 

167

 

Segment EBITDA margin

 

30.4

%

Pharma and Consumer Health

 

Net revenue

 

477

 

Segment EBITDA

 

99

 

Segment EBITDA margin

 

20.7

%

Unallocated costs

 

(56

)

Combined totals

 

Net revenue

$

1,025

 

EBITDA from operations

$

210

 

Biologics

 

 

2021 vs. 2020

Year-Over-Year Change

Three Months Ended

September 30,

 

Net Revenue

 

Segment EBITDA

Organic

44

%

 

58

%

Impact of acquisitions

%

 

(1

)%

Constant-currency change

44

%

 

57

%

Foreign exchange translation impact on reporting

1

%

 

%

Total % change

45

%

 

57

%

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Pharma and Consumer Health

 

 

2021 vs. 2020

Year-Over-Year Change

Three Months Ended

September 30,

 

Net Revenue

 

Segment EBITDA

Organic

6

%

 

29

%

Impact of acquisitions

%

 

(6

)%

Impact of divestitures

(5

)%

 

(9

)%

Constant-currency change

1

%

 

14

%

Foreign currency translation impact on reporting

1

%

 

3

%

Total % change

2

%

 

17

%

Reconciliation of Segment EBITDA to Net Earnings

 

 

Three Months Ended

September 30,

 

2021

 

 

 

2020

 

Biologics

$

167

 

 

$

106

 

Pharma and Consumer Health

 

99

 

 

 

85

 

Sub-Total

$

266

 

 

$

191

 

Reconciling items to net earnings

 

 

 

Unallocated costs

 

(56

)

 

 

(29

)

Depreciation and amortization

 

(81

)

 

 

(69

)

Interest expense, net

 

(26

)

 

 

(26

)

Income tax expense

 

(10

)

 

 

15

 

Net earnings

$

93

 

 

$

82

 

Disaggregated Revenue

 

Three Months Ended September 30, 2021

 

Biologics

 

Pharma and Consumer Health

 

Total

Manufacturing & commercial product supply

 

$

134

 

$

276

 

$

410

Development services & clinical supply

 

 

414

 

 

201

 

 

615

Total

 

$

548

 

$

477

 

$

1,025

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Segment information for the three and six months ended December 31, 2021 and 2020

 

 

Three Months Ended December 31,

 

Six Months Ended December 31,

 

 

2021

 

 

 

2021

 

Biologics

 

 

 

Net revenue

$

641

 

 

$

1,189

 

Segment EBITDA

 

199

 

 

 

366

 

Segment EBITDA margin

 

31.1

%

 

 

30.8

%

Pharma and Consumer Health

 

 

 

Net revenue

 

577

 

 

 

1,054

 

Segment EBITDA

 

147

 

 

 

246

 

Segment EBITDA margin

 

25.4

%

 

 

23.3

%

Inter-segment revenue elimination

 

(1

)

 

 

(1

)

Unallocated costs

 

(101

)

 

 

(157

)

Combined totals

 

 

 

Net revenue

$

1,217

 

 

$

2,242

 

EBITDA from operations

$

245

 

 

$

455

 

Biologics

 

 

2021 vs. 2020

 

2021 vs. 2020

Year-Over-Year Change

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

Net Revenue

 

Segment EBITDA

 

Net Revenue

 

Segment EBITDA

Organic

59

%

 

48

%

 

52

%

 

52

%

Impact of acquisitions

%

 

(1

)%

 

%

 

(1

)%

Constant-currency change

59

%

 

47

%

 

52

%

 

51

%

Foreign exchange translation impact on reporting

(1

)%

 

(1

)%

 

(1

)%

 

%

Total % change

58

%

 

46

%

 

51

%

 

51

%

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Pharma and Consumer Health

 

 

2021 vs. 2020

 

2021 vs. 2020

Year-Over-Year Change

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

Net Revenue

 

Segment EBITDA

 

Net Revenue

 

Segment EBITDA

Organic

10

%

 

28

%

 

8

%

 

28

%

Impact of acquisitions

11

%

 

9

%

 

6

%

 

3

%

Impact of divestitures

(5

)%

 

(7

)%

 

(5

)%

 

(8

)%

Constant-currency change

16

%

 

30

%

 

9

%

 

23

%

Foreign currency translation impact on reporting

(1

)%

 

(1

)%

 

%

 

1

%

Total % change

15

%

 

29

%

 

9

%

 

24

%

Reconciliation of Segment EBITDA to Net Earnings

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Biologics

$

199

 

 

$

137

 

 

$

366

 

 

$

243

 

Pharma and Consumer Health

 

147

 

 

 

114

 

 

 

246

 

 

 

198

 

Sub-Total

$

346

 

 

$

251

 

 

$

612

 

 

$

441

 

Reconciling items to net earnings

 

 

 

 

 

 

 

Unallocated costs

 

(101

)

 

 

(45

)

 

 

(157

)

 

 

(74

)

Depreciation and amortization

 

(98

)

 

 

(71

)

 

 

(179

)

 

 

(140

)

Interest expense, net

 

(32

)

 

 

(26

)

 

 

(58

)

 

 

(51

)

Income tax expense

 

(18

)

 

 

(21

)

 

 

(28

)

 

 

(5

)

Net earnings

$

97

 

 

$

88

 

 

$

190

 

 

$

171

 

Disaggregated Revenue

 

Three Months Ended December 31, 2021

 

 

Biologics

 

Pharma and Consumer Health

 

Total

Manufacturing & commercial product supply

 

 

$

169

 

$

359

 

$

528

 

Development services & clinical supply

 

 

 

472

 

 

218

 

 

690

 

Total

 

 

$

641

 

$

577

 

$

1,218

 

 

Inter-segment revenue elimination

 

 

(1

)

 

 

 

Combined net revenue

 

$

1,217

 

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Six Months Ended December 31, 2021

 

Biologics

 

Pharma and Consumer Health

 

Total

Manufacturing & commercial product supply

 

$

303

 

$

635

 

$

938

 

Development services & clinical supply

 

 

886

 

 

419

 

 

1,305

 

Total

 

$

1,189

 

$

1,054

 

$

2,243

 

 

Inter-segment revenue elimination

 

(1

)

 

 

Combined net revenue

 

$

2,242

 

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Segment information for the three and nine months ended March 31, 2022 and 2021

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

 

2022

 

 

 

2022

 

Biologics

 

 

 

Net revenue

$

700

 

 

$

1,889

 

Segment EBITDA

 

218

 

 

 

584

 

Segment EBITDA margin

 

31.1

%

 

 

30.9

%

Pharma and Consumer Health

 

 

 

Net revenue

 

572

 

 

 

1,626

 

Segment EBITDA

 

144

 

 

 

390

 

Segment EBITDA margin

 

25.2

%

 

 

24.0

%

Inter-segment revenue elimination

 

1

 

 

 

 

Unallocated costs

 

(54

)

 

 

(211

)

Combined totals

 

 

 

Net revenue

$

1,273

 

 

$

3,515

 

EBITDA from operations

$

308

 

 

$

763

 

Biologics

 

 

2022 vs. 2021

 

2022 vs. 2021

Year-Over-Year Change

Three Months Ended

March 31,

 

Nine Months Ended

March 31,

 

Net Revenue

 

Segment EBITDA

 

Net Revenue

 

Segment EBITDA

Organic

30

%

 

22

%

 

43

%

 

40

%

Impact of acquisitions

%

 

%

 

%

 

(1

)%

Constant-currency change

30

%

 

22

%

 

43

%

 

39

%

Foreign exchange translation impact on reporting

(2

)%

 

(2

)%

 

(1

)%

 

(2

)%

Total % change

28

%

 

20

%

 

42

%

 

37

%

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Pharma Consumer Health

 

 

2022 vs. 2021

 

2022 vs. 2021

Year-Over-Year Change

Three Months Ended

March 31,

 

Nine Months Ended

March 31,

 

Net Revenue

 

Segment EBITDA

 

Net Revenue

 

Segment EBITDA

Organic

9

%

 

30

%

 

8

%

 

29

%

Impact of acquisitions

11

%

 

4

%

 

8

%

 

3

%

Impact of divestitures

(5

)%

 

(5

)%

 

(5

)%

 

(6

)%

Constant-currency change

15

%

 

29

%

 

11

%

 

26

%

Foreign currency translation impact on reporting

(2

)%

 

(3

)%

 

(1

)%

 

(2

)%

Total % change

13

%

 

26

%

 

10

%

 

24

%

Reconciliation of Segment EBITDA to Net Earnings

 

 

Three Months Ended

March 31,

 

Nine Months Ended

March 31,

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Biologics

$

218

 

 

$

182

 

 

$

584

 

 

$

425

 

Pharma and Consumer Health

 

144

 

 

 

115

 

 

 

390

 

 

 

314

 

Sub-Total

$

362

 

 

$

297

 

 

$

974

 

 

$

739

 

Reconciling items to net earnings

 

 

 

 

 

 

 

Unallocated costs

 

(54

)

 

 

123

 

 

 

(211

)

 

 

49

 

Depreciation and amortization

 

(99

)

 

 

(76

)

 

 

(278

)

 

 

(216

)

Interest expense, net

 

(33

)

 

 

(27

)

 

 

(91

)

 

 

(78

)

Income tax expense

 

(35

)

 

 

(85

)

 

 

(63

)

 

 

(91

)

Net earnings

$

141

 

 

$

232

 

 

$

331

 

 

$

403

 

Disaggregated Revenue

 

Three Months Ended March 31, 2022

 

 

Biologics

 

Pharma and Consumer Health

 

Total

Manufacturing & commercial product supply

 

 

$

200

 

$

348

 

$

548

Development services & clinical supply

 

 

 

500

 

 

224

 

 

724

Total

 

 

$

700

 

$

572

 

$

1,272

 

Inter-segment revenue elimination

 

 

1

 

 

 

Combined net revenue

 

$

1,273

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Nine Months Ended March 31, 2022

 

 

Biologics

 

Pharma and Consumer Health

 

Total

Manufacturing & commercial product supply

 

 

$

503

 

$

983

 

$

1,486

Development services & clinical supply

 

 

 

1,386

 

 

643

 

 

2,029

Total

 

 

$

1,889

 

$

1,626

 

$

3,515

 

Inter-segment revenue elimination

 

 

 

 

 

Combined net revenue

 

$

3,515

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Segment information for the three months ended June 30, 2022 and 2021

 

 

Three Months Ended

June 30, 2022

Biologics

 

Net revenue

$

671

 

Segment EBITDA

 

220

 

Segment EBITDA margin

 

32.7

%

Pharma and Consumer Health

 

Net revenue

 

642

 

Segment EBITDA

 

198

 

Segment EBITDA margin

 

30.8

%

Unallocated costs

 

(75

)

Combined totals

 

Net revenue

$

1,313

 

EBITDA from operations

$

343

 

Biologics

 

 

2022 vs. 2021

Year-Over-Year Change

Three Months Ended

June 30,

 

Net Revenue

 

Segment EBITDA

Organic

14

%

 

21

%

Impact of acquisitions

%

 

(1

)%

Constant-currency change

14

%

 

20

%

Foreign currency translation impact on reporting

(3

)%

 

(5

)%

Total % change

11

%

 

15

%

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Pharma and Consumer Health

 

 

2022 vs. 2021

Year-Over-Year Change

Three Months Ended

June 30,

 

Net Revenue

 

Segment EBITDA

Organic

7

%

 

8

%

Impact of acquisitions

9

%

 

7

%

Constant-currency change

16

%

 

15

%

Foreign currency translation impact on reporting

(6

)%

 

(8

)%

Total % change

10

%

 

7

%

Reconciliation of Segment EBITDA to Net Earnings

 

 

Three Months Ended

June 30,

 

2022

 

 

 

2021

 

Biologics

$

220

 

 

$

190

 

Pharma and Consumer Health

 

198

 

 

 

184

 

Sub-Total

$

418

 

 

$

374

 

Reconciling items to net earnings

 

 

 

Unallocated costs

 

(75

)

 

 

(48

)

Depreciation and amortization

 

(100

)

 

 

(73

)

Interest expense, net

 

(32

)

 

 

(32

)

Income tax expense

 

(23

)

 

 

(39

)

Net earnings

$

188

 

 

$

182

 

Disaggregated Revenue

 

Three Months Ended June 30, 2022

 

 

Biologics

 

Pharma and Consumer Health

 

Total

 

Manufacturing & commercial product supply

 

 

$

105

 

$

406

 

$

511

 

Development services & clinical supply

 

 

 

566

 

 

237

 

 

803

 

Total

 

 

$

671

 

$

643

 

$

1,314

 

 

Inter-segment revenue elimination

 

 

(1

)

 

 

 

Combined net revenue

 

$

1,313

 

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Segment information for the fiscal year ended June 30, 2022, 2021, and 2020

 

(Dollars in millions)

Fiscal Year Ended

June 30,

 

FX Impact

 

Constant Currency

Increase (Decrease)

 

 

2022

 

 

 

2021

 

 

 

 

Change $

 

Change %(1)

Biologics

 

 

 

 

 

 

 

 

 

Net revenue

$

2,560

 

 

$

1,938

 

 

$

(35

)

 

$

657

 

 

34

%

Segment EBITDA

 

804

 

 

 

615

 

 

 

(14

)

 

 

203

 

 

33

%

Pharma and Consumer Health

 

 

 

 

 

 

 

 

 

Net revenue

 

2,269

 

 

 

2,063

 

 

 

(50

)

 

$

256

 

 

12

%

Segment EBITDA

 

588

 

 

 

498

 

 

 

(17

)

 

 

107

 

 

22

%

Inter-segment revenue elimination

 

(1

)

 

 

(3

)

 

 

1

 

 

 

1

 

 

16

%

Unallocated Costs

 

(286

)

 

 

1

 

 

 

5

 

 

 

(292

)

 

*

Combined totals

 

 

 

 

 

 

 

 

 

Net revenue

$

4,828

 

 

$

3,998

 

 

$

(84

)

 

$

914

 

 

23

%

EBITDA from operations

$

1,106

 

 

$

1,114

 

 

$

(26

)

 

$

18

 

 

2

%

 

(1) Change % calculations are based on amounts prior to rounding.

*Percentage Not meaningful

Biologics

 

 

2022 vs. 2021

Year-Over-Year Change

Fiscal Year Ended

June 30,

 

Net Revenue

 

Segment EBITDA

Organic

34

%

 

34

%

Impact of acquisitions

%

 

(1

)%

Constant-currency change

34

%

 

33

%

Foreign currency translation impact on reporting

(2

)%

 

(2

)%

Total % change

32

%

 

31

%

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Pharma and Consumer Health

 

 

2022 vs. 2021

Year-Over-Year Change

Fiscal Year Ended

June 30,

 

Net Revenue

 

Segment EBITDA

Organic

8

%

 

21

%

Impact of acquisitions

8

%

 

5

%

Impact of divestitures

(3

)%

 

(4

)%

Constant-currency change

13

%

 

22

%

Foreign currency translation impact on reporting

(3

)%

 

(4

)%

Total % change

10

%

 

18

%

Reconciliation of Segment EBITDA to Net Earnings

 

 

Fiscal Year Ended

June 30,

 

2022

 

 

 

2021

 

 

 

2020

 

Biologics

$

804

 

 

$

615

 

 

$

239

 

Pharma and Consumer Health

 

588

 

 

 

498

 

 

 

547

 

Sub-Total

$

1,392

 

 

$

1,113

 

 

$

786

 

Reconciling items to net earnings

 

 

 

 

 

Unallocated costs

 

(286

)

 

 

1

 

 

 

(146

)

Depreciation and amortization

 

(378

)

 

 

(289

)

 

 

(254

)

Interest expense, net

 

(123

)

 

 

(110

)

 

 

(126

)

Income tax expense

 

(86

)

 

 

(130

)

 

 

(39

)

Net earnings

$

519

 

 

$

585

 

 

$

221

 

Disaggregated Revenue

 

Fiscal Year Ended June 30, 2022

 

 

Biologics

 

Pharma and Consumer Health

 

Total

Manufacturing & commercial product supply

 

 

$

608

 

$

1,389

 

$

1,997

 

Development services & clinical supply

 

 

 

1,952

 

 

880

 

 

2,832

 

Total

 

 

$

2,560

 

$

2,269

 

$

4,829

 

 

Inter-segment revenue elimination

 

 

(1

)

 

 

 

Combined net revenue

 

$

4,828

 

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Fiscal Year Ended June 30, 2021

 

 

Biologics

 

Pharma and Consumer Health

 

Total

Manufacturing & commercial product supply

 

 

$

532

 

$

1,166

 

$

1,698

 

Development services & clinical supply

 

 

 

1,406

 

 

896

 

 

2,302

 

Total

 

 

$

1,938

 

$

2,062

 

$

4,000

 

 

Inter-segment revenue elimination

 

 

(2

)

 

 

 

Combined net revenue

 

$

3,998

 

Fiscal Year Ended June 30, 2020

 

 

Biologics

 

Pharma and Consumer Health

 

Total

Manufacturing & commercial product supply

 

 

$

333

 

$

1,188

 

$

1,521

 

Development services & clinical supply

 

 

 

698

 

 

876

 

 

1,574

 

Total

 

 

$

1,031

 

$

2,064

 

$

3,095

 

 

Inter-segment revenue elimination

 

 

(1

)

 

 

 

Combined net revenue

 

$

3,094

 

Segment Net Revenue as a % of Total Net Revenue

 

 

Three Months Ended

 

June 30, 2022

 

March 31, 2022

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

Biologics

51

%

 

55

%

 

53

%

 

53

%

 

51

%

Pharma and Consumer Health

49

%

 

45

%

 

47

%

 

47

%

 

49

%

Net Revenue

100

%

 

100

%

 

100

%

 

100

%

 

100

%

Total Assets

 

June 30, 2022

 

June 30, 2021

Biologics

$

5,770

 

$

5,009

Pharma and Consumer Health

 

4,355

 

 

3,320

Corporate and eliminations

 

382

 

 

783

Total assets

$

10,507

 

$

9,112

 

Catalent, Inc.

Prior Periods Recast for Segment Reorganization

(Unaudited; dollars in millions)

 

Capital Expenditures

 

 

Fiscal Year Ended June 30,

 

 

2022

 

 

2021

 

 

2020

Biologics

$

453

 

$

516

 

$

330

Pharma and Consumer Health

 

183

 

 

151

 

 

119

Corporate

 

30

 

 

19

 

 

17

Total capital expenditures

$

666

 

$

686

 

$

466

 

Investor Contact:
Catalent, Inc.
Paul Surdez
732-537-6325
investors@catalent.com

Source: Catalent, Inc.

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