Revvity Announces Financial Results for the Third Quarter of 2024

Revenue of $684 million; 2% reported growth; 2% organic growth GAAP EPS of $0.77; Adjusted EPS from continuing operations of $1.28 Raises full year 2024 adjusted EPS guidance Authorizes new $1 billion share repurchase program To host Investor Day on November 21st WALTHAM, Mass.--(BUSINESS WIRE)-- Revvity, Inc. (NYSE: RVTY), today reported financial results for the third quarter ended September 29, 2024. The Company reported GAAP earnings per share of $0.77, as compared to $0.08 in the same period a year ago. GAAP revenue for the quarter was $684 million, as compared to $671 million in the same period a year ago. GAAP operating income from continuing operations for the quarter was $98 million, as compared to $69 million for the same period a year ago. GAAP operating profit margin from continuing operations was 14.3% as a percentage of revenue, as compared to 10.3% in the same period a year ago. Adjusted earnings per share from continuing operations for the quarter was $1.28, as compared to $1.18 in the same period a year ago. Adjusted revenue for the quarter was $684 million, as compared to $671 million in the same period a year ago. Adjusted operating income was $193 million, as compared to $185 million for the same period a year ago. Adjusted operating profit margin was 28.3% as a percentage of adjusted revenue, as compared to 27.5% in the same period a year ago. Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations. “We performed well during the third quarter with a return to positive revenue growth, strong margins, and another period of excellent cash flow,” said Prahlad Singh, president and chief executive officer of Revvity. “The impact we are having on our customers every day to help to advance science and healthcare is profound, and we are optimistic that we can increasingly make a meaningful difference around the world as we continue to innovate and partner with purpose.” Share Repurchase Authorization The Company’s Board of Directors has authorized a new two-year $1 billion share repurchase program which replaces the remainder of the existing program which was announced in May 2023. Investor Day The Company will host an Investor Day on Thursday, November 21 st beginning at 9:00 a.m. PT. To access the event, a live audio webcast will be available on the Investors section of the Company’s website. Financial Overview by Reporting Segment Life Sciences Third quarter 2024 revenue was $301 million, as compared to $308 million in the same period a year ago. Reported revenue decreased 2% and organic revenue decreased 3% as compared to the same period a year ago. Third quarter 2024 adjusted operating income was $103 million, as compared to $114 million in the same period a year ago. Adjusted operating profit margin was 34.2% as a percentage of adjusted revenue, as compared to 37.1% in the same period a year ago. Diagnostics Third quarter 2024 revenue was $383 million, as compared to $363 million in the same period a year ago. Reported revenue increased 6% and organic revenue increased 5% as compared to the same period a year ago. Third quarter 2024 adjusted operating income was $101 million, as compared to $82 million in the same period a year ago. Adjusted operating profit margin was 26.5% as a percentage of adjusted revenue, as compared to 22.5% 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 $2.75-$2.77 billion to reflect recent changes in foreign currency exchange rates and assumes 0% to 1% organic growth. The Company is also raising its adjusted EPS guidance to a range of $4.83 to $4.87. Guidance for the full year 2024 for organic growth and adjusted EPS 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 third quarter 2024 results and its outlook for business trends during a webcast on November 4, 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 Nine Months Ended (In thousands, except per share data) September 29, 2024 October 1, 2023 September 29, 2024 October 1, 2023 Revenue $ 684,049 $ 670,739 $ 2,025,654 $ 2,054,670 Cost of revenue 299,233 298,223 900,285 898,457 Selling, general and administrative expenses 237,521 250,249 749,742 765,828 Research and development expenses 49,144 53,039 147,636 166,982 Operating income from continuing operations 98,151 69,228 227,991 223,403 Interest income (22,764 ) (23,450 ) (63,362 ) (53,768 ) Interest expense 24,383 25,486 73,497 74,231 Change in fair value of financial securities (7,004 ) 13,587 (13,975 ) 12,842 Other expense, net 3,179 3,002 10,263 38,501 Income from continuing operations, before income taxes 100,357 50,603 221,568 151,597 Provision for income taxes 6,971 18,134 26,880 35,661 Income from continuing operations 93,386 32,469 194,688 115,936 Income (loss) from discontinued operations 981 (22,972 ) (18,948 ) 498,595 Net income $ 94,367 $ 9,497 $ 175,740 $ 614,531 Diluted earnings per share: Income from continuing operations $ 0.76 $ 0.26 $ 1.58 $ 0.93 Income (loss) from discontinued operations 0.01 (0.18 ) (0.15 ) 3.98 Net income $ 0.77 $ 0.08 $ 1.42 $ 4.90 Weighted average diluted shares of common stock outstanding 123,026 124,203 123,336 125,335 ABOVE PREPARED IN ACCORDANCE WITH GAAP Additional supplemental information (1) : (per share, continuing operations) GAAP EPS from continuing operations $ 0.76 $ 0.26 $ 1.58 $ 0.93 Amortization of intangible assets 0.73 0.73 2.20 2.20 Debt extinguishment costs - (0.00 ) - (0.03 ) Purchase accounting adjustments 0.00 0.01 0.06 0.02 Acquisition and divestiture-related costs 0.02 0.09 0.13 0.63 Change in fair value of financial securities (0.06 ) 0.11 (0.11 ) 0.10 Significant litigation matters and settlements 0.01 - 0.06 - Significant environmental matters - - - 0.01 Restructuring and other, net (0.00 ) 0.09 0.18 0.13 Tax on above items (0.18 ) (0.25 ) (0.62 ) (0.73 ) Significant tax items - 0.14 - 0.13 Adjusted EPS from continuing operations $ 1.28 $ 1.18 $ 3.47 $ 3.39 (1) amounts may not sum due to rounding Revvity, Inc. and Subsidiaries REVENUE AND OPERATING INCOME (LOSS) Three Months Ended Nine Months Ended (In thousands, except percentages) September 29, 2024 October 1, 2023 September 29, 2024 October 1, 2023 Adjusted revenue and operating income Reported revenue $ 684,049 $ 670,739 $ 2,025,654 $ 2,054,670 Revenue purchase accounting adjustments 205 206 621 618 Adjusted revenue $ 684,254 $ 670,945 $ 2,026,275 $ 2,055,288 Reported operating income from continuing operations $ 98,151 $ 69,228 $ 227,991 $ 223,403 OP% 14.3 % 10.3 % 11.3 % 10.9 % Amortization of intangible assets 89,642 90,920 271,500 275,489 Purchase accounting adjustments 103 1,080 7,348 3,057 Acquisition and divestiture-related costs 4,874 12,550 22,115 59,080 Significant litigation matters and settlements 810 — 7,086 — Significant environmental matters — — — 1,132 Restructuring and other, net (82 ) 10,832 22,119 15,936 Adjusted operating income $ 193,498 $ 184,610 $ 558,159 $ 578,097 OP% 28.3 % 27.5 % 27.5 % 28.1 % Segment revenue and segment operating income Life Sciences $ 300,921 $ 307,855 $ 917,805 $ 972,649 Diagnostics 383,333 363,090 1,108,470 1,082,639 Revenue purchase accounting adjustments (205 ) (206 ) (621 ) (618 ) Reported revenue $ 684,049 $ 670,739 $ 2,025,654 $ 2,054,670 Life Sciences $ 102,979 $ 114,192 $ 317,105 $ 371,410 34.2 % 37.1 % 34.6 % 38.2 % Diagnostics 101,434 81,741 274,779 241,414 26.5 % 22.5 % 24.8 % 22.3 % Corporate (10,915 ) (11,323 ) (33,725 ) (34,727 ) Subtotal reportable segments operating income 193,498 184,610 558,159 578,097 Amortization of intangible assets (89,642 ) (90,920 ) (271,500 ) (275,489 ) Purchase accounting adjustments (103 ) (1,080 ) (7,348 ) (3,057 ) Acquisition and divestiture-related costs (4,874 ) (12,550 ) (22,115 ) (59,080 ) Significant litigation matters and settlements (810 ) — (7,086 ) — Significant environmental matters — — — (1,132 ) Restructuring and other, net 82 (10,832 ) (22,119 ) (15,936 ) Reported operating income from continuing operations $ 98,151 $ 69,228 $ 227,991 $ 223,403 REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP Revvity, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 29, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 1,229,778 $ 913,163 Marketable securities — 689,916 Accounts receivable, net 602,141 632,811 Inventories, net 404,570 428,062 Other current assets 211,917 337,139 Total current assets 2,448,406 3,001,091 Property, plant and equipment, net 517,932 509,654 Operating lease right-of-use assets, net 149,305 155,083 Intangible assets, net 2,763,211 3,022,321 Goodwill 6,558,660 6,533,550 Other assets, net 332,223 342,966 Total assets $ 12,769,737 $ 13,564,665 Current liabilities: Current portion of long-term debt $ 1,045 $ 721,872 Accounts payable 176,407 204,121 Accrued expenses and other current liabilities 510,488 524,470 Total current liabilities 687,940 1,450,463 Long-term debt 3,185,699 3,177,770 Long-term liabilities 845,998 930,946 Operating lease liabilities 128,399 132,747 Total liabilities 4,848,036 5,691,926 Total stockholders' equity 7,921,701 7,872,739 Total liabilities and stockholders' equity $ 12,769,737 $ 13,564,665 PREPARED IN ACCORDANCE WITH GAAP Revvity, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended Nine Months Ended (In thousands) September 29, 2024 October 1, 2023 September 29, 2024 October 1, 2023 Operating activities: Net income $ 94,367 $ 9,497 $ 175,740 $ 614,531 (Income) loss from discontinued operations, net of income taxes (981 ) 22,972 18,948 (498,595 ) Income from continuing operations 93,386 32,469 194,688 115,936 Adjustments to reconcile income from continuing operations to net cash provided by (used in) continuing operations: Stock-based compensation 10,538 10,703 32,756 34,229 Restructuring and other, net (82 ) 10,832 22,119 15,936 Depreciation and amortization 107,670 108,263 322,816 326,201 Change in fair value of contingent consideration (343 ) 633 6,006 1,718 Amortization of deferred debt financing costs and accretion of discounts 1,542 1,982 5,051 5,800 Change in fair value of financial securities (7,004 ) 13,587 (13,975 ) 12,842 Debt extinguishment gain — (77 ) — (3,422 ) Unrealized foreign exchange (gain) loss (206 ) — (1,063 ) 23,679 Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired: Accounts receivable, net 5,097 (20,697 ) 33,291 (30,913 ) Inventories, net 9,566 (8,059 ) 26,817 (34,834 ) Accounts payable (1,808 ) (36,169 ) (24,782 ) (85,394 ) Accrued expenses and other (61,342 ) (82,710 ) (114,236 ) (322,995 ) Net cash provided by operating activities of continuing operations 157,014 30,757 489,488 58,783 Net cash used in operating activities of discontinued operations (9,129 ) (64,242 ) (35,419 ) (164,124 ) Net cash provided by (used in) operating activities 147,885 (33,485 ) 454,069 (105,341 ) Investing activities: Capital expenditures (22,319 ) (22,357 ) (62,194 ) (57,252 ) Purchases of investments and notes receivables — (1,000 ) (4,337 ) (6,000 ) Proceeds from notes receivables 2,500 — 2,500 — Purchases of U.S. Treasury Securities — — — (831,219 ) Proceeds from U.S. Treasury Securities 710,000 450,000 710,000 550,000 Proceeds from disposition of businesses and assets — 153 — 153 Cash paid for acquisitions, net of cash acquired — (1,400 ) — (2,086 ) Net cash provided by (used in) investing activities of continuing operations 690,181 425,396 645,969 (346,404 ) Net cash provided by investing activities of discontinued operations — 9,473 147,522 2,074,734 Net cash provided by investing activities 690,181 434,869 793,491 1,728,330 Financing Activities: Payments of debt financing costs — — — (15 ) Payments of senior unsecured notes (711,479 ) (467,138 ) (711,479 ) (517,973 ) Net proceeds (payments) on other credit facilities 429 (13 ) (10,771 ) 7,218 Payments for acquisition-related contingent consideration (83 ) — (8,832 ) (10,117 ) Proceeds from issuance of common stock under stock plans 141 506 6,173 3,721 Purchases of common stock (154,112 ) (110,715 ) (184,421 ) (384,014 ) Dividends paid (8,633 ) (8,689 ) (25,915 ) (26,327 ) Net cash used in financing activities (873,737 ) (586,049 ) (935,245 ) (927,507 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 17,051 (10,699 ) 4,120 (28,270 ) Net (decrease) increase in cash, cash equivalents, and restricted cash (18,620 ) (195,364 ) 316,435 667,212 Cash, cash equivalents, and restricted cash at beginning of period 1,249,428 1,333,322 914,373 470,746 Cash, cash equivalents, and restricted cash at end of period $ 1,230,808 $ 1,137,958 $ 1,230,808 $ 1,137,958 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 $ 1,229,778 $ 1,136,721 $ 1,229,778 $ 1,136,721 Restricted cash included in other current assets 1,030 1,237 1,030 1,237 Total cash, cash equivalents and restricted cash $ 1,230,808 $ 1,137,958 $ 1,230,808 $ 1,137,958 PREPARED IN ACCORDANCE WITH GAAP Revvity, Inc. and Subsidiaries RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) Continuing Operations Three Months Ended September 29, 2024 Organic revenue growth: Reported revenue growth from continuing operations 2% 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 2% Life Sciences Three Months Ended September 29, 2024 Organic revenue growth: Reported revenue growth from continuing operations -2% 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 -3% Diagnostics Three Months Ended September 29, 2024 Organic revenue growth: Reported revenue growth from continuing operations 6% 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 5% (1) amounts may not sum due to rounding Revvity, Inc. and Subsidiaries RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) Continuing Operations Twelve Months Ended December 29, 2024 Projected Organic revenue growth: Reported revenue growth from continuing operations 0% - 1% 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% - 1% (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. Contacts Investor Relations: Steve Willoughby steve.willoughby@revvity.com Media Contact: Fara Goldberg (781) 663-5699 fara.goldberg@revvity.com Read full story here