Technology
Clarivate Reports Third Quarter 2024 Results
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2 hours agoon
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LONDON, Nov. 6, 2024 /PRNewswire/ — Clarivate Plc (NYSE: CLVT) (the “Company” or “Clarivate”), a leading global provider of transformative intelligence, today reported results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights
Revenues of $622.2 million decreased 3.9%Organic revenues decreased 2.6%, as an increase in subscription revenues of 0.6% was offset by a decrease in re-occurring revenues of 1.1% and transactional and other revenues of 13.6%Net loss of $65.6 million; Net loss per diluted share of $0.09Adjusted net income(1) of $134.1 million decreased 12.1%; Adjusted diluted EPS(1) of $0.19 decreased 9.5% or $0.02Adjusted EBITDA(1) of $264.4 million decreased 6.0%; Adjusted EBITDA margin(1) of 42.5% decreased 100 basis points primarily due to lower revenuesNet cash provided by operating activities of $202.9 million increased $39.5 million; Free cash flow(1) of $126.3 million increased $24.6 million primarily due to the timing of working capital
Nine Months Ended September 30, 2024 Financial Highlights
Revenues of $1,893.7 million decreased 2.6%Organic revenues decreased 1.5% as an increase in subscription revenues of 1.2% was offset by a decline in re-occurring revenues of 2.3% and transactional and other revenues of 9.3%Net loss of $444.9 million; Net loss per diluted share of $0.69Adjusted net income(1) of $379.8 million decreased 12.8%; Adjusted diluted EPS(1) of $0.52 decreased 11.9% or $0.07Adjusted EBITDA(1) of $775.1 million decreased 5.4%; Adjusted EBITDA margin(1) of 40.9% decreased 120 basis points primarily due to lower revenuesNet cash provided by operating activities decreased $48.0 million to $505.3 million; Free cash flow(1) decreased $76.3 million to $298.4 million primarily due to lower operating income and increased capital expenditures
“Clarivate’s third quarter results are unsatisfactory and reflect an overdependency on fluctuating transactional revenue and areas of the business with low margin characteristics,” said Matti Shem Tov, Chief Executive Officer. “As we look ahead, it is clear the Company has work to do to improve performance. Our Value Creation Plan is designed to increase subscription and re-occurring revenue, improve sales execution, accelerate innovation and continue portfolio solutions rationalization. We will leverage Clarivate’s strong foundation, unique product offerings and talented team to take the necessary actions to improve predictability and drive profitable growth. Alongside the management team and Board, I am invigorated by the opportunities before us and remain focused on successfully executing our strategy to realize Clarivate’s potential.”
Removal of Outlook
As a result of the recent CEO transition and the work being done under the Value Creation Plan, the Company has removed its forward-looking outlook for 2024. All previous outlooks provided by the Company should no longer be relied upon.
Selected Financial Information
Three Months Ended
September 30,
Change
Nine Months Ended
September 30,
Change
(in millions, except percentages and per share data), (unaudited)
2024
2023
$
%
2024
2023
$
%
Revenues
$ 622.2
$ 647.2
$ (25.0)
(3.9) %
$ 1,893.7
$ 1,945.1
$ (51.4)
(2.6) %
Net income (loss)
$ (65.6)
$ 12.3
$ (77.9)
N/M
$ (444.9)
$ (67.3)
$ (377.6)
N/M
Diluted EPS
$ (0.09)
$ (0.01)
$ (0.08)
N/M
$ (0.69)
$ (0.18)
$ (0.51)
N/M
Weighted average ordinary shares, diluted
718.7
670.9
47.8
7.1 %
690.5
673.9
16.6
2.5 %
Adjusted EBITDA(1)
$ 264.4
$ 281.4
$ (17.0)
(6.0) %
$ 775.1
$ 819.0
$ (43.9)
(5.4) %
Adjusted net income(1)
$ 134.1
$ 152.6
$ (18.5)
(12.1) %
$ 379.8
$ 435.7
$ (55.9)
(12.8) %
Adjusted diluted EPS(1)
$ 0.19
$ 0.21
$ (0.02)
(9.5) %
$ 0.52
$ 0.59
$ (0.07)
(11.9) %
Adjusted weighted average ordinary shares, diluted(1)
723.5
731.4
(7.9)
(1.1) %
726.1
733.6
(7.5)
(1.0) %
Net cash provided by operating activities
$ 202.9
$ 163.4
$ 39.5
24.2 %
$ 505.3
$ 553.3
$ (48.0)
(8.7) %
Free cash flow(1)
$ 126.3
$ 101.7
$ 24.6
24.2 %
$ 298.4
$ 374.7
$ (76.3)
(20.4) %
Third Quarter 2024 Commentary
Revenues for the third quarter decreased $25.0 million, or 3.9%, to $622.2 million, primarily due to the divestiture of Valipat in April 2024 and lower transactional sales across all three segments. Organic revenues decreased $16.5 million or 2.6%.
Subscription revenues for the third quarter increased $3.0 million, or 0.7%, to $411.1 million. Organic subscription revenues increased 0.6%, driven by price increases, partially offset by lower net volume in IP and LS&H.
Re-occurring revenues for the third quarter decreased $0.1 million, or 0.1%, to $106.7 million. Organic re-occurring revenues decreased 1.1%, primarily due to lower IP patent renewal volume.
Transactional and other revenues for the third quarter decreased $27.9 million, or 21.1%, to $104.4 million. Organic transactional and other revenues decreased 13.6%, due to lower sales across all three segments.
Balance Sheet and Cash Flow
As of September 30, 2024, cash and cash equivalents of $388.5 million increased $17.8 million compared to December 31, 2023.
The Company’s total debt outstanding as of September 30, 2024 was $4,711.5 million, a decrease of $58.8 million compared to December 31, 2023, driven by an accelerated debt repayment.
Net cash provided by operating activities of $505.3 million for the nine months ended September 30, 2024 decreased $48.0 million compared to the prior year period, primarily due to lower operating results, partially offset by timing differences in working capital. Free cash flow(1) for the nine months ended September 30, 2024 was $298.4 million, a decrease of $76.3 million compared to the prior year period.
Notes to press release
(1) Non-GAAP measure. Please see “Reconciliations to Certain Non-GAAP Measures” in this release for important disclosures and reconciliations of these financial measures to the most directly comparable GAAP measure. These terms are defined elsewhere in this press release.
N/M – Represents a change approximately equal or in excess of 100% or not meaningful.
Conference Call and Webcast
Clarivate will host a conference call and webcast today to review the results for the third quarter at 9:00 a.m. Eastern Time. The webcast is open to all interested parties and may include forward-looking information.
The live webcast of the earnings call will be accessible through the investor relations section of the Company’s website. To join the webcast please visit https://events.q4inc.com/attendee/495058600.
Interested parties may access the live audio broadcast. U.S. participants may call 800-715-9871; international participants may call +1 646-307-1963 (long-distance charges will apply). The conference ID number is 5907538.
A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion of the live call and will remain available for one year.
Use of Non-GAAP Financial Measures
Non-GAAP results are financial measures that are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and are presented only as a supplement to our financial statements based on GAAP. Non-GAAP financial information is provided to enhance the reader’s understanding of our financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP. They are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. As a result, you should not consider such measures in isolation from, or as a substitute for, financial measures or results of operations calculated or determined in accordance with GAAP.
We use non-GAAP measures in our operational and financial decision-making. We believe that such measures allow us to focus on what we deem to be a more reliable indicator of ongoing operating performance and our ability to generate cash flow from operations, and we also believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. These measures can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of GAAP financial disclosures. However, non-GAAP measures have limitations as analytical tools and because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
Definitions and reconciliations of non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted diluted EPS, and Free cash flow to the most directly comparable GAAP measures are provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items, or that any projections and estimates will be realized in their entirety or at all.
Forward-Looking Statements
This communication includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements” within the meaning of the “safe harbor provisions” of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, anticipated cost savings, results of operations, financial condition, liquidity, prospects, growth, strategies, and the markets in which we operate. Such forward-looking statements are based on available current market material and management’s expectations, beliefs, and forecasts concerning future events impacting us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk Factors of our annual report on Form 10-K. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Please consult our public filings with the SEC or on our website at www.clarivate.com.
About Clarivate
Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
September 30,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents, including restricted cash
$ 388.5
$ 370.7
Accounts receivable, net
771.8
908.3
Prepaid expenses
97.7
88.5
Other current assets
81.1
68.0
Assets held for sale
—
26.7
Total current assets
1,339.1
1,462.2
Property and equipment, net
47.3
51.6
Other intangible assets, net
8,726.7
9,006.6
Goodwill
1,736.8
2,023.7
Other non-current assets
71.8
60.8
Deferred income taxes
50.8
46.7
Operating lease right-of-use assets
58.1
55.2
Total assets
$ 12,030.6
$ 12,706.8
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 126.5
$ 144.1
Accrued compensation
111.7
126.5
Accrued expenses and other current liabilities
375.1
315.2
Current portion of deferred revenues
890.2
983.1
Current portion of operating lease liability
22.1
24.4
Liabilities held for sale
—
6.7
Total current liabilities
1,525.6
1,600.0
Long-term debt
4,632.5
4,721.1
Non-current portion of deferred revenues
21.6
38.7
Other non-current liabilities
52.5
41.9
Deferred income taxes
227.0
249.6
Operating lease liabilities
57.9
63.2
Total liabilities
6,517.1
6,714.5
Commitments and contingencies
Shareholders’ equity:
Preferred Shares, no par value; 14.4 shares authorized; 5.25% Mandatory Convertible Preferred Shares, Series A, zero and 14.4 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively
—
1,392.6
Ordinary Shares, no par value; unlimited shares authorized; 710.3 and 666.1 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively
13,069.0
11,740.5
Accumulated other comprehensive loss
(433.8)
(495.3)
Accumulated deficit
(7,121.7)
(6,645.5)
Total shareholders’ equity
5,513.5
5,992.3
Total liabilities and shareholders’ equity
$ 12,030.6
$ 12,706.8
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
(In millions, except per share data)
2024
2023
2024
2023
Revenues
$ 622.2
$ 647.2
$ 1,893.7
$ 1,945.1
Operating expenses:
Cost of revenues
210.1
220.6
641.5
674.8
Selling, general and administrative costs
169.7
171.9
546.8
559.3
Depreciation and amortization
177.2
176.8
541.0
527.5
Goodwill and intangible asset impairments
13.8
—
316.6
135.2
Restructuring and other impairments
4.0
3.7
14.2
25.3
Other operating expense (income), net
25.7
(13.0)
46.9
(30.5)
Total operating expenses
600.5
560.0
2,107.0
1,891.6
Income (loss) from operations
21.7
87.2
(213.3)
53.5
Fair value adjustment of warrants
—
(12.6)
(5.2)
(14.4)
Interest expense, net
72.2
71.9
213.5
218.5
Income (loss) before income taxes
(50.5)
27.9
(421.6)
(150.6)
Provision (benefit) for income taxes
15.1
15.6
23.3
(83.3)
Net income (loss)
(65.6)
12.3
(444.9)
(67.3)
Dividends on preferred shares
—
18.9
31.3
56.3
Net income (loss) attributable to ordinary shares
$ (65.6)
$ (6.6)
$ (476.2)
$ (123.6)
Per share:
Basic
$ (0.09)
$ (0.01)
$ (0.69)
$ (0.18)
Diluted
$ (0.09)
$ (0.01)
$ (0.69)
$ (0.18)
Weighted average shares used to compute earnings per share:
Basic
718.7
670.9
690.5
673.9
Diluted
718.7
670.9
690.5
673.9
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30,
(In millions)
2024
2023
Cash Flows From Operating Activities
Net income (loss)
$ (444.9)
$ (67.3)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
541.0
527.5
Share-based compensation
48.9
97.1
Restructuring and other impairments, including goodwill
314.5
138.9
Gain on legal settlement
—
(49.4)
Deferred income taxes
(28.8)
(51.3)
Amortization of debt issuance costs
11.1
12.9
Other operating activities
36.1
2.4
Changes in operating assets and liabilities:
Accounts receivable
148.2
110.3
Prepaid expenses
(8.5)
(10.6)
Other assets
(9.8)
19.5
Accounts payable
(16.5)
(2.4)
Accrued expenses and other current liabilities
22.1
(33.8)
Deferred revenues
(102.3)
(56.9)
Operating leases, net
(7.8)
(6.2)
Other liabilities
2.0
(77.4)
Net cash provided by operating activities
505.3
553.3
Cash Flows From Investing Activities
Capital expenditures
(206.9)
(178.6)
Payments for acquisitions, net of cash acquired
(32.0)
(2.3)
Proceeds from divestitures, net of cash divested
(19.2)
10.5
Net cash provided by (used for) investing activities
(258.1)
(170.4)
Cash Flows From Financing Activities
Principal payments on term loans
(58.1)
(150.0)
Payment of debt issuance costs and discounts
(20.1)
0.1
Repurchases of ordinary shares
(100.0)
(100.0)
Cash dividends on preferred shares
(37.7)
(56.7)
Payments related to finance lease
(0.7)
(0.8)
Payments related to tax withholding for share-based compensation
(13.9)
(14.8)
Net cash provided by (used for) financing activities
(230.5)
(322.2)
Effects of exchange rates
1.1
(10.3)
Net change in cash and cash equivalents, including restricted cash
17.8
50.4
Cash and cash equivalents, including restricted cash, beginning of period
370.7
356.8
Cash and cash equivalents, including restricted cash, end of period
$ 388.5
$ 407.2
Supplemental Revenues Information
Annualized contract value (“ACV”) represents the annualized value for the next 12 months of subscription-based client license agreements, assuming that all expiring license agreements during that period are renewed at their current price level. Our ACV was $1,596.4 and $1,579.2 as of September 30, 2024 and 2023, respectively, which corresponds to an increase of 1.1%. The increase in ACV was primarily due to the impact of price increases, partially offset by volume declines.
The following tables present our revenues by type and by segment for the periods indicated, as well as the drivers of the variances between periods, including as a percentage of such revenues.
Three Months Ended
September 30,
Change
% of Change
(In millions, except percentages); (unaudited)
2024
2023
$
%
Acquisitions
Disposals
FX
Organic
Subscription revenues
$ 411.1
$ 408.1
$ 3.0
0.7 %
0.2 %
— %
(0.1) %
0.6 %
Re-occurring revenues
106.7
106.8
(0.1)
(0.1) %
— %
— %
1.0 %
(1.1) %
Transactional and other revenues
104.4
132.3
(27.9)
(21.1) %
0.5 %
(8.1) %
0.1 %
(13.6) %
Revenues
$ 622.2
$ 647.2
$ (25.0)
(3.9) %
0.2 %
(1.6) %
0.1 %
(2.6) %
Nine Months Ended
September 30,
Change
% of Change
(In millions, except percentages); (unaudited)
2024
2023
$
%
Acquisitions
Disposals
FX
Organic
Subscription revenues
$ 1,219.8
$ 1,207.3
$ 12.5
1.0 %
0.1 %
— %
(0.3) %
1.2 %
Re-occurring revenues
317.8
325.5
(7.7)
(2.4) %
— %
— %
(0.1) %
(2.3) %
Transactional and other revenues
356.1
412.3
(56.2)
(13.6) %
0.2 %
(4.5) %
— %
(9.3) %
Revenues
$ 1,893.7
$ 1,945.1
$ (51.4)
(2.6) %
0.1 %
(1.0) %
(0.2) %
(1.5) %
Three Months Ended
September 30,
Change
% of Change
(In millions, except percentages); (unaudited)
2024
2023
$
%
Acquisitions
Disposals
FX
Organic
Academia & Government
$ 321.3
$ 327.2
$ (5.9)
(1.8) %
— %
— %
(0.1) %
(1.7) %
Intellectual Property
199.8
211.7
(11.9)
(5.6) %
0.1 %
(4.6) %
0.7 %
(1.8) %
Life Sciences & Healthcare
101.1
108.3
(7.2)
(6.6) %
0.9 %
(0.7) %
(0.3) %
(6.5) %
Revenues
$ 622.2
$ 647.2
$ (25.0)
(3.9) %
0.2 %
(1.6) %
0.1 %
(2.6) %
Nine Months Ended
September 30,
Change
% of Change
(In millions, except percentages); (unaudited)
2024
2023
$
%
Acquisitions
Disposals
FX
Organic
Academia & Government
$ 983.5
$ 983.9
$ (0.4)
— %
— %
— %
(0.1) %
0.1 %
Intellectual Property
602.3
637.1
(34.8)
(5.5) %
— %
(2.6) %
(0.2) %
(2.7) %
Life Sciences & Healthcare
307.9
324.1
(16.2)
(5.0) %
0.5 %
(0.6) %
(0.5) %
(4.4) %
Revenues
$ 1,893.7
$ 1,945.1
$ (51.4)
(2.6) %
0.1 %
(1.0) %
(0.2) %
(1.5) %
Reconciliations to Certain Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and amortization, and Interest expense, net, adjusted to exclude acquisition and/or disposal-related transaction costs, share-based compensation, restructuring expenses, impairments, the impact of certain non-cash fair value adjustments on financial instruments, unrealized foreign currency gains/losses, legal settlements, and other items that are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues.
The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the three and nine months ended September 30, 2024 and 2023 and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same periods:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(In millions, except percentages); (unaudited)
2024
2023
2024
2023
Net income (loss)
$ (65.6)
$ 12.3
$ (444.9)
$ (67.3)
Provision (benefit) for income taxes
15.1
15.6
23.3
(83.3)
Depreciation and amortization
177.2
176.8
541.0
527.5
Interest expense, net
72.2
71.9
213.5
218.5
Transaction related costs
6.1
2.7
13.6
5.1
Share-based compensation expense
15.4
25.4
49.7
97.1
Goodwill and intangible asset impairments
13.8
—
316.6
135.2
Restructuring and other impairments
4.0
3.7
14.2
25.3
Fair value adjustment of warrants
—
(12.6)
(5.2)
(14.4)
Other(1)
26.2
(14.4)
53.3
(24.7)
Adjusted EBITDA
$ 264.4
$ 281.4
$ 775.1
$ 819.0
Net income (loss) margin
(10.5) %
1.9 %
(23.5) %
(3.5) %
Adjusted EBITDA margin
42.5 %
43.5 %
40.9 %
42.1 %
(1) Primarily reflects the net impact of unrealized foreign currency gains and losses, as well as other items that do not reflect our ongoing operating performance. For the nine months ended September 30, 2024, the amount includes a $14.8 loss on divestiture and for the nine months ended September 30, 2023, the amount includes a $49.4 gain on legal settlement.
Adjusted net income and Adjusted diluted EPS
Adjusted net income represents Net income (loss), adjusted to exclude acquisition and/or disposal-related transaction costs, amortization related to acquired intangible assets, share-based compensation, restructuring expenses, impairments, the impact of certain non-cash fair value adjustments on financial instruments, unrealized foreign currency gains/losses, legal settlements, and other items that are included in net income (loss) for the period that we do not consider indicative of our ongoing operating performance and the associated income tax impact of such adjustments.
Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares. The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are dilutive.
The following tables present our calculation of Adjusted net income and Adjusted diluted EPS for the three and nine months ended September 30, 2024 and 2023 and reconciles these non-GAAP measures to our Net income (loss) and diluted EPS for the same periods:
Three Months Ended September 30,
2024
2023
(In millions, except per share amounts); (unaudited)
Amount
Per Share
Amount
Per Share
Net income (loss) and EPS
$ (65.6)
$ (0.09)
$ 12.3
$ 0.02
Transaction related costs
6.1
0.01
2.7
—
Share-based compensation expense
15.4
0.02
25.4
0.04
Amortization related to acquired intangible assets
138.7
0.19
141.9
0.21
Goodwill and intangible asset impairments
13.8
0.02
—
—
Restructuring and other impairments
4.0
0.01
3.7
0.01
Fair value adjustment of warrants
—
—
(12.6)
(0.02)
Other(1)
26.2
0.04
(14.4)
(0.04)
Income tax impact of related adjustments
(4.5)
(0.01)
(6.4)
(0.01)
Adjusted net income and Adjusted diluted EPS
$ 134.1
$ 0.19
$ 152.6
$ 0.21
Adjusted weighted average ordinary shares, diluted
723.5
731.4
(1) Primarily reflects the net impact of unrealized foreign currency gains and losses, as well as other items that do not reflect our ongoing operating performance.
Nine Months Ended September 30,
2024
2023
(In millions, except per share amounts); (unaudited)
Amount
Per Share
Amount
Per Share
Net income (loss) and EPS
$ (444.9)
$ (0.64)
$ (67.3)
$ (0.10)
Transaction related costs
13.6
0.02
5.1
0.01
Share-based compensation expense
49.7
0.07
97.1
0.14
Amortization related to acquired intangible assets
416.9
0.60
429.8
0.64
Goodwill and intangible asset impairments
316.6
0.46
135.2
0.20
Restructuring and other impairments
14.2
0.02
25.3
0.04
Fair value adjustment of warrants
(5.2)
(0.01)
(14.4)
(0.02)
Other(1)
53.3
0.05
(24.7)
(0.10)
Income tax impact of related adjustments
(34.4)
(0.05)
(150.4)
(0.22)
Adjusted net income and Adjusted diluted EPS
$ 379.8
$ 0.52
$ 435.7
$ 0.59
Adjusted weighted average ordinary shares, diluted
726.1
733.6
(1) Primarily reflects the net impact of unrealized foreign currency gains and losses, as well as other items that do not reflect our ongoing operating performance. For the nine months ended September 30, 2024, the amount includes a $14.8 loss on divestiture and for the nine months ended September 30, 2023, the amount includes a $49.4 gain on legal settlement.
Free cash flow
Free cash flow represents Net cash provided by (used for) operating activities less Capital expenditures. The following table reconciles this non-GAAP measure to Net cash provided by operating activities:
Three Months Ended September 30,
Nine Months Ended September 30,
(In millions); (unaudited)
2024
2023
2024
2023
Net cash provided by operating activities
$ 202.9
$ 163.4
$ 505.3
$ 553.3
Capital expenditures
(76.6)
(61.7)
(206.9)
(178.6)
Free cash flow
$ 126.3
$ 101.7
$ 298.4
$ 374.7
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Technology
Avantor® Appoints Dame Louise Makin, DBE, Ph.D., to its Board of Directors
Published
8 mins agoon
November 6, 2024By
RADNOR, Pa., Nov. 6, 2024 /PRNewswire/ — Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, announced that the Avantor Board of Directors has appointed Dame Louise Makin, DBE, Ph.D., as a director with an initial term expiring at Avantor’s 2025 Annual Meeting of Stockholders. The appointment of Dame Louise as an independent director fills a vacant board seat.
Dame Louise brings a wealth of leadership and industry experience to the Avantor Board. She served as Chief Executive Officer of BTG plc, an international specialist healthcare company, for 15 years and led their transformation through organic growth and acquisitions. The company was acquired by Boston Scientific in 2019. Earlier in her career, she held several leadership positions at Baxter Healthcare, most recently as President of Biopharmaceuticals Europe.
“Dame Louise has a proven track record of success in the life sciences industry, and we are excited to welcome her to the Avantor Board of Directors,” said Jonathan Peacock, Chairman of the Avantor Board. “Her addition further demonstrates Avantor’s commitment to ensuring we have a diverse Board, with the right mix of skillsets and experience to drive innovation across our portfolio, advance our mission, and create long-term shareholder value.”
“It is an honor to join the Avantor Board of Directors, and I look forward to working closely with the board and executive team to further strengthen the company’s position as a leader in the life sciences and advanced technologies industries,” said Dame Louise. “Avantor’s global reach, innovative products, and services uniquely position it to drive advancements at every stage of the scientific journey and deliver differentiated value to its many stakeholders.”
“Dame Louise is an excellent addition to our Board. I welcome her insights and expertise as we continue to execute our strategic plan to drive long-term growth and value creation,” said Michael Stubblefield, Avantor President and Chief Executive Officer.
Dame Louise currently serves as non-executive chair of the Halma plc Board of Directors and has served as a Non-Executive Director on the Boards of Premier Foods plc, Intertek Group plc, Woodford Patient Capital Trust, Atotech Ltd., and Theramex Ltd. She was also a Trustee of The Outward Bound Trust for 10 years and Chair of the 1851 Trust for five years.
Dame Louise is an Honorary Fellow of St John’s College, Cambridge. She holds both a master’s degree in natural sciences and a Ph.D. in material sciences from the University of Cambridge and earned an MBA from The Open University in Milton Keynes, England. She became a Dame Commander of the Order of the British Empire in 2014.
About Avantor
Avantor® is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. We work side-by-side with customers at every step of the scientific journey to enable breakthroughs in medicine, healthcare, and technology. Our portfolio is used in virtually every stage of the most important research, development and production activities at more than 300,000 customer locations in 180 countries. For more information, visit avantorsciences.com and find us on LinkedIn, X (Twitter) and Facebook.
Global Media Contact
Eric Van Zanten
Head of External Communications
Avantor
610-529-6219
Eric.VanZanten@avantorsciences.com
Investor Relations Contact
Christina Jones
Vice President, Investor Relations
Avantor
805-617-5297
Christina.Jones@avantorsciences.com
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SOURCE Avantor and Financial News
Technology
Phoenix IB Advises Spray Products in Successful $40 Million Refinancing
Published
8 mins agoon
November 6, 2024By
PHILADELPHIA, Nov. 6, 2024 /PRNewswire/ — Phoenix IB®, a part of J.S. Held, a leading middle market special situations investment bank and independent licensed broker-dealer under federal and state securities law (CRD#: 132710/SEC#: 8-66628), acted as the exclusive investment banker to its long-term client, Spray Products Corporation, in arranging, structuring, and negotiating a $40 million loan package with Legacy Corporate Lending.
“Phoenix IB is delighted with the credit package we were able to arrange for Spray Products,” noted Michael Jacoby, a Senior Managing Director at Phoenix IB. “Not surprisingly, there was a lot of interest from a variety of lenders, both regulated and non-regulated. The Legacy team spent the time to understand the Company and its business plan, and tailored a solution that fit Spray’s needs and will provide the necessary support for years to come.”
Spray Products is a leading custom contract manufacturer of aerosol and liquid consumer products. Proceeds from the financing will be utilized to refinance the Company’s existing credit facilities and fund additional working capital to finance its continued growth and capital expenditures. Peter Bastian, Executive Vice President of Spray Products LLC, shares, “We could not be more pleased with the closing of our new financing with Legacy Corporate Lending and the guidance we received throughout the transaction from Phoenix IB. The Phoenix team was able to successfully communicate our story, and through our new facility with Legacy, we are confident we have partnered with a firm that shares our values and is excited to support Spray’s next phase of growth.”
Legacy Corporate Lending LLC, in alliance with Bain Capital Credit, L.P., specializes in providing revolving credit facilities and term loans to businesses across diverse industries. The firm aims to facilitate access to capital for companies seeking alternatives to traditional bank lending or the syndicated lending market.
“We were extremely impressed with the refinancing process that Phoenix IB led for Spray Products,” said Clark Griffith, CEO of Legacy Corporate Lending, LLC. “The professionalism and fairness shown by Steven Warsaw, Michael Jacoby, and the team was refreshing to experience and appreciated in this competitive market. Our process was easy to navigate given the quality of the information, their responsiveness to questions, and the approach they took in understanding the best borrower/lender fit.”
Doug Greer, Spray Products Chief Financial Officer, adds, “Michael Jacoby, Steven Warsaw, and their team spent considerable time to understand the intricacies of our business and worked closely with us to develop a financing structure that meets our needs for the next several years. We believe that we will continue to see the benefits of their collaboration with our business well beyond our engagement.”
Across a broad spectrum of client types, from start-ups in an early stage with exciting growth potential to a mature company amid a corporate turnaround, Phoenix IB capital raising services are designed to provide tailored financing solutions across the capital structure, particularly for clients faced with complex growth or funding situations. “At Phoenix IB, every transaction we close reflects our precision, perseverance, and partnership with our clients,” shares Phoenix IB Managing Director Steven C. Warsaw. Mr. Warsaw continues, “The robust interest in financing Spray Products created a highly competitive process, and we are very pleased to have selected the loan package provided by Legacy, which we feel is best positioned to provide needed flexibility as Spray facilitates its next chapter of growth.”
About Phoenix IB
Phoenix IB is a boutique, special situations-oriented investment bank providing seamless investment banking solutions, including M&A advisory, complex restructurings, and capital placements. Phoenix IB is a US registered broker-dealer and member of FINRA and SIPC.
As a part of J.S. Held, Phoenix works alongside more than 1500 professionals globally and assists clients – corporations, insurers, law firms, governments, and institutional investors.
J.S. Held is a global consulting firm that combines technical, scientific, financial, and strategic expertise to advise clients seeking to realize value and mitigate risk. Our professionals serve as trusted advisors to organizations facing high-stakes events demanding urgent attention, staunch integrity, clear-cut analysis, and an understanding of both tangible and intangible assets. The firm provides a comprehensive suite of services, products, and data that enable clients to navigate complex, contentious, and often catastrophic situations.
J.S. Held professionals serve organizations across six continents, including 81% of the Global 200 Law Firms, 70% of the Forbes Top 20 Insurance Companies (85% of the NAIC Top 50 Property & Casualty Insurers), and 65% of the Fortune 100 Companies.
J.S. Held, its affiliates and subsidiaries are not certified public accounting firm(s) and do not provide audit, attest, or any other public accounting services. J.S. Held, its affiliates and subsidiaries are not law firms and do not provide legal advice. Securities offered through PM Securities, LLC, d/b/a Phoenix IB, a part of J.S. Held, member FINRA/ SIPC or Ocean Tomo Investment Group, LLC, a part of J.S. Held, member FINRA/ SIPC. All rights reserved.
Media Contact
Kristi L. Stathis, J.S. Held, +1 773 294 4360, Kristi.Stathis@jsheld.com, JSHeld.com
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SOURCE Phoenix IB, a part of J.S. Held
Technology
Grovara’s Safe B2B CPG Global Trading Platform Expands Product Offering Into Eyewear, Will Add 10-Plus Complementary Verticals By End Of 2025
Published
8 mins agoon
November 6, 2024By
PHILADELPHIA, Nov. 6, 2024 /PRNewswire/ — Grovara, the safe, all-in-one platform streamlining global trade for the Business-to-Business (B2B) Consumer Packaged Goods (CPG) industry, is expanding the offerings on its online marketplace beyond food and beverage beginning with the rapidly growing eyewear market.
The global eyewear market is projected to grow by more than 18% through 2029, presenting a tremendous growth opportunity via higher margins and increasing online sales. Grovara is now selling Popticals, collapsible sunglasses for active lifestyles featuring Italian craftsmanship and superior lens technology. In the coming weeks there are plans to add additional eyewear brands, which can now tap Grovara’s technology to simplify their typical sales transaction from three weeks to three clicks.
“The potential for Grovara’s platform is infinite, and expanding into the eyewear vertical is a great step forward as we ramp up and evolve our SaaS technology offering,” says Grovara CEO Peter Groverman. “Whether you’re selling a kombucha or carousel of sunglasses, the transaction process is the same and Grovara’s platform handles the full process.”
Popticals deliver an unequaled combination of quality, performance, and convenience. The brand boasts an innovative nylon-based lens technology, plus a patented micro-rail system that allows its glasses to collapse down for uniquely easy storage.
“We are excited to join Grovara’s growing platform and bring our unique product within the premium sunglasses market to a global audience,” says Gary DiSalvo, Owner and CEO of Popticals. “This partnership allows us to share our commitment to quality and innovation with more people. Additionally, it aligns with Grovara’s mission of making high-quality, complementary products easily accessible to businesses around the world.”
Over the last decade, Grovara has become a leader in the natural food and beverage sector by growing the global profile of some of the most well-known brands in the world – like GT’s Kombucha, True Citrus, and Honey Stinger — and helping them break into new markets. Grovara’s expansion into other complementary verticals will include 10 new product categories over the next 12 months, including beauty, pets, home goods, and alcohol.
Grovara’s CPG expansion is powered by its partnership with Accelerate360, an omni-commerce sales, media, and distribution company that propels promising brands by supercharging affinity and availability. Accelerate360 recently launched 50 models of premium reader eyeglasses on Grovara with many more categories and brands on the way.
“We are excited to partner with Grovara as they establish new product categories and provide expanded opportunities for entrepreneurs and challenger brands” says Accelerate360’s Sam Roberts, VP of eCommerce – Pure Play & Omni-Channel Retail.
Those CPG brands interested in joining Grovara’s platform can reach out for a demo of its SaaS technology here.
Contact:
J.A. Petrucci
215-203-2227
385927@email4pr.com
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SOURCE Grovara
Avantor® Appoints Dame Louise Makin, DBE, Ph.D., to its Board of Directors
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Grovara’s Safe B2B CPG Global Trading Platform Expands Product Offering Into Eyewear, Will Add 10-Plus Complementary Verticals By End Of 2025
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