WALTHAM, Mass., April 23, 2024 /PRNewswire/ -- Veralto (NYSE:VLTO) (the "Company"), a global leader in essential water and product quality solutions dedicated to Safeguarding the World's Most Vital Resources™ announced results for the first quarter ended March 29, 2024. Key First Quarter 2024 Results Sales increased 1.8% year-over-year to $1,246 million, with non-GAAP core sales growth of 1.8% Operating profit margin was 23.5% and non-GAAP adjusted operating profit margin was 24.5% Net earnings were $184 million, or $0.74 per diluted common share Non-GAAP, adjusted net earnings were $209 million, or $0.84 per diluted common share Operating cash flow was $115 million and non-GAAP free cash flow was $102 million Jennifer L. Honeycutt, President and Chief Executive Officer, stated, "Our first quarter results reflect our culture of continuous improvement and demonstrate our ability to deliver on commitments.  Year-over-year core sales growth was led by continued strength within industrial markets in our Water Quality segment, and aggregate price increases in-line with historical levels.  Additionally, we delivered strong operating margin expansion and high-single digit earnings growth while continuing to invest in our future." "In our Water Quality segment, we continue to see positive secular growth drivers across industrial markets, particularly in North America, along with steady demand at municipalities. And in our Product Quality and Innovation segment, we are seeing modest signs of recovery in consumer-packaged goods markets. Moving forward, we remain focused on driving commercial excellence, continuous improvement and disciplined capital allocation to create shareholder value while Safeguarding the World's Most Vital Resources™." concluded Honeycutt. 2024 Guidance The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP sales, such as currency translation, acquisitions, and divestitures.   For the second quarter of 2024, Veralto anticipates non-GAAP core sales growth in the low-single digits with adjusted operating profit margin of approximately 23% and adjusted diluted earnings per share in the range of $0.75 to $0.80 per share. For the full year 2024, the Company continues to anticipate that non-GAAP core sales will grow low-single digits year-over-year and that adjusted operating profit margin will expand 50 to 75 basis points year-over-year.  The Company increased its target for adjusted diluted earnings per share to a range of $3.25 to $3.34, up from its prior guidance of $3.20 to $3.30 per share and increased its estimate for free cash flow conversion to a range of 100% to 110%, up from its prior guidance of ~100%. Conference Call and Webcast Information Veralto will discuss its first quarter results and updated financial guidance for 2024 during its quarterly investor conference call tomorrow starting at 8:30 a.m. (ET). Access to the call, webcast and an accompanying slide presentation will be available on the "Investors" section of Veralto's website, www.veralto.com, under the subheading "News & Events" and additional materials will be posted to the same section of Veralto's website. A replay of the webcast will be available in the same section of Veralto's website shortly after the conclusion of the call and will remain available until the next quarterly earnings call. The conference call can be accessed by dialing +1 (800) 579-2543 (U.S.) or +1 (785) 424-1789 (INTL) (Conference ID:  VLTO1Q24). A replay of the conference call will be available shortly after the conclusion of the call and until May 8, 2024. You can access the replay dial-in information on the "Investors" section of Veralto's website under the subheading "News & Events." ABOUT VERALTO With annual sales of $5 billion, Veralto is a global leader in essential technology solutions with a proven track record of solving some of the most complex challenges we face as a society. Our industry-leading companies with globally recognized brands are building on a long-established legacy of innovation and customer trust to create a safer, cleaner, more vibrant future. Headquartered in Waltham, Massachusetts, our global team of 16,000 associates is committed to making an enduring positive impact on our world and united by a powerful purpose: Safeguarding the World's Most Vital Resources™. NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. Calculations of these measures, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, as applicable, and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached. In addition, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Veralto's website (www.veralto.com) under the subheading "Quarterly Earnings." FORWARD-LOOKING STATEMENTS Certain statements in this release, including the statement regarding the Company's anticipated second quarter and full year 2024 financial performance, the Company's differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: projections of revenue, expenses, profit, profit margins, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, Veralto's liquidity position or other financial measures; Veralto's management's plans and strategies for future operations, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof, divestitures, spin-offs, split-offs or other distributions, strategic opportunities, securities offerings, stock repurchases, dividends and executive compensation; the effects of the separation or the distribution on Veralto's business; growth, declines and other trends in markets Veralto sells into; new or modified laws, regulations and accounting pronouncements; future regulatory approvals and the timing thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future foreign currency exchange rates and fluctuations in those rates; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Veralto intends or believes will or may occur in the future. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2023 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the first quarter of 2024. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. VERALTO CORPORATION CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF EARNINGS ($ and shares in millions, except per share amounts) (unaudited) Three-Month Period Ended March 29, 2024 March 31, 2023 Sales $              1,246 $              1,225 Cost of sales (499) (517) Gross profit 747 708 Operating costs: Selling, general and administrative expenses (394) (360) Research and development expenses (60) (56) Operating profit 293 292 Nonoperating income (expense): Other income (expense), net (15) — Interest expense, net (28) — Earnings before income taxes 250 292 Income taxes (66) (67) Net earnings $                 184 $                 225 Net earnings per common share: Basic $                0.75 $                0.91 Diluted $                0.74 $                0.91 Average common stock and common equivalent shares outstanding: Basic 246.9 246.3 Diluted 248.8 246.3