Full Press Release Details
Catalent, Inc. Reports Fourth Quarter Fiscal 2021 Results
Somerset, N.J. - August 30, 2021 Catalent, Inc. (NYSE: CTLT), the leading global provider of development sciences and manufacturing platforms
for medicines, including biotherapeutics; cell and gene therapies; and consumer health products, today announced financial results for the fourth quarter of fiscal 2021, which ended June 30, 2021. In addition, the company also announced in a
separate press release today the details of its agreement to acquire Bettera Holdings, LLC, a leading manufacturer in the high-growth gummy, soft chew, and lozenge segments of the nutritional supplements market.
The past year has been extraordinary, for society and for our organization, during which we achieved great things, including building our
infrastructure, growing our talent, deepening our long-standing commitment to sustainability practices, and accelerating our growth strategy, said John Chiminski, Chair and Chief Executive Officer of Catalent, Inc. We rose to the
challenge of scaling our capacity to meet demand for vaccines and treatments to address the global COVID-19 pandemic, all while continuing to produce a broad range of important medicines under unprecedented
circumstances. We are humbled to see the dedication of all our employees, who have allowed us to achieve this success. As we look ahead, we carry with us new knowledge, new capabilities, and strengthened partnerships, enabling us to continue to
deliver products that ultimately allow people to live better, healthier lives.
Fourth Quarter 2021 Consolidated Results
Net revenue of $1.19 billion increased 25% as reported, or 22% in constant currency, from the $947 million reported for the fourth quarter a year
ago. Overall organic net revenue growth (i.e., excluding the effect of acquisitions and divestitures) was 26%.
After accounting for the net
earnings attributable to holders of Catalent s Series A convertible preferred stock, net earnings attributable to common shareholders were $167 million, or $0.98 per basic share, compared to net earnings attributable to common shareholders
of $135 million, or $0.86 per basic share, in the fourth quarter a year ago.
operations(1) was $326 million, an increase of $60 million from $266 million in the fourth quarter a year ago. Fourth quarter fiscal 2021 Adjusted EBITDA(1) was $348 million, or 29.3% of net revenue, compared to $268 million, or 28.2% of net revenue, in the fourth quarter a year ago. This represents an increase of 30% as reported, and an
increase of 27% on a constant-currency basis.
Adjusted Net Income(1) was $209 million, or $1.16
per diluted share, compared to Adjusted Net Income of $154 million, or $0.90 per diluted share, in the fourth quarter a year ago.
from the Biologics segment was $603 million for the fourth quarter of fiscal 2021, an increase of 69% as reported and 66% in constant currency, compared to the fourth quarter a year ago. Segment EBITDA(1) in the fourth quarter of fiscal 2021 was $186 million, an increase of 114% as reported and 112% in constant currency, compared to the fourth quarter a year ago. Segment EBITDA margin was 30.9%
in the fourth quarter of fiscal 2021, compared to 24.3% in the fourth quarter of the prior year.
Excluding the effect of acquisitions, net revenue
increased 66% and Segment EBITDA increased 111% compared to the quarter ended June 30, 2020.
Softgel and Oral Technologies
Net revenue from the Softgel and Oral Technologies segment was $301 million for the fourth quarter of fiscal 2021, an increase of 3% as reported and a
decrease of 1% in constant currency, compared to the fourth quarter a year ago. Segment EBITDA was $94 million in the fourth quarter of fiscal 2021, an increase of 10% as reported, or 6% in constant currency, compared to the fourth quarter a
year ago. Segment EBITDA margin was 31.3% in the fourth quarter of fiscal 2021, compared to 29.4% in the fourth quarter of the prior year.
Net revenue from the Oral and Specialty Delivery segment was $186 million for the fourth quarter of fiscal 2021, a
decrease of 15% as reported and 19% in constant currency, over the fourth quarter a year ago. Segment EBITDA in the fourth quarter of fiscal 2021 was $63 million, a decrease of 24% as reported, or 29% in constant currency, compared to the
fourth quarter a year ago. Segment EBITDA margin was 34.4% in the fourth quarter of fiscal 2021, compared to 38.4% in the fourth quarter of the prior year.
Excluding the effect of acquisitions and divestitures, net revenue decreased 4% and Segment EBITDA decreased 11% compared to the quarter ended June 30,
Clinical Supply Services
Net revenue from the Clinical Supply Services segment was $105 million for the fourth quarter of fiscal 2021, an increase of 25% as reported and 21% in
constant currency, compared to the fourth quarter a year ago. Segment EBITDA in the fourth quarter of fiscal 2021 was $31 million, an increase of 45% as reported, or 35% in constant currency, compared to the fourth quarter a year ago. Segment
EBITDA margin was 29.0% in the fourth quarter of fiscal 2021 compared to 25.1% in the fourth quarter of the prior year.
Segment Net Revenue as a % of Total Net
| Three Months Ended | ||||||||||||||||
| June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||
| Biologics | 50 | % | 52 | % | 44 | % | 44 | % | ||||||||
| Softgel and Oral Technologies | 25 | % | 23 | % | 27 | % | 26 | % | ||||||||
| Oral and Specialty Delivery | 16 | % | 16 | % | 19 | % | 19 | % | ||||||||
| Clinical Supply Services | 9 | % | 9 | % | 10 | % | 11 | % | ||||||||
| Net Revenue | 100 | % | 100 | % | 100 | % | 100 | % |
Fiscal 2021 Consolidated Results
Net revenue of $4.00 billion increased 29% as reported, or 26% in constant currency, from the $3.09 billion reported for the prior fiscal year.
Overall organic net revenue growth (i.e., excluding the effect of acquisitions and divestitures) was 25%.
After accounting for the net earnings
attributable to holders of Catalent s Series A convertible preferred stock, net earnings attributable to common shareholders were $529 million, or $3.15 per basic share, compared to net earnings attributable to common shareholders of
$173 million, or $1.16 per basic share, in the prior fiscal year.
EBITDA from operations(1) was
$1.11 billion, an increase of $474 million from $640 million in the prior fiscal year. Fiscal 2021 Adjusted EBITDA(1) was $1.02 billion, or 25.5% of net revenue, compared to
$751 million, or 24.3% of net revenue, in the prior fiscal year. This represents an increase of 36% as reported, and an increase of 32% on a constant-currency basis.
Adjusted Net Income(1) was $549 million, or $3.04 per diluted share, compared to Adjusted Net Income
of $350 million, or $2.11 per diluted share, in fiscal 2020.
Fiscal 2021 Segment Review
Net revenue from the Biologics segment
was $1.93 billion for fiscal 2021, an increase of 89% as reported and 86% in constant currency, compared to fiscal 2020. Segment EBITDA(1) in fiscal 2021 was $608 million, an increase of
156% as reported and 151% in constant currency, compared to fiscal 2020. Segment EBITDA margin was 31.5% in fiscal 2021, compared to 23.2% in fiscal 2020.
Excluding the effect of acquisitions, net revenue increased 80% and Segment EBITDA increased 148% compared to fiscal 2020.
Softgel and Oral Technologies
the Softgel and Oral Technologies segment was $1.01 billion for fiscal 2021, a decrease of 5% as reported and 7% in constant currency, compared to fiscal 2020. Segment EBITDA was $237 million in fiscal 2021, a decrease of 8% as reported,
or 10% in constant currency, compared to fiscal 2020. Segment EBITDA margin was 23.4% in fiscal 2021, compared to 24.2% in fiscal 2020.
Excluding the effect of divestitures, net revenue decreased 6% compared to fiscal 2020 and Segment EBITDA
decreased 10% compared to fiscal 2020.
Oral and Specialty Delivery
Net revenue from the Oral and Specialty Delivery segment was $686 million for fiscal 2021, an increase of 1% as reported and a decrease of 2% in constant
currency, over fiscal 2020. Segment EBITDA in fiscal 2021 was $160 million, a decrease of 20% as reported, or 25% in constant currency, compared to fiscal 2020. Segment EBITDA margin was 23.3% in fiscal 2021, compared to 29.7% in fiscal 2020.
Excluding the effect of acquisitions and divestitures, net revenue decreased 3% and Segment EBITDA decreased 24%, compared to fiscal 2020.
Clinical Supply Services
Net revenue from the
Clinical Supply Services segment was $391 million for fiscal 2021, an increase of 13% as reported and 10% in constant currency, compared to fiscal 2020. Segment EBITDA in fiscal 2021 was $108 million, an increase of 18% as reported, or 13%
in constant currency, compared to fiscal 2020. Segment EBITDA margin was 27.6% in fiscal 2021 compared to 26.4% in fiscal 2020.
As of June 30, 2021, Catalent had $3.24 billion in total debt, and $2.27 billion in total debt net of cash and short-term
investments, compared to $2.16 billion in total net debt as of March 31, 2021. The current debt structure does not include any significant maturity until 2027.
Catalent s net leverage ratio(1) as of June 30, 2021 was 2.2x, compared to 2.3x at
March 31, 2021 and 2.8x at June 30, 2020.
Fiscal Year 2022 Outlook
Catalent is introducing financial guidance for fiscal 2022, which assumes no major unforeseen change to either the current status of the COVID-19 pandemic generally or its effect on Catalent s operations and business. The guidance projects:
| FY 2022 Full Year Guidance | ||
| Net revenue | $4.30 billion - $4.50 billion | |
| Adjusted EBITDA | $1.13 billion - $1.20 billion | |
| Adjusted net income | $585 million - $650 million | |
| Weighted average shares outstanding - diluted (1) | 181 million - 183 million |
Company s management will host a webcast to discuss the results at 8:15 a.m. ET today. Catalent invites all interested parties to listen to the webcast, which will be accessible through Catalent s website at
http://investor.catalent.com. A supplemental slide presentation will also be available in the Investors section of Catalent s website prior to the start of the webcast. The webcast replay, along with the supplemental slides,
will be available for 90 days in the Investors section of Catalent s website at www.catalent.com.
About Catalent, Inc.
Catalent Inc. [NYSE: CTLT], an S&P 500 company, is the leading global provider of
development sciences and manufacturing platforms for medicines, including biotherapeutics; cell and gene therapies; and consumer health products. With almost 90 years serving the industry, Catalent has proven expertise in bringing more customer
faster, enhancing product performance, and ensuring reliable global clinical and commercial product supply. Catalent s workforce exceeds 17,000 people, including more than 2,500 scientists
and technicians, at more than 50 facilities on four continents, and in fiscal year 2021, it generated $4 billion in annual revenue. Catalent is headquartered in Somerset, New Jersey. For more information, please visit www.catalent.com.
Non-GAAP Financial Measures
Use of EBITDA from operations, Adjusted EBITDA, Adjusted Net Income and Segment EBITDA
Management measures operating performance based on consolidated earnings from operations before interest expense, expense (benefit) for income taxes, and
depreciation and amortization, adjusted for the income or loss attributable to non-controlling interests ( EBITDA from operations ). EBITDA from operations is not defined under U.S. GAAP, is not a
measure of operating income, operating performance, or liquidity presented in accordance with U.S. GAAP, and is subject to important limitations.
Catalent believes that the presentation of EBITDA from operations enhances an investor s understanding of its financial performance. Catalent believes
this measure is a useful financial metric to assess its operating performance across periods by excluding certain items that it believes are not representative of its core business and uses this measure for business planning purposes.
In addition, given the significant investments that Catalent has made in the past in property, plant and equipment, depreciation and amortization expenses
represent a meaningful portion of its cost structure. Catalent believes that EBITDA from operations will provide investors with a useful tool for assessing the comparability between periods of its ability to generate cash from operations sufficient
to pay taxes, to service debt and to undertake capital expenditures because it eliminates depreciation and amortization expense. Catalent presents EBITDA from operations in order to provide supplemental information that it considers relevant for the
readers of its consolidated financial statements, and such information is not meant to replace or supersede U.S. GAAP measures. Catalent s definition of EBITDA from operations may not be the same as similarly titled measures used by other
Catalent evaluates the performance of its segments based on segment earnings before non-controlling
interest, other (income) expense, impairments, restructuring costs, interest expense, income tax expense (benefit), and depreciation and amortization ( segment EBITDA ). Moreover, under Catalent s credit agreement, its ability to
engage in certain activities, such as incurring certain additional indebtedness, making certain investments and paying certain dividends, is tied to ratios based on Adjusted EBITDA, which is not defined under U.S. GAAP, is not a measure of operating
income, operating performance, or liquidity presented in accordance with U.S. GAAP, and is subject to important limitations. Adjusted EBITDA is the covenant compliance measure used in the credit agreement governing debt incurrence and restricted
payments. Because not all companies use identical calculations, Catalent s presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
Management also measures operating performance based on Adjusted Net Income and Adjusted Net Income per share. Adjusted Net Income is not defined under U.S.
GAAP, is not a measure of operating income, operating performance, or liquidity presented in accordance with U.S. GAAP and is subject to important limitations. Catalent believes that the presentation of Adjusted Net Income and Adjusted Net Income