Technology
Jaime L. Cook Appointed Vice President of Operations and Market Development at Linear Integrated Systems, Inc.
Published
5 hours agoon
By
FREMONT, Calif., Nov. 7, 2024 /PRNewswire/ — Linear Integrated Systems, Inc. is pleased to announce the appointment of Jaime L. Cook as Vice President of Operations and Market Development. In this pivotal role, Ms. Cook will oversee all operational functions and spearhead market development initiatives.
Jaime Cook has been a valued member of the Linear Systems team since 2009. Before assuming her new role, Ms. Cook served as Sales Manager, Director of Sales, and VP of Operations, gaining extensive experience across multiple facets of the company. Ms. Cook brings a wealth of knowledge and expertise to her position as VP of Operations & Market Development. She holds bachelor’s degrees in Real Estate and Land Use, as well as Strategic Management. Her education, certifications, and work experience have honed her skills in strategic planning, negotiation, and relationship building—qualities that significantly contribute to her expanded responsibilities at Linear Systems.
“I’m incredibly proud to have built my career at Linear Systems and to be part of a team of exceptional individuals committed to producing the industry’s best specialty linear semiconductors while consistently meeting the highest standards of performance and reliability,” said Cook. “I am excited to expand my responsibilities, drive operational excellence, and lead efforts to explore new market opportunities.”
Cindy L. Johnson, CEO of Linear Systems, stated, “Jaime’s leadership in operations and market development is pivotal as we aim to expand our product reach and strengthen customer relationships. Her strategic vision is vital to our mission of delivering ultra-reliable JFETs and other components that enable our clients to achieve outstanding performance in their designs.”
Founded 37 years ago by John M. Hall, Cindy L. Johnson, and John H. Hall, Linear Integrated Systems, Inc. is a privately held designer and manufacturer of small-signal discrete semiconductors based in Fremont, CA. John H. Hall, a co-founder of Intersil and the founder of Micro Power Systems, brought significant expertise and innovation to the company.
Linear Systems offers a diverse product line, including Dual JFET Amplifiers, Single JFET Amplifiers, JFET Switches, DMOS High Speed Switches, Low Leakage Diodes, Current Regulating Diodes, Bipolar Transistors, MOSFETs, Voltage Controlled Resistors and BIFET Amplifiers. Visit www.linearsystems.com to download our 2024 Data Book, Cross Reference Guide, datasheets, SPICE models, application notes, and more.
Stay connected and join our growing LinkedIn community for updates and insights. You can also follow us on YouTube, Facebook, Instagram and X.
Contact:
Laura Madonna
laura@linearsystems.com
Phone: (510) 490-9160
Website: www.linearsystems.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/jaime-l-cook-appointed-vice-president-of-operations-and-market-development-at-linear-integrated-systems-inc-302298015.html
SOURCE Linear Integrated Systems
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Technology
Cryoport Reports Third Quarter 2024 Financial Results
Published
28 mins agoon
November 7, 2024By
Q3 2024 Life Sciences Services revenue up 9% year-over-year, including BioStorage/BioServices revenue up 12% year-over-year Supported a record total of 691 global clinical trials as of September 30, 2024Company reaffirmed full year 2024 revenue guidance of $225 to $235 million
NASHVILLE, Tenn., Nov. 7, 2024 /PRNewswire/ — Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global leader in supply chain solutions for the life sciences industry, today announced financial results for its third quarter (Q3) and first nine months (9M) of 2024.
Jerrell Shelton, CEO of Cryoport, remarked, “Our Life Sciences Services business showed 9% growth during the third quarter, with BioStorage/BioServices revenue increasing by 12% compared to the third quarter of last year. The increase in our services revenue was coupled with a substantial improvement in gross margin to 46% for our services business.
“Reflecting on our performance through the third quarter, we are maintaining our full-year revenue forecast of $225 million to $235 million, anticipating continued growth in our services business while acknowledging the ongoing softness in product sales.
“We have been actively executing on our cost reduction and capital realignment strategies and we are currently on course to complete these adjustments by the year’s end. These actions are already showing positive results, as evidenced by the improvement in our gross margin, adjusted EBITDA and positive cash flow this quarter, moving us closer towards our objective of sustainable profitability. We believe that these measures will lead us to a return to positive adjusted EBITDA during 2025.
“We expect the macroeconomic and sector-specific challenges that have impacted many companies serving the life sciences industry to continue for the near future, so we plan to further sharpen our focus on profitable growth and maintaining a strong balance sheet. We continue to be optimistic about our long-term business growth trajectory. We believe that we are strategically positioned to leverage the anticipated long-term growth in the Life Sciences and the Cell & Gene Therapy market through our comprehensive and integrated supply chain solutions.
“In October, we launched our IntegriCell™ Cryopreservation Solution with a new state-of-the-art facility on our Houston campus. This offering addresses yet another critical aspect in optimizing the supply chain for the development and commercialization of cell-based therapies through high quality, standardized, cryopreserved starting material,” Mr. Shelton concluded.
In tabular form, Q3 2024 and 9M 2024 revenue compared to Q3 2023 and 9M 2023, respectively, was as follows:
Cryoport, Inc. and Subsidiaries
Revenue
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)
2024
2023
% Change
2024
2023
% Change
Life Sciences Services
$ 39,278
$ 36,022
9 %
$ 114,104
$ 107,062
7 %
BioLogistics Solutions
35,302
32,486
9 %
103,076
97,093
6 %
BioStorage/BioServices
3,976
3,536
12 %
11,028
9,969
11 %
Life Sciences Products
$ 17,386
$ 20,135
-14 %
$ 54,749
$ 68,933
-21 %
Total Revenue
$ 56,664
$ 56,157
1 %
$ 168,853
$ 175,995
-4 %
BioStorage/BioServices revenue continues to grow double digits year-over-year, increasing 12%, as we continue to introduce our expanded capabilities to existing customers as well as add new customers into our global network, and as more allogeneic clinical and commercial therapies progress in the number of patients treated.
Revenue from commercially approved Cell & Gene therapies represented $6.1 million, or 11%, of total revenue for Q3 2024. During Q3 2024, one new therapy was approved by the Pharmaceuticals and Medical Devices Agency (PMDA) of Japan, which was SanBio’s AKUUGO, an allogeneic treatment for the indication of improving chronic motor paralysis resulting from traumatic brain injury. In addition, the FDA approved Adaptimmune’s Tecelra for the treatment of adults with unresectable or metastatic synovial sarcoma, the first cell therapy targeting a solid tumor. Our total commercial therapy count was seventeen (17) as of September 30, 2024.
As of September 30, 2024, Cryoport supported a total of 691 global clinical trials, a net increase of 21 clinical trials over September 30, 2023, with 79 trials in Phase 3. The number of trials by phase and region are as follows:
Cryoport Supported Clinical Trials by Phase
Clinical Trials
September 30,
2022
2023
2024
Phase 1
268
275
295
Phase 2
295
314
317
Phase 3
80
81
79
Total
643
670
691
Cryoport Supported Clinical Trials by Region
Clinical Trials
September 30,
2022
2023
2024
Americas
496
516
531
EMEA
105
112
112
APAC
42
42
48
Total
643
670
691
During the third quarter, three (3) Biologics License Application (BLA)/Marketing Authorization Application (MAA) filings occurred, and one (1) BLA filing occurred in October. For the remainder of 2024, we anticipate up to an additional four (4) application filings and two (2) new therapy approvals, with another two (2) possible approvals of new therapies in January of 2025.
BioLogistics Solutions revenue rose 9% year over year during the third quarter as it continued to benefit from the ramp in temperature-controlled logistics revenue outside of the Cell & Gene therapy market, including biosimilars, antibodies, APIs and a growing number of Direct-to-Patient shipments.
Financial Highlights
Revenue
Total revenue for Q3 2024 was $56.7 million compared to $56.2 million for Q3 2023, a year-over-year increase of 1% or $0.5 million. Life Sciences Services revenue for Q3 2024 was $39.3 million compared to $36.0 million for Q3 2023, up 9.0% year-over-year and 3.3% sequentially, including BioStorage/BioServices revenue of $4.0 million, up 12.4% year-over-year and 12.9% sequentially. Life Sciences Products revenue for Q3 2024 was $17.4 million compared to $20.1 million for Q3 2023, down 13.7% year-over-year and 11.1% sequentially.Total revenue for 9M 2024 was $168.9 million compared to $176.0 million for 9M 2023. Life Sciences Services revenue for 9M 2024 was $114.1 million compared to $107.1 million for 9M 2023, including BioStorage/BioServices revenue of $11.0 million for 9M 2024 compared to $10.0 million for 9M 2023.Life Sciences Products revenue for 9M 2024 was $54.7 million compared to $68.9 million for 9M 2023.
Gross Margin
Total gross margin was 44.8% for Q3 2024 compared to 43.2% for Q3 2023. Gross margin for Life Sciences Services was 46.0% for Q3 2024 compared to 42.2% for Q3 2023. Gross margin for Life Sciences Products was 42.1% for Q3 2024 compared to 44.9% for Q3 2023.Total gross margin was 42.8% for 9M 2024 compared to 43.2% for 9M 2023. Gross margin for Life Sciences Services was 44.0% for 9M 2024 compared to 44.1% for 9M 2023. Gross margin for Life Sciences Products was 40.5% for 9M 2024 compared to 41.9% for 9M 2023.
Operating Costs and Expenses
Operating costs and expenses were $41.8 million for Q3 2024 compared to operating costs and expenses of $41.2 million for Q3 2023. Operating costs and expenses for 9M 2024 were $189.3 million compared to $121.4 million for 9M 2023. The operating costs and expenses for 9M 2024 include an impairment loss of $63.8 million recorded in Q2 2024, which is primarily related to the write off of remaining goodwill for MVE Biological Solutions.
Net Income (Loss)
Net income was $0.8 million for Q3 2024 compared to a net loss of $13.3 million for Q3 2023, which was primarily a result of increased gains on the extinguishment of debt. Net loss was $96.1 million for 9M 2024 compared to a net loss of $37.2 million for the same period in 2023, which was primarily a result of the impairment loss of $63.8 million recorded in Q2 2024.Net loss attributable to common stockholders was $1.2 million, or $0.02 per share, and $102.1 million, or $2.07 per share, for Q3 2024 and 9M 2024, respectively. This compares to a net loss attributable to common stockholders of $15.3 million, or $0.31 per share, and $43.2 million, or $0.89 per share, for Q3 2023 and 9M 2023, respectively.
Adjusted EBITDA
Adjusted EBITDA was a negative $2.4 million for Q3 2024, compared to a negative $3.1 million for Q3 2023. Adjusted EBITDA for 9M 2024 was a negative $13.9 million, compared to a negative $1.7 million for 9M 2023.
Cash, Cash equivalents, and Short-Term Investments
Cryoport held $272.7 million in cash, cash equivalents, and short-term investments as of September 30, 2024.
Convertible Debt repurchases
In Q3 2024, the Company announced that its Board of Directors had authorized a repurchase program to purchase up to $200.0 million of the Company’s common stock and/or convertible senior notes (the “2024 Repurchase Program”), which was in addition to the remaining amount under its 2022 repurchase program. The 2024 Repurchase Program became effective on August 1, 2024, and remains in effect through December 31, 2027. The Company has approximately $73.9 million in total of repurchase authorization available under its two Repurchase Programs as of September 30, 2024.During Q3 2024, the Company repurchased $175.0 million in aggregate principal amount of its Convertible Senior Notes due in 2026 for an aggregate repurchase price of $154.5 million.
Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.
Outlook
The Company reaffirms full year 2024 revenue guidance in the range of $225 million – $235 million. The Company’s 2024 guidance is dependent on its current business and expectations, which may be further impacted by, among other things, factors that are outside of our control, such as the global macroeconomic and geopolitical environment, supply chain constraints, inflationary pressures, and the effects of foreign currency fluctuations, as well as the other factors described in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC.
Additional Information
Further information on Cryoport’s financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport’s financial performance are provided in the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2024, which is expected to be filed with the SEC on November 7, 2024. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport’s website at www.cryoportinc.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: In addition to the earnings release, a document titled “Cryoport Third Quarter 2024 in Review”, providing a review of Cryoport’s financial and operational performance and a general business update, will be issued at 4:05 p.m. ET on Thursday, November 7, 2024. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar.
Cryoport management will host a conference call at 5:00 p.m. ET on November 7, 2024. The conference call will be in the format of a questions and answers session and will address any queries investors have regarding the Company’s reported results. A slide deck will accompany the call.
Conference Call Information
Date:
Thursday, November 7, 2024
Time:
5:00 p.m. ET
Dial-in numbers:
1-800-717-1738 (U.S.), 1-646-307-1865 (International)
Confirmation code:
Request the “Cryoport Call” or Conference ID: 1171580
Live webcast:
‘Investor Relations’ section at www.cryoportinc.com or click here.
Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.
The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company’s website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until November 14, 2024. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay entry code: 1171580#.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX), is a global leader in supply chain solutions for the Life Sciences with an emphasis on cell & gene therapies. Cryoport enables manufacturers, contract manufacturers (CDMOs), contract research organizations (CROs), developers, and researchers to conduct their respective business with products and services that are designed to derisk services and provide certainty. We provide a broad array of supply chain solutions for the life sciences industry. Through our platform of critical products and solutions including advanced temperature-controlled packaging, informatics, specialized bio-logistics services, bio-storage, bio-services, and cryogenic systems, we are “Enabling the Future of Medicine™” worldwide, through our innovative systems, compliant procedures, and agile approach to superior supply chain management.
Our corporate headquarters, located in Nashville, Tennessee, is complemented by over 50 global locations in 17 countries, with key sites in the United States, United Kingdom, France, the Netherlands, Belgium, Portugal, Germany, Japan, Australia, India, and China.
For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.x.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press release which are not purely historical, including statements regarding Cryoport’s intentions, hopes, beliefs, expectations, representations, projections, plans, or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to Cryoport’s industry, business, long-term growth prospects, plans, strategies, acquisitions, future financial results and financial condition, such as Cryoport’s outlook and guidance for full year 2024 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Cryoport operates, Cryoport’s plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, Cryoport’s expectations about future benefits of its acquisitions, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved with respect to the products of Cryoport’s clients. Forward-looking statements also include those related to Cryoport’s anticipation of continued growth in its services business and ongoing softness in product sales; Cryoport’s plans and expectations relating to its previously announced cost reduction and capital realignment strategies, including Cryoport’s plans to complete these adjustments by the year’s end and Cryoport’s belief that these measures will lead to a return to positive adjusted EBITDA during 2025; Cryoport’s expectations that the macroeconomic and sector-specific challenges that have impacted many companies serving the life sciences industry to continue into the near future; and Cryoport’s belief that it is strategically positioned to leverage the anticipated long-term growth in the Cell & Gene therapy market through Cryoport’s comprehensive and integrated supply chain solutions. It is important to note that Cryoport’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic and geopolitical conditions, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in Cryoport’s cash flow, market acceptance risks, and technical development risks. Additional risks and uncertainties include difficulties, delays or Cryoport’s inability to successfully complete its planned cost reduction and capital realignment measures, which could reduce the benefits realized from such activities within the time periods currently anticipated. Cryoport’s business could be affected by other factors discussed in Cryoport’s SEC reports, including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and Cryoport cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, Cryoport disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
Cryoport, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Three Months Ended
September 30,
(unaudited)
Nine Months Ended
September 30,
(unaudited)
(in thousands, except share and per share data)
2024
2023
2024
2023
Revenue
Life Sciences Services revenue
$ 39,278
$ 36,022
$ 114,104
$ 107,062
Life Sciences Products revenue
17,386
20,135
54,749
68,933
Total revenue
56,664
56,157
168,853
175,995
Cost of revenue:
Cost of services revenue
21,220
20,803
63,927
59,887
Cost of products revenue
10,059
11,088
32,576
40,037
Total cost of revenue
31,279
31,891
96,503
99,924
Gross margin
25,385
24,266
72,350
76,071
Operating costs and expenses:
Selling, general and administrative
37,654
36,023
111,921
108,066
Engineering and development
4,157
5,152
13,555
13,291
Impairment loss
–
–
63,809
–
Total operating costs and expenses:
41,811
41,175
189,285
121,357
Loss from operations
(16,426)
(16,909)
(116,935)
(45,286)
Other income (expense):
Investment income
3,059
2,848
8,468
7,962
Interest expense
(889)
(1,357)
(3,472)
(4,197)
Gain on extinguishment of debt, net
17,326
5,679
18,505
5,679
Other income (expense), net
(1,616)
(3,059)
(1,398)
242
Income (loss) before provision for income taxes
1,454
(12,798)
(94,832)
(35,600)
Provision for income taxes
(649)
(471)
(1,247)
(1,598)
Net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Paid-in-kind dividend on Series C convertible preferred stock
(2,000)
(2,000)
(6,000)
(6,000)
Net loss attributable to common stockholders
$ (1,195)
$ (15,269)
$ (102,079)
$ (43,198)
Net loss per share attributable to common stockholders – basic and diluted
$ (0.02)
$ (0.31)
$ (2.07)
$ (0.89)
Weighted average common shares outstanding – basic and diluted
49,417,757
48,904,102
49,261,717
48,660,646
Cryoport, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30,
December 31,
2024
2023
(in thousands)
(unaudited)
Current assets
Cash and cash equivalents
$ 44,665
$ 46,346
Short-term investments
228,001
410,409
Accounts receivable, net
43,461
42,074
Inventories
23,552
26,206
Prepaid expenses and other current assets
10,658
10,077
Total current assets
350,337
535,112
Property and equipment, net
88,281
84,858
Operating lease right-of-use assets
30,113
32,653
Intangible assets, net
175,815
194,382
Goodwill
54,057
108,403
Deposits
1,493
1,680
Deferred tax assets
1,669
656
Total assets
$ 701,765
$ 957,744
Current liabilities
Accounts payable and other accrued expenses
$ 25,194
$ 26,995
Accrued compensation and related expenses
11,275
11,409
Deferred revenue
1,091
1,308
Current portion of operating lease liabilities
5,834
5,371
Current portion of finance lease liabilities
470
286
Current portion of convertible senior notes, net
14,271
–
Current portion of notes payable
153
149
Current portion of contingent consideration
3,151
92
Total current liabilities
61,439
45,610
Convertible senior notes, net
183,628
378,553
Notes payable, net
1,238
1,335
Operating lease liabilities, net
26,466
29,355
Finance lease liabilities, net
1,306
954
Deferred tax liabilities
3,526
2,816
Other long-term liabilities
569
601
Contingent consideration, net
5,021
9,497
Total liabilities
283,193
468,721
Total stockholders’ equity
418,572
489,023
Total liabilities and stockholders’ equity
$ 701,765
$ 957,744
Note Regarding Use of Non-GAAP Financial Measures
To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance as defined in Regulation G of the Securities Exchange Act of 1934 are included in this release: revenue at constant currency, revenue growth rate at constant currency, operating costs and expenses, excluding impairment loss, net income, excluding impairment loss, and adjusted EBITDA. Non-GAAP financial measures are not calculated in accordance with GAAP, are not based on any comprehensive set of accounting rules or principles and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures, including revenue at constant currency, revenue growth rate at constant currency and adjusted EBITDA, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
We believe that revenue growth is a key indicator of how Cryoport is progressing from period to period, and we believe that the non-GAAP financial measures, revenue at constant currency and revenue growth rate at constant currency, are useful to investors in analyzing the underlying trends in revenue. Under GAAP, revenue received in local (non-U.S. dollar) currency is translated into U.S. dollars at the average exchange rate for the period presented. As a result, fluctuations in foreign currency exchange rates affect the results of our operations and the value of our foreign assets and liabilities, which in turn may adversely affect results of operations and cash flows and the comparability of period-to-period results of operations. When we use the term “constant currency,” it means that we have translated local currency revenue for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenue into U.S. dollars that we used to translate local currency revenue for the comparable reporting period of the prior year. Revenue growth rate at constant currency refers to the measure of comparing the current reporting period revenue at constant currency with the reported GAAP revenue for the comparable reporting period of the prior year.
However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both period-over-period changes in non-GAAP constant currency revenue on the one hand and changes in revenue prepared in accordance with GAAP on the other. We caution the readers of this press release to follow a similar approach by considering revenue on constant currency period-over-period changes only in addition to, and not as a substitute for, or superior to, changes in revenue prepared in accordance with GAAP.
Operating costs and expenses, excluding impairment loss, is defined as operating costs and expenses, excluding impairment losses, if any. Net loss, excluding impairment loss, is defined as net loss, excluding impairment losses, if any. Management believes these measures, when read in conjunction with, and as supplemental to, the corresponding GAAP financial measures, provide a useful measure of Cryoport’s expenses and operating results, a meaningful comparison with historical results, and insight into Cryoport’s operating performance.
Adjusted EBITDA is defined as net loss adjusted for interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, cost reduction initiatives, investment income, unrealized (gain)/loss on investments, foreign currency (gain)/loss, gain on insurance claim, net gain on extinguishment of debt, impairment loss, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events, as applicable.
Management believes that adjusted EBITDA provides a useful measure of Cryoport’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into Cryoport’s ongoing operating performance. Further, management and the Company’s board of directors utilize adjusted EBITDA to gain a better understanding of Cryoport’s comparative operating performance from period to period and as a basis for planning and forecasting future periods. Adjusted EBITDA is also a significant performance measure used by Cryoport in connection with its incentive compensation programs. Management believes adjusted EBITDA, when read in conjunction with Cryoport’s GAAP financials, is useful to investors because it provides a basis for meaningful period-to-period comparisons of Cryoport’s ongoing operating results, including results of operations, against investor and analyst financial models, helps identify trends in Cryoport’s underlying business and in performing related trend analyses, and it provides a better understanding of how management plans and measures Cryoport’s underlying business.
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP operating cost and expenses to Non-GAAP adjusted operating cost and expenses
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP operating costs and expenses
$ 41,811
$ 41,175
$ 189,285
$ 121,357
Non-GAAP adjustments to operating costs and expenses
Impairment loss
—
—
63,809
—
Non-GAAP adjusted operating costs and expenses
$ 41,811
$ 41,175
$ 125,476
$ 121,357
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP net income (loss) to Non-GAAP adjusted net income (loss)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Non-GAAP adjustments to net income (loss)
Impairment loss
—
—
63,809
—
Non-GAAP adjusted net income (loss)
$ 805
$ (13,269)
$ (32,270)
$ (37,198)
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP net income (loss) to adjusted EBITDA
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Non-GAAP adjustments to net income (loss):
Depreciation and amortization expense
7,836
6,911
22,863
20,038
Acquisition and integration costs
308
675
896
6,304
Cost reduction initiatives
568
—
1,116
—
Investment income
(3,059)
(2,848)
(8,468)
(7,962)
Unrealized loss on investments
3,535
2,336
2,593
2,300
Gain on insurance claim
—
—
—
(2,642)
Foreign currency (gain)/loss
(1,724)
710
(762)
114
Interest expense, net
889
1,357
3,472
4,197
Stock-based compensation expense
4,838
5,976
15,291
16,960
Gain on extinguishment of debt, net
(17,326)
(5,679)
(18,505)
(5,679)
Impairment loss
—
—
63,809
—
Change in fair value of contingent consideration
316
250
(1,329)
250
Other non-recurring costs
—
—
—
—
Income taxes
649
471
1,247
1,598
Adjusted EBITDA
$ (2,365)
$ (3,110)
$ (13,856)
$ (1,720)
Cryoport, Inc. and Subsidiaries
Total revenue by type for the three months ended September 30, 2024
(unaudited)
Life Sciences
Services
Life Sciences
Products
Total
(in thousands)
As Reported
$ 39,278
$ 17,386
$ 56,664
Non US-GAAP Constant Currency
39,193
17,340
56,532
FX Impact [$]
85
46
132
FX Impact [%]
0.2 %
0.3 %
0.2 %
Cryoport, Inc. and Subsidiaries
Total revenue by type for the nine months ended September 30, 2024
(unaudited)
Life Sciences
Services
Life Sciences
Products
Total
(in thousands)
As Reported
$ 114,104
$ 54,749
$ 168,853
Non US-GAAP Constant Currency
114,220
54,774
168,994
FX Impact [$]
(116)
(25)
(141)
FX Impact [%]
(0.1 %)
(0.0 %)
(0.1 %)
View original content to download multimedia:https://www.prnewswire.com/news-releases/cryoport-reports-third-quarter-2024-financial-results-302299246.html
SOURCE Cryoport, Inc.
Technology
Solventum Reports Third Quarter 2024 Financial Results and Raises Full-Year Guidance
Published
28 mins agoon
November 7, 2024By
Reported sales increased 0.4% to $2.082 billion; organic sales increased 0.3%GAAP Earnings Per Share (EPS) of $0.70; adjusted EPS1 of $1.64Generated $169 million in cash from operations; free cash flow1 of $76 millionRaises full-year 2024 organic sales growth, adjusted EPS and free cash flow guidance
ST. PAUL, Minn., Nov. 7, 2024 /PRNewswire/ — Solventum (NYSE: SOLV) today reported financial results for the third quarter ended September 30, 2024.
“We have now delivered consecutive quarters of outperformance against our expectations, and based on these results, we are again raising our full-year guidance,” said Bryan Hanson, chief executive officer, Solventum. “It has been an exciting start, and we are confident that our three-phased approach will drive long-term growth and significant value creation.”
Third Quarter 2024 Financial Results
3 months ended September 30, 2024
(Millions of dollars, except per share amounts)
GAAP
non-GAAP1
Sales
$2,082
$2,082
Operating income
$275
$475
Operating income margin
13.2 %
22.8 %
Earnings per share (EPS)
$0.70
$1.64
Cash from operations/free cash flow1
$169
$76
Reported and organic sales growth reflect the expected normalization of pricing. By segment, organic sales growth was primarily driven by the MedSurg and Health Information Systems segments, partially offset by the Dental Solutions and Purification and Filtration segments.
GAAP and adjusted operating income margin declined due to lower gross margins, including the impact from the 3M supply agreement mark-up, and an increase in operating expenses related to public company stand-up costs and growth investments.
1 Represents non-GAAP financial measure; see the “Non-GAAP Financial Measures” section for applicable information.
Segment and Total Company Net Sales for Third Quarter*
Three months ended
September 30
Increase/(Decrease)
(Dollars in millions)
2024
2023
Total
Currency
Impact
Other2
Organic
MedSurg
$ 1,182
$ 1,180
0.1 %
(0.1) %
(0.7) %
1.0 %
Dental Solutions
313
331
(5.2)
—
(1.2)
(3.9)
Health Information Systems
326
321
1.5
0.1
—
1.5
Purification and Filtration
238
242
(1.5)
—
(1.1)
(0.3)
Corporate and Unallocated3
23
—
NM
NM
NM
NM
Total Company
$ 2,082
$ 2,074
0.4 %
(0.1) %
0.2 %
0.3 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
2Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Divestiture impacts include lost sales from the company’s dental anesthetics business that was sold in August 2023 and certain health care businesses retained by 3M India in connection with the spin-off.
3Corporate and unallocated includes sales related to product supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off.
Full-Year 2024 Guidance
Solventum is raising its full-year 2024 guidance
Organic sales growth to the upper half of 0% to +1.0% (previously 0% to +1.0%)Adjusted EPS of $6.50 to $6.65 (previously $6.30 to $6.50)Free cash flow of $750M to $850M (previously $700M to $800M)
Organic sales, adjusted EPS and free cash flow amounts included in Solventum’s full-year guidance and additional considerations below are non-GAAP financial measures. Solventum does not provide reconciliations of the forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items, such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items.
Solventum’s full-year 2024 guidance is based on Q1 2024 as a carve-out plus the remainder of the year as a stand-alone company starting April 1, 2024.
See the “Non-GAAP Financial Measures” section for explanations of our non-GAAP financial measures.
Earnings Conference Call
Solventum will host a conference call today, November 7, at 4:30 p.m. Eastern Time to discuss its third quarter financial results and provide an update on its business. The conference call can be accessed via audio webcast at investors.solventum.com or by dialing (800) 715-9871 within the U.S. or +1 (646) 307-1963 for international callers, using the conference ID 6342275.
A replay of the webcast, along with the earnings press release, slides highlighting the results, and supplemental financial disclosures, will also be available at the same link on the Investor Relations section of the company’s website.
Forward-Looking Statement
This news release contains forward-looking information about Solventum’s financial results and estimates and business prospects that involve substantial risks and uncertainties. In particular, statements regarding the future performance of Solventum, including guidance for 2024, are forward-looking statements. You can identify these statements by the use of words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,” “would,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international, trade and geopolitical conditions, natural disasters, war, public health crises, and other events beyond Solventum’s control; (2) operational execution risks; (3) damage to Solventum’s reputation or its brands; (4) risks from acquisitions, strategic alliances, divestitures and other strategic events; (5) Solventum’s business dealings involving third-party partners in various markets; (6) Solventum’s ability to access the capital and credit markets and changes in Solventum’s credit ratings; (7) exposure to interest rate and currency risks; (8) the highly competitive environment in which Solventum operates and consolidation in the healthcare industry; (9) reduction in customers’ research budgets or government funding; (10) the timing and market acceptance of Solventum’s new product and service offerings; (11) ongoing working relationships with certain key healthcare professionals; (12) changes in reimbursement practices of governments or private payers or other cost containment measures; (13) Solventum’s ability to obtain components or raw materials supplied by third parties and other manufacturing and related supply chain difficulties, interruptions, and disruptive factors; (14) legal and regulatory proceedings and legal compliance risks (including third-party risks) with regards to antitrust, FCPA and other anti-bribery laws, environmental laws, anti-kickback and false claims laws, privacy laws, product liability claims, tax laws, and other laws and regulations in the United States and other countries in which Solventum operates; (15) potential liabilities related to per-and polyfluoroalkyl substances; (16) risks related to the highly regulated environment in which Solventum operates; (17) climate change and measures to address climate change; (18) security breaches and other disruptions to information technology infrastructure; (19) Solventum’s failure to obtain, maintain, protect, or effectively enforce its intellectual property rights; (20) pension and postretirement obligation liabilities; (21) any events that adversely affect the sale or profitability of one of Solventum’s key products or the revenue delivered from sales to its key customers; (22) any failure by 3M Company (“3M“) to perform any of its obligations under the various separation agreements entered into in connection with the separation of Solventum from 3M and distribution (the “Spin-Off”); (23) any failure to realize the expected benefits of the Spin-Off; (24) Solventum’s ability to execute its turnaround strategy; (25) a determination by the IRS or other tax authorities that the Separation or certain related transactions should be treated as taxable transactions; (26) indebtedness incurred in the financing transactions undertaken in connection with the Separation and risks associated with additional indebtedness; (27) the risk that incremental costs of operating on a standalone basis (including the loss of synergies), costs of restructuring transactions and other costs incurred in connection with the Spin-Off will exceed Solventum’s estimates; and (28) the impact of the Spin-Off on Solventum’s businesses and the risk that the separation from 3M may be more difficult, time-consuming or costly than expected, including the impact on Solventum’s resources, systems, procedures and controls, diversion of management’s attention and the impact on relationships with customers, suppliers, employees and other business counterparties.
Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located under “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Solventum’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Solventum assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S. GAAP, Solventum also provides non-GAAP measures that we use, and plan to continue using, when monitoring and evaluating operating performance and measuring cash available to invest in our business. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP financial measures are supplemental measures of our performance and our liquidity that we believe help investors understand our underlying business performance and Solventum uses these measures as an indication of the strength of Solventum and its ability to generate cash.
Solventum calculates forward-looking non-GAAP financial measures, including organic sales growth, adjusted operating income, adjusted operating income margin, adjusted effective tax rate, adjusted earnings per share, and free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. Solventum does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items. The timing and amounts of these items are uncertain and could have a material impact on Solventum’s results in accordance with GAAP.
The Q3 2024 financial statements and financial information, including reconciliations of non-GAAP financial measures, are available on Solventum’s website: investors.solventum.com.
About Solventum
At Solventum, we enable better, smarter, safer healthcare to improve lives. As a new company with a long legacy of creating breakthrough solutions for our customers’ toughest challenges, we pioneer game-changing innovations at the intersection of health, material and data science that change patients’ lives for the better — while empowering healthcare professionals to perform at their best. See how at Solventum.com.
Solventum Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(Dollars in millions, except per-share amounts)
(Unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2024
2023
2024
2023
Net sales of product
$ 1,608
$ 1,593
$ 4,766
$ 4,750
Net sales of software and rentals
474
481
1,413
1,411
Total net sales
2,082
2,074
6,179
6,161
Cost of product
793
748
2,341
2,262
Cost of software and rentals
124
117
364
364
Gross profit
1,165
1,209
3,474
3,535
Selling, general and administrative expenses
701
525
1,998
1,681
Research and development expenses
189
180
576
568
Total operating expenses
1,807
1,570
5,279
4,875
Operating income
275
504
900
1,286
Interest expense, net
107
—
260
—
Other expense (income), net
1
4
48
10
Income before income taxes
167
500
592
1,276
Provision for income taxes
45
40
144
202
Net Income
$ 122
$ 460
$ 448
$ 1,074
Earnings per share:
Basic earnings per share
$ 0.70
$ 2.66
$ 2.59
$ 6.22
Diluted earnings per share
0.70
2.66
2.58
6.22
Weighted-average number of share outstanding:
Basic
173.4
172.7
173.1
172.7
Diluted
173.9
172.7
173.4
172.7
Solventum Corporation
CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
September 30,
December 31,
(Millions)
2024
2023
Assets
Current assets
Cash and cash equivalents
$ 772
$ 194
Accounts receivable — net of allowances of $86 and $82
1,105
1,313
Due from related parties
222
—
Inventories
Finished goods
529
453
Work in process
181
171
Raw materials and supplies
243
233
Total inventories
953
857
Other current assets
302
155
Total current assets
3,354
2,519
Property, plant and equipment — net
1,599
1,457
Goodwill
6,592
6,535
Intangible assets — net
2,651
2,902
Other assets
549
530
Total assets
$ 14,745
$ 13,943
Liabilities
Current liabilities
Short-term borrowings and current portion of long-term debt
$ 300
$ —
Accounts payable
560
477
Due to related parties
450
—
Unearned revenue
563
574
Other current liabilities
1,031
677
Total current liabilities
2,904
1,728
Long-term debt
7,809
—
Pension and postretirement benefits
321
166
Deferred income taxes
214
231
Other liabilities
305
152
Total liabilities
$ 11,553
$ 2,277
Equity
Common stock par value, $0.01 par value, 750,000,000 shares authorized
$ 2
$ —
Shares issued and outstanding – September 30, 2024: 172,754,070
Shares issued and outstanding – December 31, 2023: 0
Additional paid-in capital
3,744
—
Retained earnings
211
—
Net parent investment
—
12,003
Accumulated other comprehensive income (loss)
(765)
(337)
Total equity
3,192
11,666
Total liabilities and equity
$ 14,745
$ 13,943
Solventum Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(Dollars in millions)
(Unaudited)
Nine months ended September 30,
(Millions)
2024
2023
Cash Flows from Operating Activities
Net income
$ 448
$ 1,074
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization
405
422
Postretirement benefit plan expense
30
31
Stock-based compensation expense
87
32
Gain on business divestitures
—
(56)
Deferred income taxes
(93)
(99)
Changes in assets and liabilities
Accounts receivable
14
(24)
Due from related parties
200
—
Inventories
(99)
(7)
Accounts payable
200
48
Due to related parties
(393)
—
All other operating activities
167
(53)
Net cash provided by operating activities
966
1,368
Cash Flows from Investing Activities
Purchases of property, plant and equipment
(253)
(202)
Proceeds from sale of business
—
60
Net cash used in investing activities
(253)
(142)
Cash Flows from Financing Activities
Repayment of debt
(200)
—
Net transfers to 3M
(8,247)
(1,248)
Proceeds from long-term debt, net of issuance costs
8,303
—
Other — net
8
2
Net cash used in financing activities
(136)
(1,246)
Effect of exchange rate changes on cash and cash equivalents
1
1
Net increase (decrease) in cash and cash equivalents
578
(19)
Cash and cash equivalents at beginning of year
194
61
Cash and cash equivalents at end of period
$ 772
$ 42
Solventum Corporation
SALES CHANGE ANALYSIS4
(Dollars in millions)
(Unaudited)
Segment and Total Company Net Sales for the First Nine Months*
Nine months ended
September 30,
Increase/(Decrease)
(Dollars in millions)
2024
2023
Total
Currency
Impact
Other
Organic
MedSurg
$ 3,463
$ 3,464
— %
(0.6) %
(0.5) %
1.1 %
Dental Solutions
979
1,023
(4.3)
(0.6)
(1.9)
(1.8)
Health Information Systems
971
953
1.8
—
—
1.8
Purification and Filtration
721
721
0.1
(0.7)
(0.9)
1.7
Corporate and Unallocated5
45
—
NM
NM
NM
NM
Total Company
$ 6,179
$ 6,161
0.3 %
(0.5) %
— %
0.8 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
4Total sales change is calculated based on reported sales results. The components of sales change include organic local-currency sales, translation, and other. Organic local-currency sales include both organic volume impacts (which excludes acquisition and divestiture impacts, in addition to supply agreement and impacts) and selling price changes. Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Divestiture impacts include lost sales from the company’s dental anesthetics business that was sold in August 2023 and certain health care businesses retained by 3M India in connection with the spin-off.
5Corporate and Unallocated also includes sales and cost of sales related to products supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off.
Solventum Corporation and Subsidiaries
BUSINESS SEGMENTS
(Unaudited)
Operating segments include components of an enterprise where separate financial information is available that is evaluated regularly by the company’s Chief Operating Decision Maker (“CODM”) for the purpose of assessing performance and allocating resources. The company’s CODM is its Chief Executive Officer. The company’s operating activities are managed through four operating segments: MedSurg, Dental Solutions, Health Information Systems, and Purification and Filtration. There have been no changes to the composition of the segments or to financial information reported within each of the business segments. These segments have been identified based on the nature of the products sold and how the company manages its operations. Transactions among reportable segments are recorded at cost. No operating segments have been aggregated to form reportable segments.
Corporate and Unallocated includes amortization of acquired intangible assets, restructuring and related charges, benefits or costs related to capitalized manufacturing variances, spin-off and separation-related costs and other net costs that the company chose not to allocate directly to its business segments. Spin-off and separation-related costs include any costs incurred as part of our separation from 3M and costs to setup operations as a standalone company, including system implementations, manufacturing relocation, legal entity separation, certain equity awards granted as part of the spin-off, profit mark-ups on transition service arrangements with 3M and other one-time costs.
Corporate and Unallocated also includes sales and cost of sales related to products supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off. Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. Business segment operating income is reconciled to total operating income below:
BUSINESS SEGMENT INFORMATION
Three months ended September 30, 2024
Three months ended September 30, 2023
(Dollars in millions)
Net Sales
Operating
Income
Operating
Margin %
Net Sales
Operating
Income
Operating
Margin %
MedSurg
$ 1,182
$ 243
20.6 %
$ 1,180
$ 307
26.0 %
Dental Solutions
313
72
23.0
331
114
34.4
Health Information Systems
326
105
32.2
321
114
35.5
Purification and Filtration
238
20
8.4
242
48
19.8
Total business segment operating income
$ 440
$ 583
Corporate and Unallocated:
Amortization expense
$ (88)
$ (92)
Other Corporate and Unallocated
(77)
13
Total Corporate and Unallocated
23
(165)
NM
—
(79)
NM
Total Company
$ 2,082
$ 275
13.2 %
$ 2,074
$ 504
24.3 %
BUSINESS SEGMENT INFORMATION
Nine months ended September 30, 2024
Nine months ended September 30, 2023
(Dollars in millions)
Net Sales
Operating
Income
Operating
Margin %
Net Sales
Operating
Income
Operating
Margin %
MedSurg
$ 3,463
$ 678
19.6 %
$ 3,464
$ 829
23.9 %
Dental Solutions
979
272
27.8
1,023
349
34.1
Health Information Systems
971
317
32.6
953
304
31.9
Purification and Filtration
721
78
10.8
721
134
18.6
Total business segment operating income
$ 1,345
$ 1,616
Corporate and Unallocated:
Amortization expense
$ (261)
$ (276)
Other Corporate and Unallocated
(184)
(54)
Total Corporate and Unallocated
45
(445)
NM
—
(330)
NM
Total Company
$ 6,179
$ 900
14.6 %
$ 6,161
$ 1,286
20.9 %
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(Unaudited)
In addition to reporting financial results in accordance with U.S. GAAP, the company use non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. These include (1) Adjusted operating income, and adjusted operating income margin, (2) Adjusted earnings per share, and (3) Free cash flow. Management believes that these non-GAAP financial measures are useful in evaluating current performance and focusing management on our underlying operational results.
There are limitations to the use of the non-GAAP financial measures presented in this information statement. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. Management cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP.
The tables below reconcile our non-GAAP financial measures to the nearest financial measure that is in accordance with U.S. GAAP for the periods presented.
Adjusted Operating Income, Adjusted Operating Income Margin and Adjusted Earnings Per Share (Non-GAAP measures)
Adjusted operating income and adjusted operating income margin are not defined under U.S. GAAP. Therefore, they should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted operating income as operating income excluding the effects of amortization, restructuring costs, and spin-off and separation-related costs. Adjusted operating income margin is adjusted operating income divided by the U.S GAAP measure total net sales for the same period. The company believes adjusted operating income and adjusted operating income margin provide investors with visibility into the company’s unleveraged, pre-tax operating results and reflects underlying financial performance. However, adjusted operating income should not be construed as inferring that the company’s future results will be unaffected by the items for which the measure adjusts.
Adjusted earnings per share is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted earnings per share as net income excluding the after-tax effects of amortization, restructuring costs, spin-off and separation-related costs, and legal entity restructuring costs. The company believes adjusted earnings per share provides investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how the company evaluate the business. However, adjusted earnings per share should not be construed as inferring that the company’s future results will be unaffected by the items for which the measure adjusts.
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)
Three months ended September 30, 2024
(Dollars in millions, except per share amounts)
Net sales
Cost of
Sales6
Gross
Margin %
Other
Operating
Expenses7
Operating
Income
Operating
Income
Margin %
Non-
Operating
Expense
(Income),
net8
Income
Before
Income
Taxes
Net Income
Attributable
to
Solventum
Diluted
EPS
Effective
Tax Rate
GAAP
$ 2,082
$ 917
56.0 %
$ 1,807
$ 275
13.2 %
$ 108
$ 167
$ 122
$ 0.70
26.9 %
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets
—
—
—
(88)
88
4.2
—
88
73
0.42
Restructuring costs (a)
—
(1)
—
(1)
1
0.1
—
1
1
0.01
Spin-off and separation-related costs (b)
—
(27)
1.3
(111)
111
5.3
—
111
85
0.49
Legal entity restructuring (c)
—
—
—
—
—
—
—
—
4
0.02
Non-GAAP
$ 2,082
$ 889
57.3 %
$ 1,607
$ 475
22.8 %
$ 108
$ 367
$ 285
$ 1.64
22.3 %
Three months ended September 30, 2023
(Dollars in millions, except per share amounts)
Net sales
Cost of
Sales6
Gross
Margin %
Other
Operating
Expenses7
Operating
Income
Operating
Income
Margin %
Non-
Operating
Expense
(Income),
net8
Income
Before
Income
Taxes
Net Income
Attributable
to
Solventum
Diluted
EPS
Effective
Tax Rate
GAAP
$ 2,074
$ 865
58.3 %
$ 1,570
$ 504
24.3 %
$ 4
$ 500
$ 460
$ 2.66
8.0 %
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets
—
—
—
(92)
92
4.4
—
92
77
0.45
Restructuring costs (a)
—
(1)
—
1
(1)
—
—
(1)
(1)
(0.01)
Spin-off and separation-related costs (b)
—
—
—
—
—
—
—
—
—
—
Gain on business divestitures
—
—
—
56
(56)
(2.7)
—
(56)
(40)
(0.23)
Non-GAAP
$ 2,074
$ 864
58.3 %
$ 1,535
$ 539
26.0 %
$ 4
$ 535
$ 496
$ 2.87
7.3 %
_________
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
(a) Consists of severance associated with restructuring programs.
(b) Consists of costs specifically incurred in connection with the separation from 3M.
(c) Consists of tax impacts for legal entity restructuring in connection with the separation from 3M.
6Cost of sales is the combination of cost of product and cost of software and rental line items from the Condensed Consolidated and Combined Statements of Income and represents the total company cost of sales.
7Other operating expenses is a combination of selling, general and administrative expenses and research and development expenses from the Condensed Consolidated and Combined Statements of Income and represents the total company other operating expenses.
8 Non-operating expense (income), net is the combination of interest expense, net and other expense (income), net line items from the Condensed Consolidated and Combined Statements of Income and represents the total company non-operating expense.
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)
Nine months ended September 30, 2024
(Dollars in millions, except per share amounts)
Net sales
Cost of
Sales6
Gross
Margin %
Other
Operating
Expenses7
Operating
Income
Operating
Income
Margin %
Non-
Operating
Expense
(Income),
net8
Income
Before
Income
Taxes
Net Income
Attributable
to
Solventum
Diluted
EPS
Effective
Tax Rate
GAAP
$ 6,179
$ 2,705
56.2 %
$ 5,279
$ 900
14.6 %
$ 308
$ 592
$ 448
$ 2.58
24.3 %
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets
—
—
—
(261)
261
4.2
—
261
218
1.26
Restructuring costs (a)
—
(5)
0.1
(13)
13
0.2
—
13
9
0.06
Spin-off and separation-related costs (b)
—
(48)
0.8
(215)
215
3.5
(38)
253
205
1.18
Legal entity restructuring (c)
—
—
—
—
—
—
—
—
35
0.20
Non-GAAP
$ 6,179
$ 2,652
57.1 %
$ 4,790
$ 1,389
22.5 %
$ 270
$ 1,119
$ 915
$ 5.28
18.2 %
Nine months ended September 30, 2023
(Dollars in millions, except per share amounts)
Net sales
Cost of
Sales6
Gross
Margin %
Other
Operating
Expenses7
Operating
Income
Operating
Income
Margin %
Non-
Operating
Expense
(Income),
net8
Income
Before
Income
Taxes
Net Income
Attributable
to
Solventum
Diluted
EPS
Effective
Tax Rate
GAAP
$ 6,161
$ 2,626
57.4 %
$ 4,875
$ 1,286
20.9 %
$ 10
$ 1,276
$ 1,074
$ 6.22
15.8 %
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets
—
—
—
(276)
276
4.5
—
276
231
1.33
Restructuring costs (a)
—
(12)
0.2
(38)
38
0.6
—
38
31
0.18
Spin-off and separation-related costs (b)
—
—
—
—
—
—
—
—
—
—
Gain on business divestitures
—
—
—
56
(56)
(0.9)
—
(56)
(40)
(0.23)
Non-GAAP
$ 6,161
$ 2,614
57.6 %
$ 4,617
$ 1,544
25.1 %
$ 10
$ 1,534
$ 1,296
$ 7.50
15.5 %
__________
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
(a) Consists of severance associated with restructuring programs.
(b) Consists of costs specifically incurred in connection with the separation from 3M.
(c) Consists of tax impacts for legal entity restructuring in connection with the separation from 3M.
6Cost of sales is the combination of cost of product and cost of software and rental line items from the Condensed Consolidated and Combined Statements of Income and represents the total company cost of sales.
7Other operating expenses is a combination of selling, general and administrative expenses and research and development expenses from the Condensed Consolidated and Combined Statements of Income and represents the total company other operating expenses.
8 Non-operating expense (income), net is the combination of interest expense, net and other expense (income), net line items from the Condensed Consolidated and Combined Statements of Income and represents the total company non-operating expense.
Free Cash Flow (non-GAAP measure):
Free cash flow is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The company believes free cash flow is meaningful to investors as it is a useful measure of liquidity and the company uses these measures as an indication of the strength of the company and its ability to generate cash. Free cash flow varies across quarters throughout the year. Below find a recap of free cash flow.
(Dollars in millions)
Three months ended
September 30,
Nine months ended
September 30,
Major GAAP Cash Flow Categories
2024
2023
2024
2023
Net cash provided by operating activities
$ 169
$ 493
$ 966
$ 1,368
Net cash used in investing activities
(93)
(6)
(253)
(142)
Net cash used in financing activities
(202)
(485)
(136)
(1,246)
Free Cash Flow (non-GAAP measure)
Net cash provided by operating activities
$ 169
$ 493
$ 966
$ 1,368
Purchases of property, plant and equipment
(93)
(66)
(253)
(202)
Free cash flow*
76
427
713
1,166
__________________
* Non-GAAP financial measure.
View original content to download multimedia:https://www.prnewswire.com/news-releases/solventum-reports-third-quarter-2024-financial-results-and-raises-full-year-guidance-302299211.html
SOURCE Solventum
Technology
Serve Robotics to Acquire Autocado Robot Maker Vebu, Expanding Automation Offering
Published
28 mins agoon
November 7, 2024By
Acquisition deepens Serve’s offerings for the restaurant industry, helping partners improve efficiency and manage labor shortage challenges from kitchen to curb
SAN FRANCISCO, Nov. 7, 2024 /PRNewswire/ — Serve Robotics Inc. (“Serve”) (Nasdaq: SERV), a leading autonomous robotic delivery company, today announced its agreement to acquire the assets of Vebu Inc. (“Vebu”), a trailblazer in full-stack automation and robotics solutions for restaurant partners. Financial terms of the all-stock transaction were not disclosed.
The acquisition strengthens Serve’s strategic positioning by providing its restaurant partners with a suite of automation solutions and expanding Serve’s offering beyond delivery into back of house automation. Vebu will help Serve become a more integral partner to restaurants, accelerating partner adoption as Serve expands its geographic footprint in new cities across the U.S.
Vebu’s signature robotic product is the Autocado, the pioneering avocado-processing robot which eliminates the need for restaurant workers to spend hours cutting, coring and scooping avocados to prepare guacamole. The Autocado allows employees to load up to 25 pounds of avocados into the device and walk away to focus on serving customers and preparing other items. It is now in pilot testing in Chipotle’s Huntington Beach, Calif. restaurant.
In addition, the transaction is expected to unlock key synergies:
Expanding Partnerships: Vebu’s partnership with leading restaurant companies such as Chipotle will extend Serve’s existing business relationships, which include Shake Shack and 7-Eleven, among others.Expanding Serve’s Market Opportunity: This acquisition complements Serve’s recent expansion into delivery over all distances through its partnership with Alphabet’s Wing Aviation subsidiary, making Serve one of the most comprehensive automation providers in the restaurant industry.
Vebu’s founder and CEO Buck Jordan will join Serve Robotics as SVP of Kitchen Automation. He will continue to lead the Vebu team, overseeing Autocado’s continued development and driving additional innovations on the product roadmap. Mr. Jordan, a serial entrepreneur who previously founded Miso Robotics, brings deep expertise and connections in kitchen automation. His experience in the sector, combined with Vebu’s innovation, will bolster Serve’s ability to address the labor shortages faced by the restaurant industry.
“By adding Vebu’s pioneering kitchen automation capabilities to our autonomous delivery offering, we are uniquely positioned to utilize robotics and AI to solve the labor shortages plaguing the restaurant industry. This acquisition underscores our commitment to helping our partners operate more efficiently and to expanding our partnerships with national chain restaurants like Chipotle. We are thrilled to be joined by an accomplished team pioneering an innovative technology, operating as a separate business unit within our organization,” said Dr. Ali Kashani, CEO and co-founder of Serve Robotics.
Buck Jordan, founder and CEO of Vebu, commented, “I am thrilled to join the Serve Robotics team, which I have known and supported since the early days as an investor. This is an exciting opportunity to merge our expertise and bring groundbreaking automation to a wider audience. Together, we will provide a suite of automation solutions that will change the future of restaurant operations.”
Vebu joins Serve with a balance sheet that supports its operations to complete its pilot with Chipotle. This acquisition strengthens Serve’s core business and long-term strategy to be a leader in restaurant automation.
About Serve Robotics
Serve develops advanced, AI-powered, low-emissions sidewalk delivery robots that endeavor to make delivery sustainable and economical. Spun off from Uber in 2021 as an independent company, Serve has completed tens of thousands of deliveries for enterprise partners such as Uber Eats and 7-Eleven. The company has scalable multi-year contracts, including a signed agreement to deploy up to 2,000 delivery robots on the Uber Eats platform across multiple U.S. markets.
For further information about Serve Robotics (Nasdaq:SERV), visit www.serverobotics.com or follow us on social media via X (Twitter), Instagram, or LinkedIn @serverobotics.
About Vebu Inc.
Vebu is a full stack Automation, Robotics, and Intelligence company focused on building technology solutions for and with the broad food industry. With a partner driven team of experts spanning engineering, robotics, artificial intelligence, and product development, Vebu is building products to help humans do more. For further information, visit vebulabs.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Serve intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Exchange Act. These forward-looking statements can be about future events, including statements regarding Serve’s intentions, objectives, plans, expectations, assumptions and beliefs about future events, including Serve’s expectations with respect to the financial and operating performance of its business, its capital position, and future growth. The words “anticipate”, “believe”, “expect”, “project”, “predict”, “will”, “forecast”, “estimate”, “likely”, “intend”, “outlook”, “should”, “could”, “may”, “target”, “plan” and other similar expressions can generally be used to identify forward-looking statements. Indications of, and guidance or outlook on, future earnings or financial position, performance, or outcomes from our planned acquisition described in this press release are also forward-looking statements. Any forward-looking statements in this press release are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include those risks and uncertainties set forth in Serve’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission (the “SEC”) and in its subsequent filings filed with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Serve undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Contact
Media
Aduke Thelwell, Head of Communications & Investor Relations
Serve Robotics
press@serverobotics.com
Investor Relations
investor.relations@serverobotics.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/serve-robotics-to-acquire-autocado-robot-maker-vebu-expanding-automation-offering-302299328.html
SOURCE Serve Robotics Inc.
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