- Revenue of $692 million; (2)% reported growth; (1)% organic
growth
- GAAP EPS of $0.45; Adjusted EPS from continuing operations
of $1.22
- Raises full year 2024 adjusted EPS guidance
Revvity, Inc. (NYSE: RVTY), today reported financial results for
the second quarter ended June 30, 2024.
The Company reported GAAP earnings per share of $0.45, as
compared to $0.28 in the same period a year ago. GAAP revenue for
the quarter was $692 million, as compared to $709 million in the
same period a year ago. GAAP operating income from continuing
operations for the quarter was $86 million, as compared to $78
million for the same period a year ago. GAAP operating profit
margin from continuing operations was 12.4% as a percentage of
revenue, as compared to 11.0% in the same period a year ago.
Adjusted earnings per share from continuing operations for the
quarter was $1.22, as compared to $1.21 in the same period a year
ago. Adjusted revenue for the quarter was $692 million, as compared
to $709 million in the same period a year ago. Adjusted operating
income was $199 million, as compared to $204 million for the same
period a year ago. Adjusted operating profit margin was 28.7% as a
percentage of adjusted revenue, as compared to 28.8% in the same
period a year ago.
Adjustments for the Company's non-GAAP financial measures have
been noted in the attached reconciliations.
“During the second quarter, we celebrated Revvity's one year
anniversary with both pride and gratitude for what we have already
accomplished as an organization and for our customers,” said
Prahlad Singh, president and chief executive officer of Revvity.
“Our Company's unique strengths of bringing together high levels of
continuous innovation and ongoing strong execution enabled us to
exceed our expectations, putting us on a good trajectory towards
achieving our full year goals.”
Financial Overview by Reporting Segment
Life Sciences
- Second quarter 2024 revenue was $314 million, as compared to
$336 million in the same period a year ago. Reported revenue
decreased 7% and organic revenue decreased 6% as compared to the
same period a year ago.
- Second quarter 2024 adjusted operating income was $112 million,
as compared to $128 million in the same period a year ago. Adjusted
operating profit margin was 35.8% as a percentage of adjusted
revenue, as compared to 38.0% in the same period a year ago.
Diagnostics
- Second quarter 2024 revenue was $378 million, as compared to
$373 million in the same period a year ago. Reported revenue
increased 1% and organic revenue increased 3% as compared to the
same period a year ago.
- Second quarter 2024 adjusted operating income was $98 million,
as compared to $85 million in the same period a year ago. Adjusted
operating profit margin was 25.9% as a percentage of adjusted
revenue, as compared to 22.9% in the same period a year ago.
Full Year 2024 Guidance
For the full year 2024, the Company is updating its full year
revenue guidance to $2.77-$2.79 billion to reflect recent changes
in foreign currency exchange rates and assumes 2% organic revenue
growth. The Company is also raising its adjusted EPS guidance to a
range of $4.70-$4.80.
Guidance for the full year 2024 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 second quarter 2024 results and its
outlook for business trends during a webcast on July 29, 2024, 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) fluctuations in the
global economic and political environments; (3) our failure to
introduce new products in a timely manner; (4) our ability to
execute acquisitions and divestitures, license technologies, or to
successfully integrate acquired businesses or licensed technologies
into our existing businesses or to make them profitable; (5) our
ability to compete effectively; (6) fluctuation in our quarterly
operating results and our ability to adjust our operations to
address unexpected changes; (7) significant disruption in
third-party package delivery and import/export services or
significant increases in prices for those services; (8) disruptions
in the supply of raw materials and supplies; (9) our ability to
retain key personnel; (10) significant disruption in our
information technology systems, or cybercrime; (11) our ability to
realize the full value of our intangible assets; (12) our failure
to adequately protect our intellectual property; (13) the loss of
any of our licenses or licensed rights; (14) the manufacture and
sale of products exposing us to product liability claims; (15) our
failure to maintain compliance with applicable government
regulations; (16) our failure to comply with data privacy and
information security laws and 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
quarterly report on Form 10-Q 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 2023 revenue of more than $2.7 billion 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, X, YouTube,
Facebook and Instagram.
Revvity, Inc. and
Subsidiaries
CONDENSED CONSOLIDATED INCOME
STATEMENTS
Three Months Ended
Six Months Ended
(In thousands, except per share
data)
June 30, 2024
July 2, 2023
June 30, 2024
July 2, 2023
Revenue
$
691,685
$
709,066
$
1,341,605
$
1,383,931
Cost of revenue
306,179
306,735
601,052
600,234
Selling, general and administrative
expenses
251,650
267,022
512,221
515,579
Research and development expenses
48,132
57,253
98,492
113,943
Operating income from continuing
operations
85,724
78,056
129,840
154,175
Interest income
(20,512
)
(25,046
)
(40,598
)
(30,318
)
Interest expense
24,717
26,007
49,114
48,745
Change in fair value of financial
securities
(7,777
)
2,023
(6,971
)
(745
)
Other expense, net
2,634
3,518
7,084
35,499
Income from continuing operations, before
income taxes
86,662
71,554
121,211
100,994
Provision for income taxes
14,056
12,932
19,909
17,527
Income from continuing
operations
72,606
58,622
101,302
83,467
(Loss) income from discontinued
operations
(17,246
)
(23,063
)
(19,929
)
521,567
Net income
$
55,360
$
35,559
$
81,373
$
605,034
Diluted earnings per share:
Income from continuing operations
$
0.59
$
0.47
$
0.82
$
0.66
(Loss) income from discontinued
operations
(0.14
)
(0.18
)
(0.16
)
4.14
Net income
$
0.45
$
0.28
$
0.66
$
4.80
Weighted average diluted shares of common
stock outstanding
123,477
125,398
123,494
125,918
ABOVE PREPARED IN ACCORDANCE WITH
GAAP
Additional supplemental information
(1):
(per share, continuing operations)
GAAP EPS from continuing operations
$
0.59
$
0.47
$
0.82
$
0.66
Amortization of intangible assets
0.73
0.74
1.47
1.47
Debt extinguishment costs
-
-
-
(0.03
)
Purchase accounting adjustments
0.01
0.02
0.06
0.02
Acquisition and divestiture-related
costs
0.04
0.20
0.11
0.55
Change in fair value of financial
securities
(0.06
)
0.02
(0.06
)
(0.01
)
Significant litigation matters and
settlements
0.05
-
0.05
-
Significant environmental matters
-
-
-
0.01
Restructuring and other, net
0.08
0.02
0.18
0.04
Tax on above items
(0.21
)
(0.25
)
(0.44
)
(0.48
)
Significant tax items
-
-
-
(0.01
)
Adjusted EPS from continuing
operations
$
1.22
$
1.21
$
2.19
$
2.22
(1) amounts may not sum due to
rounding
Revvity, Inc. and
Subsidiaries
REVENUE AND OPERATING INCOME
(LOSS)
Three Months Ended
Six Months Ended
(In thousands, except
percentages)
June 30, 2024
July 2, 2023
June 30, 2024
July 2, 2023
Adjusted revenue and operating
income
Reported revenue
$
691,685
$
709,066
$
1,341,605
$
1,383,931
Revenue purchase accounting
adjustments
207
206
416
412
Adjusted revenue
691,892
709,272
1,342,021
1,384,343
Reported operating income from continuing
operations
85,724
78,056
129,840
154,175
OP%
12.4
%
11.0
%
9.7
%
11.1
%
Amortization of intangible assets
90,620
92,758
181,858
184,569
Purchase accounting adjustments
623
2,891
7,245
1,977
Acquisition and divestiture-related
costs
5,779
28,579
17,241
46,530
Significant litigation matters and
settlements
6,276
—
6,276
—
Significant environmental matters
—
—
—
1,132
Restructuring and other, net
9,845
2,009
22,201
5,104
Adjusted operating income
$
198,867
$
204,293
$
364,661
$
393,487
OP%
28.7
%
28.8
%
27.2
%
28.4
%
Segment revenue and segment operating
income
Life Sciences
$
313,847
$
336,353
$
616,884
$
664,794
Diagnostics
378,045
372,919
725,137
719,549
Revenue purchase accounting
adjustments
(207
)
(206
)
(416
)
(412
)
Reported revenue
691,685
709,066
1,341,605
1,383,931
Life Sciences
$
112,401
$
127,759
$
214,126
$
257,218
35.8
%
38.0
%
34.7
%
38.7
%
Diagnostics
97,915
85,241
173,345
159,673
25.9
%
22.9
%
23.9
%
22.2
%
Corporate
(11,449
)
(8,707
)
(22,810
)
(23,404
)
Subtotal reportable segments operating
income
198,867
204,293
364,661
393,487
Amortization of intangible assets
(90,620
)
(92,758
)
(181,858
)
(184,569
)
Purchase accounting adjustments
(623
)
(2,891
)
(7,245
)
(1,977
)
Acquisition and divestiture-related
costs
(5,779
)
(28,579
)
(17,241
)
(46,530
)
Significant litigation matters and
settlements
(6,276
)
—
(6,276
)
—
Significant environmental matters
—
—
—
(1,132
)
Restructuring and other, net
(9,845
)
(2,009
)
(22,201
)
(5,104
)
Reported operating income from continuing
operations
$
85,724
$
78,056
$
129,840
$
154,175
REPORTED REVENUE AND REPORTED
OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP
Revvity, Inc. and
Subsidiaries
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
June 30, 2024
December 31,
2023
Current assets:
Cash and cash equivalents
$
1,248,120
$
913,163
Marketable securities
706,070
689,916
Accounts receivable, net
597,436
632,811
Inventories, net
401,432
428,062
Other current assets
205,631
337,139
Total current assets
3,158,689
3,001,091
Property, plant and equipment, net
503,119
509,654
Operating lease right-of-use assets,
net
143,789
155,083
Intangible assets, net
2,825,487
3,022,321
Goodwill
6,496,971
6,533,550
Other assets, net
296,794
342,966
Total assets
$
13,424,849
$
13,564,665
Current liabilities:
Current portion of long-term debt
$
711,414
$
721,872
Accounts payable
174,871
204,121
Accrued expenses and other current
liabilities
503,728
524,470
Total current liabilities
1,390,013
1,450,463
Long-term debt
3,162,600
3,177,770
Long-term liabilities
878,788
930,946
Operating lease liabilities
123,134
132,747
Total liabilities
5,554,535
5,691,926
Total stockholders' equity
7,870,314
7,872,739
Total liabilities and stockholders'
equity
$
13,424,849
$
13,564,665
PREPARED IN ACCORDANCE WITH
GAAP
Revvity, Inc. and
Subsidiaries
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Three Months Ended
Six Months Ended
June 30, 2024
July 2, 2023
June 30, 2024
July 2, 2023
(In thousands)
(In thousands)
Operating activities:
Net income
$
55,360
$
35,559
$
81,373
$
605,034
Loss (income) from discontinued
operations, net of income taxes
17,246
23,063
19,929
(521,567
)
Income from continuing operations
72,606
58,622
101,302
83,467
Adjustments to reconcile income from
continuing operations to net cash provided by (used in) continuing
operations:
Stock-based compensation
10,526
13,633
22,218
23,526
Restructuring and other, net
9,845
2,009
22,201
5,104
Depreciation and amortization
107,344
108,930
215,146
217,938
Change in fair value of contingent
consideration
176
2,445
6,349
1,085
Amortization of deferred debt financing
costs and
accretion of discounts
1,773
2,026
3,509
3,818
Change in fair value of financial
securities
(7,777
)
2,023
(6,971
)
(745
)
Debt extinguishment gain
—
—
—
(3,345
)
Unrealized foreign exchange (gain)
loss
(480
)
(2,416
)
(857
)
23,679
Changes in assets and liabilities which
provided (used) cash, excluding effects from companies
acquired:
Accounts receivable, net
(8,995
)
(44,640
)
28,194
(10,216
)
Inventories
10,042
(8,255
)
17,251
(26,775
)
Accounts payable
(4,747
)
(44,330
)
(22,974
)
(49,225
)
Accrued expenses and other
(7,985
)
(137,195
)
(52,894
)
(240,285
)
Net cash provided by (used in)
operating activities of continuing operations
182,328
(47,148
)
332,474
28,026
Net cash used in operating activities
of discontinued operations
(23,707
)
(88,171
)
(26,290
)
(99,882
)
Net cash provided by (used in)
operating activities
158,621
(135,319
)
306,184
(71,856
)
Investing activities:
Capital expenditures
(22,031
)
(13,949
)
(39,875
)
(34,895
)
Purchases of investments and notes
receivables
(4,000
)
(5,000
)
(4,337
)
(5,000
)
Purchases of U.S. Treasury Securities
—
(637,765
)
—
(831,219
)
Proceeds from U.S. Treasury Securities
—
100,000
—
100,000
Cash paid for acquisitions, net of cash
acquired
—
—
—
(686
)
Net cash used in investing activities
of continuing operations
(26,031
)
(556,714
)
(44,212
)
(771,800
)
Net cash provided by (used in)
investing activities of discontinued operations
147,522
(14,327
)
147,522
2,065,261
Net cash provided by (used in)
investing activities
121,491
(571,041
)
103,310
1,293,461
Financing Activities:
Payments of debt financing costs
—
(15
)
—
(15
)
Payments of senior unsecured notes
—
(1,232
)
—
(50,835
)
Net (payments) proceeds on other credit
facilities
(389
)
(636
)
(11,200
)
7,231
Payments for acquisition-related
contingent consideration
—
(8,642
)
(8,749
)
(10,117
)
Proceeds from issuance of common stock
under stock
plans
2,089
2,692
6,032
3,215
Purchases of common stock
(19,553
)
(211,643
)
(30,309
)
(273,299
)
Dividends paid
(8,642
)
(8,797
)
(17,282
)
(17,638
)
Net cash used in financing
activities
(26,495
)
(228,273
)
(61,508
)
(341,458
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(3,654
)
(602
)
(12,931
)
(17,571
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
249,963
(935,235
)
335,055
862,576
Cash, cash equivalents, and restricted
cash at beginning of period
999,465
2,268,557
914,373
470,746
Cash, cash equivalents, and restricted
cash at end of period
$
1,249,428
$
1,333,322
$
1,249,428
$
1,333,322
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
$
1,248,120
$
1,331,903
$
1,248,120
$
1,331,903
Restricted cash included in other current
assets
1,308
1,062
1,308
1,062
Restricted cash included in other
assets
—
357
—
357
Total cash, cash equivalents and
restricted cash
$
1,249,428
$
1,333,322
$
1,249,428
$
1,333,322
PREPARED IN ACCORDANCE WITH
GAAP
Revvity, Inc. and
Subsidiaries
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES (1)
Continuing Operations
Three Months Ended
June 30, 2024
Organic revenue growth:
Reported revenue growth from continuing
operations
-2%
Less: effect of foreign exchange rates
-1%
Less: effect of acquisitions including
purchase accounting adjustments and impact of divested
businesses
0%
Organic revenue growth from continuing
operations
-1%
Life Sciences
Three Months Ended
June 30, 2024
Organic revenue growth:
Reported revenue growth from continuing
operations
-7%
Less: effect of foreign exchange rates
-1%
Less: effect of acquisitions including
purchase accounting adjustments and impact of divested
businesses
0%
Organic revenue growth from continuing
operations
-6%
Diagnostics
Three Months Ended
June 30, 2024
Organic revenue growth:
Reported revenue growth from continuing
operations
1%
Less: effect of foreign exchange rates
-1%
Less: effect of acquisitions including
purchase accounting adjustments and impact of divested
businesses
0%
Organic revenue growth from continuing
operations
3%
(1) amounts may not sum due to
rounding
Revvity, Inc. and
Subsidiaries
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES (1)
Continuing Operations
Six Months Ended
June 30, 2024
Organic revenue growth:
Reported revenue growth from continuing
operations
-3%
Less: effect of foreign exchange rates
-1%
Less: effect of acquisitions including
purchase accounting adjustments and impact of divested
businesses
0%
Organic revenue growth from continuing
operations
-2%
Life Sciences
Six Months Ended
June 30, 2024
Organic revenue growth:
Reported revenue growth from continuing
operations
-7%
Less: effect of foreign exchange rates
0%
Less: effect of acquisitions including
purchase accounting adjustments and impact of divested
businesses
0%
Organic revenue growth from continuing
operations
-7%
Diagnostics
Six Months Ended
June 30, 2024
Organic revenue growth:
Reported revenue growth from continuing
operations
1%
Less: effect of foreign exchange rates
-1%
Less: effect of acquisitions including
purchase accounting adjustments and impact of divested
businesses
0%
Organic revenue growth from continuing
operations
2%
Continuing Operations
Twelve Months Ended
December 29, 2024
Projected
Organic revenue growth:
Reported revenue growth from continuing
operations
1%
Less: effect of foreign exchange rates
-1%
Less: effect of acquisitions including
purchase accounting adjustments and impact of divested
businesses
0%
Organic revenue growth from continuing
operations
2%
(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 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, significant environmental charges,
and restructuring and other 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 and interest 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 “free cash flow” to refer to net cash provided
by (used in) operating activities of continuing operations, less
payments for additions to property, plant and equipment from
continuing operations (“capital expenditures”) plus the proceeds
from sales of plant, property and equipment from continuing
operations (“capital disposals”).
We use the term “adjusted net income,” to refer to GAAP income
from continuing operations, including revenue from contracts
acquired in acquisitions that will not be fully recognized due to
accounting rules, and excluding 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 and
interest associated with acquisitions and divestitures, asset
impairments and restructuring and other charges. We also exclude
adjustments for mark-to-market accounting on post-retirement
benefits, therefore only our projected costs have been used to
calculate this non-GAAP measure. We also adjust for any tax impact
related to the above items and exclude the impact of significant
tax events.
We use the term “adjusted earnings per share from continuing
operations” or “adjusted earnings per share,” or “adjusted EPS," to
refer to GAAP earnings per share from continuing operations,
including revenue from contracts acquired in acquisitions that will
not be fully recognized due to accounting rules, and excluding
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 and interest associated
with acquisitions and divestitures, asset impairments and
restructuring and other charges. We also exclude adjustments for
mark-to-market accounting on post-retirement benefits, therefore
only our projected costs have been used to calculate this non-GAAP
measure. We also adjust for any tax impact related to the above
items and exclude the impact of significant tax events.
Management includes or excludes the effect of each of the items
identified below in the applicable non-GAAP financial measure
referenced above for the reasons set forth below with respect to
that item:
- Amortization of intangible
assets—purchased intangible assets are amortized over their
estimated useful lives and generally cannot be changed or
influenced by management after the acquisition. Accordingly, this
item is not considered by management in making operating decisions.
Management does not believe such charges accurately reflect the
performance of our ongoing operations for the period in which such
charges are incurred.
- Debt extinguishment costs—we incur
costs and income related to the extinguishment of debt; including
make-whole payments to debt holders, accelerated amortization of
debt fees and discounts, and expense or income from hedges to lock
in make-whole payments. We exclude the impact of these items from
our non-GAAP measures because we believe they do not reflect the
performance of our ongoing operations.
- Revenue from contracts acquired in
acquisitions that will not be fully recognized due to accounting
rules—accounting rules require us to account for the fair
value of revenue from contracts assumed in connection with our
acquisitions. As a result, our GAAP results reflect the fair value
of those revenues, which is not the same as the revenue that
otherwise would have been recorded by the acquired entity. We
include such revenue in our non-GAAP measures because we believe
the fair value of such revenue does not accurately reflect the
performance of our ongoing operations for the period in which such
revenue is recorded.
- Other purchase accounting
adjustments—accounting rules require us to adjust various
balance sheet accounts, including inventory, fixed assets and
deferred rent balances to fair value at the time of the
acquisition. As a result, the expenses for these items in our GAAP
results are not the same as what would have been recorded by the
acquired entity. Accounting rules also require us to estimate the
fair value of contingent consideration at the time of the
acquisition, and any subsequent changes to the estimate or payment
of the contingent consideration and purchase accounting adjustments
are charged to expense or income. We exclude the impact of any
changes to contingent consideration from our non-GAAP measures
because we believe these expenses or benefits do not accurately
reflect the performance of our ongoing operations for the period in
which such expenses or benefits are recorded.
- Acquisition and divestiture-related
expenses—we incur legal, due diligence, stay bonuses,
incentive awards, stock-based compensation, interest, foreign
exchange gains and losses, integration expenses, rebranding
expenses, and other costs related to acquisitions and divestitures.
We exclude these expenses from our non-GAAP measures because we
believe they do not reflect the performance of our ongoing
operations.
- Asset impairments—we incur expense
related to asset impairments. Management does not believe such
charges accurately reflect the performance of our ongoing
operations for the periods in which such charges were
incurred.
- Restructuring and other
charges—restructuring and other charges consist of employee
severance, other exit costs as well as the cost of terminating
certain lease agreements or contracts as well as costs associated
with relocating facilities. Management does not believe such costs
accurately reflect the performance of our ongoing operations for
the period in which such costs are reported.
- Adjustments for mark-to-market accounting
on post-retirement benefits—we exclude adjustments for
mark-to-market accounting on post-retirement benefits, and
therefore only our projected costs are used to calculate our
non-GAAP measures. We exclude these adjustments because they do not
represent what we believe our investors consider to be costs of
producing our products, investments in technology and production,
and costs to support our internal operating structure.
- Significant litigation matters and
settlements—we incur expenses related to significant
litigation matters, including the costs to settle or resolve
various claims and legal proceedings. Management does not believe
such charges accurately reflect the performance of our ongoing
operations for the periods in which such charges were
incurred.
- Significant environmental
charges—we incur expenses related to significant
environmental charges. Management does not believe such charges
accurately reflect the performance of our ongoing operations for
the periods in which such charges were incurred.
- Disposition of businesses and assets,
net—we exclude the impact of gains or losses from the
disposition of businesses and assets from our adjusted earnings per
share. Management does not believe such gains or losses accurately
reflect the performance of our ongoing operations for the period in
which such gains or losses are reported.
- Impact of foreign currency changes on the
current period—we exclude the impact of foreign currency
associated with acquisitions and divestitures from these measures
by using the prior period’s foreign currency exchange rates for the
current period because foreign currency exchange rates are subject
to volatility and can obscure underlying trends.
- Impact of significant tax
events—we exclude the impact of significant tax events.
Management does not believe the impact of significant tax events
accurately reflects the performance of our ongoing operations for
the periods in which the impact of such events was recorded.
- Changes in value of financial
securities—we exclude the impact of changes in the value of
financial securities. Management does not believe such gains or
losses accurately reflect the performance of our ongoing operations
for the period in which such gains or losses are reported.
The tax effect for discontinued operations is calculated based
on the authoritative guidance in the Financial Accounting Standards
Board’s Accounting Standards Codification 740, Income Taxes. The
tax effect for amortization of intangible assets, inventory fair
value adjustments related to business acquisitions, changes to the
fair values assigned to contingent consideration, debt
extinguishment costs, other costs related to business acquisitions
and divestitures, significant litigation matters and settlements,
significant environmental charges, changes in the fair value of
financial securities, adjustments for mark-to-market accounting on
post-retirement benefits, disposition of businesses and assets,
net, restructuring and other charges, and the revenue from
contracts acquired with various acquisitions is calculated based on
operational results and applicable jurisdictional law, which
contemplates tax rates currently in effect to determine our tax
provision. The tax effect for the impact from foreign currency
exchange rates on the current period is calculated based on the
average rate currently in effect to determine our tax
provision.
The non-GAAP financial measures described above are not meant to
be considered superior to, or a substitute for, our financial
statements prepared in accordance with GAAP. There are material
limitations associated with non-GAAP financial measures because
they exclude charges that have an effect on our reported results
and, therefore, should not be relied upon as the sole financial
measures by which to evaluate our financial results. Management
compensates and believes that investors should compensate for these
limitations by viewing the non-GAAP financial measures in
conjunction with the GAAP financial measures. In addition, the
non-GAAP financial measures included in this earnings announcement
may be different from, and therefore may not be comparable to,
similar measures used by other companies.
Each of the non-GAAP financial measures listed above is also
used by our management to evaluate our operating performance,
communicate our financial results to our Board of Directors,
benchmark our results against our historical performance and the
performance of our peers, evaluate investment opportunities
including acquisitions and discontinued operations, and determine
the bonus payments for senior management and employees.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240729804570/en/
Investor Relations: Steve Willoughby
steve.willoughby@revvity.com
Media: Fara Goldberg (781) 663-5699
fara.goldberg@revvity.com
Grafico Azioni Revvity (NYSE:RVTY)
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Grafico Azioni Revvity (NYSE:RVTY)
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