![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
GE HealthCare Technologies Inc | NASDAQ:GEHC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 80.19 | 78.51 | 81.90 | 75 | 09:29:03 |
Delivers Strong Financial and Operating Performance in First Year as Public Company
Fourth Quarter 2023
Full Year 2023
GE HealthCare (Nasdaq: GEHC), a leading global precision care innovator, today reported financial results for the fourth quarter ended December 31, 2023.
GE HealthCare President and CEO Peter Arduini said, “After our first year as a publicly traded company, I’m pleased to announce robust fourth quarter and full year results. This strong financial performance is a testament to our dedicated team and successful execution of our precision care strategy. We’ve made significant strides, including investing over $1 billion in R&D for future growth, helping drive more than 40 innovations in 2023. We bolstered our market position with strategic acquisitions, while at the same time paying down $1 billion in debt, setting a solid foundation for continued growth. We’re confident heading into 2024 amid the backdrop of an improved capital equipment landscape.”
Fourth Quarter 2023 Total Company Financial Performance
Fourth Quarter 2023 Segment Financial Performance
Imaging
Ultrasound
Patient Care Solutions
Pharmaceutical Diagnostics
Full Year 2023 Total Company Financial Performance
Growth and Innovation
2024 Guidance
Full year 2024 guidance is as follows:
The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP Financial Measures in Outlook section below for more details.
Consolidated and Combined Statements of Income
For the years ended December 31
(In millions, except per share amounts)
2023
2022
2021
Sales of products
$
13,127
$
12,044
$
11,165
Sales of services
6,425
6,297
6,420
Total revenues
19,552
18,341
17,585
Cost of products
8,465
7,975
7,196
Cost of services
3,165
3,187
3,215
Gross profit
7,922
7,179
7,174
Selling, general, and administrative
4,282
3,631
3,563
Research and development
1,205
1,026
816
Total operating expenses
5,487
4,657
4,379
Operating income
2,435
2,522
2,795
Interest and other financial charges – net
542
77
40
Non-operating benefit (income) costs
(382
)
(5
)
3
Other (income) expense – net
(86
)
(62
)
(123
)
Income from continuing operations before income taxes
2,361
2,512
2,875
Benefit (provision) for income taxes
(743
)
(563
)
(600
)
Net income from continuing operations
1,618
1,949
2,275
Income (loss) from discontinued operations, net of taxes
(4
)
18
18
Net income
1,614
1,967
2,293
Net (income) loss attributable to noncontrolling interests
(46
)
(51
)
(46
)
Net income attributable to GE HealthCare
1,568
1,916
2,247
Deemed preferred stock dividend of redeemable noncontrolling interest
(183
)
—
—
Net income attributable to GE HealthCare common stockholders
$
1,385
$
1,916
$
2,247
Earnings per share from continuing operations attributable to GE HealthCare common stockholders:
Basic
$
3.06
$
4.18
$
4.91
Diluted
3.04
4.18
4.91
Earnings per share attributable to GE HealthCare common stockholders:
Basic
$
3.05
$
4.22
$
4.95
Diluted
3.03
4.22
4.95
Weighted-average number of shares outstanding:
Basic
455
454
454
Diluted
458
454
454
Consolidated and Combined Statements of Financial Position
As of
(In millions, except share and per share amounts)
December 31, 2023
December 31, 2022
Cash, cash equivalents, and restricted cash
$
2,504
$
1,445
Receivables – net of allowances of $98 and $91
3,525
3,295
Due from related parties
32
17
Inventories
1,960
2,155
Contract and other deferred assets
1,000
989
All other current assets
389
417
Current assets
9,410
8,318
Property, plant, and equipment – net
2,500
2,314
Goodwill
12,936
12,813
Other intangible assets – net
1,253
1,520
Deferred income taxes
4,474
1,550
All other assets
1,881
1,024
Total assets
$
32,454
$
27,539
Short-term borrowings
$
1,006
$
15
Accounts payable
2,947
2,944
Due to related parties
99
146
Contract liabilities
1,918
1,896
All other current liabilities
3,011
2,190
Current liabilities
8,981
7,191
Long-term borrowings
8,436
8,234
Compensation and benefits
5,782
549
Deferred income taxes
68
370
All other liabilities
1,877
1,603
Total liabilities
25,144
17,947
Commitments and contingencies
Redeemable noncontrolling interests
165
230
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 455,342,290 shares issued and outstanding as of December 31, 2023; 100 shares issued and outstanding as of December 31, 2022
5
—
Additional paid-in capital
6,493
—
Retained earnings
1,326
—
Net parent investment
—
11,235
Accumulated other comprehensive income (loss) – net
(691
)
(1,878
)
Total equity attributable to GE HealthCare
7,133
9,357
Noncontrolling interests
12
5
Total equity
7,145
9,362
Total liabilities, redeemable noncontrolling interests, and equity
$
32,454
$
27,539
Consolidated and Combined Statements of Cash Flows
For the years ended December 31
(In millions)
2023
2022
2021
Net income
$
1,614
$
1,967
$
2,293
Less: Income (loss) from discontinued operations, net of taxes
(4
)
18
18
Net income from continuing operations
$
1,618
$
1,949
$
2,275
Adjustments to reconcile Net income from continuing operations to Cash from (used for) operating activities
Depreciation of property, plant, and equipment
248
228
225
Amortization of intangible assets
362
405
400
Gain on fair value remeasurement of contingent consideration
(17
)
(65
)
—
Net periodic postretirement benefit plan (income) expense
(332
)
9
25
Postretirement plan contributions
(357
)
(18
)
(20
)
Share-based compensation
114
67
76
Provision for income taxes
743
563
600
Cash paid during the year for income taxes
(474
)
(851
)
(615
)
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:
Receivables
(185
)
(231
)
(1,336
)
Due from related parties
4
13
157
Inventories
111
(402
)
(435
)
Contract and other deferred assets
10
(222
)
23
Accounts payable
(13
)
481
263
Due to related parties
(84
)
(33
)
(21
)
Contract liabilities
26
138
(21
)
All other operating activities
327
103
11
Cash from (used for) operating activities – continuing operations
2,101
2,134
1,607
Cash flows – investing activities
Additions to property, plant and equipment and internal-use software
(387
)
(310
)
(248
)
Dispositions of property, plant, and equipment
1
4
15
Purchases of businesses, net of cash acquired
(147
)
—
(1,481
)
All other investing activities
(25
)
(92
)
(47
)
Cash from (used for) investing activities – continuing operations
(558
)
(398
)
(1,761
)
Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of 90 days or less)
(12
)
9
(7
)
Newly issued debt, net of debt issuance costs (maturities longer than 90 days)
2,006
8,198
5
Repayments and other reductions (maturities longer than 90 days)
(855
)
(3
)
(10
)
Dividends paid to stockholders
(41
)
—
—
Redemption of noncontrolling interests
(211
)
—
—
Net transfers (to) from GE
(1,317
)
(8,934
)
(238
)
All other financing activities
(48
)
(92
)
(13
)
Cash from (used for) financing activities – continuing operations
(478
)
(822
)
(263
)
Cash from (used for) operating activities – discontinued operations
—
(21
)
—
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash
(10
)
(3
)
(34
)
Increase (decrease) in cash, cash equivalents, and restricted cash
1,055
890
(451
)
Cash, cash equivalents, and restricted cash at beginning of year
1,451
561
1,012
Cash, cash equivalents, and restricted cash as of December 31
$
2,506
$
1,451
$
561
Supplemental disclosure of cash flows information
Cash paid during the year for interest
$
(570
)
$
—
$
(21
)
Non-cash investing activities
Acquired but unpaid property, plant, and equipment
$
140
$
136
$
93
Non-GAAP Financial Measures
The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results and assess its future prospects. The Company believes that presenting these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or related to its core operating results and the overall health of the Company. The Company believes these non-GAAP financial measures provide investors greater transparency to the information used by management for its operational decision-making and allow investors to see results “through the eyes of management.” The Company believes that providing this information assists investors in understanding its operating performance and the methodology used by management to evaluate and measure such performance. When read in conjunction with the Company’s U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in the Company’s underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in the Company’s industry.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations and should not rely on any single financial measure to evaluate the Company’s business.
The Company defines these non-GAAP financial measures as:
The Company believes that Organic revenue and Organic revenue growth rate, by excluding the effect of acquisitions, dispositions, and foreign currency rate fluctuations, provide management and investors with additional understanding of the Company’s core, top-line operating results and greater visibility into underlying revenue trends of its established, ongoing operations. Organic revenue and Organic revenue growth rate also provide greater insight regarding the overall demand for its products and services.
The Company believes Adjusted EBIT, Adjusted EBIT margin, Standalone Adjusted EBIT, and Standalone Adjusted EBIT margin provide management and investors with additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors. These metrics exclude interest expense, interest income, non-operating benefit (income) costs, and tax expense, as well as non-recurring and/or non-cash items, which may have a material impact on the Company’s results. The Company believes this provides additional insight into how its businesses are performing, on a normalized basis. However, these non-GAAP financial measures should not be construed as inferring that the Company’s future results will be unaffected by the items for which the measure adjusts.
The Company believes Adjusted net income, Adjusted EPS, and Standalone Adjusted EPS provide investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how it evaluates the business. These non-GAAP financial measures also provide management and investors with additional perspective regarding the impact of certain significant items on the Company’s consolidated and combined earnings. However, they should not be construed as inferring that the Company’s future results will be unaffected by the items for which the measure adjusts.
The Company believes that Free cash flow and Free cash flow conversion provide management and investors with important measures of the Company’s ability to generate cash on a normalized basis. These metrics also provide insight into the Company’s flexibility to allocate capital, including reinvesting in the Company for future growth, paying down debt, paying dividends, and pursuing other opportunities that may enhance stockholder value. The Company believes investors may find it useful to compare Free cash flow performance without the effects of the factoring program discontinuation. However, they should not be construed as inferring that the Company’s future results will be unaffected by the items for which the measure adjusts.
Organic Revenue*
Unaudited
For the three months ended December 31
For the years ended December 31
($ In millions)
2023
2022
% change
2023
2022
% change
Imaging revenues
$
2,830
$
2,709
4
%
$
10,581
$
9,985
6
%
Less: Acquisitions(1)
1
—
1
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
15
—
(144
)
—
Imaging Organic revenue*
$
2,814
$
2,709
4
%
$
10,724
$
9,985
7
%
Ultrasound revenues
$
944
$
956
(1
)%
$
3,457
$
3,422
1
%
Less: Acquisitions(1)
—
—
—
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
11
—
(43
)
—
Ultrasound Organic revenue*
$
933
$
956
(2
)%
$
3,500
$
3,422
2
%
PCS revenues
$
827
$
786
5
%
$
3,142
$
2,916
8
%
Less: Acquisitions(1)
—
—
—
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
6
—
(16
)
—
PCS Organic revenue*
$
821
$
786
4
%
$
3,158
$
2,916
8
%
PDx revenues
$
591
$
473
25
%
$
2,306
$
1,958
18
%
Less: Acquisitions(1)
—
—
—
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
9
—
(14
)
—
PDx Organic revenue*
$
582
$
473
23
%
$
2,320
$
1,958
18
%
Other revenues
$
14
$
14
—
%
$
66
$
60
10
%
Less: Acquisitions(1)
—
—
—
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
1
—
1
—
Other Organic revenue*
$
13
$
14
(7
)%
$
65
$
60
8
%
Total revenues
$
5,206
$
4,938
5
%
$
19,552
$
18,341
7
%
Less: Acquisitions(1)
1
—
1
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
42
—
(216
)
—
Organic revenue*
$
5,163
$
4,938
5
%
$
19,767
$
18,341
8
%
(1)
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)
Represents revenues attributable to dispositions for the four quarters preceding the disposition date.
Unaudited Net Income to Adjusted EBIT* and Standalone Adjusted EBIT* (estimated)
For the three months ended December 31
For the years ended December 31
($ In millions)
2023
2022
% change
2023
2022
% change
Net income attributable to GE HealthCare
$
403
$
554
(27
)%
$
1,568
$
1,916
(18
)%
Add: Interest and other financial charges - net
131
59
542
77
Add: Non-operating benefit (income) costs
(50
)
(1
)
(382
)
(5
)
Less: Benefit (provision) for income taxes
(193
)
(151
)
(743
)
(563
)
Less: Income (loss) from discontinued operations, net of taxes
—
6
(4
)
18
Less: Net (income) loss attributable to noncontrolling interests
(13
)
(19
)
(46
)
(51
)
EBIT*
$
690
$
776
(11
)%
$
2,521
$
2,584
(2
)%
Add: Restructuring costs(1)
20
36
54
146
Add: Acquisition and disposition-related charges (benefits)(2)
—
(14
)
(15
)
(34
)
Add: Spin-Off and separation costs(3)
95
7
270
14
Add: (Gain) loss on business and asset dispositions(4)
—
—
—
(1
)
Add: Amortization of acquisition-related intangible assets
32
31
127
121
Add: Investment revaluation (gain) loss(5)
—
8
(1
)
31
Adjusted EBIT*
$
837
$
844
(1
)%
$
2,956
$
2,861
3
%
Less: Estimated standalone costs(6)
—
50
—
200
Less: Estimated incremental interest expense(7)
—
—
—
—
Less: Estimated tax effect of reconciling items(8)
—
—
—
—
Standalone Adjusted EBIT* (estimate)
$
837
$
794
5
%
$
2,956
$
2,661
11
%
Net income margin
7.7
%
11.2
%
(350) bps
8.0
%
10.4
%
(240) bps
Adjusted EBIT margin*
16.1
%
17.1
%
(100) bps
15.1
%
15.6
%
(50) bps
Standalone Adjusted EBIT margin* (estimate)
16.1
%
16.1
%
0 bps
15.1
%
14.5
%
60 bps
(1)
Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)
Consists of gains and losses resulting from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments for equity investments.
(6)
Estimated 4Q’22 quarter to date and FY’22 expense of recurring and ongoing costs required to operate new functions required for a public company such as external reporting, internal audit, treasury, investor relations, board of directors and officers, stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities, branding, security, government relations, community outreach, and insurance.
(7)
Estimated 4Q’22 quarter to date and FY’22 additional interest expense related to the GE HealthCare debt issuances on November 22nd, 2022 and the draw down of the term loan on January 3rd, 2023, the amortization of original issue discount and deferred, debt issuance costs, and certain Euro to U.S. Dollar cross currency interest rate swap arrangements with a notional amount of $2.0 billion. Interest expense was calculated assuming constant debt levels throughout the periods.
(8)
Estimated 4Q’22 quarter to date and FY’22 tax effect was determined by applying the respective statutory tax rates to the pre-tax adjustments, as appropriate, in jurisdictions where valuation allowances were not required. The applicable tax rates could be impacted (either higher or lower) depending on many factors including, but not limited to, the profitability in local jurisdictions and may be different from the estimate.
Unaudited Net Income to Adjusted Net Income* and Standalone Adjusted Net Income* (estimated)
For the three months ended December 31
For the years ended December 31
($ In millions)
2023
2022
% change
2023
2022
% change
Net income attributable to GE HealthCare
$
403
$
554
(27
)%
$
1,568
$
1,916
(18
)%
Add: Non-operating benefit (income) costs
(50
)
(1
)
(382
)
(5
)
Add: Restructuring costs(1)
20
36
54
146
Add: Acquisition and disposition-related charges (benefits)(2)
—
(14
)
(15
)
(34
)
Add: Spin-Off and separation costs(3)
95
7
270
14
Add: (Gain) loss on business and asset dispositions(4)
—
—
—
(1
)
Add: Amortization of acquisition-related intangible assets
32
31
127
121
Add: Investment revaluation (gain) loss(5)
—
8
(1
)
31
Add: Tax effect of reconciling items
(11
)
(19
)
92
(67
)
Add: Certain tax adjustments(6)
50
—
80
—
Less: Income (loss) from discontinued operations, net of taxes
—
6
(4
)
18
Adjusted net income*
$
539
$
596
(10
)%
$
1,797
$
2,103
(15
)%
Less: Estimated standalone costs(7)
—
50
—
200
Less: Estimated incremental interest expense(8)
—
100
—
541
Less: Estimated tax effect of reconciling items(9)
—
(35
)
—
(171
)
Standalone Adjusted net income* (estimate)
$
539
$
481
12
%
$
1,797
$
1,533
17
%
Adjusted net income margin*
10.4
%
12.1
%
(170) bps
9.2
%
11.5
%
(230) bps
Standalone Adjusted net income margin* (estimate)
10.4
%
9.7
%
70 bps
9.2
%
8.4
%
80 bps
(1)
Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)
Consists of gains and losses resulting from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments for equity investments.
(6)
Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested and the impact of adjusting deferred tax assets and liabilities to standalone GE HealthCare tax rates.
(7)
Estimated 4Q’22 quarter to date and FY’22 expense of recurring and ongoing costs required to operate new functions required for a public company such as external reporting, internal audit, treasury, investor relations, board of directors and officers, stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities, branding, security, government relations, community outreach, and insurance.
(8)
Estimated 4Q’22 quarter to date and FY’22 additional interest expense related to the GE HealthCare debt issuances on November 22nd, 2022 and the draw down of the term loan on January 3rd, 2023, the amortization of original issue discount and deferred, debt issuance costs, and certain Euro to U.S. Dollar cross currency interest rate swap arrangements with a notional amount of $2.0 billion. Interest expense was calculated assuming constant debt levels throughout the periods.
(9)
Estimated 4Q’22 quarter to date and FY’22 tax effect was determined by applying the respective statutory tax rates to the pre-tax adjustments, as appropriate, in jurisdictions where valuation allowances were not required. The applicable tax rates could be impacted (either higher or lower) depending on many factors including, but not limited to, the profitability in local jurisdictions and may be different from the estimate.
Unaudited Diluted Continuing Earnings Per Share to Adjusted Earnings Per Share* and Standalone Adjusted Earnings Per Share* (estimated)
For the three months ended December 31
For the years ended December 31
(In dollars, except shares outstanding presented in millions)
2023
2022
$ change
2023
2022
$ change
Diluted earnings per share – continuing operations
$
0.88
$
1.21
$
(0.33
)
$
3.04
$
4.18
$
(1.14
)
Add: Deemed preferred stock dividend of redeemable noncontrolling interest
—
—
0.40
—
Add: Non-operating benefit (income) costs
(0.11
)
(0.00
)
(0.83
)
(0.01
)
Add: Restructuring costs(1)
0.04
0.08
0.12
0.32
Add: Acquisition and disposition-related charges (benefits)(2)
—
(0.03
)
(0.03
)
(0.07
)
Add: Spin-Off and separation costs(3)
0.21
0.02
0.59
0.03
Add: (Gain) loss on business and asset dispositions(4)
—
—
—
(0.00
)
Add: Amortization of acquisition-related intangible assets
0.07
0.07
0.28
0.27
Add: Investment revaluation (gain) loss(5)
—
0.02
(0.00
)
0.07
Add: Tax effect of reconciling items
(0.02
)
(0.04
)
0.20
(0.15
)
Add: Certain tax adjustments(6)
0.11
—
0.17
—
Adjusted earnings per share*(7)
$
1.18
$
1.31
$
(0.13
)
$
3.93
$
4.63
$
(0.70
)
Less: Estimated standalone costs(8)
—
0.11
—
0.44
Less: Estimated incremental interest expense(9)
—
0.22
—
1.19
Less: Estimated tax effect of reconciling items(10)
—
(0.08
)
—
(0.38
)
Standalone Adjusted earnings per share* (estimate)(7)
$
1.18
$
1.06
$
0.12
$
3.93
$
3.38
$
0.55
Diluted weighted-average shares outstanding
458
454
458
454
(1)
Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)
Consists of gains and losses resulting from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments for equity investments.
(6)
Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested and the impact of adjusting deferred tax assets and liabilities to standalone GE HealthCare tax rates.
(7)
Adjusted earnings per share* and estimated Standalone Adjusted earnings per share* amounts are computed independently, thus, the sum of per-share amounts may not equal the total.
(8)
Estimated 4Q’22 quarter to date and FY’22 expense of recurring and ongoing costs required to operate new functions required for a public company such as external reporting, internal audit, treasury, investor relations, board of directors and officers, stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities, branding, security, government relations, community outreach, and insurance.
(9)
Estimated 4Q’22 quarter to date and FY’22 additional interest expense related to the GE HealthCare debt issuances on November 22nd, 2022 and the draw down of the term loan on January 3rd, 2023, the amortization of original issue discount and deferred, debt issuance costs, and certain Euro to U.S. Dollar cross currency interest rate swap arrangements with a notional amount of $2.0 billion. Interest expense was calculated assuming constant debt levels throughout the periods.
(10)
Estimated 4Q’22 quarter to date and FY’22 tax effect was determined by applying the respective statutory tax rates to the pre-tax adjustments, as appropriate, in jurisdictions where valuation allowances were not required. The applicable tax rates could be impacted (either higher or lower) depending on many factors including, but not limited to, the profitability in local jurisdictions and may be different from the estimate.
Free Cash Flow*
Unaudited
For the three months ended December 31
For the years ended December 31
($ In millions)
2023
2022
% change
2023
2022
% change
Cash from (used for) operating activities – continuing operations
$
1,050
$
1,063
(1
)%
$
2,101
$
2,134
(2
)%
Cash flow conversion
134
%
111
%
23 pts
Add: Additions to PP&E and internal-use software
(94
)
(77
)
(387
)
(310
)
Add: Dispositions of PP&E
—
1
1
4
Free cash flow*
$
956
$
987
(3
)%
$
1,715
$
1,828
(6
)%
Free cash flow conversion*
95
%
87
%
8 pts
Non-GAAP Financial Measures in Outlook
GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. GE HealthCare 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 dispositions, timing and magnitude of restructuring activities, and revaluation of strategic investments, amongst other items. The timing and amounts of these items are uncertain and could have a substantial impact on GE HealthCare’s results in accordance with GAAP.
Key Performance Indicators
Management uses the following metrics to provide a leading indicator of current business demand from customers for products and services.
Conference Call and Webcast Information
GE HealthCare will discuss its results during its investor conference call today, February 6, 2024 at 8:30am ET. The conference call will be broadcast live via webcast, and the webcast and accompanying slide presentation containing financial information can be accessed by visiting the investor section of the website at https://investor.gehealthcare.com/news-events/events. An archived version of the webcast will be available on the website after the call.
Forward-looking Statements
This release contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “target,” “guidance,” “outlook,” and similar expressions. These forward-looking statements may include, but are not limited to, statements about the Company’s expected financial performance, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows, and the Company’s outlook; and the Company’s strategy, innovation, and investments. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control. Factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include, but are not limited to, operating in highly competitive markets; the Company’s ability to successfully complete strategic transactions; the actions or inactions of third parties with whom the Company partners and the various collaboration, licensing, and other partnerships and alliances the Company has with third parties; demand for the Company’s products, services, or solutions and factors that affect that demand; management of the Company’s supply chain and the Company’s ability to cost-effectively secure the materials it needs to operate its business; disruptions in the Company’s operations; changes in third-party and government reimbursement processes, rates, contractual relationships, and mix of public and private payers, including related to government shutdowns; the Company’s ability to attract and/or retain key personnel and qualified employees; global geopolitical and economic instability, including as a result of the conflict between Ukraine and Russia, the conflict in Israel and surrounding areas, and the actions in the Red Sea region; public health crises, epidemics, and pandemics, such as the Coronavirus Disease 2019 (“COVID-19”) and their effects on the Company’s business; maintenance and protection of the Company’s intellectual property rights, as well as maintenance of successful research and development efforts with respect to commercially successful products and technologies; the impact of potential information technology, cybersecurity or data security breaches; compliance with the various legal, regulatory, tax, privacy, and other laws to which the Company is subject, such as the Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws globally, and related changes, claims, inquiries, investigations, or actions; the Company’s ability to control increases in healthcare costs and any subsequent effect on demand for the Company’s products, services, or solutions; the impacts related to the Company’s increasing focus on and investment in cloud, edge, artificial intelligence, and software offerings; the impact of potential product liability claims; environmental, social, and governance matters; the Company’s ability to operate effectively as an independent, publicly-traded company; and the Company’s level of indebtedness, as well as its general ability to comply with covenants under its debt instruments and any related effect on the Company’s business. Please also see the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and any updates or amendments it makes in future filings. There may be other factors not presently known to the Company or which it currently considers to be immaterial that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements the Company makes. The Company does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation.
About GE HealthCare Technologies Inc.
GE HealthCare is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator, dedicated to providing integrated solutions, services, and data analytics to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier. Serving patients and providers for more than 100 years, GE HealthCare is advancing personalized, connected, and compassionate care, while simplifying the patient’s journey across the care pathway. Together our Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics businesses help improve patient care from diagnosis, to therapy, to monitoring. We are a $19.6 billion business with 51,000 colleagues working to create a world where healthcare has no limits.
Follow us on LinkedIn, Twitter, and Insights for the latest news, or visit our website gehealthcare.com for more information.
* Non-GAAP financial measure.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206118712/en/
Investor Relations Contact: Carolynne Borders +1-631-662-4317 carolynne.borders@gehealthcare.com
Media Contact: Tor Constantino +1-585-441-1658 tor.constantino@gehealthcare.com
1 Year GE HealthCare Technologies Chart |
1 Month GE HealthCare Technologies Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions