Investing.com
Published Nov 14, 2022 16:26
Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the fourth quarter and fiscal year ended September 30, 2022.
Quarter Ended | Year Ended | |||||||||||||||||||
Dollars in millions, except per share data | September 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Revenue from Continuing Operations | $ | 138 | $ | 137 | 0 | % | $ | 555 | $ | 514 | 8 | % | ||||||||
Organic growth ex-COVID impacts | 12 | % | 17 | % | ||||||||||||||||
Life Sciences Products | $ | 48 | $ | 53 | (9) | % | $ | 199 | $ | 200 | 0 | % | ||||||||
Life Sciences Services | $ | 89 | $ | 84 | 6 | % | $ | 356 | $ | 314 | 13 | % | ||||||||
Diluted EPS Continuing Operations | $ | (0.07) | $ | (0.30) | 76 | % | $ | (0.15) | $ | (0.39) | 61 | % | ||||||||
Diluted EPS Total | $ | (0.28) | $ | 0.29 | (195) | % | $ | 28.48 | $ | 1.49 | nm | |||||||||
Non-GAAP Diluted EPS Continuing Operations | $ | 0.16 | $ | 0.12 | 34 | % | $ | 0.51 | $ | 0.48 | 6 | % | ||||||||
Adjusted EBITDA Continuing Operations | $ | 9 | $ | 21 | (55) | % | $ | 62 | $ | 86 | (27) | % | ||||||||
Management Comments
Steve Schwartz, President and CEO, stated, "We exit fiscal 2022 having successfully transformed into a standalone life sciences business with significant opportunities ahead of us. We achieved strong double-digit organic growth of 12% in the quarter and 17% in the fiscal year, excluding estimated COVID impacts. In the fourth quarter of fiscal 2022, we regained momentum in our genomics business and saw sustained strength in large-automated stores, which posted another record bookings quarter. We remain focused on execution and on driving broader adoption of our unique offerings.
"We're also pleased to announce that our Board has authorized a new $1.5 billion share repurchase program and we intend to repurchase at least $1 billion of common stock over the coming year, beginning with a $500 million accelerated share repurchase. This program is a testament to our commitment to returning value to shareholders. It underscores our strong capital position, and our view that we have significant upside opportunity. Even with this meaningful repurchase of shares, we expect to have sufficient capital available to deploy for additional growth investment consistent with our long-term strategy, and we will continue to generate value for shareholders as we pursue opportunities to extend our industry leading position.
"We also announced that as part of our ongoing transformation we are nominating two new directors to our board. Both are outstanding life sciences executives with track records of creating value who will stand for election at our next annual shareholder meeting. These nominees will replace two of our directors who will not be standing for re-election."
Summary of Fourth Quarter and Full Year Fiscal 2022 Results
Revenue excludes revenue from the Semiconductor Automation business which was sold on February 1, 2022. Profits related to this business are included in discontinued operations. The Company has referenced in the explanation of revenue the estimated impact of COVID. Estimated impact of COVID includes the estimated revenue contribution from products delivered and services rendered to support COVID testing and research, and estimated constraints on the business due to disruptions in customer demand or the Company's ability to deliver in the COVID environment.
Fourth Quarter, Fiscal 2022
Summary of GAAP Results
Summary of Non-GAAP Results
Full Year, Fiscal 2022
Summary of GAAP Results
Summary of Non-GAAP Results
Cash and Liquidity as of September 30, 2022
Subsequent Events
New Share Repurchase Program
The Company's Board of Directors has approved a share repurchase authorization of $1.5 billion in common stock. The Company intends to repurchase at least $1 billion in common stock over the next year, including an accelerated share repurchase (ASR) program to repurchase approximately $500 million in common stock. Azenta intends to enter into an ASR agreement in the coming days.
Repurchases of the Company's common stock may be made in the open market or through privately negotiated transactions (including the ASR program), or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, subject to market and business conditions, legal requirements, and other factors. This share repurchase authorization does not obligate Azenta to acquire any particular amount of common stock, and share repurchases may be commenced or suspended at any time at the Company's discretion.
Board of Directors Nominations
Today the Company announced that Tina S. Nova, Ph.D. and Dorothy E. Puhy have been nominated for election to its Board of Directors at the Company's 2023 Annual General Meeting. Current directors Mark Wrighton, Ph.D. and Alfred Woollacott, III have stated their intention to retire from the Board and not to run for re-election. Please refer to the Company's separate press release for further information.
Guidance for Continuing Operations for First Quarter and Full Year Fiscal 2023
The Company announced guidance for continuing operations for the first quarter and full year fiscal 2023.
For the first quarter, revenue is expected to be in the range of $175 to $190 million and non-GAAP diluted earnings per share is expected to be in the range of $0.08 to $0.16. GAAP diluted earnings per share from continuing operations is expected to be in the range of ($0.20) to ($0.12).
For the full year, total revenue is expected to grow approximately 30%.
Conference Call and Webcast
Azenta management will webcast its fourth quarter and full year fiscal 2022 earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.
The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events, and will be archived online on this website for convenient on-demand replay. In addition, you may call 800-936-4761 (US & Canada only) or +1-212-231-2922 for international callers to listen to the live webcast.
Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.
"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta's financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Other forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our focus and execution and adoption of our offerings, our ability to improve or retain our market position, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following: the impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions; our ability to successfully invest the cash proceeds from the sale of our Semiconductor Automation business; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.
Written By: Investing.com
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