展示品索引
GEヘルスケアは2024年第3四半期の財務結果を報告
•売上高は前年比1%増加しました。オーガニック売上高は1%増加しました*。
•当期純利益率は前年の7.8%に対して9.7%となりました；調整後の利益前利子税（EBIT）率*は前年の15.4%に対して16.3%となりました。
•希薄化後1株当たり利益（EPS）は、昨年の$0.83に対して$1.02でした。調整後EPS*は、$0.99に対して$1.14でした。
•営業活動によるキャッシュフローは前年比$74200万対$65000万でした。フリーキャッシュフローは$65100万対$57000万でした。
•会社は引き上げました フルイヤー2024年調整後EBITマージン*および調整後EPS*のガイダンスを下方修正し、引き続き実行しました。オーガニック売上高成長*範囲の下限に向かってトレンドしています
シカゴ、イリノイ州 – 2024年10月30日 – GEヘルスケア（ナスダック: GEHC）は、2024年9月30日に終了した第3四半期の財務結果を報告しました。
GEヘルスケアの社長兼CEOであるPeter Arduini氏は、「第3四半期において、世界的に売上高および受注が1％成長しました。中国を除くと、売上高と受注は中一桁で成長し、米国を中心に全セクターで特に力強い成長を遂げました。医薬品診断部門も、手術件数の健康な増加により、堅調な業績を達成しました。組織全体にわたる継続的なリーンイニシアティブは、患者と顧客により良い価値を提供し続け、強固な利益率の拡大をもたらしています。」
2024年第3四半期の総合企業業績
•売上高は49億ドル増加しました 両方とも、報告されたベースとオーガニック*ベースで前年比1%増加しました。米国と医薬品診断（PDx）における売上高成長が中国市場の緩やかさによって相殺されました。米国と医薬品診断（PDx）における売上高成長の陽性と中国市場の引き続きの市場の緩さによって相殺されました。
•会社全体のブックツービル率は1.04倍でした。総売上高の受注は前年同期比で1%増加しました。
•GEヘルスケアの当期純利益は47000万ドルで、前年の37500万ドルから調整後EBIT*は79500万ドルで、前年の74400万ドルから
•当期純利益率は前年比9.7%で、前年の7.8%と比較して、基準ポイント（bps）で190基準ポイント上昇しました。調整後のEBItマージン*は、16.3%対15.4%で、両方の指標とも生産性と価格から恩恵を受け、90基準ポイント上昇しました。
•希薄化後epsは前年比$1.02対$0.83で、前年から$0.20増加しました。調整後eps*は前年比$1.14対$0.99で、両方の数値ともに改善されたEBItと低い税負担を反映しました。
•営業活動によるキャッシュフローは74200万ドルで、前年比9200万ドル増加しました。フリーキャッシュフローは65100万ドルで、前年比8100万ドル増加しました。
* 非GAAP財務指標。
1
2024年第3四半期セグメントの財務パフォーマンス （未確定）
2024年7月1日より、Imagingセグメントの一部であったImage Guided Therapiesは、より適切な臨床使用とビジネスおよび顧客への強力な影響を実現するために、Ultrasoundセグメントに再配置されました。 Ultrasoundセグメントはその後、Advanced Visualization Solutions（AVS）と改名されました。ここに提示されている歴史的なセグメント財務情報は、新しい報告可能なセグメント構造に準拠するように再構成されました。企業は、米国証券取引委員会に今日提出された8-kフォームを介して、2022年、2023年、および2024年の上半期の再構成された財務情報を提供しています。
売上高成長 （百万ドル） | イメージング | 高度な可視化ソリューション | 患者ケアソリューション | 製薬 診断 | ||||||||||
| セグメント収益 | $2,229 | $1,216 | $779 | $625 | ||||||||||
YoY％の変化 | —% | —% | 2% | 6% | ||||||||||
YoY％オーガニック*の変化 | (1)% | —% | 2% | 7% | ||||||||||
| セグメントEBIT | $287 | $232 | $82 | $193 | ||||||||||
YoY％の変化 | 18% | (9)% | 3% | 16% | ||||||||||
| セグメントEBITマージン | 12.9% | 19.0% | 10.6% | 30.9% | ||||||||||
YoY変化 | 200 bps | (190) bps | 10 基点(1%) | 270ベーシスポイント | ||||||||||
YoYは再計算基準に基づく前年同期比を指します。
成長と革新
アルディーニ氏は続けて、「Flyrcado™（flurpiridaz F18）注射の米国での最近のFDA承認は、未解消の患者のニーズに対処し、より正確で個別化されたケアを推進する中で、分子イメージング分野における重要な瞬間です。 Flyrcadoは冠動脈疾患の検出に使用される、PEt多剤性心筋灌流イメージング（MPI）剤として初めてのものです。この画期的な成果は、PEt MPIへの臨床および患者アクセスの拡大の可能性を秘めています。
最近のイノベーションと商業的なハイライト
•GEヘルスケアは、5つの新しい研究プロジェクトを展示する人工知能イノベーションラボを発表しました
•GEヘルスケアは、CareIntellect for Oncologyを発表しました。これは、人工知能を活用して、クリニシャンが患者の経過を一覧表示して簡単に確認できるようにするものです。
•GEヘルスケアはフランスで初めてのCTスキャナー製造ラインを発表し、フランス製の初のスキャナーをモンタルジ病院センターに設置することを発表しました
•ヨーロッパにおける新しい治療診断センター:GEヘルスケアとエッセン大学医学部が協力して治療診断と個別医療を推進
•GEヘルスケアは、ヨーロッパの患者のために適応医療を推進し、がん治療を革新する新しいコンソーシアムで重要な役割を果たします。
•GEヘルスケアのMImソフトウェアは、Theranosticsのためのモンテカルロ放射線療法のFDA承認を発表しました
•GE Healthcareは、冠動脈疾患の診断を向上させるためのPET用ラジオトレーサーFlyrcado注射のFDA承認を発表
•GEヘルスケアは2024年にASTROで最新の人工知能強化放射線療法ソリューションを紹介します
•GEヘルスケアは、高度なVenueポイントオブケア超音波ソリューションと新しいタブレットベースのVenue Sprintを導入しています。
•GE HealthCareのMImソフトウェアが、脳画像でアミロイドプラークを定量化するための新しいCentiloidスケーリングツールのFDA承認を発表
•臨床研究によると、ターゲットされた末梢終末制御麻酔投与は、患者ケアの最適化を支援するために効率と精度を向上させることが示されています。
* 非GAAP財務指標です。
2
2024年の見通し
本日、会社は2024年通年のガイダンスを以下のように更新しました:
•有機的な売上高成長*が、1%から2%の年間ベースでの範囲の下限に向かっており、依然として中国市場の低迷が続いているためです。
•調整後のEBItマージンは、15.8%から16.0%の範囲であり、2023年の調整後EBItマージンが15.1%の範囲と比較して、70から90ベーシスポイント拡大しています。これは、以前のガイダンスの15.7%から16.0%と比較されます。
•調整後の実効税率(ETR)*は、2024年第3四半期に認識された追加の税制優遇措置を考慮して、23%から25%の範囲の下限に向かって推移しています。
•調整後のepsが2023年の調整後のepsの$3.93に対して8%から11%成長する$4.25から$4.35の範囲で、これは以前の$4.20から$4.35の範囲と比較しています
•約$18億のフリーキャッシュフロー*
会社は非GAAPベースで展望を提供しています。ノンGAAPに基づいて参照してください。詳細については、以下の展望セクションの非GAAP財務指標を参照してください。
* 非GAAP財務指標です。
3
金融の四捨五入
この文書の特定の列や行の合計が一致しない場合があります。丸められた数字が使用されているため、表示されているパーセンテージは基になる一ドル単位の金額から計算されています。
総合損益計算書（未監査） | |||||||||||||||||
| 2021年9月30日までの3ヶ月間の売上高 | 9月30日までの9か月間にわたる | ||||||||||||||||
| （百万ドル、1株当たり金額は除く） | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 製品の販売 | $ | 3,201 | $ | 3,186 | $ | 9,454 | $ | 9,530 | |||||||||
| サービスの販売 | 1,662 | 1,636 | 4,899 | 4,816 | |||||||||||||
| 収益合計 | 4,863 | 4,822 | 14,353 | 14,346 | |||||||||||||
| 製品原価 | 2,033 | 2,076 | 6,045 | 6,197 | |||||||||||||
| サービスの原価 | 805 | 811 | 2,378 | 2,383 | |||||||||||||
| 粗利益 | 2,026 | 1,935 | 5,930 | 5,766 | |||||||||||||
| 販売、一般管理費用 | 1,034 | 996 | 3,139 | 3,130 | |||||||||||||
| 研究開発 | 316 | 322 | 967 | 890 | |||||||||||||
| 営業費用合計 | 1,350 | 1,318 | 4,106 | 4,020 | |||||||||||||
営業利益 | 676 | 617 | 1,824 | 1,746 | |||||||||||||
| 利子およびその他の財務費用 - 当期純利益 | 130 | 138 | 383 | 411 | |||||||||||||
| 営業外収益（費用）コスト | (102) | (94) | (306) | (332) | |||||||||||||
| その他（収益）費用-純 | (9) | (63) | (1) | (85) | |||||||||||||
| 税引前継続営業利益 | 658 | 636 | 1,747 | 1,752 | |||||||||||||
| 法人税負担（繰延特別措置を除く） | (168) | (250) | (435) | (550) | |||||||||||||
| 当期純利益 | 490 | 386 | 1,312 | 1,202 | |||||||||||||
税引き後の中止された事業からの収益（損失） | — | (4) | — | (4) | |||||||||||||
| 当期純利益 | 490 | 382 | 1,312 | 1,198 | |||||||||||||
非支配持分に帰属する当期純利益 | (19) | (7) | (40) | (33) | |||||||||||||
| GEヘルスケアに帰属する当期純利益 | 470 | 375 | 1,272 | 1,165 | |||||||||||||
| 償還可能な非支配株主による優先株配当と見なされる | — | — | — | (183) | |||||||||||||
| GEヘルスケア普通株主に帰属する当期純利益 | $ | 470 | $ | 375 | $ | 1,272 | $ | 982 | |||||||||
| GEヘルスケア普通株主に帰属する継続する事業からの一株当たり利益: | |||||||||||||||||
| 基本 | $ | 1.03 | $ | 0.83 | $ | 2.79 | $ | 2.17 | |||||||||
| 希薄化後 | 1.02 | 0.83 | 2.77 | 2.16 | |||||||||||||
| GEヘルスケア普通株主に帰属する一株当たり利益: | |||||||||||||||||
| 基本 | $ | 1.03 | $ | 0.82 | $ | 2.79 | $ | 2.16 | |||||||||
| 希薄化後 | 1.02 | 0.82 | 2.77 | 2.15 | |||||||||||||
| 加重平均株式数： | |||||||||||||||||
| 基本 | 457 | 455 | 456 | 455 | |||||||||||||
| 希薄化後 | 459 | 458 | 459 | 458 | |||||||||||||
4
| Condensed Consolidated Statements of Financial Position (Unaudited) | ||||||||
| As of | ||||||||
| (In millions, except share and per share amounts) | September 30, 2024 | December 31, 2023 | ||||||
| Cash, cash equivalents, and restricted cash | $ | 3,568 | $ | 2,504 | ||||
| Receivables – net of allowances of $104 and $98 | 3,418 | 3,525 | ||||||
| Due from related parties | 6 | 32 | ||||||
| Inventories | 2,124 | 1,960 | ||||||
| Contract and other deferred assets | 1,046 | 1,000 | ||||||
| All other current assets | 476 | 389 | ||||||
| Current assets | 10,638 | 9,410 | ||||||
| Property, plant, and equipment – net | 2,539 | 2,500 | ||||||
| Goodwill | 13,138 | 12,936 | ||||||
| Other intangible assets – net | 1,132 | 1,253 | ||||||
| Deferred income taxes | 4,309 | 4,474 | ||||||
| All other non-current assets | 2,098 | 1,881 | ||||||
| Total assets | $ | 33,855 | $ | 32,454 | ||||
| Short-term borrowings | $ | 1,007 | $ | 1,006 | ||||
| Accounts payable | 2,911 | 2,947 | ||||||
| Due to related parties | 7 | 99 | ||||||
| Contract liabilities | 1,915 | 1,918 | ||||||
| Current compensation and benefits | 1,422 | 1,518 | ||||||
| All other current liabilities | 1,409 | 1,493 | ||||||
| Current liabilities | 8,670 | 8,981 | ||||||
| Long-term borrowings | 9,306 | 8,436 | ||||||
| Non-current compensation and benefits | 5,388 | 5,782 | ||||||
| Deferred income taxes | 59 | 68 | ||||||
| All other non-current liabilities | 1,920 | 1,877 | ||||||
| Total liabilities | 25,343 | 25,144 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interests | 177 | 165 | ||||||
| Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 457,144,443 shares issued as of September 30, 2024; 455,342,290 shares issued as of December 31, 2023 | 5 | 5 | ||||||
| Treasury stock, at cost, 291,053 shares as of September 30, 2024 and 0 shares as of December 31, 2023 | (25) | — | ||||||
| Additional paid-in capital | 6,551 | 6,493 | ||||||
| Retained earnings | 2,558 | 1,326 | ||||||
| Accumulated other comprehensive income (loss) – net | (771) | (691) | ||||||
| Total equity attributable to GE HealthCare | 8,317 | 7,133 | ||||||
| Noncontrolling interests | 18 | 12 | ||||||
| Total equity | 8,335 | 7,145 | ||||||
| Total liabilities, redeemable noncontrolling interests, and equity | $ | 33,855 | $ | 32,454 | ||||
5
| Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| For the nine months ended September 30 | ||||||||
| (In millions) | 2024 | 2023 | ||||||
| Net income | $ | 1,312 | $ | 1,198 | ||||
| Less: Income (loss) from discontinued operations, net of taxes | — | (4) | ||||||
| Net income from continuing operations | $ | 1,312 | $ | 1,202 | ||||
| Adjustments to reconcile Net income from continuing operations to Cash from (used for) operating activities | ||||||||
| Depreciation of property, plant, and equipment | 203 | 188 | ||||||
| Amortization of intangible assets | 237 | 278 | ||||||
| Gain on fair value remeasurement of contingent consideration | (19) | (17) | ||||||
| Net periodic postretirement benefit plan (income) expense | (271) | (291) | ||||||
| Postretirement plan contributions | (257) | (259) | ||||||
| Share-based compensation | 92 | 81 | ||||||
| Provision for income taxes | 435 | 550 | ||||||
| Cash paid during the year for income taxes | (375) | (375) | ||||||
| Changes in operating assets and liabilities, excluding the effects of acquisitions: | ||||||||
| Receivables | 83 | (82) | ||||||
| Due from related parties | 24 | 9 | ||||||
| Inventories | (157) | (85) | ||||||
| Contract and other deferred assets | (33) | (75) | ||||||
| Accounts payable | 3 | (93) | ||||||
| Due to related parties | (72) | (87) | ||||||
| Contract liabilities | (25) | 69 | ||||||
| Current compensation and benefits | (97) | 37 | ||||||
| All other operating activities - net | (41) | 1 | ||||||
| Cash from (used for) operating activities – continuing operations | 1,042 | 1,051 | ||||||
| Cash flows – investing activities | ||||||||
| Additions to property, plant and equipment and internal-use software | (299) | (293) | ||||||
| Dispositions of property, plant, and equipment | — | 1 | ||||||
| Purchases of businesses, net of cash acquired | (259) | (147) | ||||||
| Purchases of investments | (33) | (21) | ||||||
| All other investing activities - net | (83) | (10) | ||||||
| Cash from (used for) investing activities – continuing operations | (674) | (470) | ||||||
| Cash flows – financing activities | ||||||||
| Net increase (decrease) in borrowings (maturities of 90 days or less) | — | (9) | ||||||
| Newly issued debt, net of debt issuance costs (maturities longer than 90 days) | 994 | 2,020 | ||||||
| Repayments and other reductions (maturities longer than 90 days) | (162) | (9) | ||||||
Dividends paid to stockholders | (41) | (28) | ||||||
| Redemption of noncontrolling interests | — | (211) | ||||||
| Net transfers (to) from GE | — | (1,317) | ||||||
| Proceeds from stock issued under employee benefit plans | 31 | 31 | ||||||
| Taxes paid related to net share settlement of equity awards | (90) | (31) | ||||||
| All other financing activities - net | (28) | (24) | ||||||
| Cash from (used for) financing activities – continuing operations | 704 | 422 | ||||||
| Cash from (used for) operating activities – discontinued operations | (4) | — | ||||||
| Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash | (2) | (34) | ||||||
| Increase (decrease) in cash, cash equivalents, and restricted cash | 1,066 | 969 | ||||||
| Cash, cash equivalents, and restricted cash at beginning of year | 2,506 | 1,451 | ||||||
| Cash, cash equivalents, and restricted cash as of September 30 | $ | 3,572 | $ | 2,420 | ||||
| Supplemental disclosure of cash flows information | ||||||||
| Cash paid during the year for interest | $ | (339) | $ | (318) | ||||
| Non-cash investing activities | ||||||||
| Acquired but unpaid property, plant, and equipment | $ | 72 | $ | 80 | ||||
6
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 (“Adjusted ETR”) 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 ETR 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 - continuing operations 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.
7
Non-GAAP Financial Reconciliations
| Organic Revenue* | |||||||||||||||||||||||
Unaudited | For the three months ended September 30 | For the nine months ended September 30 | |||||||||||||||||||||
($ in millions) | 2024 | 2023 | % change | 2024 | 2023 | % change | |||||||||||||||||
| Imaging revenues | $ | 2,229 | $ | 2,236 | —% | $ | 6,462 | $ | 6,552 | (1)% | |||||||||||||
| Less: Acquisitions(1) | 16 | — | 29 | — | |||||||||||||||||||
| Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
| Less: Foreign currency exchange | (8) | — | (65) | — | |||||||||||||||||||
| Imaging Organic revenue* | $ | 2,220 | $ | 2,236 | (1)% | $ | 6,497 | $ | 6,552 | (1)% | |||||||||||||
| AVS revenues | $ | 1,216 | $ | 1,214 | —% | $ | 3,692 | $ | 3,712 | (1)% | |||||||||||||
| Less: Acquisitions(1) | — | — | — | — | |||||||||||||||||||
| Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
| Less: Foreign currency exchange | (2) | — | (22) | — | |||||||||||||||||||
| AVS Organic revenue* | $ | 1,218 | $ | 1,214 | —% | $ | 3,713 | $ | 3,712 | —% | |||||||||||||
| PCS revenues | $ | 779 | $ | 764 | 2% | $ | 2,298 | $ | 2,315 | (1)% | |||||||||||||
| Less: Acquisitions(1) | — | — | — | — | |||||||||||||||||||
| Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
| Less: Foreign currency exchange | — | — | (4) | — | |||||||||||||||||||
| PCS Organic revenue* | $ | 779 | $ | 764 | 2% | $ | 2,302 | $ | 2,315 | (1)% | |||||||||||||
| PDx revenues | $ | 625 | $ | 589 | 6% | $ | 1,862 | $ | 1,715 | 9% | |||||||||||||
| Less: Acquisitions(1) | — | — | — | — | |||||||||||||||||||
| Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
| Less: Foreign currency exchange | (5) | — | (13) | — | |||||||||||||||||||
| PDx Organic revenue* | $ | 630 | $ | 589 | 7% | $ | 1,876 | $ | 1,715 | 9% | |||||||||||||
| Other revenues | $ | 15 | $ | 19 | (22)% | $ | 39 | $ | 52 | (25)% | |||||||||||||
| Less: Acquisitions(1) | — | — | — | — | |||||||||||||||||||
| Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
| Less: Foreign currency exchange | — | — | — | — | |||||||||||||||||||
| Other Organic revenue* | $ | 15 | $ | 19 | (21)% | $ | 39 | $ | 52 | (25)% | |||||||||||||
| Total revenues | $ | 4,863 | $ | 4,822 | 1% | $ | 14,353 | $ | 14,346 | —% | |||||||||||||
| Less: Acquisitions(1) | 16 | — | 29 | — | |||||||||||||||||||
| Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
| Less: Foreign currency exchange | (15) | — | (104) | — | |||||||||||||||||||
| Organic revenue* | $ | 4,863 | $ | 4,822 | 1% | $ | 14,427 | $ | 14,346 | 1% | |||||||||||||
(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. | ||||
* Non-GAAP financial measure.
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Adjusted EBIT* | |||||||||||||||||||||||
Unaudited | For the three months ended September 30 | For the nine months ended September 30 | |||||||||||||||||||||
($ in millions) | 2024 | 2023 | % change | 2024 | 2023 | % change | |||||||||||||||||
| Net income attributable to GE HealthCare | $ | 470 | $ | 375 | 25 | % | $ | 1,272 | $ | 1,165 | 9 | % | |||||||||||
| Add: Interest and other financial charges – net | 130 | 138 | 383 | 411 | |||||||||||||||||||
| Add: Non-operating benefit (income) costs | (102) | (94) | (306) | (332) | |||||||||||||||||||
| Less: Benefit (provision) for income taxes | (168) | (250) | (435) | (550) | |||||||||||||||||||
| Less: Income (loss) from discontinued operations, net of taxes | — | (4) | — | (4) | |||||||||||||||||||
| Less: Net (income) loss attributable to noncontrolling interests | (19) | (7) | (40) | (33) | |||||||||||||||||||
| EBIT* | $ | 685 | $ | 680 | 1 | % | $ | 1,825 | $ | 1,831 | — | % | |||||||||||
| Add: Restructuring costs(1) | 22 | 3 | 90 | 34 | |||||||||||||||||||
| Add: Acquisition and disposition-related charges (benefits)(2) | (4) | (14) | (7) | (15) | |||||||||||||||||||
| Add: Spin-Off and separation costs(3) | 56 | 45 | 182 | 175 | |||||||||||||||||||
| Add: (Gain) loss on business and asset dispositions(4) | 1 | — | — | — | |||||||||||||||||||
| Add: Amortization of acquisition-related intangible assets | 34 | 32 | 100 | 95 | |||||||||||||||||||
| Add: Investment revaluation (gain) loss(5) | 1 | (2) | 26 | (1) | |||||||||||||||||||
| Adjusted EBIT* | $ | 795 | $ | 744 | 7 | % | $ | 2,217 | $ | 2,119 | 5 | % | |||||||||||
| Net income margin | 9.7 | % | 7.8 | % | 190 bps | 8.9 | % | 8.1 | % | 70 bps | |||||||||||||
| Adjusted EBIT margin* | 16.3 | % | 15.4 | % | 90 bps | 15.4 | % | 14.8 | % | 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. | ||||
* Non-GAAP financial measure.
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Adjusted Net Income* | |||||||||||||||||||||||
Unaudited | For the three months ended September 30 | For the nine months ended September 30 | |||||||||||||||||||||
($ in millions) | 2024 | 2023 | % change | 2024 | 2023 | % change | |||||||||||||||||
| Net income attributable to GE HealthCare | $ | 470 | $ | 375 | 25 | % | $ | 1,272 | $ | 1,165 | 9 | % | |||||||||||
| Add: Non-operating benefit (income) costs | (102) | (94) | (306) | (332) | |||||||||||||||||||
| Add: Restructuring costs(1) | 22 | 3 | 90 | 34 | |||||||||||||||||||
| Add: Acquisition and disposition-related charges (benefits)(2) | (4) | (14) | (7) | (15) | |||||||||||||||||||
| Add: Spin-Off and separation costs(3) | 56 | 45 | 182 | 175 | |||||||||||||||||||
| Add: (Gain) loss on business and asset dispositions(4) | 1 | — | — | — | |||||||||||||||||||
| Add: Amortization of acquisition-related intangible assets | 34 | 32 | 100 | 95 | |||||||||||||||||||
| Add: Investment revaluation (gain) loss(5) | 1 | (2) | 26 | (1) | |||||||||||||||||||
| Add: Tax effect of reconciling items(6) | (3) | (4) | (26) | (3) | |||||||||||||||||||
| Add: Spin-Off and other tax adjustments(7) | 46 | 106 | 60 | 136 | |||||||||||||||||||
| Less: Income (loss) from discontinued operations, net of taxes | — | (4) | — | (4) | |||||||||||||||||||
| Adjusted net income* | $ | 521 | $ | 451 | 16 | % | $ | 1,393 | $ | 1,258 | 11 | % | |||||||||||
| Adjusted net income margin* | 10.7 | % | 9.4 | % | 140 bps | 9.7 | % | 8.8 | % | 90 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) | The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. | ||||
(7) | 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, the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates, and the impact of tax legislation changes. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items. | ||||
* Non-GAAP financial measure.
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| Adjusted Earnings Per Share* | |||||||||||||||||||||||
Unaudited | For the three months ended September 30 | For the nine months ended September 30 | |||||||||||||||||||||
| (In dollars, except shares outstanding presented in millions) | 2024 | 2023 | $ change | 2024 | 2023 | $ change | |||||||||||||||||
| Diluted earnings per share – continuing operations | $ | 1.02 | $ | 0.83 | $ | 0.20 | $ | 2.77 | $ | 2.16 | $ | 0.61 | |||||||||||
| Add: Deemed preferred stock dividend of redeemable noncontrolling interest | — | — | — | 0.40 | |||||||||||||||||||
| Add: Non-operating benefit (income) costs | (0.22) | (0.21) | (0.67) | (0.73) | |||||||||||||||||||
| Add: Restructuring costs(1) | 0.05 | 0.01 | 0.20 | 0.07 | |||||||||||||||||||
| Add: Acquisition and disposition-related charges (benefits)(2) | (0.01) | (0.03) | (0.02) | (0.03) | |||||||||||||||||||
| Add: Spin-Off and separation costs(3) | 0.12 | 0.10 | 0.40 | 0.38 | |||||||||||||||||||
| Add: (Gain) loss on business and asset dispositions(4) | 0.00 | — | — | — | |||||||||||||||||||
| Add: Amortization of acquisition-related intangible assets | 0.08 | 0.07 | 0.22 | 0.21 | |||||||||||||||||||
| Add: Investment revaluation (gain) loss(5) | 0.00 | (0.00) | 0.06 | (0.00) | |||||||||||||||||||
| Add: Tax effect of reconciling items(6) | (0.01) | (0.01) | (0.06) | (0.01) | |||||||||||||||||||
| Add: Spin-Off and other tax adjustments(7) | 0.10 | 0.23 | 0.13 | 0.30 | |||||||||||||||||||
| Adjusted earnings per share* | $ | 1.14 | $ | 0.99 | $ | 0.15 | $ | 3.04 | $ | 2.75 | $ | 0.29 | |||||||||||
| 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) | The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. | ||||
(7) | 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, the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates, and the impact of tax legislation changes. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items. | ||||
* Non-GAAP financial measure.
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| Adjusted Tax Expense* and Adjusted ETR* | |||||||||||||||||
Unaudited | For the three months ended September 30 | For the nine months ended September 30 | |||||||||||||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Benefit (provision) for income taxes | $ | (168) | $ | (250) | $ | (435) | $ | (550) | |||||||||
| Add: Tax effect of reconciling items(1) | (3) | (4) | (26) | (3) | |||||||||||||
| Add: Spin-Off and other tax adjustments(2) | 46 | 106 | 60 | 136 | |||||||||||||
| Adjusted tax expense* | $ | (124) | $ | (148) | $ | (401) | $ | (417) | |||||||||
| Effective tax rate | 25.5% | 39.3% | 24.9% | 31.4% | |||||||||||||
| Adjusted effective tax rate* | 18.7% | 24.4% | 21.9% | 24.4% | |||||||||||||
(1) | The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. | ||||
(2) | 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, the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates, and the impact of tax legislation changes. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items. | ||||
| Free Cash Flow* | |||||||||||||||||||||||
Unaudited | For the three months ended September 30 | For the nine months ended September 30 | |||||||||||||||||||||
($ in millions) | 2024 | 2023 | % change | 2024 | 2023 | % change | |||||||||||||||||
| Cash from (used for) operating activities – continuing operations | $ | 742 | $ | 650 | 14% | $ | 1,042 | $ | 1,051 | (1)% | |||||||||||||
| Add: Additions to PP&E and internal-use software | (90) | (80) | (299) | (293) | |||||||||||||||||||
| Add: Dispositions of PP&E | — | — | — | 1 | |||||||||||||||||||
| Free cash flow* | $ | 651 | $ | 570 | 14% | $ | 743 | $ | 759 | (2)% | |||||||||||||
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).
* Non-GAAP financial measure.
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Conference Call and Webcast Information
GE HealthCare will discuss its results during its live earnings call today, October 30, 2024 at 8:30 am ET/7:30 am CT. 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 the Middle East, 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.
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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, Advanced Visualization Solutions, 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, Facebook, Instagram, and Insights for the latest news, or visit our website https://www.gehealthcare.com for more information.
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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