|
|
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Item 2.02 |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
Exhibit
Number
|
Description
|
|
Press release dated May 2, 2024, of Hologic, Inc. announcing its financial results for the second quarter ended March 30, 2024.
|
||
104
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
|
Date: May 2, 2024
|
HOLOGIC, INC.
|
|
By:
|
/s/ Karleen M. Oberton
|
|
Karleen M. Oberton
|
||
Chief Financial Officer
|
• |
Revenue of $1,017.8 million decreased (0.8%) for the quarter, or (0.9%) in constant currency, primarily driven by lower sales of COVID-19 assays compared to the prior year period,
as expected.
|
• |
Excluding COVID-19 revenues, total organic revenue grew 5.0%, or 4.9% on a constant currency basis.
|
• |
Diagnostics revenue decreased (3.1%), or (3.2%) in constant currency, primarily driven by lower sales of COVID-19 assays compared to the prior year period.
|
• |
Excluding COVID-19 revenues, Diagnostics revenue grew 9.8% on an organic, constant currency basis.
|
• |
Molecular Diagnostics revenue declined (5.7%), or (5.8%) in constant currency, primarily driven by lower sales of COVID-19 assays compared to the prior year period.
|
• |
Excluding COVID-19 revenues, Molecular Diagnostics revenue grew 10.7% on an organic, constant currency basis.
|
• |
Breast Health revenue decreased (0.2%), or (0.3%) in constant currency, primarily driven by the SSI divestiture and partially offset by capital sales.
|
• |
Excluding SSI, Breast Health revenue increased 1.1%, or 1.0% in constant currency.
|
• |
Surgical revenue grew 7.7%, or 7.4% in constant currency, primarily driven by strong results from MyoSure and Fluent Fluid Management.
|
• |
Cash flow from operations remained strong in the second quarter at $292.4 million.
|
• |
On April 29, the Company announced its agreement to acquire Endomagnetics Ltd, a provider of breast cancer surgery technologies, for approximately $310 million, as the Company
seeks to expand and diversify its interventional breast business.
|
GAAP
|
Non-GAAP
|
||||||
Q2’24
|
Q2’23
|
Change
Increase
(Decrease)
|
Q2’24
|
Q2’23
|
Change
Increase
(Decrease)
|
||
Revenues
|
1,017.8
|
1,026.5
|
(0.8%)
|
1,017.8
|
1,026.5
|
(0.8%)
|
|
Gross Margin
|
53.3%
|
57.1%
|
(380 bps)
|
60.7%
|
62.1%
|
(140 bps)
|
|
Operating Expenses
|
331.9
|
313.7
|
5.8%
|
307.6
|
317.0
|
(3.0%)
|
|
Operating Margin
|
20.7%
|
26.5%
|
(580 bps)
|
30.4%
|
31.3%
|
(90 bps)
|
|
Net Margin
|
16.7%
|
21.3%
|
(460 bps)
|
24.0%
|
25.9%
|
(190 bps)
|
|
Diluted EPS
|
$0.72
|
$0.87
|
(17.2%)
|
$1.03
|
$1.06
|
(2.8%)
|
Increase/(Decrease)
|
||||||||||||||||||||||||||||
$ in millions
|
Q2’24
|
Q2’23
|
Global Reported Change
|
Global
Constant Currency Change
|
U.S.
Reported Change
|
International
Reported
Change
|
International
Constant Currency Change
|
|||||||||||||||||||||
Diagnostics
|
||||||||||||||||||||||||||||
Cytology and Perinatal
|
$
|
120.5
|
$
|
111.9
|
7.7
|
%
|
7.9
|
%
|
2.4
|
%
|
16.0
|
%
|
16.5
|
%
|
||||||||||||||
Molecular Diagnostics
|
$
|
322.7
|
$
|
342.2
|
(5.7
|
%)
|
(5.8
|
%)
|
(2.9
|
%)
|
(15.0
|
%)
|
(15.4
|
%)
|
||||||||||||||
Blood Screening
|
$
|
6.9
|
$
|
10.6
|
(34.9
|
%)
|
(34.9
|
%)
|
(34.9
|
%)
|
N/A
|
N/A
|
||||||||||||||||
Total Diagnostics
|
$
|
450.1
|
$
|
464.7
|
(3.1
|
%)
|
(3.2
|
%)
|
(2.8
|
%)
|
(4.1
|
%)
|
(4.2
|
%)
|
||||||||||||||
Organic Diagnostics ex. COVID-19
|
$
|
390.0
|
$
|
355.0
|
9.9
|
%
|
9.8
|
%
|
11.1
|
%
|
6.6
|
%
|
6.5
|
%
|
||||||||||||||
Breast Health
|
||||||||||||||||||||||||||||
Breast Imaging
|
$
|
306.7
|
$
|
311.5
|
(1.5
|
%)
|
(1.6
|
%)
|
0.6
|
%
|
(8.0
|
%)
|
(8.3
|
%)
|
||||||||||||||
Interventional Breast Solutions
|
$
|
77.9
|
$
|
73.9
|
5.4
|
%
|
5.5
|
%
|
1.1
|
%
|
24.5
|
%
|
24.5
|
%
|
||||||||||||||
Total Breast Health
|
$
|
384.6
|
$
|
385.4
|
(0.2
|
%)
|
(0.3
|
%)
|
0.7
|
%
|
(3.0
|
%)
|
(3.3
|
%)
|
||||||||||||||
GYN Surgical
|
$
|
156.0
|
$
|
144.8
|
7.7
|
%
|
7.4
|
%
|
1.7
|
%
|
29.5
|
%
|
28.1
|
%
|
||||||||||||||
Skeletal Health
|
$
|
27.1
|
$
|
31.6
|
(14.2
|
%)
|
(14.3
|
%)
|
(19.3
|
%)
|
(6.5
|
%)
|
(6.5
|
%)
|
||||||||||||||
Total
|
$
|
1,017.8
|
$
|
1,026.5
|
(0.8
|
%)
|
(0.9
|
%)
|
(1.2
|
%)
|
0.3
|
%
|
(0.1
|
%)
|
||||||||||||||
Organic Revenue (definition above)
|
$
|
1,009.8
|
$
|
1,009.8
|
0.0
|
%
|
(0.1
|
%)
|
(0.5
|
%)
|
1.6
|
%
|
1.2
|
%
|
||||||||||||||
Organic Revenue ex. COVID-19
|
$
|
956.6
|
$
|
910.8
|
5.0
|
%
|
4.9
|
%
|
4.5
|
%
|
6.7
|
%
|
6.3
|
%
|
• |
U.S. revenue of $759.4 million decreased (1.2%). International revenue of $258.4 million increased 0.3%, but decreased (0.1%) in constant currency.
|
• |
GAAP gross margin of 53.3% decreased (380) basis points primarily due to the decline in COVID-19 assay sales compared to the prior year period. Non-GAAP gross margin of 60.7%
decreased (140) basis points, also primarily due to the decline in COVID-19 assay sales compared to the prior year period.
|
• |
GAAP operating margin of 20.7% decreased (580) basis points primarily due to the decline in COVID-19 assay sales compared to the prior year period. Non-GAAP operating margin of
30.4% decreased (90) basis points, also primarily due to lower COVID-19 assay revenue.
|
• |
GAAP net income of $169.9 million decreased (22.2%) and Non-GAAP net income of $244.1 million decreased (8.1%). Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) was $335.6 million, a decrease of (2.8%).
|
• |
COVID-19 revenues, which consist of COVID-19 assay revenue of $23.3 million, and other COVID-19 related revenue plus revenue from discontinued products of $29.9 million, decreased
(46.3%) in constant currency.
|
• |
Total principal debt outstanding at the end of the second quarter was $2.57 billion. The Company ended the quarter with cash and equivalents of $2.2 billion, and a net leverage
ratio (net debt over EBITDA) of 0.4 times. The Company’s adjusted net leverage ratio in the second quarter was 0.3 times.
|
• |
On a trailing 12-month basis, Return on Invested Capital (ROIC) was 8.4%. Adjusted ROIC was 13.4%, a decrease of (100) basis points compared to the prior year period.
|
Current Guidance*
|
Previous Guidance
|
|||||||||
Guidance $
|
Reported %
Increase
(Decrease)
|
Constant
Currency %
Increase
(Decrease)
|
Organic excluding
COVID-19 %
Increase
|
Guidance $
|
||||||
Fiscal 2024
|
||||||||||
Revenue
|
$4,000 - $4,050
|
(0.8%) to 0.5%
|
(0.8%) to 0.4%
|
5.1% to 6.5%
|
$3,990-$4,065
|
|||||
GAAP EPS
|
$3.45 - $3.55
|
88.5% to 94.0%
|
$3.52-$3.67
|
|||||||
Non-GAAP EPS
|
$4.02 - $4.12
|
1.5% to 4.0%
|
$3.97-$4.12
|
|||||||
Q3 2024
|
||||||||||
Revenue
|
$992.5 - $1,007.5
|
0.8% to 2.4%
|
1.2% to 2.7%
|
4.0% to 5.6%
|
||||||
GAAP EPS
|
$0.80 - $0.87
|
600.0% to 643.8%
|
||||||||
Non-GAAP EPS
|
$0.98 - $1.05
|
5.4% to 12.9%
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
|||||||||||||
Revenues:
|
||||||||||||||||
Product
|
$
|
828.0
|
$
|
837.4
|
$
|
1,656.0
|
$
|
1,723.8
|
||||||||
Service and other
|
189.8
|
189.1
|
374.9
|
376.9
|
||||||||||||
Total revenues
|
1,017.8
|
1,026.5
|
2,030.9
|
2,100.7
|
||||||||||||
Cost of revenues:
|
||||||||||||||||
Product
|
308.6
|
292.1
|
615.7
|
588.3
|
||||||||||||
Amortization of acquired intangible assets
|
44.9
|
52.1
|
90.5
|
107.7
|
||||||||||||
Impairment of intangible asset
|
25.9
|
—
|
25.9
|
—
|
||||||||||||
Service and other
|
96.1
|
96.5
|
189.0
|
201.0
|
||||||||||||
Gross profit
|
542.3
|
585.8
|
1,109.8
|
1,203.7
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
74.6
|
74.0
|
141.4
|
148.8
|
||||||||||||
Selling and marketing
|
144.2
|
142.4
|
293.1
|
305.9
|
||||||||||||
General and administrative
|
100.4
|
100.8
|
212.2
|
209.3
|
||||||||||||
Amortization of acquired intangible assets
|
5.7
|
7.1
|
19.0
|
14.7
|
||||||||||||
Impairment of intangible assets
|
0.9
|
—
|
5.2
|
—
|
||||||||||||
Contingent consideration - fair value adjustment
|
—
|
(12.4
|
)
|
1.7
|
(12.4
|
)
|
||||||||||
Restructuring charges
|
6.1
|
1.8
|
28.6
|
2.9
|
||||||||||||
Total operating expenses
|
331.9
|
313.7
|
701.2
|
669.2
|
||||||||||||
Income from operations
|
210.4
|
272.1
|
408.6
|
534.5
|
||||||||||||
Interest income
|
24.0
|
31.5
|
51.9
|
52.1
|
||||||||||||
Interest expense
|
(32.3
|
)
|
(27.2
|
)
|
(58.3
|
)
|
(55.3
|
)
|
||||||||
Other income (expense), net
|
9.4
|
2.9
|
0.6
|
(12.9
|
)
|
|||||||||||
Income before income taxes
|
211.5
|
279.3
|
402.8
|
518.4
|
||||||||||||
Provision (benefit) for income taxes
|
41.6
|
60.8
|
(13.6
|
)
|
112.5
|
|||||||||||
Net income
|
$
|
169.9
|
$
|
218.5
|
$
|
416.4
|
$
|
405.9
|
||||||||
Net income per common share:
|
||||||||||||||||
Basic
|
$
|
0.72
|
$
|
0.88
|
$
|
1.76
|
$
|
1.64
|
||||||||
Diluted
|
$
|
0.72
|
$
|
0.87
|
$
|
1.74
|
$
|
1.63
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
235,890
|
247,730
|
237,258
|
247,524
|
||||||||||||
Diluted
|
237,562
|
249,793
|
238,888
|
249,537
|
March 30, 2024
|
September 30, 2023
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
2,180.0
|
$
|
2,722.5
|
||||
Accounts receivable, net
|
647.1
|
625.6
|
||||||
Inventory
|
649.2
|
617.6
|
||||||
Other current assets
|
312.4
|
206.9
|
||||||
Assets held-for-sale - current assets
|
—
|
11.9
|
||||||
Total current assets
|
3,788.7
|
4,184.5
|
||||||
Property, plant and equipment, net
|
524.8
|
517.0
|
||||||
Goodwill and intangible assets
|
4,044.3
|
4,169.9
|
||||||
Other assets
|
356.6
|
267.9
|
||||||
Total assets
|
$
|
8,714.4
|
$
|
9,139.3
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
37.4
|
$
|
287.0
|
||||
Accounts payable and accrued liabilities
|
709.2
|
712.9
|
||||||
Deferred revenue
|
208.0
|
199.2
|
||||||
Assets held-for-sale - current liabilities
|
—
|
8.2
|
||||||
Total current liabilities
|
954.6
|
1,207.3
|
||||||
Long-term debt, net of current portion
|
2,514.1
|
2,531.2
|
||||||
Deferred income taxes
|
18.4
|
20.2
|
||||||
Other long-term liabilities
|
382.9
|
363.7
|
||||||
Total stockholders' equity
|
4,844.4
|
5,016.9
|
||||||
Total liabilities and stockholders’ equity
|
$
|
8,714.4
|
$
|
9,139.3
|
|
Six Months Ended |
March 30, 2024
|
April 1, 2023
|
|||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$
|
416.4
|
$
|
405.9
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
52.6
|
44.3
|
||||||
Amortization of acquired intangible assets
|
109.5
|
122.4
|
||||||
Stock-based compensation expense
|
54.5
|
43.7
|
||||||
Deferred income taxes
|
(46.8
|
)
|
(61.6
|
)
|
||||
Intangible asset impairment charges
|
31.1
|
—
|
||||||
Contingent consideration fair value adjustments
|
1.7
|
(12.4
|
)
|
|||||
Other adjustments and non-cash items
|
23.0
|
29.6
|
||||||
Changes in operating assets and liabilities, excluding the effect of acquisitions and dispositions:
|
||||||||
Accounts receivable
|
(20.1
|
)
|
(81.8
|
)
|
||||
Inventory
|
(30.4
|
)
|
(56.1
|
)
|
||||
Prepaid income taxes
|
(115.3
|
)
|
8.3
|
|||||
Prepaid expenses and other assets
|
(12.5
|
)
|
10.5
|
|||||
Accounts payable
|
26.7
|
(13.2
|
)
|
|||||
Accrued expenses and other liabilities
|
13.3
|
(22.4
|
)
|
|||||
Deferred revenue
|
8.7
|
42.5
|
||||||
Net cash provided by operating activities
|
512.4
|
459.7
|
||||||
INVESTING ACTIVITIES
|
||||||||
Sale of business, net of cash disposed
|
(31.3
|
)
|
—
|
|||||
Capital expenditures
|
(35.5
|
)
|
(34.5
|
)
|
||||
Proceeds from the Department of Defense
|
—
|
20.5
|
||||||
Increase in equipment under customer usage agreements
|
(30.5
|
)
|
(26.7
|
)
|
||||
Strategic investments
|
(39.5
|
)
|
(10.0
|
)
|
||||
Other activity
|
(5.9
|
)
|
(6.7
|
)
|
||||
Net cash used in investing activities
|
(142.7
|
)
|
(57.4
|
)
|
||||
FINANCING ACTIVITIES
|
||||||||
Repayment of long-term debt
|
(268.8
|
)
|
(7.5
|
)
|
||||
Payment of contingent consideration
|
(2.6
|
)
|
(7.6
|
)
|
||||
Payment of deferred acquisition consideration
|
—
|
(0.8
|
)
|
|||||
Repurchases of common stock
|
(676.8
|
)
|
(150.0
|
)
|
||||
Proceeds from issuance of common stock pursuant to employee stock plans
|
18.4
|
28.4
|
||||||
Payment of minimum tax withholdings on net share settlements of equity awards
|
(16.3
|
)
|
(23.2
|
)
|
||||
Payments under finance lease obligations
|
(1.9
|
)
|
(2.3
|
)
|
||||
Net cash used in financing activities
|
(948.0
|
)
|
(163.0
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
2.6
|
3.4
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(575.7
|
)
|
242.7
|
|||||
Cash and cash equivalents, beginning of period*
|
2,755.7
|
2,339.5
|
||||||
Cash and cash equivalents, end of period
|
$
|
2,180.0
|
$
|
2,582.2
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
|||||||||||||
Consolidated GAAP Revenue
|
$
|
1,017.8
|
$
|
1,026.5
|
$
|
2,030.9
|
$
|
2,100.7
|
||||||||
Less: Blood Screening revenue
|
(6.9
|
)
|
(10.6
|
)
|
(14.9
|
)
|
(17.9
|
)
|
||||||||
Less: SSI revenue
|
(1.1
|
)
|
(6.1
|
)
|
(1.8
|
)
|
(10.6
|
)
|
||||||||
Organic Revenue
|
$
|
1,009.8
|
$
|
1,009.8
|
$
|
2,014.2
|
$
|
2,072.2
|
||||||||
Less: COVID-19 Assays
|
(23.3
|
)
|
(71.2
|
)
|
(50.1
|
)
|
(198.1
|
)
|
||||||||
Less: COVID-19 Related Revenue*
|
(29.9
|
)
|
(26.4
|
)
|
(54.4
|
)
|
(62.8
|
)
|
||||||||
Less: Discontinued Product Revenue
|
—
|
(1.4
|
)
|
(0.4
|
)
|
(2.5
|
)
|
|||||||||
Organic Revenue excluding COVID-19
|
$
|
956.6
|
$
|
910.8
|
$
|
1,909.3
|
$
|
1,808.8
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
|||||||||||||
Gross Profit:
|
||||||||||||||||
GAAP gross profit
|
$
|
542.3
|
$
|
585.8
|
$
|
1,109.8
|
1,203.7
|
|||||||||
Adjustments:
|
||||||||||||||||
Amortization of acquired intangible assets (1)
|
44.9
|
52.1
|
90.5
|
107.7
|
||||||||||||
Impairment of intangible asset (14)
|
25.9
|
—
|
25.9
|
—
|
||||||||||||
Product line discontinuance (13)
|
4.4
|
—
|
7.1
|
—
|
||||||||||||
Non-GAAP gross profit
|
$
|
617.5
|
$
|
637.9
|
$
|
1,233.3
|
$
|
1,311.4
|
||||||||
Gross Margin Percentage:
|
||||||||||||||||
GAAP gross margin percentage
|
53.3
|
%
|
57.1
|
%
|
54.6
|
%
|
57.3
|
%
|
||||||||
Impact of adjustments above
|
7.4
|
%
|
5.0
|
%
|
6.1
|
%
|
5.1
|
%
|
||||||||
Non-GAAP gross margin percentage
|
60.7
|
%
|
62.1
|
%
|
60.7
|
%
|
62.4
|
%
|
||||||||
Operating Expenses:
|
||||||||||||||||
GAAP operating expenses
|
$
|
331.9
|
$
|
313.7
|
$
|
701.2
|
$
|
669.2
|
||||||||
Adjustments:
|
||||||||||||||||
Amortization of acquired intangible assets (1)
|
(5.7
|
)
|
(7.1
|
)
|
(19.0
|
)
|
(14.7
|
)
|
||||||||
Impairment of intangible assets (14)
|
(0.9
|
)
|
—
|
(5.2
|
)
|
—
|
||||||||||
Transaction expenses (4)
|
(1.6
|
)
|
(0.3
|
)
|
(1.8
|
)
|
(0.3
|
)
|
||||||||
Contingent consideration adjustments (7)
|
—
|
12.4
|
(1.7
|
)
|
12.4
|
|||||||||||
Integration/consolidation costs (3)
|
—
|
(0.2
|
)
|
—
|
(0.5
|
)
|
||||||||||
Purchased research and development asset charge (16)
|
(10.0
|
)
|
—
|
(10.0
|
)
|
—
|
||||||||||
MDR expenses (2)
|
—
|
(0.3
|
)
|
—
|
(1.1
|
)
|
||||||||||
Legal related settlements (11)
|
—
|
(0.8
|
)
|
—
|
(2.3
|
)
|
||||||||||
Restructuring charges (3)
|
(6.1
|
)
|
(1.8
|
)
|
(28.6
|
)
|
(2.9
|
)
|
||||||||
Non-income tax benefit/charge, net (5)
|
—
|
1.4
|
—
|
(3.4
|
)
|
|||||||||||
Non-GAAP operating expenses
|
$
|
307.6
|
$
|
317.0
|
$
|
634.9
|
$
|
656.4
|
||||||||
Operating Margin:
|
||||||||||||||||
GAAP income from operations
|
$
|
210.4
|
$
|
272.1
|
$
|
408.6
|
$
|
534.5
|
||||||||
Adjustments to gross profit as detailed above
|
75.2
|
52.1
|
123.5
|
107.7
|
||||||||||||
Adjustments to operating expenses as detailed above
|
24.3
|
(3.3
|
)
|
66.3
|
12.8
|
|||||||||||
Non-GAAP income from operations
|
$
|
309.9
|
$
|
320.9
|
$
|
598.4
|
$
|
655.0
|
||||||||
Operating Margin Percentage:
|
||||||||||||||||
GAAP income from operations margin percentage
|
20.7
|
%
|
26.5
|
%
|
20.1
|
%
|
25.4
|
%
|
||||||||
Impact of adjustments above
|
9.7
|
%
|
4.8
|
%
|
9.4
|
%
|
5.8
|
%
|
||||||||
Non-GAAP operating margin percentage
|
30.4
|
%
|
31.3
|
%
|
29.5
|
%
|
31.2
|
%
|
Pre-Tax Income:
|
||||||||||||||||
GAAP pre-tax earnings
|
$
|
211.5
|
$
|
279.3
|
$
|
402.8
|
$
|
518.4
|
||||||||
Adjustments to pre-tax earnings as detailed above
|
99.5
|
48.8
|
189.8
|
120.5
|
||||||||||||
Debt extinguishment loss (6)
|
—
|
—
|
0.4
|
—
|
||||||||||||
Unrealized (gains) losses on forward foreign currency contracts (8)
|
(6.8
|
)
|
—
|
5.8
|
20.0
|
|||||||||||
Non-GAAP pre-tax income
|
$
|
304.2
|
$
|
328.1
|
$
|
598.8
|
$
|
658.9
|
||||||||
Net Income:
|
||||||||||||||||
GAAP net income
|
$
|
169.9
|
$
|
218.5
|
$
|
416.4
|
$
|
405.9
|
||||||||
Adjustments:
|
||||||||||||||||
Amortization of acquired intangible assets (1)
|
50.6
|
59.2
|
109.5
|
122.4
|
||||||||||||
Impairment of intangible asset (14)
|
26.8
|
—
|
31.1
|
—
|
||||||||||||
Restructuring and integration/consolidation costs (3)
|
6.1
|
2.0
|
28.6
|
3.4
|
||||||||||||
Purchased research and development asset charge (16)
|
10.0
|
—
|
10.0
|
—
|
||||||||||||
Product line discontinuance (13)
|
4.4
|
—
|
7.1
|
—
|
||||||||||||
MDR expenses (2)
|
—
|
0.3
|
—
|
1.1
|
||||||||||||
Debt extinguishment loss (6)
|
—
|
—
|
0.4
|
—
|
||||||||||||
Legal related settlements (11)
|
—
|
0.8
|
—
|
2.3
|
||||||||||||
Transaction expenses (4)
|
1.6
|
0.3
|
1.8
|
0.3
|
||||||||||||
Contingent consideration adjustments (7)
|
—
|
(12.4
|
)
|
1.7
|
(12.4
|
)
|
||||||||||
Unrealized (gains) losses on forward foreign currency contracts (8)
|
(6.8
|
)
|
—
|
5.8
|
20.0
|
|||||||||||
Non-income tax (benefit) charge, net (5)
|
—
|
(1.4
|
)
|
—
|
3.4
|
|||||||||||
Worthless stock deduction (15)
|
—
|
—
|
(107.2
|
)
|
—
|
|||||||||||
Income tax related items (9)
|
2.5
|
12.1
|
11.8
|
21.9
|
||||||||||||
Income tax effect of reconciling items (12)
|
(21.0
|
)
|
(13.7
|
)
|
(36.5
|
)
|
(34.6
|
)
|
||||||||
Non-GAAP net income
|
$
|
244.1
|
$
|
265.7
|
$
|
480.5
|
$
|
533.7
|
||||||||
Net Income Percentage:
|
||||||||||||||||
GAAP net income percentage
|
16.7
|
%
|
21.3
|
%
|
20.5
|
%
|
19.3
|
%
|
||||||||
Impact of adjustments above
|
7.3
|
%
|
4.6
|
%
|
3.2
|
%
|
6.1
|
%
|
||||||||
Non-GAAP net income percentage
|
24.0
|
%
|
25.9
|
%
|
23.7
|
%
|
25.4
|
%
|
||||||||
Earnings per Share:
|
||||||||||||||||
GAAP income per share - Diluted
|
$
|
0.72
|
$
|
0.87
|
$
|
1.74
|
$
|
1.63
|
||||||||
Adjustment to net income (as detailed above)
|
0.31
|
0.19
|
0.27
|
0.51
|
||||||||||||
Non-GAAP earnings per share – diluted (10)
|
$
|
1.03
|
$
|
1.06
|
$
|
2.01
|
$
|
2.14
|
||||||||
Adjusted EBITDA:
|
||||||||||||||||
Non-GAAP net income
|
$
|
244.1
|
$
|
265.7
|
$
|
480.5
|
$
|
533.7
|
||||||||
Interest (income) expense, net
|
8.3
|
(4.3
|
)
|
6.4
|
3.2
|
|||||||||||
Provision for income taxes
|
60.2
|
62.4
|
118.3
|
125.2
|
||||||||||||
Depreciation expense, not adjusted above
|
23.0
|
21.6
|
45.4
|
44.3
|
||||||||||||
Adjusted EBITDA
|
$
|
335.6
|
$
|
345.4
|
$
|
650.6
|
$
|
706.4
|
(1)
|
To reflect non-cash expenses attributable to the amortization of acquired intangible assets.
|
(2)
|
To reflect the exclusion of third-party expenses incurred to obtain compliance with the European Medical Device Regulation requirement for the Company's
existing products for which it already has FDA approval and/or CE mark.
|
(3)
|
To reflect restructuring charges, and certain costs associated with the Company’s integration and facility consolidation plans, which primarily include
severance, retention and transfer costs, as well as costs incurred to integrate acquisitions, including consulting, legal and tax fees. In addition, this category includes additional expenses, primarily accelerated depreciation and an
impairment on a lease asset incurred in fiscal 2024 related to closing certain facilities in the Diagnostics business.
|
(4)
|
To reflect expenses with third parties related to acquisitions prior to when such transactions are completed. These expenses primarily comprise legal,
consulting and due diligence fees.
|
(5)
|
To reflect the net impact of establishing a non-income tax loss contingency related to prior years and the settlement of a prior year non-income tax audit.
|
(6)
|
To reflect a debt extinguishment loss for the prepayment of debt under the Credit Agreement in first quarter of fiscal 2024.
|
(7)
|
To reflect an adjustment to the estimated contingent consideration liability related to the Acessa Health acquisition, which was payable upon meeting defined revenue growth
metrics.
|
(8)
|
To reflect non-cash unrealized gains and losses on the mark-to market on outstanding forward foreign currency contracts, which have not been designated for
hedge accounting.
|
(9)
|
To reflect the net impact of income tax reserves from the expiration of the statute of limitations, and non-recurring income tax charges and benefits.
|
(10)
|
Non-GAAP earnings per share was calculated based on 237,562 and 238,888 weighted average diluted shares outstanding for the three and six months ended March
30, 2024, respectively, and 249,793 and 249,537 for the three and six months ended April 1, 2023, respectively.
|
(11)
|
To reflect net charges and benefits from legal related settlements.
|
(12)
|
To reflect the tax effects of Non-GAAP reconciling items, excluding specific income tax related items separately stated in Note 9 and the worthless stock
deduction in Note 15. Amounts are calculated using the effective tax rate in the jurisdiction to which the adjustment relates.
|
(13)
|
To reflect the write-off of inventory and charges for non-cancellable purchase orders related to a product line discontinuance in the Diagnostics division.
|
(14)
|
To reflect an impairment charge for an in process research and development intangible asset acquired in the Mobidiag acquisition during the first quarter of
fiscal 2024 and an impairment charge related to intangible assets from the Focal acquisition during the second quarter of fiscal 2024.
|
(15)
|
To reflect the discrete tax benefit related to a worthless stock deduction on the investment in one of the Company's international subsidiaries.
|
(16)
|
To reflect the purchase of an intangible asset to be used in a research and development project that has no future alternative use.
|
Guidance Range
|
Guidance Range
|
|||||||||||||||
Quarter Ending
June 29, 2024
|
Year Ending
September 28, 2024
|
|||||||||||||||
Low
|
High
|
Low
|
High
|
|||||||||||||
GAAP Net Income Per Share
|
$
|
0.80
|
$
|
0.87
|
$
|
3.45
|
$
|
3.55
|
||||||||
Amortization of acquired intangible assets
|
0.21
|
0.21
|
0.87
|
0.87
|
||||||||||||
Impairment of Intangible asset
|
-
|
-
|
0.13
|
0.13
|
||||||||||||
Restructuring, Integration and Other charges
|
0.01
|
0.01
|
0.23
|
0.23
|
||||||||||||
Non-operating charges
|
-
|
-
|
0.03
|
0.03
|
||||||||||||
Worthless stock deduction
|
-
|
-
|
(0.45
|
)
|
(0.45
|
)
|
||||||||||
Tax Impact of Exclusions and related items
|
(0.04
|
)
|
(0.04
|
)
|
(0.24
|
)
|
(0.24
|
)
|
||||||||
Non-GAAP Net Income Per Share
|
$
|
0.98
|
$
|
1.05
|
$
|
4.02
|
$
|
4.12
|
Trailing Twelve Months Ended March 30, 2024
|
||||||||||||
Return on Invested Capital:
|
ROIC
|
Adjustments
|
Adjusted ROIC
|
|||||||||
Adjusted Net Operating Profit After Tax
|
||||||||||||
Net Income
|
$
|
466.6
|
$
|
464.5
|
$
|
931.1
|
||||||
Plus:
|
||||||||||||
Provision for income taxes
|
94.0
|
141.3
|
235.3
|
|||||||||
Interest expense
|
114.0
|
—
|
114.0
|
|||||||||
Other income
|
(132.1
|
)
|
2.4
|
(129.7
|
)
|
|||||||
Adjusted net operating profit before tax
|
$
|
542.5
|
$
|
608.2
|
$
|
1,150.7
|
||||||
Effective tax rate (1)
|
16.8
|
%
|
23.2
|
%
|
20.2
|
%
|
||||||
Adjusted net operating profit after tax
|
$
|
451.6
|
$
|
467.0
|
$
|
918.6
|
||||||
Average Net Debt plus Average Stockholders' Equity (2)
|
||||||||||||
Average total debt
|
$
|
2,687.7
|
$
|
—
|
$
|
2,687.7
|
||||||
Less: Average cash and cash equivalents
|
(2,381.1
|
)
|
—
|
(2,381.1
|
)
|
|||||||
Average net debt
|
$
|
306.6
|
$
|
—
|
$
|
306.6
|
||||||
Average stockholders' equity (3)
|
5,072.6
|
1,485.3
|
6,557.9
|
|||||||||
Average net debt plus average stockholders' equity
|
$
|
5,379.2
|
$
|
1,485.3
|
$
|
6,864.5
|
||||||
Return on Invested Capital
|
8.4
|
%
|
13.4
|
%
|
As of March 30, 2024
|
||||||||
Net Leverage
Ratio:
|
Adjusted Net
Leverage Ratio
|
|||||||
Total principal debt
|
$
|
2,566.3
|
$
|
2,566.3
|
||||
Total cash and cash equivalents
|
(2,180.0
|
)
|
(2,180.0
|
)
|
||||
Net principal debt
|
$
|
386.3
|
$
|
386.3
|
||||
EBITDA for the last four quarters
|
$
|
872.8
|
$
|
1,250.7
|
||||
Net Leverage Ratio
|
0.4
|
0.3
|
Other Supplemental Information:
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
March 30, 2024
|
April 1, 2023
|
March 30, 2024
|
April 1, 2023
|
|||||||||||||
Geographic Revenues
|
||||||||||||||||
U.S.
|
74.6
|
%
|
74.9
|
%
|
74.5
|
%
|
75.8
|
%
|
||||||||
Europe
|
13.5
|
%
|
14.8
|
%
|
13.8
|
%
|
14.2
|
%
|
||||||||
Asia-Pacific
|
6.3
|
%
|
6.4
|
%
|
6.3
|
%
|
6.1
|
%
|
||||||||
All Others
|
5.6
|
%
|
3.9
|
%
|
5.4
|
%
|
3.9
|
%
|
||||||||
Total Revenues
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
Document and Entity Information |
May 02, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | May 02, 2024 |
Entity File Number | 1-36214 |
Entity Registrant Name | HOLOGIC, INC. |
Entity Central Index Key | 0000859737 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 04-2902449 |
Entity Address, Address Line One | 250 Campus Drive |
Entity Address, City or Town | Marlborough |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 01752 |
City Area Code | 508 |
Local Phone Number | 263-2900 |
Title of 12(b) Security | Common Stock, $.01 par value |
Trading Symbol | HOLX |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |