Mirion (“we” or the “company”) (NYSE: MIR), a global provider of radiation detection, measurement, analysis, and monitoring solutions to the medical, nuclear, defense, and research end markets, today announced results for the third quarter ended September 30, 2024.
“Third quarter results were in-line with our expectations,” stated Thomas Logan, Mirion’s Chief Executive Officer. “We continue to see revenue growth and margin expansion across both segments, supported by strong underlying super-trends in nuclear power and cancer care. Moreover, excluding the impacts from two large, one-time orders in third quarter 2023, the nuclear power adjusted order book increased 12%. Encouragingly, the spate of nuclear deals announced by hyperscalers in support of the extreme power demands enabling their AI business models should accelerate the development of next-generation nuclear power technology. Our broad strategic relationships with both small modular reactor ('SMR') players and utility-scale nuclear power providers has us well-positioned for future growth.”
Logan continued, “Adjusted EBITDA margin in the quarter was 22.1% - an improvement of approximately 180 basis points compared to the same period last year. This marks the fifth consecutive quarter of EBITDA margin expansion and reflects the continuous improvement of operating quality across the enterprise.”
Updated 2024 Guidance
Commenting on Mirion’s full year 2024 guidance, Logan said, “Our third quarter performance keeps us on-track for another strong year. Our expected 2024 performance represents improvements in top-line growth, adjusted EBITDA margin expansion, and further improvements to the balance sheet. We continue to focus on improving our operating efficiency and progressing towards our long-term stated objective of 30% adjusted EBITDA margins.”
Mirion is updating components of its guidance for the fiscal year and 12-month period ending December 31, 2024:
- Revenue growth of 6% to 7%, compared to 5% to 7% previously
- Organic revenue growth of 5% to 6%, compared to 4% to 6% previously
- Medical LSD organic growth, compared to LSD+ previously
- Technologies MSD+ organic growth, which is unchanged
- Inorganic revenue growth of approximately 1.5%, primarily as a result of the ec2 acquisition
- Closure of lasers business expected to negatively impact organic revenue growth by approximately 30 basis points
- Adjusted EBITDA of $195 million to $205 million, which is unchanged
- Adjusted EPS of $0.37 to $0.42, which is unchanged
- Adjusted free cash flow of $65 million to $75 million, compared to $65 million to $85 million previously
The guidance for organic revenue growth excludes the impact of foreign exchange rates as well as mergers, acquisitions and divestitures.
Other modeling and guidance assumptions include the following:
- Depreciation of approximately $34 million for the year
- Net interest expense of approximately $52 million (approximately $50 million of cash interest)
- Effective tax rate between 27% and 29%
- Capital expenditures of approximately $45 million
- Cash taxes of approximately $35 million
- Approximately 205 million shares of Class A common stock outstanding (excludes 6.8 million shares of Class B common stock, 18.8 million founder shares, subject to vesting, 1.7 million restricted stock units, 1.2 million performance stock units and a further 34.4 million shares reserved for future equity awards (subject to annual automatic increases)) (all numbers as of September 30, 2024)
- Euro to U.S. Dollar foreign exchange conversion rate of 1.09
- Cash non-operating expenses of approximately $10 million
- Stock-based compensation of approximately $12 million
The Company’s guidance contains forward-looking statements and actual results may differ materially as a result of known and unknown uncertainties and risks, including those set forth below under the heading “Forward-Looking Statements.” In addition, forward-looking non-GAAP financial measures are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in projecting and quantifying the various adjusting items necessary for such reconciliations, such as stock-based compensation expense, amortization and depreciation expense, merger and acquisition activity and purchase accounting adjustments, that have not yet occurred, are out of Mirion’s control, or cannot be reasonably predicted. Accordingly, reconciliations of our guidance for organic and inorganic revenue, adjusted EBITDA, adjusted EPS and adjusted free cash flow are not available without unreasonable effort.
