Fourth quarter revenue of $696 million; (6)% reported growth; (7)% organic growth; (3)% non-COVID organic growth
Fourth quarter GAAP EPS of $0.64; Adjusted EPS from continuing operations of $1.25
Initiates full year 2024 guidance
WALTHAM, Mass.–(BUSINESS WIRE)–Revvity, Inc. (NYSE: RVTY), today reported financial results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter 2023
The Company reported GAAP earnings per share of $0.64, as compared to $1.01 in the same period a year ago. GAAP revenue for the quarter was $696 million, as compared to $741 million in the same period a year ago. GAAP operating income from continuing operations for the quarter was $77 million, as compared to $137 million for the same period a year ago. GAAP operating profit margin from continuing operations was 11.1% as a percentage of revenue, as compared to 18.5% in the same period a year ago.
Adjusted earnings per share from continuing operations for the quarter was $1.25, as compared to $1.41 in the same period a year ago. Adjusted revenue for the quarter was $696 million, as compared to $741 million in the same period a year ago. Adjusted operating income was $192 million, as compared to $240 million for the same period a year ago. Adjusted operating profit margin was 27.5% as a percentage of adjusted revenue, as compared to 32.3% in the same period a year ago.
Full Year 2023
The Company reported GAAP earnings per share of $5.55 in 2023, as compared to $4.50 in 2022. GAAP revenue for the year was $2,751 million, as compared to $3,312 million in 2022. GAAP operating income from continuing operations for the year was $301 million, as compared to $743 million for 2022. GAAP operating profit margin from continuing operations for the year was 10.9% as a percentage of revenue, as compared to 22.4% in 2022.
Adjusted earnings per share from continuing operations for the year was $4.65, as compared to $6.92 in 2022. Adjusted revenue for the year was $2,751 million, as compared to $3,313 million in 2022. Adjusted operating income for the year was $770 million, as compared to $1,212 million in 2022. Adjusted operating profit margin for the year was 28.0% as a percentage of adjusted revenue, as compared to 36.6% in 2022.
Adjustments for the Company’s non-GAAP financial measures have been noted in the attached reconciliations.
“We persevered through continued industry headwinds and performed better than anticipated during the final months of 2023,” said Prahlad Singh, president and chief executive officer of Revvity. “We are leading with innovation to be a strategic scientific partner with our customers, which positions us well to continue to perform at a high level for years to come.”
Financial Overview by Reporting Segment for the Fourth Quarter and Full Year 2023
Life Sciences
Fourth quarter 2023 revenue was $320 million, as compared to $347 million in the same period a year ago. Reported revenue decreased 8% and organic revenue decreased 9% as compared to the same period a year ago.
Full year 2023 revenue was $1,292 million, as compared to $1,293 million in 2022. Reported revenue and organic revenue were both flat as compared to the same period a year ago.
Fourth quarter 2023 adjusted operating income was $118 million, as compared to $146 million in the same period a year ago. Adjusted operating profit margin was 36.9% as a percentage of adjusted revenue, as compared to 41.9% in the same period a year ago.
Full year 2023 adjusted operating income was $489 million, as compared to $503 million in 2022. Adjusted operating profit margin was 37.9% as a percentage of adjusted revenue, as compared to 38.9% in 2022.
Diagnostics
Fourth quarter 2023 revenue was $376 million, as compared to $394 million in the same period a year ago. Reported revenue decreased 4% and organic revenue decreased 6% as compared to the same period a year ago.
Full year 2023 revenue was $1,459 million, as compared to $2,020 million in 2022. Reported revenue decreased 28% and organic revenue decreased 27% as compared to the same period a year ago.
Fourth quarter 2023 adjusted operating income was $80 million, as compared to $113 million in the same period a year ago. Adjusted operating profit margin was 21.1% as a percentage of adjusted revenue, as compared to 28.7% in the same period a year ago.
Full year 2023 adjusted operating income was $321 million, as compared to $782 million in 2022. Adjusted operating profit margin was 22.0% as a percentage of adjusted revenue, as compared to 38.7% in 2022.
Initiates Full Year 2024 Guidance
For the full year 2024, the Company forecasts total revenue of $2.79-$2.85 billion and adjusted earnings per share of $4.55-$4.75.
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 fourth quarter and full year 2023 results and its outlook for business trends during a webcast on February 1, 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.
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; (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 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
Twelve Months Ended
(In thousands, except per share data)
December 31, 2023
January 1, 2023
December 31, 2023
January 1, 2023
Revenue
$
695,901
$
741,214
$
2,750,571
$
3,311,822
Cost of revenue
312,423
304,884
1,210,880
1,321,992
Selling, general and administrative expenses
256,723
244,325
1,022,551
1,025,514
Research and development expenses
49,596
54,536
216,578
221,617
Operating income from continuing operations
77,159
137,469
300,562
742,699
Interest income
(18,363
)
(1,565
)
(72,131
)
(3,589
)
Interest expense
24,582
22,508
98,813
103,955
Change in fair value of financial securities
21,079
1,433
33,921
15,754
Other expense (income), net
18,482
(23,354
)
56,983
(25,258
)
Income from continuing operations, before income taxes
31,379
138,447
182,976
651,837
(Benefit from) provision for income taxes
(32,188
)
40,950
3,473
139,161
Income from continuing operations
63,567
97,497
179,503
512,676
Income from discontinued operations
14,996
30,161
513,591
56,503
Net income
$
78,563
$
127,658
$
693,094
$
569,179
Diluted earnings per share:
Income from continuing operations
$
0.52
$
0.77
$
1.44
$
4.06
Income from discontinued operations
0.12
0.24
4.11
0.45
Net income
$
0.64
$
1.01
$
5.55
$
4.50
Weighted average diluted shares of common stock outstanding
123,412
126,476
124,812
126,426
ABOVE PREPARED IN ACCORDANCE WITH GAAP
Additional supplemental information (1):
(per share, continuing operations)
GAAP EPS from continuing operations
$
0.52
$
0.77
$
1.44
$
4.06
Amortization of intangible assets
0.73
0.71
2.93
2.93
Debt extinguishment costs
(0.00
)
(0.02
)
(0.03
)
(0.02
)
Purchase accounting adjustments
0.02
0.00
0.05
0.36
Acquisition and divestiture-related costs
0.08
0.11
0.71
0.32
Change in fair value of financial securities
0.17
0.01
0.27
0.12
Significant litigation matters and settlements
0.00
0.00
0.00
(0.00
)
Significant environmental matters
0.01
–
0.02
–
Disposition of businesses and assets, net
–
(0.02
)
–
(0.02
)
Mark to market on postretirement benefits
0.08
(0.18
)
0.08
(0.18
)
Restructuring and other, net
0.09
(0.01
)
0.21
0.11
Tax on above items
(0.29
)
(0.07
)
(1.02
)
(0.84
)
Significant tax items
(0.14
)
0.12
(0.01
)
0.10
Adjusted EPS from continuing operations
$
1.25
$
1.41
$
4.65
$
6.92
(1) amounts may not sum due to rounding
Revvity, Inc. and Subsidiaries
REVENUE AND OPERATING INCOME (LOSS)
Three Months Ended
Twelve Months Ended
(In thousands, except percentages)
December 31, 2023
January 1, 2023
December 31, 2023
January 1, 2023
Adjusted revenue and operating income
Reported revenue
$
695,901
$
741,214
$
2,750,571
$
3,311,822
Revenue purchase accounting adjustments
209
205
827
814
Adjusted revenue
696,110
741,419
2,751,398
3,312,636
Reported operating income from continued operations
77,159
137,469
300,562
742,699
OP%
11.1
%
18.5
%
10.9
%
22.4
%
Amortization of intangible assets
89,624
90,169
365,113
370,638
Purchase accounting adjustments
2,899
87
5,956
45,681
Acquisition and divestiture-related costs
10,079
13,961
69,159
39,826
Significant litigation matters and settlements
12
5
12
(627
)
Significant environmental matters
1,325
–
2,457
–
Restructuring and other, net
10,665
(1,863
)
26,601
13,580
Adjusted operating income
$
191,763
$
239,828
$
769,860
$
1,211,797
OP%
27.5
%
32.3
%
28.0
%
36.6
%
Segment revenue and segment operating income
Life Sciences
$
319,691
$
347,425
$
1,292,340
$
1,292,909
Diagnostics
376,419
393,994
1,459,058
2,019,727
Revenue purchase accounting adjustments
(209
)
(205
)
(827
)
(814
)
Reported revenue
695,901
741,214
2,750,571
3,311,822
Life Sciences
117,939
145,582
489,349
503,243
36.9
%
41.9
%
37.9
%
38.9
%
Diagnostics
79,514
113,004
320,928
781,985
21.1
%
28.7
%
22.0
%
38.7
%
Corporate
(5,690
)
(18,758
)
(40,417
)
(73,431
)
Subtotal reportable segments adjusted operating income
191,763
239,828
769,860
1,211,797
Amortization of intangible assets
(89,624
)
(90,169
)
(365,113
)
(370,638
)
Purchase accounting adjustments
(2,899
)
(87
)
(5,956
)
(45,681
)
Acquisition and divestiture-related costs
(10,079
)
(13,961
)
(69,159
)
(39,826
)
Significant litigation matters and settlements
(12
)
(5
)
(12
)
627
Significant environmental matters
(1,325
)
–
(2,457
)
–
Restructuring and other, net
(10,665
)
1,863
(26,601
)
(13,580
)
Reported operating income from continued operations
$
77,159
$
137,469
$
300,562
$
742,699
REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP
Revvity, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, 2023
January 1, 2023
Current assets:
Cash and cash equivalents
$
913,163
$
454,358
Marketable securities
689,916
–
Accounts receivable, net
632,811
612,780
Inventories, net
428,062
405,462
Other current assets
337,139
122,254
Current assets of discontinued operations
–
1,693,704
Total current assets
3,001,091
3,288,558
Property, plant and equipment, net
509,654
482,950
Operating lease right-of-use assets, net
155,083
188,351
Intangible assets, net
3,022,321
3,377,174
Goodwill
6,533,550
6,481,768
Other assets, net
342,966
311,054
Total assets
$
13,564,665
$
14,129,855
Current liabilities:
Current portion of long-term debt
$
721,872
$
470,929
Accounts payable
204,121
272,826
Accrued expenses and other current liabilities
524,470
527,863
Current liabilities of discontinued operations
–
272,865
Total current liabilities
1,450,463
1,544,483
Long-term debt
3,177,770
3,923,347
Long-term liabilities
930,946
1,109,181
Operating lease liabilities
132,747
169,968
Total liabilities
5,691,926
6,746,979
Total stockholders’ equity
7,872,739
7,382,876
Total liabilities and stockholders’ equity
$
13,564,665
$
14,129,855
PREPARED IN ACCORDANCE WITH GAAP
Revvity, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
Twelve Months Ended
December 31, 2023
January 1, 2023
December 31, 2023
January 1, 2023
(In thousands)
(In thousands)
Operating activities:
Net income
$
78,563
$
127,658
$
693,094
$
569,179
Income from discontinued operations, net of income taxes
(14,996
)
(30,161
)
(513,591
)
(56,503
)
Income from continuing operations
63,567
97,497
179,503
512,676
Adjustments to reconcile income from continuing operations to net cash provided by (used in) continuing operations:
Stock-based compensation
7,181
11,742
41,410
51,518
Restructuring and other, net
10,665
(1,863
)
26,601
13,580
Depreciation and amortization
105,568
104,234
431,769
427,000
Pension and other postretirement expenses
23,089
(23,104
)
23,089
(23,104
)
Change in fair value of contingent consideration
2,450
(608
)
4,168
(1,377
)
Deferred taxes
(123,664
)
(105,923
)
(123,664
)
(105,923
)
Contingencies and non-cash tax matters
26,183
(1,488
)
26,183
(1,488
)
Amortization of deferred debt financing costs and accretion of discounts
1,549
1,264
7,349
7,310
Gains on disposition of businesses and assets, net
–
(2,887
)
–
(2,887
)
Change in fair value of financial securities
21,079
1,433
33,921
15,754
Debt extinguishment gain
(263
)
(2,788
)
(3,685
)
(2,880
)
Unrealized foreign exchange loss
410
–
24,089
–
Amortization of acquired inventory revaluation
–
250
–
45,289
Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired:
Accounts receivable, net
21,916
(54,045
)
(8,997
)
66,093
Inventories
20,725
(4,159
)
(14,109
)
(48,634
)
Accounts payable
8,968
(15,836
)
(76,426
)
(43,804
)
Accrued expenses and other
31,181
123,466
(291,814
)
(236,623
)
Net cash provided by operating activities of continuing operations
220,604
127,185
279,387
672,500
Net cash (used in) provided by operating activities of discontinued operations
(23,991
)
11,973
(188,115
)
7,310
Net cash provided by operating activities
196,613
139,158
91,272
679,810
Investing activities:
Capital expenditures
(24,116
)
(26,130
)
(81,368
)
(85,632
)
Purchases of investments
(300
)
(2,171
)
(6,300
)
(47,181
)
Purchases of US Treasury Securities
(390,390
)
–
(1,221,609
)
–
Proceeds from US Treasury Securities
–
550,000
Proceeds from notes receivables
–
–
–
8,890
Proceeds from disposition of businesses and assets
–
8,841
153
14,505
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired
–
250
(2,086
)
(7,518
)
Net cash used in investing activities of continuing operations
(414,806
)
(19,210
)
(761,210
)
(116,936
)
Net cash provided by (used in) investing activities of discontinued operations
–
(6,474
)
2,074,734
(15,915
)
Net cash (used in) provided by investing activities
(414,806
)
(25,684
)
1,313,524
(132,851
)
Financing Activities:
Payments on borrowings
–
(20,000
)
–
(240,000
)
Proceeds from borrowings
–
20,000
–
240,000
Payments of term loan
–
–
–
(500,000
)
Payments of senior unsecured notes
(5,835
)
(50,404
)
(523,808
)
(57,876
)
Payment of debt issuance costs
–
–
(15
)
–
Settlement of cash flow hedges
–
–
–
(762
)
Net (payments) proceeds on other credit facilities
(895
)
(810
)
6,323
(1,292
)
Payments for acquisition-related contingent consideration
–
–
(10,117
)
(5
)
Proceeds from issuance of common stock under stock plans
623
7,860
4,344
14,114
Purchases of common stock
(4,868
)
(24,501
)
(388,882
)
(80,638
)
Dividends paid
(8,639
)
(8,842
)
(34,966
)
(35,344
)
Net cash used in financing activities of continuing operations
(19,614
)
(76,697
)
(947,121
)
(661,803
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
14,222
17,657
(14,048
)
(33,747
)
Net (decrease) increase in cash, cash equivalents, and restricted cash
(223,585
)
54,434
443,627
(148,591
)
Cash, cash equivalents, and restricted cash at beginning of period
1,137,958
416,312
470,746
619,337
Cash, cash equivalents, and restricted cash at end of period
$
914,373
$
470,746
$
914,373
$
470,746
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
$
913,163
$
454,358
$
913,163
$
454,358
Restricted cash included in other current assets
1,210
1,040
1,210
1,040
Restricted cash included in other assets
–
349
–
349
Cash and cash equivalents included in current assets of discontinued operations
–
14,999
–
14,999
Total cash, cash equivalents and restricted cash
$
914,373
$
470,746
$
914,373
$
470,746
PREPARED IN ACCORDANCE WITH GAAP
Revvity, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
Revvity
Three Months Ended
December 31, 2023
Organic revenue growth:
Reported revenue growth from continuing operations
-6%
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
-7%
Less: effect of COVID products
-4%
Non-COVID organic revenue growth from continuing operations
-3%
Life Sciences
Three Months Ended
December 31, 2023
Organic revenue growth:
Reported revenue growth from continuing operations
-8%
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
-9%
Diagnostics
Three Months Ended
December 31, 2023
Organic revenue growth:
Reported revenue growth from continuing operations
-4%
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%
Less: effect of COVID products
-8%
Non-COVID 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)
Revvity
Twelve Months Ended
December 31, 2023
Organic revenue growth:
Reported revenue growth from continuing operations
-17%
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
-16%
Less: effect of COVID products
-19%
Non-COVID organic revenue growth from continuing operations
2%
Life Sciences
Twelve Months Ended
December 31, 2023
Organic revenue growth:
Reported revenue growth continuing operations
0%
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
0%
Diagnostics
Twelve Months Ended
December 31, 2023
Organic revenue growth:
Reported revenue growth continuing operations
-28%
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
-27%
Less: effect of COVID products
-32%
Non-COVID organic revenue growth from continuing operations
5%
(1) amounts may not sum due to rounding
Contacts
Investor Relations:
Steve Willoughby
[email protected]
Media Contact:
Fara Goldberg (781) 663-5699
[email protected]