- Revenues declined 1% year-over-year; Organic revenue growth*
was approximately flat
- Net income margin was 8.0% versus 7.9% for the prior year;
Adjusted Earnings Before Interest and Taxes (EBIT) margin* was
14.7% versus 14.1%
- Diluted earnings per share (EPS) were $0.81 versus $0.41 for
the prior year; Adjusted EPS* was $0.90 versus $0.85
- Cash flow from operating activities was $419 million versus
$468 million for the prior year; Free cash flow* was $274 million
versus $325 million; repaid $150 million of debt in January
2024
- Reaffirming full year 2024 guidance
GE HealthCare (Nasdaq: GEHC), a leading global precision care
innovator, today reported financial results for the first quarter
ended March 31, 2024.
GE HealthCare President and CEO Peter Arduini said, “We made
good progress against 2024 priorities in the first quarter. We
delivered margin expansion, while continuing to invest in
innovation to solve the evolving needs of customers and patients.
This is reflected in our healthy backlog, orders growth, and
positive book-to-bill. We also closed the acquisition of MIM
Software earlier this month as we accelerate our precision care
strategy. We expect to see business growth weighted toward the
second half of 2024 consistent with our previous comments, and we
remain on track to deliver our guidance for the year.”
First Quarter 2024 Total Company Financial
Performance
- Revenues of $4.6 billion declined 1% reported and were
approximately flat on an Organic* basis year-over-year, with
decreased volume partially offset by positive price.
- Total company book-to-bill was solid at 1.03 times, defined as
Total orders divided by Total revenues. Total company orders
increased 1% organically year-over-year.
- Net income attributable to GE HealthCare was $374 million
versus $372 million for the prior year, and Adjusted EBIT* was $681
million versus $664 million.
- Net income margin was 8.0% versus 7.9% for the prior year, up
10 basis points (bps). Adjusted EBIT margin* was 14.7% versus
14.1%, up 50 bps as both measures saw benefits from productivity
and price.
- Diluted EPS was $0.81 versus $0.41, up $0.40 from the prior
year due to a noncontrolling interest redemption of preferred stock
in the prior year. Adjusted EPS* was $0.90 versus $0.85, up $0.05
from the prior year driven by improved margins and lower interest
expense.
- Cash flow from operating activities was $419 million, down $49
million year-over-year. Free cash flow* was $274 million, down $51
million year-over-year. The Company repaid $150 million of debt in
January 2024, as previously disclosed.
First Quarter 2024 Segment Financial Performance
(Unaudited)
Segment ($ in
millions)
Imaging
Ultrasound
Patient Care Solutions
Pharmaceutical
Diagnostics
Segment Revenues
$2,466
$824
$747
$599
YoY % change
(1)%
(4)%
(4)%
7%
YoY % Organic* change
~flat
(4)%
(4)%
8%
Segment EBIT
$240
$182
$81
$178
YoY % change
26%
(12)%
(25)%
15%
Segment EBIT Margin
9.7%
22.1%
10.9%
29.7%
YoY change
210 bps
(200) bps
(310) bps
190 bps
YoY refers to year-over-year
comparison
Growth and Innovation
Mr. Arduini continued, “In the quarter we made notable progress
with our R&D strategy aimed at driving innovation and growth.
We received FDA clearances that will allow us to advance our
product portfolio, entered strategic research partnerships, and
announced long-term collaborations to supply customers with our
innovative technology. Our double-digit growth in R&D affirms
our commitment to technological advancement, strengthening our new
product innovation pipeline, and fueling revenue expansion
opportunities.”
Recent Innovation and Commercial Highlights
- GE HealthCare Receives FDA Clearance for Portrait VSM, Building
on Its Growing Ecosystem of Connected Patient Monitoring
Solutions
- GE HealthCare’s MIM Software Collaborates with Elekta to Help
Enhance Radiation Therapy Treatments and Improve Patient
Outcomes
- GE HealthCare Introduces Caption AI on Vscan Air SL Wireless
Handheld Ultrasound System to Help More Clinicians Capture
Diagnostic-Quality Cardiac Images
- GE HealthCare closes MIM Software Acquisition, Bolstering its
Portfolio and Advancing its Precision Care Strategy
- GE HealthCare Announces the FDA Clearance of nCommand Lite by
IONIC Health
- GE HealthCare and Hartford HealthCare Renew and Evolve 7-Year
Collaboration to Advance Patient Care and Access in
Connecticut
- GE HealthCare Announces Publication on Artificial Intelligence
Models Leveraging Routinely Collected Clinical Data to Predict
Patient Response to Immunotherapy
- GE HealthCare Precision Care with Launch of Elevated LOGIQ
Ultrasound System Portfolio at European Congress of Radiology
2024
- Serving Patients and Communities through Comprehensive Care
Solutions: OSF HealthCare, Pointcore, Inc. and GE HealthCare Enter
Strategic Care Alliance
2024 Guidance
The Company is reaffirming full year 2024 guidance as
follows:
- Organic revenue growth* of approximately 4%
year-over-year.
- Adjusted EBIT margin* in the range of 15.6% to 15.9%,
reflecting an expansion of 50 to 80 basis points versus 2023
Adjusted EBIT margin* of 15.1%.
- 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
March 31
(In millions, except per share
amounts)
2024
2023
Sales of products
$
3,045
$
3,131
Sales of services
1,605
1,576
Total revenues
4,650
4,707
Cost of products
1,967
2,037
Cost of services
782
779
Gross profit
1,902
1,891
Selling, general, and administrative
1,038
1,062
Research and development
324
270
Total operating expenses
1,362
1,332
Operating income
540
559
Interest and other financial charges –
net
122
136
Non-operating benefit (income) costs
(102
)
(115
)
Other (income) expense – net
8
(8
)
Income before income taxes
512
546
Benefit (provision) for income taxes
(124
)
(163
)
Net income
388
383
Net (income) loss attributable to
noncontrolling interests
(14
)
(11
)
Net income attributable to GE
HealthCare
374
372
Deemed preferred stock dividend of
redeemable noncontrolling interest
—
(183
)
Net income attributable to GE
HealthCare common stockholders
$
374
$
189
Earnings per share attributable to GE
HealthCare common stockholders:
Basic
$
0.82
$
0.42
Diluted
$
0.81
$
0.41
Weighted-average number of shares
outstanding:
Basic
456
454
Diluted
459
457
Condensed Consolidated Statements of
Financial Position (Unaudited)
As of
(In millions, except share and per
share amounts)
March 31, 2024
December 31, 2023
Cash, cash equivalents, and restricted
cash
$
2,563
$
2,504
Receivables – net of allowances of $102
and $98
3,324
3,525
Due from related parties
20
32
Inventories
1,989
1,960
Contract and other deferred assets
961
1,000
All other current assets
517
389
Current assets
9,373
9,410
Property, plant, and equipment – net
2,445
2,500
Goodwill
12,927
12,936
Other intangible assets – net
1,174
1,253
Deferred income taxes
4,413
4,474
All other non-current assets
1,878
1,881
Total assets
$
32,208
$
32,454
Short-term borrowings
$
1,008
$
1,006
Accounts payable
2,931
2,947
Due to related parties
48
99
Contract liabilities
1,879
1,918
All other current liabilities
2,993
3,011
Current liabilities
8,859
8,981
Long-term borrowings
8,247
8,436
Compensation and benefits
5,625
5,782
Deferred income taxes
68
68
All other non-current liabilities
1,811
1,877
Total liabilities
24,609
25,144
Commitments and contingencies
Redeemable noncontrolling
interests
177
165
Common stock, par value $0.01 per share,
1,000,000,000 shares authorized, 456,328,270 shares issued and
outstanding as of March 31, 2024; 455,342,290 shares issued and
outstanding as of December 31, 2023
5
5
Additional paid-in capital
6,504
6,493
Retained earnings
1,687
1,326
Accumulated other comprehensive income
(loss) – net
(787
)
(691
)
Total equity attributable to GE
HealthCare
7,408
7,133
Noncontrolling interests
14
12
Total equity
7,423
7,145
Total liabilities, redeemable
noncontrolling interests, and equity
$
32,208
$
32,454
Condensed Consolidated Statements of
Cash Flows (Unaudited)
For the three months ended
March 31
(In millions)
2024
2023
Net income
$
388
$
383
Adjustments to reconcile Net income to
Cash from (used for) operating activities
Depreciation of property, plant, and
equipment
68
61
Amortization of intangible assets
80
96
Gain on fair value remeasurement of
contingent consideration
(1
)
—
Net periodic postretirement benefit plan
(income) expense
(90
)
(101
)
Postretirement plan contributions
(87
)
(91
)
Share-based compensation
34
24
Provision for income taxes
124
163
Cash paid during the year for income
taxes
(86
)
(102
)
Changes in operating assets and
liabilities, excluding the effects of acquisitions:
Receivables
155
(22
)
Due from related parties
13
5
Inventories
(59
)
(122
)
Contract and other deferred assets
32
12
Accounts payable
81
87
Due to related parties
(50
)
6
Contract liabilities
(18
)
119
All other operating activities
(165
)
(50
)
Cash from (used for) operating
activities
419
468
Cash flows – investing
activities
Additions to property, plant and equipment
and internal-use software
(145
)
(143
)
Purchases of businesses, net of cash
acquired
—
(127
)
All other investing activities
(42
)
4
Cash from (used for) investing
activities
(188
)
(266
)
Cash flows – financing
activities
Net increase (decrease) in borrowings
(maturities of 90 days or less)
1
(9
)
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)
(153
)
(6
)
Dividends paid to stockholders
(14
)
—
Net transfers (to) from GE
—
(1,317
)
All other financing activities
12
5
Cash from (used for) financing
activities
(153
)
673
Effect of foreign currency rate changes on
cash, cash equivalents, and restricted cash
(19
)
8
Increase (decrease) in cash, cash
equivalents, and restricted cash
59
883
Cash, cash equivalents, and restricted
cash at beginning of year
2,506
1,451
Cash, cash equivalents, and restricted
cash as of March 31
$
2,565
$
2,334
Supplemental disclosure of cash flows
information
Cash paid during the year for interest
$
(55
)
$
(42
)
Non-cash investing activities
Acquired but unpaid property, plant, and
equipment
$
53
$
64
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. The Company believes that presenting
these non-GAAP financial measures, in addition to the corresponding
U.S. GAAP financial measures, are important supplemental measures
that exclude non-cash or other items that may not be indicative of
or related to its core operating results and the overall health of
the Company. The Company believes these non-GAAP financial measures
provide investors greater transparency to the information used by
management for its operational decision-making and allow investors
to see results “through the eyes of management.” The Company
further believes that providing this information assists investors
in understanding its operating performance and the methodology used
by management to evaluate and measure such performance. When read
in conjunction with the Company’s U.S. GAAP results, these non-GAAP
financial measures provide a baseline for analyzing trends in the
Company’s underlying businesses and can be used by management as
one basis for making financial, operational, and planning
decisions. Finally, these measures are often used by analysts and
other interested parties to evaluate companies in the Company’s
industry.
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, thereby affecting their comparability from
company to company. In order to compensate for these and the other
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. Readers should
review the reconciliations and should not rely on any single
financial measure to evaluate the Company’s business.
The Company defines these non-GAAP financial measures as:
- Organic revenue: Total revenues excluding the effects of: (1)
net sales from recent acquisitions and dispositions with less than
a full year of comparable net sales; and (2) foreign currency
exchange rate fluctuations in order to present revenue on a
constant currency basis.
- Organic revenue growth rate: Rate of change when comparing
Organic revenue, period over period.
- EBIT: Net income attributable to GE HealthCare excluding the
effects of: (1) Interest and other financial charges – net; (2)
Non-operating benefit (income) costs; (3) Provision (benefit) for
income taxes; (4) Income (loss) from discontinued operations, net
of taxes; (5) Net (income) loss attributable to noncontrolling
interests.
- Adjusted EBIT: Net income attributable to GE HealthCare
excluding the effects of: (1) Interest and other financial charges
– net; (2) Non-operating benefit (income) costs; (3) Provision
(benefit) for income taxes; (4) Income (loss) from discontinued
operations, net of taxes; (5) Net (income) loss attributable to
noncontrolling interests; (6) restructuring costs; (7) acquisition
and disposition-related charges (benefits); (8) Spin-Off and
separation costs; (9) (gain) loss on business and asset
dispositions; (10) amortization of acquisition-related intangible
assets; and (11) investment revaluation (gain) loss. In addition,
the Company may from time to time consider excluding other
nonrecurring items to enhance comparability between periods.
- Adjusted EBIT margin: Adjusted EBIT divided by Total revenues
for the same period.
The Company believes that Organic revenue and Organic revenue
growth rate, by excluding the effect of acquisitions, dispositions,
and foreign currency rate fluctuations, provide management and
investors with additional understanding of the Company’s core,
top-line operating results and greater visibility into underlying
revenue trends of its established, ongoing operations. Organic
revenue and Organic revenue growth rate also provide greater
insight regarding the overall demand for its products and
services.
The Company believes EBIT, Adjusted EBIT, and Adjusted EBIT
margin provide management and investors with additional
understanding of its business by highlighting the results from
ongoing operations and the underlying profitability factors. These
metrics exclude interest expense, interest income, non-operating
benefit (income) costs, and tax expense, as well as non-recurring
and/or non-cash items, which may have a material impact on the
Company’s results. The Company believes this provides additional
insight into how its businesses are performing, on a normalized
basis. However, these non-GAAP financial measures should not be
construed as inferring that the Company’s future results will be
unaffected by the items for which the measure adjusts.
- Adjusted net income: Net income attributable to GE HealthCare
excluding (1) Non-operating benefit (income) costs; (2)
restructuring costs; (3) acquisition and disposition-related
charges (benefits); (4) Spin-Off and separation costs; (5) (gain)
loss on business and asset dispositions; (6) amortization of
acquisition-related intangible assets; (7) investment revaluation
(gain) loss; (8) tax effect of reconciling items (items 1-7); (9)
certain tax adjustments as described in Adjusted tax expense
definition below and (10) Income (loss) from discontinued
operations, net of taxes. In addition, the Company may from time to
time consider excluding other nonrecurring items to enhance
comparability between periods.
- Adjusted EPS: Diluted earnings per share excluding the per
share impact of: (1) deemed preferred stock dividend of redeemable
noncontrolling interest, (2) Non-operating benefit (income) costs;
(3) restructuring costs; (4) acquisition and disposition-related
charges (benefits); (5) Spin-Off and separation costs; (6) (gain)
loss on business and asset dispositions; (7) amortization of
acquisition-related intangible assets; (8) investment revaluation
(gain) loss; (9) tax effect of reconciling items (items 1-8); and
(10) certain tax adjustments as described in Adjusted tax expense
definition below. In addition, the Company may from time to time
consider excluding other nonrecurring items to enhance
comparability between periods.
The Company believes Adjusted net income and Adjusted EPS
provide investors with improved comparability of underlying
operating results and a further understanding and additional
transparency regarding how it evaluates the business. These
non-GAAP financial measures also provide management and investors
with additional perspective regarding the impact of certain
significant items on the Company’s earnings. However, they should
not be construed as inferring that the Company’s future results
will be unaffected by the items for which the measure adjusts.
- Adjusted tax expense and Adjusted ETR: Adjusted tax expense is
Income tax expense less the income tax related to pre-tax income
adjustments above and certain income tax adjustments. Examples of
certain income tax adjustments include 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. Adjusted ETR is Adjusted tax expense
divided by Income before income taxes less pre-tax income
adjustments above.
The Company believes that Adjusted tax expense and Adjusted ETR
provide investors with a better understanding of the normalized tax
rate applicable to the Company’s business and provide more
consistent comparability across periods.
- Free cash flow: Cash from (used for) operating activities
adjusting for the effects of (1) additions to property, plant and
equipment (PP&E) and internal-use software; and (2)
dispositions of PP&E.
- Free cash flow conversion: Free cash flow divided by Adjusted
net income.
The Company believes that Free cash flow and Free cash flow
conversion provide management and investors with important measures
of the Company’s ability to generate cash on a normalized basis.
These metrics also provide insight into the Company’s flexibility
to allocate capital, including reinvesting in the Company for
future growth, paying down debt, paying dividends, and pursuing
other opportunities that may enhance stockholder value. However,
they should not be construed as inferring that the Company’s future
results will be unaffected by the items for which the measure
adjusts.
Non-GAAP Financial
Reconciliations
Organic Revenue*
Unaudited
For the three months ended
March 31
($ In millions)
2024
2023
% change
Imaging revenues
$
2,466
$
2,496
(1
)%
Less: Acquisitions(1)
—
—
Less: Dispositions(2)
—
—
Less: Foreign currency exchange
(27
)
—
Imaging Organic revenue*
$
2,493
$
2,496
—
%
Ultrasound revenues
$
824
$
859
(4
)%
Less: Acquisitions(1)
—
—
Less: Dispositions(2)
—
—
Less: Foreign currency exchange
(5
)
—
Ultrasound Organic revenue*
$
829
$
859
(4
)%
PCS revenues
$
747
$
781
(4
)%
Less: Acquisitions(1)
—
—
Less: Dispositions(2)
—
—
Less: Foreign currency exchange
(1
)
—
PCS Organic revenue*
$
748
$
781
(4
)%
PDx revenues
$
599
$
558
7
%
Less: Acquisitions(1)
—
—
Less: Dispositions(2)
—
—
Less: Foreign currency exchange
(1
)
—
PDx Organic revenue*
$
600
$
558
8
%
Other revenues
$
15
$
13
12
%
Less: Acquisitions(1)
—
—
Less: Dispositions(2)
—
—
Less: Foreign currency exchange
—
—
Other Organic revenue*
$
14
$
13
11
%
Total revenues
$
4,650
$
4,707
(1
)%
Less: Acquisitions(1)
—
—
Less: Dispositions(2)
—
—
Less: Foreign currency exchange
(34
)
—
Organic revenue*
$
4,684
$
4,707
—
%
(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
March 31
($ In millions)
2024
2023
% change
Net income attributable to GE
HealthCare
$
374
$
372
—
%
Add: Interest and other financial charges
– net
122
136
Add: Non-operating benefit (income)
costs
(102
)
(115
)
Less: Benefit (provision) for income
taxes
(124
)
(163
)
Less: Net (income) loss attributable to
noncontrolling interests
(14
)
(11
)
EBIT*
$
531
$
567
(6
)%
Add: Restructuring costs(1)
40
12
Add: Acquisition and disposition-related
charges (benefits)(2)
—
1
Add: Spin-Off and separation costs(3)
60
58
Add: (Gain) loss on business and asset
dispositions(4)
—
—
Add: Amortization of acquisition-related
intangible assets
31
31
Add: Investment revaluation (gain)
loss(5)
20
(5
)
Adjusted EBIT*
$
681
$
664
3
%
Net income margin
8.0
%
7.9
%
10 bps
Adjusted EBIT margin*
14.7
%
14.1
%
50 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
March 31
($ In millions)
2024
2023
% change
Net income attributable to GE
HealthCare
$
374
$
372
—
%
Add: Non-operating benefit (income)
costs
(102
)
(115
)
Add: Restructuring costs(1)
40
12
Add: Acquisition and disposition-related
charges (benefits)(2)
—
1
Add: Spin-Off and separation costs(3)
60
58
Add: (Gain) loss on business and asset
dispositions(4)
—
—
Add: Amortization of acquisition-related
intangible assets
31
31
Add: Investment revaluation (gain)
loss(5)
20
(5
)
Add: Tax effect of reconciling items
(9
)
4
Add: Certain tax adjustments(6)
—
30
Adjusted net income*
$
413
$
388
6
%
Adjusted net income margin*
8.9
%
8.2
%
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.
(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
March 31
(In dollars, except shares outstanding
presented in millions)
2024
2023
$ change
Diluted earnings per share
$
0.81
$
0.41
$
0.40
Add: Deemed preferred stock dividend of
redeemable noncontrolling interest
—
0.40
Add: Non-operating benefit (income)
costs
(0.22
)
(0.25
)
Add: Restructuring costs(1)
0.09
0.03
Add: Acquisition and disposition-related
charges (benefits)(2)
—
0.00
Add: Spin-Off and separation costs(3)
0.13
0.13
Add: (Gain) loss on business and asset
dispositions(4)
—
—
Add: Amortization of acquisition-related
intangible assets
0.07
0.07
Add: Investment revaluation (gain)
loss(5)
0.04
(0.01
)
Add: Tax effect of reconciling items
(0.02
)
0.01
Add: Certain tax adjustments(6)
—
0.07
Adjusted earnings per share*
$
0.90
$
0.85
$
0.05
Diluted weighted-average shares
outstanding
459
457
(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
March 31
($ In millions)
2024
2023
Benefit (provision) for income
taxes
$
(124
)
$
(163
)
Add: Tax effect of reconciling items
(9
)
4
Add: Certain tax adjustments(1)
—
30
Adjusted tax expense*
$
(133
)
$
(129
)
Effective tax rate
24.2
%
29.9
%
Adjusted effective tax rate*
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
March 31
($ In millions)
2024
2023
% change
Cash from (used for) operating
activities
419
468
(11
)%
Add: Additions to PP&E and
internal-use software
(145
)
(143
)
Add: Dispositions of PP&E
—
—
Free cash flow*
$
274
$
325
(16
)%
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 investor
conference call today, April 30, 2024 at 8:30am ET. The conference
call will be broadcast live via webcast, and 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 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. GE HealthCare is 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), 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/20240429845023/en/
Investor Relations Contact: Carolynne Borders
+1-631-662-4317 carolynne.borders@gehealthcare.com
Media Contact: Tor Constantino +1-585-441-1658
tor.constantino@gehealthcare.com
GE HealthCare Technologies (NASDAQ:GEHC)
Historical Stock Chart
From Nov 2024 to Dec 2024
GE HealthCare Technologies (NASDAQ:GEHC)
Historical Stock Chart
From Dec 2023 to Dec 2024
