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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Catalent Inc | NYSE:CTLT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.16 | 0.28% | 56.50 | 56.63 | 56.1786 | 56.20 | 1,712,987 | 01:00:00 |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 20-8737688 | ||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
14 Schoolhouse Road, | Somerset, | NJ | 08873 | ||||||||||||||
(Address of principal executive offices) | (Zip code) |
Large accelerated filer
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☒
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Accelerated filer
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¨
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Non-accelerated filer
|
¨
|
Smaller reporting company
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¨
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Emerging growth company
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¨
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Title of each class | Trading symbols(s) | Name of each exchange on which registered | ||||||
Common Stock | CTLT | New York Stock Exchange |
Item | Page | |||||||
Part I. | ||||||||
Item 1. |
Financial Statements (unaudited)
|
|||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenue | $ | 1,053.3 | $ | 760.6 | $ | 2,809.8 | $ | 2,146.7 | |||||||||||||||
Cost of sales | 687.7 | 521.8 | 1,897.1 | 1,498.0 | |||||||||||||||||||
Gross margin | 365.6 | 238.8 | 912.7 | 648.7 | |||||||||||||||||||
Selling, general, and administrative expenses | 172.7 | 136.1 | 502.9 | 419.9 | |||||||||||||||||||
Impairment charges and (gain) loss on sale of assets | 5.3 | 0.6 | 7.7 | 1.0 | |||||||||||||||||||
Restructuring and other costs | 3.0 | 1.3 | 9.4 | 2.5 | |||||||||||||||||||
(Gain) loss on sale of subsidiary | (184.0) | — | (184.0) | 1.1 | |||||||||||||||||||
Operating earnings | 368.6 | 100.8 | 576.7 | 224.2 | |||||||||||||||||||
Interest expense, net | 26.9 | 34.4 | 78.1 | 105.6 | |||||||||||||||||||
Other expense, net | 24.6 | 36.7 | 5.1 | 37.2 | |||||||||||||||||||
Earnings before income taxes | 317.1 | 29.7 | 493.5 | 81.4 | |||||||||||||||||||
Income tax expense | 85.3 | 8.8 | 90.9 | 14.9 | |||||||||||||||||||
Net earnings | 231.8 | 20.9 | 402.6 | 66.5 | |||||||||||||||||||
Less: Net earnings attributable to preferred shareholders | (14.7) | (9.1) | (42.5) | (27.8) | |||||||||||||||||||
Net earnings attributable to common shareholders | $ | 217.1 | $ | 11.8 | $ | 360.1 | $ | 38.7 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Net earnings | $ | 1.27 | $ | 0.08 | $ | 2.15 | $ | 0.26 | |||||||||||||||
Diluted | |||||||||||||||||||||||
Net earnings | $ | 1.26 | $ | 0.08 | $ | 2.12 | $ | 0.26 |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net earnings | $ | 231.8 | $ | 20.9 | $ | 402.6 | $ | 66.5 | |||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Foreign currency translation adjustments | (0.2) | (43.1) | 55.1 | (42.8) | |||||||||||||||||||
Pension and other post-retirement adjustments | 0.6 | 0.1 | 1.6 | 3.1 | |||||||||||||||||||
Net change in marketable securities | (0.2) | — | (0.2) | — | |||||||||||||||||||
Derivatives and hedges | 5.5 | — | 5.9 | — | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 5.7 | (43.0) | 62.4 | (39.7) | |||||||||||||||||||
Comprehensive income (loss) | $ | 237.5 | $ | (22.1) | $ | 465.0 | $ | 26.8 | |||||||||||||||
March 31,
2021 |
June 30,
2020 |
||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 988.1 | $ | 953.2 | |||||||
Trade receivables, net | 834.9 | 838.1 | |||||||||
Inventories | 527.9 | 323.8 | |||||||||
Prepaid expenses and other | 348.9 | 177.9 | |||||||||
Marketable securities | 74.7 | — | |||||||||
Total current assets | 2,774.5 | 2,293.0 | |||||||||
Property, plant, and equipment, net | 2,358.8 | 1,900.8 | |||||||||
Other assets: | |||||||||||
Goodwill | 2,515.0 | 2,470.6 | |||||||||
Other intangibles, net | 834.8 | 888.7 | |||||||||
Deferred income taxes | 44.1 | 49.4 | |||||||||
Other long-term assets | 241.9 | 174.0 | |||||||||
Total assets | $ | 8,769.1 | $ | 7,776.5 | |||||||
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term obligations and other short-term borrowings | $ | 73.6 | $ | 72.9 | |||||||
Accounts payable | 365.7 | 321.0 | |||||||||
Other accrued liabilities | 699.9 | 499.3 | |||||||||
Total current liabilities | 1,139.2 | 893.2 | |||||||||
Long-term obligations, less current portion | 3,149.6 | 2,945.1 | |||||||||
Pension liability | 140.0 | 135.2 | |||||||||
Deferred income taxes | 100.3 | 94.0 | |||||||||
Other liabilities | 167.8 | 203.6 | |||||||||
Commitment and contingencies (see Note 15) | |||||||||||
Total liabilities | 4,696.9 | 4,271.1 | |||||||||
Redeemable preferred stock, $0.01 par value; 1.0 million shares authorized at March 31, 2021 and June 30, 2020; 384,777 and 650,000 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively
|
359.0 | 606.6 | |||||||||
Shareholders' equity: | |||||||||||
Common stock, $0.01 par value; 1.0 billion shares authorized at March 31, 2021 and June 30, 2020; 170.3 million and 162.8 million issued and outstanding at March 31, 2021 and June 30, 2020, respectively
|
1.7 | 1.6 | |||||||||
Preferred stock, $0.01 par value; 99 million authorized at March 31, 2021 and June 30, 2020; 0 issued and outstanding at March 31, 2021 and June 30, 2020
|
— | — | |||||||||
Additional paid in capital | 4,185.7 | 3,818.7 | |||||||||
Accumulated deficit | (150.3) | (535.2) | |||||||||
Accumulated other comprehensive loss | (323.9) | (386.3) | |||||||||
Total shareholders' equity | 3,713.2 | 2,898.8 | |||||||||
Total liabilities, redeemable preferred stock, and shareholders' equity | $ | 8,769.1 | $ | 7,776.5 |
Shares of Common Stock | Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders' Equity | Redeemable Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 170,133.3 | $ | 1.7 | $ | 4,160.8 | $ | (377.4) | $ | (329.6) | $ | 3,455.5 | $ | 359.0 | |||||||||||||||||||||||||||||||||||||||||||
Share issuances related to
stock-based compensation
|
165.9 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 8.4 | — | — | 8.4 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid, in lieu of equity,
for tax withholding
|
— | — | (1.4) | — | — | (1.4) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | 15.4 | — | — | 15.4 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | 2.5 | — | — | 2.5 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividend ($12.50 per
share of redeemable preferred stock) |
— | — | — | (4.7) | — | (4.7) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 231.8 | — | 231.8 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net
of tax |
— | — | — | — | 5.7 | 5.7 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 170,299.2 | $ | 1.7 | $ | 4,185.7 | $ | (150.3) | $ | (323.9) | $ | 3,713.2 | $ | 359.0 | |||||||||||||||||||||||||||||||||||||||||||
Columns may not foot due to rounding | Shares of Common Stock | Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders' Equity | Redeemable Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 146,359.5 | $ | 1.5 | $ | 2,759.2 | $ | (694.0) | $ | (350.6) | $ | 1,716.1 | $ | 606.6 | ||||||||||||||||||||||||||||||||||||||||
Equity offering, sale of common stock | 8,445.9 | 0.1 | 494.1 | — | — | 494.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Share issuances related to stock-
based compensation
|
62.4 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 8.6 | — | — | 8.6 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash paid, in lieu of equity, for
tax withholding |
— | — | (0.9) | — | — | (0.9) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividend | — | — | — | (8.1) | — | (8.1) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 20.9 | — | 20.9 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of
tax |
— | — | — | — | (43.0) | (43.0) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 154,867.8 | $ | 1.5 | $ | 3,261.0 | $ | (681.2) | $ | (393.6) | $ | 2,187.7 | $ | 606.6 | ||||||||||||||||||||||||||||||||||||||||
Shares of Common Stock | Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders' Equity | Redeemable Preferred Stock | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 162,788.0 | $ | 1.6 | $ | 3,818.7 | $ | (535.2) | $ | (386.3) | $ | 2,898.8 | $ | 606.6 | ||||||||||||||||||||||||||||||||||||||||
Equity offering, sale of common
stock |
1,162.5 | — | 81.8 | — | — | 81.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Share issuances related to stock-
based compensation
|
956.4 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of redeemable
preferred stock |
5,392.3 | 0.1 | 252.9 | — | — | 253.0 | (247.6) | ||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 38.5 | — | — | 38.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash paid, in lieu of equity, for
tax withholding |
— | — | (27.8) | — | — | (27.8) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | 15.4 | — | — | 15.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | 6.2 | — | — | 6.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividend ($12.50 per
share of redeemable preferred stock) |
— | — | — | (17.7) | — | (17.7) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 402.6 | — | 402.6 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net
of tax |
— | — | — | — | 62.4 | 62.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 170,299.2 | $ | 1.7 | $ | 4,185.7 | $ | (150.3) | $ | (323.9) | $ | 3,713.2 | $ | 359.0 |
Columns may not foot due to rounding | Shares of Common Stock | Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders' Equity | Redeemable Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 145,738.3 | $ | 1.5 | $ | 2,757.4 | $ | (723.4) | $ | (353.9) | $ | 1,681.6 | $ | 606.6 | ||||||||||||||||||||||||||||||||||||||||
Equity offering, sale of common
stock |
8,445.9 | 0.1 | 494.1 | — | — | 494.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Share issuances related to stock-
based compensation
|
683.6 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 35.5 | — | — | 35.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash paid, in lieu of equity, for
tax withholding |
— | — | (25.3) | — | — | (25.3) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Non-qualified stock | — | — | (0.7) | — | — | (0.7) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividend | — | — | — | (24.3) | — | (24.3) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 66.5 | — | 66.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of
tax |
— | — | — | — | (39.7) | (39.7) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 154,867.8 | $ | 1.5 | $ | 3,261.0 | $ | (681.2) | $ | (393.6) | $ | 2187.7 | $ | 606.6 |
Nine Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net earnings | $ | 402.6 | $ | 66.5 | |||||||
Adjustments to reconcile net earnings to net cash from operations:
|
|||||||||||
Depreciation and amortization | 216.0 | 187.3 | |||||||||
Non-cash foreign currency transaction (gain) loss, net | (6.7) | 2.5 | |||||||||
Amortization of debt issuance costs
|
9.4 | 10.7 | |||||||||
Impairments charges and (gain) loss on sale of assets
|
7.7 | 1.0 | |||||||||
(Gain) loss on sale of subsidiary | (184.0) | 1.1 | |||||||||
Financing-related charges
|
17.2 | 10.0 | |||||||||
(Gain) loss on derivative instrument | (16.4) | 24.9 | |||||||||
Stock-based compensation
|
38.5 | 35.5 | |||||||||
Provision for deferred income taxes | 17.8 | 5.4 | |||||||||
Provision for bad debts and inventory | 40.0 | 11.4 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Increase in trade receivables | (1.2) | (15.5) | |||||||||
Increase in inventories | (240.0) | (54.7) | |||||||||
Increase in accounts payable | 36.6 | 29.9 | |||||||||
Other assets/accrued liabilities, net—current and non-current
|
(38.8) | (48.4) | |||||||||
Net cash provided by operating activities | 298.7 | 267.6 | |||||||||
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||||||||||
Acquisition of property, equipment, and other productive assets | (497.1) | (303.5) | |||||||||
Purchases of marketable securities | (74.9) | — | |||||||||
Proceeds from sale of property and equipment | 0.5 | — | |||||||||
Proceeds from sale of subsidiaries, net | 286.8 | 20.8 | |||||||||
Payment for acquisitions, net of cash acquired | (147.1) | (379.7) | |||||||||
Payment made for investments | (4.1) | (2.4) | |||||||||
Net cash used in investing activities | (435.9) | (664.8) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net change in other borrowings | 1.6 | (45.2) | |||||||||
Proceeds from borrowing, net | 166.6 | 1,109.1 | |||||||||
Payments related to long-term obligations | (54.8) | (808.9) | |||||||||
Financing fees paid
|
(18.7) | (25.1) | |||||||||
Dividends paid | (17.7) | (28.1) | |||||||||
Proceeds from sale of common stock, net | 81.8 | 494.2 | |||||||||
Cash paid, in lieu of equity, for tax-withholding obligations | (27.8) | (25.3) | |||||||||
Exercise of stock options | 22.1 | — | |||||||||
Other financing activities | 6.2 | — | |||||||||
Net cash provided by financing activities | 159.3 | 670.7 | |||||||||
Effect of foreign currency exchange on cash and cash equivalents | 12.8 | (10.5) | |||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 34.9 | 263.0 | |||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 953.2 | 345.4 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 988.1 | $ | 608.4 | |||||||
SUPPLEMENTARY CASH FLOW INFORMATION: | |||||||||||
Interest paid | $ | 97.0 | $ | 88.7 | |||||||
Income taxes paid, net | $ | 24.8 | $ | 38.9 |
Three Months Ended March 31, 2021 | Biologics | Softgel and Oral Technologies | Oral and Specialty Delivery | Clinical Supply Services | Total | ||||||||||||||||||||||||
Manufacturing & commercial product supply | $ | 147.5 | $ | 212.0 | $ | 118.3 | $ | — | $ | 477.8 | |||||||||||||||||||
Development services | 396.2 | 31.7 | 53.4 | — | 481.3 | ||||||||||||||||||||||||
Clinical supply services | — | — | — | 100.0 | 100.0 | ||||||||||||||||||||||||
Total | $ | 543.7 | $ | 243.7 | $ | 171.7 | $ | 100.0 | $ | 1,059.1 | |||||||||||||||||||
Inter-segment revenue elimination | (5.8) | ||||||||||||||||||||||||||||
Combined net revenue | $ | 1,053.3 |
Three Months Ended March 31, 2020 | Biologics | Softgel and Oral Technologies | Oral and Specialty Delivery | Clinical Supply Services | Total | ||||||||||||||||||||||||
Manufacturing & commercial product supply | $ | 85.2 | $ | 217.6 | $ | 127.2 | $ | — | $ | 430.0 | |||||||||||||||||||
Development services | 164.8 | 24.7 | 54.2 | — | 243.7 | ||||||||||||||||||||||||
Clinical supply services | — | — | — | 88.9 | 88.9 | ||||||||||||||||||||||||
Total | $ | 250.0 | $ | 242.3 | $ | 181.4 | $ | 88.9 | $ | 762.6 | |||||||||||||||||||
Inter-segment revenue elimination | (2.0) | ||||||||||||||||||||||||||||
Combined net revenue | $ | 760.6 |
Nine Months Ended March 31, 2021 | Biologics | Softgel and Oral Technologies | Oral and Specialty Delivery | Clinical Supply Services | Total | ||||||||||||||||||||||||
Manufacturing & commercial product supply | $ | 361.8 | $ | 616.4 | $ | 335.3 | $ | — | $ | 1,313.5 | |||||||||||||||||||
Development services | 962.9 | 95.0 | 164.6 | — | 1,222.5 | ||||||||||||||||||||||||
Clinical supply services | — | — | — | 286.2 | 286.2 | ||||||||||||||||||||||||
Total | $ | 1,324.7 | $ | 711.4 | $ | 499.9 | $ | 286.2 | $ | 2,822.2 | |||||||||||||||||||
Inter-segment revenue elimination | (12.4) | ||||||||||||||||||||||||||||
Combined net revenue | $ | 2,809.8 |
Nine Months Ended March 31, 2020 | Biologics | Softgel and Oral Technologies | Oral and Specialty Delivery | Clinical Supply Services | Total | ||||||||||||||||||||||||
Manufacturing & commercial product supply | $ | 229.6 | $ | 701.5 | $ | 294.5 | $ | — | $ | 1,225.6 | |||||||||||||||||||
Development services | 434.2 | 69.3 | 162.7 | — | 666.2 | ||||||||||||||||||||||||
Clinical supply services | — | — | — | 261.4 | 261.4 | ||||||||||||||||||||||||
Total | $ | 663.8 | $ | 770.8 | $ | 457.2 | $ | 261.4 | $ | 2,153.2 | |||||||||||||||||||
Inter-segment revenue elimination | (6.5) | ||||||||||||||||||||||||||||
Combined net revenue | $ | 2,146.7 |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
|||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
United States | $ | 670.0 | $ | 438.9 | $ | 1,722.2 | $ | 1,215.9 | ||||||||||||||||||
Europe | 344.9 | 258.7 | 954.8 | 690.1 | ||||||||||||||||||||||
Other | 61.9 | 83.5 | 200.6 | 299.8 | ||||||||||||||||||||||
Elimination of revenue attributable to multiple locations | (23.5) | (20.5) | (67.8) | (59.1) | ||||||||||||||||||||||
Total | $ | 1,053.3 | $ | 760.6 | $ | 2,809.8 | $ | 2,146.7 |
(Dollars in millions) | ||||||||
Balance at June 30, 2020 | $ | 218.4 | ||||||
Balance at March 31, 2021 | $ | 300.6 | ||||||
Revenue recognized in the period from July 1 through March 31, 2021: | ||||||||
Amounts included in contract liability at the beginning of the period | $ | 147.5 |
(Dollars in millions) | Fair value of consideration received | ||||
Cash, gross | $ | 300.0 | |||
Note receivable (1)
|
47.4 | ||||
Contingent consideration (2)
|
— | ||||
Other (3)
|
(13.2) | ||||
Total | $ | 334.2 |
(Dollars in millions) | Biologics | Softgel and Oral Technologies | Oral and Specialty Delivery | Clinical Supply Services | Total | ||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 1,462.2 | $ | 505.5 | $ | 354.7 | $ | 148.2 | $ | 2,470.6 | |||||||||||||||||||
Additions(1)
|
58.7 | — | 1.8 | — | 60.5 | ||||||||||||||||||||||||
Divestitures(2)
|
— | — | (55.8) | — | (55.8) | ||||||||||||||||||||||||
Foreign currency translation adjustments | 12.2 | 7.5 | 13.0 | 7.0 | 39.7 | ||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 1,533.1 | $ | 513.0 | $ | 313.7 | $ | 155.2 | $ | 2,515.0 |
(Dollars in millions) | Weighted Average Life |
Gross
Carrying
Value
|
Accumulated
Amortization
|
Net
Carrying
Value
|
|||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||
Amortized intangibles: | |||||||||||||||||||||||
Core technology | 19 years | $ | 139.9 | $ | (91.9) | $ | 48.0 | ||||||||||||||||
Customer relationships | 14 years | 1,015.1 | (286.4) | 728.7 | |||||||||||||||||||
Product relationships | 11 years | 280.2 | (233.8) | 46.4 | |||||||||||||||||||
Other | 5 years | 19.0 | (7.3) | 11.7 | |||||||||||||||||||
Total other intangibles | $ | 1,454.2 | $ | (619.4) | $ | 834.8 |
(Dollars in millions) | Weighted Average Life |
Gross
Carrying
Value
|
Accumulated
Amortization
|
Net
Carrying
Value
|
|||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||
Amortized intangibles: | |||||||||||||||||||||||
Core technology | 19 years | $ | 134.5 | $ | (83.0) | $ | 51.5 | ||||||||||||||||
Customer relationships | 14 years | 1,021.3 | (248.0) | 773.3 | |||||||||||||||||||
Product relationships | 11 years | 270.4 | (217.5) | 52.9 | |||||||||||||||||||
Other | 5 years | 15.5 | (4.5) | 11.0 | |||||||||||||||||||
Total other intangibles | $ | 1,441.7 | $ | (553.0) | $ | 888.7 |
(Dollars in millions) |
Remainder
Fiscal 2021 |
2022 | 2023 | 2024 | 2025 | 2026 | |||||||||||||||||||||||||||||
Amortization expense | $ | 23.2 | $ | 92.1 | $ | 91.4 | $ | 90.7 | $ | 89.7 | $ | 82.1 |
(Dollars in millions) | Maturity | March 31, 2021 |
June 30,
2020 |
||||||||||||||
Senior secured credit facilities | |||||||||||||||||
Term loan facility B-2 | May 2026 | $ | — | $ | 938.1 | ||||||||||||
Term loan facility B-3 | February 2028 | 1,000.0 | — | ||||||||||||||
4.875% senior notes due 2026 | January 2026 | — | 450.0 | ||||||||||||||
5.000% senior notes due 2027 | July 2027 | 500.0 | 500.0 | ||||||||||||||
2.375% Euro senior notes due 2028(1)
|
March 2028 | 974.0 | 925.6 | ||||||||||||||
3.125% senior notes due 2029 | February 2029 | 550.0 | — | ||||||||||||||
Deferred purchase consideration | October 2021 | 49.1 | 97.5 | ||||||||||||||
Finance lease obligations | 2021 to 2044 | 185.0 | 142.2 | ||||||||||||||
Other obligations | 2021 to 2024 | 2.6 | 1.4 | ||||||||||||||
Debt issuance costs | (37.5) | (36.8) | |||||||||||||||
Total debt | $ | 3,223.2 | $ | 3,018.0 | |||||||||||||
Less: current portion of long-term obligations and other short-term
borrowings |
73.6 | 72.9 | |||||||||||||||
Long-term obligations, less current portion | $ | 3,149.6 | $ | 2,945.1 |
March 31, 2021 | June 30, 2020 | ||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value Measurement |
Carrying
Value
|
Estimated Fair
Value
|
Carrying
Value
|
Estimated Fair
Value
|
||||||||||||||||||||||||
4.875% senior notes due 2026 | Level 2 | $ | — | $ | — | $ | 450.0 | $ | 463.6 | ||||||||||||||||||||
5.000% senior notes due 2027 | Level 2 | 500.0 | 534.3 | 500.0 | 537.9 | ||||||||||||||||||||||||
2.375% Euro senior notes due 2028 | Level 2 | 974.0 | 966.0 | 925.6 | 844.1 | ||||||||||||||||||||||||
3.125% senior notes due 2029 | Level 2 | 550.0 | 514.2 | — | — | ||||||||||||||||||||||||
Senior secured credit facilities & other | Level 2 | 1,236.7 | 1,183.0 | 1,179.2 | 1,160.1 | ||||||||||||||||||||||||
Subtotal | $ | 3,260.7 | $ | 3,197.5 | $ | 3,054.8 | $ | 3,005.7 | |||||||||||||||||||||
Debt issuance costs | (37.5) | — | (36.8) | — | |||||||||||||||||||||||||
Total debt | $ | 3,223.2 | $ | 3,197.5 | $ | 3,018.0 | $ | 3,005.7 |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
||||||||||||||||||||||
(In millions except per share data) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net earnings | $ | 231.8 | $ | 20.9 | $ | 402.6 | $ | 66.5 | |||||||||||||||
Less: Net earnings attributable to preferred shareholders | (14.7) | (9.1) | (42.5) | (27.8) | |||||||||||||||||||
Net earnings attributable to common shareholders | $ | 217.1 | $ | 11.8 | $ | 360.1 | $ | 38.7 | |||||||||||||||
Weighted average shares outstanding - basic | 170.5 | 151.3 | 167.2 | 147.7 | |||||||||||||||||||
Weighted average dilutive securities issuable - stock plans | 2.0 | 1.8 | 2.3 | 1.8 | |||||||||||||||||||
Weighted average shares outstanding - diluted | 172.5 | 153.1 | 169.5 | 149.5 | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 1.27 | $ | 0.08 | $ | 2.15 | $ | 0.26 | |||||||||||||||
Diluted | $ | 1.26 | $ | 0.08 | $ | 2.12 | $ | 0.26 |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
||||||||||||||||||||||
(share counts in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Stock options | — | 0.3 | 0.2 | 0.4 | |||||||||||||||||||
Restricted stock units | — | 0.1 | 0.1 | 0.1 | |||||||||||||||||||
Performance stock units | — | 0.1 | — | 0.1 | |||||||||||||||||||
Series A Preferred Stock | 7.7 | 13.1 | 10.6 | 13.1 |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Unrealized foreign exchange gain (loss) within other
comprehensive income
|
$ | 32.6 | $ | 3.7 | $ | (45.2) | $ | 17.5 | |||||||||||||||
Unrealized foreign exchange gain (loss) within statement
of operations
|
$ | 1.1 | $ | 1.9 | $ | (3.3) | $ | 7.7 |
March 31, 2021 | June 30, 2020 | ||||||||||||||||||||||
(Dollars in millions) | Balance Sheet Classification | Estimated Fair Value | Balance Sheet Classification | Estimated Fair Value | |||||||||||||||||||
Interest rate swap | Other long-term assets | $ | 6.3 | Other liabilities | $ | 3.7 |
(Dollars in millions) | Basis of Fair Value Measurement | |||||||||||||||||||||||||
March 31, 2021 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Marketable securities | $ | 74.7 | $ | 74.7 | $ | — | $ | — | ||||||||||||||||||
Corporate-owned life insurance policies | 30.9 | — | 30.9 | — | ||||||||||||||||||||||
Interest rate swap | 6.3 | — | 6.3 | — | ||||||||||||||||||||||
Trading securities | $ | 2.7 | $ | 2.7 | $ | — | $ | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Series A Preferred Stock derivative liability | $ | 3.7 | $ | — | $ | — | $ | 3.7 | ||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Corporate-owned life insurance policies | $ | 22.9 | $ | — | $ | 22.9 | $ | — | ||||||||||||||||||
Trading securities | $ | 0.5 | $ | 0.5 | $ | — | $ | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Series A Preferred Stock derivative liability | $ | 23.6 | $ | — | $ | — | $ | 23.6 | ||||||||||||||||||
Interest rate swap | $ | 3.7 | $ | — | $ | 3.7 | $ | — |
(Dollars in millions) |
Fair Value Measurements of
Series A Preferred Stock Derivative Liability Using Significant Unobservable Inputs (Level 3) |
||||||||||
Balance at June 30, 2020 | $ | 23.6 | |||||||||
Change in estimated fair value of Series A Preferred Stock derivative liability | (16.4) | ||||||||||
Settlement of derivative liability upon Partial Conversion
|
(3.5) | ||||||||||
Balance at March 31, 2021 | $ | 3.7 |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||
Selling, general, and administrative expenses: | |||||||||||||||||||||||
Service cost | $ | 1.0 | $ | 0.9 | $ | 3.0 | $ | 2.3 | |||||||||||||||
Other expense, net: | |||||||||||||||||||||||
Interest cost | 1.1 | 0.7 | 3.2 | 4.2 | |||||||||||||||||||
Expected return on plan assets | (2.6) | (2.5) | (7.5) | (7.8) | |||||||||||||||||||
Amortization (1)
|
0.8 | 2.6 | 2.2 | 4.1 | |||||||||||||||||||
Net amount recognized | $ | 0.3 | $ | 1.7 | $ | 0.9 | $ | 2.8 |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||
Net investment hedge | $ | 32.6 | $ | 3.7 | $ | (45.2) | $ | 17.5 | |||||||||||||||
Long-term intercompany loans | 15.3 | (26.9) | 38.1 | (15.3) | |||||||||||||||||||
Translation adjustments | (40.3) | (20.5) | 54.0 | (42.5) | |||||||||||||||||||
Total foreign currency translation adjustment, pretax | 7.6 | (43.7) | 46.9 | (40.3) | |||||||||||||||||||
Tax expense (benefit) | 7.8 | (0.6) | (8.2) | 2.5 | |||||||||||||||||||
Total foreign currency translation adjustment, net of tax | $ | (0.2) | $ | (43.1) | $ | 55.1 | $ | (42.8) | |||||||||||||||
Net change in derivatives and hedges: | |||||||||||||||||||||||
Net gain recognized during the period | $ | 7.2 | $ | — | $ | 7.7 | $ | — | |||||||||||||||
Total derivatives and hedges, pretax | 7.2 | — | 7.7 | — | |||||||||||||||||||
Tax expense | 1.7 | — | 1.8 | — | |||||||||||||||||||
Net change in derivatives and hedges, net of tax | $ | 5.5 | $ | — | $ | 5.9 | $ | — | |||||||||||||||
Net change in minimum pension liability: | |||||||||||||||||||||||
Net gain recognized during the period | $ | 0.8 | $ | 1.2 | $ | 2.2 | $ | 4.1 | |||||||||||||||
Total pension liability, pretax | 0.8 | 1.2 | 2.2 | 4.1 | |||||||||||||||||||
Tax expense | 0.2 | 1.1 | 0.6 | 1.0 | |||||||||||||||||||
Net change in minimum pension liability, net of tax | $ | 0.6 | $ | 0.1 | $ | 1.6 | $ | 3.1 | |||||||||||||||
Net change in marketable securities: | |||||||||||||||||||||||
Net loss recognized during the period | $ | (0.2) | $ | — | $ | (0.2) | $ | — | |||||||||||||||
Total available for sale investment, pretax | (0.2) | — | (0.2) | — | |||||||||||||||||||
Tax benefit | — | — | — | — | |||||||||||||||||||
Net change in marketable securities, net of tax | $ | (0.2) | $ | — | $ | (0.2) | $ | — | |||||||||||||||
(Dollars in millions) | Foreign Exchange Translation Adjustments | Pension and Liability Adjustments | Derivatives and Hedges | Marketable Securities | Other | Total | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | (279.8) | $ | (46.5) | $ | (2.2) | $ | — | $ | (1.1) | $ | (329.6) | ||||||||||||||||||||||||||||||||
Other comprehensive (loss) income before
reclassifications |
(0.2) | — | 5.5 | (0.2) | — | 5.1 | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other
comprehensive loss |
— | 0.6 | — | — | — | 0.6 | ||||||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss)
income
|
(0.2) | 0.6 | 5.5 | (0.2) | — | 5.7 | ||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | (280.0) | $ | (45.9) | $ | 3.3 | $ | (0.2) | $ | (1.1) | $ | (323.9) |
(Dollars in millions) | Foreign Exchange Translation Adjustments | Pension and Liability Adjustments | Derivatives and Hedges | Marketable Securities | Other | Total | |||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | (335.1) | $ | (47.5) | $ | (2.6) | $ | — | $ | (1.1) | $ | (386.3) | |||||||||||||||||||||||
Other comprehensive income (loss) before
reclassifications |
55.1 | — | 5.9 | (0.2) | — | 60.8 | |||||||||||||||||||||||||||||
Amounts reclassified from accumulated other
comprehensive loss |
— | 1.6 | — | — | — | 1.6 | |||||||||||||||||||||||||||||
Net current period other comprehensive income
(loss) |
55.1 | 1.6 | 5.9 | (0.2) | — | 62.4 | |||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | (280.0) | $ | (45.9) | $ | 3.3 | $ | (0.2) | $ | (1.1) | $ | (323.9) |
(Dollars in millions) |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
|||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Biologics | $ | 543.7 | $ | 250.0 | $ | 1,324.7 | $ | 663.8 | |||||||||||||||
Softgel and Oral Technologies | 243.7 | 242.3 | 711.4 | 770.8 | |||||||||||||||||||
Oral and Specialty Delivery | 171.7 | 181.4 | 499.9 | 457.2 | |||||||||||||||||||
Clinical Supply Services | 100.0 | 88.9 | 286.2 | 261.4 | |||||||||||||||||||
Inter-segment revenue elimination | (5.8) | (2.0) | (12.4) | (6.5) | |||||||||||||||||||
Total net revenue | $ | 1,053.3 | $ | 760.6 | $ | 2,809.8 | $ | 2,146.7 |
(Dollars in millions) |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
|||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Segment EBITDA reconciled to net earnings: | |||||||||||||||||||||||
Biologics | $ | 179.9 | $ | 51.9 | $ | 421.9 | $ | 150.7 | |||||||||||||||
Softgel and Oral Technologies | 59.6 | 60.1 | 143.0 | 171.0 | |||||||||||||||||||
Oral and Specialty Delivery | 30.7 | 56.2 | 96.3 | 117.0 | |||||||||||||||||||
Clinical Supply Services | 27.1 | 24.6 | 77.4 | 70.2 | |||||||||||||||||||
Sub-Total | $ | 297.3 | $ | 192.8 | $ | 738.6 | $ | 508.9 | |||||||||||||||
Reconciling items to net earnings | |||||||||||||||||||||||
Unallocated costs (1)
|
122.6 | (63.9) | 49.0 | (134.6) | |||||||||||||||||||
Depreciation and amortization | (75.9) | (64.8) | (216.0) | (187.3) | |||||||||||||||||||
Interest expense, net | (26.9) | (34.4) | (78.1) | (105.6) | |||||||||||||||||||
Income tax expense | (85.3) | (8.8) | $ | (90.9) | (14.9) | ||||||||||||||||||
Net earnings | $ | 231.8 | $ | 20.9 | $ | 402.6 | $ | 66.5 |
Three Months Ended
March 31, |
Nine Months Ended
March 31, |
||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Impairment charges and gain (loss) on sale of assets | $ | (5.3) | $ | (0.6) | $ | (7.7) | $ | (1.0) | |||||||||||||||
Stock-based compensation | (8.4) | (8.6) | (38.5) | (35.5) | |||||||||||||||||||
Restructuring and other special items (a)
|
(3.3) | (8.9) | (22.9) | (28.6) | |||||||||||||||||||
Gain (loss) on sale of subsidiary (b)
|
184.0 | — | 184.0 | (1.1) | |||||||||||||||||||
Other expense, net (c)
|
(24.6) | (36.7) | (5.1) | (37.2) | |||||||||||||||||||
Unallocated corporate costs, net | (19.8) | (9.1) | (60.8) | (31.2) | |||||||||||||||||||
Total unallocated costs | $ | 122.6 | $ | (63.9) | $ | 49.0 | $ | (134.6) |
(Dollars in millions) |
March 31,
2021 |
June 30,
2020 |
|||||||||
Assets: | |||||||||||
Biologics | $ | 4,678.4 | $ | 3,775.0 | |||||||
Softgel and Oral Technologies | 1,539.3 | 1,501.8 | |||||||||
Oral and Specialty Delivery | 1,217.2 | 1,247.4 | |||||||||
Clinical Supply Services | 470.9 | 451.2 | |||||||||
Corporate and eliminations | 863.3 | 801.1 | |||||||||
Total assets | $ | 8,769.1 | $ | 7,776.5 |
(Dollars in millions) |
March 31,
2021 |
June 30,
2020 |
|||||||||
Raw materials and supplies | $ | 376.6 | $ | 222.6 | |||||||
Work-in-process | 204.6 | 123.2 | |||||||||
Total inventories, gross | 581.2 | 345.8 | |||||||||
Inventory cost adjustment | (53.3) | (22.0) | |||||||||
Total inventories | $ | 527.9 | $ | 323.8 |
(Dollars in millions) |
March 31,
2021 |
June 30,
2020 |
|||||||||
Prepaid expenses | $ | 46.6 | $ | 28.6 | |||||||
Contract assets | 177.4 | 61.4 | |||||||||
Spare parts supplies | 27.2 | 23.1 | |||||||||
Prepaid income tax | 20.6 | 15.0 | |||||||||
Non-U.S. value-added tax | 40.0 | 19.0 | |||||||||
Other current assets | 37.1 | 30.8 | |||||||||
Total prepaid expenses and other | $ | 348.9 | $ | 177.9 |
(Dollars in millions) |
March 31,
2021 |
June 30,
2020 |
|||||||||
Land, buildings, and improvements | $ | 1,362.1 | $ | 1,250.9 | |||||||
Machinery and equipment | 1,380.4 | 1,233.6 | |||||||||
Furniture and fixtures | 22.9 | 20.9 | |||||||||
Construction in progress | 715.0 | 440.0 | |||||||||
Property, plant, and equipment, at cost | 3,480.4 | 2,945.4 | |||||||||
Accumulated depreciation | (1,121.6) | (1,044.6) | |||||||||
Property, plant, and equipment, net | $ | 2,358.8 | $ | 1,900.8 |
(Dollars in millions) |
March 31,
2021 |
June 30,
2020 |
|||||||||
Accrued employee-related expenses | $ | 175.4 | $ | 140.8 | |||||||
Operating lease liabilities | 14.5 | 14.6 | |||||||||
Restructuring accrual | 5.6 | 2.8 | |||||||||
Accrued interest | 9.9 | 29.1 | |||||||||
Contract liability | 289.0 | 191.0 | |||||||||
Accrued income tax | 59.9 | 4.5 | |||||||||
Other | 145.6 | 116.5 | |||||||||
Total other accrued liabilities | $ | 699.9 | $ | 499.3 |
(Dollars in millions) |
March 31,
2021 |
June 30,
2020 |
|||||||||
Operating lease right-of-use assets | $ | 83.6 | $ | 101.4 | |||||||
Note receivable | 47.4 | — | |||||||||
Pension assets | 43.7 | 32.1 | |||||||||
Corporate-owned life insurance policies | 30.9 | 22.9 | |||||||||
Interest rate swap | 6.3 | — | |||||||||
Other | 30.0 | 17.6 | |||||||||
Total other long-term assets | $ | 241.9 | $ | 174.0 |
Three Months Ended
March 31, |
FX Impact | Constant Currency Increase/(Decrease) | |||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | Change $ | Change % | |||||||||||||||||||||||||
Net revenue | $ | 1,053.3 | $ | 760.6 | $ | 26.6 | $ | 266.1 | 35 | % | |||||||||||||||||||
Cost of sales | 687.7 | 521.8 | 16.7 | 149.2 | 29 | % | |||||||||||||||||||||||
Gross margin | 365.6 | 238.8 | 9.9 | 116.9 | 49 | % | |||||||||||||||||||||||
Selling, general, and administrative expenses | 172.7 | 136.1 | 2.3 | 34.3 | 25 | % | |||||||||||||||||||||||
Impairment charges and (gain) loss on sale of assets | 5.3 | 0.6 | 0.1 | 4.6 | 767 | % | |||||||||||||||||||||||
Restructuring and other costs | 3.0 | 1.3 | — | 1.7 | 131 | % | |||||||||||||||||||||||
Gain on sale of subsidiary | (184.0) | — | — | (184.0) | * | ||||||||||||||||||||||||
Operating earnings | 368.6 | 100.8 | 7.5 | 260.3 | 258 | % | |||||||||||||||||||||||
Interest expense, net | 26.9 | 34.4 | 0.5 | (8.0) | (23) | % | |||||||||||||||||||||||
Other expense, net | 24.6 | 36.7 | 1.8 | (13.9) | (38) | % | |||||||||||||||||||||||
Earnings before income taxes | 317.1 | 29.7 | 5.2 | 282.2 | 950 | % | |||||||||||||||||||||||
Income tax expense | 85.3 | 8.8 | 0.4 | 76.1 | 865 | % | |||||||||||||||||||||||
Net earnings | $ | 231.8 | $ | 20.9 | $ | 4.8 | $ | 206.1 | 986 | % | |||||||||||||||||||
2021 vs. 2020 | |||||
Year-Over-Year Change | Three Months Ended March 31, | ||||
Net Revenue | |||||
Organic | 35 | % | |||
Constant currency change | 35 | % | |||
Foreign currency translation impact on reporting | 3 | % | |||
Total % change | 38 | % |
Three Months Ended
March 31, |
FX Impact | Constant Currency Increase/(Decrease) | |||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | Change $ | Change % | |||||||||||||||||||||||||
Biologics | |||||||||||||||||||||||||||||
Net revenue | $ | 543.7 | $ | 250.0 | $ | 10.2 | $ | 283.5 | 113 | % | |||||||||||||||||||
Segment EBITDA | 179.9 | 51.9 | 4.3 | 123.7 | 238 | % | |||||||||||||||||||||||
Softgel and Oral Technologies | |||||||||||||||||||||||||||||
Net revenue | 243.7 | 242.3 | 7.4 | (6.0) | (2) | % | |||||||||||||||||||||||
Segment EBITDA | 59.6 | 60.1 | 1.3 | (1.8) | (3) | % | |||||||||||||||||||||||
Oral and Specialty Delivery | |||||||||||||||||||||||||||||
Net revenue | 171.7 | 181.4 | 5.9 | (15.6) | (9) | % | |||||||||||||||||||||||
Segment EBITDA | 30.7 | 56.2 | 2.3 | (27.8) | (49) | % | |||||||||||||||||||||||
Clinical Supply Services | |||||||||||||||||||||||||||||
Net revenue | 100.0 | 88.9 | 3.1 | 8.0 | 9 | % | |||||||||||||||||||||||
Segment EBITDA | 27.1 | 24.6 | 1.4 | 1.1 | 4 | % | |||||||||||||||||||||||
Inter-segment revenue elimination | (5.8) | (2.0) | — | (3.8) | (190) | % | |||||||||||||||||||||||
Unallocated Costs (1)
|
122.6 | (63.9) | (2.0) | 188.5 | 295 | % | |||||||||||||||||||||||
Combined totals | |||||||||||||||||||||||||||||
Net revenue | $ | 1,053.3 | $ | 760.6 | $ | 26.6 | $ | 266.1 | 35 | % | |||||||||||||||||||
EBITDA from operations | $ | 419.9 | $ | 128.9 | $ | 7.3 | $ | 283.7 | 220 | % |
Three Months Ended
March 31, |
|||||||||||
(Dollars in millions) | 2021 | 2020 | |||||||||
Impairment charges and gain (loss) on sale of assets | $ | (5.3) | $ | (0.6) | |||||||
Stock-based compensation | (8.4) | (8.6) | |||||||||
Restructuring and other special items (a)
|
(3.3) | (8.9) | |||||||||
Gain on sale of subsidiary (b)
|
184.0 | — | |||||||||
Other expense, net (c)
|
(24.6) | (36.7) | |||||||||
Unallocated corporate costs, net | (19.8) | (9.1) | |||||||||
Total unallocated costs | $ | 122.6 | $ | (63.9) |
Three Months Ended
March 31, |
|||||||||||
(Dollars in millions) | 2021 | 2020 | |||||||||
Net earnings | $ | 231.8 | $ | 20.9 | |||||||
Depreciation and amortization | 75.9 | 64.8 | |||||||||
Interest expense, net | 26.9 | 34.4 | |||||||||
Income tax expense | 85.3 | 8.8 | |||||||||
EBITDA from operations | $ | 419.9 | $ | 128.9 |
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Three Months Ended
March 31, |
||||||||||
Net Revenue | Segment EBITDA | ||||||||||
Organic | 113 | % | 239 | % | |||||||
Impact of acquisitions | — | % | (1) | % | |||||||
Constant currency change | 113 | % | 238 | % | |||||||
Foreign exchange fluctuation | 4 | % | 9 | % | |||||||
Total % change | 117 | % | 247 | % |
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Three Months Ended
March 31, |
||||||||||
Net Revenue | Segment EBITDA | ||||||||||
Organic | (2) | % | (3) | % | |||||||
Constant currency change | (2) | % | (3) | % | |||||||
Foreign currency translation impact on reporting | 3 | % | 2 | % | |||||||
Total % change | 1 | % | (1) | % |
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Three Months Ended
March 31, |
||||||||||
Net Revenue | Segment EBITDA | ||||||||||
Organic | (10) | % | (48) | % | |||||||
Impact of acquisitions | 1 | % | (1) | % | |||||||
Constant currency change | (9) | % | (49) | % | |||||||
Foreign currency translation impact on reporting | 4 | % | 4 | % | |||||||
Total % change | (5) | % | (45) | % |
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Three Months Ended
March 31, |
||||||||||
Net Revenue | Segment EBITDA | ||||||||||
Organic | 9 | % | 4 | % | |||||||
Constant currency change | 9 | % | 4 | % | |||||||
Foreign currency translation impact on reporting | 3 | % | 6 | % | |||||||
Total % change | 12 | % | 10 | % |
Nine Months Ended
March 31, |
FX Impact | Constant Currency Increase/(Decrease) | |||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | Change $ | Change % | |||||||||||||||||||||||||
Net revenue | $ | 2,809.8 | $ | 2,146.7 | $ | 54.2 | $ | 608.9 | 28 | % | |||||||||||||||||||
Cost of sales | 1,897.1 | 1,498.0 | 33.4 | 365.7 | 24 | % | |||||||||||||||||||||||
Gross margin | 912.7 | 648.7 | 20.8 | 243.2 | 37 | % | |||||||||||||||||||||||
Selling, general, and administrative expenses | 502.9 | 419.9 | 4.8 | 78.2 | 19 | % | |||||||||||||||||||||||
Impairment charges and (gain) loss on sale of assets | 7.7 | 1.0 | 0.1 | 6.6 | 660 | % | |||||||||||||||||||||||
Restructuring and other costs | 9.4 | 2.5 | 0.1 | 6.8 | 272 | % | |||||||||||||||||||||||
(Gain) loss on sale of subsidiary | (184.0) | 1.1 | — | (185.1) | * | ||||||||||||||||||||||||
Operating earnings | 576.7 | 224.2 | 15.8 | 336.7 | 150 | % | |||||||||||||||||||||||
Interest expense, net | 78.1 | 105.6 | 0.9 | (28.4) | (27) | % | |||||||||||||||||||||||
Other expense, net | 5.1 | 37.2 | 5.1 | (37.2) | * | ||||||||||||||||||||||||
Earnings before income taxes | 493.5 | 81.4 | 9.8 | 402.3 | 494 | % | |||||||||||||||||||||||
Income tax expense | 90.9 | 14.9 | 1.0 | 75.0 | 503 | % | |||||||||||||||||||||||
Net earnings | $ | 402.6 | $ | 66.5 | $ | 8.8 | $ | 327.3 | 492 | % | |||||||||||||||||||
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Nine Months Ended
March 31, |
||||||||||
Net Revenue | |||||||||||
Organic | 24 | % | |||||||||
Impact of acquisitions | 5 | % | |||||||||
Impact of divestitures | (1) | % | |||||||||
Constant currency change | 28 | % | |||||||||
Foreign currency translation impact on reporting | 3 | % | |||||||||
Total % change | 31 | % |
Nine Months Ended
March 31, |
FX Impact | Constant Currency Increase/(Decrease) | |||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | Change $ | Change % | |||||||||||||||||||||||||
Biologics | |||||||||||||||||||||||||||||
Net revenue | $ | 1,324.7 | $ | 663.8 | $ | 21.4 | $ | 639.5 | 96 | % | |||||||||||||||||||
Segment EBITDA | 421.9 | 150.7 | 9.4 | 261.8 | 174 | % | |||||||||||||||||||||||
Softgel and Oral Technologies | |||||||||||||||||||||||||||||
Net revenue | 711.4 | 770.8 | 14.6 | $ | (74.0) | (10) | % | ||||||||||||||||||||||
Segment EBITDA | 143.0 | 171.0 | 3.1 | $ | (31.1) | (18) | % | ||||||||||||||||||||||
Oral and Specialty Delivery | |||||||||||||||||||||||||||||
Net revenue | 499.9 | 457.2 | 11.5 | 31.2 | 7 | % | |||||||||||||||||||||||
Segment EBITDA | 96.3 | 117.0 | 4.3 | (25.0) | (21) | % | |||||||||||||||||||||||
Clinical Supply Services | |||||||||||||||||||||||||||||
Net revenue | 286.2 | 261.4 | 6.7 | 18.1 | 7 | % | |||||||||||||||||||||||
Segment EBITDA | 77.4 | 70.2 | 3.0 | 4.2 | 6 | % | |||||||||||||||||||||||
Inter-segment revenue elimination | (12.4) | (6.5) | — | (5.9) | (91) | % | |||||||||||||||||||||||
Unallocated Costs (1)
|
49.0 | (134.6) | (5.9) | 189.5 | 141 | % | |||||||||||||||||||||||
Combined totals | |||||||||||||||||||||||||||||
Net revenue | $ | 2,809.8 | $ | 2,146.7 | $ | 54.2 | $ | 608.9 | 28 | % | |||||||||||||||||||
EBITDA from operations | $ | 787.6 | $ | 374.3 | $ | 13.9 | $ | 399.4 | 107 | % |
Nine Months Ended
March 31, |
|||||||||||
(Dollars in millions) | 2021 | 2020 | |||||||||
Impairment charges and gain (loss) on sale of assets | $ | (7.7) | $ | (1.0) | |||||||
Equity compensation | (38.5) | (35.5) | |||||||||
Restructuring and other special items (a)
|
(22.9) | (28.6) | |||||||||
Gain (loss) on sale of subsidiary (b)
|
184.0 | (1.1) | |||||||||
Other expense, net (c)
|
(5.1) | (37.2) | |||||||||
Non-allocated corporate costs, net | (60.8) | (31.2) | |||||||||
Total unallocated costs | $ | 49.0 | $ | (134.6) |
Nine Months Ended
March 31, |
|||||||||||
(Dollars in millions) | 2021 | 2020 | |||||||||
Net earnings | $ | 402.6 | $ | 66.5 | |||||||
Depreciation and amortization | 216.0 | 187.3 | |||||||||
Interest expense, net | 78.1 | 105.6 | |||||||||
Income tax expense | 90.9 | 14.9 | |||||||||
EBITDA from operations | $ | 787.6 | $ | 374.3 |
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Nine Months Ended
March 31, |
||||||||||
Net Revenue | Segment EBITDA | ||||||||||
Organic | 88 | % | 169 | % | |||||||
Impact of acquisitions | 8 | % | 5 | % | |||||||
Constant currency change | 96 | % | 174 | % | |||||||
Foreign exchange fluctuation | 3 | % | 6 | % | |||||||
Total % change | 99 | % | 180 | % | |||||||
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Nine Months Ended
March 31, |
||||||||||
Net Revenue | Segment EBITDA | ||||||||||
Organic | (8) | % | (18) | % | |||||||
Impact of divestitures | (2) | % | — | % | |||||||
Constant currency change | (10) | % | (18) | % | |||||||
Foreign exchange fluctuation | 2 | % | 2 | % | |||||||
Total % change | (8) | % | (16) | % |
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Nine Months Ended
March 31, |
||||||||||
Net Revenue | Segment EBITDA | ||||||||||
Organic | (3) | % | (35) | % | |||||||
Impact of acquisitions | 10 | % | 14 | % | |||||||
Constant currency change | 7 | % | (21) | % | |||||||
Foreign exchange fluctuation | 2 | % | 3 | % | |||||||
Total % change | 9 | % | (18) | % |
2021 vs. 2020 | |||||||||||
Year-Over-Year Change |
Nine Months Ended
March 31, |
||||||||||
Net Revenue | Segment EBITDA | ||||||||||
Organic | 7 | % | 6 | % | |||||||
Constant currency change | 7 | % | 6 | % | |||||||
Foreign exchange fluctuation | 2 | % | 4 | % | |||||||
Total % change | 9 | % | 10 | % |
Nine Months Ended
March 31, |
|||||||||||||||||
(Dollars in millions) | 2021 | 2020 | $ Change | ||||||||||||||
Net cash provided by (used in): | |||||||||||||||||
Operating activities | $ | 298.7 | $ | 267.6 | $ | 31.1 | |||||||||||
Investing activities | $ | (435.9) | $ | (664.8) | $ | 228.9 | |||||||||||
Financing activities | $ | 159.3 | $ | 670.7 | $ | (511.4) |
(Dollars in millions) | Total | Fiscal 2021 | Fiscal 2022-Fiscal 2023 | Fiscal 2024-Fiscal 2025 | Thereafter | ||||||||||||
Venture capital investment commitments (1)
|
$ | 10.7 | $ | 10.7 | $ | — | $ | — | $ | — |
Indenture, dated February 22, 2021, by and among Catalent Pharma Solutions, Inc., the subsidiary guarantors named therein, and Deutsche Bank Trust Company Americas, as trustee (incorporated by reference to exhibit 4.1 to the Company’s Current Report on Form 8-K filed on February 22, 2021). | ||||||||
Form of 3.125% Senior Notes due 2029 (included as part of Exhibit 4.1 above). | ||||||||
Amendment No. 5 to Amended and Restated Credit Agreement, dated as of February 22, 2021, by and among Catalent Pharma Solutions, Inc., PTS Intermediate Holdings LLC, JP Morgan Chase Bank, N.A., as the administrative agent, collateral agent, swing line lender, and letter of credit issuer, and the lenders and other parties thereto, which amends that certain Amended and Restated Credit Agreement, dated as of May 20, 2014 (as amended), by and among Catalent Pharma Solutions, Inc., PTS Intermediate Holdings LLC, JP Morgan Chase Bank, N.A., as the successor administrative agent, collateral agent, swing line lender, and letter of credit issuer, and the lenders and other parties thereto (incorporated by reference to exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 22, 2021). | ||||||||
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. * | ||||||||
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. * | ||||||||
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ** | ||||||||
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ** | ||||||||
101.1 | The following financial information from Catalent, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 formatted in inline XBRL: (i) Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2021 and 2020; (ii) Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended March 31, 2021 and 2020 (iii) Consolidated Balance Sheets as of March 31, 2021 and June 30, 2020; (iv) Consolidated Statement of Changes in Shareholders’ Equity as of March 31, 2021 and 2020; (v) Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2021 and 2020; and (vi) Notes to Unaudited Consolidated Financial Statements. | |||||||
104 |
The cover page of this Quarterly Report on Form 10-Q, formatted as Inline XBRL and contained in Exhibit 101.
|
* | Filed herewith | |||||||
** | Furnished herewith |
CATALENT, INC.
(Registrant)
|
||||||||||||||
Date: | May 4, 2021 | By: | /s/ Wetteny Joseph | |||||||||||
Wetteny Joseph | ||||||||||||||
Senior Vice President & Chief Financial Officer |
1 Year Catalent Chart |
1 Month Catalent Chart |
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