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Dec 31, 2022
Mirion Q4 2022 Earnings Report
Mirion Technologies announced $150 million investment from T. Rowe Price and updated its adjusted free cash flow guidance for 2023.
Key Takeaways
Mirion Technologies announced a $150 million investment from T. Rowe Price, with plans to use approximately $125 million to pay down debt. As a result, Mirion is increasing its Adjusted Free Cash Flow guidance for 2023 to a range of $58 million – $78 million.
T. Rowe Price Investment Management invested $150 million in Mirion to acquire 17,142,857 shares of Mirion common stock at $8.75 per share.
Mirion intends to use approximately $125 million to pay down debt, targeting a net leverage ratio of ~3.1x by the end of 2023.
The investment from T. Rowe Price and related debt repayment led to an increase in Adjusted Free Cash Flow guidance for 2023 to a range of $58 million – $78 million.
Mirion expects net interest expense of approximately $60 million ($56 million of cash interest) and approximately 197 million shares of Class A common stock outstanding.
Mirion
Mirion
Forward Guidance
Mirion is updating its adjusted free cash flow guidance for 2023 to a range of $58 million - $78 million due to the investment from T. Rowe Price and the related repayment of indebtedness.
Positive Outlook
- Adjusted free cash flow guidance increased to $58 million - $78 million for 2023.
- Debt reduction expected to improve net leverage ratio to approximately 3.1x by the end of 2023.
- Strategic investment strengthens the balance sheet.
- Lower interest expense expected due to debt repayment.
- Remaining funds to be used for organic and inorganic growth opportunities.
Challenges Ahead
- Guidance contains forward-looking statements, and actual results may differ materially.
- Guidance excludes reconciliations of forward-looking non-GAAP measures due to inherent difficulties in projecting adjusting items.
- Net interest expense is expected to be approximately $60 million (approximately $56 million of cash interest).
- Approximately 197 million shares of Class A common stock outstanding, excluding Class B shares, warrants, and profits interests.
- The company is exposed to risks related to changes in domestic and foreign business, market, economic, financial, political and legal conditions.