2023 Q4 Form 10-K Financial Statement

#000155837023019262 Filed on November 21, 2023

View on sec.gov

Income Statement

Concept 2023 Q4 2023 Q3 2023
Revenue $154.3M $172.4M $665.1M
YoY Change -13.48% 25.29% 19.73%
Cost Of Revenue $92.81M $104.3M $401.9M
YoY Change -11.19% 31.3% 34.02%
Gross Profit $61.51M $68.03M $263.1M
YoY Change -16.72% 17.06% 2.96%
Gross Profit Margin 39.86% 39.47% 39.57%
Selling, General & Admin $78.58M $74.93M $316.3M
YoY Change -15.1% 15.8% 25.48%
% of Gross Profit 127.74% 110.13% 120.2%
Research & Development $8.493M $8.932M $33.96M
YoY Change 12.7% 16.8% 23.29%
% of Gross Profit 13.81% 13.13% 12.9%
Depreciation & Amortization $21.87M $22.18M $37.20M
YoY Change 8.35% 49.0% -30.73%
% of Gross Profit 35.55% 32.61% 14.14%
Operating Expenses $88.19M $83.86M $336.3M
YoY Change -13.16% 15.9% 20.26%
Operating Profit -$26.68M -$15.82M -$73.13M
YoY Change -3.64% 11.17% 204.4%
Interest Expense $10.08M $11.33M $43.74M
YoY Change 23344.19% 14.72% 178.62%
% of Operating Profit
Other Income/Expense, Net $682.0K -$338.0K -$1.042M
YoY Change -40.44% -125.0% 291.73%
Pretax Income -$15.91M -$5.637M -$30.43M
YoY Change 0.25% 65.79% 206.29%
Income Tax -$200.0K -$8.443M -$17.55M
% Of Pretax Income
Net Earnings -$15.72M $3.375M -$14.26M
YoY Change 39.96% -116.25% -100.67%
Net Earnings / Revenue -10.19% 1.96% -2.14%
Basic Earnings Per Share -$0.28 -$0.22
Diluted Earnings Per Share -$0.28 $0.05 -$0.22
COMMON SHARES
Basic Shares Outstanding 56.11M 60.15M 66.25M
Diluted Shares Outstanding 56.71M 66.25M

Balance Sheet

Concept 2023 Q4 2023 Q3 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $984.1M $1.018B $1.018B
YoY Change -13.0% -35.17% -35.17%
Cash & Equivalents $702.9M $678.9M $678.9M
Short-Term Investments $281.2M $338.9M $338.9M
Other Short-Term Assets $115.6M $92.24M $92.24M
YoY Change -4.75% -85.59% -85.59%
Inventory $127.2M $128.2M $128.2M
Prepaid Expenses
Receivables $155.9M $156.5M $180.7M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.383B $1.419B $1.419B
YoY Change -14.64% -42.3% -42.3%
LONG-TERM ASSETS
Property, Plant & Equipment $210.6M $272.3M $272.3M
YoY Change -23.21% 76.3% 76.3%
Goodwill $800.2M $784.3M
YoY Change 5.13% 52.71%
Intangibles
YoY Change
Long-Term Investments $61.96M $111.3M $111.3M
YoY Change -79.66% -68.37% -68.37%
Other Assets $77.19M $70.47M $4.462M
YoY Change 24.64% 20.96% -92.34%
Total Long-Term Assets $1.442B $1.467B $1.467B
YoY Change -13.81% 16.71% 16.71%
TOTAL ASSETS
Total Short-Term Assets $1.383B $1.419B $1.419B
Total Long-Term Assets $1.442B $1.467B $1.467B
Total Assets $2.824B $2.886B $2.886B
YoY Change -14.22% -22.35% -22.35%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $40.24M $35.80M $35.80M
YoY Change -27.18% -7.39% -7.39%
Accrued Expenses $123.3M $111.9M $111.9M
YoY Change -2.27% -9.58% -9.58%
Deferred Revenue $34.81M $34.61M
YoY Change -18.36% -12.92%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $677.0K $677.0K
YoY Change 605.21% 605.21%
Total Short-Term Liabilities $235.6M $210.9M $210.9M
YoY Change -5.38% -8.51% -8.51%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $1.361M $1.361M
YoY Change -100.0%
Other Long-Term Liabilities $12.32M $12.18M $71.63M
YoY Change -6.58% -78.88% 24.28%
Total Long-Term Liabilities $12.32M $12.18M $72.99M
YoY Change -6.58% -78.88% 26.64%
TOTAL LIABILITIES
Total Short-Term Liabilities $235.6M $210.9M $210.9M
Total Long-Term Liabilities $12.32M $12.18M $72.99M
Total Liabilities $380.7M $351.2M $351.2M
YoY Change -9.59% -0.43% -0.43%
SHAREHOLDERS EQUITY
Retained Earnings $1.625B $1.641B
YoY Change -1.14% -0.87%
Common Stock $1.046B $1.157B
YoY Change -29.81% -41.95%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.444B $2.535B $2.535B
YoY Change
Total Liabilities & Shareholders Equity $2.824B $2.886B $2.886B
YoY Change -14.22% -22.35% -22.35%

Cashflow Statement

Concept 2023 Q4 2023 Q3 2023
OPERATING ACTIVITIES
Net Income -$15.72M $3.375M -$14.26M
YoY Change 39.96% -116.25% -100.67%
Depreciation, Depletion And Amortization $21.87M $22.18M $37.20M
YoY Change 8.35% 49.0% -30.73%
Cash From Operating Activities $26.43M $39.89M $17.49M
YoY Change -197.82% 314.05% -103.75%
INVESTING ACTIVITIES
Capital Expenditures $11.92M $10.24M $39.44M
YoY Change -7.19% -174.69% -150.93%
Acquisitions $386.5M
YoY Change 207.05%
Other Investing Activities $110.3M $112.7M $470.8M
YoY Change 59.42% -131.24% -69.49%
Cash From Investing Activities $98.40M $102.5M $431.4M
YoY Change 74.6% -127.37% -70.57%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $838.5M
YoY Change 15886.92%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -113.2M -166.9M -844.1M
YoY Change -77.58% -9630.55% 1244.89%
NET CHANGE
Cash From Operating Activities 26.43M 39.89M 17.49M
Cash From Investing Activities 98.40M 102.5M 431.4M
Cash From Financing Activities -113.2M -166.9M -844.1M
Net Change In Cash 24.18M -24.51M -357.3M
YoY Change -105.68% -93.25% -138.14%
FREE CASH FLOW
Cash From Operating Activities $26.43M $39.89M $17.49M
Capital Expenditures $11.92M $10.24M $39.44M
Free Cash Flow $14.51M $29.65M -$21.95M
YoY Change -136.41% 27.06% -94.35%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 10pt 0pt;">1.    Nature of Operations</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 10pt 0pt;">Azenta, Inc. (“Azenta”, or the “Company”) is a leading global provider of sample exploration and management solutions for the life sciences industry. The Company supports its customers from research and clinical development to commercialization with its sample management, automated storage, vaccine cold storage and transport, as well as genomic services expertise to help bring impactful therapies to market faster. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 10pt 0pt;"><span style="font-style:italic;font-weight:bold;">Discontinued Operations</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 10pt 0pt;">In the fourth quarter of fiscal year 2021, the Company entered into a definitive agreement to sell its semiconductor automation business to Thomas H. Lee Partners, L.P. (“THL”). The Company determined that the semiconductor automation business met the “held for sale” criteria and the “discontinued operations” criteria in accordance with Financial Accounting Standard Boards (“FASB”) Accounting Standards Codification (“ASC”) 205, <i style="font-style:italic;">Presentation of Financial Statements</i>, (“FASB ASC 205”) as of September 30, 2021. Please refer to Note 3, “Discontinued Operations” for further information about the discontinued businesses. The Consolidated Financial Statements were restated for all periods presented to reflect the discontinuation of the semiconductor automation business and the semiconductor cryogenics business in accordance with FASB ASC 205. The discussion in the notes to these Consolidated Financial Statements, unless otherwise noted, relate solely to the Company's continuing operations.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 10pt 0pt;">On February 1, 2022, the Company completed the sale of the semiconductor automation business for $2.9 billion in cash.</p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;margin:0pt 0pt 10pt 0pt;">Use of Estimates</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 10pt 0pt;">The preparation of financial statements in accordance with GAAP requires management to make certain estimates and assumptions that affect amounts reported in the financial statements and notes thereto. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may differ from these estimates. Estimates are associated with recording accounts receivable, inventories, goodwill, intangible assets other than goodwill, contingent consideration liabilities related to business combinations, long-lived assets, derivative financial instruments, deferred income taxes, warranty obligations, revenue over time, stock-based compensation expense, and other accounts. The Company assesses the estimates on an ongoing basis and records changes in estimates in the period they occur and become known.</p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;margin:0pt 0pt 10pt 0pt;">Concentration of Credit Risk</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 10pt 0pt;">Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash deposits and cash equivalents, marketable securities, derivative instruments, and accounts receivable. All of the Company’s cash and cash equivalents, restricted cash, marketable securities and derivative instruments are maintained by major financial institutions.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 10pt 0pt;">The Company invests cash not used in operations in investment grade, high credit quality securities in accordance with the Company’s investment policy which provides guidelines and limits regarding investments type, concentration, credit quality and maturity terms aimed at maintaining liquidity and reducing risk of capital loss.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:18pt;margin:0pt 0pt 10pt 0pt;">The Company regularly monitors the creditworthiness of its customers and believes that it has adequately provided for exposure to potential credit losses. The Company’s ten largest customers accounted for approximately 30%, 20% and 19% of its consolidated revenue for the fiscal years ended September 30, 2023, 2022 and 2021, respectively. One customer accounted for more than 10% of the Company’s consolidated revenue for fiscal year 2023. This customer is related to the Life Science Products segment and is a distributor shipping to end users in approximately 50 countries. No customers accounted for more than 10% of the Company’s consolidated revenue for fiscal years 2022 and 2021.</p>
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CY2023Q3 us-gaap Finance Lease Liability Payments Due After Year Five
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CY2023Q3 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
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42531000
CY2023Q3 us-gaap Finance Lease Liability Payments Due
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2137000
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20136000
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2038000
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CY2022Q3 us-gaap Accounts Receivable Net Current
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CY2022Q3 us-gaap Contract With Customer Asset Net Current
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CY2023Q3 us-gaap Contract With Customer Liability
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CY2022Q3 us-gaap Contract With Customer Liability
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CY2021Q3 us-gaap Allowance For Doubtful Accounts Receivable
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CY2020Q3 us-gaap Allowance For Doubtful Accounts Receivable
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CY2021 us-gaap Provision For Doubtful Accounts
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CY2023 us-gaap Allowance For Doubtful Accounts Receivable Recoveries
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CY2022 us-gaap Allowance For Doubtful Accounts Receivable Recoveries
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CY2021 us-gaap Allowance For Doubtful Accounts Receivable Recoveries
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CY2023 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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CY2022 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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414000
CY2021 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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CY2023Q3 us-gaap Allowance For Doubtful Accounts Receivable
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CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable
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5162000
CY2021Q3 us-gaap Allowance For Doubtful Accounts Receivable
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4318000
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59861000
CY2022Q3 us-gaap Inventory Raw Materials And Purchased Parts Net Of Reserves
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39685000
CY2023Q3 us-gaap Inventory Work In Process Net Of Reserves
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11400000
CY2022Q3 us-gaap Inventory Work In Process Net Of Reserves
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4816000
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56937000
CY2022Q3 us-gaap Inventory Finished Goods Net Of Reserves
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41043000
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CY2022Q3 us-gaap Inventory Net
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39794000
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CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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2890000
CY2021Q3 us-gaap Product Warranty Accrual
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2330000
CY2020Q3 us-gaap Product Warranty Accrual
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2211000
CY2023 azta Standard And Extended Product Warranty Accrual Adjustments Acquisitions
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2475000
CY2022 azta Standard And Extended Product Warranty Accrual Adjustments Acquisitions
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254000
CY2023 us-gaap Product Warranty Accrual Warranties Issued
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8198000
CY2022 us-gaap Product Warranty Accrual Warranties Issued
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2438000
CY2021 us-gaap Product Warranty Accrual Warranties Issued
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2300000
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3340000
CY2022 us-gaap Product Warranty Accrual Payments
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2132000
CY2021 us-gaap Product Warranty Accrual Payments
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2181000
CY2023Q3 us-gaap Product Warranty Accrual
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10223000
CY2022Q3 us-gaap Product Warranty Accrual
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2890000
CY2021Q3 us-gaap Product Warranty Accrual
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2330000
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CY2023Q3 us-gaap Preferred Stock Shares Outstanding
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CY2022Q3 us-gaap Preferred Stock Shares Issued
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0
CY2023Q3 us-gaap Preferred Stock Shares Issued
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CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2023Q3 us-gaap Revenue Remaining Performance Obligation
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CY2023Q3 us-gaap Revenue Remaining Performance Obligation
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24228000
CY2023Q3 us-gaap Revenue Remaining Performance Obligation
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CY2022 azta Capitalized Contract Cost Amount Capitalized
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CY2021 us-gaap Allocated Share Based Compensation Expense
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CY2021 us-gaap Income Tax Reconciliation Tax Credits
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1574000
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27144000
CY2023Q3 us-gaap Deferred Income Tax Liabilities
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CY2022Q3 us-gaap Deferred Income Tax Liabilities
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CY2022Q3 us-gaap Deferred Tax Assets Valuation Allowance
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CY2022Q3 us-gaap Deferred Tax Liabilities
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CY2021Q3 us-gaap Unrecognized Tax Benefits
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CY2023 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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CY2022 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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CY2021 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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CY2023Q3 us-gaap Unrecognized Tax Benefits
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CY2021Q3 us-gaap Unrecognized Tax Benefits
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