Committed to Divesting Stirling Ultracold and
Custom Biogenic Systems by End of 2023
Conference call begins at 4:30 p.m. Eastern time today
BOTHELL,
Wash., Aug. 8,
2023 /PRNewswire/ -- BioLife Solutions, Inc. (Nasdaq:
BLFS) ("BioLife" or the "Company"), a leading supplier of
class-defining bioproduction tools and services for the cell and
gene therapy (CGT) and broader biopharma markets, today announced
financial results for the second quarter and six months of
2023 and updated guidance for the full year 2023. Management
is also providing a first half 2023 financial profile of certain
pro forma financial metrics excluding Stirling Ultracold (Stirling)
and Custom Biogenic Systems (CBS) freezer assets, both of which
management intends to divest by December 31,
2023.
Mike Rice, Chairman and CEO,
commented, "Subsequent to the end of the second quarter 2023, after
considering other strategic alternatives, management and the board
of directors have determined that divesting our Stirling and CBS
freezer assets would optimize the performance of our product
portfolio by focusing on recurring higher margin streams and create
the most shareholder value. We made significant progress to
achieve this objective and based on the level of interest and the
feedback we have received so far; we are fully committed to
starting 2024 without the impact of the freezer product
lines. We continue to appreciate the value of the related IP,
products and teams, and believe a buyer or buyers will materialize
that can continue to provide global access to these innovative
products in a cost structure that fits their financial
requirements."
Management anticipates reclassifying the freezer product lines
as Assets Held for Sale and Discontinued Operations in the second
half of 2023 when the accounting criteria are met.
To assist investors with understanding the positive impacts of
these potential divestitures, the Company is now providing certain
unaudited pro forma financial information had the divestitures
occurred on January 1, 2023. This
unaudited pro forma financial information is presented for
informational purposes only and is not intended to represent or be
indicative of the results had the divestiture occurred at an
earlier date and should not be taken as representative of our
future consolidated results of operations or financial
condition. Preparation of this certain unaudited pro forma
financial information required management to make certain judgments
and estimates to determine the adjustments based on information
currently available, which is subject to management's ongoing
process as part of the divestiture transaction. Actual results may
differ from the assumptions used to present this certain unaudited
pro forma financial information.
The following table illustrates BioLife's financial results for
the first half of 2023 excluding revenues and costs associated with
our freezer assets.
|
Reported
Results
|
|
Pro Forma Results
Excluding Freezers
|
|
Q2 2023 YTD
|
|
Q2 2023 YTD
|
Revenue
|
$
77,210
|
|
$
51,548
|
Gross Margin
|
32 %
|
|
48 %
|
Adjusted Gross
Margin
|
35 %
|
|
52 %
|
Adjusted
EBITDA(1)
|
$
(2,247)
|
|
$
8,216 - 9,216
|
Adjusted EBITDA
%(1)
|
4 %
|
|
16 - 18 %
|
|
(1)Adjusted EBITDA
(non-GAAP) for the pro forma results excluding freezers was
calculated utilizing certain estimates and judgments by management
utilizing the most updated information available at this time.
Given that estimated results may vary, a range of Adjusted EBITDA
as a percentage of revenue was provided. Due to the level of
estimation required, actual results may differ from assumptions
used to present this pro forma information.
|
Mike Rice, Chairman and CEO,
further commented, "We are confident the portfolio of high value
recurring products and services, and expected strong resulting
financial profile, after the divestiture of the freezer businesses,
will better align BioLife to the attractive growth and
profitability opportunities for a key supplier to the CGT industry.
We sell critical CGT products that are sole-sourced from BioLife.
These are not one-time buys but rather consumables that need to be
replenished. We have a strong brand and track record with limited
competitive substitutes. Our CGT customers participate in an
emerging class of therapeutic modalities that are just now becoming
real, and we naturally expect demand for our products to increase
as they progress their programs. The reality is just that
right now, the economy is tighter, and the participants in this
ecosystem all want to reduce cash burn."
Sustained catalysts that we expect to drive BioLife growth due
to a significant increase in the number of manufactured doses
include:
- Approvals of new cell and gene therapies
- Additional approvals of commercial CGT in new geographies
- Additional approvals of CGT in new indications
- Migration of commercial therapies to first or second-line
treatment
- An eventual transition to allogeneic therapies
In the near term, results continue to be impacted by constraints
pressuring the broader bioprocessing sector including the following
factors:
- Macro headwinds of global economic uncertainty causing reduced
biotech spending across our customer base not only for capital
equipment but also consumables. We believe these are more
transitory, and similar to the outlooks of our bioprocessing peers,
anticipate a recovery in 2024 as customer supply chain dynamics
improve.
- Cell processing revenue concentration and lumpiness caused
by:
-
- Destocking by our largest direct customer compared to prior
year period.
- Slowed growth from our largest distributor compared to prior
period, caused by several of their downstream clinical customers
having to complete validation of a new media product final
container we introduced to mitigate supply chain shortages.
- Several clinical CGT customers' reduced spending due to reduced
clinical trial activity (trial early termination, pauses between
phases and delayed patient enrollment).
- Manufacturing bottlenecks at some CGT customers or their
related CMOs due to capacity constraints and/or shortages of raw
materials from other suppliers.
Troy Wichterman, Chief Financial Officer, commented, "While near
term results are disappointing, we remain confident in the mid- and
long-term growth potential for BioLife and our ability to generate
cash flows from operations post our freezer divestitures."
Second Quarter 2023 Customer
Highlights
New Customer Acquisition
Platform/Solution
|
Q1
2023
|
Q2
2023
|
1H2023
|
FY2022
|
Biopreservation
Media
|
9
|
19
|
28
|
69
|
Sexton Cell
Processing
|
8
|
10
|
18
|
33
|
SciSafe® Storage
Services
|
22
|
21
|
43
|
99
|
Thaw
|
5
|
6
|
11
|
35
|
evo® Cold
Chain
|
17
|
17
|
34
|
43
|
Cryogenic
Freezers
|
15
|
13
|
28
|
82
|
ULT Freezers
|
121
|
102
|
223
|
461
|
TOTAL
|
197
|
188
|
385
|
822
|
- Gained nearly 200 new customers.
- Processed 20 new USA Master
File cross references for our cell processing solutions. We
estimate that over 800 total global clinical applications have our
BioLife Solutions or Sexton cell processing solutions embedded in
their manufacturing processes.
- evo cold chain management shipments of cell and gene therapies
totaled 3,019 in Q2 2023
Second Quarter 2023 Financial
Results
BioLife Solutions is presenting various financial metrics under
U.S. Generally Accepted Accounting Principles (GAAP) and as
adjusted (non-GAAP). A reconciliation of GAAP to non-GAAP metrics
appears at the end of this news release.
REVENUE
- Total revenue for the second quarter of 2023 was $39.5 million, a decrease of $1.0 million, or 3%, from $40.5 million for the second quarter of 2022.
There was no COVID-19 related revenue in the second quarter of
2023. Ex-COVID related revenue growth for the second quarter of
2023 was 7%.
-
- Cell Processing platform revenue was $18.7 million, up $3.3
million, or 22%, over the same period in 2022.
Biopreservation media growth was 21%.
- Freezers and Thaw Systems platform revenue was $13.9 million, down $4.8
million, or 26%, over the same period in 2022. Ex-COVID
related revenue was down $4.1
million, or 23%, over the same period in 2022.
- Storage and Storage Services platform revenue was $6.9 million, up $0.4
million, or 7%, over the same period in 2022. Ex-COVID
related revenue growth was $3.4
million, or 94%, over the same period in 2022.
- Total revenue for the six months ended June 30, 2023 was $77.2
million, an increase of 1% from $76.8
million for 2022. There was no COVID-19 related revenue in
the six months ended June 30, 2023.
Ex-COVID related revenue growth for the second quarter of 2023 was
11%.
-
- Cell Processing platform revenue was $37.7 million, up $7.4
million, or 24%, over the same period in 2022.
Biopreservation media growth was 24%.
- Freezers and Thaw Systems platform revenue was $26.9 million, down $7.1
million, or 21%, over the same period in 2022. Ex-COVID
related revenue was down $5.9
million, or 18%, over the same period in 2022.
- Storage and Storage Services platform revenue was $12.6 million, up $0.1
million, or 1%, over the same period in 2022. Ex-COVID
related revenue growth was $6.2
million, or 96%, over the same period in 2022.
GROSS MARGIN
- Gross margin (GAAP) for the second quarter of 2023 was 28%
compared with 33% for the second quarter of 2022. Adjusted gross
margin (non-GAAP) for the second quarter of 2023 was 35% compared
with 36% for the second quarter of 2022.
- Gross margin (GAAP) for the six months ended June 30, 2023 was 32% compared with 31% for the
six months ended 2022. Adjusted gross margin (non-GAAP) for the six
months ended June 30, 2023 was 36%
compared with 34% for the first six months ended of 2022.
- The decrease in gross margin for the second quarter of 2023 was
primarily due to increases in personnel expenses and an inventory
reserve related to potentially unusable final product containers
from a key supplier. The increase in gross margin for the six
months ended June 30, 2023 was
primarily due to a favorable product mix in our biopreservation
media product line and a greater concentration of higher margin
revenue as a percentage of total revenue in comparison to the same
period in 2022.
OPERATING EXPENSE
- Operating expense (GAAP) for the second quarter of 2023 was
$54.8 million compared with
$117.1 million for the second quarter
of 2022. Adjusted operating expense (non-GAAP) for the second
quarter of 2023 was $22.2 million
compared with $20.3 million for the
second quarter 2022.
- Operating expense (GAAP) for the six months ended June 30, 2023 was $106.1
million compared with $161.3
million for the six months ended 2022. Adjusted operating
expense (non-GAAP) for the six months ended June 30, 2023 was $46.8
million compared with $40.4
million for 2022.
- The decrease in GAAP operating expenses is primarily due to the
$69.9 million intangible asset
impairment charge that occurred in Q2 2022. The increase in
non-GAAP operating expenses for the three and six months ended of
June 30, 2023 was primarily due to
increases in professional services fees and employee compensation
costs from an increase in headcount compared to the prior
year.
OPERATING LOSS
- Operating loss (GAAP) for the second quarter of 2023 was
$15.3 million compared with
$76.6 million for the second quarter
of 2022. Adjusted operating loss (non-GAAP) for the second quarter
of 2023 was $10.4 million compared
with $5.7 million for the second
quarter of 2022.
- Operating loss (GAAP) for the six months ended June 30, 2023 was $28.9
million compared with $84.5
million for the six months ended 2022. Adjusted operating
loss (non-GAAP) for the six months ended June 30, 2023 was $21.0
million compared with $14.1
million for the first six months ended of 2022.
NET LOSS
- Net loss (GAAP) for the second quarter of 2023 was $10.2 million compared with $72.9 million for the second quarter of 2022.
Adjusted net loss (non-GAAP) for the second quarter of 2023 was
$10.4 million compared with
$5.8 million for the second quarter
of 2022.
- Net loss (GAAP) for the six months ended June 30, 2023 was $23.9
million compared with $80.3
million for the six months ended 2022. Adjusted net loss
(non-GAAP) for the six months ended June 30,
2023 was $21.0 million
compared with $14.2 million for the
first six months ended of 2022.
LOSS PER SHARE
- Loss per share (GAAP) for the second quarter of 2023 was
$0.23 compared with loss per share of
$1.72 for the second quarter of
2022.
- Loss per share (GAAP) for the six months ended June 30, 2023 was $0.55 compared with loss per share of
$1.90 for the first six months ended
of 2022.
ADJUSTED EBITDA
- Adjusted EBITDA, a non-GAAP measure, for the second quarter of
2023 was negative $1.2 million
compared with $1.2 million for the
second quarter of 2022.
- Adjusted EBITDA, a non-GAAP measure, for the six months ended
June 30, 2023 was negative
$2.2 million compared with
$44,000 for the first six months
ended of 2022.
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
- Cash, cash equivalents, and marketable securities as of
June 30, 2023, were $48.1 million.
2023 Revenue Guidance
BioLife Solutions is updating 2023 revenue guidance, which is
based on expectations for its existing business.
Total revenue for 2023 is expected to range from $144 million to $158
million, reflecting a year-over-year decrease of 11% to 2%.
Excluding COVID-19-related revenue, this range reflects a
year-over-year decrease of 3% to an increase of 6%.
Expectations for 2023 total revenue include the following
platform contributions:
- Cell processing platform: $65.0
million to $74.0 million, a
decrease of 5% to an increase of 8% over 2022. Previous guidance
estimated revenues to be $89.0 -
$93.0 million.
- Freezers and Thaw Systems platform: $53.0 million to $56.0
million, an decrease of 21% to 16% compared to 2022.
Excluding COVID-19-related revenue, year-over-year decrease of 18%
to 13%. Previous guidance estimated revenues to be $72.5 - $79.0
million.
- Storage and Storage Services platform: $26.0 million to $28.0
million, a decrease of 2% to an increase of 6% over 2022.
Excluding COVID-19-related revenue, year-over-year growth of 61% to
74%. Previous guidance estimated revenues to be $26.5 - $30.0
million.
Conference Call & Webcast
Management will discuss the Company's financial results, provide
a general business update and answer questions during a conference
call and live webcast today at 4:30 p.m.
ET (1:30 p.m. PT).
To access the webcast, log onto the Investor Relations page of
the BioLife Solutions website
at https://www.biolifesolutions.com/earnings. In
addition, the conference call will be accessible by dialing
toll-free (800) 715-9871 for domestic callers or (646) 307-1963 for
international callers. The conference ID number is 4014878. A
webcast replay will be available approximately two hours after the
call ends and will be archived
on https://www.biolifesolutions.com/ for 90 days.
About BioLife Solutions
BioLife Solutions is a leading supplier of class-defining
bioproduction tools and services for the cell and gene therapy and
broader biopharma markets. Our tools portfolio includes our
proprietary CryoStor® and
HypoThermosol® biopreservation media for shipping
and storage, the ThawSTAR® family of automated,
water-free thawing products, evo® cold chain
management system, high capacity cryogenic storage
freezers, Stirling Ultracold mechanical
freezers, SciSafe biologic storage services, and Sexton
Biotechnologies cell processing tools. For more information,
please visit www.biolifesolutions.com, www.scisafe.com,
www.stirlingultracold.com, or www.sextonbio.com and follow
BioLife on Twitter.
Cautions Regarding Forward Looking Statements
Certain statements contained in this press release are not
historical facts and may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "plans," "expects," "believes," "anticipates,"
"designed," and similar words are intended to identify
forward-looking statements. Forward-looking statements are based on
our current expectations and beliefs, and involve a number of risks
and uncertainties that are difficult to predict and that could
cause actual results to differ materially from those stated or
implied by the forward-looking statements. A description of certain
of these risks, uncertainties and other matters can be found in
filings we make with the U.S. Securities and Exchange Commission,
all of which are available at www.sec.gov. Because forward-looking
statements involve risks and uncertainties, actual results and
events may differ materially from results and events currently
expected by us. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date hereof. We undertake no obligation to publicly update
these forward-looking statements to reflect events or circumstances
that occur after the date hereof or to reflect any change in its
expectations with regard to these forward-looking statements or the
occurrence of unanticipated events.
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: adjusted gross profit and gross
margin, adjusted operating expenses, adjusted operating
income/(loss), adjusted net income/(loss), earnings before
interest, taxes, depreciation and amortization (EBITDA), and
adjusted EBITDA. A reconciliation of GAAP to adjusted non-GAAP
financial measures is included as an attachment to this press
release.
We believe these non-GAAP financial measures are useful to
investors in assessing our operating performance. We use these
financial measures internally to evaluate our operating performance
and for planning and forecasting of future periods. We also
believe it is in the best interests of investors to provide this
non-GAAP information.
While we believe these non-GAAP financial measures provide
useful supplemental information to investors, there are limitations
associated with the use of these non-GAAP financial measures. These
non-GAAP financial measures may not be reported by competitors, and
they may not be directly comparable to similarly titled measures of
other companies due to differences in calculation methodologies.
The non-GAAP financial measures are not an alternative to GAAP
information and are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures. They should be
used only as a supplement to GAAP information and should be
considered only in conjunction with our consolidated financial
statements prepared in accordance with GAAP.
Media & Investor Relations
At the Company
Troy Wichterman
Chief Financial Officer
(425) 402-1400
twichterman@biolifesolutions.com
Investors
LHA Investor Relations
Jody Cain
(310) 691-7100
jcain@lhai.com
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, amounts
in thousands, except share and per share amounts)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In thousands,
except per share and share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Product
revenue
|
$
33,037
|
|
$
34,170
|
|
$
64,630
|
|
$
64,558
|
Service
revenue
|
4,195
|
|
3,698
|
|
8,665
|
|
6,787
|
Rental
revenue
|
2,276
|
|
2,665
|
|
3,915
|
|
5,407
|
Total product, rental,
and service revenue
|
39,508
|
|
40,533
|
|
77,210
|
|
76,752
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
Cost of product,
rental, and service revenue (exclusive of Intangible asset
amortization)
|
$
27,696
|
|
$
26,194
|
|
$
51,359
|
|
$
50,640
|
General and
administrative
|
15,402
|
|
11,652
|
|
30,241
|
|
23,182
|
Sales and
marketing
|
6,318
|
|
5,415
|
|
12,789
|
|
10,306
|
Research and
development
|
4,840
|
|
3,428
|
|
8,995
|
|
7,209
|
Intangible asset
impairment charges
|
—
|
|
69,900
|
|
—
|
|
69,900
|
Intangible asset
amortization
|
1,450
|
|
2,863
|
|
2,911
|
|
5,725
|
Acquisition
costs
|
—
|
|
5
|
|
—
|
|
16
|
Change in fair value of
contingent consideration
|
(918)
|
|
(2,361)
|
|
(198)
|
|
(5,695)
|
Total operating
expenses
|
54,788
|
|
117,096
|
|
106,097
|
|
161,283
|
Operating
loss
|
(15,280)
|
|
(76,563)
|
|
(28,887)
|
|
(84,531)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Gain on settlement of
Global Cooling escrow
|
5,115
|
|
—
|
|
5,115
|
|
—
|
Interest
expense
|
(419)
|
|
(32)
|
|
(829)
|
|
(216)
|
Other income
(expense)
|
390
|
|
(22)
|
|
785
|
|
110
|
Total other income
(expense), net
|
5,086
|
|
(54)
|
|
5,071
|
|
(106)
|
|
|
|
|
|
|
|
|
Loss before income tax
(expense) benefit
|
(10,194)
|
|
(76,617)
|
|
(23,816)
|
|
(84,637)
|
Income tax (expense)
benefit
|
(5)
|
|
3,739
|
|
(97)
|
|
4,338
|
Net loss
|
$
(10,199)
|
|
$
(72,878)
|
|
$
(23,913)
|
|
$
(80,299)
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders:
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
(10,199)
|
|
$
(72,878)
|
|
$
(23,913)
|
|
$
(80,299)
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
(0.23)
|
|
$
(1.72)
|
|
$
(0.55)
|
|
$
(1.90)
|
Weighted average shares
used to compute loss per share attributable to common
shareholders:
|
|
|
|
|
|
|
|
Basic and
Diluted
|
43,441,219
|
|
42,460,189
|
|
43,235,558
|
|
42,238,355
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(In
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net loss
|
$
(10,199)
|
|
$
(72,878)
|
|
$
(23,913)
|
|
$
(80,299)
|
Other comprehensive
income (loss)
|
35
|
|
(462)
|
|
180
|
|
(618)
|
Comprehensive
loss
|
$
(10,164)
|
|
$
(73,340)
|
|
$
(23,733)
|
|
$
(80,917)
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited, amounts
in thousands)
|
|
|
June
30,
|
|
December
|
(In
thousands)
|
2023
|
|
2022
|
Cash, cash equivalents,
and marketable securities
|
$
48,128
|
|
$
64,065
|
Working
capital
|
80,724
|
|
93,870
|
Current
assets
|
120,311
|
|
138,452
|
Current
liabilities
|
39,587
|
|
44,582
|
Total assets
|
433,177
|
|
450,229
|
|
|
|
|
Long-term
obligations
|
41,462
|
|
41,459
|
Accumulated
deficit
|
(270,828)
|
|
(246,915)
|
Total shareholders'
equity
|
$
352,128
|
|
$
364,188
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
(Unaudited, amounts
in thousands)
|
|
|
Six Months
Ended
June 30,
|
(In
thousands)
|
2023
|
|
2022
|
Net cash used in
operating activities
|
$
(10,430)
|
|
$
(17,841)
|
Net cash used in
(provided by) investing activities
|
12,218
|
|
(27,340)
|
Net cash used in
(provided by) financing activities
|
142
|
|
(470)
|
Effects of currency
translation
|
28
|
|
(190)
|
Net decrease (increase)
in cash, cash equivalents, and restricted stock
|
$
1,958
|
|
$
(45,841)
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP GROSS PROFIT TO NON-GAAP ADJUSTED GROSS PROFIT
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP GROSS
PROFIT
|
$ 11,079
|
|
$ 13,246
|
|
$ 24,385
|
|
$ 23,926
|
GAAP GROSS
MARGIN
|
28 %
|
|
33 %
|
|
32 %
|
|
31 %
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO GROSS
PROFIT:
|
|
|
|
|
|
|
|
Inventory
step-up
|
—
|
|
251
|
|
—
|
|
251
|
Inventory reserve
costs
|
2,185
|
|
—
|
|
2,185
|
|
—
|
Intangible asset
amortization
|
733
|
|
1,093
|
|
1,466
|
|
2,186
|
ADJUSTED GROSS
PROFIT
|
$ 13,997
|
|
$ 14,590
|
|
$ 28,036
|
|
$ 26,363
|
ADJUSTED GROSS
MARGIN
|
35 %
|
|
36 %
|
|
36 %
|
|
34 %
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING
EXPENSES
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP OPERATING
EXPENSES
|
$
54,788
|
|
$ 117,096
|
|
$ 106,097
|
|
$ 161,283
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
Cost of product,
rental, and service revenue
|
(27,696)
|
|
(26,194)
|
|
(51,359)
|
|
(50,640)
|
Inventory reserve
costs
|
(2,185)
|
|
—
|
|
(2,185)
|
|
—
|
Acquisition and
divestiture costs
|
(2,143)
|
|
(5)
|
|
(2,976)
|
|
(16)
|
Intangible asset
amortization
|
(1,450)
|
|
(2,863)
|
|
(2,911)
|
|
(5,725)
|
Loss on disposal of
assets
|
(19)
|
|
(162)
|
|
(28)
|
|
(257)
|
Change in fair value of
contingent consideration
|
918
|
|
2,361
|
|
198
|
|
5,695
|
Intangible asset
impairment charges
|
—
|
|
(69,900)
|
|
—
|
|
(69,900)
|
ADJUSTED OPERATING
EXPENSES
|
$
22,213
|
|
$
20,333
|
|
$
46,836
|
|
$
40,440
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP OPERATING LOSS TO NON-GAAP ADJUSTED OPERATING
LOSS
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP OPERATING
LOSS
|
$
(15,280)
|
|
$
(76,563)
|
|
$
(28,887)
|
|
$
(84,531)
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO GAAP
OPERATING LOSS
|
|
|
|
|
|
|
|
Inventory
step-up
|
—
|
|
251
|
|
—
|
|
251
|
Inventory reserve
costs
|
2,185
|
|
—
|
|
2,185
|
|
—
|
Acquisition and
divestiture costs
|
2,143
|
|
5
|
|
2,976
|
|
16
|
Intangible asset
amortization
|
1,450
|
|
2,863
|
|
2,911
|
|
5,725
|
Loss on disposal of
assets
|
19
|
|
162
|
|
28
|
|
257
|
Change in fair value of
contingent consideration
|
(918)
|
|
(2,361)
|
|
(198)
|
|
(5,695)
|
Intangible asset
impairment charges
|
—
|
|
69,900
|
|
—
|
|
69,900
|
ADJUSTED OPERATING
LOSS
|
$
(10,401)
|
|
$
(5,743)
|
|
$
(20,985)
|
|
$
(14,077)
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP ADJUSTED NET LOSS
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP NET
LOSS
|
$
(10,199)
|
|
$
(72,878)
|
|
$
(23,913)
|
|
$
(80,299)
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO GAAP NET
LOSS
|
|
|
|
|
|
|
|
Inventory
step-up
|
—
|
|
251
|
|
—
|
|
251
|
Inventory reserve
costs
|
2,185
|
|
—
|
|
2,185
|
|
—
|
Acquisition and
divestiture costs
|
2,143
|
|
5
|
|
2,976
|
|
16
|
Intangible asset
amortization
|
1,450
|
|
2,863
|
|
2,911
|
|
5,725
|
Loss on disposal of
assets
|
19
|
|
162
|
|
28
|
|
257
|
Change in fair value of
contingent consideration
|
(918)
|
|
(2,361)
|
|
(198)
|
|
(5,695)
|
Income tax expense /
(benefit)
|
5
|
|
(3,739)
|
|
97
|
|
(4,338)
|
Gain on settlement of
Global Cooling escrow
|
(5,115)
|
|
—
|
|
(5,115)
|
|
—
|
Intangible asset
impairment charges
|
—
|
|
69,900
|
|
—
|
|
69,900
|
ADJUSTED NET
LOSS
|
$
(10,430)
|
|
$
(5,797)
|
|
$
(21,029)
|
|
$
(14,183)
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP NET
LOSS
|
$
(10,199)
|
|
$
(72,878)
|
|
$
(23,913)
|
|
$
(80,299)
|
|
|
|
|
|
|
|
|
ADJUSTMENTS:
|
|
|
|
|
|
|
|
Interest
expense
|
419
|
|
32
|
|
829
|
|
216
|
Income tax expense /
(benefit)
|
5
|
|
(3,739)
|
|
97
|
|
(4,338)
|
Depreciation
|
2,003
|
|
986
|
|
3,733
|
|
2,639
|
Intangible asset
amortization
|
1,450
|
|
2,863
|
|
2,911
|
|
5,725
|
EBITDA
|
$
(6,322)
|
|
$
(72,736)
|
|
$
(16,343)
|
|
$
(76,057)
|
|
|
|
|
|
|
|
|
OTHER
ADJUSTMENTS:
|
|
|
|
|
|
|
|
Share-based
compensation (non-cash)
|
6,856
|
|
5,973
|
|
14,220
|
|
11,372
|
Inventory
step-up
|
—
|
|
251
|
|
—
|
|
251
|
Inventory reserve
costs
|
2,185
|
|
—
|
|
2,185
|
|
—
|
Acquisition and
divestiture costs
|
2,143
|
|
5
|
|
2,976
|
|
16
|
Loss on disposal of
assets
|
19
|
|
162
|
|
28
|
|
257
|
Change in fair value of
contingent consideration
|
(918)
|
|
(2,361)
|
|
(198)
|
|
(5,695)
|
Gain on settlement of
Global Cooling escrow
|
(5,115)
|
|
—
|
|
(5,115)
|
|
—
|
Intangible asset
impairment charges
|
—
|
|
69,900
|
|
—
|
|
69,900
|
ADJUSTED
EBITDA
|
$
(1,152)
|
|
$
1,194
|
|
$
(2,247)
|
|
$
44
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA EXCLUDING FREEZER
BUSINESS
(Unaudited, amounts
in thousands)
|
|
|
Six Months
Ended
June 30, 2023
|
(In
thousands)
|
Freezers
|
|
Excluding
Freezers
|
|
Reported
Results
|
GAAP NET
LOSS
|
$
(12,090)
|
|
$
(11,823)
|
|
$
(23,913)
|
|
|
|
|
|
|
Expense
allocation(1)
|
(3,174)
|
|
3,174
|
|
—
|
GAAP NET LOSS AS
ADJUSTED FOR EXPENSE ALLOCATION
|
$
(15,264)
|
|
$
(8,649)
|
|
$
(23,913)
|
|
|
|
|
|
|
ADJUSTMENTS:
|
|
|
|
|
|
Interest
expense
|
108
|
|
721
|
|
829
|
Income tax expense /
(benefit)
|
3
|
|
94
|
|
97
|
Depreciation
|
555
|
|
3,178
|
|
3,733
|
Intangible asset
amortization
|
503
|
|
2,408
|
|
2,911
|
EBITDA
|
$
(14,095)
|
|
$
(2,248)
|
|
$
(16,343)
|
|
|
|
|
|
|
OTHER
ADJUSTMENTS:
|
|
|
|
|
|
Share-based
compensation (non-cash)
|
3,632
|
|
10,588
|
|
14,220
|
Acquisition and
divestiture costs
|
—
|
|
2,976
|
|
2,976
|
Loss on disposal of
assets
|
—
|
|
28
|
|
28
|
Change in fair value of
contingent consideration
|
—
|
|
(198)
|
|
(198)
|
Gain on settlement of
Global Cooling escrow
|
—
|
|
(5,115)
|
|
(5,115)
|
Inventory reserve
costs
|
—
|
|
$
2,185
|
|
$
2,185
|
ADJUSTED
EBITDA
|
$
(10,463)
|
|
$
8,216
|
|
$
(2,247)
|
|
|
(1)
|
Expense allocations
reflected here represent allocations made by the corporate entity
for the benefit of the freezer business (Stirling Ultracold and
Custom Biogenic Systems). These allocations were calculated using
certain judgments and estimates based on information currently
available, though actual results may differ from assumptions used
to present this pro forma information.
|
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SOURCE BioLife Solutions, Inc.