MIR - Earnings call 4 2023 | Mirion Technologies, Inc.

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Operator

Greetings, and welcome to Mirion Technologies Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alex Gaddy, Senior Vice President, Strategy and Investor Relations.

Thank you. Mr. begin. may you Gaddy,

Alex Gaddy

and to on and most Year SEC made for with reminder fourth XXXX this the generally will also during related SEC. Quarterly forward-looking made everyone, the that from actual that today's quarterly differ can Quarter and reports within include to certain projected filings those that Mirion's and the at of financial Form during quarter Reconciliation in statements, XX-Q include will could Full discussion not Earnings accompanying can with statements. The XX, differ presentation to Factors the Mirion's results December non-GAAP GAAP discussed All thank accordance measures morning, earnings may joining XX-K materially you forward-looking factors Fourth comments cause actual Good and Call. prepared in that are website the in Form on are comments file time the from this other ended measures caption were be appendix the comparable accepted in Risk materials call found time references measures of we The principles. to Mirion's financial under this results our with annual report in accounting on call XXXX. found today. IR directly financial ir.mirion.com. the those presentation A be

Executive Logan, on and me Joining Chief Schopfer, Officer; Chief call Tom are Officer. today Brian Financial the

to it Now Tom? I will our CEO, over Logan. Tom turn

Thomas Logan

we've for delivered great a as to business. put today, continued kick build great made for for of Thank the thank to morning, and in dialing progress a today, off first, support helping good the congratulate record like year Mirion. your for Mirion a Alex, and of XXXX. you, all I'd while team, to and I'm proud my continuing To everyone. company, my colleagues We together commentary a Thank and you

and to full few the things quarter the at year, I'd are like with. start fourth Looking there

quarter out First, consecutive growth XXXX growth we of XX%. closed with quarter fourth XXXX. is of expansion, XX% sixth year-end backlog This of backlog reflecting generated organic order by to compared record our

Our vertical heading line markets top XXXX. by coverage into encouraged and our healthy, are I'm

revenue million, just X% led in a QX, EBITDA for under result Second, of the Adjusted organic total quarter million The way segment we contributing company growth full XX%. a of delivered with was million. $XXX to year of year. growth organic yielding in record $XXX Medical the $XX a the record revenue

resulting adjusted the [ cash generated XXXX. performance I'm this of ] of beating finishing in confidence expectations. proud leverage EBITDA, laid momentum in And we $XX early this we area fourth targets flow in leverage, and free the XXXX. million out against execution our at in the extremely cash team's Third, quarter, sustained in bolsters year the net X.Xx in

have we financial guidance for XXXX. initiated Finally,

the of For expecting organic and to growth cash $XX million are $XXX adjusted to million $XX X%, free adjusted $XXX to of revenue EBITDA of X% full flow million million. year, we

XXXX improvements address market U.S. remain generated in orders and U.S., positive the by care with conditions segment, sales encouraged greater 'XX radiation Beginning post-pandemic of of to in much performance, and we've the detail. we saw sales our X. the to we Medical the reported financial in some region. market trends our bolstering reps the 'XX, business, Panel end on triggered specifically negative In support reversing have in health like nominal in pressures system. conditions, therapy capabilities by momentum our overall the and some widespread European our Moving I'd market the by through

we new commercialize the supported into hardware key new in dosimetry, radiation this the business expect we positioned demand generation and well next and Instadose strong a focus areas and of therapy. Within heading the portfolios as digital remain of year. growth, services occupational Our product year. XXXX remain remains technology for Core well

Lastly, will Early nuclear the from are recent to a trends in engine is the segment be integration that medicine acquisition us. results on for growth the strong ecX belief market encouraging pace. support continue our and proceeding this

early ecX Mirion's medicine view from that into for outcomes confirms higher is physicians and This ecX adjacent ability applications image, supporting our diagnose medical treat growing revenue the value cancer, for enhancing digitizing Our nuclear cancer and demand of in within theranostic the experience chain. yielding to to accurately and will the more the expansion nuclear niches costs. to medicine commitment accelerates reduce patient care. meet improve portfolio meaningfully improved treatment position stemming revolution levels the recurring

inclusive medical exposure, medical total As total sold our of constitutes now and note, a XX% channels, revenue technologies into of EBITDA. company of products being final company XX%

in driver strong power. QX. remains Moving forward. nuclear and base orders The with installed by point on going extremely Technologies to supported a the order growth important and focal and of XXXX sustained the large beginning segment defensible growth reported Mirion robust, we an for was

of by exemplified Climate the goal, Notwithstanding expect as green by the energy this them COPXX we the underscores to globe source, best and extraordinary We magnitude made to are UN to nuclear Conference governments across declare momentum strongly Popular seeing power. the year continues utility-scaled perhaps nuclear support. global Change This the at advantage XXXX. something this to commitment by a capacity of operating we overall of is across opportunities commitment triple positive the the pipeline commitment new and globe. net nuclear accelerated political and improve, believe are seen the build we've growing take and power encouraged support the

the we in labs More retention creating our constructive. value-added this DOE within XX% to markets, national and is lab are end funding system, for dynamics are than us an to of research dynamics by more business anticipate on Workforce the support. Moving driven segment continued the opportunity tight services. sell where

defense, new by we pipeline supported of projects see military a orders defense the XXXX. in big nontraditional XXXX. science defense capital crossover Asia, the and growth momentum an equipment. is in in booking million opportunity markets favorable in strong approximately And and seeing addition, global are Europe in in increased We In for in $XX radiopharmaceutical

Before I XXXX. areas Brian, for over pass like few I'd there are to a highlight focus of to mic the that

release we XX First, in digital space, to this XXXX. an reflects to introductions flavor. launches of more new innovation commitment the product with the we new our product a expect leader increase our be increasingly than represents This substantial and That saw in enhancements XX year.

down, year Second, enhanced margin cash expansion as a on free and conversion. of solid we performance, exit pedal the we're focusing keeping financial flow

in to is margins EBITDA for in confident within XXXX. We're enterprise. goal XX% planning for said the forward As meaningful our X-year ability upon our a adjusted step horizon deliver the we've take expect in goal past, and our that increasingly to

Finally, robust, pipeline XXXX. end XXXX we committed start selective and continue the at year on opportunities coupled smart forward, M&A, are leverage capital was will active big to X.Xx basis. to in we is from continue of evaluate to a while M&A. reducing The the a of efficiency, to with be we M&A opportunistic highly the X.Xx where step at

the Financial Officer, pass now Chief call Schopfer. our to Brian? Brian I'll over that, With

Brian Schopfer

X a In everyone. Slide fourth full my Thanks, good and at our to look and deeper your morning, comments year quarter please for Tom, focus turn started, results.

quarter compared revenue XX% EBITDA last Adjusted fourth and was Fourth by to growth adjusted the million were noting was X.X%, X.X% quarter grew we million, EBITDA by points. adjusted that $XX was For It organic quarter up for same period was the worth XX growth year. a comping company the fourth organic $XXX.X and EBITDA revenue QX X.X%. total margins quarter, basis from XXXX. expanded and is

For total EBITDA delivered XX.X%. growth grew million was company was X.X%. We XXXX, X.X%. up $XXX.X with for of of revenue the million, margins revenue and $XXX.X EBITDA full was XX.X%, adjusted adjusted year, and organic XXXX

Biodex impact about As we've basis impacted net the SIS all talked margins acquiring points. approximately of XX divesting by year, and

XX% divestiture the leverage, in from fourth XX.X%. in to European center. the service business to back a acquisition our and through offset continued Performance closed excellent take operating growth along divestiture. supported on ecX QX basis This a international both the over positive ecX expanding X.X%, the strong in by segment from the of organic look Medical business with revenue The Medical that at Moving the was from and comping across sales acquisition, growth Slide led November. benefits XXXX. Medical impact was the and execution grew by on product X.X% was with of quarter RTQA sales the which X.X% mix organic was in quarter, by QX with segment Biodex of performance, Beginning slightly Biodex addition strong margins. XXX momentum margin revenue starting and This performance inorganic results, net fourth EBITDA X. to closer accretive adjusted points solid to segment were

the exiting be benefit a quarter As the will reminder, last of XXXX a Biodex business. QX rehabilitation from

revenue organic year, being X.X%, divestiture. up partially the full Biodex by the was Medical with For growth X.X%, offset of

support delivering Biodex to basis this strongest XXX to XX.X%. segment in the board, Phantom's The points into and across over X-year Medical, RTQA executed XX% team forward tailwind full approximately year. were for a and Our the we XXX for EBITDA carrying margins, in year. adjusted well organic This positive expanded in Medical brings to certainly of The momentum look was XXXX. divestiture the stacked the performers margins Medical growth businesses our the basis the XX%. points

Now the segment Technologies to along moving X. Slide on

Technologies For quarter, of organic for by with the X% grew quarter. fourth the revenue X.X%, growth

experienced in way. had a mainly adjusted Korea, points team detail by fourth will shortly including strong quarter contracted an by we've challenges basis the actions place. business to headwinds get international product XX into operational result margin put a versus of in business, is mix here fourth on fourth our broader last the quarter, driven approximately France a more XX% Asia, and This year quarter French where was Our Margin corrective organic degradation and which outstanding the XX.X%. growth. Technologies number year the in last challenges. EBITDA the again delivered I led after

was the XX.X%, top revenue across the X.X%. line Organic growth XX.X%. segment. year, inorganic strength grew by by For broad-based Technologies with adding growth contributed full Growth supported

we to noted, robust Tom Technology order end As our markets. see within continue activities

adjusted by EBITDA margins acquisition Our by points XXX adjusted points. XX.X%. SIS negatively margin EBITDA contracted full year impacted in The XXX to Technologies basis approximately basis

have with targeted deliver the improvements. the in focus going execution working of a area XXXX, Technologies areas acquisition. our of have for SIS been we As of and place being largest how operational actions to taken the us, team region into page in Europe, the improve the right and diving people advancing I believe turn opportunity the and is and we in French XXXX. with business to deeply expansion corrective significantly and the we already Tom margin integration central in We've plans in to are

recognize more and I is the see expect team half However, will to year. with ensure to Tom and execution I do time, time monitor that improvement journey but be this the the a I in first take of progress. spending will

Now the flow accelerated flow a heading adjusted positive year. free approximately of will let's full Fourth improve into leverage. we and flow page an to contribution Slide and for inventory, turn step $XX for be full was journey, in the cash generated inventory efficiency, brining another $XX.X XXXX. Net year Net specifically for $XX.X This great X cash capital adjusted the supports to million, of area us working cash of as free working flow result continue momentum quarter capital in to is payables to focus and collections. and management aim cash quarter in cash million. million to management, resulted our the

December leverage Looking beating target down for the net our and at XX, our we X.Xx our well year. our commitment, of progression ratio as to leverage executed brought against

and allocation a expansion As of approach margin we by net end midpoint conversion leverage guidance, of result to to continue cash driving of at Tom flow will XXXX. Absent in mentioned, in M&A, the X.Xx ending and and would capital XXXX. approximately prioritize take the very measured

aligned As vision. evaluation with strategy criteria a usual, process highly and our M&A strategy to reflect selective clear and our investment filtering will

for guidance Finally, XXXX. to let's at X Slide to look financial turn over our

to an projecting with point is X anticipating to impact line provide growth for growth year I supported segments. organic growth. both X%, FX from organic phasing more of organic quarterly growth the Revenue inorganic balanced growth from am are by in We X% the X% standpoint. to to expected mid-single top be ecX acquisition projected minimal have to expected a X%, of

It is be EBITDA a worth guidance to is targeted margin drivers XXXX higher are XX% million, Price also investment anticipated positive to Our range adjusted $XXX margins expansion. our for an and indirect volumes EBITDA tax initiatives, $XXX XX%. all cost improve between heavier on million rate. and for and product effective material includes inclusive adjusted noting between mix that focus and with spend, of our increased

continued XXXX. investments provide benefit and expect We investment also will these XXXX, with progress some in expected in

will Adjusted EPS coming is progress and We and the in expectations. more adjusted and cash update between in while XXXX's as free color made, timing $X.XX quarters the on $X.XX, flow million provide to likely flow we is you have impact of half. cadence, a to with second the project From cash more will range $XX mirror million. we in contribution perspective, XXXX expected $XX

flow U.S. rate XXX XXXX, half are considerations A million cash Class XX% between of include positive effective modeling we outstanding, unlike to for first made IT around cash in had the However, and really a XX%, and certainly expense exchange the mainly million, to approximately expecting in solid euro ERP, be an non-ops the year we tax a shares XXXX year. Other dollar a finish closing, quarter. $X.XX. In and up fourth of in of approximately strong XXXX initiatives of rate $X

we on 'XX, will capital. For leveraging positive continuing stewards expansion, cash be flow momentum and good conversion highly be of delivering to margin in focused

pass things back his for closing remarks. With that, Tom I'll to

Thomas Logan

thanks. Brian,

we your Before a worth are the of as couple themes key questions, floor we about open for XXXX. repeating up think

our First, backlog. a and growth by visible, robust markets order is growth, line record supported healthy top

team services the flow margin top and our priorities, Second, conversion, expansion, improving aligned diverse of focused portfolio and accelerating efforts products, our on software. which digitization strategic driving enhancing and include is cash

of today. good and a year, XXXX in confidence corner enterprise. momentum on building we was initiated have that we every are XXXX guidance the our in Finally,

I'll it Q&A. open for Gaddy Alex now to to pass over things up

Alex Gaddy

ahead Q&A session. Thank start formal go you, Tom. and this comments That concludes Operator, please our the morning. let's

Operator

[Operator question comes Management. Goldman first Instructions] Asset Joe line Sachs the with The from of Ritchie

Joseph Ritchie

increasing to thoughts on fourfold introductions. Nice revenue better start the product year. how in That's Tom, you that going year. about your think ultimately, to the forward? new I'd products for associated end interesting, that I'd think love into how like growth company coming the with new those to I payback on really hear and, translates the

Thomas Logan

to in business. various great are The ultimately component overall. relates that as is turn, process the on marketplace some question, we that in we're relative effectively foundational allocation to the Great cadence that That, is we speaking, screening pride drives of the business what point believe into we we've corners a Joe. made in capital that against. of do segments putting Sure. market what leader commitment R&D view follow is of The ourselves being that on the to historically we our be dives a that frequency is comment interest allocated starting where -- to R&D space. with product And In innovation broader specifically our And offerings. engineering, us. we on that the that process, a spend offerings our it than aggregate, the that and deep annually follows results of is people really out product ultimately, innovation system more new money measure broadly the of compete we new is

more toward predictable, in capital expectation, that look you versus we a is us being composition driving business. we're conversion is what in nature or component that's a speaking, hope that the introduced, the flavor the the midst visible Our of course, is degree equipment there gradual, see our change of revenue a generally our of a revenue at result when sales but of of higher concurrent for And within overall. digital systematic one-off higher recurring focus

factors us clear, outgrow the to the is decades one be overall. our major last is innovation over allowed X But historically, that impact has markets. the of biggest that So to

Joseph Ritchie

super is, the throughout? than more the it. to spread maybe in And that's like or concentrated it segment follow-up helpful. Got That's medical is technology that the or well pretty

Thomas Logan

No. over of the us the key across just articulate It priorities kind And years. actually is of operating again, symmetrical heard remarkably reflective groups. you've that the

Joseph Ritchie

maybe what's that of able you about lot France within in and And SIS? margins a Makes back. you guys Okay. Can the elaborate you get sense. to reference feel confident happening on being

basis your margins that impacted entire by about mentioned for it the You year. XXX points

-- just with associated any color dealing opportunity the with? expansion currently technologies, that within you're So margin around like issues particularly the

Thomas Logan

see Sure. but it's I we Yes, too combination to market, don't has of think, predictability factors. gone as deeply that struggles, business. is the But will capabilities and Joe, some dominant I has I in customer that attendant on think EDF, a a particular, improving, that in down do impact through go hole, the year in want understand say is there's mix ahead. just in that we in and that some what country, of our One French there see it and of bit the we of had that measurably execution improving,

series have a have of In we our any that are kind ahead. in action events we been nonrecurring addition, don't as of there one-off corrective to that nature move pathway bearing on expect

been But I most articulated and this Brian think directly well, region. very we've and the point, the in involved actively important maybe

very We have of XXXX. our changes. and a on back believe We supporting have the get objectives to this going near-term the right organizational thing in approach that right to we that very, the number do made confident we're rails, and some changes, process people

Brian Schopfer

was needed having it. of that on little we this it business, right? bought months upper we bit we that SIS, margin contraction to our because things, fixer when X think a planned, knew a we couple of And a comped end I One, was do. right, on without

in 'XX made I side. progress a business. a bit on that continue And little expansion be that the see tailwind margin us in year we've think all quarter-on-quarter think to you'll I of for tremendous

Joseph Ritchie

things. I you a year orders. guys, I'm And growth, another more Last organically. question booked. X just quarter. saw over right? that robust One in some ultimately, growth Because to quarter, what to in have big curious, orders orders, growth, #X, into gave your growth ultimately on how does but just It the pass order over for great you ask before fourth this it you us for guys put revenue around mid-single-digit that then I good quarter? color XX% year about more expectation color somebody business you else. in around the up XX% Great. X really was translate you

some you're of that around cycle So color orders the just either any nature longer the of booking?

Brian Schopfer

A Sure. $XX nuclear off, the million in about Korea. book we order, right? things, Asia, in couple quarter of did larger power another First the mainly

there's So that.

I business. thing at think I X/X at specifically our if orders here candidly, onetime look orders bit event. this we'll that momentum about a just X/X think power 'XX see numbers. this think round right, about about little X/X of to in isn't of to trade this is was and them trade nuclear those But in nuclear a, beyond. think a very traded the are think that, we've power, is good year. don't year We -- we you good a commented them continue those completely this 'XX, of And kind about and in of year, And 'XX

the of couple longer-term just quarters. beyond think to next revenue it -- continues of it secure point And the kind is, of visibility nature. But I the our in cycle longer is just out

Operator

Next question the line CJS Securities. with Chris comes from Moore of

Christopher Moore

on prepared of Maybe follow Tom's I'll comments. just one up

the at Climate commitments Conference. the about talked you So COPXX

achieve mean this would is, output? question Mirion it nuclear take net in for what does the tripling the longer over term? And what guess to I So power

Thomas Logan

Yes.

firstly, to would Change Climate take, relates coming out mean, what I of Conference. really this intent extraordinary of So statement an is it as it it

should think this really has coming because, extent feel of official great clear the that overall. a have. constituency traditionally, statement out to nuclear it's such power to we see this And I group policy it's notable overall not they Firstly, embraced

Today, in tripling capacity of gigawatts extraordinary. But power. in called XXX it you magnitude we'll phase the if takes of the power. roughly nuclear A XXXX, terms terawatts of between nuclear decommissioning the And be what's of for accelerating. capacity X.X to total or the of if look total do it's math, that of -- just level that's a that being you truly firstly, a total is you're so installed at profile globally, up of to mental

So half installed capacity, of gigawatts is close to notwithstanding decommissioning in that for extensions. the of existing scheduled XXXX, between and probably life now of XXX

and number utility do power, if would of it XXXX, that enormous. more between through annual But projects nuclear it commencement nuclear the purely the reactors. easily, the purely of aggregate or it in the rate or that what likely a effectively, essentially already in power to just end through about now recognizing solution more imply So balance nuclear and a if take modular scale small is the happen to is rate decade, in would And came year, came answer scale of the essentially combination utility-scale that for not through XX world that and of per pipeline. build-out beginning new everything will the utility

And that so be quadrupling would over cadence the acceleration the of activity extraordinary, in the sustained of a essentially period time. nuclear of that's a we've and markets seen

the were this for obviously, positive might all implications approximation major or front-end the what is coming we happen us with new of out that installed in significant. if revenue And power, fact the us the it's enjoy given only world. nuclear an source even activity largest broadly participate nuclear we the that very the we for of fact leverage, if -- of sponsors notwithstanding build happen, front-end The base kicker the are that to is from the

I stay power just support reflective and how likely and simply is in robust overall, today and is think popular to statement, power. have again, very how the So positive nuclear -- political of that's for

Christopher Moore

with staying Maybe but interesting. very switching nuclear, to medicine. over Well,

in momentum to going space developments So talk what forward? Mirion you talked means Can about care. cancer maybe you that the theranostic within

Thomas Logan

hyper theranostic medicine and a market area nuclear specifically on, clip. market that general Chris. Yes. grow we're an The is will so-called that the overall, view tremendous focused It's the at

increase week a done. in had in discussion a a announced the recent GE think And acquisition a this so about they was about overall opportunity. I ago X.Xx specific expected or that market they

acquisition the again, certainly market our efficacy remarkable dynamics Our we that we're this market, believe on seeing firstly, given been very the capabilities clinical of and fastest-growing the driver business, most with building the was ecX. to acquisition through equipment applications -- that that now recently a of procedural associated dynamics view ecX where with the Capintec, and this from that Biodex, And perhaps almost this we inarguably biggest following volumetric that, cost be that, segment the an play in beginning rather of biggest benefit overall. We've demand the in than the the theranostic and of in we're market, out pivot business the focused entirely is capital just acquisition is will new clinic growth growth.

to richly with again, ecX, by more the to it by this effectively our secondly, supported market, the and gives of kind firstly, software but of capital go-to-market ability opportunity, of buying of us again, equipment the to it more business than opportunity change strategy our nature towards the with growth gives a and largest really the drive gives rather it benefit converse. procedures, capital domestically business the medicine And player the us volumetric equipment software us the workflow acquisition from, nuclear

And our boat so rather on kind on tide and broad-based growth. growth of be that again of that, towards continue than shift to we the volumetric clinic floating focused

Christopher Moore

-- cash is that from about XX% what just roughly Longer flow on Got looking it. target, helpful. free one at? guidance. That's $XX so you term, XX% Maybe million. looks last guys conversion you're are Midpoint me Very EBITDA.

Brian Schopfer

to. is I we need definitely get to that where mean, look,

down to net of kind and grows, capital, our continue we well, to time rate et goes working we on -- As work over cetera. percentage continue EBITDA a as interest hard as

to think we to. need XX% So where is yes, I get

peer the XX% midpoint. the comment And in made with other very into We only year like I things to -- do working the the mean, line I it taxes. go candidly, at is in my in next prepared And of more how this think cash of and some I tax remarks. XX%, bring then 'XX, think set. number -- 'XX 'XX pleased we're conversion our part the on we year. the one kind XX% comments will we're I

pieces So there's obviously, we're legislation a here us. to would moving We're be lot the on that Congress watching thing at. same then that in the tax, tax. on well, of And helpful as looking the that,

capital leveraging I side, working of improvement 'XX, projects We we side continuing off work on guess, for both one; and moving two, a the lot on lot and So our like as kicking on we're pieces. the scale a in summary, of conversion well. got tax net

look, number. not So that I see that to can get increasingly It's But like out, look us XX% 'XX. get guiding can we're in you there. confident think we'll you you -- that increasingly as I obviously, get

Operator

Next question Citi comes Vlad from the line Group. of Bystricky with

Vladimir Bystricky

maybe just focus question Chris' up there big has cash to we on Obviously, off, a So following know for start Mirion. been cash. on

about to improving can about source So how 'XX? for you talk as And visibility of working support to of 'XX changed just thinking cash level a you're then little your what's cash flow? over the a course capital of

Brian Schopfer

think coming I is changed improved. think what's macro Look, I off, out of the 'XX is, first

XQ back in heavy of or focus I about heard it was this are but I on talk, call, us so the putting on end the in in think think the you XQ as May, XQ, it we 'XX. was

changed. amount of on coming and in So The Group of a discipline, and specifically right? focus the sales our big of We in sure, fundamentally, across kind this, for resources company. our talked the we've planning just dedicated areas. And helping has Performance processes to many about Excellence our

that look, I I've this making something about takes and on isn't quarters. overnight. really doubling all along. said This mean, changes sure that down operational it's improvements quarters So It happens. But and many

capital we in focused on said it. us We're it. this We've We're I like 'XX. think of very continue cash focused journey very, on source a see as year. you'll this net very working

standpoint. resource So from a continue to priority a us. going down but that's both is we're a to something commitment double standpoint, from this And on big also

Vladimir Bystricky

color, maybe it's and see And just a up tougher then picked nice That's Medical. the sequentially. results. to helpful to comp shifting growth on actually Organic

anything shipments was Medical what or can one more timing bit a the unusual little quarter, in talk the you accelerated So about XQ? there in whether in in on just -- and

Brian Schopfer

volumes it I a I -- August, Europe half back is back heavier you mean, us in the year, September. of was and But look, us. early -- team all fourth the had delivered think, into year, have think of market, for even go look, products candidly, for in specifically, to quarter a too. 'XX, come if some new they I with kind the just the in late had We that

us with heavier abnormal than mean again, product execution way, just So but this I I new it's us. high I one so in a board, take good year. the the -- across maybe Medical, think year like X%, specific for single-digit the that a year mid-single of quarter a bit was number this the usual, -- in before. moment. -- a fourth we I mean And of was strong kind think great quarter growth, it digits was we phasing comping I'll isn't this really there to honestly. By XX% on organic that for why Medical, being was continue that's kind but

we the want I think year. to and we'll continue of we make -- kind go what So looks we expectations, to set sure rate growth we're like Medical as just the evaluate this right

Vladimir Bystricky

missed about versus helpful. then your 'XX? I year? That's the expectations And me, how price in can about you if it, one one out And it. playing and you're cost for sorry pricing last but just for Got for thinking talk

Brian Schopfer

Yes.

on our out doubling we're from thing So sure candidly pricing the signaling in through importantly, like rate I'll making of dollar lot put to a that's But the been of business. with think year. spent our equation expectations organization. positive. we've and cost, the very put specific I But the price base. on been the about not kicked didn't and the the Look, price do down to on in this of a And Tom But that's we right? bunch think double across rate of I been fact on time -- And is; and in mainly ingrained number are a, 'XX. haven't last more the say here rate over away customer focused able pricing months. off kind think how we've I our work down a So becoming, around get all into more cost, cost has on this. a that become we've we now we 'XX, focus we're spend. side cost-conscious the positive, working with inflation think company in, broader the I And cost is we've been just get team team I with always streams I'd indirect XX material

year, that's why that's right? And on kind I turns of in the back the probably we're through flows inventory One, well. of half as focused more so think

bit turn So faster little the time that out stuff? a of into this business. inventory the how to we this stuff takes do of of to get of But grained two, benefit some getting kind

everything do we'll more. number, cost. Vlad. a so the say, about can't feel being But miss and company, to you summary, So -- this doubling into good continue think give anything, in think didn't I culturally it can down we again, just and we're price, year we I on But and would I there grained

Operator

of with the B. Yuan Securities. Riley Next comes Zhi question from line

Yuan Zhi

quarter good and a I the XXXX if guidance. on I Congrats X, have may.

facing see therapy of the part assurance the Medical the we headwinds the side. the schedule maybe on quality radiation some impact the of some versus talk volume physician in new about As the industry? Medicare decreases, fee do touched increase. clinic You business? First, health any on are care Can you to you

Thomas Logan

Yes.

pleasure welcome. you have It's on Yuan, today. Firstly, a to call the

couple region about Medical in last overall that look or growth the we in that in fact the RTQA clinics the developing the of have, today, terms equipment Western specific market large the we typically that half is about in the there driven really developed business, demand this service our kind about -- much it world. that fact are RTQA, when factor think we of overall back capabilities external and markets. and global #X to and which total relates bridging today, in can been called market. of is as this in we assurance be therapy CMS reimbursement that of our important at general. we therapy narrowing when therapy drivers coming of our -- support And standards That solutions in it form step and we've question beam about demand activities world provide revenue. Medicare broad-based over the for in an is market, growth main that the context, headwinds region. But the But of has out apply have years accelerators, that is all commercial the of global the or factors. linear measure, it to we gap relates overweighting medical in and X is in is in half capital enhanced were promotion RTQA What really by but radiation radiation should if have that radiation throughout about or broader your has of As quality it of from extended to therapy and gap the forms to the seen only

international into in era, that in a that little we're margin of the And conditions softer part part this inversion a is providers of domestic it been the has that in in of health the care sector have compression may U.S. rates. seeing so on reimbursement or bit disproportionate CMS offset because post-pandemic factor but growth factor part certainly that the

factor aging developed major simply in overall growth West. second is The an market in demographic the population

population of GXX to get are get are in certainly, people will, demographics And much older, the they likely overall. there if cancer. aging As footprint, you more

reduction about view, the is is so, oncology experience has been and that though or radiation RadOnc, And in the community to in X% reimbursements CMS our specific it it even this net year. general, our

back on market, about the say in the to other considered feel U.S. incidence but that to health that our reversion of continue grow care offsets is this is demographic, which we've part is guidance, ability our to view by particular, American Our further in the to in that the population cancer the aging operating supported rate and factors, margins positive of constructive that market. we all providers,

Yuan Zhi

for Got you the the prior on side, thorough question. response have it. Thank in you radiopharma talked Then the there. some so much

So segment anticipate In a ] clinical trend will based XXXX? that be and in is think of do there the of similar Do should have in observed other Pluvicto special we product XXXX, successful pipeline this higher trials. on factors looking or what that you that you in of words, we [ anything expansion what lower? launch clinical for move Is performance in the XXXX?

Thomas Logan

again, specifically, about in talked Yes, most the place overall. that we've radiopharmaceutical very taking radiopharmaceutical on general, therapeutic in but that's applications this we market certainly, are revolution bullish

industry is You in year, [ for ], is drug. for the mentioned or therapeutic than I application radiotherapeutic $XXX Pluvicto a which, that better don't This prostate -- was a its follow first specifically, this think, million who cancers. those

theranostic the PSMA, pipeline. solutions, you in If a imagine, you or for are rich breast, pipeline look it's very other might endocrine approval as prostate-focused system. lung, applications, additional There

component will therapy of will important this but bullet again, view lead broad-based undergoing theranostic market beam Our have single a that change that, will the will mix of be that oncology, it of rather dynamic care become is really stated, external cancer, is surgical solutions as will and magic application. a this nature this and cure between Not a others care. that chemotherapy, an that conventional different revolution to cancer is the cancer kind

how and position So continue see to very, in the evolve to solutions. us value in ecX And in our marketplace, how ratable about we there's our the before, will deal, do to as And expect the that chain for focus here. evolve really we to that more excited our enable growth market. do noted we're to work continue we're grow do going the much but for position is us very radiopharmaceutical on and

Yuan Zhi

after medical XXXX, Of continued more just the for Should of a the want rate course, better which side last was a growth of in the X% was the a Got helpful strong X COVID, guidance XXXX understand to there. my it. Thanks weak question XXXX well technology going in or with X% recovery XX%. tailwinds side? during years' we And X% to color the as of on performance. to long-term X% for context There growth past the performance stable there's recovery the radiopharma here is, into forward? I anticipate

Brian Schopfer

rate if you Look, the at Last year this year last X about level. back over our is organic about X% X%. look the years, was total company growth

'XX, got 'XX. 'XX so for stack numbers, you And and XX% X-year 'XX and X% and

we'll seen. X numbers be we'll see here, and term, But had, kind then guided of X% evolve. quarter so. And things we've And reasonable I X and with not longer look, if can we've different candidly, what we that take at is So a we'll to history putting seen. we've the order I a time of term, update think, X% from to a look, growth there's But year the think, up are how we've number lot do longer of more the these we numbers that think tailwinds.

biggest journey to And our kind thing growth that's here. thing the most the 'XX in and being of gives think I the to I able deliver. order exit think 'XX as begin important us recognize we is confidence

up So yes, we 'XX. like we set for those numbers. we're how And like

right that's now. really think the focus I

Operator

end comments. turn and now I floor the of over question-and-answer the Thomas reached session. have would Logan Ladies gentlemen, to closing we to like for

Thomas Logan

a we evolution market think accrue about in year I line overall thanks Thank the Mirion. all And our was good performance. very of terms We good that. to XXXX XXXX in who you. support will operational Again, feel from today. dynamics, top dialed coming that for continued into

well very, our execution. year us, the focus in exceptional business operating for And These So we flow noted, ahead. within down are conversion, cash we've to as that the our launch and have focused, margins, as a product it's wheelhouse. that we're things digital very on are new conversion

history and into long-term XXXX. our of we of being proud operators very have are confidence as strong of degree high come a We

and But to again thanking next we'll forward by So to forward end look look today, for through we let's it. as we sharing with move journey participating the you our all call.

Operator

Thank concludes today's teleconference. you. This

time. your at this you You participation. Thank for your lines may disconnect

Mirion (MIR) 14 Feb 242023 Q4 Earnings call transcript