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WALTHAM, Mass., May 02, 2023 (GLOBE NEWSWIRE) -- Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its first fiscal quarter ended March 31, 2023. Provided in this press release are financial highlights for the quarter, updates to our financial guidance for the year 2023 and access information for today’s webcast and conference call.
Tony J. Hunt, President and Chief Executive Officer of Repligen said, “Given the challenging macro environment, I am very happy with our overall performance in the first quarter, with year-over-year base business growth of 7% at constant currency. In the quarter, we saw strong performance from our Chromatography and Proteins franchises, while Filtration was down - reflecting the predicted drop-off in COVID-related revenue. Strategically, we continue to build out our Fluid Management portfolio with the April acquisition of FlexBiosys, adding single-use bags to our suite of products. As we move through the first half of 2023, our R&D team is poised to deliver four new products supporting our Systems, Analytics and Filtration businesses. Overall, we continue to be bullish on the medium- to long-term growth in bioprocessing but expect 2023 to be a challenging year due to a slower recovery in order growth, especially in AsiaPac. We now expect 4% to 8% base business growth for the company.”
Business and Financial Highlights
First Quarter and Year-to-Date 2023 Business Highlights
First Quarter 2023 Financial Highlights
REVENUE
GROSS PROFIT and GROSS MARGIN
INCOME FROM OPERATIONS
NET INCOME
NET INCOME PER SHARE-Diluted (EARNINGS PER SHARE-Diluted)
EBITDA
CASH
All reconciliations of GAAP to adjusted (non-GAAP) figures above, as well as EBITDA to adjusted EBITDA, are detailed in the reconciliation tables included later in this press release.
Financial Guidance for 2023
Our financial guidance for the fiscal year 2023 is based on expectations for our existing business. This guidance includes the impact of our FlexBiosys acquisition and excludes the impact of potential additional acquisitions, and future fluctuations in foreign currency exchange rates.
YEAR 2023 GUIDANCE:
Our non-GAAP guidance for the fiscal year 2023 excludes the following items:
Our non-GAAP guidance for the fiscal year 2023 includes:
All reconciliations of GAAP to adjusted (non-GAAP) guidance are detailed in the tables included later in this press release.
Conference Call and Webcast Access
Repligen will host a conference call and webcast today, May 2, 2023, at 8:30 a.m. ET, to discuss first quarter 2023 financial results, corporate developments and financial guidance for the year 2023. 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 1872405.
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: revenue growth rate at constant currency; adjusted gross profit and adjusted gross margin; adjusted cost of sales; adjusted R&D expense; adjusted SG&A expense; adjusted income from operations; adjusted net income; adjusted net income per share-diluted; earnings before interest, taxes, depreciation and amortization (EBITDA); and adjusted EBITDA. The Company provides organic revenue growth rates, which exclude the impact of both foreign currency translation and the impact of acquisition revenue for current year periods that have no prior year comparable in order to facilitate a comparison of its current revenue performance. The Company provides 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 revenue growth rates in constant currency, 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: acquisition and integration costs, intangible amortization costs, contingent consideration related to the Company’s acquisitions, amortization of debt issuance costs related to Company’s convertible debt, non-cash interest expense, 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.
A reconciliation of GAAP to adjusted non-GAAP financial measures is included as an attachment to this press release. When analyzing the Company’s operating performance and guidance investors should not consider non-GAAP measures as substitutable for the comparable financial measures prepared in accordance with GAAP.
About Repligen Corporation
Repligen Corporation is a global 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, Chromatography, Process Analytics, Fluid Management and Proteins. Our corporate headquarters are located in Waltham, Massachusetts, with additional administrative and manufacturing operations worldwide. The majority of our manufacturing sites are located within the U.S. (California, Massachusetts, New Hampshire, New Jersey and New York), and we also have sites in Estonia, France, Germany, Ireland, the Netherlands and Sweden. For more information about the company, including Repligen news releases, see our website at http://www.repligen.com. Follow us on LinkedIn and Twitter.
Forward-Looking Statement
The followingconstitutesa“SafeHarbor”statementunderthePrivateSecuritiesLitigationReformActof1995:This pressreleasecontainsforward-lookingstatements,whicharemadepursuanttothesafeharborprovisionsoffederal securities laws, includingSection 27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, express or implied statements or guidance regarding current or future financial performance and position, including our year 2023 financial guidance, cash and investment position, demand in the markets in which we operate, the expected performance of our business, the expected performance and success of our strategic partnerships , the expected performance and integration of our acquired businesses (including our 2023 acquisition of FlexBiosys), expectations regarding manufacturing expenses, plans for gross margin expansion, our ability to continue to generate, and the magnitude of, COVID-related revenue, and management’s strategy, plans and objectives for operations or future acquisitions, product development and sales, selling, general and administrative expenditures, 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, without limitation, risks associated with the following: the ongoing effect of the COVID-19 coronavirus pandemic, including mitigation efforts and economic effects, on our business operations and the operations of our customers and suppliers, as well as on our revenues; our ability to successfully grow our bioprocessing business, including as a result of acquisition, commercialization or partnership opportunities; our ability to develop and commercialize products and the market acceptance of our products; our ability to successfully integrate any acquired businesses (including FlexBiosys) into our business and achieve the expected benefits of such acquisitions; reduced demand for our products that adversely impacts 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 ability to manage expenses; our compliance with all U.S. Food and Drug Administration and EMEA regulations; our volatile stock price; and other risks detailed in Repligen’s Annual Report on Form 10-K for the year ended December 31, 2022 and in subsequently filed reports with the Securities and Exchange Commission (the Commission), including our Quarterly Reports on Form 10-Q and current reports on Form 8-K that we file with the Commission.Actual resultsmaydiffermateriallyfromthoseRepligencontemplatedbytheseforward-lookingstatements.Therefore, you should not rely on any of these forward-looking statements. Theseforward-lookingstatementsreflectmanagement’scurrentviews, 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.Repligendoesnotundertaketoupdate, whether written or oral,anyofthese 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 datehereof except as required bylaw.
Repligen Contact:
Sondra S. Newman
Global Head of Investor Relations
(781) 419-1881
investors@repligen.com
| REPLIGEN CORPORATION | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (Unaudited, amounts in thousands, except share and per share data) | |||||||
| Three Months Ended March 31, | |||||||
| 2023 | 2022 | ||||||
| Revenue: | |||||||
| Product revenue | $ | 182,621 | $ | 206,363 | |||
| Royalty and other revenue | 39 | 37 | |||||
| Total revenue | 182,660 | 206,400 | |||||
| Costs and expenses: | |||||||
| Cost of product revenue | 81,845 | 82,356 | |||||
| Research and development | 12,154 | 12,155 | |||||
| Selling, general and administrative | 56,170 | 54,300 | |||||
| Contingent consideration | 1,235 | (2,411 | ) | ||||
| 151,404 | 146,400 | ||||||
| Income from operations | 31,256 | 60,000 | |||||
| Investment income | 5,486 | 77 | |||||
| Interest expense | (270 | ) | (292 | ) | |||
| Amortization of debt issuance costs* | (457 | ) | (452 | ) | |||
| Other income (expenses) | 77 | (402 | ) | ||||
| Income before income taxes | 36,092 | 58,931 | |||||
| Income tax provision | 7,263 | 11,967 | |||||
| Net income | $ | 28,829 | $ | 46,964 | |||
| Earnings per share: | |||||||
| Basic | $ | 0.52 | $ | 0.85 | |||
| Diluted* | $ | 0.51 | $ | 0.81 | |||
| Weighted average common shares outstanding: | |||||||
| Basic | 55,590,270 | 55,352,886 | |||||
| Diluted* | 57,049,079 | 58,816,354 | |||||
| *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 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 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 three months ended March 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: | March 31, 2023 | December 31, 2022 | |||||
| Cash, cash equivalents, and short term investments | $ | 618,018 | $ | 623,757 | |||
| Working capital | 613,482 | 593,922 | |||||
| Total assets | 2,538,234 | 2,524,658 | |||||
| Long-term obligations* | 192,421 | 209,762 | |||||
| Accumulated earnings | 426,101 | 397,272 | |||||
| Stockholders' equity | 1,940,492 | 1,910,700 | |||||
| * Includes long-term portion of the contingent consideration obligation related to the acquisition of Avitide Inc. | |||||||
| REPLIGEN CORPORATION | |||||||||
| RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO | |||||||||
| NON-GAAP (ADJUSTED) INCOME FROM OPERATIONS | |||||||||
| (Unaudited, amounts in thousands) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2023 | 2022 | ||||||||
| GAAP INCOME FROM OPERATIONS | $ | 31,256 | $ | 60,000 | |||||
| ADJUSTMENTS TO INCOME FROM OPERATIONS: | |||||||||
| Acquisition and integration costs | 1,037 | 3,189 | |||||||
| Contingent consideration | 1,235 | (2,411 | ) | ||||||
| Intangible amortization | 7,324 | 6,593 | |||||||
| ADJUSTED INCOME FROM OPERATIONS | $ | 40,852 | $ | 67,371 | |||||
| REPLIGEN CORPORATION | |||||||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP (ADJUSTED) NET INCOME | |||||||||
| (Unaudited, amounts in thousands) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2023 | 2022 | ||||||||
| GAAP NET INCOME | $ | 28,829 | $ | 46,964 | |||||
| ADJUSTMENTS TO NET INCOME: | |||||||||
| Acquisition and integration costs | 1,037 | 3,189 | |||||||
| Contingent consideration | 1,235 | (2,411 | ) | ||||||
| Intangible amortization | 7,324 | 6,593 | |||||||
| Amortization of debt issuance costs | 457 | 452 | |||||||
| Tax effect of non-GAAP charges | (2,583 | ) | (1,042 | ) | |||||
| ADJUSTED NET INCOME | $ | 36,299 | $ | 53,745 | |||||
| REPLIGEN CORPORATION | |||||||||
| RECONCILIATION OF GAAP NET INCOME PER SHARE TO | |||||||||
| NON-GAAP (ADJUSTED) NET INCOME PER SHARE | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2023 | 2022 | ||||||||
| GAAP NET INCOME PER SHARE - DILUTED | $ | 0.51 | $ | 0.81 | |||||
| ADJUSTMENTS TO NET INCOME PER SHARE - DILUTED: | |||||||||
| Acquisition and integration costs | 0.02 | 0.05 | |||||||
| Contingent consideration | 0.02 | (0.04 | ) | ||||||
| Intangible amortization | 0.13 | 0.11 | |||||||
| Amortization of debt issuance costs(1) | 0.01 | 0.00 | |||||||
| Tax effect of non-GAAP charges | (0.05 | ) | (0.02 | ) | |||||
| ADJUSTED NET INCOME PER SHARE - DILUTED | $ | 0.64 | $ | 0.92 | |||||
| (1) | Represents 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 are already reflected in the GAAP net income per share - diluted EPS under the if-converted method of calculating diluted EPS. | ||||||||
| Totals may not add due to rounding. | |||||||||
| REPLIGEN CORPORATION | |||||||||
| RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA | |||||||||
| (Unaudited, amounts in thousands) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2023 | 2022 | ||||||||
| GAAP NET INCOME | $ | 28,829 | $ | 46,964 | |||||
| ADJUSTMENTS: | |||||||||
| Investment income | (5,486 | ) | (77 | ) | |||||
| Interest expense | 270 | 292 | |||||||
| Amortization of debt issuance costs | 457 | 452 | |||||||
| Income tax provision | 7,263 | 11,967 | |||||||
| Depreciation | 7,901 | 5,213 | |||||||
| Amortization(1) | 7,351 | 6,621 | |||||||
| EBITDA | 46,585 | 71,432 | |||||||
| OTHER ADJUSTMENTS: | |||||||||
| Acquisition and integration costs | 1,037 | 3,189 | |||||||
| Contingent consideration | 1,235 | (2,411 | ) | ||||||
| ADJUSTED EBITDA | $ | 48,857 | $ | 72,210 | |||||
| (1) | Includes amortization of milestone payments in accordance with GAAP of $28 and $27 for the three months ended March 31, 2023 and 2022, respectively. | ||||||||
| REPLIGEN CORPORATION | |||||||||
| RECONCILIATION OF GAAP COST OF SALES TO NON-GAAP (ADJUSTED) COST OF SALES | |||||||||
| (Unaudited, amounts in thousands) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2023 | 2022 | ||||||||
| GAAP COST OF SALES | $ | 81,845 | $ | 82,356 | |||||
| ADJUSTMENT TO COST OF SALES: | |||||||||
| Acquisition and integration costs | 11 | (527 | ) | ||||||
| ADJUSTED COST OF SALES | $ | 81,856 | $ | 81,829 | |||||
| REPLIGEN CORPORATION | |||||||||
| RECONCILIATION OF GAAP R&D EXPENSE TO NON-GAAP (ADJUSTED) R&D EXPENSE | |||||||||
| (Unaudited, amounts in thousands) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2023 | 2022 | ||||||||
| GAAP R&D | $ | 12,154 | $ | 12,155 | |||||
| ADJUSTMENT TO R&D: | |||||||||
| Acquisition and integration costs | 22 | (317 | ) | ||||||
| ADJUSTED R&D | $ | 12,176 | $ | 11,838 | |||||
| REPLIGEN CORPORATION | |||||||||
| RECONCILIATION OF GAAP SG&A EXPENSE TO NON-GAAP (ADJUSTED) SG&A EXPENSE | |||||||||
| (Unaudited, amounts in thousands) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2023 | 2022 | ||||||||
| GAAP SG&A EXPENSE | $ | 56,170 | $ | 54,300 | |||||
| ADJUSTMENTS TO SG&A EXPENSE: | |||||||||
| Acquisition and integration costs | (1,070 | ) | (2,345 | ) | |||||
| Intangible amortization | (7,324 | ) | (6,593 | ) | |||||
| ADJUSTED SG&A EXPENSE | $ | 47,776 | $ | 45,362 | |||||
| REPLIGEN CORPORATION | ||||||||
| RECONCILIATION OF GAAP NET INCOME GUIDANCE TO ADJUSTED (NON-GAAP NET INCOME GUIDANCE) | ||||||||
| (in thousands) | Twelve months ending December 31, 2023 | |||||||
| Low End | High End | |||||||
| GUIDANCE ON NET INCOME | $ | 97,000 | $ | 101,000 | ||||
| ADJUSTMENTS TO GUIDANCE ON NET INCOME: | ||||||||
| Acquisition and integration costs | 2,815 | 2,815 | ||||||
| Anticipated pre-tax amortization of | ||||||||
| acquisition-related intangible assets | 30,069 | 30,069 | ||||||
| Amortization of debt issuance costs | 1,834 | 1,834 | ||||||
| Contingent consideration | 8,735 | 8,735 | ||||||
| Tax effect of intangible amortization and integration | (6,320 | ) | (6,320 | ) | ||||
| Guidance rounding adjustment | (133 | ) | (133 | ) | ||||
| GUIDANCE ON ADJUSTED NET INCOME | $ | 134,000 | $ | 138,000 | ||||
| Totals may not add due to rounding. | ||||||||
| REPLIGEN CORPORATION | ||||||||
| RECONCILIATION OF GAAP NET INCOME PER SHARE GUIDANCE TO | ||||||||
| ADJUSTED (NON-GAAP) NET INCOME PER SHARE GUIDANCE | ||||||||
| Twelve months ending December 31, 2023 | ||||||||
| Low End | High End | |||||||
| GUIDANCE ON NET INCOME PER SHARE - DILUTED | 1.70 | 1.77 | ||||||
| ADJUSTMENTS TO GUIDANCE ON NET INCOME PER SHARE - DILUTED: | ||||||||
| Acquisition and integration costs | 0.05 | 0.05 | ||||||
| Anticipated pre-tax amortization of | ||||||||
| acquisition-related intangible assets | 0.53 | 0.53 | ||||||
| Amortization of debt issuance costs | 0.03 | 0.03 | ||||||
| Contingent consideration | 0.15 | 0.15 | ||||||
| Tax effect of intangible amortization and integration | (0.11 | ) | (0.11 | ) | ||||
| Guidance rounding adjustment | - | - | ||||||
| GUIDANCE ON ADJUSTED NET INCOME PER SHARE - DILUTED | $ | 2.35 | $ | 2.42 | ||||
| Totals may not add due to rounding. | ||||||||