BURLINGTON, Mass., Nov. 13, 2023 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the fourth quarter and fiscal year ended September 30, 2023.
Quarter Ended | Year Ended | ||||||||||||||||||
Dollars in millions, except per share data | September 30, | September 30, | September 30, | September 30, | |||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
Revenue from Continuing Operations | $ | 172 | $ | 138 | 25 | % | $ | 665 | $ | 555 | 20 | % | |||||||
Organic growth | 2 | % | (1) | % | |||||||||||||||
Life Sciences Products | $ | 82 | $ | 48 | 70 | % | $ | 305 | $ | 199 | 53 | % | |||||||
Life Sciences Services | $ | 90 | $ | 89 | 1 | % | $ | 360 | $ | 356 | 1 | % | |||||||
Diluted EPS Continuing Operations | $ | 0.05 | $ | (0.07) | 166 | % | $ | (0.19) | $ | (0.15) | (29) | % | |||||||
Diluted EPS Total | $ | 0.06 | $ | (0.28) | 120 | % | $ | (0.22) | $ | 28.48 | (101) | % | |||||||
Non-GAAP Diluted EPS Continuing Operations | $ | 0.13 | $ | 0.16 | (19) | % | $ | 0.31 | $ | 0.51 | (39) | % | |||||||
Adjusted EBITDA Continuing Operations | $ | 8 | $ | 9 | (16) | % | $ | 30 | $ | 62 | (51) | % | |||||||
Management Comments
"We ended fiscal 2023 strong, delivering an impressive fourth quarter result amidst a still-challenging macroeconomic backdrop," stated Steve Schwartz, President and CEO. "We are proud of the progress that we have made in the second half of fiscal 2023 and intend to carry those initiatives into the next fiscal year. Our cost reduction programs are on track and our strategic investments in the sales force are showing early benefits. The momentum we're seeing across the business gives us confidence in our outlook for fiscal 2024, where we expect to achieve organic revenue growth of 5 to 8% coupled with continued margin expansion and positive free cash flow."
"Today we are also pleased to announce plans to repurchase an additional $500 million in fiscal 2024 under our existing share repurchase program. This initiative underscores our focus on driving long-term value for shareholders through disciplined capital deployment. We have a strong balance sheet position, and, even after this additional repurchase of shares, we will have ample liquidity, including roughly $500 million of cash available to be prudently allocated to enhance shareholder value, including continued strategic investment in our unique end-to-end sample management portfolio."
Fourth Quarter Fiscal 2023 Results
Summary of GAAP Earnings Results
Summary of Non-GAAP Earnings Results
Full Year Fiscal 2023 Results
Summary of GAAP Results
Summary of Non-GAAP Results
Cash and Liquidity as of September 30, 2023
Share Repurchase Program Update
Guidance for Continuing Operations for Full Year Fiscal 2024
The Company announced guidance for Fiscal 2024.
Conference Call and Webcast
Azenta management will webcast its fourth quarter and full year fiscal 2023 earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.
The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events and will be archived online on this website for convenient on-demand replay. In addition, you may call 800- 757-9216 (US & Canada only) or +1-212-231-2939 for international callers to listen to the live webcast.
Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.
"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta's financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Other forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to realize margin improvement from cost reductions, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following: our ability to reduce costs effectively, the impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions; our ability to successfully invest the cash proceeds from the sale of our Semiconductor Automation business; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.
About Azenta Life Sciences
Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, Barkey and B Medical Systems.
Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe and Asia. For more information, please visit www.azenta.com.
AZENTA INVESTOR CONTACTS:
Sara Silverman
Head of Investor Relations & Corporate Communications
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Sherry Dinsmore
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AZENTA, INC. | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
(unaudited) | |||||||||||||
(In thousands, except per share data) | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Revenue | |||||||||||||
Products | $ | 72,180 | $ | 42,944 | $ | 277,191 | $ | 180,950 | |||||
Services | 100,177 | 94,624 | 387,881 | 374,548 | |||||||||
Total revenue | 172,357 | 137,568 | 665,072 | 555,498 | |||||||||
Cost of revenue | |||||||||||||
Products | 49,235 | 26,478 | 186,090 | 100,044 | |||||||||
Services | 55,088 | 52,973 | 215,842 | 199,870 | |||||||||
Total cost of revenue | 104,323 | 79,451 | 401,932 | 299,914 | |||||||||
Gross profit | 68,034 | 58,117 | 263,140 | 255,584 | |||||||||
Operating expenses | |||||||||||||
Research and development | 8,932 | 7,647 | 33,956 | 27,542 | |||||||||
Selling, general and administrative | 74,926 | 64,704 | 316,282 | 251,465 | |||||||||
Contingent consideration - fair value adjustments | — | — | (18,549) | 600 | |||||||||
Restructuring charges | 804 | 393 | 4,577 | 712 | |||||||||
Total operating expenses | 84,662 | 72,744 | 336,266 | 280,319 | |||||||||
Operating loss | (16,628) | (14,627) | (73,126) | (24,735) | |||||||||
Other income (expense) | |||||||||||||
Interest income | 11,329 | 10,353 | 43,735 | 20,286 | |||||||||
Interest expense | — | (478) | — | (4,589) | |||||||||
Loss on extinguishment of debt | — | — | — | (632) | |||||||||
Other, net | (338) | 1,352 | (1,042) | (266) | |||||||||
Loss before income taxes | (5,637) | (3,400) | (30,433) | (9,936) | |||||||||
Income tax (benefit) expense | (8,443) | 1,910 | (17,550) | 1,350 | |||||||||
Income (loss) from continuing operations | 2,806 | (5,310) | (12,883) | (11,286) | |||||||||
Income (loss) from discontinued operations, net of tax | 569 | (15,454) | (1,374) | 2,144,145 | |||||||||
Net income (loss) | $ | 3,375 | $ | (20,764) | $ | (14,257) | $ | 2,132,859 | |||||
Basic net income (loss) per share: | |||||||||||||
Income (loss) from continuing operations | $ | 0.05 | $ | (0.07) | $ | (0.19) | $ | (0.15) | |||||
Income (loss) from discontinued operations, net of tax | 0.01 | (0.21) | (0.02) | 28.63 | |||||||||
Net income (loss) per share | $ | 0.06 | $ | (0.28) | $ | (0.22) | $ | 28.48 | |||||
Diluted net income (loss) per share: | |||||||||||||
Income (loss) from continuing operations | $ | 0.05 | $ | (0.07) | $ | (0.19) | $ | (0.15) | |||||
Income (loss) from discontinued operations, net of tax | 0.01 | (0.21) | (0.02) | 28.63 | |||||||||
Diluted net income (loss) per share | $ | 0.06 | $ | (0.28) | $ | (0.22) | $ | 28.48 | |||||
Weighted average shares used in computing net income | |||||||||||||
Basic | 59,603 | 75,010 | 66,253 | 74,897 | |||||||||
Diluted | 59,692 | 75,010 | 66,253 | 74,897 | |||||||||
AZENTA, INC. | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(unaudited) | ||||||
(In thousands, except share and per share data) | ||||||
September 30, | September 30, | |||||
2023 | 2022 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 678,910 | $ | 658,274 | ||
Short-term marketable securities | 338,873 | 911,764 | ||||
Accounts receivable, net of allowance for expected credit losses ($8,057 and | 156,535 | 163,758 | ||||
Inventories | 128,198 | 85,544 | ||||
Derivative asset | 13,036 | 124,789 | ||||
Short-term restricted cash | 4,650 | 382,596 | ||||
Prepaid expenses and other current assets | 98,754 | 132,621 | ||||
Total current assets | 1,418,956 | 2,459,346 | ||||
Property, plant and equipment, net | 205,744 | 154,470 | ||||
Long-term marketable securities | 111,338 | 352,020 | ||||
Long-term deferred tax assets | 571 | 1,169 | ||||
Goodwill | 784,339 | 513,623 | ||||
Intangible assets, net | 294,301 | 178,401 | ||||
Other assets | 70,471 | 57,093 | ||||
Total assets | $ | 2,885,720 | $ | 3,716,122 | ||
Liabilities and stockholders' equity | ||||||
Current liabilities | ||||||
Accounts payable | $ | 35,796 | $ | 38,654 | ||
Deferred revenue | 34,614 | 39,748 | ||||
Accrued warranty and retrofit costs | 10,223 | 2,890 | ||||
Accrued compensation and benefits | 33,911 | 41,898 | ||||
Accrued income taxes payable | 7,378 | 28,419 | ||||
Accrued expenses and other current liabilities | 89,006 | 78,937 | ||||
Total current liabilities | 210,928 | 230,546 | ||||
Long-term tax reserves | 380 | 1,684 | ||||
Long-term deferred tax liabilities | 67,301 | 64,555 | ||||
Long-term operating lease liabilities | 60,436 | 49,227 | ||||
Other long-term liabilities | 12,175 | 6,724 | ||||
Total liabilities | 351,220 | 352,736 | ||||
Stockholders' equity | ||||||
Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or | — | — | ||||
Common stock, $0.01 par value - 125,000,000 shares authorized, 71,294,247 | 713 | 885 | ||||
Additional paid-in capital | 1,156,160 | 1,992,017 | ||||
Accumulated other comprehensive income (loss) | (62,426) | (83,916) | ||||
Treasury stock, at cost - 13,461,869 shares at September 30, 2023 and September | (200,956) | (200,956) | ||||
Retained earnings | 1,641,009 | 1,655,356 | ||||
Total stockholders' equity | 2,534,500 | 3,363,386 | ||||
Total liabilities and stockholders' equity | $ | 2,885,720 | $ | 3,716,122 | ||
AZENTA, INC. | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(unaudited) | ||||||
(In thousands) | ||||||
Year Ended | ||||||
September 30, | ||||||
2023 | 2022 | |||||
Cash flows from operating activities | ||||||
Net income (loss) | $ | (14,257) | $ | 2,132,859 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization | 85,584 | 53,702 | ||||
Stock-based compensation | 9,376 | 10,666 | ||||
Contingent consideration adjustment | (18,549) | 600 | ||||
Amortization and accretion on marketable securities | (7,870) | (1,894) | ||||
Deferred income taxes | (28,236) | 24,469 | ||||
Loss on extinguishment of debt | — | 632 | ||||
Purchase accounting impact on inventory | 9,664 | — | ||||
(Gain) loss on disposals of property, plant and equipment | 43 | (21) | ||||
(Gain) loss on divestiture, net of tax | — | (2,130,265) | ||||
Fees paid stemming from divestiture | — | (52,461) | ||||
Taxes paid stemming from divestiture | — | (431,600) | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 33,992 | (31,397) | ||||
Inventories | 5,771 | (66,629) | ||||
Accounts payable | (14,710) | (3,926) | ||||
Deferred revenue | (7,564) | 16,599 | ||||
Accrued warranty and retrofit costs | 5,604 | 303 | ||||
Accrued compensation and tax withholdings | (15,434) | 11,404 | ||||
Other current assets and liabilities | (25,924) | 1,513 | ||||
Net cash provided by (used in) operating activities | 17,490 | (466,046) | ||||
Cash flows from investing activities | ||||||
Purchases of property, plant and equipment | (39,436) | (73,435) | ||||
Purchases of technology intangibles | — | (4,000) | ||||
Purchases of marketable securities | (236,194) | (1,975,599) | ||||
Sales and maturities of marketable securities | 1,064,209 | 705,384 | ||||
Proceeds from divestiture, net of cash transferred | — | 2,939,116 | ||||
Net Investment hedge settlement | 29,313 | — | ||||
Acquisitions, net of cash acquired | (386,508) | (125,876) | ||||
Net cash provided by (used in) investing activities | 431,384 | 1,465,590 | ||||
Cash flows from financing activities | ||||||
Proceeds from issuance of common stock | — | 5,245 | ||||
Principal payments on debt | — | (49,725) | ||||
Payments of finance leases | (578) | (388) | ||||
Payment for contingent consideration related to acquisition | — | (10,400) | ||||
Withholding tax payments on net share settlements on equity awards | (4,988) | — | ||||
Stock repurchase | (838,514) | — | ||||
Common stock dividends | — | (7,494) | ||||
Net cash used in financing activities | (844,080) | (62,762) | ||||
Effects of exchange rate changes on cash and cash equivalents | 37,955 | (180,819) | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (357,251) | 755,963 | ||||
Cash, cash equivalents and restricted cash, beginning of period | 1,041,296 | 285,333 | ||||
Cash, cash equivalents and restricted cash, end of period | $ | 684,045 | $ | 1,041,296 | ||
Supplemental disclosures: | ||||||
Cash paid for interest | — | 469 | ||||
Cash paid for income taxes, net | 43,073 | 452,461 | ||||
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||||||
Cash and cash equivalents of continuing operations | $ | 678,910 | $ | 658,274 | ||
Short-term restricted cash | 4,650 | 382,596 | ||||
Long-term restricted cash included in other assets | 485 | 426 | ||||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ | 684,045 | $ | 1,041,296 | ||
Notes on Non-GAAP Financial Measures
Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.
Quarter Ended | |||||||||||||||||||
September 30, 2023 | June 30, 2023 | September 30, 2022 | |||||||||||||||||
per diluted | per diluted | per diluted | |||||||||||||||||
Amounts in thousands, except per share data | $ | share | $ | share | $ | share | |||||||||||||
Net income (loss) from continuing operations | $ | 2,806 | $ | 0.05 | $ | (2,463) | $ | (0.04) | $ | (5,310) | $ | (0.07) | |||||||
Adjustments: | |||||||||||||||||||
Amortization of completed technology | 4,769 | 0.08 | 4,656 | 0.07 | 1,901 | 0.03 | |||||||||||||
Purchase accounting impact on inventory | 927 | 0.02 | 2,956 | 0.05 | — | — | |||||||||||||
Amortization of other intangible assets | 7,481 | 0.13 | 7,522 | 0.12 | 6,900 | 0.09 | |||||||||||||
Rebranding and transformation costs | (15) | — | 21 | — | 536 | 0.01 | |||||||||||||
Restructuring and restructuring related | 804 | 0.01 | 812 | 0.01 | 393 | 0.01 | |||||||||||||
Contingent consideration - fair value | — | — | (1,404) | (0.02) | — | — | |||||||||||||
Merger and acquisition costs and costs | 1,767 | 0.03 | 219 | — | 6,959 | 0.09 | |||||||||||||
Tax adjustments (2) | (6,691) | (0.11) | (31) | — | 2,510 | 0.03 | |||||||||||||
Tax effect of adjustments | (4,379) | (0.07) | (3,947) | (0.06) | (2,130) | (0.03) | |||||||||||||
Non-GAAP adjusted net income from | $ | 7,469 | $ | 0.13 | $ | 8,341 | $ | 0.13 | $ | 11,759 | $ | 0.16 | |||||||
Stock based compensation, pre-tax | (715) | (0.01) | 3,995 | 0.06 | (49) | — | |||||||||||||
Tax rate | 15 | % | — | 15 | % | — | 15 | % | — | ||||||||||
Stock-based compensation, net of tax | (608) | (0.01) | 3,396 | 0.05 | (42) | — | |||||||||||||
Non-GAAP adjusted net income excluding | $ | 6,861 | $ | 0.11 | $ | 11,737 | $ | 0.18 | $ | 11,717 | $ | 0.16 | |||||||
Shares used in computing non-GAAP | — | 59,692 | — | 63,432 | — | 75,010 | |||||||||||||
Year Ended | |||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||
per diluted | per diluted | ||||||||||||
Amounts in thousands, except per share data | $ | share | $ | share | |||||||||
Net loss from continuing operations | $ | (12,883) | $ | (0.19) | $ | (11,286) | $ | (0.15) | |||||
Adjustments: | |||||||||||||
Amortization of completed technology | 18,494 | 0.28 | 7,325 | 0.10 | |||||||||
Purchase accounting impact on inventory | 9,664 | 0.15 | — | — | |||||||||
Amortization of other intangible assets | 29,884 | 0.45 | 24,964 | 0.33 | |||||||||
Rebranding and transformation costs | (49) | (0.00) | 2,741 | 0.04 | |||||||||
Restructuring and restructuring related charges | 4,577 | 0.07 | 712 | 0.01 | |||||||||
Contingent consideration - fair value adjustments | (18,549) | (0.28) | — | — | |||||||||
Tariff adjustment | — | — | (484) | (0.01) | |||||||||
Merger and acquisition costs and costs related to share | 13,842 | 0.21 | 17,929 | 0.24 | |||||||||
Indemnification asset release | (19) | (0.00) | — | — | |||||||||
Loss on extinguishment of debt | — | — | 632 | 0.01 | |||||||||
Tax adjustments (2) | (8,102) | (0.12) | 5,744 | 0.08 | |||||||||
Tax effect of adjustments | (16,260) | (0.25) | (10,078) | (0.13) | |||||||||
Non-GAAP adjusted net income from continuing | $ | 20,599 | $ | 0.31 | $ | 38,199 | $ | 0.51 | |||||
Stock-based compensation, pre-tax | 9,497 | 0.14 | 12,443 | 0.17 | |||||||||
Tax rate | 15 | % | — | 15 | % | — | |||||||
Stock-based compensation, net of tax | 8,072 | 0.12 | 10,577 | 0.14 | |||||||||
Non-GAAP adjusted net income excluding stock-based | $ | 28,671 | $ | 0.43 | $ | 48,776 | $ | 0.65 | |||||
Shares used in computing non-GAAP diluted net income per share | — | 66,253 | — | 74,897 | |||||||||
(1) | Includes expenses related to governance-related matters. |
(2) | Tax adjustments during all periods include adjustments to tax benefits related to stock compensation. These adjustments are recognized in the period of vesting for US GAAP but included in the annual effective tax rate for Non-GAAP reporting. Tax adjustments for the twelve months ended September 30, 2023, included a $1.4M increase to expense related to the exclusion of a benefit from an incentive tax rate change in China. The fourth quarter 2023 tax adjustment includes the exclusion of a one-time GAAP tax benefit related to the outside basis difference of a foreign subsidiary of $6.1 million. Tax adjustments for the quarter ended September 30, 2022, include a $4.1M increase to expense related to the exclusion of allocations between continuing operations and discontinued operations. |
Quarter Ended | Year Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
GAAP net income (loss) | $ | 3,375 | $ | (1,470) | $ | (20,764) | $ | (14,257) | $ | 2,132,859 | |||||
Less: Income (loss) from discontinued operations | 569 | 993 | (15,454) | (1,374) | 2,144,145 | ||||||||||
GAAP net income (loss) from continuing operations | 2,806 | (2,463) | (5,309) | (12,883) | (11,286) | ||||||||||
Adjustments: | |||||||||||||||
Less: Interest income | (11,329) | (11,347) | (10,353) | (43,735) | (20,286) | ||||||||||
Add: Interest expense | — | — | 478 | — | 4,589 | ||||||||||
Add / Less: Income tax (benefit) expense | (8,443) | (1,207) | 1,910 | (17,550) | 1,350 | ||||||||||
Add: Depreciation | 9,891 | 9,126 | 6,087 | 37,206 | 21,864 | ||||||||||
Add: Amortization of completed technology | 4,769 | 4,656 | 1,901 | 18,494 | 7,325 | ||||||||||
Add: Amortization of other intangible assets | 7,481 | 7,522 | 6,900 | 29,884 | 24,956 | ||||||||||
Add: Loss on extinguishment of debt | — | — | — | — | 632 | ||||||||||
Earnings before interest, taxes, depreciation and | $ | 5,175 | $ | 6,287 | $ | 1,614 | $ | 11,416 | $ | 29,144 | |||||
Quarter Ended | Year Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
Earnings before interest, taxes, depreciation and | $ | 5,175 | $ | 6,287 | $ | 1,613 | $ | 11,416 | $ | 29,144 | |||||
Adjustments: | |||||||||||||||
Add: Stock-based compensation | (715) | 3,995 | (49) | 9,497 | 12,443 | ||||||||||
Add: Purchase accounting impact on inventory | 927 | 2,956 | — | 9,664 | — | ||||||||||
Add: Restructuring and restructuring related charges | 804 | 812 | 393 | 4,577 | 712 | ||||||||||
Add: Merger and acquisition costs and costs related | 1,767 | 219 | 6,959 | 13,842 | 17,929 | ||||||||||
Less: Contingent consideration - fair value adjustments | — | (1,404) | — | (18,549) | — | ||||||||||
Less: Tariff adjustment | — | — | — | — | (484) | ||||||||||
Less: Rebranding and transformation costs | (15) | 21 | 536 | (49) | 2,741 | ||||||||||
Less: Indemnification asset release | — | — | — | (19) | — | ||||||||||
Adjusted earnings before interest, taxes, depreciation | $ | 7,943 | $ | 12,886 | $ | 9,452 | $ | 30,379 | $ | 62,485 | |||||
(1) | Includes expenses related to governance-related matters. |
Quarter Ended | ||||||||||||||||||
Dollars in thousands | September 30, 2023 | June 30, 2023 | September 30, 2022 | |||||||||||||||
GAAP gross profit | $ | 68,034 | 39.5 | % | $ | 68,005 | 41.0 | % | $ | 58,117 | 42.2 | % | ||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 4,769 | 2.8 | 4,656 | 2.8 | 1,901 | 1.4 | ||||||||||||
Purchase accounting impact on inventory | 927 | 0.5 | 2,956 | 1.8 | — | — | ||||||||||||
Other adjustment | — | — | — | — | 289 | 0.2 | ||||||||||||
Non-GAAP adjusted gross profit | $ | 73,730 | 42.8 | % | $ | 75,617 | 45.6 | % | $ | 60,307 | 43.8 | % | ||||||
Year Ended | ||||||||||||
Dollars in thousands | September 30, 2023 | September 30, 2022 | ||||||||||
GAAP gross profit | $ | 263,140 | 39.6 | % | $ | 255,584 | 46.0 | % | ||||
Adjustments: | ||||||||||||
Amortization of completed technology | 18,494 | 2.8 | 7,325 | 1.3 | ||||||||
Purchase accounting impact on inventory | 9,664 | 1.4 | — | — | ||||||||
Tariff adjustment | — | — | (484) | (0.1) | ||||||||
Other adjustment | — | — | 289 | 0.1 | ||||||||
Non-GAAP adjusted gross profit | $ | 291,298 | 43.8 | % | $ | 262,714 | 47.3 | % | ||||
Life Sciences Products | Life Sciences Services | |||||||||||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | |||||||||||||||||||||||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||||||||||||||||
GAAP gross profit | $ | 26,716 | 32.5 | % | $ | 27,213 | 36.5 | % | $ | 19,068 | 39.4 | % | $ | 41,318 | 45.8 | % | $ | 40,792 | 44.6 | % | $ | 39,057 | 43.8 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||
Amortization of completed technology | 3,451 | 4.2 | 3,329 | 4.4 | 401 | 0.8 | 1,318 | 1.5 | 1,327 | 1.5 | 1,500 | 1.7 | ||||||||||||||||||||||||
Purchase accounting impact on inventory | 927 | 1.2 | 2,956 | 4.0 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other adjustment | (1) | — | — | — | — | — | — | — | — | — | 289 | 0.3 | ||||||||||||||||||||||||
Non-GAAP adjusted gross profit | $ | 31,093 | 37.9 | % | $ | 33,498 | 44.9 | % | $ | 19,469 | 40.3 | % | $ | 42,636 | 47.2 | % | $ | 42,119 | 46.1 | % | $ | 40,846 | 45.8 | % | ||||||||||||
Life Sciences Products | Life Sciences Services | |||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||
Dollars in thousands | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | ||||||||||||||||||||
GAAP gross profit | $ | 101,192 | 33.2 | % | $ | 89,074 | 44.7 | % | $ | 161,948 | 45.0 | % | $ | 166,523 | 46.7 | % | ||||||||
Adjustments: | ||||||||||||||||||||||||
Amortization of completed technology | 13,194 | 4.3 | 1,122 | 0.6 | 5,300 | 1.5 | 6,202 | 1.7 | ||||||||||||||||
Purchase accounting impact on inventory | 9,664 | 3.2 | — | — | — | — | — | — | ||||||||||||||||
Tariff adjustment | — | — | — | — | — | — | (484) | (0.1) | ||||||||||||||||
Other adjustment | — | — | — | — | (1) | (0.0) | 289 | 0.1 | ||||||||||||||||
Non-GAAP adjusted gross profit | $ | 124,050 | 40.6 | % | $ | 90,196 | 45.2 | % | $ | 167,247 | 46.5 | % | $ | 172,530 | 48.4 | % | ||||||||
Life Sciences Products | Life Sciences Services | |||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||
September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | |||||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||
GAAP operating (loss) profit | $ | (5,244) | $ | (4,878) | $ | (141) | $ | (1,420) | $ | (3,813) | $ | 12 | ||||||
Adjustments: | . | |||||||||||||||||
Amortization of completed technology | 3,451 | 3,329 | 401 | 1,318 | 1,327 | 1,500 | ||||||||||||
Purchase accounting impact on inventory | 927 | 2,956 | — | — | — | — | ||||||||||||
Other adjustment | 51 | — | — | (1) | — | 339 | ||||||||||||
Non-GAAP adjusted operating (loss) profit | $ | (815) | $ | 1,407 | $ | 260 | $ | (103) | $ | (2,486) | $ | 1,851 | ||||||
Total Segments | Corporate | Total | |||||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | |||||||||||||||||||
Dollars in thousands | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||||
GAAP operating (loss) profit | $ | (6,664) | $ | (8,691) | $ | (129) | $ | (9,964) | $ | (7,145) | $ | (14,490) | $ | (16,628) | $ | (15,836) | $ | (14,619) | |||||||||
Adjustments: | |||||||||||||||||||||||||||
Amortization of completed technology | 4,769 | 4,656 | 1,901 | — | — | — | 4,769 | 4,656 | 1,901 | ||||||||||||||||||
Purchase accounting impact on inventory | 927 | 2,956 | — | — | — | — | 927 | 2,956 | — | ||||||||||||||||||
Amortization of other intangible assets | — | — | — | 7,481 | 7,522 | 6,900 | 7,481 | 7,522 | 6,900 | ||||||||||||||||||
Rebranding and transformation costs | — | — | — | (15) | 21 | 536 | (15) | 21 | 536 | ||||||||||||||||||
Restructuring charges | — | — | — | 804 | 812 | 393 | 804 | 812 | 393 | ||||||||||||||||||
Contingent consideration adjustment | — | — | — | — | (1,404) | — | — | (1,404) | — | ||||||||||||||||||
Merger and acquisition costs and costs | — | — | — | 1,767 | 219 | 6,959 | 1,767 | 219 | 6,959 | ||||||||||||||||||
Other adjustment | 50 | — | 339 | (51) | (2) | (339) | (1) | (2) | — | ||||||||||||||||||
Non-GAAP adjusted operating (loss) profit | $ | (918) | $ | (1,079) | $ | 2,111 | $ | 22 | $ | 23 | $ | (41) | $ | (896) | $ | (1,056) | $ | 2,070 | |||||||||
(1) | Includes expenses related to governance-related matters. |
Life Sciences Products | Life Sciences Services | |||||||||||
Year Ended | Year Ended | |||||||||||
Dollars in thousands | September 30, | September 30, | September 30, | September 30, | ||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
GAAP operating (loss) profit | $ | (30,321) | $ | 11,033 | $ | (14,722) | $ | 10,784 | ||||
Adjustments: | ||||||||||||
Amortization of completed technology | 13,194 | 1,122 | 5,300 | 6,202 | ||||||||
Purchase accounting impact on inventory | 9,664 | — | — | — | ||||||||
Tariff adjustment | — | — | — | (484) | ||||||||
Other adjustment | 1,566 | — | 110 | 345 | ||||||||
Non-GAAP adjusted operating (loss) profit | $ | (5,897) | $ | 12,155 | $ | (9,312) | $ | 16,847 | ||||
Total Segments | Corporate | Total | ||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||
Dollars in thousands | September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
GAAP operating (loss) profit | $ | (45,043) | $ | 21,817 | $ | (28,083) | $ | (46,552) | $ | (73,126) | $ | (24,735) | ||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 18,494 | 7,324 | — | — | 18,494 | 7,324 | ||||||||||||
Purchase accounting impact on inventory | 9,664 | — | — | — | 9,664 | — | ||||||||||||
Amortization of other intangibles | — | — | 29,884 | 24,965 | 29,884 | 24,965 | ||||||||||||
Rebranding and transformation costs | — | — | (49) | 2,741 | (49) | 2,741 | ||||||||||||
Restructuring and restructuring related charges | — | — | 4,577 | 712 | 4,577 | 712 | ||||||||||||
Contingent consideration - fair value adjustments | — | — | (18,549) | — | (18,549) | — | ||||||||||||
Tariff adjustment | — | (484) | — | — | — | (484) | ||||||||||||
Merger and acquisition costs and costs related to | — | — | 13,842 | 17,929 | 13,842 | 17,929 | ||||||||||||
Other adjustment | 1,676 | 345 | (1,677) | (345) | (1) | — | ||||||||||||
Non-GAAP adjusted operating (loss) profit | $ | (15,209) | $ | 29,002 | $ | (55) | $ | (550) | $ | (15,264) | $ | 28,452 | ||||||
(1) | Includes expenses related to governance-related matters. |
Life Sciences Products | Life Sciences Services | Azenta Total | ||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||
Dollars in millions | 2023 | 2022 | Change | 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||
Revenue | $ | 82 | $ | 48 | 70 | % | $ | 90 | $ | 89 | 1 | % | $ | 172 | $ | 138 | 25 | % | ||||||||||
Acquisitions/divestitures | 30 | — | (63) | % | — | — | — | % | 30 | — | (22) | % | ||||||||||||||||
Currency exchange rates | 2 | — | (4) | % | 0 | — | (0) | % | 2 | — | (1) | % | ||||||||||||||||
Organic revenue | $ | 50 | $ | 48 | 3 | % | $ | 90 | $ | 89 | 1 | % | $ | 140 | $ | 138 | 2 | % | ||||||||||
Life Sciences Products | Life Sciences Services | Azenta Total | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||
Dollars in millions | 2023 | 2022 | Change | 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||
Revenue | $ | 305 | $ | 199 | 53 | % | $ | 360 | $ | 356 | 1 | % | $ | 665 | $ | 555 | 20 | % | ||||||||||
Acquisitions/divestitures | 127 | — | (64) | % | — | — | — | % | 127 | — | (23) | % | ||||||||||||||||
Currency exchange rates | (4) | — | 2 | % | (6) | — | 2 | % | (9) | — | 2 | % | ||||||||||||||||
Organic revenue | $ | 182 | $ | 199 | (9) | % | $ | 366 | $ | 356 | 3 | % | $ | 547 | $ | 555 | (1) | % | ||||||||||
| Last Trade: | US$43.51 |
| Daily Change: | -1.49 -3.31 |
| Daily Volume: | 353,794 |
| Market Cap: | US$2.130B |
September 04, 2024 August 12, 2024 | |
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