Repligen Corporation (NASDAQ:RGEN), a life sciences company focused
on bioprocessing technology leadership, today reported financial
results for its third quarter of 2019. Provided in this press
release are financial highlights for the three- and nine-month
periods ended September 30, 2019, updated financial guidance for
the fiscal year 2019, and access information for today's webcast
and conference call.
Tony J. Hunt, President and Chief Executive Officer said, “We
are pleased with our strong performance in the third quarter,
reporting over $69 million in revenue and robust organic growth of
28%. Our filtration and chromatography franchises continued to
track ahead of expectations and in process analytics, our C
Technologies acquisition is tracking to plan, with the build out of
the commercial team close to completion. We expect to launch
important new products in the fourth quarter, including our
innovative TFDF systems and next generation ATF
controllers. With a strong Q4 order book, we are confident
about finishing the year with revenues in the range of $267 to $270
million.”
Third Quarter 2019
Highlights
- Revenue increased by 40% year-over-year as reported (42% at
constant currency) and 28% organically, to $69.4 million
- GAAP fully diluted EPS decreased to $0.03 compared to $0.10 for
the third quarter of 2018
- Adjusted (non-GAAP) fully diluted EPS increased to $0.26
compared to $0.18 for the third quarter of 2018
First Nine Months of 2019
Highlights
- Revenue increased by 41% year-over-year (43% at constant
currency), and 37% organically, to $200.8 million
- GAAP fully-diluted EPS increased to $0.37 compared to $0.24 for
the first nine months of 2018
- Adjusted (non-GAAP) fully diluted EPS increased to $0.87
compared to $0.47 for the first nine months of 2018
Financial Details for the Third Quarter
and First Nine Months of 2019
REVENUE
- Total revenue for the third quarter of 2019 increased to $69.4
million compared to $49.5 million for the third quarter of 2018, a
year-over-year gain of 40% as reported and 42% at constant
currency, with organic growth of 28%.
- Total revenue for the first nine months of 2019 increased to
$200.8 million compared to $142.1 million for the first nine months
of 2018, a year-over-year gain of 41% as reported and 43% at
constant currency, with organic growth of 37%.
GROSS PROFIT and GROSS MARGIN
- Gross profit (GAAP) for the third quarter of 2019 was $38.0
million, a year-over-year increase of $10.7 million and
representing 54.7% gross margin. Adjusted gross profit (non-GAAP)
for the third quarter of 2019 was $39.0 million, a year-over-year
increase of $11.4 million and representing 56.1% gross
margin.
- Gross profit (GAAP) for the first nine months of 2019 was
$111.8 million, a year-over-year increase of $32.6 million and
representing 55.7% gross margin. Adjusted gross profit (non-GAAP)
for the first nine months of 2019 was $114.3 million, a
year-over-year increase of $34.6 million and representing 56.9%
gross margin.
OPERATING INCOME
- Operating income (GAAP) for the third quarter of 2019 was $8.0
million compared to $7.9 million for the third quarter of 2018.
Adjusted operating income (non-GAAP) for the third quarter of 2019
was $15.1 million, an increase of 34% compared to $11.3 million for
the third quarter of 2018.
- Operating income (GAAP) for the first nine months of 2019 was
$30.2 million, an increase of 67% compared to $18.1 million for the
first nine months of 2018. Adjusted operating income (non-GAAP) for
the first nine months of 2019 was $50.8 million, an increase of 79%
compared to $28.4 million for the first nine months of 2018.
NET INCOME
- Net income (GAAP) for the third quarter of 2019 was $1.7
million compared to $4.8 million for the third quarter of 2018.
Adjusted net income (non-GAAP) for the third quarter of 2019 was to
$13.3 million, an increase of 62% compared to $8.2 million for the
third quarter of 2018.
- Net income (GAAP) for the first nine months of 2019 was $17.8
million, an increase of 62% compared to $11.0 million for the first
nine months of 2018. Adjusted net income (non-GAAP) for the first
nine months of 2019 was $41.7 million, an increase of 97% compared
to $21.2 million for the first nine months of 2018.
EARNINGS PER SHARE
- Earnings per share (GAAP) for the third quarter of 2019 were
$0.03 on a fully diluted basis, compared to $0.10 for the third
quarter of 2018. Adjusted EPS (non-GAAP) for the third quarter of
2019 increased to $0.26 on a fully diluted basis, compared to $0.18
for the 2018 period.
- Earnings per share (GAAP) for the first nine months of 2019
increased to $0.37 on a fully diluted basis, compared to $0.24 for
the first nine months of 2018. Adjusted EPS (non-GAAP) for the
first nine months of 2019 increased to $0.87 on a fully diluted
basis, compared to $0.47 for the 2018 period.
EBITDA
- EBITDA, a non-GAAP financial measure, for the third quarter of
2019 was $8.4 million compared to $11.6 million for the third
quarter of 2018. Adjusted EBITDA for the third quarter of 2019 was
$17.3 million, an increase of 39% compared to $12.4 million for the
third quarter of 2018.
- EBITDA for the first nine months of 2019 was $39.3 million, an
increase of 31% compared to $30.1 million for the third quarter of
2018. Adjusted EBITDA for the first nine months of 2019 was $56.5
million, an increase of 74% compared to $32.4 million for the first
nine months of 2018.
CASH
- Our cash and cash equivalents at September 30, 2019 were $513.5
million, an increase of $319.6 million from $193.8 million at
December 31, 2018.
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 2019
Our financial guidance for the fiscal year 2019 is based on
expectations for our existing business and includes the financial
impact of our acquisition of C Technologies (which closed on May
31, 2019). We expect C Technologies to contribute $16-$17 million
in revenue over the seven months of Repligen’s ownership in 2019.
The guidance below excludes the impact of potential additional
acquisitions and future fluctuations in foreign currency exchange
rates.
FISCAL YEAR 2019 GUIDANCE:
- Total revenue is projected to be in the range of $267-$270
million, an increase from our previous guidance of $264-$268
million. Our current guidance reflects overall revenue growth of
38%-39%, and organic revenue growth of 31%-32%.
- Gross margin is expected to be 55%-56%, consistent with our
previous guidance. Adjusted gross margin is expected to be 56%-57%,
consistent with our previous guidance.
- Income from operations is expected to be in the range of
$35-$37 million on a GAAP basis, which includes the impact of $14.1
million in deal-related and inventory step-up costs associated with
our acquisition of C Technologies. This compares to our previous
guidance of $33-$35 million. Adjusted (non-GAAP) income from
operations is expected to be in the range of $62-$64 million, an
increase from our previous guidance of $60-$62 million.
- Net income is expected to be in the range of $19-$21 million on
a GAAP basis, compared to our previous guidance of $17-$19 million.
Adjusted (non-GAAP) net income is expected to be in the range of
$50-$52 million, an increase from our previous guidance of $47-$49
million. Our current guidance reflects a tax rate of 22.5% on
adjusted pre-tax income compared to our previous guidance of
24%.
- Fully diluted GAAP EPS is expected to be in the range of
$0.38-$0.42, an increase from our previous guidance of $0.34-$0.38.
Adjusted (non-GAAP) fully diluted EPS is expected to be in the
range of $1.00-$1.04, an increase from our previous guidance of
$0.94-$0.98.
Our non-GAAP guidance for the fiscal year 2019
excludes the following items:
- $12.6 million estimated acquisition and integration expenses
associated with our acquisitions of Spectrum Inc. and C
Technologies.
- Inventory step-up charges of $1.5 million related to the
acquisition of C Technologies.
- $13.4 million estimated intangible amortization expense; $0.5
million in cost of product revenue and $12.9 million in
G&A.
- $7.5 million of non-cash interest expense (Other income
(expense)) related to our convertible debt notes.
- $5.7 million of expense related to the extinguishment of our
2016 convertible notes due 2021.
Our non-GAAP guidance for the fiscal year 2019
includes:
- An income tax increase of $10.0 million, representing the tax
impact of acquisition costs and intangible amortization.
All reconciliations of GAAP to adjusted
(non-GAAP) guidance are detailed in the tables included later in
this press release.
Conference CallRepligen will host a conference
call and webcast today, October 31, 2019, at 8:30 a.m. EDT, to
discuss third quarter of 2019 financial results and corporate
developments. The conference call will be accessible by dialing
toll-free (844) 701-1063 for domestic callers or (412) 317-5487 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
10136347.
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 income from
operations and adjusted operating margin, earnings before interest,
taxes, depreciation and amortization (EBITDA), adjusted EBITDA,
adjusted net income, adjusted net income per share, adjusted
earnings per diluted share (EPS), adjusted cost of sales, adjusted
research & development expense, adjusted selling, general and
administrative expense and income tax expense. The Company provides
organic revenue growth rates in constant currency to 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 to its past revenue performance. The Company
provides revenue growth rates in constant currency 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
related to the Company’s acquisitions of TangenX Technology
Corporation, Spectrum Lifesciences, LLC (formerly known as
Spectrum, Inc.), and C Technologies Inc.; inventory step-up
charges; intangible amortization costs; non-cash interest expense;
the impact on tax of intangible amortization and acquisition costs;
and, in the case of EBITDA, cash interest expense related to the
Company’s convertible debt. 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 CorporationRepligen Corporation
is a global life sciences company that develops and commercializes
highly innovative bioprocessing technologies and systems that
increase 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
corporate headquarters are located in Waltham, MA (USA), and we
have additional administrative and manufacturing operations in
Marlborough, MA; Bridgewater, NJ; Rancho Dominguez, CA; Lund,
Sweden; Breda, The Netherlands and Ravensburg, Germany.
The following constitutes a “Safe Harbor” statement under the
Private Securities Litigation Reform Act of 1995: This press
release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of 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 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 cash and
investment position, demand in the markets in which we operate, the
expected performance of our business, the expected performance of
the C Technologies business, the expected performance and success
of our strategic partnerships, management’s strategy, plans and
objectives for future operations or acquisitions, product
development and sales, selling, general and administrative
expenditures, intellectual property, development and manufacturing
plans, availability of materials and product and adequacy of
capital resources and financing plans constitute forward-looking
statements identified by words like “believe,” “expect,” “may,”
“will,” “should,” “seek,” “anticipate,” or “could” and similar
expressions. Such forward-looking statements 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: our ability to successfully grow
our bioprocessing business, including as a result of acquisition,
commercialization or partnership opportunities; our ability to
successfully integrate any acquisitions, our ability to develop and
commercialize products and the market acceptance of our products;
our ability to integrate the C Technologies business successfully
into our business and achieve the expected benefits of the
acquisition; 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 compliance with all U.S. Food and Drug Administration and EMEA
regulations; our volatile stock price; and other risks detailed in
Repligen’s most recent Annual Report on Form 10-K on file with the
Securities and Exchange Commission and the other reports that
Repligen periodically files with the Securities and Exchange
Commission. Actual results may differ materially from those
Repligen contemplated by these forward-looking statements. These
forward looking statements reflect management’s current views and
Repligen does not undertake to update any of these forward-looking
statements to reflect a change in its views or events or
circumstances 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 September 30, |
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
Product revenue |
$ |
69,419 |
|
|
$ |
49,500 |
|
|
$ |
200,701 |
|
|
$ |
142,042 |
|
|
Royalty and other revenue |
|
26 |
|
|
|
29 |
|
|
|
70 |
|
|
|
48 |
|
|
Total revenue |
|
69,445 |
|
|
|
49,529 |
|
|
|
200,771 |
|
|
|
142,090 |
|
| Costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of product revenue |
|
31,425 |
|
|
|
22,183 |
|
|
|
88,978 |
|
|
|
62,939 |
|
|
Research and development |
|
5,427 |
|
|
|
3,601 |
|
|
|
14,278 |
|
|
|
12,669 |
|
|
Selling, general and administrative |
|
24,629 |
|
|
|
15,859 |
|
|
|
67,326 |
|
|
|
48,347 |
|
|
|
|
61,481 |
|
|
|
41,643 |
|
|
|
170,582 |
|
|
|
123,955 |
|
| Income from
operations |
|
7,964 |
|
|
|
7,886 |
|
|
|
30,189 |
|
|
|
18,135 |
|
| Investment
income |
|
1,898 |
|
|
|
558 |
|
|
|
3,616 |
|
|
|
1,251 |
|
| Loss on
extinguishment of debt |
|
(5,650 |
) |
|
|
- |
|
|
|
(5,650 |
) |
|
|
- |
|
| Interest
expense |
|
(2,857 |
) |
|
|
(1,687 |
) |
|
|
(6,326 |
) |
|
|
(5,008 |
) |
| Other
income, net |
|
316 |
|
|
|
(134 |
) |
|
|
(23 |
) |
|
|
187 |
|
| Income
before income taxes |
|
1,671 |
|
|
|
6,623 |
|
|
|
21,806 |
|
|
|
14,565 |
|
| Income tax
provision |
|
12 |
|
|
|
1,829 |
|
|
|
3,999 |
|
|
|
3,586 |
|
| Net
income |
$ |
1,659 |
|
|
$ |
4,794 |
|
|
$ |
17,807 |
|
|
$ |
10,979 |
|
| Earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.03 |
|
|
$ |
0.11 |
|
|
$ |
0.38 |
|
|
$ |
0.25 |
|
|
Diluted |
$ |
0.03 |
|
|
$ |
0.10 |
|
|
$ |
0.37 |
|
|
$ |
0.24 |
|
| Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
50,851,623 |
|
|
|
43,822,472 |
|
|
|
47,086,779 |
|
|
|
43,728,503 |
|
|
Diluted |
|
51,809,289 |
|
|
|
45,828,175 |
|
|
|
47,929,581 |
|
|
|
45,132,115 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Balance Sheet Data: |
September 30, 2019 |
|
December 31, 2018 |
|
|
|
|
| Cash, cash
equivalents and marketable securities |
$ |
513,454 |
|
|
$ |
193,822 |
|
|
|
|
|
| Working
capital |
|
584,563 |
|
|
|
145,897 |
|
|
|
|
|
| Total
assets |
|
1,378,708 |
|
|
|
774,621 |
|
|
|
|
|
| Long-term
obligations |
|
292,287 |
|
|
|
29,211 |
|
|
|
|
|
| Accumulated
earnings (deficit) |
|
2,239 |
|
|
|
(15,568 |
) |
|
|
|
|
|
Stockholders' equity |
|
1,049,444 |
|
|
|
615,568 |
|
|
|
|
|
| REPLIGEN
CORPORATION |
|
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP
(ADJUSTED) INCOME FROM OPERATIONS |
| (Unaudited,
amounts in thousands) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
|
GAAP INCOME FROM OPERATIONS |
$ |
7,964 |
|
|
$ |
7,886 |
|
|
$ |
30,189 |
|
|
$ |
18,135 |
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME FROM OPERATIONS: |
|
|
|
|
|
|
|
| |
Acquisition
and integration costs |
|
2,953 |
|
|
|
805 |
|
|
|
9,573 |
|
|
|
2,313 |
|
| |
Intangible
amortization |
|
3,900 |
|
|
|
2,608 |
|
|
|
9,562 |
|
|
|
7,906 |
|
| |
Inventory
step-up charges |
|
314 |
|
|
|
- |
|
|
|
1,483 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTED INCOME FROM OPERATIONS |
$ |
15,131 |
|
|
$ |
11,299 |
|
|
$ |
50,807 |
|
|
$ |
28,354 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN
CORPORATION |
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP (ADJUSTED)
NET INCOME |
| (Unaudited,
amounts in thousands) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
|
GAAP NET INCOME |
$ |
1,659 |
|
|
$ |
4,794 |
|
|
$ |
17,807 |
|
|
$ |
10,979 |
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO NET INCOME: |
|
|
|
|
|
|
|
| |
Acquisition
and integration costs |
|
2,953 |
|
|
|
805 |
|
|
|
10,074 |
|
|
|
2,313 |
|
| |
Inventory
step-up charges |
|
314 |
|
|
|
- |
|
|
|
1,483 |
|
|
|
- |
|
| |
Intangible
amortization |
|
3,900 |
|
|
|
2,608 |
|
|
|
9,562 |
|
|
|
7,906 |
|
| |
Loss on
extinguishment of debt |
|
5,650 |
|
|
|
- |
|
|
|
5,650 |
|
|
|
- |
|
| |
Non-cash
interest expense |
|
2,631 |
|
|
|
1,071 |
|
|
|
4,863 |
|
|
|
3,160 |
|
| |
Tax effect
of intangible amortization and acquisition costs(1) |
|
(3,781 |
) |
|
|
(1,063 |
) |
|
|
(7,742 |
) |
|
|
(3,171 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME |
$ |
13,326 |
|
|
$ |
8,215 |
|
|
$ |
41,697 |
|
|
$ |
21,187 |
|
| |
|
|
|
|
|
|
|
|
|
(1 |
) |
Effective as of the quarter ended September 30, 2019, the Company
changed its methodology for calculating its non-GAAP financial
measures to reflect the tax effect of non-cash interest.
Accordingly, the non-GAAP financial measures for the three and nine
months ended September 30, 2018 have been updated to be consistent
with the methodology used to calculate such measures for the
current periods. |
|
|
|
|
|
|
|
|
| REPLIGEN
CORPORATION |
|
RECONCILIATION OF GAAP NET INCOME PER SHARE TO NON-GAAP
(ADJUSTED) NET INCOME PER SHARE |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
|
GAAP NET INCOME PER SHARE - DILUTED |
$ |
0.03 |
|
|
$ |
0.10 |
|
|
$ |
0.37 |
|
|
$ |
0.24 |
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO NET INCOME PER SHARE - DILUTED: |
|
|
|
|
|
|
|
| |
Acquisition
and integration costs |
|
0.06 |
|
|
|
0.02 |
|
|
|
0.21 |
|
|
$ |
0.05 |
|
| |
Inventory
step-up charges |
|
0.01 |
|
|
|
- |
|
|
|
0.03 |
|
|
$ |
- |
|
| |
Intangible
amortization |
|
0.08 |
|
|
|
0.06 |
|
|
|
0.20 |
|
|
$ |
0.18 |
|
| |
Loss on
extinguishment of debt |
|
0.11 |
|
|
|
- |
|
|
|
0.12 |
|
|
$ |
- |
|
| |
Non-cash
interest expense |
|
0.05 |
|
|
|
0.02 |
|
|
|
0.10 |
|
|
$ |
0.07 |
|
| |
Tax effect
of intangible amortization and acquisition costs(1) |
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
(0.16 |
) |
|
$ |
(0.07 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME PER SHARE - DILUTED |
$ |
0.26 |
|
|
$ |
0.18 |
|
|
$ |
0.87 |
|
|
$ |
0.47 |
|
| |
|
|
|
|
|
|
|
|
|
Totals may not add due to rounding. |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
(1 |
) |
Effective as of the quarter ended September 30, 2019, the Company
changed its methodology for calculating its non-GAAP financial
measures to reflect the tax effect of non-cash interest.
Accordingly, the non-GAAP financial measures for the three and nine
months ended September 30, 2018 have been updated to be consistent
with the methodology used to calculate such measures for the
current periods. |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN
CORPORATION |
|
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA |
| (Unaudited,
amounts in thousands) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
|
GAAP NET INCOME |
$ |
1,659 |
|
|
$ |
4,794 |
|
|
$ |
17,807 |
|
|
$ |
10,979 |
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS: |
|
|
|
|
|
|
|
| |
Investment
Income |
|
(1,898 |
) |
|
|
(558 |
) |
|
|
(3,616 |
) |
|
|
(1,251 |
) |
| |
Interest
Expense |
|
2,857 |
|
|
|
1,687 |
|
|
|
6,326 |
|
|
|
5,008 |
|
| |
Tax
Provision |
|
12 |
|
|
|
1,829 |
|
|
|
3,999 |
|
|
|
3,586 |
|
| |
Depreciation |
|
1,810 |
|
|
|
1,273 |
|
|
|
5,147 |
|
|
|
3,871 |
|
| |
Amortization(1) |
|
3,928 |
|
|
|
2,608 |
|
|
|
9,644 |
|
|
|
7,906 |
|
| |
|
|
|
|
|
|
|
|
|
EBITDA |
|
8,368 |
|
|
|
11,633 |
|
|
|
39,307 |
|
|
|
30,099 |
|
| |
|
|
|
|
|
|
|
|
|
OTHER ADJUSTMENTS: |
|
|
|
|
|
|
|
| |
Acquisition
and integration costs |
|
2,953 |
|
|
|
805 |
|
|
|
10,074 |
|
|
|
2,313 |
|
| |
Loss on
extinguishment of debt |
|
5,650 |
|
|
|
- |
|
|
|
5,650 |
|
|
|
- |
|
| |
Inventory
step-up charges |
|
314 |
|
|
|
- |
|
|
|
1,483 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA |
$ |
17,285 |
|
|
$ |
12,438 |
|
|
$ |
56,514 |
|
|
$ |
32,412 |
|
| |
|
|
|
|
|
|
|
|
|
(1 |
) |
Fiscal 2019 includes amortization of milestone payments in
accordance with GAAP of $28 and $83 for the three- and nine-month
periods, respectively. |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN
CORPORATION |
|
RECONCILIATION OF GAAP COST OF SALES TO NON-GAAP (ADJUSTED)
COST OF SALES |
| (Unaudited,
amounts in thousands) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
|
GAAP COST OF SALES |
$ |
31,425 |
|
|
$ |
22,183 |
|
|
$ |
88,978 |
|
|
$ |
62,939 |
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO COST OF SALES: |
|
|
|
|
|
|
|
| |
Acquisition
and integration costs |
|
(519 |
) |
|
|
(59 |
) |
|
|
(670 |
) |
|
|
(170 |
) |
| |
Inventory
step-up charges |
|
(314 |
) |
|
|
- |
|
|
|
(1,483 |
) |
|
|
- |
|
| |
Intangible
amortization |
|
(128 |
) |
|
|
(137 |
) |
|
|
(392 |
) |
|
|
(430 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTED COST OF SALES |
$ |
30,464 |
|
|
$ |
21,987 |
|
|
$ |
86,433 |
|
|
$ |
62,339 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN
CORPORATION |
|
RECONCILIATION OF GAAP R&D EXPENSE TO NON-GAAP
(ADJUSTED) R&D EXPENSE |
| (Unaudited,
amounts in thousands) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
|
GAAP R&D EXPENSE |
$ |
5,427 |
|
|
$ |
3,601 |
|
|
$ |
14,278 |
|
|
$ |
12,669 |
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO R&D EXPENSE: |
|
|
|
|
|
|
|
| |
Acquisition
and integration costs |
|
(278 |
) |
|
|
- |
|
|
|
(405 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTED R&D EXPENSE |
$ |
5,149 |
|
|
$ |
3,601 |
|
|
$ |
13,873 |
|
|
$ |
12,669 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN
CORPORATION |
|
RECONCILIATION OF GAAP SG&A EXPENSE TO NON-GAAP
(ADJUSTED) SG&A EXPENSE |
| (Unaudited,
amounts in thousands) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
|
GAAP SG&A EXPENSE |
$ |
24,629 |
|
|
$ |
15,859 |
|
|
$ |
67,326 |
|
|
$ |
48,347 |
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO SG&A EXPENSE: |
|
|
|
|
|
|
|
| |
Acquisition
and integration costs |
|
(2,156 |
) |
|
|
(746 |
) |
|
|
(8,499 |
) |
|
|
(2,143 |
) |
| |
Intangible
amortization |
|
(3,772 |
) |
|
|
(2,471 |
) |
|
|
(9,170 |
) |
|
|
(7,476 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTED SG&A EXPENSE |
$ |
18,701 |
|
|
$ |
12,642 |
|
|
$ |
49,657 |
|
|
$ |
38,728 |
|
| |
REPLIGEN
CORPORATION |
| |
RECONCILIATION OF GAAP NET INCOME GUIDANCE TO ADJUSTED
(NON-GAAP NET INCOME GUIDANCE) |
| |
|
|
|
|
|
| |
(in thousands) |
Twelve months ending December 31, 2019 |
| |
|
|
Low End |
|
High End |
| |
GUIDANCE ON NET INCOME |
$ |
19,000 |
|
|
$ |
21,000 |
|
| |
ADJUSTMENTS TO GUIDANCE ON NET INCOME: |
|
|
|
| |
Acquisition and integration costs |
|
12,645 |
|
|
|
12,645 |
|
| |
Inventory step-up charges |
|
1,483 |
|
|
|
1,483 |
|
| |
Anticipated pre-tax amortization of |
|
|
|
| |
acquisition-related intangible assets |
|
13,442 |
|
|
|
13,442 |
|
| |
Non-cash interest expense |
|
7,521 |
|
|
|
7,521 |
|
| |
Loss on debt extinguishment |
|
5,650 |
|
|
|
5,650 |
|
| |
Tax effect of intangible amortization and integration |
|
(9,966 |
) |
|
|
(9,966 |
) |
| |
Guidance rounding adjustment |
|
225 |
|
|
|
225 |
|
| |
GUIDANCE ON ADJUSTED NET INCOME |
$ |
50,000 |
|
|
$ |
52,000 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
REPLIGEN
CORPORATION |
| |
RECONCILIATION OF GAAP NET INCOME PER SHARE GUIDANCE
TO |
| |
ADJUSTED
(NON-GAAP) NET INCOME PER SHARE GUIDANCE |
| |
|
|
|
|
|
| |
|
|
Twelve months ending December 31, 2019 |
| |
|
|
Low End |
|
High End |
| |
GUIDANCE ON NET INCOME PER SHARE - DILUTED |
$ |
0.38 |
|
|
$ |
0.42 |
|
| |
ADJUSTMENTS
TO GUIDANCE ON NET INCOME PER SHARE - DILUTED: |
|
. |
|
|
| |
Acquisition and integration costs |
$ |
0.25 |
|
|
$ |
0.25 |
|
| |
Inventory step-up charges |
$ |
0.03 |
|
|
$ |
0.03 |
|
| |
Anticipated pre-tax amortization of |
|
|
|
| |
acquisition-related intangible assets |
$ |
0.27 |
|
|
$ |
0.27 |
|
| |
Non-cash interest expense |
$ |
0.15 |
|
|
$ |
0.15 |
|
| |
Loss on debt extinguishment |
$ |
0.11 |
|
|
$ |
0.11 |
|
| |
Tax effect of intangible amortization and integration |
$ |
(0.20 |
) |
|
$ |
(0.20 |
) |
| |
Guidance rounding adjustment |
|
- |
|
|
|
- |
|
| |
GUIDANCE ON ADJUSTED NET INCOME PER SHARE - DILUTED |
$ |
1.00 |
|
|
$ |
1.04 |
|
| |
|
|
|
|
|
| |
Totals may not add due to rounding. |
|
|
|
Repligen (NASDAQ:RGEN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Repligen (NASDAQ:RGEN)
Historical Stock Chart
From Sep 2023 to Sep 2024
