Artificial Intelligence

ChampionX Reports Third Quarter 2021 Results

Published

3 years ago

October 27, 2021

Revenue of $818.8 million increased 9% sequentially
Net income attributable to ChampionX of $56.8 million; adjusted net income of $31.3 million
Adjusted EBITDA of $123.6 million
Cash from operating activities of $88.7 million and free cash flow of $67.3 million

THE WOODLANDS, Texas, Oct. 27, 2021 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced third quarter of 2021 results. Revenue was $818.8 million, net income attributable to ChampionX was $56.8 million, and adjusted EBITDA was $123.6 million. Income before income taxes margin was 10.3%, and adjusted EBITDA margin was 15.1%. Cash provided by operating activities was $88.7 million, and free cash flow was $67.3 million.

CEO Commentary

“We could not be more proud of how remarkably well our organization continues to perform and adapt to the short-term supply chain and logistics bottlenecks that have emerged this year as global economic activity rebounds from pandemic levels. Our employees around the world have remained laser-focused on improving the lives of our customers and communities, and I want to thank each of them for their continued dedication and commitment,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the third quarter of 2021, we once again delivered solid results driven by robust topline growth in each of our businesses. We generated revenue of $819 million, which increased 9% sequentially for the second consecutive quarter, driven by strong demand growth in both our international and North American markets. This solid topline growth demonstrates the strong organic growth potential and execution capabilities of our global business. We delivered net income attributable to ChampionX of $57 million, and adjusted EBITDA of $124 million, which represented a sequential increase of 17%. Our teams remained highly focused on executing well and delivered these strong third quarter results despite continued raw material and logistics inflation challenges, as evidenced by the 102 basis points sequential expansion in our adjusted EBITDA margin during the period.

“We continued to demonstrate our strong free cash flow profile as we generated free cash flow of $67 million. We further strengthened our balance sheet by repaying $97 million of debt during the third quarter, and we ended the period with $613 million of liquidity, including $254 million of cash and $359 million of available capacity on our revolving credit facility.

“We continue to deliver on merger integration synergies. We exited the third quarter at a $118 million cost-synergy annualized run-rate, and we fully expect to deliver the targeted annualized cost synergies of $125 million within 24 months of the merger closing.

“As we look to the fourth quarter, we expect our topline momentum to continue. We also expect volume improvements, price increase realization and cost synergy delivery to offset the continued raw material cost inflation, and we still anticipate exiting this year with a higher adjusted EBITDA margin rate than our 2020 exit rate. On a consolidated basis, in the fourth quarter we expect revenue to be between $820 million and $860 million, driven by our production-oriented businesses. We expect adjusted EBITDA of $130 million to $140 million.

“We are encouraged by the constructive demand tailwinds in our businesses, and we expect 2022 to be another year of positive growth across our portfolio. We are particularly excited about the margin expansion potential in the coming years as raw materials and other inflationary factors ease and our pricing realization and productivity efforts gain further traction. We are excited about our Scientific Aviation acquisition, which is well aligned with our energy transition priorities, and we are focused on expanding our emissions management portfolio to help our customers achieve their emissions reduction objectives. ChampionX has never been better positioned than we are today for the evolving energy industry, and I am honored to lead such a talented and motivated team.”

Production Chemical Technologies

Production Chemical Technologies revenue in the third quarter of 2021 was $487.7 million, an increase of $40.6 million, or 9%, sequentially, due to higher international volumes and continued sales increases in our North America business.

Segment operating profit was $45.7 million and adjusted segment EBITDA was $71.1 million. Segment operating profit margin was 9.4%, an increase of 179 basis points, sequentially, and adjusted segment EBITDA margin was 14.6%, an increase of 78 basis points, sequentially, in each case due to higher sales volumes and pricing, partially offset by certain raw materials inflation.

Production & Automation Technologies

Production & Automation Technologies revenue in the third quarter of 2021 was $204.5 million, an increase of $16.3 million, or 9%, sequentially, due to continued positive demand momentum for our shorter-cycle North American land-oriented product lines, and the acquisition of Scientific Aviation during the third quarter of 2021.

Revenue from digital products, which includes our Scientific Aviation acquisition, was $41.6 million in the third quarter of 2021, an increase of $9.2 million, or 28%, compared to $32.4 million in the second quarter of 2021.

Segment operating profit was $14.4 million, and adjusted segment EBITDA was $40.0 million. Segment operating profit margin was 7.0%, an increase of 51 basis points, sequentially, due to higher sales volumes. Adjusted segment EBITDA margin was 19.6%, a decrease of 59 basis points, sequentially, due to certain raw materials and logistics inflation.

Drilling Technologies

Drilling Technologies revenue in the third quarter of 2021 was $49.4 million, an increase of $11.8 million, or 31%, sequentially, due to the continued increase in North American and international land drilling activity.

Segment operating profit was $11.1 million, and adjusted segment EBITDA was $15.3 million. Segment operating profit margin was 22.6%, an increase of 1,227 basis points, sequentially, and adjusted segment EBITDA margin was 31.0%, an increase of 836 basis points, sequentially, in each case due to higher sales volumes and favorable product mix.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the third quarter of 2021 was $38.2 million, an increase of $5.0 million, or 15%, sequentially, driven by higher U.S. volumes and direct sales to E&P companies.

Segment operating profit was $37.8 million, and adjusted segment EBITDA was $0.6 million. Segment operating profit reflects the net gain on the sale of our manufacturing plant in Corsicana of $39.9 million. Segment operating profit margin was 99.0%, as compared to a segment operating loss margin of 7.8% in the prior quarter. Adjusted segment EBITDA margin was 1.4%, an increase of 83 basis points, sequentially, due to higher sales volumes.

Other Business Highlights

During the third quarter, ChampionX completed the acquisition of Scientific Aviation, Inc., which is an industry leader in developing methods and technologies for fast, accurate, and cost-effective solutions for methane leak detection, emissions quantification and air quality research, helping customers to achieve their greenhouse gas emissions reduction goals.
During the third quarter, ChampionX completed an investment in PingThings, Inc., which has developed an advanced sensor AI platform that enables its customers to manage tremendous volumes of time series data at scale, helping achieve their system reliability, decarbonization and capital efficiency goals. This investment aligns with our long-term strategic priority of accelerating digital revenue streams and expanding our digital offering to other industries by establishing relationships to leverage the digital ecosystem.
During the third quarter, ChampionX completed the sale of its Corsicana, Texas, chemical manufacturing plant. The sale is consistent with our ongoing initiatives to optimize our global supply chain and improve the cost structure in our Reservoir Chemical Technologies business for enhanced flexibility.
ChampionX has been named one of ALLY Energy’s Best Energy Workplaces in recognition of our continuous improvement culture, employee survey feedback, our suite of benefits programs, our continuing education and development programs, our flex-work and family-friendly programs, our D&I programs, including Employee Resource Groups (ERGs), as well as our community projects.
Production Chemical Technologies launched a novel paraffin dispersant used for successful paraffin prevention and remediation treatments. This technology has been rolled out and is being used by customers in the U.S. land market.
During the third quarter, Production & Automation Technologies won artificial lift and digital contracts with E&P operators in multiple international markets, including Latin America, the Middle East and Asia Pacific.
Production & Automation Technologies was awarded a contract for 25 chemical injection skid systems by a leading E&P operator in the Permian Basin.
ChampionX’s Spotlight EDGE has received Microsoft’s “Azure Certified Device” and “Edge Managed” certifications. This device is the only Class 1 Division 2 and ATEX finished product featured in the Microsoft Azure Certified Device Catalog. Spotlight EDGE enables our customers to deploy a scalable and modular solution that optimizes cost, increases edge computing and analytics capabilities, and provides a fit-for-purpose solution to meet business requirements.
Last month, ChampionX Digital announced Compressor Leak Insights, a first of its kind offering for the midstream gas processing industry. This is the only Commercial-Off-The-Shelf Artificial Intelligence model used by midstream companies to detect leaks on reciprocating compressors. Our model detects 86% of compressor valve leaks experienced within a customer’s fleet and reduces catastrophic failures by 91%. This product offering was jointly developed with midstream leader, DCP Midstream, working with their DCP Tech Ventures business unit.
During the third quarter, 79% of Drilling Technologies revenue was generated from products that were less than three years old.
ChampionX was a finalist for World Oil’s Best Health, Safety, Environment / Sustainable Development – Onshore Award, recognizing internal processes, programs, and digital technologies that have helped lower our carbon footprint, as well as our water treatment and environmentally sustainable chemistries that are helping our customers lower their environmental impact.

Conference Call Details

ChampionX Corporation will host a conference call on Thursday, October 28, 2021, to discuss its third quarter 2021 financial results and outlook. The call will begin at 9:00 a.m. Eastern Time. Presentation materials that supplement the conference call will be available on ChampionX’s website at investors.championx.com.

To listen to the call via a live webcast, please visit ChampionX’s website at investor.championx.com. The call will also be available for 30 days by dialing 1-888-424-8151 in the United States and Canada or 1-847-585-4422 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference ChampionX conference call number 9163658.

A replay of the conference call will be available on ChampionX’s website or at ChampionXThirdQuarter2021CallReplay. Enter passcode 50239455.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

This press release contains certain forward-looking non-GAAP financial measures, including adjusted EBITDA. The Company has not provided projected net income attributable to ChampionX or a reconciliation of projected adjusted EBITDA. Management cannot predict with a reasonable degree of accuracy certain of the necessary components of net income attributable to ChampionX, such as depreciation and amortization expense. As such, a reconciliation of projected adjusted EBITDA to projected net income attributable to ChampionX is not available without unreasonable effort. The actual amount of depreciation and amortization, in particular, and other amounts excluded from adjusted EBITDA will have a significant impact on net income attributable to ChampionX.

About ChampionX

ChampionX is a global leader in chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently around the world. ChampionX’s products provide efficient functioning throughout the lifecycle of a well with a focus on the production phase of wells. To learn more about ChampionX, visit our website at www.championX.com.

Forward-Looking Statements

This news release contains statements relating to future actions and results, which are “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, ChampionX’s market position and growth opportunities. Forward-looking statements include statements related to ChampionX’s expectations regarding the performance of the business, financial results, liquidity and capital resources of ChampionX. Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, changes in economic, competitive, strategic, technological, tax, regulatory or other factors that affect the operations of ChampionX’s businesses. You are encouraged to refer to the documents that ChampionX files from time to time with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in ChampionX’s other filings with the SEC. Readers are cautioned not to place undue reliance on ChampionX’s forward-looking statements. Forward-looking statements speak only as of the day they are made and ChampionX undertakes no obligation to update any forward-looking statement, except as required by applicable law.

Investor Contact: Byron Pope
[email protected]
281-602-0094

Media Contact: John Breed
[email protected]
281-403-5751

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(UNAUDITED)

	Three Months Ended								Nine Months Ended
	September 30,			June 30,		September 30,			September 30,
(in thousands, except per share amounts)	2021			2021		2020			2021			2020
Revenue	$	818,785		$	749,172	$	633,526		$	2,252,845		$	1,193,874
Cost of goods and services	623,162			569,167		505,066			1,714,885			950,845
Gross profit	195,623			180,005		128,460			537,960			243,029
Selling, general and administrative expense	135,089			152,341		122,156			430,908			330,956
Goodwill and long-lived asset impairment	—			—		—			—			657,251
Interest expense, net	12,849			14,064		15,935			40,884			36,236
Other (income) expense, net	(36,876		)	2,251		1,663			(36,561		)	342
Income (loss) before income taxes	84,561			11,349		(11,294		)	102,729			(781,756		)
Provision for (benefit from) income taxes	25,910			3,563		(3,962		)	32,255			(31,922		)
Net income (loss)	58,651			7,786		(7,332		)	70,474			(749,834		)
Less: Net income (loss) attributable to noncontrolling interest	1,823			536		582			624			1,453
Net income (loss) attributable to ChampionX	$	56,828		$	7,250	$	(7,914	)	$	69,850		$	(751,287	)

Earnings (loss) per share attributable to ChampionX:
Basic	$	0.28		$	0.04	$	(0.04	)	$	0.35		$	(5.73	)
Diluted	$	0.27		$	0.03	$	(0.04	)	$	0.34		$	(5.73	)

Weighted-average shares outstanding:
Basic	201,852			201,467		199,809			201,329			131,064
Diluted	208,545			208,541		199,809			208,173			131,064

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(in thousands)	September 30, 2021			December 31, 2020
ASSETS
Cash and cash equivalents	$	253,855		$	201,421
Restricted cash	3,500			—
Receivables, net	590,777			559,545
Inventories, net	497,473			430,112
Prepaid expenses and other current assets	72,123			74,767
Total current assets	1,417,728			1,265,845

Property, plant and equipment, net	780,686			854,536
Goodwill	701,475			680,594
Intangible assets, net	413,279			479,009
Other non-current assets	189,834			195,792
Total assets	$	3,503,002		$	3,475,776

LIABILITIES
Current portion of long-term debt	$	26,850		$	26,850
Accounts payable	430,576			299,666
Other current liabilities	299,253			296,044
Total current liabilities	756,679			622,560

Long-term debt	743,572			905,764
Other long-term liabilities	290,999			334,877
EQUITY
ChampionX stockholders’ equity	1,726,997			1,625,971
Noncontrolling interest	(15,245		)	(13,396		)
Total liabilities and equity	$	3,503,002		$	3,475,776

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Nine Months Ended September 30,
(in thousands)	2021			2020
Cash flows from operating activities:
Net income (loss)	$	70,474		$	(749,834	)
Depreciation	113,213			101,434
Amortization	65,592			47,827
(Gain) loss on disposal of fixed assets	(35,393		)	3,685
Goodwill and long-lived asset impairment	—			657,251
Receivables	(35,435		)	91,204
Inventories	(74,641		)	62,225
Accounts payable	130,607			(48,519		)
Leased assets	(4,496		)	(7,799		)
Other	9,879			31,958
Net cash provided by operating activities	239,800			189,432

Cash flows from investing activities:
Proceeds from sale of fixed assets	73,698			9,295
Capital expenditures	(67,027		)	(32,169		)
Acquisitions, net of cash acquired	(9,957		)	57,588
Purchase of investments	(4,874		)	—
Net cash (used for) provided by investing activities	(8,160		)	34,714

Cash flows from financing activities:
Repayment of long-term debt	(174,392		)	(206,713		)
Proceeds from long-term debt	—			125,000
Debt issuance costs	—			(4,356		)
Other	677			(7,376		)
Net cash used for financing activities	(173,715		)	(93,445		)

Effect of exchange rate changes on cash and cash equivalents and restricted cash	(1,991		)	5,471

Net increase in cash and cash equivalents and restricted cash	55,934			136,172
Cash and cash equivalents and restricted cash at beginning of period	201,421			35,290
Cash and cash equivalents and restricted cash at end of period	$	257,355		$	171,462

CHAMPIONX CORPORATION
BUSINESS SEGMENT DATA
(UNAUDITED)

	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
(in thousands)	2021				2021				2020				2021				2020
Segment revenue:
Production Chemical Technologies	$	487,670			$	447,049			$	410,151			$	1,347,090			$	546,153
Production & Automation Technologies	204,473				188,173				136,921				559,491				457,141
Drilling Technologies	49,415				37,589				15,715				121,998				92,618
Reservoir Chemical Technologies	38,192				33,222				21,264				101,305				30,570
Corporate and other	39,035				43,139				49,475				122,961				67,392
Total revenue	$	818,785			$	749,172			$	633,526			$	2,252,845			$	1,193,874

Income (loss) before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	45,696			$	33,871			$	35,172			$	109,924			$	45,094
Production & Automation Technologies	14,407				12,292				(7,454		)		32,061				(693,213		)
Drilling Technologies	11,146				3,868				(5,127		)		21,400				2,421
Reservoir Chemical Technologies	37,800				(2,594		)		(3,819		)		31,979				(6,630		)
Total segment operating profit (loss)	109,049				47,437				18,772				195,364				(652,328		)
Corporate and other	11,639				22,024				14,131				51,751				93,192
Interest expense, net	12,849				14,064				15,935				40,884				36,236
Income (loss) before income taxes	$	84,561			$	11,349			$	(11,294	)		$	102,729			$	(781,756	)

Operating profit margin / income (loss) before income taxes margin:
Production Chemical Technologies	9.4			%	7.6			%	8.6			%	8.2			%	8.3			%
Production & Automation Technologies	7.0			%	6.5			%	(5.4		)	%	5.7			%	(151.6		)	%
Drilling Technologies	22.6			%	10.3			%	(32.6		)	%	17.5			%	2.6			%
Reservoir Chemical Technologies	99.0			%	(7.8		)	%	(18.0		)	%	31.6			%	(21.7		)	%
ChampionX Consolidated	10.3			%	1.5			%	(1.8		)	%	4.6			%	(65.5		)	%

Adjusted EBITDA
Production Chemical Technologies	$	71,116			$	61,708			$	71,505			$	188,849			$	93,936
Production & Automation Technologies	39,987				37,903				24,995				113,402				79,518
Drilling Technologies	15,297				8,494				(2,782		)		31,083				14,788
Reservoir Chemical Technologies	550				202				(1,432		)		194				(1,746		)
Corporate and other	(3,397		)		(2,926		)		(5,464		)		(10,348		)		(11,955		)
Adjusted EBITDA	$	123,553			$	105,381			$	86,822			$	323,180			$	174,541

Adjusted EBITDA margin
Production Chemical Technologies	14.6			%	13.8			%	17.4			%	14.0			%	17.2			%
Production & Automation Technologies	19.6			%	20.1			%	18.3			%	20.3			%	17.4			%
Drilling Technologies	31.0			%	22.6			%	(17.7		)	%	25.5			%	16.0			%
Reservoir Chemical Technologies	1.4			%	0.6			%	(6.7		)	%	0.2			%	(5.7		)	%
ChampionX Consolidated	15.1			%	14.1			%	13.7			%	14.3			%	14.6			%

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(in thousands)	2021			2021			2020			2021			2020
Net income (loss) attributable to ChampionX	$	56,828		$	7,250		$	(7,914	)	$	69,850		$	(751,287	)
Pre-tax adjustments:
Gain on sale of Corsicana plant	(39,876		)	—			—			(39,876		)	—
Merger integration costs	4,227			12,665			8,411			29,082			18,020
Acquisition-related adjustments⁽¹⁾	(3,512		)	(3,512		)	3,511			(10,536		)	9,342
Acquisition costs	—			—			254			530			60,905
Restructuring and other related charges	2,087			3,775			3,426			10,118			18,320
Loss on extinguishment of debt	5,402			3,305			—			8,707			—
Intellectual property defense	2,365			2,790			408			4,146			800
Latin America tax matters	(2,968		)	—			—			(2,968		)	—
Separation and supplemental benefit costs	—			1,559			383			1,559			434
Professional fees related to material weakness remediation⁽²⁾	—			—			940			—			5,728
Goodwill and long-lived asset impairment ⁽³⁾	—			—			—			—			657,251
Tax impact of adjustments	6,778			(4,322		)	(3,968		)	(160		)	(61,298		)
Adjusted net income (loss) attributable to ChampionX	31,331			23,510			5,451			70,452			(41,785		)
Tax impact of adjustments	(6,778		)	4,322			3,968			160			61,298
Net income (loss) attributable to noncontrolling interest	1,823			536			582			624			1,453
Depreciation and amortization	58,418			59,386			64,848			178,805			149,261
Provision for (benefit from) income taxes	25,910			3,563			(3,962		)	32,255			(31,922		)
Interest expense, net	12,849			14,064			15,935			40,884			36,236
Adjusted EBITDA	$	123,553		$	105,381		$	86,822		$	323,180		$	174,541

_______________________

(1) Includes revenue associated with the amortization of a liability established as part of the Merger, representing unfavorable terms under the Cross Supply Agreement. For the nine months ended September 30, 2020, in association with the Merger of legacy ChampionX, we recorded an increase to the fair value of inventory which is subsequently amortized to cost of sales over the period that the related product is sold.
(2) Includes professional fees related to the remediation of material weaknesses identified during 2019.
(3) Represents charges for goodwill and long-lived asset impairments in our Production & Automation Technologies segment.

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(in thousands)	2021			2021			2020			2021			2020
Diluted earnings (loss) per share attributable to ChampionX	$	0.27		$	0.03		$	(0.04	)	$	0.34		$	(5.73	)
Per share adjustments:
Gain on sale of Corsicana plant	(0.19		)	—			—			(0.19		)	—
Merger integration costs	0.02			0.06			0.04			0.14			0.15
Acquisition-related adjustments	(0.02		)	(0.02		)	0.02			(0.05		)	0.07
Acquisition costs	—			—			—			—			0.45
Restructuring and other related charges	0.01			0.02			0.02			0.05			0.14
Loss on extinguishment of debt	0.03			0.02			—			0.04			—
Intellectual property defense	0.01			0.01			—			0.02			0.01
Latin America tax matters	(0.01		)	—			—			(0.01		)	—
Separation and supplemental benefit costs	—			0.01			—			0.01			—
Professional fees related to material weakness remediation and impairment analysis	—			—			—			—			0.04
Goodwill and long-lived asset impairment	—			—			—			—			5.01
Tax impact of adjustments	0.03			(0.02		)	(0.01		)	(0.01		)	(0.46		)
Adjusted diluted earnings (loss) per share attributable to ChampionX	$	0.15		$	0.11		$	0.03		0.34			(0.32		)

Free Cash Flow

	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
(in thousands)	2021				2021				2020				2021				2020
Free Cash Flow
Cash provided by operating activities	$	88,662			$	60,924			$	111,399			$	239,800			$	189,432
Less: Capital expenditures	(21,347		)		(20,101		)		(12,847		)		(67,027		)		(32,169		)
Free cash flow	$	67,315			$	40,823			$	98,552			$	172,773			$	157,263

Cash From Operating Activities to Revenue Ratio
Cash provided by operating activities	$	88,662			$	60,924			$	111,399			$	239,800			$	189,432
Revenue	$	818,785			$	749,172			$	633,526			$	2,252,845			$	1,193,874

Cash from operating activities to revenue ratio	11			%	8			%	18			%	11			%	16			%

Free Cash Flow to Revenue Ratio
Free cash flow	$	67,315			$	40,823			$	98,552			$	172,773			$	157,263
Revenue	$	818,785			$	749,172			$	633,526			$	2,252,845			$	1,193,874

Free cash flow to revenue ratio	8			%	5			%	16			%	8			%	13			%

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	67,315			$	40,823			$	98,552			$	172,773			$	157,263
Adjusted EBITDA	$	123,553			$	105,381			$	86,822			$	323,180			$	174,541

Free cash flow to adjusted EBITDA ratio	54			%	39			%	114			%	53			%	90			%

Related Topics:AI Artificial Intelligence Machine learning

Up Next

Global Application Security Market Is Expected to Reach USD 20.84 Billion by 2028 : Fior Markets

Don't Miss

Goosehead Insurance, Inc. Announces Third Quarter 2021 Results

GlobeNewswire

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Artificial Intelligence

More than $9 Million Awarded to High School Scientists and Engineers at the Regeneron International Science and Engineering Fair 2024

Published

2 days ago

May 17, 2024

CISION (PR Newswire)

more-than-$9-million-awarded-to-high-school-scientists-and-engineers-at-the-regeneron-international-science-and-engineering-fair-2024

Grace Sun, 16, receives $75,000 Top Award for a new kind of organic electrochemical transistor at the world’s largest pre-college science, technology, engineering and math (STEM) competition.
TARRYTOWN, N.Y. and WASHINGTON, May 17, 2024 /PRNewswire/ — Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) and Society for Science (the Society) announced that Grace Sun, 16, of Lexington, Kentucky, won the $75,000 top award, the George D. Yancopoulos Innovator Award, named in honor of the pioneering drug researcher and Regeneron co-Founder, Board co-Chair, President and Chief Scientific Officer, in the 2024 Regeneron International Science and Engineering Fair (Regeneron ISEF), the world’s largest pre-college science and engineering competition. Other top prizes went to projects in second-order cone programming, microplastics filtration and multi-sensory therapy for dementia.

The top winners were honored during two award ceremonies: the Special Awards on May 16 and the Grand Awards Ceremony on the morning of May 17. In total, over $9 million USD was awarded to the finalists based on their projects’ creativity, innovation and depth of scientific inquiry. The competition featured nearly 2,000 young scientists representing 49 U.S. states and nearly 70 countries, regions and territories across the world.
Grace Sun, 16, of Lexington, Kentucky, won first place and received the $75,000 George D. Yancopoulos Innovator Award for her research on building a better organic electrochemical transistor that she hopes will be used to develop new electronic devices that could help detect and treat serious illnesses like diabetes, epilepsy and organ failure. To overcome the problems that have previously prevented such devices from working effectively inside the body, Grace developed a new way of chemically treating their organic components, which greatly improved their laboratory performance.
Michelle Wei, 17, of San Jose, California, received one of two Regeneron Young Scientist Awards of $50,000 for her research to improve the speed and efficiency of a type of software that is useful in many fields such as machine learning, transportation and financial systems. Michelle’s new approach involved determining a quick approximate solution to the second-order cone programming problem, then splitting the initial cone into smaller cones, which enabled her new algorithm to greatly outperform previous approaches.
Krish Pai, 17, of Del Mar, California, received the second Regeneron Young Scientist Award of $50,000 for his machine-learning research to identify microbial genetic sequences that can be modified to biodegrade plastic. His new software, called Microby, scans databases of microorganisms and determines which ones can be changed genetically to biodegrade plastics. In tests, he identified two microorganisms that can be genetically modified to degrade plastic at a cost he believes would be ten times less than traditional recycling.
“Congratulations to the Regeneron International Science and Engineering Fair 2024 winners,” said Maya Ajmera, President and CEO, Society for Science and Executive Publisher, Science News. “I’m truly inspired by the ingenuity and determination shown by these remarkable students. Coming from around the world with diverse backgrounds and academic disciplines, these students have shown that it is possible to come together in unity to tackle some of the toughest challenges facing our world today, and I could not be prouder.”
Regeneron ISEF provides a global stage for the world’s best and brightest young scientists and engineers. Through this competition, Regeneron and the Society are fostering the next generation of STEM leaders who are pioneering solutions to improve our world. Since 2020, Regeneron has provided STEM experiences to approximately 2.4 million students, on track to meet its goal of 2.5 million by 2025.
“The talent, intelligence and potential of this year’s Regeneron ISEF finalists is truly inspiring, and I congratulate each on their remarkable achievements,” said George D. Yancopoulos, M.D., Ph.D., co-Founder, Board co-Chair, President and Chief Scientific Officer of Regeneron. “Science competitions like ISEF were pivotal in shaping my own career and fueling my passion to fight back against disease. I look forward to seeing these students continue to push the boundaries of science and technology to create positive and sustainable change for all humanity.”
Other top honors from the competition include:
Justin Huang and Victoria Ou, both 17, of Woodlands, Texas, received the Gordon E. Moore Award for Positive Outcomes for Future Generations of $50,000 for their new prototype filtration system that uses ultrasonic waves to remove microscopic plastic particles from water. In lab tests, the acoustic force from the high-frequency sound waves removed between 84% and 94% of the suspended microplastic particles in a single pass. The students are now working to scale up and fine-tune their experimental system.
Ingrid Wai Hin Chan, 17, of Hong Kong, China received the Craig R. Barrett Award for Innovation of $10,000 for her research on using a multi-sensory therapy for dementia patients. Her mixed therapy app would allow patients to practice physical and cognitive skills through a personalized, immersive environment using virtual reality headsets. Ingrid conducted an eight-week study with six people living with dementia and found that the cognitive function of patients who used her prototype improved in several areas. She believes her app could serve as a viable option for dementia patients with limited access to in-person professional therapy.
Tanishka Balaji Aglave, 15, of Valrico, Florida, received the H. Robert Horvitz Prize for Fundamental Research of $10,000 for her investigation into a natural alternative treatment against citrus greening, a disease that threatens citrus farming in many parts of the world and is currently only treated with antibiotics. Tanishka injected the trunks of infected trees with an extract from the curry leaf tree, and found through tests that this potential method could effectively and sustainably manage citrus greening disease.
Maddux Alexander Springer, 18, of Honolulu, Hawaii, received the Peggy Scripps Award for Science Communication of $10,000 for his research into fibropapillomatosis (FP), a disease that is the primary cause of death in green sea turtles. Some turtles he studied in Kaneohe Bay, Hawaii, were stricken with a disease that causes internal and external tumors that inhibit their everyday lives. After analyzing the turtles’ diet of green algae, Maddux concluded that this disease, wastewater, invasive algae and the amino acid arginine all pose a grave risk to these endangered sea creatures.
Ria Kamat, 17, of Hackensack, New Jersey; Anna Oliva, 17, of Houston, TX; and Shuhan Luo, 18, of Worcester, MA, received the Dudley R. Herschbach SIYSS Award, which provides finalists an all-expense paid trip to attend the Stockholm International Youth Science Seminar during Nobel Week in Stockholm, Sweden.
Jack Shannon, 18, of Clane, Kildare, Ireland, and Nikhil Vemuri, 17, of Cary, North Carolina, received the EU Contest for Young Scientists Award. Their projects will represent Regeneron ISEF at the EU Contest for Young Scientists to be held this September in Katowice, Poland.
For more information about the top winners and access to visual assets visit: https://www.societyforscience.org/isef-2024-media-kit.
The full list of Special Award ISEF 2024 Finalists can be found at https://www.societyforscience.org/press-release/regeneron-isef-2024-special-awards-winners.
In addition to the Top Award winners, more than 450 finalists received awards and prizes for their innovative research, including “First Award” winners, who each received a $5,000 prize.
The following lists the First Award winners for each of the 22 categories, from which the Top Awards were chosen:
Animal Sciences, sponsored by Society for ScienceMaddux Alexander Springer, Honolulu, Hawaii
Behavioral and Social Sciences, sponsored by Society for ScienceAndrew Y. Liang, San Jose, California
Biochemistry, sponsored by RegeneronAmy Hong Xiao, Garden City, New York
Biomedical and Health Sciences, sponsored by RegeneronRia Kamat, Hackensack, New Jersey; Kevin Xuan Lei, Shanghai, China
Biomedical Engineering, sponsored by Alfred E. Mann CharitiesAyush Garg, Dublin, California; Divij Motwani, Palo Alto, California; Akash Ashish Pai, Portland, Oregon
Cellular and Molecular Biology, sponsored by RegeneronLara and Maya Sarah Hammoud, Beverly Hills, Michigan
Chemistry, sponsored by Society for ScienceAkilan Sankaran, Albuquerque, New Mexico; Arjun Suresh Malpani and Siddharth Daniel D’costa, Portland, Oregon
Computational Biology and Bioinformatics, sponsored by RegeneronKun-Hyung Roh, Bronx, New York
Earth and Environmental Sciences, sponsored by Google.orgNikhil Vemuri, Durham, North Carolina; Justin Yizhou Huang and Victoria Ou, The Woodlands, Texas
Embedded Systems, sponsored by HPChloe Rae and Sophie Rose Filion, Welland, Ontario, Canada
Energy: Sustainable Materials and Design, sponsored by Siemens EnergyAlia Wahban, Hamilton, Ontario, Canada
Engineering Technology: Statics and Dynamics, sponsored by Howmet Aerospace FoundationChiyo Nakatsuji, Bunkyoku, Tokyo, Japan; Kevin Shen, Olympia, Washington
Environmental Engineering, sponsored by JacobsKrish Pai, San Diego, California; Jack Shannon, Clane, Kildare, Ireland
Materials Science, sponsored by Howmet Aerospace FoundationGrace Sun, Lexington, Kentucky
Mathematics, sponsored by Akamai FoundationAnna Oliva, Houston, Texas
Microbiology, sponsored by Schattner FoundationMatthew Chang, Irvine, California
Physics and Astronomy, sponsored by Richard F. Caris Charitable Trust IIHarini Thiagarajan and Vishal Ranganath Yalla, Bothell, Washington; Shuhan Luo, Worcester, Massachusetts
Plant Sciences, sponsored by Society for SciencePauline Estrada, Fresno, California; Tanishka Balaji Aglave, Dover, Florida
Robotics and Intelligent Machines, sponsored by RegeneronMichal Lajciak, Dubnica nad Vahom, Trenciansky kraj, Slovakia; Anthony Efthimiadis, Oakville, Ontario, Canada
Systems Software, sponsored by MicrosoftMichelle Wei, San Jose, California
Technology Enhances the Arts, sponsored by Society for ScienceAnant Khandelwal, Sritan Motati and Siddhant Sood, Alexandria, Virginia
Translational Medical Science, sponsored by RegeneronZheng-Chi Lee, West Lafayette, Indiana; Ingrid Wai Hin Chan, Hong Kong, China
The full list of all award-winning ISEF 2024 finalists is available here: https://www.societyforscience.org/press-release/regeneron-isef-2024-full-awards.
View all the finalists’ research here: https://projectboard.world/isef.
About the Regeneron International Science and Engineering FairThe Regeneron International Science and Engineering Fair (Regeneron ISEF), a program of Society for Science for over 70 years, is the world’s largest global science competition for high school students. Through a global network of local, regional and national science fairs, millions of students are encouraged to explore their passion for scientific inquiry. Each spring, a group of these students is selected as finalists and offered the opportunity to compete for approximately U.S. $9 million in awards and scholarships.
In 2019, Regeneron became the title sponsor of ISEF to help reward and celebrate the best and brightest young minds globally and encourage them to pursue careers in STEM to positively impact the world. Regeneron ISEF is supported by a community of additional sponsors, including Akamai Foundation, Alfred E. Mann Charities, Aramco, Caltech, Google.org, Gordon and Betty Moore Foundation, Howmet Aerospace Foundation, HP, , Jacobs, King Abdulaziz & his Companions Foundation for Giftedness and Creativity, Microsoft, National Geographic Society, Richard F. Caris Charitable Trust II, Rise, an initiative of Schmidt Futures and the Rhodes Trust, Schattner Foundation, Siemens Energy, Annenburg Foundation, Ballmer Group, Broadcom Foundation, Cesco Linguistic Services, Conrad N. Hilton Foundation, Edison International, Insaco, Oracle Academy, The Eli and Edythe Broad Foundation, The Ralph M. Parsons Foundation and US Army ROTC. Many are entrepreneurs across a wide range of industries. Learn more at https://www.societyforscience.org/isef/.
About Society for ScienceSociety for Science is a champion for science, dedicated to promoting the understanding and appreciation of science and the vital role it plays in human advancement. Established in 1921, Society for Science is best known for its award-winning journalism through Science News and Science News Explores, its world-class science research competitions for students, including the Regeneron Science Talent Search, the Regeneron International Science and Engineering Fair and the Thermo Fisher Scientific Junior Innovators Challenge, and its outreach and equity programming that seeks to ensure that all students have an opportunity to pursue a career in STEM. A 501(c)(3) membership organization, Society for Science is committed to inform, educate and inspire. Learn more at www.societyforscience.org and follow us on Facebook, Twitter, Instagram and Snapchat (Society4Science).
About RegeneronRegeneron (NASDAQ: REGN) is a leading biotechnology company that invents, develops and commercializes life-transforming medicines for people with serious diseases. Founded and led by physician-scientists, our unique ability to repeatedly and consistently translate science into medicine has led to numerous approved treatments and product candidates in development, most of which were homegrown in our laboratories. Our medicines and pipeline are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases and rare diseases.
Regeneron believes that operating as a good corporate citizen is crucial to delivering on our mission. We approach corporate responsibility with three goals in mind: to improve the lives of people with serious diseases, to foster a culture of integrity and excellence and to build sustainable communities. Regeneron is proud to be included on the Dow Jones Sustainability World Index and the Civic 50 list of the most “community-minded” companies in the U.S. Throughout the year, Regeneron empowers and supports employees to give back through our volunteering, pro bono and matching gift programs. Our most significant philanthropic commitments are in the area of early science education, including the Regeneron Science Talent Search and the Regeneron International Science and Engineering Fair (ISEF).
For more information, please visit www.Regeneron.com or follow Regeneron on LinkedIn, Instagram, Facebook or X.
More information about the top winners and access to visual assets visit: https://www.societyforscience.org/isef-2024-media-kit.
Media ContactsJoseph Brown, [email protected]
Gayle Kansagor, Society for [email protected]
Photo – https://mma.prnewswire.com/media/2416174/Regeneron_ISEF_2024_Winners_Photo.jpg
Logo – https://mma.prnewswire.com/media/2416197/Society_for_Science_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/more-than-9-million-awarded-to-high-school-scientists-and-engineers-at-the-regeneron-international-science-and-engineering-fair-2024-302149316.html

Artificial Intelligence

J.P. Morgan Life Sciences Private Capital, Blue Horizon Advisors and United Al Saqer Announce Winner of Inaugural 2024 Life Sciences Innovation Summit

Published

2 days ago

May 17, 2024

CISION (PR Newswire)

In conjunction with Abu Dhabi Global Healthcare Week 2024
ABU DHABI, UAE, May 17, 2024 /PRNewswire/ — J.P. Morgan Life Sciences Private Capital, Blue Horizon Advisors and United Al Saqer Group announced today Rayees Rahman of Harmonic Discovery as the winner of the inaugural J.P. Morgan Asset Management: Life Sciences Innovation Summit. Harmonic Discovery is a precision pharmacology company applying its generative chemistry platform to advance next-generation kinase inhibitors.

In partnership with the Department of Health – Abu Dhabi (DoH), the Summit took place on May 14-15, 2024 at Cleveland Clinic Abu Dhabi and showcased the 11 innovative finalists, as well as highlighted existing innovators and opportunities in the Emirate of Abu Dhabi. The event also featured keynote speeches from Dr. Laurie Glimcher of Dana-Farber Cancer Institute, Dr. Shahrukh Hashmi of the Department of Health – Abu Dhabi, and Dr. David Ho of Columbia University Medical Center and provided attendees networking opportunities to gain valuable insights into the future of life sciences innovation.
In addition, the jury designated Chun-Hao Huang of Algen Biotechnologies as honourable mention. Algen Biotechnologies is a platform therapeutics and drug discovery company using world-leading CRISPR and AI to find treatments for cancer, inflammation and metabolic diseases.
The winners were selected by an esteemed, international panel of judges, which included:Laurie Glimcher, MD, President and CEO at Dana-Farber Cancer InstituteJorge Guzman, MD, CEO at Cleveland Clinic Abu DhabiProf. Shahrukh Khurshid Hashmi, MD, Director of Research, Department of Health, Abu DhabiYasmine Hayek Kobeissi, PhD, CQF, BSc., Executive Director at Blue Horizon AdvisorsAnya Schiess, Managing Partner at J.P. Morgan Life Sciences Private CapitalWalid Zaher, PhD, Co-Founder and CEO, Carexso
Dr. Asma Al Mannaei, Executive Director of the Research and Innovation Centre at the Department of Health – Abu Dhabi said: “Under the directives of the UAE’s wise leadership, and renowned for its world-leading medical infrastructure, Abu Dhabi stands at the forefront of healthcare excellence, offering an unparalleled opportunity for advancement in healthcare for global partners. It was our utmost pleasure hosting the J.P. Morgan Asset Management Life Sciences Innovation Summit 2024 on the sidelines of Abu Dhabi Global Healthcare Week and we commend the winners for their pioneering efforts in driving impactful advancements in healthcare; their dedication to innovation not only transforms the landscape of medicine, but also holds the promise of improving lives worldwide.”
Stephen Squinto, PhD, Chief Investment Officer, J.P. Morgan Life Sciences Private Capital said: “We are thrilled with the level of biotech passion and innovation that we observed at this year’s Summit in Abu Dhabi. The energy was truly palpable we are thrilled to announce Rayees Rahman as the winner of our first Life Sciences Innovation Summit. Harmonic Discovery’s approach embodies the next generation of drug discovery and development. We appreciate the time and effort of all participants and cannot wait for our next event in the region.”
Nabil Kobeissi, Chief Executive Officer of Blue Horizon Advisors, said: “As the main sponsor, we are committed to nurturing and fostering the growth of all 11 finalists in this vibrant biotech ecosystem. This Summit marks the beginning of a transformative journey, and we are confident that it will pave the way for a flourishing hub in the region. We are also pleased to announce that we will commit to invest in and partner with the winner, Harmonic Discovery, to support its future growth in the region.”
Sponsors for the event included J.P. Morgan Life Sciences Private Capital, J.P. Morgan Commercial Bank, Blue Horizon Advisors, United Al Saqer Group, Thermo Fisher Scientific, and Salam Capital. The Summit organisation, logistics and finalist recruitment were facilitated by Lyfebulb.
Of importance, at the Summit, Mr. Mohamed Al Breiki, Executive Director of Sustainable Development at Masdar City, announced that Masdar City Free Zone would award all 11 Finalists complimentary business licenses to further support their establishment in the region. Masdar City is one of the world’s most sustainable urban developments and innovation hubs with a growing focus on life science entrepreneurship in Abu Dhabi.

View original content:https://www.prnewswire.co.uk/news-releases/jp-morgan-life-sciences-private-capital-blue-horizon-advisors-and-united-al-saqer-announce-winner-of-inaugural-2024-life-sciences-innovation-summit-302149186.html

Artificial Intelligence

Congregating in the Lion City for a Win-Win Future of Intelligent Computing at the Global Data Center Facility Summit 2024

Published

2 days ago

May 17, 2024

CISION (PR Newswire)

congregating-in-the-lion-city-for-a-win-win-future-of-intelligent-computing-at-the-global-data-center-facility-summit-2024

SINGAPORE, May 17, 2024 /PRNewswire/ — On May 17, 2024, the Global Data Center Facility Summit 2024 was held in Singapore with the theme of “Power the Digital Era Forward.” At the summit, over 600 data center industry leaders, technical experts, and ecosystem partners gathered to discuss new trends and opportunities of the global data center industry in the intelligent computing era. The attendees also got to experience all-scenario, all-ecosystem, and all-service end-to-end (E2E) solutions, share innovative practices of green data centers in the Asia Pacific and Europe, and experience the exhibition vehicle to unveil the mystery of Outdoor PowerPOD that features one power system per container. By fully embracing the intelligent computing era, Huawei strives to power the digital era forward.

Seizing Opportunities Brought by AI and Jointly Building Green & Reliable Computing Infrastructure
At the opening speech, Charles Yang, Senior Vice President of Huawei and President of Marketing, Sales and Services, Huawei Digital Power, noted that since ChatGPT ushered in the AI era, large models keep pushing the limits of computing power and the intelligent computing industry is witnessing an unprecedented construction boom. As predicted, 100 GW will be added to the global data center installed capacity and the market value will exceed US$600 billion in the next five years.
According to Charles, with opportunities come challenges. The primary challenge concerning the data center industry is reliability and electricity. Data centers are scaling up from the MW-level to the GW-level. E2E reliability of data centers is becoming even more important than ever. In response to the opportunities, Huawei will work with customers and partners to expand the industry space.
Steering Data Centers to the AI Era with Product + Service + Ecosystem
During the summit, Sun Xiaofeng, President of Huawei Data Center Facility & Critical Power Business, delivered a speech titled “Power the Digital Era Forward. ” He stated that as AI large models are penetrating, the surging compute demands drive the expansive growth in data center.
To address the challenges, Huawei strives to build product + service + ecosystem E2E data center solutions that feature fast deployment, flexible cooling, green energy, and ultimate reliability.
Fast deployment: Data centers are fully modularized and prefabricated to ensure high quality and efficient construction.Flexible cooling: Air-liquid fusion and integrated cooling source emerges as the optimal cooling architecture for intelligent computing.Green energy: New generation-grid-load-storage integrated solution is built to ensure the sound operations of intelligent computing centers.Ultimate reliability: Data centers are safeguarded through reliable products and preventive protection.Currently, Huawei’s global service network covers more than 170 countries with over 1800 professional engineers, providing 24/7 technical support. With N+ flagship service centers, Huawei has built a one-hour service radius for its customers.
The ecosystem is a key part for a win-win future of intelligent computing. Huawei works with partners to develop comprehensive E2E solutions and provide customers with one-stop data center services.
During the summit, Huawei and the ASEAN Centre for Energy released a white paper on “Building Next Generation Data Center Facility in ASEAN.” The document provides insights into the status quo, challenges, and trends of data centers in the ASEAN region, and emphasizes that efficient and energy-saving products and solutions should be applied. It also proposes future-oriented policy recommendations for data center markets.
In the ecosystem exhibition area, Huawei showcased scenario-based solutions for large-, medium-, and small-sized data centers, and demonstrated data center consulting, design, integrated development, and delivery capabilities with dozens of ecosystem partners including CIMC, Weichai, CSCEC, and Huashi.
On a special note, the Huawei Outdoor PowerPOD exhibition vehicle made its global debut. The Huawei Outdoor PowerPOD features one power system per container, outdoor deployment, plug-and-play, and high protection rating and reliability. It has become the preferred choice for decoupling the power supply architecture.
A single tree cannot make a forest.
AI is presenting great opportunities. By delving into the industry, aggregating partner ecosystems, and making innovations applicable to transformations, Huawei will continue to help customers build reliable computing infrastructure, accelerating the industry to embrace AI and powering the digital era forward.
Photo – https://mma.prnewswire.com/media/2415818/Global_Data_Center_Facility_Summit_2024.jpg

View original content:https://www.prnewswire.co.uk/news-releases/congregating-in-the-lion-city-for-a-win-win-future-of-intelligent-computing-at-the-global-data-center-facility-summit-2024-302148973.html