PharmiWeb.com - Global Pharma News & Resources
11-May-2023

Revvity Announces Financial Results for the First Quarter of 2023

  • Revenue of $675 million; (30)% reported growth; (27)% organic growth; 6% non-COVID organic growth
  • GAAP EPS of $4.50; Adjusted EPS from continuing operations of $1.01
  • Updates full year 2023 guidance
  • Authorizes new $600 million share repurchase program
  • To begin trading under new ticker “RVTY” on May 16th

WALTHAM, Mass.--(BUSINESS WIRE)--Revvity, Inc. (NYSE: PKI), today reported financial results for the first quarter ended April 2, 2023.


The Company reported GAAP earnings per share of $4.50, as compared to $1.40 in the same period a year ago. GAAP revenue for the quarter was $675 million, as compared to $963 million in the same period a year ago. GAAP operating income for the quarter was $76 million, as compared to $262 million for the same period a year ago. GAAP operating profit margin was 11.3% as a percentage of revenue, as compared to 27.2% in the same period a year ago.

Adjusted earnings per share from continuing operations for the quarter was $1.01, as compared to $2.30 in the same period a year ago. Adjusted revenue for the quarter was $675 million, as compared to $963 million in the same period a year ago. Adjusted operating income was $189 million, as compared to $393 million for the same period a year ago. Adjusted operating profit margin was 28.0% as a percentage of adjusted revenue, as compared to 40.8% in the same period a year ago.

Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.

“Revvity has tremendous potential as we enter this new phase of our company’s journey,” said Prahlad Singh, president and chief executive officer of Revvity. “Our strong first quarter results demonstrate our consistent and high level of execution and set us on a positive path as we begin this next chapter in our transformation.”

Stock Ticker Change

The Company’s stock ticker will change from PKI to RVTY with the beginning of trading on May 16, 2023. Members of the Revvity team will ring the opening bell of the New York Stock Exchange that morning to commemorate the launch of the Company’s new corporate name and brand, and to celebrate initial trading under the new stock ticker. A livestream of the ceremony can be viewed at www.nyse.com/bell with videos and photos from the day to be provided on our social media channels.

Financial Overview by Reporting Segment for the First Quarter

Life Sciences

  • First quarter 2023 revenue was $328 million, as compared to $306 million in the same period a year ago. Reported revenue increased 7% and organic revenue increased 9% as compared to the same period a year ago.
  • First quarter 2023 adjusted operating income was $129 million, as compared to $110 million in the same period a year ago.
  • First quarter 2023 adjusted operating profit margin was 39.4% as a percentage of adjusted revenue, as compared to 36.0% in the same period a year ago.

Diagnostics

  • First quarter 2023 revenue was $347 million, as compared to $657 million in the same period a year ago. Reported revenue decreased 47% and organic revenue decreased 44% as compared to the same period a year ago.
  • First quarter 2023 adjusted operating income was $74 million, as compared to $301 million in the same period a year ago.
  • First quarter 2023 adjusted operating profit margin was 21.5% as a percentage of adjusted revenue, as compared to 45.8% in the same period a year ago.

Updates Full Year 2023 Guidance

For the full year 2023, the Company now forecasts total revenue of $2.90-$2.94 billion and adjusted earnings per share of $4.85-$5.05. This guidance assumes no additional contribution from COVID related revenues.

Guidance for the full year 2023 is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items the Company excludes from these non-GAAP measures. The timing and amounts of such events and items could be material to the Company’s results prepared in accordance with GAAP.

Webcast Information

The Company will discuss its first quarter 2023 results and its outlook for business trends during a webcast on May 11, 2023, at 8:00 a.m. Eastern Time. A live audio webcast and presentation will be available on the Investors section of the Company’s website, ir.revvity.com.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.

Factors Affecting Future Performance

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities, acquisitions and divestitures. Words such as "believes," "intends," "anticipates," "plans," "expects," “estimates”, "projects," "forecasts," "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) the effect of the COVID-19 pandemic on our sales and operations; (3) fluctuations in the global economic and political environments; (4) our failure to introduce new products in a timely manner; (5) our ability to execute acquisitions and divestitures, license technologies, or to successfully integrate acquired businesses and licensed technologies into our existing business or to make them profitable, or successfully divest businesses; (6) our ability to compete effectively; (7) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (8) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (9) disruptions in the supply of raw materials and supplies; (10) our ability to retain key personnel; (11) significant disruption in our information technology systems, or cybercrime; (12) our ability to realize the full value of our intangible assets; (13) our failure to adequately protect our intellectual property; (14) the loss of any of our licenses or licensed rights; (15) the manufacture and sale of products exposing us to product liability claims; (16) our failure to maintain compliance with applicable government regulations; (17) regulatory changes; (18) our failure to comply with healthcare industry regulations; (19) economic, political and other risks associated with foreign operations; (20) our ability to obtain future financing; (21) restrictions in our credit agreements; (22) significant fluctuations in our stock price; (23) reduction or elimination of dividends on our common stock; and (24) other factors which we describe under the caption "Risk Factors" in our most recent annual report on Form 10-K and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

About Revvity

At Revvity, “impossible” is inspiration, and “can’t be done” is a call to action. Revvity provides health science solutions, technologies, expertise and services that deliver complete workflows from discovery to development, and diagnosis to cure. Revvity is revolutionizing what’s possible in healthcare, with specialized focus areas in translational multi-omics technologies, biomarker identification, imaging, prediction, screening, detection and diagnosis, informatics and more.

With more than $3 billion in revenue and over 11,000 employees, Revvity serves customers across pharmaceutical and biotech, diagnostic labs, academia and governments. It is part of the S&P 500 index and has customers in more than 190 countries.

Stay updated by following our Newsroom, LinkedIn, Twitter, YouTube, Facebook and Instagram for updates.

Revvity, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INCOME STATEMENTS
 
 

Three Months Ended

(In thousands, except per share data) April 2, 2023 April 3, 2022
 
Revenue

$

674,865

 

$

963,163

 

 
Cost of revenue

 

293,499

 

 

368,423

 

Selling, general and administrative expenses

 

248,557

 

 

275,260

 

Research and development expenses

 

56,690

 

 

57,524

 

 
Operating income from continuing operations

 

76,119

 

 

261,956

 

 
Interest income

 

(5,272

)

 

(595

)

Interest expense

 

22,738

 

 

28,388

 

Change in fair value of financial securities

 

(2,768

)

 

12,124

 

Other expense (income), net

 

31,981

 

 

(2,865

)

 
Income from continuing operations, before income taxes

 

29,440

 

 

224,904

 

 
Provision for income taxes

 

4,595

 

 

40,834

 

 
Income from continuing operations

 

24,845

 

 

184,070

 

 
Income (loss) from discontinued operations

 

544,630

 

 

(7,108

)

 
Net income

$

569,475

 

$

176,962

 

 
 
Diluted earnings per share:
Income from continuing operations

$

0.20

 

$

1.45

 

 
Income (loss) from discontinued operations

 

4.31

 

 

(0.06

)

 
Net income

$

4.50

 

$

1.40

 

 
Weighted average diluted shares of common stock outstanding

 

126,469

 

 

126,635

 

 
ABOVE PREPARED IN ACCORDANCE WITH GAAP
 
Additional supplemental information (1):
(per share, continuing operations)
 
GAAP EPS from continuing operations

$

0.20

 

$

1.45

 

Amortization of intangible assets

 

0.73

 

 

0.75

 

Debt extinguishment costs

 

(0.03

)

 

0.00

 

Purchase accounting adjustments

 

(0.01

)

 

0.14

 

Acquisition and divestiture-related costs

 

0.35

 

 

0.07

 

Change in fair value of financial securities

 

(0.02

)

 

0.10

 

Significant litigation matters and settlements

 

-

 

 

0.00

 

Significant environmental matters

 

0.01

 

 

-

 

Restructuring and other, net

 

0.02

 

 

0.07

 

Tax on above items

 

(0.23

)

 

(0.28

)

Significant tax items

 

(0.01

)

 

-

 

Adjusted EPS from continuing operations

$

1.01

 

$ 

2.30

 

 
(1) amounts may not sum due to rounding
Revvity, Inc. and Subsidiaries
REVENUE AND OPERATING INCOME (LOSS)
 
 
Three Months Ended
(In thousands, except percentages) April 2, 2023 April 3, 2022
 
Adjusted revenue and operating income
 
Reported revenue

$

674,865

 

$

963,163

 

Revenue purchase accounting adjustments

 

206

 

 

203

 

Adjusted revenue

 

675,071

 

 

963,366

 

 
Reported operating income from continued operations

 

76,119

 

 

261,956

 

OP%

 

11.3

%

 

27.2

%

Amortization of intangible assets

 

91,811

 

 

95,213

 

Purchase accounting adjustments

 

(914

)

 

18,004

 

Acquisition and divestiture-related costs

 

17,951

 

 

8,817

 

Significant litigation matters and settlements

 

-

 

 

425

 

Significant environmental matters

 

1,132

 

 

-

 

Restructuring and other, net

 

3,095

 

 

8,983

 

Adjusted operating income

$

189,194

 

$

393,398

 

OP%

 

28.0

%

 

40.8

%

 
Segment revenue and segment operating income
 
Life Sciences

$

328,441

 

$

306,087

 

Diagnostics

 

346,630

 

 

657,279

 

Revenue purchase accounting adjustments

 

(206

)

 

(203

)

Reported revenue

 

674,865

 

 

963,163

 

 
 
Life Sciences

 

129,459

 

 

110,181

 

 

39.4

%

 

36.0

%

Diagnostics

 

74,432

 

 

300,899

 

 

21.5

%

 

45.8

%

Corporate

 

(14,697

)

 

(17,682

)

Subtotal reportable segments operating income

 

189,194

 

 

393,398

 

 
Amortization of intangible assets

 

(91,811

)

 

(95,213

)

Purchase accounting adjustments

 

914

 

 

(18,004

)

Acquisition and divestiture-related costs

 

(17,951

)

 

(8,817

)

Significant litigation matters and settlements

 

-

 

 

(425

)

Significant environmental matters

 

(1,132

)

 

-

 

Restructuring and other, net

 

(3,095

)

 

(8,983

)

Reported operating income from continued operations

$

76,119

 

$

261,956

 

 

REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
(In thousands) April 2, 2023 January 1, 2023
 
Current assets:
Cash and cash equivalents

$

2,267,183

$

454,358

Marketable securities

 

193,963

 

-

Accounts receivable, net

 

586,922

 

612,780

Inventories, net

 

429,423

 

405,462

Other current assets

 

318,116

 

122,254

Current assets of discontinued operations

 

-

 

1,693,704

Total current assets

 

3,795,607

 

3,288,558

 
Property, plant and equipment, net

 

491,162

 

482,950

Operating lease right-of-use assets

 

167,905

 

188,351

Intangible assets, net

 

3,294,657

 

3,377,174

Goodwill

 

6,505,956

 

6,481,768

Other assets, net

 

382,868

 

311,054

Total assets

$

14,638,155

$

14,129,855

 
Current liabilities:
Current portion of long-term debt

$

479,423

$

470,929

Accounts payable

 

266,884

 

272,826

Accrued expenses and other current liabilities

 

817,432

 

527,863

Current liabilities of discontinued operations

 

-

 

272,865

Total current liabilities

 

1,563,739

 

1,544,483

 
Long-term debt

 

3,880,984

 

3,923,347

Long-term liabilities

 

1,010,230

 

1,109,181

Operating lease liabilities

 

149,392

 

169,968

Total liabilities

 

6,604,345

 

6,746,979

 
Total stockholders' equity

 

8,033,810

 

7,382,876

Total liabilities and stockholders' equity

$

14,638,155

$

14,129,855

 

PREPARED IN ACCORDANCE WITH GAAP

 
Revvity, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Three Months Ended
April 2, 2023 April 3, 2022
(In thousands)
Operating activities:
Net income

$

569,475

 

$

176,962

 

(Income) loss from discontinued operations, net of income taxes

 

(544,630

)

 

7,108

 

Income from continuing operations

 

24,845

 

 

184,070

 

Adjustments to reconcile income from continuing operations
to net cash provided by continuing operations:
Stock-based compensation

 

9,893

 

 

14,438

 

Restructuring and other, net

 

3,096

 

 

8,983

 

Depreciation and amortization

 

109,008

 

 

109,330

 

Change in fair value of contingent consideration

 

(1,360

)

 

693

 

Amortization of deferred debt financing costs and accretion of discounts

 

1,792

 

 

1,781

 

Change in fair value of financial securities

 

(2,768

)

 

12,125

 

Debt extinguishment (income) loss

 

(3,345

)

 

119

 

Unrealized foreign exchange loss

 

26,095

 

 

-

 

Amortization of acquired inventory revaluation

 

-

 

 

16,868

 

Changes in assets and liabilities which provided (used) cash, excluding
effects from companies acquired:
Accounts receivable, net

 

34,424

 

 

77,398

 

Inventories

 

(18,520

)

 

(20,943

)

Accounts payable

 

(4,895

)

 

26,739

 

Accrued expenses and other

 

(106,591

)

 

(105,480

)

Net cash provided by operating activities of continuing operations

 

71,674

 

 

326,121

 

Net cash used in operating activities of discontinued operations

 

(8,211

)

 

(42,906

)

Net cash provided by operating activities

 

63,463

 

 

283,215

 

 
Investing activities:
Capital expenditures

 

(20,946

)

 

(26,969

)

Purchases of investments

 

-

 

 

(18,000

)

Purchases of marketable securities

 

(193,454

)

 

-

 

Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired

 

(686

)

 

(3,630

)

Net cash used in investing activities of continuing operations

 

(215,086

)

 

(48,599

)

Net cash provided by (used in) investing activities of discontinued operations

 

2,079,588

 

 

(7,707

)

Net cash provided by (used in) investing activities

 

1,864,502

 

 

(56,306

)

 
Financing Activities:
Payments on borrowings

 

-

 

 

(220,000

)

Proceeds from borrowings

 

-

 

 

220,000

 

Payments of term loan

 

-

 

 

(100,000

)

Payments of senior debt

 

(49,603

)

 

-

 

Settlement of cash flow hedges

 

-

 

 

(762

)

Net proceeds (payments) on other credit facilities

 

7,867

 

 

(1,064

)

Payments for acquisition-related contingent consideration

 

(1,475

)

 

-

 

Proceeds from issuance of common stock under stock plans

 

523

 

 

1,397

 

Purchases of common stock

 

(61,656

)

 

(55,592

)

Dividends paid

 

(8,841

)

 

(8,837

)

Net cash used in financing activities

 

(113,185

)

 

(164,858

)

 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(16,969

)

 

(10,636

)

 
Net increase in cash, cash equivalents, and restricted cash

 

1,797,811

 

 

51,415

 

Cash, cash equivalents, and restricted cash at beginning of period

 

470,746

 

 

619,337

 

Cash, cash equivalents, and restricted cash at end of period

$

2,268,557

 

$

670,752

 

 
 
Supplemental disclosure of cash flow information:
Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows:
Cash and cash equivalents

$

2,267,183

 

$

654,756

 

Restricted cash included in other current assets

 

1,019

 

 

997

 

Restricted cash included in other assets

 

355

 

 

-

 

Cash and cash equivalents included in current assets of discontinued operations

 

-

 

 

14,999

 

Total cash, cash equivalents and restricted cash

$

2,268,557

 

$

670,752

 

 

PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
 
 
Revvity
Three Months Ended
April 2, 2023
Organic revenue growth:
Reported revenue growth from continuing operations

-30%

Less: effect of foreign exchange rates

-3%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

0%

Organic revenue growth from continuing operations

-27%

Less: effect of COVID products

-33%

Non-COVID organic revenue growth from continuing operations

6%

 
 
Life Sciences
Three Months Ended
April 2, 2023
Organic revenue growth:
Reported revenue growth from continuing operations

7%

Less: effect of foreign exchange rates

-2%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

0%

Organic revenue growth from continuing operations

9%

 
 
Diagnostics
Three Months Ended
April 2, 2023
Organic revenue growth:
Reported revenue growth from continuing operations

-47%

Less: effect of foreign exchange rates

-3%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

0%

Organic revenue growth from continuing operations

-44%

Less: effect of COVID products

-47%

Non-COVID organic revenue growth from continuing operations

3%

 
(1) amounts may not sum due to rounding

Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

We use the term “adjusted revenue” to refer to GAAP revenue, including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term “adjusted revenue growth” to refer to the measure of comparing current period adjusted revenue with the corresponding period of the prior year.

We use the term “organic revenue” to refer to GAAP revenue, excluding the effect of foreign currency changes and revenue from recent acquisitions and divestitures and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term “organic revenue growth” to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year. We use the related term “non-COVID organic revenue growth” to refer to the measure of comparing current period organic revenue excluding revenue from COVID related products and services with the corresponding period of the prior year excluding revenue from COVID related products and services.

We use the term “adjusted gross margin” to refer to GAAP gross margin, excluding amortization of intangible assets and inventory fair value adjustments related to business acquisitions, asset impairments, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to business combination accounting rules. We use the related term “adjusted gross margin percentage” to refer to adjusted gross margin as a percentage of adjusted revenue.

We use the term “adjusted SG&A expense” to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and settlements, asset impairments, and significant environmental charges. We use the related term “adjusted SG&A percentage” to refer to adjusted SG&A expense as a percentage of adjusted revenue.

We use the term “adjusted R&D expense” to refer to GAAP R&D expense, excluding amortization of intangible assets and purchase accounting adjustments. We use the related term “adjusted R&D percentage” to refer to adjusted R&D expense as a percentage of adjusted revenue.

We use the term “adjusted net interest and other expense” to refer to GAAP net interest and other expense, excluding adjustments for mark-to-market accounting on post-retirement benefits, changes in foreign exchange associated with acquisitions and divestitures, changes in the value of financial securities and debt extinguishment costs.

We use the term “adjusted operating income,” to refer to GAAP operating income, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding amortization of intangible assets, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and settlements, significant environmental charges, asset impairments, and restructuring and other charges. We use the related terms “adjusted operating profit percentage,” “adjusted operating profit margin,” or “adjusted operating margin” to refer to adjusted operating income as a percentage of adjusted revenue.

We use the term “adjusted earnings per share,” or “adjusted EPS,” to refer to GAAP earnings per share, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding discontinued operations, amortization of intangible assets, debt extinguishment costs, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and settlements, significant environmental charges, changes in the value of financial securities, disposition of businesses and assets, net, changes in foreign exchange associated with acquisitions and divestitures, asset impairments and restructuring and other charges.


Contacts

Investor Relations:
Steve Willoughby (781) 663-5677
steve.willoughby@revvity.com

Media Contact:
Fara Goldberg (781) 663-5699
fara.goldberg@revvity.com


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Last Updated: 11-May-2023