- Revenues were flat year-over-year; Organic revenue growth* was
1%
- Net income margin was 8.9% versus 8.7% for the prior year;
Adjusted earnings before interest and taxes (EBIT) margin* was
15.3% versus 14.8%
- Diluted earnings per share (EPS) were $0.93 versus $0.91 for
the prior year; Adjusted EPS* was $1.00 versus $0.92
- Cash flow from operating activities was $(119) million versus
$(67) million for the prior year; Free cash flow* was $(182)
million versus $(136) million
- Company updates full-year guidance for Organic revenue growth*
and Adjusted EBIT margin*
GE HealthCare (Nasdaq: GEHC) today reported financial results
for the second quarter ended June 30, 2024.
GE HealthCare President and CEO Peter Arduini said, “In the
second quarter, we delivered year-over-year sales growth and margin
expansion despite headwinds in the China market. We also reported
solid orders growth with particular strength in the U.S., as
healthcare systems invest in technologies that enhance patient care
and improve productivity. We are pleased with our continued
progress in advancing our margin goals, while continuing our
investments for future growth.”
Second quarter 2024 total company financial
performance
- Revenues of $4.8 billion were flat as reported and up 1% on an
Organic* basis year-over-year, with positive price and volume
- Total company book-to-bill, defined as Total orders divided by
Total revenues, was solid at 1.06 times. Total company orders
increased 3% organically year-over-year.
- Net income attributable to GE HealthCare was $428 million
versus $418 million for the prior year, and Adjusted EBIT* was $742
million versus $711 million
- Net income margin was 8.9% versus 8.7% for the prior year, up
20 basis points (bps). Adjusted EBIT margin* was 15.3% versus
14.8%, up 60 bps as both measures saw benefits from productivity
and price.
- Diluted EPS was $0.93 versus $0.91, up $0.02 from the prior
year. Adjusted EPS* was $1.00 versus $0.92, up $0.09 from the prior
year as both measures saw improved EBIT and lower interest
expense.
- Cash flow from operating activities was $(119) million, down
$52 million year-over-year. Free cash flow* was $(182) million,
down $46 million year-over-year.
Second quarter 2024 segment financial performance
(Unaudited)
Segment
($ in millions)
Imaging
Ultrasound
Patient Care Solutions
Pharmaceutical
Diagnostics
Segment Revenues
$2,596
$823
$772
$639
YoY % change
(1)%
(2)%
—%
12%
YoY % Organic* change
—%
(1)%
1%
14%
Segment EBIT
$286
$178
$78
$200
YoY % change
3%
(7)%
(8)%
31%
Segment EBIT Margin
11.0%
21.6%
10.1%
31.2%
YoY change
40 bps
(120) bps
(90) bps
450 bps
YoY refers to year-over-year
comparison
Growth and innovation
Mr. Arduini continued, “The recent Centers for Medicare &
Medicaid Services reimbursement proposal has the potential to
benefit patients in the U.S. facing cancer, cardiovascular, and
neurological diseases. We believe this will unlock the value of our
radiopharmaceuticals and PET and SPECT scanners, ultimately
enabling more precise diagnostic and treatment planning for
patients. We’re optimistic about our pipeline of innovation and
ability to bring differentiated solutions to market.”
Recent innovation and commercial highlights
- GE HealthCare and AWS announce strategic collaboration to
accelerate healthcare transformation with generative AI
- GE HealthCare announces agreement to acquire clinical
artificial intelligence business from Intelligent Ultrasound
- GE HealthCare’s MIM Software introduces MIM Symphony HDR
Prostate for MR Image guidance during procedures
- Heart Hospital of New Mexico at Lovelace Medical Center and GE
HealthCare collaborate to install the first Allia IGS Pulse
electrophysiology lab in the United States
- GE HealthCare and Mediview announce the world’s first
installation and clinical use of augmented reality interventional
suite that aims to transform the practice of interventional
radiology
- GE HealthCare and Salud Digna extend collaboration aimed at
improving patient care in Mexico
- GE HealthCare announces changes in strategic leadership and key
segments to better serve patients and customers
- GE HealthCare increases access to precision care tools,
encouraging the continued adoption and practice of more
personalized medicine around the world
- GE HealthCare study demonstrates adding breast oncology PET
tracer to standard workup of patients with metastatic or recurrent
breast cancer may yield beneficial clinical and economic outcomes,
potentially saving $142M over five years in the United States
- GE HealthCare and Tampa General Hospital expand long-term
partnership to benefit patients and clinicians across the state of
Florida
- Pushing the boundaries of neuroscience with GE HealthCare’s
SIGNA MAGNUS
2024 guidance
Today, the Company updates full-year 2024 guidance for Organic
revenue growth* and Adjusted EBIT margin* and reaffirms other
metrics as follows:
- Organic revenue growth* in the range of 1% to 2% year-over-year
versus the prior guide of approximately 4%, due to China market
headwinds
- Adjusted EBIT margin* in the range of 15.7% to 16.0%,
reflecting an expansion of 60 to 90 basis points versus 2023
Adjusted EBIT margin* of 15.1%; this compares to prior guidance of
15.6% to 15.9%
- Adjusted effective tax rate (ETR)* in the range of 23% to
25%
- Adjusted EPS* in the range of $4.20 to $4.35, representing 7%
to 11% growth versus Adjusted EPS* of $3.93 for 2023
- Free cash flow* of approximately $1.8 billion
The Company provides its outlook on a non-GAAP basis. Refer to
the Non-GAAP Financial Measures in Outlook section below for more
details.
Financial rounding
Certain columns and rows in this document may not sum due to the
use of rounded numbers. Percentages presented are calculated from
the underlying whole-dollar amounts.
Condensed Consolidated Statements of
Income (Unaudited)
For the three months ended
June 30
For the six months ended June
30
(In millions, except per share
amounts)
2024
2023
2024
2023
Sales of products
$
3,207
$
3,213
$
6,253
$
6,344
Sales of services
1,632
1,604
3,237
3,180
Total revenues
4,839
4,817
9,489
9,524
Cost of products
2,045
2,084
4,012
4,121
Cost of services
792
793
1,574
1,572
Gross profit
2,002
1,940
3,904
3,831
Selling, general, and administrative
1,067
1,072
2,105
2,134
Research and development
327
298
651
568
Total operating expenses
1,395
1,370
2,756
2,702
Operating income
608
570
1,148
1,129
Interest and other financial charges –
net
131
137
254
273
Non-operating benefit (income) costs
(101
)
(123
)
(204
)
(238
)
Other (income) expense – net
(1
)
(14
)
8
(22
)
Income before income taxes
578
570
1,090
1,116
Benefit (provision) for income taxes
(143
)
(137
)
(267
)
(300
)
Net income
435
433
823
816
Net (income) loss attributable to
noncontrolling interests
(7
)
(15
)
(21
)
(26
)
Net income attributable to GE
HealthCare
428
418
802
790
Deemed preferred stock dividend of
redeemable noncontrolling interest
—
—
—
(183
)
Net income attributable to GE
HealthCare common stockholders
$
428
$
418
$
802
$
607
Earnings per share attributable to GE
HealthCare common stockholders:
Basic
$
0.94
$
0.92
$
1.76
$
1.34
Diluted
$
0.93
$
0.91
$
1.75
$
1.33
Weighted-average number of shares
outstanding:
Basic
457
455
456
455
Diluted
459
458
459
458
Condensed Consolidated Statements of
Financial Position (Unaudited)
As of
(In millions, except share and per
share amounts)
June 30, 2024
December 31, 2023
Cash, cash equivalents, and restricted
cash
$
2,015
$
2,504
Receivables – net of allowances of $103
and $98
3,343
3,525
Due from related parties
11
32
Inventories
2,023
1,960
Contract and other deferred assets
977
1,000
All other current assets
437
389
Current assets
8,806
9,410
Property, plant, and equipment – net
2,458
2,500
Goodwill
13,116
12,936
Other intangible assets – net
1,195
1,253
Deferred income taxes
4,365
4,474
All other non-current assets
1,913
1,881
Total assets
$
31,852
$
32,454
Short-term borrowings
$
1,007
$
1,006
Accounts payable
2,824
2,947
Due to related parties
27
99
Contract liabilities
1,876
1,918
Current compensation and benefits
1,235
1,518
All other current liabilities
1,348
1,493
Current liabilities
8,318
8,981
Long-term borrowings
8,233
8,436
Non-current compensation and benefits
5,455
5,782
Deferred income taxes
55
68
All other non-current liabilities
1,796
1,877
Total liabilities
23,858
25,144
Commitments and contingencies
Redeemable noncontrolling
interests
177
165
Common stock, par value $0.01 per share,
1,000,000,000 shares authorized, 456,654,068 shares issued and
outstanding as of June 30, 2024; 455,342,290 shares issued and
outstanding as of December 31, 2023
5
5
Additional paid-in capital
6,540
6,493
Retained earnings
2,101
1,326
Accumulated other comprehensive income
(loss) – net
(845
)
(691
)
Total equity attributable to GE
HealthCare
7,801
7,133
Noncontrolling interests
16
12
Total equity
7,817
7,145
Total liabilities, redeemable
noncontrolling interests, and equity
$
31,852
$
32,454
Condensed Consolidated Statements of
Cash Flows (Unaudited)
For the six months ended June
30
(In millions)
2024
2023
Net income
$
823
$
816
Adjustments to reconcile Net income to
Cash from (used for) operating activities
Depreciation of property, plant, and
equipment
137
124
Amortization of intangible assets
160
189
Gain on fair value remeasurement of
contingent consideration
(10
)
(3
)
Net periodic postretirement benefit plan
(income) expense
(180
)
(207
)
Postretirement plan contributions
(170
)
(180
)
Share-based compensation
70
52
Provision for income taxes
267
300
Cash paid during the year for income
taxes
(287
)
(271
)
Changes in operating assets and
liabilities, excluding the effects of acquisitions:
Receivables
112
(32
)
Due from related parties
19
10
Inventories
(116
)
(172
)
Contract and other deferred assets
12
(64
)
Accounts payable
(41
)
(40
)
Due to related parties
(57
)
(11
)
Contract liabilities
(20
)
111
Current compensation and benefits
(266
)
(114
)
All other operating activities - net
(155
)
(107
)
Cash from (used for) operating
activities
300
401
Cash flows – investing
activities
Additions to property, plant and equipment
and internal-use software
(209
)
(213
)
Dispositions of property, plant, and
equipment
—
1
Purchases of businesses, net of cash
acquired
(259
)
(147
)
All other investing activities - net
(69
)
9
Cash from (used for) investing
activities
(537
)
(350
)
Cash flows – financing
activities
Net increase (decrease) in borrowings
(maturities of 90 days or less)
—
(12
)
Newly issued debt, net of debt issuance
costs (maturities longer than 90 days)
1
2,000
Repayments and other reductions
(maturities longer than 90 days)
(156
)
(6
)
Dividends paid to stockholders
(28
)
(14
)
Redemption of noncontrolling interests
—
(211
)
Net transfers (to) from GE
—
(1,317
)
All other financing activities - net
(27
)
6
Cash from (used for) financing
activities
(210
)
446
Effect of foreign currency rate changes on
cash, cash equivalents, and restricted cash
(41
)
(3
)
Increase (decrease) in cash, cash
equivalents, and restricted cash
(488
)
494
Cash, cash equivalents, and restricted
cash at beginning of year
2,506
1,451
Cash, cash equivalents, and restricted
cash as of June 30
$
2,018
$
1,945
Supplemental disclosure of cash flows
information
Cash paid during the year for interest
$
(274
)
$
(250
)
Non-cash investing activities
Acquired but unpaid property, plant, and
equipment
$
76
$
70
Non-GAAP Financial Measures
The non-GAAP financial measures presented in this press release
are supplemental measures of GE HealthCare’s performance and its
liquidity that the Company believes will help investors understand
its financial condition, cash flows, and operating results, and
assess its future prospects. When read in conjunction with the
Company’s U.S. GAAP results, these non-GAAP financial measures
provide a baseline for analyzing trends in GE HealthCare’s
underlying businesses and can be used by management as one basis
for making financial, operational, and planning decisions.
Descriptions of the reported non-GAAP measures are included
below.
The Company reports Organic revenue and Organic revenue growth
rate to provide management and investors with additional
understanding and visibility into the underlying revenue trends of
the Company’s established, ongoing operations, as well as provide
insights into overall demand for its products and services. To
calculate these measures, the Company excludes the effect of
acquisitions, dispositions, and foreign currency rate
fluctuations.
The Company reports EBIT, Adjusted EBIT, Adjusted EBIT margin,
Adjusted net income, Adjusted net income margin, and Adjusted
earnings per share to provide management and investors with
additional understanding of its business by highlighting the
results from ongoing operations and the underlying profitability
factors, on a normalized basis. To calculate these measures the
Company excludes, and reflects in the detailed reconciliations
below, the following adjustments as applicable: Interest and other
financial charges - net, Net (income) loss attributable to
noncontrolling interests, Non-operating benefit (income) costs,
Benefit (provision) for income taxes and certain tax related
adjustments, and certain non-recurring and/or non-cash items. GE
HealthCare may from time to time consider excluding other
non-recurring items to enhance comparability between periods.
Adjusted EBIT margin and Adjusted net income margin are calculated
by taking Adjusted EBIT, or Adjusted net income, divided by Total
revenues for the same period.
The Company reports Adjusted tax expense and Adjusted effective
tax rate to provide investors with a better understanding of the
normalized tax rate applicable to the business and provide more
consistent comparability across periods. Adjusted tax expense
excludes the income tax related to the pre-tax income adjustments
included as part of Adjusted net income and certain income tax
adjustments, such as adjustments to deferred tax assets or
liabilities. The Company may from time to time consider excluding
other non-recurring tax items to enhance comparability between
periods. Adjusted effective tax rate is Adjusted tax expense
divided by Income before income taxes less the pre-tax income
adjustments referenced above.
The Company reports Free cash flow and Free cash flow conversion
to provide management and investors with an important measure of
the ability to generate cash on a normalized basis and provide
insight into the Company’s flexibility to allocate capital. Free
cash flow is Cash from (used for) operating activities including
cash flows related to the additions and dispositions of property,
plant, and equipment (“PP&E”) and additions of internal-use
software. Free cash flow does not represent residual cash flows
available for discretionary expenditures, due to the fact that the
measure does not deduct the capital required for debt repayments.
Free cash flow conversion is calculated by taking Free cash flow
divided by Adjusted net income.
Management recognizes that these non-GAAP financial measures
have limitations, including that they may be calculated differently
by other companies or may be used under different circumstances or
for different purposes. In order to compensate for the discussed
limitations, management does not consider these measures in
isolation from or as alternatives to the comparable financial
measures determined in accordance with U.S. GAAP. The detailed
reconciliations of each non-GAAP financial measure to the most
directly comparable U.S. GAAP financial measure are provided below,
and no single financial measure should be relied on to evaluate our
business.
Non-GAAP Financial Reconciliations
Organic Revenue*
Unaudited
For the three months ended
June 30
For the six months ended June
30
($ In millions)
2024
2023
% change
2024
2023
% change
Imaging revenues
$
2,596
$
2,620
(1
)%
$
5,062
$
5,116
(1
)%
Less: Acquisitions(1)
13
—
13
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
(37
)
—
(64
)
—
Imaging Organic revenue*
$
2,620
$
2,620
—
%
$
5,113
$
5,116
—
%
Ultrasound revenues
$
823
$
839
(2
)%
$
1,647
$
1,698
(3
)%
Less: Acquisitions(1)
—
—
—
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
(8
)
—
(13
)
—
Ultrasound Organic revenue*
$
831
$
839
(1
)%
$
1,659
$
1,698
(2
)%
PCS revenues
$
772
$
770
—
%
$
1,519
$
1,551
(2
)%
Less: Acquisitions(1)
—
—
—
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
(2
)
—
(4
)
—
PCS Organic revenue*
$
775
$
770
1
%
$
1,523
$
1,551
(2
)%
PDx revenues
$
639
$
568
12
%
$
1,238
$
1,126
10
%
Less: Acquisitions(1)
—
—
—
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
(7
)
—
(8
)
—
PDx Organic revenue*
$
646
$
568
14
%
$
1,246
$
1,126
11
%
Other revenues
$
9
$
20
(53
)%
$
24
$
33
(27
)%
Less: Acquisitions(1)
—
—
—
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
—
—
—
—
Other Organic revenue*
$
9
$
20
(53
)%
$
24
$
33
(27
)%
Total revenues
$
4,839
$
4,817
—
%
$
9,489
$
9,524
—
%
Less: Acquisitions(1)
13
—
14
—
Less: Dispositions(2)
—
—
—
—
Less: Foreign currency exchange
(54
)
—
(89
)
—
Organic revenue*
$
4,881
$
4,817
1
%
$
9,565
$
9,524
—
%
(1)
Represents revenues attributable to
acquisitions from the date the Company completed the transaction
through the end of four quarters following the transaction.
(2)
Represents revenues attributable to
dispositions for the four quarters preceding the disposition
date.
Adjusted EBIT*
Unaudited
For the three months ended
June 30
For the six months ended June
30
($ In millions)
2024
2023
% change
2024
2023
% change
Net income attributable to GE
HealthCare
$
428
$
418
2
%
$
802
$
790
2
%
Add: Interest and other financial charges
– net
131
137
254
273
Add: Non-operating benefit (income)
costs
(101
)
(123
)
(204
)
(238
)
Less: Benefit (provision) for income
taxes
(143
)
(137
)
(267
)
(300
)
Less: Net (income) loss attributable to
noncontrolling interests
(7
)
(15
)
(21
)
(26
)
EBIT*
$
608
$
584
4
%
$
1,140
$
1,151
(1
)%
Add: Restructuring costs(1)
29
19
68
31
Add: Acquisition and disposition-related
charges (benefits)(2)
(3
)
(2
)
(3
)
(1
)
Add: Spin-Off and separation costs(3)
67
72
126
130
Add: (Gain) loss on business and asset
dispositions(4)
—
—
—
—
Add: Amortization of acquisition-related
intangible assets
35
32
66
63
Add: Investment revaluation (gain)
loss(5)
6
6
26
1
Adjusted EBIT*
$
742
$
711
4
%
$
1,423
$
1,375
3
%
Net income margin
8.9
%
8.7
%
20 bps
8.5
%
8.3
%
20 bps
Adjusted EBIT margin*
15.3
%
14.8
%
60 bps
15.0
%
14.4
%
60 bps
(1)
Consists of severance, facility closures,
and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other
transaction and integration fees, and adjustments to contingent
consideration, as well as other purchase accounting related charges
and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and
separation from GE, including system implementations, audit and
advisory fees, legal entity separation, Founders Grant equity
awards, separation agreements with GE, and other one-time
costs.
(4)
Consists of gains and losses resulting
from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments
for equity investments.
Adjusted Net Income*
Unaudited
For the three months ended
June 30
For the six months ended June
30
($ In millions)
2024
2023
% change
2024
2023
% change
Net income attributable to GE
HealthCare
$
428
$
418
2
%
$
802
$
790
2
%
Add: Non-operating benefit (income)
costs
(101
)
(123
)
(204
)
(238
)
Add: Restructuring costs(1)
29
19
68
31
Add: Acquisition and disposition-related
charges (benefits)(2)
(3
)
(2
)
(3
)
(1
)
Add: Spin-Off and separation costs(3)
67
72
126
130
Add: (Gain) loss on business and asset
dispositions(4)
—
—
—
—
Add: Amortization of acquisition-related
intangible assets
35
32
66
63
Add: Investment revaluation (gain)
loss(5)
6
6
26
1
Add: Tax effect of reconciling items
(1
)
(3
)
(10
)
1
Add: Certain tax adjustments(6)
—
—
—
30
Adjusted net income*
$
459
$
419
10
%
$
872
$
807
8
%
Adjusted net income margin*
9.5
%
8.7
%
80 bps
9.2
%
8.5
%
70 bps
(1)
Consists of severance, facility closures,
and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other
transaction and integration fees, and adjustments to contingent
consideration, as well as other purchase accounting related charges
and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and
separation from GE, including system implementations, audit and
advisory fees, legal entity separation, Founders Grant equity
awards, separation agreements with GE, and other one-time
costs.
(4)
Consists of gains and losses resulting
from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments
for equity investments.
(6)
Consists of certain income tax
adjustments, including the accrual of a deferred tax liability on
the prior period earnings of certain of the Company’s foreign
subsidiaries for which the Company is no longer permanently
reinvested and the impact of adjusting deferred tax assets and
liabilities to stand-alone GE HealthCare tax rates.
Adjusted Earnings Per Share*
Unaudited
For the three months ended
June 30
For the six months ended June
30
(In dollars, except shares outstanding
presented in millions)
2024
2023
$ change
2024
2023
$ change
Diluted earnings per share
$
0.93
$
0.91
$
0.02
$
1.75
$
1.33
$
0.42
Add: Deemed preferred stock dividend of
redeemable noncontrolling interest
—
—
—
0.40
Add: Non-operating benefit (income)
costs
(0.22
)
(0.27
)
(0.44
)
(0.52
)
Add: Restructuring costs(1)
0.06
0.04
0.15
0.07
Add: Acquisition and disposition-related
charges (benefits)(2)
(0.01
)
(0.00
)
(0.01
)
(0.00
)
Add: Spin-Off and separation costs(3)
0.15
0.16
0.28
0.28
Add: (Gain) loss on business and asset
dispositions(4)
—
—
—
—
Add: Amortization of acquisition-related
intangible assets
0.08
0.07
0.14
0.14
Add: Investment revaluation (gain)
loss(5)
0.01
0.01
0.06
0.00
Add: Tax effect of reconciling items
(0.00
)
(0.01
)
(0.02
)
0.00
Add: Certain tax adjustments(6)
—
—
—
0.07
Adjusted earnings per share*
$
1.00
$
0.92
$
0.09
$
1.90
$
1.76
$
0.14
Diluted weighted-average shares
outstanding
459
458
459
458
(1)
Consists of severance, facility closures,
and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other
transaction and integration fees, and adjustments to contingent
consideration, as well as other purchase accounting related charges
and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and
separation from GE, including system implementations, audit and
advisory fees, legal entity separation, Founders Grant equity
awards, separation agreements with GE, and other one-time
costs.
(4)
Consists of gains and losses resulting
from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments
for equity investments.
(6)
Consists of certain income tax
adjustments, including the accrual of a deferred tax liability on
the prior period earnings of certain of the Company’s foreign
subsidiaries for which the Company is no longer permanently
reinvested and the impact of adjusting deferred tax assets and
liabilities to stand-alone GE HealthCare tax rates.
Adjusted Tax Expense* and Adjusted
ETR*
Unaudited
For the three months ended
June 30
For the six months ended June
30
($ In millions)
2024
2023
2024
2023
Benefit (provision) for income
taxes
$
(143
)
$
(137
)
$
(267
)
$
(300
)
Add: Tax effect of reconciling items
(1
)
(3
)
(10
)
1
Add: Certain tax adjustments(1)
—
—
—
30
Adjusted tax expense*
$
(144
)
$
(140
)
$
(277
)
$
(269
)
Effective tax rate
24.7
%
24.0
%
24.5
%
26.9
%
Adjusted effective tax rate*
23.6
%
24.4
%
23.7
%
24.4
%
(1)
Consists of certain income tax
adjustments, including the accrual of a deferred tax liability on
the prior period earnings of certain of the Company’s foreign
subsidiaries for which the Company is no longer permanently
reinvested and the impact of adjusting deferred tax assets and
liabilities to stand-alone GE HealthCare tax rates.
Free Cash Flow*
Unaudited
For the three months ended
June 30
For the six months ended June
30
($ In millions)
2024
2023
% change
2024
2023
% change
Cash from (used for) operating
activities
$
(119
)
$
(67
)
(77
)%
$
300
$
401
(25
)%
Add: Additions to PP&E and
internal-use software
(63
)
(70
)
(209
)
(213
)
Add: Dispositions of PP&E
—
1
—
1
Free cash flow*
$
(182
)
$
(136
)
(34
)%
$
92
$
189
(51
)%
Non-GAAP Financial Measures in Outlook
GE HealthCare calculates forward-looking non-GAAP financial
measures, including Organic revenue growth, Adjusted EBIT margin,
Adjusted ETR, Adjusted EPS, and Free cash flow based on internal
forecasts that omit certain amounts that would be included in GAAP
financial measures. GE HealthCare does not provide reconciliations
of these forward-looking non-GAAP financial measures to the
respective GAAP metrics as it is unable to predict with reasonable
certainty and without unreasonable effort certain items such as the
impact of changes in currency exchange rates, impacts associated
with business acquisitions or dispositions, timing and magnitude of
restructuring activities, and revaluation of strategic investments,
amongst other items. The timing and amounts of these items are
uncertain and could have a substantial impact on GE HealthCare’s
results in accordance with GAAP.
Key Performance Indicators
Management uses the following metrics to provide a leading
indicator of current business demand from customers for products
and services.
- Organic orders growth: Rate of change period-over-period of
contractual commitments with customers to provide specified goods
or services for an agreed upon price, and excluding the effects of:
(1) recent acquisitions and dispositions with less than a full year
of comparable orders; and (2) foreign currency exchange rate
fluctuations in order to present orders on a constant currency
basis.
- Book-to-bill: Total orders divided by Total revenues within a
given financial period (e.g., quarter or FY).
Conference Call and Webcast Information
GE HealthCare will discuss its results during its live earnings
call today, July 31, 2024 at 8:30am ET. The webcast and
accompanying slide presentation containing financial information
can be accessed by visiting the investor section of the website at
https://investor.gehealthcare.com/news-events/events. An archived
version of the webcast will be available on the website after the
call.
Forward-looking Statements
This release contains forward-looking statements. These
forward-looking statements might be identified by words, and
variations of words, such as “will,” “expect,” “may,” “would,”
“could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,”
“potential,” “position,” “forecast,” “target,” “guidance,”
“outlook,” and similar expressions. These forward-looking
statements may include, but are not limited to, statements about
our business and expected financial performance, financial
condition, and results of operations, including revenue, revenue
growth, profit, taxes, earnings per share, and cash flows, and the
Company’s outlook; and the Company’s strategy, innovation, and
investments. These forward-looking statements involve risks and
uncertainties, many of which are beyond the Company’s control.
Factors that could cause the Company’s actual results to differ
materially from those described in its forward-looking statements
include, but are not limited to, operating in highly competitive
markets; the Company’s ability to successfully complete strategic
transactions; the actions or inactions of third parties with whom
the Company partners and the various collaboration, licensing, and
other partnerships and alliances the Company has with third
parties; demand for the Company’s products, services, or solutions
and factors that affect that demand; management of the Company’s
supply chain and the Company’s ability to cost-effectively secure
the materials it needs to operate its business; disruptions in the
Company’s operations; changes in third-party and government
reimbursement processes, rates, contractual relationships, and mix
of public and private payers, including related to government
shutdowns; the delayed China stimulus and the ongoing
anti-corruption campaign; the Company’s ability to attract and/or
retain key personnel and qualified employees; global geopolitical
and economic instability, including as a result of the conflict
between Ukraine and Russia, the conflict in Israel and surrounding
areas, and the actions in the Red Sea region; public health crises,
epidemics, and pandemics and their effects on the Company’s
business; maintenance and protection of the Company’s intellectual
property rights, as well as maintenance of successful research and
development efforts with respect to commercially successful
products and technologies; the impact of potential information
technology, cybersecurity or data security breaches; compliance
with the various legal, regulatory, tax, privacy, and other laws to
which the Company is subject, such as the Foreign Corrupt Practices
Act and similar anti-corruption and anti-bribery laws globally, and
related changes, claims, inquiries, investigations, or actions; the
Company’s ability to control increases in healthcare costs and any
subsequent effect on demand for the Company’s products, services,
or solutions; the impacts related to the Company’s increasing focus
on and investment in cloud, edge, artificial intelligence, and
software offerings; the impact of potential product liability
claims; environmental, social, and governance matters; the
Company’s ability to operate effectively as an independent,
publicly-traded company; and the Company’s level of indebtedness,
as well as its general ability to comply with covenants under its
debt instruments and any related effect on the Company’s business.
Please also see the “Risk Factors” section of the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2023
filed with the U.S. Securities and Exchange Commission and any
updates or amendments it makes in future filings. There may be
other factors not presently known to the Company or which it
currently considers to be immaterial that could cause the Company’s
actual results to differ materially from those projected in any
forward-looking statements the Company makes. The Company does not
undertake any obligation to update or revise its forward-looking
statements except as required by applicable law or regulation.
About GE HealthCare Technologies Inc.
GE HealthCare is a leading global medical technology,
pharmaceutical diagnostics, and digital solutions innovator,
dedicated to providing integrated solutions, services, and data
analytics to make hospitals more efficient, clinicians more
effective, therapies more precise, and patients healthier and
happier. Serving patients and providers for more than 125 years, GE
HealthCare is advancing personalized, connected, and compassionate
care, while simplifying the patient’s journey across the care
pathway. Together our Imaging, Ultrasound, Patient Care Solutions,
and Pharmaceutical Diagnostics businesses help improve patient care
from diagnosis, to therapy, to monitoring. We are a $19.6 billion
business with approximately 51,000 colleagues working to create a
world where healthcare has no limits.
Follow us on LinkedIn, X (formerly Twitter), Facebook,
Instagram, and Insights for the latest news, or visit our website
https://www.gehealthcare.com for more information.
* Non-GAAP financial measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730185615/en/
Investor Relations Contact: Carolynne Borders
+1-631-662-4317 carolynne.borders@gehealthcare.com Media
Contact: Jennifer Fox +1-414-530-3027
jennifer.r.fox@gehealthcare.com
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