Repligen Corporation (NASDAQ:RGEN), a life sciences company focused
on bioprocessing technology leadership, today reported financial
results for its fourth quarter of 2023, covering the three- and
twelve-month periods ended December 31, 2023. The company is also
providing financial guidance for the full year 2024.
Tony J. Hunt, Chief Executive Officer of Repligen said, “During
the fourth quarter, we again saw order strength, driven by our
Filtration and Analytics franchises and continued momentum from new
modality accounts, which reflects the differentiated nature of our
products in this market. We are pleased to report that for the
second quarter in a row, our book-to-bill ratio was above 1.0, at
1.03 for the fourth quarter. Revenue for the quarter came in as
expected with a nice contribution from Metenova of $5 million, very
much in-line with our expectations. While there are still
pockets of headwinds and challenging macro factors in China, we
remain optimistic that our markets will improve as we advance
through 2024, with growth accelerating in the second half of the
year.”
FOURTH QUARTER BUSINESS
HIGHLIGHTS
- Positive momentum in new modalities, inclusive of cell and gene
therapies, with fourth quarter revenue up 5% sequentially, and up
9% year-over-year
- Closed acquisition of mixing innovator Metenova AB, expanding
our Fluid Management offering; achieved revenue target of $5
million in the fourth quarter
- Launched TangenX® SC, the industry’s first holder-free,
self-contained Tangential Flow Filtration (TFF) device; a milestone
achievement in the advancement of downstream flat sheet TFF
technology for ultrafiltration and diafiltration (UF/DF)
- Strengthened our balance sheet through a private convertible
transaction of $600 million aggregate principal amount of 1.00%
convertible senior notes
- Published our Sustainability report “Making an Impact”,
highlighting the company’s progress across numerous environmental,
social and governance (ESG) initiatives
FINANCIAL PERFORMANCE
- Revenue. For Q4 2023, total revenue was $155.7
million, compared to $186.8 million for 2022. Base revenue
(non-GAAP) for Q4 2023 was $142.1 million, compared to $163.0
million for Q4 2022.For the full year 2023, total revenue was
$638.8 million, compared to $801.5 million for 2022. Base revenue
(non-GAAP) for 2023 was $599.1 million, compared to $660.5 million
for 2022.
- Gross profit. For
Q4 2023, our gross profit (GAAP) was $67.6 million compared to
$96.1 million for Q4 2022. Adjusted gross profit (non-GAAP) for Q4
2023 was $76.5 million compared to $96.1 million for Q4 2022. Gross
profit (GAAP) includes $7.7 million in one-time restructuring
charges, comprised primarily of inventory adjustments and including
asset relocation and severance costs.For the full year 2023, gross
profit (GAAP) was $284.8 million, compared to $455.7 million for
the full year 2022. Adjusted gross profit (non-GAAP) for the full
year 2023 was $316.5 million, compared to $456.9 million for
2022.
- (Loss) Income from
operations. For Q4 2023, loss from operations (GAAP) was
($0.9) million, compared to income from operations of $48.8 million
for Q4 2022. Adjusted income from operations (non-GAAP) for Q4 2023
was $18.8 million, compared to $41.1 million for Q4 2022.For the
full year 2023, income from operations (GAAP) was $54.6 million,
compared to $224.7 million for the full year 2022. Adjusted income
from operations (non-GAAP) for the full year 2023 was $94.3
million, compared to $232.2 million for 2022.
- Net (loss) income.
For Q4 2023, net loss (GAAP) was ($25.5) million, compared to net
income (GAAP) of $48.7 million for Q4 2022. Adjusted net income
(non-GAAP) for Q4 2023 was $18.8 million compared to $39.1 million
for Q4 2022.For the full year 2023, net income (GAAP) was $41.6
million, compared to $186.0 million for full year 2022. Adjusted
net income (non-GAAP) for 2023 was $98.4 million compared to $188.6
million for 2022.
- (Loss) Earnings per
share. For Q4 2023, loss per share (GAAP) was ($0.46) per
basic share and fully diluted basis, compared to $0.85 on a fully
diluted basis for Q4 2022. Adjusted earnings per share (non-GAAP)
for Q4 2023 was $0.33 on a fully diluted basis, compared to $0.68
for Q4 2022.For the full year 2023, earnings per share (GAAP) was
$0.74 on a fully diluted basis, compared to $3.24 for 2022.
Adjusted earnings per share (non-GAAP) for 2023 was $1.75 on a
fully diluted basis, compared to $3.28 for 2022.
MARGIN SUMMARY
GAAP Margins |
Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
Gross Margin |
43.4% |
51.4% |
44.6% |
56.9% |
Operating (EBIT) Margin |
(0.6%) |
26.1% |
8.5% |
28.0% |
Adjusted (non-GAAP) Margins |
Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
Gross Margin |
49.1% |
51.5% |
49.5% |
57.0% |
Operating (EBIT) Margin |
12.1% |
22.0% |
14.8% |
29.0% |
EBITDA Margin |
16.8% |
26.3% |
20.0% |
30.8% |
|
|
|
|
|
CASH POSITION
- Our cash, cash equivalents
and short-term investments at December 31, 2023, were
$751.3 million, compared to $623.8 million at December 31,
2022.
FINANCIAL GUIDANCE FOR FISCAL YEAR 2024
Our financial guidance for the fiscal year 2024 is based on
expectations for our existing business. Our GAAP and Adjusted
(non-GAAP) guidance includes the expected impact of businesses
acquired in 2023 (FlexBiosys and Metenova) and excludes the impact
of any potential business acquisitions in 2024, and future
fluctuations in foreign currency exchange rates.
|
CURRENT GUIDANCE(at February 21, 2024) |
FY 2024 |
GAAP |
Adjusted (non-GAAP) |
Total Reported Revenue |
$620M - $650M |
$620M - $650M |
Year-over-Year Change |
(3%) - 2% |
(3%) - 2% |
Base Revenue Growth |
- |
(1%) - 4% |
Gross Margin |
49% - 50% |
49% - 50% |
Income from Operations |
$33M - $38M |
$83M - $88M |
Operating Margin |
5% - 6% |
13% - 14% |
Other Income (Expense) |
$2M - $3M |
$18M - $19M |
Adjusted EBITDA Margin |
- |
18% - 19% |
Tax Rate on Pre-Tax Income |
26% |
21% |
Net Income |
$26M - $30M |
$80M - $84M |
Earnings Per Share - Diluted |
$0.46 - $0.53 |
$1.42 - $1.49 |
|
|
|
Our non-GAAP net income guidance for the fiscal
year 2024 reflects $54.2 million in adjustments, as referred to in
the non-GAAP reconciliation table included later in this press
release.
Conference Call and Webcast
Access
Repligen will host a conference call and webcast today, February
21, 2024, at 8:30 a.m. ET, to discuss fourth quarter 2023 financial
results, corporate developments and financial guidance for the year
2024. The conference call will be accessible by dialing toll-free
(844) 274-3999 for domestic callers or (412) 317-5607 for
international callers. No passcode is required for the live call.
In addition, a webcast will be accessible via the Investor
Relations section of the Company’s website. Both the conference
call and webcast will be archived for a period of time following
the live event. The replay dial-in numbers are (877) 344-7529 from
the U.S., (855) 669-9658 from Canada and (412) 317-0088 for
international callers. Replay listeners must provide the passcode
4526890.
About Repligen Corporation
Repligen Corporation is a global life sciences company that
develops and commercializes highly innovative bioprocessing
technologies and systems that enable efficiencies in the process of
manufacturing biological drugs. We are “inspiring advances in
bioprocessing” for the customers we serve; primarily
biopharmaceutical drug developers and contract development and
manufacturing organizations (CDMOs) worldwide. Our focus areas are
Filtration and Fluid Management, Chromatography, Process Analytics
and Proteins. Our corporate headquarters are located in Waltham,
Massachusetts, and the majority of our manufacturing sites are in
the U.S., with additional key sites in Estonia, France, Germany,
Ireland, the Netherlands and Sweden. For more information about the
company see our website at www.repligen.com, and follow us on
LinkedIn.
Non-GAAP Measures of Financial
Performance
To supplement our financial statements, which are presented on
the basis of U.S. generally accepted accounting principles (GAAP),
the following non-GAAP measures of financial performance are
included in this release: book-to-bill ratios, base business
revenue growth, adjusted gross profit, adjusted gross margin and
adjusted operating margin; adjusted cost of sales; adjusted R&D
expense; adjusted SG&A expense; adjusted pre-tax income;
adjusted income from operations; adjusted net income; adjusted
earnings per share-diluted; adjusted earnings before interest,
taxes, depreciation and amortization (EBITDA), and adjusted EBITDA
margin. The Company provides base revenue and base revenue growth
rates, which exclude COVID-related revenue, and the impact of
acquisition revenue for current year periods that have no prior
year comparables, to facilitate a comparison of its current revenue
performance. The Company provides the impact of foreign currency
translation, to enable determination of revenue growth rates at
constant currency, which exclude the impact of foreign currency
translation, in order to facilitate a comparison of its current
revenue performance to its past revenue performance. To calculate
the impact of foreign currency translation, the Company converts
actual net sales from local currency to U.S. dollars using constant
foreign currency exchange rates in the current and prior
period.
The Company’s non-GAAP financial results and/or non-GAAP
guidance exclude the impact of: inventory step-up charges;
acquisition and integration costs; restructuring charges including
the costs of severance; inventory adjustments and accelerated
depreciation among other charges; contingent consideration related
to the Company’s acquisitions; intangible amortization costs; loss
on extinguishment of debt; non-cash interest expense related to the
accretion of the debt discount; amortization of debt issuance costs
related to Company’s convertible debt; foreign currency impact of
certain intercompany loans; and, the related impact on tax of
non-GAAP charges. These costs are excluded because management
believes that such expenses do not have a direct correlation to
future business operations, nor do the resulting charges recorded
accurately reflect the performance of our ongoing operations for
the period in which such charges are recorded.
NOTE:All reconciliations of above GAAP figures (reported or
guidance) to adjusted (non-GAAP) figures are detailed in the tables
included later in this press release. When analyzing the Company’s
operating performance and guidance investors should not consider
non-GAAP measures as a substitute for the comparable financial
measures prepared in accordance with GAAP.
Forward-Looking Statement
This release contains forward-looking statements, which are made
pursuant to and in reliance upon the safe harbor provisions of
federal securities laws, including the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Investors are cautioned that
statements in this release which are not strictly historical
statements, including, among others; any express or implied
statements or guidance regarding current or future financial
performance and position, including our year 2024 financial
guidance and related assumptions; expected demand in the markets in
which we operate (including the belief that such markets will
improve and the impact of such improvement on our business); the
expected performance of our business; planned efficiencies and
results from our restructuring and rebalancing activities; the
expected performance and success of our strategic partnerships and
integration of our acquired businesses, constitute forward-looking
statements identified by words like “believe,” “expect,” “may,”
“will,” “should,” “seek,” “anticipate,” “projected,” “estimated” or
“could” and similar expressions. Forward-looking statements are
neither historical facts nor assurances of future performance.
Because forward-looking statements relate to the future, they are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those anticipated,
including, risks associated with our restructuring activities and
our ability to successfully rebalance our organization; our ability
to successfully grow our bioprocessing business; our ability to
manage through and predict headwinds, including to achieve our
adjusted 2024 financial guidance; our ability to develop and
commercialize products and the market acceptance of our products;
our ability to successfully integrate any acquired businesses
(including Metenova and FlexBiosys) into our business and achieve
the expected benefits of such acquisitions; that demand for our
products could continue to decline, which could adversely impact
our future revenues, cash flows, results of operations and
financial condition; our ability to compete with larger, better
financed bioprocessing, pharmaceutical and biotechnology companies;
our compliance with all U.S. Food and Drug Administration and
European Medicines Evaluation Agency regulations; the lasting
effects of COVID-19 on our business operations and the operations
of our customers and suppliers; our volatile stock price; and other
risks detailed in Repligen’s filings with the U.S. Securities and
Exchange Commission (the Commission), including Annual Report on
Form 10-K for the year ended December 31, 2022 and in subsequently
filed reports with the Commission, including our Quarterly Reports
on Form 10-Q and current reports on Form 8-K, as well as our
upcoming Annual Report on Form 10-K for the year ended December 31,
2023. Actual results may differ materially from those Repligen
contemplated by these forward-looking statements; therefore, you
should not rely on any of these forward-looking statements. These
forward-looking statements reflect management’s current views,
expectations, and assumptions regarding the future of our business,
future plans and strategies, projections, anticipated events and
trends, the economy and other future conditions, and are based only
on information currently available to us. Repligen does not
undertake to update, whether written or oral, any of these
forward-looking statements to reflect a change in its views or
events or circumstances, whether as a result of new information,
future development or otherwise, that occur after the date hereof
except as required by law.
Repligen Contact: Sondra S. NewmanGlobal Head
of Investor Relations(781) 419-1881investors@repligen.com
|
REPLIGEN
CORPORATION |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited,
amounts in thousands, except share and per share
data) |
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
Product revenue |
$ |
155,471 |
|
|
$ |
186,515 |
|
|
$ |
638,381 |
|
|
$ |
801,183 |
|
Royalty and other revenue |
|
272 |
|
|
|
247 |
|
|
|
383 |
|
|
|
353 |
|
Total revenue |
|
155,743 |
|
|
|
186,762 |
|
|
|
638,764 |
|
|
|
801,536 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
Cost of product revenue |
|
88,136 |
|
|
|
90,700 |
|
|
|
353,922 |
|
|
|
345,830 |
|
Research and development |
|
10,285 |
|
|
|
11,113 |
|
|
|
42,722 |
|
|
|
43,936 |
|
Selling, general and administrative |
|
57,512 |
|
|
|
53,237 |
|
|
|
218,113 |
|
|
|
215,829 |
|
Contingent consideration |
|
697 |
|
|
|
(17,125 |
) |
|
|
(30,569 |
) |
|
|
(28,729 |
) |
|
|
156,630 |
|
|
|
137,925 |
|
|
|
584,188 |
|
|
|
576,866 |
|
(Loss)
Income from operations |
|
(887 |
) |
|
|
48,837 |
|
|
|
54,576 |
|
|
|
224,670 |
|
Investment
income |
|
6,023 |
|
|
|
4,016 |
|
|
|
24,135 |
|
|
|
6,978 |
|
Interest
expense |
|
(1,138 |
) |
|
|
(270 |
) |
|
|
(1,951 |
) |
|
|
(1,162 |
) |
Loss on
extinguishment of debt |
|
(12,676 |
) |
|
|
- |
|
|
|
(12,676 |
) |
|
|
- |
|
Amortization
of debt issuance costs* |
|
(6,702 |
) |
|
|
(455 |
) |
|
|
(8,075 |
) |
|
|
(1,815 |
) |
Other income
(expenses), net |
|
6,623 |
|
|
|
858 |
|
|
|
8,123 |
|
|
|
(9,531 |
) |
(Loss)
income before income taxes |
|
(8,757 |
) |
|
|
52,986 |
|
|
|
64,132 |
|
|
|
219,140 |
|
Income tax
provision |
|
16,731 |
|
|
|
4,257 |
|
|
|
22,555 |
|
|
|
33,181 |
|
Net (loss)
income |
$ |
(25,488 |
) |
|
$ |
48,729 |
|
|
$ |
41,577 |
|
|
$ |
185,959 |
|
(Loss)
earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.46 |
) |
|
$ |
0.88 |
|
|
$ |
0.75 |
|
|
$ |
3.35 |
|
Diluted* |
$ |
(0.46 |
) |
|
$ |
0.85 |
|
|
$ |
0.74 |
|
|
$ |
3.24 |
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
55,815,666 |
|
|
|
55,542,248 |
|
|
|
55,719,860 |
|
|
|
55,460,232 |
|
Diluted* |
|
55,815,666 |
|
|
|
57,105,172 |
|
|
|
56,377,319 |
|
|
|
57,455,275 |
|
|
|
|
|
|
|
|
|
*Under ASU 2020-06,
the Company is required to reflect the dilutive effect of the 2019
Notes by application of the if-converted method. Prior to filing
the Second Supplemental Indenture on March 4, 2022, the Company had
the option to settle the conversion of the 2019 Notes in cash,
stock or a combination of the two. Therefore, from January 1, 2022
(the date the Company adopted ASU 2020-06) to March 4, 2022, the
Company included 3,474,429 shares in the denominator of the
weighted average twelve months ended December 31, 2022 diluted EPS
calculation. Subsequent to March 4, 2022, after the Second
Supplemental Indenture became effective, the Company irrevocably
elected to settle the conversion principal in cash and only the
premium in shares of the Company's common stock. Therefore, from
March 5, 2022 to March 31, 2022 the Company included 980,525 shares
in the denominator of the weighted average twelve months ended
December 31, 2022 diluted EPS calculation. Under the if-converted
method, the Company was also required to exclude amortization of
debt issuance cost and interest charges applicable to the
convertible debt from the numerator of the diluted EPS calculation
for the period from January 1, 2022 to March 4, 2022, assuming the
interest on convertible debt was never recognized for that period.
For the twelve months ended December 31, 2022 the Company excluded
amortization of debt issuance costs and interest charges for the
period January 1, 2022 to March 4, 2022 of $0.4 million (tax
effected) from the numerator. |
|
|
|
|
|
|
|
|
Balance Sheet Data: |
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
Cash, cash
equivalents and marketable securities |
$ |
751,323 |
|
|
$ |
623,757 |
|
|
|
|
|
Working
capital |
|
952,881 |
|
|
|
593,922 |
|
|
|
|
|
Total
assets |
|
2,824,411 |
|
|
|
2,524,658 |
|
|
|
|
|
Long-term
obligations |
|
695,046 |
|
|
|
209,762 |
|
|
|
|
|
Accumulated
earnings |
|
438,849 |
|
|
|
397,272 |
|
|
|
|
|
Stockholders' equity |
|
1,971,203 |
|
|
|
1,910,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REPLIGEN CORPORATION |
RECONCILIATIONS OF GAAP to NON-GAAP FINANCIAL
MEASURES |
(Unaudited, amounts in thousands, except percentage and per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Revenue Growth to Organic
Revenue Growth (Non-GAAP) |
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPORTED REVENUE GROWTH |
|
(17%) |
|
|
|
(20%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Acquisition Growth |
|
3% |
|
|
|
1% |
|
|
|
|
|
|
|
|
|
Less: Currency Exchange |
|
1% |
|
|
|
0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORGANIC REVENUE GROWTH (NON-GAAP) |
|
(21%) |
|
|
|
(21%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Revenue (GAAP) to Base Revenue
(Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
% Change |
|
Twelve Months Ended December 31, |
|
% Change |
|
2023 |
|
2022 (2) |
|
2023 v 2022 |
|
2023 |
|
2022 (2) |
|
2023 v 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP TOTAL REVENUE |
$ |
155,743 |
|
|
$ |
186,762 |
|
|
(17 |
%) |
|
$ |
638,764 |
|
|
$ |
801,536 |
|
|
(20 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
COVID Revenue |
|
(8,007 |
) |
|
|
(23,802 |
) |
|
(66 |
%) |
|
|
(32,216 |
) |
|
|
(141,067 |
) |
|
(77 |
%) |
Inorganic M&A |
|
(5,670 |
) |
|
|
- |
|
|
100 |
% |
|
|
(7,433 |
) |
|
|
- |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
BASE REVENUE (NON-GAAP) (1) |
$ |
142,066 |
|
|
$ |
162,960 |
|
|
(13 |
%) |
|
$ |
599,115 |
|
|
$ |
660,469 |
|
|
(9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP (Loss) Income from Operations to
Adjusted Income from Operations (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
GAAP (LOSS) INCOME FROM OPERATIONS |
$ |
(887 |
) |
|
$ |
48,837 |
|
|
$ |
54,576 |
|
|
$ |
224,670 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO (LOSS) INCOME FROM OPERATIONS: |
|
|
|
|
|
|
|
|
Inventory step-up charges |
|
1,238 |
|
|
|
- |
|
|
|
1,238 |
|
|
|
- |
|
|
Acquisition and integration costs |
|
934 |
|
|
|
2,111 |
|
|
|
5,861 |
|
|
|
9,253 |
|
|
Restructuring costs(3) |
|
8,188 |
|
|
|
- |
|
|
|
32,200 |
|
|
|
- |
|
|
Contingent consideration |
|
697 |
|
|
|
(17,125 |
) |
|
|
(30,569 |
) |
|
|
(28,729 |
) |
|
Intangible amortization |
|
8,651 |
|
|
|
7,304 |
|
|
|
30,981 |
|
|
|
27,016 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED INCOME FROM OPERATIONS (NON-GAAP) |
$ |
18,821 |
|
|
$ |
41,127 |
|
|
$ |
94,287 |
|
|
$ |
232,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net (Loss) Income to Adjusted Net
Income (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
GAAP NET (LOSS) INCOME |
$ |
(25,488 |
) |
|
$ |
48,729 |
|
|
$ |
41,577 |
|
|
$ |
185,959 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO NET (LOSS) INCOME: |
|
|
|
|
|
|
|
|
Inventory step-up charges |
|
1,238 |
|
|
|
- |
|
|
|
1,238 |
|
|
|
- |
|
|
Acquisition and integration costs |
|
934 |
|
|
|
2,111 |
|
|
|
5,861 |
|
|
|
9,514 |
|
|
Restructuring costs(3) |
|
8,188 |
|
|
|
- |
|
|
|
32,200 |
|
|
|
- |
|
|
Contingent consideration |
|
697 |
|
|
|
(17,125 |
) |
|
|
(30,569 |
) |
|
|
(28,729 |
) |
|
Intangible amortization |
|
8,651 |
|
|
|
7,304 |
|
|
|
30,981 |
|
|
|
27,016 |
|
|
Loss on extinguishment of debt |
|
12,676 |
|
|
|
- |
|
|
|
12,676 |
|
|
|
- |
|
|
Non-cash interest expense |
|
620 |
|
|
|
- |
|
|
|
620 |
|
|
|
- |
|
|
Amortization of debt issuance costs(4) |
|
6,702 |
|
|
|
455 |
|
|
|
8,075 |
|
|
|
1,815 |
|
|
Foreign currency impact of certain intercompany loans (5) |
|
(7,743 |
) |
|
|
- |
|
|
|
(7,743 |
) |
|
|
- |
|
|
Tax effect of non-GAAP charges |
|
12,278 |
|
|
|
(2,402 |
) |
|
|
3,485 |
|
|
|
(7,002 |
) |
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME (NON-GAAP) |
$ |
18,753 |
|
|
$ |
39,072 |
|
|
$ |
98,401 |
|
|
$ |
188,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP (Loss) Earnings Per Share to
Adjusted Earnings Per Share (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
GAAP (LOSS) EARNINGS PER SHARE - DILUTED(6) |
$ |
(0.46 |
) |
|
$ |
0.85 |
|
|
$ |
0.74 |
|
|
$ |
3.24 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO (LOSS) EARNINGS PER SHARE - DILUTED: |
|
|
|
|
|
|
|
|
Inventory step-up charges |
|
0.02 |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
|
Acquisition and integration costs |
|
0.02 |
|
|
|
0.04 |
|
|
|
0.10 |
|
|
|
0.17 |
|
|
Restructuring costs(3) |
|
0.15 |
|
|
|
- |
|
|
|
0.57 |
|
|
|
- |
|
|
Contingent consideration |
|
0.01 |
|
|
|
(0.30 |
) |
|
|
(0.54 |
) |
|
|
(0.50 |
) |
|
Intangible amortization |
|
0.15 |
|
|
|
0.13 |
|
|
|
0.55 |
|
|
|
0.47 |
|
|
Loss on extinguishment of debt |
|
0.22 |
|
|
|
- |
|
|
|
0.22 |
|
|
|
- |
|
|
Non-cash interest expense |
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
Amortization of debt issuance costs(4) |
|
0.12 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.03 |
|
|
Foreign currency impact of certain intercompany loans (5) |
|
(0.14 |
) |
|
|
- |
|
|
|
(0.14 |
) |
|
|
- |
|
|
Tax effect of non-GAAP charges |
|
0.22 |
|
|
|
(0.04 |
) |
|
|
0.06 |
|
|
|
(0.12 |
) |
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE (NON-GAAP) - DILUTED(6) |
$ |
0.33 |
|
|
$ |
0.68 |
|
|
$ |
1.75 |
|
|
$ |
3.28 |
|
|
|
|
|
|
|
|
|
|
Totals may not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA
(Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
GAAP NET (LOSS) INCOME |
$ |
(25,488 |
) |
|
$ |
48,729 |
|
|
$ |
41,577 |
|
|
$ |
185,959 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS: |
|
|
|
|
|
|
|
|
Investment income |
|
(6,023 |
) |
|
|
(4,016 |
) |
|
|
(24,135 |
) |
|
|
(6,978 |
) |
|
Interest expense |
|
1,138 |
|
|
|
270 |
|
|
|
1,951 |
|
|
|
1,162 |
|
|
Amortization of debt issuance costs |
|
6,702 |
|
|
|
455 |
|
|
|
8,075 |
|
|
|
1,815 |
|
|
Income tax (benefit) provision |
|
16,731 |
|
|
|
4,257 |
|
|
|
22,555 |
|
|
|
33,181 |
|
|
Depreciation |
|
8,464 |
|
|
|
7,049 |
|
|
|
36,994 |
|
|
|
23,859 |
|
|
Intangible amortization(7) |
|
8,679 |
|
|
|
7,331 |
|
|
|
31,091 |
|
|
|
27,126 |
|
EBITDA |
|
10,203 |
|
|
|
64,075 |
|
|
|
118,108 |
|
|
|
266,124 |
|
|
|
|
|
|
|
|
|
|
OTHER ADJUSTMENTS: |
|
|
|
|
|
|
|
|
Inventory step-up charges |
|
1,238 |
|
|
|
- |
|
|
|
1,238 |
|
|
|
- |
|
|
Acquisition and integration costs |
|
934 |
|
|
|
2,111 |
|
|
|
5,861 |
|
|
|
9,514 |
|
|
Restructuring (3)(8) |
|
8,188 |
|
|
|
- |
|
|
|
28,384 |
|
|
|
- |
|
|
Contingent consideration |
|
697 |
|
|
|
(17,125 |
) |
|
|
(30,569 |
) |
|
|
(28,729 |
) |
|
Loss on extinguishment of debt |
|
12,676 |
|
|
|
- |
|
|
|
12,676 |
|
|
|
- |
|
|
Foreign currency impact of certain intercompany loans (5) |
|
(7,743 |
) |
|
|
- |
|
|
|
(7,743 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA (NON-GAAP) |
$ |
26,193 |
|
|
$ |
49,061 |
|
|
$ |
127,955 |
|
|
$ |
246,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Cost of Sales to Adjusted Cost of
Sales (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
GAAP COST OF SALES |
$ |
88,136 |
|
|
$ |
90,700 |
|
|
$ |
353,922 |
|
|
$ |
345,830 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO COST OF SALES: |
|
|
|
|
|
|
|
|
Inventory step-up charges |
|
(1,238 |
) |
|
|
- |
|
|
|
(1,238 |
) |
|
|
- |
|
|
Acquisition and integration costs |
|
(6 |
) |
|
|
(33 |
) |
|
|
(39 |
) |
|
|
(1,234 |
) |
|
Restructuring(3) |
|
(7,675 |
) |
|
|
- |
|
|
|
(30,386 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
ADJUSTED COST OF SALES (NON-GAAP) |
$ |
79,217 |
|
|
$ |
90,667 |
|
|
$ |
322,259 |
|
|
$ |
344,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP R&D Expense to Adjusted R&D
Expense (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
GAAP R&D EXPENSE |
$ |
10,285 |
|
|
$ |
11,113 |
|
|
$ |
42,722 |
|
|
$ |
43,936 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO R&D EXPENSE: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
(2 |
) |
|
|
(92 |
) |
|
|
5 |
|
|
|
(658 |
) |
|
Restructuring(3) |
|
(81 |
) |
|
|
- |
|
|
|
(116 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
ADJUSTED R&D EXPENSE (NON-GAAP) |
$ |
10,202 |
|
|
$ |
11,021 |
|
|
$ |
42,611 |
|
|
$ |
43,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP SG&A Expense to Adjusted
SG&A Expense (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
GAAP SG&A EXPENSE |
$ |
57,512 |
|
|
$ |
53,237 |
|
|
$ |
218,113 |
|
|
$ |
215,829 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO SG&A EXPENSE: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
(925 |
) |
|
|
(1,986 |
) |
|
|
(5,826 |
) |
|
|
(7,361 |
) |
|
Restructuring(3) |
|
(432 |
) |
|
|
- |
|
|
|
(1,698 |
) |
|
|
- |
|
|
Intangible amortization |
|
(8,651 |
) |
|
|
(7,304 |
) |
|
|
(30,981 |
) |
|
|
(27,016 |
) |
|
|
|
|
|
|
|
|
|
ADJUSTED SG&A EXPENSE (NON-GAAP) |
$ |
47,504 |
|
|
$ |
43,947 |
|
|
$ |
179,608 |
|
|
$ |
181,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Income Guidiance to Adjusted Net
Income (Non-GAAP) Guidance |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ending December 31, 2024 |
|
|
|
|
|
|
Low End |
|
High End |
GUIDANCE ON GAAP NET INCOME |
|
|
|
|
$ |
26,000 |
|
|
$ |
30,000 |
|
ADJUSTMENTS TO GUIDANCE ON NET INCOME: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
|
|
|
|
4,672 |
|
|
|
4,672 |
|
|
Non-cash interest expense |
|
|
|
|
|
13,745 |
|
|
|
13,745 |
|
|
Anticipated pre-tax amortization of acquisition-related intangible
assets |
|
|
|
|
|
34,617 |
|
|
|
34,617 |
|
|
Amortization of debt issuance costs |
|
|
|
|
|
1,887 |
|
|
|
1,887 |
|
|
Contingent consideration |
|
|
|
|
|
11,000 |
|
|
|
11,000 |
|
|
Tax effect of non-GAAP charges |
|
|
|
|
|
(11,751 |
) |
|
|
(11,751 |
) |
|
Guidance rounding adjustment |
|
|
|
|
|
(170 |
) |
|
|
(170 |
) |
|
|
|
|
|
|
|
|
|
GUIDANCE ON ADJUSTED NET INCOME (NON-GAAP) |
|
|
|
|
$ |
80,000 |
|
|
$ |
84,000 |
|
|
|
|
|
|
|
|
|
|
Totals may not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Earnings Per Share Guidance to
Adjusted Earnings Per Share (Non-GAAP) Guidance |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ending December 31, 2024 |
|
|
|
|
|
|
Low End |
|
High End |
GUIDANCE ON EARNINGS PER SHARE - DILUTED |
|
|
|
|
$ |
0.46 |
|
|
$ |
0.53 |
|
ADJUSTMENTS TO GUIDANCE ON EARNINGS PER SHARE - DILUTED: |
|
|
|
|
|
|
|
Acquisition and integration costs |
|
|
|
|
|
0.08 |
|
|
|
0.08 |
|
|
Non-cash interest expense |
|
|
|
|
|
0.24 |
|
|
|
0.24 |
|
|
Anticipated pre-tax amortization of acquisition-related intangible
assets |
|
|
|
|
|
0.61 |
|
|
|
0.61 |
|
|
Amortization of debt issuance costs |
|
|
|
|
|
0.03 |
|
|
|
0.03 |
|
|
Contingent consideration |
|
|
|
|
|
0.19 |
|
|
|
0.19 |
|
|
Tax effect of non-GAAP charges |
|
|
|
|
|
(0.21 |
) |
|
|
(0.21 |
) |
|
Guidance rounding adjustment |
|
|
|
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
|
|
|
|
|
|
|
GUIDANCE ON ADJUSTED EARNINGS PER SHARE (NON-GAAP) - DILUTED |
|
|
|
$ |
1.42 |
|
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
|
Totals may not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES FOR ALL TABLES ABOVE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Base revenue excludes COVID-related revenue and excludes
acquisition-related revenue contribution in current periods for
which there was no prior year comparables. |
|
|
|
|
|
|
|
|
|
(2) |
Prior year acquisition revenue moved to "Base" for current year vs.
prior year comparative purposes. |
|
|
|
|
|
|
|
|
|
(3) |
In July 2023, we began restructuring activities to simplify and
streamline our organization and strengthen the overall
effectiveness of our operations. In addition to the initial efforts
contemplated in July, the Company continued further restructuring
activities during the three months ended December 31, 2023. These
activities in the fourth quarter primarily included the adjustment
of finished goods and raw material inventory balances down to their
net realizable value from continued evaluation of the analyses
started in the third quarter, such as shelf-life stability tests.
Where demand has reduced, the value of this inventory, mostly
secured during the COVID-19 period, exceeded the projected
requirements to be used before reaching their expiration date. In
addition, restructuring activities included costs related to the
consolidation of a portion of our manufacturing facilities between
certain U.S. locations and severance & employee related
costs. |
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(4) |
The twelve months ended December 31, 2022 represented amortization
of debt issuance costs for the period April 1, 2022 to December 31,
2022 in addition to the amortization of debt issuance costs for the
period March 5, 2022 to March 31, 2022 after the Second
Supplemental Indenture was filed. Debt issuance cost for the period
January 1, 2022 to March 4, 2022 were already reflected in the GAAP
net income per share - diluted EPS under the if-converted method of
calculating diluted EPS for the twelve months ended December 31,
2022. |
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(5) |
During the fourth quarter of 2023 we recorded foreign currency
gains on certain intercompany loans of $7,743. The impact was
recorded to the Other income (expenses), net line item within the
Condensed Consolidated Statements of Operations. |
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(6) |
GAAP loss per share - diluted for the three months ended December
31, 2023, was determined excluding the effect of 626,847 shares of
dilutive shares as the impact of such shares would have been
antidilutive due to the net loss for the period, while the adjusted
earnings per share - diluted for the same period was determined
based upon diluted shares of 56,442,512 shares. |
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(7) |
Includes amortization of milestone payments in accordance with GAAP
of $28 for the three months ended December 31, 2023 and 2022 and
$111 for the twelve months ended December 31, 2023 and 2022. |
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(8) |
Excludes $3,816 of accelerated depreciation related to the
Restructuring Plan for the twelve months ended December 31, 2023.
This amount is included in the depreciation line item of this
table. |
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