Patheon Reports Fiscal 2017 First Quarter Results

• Patheon

Patheon, a global provider of pharmaceutical development and manufacturing services, has reported financial results for the quarter ended January 31, 2017.

First quarter 2017 revenue was $457 million, an increase of 13% compared to the first quarter of 2016. Adjusted EBITDA in the first quarter was $83 million, 40% higher than the prior-year period. Adjusted EBITDA margin as a percentage of revenue was 18%, representing a 350 basis point increase compared to the prior-year period.

“We drove growth across all three segments during the first quarter, as we continued to help our clients simplify their supply chain networks,” said Patheon CEO Jim Mullen. “The underlying trends supporting our long-term view remain unchanged; however, we are adjusting our full-year outlook to reflect current exchange rates and shifts in the timing of customer volumes and key product approvals."

First quarter 2017 net income from continuing operations was $28 million. First quarter 2017 net income from continuing operations per diluted share was $0.19.

First quarter 2017 adjusted net income from continuing operations was $21 million. First quarter 2017 adjusted net income from continuing operations per diluted share was $0.14.

First Quarter 2017 Segment Highlights

• The DPS segment grew by 6% year-over-year due to higher product volumes, partially offset by delays in customer-supplied materials.
• The PDS segment recorded 8% year-over-year growth, driven by demand for sterile and low-solubility services.
• The DSS segment delivered 31% year-over-year growth on strength in demand for both biologics and API.
• Revenue growth and strong margin performance resulted in year-over-year adjusted EBITDA growth in all three segments.
• The company continued to make investments to support future growth across all three segments.

Financial Position

As of January 31, 2017, cash and cash equivalents were $89 million and total debt was $2.1 billion, resulting in net debt of approximately $2.0 billion.

Updated FY17 Financial Outlook

The company’s revised guidance reflects current exchange rates as well as management’s latest outlook for the business, including the addition of the Florence, South Carolina facility acquired from Roche Holdings, Inc. as of February 1, 2017.