01—Abstract
Summary
Summary of the 8-K filed February 6, 2024. Cited figures are marked; the original filing is the authoritative source.
Veralto Corporation (NYSE: VLTO) reported fourth-quarter and full-year 2023 results in a press release furnished as Exhibit 99.1 to this Form 8-K.
For the fourth quarter, sales rose 3.3% year-over-year to $1,288 milliona with non-GAAP core sales growth of 1.7%. GAAP net earnings were $200 million, or $0.81 per diluted share, and non-GAAP adjusted net earnings were $215 million, or $0.87 per diluted share. Operating cash flow was $263 million and non-GAAP free cash flow was $241 million.
For full year 2023, sales increased 3.1% to $5,021 millionb, with non-GAAP core sales growth of 2.6%. GAAP net earnings were $839 million, or $3.40 per diluted share, versus $3.19 per diluted share on an adjusted non-GAAP basis. Operating cash flow was $963 million and free cash flow was $911 million.
The company's balance sheet shows $762 millionc of cash and $2,629 million of long-term debt as of December 31, 2023, following the separation from Danaher, which included approximately $2.6 billion of long-term debt issuance. For 2024, management expects first-quarter non-GAAP core sales to be approximately flat year-over-year, with adjusted operating profit margin of 23.0% to 23.5% and adjusted diluted EPS of $0.73 to $0.78. For full year 2024, the company anticipates low-single-digit non-GAAP core sales growth, adjusted operating profit margin expansion of 50 to 75 basis points, adjusted diluted EPS of $3.20 to $3.30, and free cash flow conversion of approximately 100%.
02—Key points
Key Highlights
- Fourth-quarter sales of $1,288 million, up 3.3% year-over-year, with non-GAAP core sales growth of 1.7%
- Full-year 2023 sales of $5,021 million, up 3.1%, with non-GAAP core sales growth of 2.6%
- Full-year GAAP diluted EPS of $3.40; non-GAAP adjusted diluted EPS of $3.19
- Full-year operating cash flow of $963 million and non-GAAP free cash flow of $911 million
- 2024 guidance: adjusted diluted EPS of $3.20 to $3.30 and free cash flow conversion of approximately 100%
- Q1 2024 guidance calls for approximately flat non-GAAP core sales and adjusted operating margin of 23.0% to 23.5%
- Company completed its separation from Danaher and issued approximately $2.6 billion of long-term debt at a weighted average interest rate of 5.2%
03—Questions
Frequently Asked Questions
How did Veralto perform in the fourth quarter of 2023?
Sales rose 3.3% year-over-year to $1,288 million, with non-GAAP core sales growth of 1.7%. GAAP operating profit margin was 22.2%, and non-GAAP adjusted operating profit margin was 23.8%. GAAP diluted EPS was $0.81 and adjusted diluted EPS was $0.87.
What is the company's outlook for 2024?
For full year 2024, Veralto anticipates low-single-digit non-GAAP core sales growth, adjusted operating profit margin expansion of 50 to 75 basis points, and adjusted diluted EPS of $3.20 to $3.30, with free cash flow conversion of approximately 100%.
What does first-quarter 2024 guidance look like?
Veralto expects non-GAAP core sales to be approximately flat year-over-year in the first quarter of 2024, with adjusted operating profit margin of 23.0% to 23.5% and adjusted diluted EPS of $0.73 to $0.78.
How did the company's end markets perform?
Management noted continued growth across industrial markets in the Water Quality segment and early signs of stabilization in consumer-packaged goods markets in the Product Quality & Innovation segment during the fourth quarter.
What is the company's financial position after the separation from Danaher?
As of December 31, 2023, the company reported $762 million in cash and equivalents and $2,629 million in long-term debt. Consideration of $2,600 million was paid to the former parent in connection with the separation, funded in part by $2,608 million of borrowings.
04—Continue