Endomagnetics Ltd.

MARLBOROUGH, Mass.--( BUSINESS WIRE )--Hologic, Inc. (Nasdaq: HOLX) announced today the Company’s financial results for the fiscal fourth quarter ended September 28, 2024 . "We delivered strong fiscal 2024 results, reinforcing our track record of durable performance with another solid quarter of growth," said Steve MacMillan, Hologic’s chairman, president, and chief executive officer. "Each year we grow stronger, leveraging our leading brands to drive diverse revenue growth and industry leading margins, while generating exceptional cash flow. We are excited for 2025, as we continue to drive market creation with our intense focus on workflow efficiency and automation, ultimately making a difference for our customers and patients worldwide." Recent Highlights Revenue of $987.9 million increased 4.5% for the quarter, or 4.2% in constant currency. Excluding COVID-19 revenues, total organic revenue, which excludes the divested Blood Screening and SSI businesses and the newly acquired Endomagnetics business, grew 5.3%, or 5.0% on a constant currency basis. Diagnostics revenue increased 6.5%, or 6.2% in constant currency, primarily driven by higher Molecular Diagnostics sales, partially offset by lower sales of COVID-19 assays compared to the prior year period. Excluding COVID-19 revenues, organic Diagnostics revenue grew 9.5%, or 9.2% on a constant currency basis. Molecular Diagnostics revenue increased 9.4%, or 9.1% in constant currency compared to the prior year period, primarily driven by higher sales of the Company’s BV CV/TV and non-COVID-19 respiratory assays, as well as Biotheranostics lab testing. Excluding COVID-19 revenues, Molecular Diagnostics revenue grew 13.4%, or 13.2% on a constant currency basis. Breast Health revenue increased 6.4%, or 6.2% in constant currency, primarily driven by strong Breast Imaging Service revenue and the addition of Endomagnetics. Organic Breast Health revenue, which excludes SSI and Endomagnetics, increased 5.6%, or 5.3% in constant currency. Surgical revenue grew 5.7%, or 5.4% in constant currency, primarily driven by strong International performance. Cash flow from operations remained strong in the fourth quarter at $367.1 million. The Company repurchased 0.7 million shares for $58 million in the fourth quarter of fiscal 2024. For the full year of fiscal 2024, the Company repurchased 11.2 million shares of its common stock for $808 million, which includes the $500 million accelerated share repurchase (ASR) completed in the second quarter of fiscal 2024. The Company intends to enter into an accelerated share repurchase (ASR) agreement for $250 million of the Company’s common stock. The Company expects the ASR will become effective in the Company’s first quarter of fiscal 2025 and the final settlement of the ASR is expected to be completed in the second quarter of fiscal 2025. The ASR will be completed pursuant to the existing announced share repurchase authorizations approved by Hologic’s board of directors. On July 25, 2024, the Company completed the acquisition of Endomagnetics Ltd, a privately held UK-based developer of breast cancer surgery technologies, for approximately $310 million, as the Company expands and diversifies its interventional breast business. On October 14, 2024, the Company announced its agreement to acquire Gynesonics, Inc., a privately held medical device company focused on the development of minimally invasive solutions for women’s health for approximately $350 million, subject to adjustment, as the Company seeks to broaden its surgical portfolio. The Company anticipates closing this acquisition in the first half of calendar year 2025. Completion of the acquisition is subject to customary closing conditions, including receipt of required regulatory approvals. Key financial results for the fiscal fourth quarter are shown in the table below. GAAP Non-GAAP Q4’24 Q4’23 Change Increase (Decrease) Q4’24 Q4’23 Change Increase (Decrease) Revenues $987.9 $945.3 4.5% $987.9 $945.3 4.5% Gross Margin 56.5% 52.9% 360 bps 61.5% 60.4% 110 bps Operating Expenses $327.6 $367.8 (10.9%) $311.0 $303.7 2.4% Operating Margin 23.3% 14.0% 930 bps 30.0% 28.3% 170 bps Net Margin 18.1% 9.6% 850 bps 24.0% 23.2% 80 bps Diluted EPS $0.76 $0.37 105.4% $1.01 $0.89 13.5% Throughout this press release, all dollar figures are in millions, except EPS, unless otherwise noted. Some totals may not foot due to rounding. Unless otherwise noted, all results are compared to the corresponding prior year period. Non-GAAP results exclude certain cash and non-cash items as discussed under “Use of Non-GAAP Financial Measures.” Constant currency percentage changes show current period revenue results as if the foreign exchange rates were the same as those in the prior year period. Our fiscal fourth quarter organic revenue results exclude the divested Blood Screening and SSI ultrasound imaging businesses, as well as the acquired Endomagnetics business. Revenue from acquired businesses is generally included in organic revenue starting a year after the acquisition. Revenue Detail Increase (Decrease) $ in millions Q4’24 Q4’23 Global Reported Change Global Constant Currency Change U.S. Reported Change International Reported Change International Constant Currency Change Diagnostics Cytology and Perinatal $116.5 $115.2 1.1% 0.7% (1.4%) 5.0% 4.0% Molecular Diagnostics $319.3 $291.9 9.4% 9.1% 9.3% 9.7% 8.7% Blood Screening $7.5 $9.3 (19.4%) (19.4%) (19.4%) N/A N/A Total Diagnostics $443.3 $416.4 6.5% 6.2% 6.0% 7.8% 6.7% Organic Diagnostics ex. COVID-19 $395.7 $361.4 9.5% 9.2% 9.9% 8.4% 7.3% Breast Health Breast Imaging $293.4 $282.2 4.0% 3.7% 5.4% (0.7%) (1.9%) Interventional Breast Solutions $82.1 $70.6 16.3% 16.1% 12.6% 29.8% 29.1% Total Breast Health $375.5 $352.8 6.4% 6.2% 6.8% 5.0% 3.9% Organic Breast Health $368.1 $348.7 5.6% 5.3% 6.1% 3.7% 2.6% GYN Surgical $156.5 $148.0 5.7% 5.4% 0.2% 25.6% 24.0% Skeletal Health $12.7 $28.0 (54.6%) (54.9%) (42.8%) (73.6%) (73.8%) Total $987.9 $945.3 4.5% 4.2% 4.2% 5.4% 4.3% Organic Revenue (definition above) $973.0 $931.9 4.4% 4.2% 4.2% 5.0% 3.9% Organic Revenue excluding COVID-19 $933.0 $886.2 5.3% 5.0% 5.3% 5.2% 4.1% Other Financial Highlights U.S. revenue of $745.6 million increased 4.2%. International revenue of $242.3 million increased 5.4%, or 4.3% in constant currency. GAAP gross margin of 56.5% increased 360 basis points primarily due to inventory write-offs related to a discontinued product line in the prior year period. Non-GAAP gross margin of 61.5% increased 110 basis points primarily due to an increase in sales compared to the prior year period. GAAP operating margin of 23.3% increased 930 basis points primarily due to the prior year period including a loss of $51.7 million to record the SSI ultrasound imaging business as assets held-for-sale. Non-GAAP operating margin of 30.0% increased 170 basis points, primarily due to higher revenue and improved operating leverage compared to the prior year period. GAAP net income of $178.6 million increased 97.1% and Non-GAAP net income of $237.5 million increased 8.3%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $323.7 million, an increase of 12.3%. COVID-19 revenues, which consist of COVID-19 assay revenue of $15.2 million, and other COVID-19 related revenue plus revenue from discontinued products of $24.8 million, decreased (12.4%), or (12.5%) in constant currency. The Company ended the quarter with cash and cash equivalents of $2.16 billion, and an adjusted net leverage ratio (net debt over adjusted EBITDA) of 0.3 times. Adjusted Return on Invested Capital (ROIC) was 14.1%, a decrease of (30) basis points compared to the prior year period. Financial Guidance for the First Quarter and Full-Year Fiscal 2025 “In our fiscal fourth quarter of 2024, Hologic delivered strong financial performance, capping off another solid year of growth,” said Karleen Oberton, Hologic’s chief financial officer. “Looking ahead to fiscal 2025, our robust balance sheet and projected strong cash flows provide exceptional operational flexibility, positioning us well to achieve sustainable revenue growth and even faster EPS growth over the long term.” Hologic’s financial guidance for the first quarter and full year 2025 is shown in the table below. The guidance is based on a full year non-GAAP tax rate of approximately 19.5%, and diluted shares outstanding of approximately 235 million for the full year. Constant currency guidance assumes that foreign exchange rates are the same in fiscal 2025 as in fiscal 2024. Organic revenue guidance for fiscal 2025 is in constant currency and excludes the divested Blood Screening and SSI ultrasound imaging businesses. Revenue from acquired businesses is generally included in organic revenue guidance starting a year after the acquisition. Organic revenue excluding COVID-19 is in constant currency and is organic revenue excluding COVID-19 assay revenue, COVID-19 related revenue, and discontinued product sales in Diagnostics. The guidance below includes the financial results of the closed Endomagnetics acquisition for the full year, which will become organic in the fourth quarter of fiscal 2025, but does not include any contribution from the Gynesonics acquisition, which has not closed. There is no year over year net selling day impact comparing 2025 to 2024. First quarter and full year fiscal 2025 guidance incorporates the expected impact from the ongoing temporary stop-ship of Horizon DXA systems (Skeletal). Current Guidance Guidance $ Reported % Increase (Decrease) Constant Currency % Increase (Decrease) Organic % Increase (Decrease) Organic excluding COVID-19 % Increase (Decrease) Fiscal 2025 Revenue $4,150 - $4,200 3.0% to 4.2% 2.3% to 3.5% 1.7% to 3.0% 3.4% to 4.7% GAAP EPS $3.53 - $3.63 6.3% to 9.3% Non-GAAP EPS $4.25 - $4.35 4.2% to 6.6% Q1 2025 Revenue $1,025 - $1,035 1.2% to 2.2% 0.4% to 1.4% (0.2%) to 0.8% 1.8% to 2.8% GAAP EPS $0.81 - $0.84 (21.4%) to (18.4%) Non-GAAP EPS $1.00 - $1.03 2.0% to 5.1% Use of Non-GAAP Financial Measures The Company has presented the following non-GAAP financial measures in this press release: constant currency revenues; organic revenues; organic revenues excluding COVID-19; non-GAAP gross margin; non-GAAP operating expenses; non-GAAP operating margin; non-GAAP effective tax rate; non-GAAP net income; non-GAAP net income margin; non-GAAP EPS; adjusted EBITDA; adjusted net leverage ratio and adjusted ROIC. Organic revenue for the fiscal fourth quarter of 2024 excludes the divested Blood Screening and SSI ultrasound imaging businesses and the acquired Endomagnetics business. Revenue from acquired businesses is generally included in organic revenue starting a year after the acquisition. Organic revenue excluding COVID-19 revenues is organic revenue less COVID-19 assay revenue, COVID-19 related sales of instruments, collection kits and ancillaries, COVID-19 related revenue from Diagenode and Mobidiag, as well as COVID-19 related license revenue, and revenues from discontinued products in Diagnostics. The Company defines its non-GAAP net income, EPS, and other non-GAAP financial measures to exclude, as applicable: (i) the amortization of intangible assets; (ii) the impairment of goodwill and intangible assets and equipment and the loss to record assets held-for-sale to fair value less costs to sell; (iii) adjustments to record contingent consideration at fair value; (iv) charges to write-off inventory for a product line discontinuance; (v) the fair value write-up of acquired inventory sold during the period (vi) restructuring charges, facility closure and consolidation charges (including accelerated depreciation), and costs incurred to integrate acquisitions (including retention, transaction bonuses, legal and professional consulting services); (vii) transaction related expenses for acquisitions and dispositions; (viii) third-party expenses incurred related to the implementation of the European MDR/IVDR requirements and obtaining the appropriate approvals for its existing products; (ix) debt extinguishment losses and related transaction costs; (x) unrealized (gains) losses on the mark-to-market of foreign currency contracts to hedge operating results for which the Company has not elected hedge accounting; (xi) litigation settlement charges (benefits) and non-income tax related charges (benefits); (xii) other-than-temporary impairment losses on investments and realized gains and losses resulting from the sale of investments; (xiii) the impacts related to internal restructurings and non-operational items; (xiv) other one-time, non-recurring, unusual or infrequent charges, expenses or gains that may not be indicative of the Company's core business results; and (xv) income taxes related to such adjustments. The Company defines adjusted EBITDA as its non-GAAP net income plus net interest income/expense, income taxes, and depreciation and amortization expense included in its non-GAAP net income. The Company defines its adjusted net leverage ratio as the principal amount of its debt net of cash and cash equivalents, divided by its adjusted EBITDA for the last four quarters. The Company defines its adjusted ROIC as its non-GAAP operating income for a trailing twelve months tax effected by its non-GAAP effective tax rate divided by the sum of its average net debt and stockholders’ equity, which is adjusted to exclude the after-tax effects of goodwill and intangible assets and equipment impairment charges. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The Company's definition of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this press release adjust for specified items many of which can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of Hologic's historical operating results, comparison to competitors' operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting Hologic's business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the tables accompanying this release. Conference Call and Webcast Hologic’s management will host a conference call at 4:30 p.m. ET today to discuss its financial results for the fourth quarter of fiscal 2024. Interested participants may listen to the call by dialing 888-394-8218 (in the U.S. and Canada) or +1 773-305-6853 (for international callers) and referencing access code 4567924. Participants may also click to join . Participants should dial in 5-10 minutes before the call begins. The Company will also provide a live and replay webcast of the call at hologic.com/investors . The replay of the call will be available approximately two hours after the call ends through Wednesday, December 4, 2024. About Hologic, Inc. Hologic, Inc. is an innovative medical technology company primarily focused on improving women's health and well-being through early detection and treatment. For more information on Hologic, visit www.hologic.com . Hologic and associated logos are trademarks and/or registered trademarks of Hologic, Inc. and/or its subsidiaries in the United States and/or other countries. Forward-Looking Statements This news release contains forward-looking information that involves risks and uncertainties, including statements about the Company’s plans, objectives, expectations and intentions. Such statements include, without limitation: financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; the Company’s strategies, positioning, resources, capabilities, and expectations for future performance; the ASR program, which is subject to the finalization and execution of a definitive agreement on terms and conditions satisfactory to Hologic; and the Company's outlook and financial and other guidance. These forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated. Risks and uncertainties that could adversely affect the Company’s business and prospects, and otherwise cause actual results to differ materially from those anticipated, include, without limitation: the ongoing and possible future effects of global challenges, including macroeconomic uncertainties, such as inflation, bank failures, rising interest rates and availability of capital markets, geopolitical conflicts, wars, other economic disruptions and U.S. and global recession concerns, on the Company’s customers and suppliers and on the Company’s business, financial condition, results of operations and cash flows and the Company’s ability to draw down its revolver; the effect of the worldwide political and social uncertainty and divisions, including the impact on trade regulation and tariffs, that may adversely impact the cost and sale of the Company’s products in certain countries, or increase the costs the Company may incur to purchase materials, parts and equipment from its suppliers; the ability to execute acquisitions and the impact and anticipated benefits of completed acquisitions and acquisitions the Company may complete in the future; the development of new competitive technologies and products and competition; the Company’s ability to predict accurately the demand for its products, and products under development and to develop strategies to address markets successfully; continued demand for the Company’s COVID-19 assays; potential cybersecurity threats and targeted computer crime; the ongoing and possible future effects of supply chain constraints, including the availability of critical raw materials and components, as well as cost inflation in materials, packaging and transportation; the possibility of interruptions or delays at the Company’s manufacturing facilities, or the failure to secure alternative suppliers if any of the Company’s sole source third-party manufacturers fail to supply the Company; the ability to consolidate certain of the Company’s manufacturing and other operations on a timely basis and within budget, without disrupting its business and to achieve anticipated cost synergies related to such actions; the ability of the Company to successfully manage leadership and organizational changes, including the ability of the Company to attract, motivate and retain key employees and maintain engagement and efficiency in remote work environments; the ability to obtain and maintain regulatory approvals and clearances for the Company’s products, including the implementation of the European Union Medical Device Regulations and In Vitro Diagnostic Regulation requirements, and to maintain compliance with complex and evolving regulations and quality standards, as well as the uncertainty of costs required to obtain and maintain compliance with such regulatory and quality matters; the Company’s reliance on third-party reimbursement policies to support the sales and market acceptance of its products, including the possible adverse impact of government regulation and changes in the availability and amount of reimbursement and uncertainties for new products or product enhancements; changes to applicable laws and regulations, including tax laws, global health care reform, and import/export trade laws; changes in guidelines, recommendations and studies published by various organizations that could affect the use of the Company’s products; uncertainties inherent in the development of new products and the enhancement of existing products, including FDA approval and/or clearance and other regulatory risks, technical risks, cost overruns and delays; the risk that products may contain undetected errors or defects or otherwise not perform as anticipated; risks associated with strategic alliances and the ability of the Company to realize anticipated benefits of those alliances; the risks of conducting business internationally; the risk of adverse exchange rate fluctuations on the Company’s international activities and businesses; the early stage of market development for certain of the Company’s products; the Company’s leverage risks, including the Company’s obligation to meet payment obligations and financial covenants associated with its debt; the effect of any future public health crises, including the timing, scope and effect of U.S. and international governmental, regulatory, fiscal, monetary and public health responses to such crises; risks related to the use and protection of intellectual property; expenses, uncertainties and potential liabilities relating to litigation, including, without limitation, commercial, intellectual property, employment and product liability litigation; cost and expenses of investigative and legal proceedings and compliance risks; potential negative impacts resulting from climate change or other environmental, social and governance and sustainability related matters; and technical innovations that could render products marketed or under development by the Company obsolete. The risks included above are not exhaustive. Other factors that could adversely affect the Company's business and prospects are described in the filings made by the Company with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements presented herein to reflect any change in expectations or any change in events, conditions or circumstances on which any such statements are based. SOURCE: Hologic, Inc. HOLOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per share data) Three Months Ended Years Ended September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Revenues : Product $ 787.8 $ 757.0 $ 3,255.1 $ 3,279.9 Service and other 200.1 188.3 775.2 750.5 Total revenues 987.9 945.3 4,030.3 4,030.4 Cost of revenues: Product 292.3 305.0 1,206.2 1,184.3 Amortization of acquired intangible assets 45.5 46.4 180.5 205.7 Impairment of intangible assets and equipment — — 39.2 179.5 Service and other 92.4 93.6 376.6 389.4 Gross profit 557.7 500.3 2,227.8 2,071.5 Operating expenses: Research and development 67.3 72.9 272.8 294.3 Selling and marketing 146.0 139.5 585.4 595.2 General and administrative 103.2 92.9 409.4 392.4 Amortization of acquired intangible assets 4.9 6.2 29.2 28.1 Impairment of intangible assets and equipment — — 5.6 44.3 Contingent consideration fair value adjustments — (2.5 ) 1.7 (14.9 ) Loss on assets held-for-sale — 51.7 — 51.7 Restructuring charges 6.2 7.1 41.1 12.0 Total operating expenses 327.6 367.8 1,345.2 1,403.1 Income from operations 230.1 132.5 882.6 668.4 Interest income 28.4 35.9 108.7 120.5 Interest expense (32.0 ) (28.1 ) (122.1 ) (111.1 ) Other income (expense), net (4.9 ) 5.3 (4.1 ) (1.7 ) Income before income taxes 221.6 145.6 865.1 676.1 Provision for income taxes 43.0 55.0 75.6 220.1 Net income $ 178.6 $ 90.6 $ 789.5 $ 456.0 Net income per common share: Basic $ 0.76 $ 0.37 $ 3.35 $ 1.85 Diluted $ 0.76 $ 0.37 $ 3.32 $ 1.83 Weighted average number of shares outstanding: Basic 233,772 245,130 235,723 246,772 Diluted 235,971 247,142 237,553 248,831 HOLOGIC, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) September 28, 2024 September 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,160.2 $ 2,722.5 Short-term investments 173.4 — Accounts receivable, net 600.4 625.6 Inventory 679.8 617.6 Other current assets 209.5 206.9 Assets held-for-sale - current assets — 11.9 Total current assets 3,823.3 4,184.5 Property, plant and equipment, net 537.8 517.0 Goodwill and intangible assets 4,287.7 4,169.9 Long-term investments 96.4 — Other assets 410.8 267.9 Total assets $ 9,156.0 $ 9,139.3 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities : Current portion of long-term debt $ 37.5 $ 287.0 Accounts payable and accrued liabilities 786.8 712.9 Deferred revenue 212.9 199.2 Assets held-for-sale - current liabilities — 8.2 Total current liabilities 1,037.2 1,207.3 Long-term debt, net of current portion 2,497.1 2,531.2 Deferred income taxes 59.4 20.2 Other long-term liabilities 432.3 363.7 Total stockholders' equity 5,130.0 5,016.9 Total liabilities and stockholders’ equity $ 9,156.0 $ 9,139.3 HOLOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Years Ended September 28, 2024 September 30, 2023 OPERATING ACTIVITIES Net income $ 789.5 $ 456.0 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 99.3 89.6 Amortization of acquired intangible assets 209.7 233.8 Stock-based compensation expense 82.3 79.6 Deferred income taxes and other non-cash taxes (72.1 ) (109.1 ) Intangible assets and equipment impairment charges 44.8 223.8 Loss on assets held-for-sale — 51.7 Contingent consideration fair value adjustments — (14.9 ) Other adjustments and non-cash items 47.6 28.9 Changes in operating assets and liabilities, excluding the effect of acquisitions and dispositions: Accounts receivable 41.0 (1.5 ) Inventory (47.4 ) (4.9 ) Prepaid income taxes (21.7 ) 17.4 Prepaid expenses and other assets 7.3 23.6 Accounts payable 22.2 (23.0 ) Accrued expenses and other liabilities 73.4 (14.2 ) Deferred revenue 9.3 14.4 Net cash provided by operating activities 1,285.2 1,051.2 INVESTING ACTIVITIES Acquisition of businesses, net of cash acquired (297.3 ) (5.0 ) Sale of business, net of cash disposed (31.3 ) — Purchases of available-for-sale securities (267.7 ) — Capital expenditures (72.4 ) (91.8 ) Proceeds from the Department of Defense — 20.5 Increase in equipment under customer usage agreements (57.8 ) (58.4 ) Strategic investments (42.5 ) (10.0 ) Purchase of intellectual property (10.0 ) — Other activity (2.0 ) (7.4 ) Net cash used in investing activities (781.0 ) (152.1 ) FINANCING ACTIVITIES Repayment of long-term debt (287.5 ) (15.0 ) Payment of contingent consideration (2.6 ) (7.6 ) Payment of deferred acquisition consideration — (0.8 ) Repurchases of common stock (835.1 ) (474.8 ) Net proceeds from issuance of common stock under employee stock plans 37.8 43.0 Payment of minimum tax withholdings on net share settlements of equity awards (17.4 ) (24.0 ) Payments under finance lease obligations (3.8 ) (4.0 ) Net cash used in financing activities (1,108.6 ) (483.2 ) Effect of exchange rate changes on cash and cash equivalents 8.9 0.3 Net (decrease) increase in cash and cash equivalents (595.5 ) 416.2 Cash and cash equivalents, beginning of period* 2,755.7 2,339.5 Cash and cash equivalents, end of period* $ 2,160.2 $ 2,755.7 *Includes $33.2 million of cash recorded in assets held-for-sale - current assets as of September 30, 2023. HOLOGIC, INC. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited) (In millions, except earnings per share) Reconciliation of GAAP Revenue to Organic Revenue Three Months Ended Years Ended September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Consolidated GAAP Revenue $ 987.9 $ 945.3 $ 4,030.3 $ 4,030.4 Less: Blood Screening Revenue (7.5 ) (9.3 ) (30.3 ) (37.8 ) Less: SSI Revenue (0.3 ) (4.1 ) (2.6 ) (18.8 ) Less: Endomagnetics Revenue (7.1 ) — (7.1 ) — Organic Revenue $ 973.0 $ 931.9 $ 3,990.3 $ 3,973.8 Less: COVID-19 Assay Revenue (15.2 ) (21.4 ) (78.6 ) (248.2 ) Less: COVID-19 Related Revenue* (24.8 ) (24.2 ) (104.0 ) (112.8 ) Less: Discontinued Product Revenue — (0.1 ) (0.4 ) (3.0 ) Organic Revenue excluding COVID-19 $ 933.0 $ 886.2 $ 3,807.3 $ 3,609.8 *Revenues estimated to be related to COVID assay sales for instruments, collection kits and ancillaries. Three Months Ended Years Ended September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Gross Profit: GAAP gross profit $ 557.7 $ 500.3 $ 2,227.8 $ 2,071.5 Adjustments: Amortization of acquired intangible assets (1) 45.5 46.4 180.5 205.7 Impairment of intangible assets and equipment (14) — — 39.2 179.5 Product line discontinuance (13) — 24.7 7.1 24.7 Integration/consolidation costs (3) — — — (0.1 ) Fair value write-up of acquired inventory sold (17) 4.3 — 4.3 — Non-GAAP gross profit $ 607.5 $ 571.4 $ 2,458.9 $ 2,481.3 Gross Margin Percentage: GAAP gross margin percentage 56.5 % 52.9 % 55.3 % 51.4 % Impact of adjustments above 5.0 % 7.5 % 5.7 % 10.2 % Non-GAAP gross margin percentage 61.5 % 60.4 % 61.0 % 61.6 % Operating Expenses: GAAP operating expenses $ 327.6 $ 367.8 $ 1,345.2 $ 1,403.1 Adjustments: Amortization of acquired intangible assets (1) (4.9 ) (6.2 ) (29.2 ) (28.1 ) Impairment of intangible assets and equipment (14) — — (5.6 ) (44.3 ) Transaction expenses (4) (4.2 ) (1.1 ) (7.6 ) (1.4 ) Contingent consideration adjustments (7) — 2.5 (1.7 ) 14.9 Integration/consolidation costs (3) (0.3 ) (0.3 ) (0.3 ) (0.8 ) Purchased R&D asset charge (16) — — (10.0 ) — MDR expenses (2) — (0.2 ) — (1.5 ) Legal related settlement charges (11) (1.0 ) — (1.0 ) (1.3 ) Loss on assets held-for-sale (19) — (51.7 ) — (51.7 ) Restructuring charges (3) (6.2 ) (7.1 ) (41.1 ) (12.0 ) Non-income tax charges (5) — — — (2.9 ) Non-GAAP operating expenses $ 311.0 $ 303.7 $ 1,248.7 $ 1,274.0 Operating Margin: GAAP income from operations $ 230.1 $ 132.5 $ 882.6 $ 668.4 Adjustments to gross profit as detailed above 49.8 71.1 231.1 409.8 Adjustments to operating expenses as detailed above 16.6 64.1 96.5 129.1 Non-GAAP income from operations $ 296.5 $ 267.7 $ 1,210.2 $ 1,207.3 Operating Margin Percentage: GAAP income from operations margin percentage 23.3 % 14.0 % 21.9 % 16.6 % Impact of adjustments above 6.7 % 14.3 % 8.1 % 13.4 % Non-GAAP operating margin percentage 30.0 % 28.3 % 30.0 % 30.0 % Pre-Tax Income: GAAP pre-tax earnings $ 221.6 $ 145.6 $ 865.1 $ 676.1 Adjustments to pre-tax earnings as detailed above 66.4 135.2 327.6 538.9 Debt extinguishment loss (6) — — 0.4 — Other income (18) (6.3 ) — (6.3 ) — Unrealized losses (gains) on forward foreign currency contracts (8) 14.1 (7.5 ) 20.1 11.4 Non-GAAP pre-tax income $ 295.8 $ 273.3 $ 1,206.9 $ 1,226.4 Net Income: GAAP net income $ 178.6 $ 90.6 $ 789.5 $ 456.0 Adjustments: Amortization of acquired intangible assets (1) 50.4 52.6 209.7 233.8 Impairment of intangible assets and equipment (14) — — 44.8 223.8 Restructuring and integration/consolidation costs (3) 6.5 7.4 41.4 12.7 Fair value write-up of acquired inventory sold (17) 4.3 — 4.3 — Purchased R&D asset charge (16) — — 10.0 — Product line discontinuance (13) — 24.7 7.1 24.7 MDR expenses (2) — 0.2 — 1.5 Debt extinguishment loss (6) — — 0.4 — Legal related settlement charges (11) 1.0 — 1.0 1.3 Transaction expenses (4) 4.2 1.1 7.6 1.4 Contingent consideration adjustments (7) — (2.5 ) 1.7 (14.9 ) Loss on assets held-for-sale (19) — 51.7 — 51.7 Other income (18) (6.3 ) — (6.3 ) — Unrealized losses (gains) on forward foreign currency contracts (8) 14.1 (7.5 ) 20.1 11.4 Non-income tax charges (5) — — — 2.9 Worthless stock deduction (15) — — (107.2 ) — Income tax related items (9) (0.9 ) 19.5 14.7 82.1 Income tax effect of reconciling items (12) (14.4 ) (18.5 ) (70.1 ) (104.2 ) Non-GAAP net income $ 237.5 $ 219.3 $ 968.7 $ 984.2 Net Income Margin Percentage: GAAP net income margin percentage 18.1 % 9.6 % 19.6 % 11.3 % Impact of adjustments above 5.9 % 13.6 % 4.4 % 13.1 % Non-GAAP net income margin percentage 24.0 % 23.2 % 24.0 % 24.4 % Earnings per Share: GAAP income per share - Diluted $ 0.76 $ 0.37 $ 3.32 $ 1.83 Adjustment to net income (as detailed above) 0.25 0.52 0.76 2.13 Non-GAAP earnings per share – diluted (10) $ 1.01 $ 0.89 $ 4.08 $ 3.96 Adjusted EBITDA: Non-GAAP net income $ 237.5 $ 219.3 $ 968.7 $ 984.2 Interest expense (income), net 3.6 (7.8 ) 13.4 (9.4 ) Provision for income taxes 58.5 54.0 238.4 242.2 Depreciation expense, not adjusted above 24.1 22.8 92.2 89.6 Adjusted EBITDA $ 323.7 $ 288.3 $ 1,312.7 $ 1,306.6 Explanatory Notes to Reconciliations: (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 had 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 were calculated based on 235,971 and 237,553 weighted average diluted shares outstanding for the three and twelve months ended September 28, 2024, respectively, and 247,142 and 248,831 for the three and twelve months ended September 30, 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 impairment charges related to intangible assets from the Focal acquisition recorded during the second and third quarters of fiscal 2024. To reflect impairment charges for intangible assets and equipment acquired in the Mobidiag acquisition and impairment of our SSI ultrasound imaging assets recorded during the third quarter of fiscal 2023. (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. (17) To reflect the fair value write-up of inventory sold during the period related to the Endomagnetics acquisition during the fourth quarter of fiscal 2024. (18) To reflect amounts owed to the Company for a change in control provision related to a license agreement. (19) To reflect the loss to record the SSI ultrasound imaging business to fair value as the business was designated as assets held-for-sale during the fourth quarter of fiscal 2023. Reconciliation of GAAP to non-GAAP EPS Guidance: Guidance Range Guidance Range Quarter Ending December 28, 2024 Year Ending September 27, 2025 Low High Low High GAAP Net Income Per Share $ 0.81 $ 0.84 $ 3.53 $ 3.63 Amortization of acquired intangible assets $ 0.21 $ 0.21 $ 0.85 $ 0.85 Step-up of acquired inventory $ 0.01 $ 0.01 $ 0.01 $ 0.01 Restructuring, Integration and Other charges $ 0.01 $ 0.01 $ 0.03 $ 0.03 Tax Impact of Exclusions $ (0.04 ) $ (0.04 ) $ (0.17 ) $ (0.17 ) Non-GAAP Net Income Per Share $ 1.00 $ 1.03 $ 4.25 $ 4.35 Return on Invested Capital (ROIC) Reconciliation of Net Income to ROIC: Trailing Twelve Months Ended September 28, 2024 Adjusted Net Operating Profit After Tax GAAP net income $ 789.5 Adjustments to GAAP net income 179.2 Non-GAAP net income $ 968.7 Non-GAAP provision for income taxes 238.4 GAAP interest expense 122.1 Non-GAAP other income (118.9 ) Adjusted net operating profit before tax $ 1,210.3 Non-GAAP average effective tax rate (1) 19.75 % Adjusted net operating profit after tax $ 971.2 Average Net Debt plus Average Stockholders' Equity (2) Average total debt $ 2,676.4 Less: Average cash and cash equivalents (2,457.9 ) Average net debt $ 218.5 Average stockholders' equity (3) 6,652.9 Average net debt plus average stockholders' equity $ 6,871.4 Adjusted Return on Invested Capital 14.1 % (1) ROIC is presented on a TTM basis; non-GAAP effective tax rate for the trailing twelve month period was 19.75%. (2) Calculated using the average of the balances as of September 28, 2024 and September 30, 2023. (3) For Adjusted ROIC, stockholder's equity is adjusted (increased) to eliminate the effect of the impairment of intangible assets of $32.2 million in fiscal 2014, the impairment of goodwill of $685.7 million and an IPR&D asset of $46.0 million in fiscal 2018, the impairment of intangible assets and equipment of $685.4 million in fiscal 2019, the impairment of intangible assets and equipment of $30.2 million in fiscal 2020, the impairment of intangible assets of $45.1 million in fiscal 2022, the impairment of intangible assets and equipment of $223.8 million in fiscal 2023 and the impairment of an intangible asset of $4.3 million in the first quarter of fiscal 2024, $26.8 million in the second quarter of fiscal 2024 and $13.7 million in the third quarter of fiscal 2024. The impact of the intangible asset impairment charges is reflected net of tax. As of September 28, 2024 Adjusted Net Leverage Ratio: Total principal debt $ 2,547.5 Total cash and cash equivalents $ (2,160.2 ) Net principal debt $ 387.3 Adjusted EBITDA for the last four quarters $ 1,312.6 Adjusted Net Leverage Ratio 0.3 Other Supplemental Information: Three Months Ended Twelve Months Ended September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Geographic Revenues U.S. 75.5 % 75.8 % 75.0 % 75.9 % Europe 12.7 % 12.6 % 13.2 % 12.9 % Asia-Pacific 6.7 % 6.7 % 6.5 % 6.3 % All Others 5.1 % 4.9 % 5.3 % 4.9 % Total Revenues 100.0 % 100.0 % 100.0 % 100.0 %

自2022年底我们上次更新医疗技术行业薪酬最高的CEO名单以来，我们的前10名中出现了一些新面孔。然而，在这场金钱游戏的椅子音乐中，显然节奏已经放慢了。 尽管去年的名单总和超过了10亿美元，但我们对2023年行业最大收入的分析——结合了薪资、股票期权奖励、归属股份和奖金——总额要低得多：仅为4645万美元。 众所周知，去年对医疗技术融资来说是艰难的一年，影响了大型跨国公司、初创公司和公开市场。设备开发商的IPO放缓，裁员、拆分和销售增加，随着COVID-19大流行期间的繁荣时期之后，整个行业的紧缩——尽管普遍关闭，资本可能更自由地流动。 我们名单上的一些公司将这些意外之财投资于新的收购，以加强他们的核心业务，而他们现在开始为他们的领导者带来回报。一些公司在竞争对手退却时占据了聚光灯下的位置，其他公司——无论是简单还是不那么简单地——在好坏时期都看到了稳定增长。请继续阅读我们下面的完整排名。 1.Marc Casper - Thermo Fisher 年度薪酬：1898万美元 归属股票、期权：6188万美元 总计：8086万美元 百分比变化：-18.9% Thermo Fisher Scientific的Marc Casper在我们的前10名中领先，他即将迎来担任实验室设备和服务巨头总裁兼首席执行官的15周年——在这段时间里，公司的年收入从不到100亿美元增长到去年的超过420亿美元。 然而，2023年的数字比2022年的记录略低，2022年的年收入超过440亿美元，那一年Thermo Fisher尽管公共对COVID-19诊断和供应的需求下降，但年增长率仍达到15%。去年10月，由于外汇汇率的不利因素和核心产品销售的下降，公司最终将其财务预测削减了约10亿美元，此前公司关闭了测试制造设施并在年初解雇了工人。 Casper的总收入也有所下降，同比减少了近19%，但仍保持在8000万美元以上。 Thermo Fisher与Flagship Pioneering合作，打造新的生物科学工具初创公司 最近，Thermo Fisher以31亿美元的价格收购了瑞典蛋白质组学公司Olink，该公司提供仪器、抗体测试和研究服务。 其产品目录包括旨在将高通量蛋白质分析引入已安装的PCR硬件和测序机的分析方法。在去年秋天交易公告中，Casper表示，该公司的技术也将补充Thermo Fisher的质谱平台和其他实验室工具。 Medidata与Thermo Fisher PPD延长合同，AI解决方案成为关键焦点 “收购Olink突显了蛋白质组学对我们客户继续推进生命科学研究和精准医学所具有的深远影响，”他说。 7月，Thermo Fisher在最终获得英国和欧洲反垄断机构的批准后，完成了延迟的交易。Thermo Fisher同意每股支付26美元，比其之前股价高出约74%。 2.Kevin Lobo - Stryker 年度薪酬：2077万美元 归属股票、期权：3883万美元 总计：5959万美元 百分比变化：-1.9% Stryker的长期首席执行官Kevin Lobo以接近6000万美元的2023年薪酬包位居第二，与前一年基本持平。他领导了这家骨科设备供应商最近一段坎坷的道路，因为它应对了影响整个医疗技术行业乃至更多公司的计算机芯片和供应链挑战。 在2023年初，他告诉投资者，Stryker一直在努力摆脱在2022年积累的“历史最高”订单积压，仅公司的医疗部门就实现了全球季度销售额同比32%的增长。 “最糟糕的已经过去”：在订单积压不断增加的情况下，Stryker以184亿美元的销售额超越了自己的估计 同时，Lobo表示，连续五年Stryker的国际业务增长速度超过了其在美国的增长率，欧洲、加拿大、澳大利亚和新兴市场都有两位数的季度增长。 为了支持其海外业务，Stryker今年早些时候花费了2.46亿美元收购了法国关节置换硬件制造商Serf SAS。 Stryker裁员88人，继续推进关闭佛罗里达设施并淘汰495个工作岗位的计划 Serf以双动髋关节置换杯的发明者而闻名，该植入物内嵌有衬里，可以在不牺牲稳定性的情况下提供额外的活动范围。该公司还提供足部和膝关节植入物。 在此之前，Stryker投入了30亿美元收购了Vocera Communications，该公司生产智能手机应用程序和工作流分析软件，以及医院工作人员使用的手持设备和智能连接徽章。当时，Stryker表示将使用Vocera的中间件平台来帮助连接其各种医疗设备生成的数据。 3.Joaquin Duato - Johnson & Johnson 年度薪酬：2840万美元 归属股票、期权：2090万美元 总计：4930万美元 百分比变化：+78.7% 在不到24个月的时间里，强生公司的首席执行官Joaquin Duato设立了超过300亿美元的医疗技术并购支出——包括两项心血管领域的巨额交易——他在今年早些时候表示，随着公司旨在重塑其设备公司组合，这一趋势将继续。 这些收购包括2022年底以166亿美元收购微型心脏泵制造商Abiomed，随后以131亿美元收购Shockwave Medical及其用于清除阻塞动脉通路的导管。 但这不仅仅是引人注目的数十亿美元的合并；强生还花费了相对较小的4亿美元收购了Laminar及其减少中风的心脏塞植入物。这些交易在公司的财务报告中改变了天平，其之前的“介入解决方案”部门此后被重新命名为“心血管”。 强生公司在Abiomed巨额交易后宣称对医疗技术并购有“贪婪”的胃口 “Shockwave的收购，加上Abiomed和Laminar，补充了强生通过Biosense Webster在电生理学方面确立的全球领导地位——所有这些都构建了一个高度差异化的心血管组合，”Duato在4月份与投资者的电话会议上表示，当时公司宣布了这一交易。“我们对这笔交易感到兴奋。” Duato的薪酬包也得到了提振，与2022年相比增长了近80%，接近5000万美元，几乎60-40的比例在总报告薪酬和归属股票及期权奖励之间分配。 相关 强生公司将医疗技术负责人Ashley McEvoy列入薪酬最高的高管名单，2022年支付了740万美元 与此同时，强生公司启动了一个为期两年的项目，以重组其骨科业务，因为它希望退出利润较低的市场和产品线。 总的来说，公司表示预计到2025年底，退出的成本将在7亿到8亿美元之间，包括收入减少2.5亿美元，通过Duato所描述的“骨科改进之旅”。 “我们希望在我们竞争的每个领域都成为第一和第二，我们还没有达到那里，”他在2023年10月的投资者电话会议上说。“但我们非常有信心，我们将通过投资和在增长最快的领域增长来实现改进。” 4.Michael Farrell - ResMed 年度薪酬：1387万美元 归属股票、期权：2906万美元 总计：4293万美元 百分比变化：-0.7% 随着飞利浦（Philips）多年来的睡眠呼吸暂停设备召回事件，ResMed的Mick Farrell的公司地位上升，尽管这些事件并不完全对ResMed有利。 当发现用于绝缘其CPAP和BiPAP机器内部的聚氨酯泡沫碎片可能会脱落并进入人们的气道时，飞利浦一直在努力修复和更换全球超过550万台设备，同时累积了超过十亿美元的集体诉讼和解费用。 但许多人决定更换品牌——包括那些不想在等待期间多个晚上没有通气治疗的人。为了利用这一点，ResMed寻求增加其云连接设备的产品线，同时估计召回事件使需求增加了约50%。 飞利浦在CPAP召回事件中获得最终同意令后，计划重新进入美国睡眠呼吸暂停市场 然而，整个行业的供应链挑战和COVID-19之后的微芯片短缺最终限制了ResMed的响应。尽管它曾预测可能获得超过3亿美元的收益，但它被迫将产品配给高风险患者。 这些压力在2023年全年开始缓解，随着对新的国际生产线的投资。尽管如此，ResMed需要在快速变化的环境中进行重组，公司在去年秋季裁员约5%，然后改革其运营模式并调整其C级高管团队。 ResMed关于CPAP磁干扰的警告获得FDA I类召回标签 至于飞利浦最终以更大的力度回归CPAP市场，Farrell表示这是一场竞赛。 “我们拥有最小、最安静、最舒适和最云连接的设备……这不是可口可乐和百事可乐，其中一个退出了，现在百事可乐回来了，”Farrell在2023年4月的收益电话会议上说。 “这不是一个低增长的碳酸饮料市场。这是一个高增长的数字健康技术市场在医疗技术领域，我们就是这样推动它前进的，”他说。“让我们竞争。我们将保持我们的份额并增长它——游戏开始。我期待它。” 但是，展望未来，ResMed将不得不应对GLP-1s的潜在影响，该公司的股票在Eli Lilly发布其Zepbound减肥疗法在患有阻塞性睡眠呼吸暂停的患者中取得进展后下跌了15%。 5.Gary Guthart - Intuitive Surgical . 年度薪酬：1245万美元 归属股票、期权：2936万美元 总计：4181万美元 百分比变化：-6.8% 尽管GLP-1药物预计将给医疗领域带来变化，Intuitive Surgical今年早些时候还是略微上调了其机器人手术整体增长的预测。 这反映了减肥手术的比率下降——这是一个以前增长的市场，公司表示，由于像Ozempic、Wegovy和Zepbound这样的重磅减肥药物的崛起，这个市场自去年以来年复一年地趋于平稳。 尽管GLP-1热潮中减肥手术率放缓，Intuitive仍超过疫情前水平 “我们知道减肥手术耐受性良好，是一个很好的选择。我们也知道人们对药物感兴趣，只要服用药物就有效，如果停止服用就不再有效，”Intuitive的首席执行官Gary Guthart在4月的公司第一季度收益电话会议上说。“这对手术的未来意味着什么——我认为有很多意见，我还不打算对它们中的任何一个抱有太多信心。” 因此，公司在其对2024年全年手术数量增长的预测中给出了一个范围：假设减肥手术的比率继续下降，则低至14%，或者假设它们保持水平，则高达17%。 这比它在2023年底预测的13%到16%有所上升——对公司来说是一个标志性的一年，与前一年相比增长了22%。 Intuitive的风险投资部门以1.5亿美元关闭第二支基金，用于微创护理初创公司 “在该领域有很多意见……我认为现实是，没有人真正知道。我们将不得不一起经历它，”Guthart说，他的总薪酬包也比去年略有减少。这位长期首席执行官去年带回家了近4200万美元，比2022年下降了约7%。 今年，Intuitive预计将从其主要手术机器人的最新一代——da Vinci 5的推出，以及其单孔机器da Vinci SP在欧洲的批准中获益。 Intuitive Surgical首席执行官将总裁头衔移交给长期公司资深人士Dave Rosa “对于2024年，我们的优先事项如下：首先，我们将支持da Vinci 5和我们其他新平台的分阶段推出。其次，我们专注于支持外科医生采用专注的手术程序。第三，我们专注于提高我们产品的利润率和质量。最后，我们专注于提高那些从全球规模中受益的职能的生产力。” 6.Javier Rodriguez - DaVita 年度薪酬：671万美元 归属股票、期权：3261万美元 总计：3932万美元 百分比变化：+68.8% 在2019年中期担任肾脏护理和透析提供商DaVita的首席执行官后，Javier Rodriguez在纸面上至少提前收到了大部分薪酬——但这些薪酬现在在五年后开始显现。 在2020年他的第一个完整工作年，他获得了7340万美元的薪酬包，几乎完全由公司在其证券交易委员会文件中描述为旨在替代即将到来的五年的授予的股票期权奖励，相当于每年大约1370万美元。 2023年，这些奖励中有超过2350万美元被收入囊中；加上超过900万美元的归属股票和670万美元的其他报告薪酬，Rodriguez的总收入接近4000万美元——比前一年增长了近70%。 为了激励器官捐赠，DaVita为员工提供额外的休假 在那段时间里，DaVita也经历了全球大流行，去年通过与美敦力合资成立了一家新的肾脏护理公司，名为Mozarc Medical。 现在，公司已经将目光投向了海外业务的增长。在今年早些时候与投资者的电话会议上，Rodriguez表示，DaVita的目标是在由成熟的本地管理团队领导的国家开展业务——公司在过去几个月内签署了约3亿美元的交易，收购了整个南美洲的地点。这包括在巴西和哥伦比亚增加之前的业务，以及进入智利和厄瓜多尔。 “展望未来，我们将继续关注符合我们投资标准的收购机会，我们预计国际投资将与我们的历史水平大致一致，”Rodriguez说。“一旦这些收购完成，我们将在美国以外的13个国家提供护理，拥有500多个中心，治疗大约80000名患者，雇佣近20000名医疗专业人士。” “我们在我们运营的每个国际市场的临床基准上都表现优异，并且自2021年以来，我们在所有国家的住院率降低了11%——这推动了不必要的医疗开支的减少，对我们患者的生活产生了有意义的改善。” 7.Joseph Hogan - Align Technology 年度薪酬：2895万美元 归属股票、期权：994万美元 总计：3890万美元 百分比变化：-19.8% 作为制造透明塑料牙齿矫正器Invisalign品牌以及牙科扫描仪和软件的Align Technology公司的总裁兼首席执行官，Joe Hogan自2015年底上任以来，公司的年收入已经增长了四倍多，到去年年底接近39亿美元。 “截至[2023年第四季度]，我们实现了1700万Invisalign患者——包括470万青少年，以及400万Vivera保持器案例，以及超过[10万台]iTero扫描仪售出，”Hogan在年初Align年度收益发布时的一份声明中说。 这种增长是公司目标数字化正畸和修复牙科领域以及进入国际市场的结果。公司估计已经向全球超过33.5万名医生运送了Invisalign案例。 去年，Align还推出了其首款直接3D打印的正畸设备，即Invisalign腭扩张器，旨在帮助6至11岁的儿童通过一系列个性化的可拆卸插入物为即将长出的成人牙齿腾出空间。 Invisalign制造商推出AI应用程序进行家庭指导治疗 公司迅速跟进，于1月收购了德国3D打印提供商Cubicure，价格约为7900万欧元。 “Cubicure的收购带来了一个有才华的团队和独特的尖端技术进入Align，并将使我们能够扩大我们的3D打印业务，最终直接打印每天数百万的定制器具，”Hogan当时说。 “直接3D打印使Align能够创建3D打印解决方案，而无需先创建模具的额外步骤，使3D打印更加可持续和高效，”他说，而公司将继续概述其扩大直接制造制造平台的计划。 对于他的薪酬包，Hogan在2023年组建了一个令人满意的3890万美元，其中包括约1000万美元的归属股票奖励，而Align不将其作为薪酬的一部分发行期权。这仍然是从他在2021年仅在归属股票奖励中带回家的1.077亿美元的相当大的下降，这使他在我们之前的医疗技术公司首席执行官名单中排名第二。 8.Michael Mahoney - Boston Scientific 年度薪酬：1872万美元 归属股票、期权：1967万美元 总计：3840万美元 百分比变化：-1.8% 为了将波士顿科学公司提升到下一个水平，首席执行官Mike Mahoney表示，并购和内部交易将继续是优先事项。这家经常进行收购的公司在过去十年中进行了超过30次购买，最近又获得了旨在帮助其与最大的医疗技术公司竞争的新技术。 其中包括Farapulse及其同名的脉冲场消融系统，该系统在2021年中期以2.95亿美元的价格被收购。分析师预计，这种下一代房颤治疗将在获得1月份FDA批准后，到今年年底收回成本并带来更多收益。它将与美敦力、强生、雅培以及众多初创公司在这个新兴领域展开竞争。 波士顿科学的模块化、无线心脏节律植入物方法通过临床研究 波士顿科学还与Apollo Endosurgery签订了价值不到10亿美元的交易，该公司拥有胃肠缝合系统和减肥气球植入物，以及背部疼痛神经消融开发商Relievant Medsystems。 在十位数范围内，该公司已同意支付37亿美元收购Axonics和13亿美元收购Silk Road Medical，尽管这两笔交易尚未完成。 波士顿科学对Axonics的报价将使其在尿失禁和大便失禁的神经调节领域成为美敦力的主要竞争对手，拥有其骶神经刺激器植入物和基于水凝胶的填充注射。在联邦贸易委员会要求这两家公司提供更多信息作为其审查过程的一部分后，该收购被推迟到今年晚些时候。 波士顿科学声称首次获得美国药物涂层冠状动脉气球的批准 与此同时，Silk Road以其在颈动脉内安全处理斑块堆积的程序而闻名。该公司的方法暂时逆转血流，以便放置支架，并将可能危险的松散血块重定向，这些血块可能会导致大脑中的中风。 Mahoney的2023年薪酬包与前一年的收入基本持平，3840万美元主要在报告的薪酬和归属的股票和期权之间平均分配。 9.Stephen MacMillan - Hologic 年度薪酬：1556万美元 归属股票、期权：2122万美元 总计：3677万美元 百分比变化：+22.9% 今年早些时候，首席执行官Stephen MacMillan在旧金山的J.P. Morgan医疗保健会议上接过麦克风，向投资者介绍了“新的Hologic”——在COVID-19之后变得更“大、更快、更强”。 这家医疗技术公司在大流行诊断销售中获得巨额收益后，投入超过17.3亿美元进行了一系列并购交易，目标是通过内部收购来建立其核心业务。 这包括乳腺癌活检提供商Somatex和诊断测试开发商Diagenode、Biotheranostics和Mobidiag。最近，Hologic在今年5月以3.1亿美元的价格收购了肿瘤标记物制造商Endomag。 JPM24：首席执行官MacMillan希望您认识“新的Hologic” 这些收购——以及在大流行期间公司Panther高通量样本分析器基础的近翻倍——导致了诊断收入的40%增长，即使不包括多年来COVID测试销售的起伏。 “在COVID早期，我们和许多公司一样，放置了更多的仪器……最终的问题总是，‘它们在COVID之后会被使用吗？’”MacMillan在1月的JPM会议上说。 “这就是答案，伙计们，”他说。“这告诉你的是，更多的Panther正在全球范围内运行更多的菜单与更多的客户。”Hologic还花费了超过28亿美元进行股票回购。 与此同时，与2022年相比，MacMillan的薪酬也有所增加，2023年增长了近23%。 尽管他的报告年度薪酬——包括工资、股票和期权——基本持平，平均约为1500万美元，但去年他的实际奖励总计超过2100万美元。但与2021年在冠状病毒测试需求高峰时期归属的6400万美元股票相比，这还差得远。 10.Thomas Burns - Glaukos 年度薪酬：865万美元 归属股票、期权：2795万美元 总计：3661万美元 百分比变化：+327.2% 自2002年以来一直担任专注于眼科的Glaukos Corporation的首席执行官Thomas Burns，去年的薪酬增长了惊人的327%，使他跻身我们的前10名榜单。 尽管他过去三年报告的薪酬和股票期权奖励平均约为740万美元，但在2023财年，Burns实现了近2500万美元的期权和300万美元的归属股票——总计超过3661万美元，比之前的约850万美元大幅增加。 与此同时，Glaukos报告了公司创纪录的收入，今年第一季度净销售额为8560万美元，增长了16%。这在很大程度上是由其用于缓解青光眼伴随的眼内压力的微支架产品组合带来的20%增长所推动的。 “随着我们继续引领和推动干预性青光眼范式转变，市场对我们的iStent产品的反应和接受度一直保持强劲，”Burns在5月与投资者的收益电话会议上说。 Glaukos获得FDA批准的最新减压青光眼眼内支架 第一季度，公司还开始初步商业推广iDoseTR，这是一种微创注射植入物，旨在为青光眼提供持续三年的药物疗法。 “我对这次推出初期的进展感到非常满意。我们最初目标的15名外科医生在第一季度都成功完成了他们的首次iDose TR手术，早期的反馈和结果都非常积极，”Burns说，并补充说公司计划在今年扩大商业覆盖范围。 今年，医疗保险和医疗补助服务中心还为iDose TR授予了一个独特的程序代码，将于7月1日生效。据Glaukos称，该产品特定的标签将有助于扩大覆盖范围，并通过简化账单和报销流程，增加患者对药物输送植入物的接触。 参考资料：https://www.fiercebiotech.com/medtech/highest-paid-medtech-ceos-2023 识别微信二维码，添加生物制品圈小编，符合条件者即可加入 生物制品微信群！ 请注明：姓名+研究方向！ 版 权 声 明 本公众号所有转载文章系出于传递更多信息之目的，且明确注明来源和作者，不希望被转载的媒体或个人可与我们联系(cbplib@163.com)，我们将立即进行删除处理。所有文章仅代表作者观点，不代表本站立场。

MARLBOROUGH, Mass.--( BUSINESS WIRE )--Hologic, Inc. (Nasdaq: HOLX) announced today the Company’s financial results for the fiscal third quarter ended June 29, 2024. “In our third quarter of fiscal 2024, Hologic returns to top-line reported growth and once again exceeded the high-end of our guidance for both the top and bottom-line,” said Stephen P. MacMillan, the Company’s Chairman, President and Chief Executive Officer. “Our strong fiscal quarter and year-to-date results continue to highlight the durable strength across our broad portfolio, with our Diagnostics (ex-COVID), Breast Health, and Surgical franchises delivering at or above our expectations. We are excited to finish fiscal 2024 strong as we continue to build for the long term.” Recent Highlights Revenue of $1,011.4 million increased 2.7% for the quarter, or 3.1% in constant currency, primarily driven by higher sales in Molecular Diagnostics, Breast Imaging, and Surgical. Excluding COVID-19 revenues, total organic revenue grew 5.5%, or 5.8% on a constant currency basis. Diagnostics revenue increased 0.3%, or 0.7% in constant currency, primarily driven by higher Molecular Diagnostics sales, partially offset by lower sales of COVID-19 assays compared to the prior year period. Excluding COVID-19 revenues, Diagnostics revenue grew 6.0% on an organic, constant currency basis. Molecular Diagnostics revenue grew 2.8%, or 3.1% in constant currency, primarily driven by higher sales of BV CV/TV and non-COVID-19 respiratory assays compared to the prior year period. Excluding COVID-19 revenues, Molecular Diagnostics revenue grew 10.5% on an organic, constant currency basis. Breast Health revenue increased 6.9%, or 7.1% in constant currency, primarily driven by strong gantry sales and service. Excluding SSI, Breast Health revenue increased 7.9%, or 8.2% in constant currency. Surgical revenue grew 5.9%, or 6.2% in constant currency, primarily driven by solid sales of MyoSure and Fluent Fluid Management products. Cash flow from operations remained strong in the third quarter at $405.7 million. Repurchased 1.4 million shares for $100 million. Closed the acquisition of Endomagnetics on July 25, 2024, which develops and sells breast surgery localization and lymphatic tracing technologies. Key financial results for the fiscal third quarter shown in the table below: GAAP Non-GAAP Q3’24 Q3’23 Change Increase (Decrease) Q3’24 Q3’23 Change Increase (Decrease) Revenues 1,011.4 984.4 2.7% 1,011.4 984.4 2.7% Gross Margin 55.4% 37.3% 1,810 bps 61.1% 60.8% 30 bps Operating Expenses 316.3 366.1 (13.6%) 302.8 313.9 (3.5%) Operating Margin 24.1% 0.1% 2,400 bps 31.2% 28.9% 230 bps Net Margin 19.2% (4.1%) 2,330 bps 24.8% 23.5% 130 bps Diluted EPS $0.82 ($0.16) 612.5% $1.06 $0.93 14.0% Throughout this press release, all dollar figures are in millions, except EPS, unless otherwise noted. Some totals may not foot due to rounding. Unless otherwise noted, all results are compared to the corresponding prior year period. Non-GAAP results exclude certain cash and non-cash items as discussed under “Use of Non-GAAP Financial Measures.” Constant currency percentage changes show current period revenue results as if the foreign exchange rates were the same as those in the prior year period. Our fiscal third quarter organic revenue results exclude the divested Blood Screening and SSI ultrasound imaging businesses. Revenue from acquired businesses is generally included in organic revenue starting a year after the acquisition. Revenue Detail Increase/(Decrease) $ in millions Q3’24 Q3’23 Global Reported Change Global Constant Currency Change U.S. Reported Change International Reported Change International Constant Currency Change Diagnostics Cytology and Perinatal $122.2 $126.8 (3.6%) (2.9%) (8.0%) 4.1% 5.9% Molecular Diagnostics $310.7 $302.2 2.8% 3.1% 2.2% 5.2% 6.6% Blood Screening $7.9 $10.7 (26.2%) (26.2%) (26.2%) N/A N/A Total Diagnostics $440.8 $439.7 0.3% 0.7% (1.2%) 4.7% 6.3% Organic Diagnostics ex. COVID-19 $394.9 $374.2 5.5% 6.0% 4.0% 10.1% 11.7% Breast Health Breast Imaging $309.2 $286.1 8.1% 8.3% 8.9% 5.3% 6.5% Interventional Breast Solutions $75.8 $74.2 2.2% 2.5% 1.5% 4.5% 6.2% Total Breast Health $385.0 $360.3 6.9% 7.1% 7.3% 5.1% 6.4% GYN Surgical $166.6 $157.3 5.9% 6.2% 2.4% 18.8% 19.8% Skeletal Health $19.0 $27.1 (29.9%) (29.7%) (25.6%) (37.0%) (36.2%) Total $1,011.4 $984.4 2.7% 3.1% 2.0% 5.1% 6.4% Organic Revenue (definition above) $1,003.0 $969.6 3.4% 3.8% 2.4% 6.9% 8.3% Organic Revenue ex. COVID-19 $965.0 $914.8 5.5% 5.8% 4.3% 9.4% 10.8% Other Financial Highlights U.S. revenue of $765.3 million increased 2.0%. International revenue of $246.1 million increased 5.1%, or 6.4% in constant currency. GAAP gross margin of 55.4% increased 1,810 basis points primarily due to lower impairment charges, driven by prior year period charges for intangible assets and equipment from the Mobidiag acquisition and SSI ultrasound imaging assets. Non-GAAP gross margin of 61.1% increased 30 basis points primarily due to an increase in sales compared to the prior year period. GAAP operating margin of 24.1% increased 2,400 basis points primarily due to lower impairment charges, driven by prior year period charges for intangible assets and equipment from the Mobidiag acquisition and SSI ultrasound imaging assets, as well as higher revenue and lower operating expenses. Non-GAAP operating margin of 31.2% increased 230 basis points, primarily due to higher revenue and lower operating expenses compared to the prior year period. GAAP net income of $194.5 million increased 580.2% and non-GAAP net income of $250.7 million increased 8.4%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $338.5 million, an increase of 8.5%. COVID-19 revenues, which consist of COVID-19 assay revenue of $13.3 million, and other COVID-19 related revenue plus revenue from discontinued products of $24.7 million, decreased (30.4%) in constant currency. Total principal debt outstanding at the end of the third quarter was $2.56 billion. The Company ended the quarter with cash and equivalents of $2.4 billion, and an adjusted net leverage ratio (net debt over EBITDA) of 0.1 times. On a trailing 12-month basis, adjusted Return on Invested Capital (ROIC) was 14.1%, a decrease of (10) basis points compared to the prior year period. Financial Guidance for the Fourth Quarter and Full-Year Fiscal 2024 “Hologic delivered another strong financial performance in our fiscal third quarter of 2024, underscored by another quarter of sequential improvement in our operating margin and strong cash flow,” said Karleen Oberton, Hologic’s Chief Financial Officer. “As expected, the quality of our earnings continues to improve as we continue to capitalize on our large Diagnostics installed base and our Breast Health business returns to strength. We are on track for a strong finish to fiscal 2024.” Hologic’s financial guidance for the fourth quarter and full year 2024 is shown in the table below. The guidance is based on a full year non-GAAP tax rate of approximately 19.75%, and diluted shares outstanding of approximately 238 million for the full year. Constant currency guidance assumes that foreign exchange rates are the same in fiscal 2024 as in fiscal 2023. Organic revenue guidance for fiscal 2024 is in constant currency and excludes the divested Blood Screening, SSI ultrasound imaging, and Endomagnetics businesses. Revenue from acquired businesses is generally included in organic revenue guidance starting a year after the acquisition. Organic revenue excluding COVID-19 is in constant currency and is organic revenue excluding COVID-19 assay revenue, COVID-19 related revenue, and discontinued product sales in Diagnostics. Current Guidance* Previous Guidance Guidance $ Reported % Increase (Decrease) Constant Currency % Increase (Decrease) Organic excluding COVID-19 % Increase Guidance $ Fiscal 2024 Revenue $4,012 - $4,027 (0.4%) to (0.1%) (0.5%) to (0.1%) 5.2% to 5.6% $4,000 - $4,050 GAAP EPS $3.37 - $3.44 84.2% to 88.0% $3.45 - $3.55 Non-GAAP EPS $4.04 - $4.11 2.0% to 3.8% $4.02 - $4.12 Q4 2024 Revenue $970 - $985 2.6% to 4.2% 2.9% to 4.5% 5.0% to 6.6% GAAP EPS $0.80 - $0.87 116.2% to 135.1% Non-GAAP EPS $0.97 - $1.04 9.0% to 16.9% *Fiscal 2024 has four fewer selling days compared to fiscal 2023. Factored into our guidance, we estimate the impact of the four fewer selling days to be a headwind of more than 100 bps for the full year. Fiscal 2024 and Q4 guidance incorporates Q3 performance, the addition of Endomagnetics, and impact from the temporary stop-ship of Horizon DXA systems (Skeletal) due to a non-conformance issue. U se of Non-GAAP Financial Measures The Company has presented the following non-GAAP financial measures in this press release: constant currency revenues; organic revenues; organic revenues excluding COVID-19; non-GAAP gross margin; non-GAAP operating expenses; non-GAAP operating margin; non-GAAP effective tax rate; non-GAAP net income; non-GAAP net margin; non-GAAP EPS; adjusted EBITDA; adjusted net leverage ratio and adjusted ROIC. Organic revenue for the fiscal third quarter of 2024 excludes the divested Blood Screening and SSI ultrasound imaging businesses. Revenue from acquired businesses is generally included in organic revenue starting a year after the acquisition. Organic revenue excluding COVID-19 revenues is organic revenue less COVID-19 assay revenue, COVID-19 related sales of instruments, collection kits and ancillaries, COVID-19 related revenue from Diagenode and Mobidiag, as well as COVID-19 related license revenue, and revenues from discontinued products in Diagnostics. The Company defines its non-GAAP net income, EPS, and other non-GAAP financial measures to exclude, as applicable: (i) the amortization of intangible assets; (ii) the impairment of goodwill and intangible assets and equipment and the loss to record assets held-for-sale to fair value less costs to sell; (iii) adjustments to record contingent consideration at fair value; (iv) charges to write-off inventory for a product line discontinuance; (v) restructuring charges, facility closure and consolidation charges (including accelerated depreciation), and costs incurred to integrate acquisitions (including retention, transaction bonuses, legal and professional consulting services); (vi) transaction related expenses for acquisitions; (vii) third-party expenses incurred related to the implementation of the European MDR/IVDR requirements and obtaining the appropriate approvals for its existing products; (viii) debt extinguishment losses and related transaction costs; (ix) unrealized (gains) losses on the mark-to-market of foreign currency contracts to hedge operating results for which the Company has not elected hedge accounting; (x) litigation settlement charges (benefits) and non-income tax related charges (benefits); (xi) other-than-temporary impairment losses on investments and realized gains and losses resulting from the sale of investments; (xii) the impacts related to internal restructurings and non-operational items; (xiii) other one-time, non-recurring, unusual or infrequent charges, expenses or gains that may not be indicative of the Company's core business results; and (xiv) income taxes related to such adjustments. The Company defines adjusted EBITDA as its non-GAAP net income plus net interest income/expense, income taxes, and depreciation and amortization expense included in its non-GAAP net income. The Company defines its adjusted net leverage ratio as the principal amount of its debt net of cash and cash equivalents, divided by its adjusted EBITDA for the last four quarters. The Company defines its adjusted ROIC as its non-GAAP operating income for a trailing twelve months tax effected by its non-GAAP effective tax rate divided by the sum of its average net debt and stockholders’ equity, which is adjusted to exclude the effects of goodwill and intangible assets and equipment impairment charges. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The Company's definition of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this press release adjust for specified items many of which can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of Hologic's historical operating results, comparison to competitors' operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting Hologic's business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the tables accompanying this release. Conference Call and Webcast Hologic’s management will host a conference call at 4:30 p.m. ET today to discuss its financial results for the third quarter of fiscal 2024. Interested participants may listen to the call by dialing 888-394-8218 (in the U.S. and Canada) or +1 773-305-6853 (for international callers) and referencing access code 5372869. Participants may also click to join . Participants should dial in 5-10 minutes before the call begins. The Company will also provide a live and replay webcast of the call at hologic.com/investors. The replay of the call will be available approximately two hours after the call ends through Friday, August 23, 2024. About Hologic, Inc. Hologic, Inc. is an innovative medical technology company primarily focused on improving women's health and well-being through early detection and treatment. For more information on Hologic, visit www.hologic.com . Hologic and associated logos are trademarks and/or registered trademarks of Hologic, Inc. and/or its subsidiaries in the United States and/or other countries. Forward-Looking Statements This news release contains forward-looking information that involves risks and uncertainties, including statements about the Company’s plans, objectives, expectations and intentions. Such statements include, without limitation: financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; the Company’s strategies, positioning, resources, capabilities, and expectations for future performance; and the Company's outlook and financial and other guidance. These forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated. Risks and uncertainties that could adversely affect the Company’s business and prospects, and otherwise cause actual results to differ materially from those anticipated, include, without limitation: the ongoing and possible future effects of global challenges, including macroeconomic uncertainties, such as inflation, bank failures, rising interest rates and availability of capital markets, geopolitical conflicts, wars, other economic disruptions and U.S. and global recession concerns, on the Company’s customers and suppliers and on the Company’s business, financial condition, results of operations and cash flows and the Company’s ability to draw down its revolver; the effect of the worldwide political and social uncertainty and divisions, including the impact on trade regulation and tariffs, that may adversely impact the cost and sale of the Company’s products in certain countries, or increase the costs the Company may incur to purchase materials, parts and equipment from its suppliers; the ability to execute acquisitions and the impact and anticipated benefits of completed acquisitions and acquisitions the Company may complete in the future; the development of new competitive technologies and products and competition; the Company’s ability to predict accurately the demand for its products, and products under development and to develop strategies to address markets successfully; continued demand for the Company’s COVID-19 assays; potential cybersecurity threats and targeted computer crime; the ongoing and possible future effects of supply chain constraints, including the availability of critical raw materials and components, as well as cost inflation in materials, packaging and transportation; the possibility of interruptions or delays at the Company’s manufacturing facilities, or the failure to secure alternative suppliers if any of the Company’s sole source third-party manufacturers fail to supply the Company; the ability to consolidate certain of the Company’s manufacturing and other operations on a timely basis and within budget, without disrupting its business and to achieve anticipated cost synergies related to such actions; the ability of the Company to successfully manage leadership and organizational changes, including the ability of the Company to attract, motivate and retain key employees and maintain engagement and efficiency in remote work environments; the ability to obtain and maintain regulatory approvals and clearances for the Company’s products, including the implementation of the European Union Medical Device Regulations and In Vitro Diagnostic Regulation requirements, and to maintain compliance with complex and evolving regulations and quality standards, as well as the uncertainty of costs required to obtain and maintain compliance with such regulatory and quality matters; the Company’s reliance on third-party reimbursement policies to support the sales and market acceptance of its products, including the possible adverse impact of government regulation and changes in the availability and amount of reimbursement and uncertainties for new products or product enhancements; changes to applicable laws and regulations, including tax laws, global health care reform, and import/export trade laws; changes in guidelines, recommendations and studies published by various organizations that could affect the use of the Company’s products; uncertainties inherent in the development of new products and the enhancement of existing products, including FDA approval and/or clearance and other regulatory risks, technical risks, cost overruns and delays; the risk that products may contain undetected errors or defects or otherwise not perform as anticipated; risks associated with strategic alliances and the ability of the Company to realize anticipated benefits of those alliances; the risks of conducting business internationally; the risk of adverse exchange rate fluctuations on the Company’s international activities and businesses; the early stage of market development for certain of the Company’s products; the Company’s leverage risks, including the Company’s obligation to meet payment obligations and financial covenants associated with its debt; the effect of any future public health crises, including the timing, scope and effect of U.S. and international governmental, regulatory, fiscal, monetary and public health responses to such crises; risks related to the use and protection of intellectual property; expenses, uncertainties and potential liabilities relating to litigation, including, without limitation, commercial, intellectual property, employment and product liability litigation; cost and expenses of investigative and legal proceedings and compliance risks; potential negative impacts resulting from climate change or other environmental, social and governance and sustainability related matters; and technical innovations that could render products marketed or under development by the Company obsolete. The risks included above are not exhaustive. Other factors that could adversely affect the Company's business and prospects are described in the filings made by the Company with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements presented herein to reflect any change in expectations or any change in events, conditions or circumstances on which any such statements are based. SOURCE: Hologic, Inc. HOLOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per share data) Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Revenues : Product $ 811.2 $ 799.1 $ 2,467.2 $ 2,522.9 Service and other 200.2 185.3 575.1 562.2 Total revenues 1,011.4 984.4 3,042.3 3,085.1 Cost of revenues: Product 298.2 291.0 913.9 879.3 Amortization of acquired intangible assets 44.4 51.6 134.9 159.3 Impairment of intangible assets and equipment 13.3 179.5 39.2 179.5 Service and other 95.2 94.8 284.2 295.8 Gross profit 560.3 367.5 1,670.1 1,571.2 Operating expenses: Research and development 64.1 72.6 205.5 221.4 Selling and marketing 146.3 149.8 439.4 455.7 General and administrative 94.0 90.2 306.2 299.5 Amortization of acquired intangible assets 5.3 7.1 24.3 21.9 Impairment of intangible assets and equipment 0.4 44.3 5.6 44.3 Contingent consideration - fair value adjustments — — 1.7 (12.4 ) Restructuring charges 6.2 2.1 34.8 4.9 Total operating expenses 316.3 366.1 1,017.5 1,035.3 Income from operations 244.0 1.4 652.6 535.9 Interest income 28.4 32.5 80.3 84.6 Interest expense (31.9 ) (27.7 ) (90.2 ) (83.0 ) Other income (expense), net 0.2 5.9 0.8 (7.0 ) Income before income taxes 240.7 12.1 643.5 530.5 Provision for income taxes 46.2 52.6 32.6 165.1 Net income (loss) $ 194.5 $ (40.5 ) $ 610.9 $ 365.4 Net income (loss) per common share: Basic $ 0.83 $ (0.16 ) $ 2.58 $ 1.48 Diluted $ 0.82 $ (0.16 ) $ 2.57 $ 1.47 Weighted average number of shares outstanding: Basic 234,604 246,908 236,373 247,319 Diluted 236,466 246,908 238,081 249,393 HOLOGIC, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) June 29, 2024 September 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,439.1 $ 2,722.5 Accounts receivable, net 628.5 625.6 Inventory 665.5 617.6 Other current assets 263.9 206.9 Assets held-for-sale - current assets — 11.9 Total current assets 3,997.0 4,184.5 Property, plant and equipment, net 528.8 517.0 Goodwill and intangible assets 3,978.7 4,169.9 Other assets 385.6 267.9 Total assets $ 8,890.1 $ 9,139.3 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities : Current portion of long-term debt $ 37.5 $ 287.0 Accounts payable and accrued liabilities 745.9 712.9 Deferred revenue 219.0 199.2 Assets held-for-sale - current liabilities — 8.2 Total current liabilities 1,002.4 1,207.3 Long-term debt, net of current portion 2,505.6 2,531.2 Deferred income taxes 17.8 20.2 Other long-term liabilities 413.4 363.7 Total stockholders' equity 4,950.9 5,016.9 Total liabilities and stockholders’ equity $ 8,890.1 $ 9,139.3 HOLOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Nine Months Ended June 29, 2024 July 1, 2023 OPERATING ACTIVITIES Net income $ 610.9 $ 365.4 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 75.2 66.7 Amortization of acquired intangible assets 159.2 181.2 Stock-based compensation expense 69.1 60.6 Deferred income taxes (52.3 ) (100.2 ) Intangible asset and equipment impairment charges 44.8 223.8 Contingent consideration fair value adjustments 1.7 (12.4 ) Other adjustments and non-cash items 32.4 30.6 Changes in operating assets and liabilities, excluding the effect of acquisitions and dispositions: Accounts receivable (2.5 ) (51.0 ) Inventories (47.1 ) (48.5 ) Prepaid income taxes (73.9 ) 15.3 Prepaid expenses and other assets (4.2 ) 24.6 Accounts payable 26.5 (20.3 ) Accrued expenses and other liabilities 58.5 10.7 Deferred revenue 19.9 46.0 Net cash provided by operating activities 918.2 792.5 INVESTING ACTIVITIES Sale of business, net of cash disposed (31.3 ) — Capital expenditures (56.0 ) (55.5 ) Proceeds from the Department of Defense — 20.5 Increase in equipment under customer usage agreements (43.9 ) (42.2 ) Strategic investments (42.5 ) (10.0 ) Purchase of intellectual property (10.0 ) — Other activity (1.6 ) (8.9 ) Net cash used in investing activities (185.3 ) (96.1 ) FINANCING ACTIVITIES Repayment of long-term debt (278.1 ) (11.3 ) Payment of contingent consideration (2.6 ) (7.6 ) Payment of deferred acquisition consideration — (0.8 ) Repurchases of common stock (776.8 ) (263.6 ) Proceeds from issuance of common stock pursuant to employee stock plans 25.2 37.7 Payment of minimum tax withholdings on net share settlements of equity awards (16.6 ) (23.7 ) Payments under finance lease obligations (2.9 ) (3.3 ) Net cash used in financing activities (1,051.8 ) (272.6 ) Effect of exchange rate changes on cash and cash equivalents 2.3 1.7 Net (decrease) increase in cash and cash equivalents (316.6 ) 425.5 Cash and cash equivalents, beginning of period* 2,755.7 2,339.5 Cash and cash equivalents, end of period $ 2,439.1 $ 2,765.0 *Includes $33.2 million of cash recorded in assets held-for-sale - current assets as of September 30, 2023. HOLOGIC, INC. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited) (In millions, except earnings per share) Reconciliation of GAAP Revenue to Organic Revenue Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Consolidated GAAP Revenue $ 1,011.4 $ 984.4 $ 3,042.3 $ 3,085.1 Less: Blood Screening revenue (7.9 ) (10.7 ) (22.8 ) (28.5 ) Less: SSI revenue (0.5 ) (4.1 ) (2.3 ) (14.7 ) Organic Revenue $ 1,003.0 $ 969.6 $ 3,017.2 $ 3,041.9 Less: COVID-19 Assays (13.3 ) (28.7 ) (63.4 ) (226.8 ) Less: COVID-19 Related Revenue* (24.7 ) (25.8 ) (79.1 ) (88.6 ) Less: Discontinued Product Revenue — (0.3 ) (0.4 ) (2.9 ) Organic Revenue excluding COVID-19 $ 965.0 $ 914.8 $ 2,874.3 $ 2,723.6 *Revenues estimated to be related to COVID assay sales for instruments, collection kits and ancillaries. Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Gross Profit: GAAP gross profit $ 560.3 $ 367.5 $ 1,670.1 $ 1,571.2 Adjustments: Amortization of acquired intangible assets (1) 44.4 51.6 134.9 159.3 Impairment of intangible assets and equipment (14) 13.3 179.5 39.2 179.5 Product line discontinuance (13) — — 7.1 — Integration/consolidation costs (3) — (0.2 ) — (0.1 ) Non-GAAP gross profit $ 618.0 $ 598.4 $ 1,851.3 $ 1,909.9 Gross Margin Percentage: GAAP gross margin percentage 55.4 % 37.3 % 54.9 % 50.9 % Impact of adjustments above 5.7 % 23.5 % 6.0 % 11.0 % Non-GAAP gross margin percentage 61.1 % 60.8 % 60.9 % 61.9 % Operating Expenses: GAAP operating expenses $ 316.3 $ 366.1 $ 1,017.5 $ 1,035.3 Adjustments: Amortization of acquired intangible assets (1) (5.3 ) (7.1 ) (24.3 ) (21.9 ) Impairment of intangible assets and equipment (14) (0.4 ) (44.3 ) (5.6 ) (44.3 ) Transaction expenses (4) (1.6 ) — (3.4 ) (0.3 ) Contingent consideration adjustments (7) — — (1.7 ) 12.4 Integration/consolidation costs (3) — — — (0.5 ) Purchased research and development asset charge (16) — — (10.0 ) — MDR expenses (2) — (0.2 ) — (1.3 ) Legal related settlements (11) — 1.0 — (1.3 ) Restructuring charges (3) (6.2 ) (2.1 ) (34.8 ) (4.9 ) Non-income tax benefit/charge, net (5) — 0.5 — (2.9 ) Non-GAAP operating expenses $ 302.8 $ 313.9 $ 937.7 $ 970.3 Operating Margin: GAAP income from operations $ 244.0 $ 1.4 $ 652.6 $ 535.9 Adjustments to gross profit as detailed above 57.7 230.9 181.2 338.7 Adjustments to operating expenses as detailed above 13.5 52.2 79.8 65.0 Non-GAAP income from operations $ 315.2 $ 284.5 $ 913.6 $ 939.6 Operating Margin Percentage: GAAP income from operations margin percentage 24.1 % 0.1 % 21.5 % 17.4 % Impact of adjustments above 7.1 % 28.8 % 8.5 % 13.1 % Non-GAAP operating margin percentage 31.2 % 28.9 % 30.0 % 30.5 % Pre-Tax Income: GAAP pre-tax earnings $ 240.7 $ 12.1 $ 643.5 $ 530.5 Adjustments to pre-tax earnings as detailed above 71.2 283.1 261.0 403.7 Debt extinguishment loss (6) — — 0.4 — Unrealized losses (gains) on forward foreign currency contracts (8) 0.5 (0.9 ) 6.2 19.0 Non-GAAP pre-tax income $ 312.4 $ 294.3 $ 911.1 $ 953.2 Net Income (loss): GAAP net income (loss) $ 194.5 $ (40.5 ) $ 610.9 $ 365.4 Adjustments: Amortization of acquired intangible assets (1) 49.7 58.7 159.2 181.2 Impairment of intangible assets and equipment (14) 13.7 223.8 44.8 223.8 Restructuring and integration/consolidation costs (3) 6.2 1.9 34.8 5.5 Purchased research and development asset charge (16) — — 10.0 — Product line discontinuance (13) — — 7.1 — MDR expenses (2) — 0.2 — 1.3 Debt extinguishment loss (6) — — 0.4 — Legal related settlements (11) — (1.0 ) — 1.3 Transaction expenses (4) 1.6 — 3.4 0.3 Contingent consideration adjustments (7) — — 1.7 (12.4 ) Unrealized losses (gains) on forward foreign currency contracts (8) 0.5 (0.9 ) 6.2 19.0 Non-income tax (benefit) charge, net (5) — (0.5 ) — 2.9 Worthless stock deduction (15) — — (107.2 ) — Income tax related items (9) 3.7 42.7 15.6 62.3 Income tax effect of reconciling items (12) (19.2 ) (53.1 ) (55.7 ) (85.7 ) Non-GAAP net income $ 250.7 $ 231.3 $ 731.2 $ 764.9 Net Income (Loss) Percentage: GAAP net income (loss) percentage 19.2 % (4.1 )% 20.1 % 11.8 % Impact of adjustments above 5.6 % 27.6 % 3.9 % 13.0 % Non-GAAP net income percentage 24.8 % 23.5 % 24.0 % 24.8 % Earnings (Loss) per Share: GAAP income (loss) per share - Diluted $ 0.82 $ (0.16 ) $ 2.57 $ 1.47 Adjustment to net income (loss) (as detailed above) 0.24 1.09 0.50 1.60 Non-GAAP earnings per share – diluted (10) $ 1.06 $ 0.93 $ 3.07 $ 3.07 Adjusted EBITDA: Non-GAAP net income $ 250.7 $ 231.3 $ 731.2 $ 764.9 Interest expense (income), net 3.5 (4.8 ) 9.9 (1.6 ) Provision for income taxes 61.7 63.1 179.9 188.3 Depreciation expense, not adjusted above 22.6 22.3 68.0 66.7 Adjusted EBITDA $ 338.5 $ 311.9 $ 989.0 $ 1,018.3 Explanatory Notes to Reconciliations: (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 had 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 Mobidiag’s Finland and France Facilities. (4) To reflect expenses incurred 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 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 236,466 and 238,081 weighted average diluted shares outstanding for the three and nine months ended June 29, 2024, respectively, and 249,107 and 249,393 for the three and nine months ended July 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 referred to 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 recorded in the first quarter of fiscal 2024 and an impairment charge related to intangible assets from the Focal acquisition recorded in the second and third quarters of fiscal 2024, respectively. To reflect impairment charges for intangible assets and equipment acquired in the Mobidiag acquisition and impairment of our SSI ultrasound imaging assets during the third quarter of fiscal 2023. (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. Reconciliation of GAAP to non-GAAP EPS Guidance: Guidance Range Guidance Range Quarter Ending September 28, 2024 Year Ending September 28, 2024 Low High Low High GAAP Net Income Per Share $0.80 $0.87 $3.37 $3.44 Amortization of acquired intangible assets 0.20 0.20 0.87 0.87 Impairment of Intangible asset - - 0.19 0.19 Restructuring, Integration and Other charges 0.01 0.01 0.25 0.25 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) (0.22) (0.22) Non-GAAP Net Income Per Share $0.97 $1.04 $4.04 $4.11 Return on Invested Capital (ROIC) Reconciliation of Net Income to ROIC: Trailing Twelve Months Ended June 29, 2024 Adjusted Net Operating Profit After Tax GAAP net income $ 701.5 Adjustments to GAAP net income 249.0 Non-GAAP net income $ 950.5 Non-GAAP provision for income taxes 233.9 Non-GAAP interest expense 118.2 Non-GAAP other income (121.3 ) Adjusted net operating profit before tax $ 1,181.3 Non-GAAP average effective tax rate (1) 19.8 % Adjusted net operating profit after tax $ 948.0 Average Net Debt plus Average Stockholders' Equity (2) Average total debt $ 2,682.1 Less: Average cash and cash equivalents (2,602.0 ) Average net debt $ 80.1 Average stockholders' equity (3) 6,645.8 Average net debt plus average stockholders' equity $ 6,725.9 Adjusted Return on Invested Capital 14.1 % Adjusted ROIC (adjusted net operating profit after tax above divided by average net debt plus average stockholders’ equity) (1) ROIC is presented on a TTM basis; non-GAAP effective tax rate for the entire trailing twelve-month period was 19.75%. (2) Calculated using the average of the balances as of June 29, 2024, and July 1, 2023. (3) For Adjusted ROIC, stockholder's equity is adjusted (increased) to eliminate the effect of the impairment of intangible assets of $32.2 million in fiscal 2014, the impairment of goodwill of $685.7 million and an IPR&D asset of $46.0 million in fiscal 2018, the impairment of intangible assets and equipment of $685.4 million in fiscal 2019, the impairment of intangible assets and equipment of $30.2 million in fiscal 2020, the impairment of intangible assets of $45.1 million in fiscal 2022, the impairment of intangible assets and equipment of $223.8 million in fiscal 2023 and the impairment of an intangible asset of $4.3 million in the first quarter of fiscal 2024, $26.8 million in the second quarter of fiscal 2024 and $13.7 million in the third quarter of fiscal 2024. The impact of the intangible asset impairment charges is reflected in net of tax. As of June 29, 2024 Net Leverage Ratio: Total principal debt $ 2,556.9 Total cash and cash equivalents $ (2,439.1 ) Net principal debt $ 117.8 EBITDA for the last four quarters $ 1,277.3 Net Leverage Ratio 0.1 Other Supplemental Information: Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Geographic Revenues United States 75.7 % 76.2 % 74.9 % 75.9 % Europe 12.6 % 13.1 % 13.4 % 13.9 % Asia-Pacific 6.4 % 6.4 % 6.4 % 6.2 % Rest of World 5.3 % 4.3 % 5.3 % 4.0 % Total Revenues 100.0 % 100.0 % 100.0 % 100.0 %