- Revenues for the first quarter increased 11.6% to $182.1
million, compared to $163.2 million in the same period in
2022.
- Net loss was $42.9 million in the first quarter, compared to a
net loss of $19.0 million in the same period last year. Adjusted
EBITDA was $36.6 million, a 4.9% increase from $34.9 million in the
same period last year.
- GAAP net loss per share for the first quarter was $0.22,
compared to $0.10 in the first quarter of 2022. Adjusted earnings
per share for the quarter was $0.06, compared to $0.10 in the same
period last year.
- The company reaffirmed full year 2023 guidance and continues to
expect revenue growth of 6% to 9%, adjusted EBITDA of $172 million
to $182 million, and adjusted EPS of $0.28-$0.34.
Mirion ("we" or the "company") (NYSE: MIR), a global provider of
radiation detection, measurement, analysis and monitoring solutions
to the medical, nuclear, defense, and research end markets, today
announced results for the first quarter ended March 31, 2023.
During the first quarter, Mirion received a $150 million direct
at-the-market investment and utilized $125 million for debt
repayment. This helped the company bring net leverage down during
the quarter. The company targets reducing its net leverage to 3.1x
by year-end.
“The first quarter was a great start to 2023 for Mirion,” stated
Thomas Logan, Mirion’s Chief Executive Officer. “Our team delivered
strong top-line growth across both business segments, producing
results that were above our expectations for the quarter. As we
anticipated, adjusted EBITDA margins were impacted by short-term
product and geographic mix dynamics, but we expect those factors to
moderate over the course of the year. Our end markets remain
healthy and we are confident heading into the remainder of
2023.”
“I am pleased with the results that Mirion was able to deliver
in the first quarter,” added Larry Kingsley, Chairman of Mirion’s
Board. “The team has posted a solid first step toward achieving the
level of growth projected for 2023 and the year has kicked off
according to plan. I am particularly encouraged by the level of
sustained order growth we are seeing across our end markets and the
business continues to maintain a robust backlog position to fuel
future growth.”
Reaffirmed 2023 Outlook
“Today, we have reaffirmed our 2023 guidance on the back of a
strong first quarter,” continued Mr. Logan. “Our end markets remain
supportive of our growth expectations and our teams are focused on
executing upon our expectations for the remainder of the year.”
Mirion is reaffirming its guidance for the fiscal year and
12-month period ending December 31, 2023:
- Reported revenue growth of 6% - 9%
- Organic revenue growth of 4% - 7%
- Adjusted EBITDA of $172 million - $182 million
- Adjusted EPS of $0.28 - $0.34
- Adjusted free cash flow of $58 million - $78 million
Inorganic revenue growth is expected to be approximately 1.5%,
including benefits from the SIS acquisition, offset by the Biodex
rehab divestiture, which closed early in the second quarter.
Foreign exchange rates are expected to result in a positive 0.5%
impact to revenue growth. The guidance for organic revenue growth
excludes the impact of foreign exchange rates as well as mergers
and acquisitions.
Other modeling and guidance assumptions include the
following:
- Euro to U.S. Dollar foreign exchange conversion rate of
1.09
- Net interest expense of approximately $60 million
(approximately $56 million of cash interest)
- Approximately 199 million shares of Class A common stock
outstanding (excludes 7.8 million shares of Class B common stock,
27.2 million warrants, 18.8 million founder shares, subject to
vesting, 2.3 million restricted stock units, 0.6 million
performance stock units and a further 28.7 million shares reserved
for future equity awards (subject to annual automatic
increases))
The Company’s guidance contains forward-looking statements and
actual results may differ materially as a result of known and
unknown uncertainties and risks, including those set forth below
under the heading “Forward-Looking Statements.” In addition,
forward-looking non-GAAP financial measures are presented on a
non-GAAP basis without reconciliations of such forward-looking
non-GAAP measures due to the inherent difficulty in projecting and
quantifying the various adjusting items necessary for such
reconciliations, such as stock-based compensation expense,
amortization and depreciation expense and purchase accounting
adjustments, that have not yet occurred, are out of Mirion’s
control, or cannot be reasonably predicted. Accordingly,
reconciliations of our guidance for revenue, organic revenue,
adjusted EBITDA, adjusted EPS, adjusted free cash flow and net
leverage are not available without unreasonable effort.
Conference Call
Mirion will host a conference call today, May 3, 2023 at 12:00
p.m. ET to discuss its financial results. Participants may access
the call by dialing 1-877-407-9208 or 1-201-493-6784, and
requesting to join the Mirion Technologies, Inc. earnings call. A
live webcast will also be available at
https://ir.mirion.com/news-events.
A telephonic replay will be available shortly after the
conclusion of the call and until May 17, 2023. Participants may
access the replay at 1-844-512-2921, international callers may use
1-412-317-6671, and enter access code 13738092. An archived replay
of the call and an accompanying presentation will also be available
on the Investors section of the Mirion website at
https://ir.mirion.com/.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended. Words such as “anticipate,” “believe,” “continue,”
“could,” “estimate”, “expect”, “hope”, “intend”, “may”, “might”,
“should”, “would”, “will”, “understand” and similar words are
intended to identify forward looking statements. These
forward-looking statements include but are not limited to,
statements regarding our future operating results and financial
position, our business strategy and plans, our objectives for
future operations, macroeconomic trends, foreign exchange, interest
rate and inflation expectations, any future mergers, acquisitions,
divestitures and strategic investments, including the completion
and integration of previously completed transactions, our future
share capitalization and any exercise, exchange or other settlement
of our outstanding warrants and other securities. There are a
significant number of factors that could cause actual results to
differ materially from statements made in this press release,
including changes in domestic and foreign business, market,
economic, financial, political and legal conditions; risks related
to the continued growth of our end markets; our ability to win new
customers and retain existing customers; our ability to realize
sales expected from our backlog of orders and contracts; risks
related to governmental contracts; our ability to mitigate risks
associated with long-term fixed price contracts, including risks
related to inflation; risks related to information technology
disruption or security; risks related to the implementation and
enhancement of information systems; our ability to manage our
supply chain or difficulties with third-party manufacturers; risks
related to competition; our ability to manage disruptions of, or
changes in, our independent sales representatives, distributors and
original equipment manufacturers; our ability to realize the
expected benefit from strategic transactions, such as acquisitions,
divestitures and investments, including any synergies, or internal
restructuring and improvement efforts; our ability to issue debt,
equity or equity-linked securities in the future; risks related to
changes in tax law and ongoing tax audits; risks related to future
legislation and regulation both in the United States and abroad;
risks related to the costs or liabilities associated with product
liability claims; our ability to attract, train and retain key
members of our leadership team and other qualified personnel; risks
related to the adequacy of our insurance coverage; risks related to
the global scope of our operations, including operations in
international and emerging markets; risks related to our exposure
to fluctuations in foreign currency exchange rates, interest rates
and inflation, including the impact on our debt service costs; our
ability to comply with various laws and regulations and the costs
associated with legal compliance; risks related to the outcome of
any litigation, government and regulatory proceedings,
investigations and inquiries; risks related to our ability to
protect or enforce our proprietary rights on which our business
depends or third-party intellectual property infringement claims;
liabilities associated with environmental, health and safety
matters; our ability to predict our future operational results;
risks associated with our limited history of operating as an
independent company; and the effects of COVID-19 or other health
epidemics, pandemics and similar outbreaks may have on our
business, results of operations or financial condition. Further
information on risks, uncertainties and other factors that could
affect our financial results are included in the filings we make
with the Securities and Exchange Commission (the “SEC”) from time
to time, including our Annual Report on Form 10-K, our Quarterly
Reports on Form 10-Q and other periodic reports filed or to be
filed with the SEC.
You should not rely on these forward-looking statements, as
actual outcomes and results may differ materially from those
contemplated by these forward- looking statements as a result of
such risks and uncertainties. All forward-looking statements in
this press release are based on information available to us as of
the date hereof, and we do not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were
made.
Use of Non-GAAP Financial Information
We believe that the presentation of non-GAAP financial
information provides important supplemental information to
management and investors regarding financial and business trends
relating to our financial condition and results of operations. For
further information regarding these non-GAAP measures, including
the reconciliation of these non-GAAP financial measures to their
most directly comparable GAAP financial measures, please refer to
the financial tables below, as well as the “Reconciliation of
Non-GAAP Financial Measures” section of this press release.
Channels for Disclosure of Information
Mirion intends to announce material information to the public
through the Mirion Investor Relations website ir.mirion.com, SEC
filings, press releases, public conference calls and public
webcasts. Mirion uses these channels, as well as social media, to
communicate with its investors, customers, and the public about the
company, its offerings, and other issues. It is possible that the
information Mirion posts on social media could be deemed to be
material information. As such, Mirion encourages investors, the
media, and others to follow the channels listed above, including
the social media channels listed on Mirion’s investor relations
website, and to review the information disclosed through such
channels. Any updates to the list of disclosure channels through
which Mirion will announce information will be posted on the
investor relations page on Mirion’s website.
About Mirion
Mirion Technologies is a leading provider of detection,
measurement, analysis and monitoring solutions to the nuclear,
defense, medical and research end markets. The organization aims to
harness its unrivaled knowledge of ionizing radiation for the
greater good of humanity. Headquartered in Atlanta (GA – USA),
Mirion employs around 2,700 people and operates in 12 countries.
For more information, and for the latest news and content from
Mirion, visit ir.mirion.com.
Mirion Technologies,
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(In millions, except share
data)
March 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
88.3
$
73.5
Restricted cash
0.7
0.5
Accounts receivable, net of allowance for
doubtful accounts
152.0
171.2
Costs in excess of billings on uncompleted
contracts
67.2
50.0
Inventories
157.5
143.3
Prepaid expenses and other current
assets
32.6
33.6
Assets held for sale
10.1
8.5
Total current assets
508.4
480.6
Property, plant, and equipment, net
126.0
124.3
Operating lease right-of-use assets
38.7
40.1
Goodwill
1,424.9
1,418.0
Intangible assets, net
619.8
650.4
Restricted cash
1.1
1.0
Other assets
15.9
24.3
Total assets
$
2,734.8
$
2,738.7
LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT)
Current liabilities:
Accounts payable
$
66.0
$
67.7
Deferred contract revenue
78.2
83.0
Notes payable to third-parties,
current
5.8
5.3
Operating lease liability, current
8.4
8.5
Accrued expenses and other current
liabilities
74.9
79.8
Total current liabilities
233.3
244.3
Notes payable to third-parties,
non-current
679.3
801.5
Warrant liabilities
43.9
30.5
Operating lease liability, non-current
32.7
34.3
Deferred income taxes, non-current
109.3
116.3
Other liabilities
48.3
44.6
Total liabilities
1,146.8
1,271.5
Commitments and contingencies (Note
11)
Stockholders’ equity (deficit):
Class A common stock; $0.0001 par value,
500,000,000 shares authorized; 217,687,852 shares issued and
outstanding at March 31, 2023; 200,298,834 shares issued and
outstanding at December 31, 2022
—
—
Class B common stock; $0.0001 par value,
100,000,000 shares authorized; 7,847,333 issued and outstanding at
March 31, 2023 and 8,040,540 issued and outstanding at December 31,
2022
—
—
Additional paid-in capital
2,039.4
1,882.4
Accumulated deficit
(450.4
)
(408.5
)
Accumulated other comprehensive loss
(67.7
)
(75.7
)
Mirion Technologies, Inc. stockholders’
equity
1,521.3
1,398.2
Noncontrolling interests
66.7
69.0
Total stockholders’ equity
1,588.0
1,467.2
Total liabilities and stockholders’
equity
$
2,734.8
$
2,738.7
Mirion Technologies,
Inc.
Condensed Consolidated
Statements of Operations
(Unaudited)
(In millions, except per share
data)
Three Months Ended
March 31,
2023
2022
Revenues:
Product
$
132.4
$
116.9
Service
49.7
46.3
Total revenues
182.1
163.2
Cost of revenues:
Product
76.8
74.8
Service
26.2
24.0
Total cost of revenues
103.0
98.8
Gross profit
79.1
64.4
Operating expenses:
Selling, general and administrative
85.1
90.9
Research and development
7.6
7.1
Total operating expenses
92.7
98.0
Loss from operations
(13.6
)
(33.6
)
Other expense (income):
Third party interest expense
14.9
7.9
Loss on debt extinguishment
2.6
—
Foreign currency (gain) loss, net
(0.3
)
1.5
Increase (decrease) in fair value of
warrant liabilities
13.4
(19.9
)
Other income, net
(0.2
)
—
Loss before income taxes
(44.0
)
(23.1
)
Benefit from income taxes
(1.1
)
(4.1
)
Net loss
(42.9
)
(19.0
)
Loss attributable to noncontrolling
interests
(1.0
)
(1.3
)
Net loss attributable to Mirion
Technologies, Inc.
$
(41.9
)
$
(17.7
)
Net loss per common share attributable to
Mirion Technologies, Inc. stockholders — basic and diluted
$
(0.22
)
$
(0.10
)
Weighted average common shares outstanding
— basic and diluted
187.701
180.774
Mirion Technologies,
Inc.
Unaudited Consolidated Statements
of Cash Flows
(In millions)
Three Months Ended
March 31,
2023
2022
OPERATING ACTIVITIES:
Net loss
$
(42.9
)
$
(19.0
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization expense
41.3
44.9
Stock-based compensation expense
5.5
7.9
Amortization of debt issuance costs
3.5
1.0
Provision for doubtful accounts
0.8
(0.2
)
Inventory obsolescence write down
1.0
0.2
Change in deferred income taxes
(7.1
)
(10.4
)
Loss (gain) on disposal of property, plant
and equipment
0.8
(0.7
)
Loss (gain) on foreign currency
transactions
(0.3
)
1.5
Increase (decrease) in fair values of
warrant liabilities
13.4
(19.9
)
Other
—
0.1
Changes in operating assets and
liabilities:
Accounts receivable
19.1
17.6
Costs in excess of billings on uncompleted
contracts
(8.6
)
(5.2
)
Inventories
(13.9
)
(0.9
)
Prepaid expenses and other current
assets
(0.3
)
1.7
Accounts payable
(2.5
)
(6.8
)
Accrued expenses and other current
liabilities
(8.5
)
(0.9
)
Deferred contract revenue
(3.6
)
(0.3
)
Other assets
0.4
—
Other liabilities
(0.8
)
0.8
Net cash (used in) provided by
operating activities
(2.7
)
11.4
INVESTING ACTIVITIES:
Purchases of property, plant, and
equipment and badges
(7.5
)
(8.7
)
Sales of property, plant, and
equipment
—
0.8
Net cash used in investing
activities
(7.5
)
(7.9
)
FINANCING ACTIVITIES:
Issuances of common stock
150.0
—
Common stock issuance costs
(0.2
)
—
Term loan principal repayments
(125.0
)
—
Principal repayments
—
(0.4
)
Other financing
(0.2
)
(0.2
)
Net cash provided by (used in)
financing activities
24.6
(0.6
)
Effect of exchange rate changes on
cash, cash equivalents, and restricted cash
0.7
(1.0
)
Net increase in cash, cash equivalents,
and restricted cash
15.1
1.9
Cash, cash equivalents, and restricted
cash at beginning of period
75.0
85.3
Cash, cash equivalents, and restricted
cash at end of period
$
90.1
$
87.2
Share Count
Consists of 198,937,852 shares of Class A common stock
outstanding as of March 31, 2023. Excludes (1) 7,847,333 shares of
Class B common stock outstanding as of March 31, 2023; 18,750,000
founder shares which are shares of Class A common stock subject to
vesting in three equal tranches, based on the volume-weighted
average price of our Class A common stock being greater than or
equal to $12.00, $14.00 and $16.00 per share for any 20 trading
days in any 30 consecutive trading day period, and such shares will
be forfeited to us if they fail to vest within five years after
October 20, 2021; (2) 27,249,779 shares of Class A common stock
issuable upon the exercise of 8,500,000 private placement warrants
and 18,749,779 publicly-traded warrants; (3) 2.3 million shares of
Class A common stock underlying restricted stock units and 0.6
million shares of Class A common stock underlying performance stock
units; and (4) any shares issuable from awards under our 2021
Omnibus Incentive Plan, which had 28,707,269 shares reserved for
future equity awards (subject to annual automatic increases). The
7,847,333 shares of Class B common stock are paired on a
one-for-one basis with shares of Class B common stock of Mirion
Intermediate Co., Inc. (the "paired interests"). Holders of the
paired interests have the right to have their interests redeemed
for, at the option of Mirion, shares of Class A common stock on a
one-for-one basis or cash based on a trailing stock price average.
All share data is of March 31, 2023 unless otherwise noted.
Reconciliation of Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP,
we believe the following non-GAAP measures are useful in evaluating
our operating performance. We use the following non-GAAP financial
information to evaluate our ongoing operations and for internal
planning and forecasting purposes. We believe that non-GAAP
financial information, when taken collectively, may be helpful to
investors because it provides consistency and comparability with
past financial performance. However, non-GAAP financial information
is presented for supplemental informational purposes only, has
limitations as an analytical tool, and should not be considered in
isolation or as a substitute for financial information presented in
accordance with GAAP. Other companies, including companies in our
industry, may calculate similarly titled non-GAAP measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison.
Investors are encouraged to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measures
and not rely on any single financial measure to evaluate our
business.
Organic Revenues is defined as Revenues excluding the
impact of foreign exchange rates as well as mergers and
acquisitions in the period.
Adjusted EBITDA is defined as net income before interest
expense, income tax expense, depreciation and amortization adjusted
to remove the impact of foreign currency gains and losses,
amortization of acquired intangible assets, the impact of purchase
accounting on the recognition of deferred revenue, changes in the
fair value of warrants, certain non-operating expenses (certain
purchase accounting impacts related to revenues and inventory,
restructuring and costs to achieve operational synergies, merger
and acquisition expenses and IT project implementation expenses),
stock-based compensation expense, debt extinguishment and income
tax impacts of these adjustments.
Adjusted Net Income is defined as GAAP net income
adjusted for foreign currency gains and losses, amortization of
acquired intangible assets, the impact of purchase accounting on
the recognition of deferred revenue, changes in the fair value of
warrants, certain non-operating expenses (certain purchase
accounting impacts related to revenues and inventory, restructuring
and costs to achieve operational synergies, merger and acquisition
expenses and IT project implementation expenses), stock-based
compensation expense, debt extinguishment and income tax impacts of
these adjustments.
Adjusted EPS is defined as adjusted net income divided by
weighted average common shares outstanding — basic and diluted.
Adjusted Free Cash Flow is defined as free cash flow
adjusted to include the impact of cash used to fund non-operating
expenses. We believe that the inclusion of supplementary
adjustments to free cash flow applied in presenting adjusted free
cash flow is appropriate to provide additional information to
investors about our cash flows that management utilizes on an
ongoing basis to assess our ability to generate cash for use in
acquisitions and other investing and financing activities.
Free Cash Flow is defined as U.S. GAAP net cash provided
by operating activities adjusted to include the impact of purchases
of property, plant, and equipment and purchases of badges.
Net Leverage is defined as Net Debt (debt minus cash and
cash equivalents) divided by Adjusted EBITDA plus contributions to
Adjusted EBITDA if acquisitions made during the applicable period
had been made before the start of the applicable period.
Operating Metrics
Order Growth is defined as the amount of revenue earned
in a given period and estimated to be earned in future periods from
contracts entered into in a given period as compared with such
amount for a prior period. Order growth was calculated excluding
the impact of the Hanhikivi project termination in the second
quarter of 2022. Foreign exchange rates are based on the applicable
rates as reported for the time period.
The following tables presents reconciliations of certain
non-GAAP financial measures for the applicable periods.
Mirion Technologies,
Inc.
Reconciliation of Adjusted
EBITDA
(In millions)
Three Months Ended
March 31,
2023
2022
Income from operations
$
(13.6
)
$
(33.6
)
Amortization
33.6
38.8
Depreciation - core
6.2
4.6
Depreciation - Mirion Business Combination
step-up
1.6
1.6
Cost of revenues impact from inventory
valuation purchase accounting
—
6.3
Stock based compensation
5.6
7.8
Non-operating expenses
3.1
9.4
Other Income / Expense
0.1
—
Adjusted EBITDA
$
36.6
$
34.9
Income from operations as % of revenue
(7.5
)%
(20.6
)%
Adjusted EBITDA as % of revenue
20.1
%
21.4
%
Mirion Technologies,
Inc.
Reconciliation of Adjusted
Earnings per Share
(In millions, except per share
values)
Three Months Ended
March 31,
2023
2022
Net loss attributable to Mirion
Technologies, Inc.
$
(41.9
)
$
(17.7
)
Loss attributable to non-controlling
interests
(1.0
)
(1.3
)
GAAP net loss
$
(42.9
)
$
(19.0
)
Cost of revenues impact from inventory
valuation purchase accounting
—
6.3
Foreign currency (gain) loss, net
(0.3
)
1.5
Amortization of acquired intangibles
33.6
38.8
Stock based compensation
5.6
7.8
Change in fair value of warrant
liabilities
13.4
(19.9
)
Debt extinguishment
2.6
—
Non-operating expenses
3.0
9.4
Tax impact of adjustments above
(4.4
)
(7.4
)
Adjusted Net Income
$
10.6
$
17.5
Weighted average common shares
outstanding — basic and diluted
187.701
180.774
Dilutive Potential Common Shares -
RSU's
0.248
—
Adjusted weighted average common shares
— diluted
187.949
180.774
GAAP loss per share
$
(0.22
)
$
(0.10
)
Adjusted earnings per share
$
0.06
$
0.10
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503005204/en/
For investor inquiries: Jerry Estes ir@mirion.com
For media inquiries: Erin Schesny media@mirion.com
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