- Revenues for the second quarter increased 12.2% to $197.2
million, compared to $175.8 million in the same period last
year.
- Net loss was $28.4 million in the second quarter, compared to a
net loss of 59.3 million in the same period last year. Adjusted
EBITDA was $44.3 million, a 4.0% increase from $42.6 million in the
same period last year.
- Net loss per share for the second quarter was $0.14, compared
to $0.32 in the second quarter of 2022. Adjusted earnings per share
for the quarter was $0.08, compared to $0.13 in the same period
last year.
- The company updated full year 2023 guidance and now expects
revenue growth of 8% to 10%, adjusted EBITDA of $175 million to
$185 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 second quarter ended June 30, 2023.
“We posted strong second quarter results, headlined by our
fourth consecutive quarter of backlog expansion and solid revenue
growth in both reporting segments,” stated Thomas Logan, Mirion’s
Chief Executive Officer. “For the balance of the year, improving
cash generation and margin expansion are my top priorities, and I
believe we have the right strategy in place to improve our
performance in these areas.”
“Our team delivered another solid quarter, positioning Mirion
well for the second half of the year,” added Larry Kingsley,
Chairman of Mirion’s Board. “We continue to see robust demand
across our end markets and our order flow remains strong. The year
is progressing well and we have a strong roadmap in place to
deliver for our customers and our shareholders in the second
half.”
Updated 2023 Outlook
“Top-line performance was very strong in the first half and we
expect to see continued momentum through the remainder of the year,
especially within the Technologies group,” continued Mr. Logan. “As
such, we are raising and tightening our revenue growth outlook. We
are also expecting Adjusted EBITDA margin improvement in the second
half as mix headwinds ease, and we are working hard to improve our
net working capital dynamics to drive better Adjusted Free Cash
Flow conversion.”
Mirion is updating its guidance for the fiscal year and 12-month
period ending December 31, 2023:
- Revenue growth of 8% - 10%, compared to 6% - 9% previously
- Organic revenue growth of 6% - 8%, compared to 4% - 7%
previously
- Adjusted EBITDA of $175 million - $185 million, compared to
$172 million - $182 million previously
- Adjusted EPS of $0.28 - $0.34, which is unchanged
- Adjusted free cash flow of $45 million - $75 million, compared
to $58 million - $78 million previously
Inorganic revenue growth is expected to be approximately 1.0%,
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,
acquisitions and divestitures.
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 $55 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, 2.1 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)
(all numbers as of June 30, 2023))
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 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, August 2, 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 August 16, 2023. Participants may
access the replay at 1-844-512-2921, international callers may use
1-412-317-6671, and enter access code 13740107. 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, especially
related to matters affecting Russia; 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.
Non-GAAP financial information is not a substitute for GAAP
financial information and undue reliance should not be placed on
such non-GAAP financial information. In addition, similarly titled
items used by other companies may not be comparable due to
variations in how they are calculated and how terms are
defined.
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 (NYSE: MIR) is a global leader in radiation safety,
science and medicine, empowering innovations that deliver vital
protection while harnessing the transformative potential of
ionizing radiation across a diversity of end markets. The Mirion
Technologies group provides proven radiation safety technologies
that operate with precision – for essential work within R&D
labs, critical nuclear facilities, and on the front lines. The
Mirion Medical group solutions help enhance the delivery and ensure
safety in healthcare, powering the fields of Nuclear Medicine,
Radiation Therapy QA, Occupational Dosimetry, and Diagnostic
Imaging. Headquartered in Atlanta (GA – USA), Mirion employs
approximately 2,700 people and operates in 12 countries. Learn more
at mirion.com.
Mirion Technologies, Inc. Condensed
Consolidated Balance Sheets (Unaudited) (In millions,
except share data)
June 30, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
87.4
$
73.5
Restricted cash
0.6
0.5
Accounts receivable, net of allowance for
doubtful accounts
139.1
171.2
Costs in excess of billings on uncompleted
contracts
81.7
50.0
Inventories
161.8
143.3
Prepaid expenses and other current
assets
32.5
33.6
Assets held for sale
—
8.5
Total current assets
503.1
480.6
Property, plant, and equipment, net
128.3
124.3
Operating lease right-of-use assets
37.1
40.1
Goodwill
1,425.2
1,418.0
Intangible assets, net
586.7
650.4
Restricted cash
1.1
1.0
Other assets
14.8
24.3
Total assets
$
2,696.3
$
2,738.7
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
61.0
$
67.7
Deferred contract revenue
74.1
83.0
Notes payable to third-parties,
current
5.7
5.3
Operating lease liability, current
7.4
8.5
Accrued expenses and other current
liabilities
76.3
79.8
Total current liabilities
224.5
244.3
Notes payable to third-parties,
non-current
677.8
801.5
Warrant liabilities
49.6
30.5
Operating lease liability, non-current
30.3
34.3
Deferred income taxes, non-current
97.6
116.3
Other liabilities
52.0
44.6
Total liabilities
1,131.8
1,271.5
Commitments and contingencies (Note
11)
Stockholders’ equity (deficit):
Class A common stock; $0.0001 par value,
500,000,000 shares authorized; 217,933,337 shares issued and
outstanding at June 30, 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
June 30, 2023 and 8,040,540 issued and outstanding at December 31,
2022
—
—
Treasury stock, at cost; 87,647 shares at
June 30, 2023 and 0 shares at December 31, 2022
(0.7
)
—
Additional paid-in capital
2,045.6
1,882.4
Accumulated deficit
(478.1
)
(408.5
)
Accumulated other comprehensive loss
(68.3
)
(75.7
)
Mirion Technologies, Inc. stockholders’
equity
1,498.5
1,398.2
Noncontrolling interests
66.0
69.0
Total stockholders’ equity
1,564.5
1,467.2
Total liabilities and stockholders’
equity
$
2,696.3
$
2,738.7
Mirion Technologies, Inc. Condensed
Consolidated Statements of Operations (Unaudited) (In
millions, except per share data)
Three Months Ended June 30,
2023
Three Months Ended June 30,
2022
Six Months Ended June 30,
2023
Six Months Ended June 30,
2022
Revenues:
Product
146.6
130.3
279.0
$
247.2
Service
50.6
45.5
100.3
91.8
Total revenues
197.2
175.8
379.3
339.0
Cost of revenues:
Product
81.8
73.6
158.6
148.4
Service
27.4
23.2
53.6
47.2
Total cost of revenues
109.2
96.8
212.2
195.6
Gross profit
88.0
79.0
167.1
143.4
Operating expenses:
Selling, general and administrative
84.0
91.0
169.1
181.9
Research and development
8.4
7.4
16.0
14.5
Goodwill impairment
—
55.2
—
55.2
Loss on disposal of business
6.2
—
6.2
—
Total operating expenses
98.6
153.6
191.3
251.6
Loss from operations
(10.6
)
(74.6
)
(24.2
)
(108.2
)
Other expense (income):
Third party interest expense
13.6
8.4
28.5
16.3
Loss on debt extinguishment
—
—
2.6
—
Foreign currency (gain) loss, net
(0.2
)
3.3
(0.5
)
4.8
Increase (decrease) in fair value of
warrant liabilities
5.7
(19.6
)
19.1
(39.5
)
Other expense (income), net
(0.1
)
—
(0.3
)
—
Loss before income taxes
(29.6
)
(66.7
)
(73.6
)
(89.8
)
Benefit from income taxes
(1.2
)
(7.4
)
(2.3
)
(11.5
)
Net loss
(28.4
)
(59.3
)
(71.3
)
(78.3
)
Loss attributable to noncontrolling
interests
(0.7
)
(0.7
)
(1.7
)
(2.0
)
Net loss attributable to Mirion
Technologies, Inc.
$
(27.7
)
$
(58.6
)
$
(69.6
)
$
(76.3
)
Net loss per common share attributable to
Mirion Technologies, Inc. — basic and diluted
$
(0.14
)
$
(0.32
)
$
(0.36
)
$
(0.42
)
Weighted average common shares outstanding
— basic and diluted
199.181
180.992
193.439
180.884
Mirion Technologies, Inc. Unaudited
Consolidated Statements of Cash Flows (In millions)
Six Months Ended June 30,
2023
Six Months Ended June 30,
2022
OPERATING ACTIVITIES:
Net loss
$
(71.3
)
$
(78.3
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization expense
82.2
89.8
Stock-based compensation expense
11.5
16.4
Amortization of debt issuance costs
4.2
2.3
Provision for doubtful accounts
1.4
—
Inventory obsolescence write down
1.4
0.5
Change in deferred income taxes
(18.4
)
(21.8
)
Loss (gain) on disposal of property, plant
and equipment
0.2
(0.4
)
(Gain) loss on foreign currency
transactions
(0.5
)
4.8
Increase (decrease) in fair values of
warrant liabilities
19.1
(39.5
)
Amortization of inventory step-up
—
6.3
Goodwill impairment
—
55.2
Loss on disposal of business
6.2
—
Other
(0.6
)
0.1
Changes in operating assets and
liabilities:
Accounts receivable
29.3
25.5
Costs in excess of billings on uncompleted
contracts
(21.0
)
(16.9
)
Inventories
(18.1
)
(18.3
)
Prepaid expenses and other current
assets
(0.1
)
—
Accounts payable
(6.2
)
0.3
Accrued expenses and other current
liabilities
(5.4
)
1.5
Deferred contract revenue and
liabilities
(7.8
)
(3.3
)
Other assets
—
0.1
Other liabilities
(1.7
)
3.7
Net cash provided by operating
activities
4.4
28.0
Proceeds from sale of business
1.0
—
Purchases of property, plant, and
equipment and badges
(15.8
)
(15.3
)
Proceeds from net investment hedge
derivative contracts
1.9
—
Sales of property, plant, and
equipment
—
0.8
Net cash used in investing
activities
(12.9
)
(14.5
)
FINANCING ACTIVITIES:
Issuances of common stock
150.0
—
Common stock issuance costs
(0.2
)
—
Stock repurchased to satisfy tax
withholding for vesting restricted stock units
(0.4
)
—
Principal repayments
(127.3
)
(2.1
)
Other financing
(0.3
)
(0.3
)
Net cash provided by (used in)
financing activities
21.8
(2.4
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
0.8
(4.4
)
Net increase in cash, cash equivalents,
and restricted cash
14.1
6.7
Cash, cash equivalents, and restricted
cash at beginning of period
75.0
85.3
Cash, cash equivalents, and restricted
cash at end of period
$
89.1
$
92.0
Share Count
Consists of 199,183,337 shares of Class A common stock
outstanding as of June 30, 2023. Excludes (1) 7,847,333 shares of
Class B common stock outstanding as of June 30, 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) 2.1 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 28,721,923 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 June 30, 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, acquisitions
and divestitures 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,
acquisition and divestiture 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, acquisition and
divestiture 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
June 30,
2023
2022
Income (Loss) from Operations
$
(10.6
)
$
(74.6
)
Amortization
33.2
37.5
Depreciation - core
6.0
5.6
Depreciation - Mirion Business Combination
step-up
1.6
1.7
Stock compensation
6.0
8.5
Goodwill impairment
—
55.2
Non-operating expenses
8.1
8.4
Other income/expense
—
0.3
Adjusted EBITDA
$
44.3
$
42.6
Income from operations as a % of
Revenue
(5.4
)%
(42.4
)%
Adjusted EBITDA as a % of Adjusted
Revenue
22.5
%
24.2
%
Mirion Technologies, Inc. Reconciliation
of Adjusted Earnings per Share (In millions, except per share
values)
Three Months Ended
June 30,
2023
2022
Net loss attributable to Mirion
Technologies, Inc.
$
(27.7
)
$
(58.6
)
Loss attributable to non-controlling
interests
(0.7
)
(0.7
)
GAAP net loss
$
(28.4
)
$
(59.3
)
Cost of revenues impact from inventory
valuation purchase accounting
—
—
Foreign currency (gain) loss, net
(0.2
)
3.3
Amortization of acquired intangibles
33.2
37.5
Stock based compensation
6.0
8.5
Change in fair value of warrant
liabilities
5.7
(19.6
)
Goodwill Impairment
—
55.2
Non-operating expenses
8.0
8.7
Tax impact of adjustments above
(8.8
)
(9.9
)
Adjusted Net Income
$
15.5
$
24.4
Weighted average common shares
outstanding — basic and diluted
199.181
180.992
Dilutive Potential Common Shares -
RSU's
0.264
0.031
Adjusted weighted average common shares
— diluted
199.445
181.023
GAAP loss per share
$
(0.14
)
$
(0.32
)
Adjusted earnings per share
$
0.08
$
0.13
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802583581/en/
For investor inquiries: Jerry Estes ir@mirion.com For
media inquiries: Erin Schesny media@mirion.com
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