Conference call begins at 4:30 p.m. Eastern time today
BOTHELL,
Wash., Nov. 9, 2023 /PRNewswire/ -- BioLife
Solutions, Inc. (Nasdaq: BLFS) ("BioLife" or the "Company"), a
leading supplier of biopreservation media and other cell processing
tools and biostorage services for the cell and gene therapy (CGT)
and broader biopharma markets, today announced financial results
for the third quarter and nine months of 2023.
"It's been a few short weeks since rejoining the Company, and
while it's a dynamic time in our industry, it's clear there are
remarkable opportunities ahead for BioLife to adapt and innovate as
a leading provider of cell processing tools and biostorage
services," said Roderick de Greef,
Chairman and CEO. "Results for the third quarter, which contained
no COVID related revenue, were in line with our expectations, and
while our cell processing platform was reflective of current
industry wide headwinds, our biostorage services platform exhibited
strong ex-COVID growth of 50%."
de Greef continued, "Looking beyond this year, we fundamentally
believe BioLife is exceptionally well positioned to benefit from
the growth drivers underlying the still nascent CGT industry in the
medium to longer term. Currently, our biopreservation media is
embedded in 5 of 6 approved CAR-T therapies and 11 relevant
approved cell and cell-based gene therapies, and is utilized in
hundreds of active clinical trials globally. In addition, our other
cell processing tools and biostorage services are used in 10
approved cell and gene therapies globally, as well as being
incorporated in well over 100 clinical trials. We are working
expeditiously on the divestiture of the freezer operations with
multiple interested parties, and we expect to bring this process to
a conclusion in early 2024. Upon completion, the Company's
streamlined financial profile will benefit immediately from the
operating leverage provided by the high margin, recurring
biopreservation media revenue."
Third Quarter 2023 Business
Highlights
- Processed 20 new US FDA Master File cross references for our
biopreservation media, bringing the total processed in 2023 to
60.
- Reduced non-freezer operations related headcount by 10% in
order to better position the Company for profitability post the
freezer divestitures.
- Post-quarter end management changes including the appointment
of Roderick de Greef as Chairman and
Chief Executive Officer and Garrie
Richardson as Chief Revenue Officer.
Third Quarter 2023 Financial
Performance
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 third quarter of 2023 was $33.3 million, a decrease of $7.4 million, or 18%, from $40.7 million for the third quarter of 2022.
There was no COVID related revenue in the third quarter of 2023.
Ex-COVID related revenue decreased for the third quarter of 2023 by
10%.
-
- Cell Processing platform revenue was $13.3 million, a decrease of $4.7 million, or 26%, over the same period in
2022.
-
- Biostorage and Services platform revenue was $6.6 million, down $0.7
million, or 10%, over the same period in 2022. Ex-COVID
related revenue growth was $2.2
million, or 50%, over the same period in 2022.
-
- Freezers and Thaw Systems platform revenue was $13.4 million, down $2.0
million, or 13%, over the same period in 2022. Ex-COVID
related revenue was down $1.3
million, or 9%, over the same period in 2022.
GROSS MARGIN
- Gross margin (GAAP) for the third quarter of 2023 was 33%
compared with 31% for the third quarter of 2022. Adjusted gross
margin (non-GAAP) for the third quarter of 2023 was 30% compared
with 34% for the third quarter of 2022.
OPERATING LOSS
- Operating loss (GAAP) for the third quarter of 2023 was
$28.8 million, including a
$15.5 million non-cash long-lived
asset impairment charge related to our freezer assets, compared
with $11.7 million for the third
quarter of 2022. Adjusted operating loss (non-GAAP) for the third
quarter of 2023 was $14.4 million
compared with $7.0 million for the
third quarter of 2022.
NET LOSS
- Net loss (GAAP) for the third quarter of 2023 was $29.1 million, including a $15.5 million non-cash long-lived asset
impairment charge related to our freezer assets, compared with
$10.3 million for the third quarter
of 2022. Adjusted net loss (non-GAAP) for the third quarter of 2023
was $14.6 million compared with
$6.9 million for the third quarter of
2022.
LOSS PER SHARE
- Loss per share (GAAP) for the third quarter of 2023 was
$0.67 compared with loss per share of
$0.24 for the third quarter of
2022.
ADJUSTED EBITDA
- Adjusted EBITDA, a non-GAAP measure, for the third quarter of
2023 was negative $3.1 million
compared with positive $1.8 million
for the third quarter of 2022.
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
- Cash, cash equivalents, and marketable securities as of
September 30, 2023, were $42.2
million. On October 19, 2023,
the Company reported that it sold $10.4
million of common shares to an existing shareholder.
2023 Revenue Guidance
BioLife Solutions continues to expect its full year 2023
revenue, which contains no COVID related revenue, at the low end of
the previously announced guidance range of $144 million to $158
million, reflecting a year-over-year decrease of 11%, and
excluding COVID related revenue in 2022, a year-over year decrease
of 3% as provided on October 19,
2023. Total 2023 and Freezers and Thaw Systems platform
revenue may be impacted by the timing of the freezer product line
divestitures.
Expectations for 2023 total revenue include the following
platform contributions:
- Cell Processing platform: Approximately $65 million, a decrease of 5% compared to 2022,
which assumes flat to modest sequential growth for the cell
processing platform in the fourth quarter.
- Biostorage and Services platform: Approximately $26 million, a decrease of 2% compared to 2022,
and excluding COVID-related revenue, year-over-year growth of
61%.
- Freezers and Thaw Systems platform: Approximately $53 million a decrease of 21% compared to 2022,
and excluding COVID-related revenue, a year-over-year decrease of
18%.
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. The conference ID number is 5946398. 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 cell processing tools
and services for the cell and gene therapy (CGT) and broader
biopharma markets. Our expertise facilitates the commercialization
of new therapies by supplying solutions that maintain the health
and function of biologic materials during the collection,
development, storage and distribution. For more information, please
visit www.biolifesolutions.com, and follow BioLife on LinkedIn and
X.
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.
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Media & Investor
Relations
|
|
|
At the Company
Troy
Wichterman
|
|
|
Chief Financial
Officer
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(425)
402-1400
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twichterman@biolifesolutions.com
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BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, amounts
in thousands, except share and per share amounts)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands, except per share and share
data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Product
revenue
|
$
26,891
|
|
$
33,668
|
|
$
91,520
|
|
$
98,227
|
Service
revenue
|
4,378
|
|
4,330
|
|
13,043
|
|
11,117
|
Rental
revenue
|
2,059
|
|
2,749
|
|
5,975
|
|
8,156
|
Total product, rental,
and service revenue
|
33,328
|
|
40,747
|
|
110,538
|
|
117,500
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
Cost of product,
rental, and service revenue
(exclusive of
Intangible asset amortization)
|
$
21,679
|
|
$
27,009
|
|
$
73,036
|
|
$
77,649
|
General and
administrative
|
12,513
|
|
11,916
|
|
42,757
|
|
35,098
|
Sales and
marketing
|
7,256
|
|
5,278
|
|
20,045
|
|
15,601
|
Research and
development
|
5,402
|
|
3,425
|
|
14,397
|
|
10,634
|
Asset impairment
charges
|
15,485
|
|
—
|
|
15,485
|
|
69,900
|
Intangible asset
amortization
|
1,356
|
|
2,513
|
|
4,266
|
|
8,236
|
Change in fair value of
contingent consideration
|
(1,580)
|
|
2,346
|
|
(1,778)
|
|
(3,348)
|
Total operating
expenses
|
62,111
|
|
52,487
|
|
168,208
|
|
213,770
|
Operating
loss
|
(28,783)
|
|
(11,740)
|
|
(57,670)
|
|
(96,270)
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
Change in fair value of
investments
|
—
|
|
697
|
|
—
|
|
697
|
Gain on settlement of
Global Cooling escrow
|
—
|
|
—
|
|
5,115
|
|
—
|
Interest expense,
net
|
(476)
|
|
(15)
|
|
(1,305)
|
|
(250)
|
Other income
|
242
|
|
142
|
|
1,027
|
|
270
|
Total other (expense)
income, net
|
(234)
|
|
824
|
|
4,837
|
|
717
|
|
|
|
|
|
|
|
|
Loss before income tax
(expense) benefit
|
(29,017)
|
|
(10,916)
|
|
(52,833)
|
|
(95,553)
|
Income tax (expense)
benefit
|
(115)
|
|
599
|
|
(212)
|
|
4,937
|
Net loss
|
$
(29,132)
|
|
$
(10,317)
|
|
$
(53,045)
|
|
$
(90,616)
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders:
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
(29,132)
|
|
$
(10,317)
|
|
$
(53,045)
|
|
$
(90,616)
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
(0.67)
|
|
$
(0.24)
|
|
$
(1.22)
|
|
$
(2.14)
|
Weighted average shares
used to compute loss per share
attributable to
common shareholders:
|
|
|
|
|
|
|
|
Basic and
Diluted
|
43,570,438
|
|
42,647,967
|
|
43,348,412
|
|
42,376,392
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited, amounts
in thousands)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net loss
|
$
(29,132)
|
|
$
(10,317)
|
|
$
(53,045)
|
|
$
(90,616)
|
Other comprehensive
loss
|
(161)
|
|
(357)
|
|
19
|
|
(975)
|
Comprehensive
loss
|
$
(29,293)
|
|
$
(10,674)
|
|
$
(53,026)
|
|
$
(91,591)
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited, amounts
in thousands)
|
|
September 30,
|
|
December 31,
|
(In thousands)
|
2023
|
|
2022
|
Cash, cash equivalents,
and marketable securities
|
$
42,216
|
|
$
64,065
|
Working
capital
|
74,202
|
|
93,870
|
Current
assets
|
116,824
|
|
138,452
|
Current
liabilities
|
42,622
|
|
44,582
|
Total assets
|
411,152
|
|
450,229
|
|
|
|
|
Long-term
obligations
|
36,513
|
|
41,459
|
Accumulated
deficit
|
(299,960)
|
|
(246,915)
|
Total shareholders'
equity
|
332,017
|
|
364,188
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
(Unaudited, amounts
in thousands)
|
|
Nine Months Ended
September 30,
|
(In thousands)
|
2023
|
|
2022
|
Net cash used in
operating activities
|
$
(14,809)
|
|
$
(16,345)
|
Net cash used in
(provided by) investing activities
|
13,880
|
|
(43,223)
|
Net cash provided by
financing activities
|
750
|
|
16,941
|
Effects of currency
translation
|
(28)
|
|
(176)
|
Net decrease in cash,
cash equivalents, and restricted cash
|
$
(207)
|
|
$
(42,803)
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP GROSS PROFIT TO NON-GAAP ADJUSTED GROSS PROFIT
(Unaudited, amounts
in thousands)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP GROSS
PROFIT
|
$ 10,916
|
|
$ 12,442
|
|
$ 35,303
|
|
$ 36,369
|
GAAP GROSS
MARGIN
|
33 %
|
|
31 %
|
|
32 %
|
|
31 %
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO GROSS
PROFIT:
|
|
|
|
|
|
|
|
Inventory
step-up
|
—
|
|
—
|
|
—
|
|
251
|
Inventory reserve
costs
|
(1,623)
|
|
—
|
|
562
|
|
—
|
Intangible asset
amortization
|
733
|
|
1,296
|
|
2,199
|
|
3,482
|
ADJUSTED GROSS
PROFIT
|
$ 10,026
|
|
$ 13,738
|
|
$ 38,064
|
|
$ 40,102
|
ADJUSTED GROSS
MARGIN
|
30 %
|
|
34 %
|
|
34 %
|
|
34 %
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING
EXPENSES
(Unaudited, amounts
in thousands)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP OPERATING
EXPENSES
|
$
62,111
|
|
$
52,487
|
|
$ 168,208
|
|
$ 213,770
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
Cost of product,
rental, and service revenue
|
(21,679)
|
|
(27,009)
|
|
(73,036)
|
|
(77,649)
|
Acquisition and
divestiture costs
|
(250)
|
|
(1)
|
|
(3,226)
|
|
(18)
|
Severance
costs
|
(493)
|
|
—
|
|
(493)
|
|
—
|
Intangible asset
amortization
|
(1,356)
|
|
(2,513)
|
|
(4,266)
|
|
(8,236)
|
Loss on disposal of
assets
|
(11)
|
|
169
|
|
(39)
|
|
(88)
|
Change in fair value of
contingent consideration
|
1,580
|
|
(2,346)
|
|
1,778
|
|
3,348
|
Asset impairment
charges
|
(15,485)
|
|
—
|
|
(15,485)
|
|
(69,900)
|
ADJUSTED OPERATING
EXPENSES
|
$
24,417
|
|
$
20,787
|
|
$
73,441
|
|
$
61,227
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP OPERATING LOSS TO NON-GAAP ADJUSTED OPERATING
LOSS
(Unaudited, amounts
in thousands)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP OPERATING
LOSS
|
$ (28,783)
|
|
$ (11,740)
|
|
$ (57,670)
|
|
$ (96,270)
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO GAAP
OPERATING LOSS
|
|
|
|
|
|
|
|
Inventory
step-up
|
—
|
|
—
|
|
—
|
|
251
|
Inventory reserve
costs
|
(1,623)
|
|
—
|
|
562
|
|
—
|
Acquisition and
divestiture costs
|
250
|
|
1
|
|
3,226
|
|
18
|
Severance
costs
|
493
|
|
—
|
|
493
|
|
—
|
Intangible asset
amortization
|
1,356
|
|
2,513
|
|
4,266
|
|
8,236
|
Loss on disposal of
assets
|
11
|
|
(169)
|
|
39
|
|
88
|
Change in fair value of
contingent consideration
|
(1,580)
|
|
2,346
|
|
(1,778)
|
|
(3,348)
|
Asset impairment
charges
|
15,485
|
|
—
|
|
15,485
|
|
69,900
|
ADJUSTED OPERATING
LOSS
|
$ (14,391)
|
|
$
(7,049)
|
|
$ (35,377)
|
|
$ (21,125)
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP ADJUSTED NET LOSS
(Unaudited, amounts
in thousands)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP NET
LOSS
|
$ (29,132)
|
|
$ (10,317)
|
|
$ (53,045)
|
|
$ (90,616)
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO GAAP NET
LOSS
|
|
|
|
|
|
|
|
Inventory
step-up
|
—
|
|
—
|
|
—
|
|
251
|
Inventory reserve
costs
|
(1,623)
|
|
—
|
|
562
|
|
—
|
Acquisition and
divestiture costs
|
250
|
|
1
|
|
3,226
|
|
18
|
Severance
costs
|
493
|
|
—
|
|
493
|
|
—
|
Intangible asset
amortization
|
1,356
|
|
2,513
|
|
4,266
|
|
8,236
|
Loss on disposal of
assets
|
11
|
|
(169)
|
|
39
|
|
88
|
Change in fair value of
investments
|
—
|
|
(697)
|
|
|
|
(697)
|
Change in fair value of
contingent consideration
|
(1,580)
|
|
2,346
|
|
(1,778)
|
|
(3,348)
|
Income tax expense /
(benefit)
|
115
|
|
(599)
|
|
212
|
|
(4,937)
|
Gain on settlement of
Global Cooling escrow
|
—
|
|
—
|
|
(5,115)
|
|
—
|
Asset impairment
charges
|
15,485
|
|
—
|
|
15,485
|
|
69,900
|
ADJUSTED NET
LOSS
|
$ (14,625)
|
|
$
(6,922)
|
|
$ (35,655)
|
|
$ (21,105)
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited, amounts
in thousands)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP NET
LOSS
|
$ (29,132)
|
|
$ (10,317)
|
|
$ (53,045)
|
|
$ (90,616)
|
|
|
|
|
|
|
|
|
ADJUSTMENTS:
|
|
|
|
|
|
|
|
Interest expense,
net
|
476
|
|
15
|
|
1,305
|
|
250
|
Income tax expense /
(benefit)
|
115
|
|
(599)
|
|
212
|
|
(4,937)
|
Depreciation
|
1,924
|
|
2,406
|
|
5,658
|
|
5,045
|
Intangible asset
amortization
|
1,356
|
|
2,513
|
|
4,266
|
|
8,236
|
EBITDA
|
$ (25,261)
|
|
$
(5,982)
|
|
$ (41,604)
|
|
$ (82,022)
|
|
|
|
|
|
|
|
|
OTHER
ADJUSTMENTS:
|
|
|
|
|
|
|
|
Share-based
compensation (non-cash)
|
9,117
|
|
6,299
|
|
23,337
|
|
17,671
|
Inventory
step-up
|
—
|
|
—
|
|
—
|
|
251
|
Inventory reserve
costs
|
(1,623)
|
|
—
|
|
562
|
|
—
|
Acquisition and
divestiture costs
|
250
|
|
1
|
|
3,226
|
|
18
|
Severance
costs
|
493
|
|
—
|
|
493
|
|
—
|
Loss on disposal of
assets
|
11
|
|
(169)
|
|
39
|
|
88
|
Change in fair value of
investments
|
—
|
|
(697)
|
|
—
|
|
(697)
|
Change in fair value of
contingent consideration
|
(1,580)
|
|
2,346
|
|
(1,778)
|
|
(3,348)
|
Gain on settlement of
Global Cooling escrow
|
—
|
|
—
|
|
(5,115)
|
|
—
|
Asset impairment
charges
|
15,485
|
|
—
|
|
15,485
|
|
69,900
|
ADJUSTED
EBITDA
|
$
(3,108)
|
|
$
1,798
|
|
$
(5,355)
|
|
$
1,861
|
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SOURCE BioLife Solutions, Inc.