MIR - Earnings call transcript Q2 2024 | Mirion Technologies, Inc.

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Operator

Greetings and welcome to the Mirion Technologies' Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jerry Estes, Manager of Investor Relations. Thank you, sir.

You may begin.

Jerry Estes

Good morning, everyone, and thank you for joining Mirion's Second Quarter 2024 Earnings Call. A reminder that comments made during this call will include forward-looking statements and actual results may differ materially from those projected in the forward-looking statements. other cause reports to reports within on XX-Q, in could in are on today's that the June and annual under XX, to our Form Mirion's quarter discussion factors are actual Factors. Quarterly the differ results discussed Form caption related The Risk filings second references ended SEC XX-K, quarterly XXXX. call in financial measures principles. not prepared accordance The generally certain comments that include made will also during accounting with this accepted were to accompanying the can measures directly of comparable the measures financial Reconciliation those financial most be appendix GAAP non-GAAP of today's in found the presentation call. materials our IR earnings website be All found can at on ir.mirion.com.

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

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

Thomas Logan

morning, quarterly of few to like Mirion to and to solid team straight efforts the with for you, you performance. results. A kick pleased a we thank reported items evening. our results their the note off. big to thank Jerry, good things yesterday I'm extend I'd everyone. Getting and

global expect and new significant a deal to signed we very build all space build many relationship our to next expected Mirion operator longstanding the to partnership testament largest decades. we've with that development. coming is positioning plants agreement leadership nuclear excited their be EDF. supplier to that announce signed the in technological our largest ever This the strategic nuclear decades, content in for the exclusive the Moreover, a It arena world, EDF, an power in projects competitive the have making nuclear our spanning we multiples. of new of is I'm X this First, see commercial with position the by where over fortifies

order growth year. was to Next, last second relatively same compared period the flat quarter

from of end long in by quarter. believe engagement overall in tooth. markets, business, in that health the power orders nuclear where than supporting strong led see our our more the second I'm be were the customers confident will up macro across trends by to XX% continue We the and business

flow delivered in growth, revenue power enterprise, in growth, growth Third, e-commerce most notably first sides in by QX, Medical Technologies Across organic our commitment nuclear X% our and to accelerating reflecting invest of half the quarter, the our business the capabilities. Fourth, medicine. Revenue with the both activity our of we continue $X led steady the in cash on X% delivered free launching platform strong nearly inside driven nuclear demand. way bolstering organic game, And of for Chief QX. cash ground flow to Officer, delivering creation positive the the adjusted was year. sales million being to in the

raised to Finally, our $X.XX X% cents, organic and and updated We've adjusted for we free adjusted $XXX EBITDA our EPS guidance. $X.XX ranges have our to reiterated $XXX flow adjusted to million. X%, million $XX XXXX of to $XX of growth revenue of target financial cash to

time dynamics our from upon of our markets. in spend I'd on end each results, reflecting some to second Moving financial the like quarter

to turn Let's Slide X.

want forward. being to last to wish don't compared and will providing unnecessarily numbers not environment was order segment-by-segment the I our The to note here, in that of help intense, we going flat order of first dive many I Before competitors. is businesses in That generally year. growth we our competitive be said, half

QX. In half from projects saw year, period volume number, negative driven to that order performance in X orders see by solid the from dosimetry Radiation yen the Backlog we first China from strong half business. and the the to from QX of did orders, anticorruption continue therapy we growth from Medical the by book massive nuclear due approximately Japanese market led and medicine. the disruptions international million order growth the engagement and was same to and strong last see first softer efforts grew largely QA stemming the segment, in growth approximately $XX expect we depreciation a While in print didn't XX% X%, order to nuclear slipped across market.

first capitalize domestic of on nuclear medicine, step power the approximately market. In year. Technology from And the back the order last that first see order buoyed side encouraged engagement back saw XX%, heading attended approximately of nuclear segment, to an strategy we Within by we Nuclear incredible supported momentum we shows medicine overall by was order our nuclear VUE. positive. in I've the for RTQA, in of that the steady we to encouraged the from our market On technology, drugs energy demand reimbursement In positive attendance the continues of growth as of first low installed saw into movement over this are be and and and digits, strong performance, positioned generation in we continue theranostic changes order I'm U.S. dynamics. by macro are noted see order of medicine momentum evolution trends the saw the the and strong growth strong launch quite single third market increasingly to half the half trade X% by to only summer. growth around CMS continue half, radiodiagnostic Instadose Anticipated year. of in Instadose dosimetry, market at the organic half add the to favorable better the improves. I've the the base. the first well half believe the the can occupational

'XX customer the by I event, which energy early order the 'XX. In of in or never largest personal enthusiasm. industry. good I've is within We of seen flow earlier continue to a and expecting annual X this play event, note, attended toward nuclear On half second excited into this nuclear are week, dynamics keynoting at geared the and our decades my higher be

year, of a last compared were on strong to XX% the half from flat comparison despite Moving to XXXX. growth Orders first Defense.

in $XX last our approximately and quarter this XXXX. positive defense booked on million of at second mentioned orders of outlook European we market call, outset a the the for maintain As

continue both nuclear there's to enterprise. progresses. Overall, a future materializing super momentum build the expect and compared Labs provide negative Defense, budgetary a impact nuclear in dynamics foundation to business positive quarter XX% for had faced saw across timing a growth labs as to a Research medicine year. second in power Similar growth, on dynamics tough the governmental order and our had I'm We QX. across momentum by enterprise. order comp a and to negative encouraged the year and order and market trends of strong The the growth last lot customer ramp Finally, small and

to accelerating Looking ahead QX, nuclear last flow installed to tough facing as gains the from to but we business see year QX due orders, and momentum. are comps order project base we expect large growth

second I I'd Before to that like looking pass the few on items highlight things to there of year are to and ahead Brian, beyond. the half a

First, I'd results initiatives We on in Margin procurement EBITDA quarter. saw Technology expansion touch adjusted especially stemming to like and leverage. our execution was our within segment. the from driven better-than-expected margin margins, and positive performance our operating strong second by

and system We continue capital our business to to overall velocity. performance cost improve emphasize

effort XXX years. strategic next we yield Regarding a improvement believe we're points sweeping to supplier over of procurement, will basis months X consolidate margin base, to XXX into X our EBITDA which the

pleased and continue cadence the down our the have we are of daily doubled XX% our I'm progress factories in making deliver be long-term bullish ability management our addition, with margin events. on on to to Kaizen In we and on target.

year, pleased Inventory I'm team. the a XXXX. Instadose of a us us. spending launch opportunity well the for as to grind moderate and the we'll work I'm in remain believe confident now back that we the we approach quarters strategic big here we the big into the improvement but our great me and turns half to yet focus flows of forward. in of a will to conversion that cash investment flow improve going the positive deal be year our for for half is that ahead. done have area positioned to key and behind conversion are out were cash Secondly, of in improve Capital first cash continue remain

updates some named new that Medical we've our implemented. our President while reporting believe the a radiation Thirdly, retain I led business, leadership Vice therapy in Executive me have will positive his organizational QA Luis I'm of First, These role. group following: the to as to announce strong Rivera I pleased changes previously of and impact segment. include Luis recently we've the he

instrumental growth be Revenue led on our helping Mirion's the where Officer, Medical as role, revenue this have oversee that achieve and long-term confident organization. global Mark Prior role that Mark business. we've in of will named he the Mark I'm we us integral played an success inaugural sales Mirion's Additionally, our to will team Chief seen side Siviter aspirations. sales in

to of our decided medical our element exit business. This portfolio not into did lasers alignment fit clearly non-core and business Finally, strategy. our was long-term and a we unit

of part the from increased our call to the from efficiency our Schopfer. related I'll Norfolk, moving to now Wisconsin Middleton, footprint. With we over all operating drive shutdown, As Chief hand Brian? operations are Virginia Brian factory our to Financial that, Officer,

Brian Schopfer

X.X%. to financial Slide into performance a than in our quarter, total gross million, gross in please of I'll adjusted in adjusted XX.X%. organic company. EBITDA for with morning, for get was at moments, Adjusted margins was to and the expansion segments X% XX.X%. expanding an million, and results on growth margin QX our few everyone. To turn margins revenue $XXX.X adjusted first both more up EBITDA second Revenue quarter where morning, quarter both EBITDA the EBITDA Tom, in in good X was adjusted XXX the half. this grew originally better commentary and for margin while we and by Thanks, came details EBITDA saw and expected basis margin begin points the Quarterly the was levels. margin $XX.X overview

performance was with up in to of Slide ecX from were Medical strength the in added execution solid XXX catching adjusted RTQA X. QX. In our X.X% growth across to quarter dynamics. in revenue the Europe, offset Moving quarter, portfolio. led We XX.X% expansion by where with supported on in EBITDA on slowdown a was margins by medicine solid X.X%. China Medical progress X disruptions was points ERP-related strong a segments, top-line was anticorruption shipments EBITDA the the organic business following second growth over the margin and made from the Medical nuclear ecX Medical point Medical quarter led line. starting the performance market top year. last by basis business, due to by on

at also announced basis points XX the earlier, medical The quarter. Wisconsin our have our As adjusted second our annualized positively example facility to will longer-term great by an move target. operating of basis. reach closure of change a This our the noted approximately disposal is the margin we on impact It Tom cost-out in self-help during margins we XX% simplifies RTQA footprint. initiatives EBITDA

with the by We improvement the to EBITDA sensing coming nuclear negligible continued the the our on encouraged X. the by had and strong in was from of seeing leverage the good margin growth the $XX.X strength expanding segment. growth Technology Top-line operational from power portfolio. Moving quarter especially grew supported and X.X%. momentum rest are Slide segment along by was results XXX quarter of our Technologies' benefited organic with our last European initiatives was impact. Revenue basis the in with from in in year. million, across early nuclear period for led in on FX business, we Technologies operating procurement by Adjusted expect performance same a adjusted margins see I'm EBITDA positive while in points execution solid power, realized a X.X% quarters. business, to expansion

made with headwind pleased we margins was QX, progress French While being basis than the had business originally and our year-over-year with we a a better in expected, on to performance are there.

X to flow. leverage a cash and for at Turning look Slide now

Our net X.Xx to ticked end leverage the at of ratio down quarter. the

$X improvement in and million which XX and a also year-over-year estimate SOFR debt QX We savings. XX annualized versus basis total, driven spread the points a basis investments. launch initiative, completed whole, first in in Instadose of was higher of by net expected to as CapEx around interest is an the refinancing points half approximately save us

significant turnover receivable normal levels performance We inventory, half expect be our opportunity was expectations, net the business. and by to the Progress our continues but working year. timing cash done. the inventory within use payments of to with capital be most generally but to remains a top the working solid capital more first line work in of progress year. Cash Improving a of return working nuclear remains and to dynamics. We capital offset improve more net accounts efficiency project second priority cash in was net CapEx made of the in half was on to

X our over flip let's XXXX. to Finally, guidance to take at look for deeper Slide updated a

earlier, X%. revenue our continue X% X% highlighted Tom and the top-line have revenue growth for to we organic expect X% to [indiscernible] to As growth. reiterated growth targets of year

some achieve to Technologies. segment are Medical Technologies' Namely, low estimate slight there the changes from is The However, how organic updated growth year-to-date we are positive expecting markets. for plus growth momentum our end in number, plus performance mid-single-digit single-digit expect growth supported from by strong to we across organic growth now continued the and and

by is of the annualized growth decision basis to the and nearly medical our shutdown to XX the the and side points and an business, XXXX Medical is lasers which in impact inclusive medical Middleton facility, of approximately organic the basis. for On estimate conjunction exit on XXX basis points with expected updated growth alignments

reiterate, margin also as to the domestic offset order the driven Medical a is is anticorruption The The lockdown this by the China. yen estimate action momentum for activity of in Japanese impact. reflective to Medical expected of accretive some updated slowing Just as well positive the group. depreciating is

expecting on China. in and operating improve yen to conditions demand in international strength the based markets in XXXX the are We in deferred increasing

performed As of with the better X-year few over has in a growth. XX% years organic reminder, stack well Medical very than our business growth XXXX last

expected. bit was a of So normalization a

margins and and XX% of $XXX to We adjusted with XX%. have EBITDA are adjusted slightly expecting raised EBITDA million between our $XXX now guide million

Our range unchanged adjusted $X.XX EPS at $X.XX. to remains

range also held cash flow have million free million. We $XX adjusted to at our $XX

XX free However, like cash public we structure. expect to warrants the private at an the look towards capital also do quarter. forward come the of during lower as to that our we is we mature our simplifies continue public you flow of in Slide I'd greatly end all in good to action completed as company. I'd appendix second a point for for a that the step note and This It redemption range. us to outstanding updated to share count am Q&A. and Investor up for be a our hosting year first-ever for financial we later of we December More as community. targets will details excited the item for opportunity to we the announce considerations come investment open strategy the get will to following updated this targeting great the are event final I before that note on our be longer-term things event. us closer, but redemptions. One share Day and early with this

now our we results you believe where about the feel results this that, through halfway up to and to Looking I at are stand third I'll year, finish over for things look I quarter to a with to year. strong we the far good positioned forward it updating fall. And deliver that thus open financial pass Q&A. to with Jerry well our

Jerry Estes

Q&A kick comments Thank you, the our off the this That to to the operator hand formal morning. over back session. up call wraps Brian. I'll

Operator

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

Joseph Ritchie

Do a the look, health the of guys does that orders. going we little the kind the are expect health half through it pipeline And comps relates up decline? half push guess of to tough the you to you you like, at like like? level? roughly you I seems like same to hold to XQ. of coming against think second the order to nuclear what the of about just it and of of current you or think I going in recognize bit you be time, At as some orders had year? the as as pipeline on backlog to look into in year million Tom the $XX can out what, Brian, the overall progress what year, the Is maybe second color rest happen provide backlog of it

Brian Schopfer

Yes.

a maybe -- there, couple Joe. thoughts a of So couple

there the QX. that's we between I large where today. reminder, are of good we're very be event about continues businesses off, orders mean, very, of to base in both the like comping pipelines lot QX at continue markets. Tom But yes, said, the QX feel seeing be First -- spent out a North pipeline. dynamic candidly. strong time and just very our million in very actually. just there we the The good. The in this Texas optimistic sit is $XXX some to across we've The and customer I, very medical And week. Tom with businesses, America about they're what team A in

look, versus third is half directly, probably quarter, visibility in year. year. I question But your for quarter, sure. I say, the to, being continuing the answer I to us on last think up back I year-over-year the rates won't think backlog the And year think be would fourth a in like be basis order of I where started backlog the we flat third the quarter to will to there positive

around very can to there that Tom about dynamics sitting. mean, over at think worried good. But there'll that will next and orders the something -- we're feel candidly other other I think of look kind timing. in And pipeline either just burn be year. our continues visibility the when of good year that very I back move you front and of these order come half good. this in, we or this where particularly based look, very little into Now time. project be And the projects on down But be pipeline end I are larger is a bit about. they orders, I isn't And

Thomas Logan

is Tom. this Joe, Yes,

It's you 'XX tend into Brian terms clear, I projects. But to large booked little of on It to business revenue that coming The we feel years, is be which of obviously, we're typically, that, the net project, in bit the be tag To only if multiple ahead years. But this it always to not nuclear we of as lumpy. note it's at think projects, exclusively not nuclear larger not Again, a the number it we think just also but terms this. is see on important smooths we've what queue about half addition and a to in been that ratable. of beyond. through -- but seeing. because typically, good revenue, over a look for clear that look Just said. Again, to year, I back flows it. in flow

very typically So installed the very nuclear, beyond and is not large our business. these cetera, trades flow the therapy we're case base, it necessarily clearly, get this pickup driven quarter. based again, a of clearly the within on And above is the in orders, from clear, et seeing in health business This in base, to radiation exclusively. backlog be a QA, broadly that in but because installed true which doesn't also reflected

right again, concerned We're very now. about So we're about be It's where at clear, to flow either sit or market strength not we order confident there. positive. all very

Brian Schopfer

would I business. flow of -- bit that on one maybe little Yes, context to a just throw

I of that. because flow that smooths to below kind that we $X under think are mid-single-digit a tend business And we us. that million it look is kind year out, number at of at think orders tends out and of the kind -- as we look projecting order for growth

some Joe, and So context, maybe we're expecting. what on just seeing

Joseph Ritchie

share time, of that out know just I how next of do was had guys an And playing I'm EDF in that does the already-existing couple kind strong the long-term partnership, already. same fact like exclusive segment this expand with EDF? see how this potentially the like years curious thought you nuclear At the with you that you over notable. relationship? on partnership I that market signed have

Thomas Logan

does not -- C repeatedly large certainly, with Joe, grateful. think, with we I some decades the Yes. project we're historically. terrific we've we've for if had Point many us we've U.K. content of this the I partner had on been would is that into tremendously of mean, of and recently also confidence terms signed which trading most greater future point, strong to attendant competitively. all it deal, an it we commercial us EDF. a we not relationship the overall. our that the has for with Hinkley And for They've absolutely EDF. in outstanding effectively, negotiation it strong gives making around expected would activity had an And in commercial But EDF terms investments your supporting space, noted, strengthens And in of flow clearly business from that, an impact streamlines in have we're what but cost this certainly and it our only structure this commercial the position

honored happy we're about of have place EDF. So very with it this again, very to pride and,

Joseph Ritchie

could just squeeze maybe more. I if And one

the dynamics market. You guys anticorruption China in the referenced in RTQA

the like going that's XX you this of think about you better a now for been I How your last, bottom that business think get like kind what XX in probably of or forward? forward? kind I talk you do do impacting -- guess. At the point of see going there's months, this of business to piece

Brian Schopfer

Yes.

stuff. side, half, well. of down I I but in about the pretty definitely the the a movement And bit side and second be I the do revenue the half order that the the of we it side, the with in negligible in the half we as second to think little project timing side, technology think first to on down anticorruption, first that's nothing our numbers, think you just has expect half medical on as the of the was business and mainly, with the the first what between year impact was kind would on on of half that just orders tell RTQA is

from you Our this heard common, Joe, other have guys this -- week. that so have companies that expectation think I released is

to I point. the think we expect be low 'XX probably

late fourth what the point. at this but in 'XX better forecasting get in quarter, we're to is maybe We expect the dynamics the

Thomas Logan

Chinese or it happen. in that again and in XXXX, because leaders One And programs on will understand we've a much that. through likely if kind broadly ratable I people the particular, it this you'd will think of also to don't the It's the -- just the to factors of the to comprehensive I in turn Healthineers, the called will China. add picture Chinese space, to market. QX ever certainly certainly be this of are health But to in fashion. And market. are market. to then favorable that materialize pent-up secondly, stimulus in We is I'd begin will that people deals in will will beyond believe to Chinese kick be the markets, improve what's QX are Whether demand in in markets listen ultimately in, well. careful, pretty bump it more Yes. kind Joe, a those there takes get that more longer think anticorruption get industrial care of dynamics of but as beneficial speed that we the is that, both I demand and which think a in being begin Siemens too, dynamics factors for flow important you in in happens -- X some

this So market to to us. be continues important

growth fact well we encapsulated that we of here Brian but great, the continued our the think exposure future it to I short-term a source the past expect as is get in disruption. be not

Operator

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

Christopher Moore

impact? you impact about the little on anticipated you on Maybe talk the CMS timing any referenced bit potential or just have? might just start changes thoughts further you reimbursement. can with, Tom, Maybe And a

Thomas Logan

Yes.

care CMS health is in private American American for reimbursement only They protocols basically also that reimbursement, establish the uninitiated, reimbursement the industry, not government Medicare the are, but view So market for Center the overall. insurance general of within much really just who Studies. those drive the

important. incredibly it's So

of but talked theranostics We in the elements. improved this PET our to incredible of refer as a or about again, increase involves in Reimbursement different kept carry rates which, medicine. the taking carry utilize nuclear of therapeutic that, we've general, is radiodiagnostic couple radioisotopes imaging and involves very paying using a ligands, of impact of hasn't these technology historically, range market are used value As been common there's of dollars up. more generally what One the care of in imaging. And the scanning are secondly, commercially the energy overall. there's place but that CMS techniques evolving movement dollars. development a nuclear evolution molecular it and actually simply in now for therapy, hundreds providers And type these have to when using is it therapeutic space, drugs doses, cost medical -- molecular radioisotopes low an radiopharmaceutical right the in have coupled health drugs. tracers it been with of In thousands

be for overall. And is that think if this care correct is pathway of what providers CMS protocols be beginning reluctant accretive margin the signaled happens, to logical so in them a prescribe strong may future, will of And in that discrepancy the health XXXX. intent I has today, kind to money-losing axiomatic that but here less the will be

gist the it. that's of So

Christopher Moore

there? up there those the a and be Is else cleaning structure to private anything improve -- job else obvious a public like seem from the done that you anything Obviously, capital warrants. the had standpoint structure that can good more cap

Brian Schopfer

balance made out progress over -- our of et I of on the lot it's think, kind of mean, Yes. I capital stack debt think last cetera. we right, getting look, I summer. did repricing, the Charterhouse, years off, last first warrants, X.X sheet, we've I Obviously, a think the we're the whether

repricing on continue the to we on look we'll debt. more the can think at do side whether I

trade-offs. do improvements. a don't I how capital go -- quarters we and Your then huge those evaluate and we looking to lot we've to at as of comes to M&A those went But the continuously structural to and versus think left allocation. I kind by make of I think we the I question way And there's really cash. generate made down And more think continue public. are both anything delevering and Tom also from

on So sure, our and continuing for I about growing grow. to think plan, executing flow, cash free now really focusing it's margins,

think the growth promising. end focused. And where the in we're I is markets therefore, that's

a most lot along, done. behind something And us. always structure now stuff look things. if heavy has we'll opportunistic that of I lifting think there's been capital the at think I of comes is But the

Thomas Logan

I year large to X.Xx, important enter that Chris, well, into default mode. continues deal. be that that to in as earlier M&A to And guided we the to don't year to assuming a clear continue think that, organically we've note our below we'll this it's I want be delever

health view position got right evolving a now both that's the we've for in organically space. nuclear that Our the tremendous is growth and care

we've that of really net a us Assets interest right be now of, deals continue leverage. on significant small these to impact high past a overall have that have that are done ball kind don't again, degree to recent in -- the

And be a of us We that continue and operational quality for on so the attendant bring to the the cash be little and good to notes. focused overall that generation. know free flow bit business and down default continues our to more margins opportunity leverage a extremely there's

Operator

the next from line Andy with of Our question comes Kaplowitz Citi.

Andrew Kaplowitz

some from XXX Tom of in mentioned procurement initiative, XXX talked specifically basis years. you benefits to X you early next technologies. your about And or Brian, over points the margin

to margin EBITDA XX% quarter. Technologies' was Your this close

out over the about How particular? talk half does second the in how evolve program could you for in technology could play So it 'XX?

Brian Schopfer

Sure.

level, company XXX clear, is total not just XXX actually we're Just at the to the in Technologies. so

Andrew Kaplowitz

course. of Yes,

understand. course, Of I

Brian Schopfer

of kind on a is of supplier in to base, we've cetera. been work the I phase think rethinking and base. the next do system think we benefits about about category, This of it. -- with Tom the our is has of really we of done. of the stop some So organic business kind talking stuff, lot interesting we some how have look, I mean I the engage half I done a et and team year reduce mean, this how spending of were I supplier our the early behind ton what's the first a getting And

be That XXX. the category, X,XXX kind imagine, tremendous. suppliers. than little a have from of both underneath doesn't we have can is bigger a We can over case. skin-in-the-game going a need complexity be That relationships benefits lot on, POs also we few hood have of the as that to the of less to you the And but

don't it's just think of year, on else phenomenon half here you'll with this we the think more see time. margin because more something I some working time. anything 'XX So the of inventory back right? 'XX, fast, a to in that a 'XX things tailwind our same I we're expansion And takes continue procurement So at of the turn but X of because than

encouraged super we're I finding. think with we're what

And very think this engagement our about I teams. a and encouraged the businesses is underlying from we're meaningful impact us. I for think

this. I about So we're very think bullish

it's it it example you're And the XX% think from get think on on to the today to get continue concrete through are and think I that into expect we half we 'XX. a the how and we to of year you'll in margins. see operating leverage P&L, I top of starting to see where I the back

Thomas Logan

around we've that is color additional Andy, organization too, the here, evolved firstly, Some this.

we So this be do procurement. business. a covers direct, an just is way also in evolution is And not not only to the project. This clear, it indirect but

here, there's clear is fall-through in largely on at we level, there in just natural business margin overhead not drive EBITDA gross that and the at but both disciplined taking And view, the our the clear the get operating that XX% leverage, largely factory our I horizon. being high gross within about we've relatively through margins expansion. that -- we've level And and been subtext can impact EBITDA very margin margin a by margin So think of about secondly, our been to target planning our SG&A purely overall. been really the

also We have realm. noted in quality that that self-help focused on we're and operational very

tangible bit a little half just And we're area year And seeing, in this initiative. which very being with what one again, pleased so into very, is a procurement. here pool, today, about that we're we're more

it's going dividends. pay expect to We meaningful

Andrew Kaplowitz

I help up is seem quite nuclear business. end if your it you And bit? tends be fastest-growing do about you maybe could offset you the obviously, And how growth slower big But up it. mix it a ends Tom, think, that medicine, business, believe for is mid-single-digit a RTQA but Ultimately, longer. Medical timing? to excited medical still over then, being Can changing

Thomas Logan

from all is been firstly, the to a year. -- X note mean, secular the But numbers last tremendous growth that a I that been if to it's attribute continues of Japan. dynamic. China there, double a been comp an a factors: field Again, not at it's the digit. a change you that business. It's big grow, that just trends look I growth, lapping from RTQA there's Yes. secondly, would It's and standpoint, they've larger One we're and in

the think we've -- As I I precision nuclear of today. detailed in medicine is Candidly, some call with the evolution quite unpredictable.

potentially cancer of overall example, -- I likely Alzheimer's, and beam oncology, to of but expects and nexus think of beam protocol. about as that market likelihood change any dot, cancer conventional XX% this part diagnosed and a a latter render a Not which nobody far dot. of cancer in obsolete. Today, would and is that greater care, the is between it a chance somehow shifting be being going And just than continues. newly X. that care to radiopharmaceutical the external everybody is therapy RTQA a the therapy expects chemo-based treatment we're an But care high also cardiac prescribed will There's with oncology confidence surgical their just as therapy either patient that overall. what external see has dot, U.S.,

So will the only an line the today, is the underserved world and differently bottom dramatically But about it categories beam The clinics of from change. will the of globally, It cancer. that today needs. therapy linear world the dynamic has half for standpoint. change that external accelerators is different treatment

additive. see bullish nuclear and cannibalizing don't quite we continue medicine so We And be being really it that as business see it. on to

Brian Schopfer

Yes.

years. year, not of of that seeing been the actually medicine team we're medicine about additive, and a treatment business nuclear being talking of thing to business RTQA in other one years we've it's coming Tom think off said And right, one Medical the overall, -- single is has And high I maybe kind single-digit said, mid-single. the for nuclear This like business, X grower other the obviously a us maybe good is field. to comment, the just last regime. a very us, big together, lot couple the is we working RTQA

a -- like a of So bit I think this continue we I space think to there's lot.

Andrew Kaplowitz

me on when I you good. And positive, the that's like correct

this flow. flow year. So you ask you're about cash know let me on cash focused I

didn't have the year. of first the but positive change did guidance, you half in flow your You cash

have do ramp half. the a You steep in second

range. about big usually, into that generate the seasonally, to think you and I maybe talk cash visibility [indiscernible] get

Brian Schopfer

were still is mean, last Yes. off, we of Look, And we I this ahead year. last first year have we the ended year. in we're where what up -- where range

this back like a 'XX went as looked I at last looks I 'XX like lot lot well And and 'XX. and actually year. think year looked a

change the towards lot higher numbers there's And think be we I different from at we So the this want reasons, quarter, the we'll we to going just different. felt end many we end today. of we weren't cash to to if the tend we sit of lot where do for the an range, of think impact be didn't. fourth there, not to that left a a like time of any -- lower we of think range I kind generate still in We won't But the we there. get make year

Operator

Riley. the from line comes question with next Our Zhi B. Yuan of

Yuan Zhi

good Congrats on a quarter.

your canceling curious First, seeing if think recession such cautious brief level, be customers the as there or coming, delaying spending on you backlog? orders the do will is a just on the high I'm

Thomas Logan

this some find at a Yuan, XX-plus-year our And growth history, that during -- of Tom. you periods very is is would candidly, acyclical business. has what if our recessionary tend start, come I'll look The we you -- overall. Yes, general, strongest be our in to

cycles. our the demand not be cycles view of we're in our dominant to the economic generally And again, that drivers free markets, somewhat those economic that tend exposed is so to

enhanced dip based in So just no, a an of risk growth numbers. expecting demand we're not on of kind macroeconomic

Yuan Zhi

comment about for talk to from CMS? trend prior plan your question, CMS on that following prepare upcoming Tom, on this can you or maybe

Thomas Logan

Yes.

-- moves to I known platform prepare. in just leading there's in market audience to the from candidly CDMOs little the very the patient. makers, researchers, terms the this of in management of a and how broader today literally our that as product space. note and the data through the the the U.S., chain grave area, for platform to in to value ecX, -- players isotope connects us, that administered the the positioning radiopharmacies, ultimately that The mean all the own in ultimately, For that drug cradle is clinicians producers, the the we software is

of the this where it case that other prescription added buy to that's clinic of balance calibrators, volume, with in-shields again, the in broadly to balance our to some equipment software other of that, more volume in a uptake dose story linked, -- kind involved drag likely instruments, obviously, bunch we're an calibration equipment transport And through along also the As market that in people it's of just clearly, the in I various friction hardware radiodiagnostic are types respiratory are any equipment sell. standpoint, particularly is of thyroid in our medicine note for but favorable procedurally a market means of should equipment reduces driver of compounding change license systems, American nuclear studies, that biggest to dynamics, we the general procedures. market, and from of extent leader overall, that dose more in peripherals. The and to and

for take. upside a for and there's action So prepared continuing certainly us specific not demand. We're to evolution

Operator

questions to this I further no floor over the at you closing like turn have to Mr. comments. for would We Logan, back time.

Thomas Logan

attention. we Okay. Well, ladies your and always, gentlemen, appreciate as

view Just EDF message continued the business. evolution to our the company. it the good margin the executed of but is our quarter continued the business, deal, quality well. of evolution as of to specifically expansion pleased our also story was the and for operational reiterate here with Very a strategic point We the and it of relates

cost continues to continue strong to to continues year it in structure the continue markets the velocity and be our of reporting growth look hit now between in for be focus attention We terms and customer to ultimately been balance to and and very our and be cash and capital to Our to flow, leverage the to our much of the forward appreciate on favorable free and engagement end on year. goals your QX back you in time organic of today. driving has as grind where that margin,

day. good a you of all wish I So

Operator

and teleconference. gentlemen, conclude today's does this Ladies

lines time. your participation, You may day. disconnect a Thank this wonderful for you have your and at

Mirion (MIR) 2 Aug 242024 Q2 Earnings call transcript