BOTHELL, Wash., Aug. 10, 2017 /PRNewswire/ -- BioLife
Solutions, Inc. (NASDAQ: BLFS), the leading developer, manufacturer
and marketer of proprietary clinical grade cell and tissue
hypothermic storage and cryopreservation
freeze media ("BioLife" or the "Company"), today
reported operational highlights and financial results for the three
and six months ended June 30,
2017.
Revenue from biopreservation media product sales reached a new
high of $2.6 million in the second
quarter of 2017, an increase of 29% over the same period in 2016.
This was the eighth consecutive quarter of record revenue.
Revenue for the six months ended June
30, 2017 was $4.9 million, or
28% above 2016. Revenue growth for both periods was driven by sales
of
CryoStor® and HypoThermosol® clinical
grade biopreservation media products to the regenerative medicine
segment and BioLife's worldwide distributor network.
Mike Rice, BioLife President
& CEO, commented, "In the second quarter of 2017, we continued
to execute our growth plans as evidenced by our record revenue and
operating expense discipline. We are on track for a very
successful 2017, as we anticipate continued increased demand from
the regenerative medicine segment, customer regulatory approvals
and new customers in early phases of cell therapy development."
Q2 2017 Operational Highlights
- 8th consecutive quarter of record biopreservation
media revenue highlighted by the 3rd consecutive quarter
with at least $1 million in revenue
from the regenerative medicine segment.
- 28 new direct customers were gained, including initial orders
from 11 regenerative medicine companies.
- Executed a long-term supply agreement with Adaptimmune for
CryoStor use in the SPEAR T Cell Platform.
Q2 and YTD 2017 Financial Highlights
- Gross margin was 63% for the second quarter of 2017 compared to
56% in the second quarter of 2016. For the six months ended June
30, 2017, gross margin was 62% compared to 57% for the same
period last year.
- Operating expenses for the second quarter of 2017 totaled
$1.9 million, a reduction of 28%
compared to $2.7 million in the
second quarter of 2016. For the six months ended June 30, 2017, operating expenses were
$3.8 million, a reduction of 27%
compared to $5.3 million for the same
period last year.
- Operating loss for the second quarter of 2017 was $341,000, compared to $1.6
million in the second quarter of 2016. For the six months
ended June 30, 2017, the operating
loss was $805,000, compared to
$3.1 million for the same period last
year.
- Net loss attributable to BioLife for the second quarter of 2017
was $768,000, or $0.06 per share, compared to a net loss
attributable to BioLife of $1.4
million, or $0.11 per share,
in the second quarter of 2016. For the six months ended
June 30, 2017, the net loss
attributable to BioLife was $1.6
million, or $0.13 per share,
compared to a net loss attributable to BioLife of $2.6 million, or $0.21 per share, for the same period last
year.
- Adjusted EBITDA for the second quarter of 2017 was positive
$59,000, compared to negative
$969,000 in the second quarter of
2016. For the six months ended June 30,
2017, adjusted EBITDA was positive $15,000 compared to negative $2.0 million for the same period last year.
- On June 30, 2017, the outstanding
$4.25 million in principal and
accrued interest due to our largest shareholder, WAVI Holdings AG
("WAVI"), was converted into shares of non- convertible, redeemable
Series A Preferred stock.
Roderick de Greef, Chief
Financial Officer, remarked, "The positive trends in our financial
and operating results continued across the board in the second
quarter of 2017. The modification of our debt into shares of our
Series A Preferred stock bolstered our shareholder's equity, and
provides us with additional financial flexibility going forward. It
is also noteworthy that we reached positive adjusted EBITDA in this
quarter, which is earlier than we had originally anticipated."
2017 Guidance
Management reaffirms the full-year revenue guidance for
biopreservation media products, which is expected to grow between
20 - 25% over 2016, with revenue for 2017 in excess of $10 million.
Based on the financial results for the six months ended
June 30th, 2017,
management has revised the balance of our full-year 2017 guidance
as follows:
- Gross Margin for 2017 is now expected to be between 58% to 62%,
which is up from the previously provided range of 55% to 60%.
- Annual operating expenses are expected to be between
$8 to $8.5 million, which is down
from the previous range of $8 to $9
million.
- Positive adjusted EBITDA is now expected for the full-year of
2017.
Conference Call & Webcast
The Company will host a conference call and live webcast at
4:30 p.m. EST this afternoon. To
access the live webcast, please go to the BioLife Solutions website
at www.biolifesolutions.com, and click on the "Investors" tab,
and scroll down to select the "Events" icon where you will be
directed to the live webcast. Alternatively, you may access
the live conference call by dialing (844) 825-0512 (U.S. &
Canada) or (315) 625-6880
(International) with the following Conference ID: 65255951.
A webcast replay will be available approximately two hours
after the call and will be archived on
www.biolifesolutions.com for 90 days.
About BioLife Solutions
The Company's proprietary HypoThermosol® and
CryoStor® platform of solutions are highly valued
in the biobanking, drug discovery, and regenerative medicine
markets. BioLife's biopreservation media products are serum-free
and protein-free, fully defined, and are formulated to reduce
preservation-induced cell damage and death. BioLife's
enabling technology provides commercial companies and clinical
researchers significant improvement in shelf life and
post-preservation viability and function of cells, tissues, and
organs.
For more information please visit www.biolifesolutions.com,
and follow BioLife on Twitter.
Cautions Regarding Forward Looking Statements
Except for historical information contained herein, this
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to,
statements concerning the company's anticipated business and
operations, the potential utility of and market for its products
and services, potential revenue growth and market expansion,
commercial manufacturing of our customers' products, and projected
financial results, cash flow and liquidity, including the potential
for reaching positive adjusted EBITDA for the full-year of 2017.
All statements other than statements of historical fact are
statements that could be deemed forward-looking statements. These
statements are based on management's current expectations and
beliefs and are subject to a number of risks, uncertainties and
assumptions that could cause actual results to differ materially
from those described in the forward-looking statements, including
among other things, uncertainty regarding market adoption of
products; uncertainty regarding third party market projections;
market volatility; competition; litigation; and those other factors
described in our risk factors set forth in our filings with the
Securities and Exchange Commission from time to time, including our
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We
undertake no obligation to update the forward-looking statements
contained herein or to reflect events or circumstances occurring
after the date hereof, other than as may be required by applicable
law.
Discussion of Non-GAAP Financial Measures
BioLife's management believes that the non-GAAP measure of
"Adjusted EBITDA" enhances an investor's understanding of the
Company's financial and operating performance and its future
prospects by being more reflective of core operating performance.
BioLife's management uses this financial metric for strategic
decision making, forecasting future financial results, and
evaluating current period financial and operating performance. The
presentation of non-GAAP financial information is not intended to
be reviewed in isolation or as a substitute for, or superior to,
the financial information prepared and presented in accordance with
GAAP. A reconciliation of GAAP to non-GAAP results is
included in the financial tables in this press release.
Adjusted EBITDA Definition:
"Adjusted EBITDA" is a non-GAAP measure defined by BioLife as
net income/(loss) excluding interest expense/(income), income tax
expense, depreciation expense, amortization expense, stock-based
compensation expense and the loss/(gain) on equity method
investments.
Media & Investor Relations
Roderick de Greef
Chief Financial Officer
(425) 686-6002
rdegreef@biolifesolutions.com
BIOLIFE SOLUTIONS,
INC.
|
Unaudited
Condensed Consolidated Statements of Operations
|
(In thousands,
except per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30,
2017
|
|
June
30,
2016
|
|
|
June
30,
2017
|
|
|
June
30, 2016
|
Revenue
|
$
|
2,558
|
|
$
|
1,990
|
|
$
|
4,924
|
|
$
|
3,842
|
Cost of
product sales
|
|
957
|
|
|
873
|
|
|
1,885
|
|
|
1,644
|
Gross
profit
|
|
1,601
|
|
|
1,117
|
|
|
3,039
|
|
|
2,198
|
Gross
margin %
|
|
63%
|
|
|
56%
|
|
|
62%
|
|
|
57%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
319
|
|
|
599
|
|
|
605
|
|
|
1,103
|
|
Sales and
marketing
|
|
546
|
|
|
849
|
|
|
1,059
|
|
|
1,583
|
|
General and
administrative
|
|
1,077
|
|
|
1,263
|
|
|
2,180
|
|
|
2,598
|
Total
operating expenses
|
|
1,942
|
|
|
2,711
|
|
|
3,844
|
|
|
5,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
(341)
|
|
|
(1,594)
|
|
|
(805)
|
|
|
(3,086)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
other income (expenses)
|
|
(427)
|
|
|
(126)
|
|
|
(834)
|
|
|
(124)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(768)
|
|
|
(1,720)
|
|
|
(1,639)
|
|
|
(3,210)
|
Net loss attributable
to non-controlling interest
|
|
––
|
|
|
364
|
|
|
––
|
|
|
627
|
Net loss attributable
to BioLife Solutions, Inc.
|
$
|
(768)
|
|
$
|
(1,356)
|
|
$
|
(1,639)
|
|
$
|
(2,583)
|
|
Basic and diluted net
loss per common share attributable
to BioLife Solutions, Inc.
|
$
|
(0.06)
|
|
$
|
(0.11)
|
|
$
|
(0.13)
|
|
$
|
(0.21)
|
|
Basic and diluted
weighted average common shares
used to calculate net loss per common
share
|
|
13,101
|
|
|
12,568
|
|
|
13,033
|
|
|
12,513
|
|
|
Non-GAAP
Reconciliation:
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30, 2017
|
|
June
30, 2016
|
|
|
June
30, 2017
|
|
|
June
30, 2016
|
Net loss attributable
to BioLife Solutions, Inc.
|
$
|
(768)
|
|
$
|
(1,356)
|
|
$
|
(1,639)
|
|
$
|
(2,583)
|
Interest
expense/(income), net
|
|
105
|
|
|
8
|
|
|
188
|
|
|
6
|
Depreciation
expense
|
|
87
|
|
|
92
|
|
|
177
|
|
|
184
|
Amortization of debt
discount
|
|
62
|
|
|
31
|
|
|
156
|
|
|
31
|
EBITDA
|
|
(514)
|
|
|
(1,225)
|
|
|
(1,118)
|
|
|
(2,362)
|
|
Share-based
compensation (non-cash)
|
|
313
|
|
|
256
|
|
|
644
|
|
|
403
|
Loss from
equity-method investment in SAVSU (non-cash)
|
|
260
|
|
|
––
|
|
|
489
|
|
|
––
|
Adjusted
EBITDA
|
$
|
59
|
|
$
|
(969)
|
|
$
|
15
|
|
$
|
(1,959)
|
BIOLIFE SOLUTIONS,
INC.
|
|
Unaudited
Condensed Consolidated Balance Sheet Information
|
|
(In
thousands)
|
|
|
|
|
June
30,
2017
|
|
December
31,
2016
|
|
Cash and cash
equivalents
|
|
$
|
2,315
|
|
$
|
|
1,406
|
|
Accounts
receivable
|
|
|
1,173
|
|
|
|
1,194
|
|
Inventories
|
|
|
1,769
|
|
|
|
1,758
|
|
Total current
assets
|
|
|
5,679
|
|
|
|
4,628
|
|
Total
assets
|
|
|
8,482
|
|
|
|
7,927
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
1,045
|
|
|
|
1,133
|
|
Total
liabilities
|
|
|
1,661
|
|
|
|
4,761
|
|
Total Shareholders'
equity
|
|
|
6,821
|
|
|
|
3,166
|
|
BIOLIFE SOLUTIONS,
INC.
|
|
Unaudited
Condensed Consolidated Statement of Cash Flows
Information
|
|
(In
thousands)
|
|
|
|
|
Six Months
Ended
|
|
June
30, 2017
|
|
June
30, 2016
|
Cash provided/(used)
by operating activities
|
$
|
(272)
|
|
$
|
(2,775)
|
|
Cash provided/(used)
by investing activities
|
|
(78)
|
|
|
855
|
|
Cash provided/(used)
by financing activities
|
|
1,259
|
|
|
1,065
|
|
Net increase
(decrease) in cash and equivalents
|
$
|
909
|
|
$
|
(855)
|
|
|
|
|
|
|
|
|
|
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SOURCE BioLife Solutions, Inc.