Delaware | 001-38912 | 82-2758923 | ||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value | AVTR | New York Stock Exchange |
Exhibit No. | Description | |||||||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL |
Avantor, Inc. | |||||||||||
Date: February 14, 2024 | By: | /s/ Steven Eck | |||||||||
Name: | Steven Eck | ||||||||||
Title: | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |
(in millions, except per share data) | Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net sales | $ | 1,722.8 | $ | 1,795.0 | $ | 6,967.2 | $ | 7,512.4 | |||||||||||||||
Cost of sales | 1,152.4 | 1,180.5 | 4,603.4 | 4,909.6 | |||||||||||||||||||
Gross profit | 570.4 | 614.5 | 2,363.8 | 2,602.8 | |||||||||||||||||||
Selling, general and administrative expenses | 387.1 | 362.7 | 1,506.6 | 1,472.6 | |||||||||||||||||||
Impairment charges | — | — | 160.8 | — | |||||||||||||||||||
Operating income |
183.3 | 251.8 | 696.4 | 1,130.2 | |||||||||||||||||||
Interest expense, net | (65.3) | (69.8) | (284.8) | (265.8) | |||||||||||||||||||
Loss on extinguishment of debt | (1.0) | (1.7) | (6.9) | (12.5) | |||||||||||||||||||
Other income (expense), net |
2.5 | (5.6) | 5.8 | (0.8) | |||||||||||||||||||
Income before income taxes |
119.5 | 174.7 | 410.5 | 851.1 | |||||||||||||||||||
Income tax expense |
(21.0) | (33.0) | (89.4) | (164.6) | |||||||||||||||||||
Net income |
98.5 | 141.7 | 321.1 | 686.5 | |||||||||||||||||||
Accumulation of yield on preferred stock | — | — | — | (24.2) | |||||||||||||||||||
Net income available to common stockholders |
$ | 98.5 | $ | 141.7 | $ | 321.1 | $ | 662.3 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.15 | $ | 0.21 | $ | 0.48 | $ | 1.02 | |||||||||||||||
Diluted | $ | 0.15 | $ | 0.21 | $ | 0.47 | $ | 1.01 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 676.4 | 674.2 | 675.6 | 650.9 | |||||||||||||||||||
Diluted | 679.2 | 677.1 | 678.4 | 679.4 |
(in millions) | December 31, 2023 | December 31, 2022 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 262.9 | $ | 372.9 | |||||||
Accounts receivable, net | 1,150.2 | 1,218.4 | |||||||||
Inventory | 828.1 | 913.5 | |||||||||
Other current assets | 143.7 | 153.1 | |||||||||
Total current assets | 2,384.9 | 2,657.9 | |||||||||
Property, plant and equipment, net | 737.5 | 727.0 | |||||||||
Other intangible assets, net | 3,775.3 | 4,133.3 | |||||||||
Goodwill, net | 5,716.7 | 5,652.6 | |||||||||
Other assets | 358.3 | 293.5 | |||||||||
Total assets | $ | 12,972.7 | $ | 13,464.3 | |||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities: | |||||||||||
Current portion of debt | $ | 259.9 | $ | 364.2 | |||||||
Accounts payable | 625.9 | 758.2 | |||||||||
Employee-related liabilities | 133.1 | 122.4 | |||||||||
Accrued interest | 50.2 | 49.9 | |||||||||
Other current liabilities | 411.2 | 364.1 | |||||||||
Total current liabilities | 1,480.3 | 1,658.8 | |||||||||
Debt, net of current portion | 5,276.7 | 5,923.3 | |||||||||
Deferred income tax liabilities | 612.8 | 731.4 | |||||||||
Other liabilities | 350.3 | 295.4 | |||||||||
Total liabilities | 7,720.1 | 8,608.9 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock including paid-in capital | 3,830.1 | 3,785.3 | |||||||||
Accumulated earnings |
1,491.5 | 1,170.4 | |||||||||
Accumulated other comprehensive loss |
(69.0) | (100.3) | |||||||||
Total stockholders’ equity | 5,252.6 | 4,855.4 | |||||||||
Total liabilities and stockholders' equity | $ | 12,972.7 | $ | 13,464.3 |
(in millions) | Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income |
$ | 98.5 | $ | 141.7 | $ | 321.1 | $ | 686.5 | |||||||||||||||
Reconciling adjustments: | |||||||||||||||||||||||
Depreciation and amortization | 100.6 | 100.7 | 402.3 | 405.5 | |||||||||||||||||||
Impairment charges | — | — | 160.8 | — | |||||||||||||||||||
Stock-based compensation expense |
8.8 | 10.0 | 40.5 | 45.8 | |||||||||||||||||||
Provision for accounts receivable and inventory | 22.0 | 21.1 | 84.5 | 65.0 | |||||||||||||||||||
Deferred income tax benefit |
(78.3) | (7.3) | (172.4) | (69.1) | |||||||||||||||||||
Amortization of deferred financing costs | 3.1 | 3.6 | 13.0 | 15.7 | |||||||||||||||||||
Loss on extinguishment of debt | 1.0 | 1.7 | 6.9 | 12.5 | |||||||||||||||||||
Foreign currency remeasurement loss (gain) |
0.5 | 5.1 | (2.6) | 10.0 | |||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | 21.9 | 53.8 | 77.0 | (45.2) | |||||||||||||||||||
Inventory | 21.2 | 1.6 | 30.3 | (112.5) | |||||||||||||||||||
Accounts payable | (43.8) | (49.5) | (139.6) | 15.6 | |||||||||||||||||||
Accrued interest | 10.6 | 11.3 | 0.3 | 0.1 | |||||||||||||||||||
Other assets and liabilities | 87.1 | (81.3) | 48.6 | (179.3) | |||||||||||||||||||
Other | (1.6) | (6.9) | (0.7) | (7.0) | |||||||||||||||||||
Net cash provided by operating activities |
251.6 | 205.6 | 870.0 | 843.6 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (50.6) | (33.6) | (146.4) | (133.4) | |||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | — | — | — | (20.2) | |||||||||||||||||||
Cash proceeds from settlement of cross currency swap | — | — | — | 42.5 | |||||||||||||||||||
Other | 0.6 | 0.5 | 2.7 | 1.5 | |||||||||||||||||||
Net cash used in investing activities |
(50.0) | (33.1) | (143.7) | (109.6) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Debt borrowings | — | 82.2 | — | 327.2 | |||||||||||||||||||
Debt repayments | (188.1) | (164.0) | (846.0) | (947.0) | |||||||||||||||||||
Payments of debt refinancing fees and premiums | — | (0.6) | (2.3) | (0.6) | |||||||||||||||||||
Proceeds from issuance of stock, net of issuance costs | — | — | — | — | |||||||||||||||||||
Payments of dividends on preferred stock | — | — | — | (32.4) | |||||||||||||||||||
Proceeds received from exercise of stock options | 4.2 | 0.9 | 18.3 | 17.3 | |||||||||||||||||||
Shares repurchased to satisfy employee tax obligations for vested stock-based awards | (0.2) | (0.1) | (13.7) | (13.2) | |||||||||||||||||||
Net cash (used in) provided by financing activities |
(184.1) | (81.6) | (843.7) | (648.7) | |||||||||||||||||||
Effect of currency rate changes on cash and cash equivalents | 9.5 | 18.2 | 8.2 | (15.5) | |||||||||||||||||||
Net change in cash, cash equivalents and restricted cash | 27.0 | 109.1 | (109.2) | 69.8 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 260.7 | 287.8 | 396.9 | 327.1 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 287.7 | $ | 396.9 | $ | 287.7 | $ | 396.9 | |||||||||||||||
(in millions) | Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income |
$ | 98.5 | $ | 141.7 | $ | 321.1 | $ | 686.5 | |||||||||||||||
Amortization | 75.0 | 78.5 | 307.7 | 318.3 | |||||||||||||||||||
Loss on extinguishment of debt | 1.0 | 1.7 | 6.9 | 12.5 | |||||||||||||||||||
Net foreign currency (gain) loss from financing activities |
(0.8) | 7.2 | (3.1) | 7.0 | |||||||||||||||||||
Other stock-based compensation expense (benefit) |
0.2 | — | 0.3 | (3.3) | |||||||||||||||||||
Integration-related expenses1 |
(0.7) | 5.6 | 7.6 | 19.2 | |||||||||||||||||||
Purchase accounting adjustments2 |
— | — | — | 9.4 | |||||||||||||||||||
Restructuring and severance charges3 |
8.5 | (0.2) | 26.5 | 3.5 | |||||||||||||||||||
Reserve for certain legal matters4 |
3.1 | — | 7.1 | — | |||||||||||||||||||
Impairment charges5 |
— | — | 160.8 | — | |||||||||||||||||||
Transformation expenses6 |
5.4 | — | 5.4 | — | |||||||||||||||||||
Income tax benefit applicable to pretax adjustments |
(23.5) | (20.5) | (120.2) | (97.6) | |||||||||||||||||||
Adjusted net income |
166.7 | 214.0 | 720.1 | 955.5 | |||||||||||||||||||
Interest expense, net | 65.3 | 69.8 | 284.8 | 265.8 | |||||||||||||||||||
Depreciation | 25.6 | 22.2 | 94.6 | 87.2 | |||||||||||||||||||
Income tax provision applicable to Adjusted Net income | 44.5 | 53.5 | 209.6 | 262.2 | |||||||||||||||||||
Adjusted EBITDA | $ | 302.1 | $ | 359.5 | $ | 1,309.1 | $ | 1,570.7 |
(shares in millions) | Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Diluted Earnings per share (GAAP) | $ | 0.15 | $ | 0.21 | $ | 0.47 | $ | 1.01 | |||||||||||||||
Dilutive impact of convertible instruments | — | — | — | — | |||||||||||||||||||
Fully diluted Earnings per share (non-GAAP) | 0.15 | 0.21 | 0.47 | 1.01 | |||||||||||||||||||
Amortization | 0.11 | 0.12 | 0.45 | 0.47 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | 0.01 | 0.01 | |||||||||||||||||||
Net foreign currency loss from financing activities |
— | 0.01 | — | 0.01 | |||||||||||||||||||
Other stock-based compensation expense |
— | — | — | — | |||||||||||||||||||
Integration-related expenses | — | 0.01 | 0.01 | 0.03 | |||||||||||||||||||
Purchase accounting adjustments | — | — | — | 0.01 | |||||||||||||||||||
Restructuring and severance charges | 0.01 | — | 0.04 | 0.01 | |||||||||||||||||||
Reserve for certain legal matters | — | — | 0.01 | — | |||||||||||||||||||
Impairment charges | — | — | 0.24 | — | |||||||||||||||||||
Transformation expenses | 0.01 | 0.01 | |||||||||||||||||||||
Income tax benefit applicable to pretax adjustments |
(0.03) | (0.03) | (0.18) | (0.14) | |||||||||||||||||||
Adjusted EPS (non-GAAP) | $ | 0.25 | $ | 0.32 | $ | 1.06 | $ | 1.41 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Diluted (GAAP) | 679.2 | 677.1 | 678.4 | 679.4 | |||||||||||||||||||
Incremental shares excluded for GAAP | — | — | — | — | |||||||||||||||||||
Share count for Adjusted EPS (non-GAAP) | 679.2 | 677.1 | 678.4 | 679.4 |
(in millions) | Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net cash provided by operating activities |
$ | 251.6 | $ | 205.6 | $ | 870.0 | $ | 843.6 | |||||||||||||||
Capital expenditures | (50.6) | (33.6) | (146.4) | (133.4) | |||||||||||||||||||
Free cash flow (non-GAAP) | $ | 201.0 | $ | 172.0 | $ | 723.6 | $ | 710.2 |
(dollars in millions) | December 31, 2023 | ||||
Total debt, gross | $ | 5,580.0 | |||
Less cash and cash equivalents | (262.9) | ||||
$ | 5,317.1 | ||||
Trailing twelve months Adjusted EBITDA | $ | 1,309.1 | |||
Trailing twelve months ongoing stock-based compensation expense | 40.2 | ||||
$ | 1,349.3 | ||||
Adjusted net leverage (non-GAAP) | 3.9 | x |
(in millions) | December 31 | Reconciliation of net sales growth (decline) to organic and core organic net sales growth (decline) | |||||||||||||||||||||||||||||||||||||||
Net sales growth (decline) |
Foreign currency impact | Organic net sales growth (decline) |
COVID -19 |
Core organic
net sales growth (decline)1
|
|||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
Three months ended: | |||||||||||||||||||||||||||||||||||||||||
Americas | $ | 994.8 | $ | 1,048.0 | $ | (53.2) | $ | 1.5 | $ | (54.7) | $ | (14.7) | $ | (40.0) | |||||||||||||||||||||||||||
Europe | 603.5 | 617.2 | (13.7) | 31.1 | (44.8) | (2.5) | (42.3) | ||||||||||||||||||||||||||||||||||
AMEA | 124.5 | 129.8 | (5.3) | 0.9 | (6.2) | (1.7) | (4.5) | ||||||||||||||||||||||||||||||||||
Total | $ | 1,722.8 | $ | 1,795.0 | $ | (72.2) | $ | 33.5 | $ | (105.7) | $ | (18.9) | $ | (86.8) | |||||||||||||||||||||||||||
Year ended: | |||||||||||||||||||||||||||||||||||||||||
Americas | $ | 4,071.6 | $ | 4,471.2 | $ | (399.6) | $ | (2.2) | $ | (397.4) | $ | (125.1) | $ | (272.3) | |||||||||||||||||||||||||||
Europe | 2,420.4 | 2,516.5 | (96.1) | 50.5 | (146.6) | (48.7) | (97.9) | ||||||||||||||||||||||||||||||||||
AMEA | 475.2 | 524.7 | (49.5) | (7.1) | (42.4) | (20.5) | (21.9) | ||||||||||||||||||||||||||||||||||
Total | $ | 6,967.2 | $ | 7,512.4 | $ | (545.2) | $ | 41.2 | $ | (586.4) | $ | (194.3) | $ | (392.1) | |||||||||||||||||||||||||||
(in millions) | Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Americas | $ | 201.2 | $ | 231.0 | $ | 912.6 | $ | 1,077.3 | |||||||||||||||
Europe | 113.7 | 131.1 | 449.5 | 524.1 | |||||||||||||||||||
AMEA | 31.6 | 40.4 | 125.3 | 141.5 | |||||||||||||||||||
Corporate | (44.4) | (43.0) | (178.3) | (172.2) | |||||||||||||||||||
Total | $ | 302.1 | $ | 359.5 | $ | 1,309.1 | $ | 1,570.7 |
Year ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Net sales: | |||||||||||||||||
Bioscience Production | $ | 2,228.9 | $ | 2,510.0 | $ | 2,173.7 | |||||||||||
Laboratory Solutions | 4,738.3 | 5,002.4 | 5,212.4 | ||||||||||||||
Total | $ | 6,967.2 | $ | 7,512.4 | $ | 7,386.1 | |||||||||||
Adjusted operating income: | |||||||||||||||||
Bioscience Production | $ | 601.9 | $ | 778.9 | $ | 632.6 | |||||||||||
Laboratory Solutions | 668.3 | 764.7 | 806.1 | ||||||||||||||
Corporate | (58.4) | (66.3) | (67.4) | ||||||||||||||
Total | $ | 1,211.8 | $ | 1,477.3 | $ | 1,371.3 |
Year ended December 31, 2023 | |||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
Bioscience Production | $ | 577.3 | $ | 550.1 | $ | 561.1 | $ | 540.4 | $ | 2,228.9 | |||||||||||||||||||
Laboratory Solutions | 1,203.0 | 1,193.8 | 1,159.1 | 1,182.4 | 4,738.3 | ||||||||||||||||||||||||
Total | $ | 1,780.3 | $ | 1,743.9 | $ | 1,720.2 | $ | 1,722.8 | $ | 6,967.2 | |||||||||||||||||||
Adjusted operating income: | |||||||||||||||||||||||||||||
Bioscience Production | $ | 167.5 | $ | 154.2 | $ | 148.2 | $ | 132.0 | $ | 601.9 | |||||||||||||||||||
Laboratory Solutions | 172.2 | 179.7 | 159.1 | 157.3 | 668.3 | ||||||||||||||||||||||||
Corporate | (16.6) | (15.0) | (12.3) | (14.5) | (58.4) | ||||||||||||||||||||||||
Total | $ | 323.1 | $ | 318.9 | $ | 295.0 | $ | 274.8 | $ | 1,211.8 |
Year ended December 31, 2022 | |||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
Bioscience Production | $ | 625.2 | $ | 646.1 | $ | 636.3 | $ | 602.4 | $ | 2,510.0 | |||||||||||||||||||
Laboratory Solutions | 1,325.2 | 1,264.4 | 1,220.2 | 1,192.6 | 5,002.4 | ||||||||||||||||||||||||
Total | $ | 1,950.4 | $ | 1,910.5 | $ | 1,856.5 | $ | 1,795.0 | $ | 7,512.4 | |||||||||||||||||||
Adjusted operating income: | |||||||||||||||||||||||||||||
Bioscience Production | $ | 186.4 | $ | 211.4 | $ | 200.3 | $ | 180.8 | $ | 778.9 | |||||||||||||||||||
Laboratory Solutions | 227.6 | 188.1 | 179.2 | 169.8 | 764.7 | ||||||||||||||||||||||||
Corporate | (14.7) | (18.9) | (17.8) | (14.9) | (66.3) | ||||||||||||||||||||||||
Total | $ | 399.3 | $ | 380.6 | $ | 361.7 | $ | 335.7 | $ | 1,477.3 |
Year ended December 31, | |||||||||||||||||
Operating income reconciliation: | 2023 | 2022 | 2021 | ||||||||||||||
Operating income | $ | 696.4 | $ | 1,130.2 | $ | 972.2 | |||||||||||
Amortization | 307.7 | 318.3 | 290.8 | ||||||||||||||
Other stock-based compensation expense (benefit) |
0.3 | (3.3) | 3.0 | ||||||||||||||
Acquisition-related expenses1 |
— | — | 77.8 | ||||||||||||||
Integration-related expenses2 |
7.6 | 19.2 | 15.9 | ||||||||||||||
Purchase accounting adjustments3 |
— | 9.4 | 6.3 | ||||||||||||||
Restructuring and severance charges4 |
26.5 | 3.5 | 5.3 | ||||||||||||||
Reserve for certain legal matters5 |
7.1 | — | — | ||||||||||||||
Impairment charges6 |
160.8 | — | — | ||||||||||||||
Transformation expenses7 |
5.4 | — | — | ||||||||||||||
Adjusted operating income | $ | 1,211.8 | $ | 1,477.3 | $ | 1,371.3 |
Year ended December 31, 2023 | |||||||||||||||||||||||||||||
Operating income reconciliation: | First Quarter | Second Quarter | Third Quarter |
Fourth Quarter | Total | ||||||||||||||||||||||||
Operating income | $ | 231.2 | $ | 71.7 | $ | 210.2 | $ | 183.3 | $ | 696.4 | |||||||||||||||||||
Amortization | 78.4 | 78.9 | 75.4 | 75.0 | 307.7 | ||||||||||||||||||||||||
Other stock-based compensation expense (benefit) | 0.1 | (0.1) | 0.1 | 0.2 | 0.3 | ||||||||||||||||||||||||
Integration-related expenses1 |
8.7 | (0.6) | 0.2 | (0.7) | 7.6 | ||||||||||||||||||||||||
Restructuring and severance charges2 |
4.7 | 7.2 | 6.1 | 8.5 | 26.5 | ||||||||||||||||||||||||
Reserve for certain legal matters3 |
— | 1.0 | 3.0 | 3.1 | 7.1 | ||||||||||||||||||||||||
Impairment charges4 |
— | 160.8 | — | — | 160.8 | ||||||||||||||||||||||||
Transformation expenses5 |
— | — | — | 5.4 | 5.4 | ||||||||||||||||||||||||
Adjusted operating income | $ | 323.1 | $ | 318.9 | $ | 295.0 | $ | 274.8 | $ | 1,211.8 |
Year ended December 31, 2022 | |||||||||||||||||||||||||||||
Operating income reconciliation: | First Quarter | Second Quarter | Third Quarter |
Fourth Quarter | Total | ||||||||||||||||||||||||
Operating income | $ | 307.0 | $ | 295.6 | $ | 275.8 | $ | 251.8 | $ | 1,130.2 | |||||||||||||||||||
Amortization | 92.2 | 67.8 | 79.8 | 78.5 | 318.3 | ||||||||||||||||||||||||
Other stock-based compensation (benefit) expense | (1.3) | (0.4) | (1.6) | — | (3.3) | ||||||||||||||||||||||||
Integration-related expenses1 |
3.9 | 3.3 | 6.4 | 5.6 | 19.2 | ||||||||||||||||||||||||
Purchase accounting adjustments2 |
(4.4) | 13.8 | — | — | 9.4 | ||||||||||||||||||||||||
Restructuring and severance charges3 |
1.9 | 0.5 | 1.3 | (0.2) | 3.5 | ||||||||||||||||||||||||
Adjusted operating income | $ | 399.3 | $ | 380.6 | $ | 361.7 | $ | 335.7 | $ | 1,477.3 |