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Catalent, Inc. Reports Second Quarter Fiscal 2018 Results

Catalent, Inc., a global provider of advanced delivery technologies and development solutions for drugs, biologics, and consumer health products, today announced financial results for the second quarter of fiscal 2018, which ended December 31, 2017.

Second quarter 2018 revenue of $606.3 million increased 25 percent as reported and 22 percent in constant currency from $483.7 million reported in the second quarter a year ago. For the first six months of fiscal year 2018, revenue was $1,150.2 million and increased 24 percent as reported and 22 percent in constant currency, compared to the $925.9 million recorded in the prior-year period.

All three of the company’s reporting segments posted constant-currency revenue growth for the second quarter and year-to-date period when compared to the prior year.

Second quarter 2018 net loss was $21.9 million, or $0.16 per diluted share, compared to net earnings of $17.4 million, or $0.14 per diluted share, in the second quarter a year ago. For the first six months of fiscal year 2018, net loss was $18.1 million, or $0.14 per diluted share, compared to net earnings of $22.0 million, or $0.17 per diluted share, in the same period of the prior year.

During the second quarter, the company recorded a one-time net tax charge of $46.0 million as a provisional estimate of the net accounting impact of the recently enacted U.S. tax law changes.

Second quarter 2018 EBITDA from continuing operations of $102.0 million, as referenced in the GAAP to non-GAAP reconciliation provided later in this release, increased 20 percent from $85.2 million in the second quarter a year ago. For the first six months of fiscal year 2018, EBITDA from continuing operations was $167.2 million, an increase of 13 percent compared to the $147.9 million recorded in the prior-year period.

Second quarter 2018 Adjusted EBITDA (see the non-GAAP reconciliation for a discussion of this metric) was $139.3 million, or 23.0 percent of revenue, compared to $98.1 million, or 20.3 percent of revenue, in the second quarter a year ago. This represents an increase of 42 percent as reported, and an increase of 39 percent on a constant-currency basis.

Second quarter 2018 Adjusted Net Income (see the non-GAAP reconciliation) was $60.7 million, or $0.45 per diluted share, compared to Adjusted Net Income of $34.7 million, or $0.27 per diluted share, in the second quarter a year ago.

“We’re pleased with our performance during the second quarter, where we recorded strong revenue growth on a constant-currency basis across all three of our reporting segments,” said John Chiminski, chairman, president and chief executive officer of Catalent, Inc. “The integration of the Cook Pharmica acquisition, which closed during the second quarter, is progressing according to plan and builds upon the successful integration of softgel developer Accucaps last year.

"The acquisition of Cook Pharmica significantly strengthened our position as a leader in biologics development and manufacturing, and the growth prospects for Catalent's biologics business remain extremely attractive," Chiminski continued.

New CFO Named

Catalent also announced the appointment of senior executive Wetteny Joseph as its senior vice president and chief financial officer, effective February 6, 2018, succeeding Matt Walsh, who has announced his desire to leave the company to assume the position of chief financial officer of Allergan plc.

Joseph has more than 20 years of managerial, finance, accounting, and strategic experience, most recently as the president of Catalent’s Clinical Supply Services business unit. He joined the company in 2008 as its vice president and corporate controller, and held senior finance positions through 2015, when he was chosen to lead Clinical Supply Services.

(Source: Catalent, Inc.)

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