Repligen Corporation (NASDAQ:RGEN), a life sciences company focused
on bioprocessing technology leadership, today reported financial
results for its third quarter of 2020. Provided in this press
release are financial highlights for the three- and nine- month
periods ended September 30, 2020, updates to our financial guidance
for the fiscal year 2020 and access information for today’s webcast
and conference call.
Tony J. Hunt, President and Chief Executive Officer said, “We
are pleased with our momentum during the third quarter, reporting
over $94 million in revenue and robust organic growth of 31%. COVID
programs accounted for approximately 14% of revenue during the
quarter, and approximately 55% of revenue growth. We continued to
see strong revenue and order demand as both COVID customers and
gene therapy accounts drove accelerated growth across our
franchises, with Filtration performing exceptionally well. Direct
product orders were up over 100% year-on-year, positioning us well
for an excellent finish to 2020 and a strong start to 2021.”
Mr. Hunt added, “In addition to our strong business performance
we were delighted to close on our deal to acquire Non-Metallic
Solutions and also sign an agreement to acquire ARTeSYN
Biosolutions. These acquisitions broaden and strengthen our systems
strategy - where single-use systems and consumables - including
flow path assemblies - come together for an enhanced customer
offering with meaningful process and yield advantages.”
Financial Highlights for the Third
Quarter 2020
- Revenue increased by 35% year-over-year as reported and 31%
organically, to reach a quarterly record $94.1 million.
- Gross margin (GAAP) was 57.9%, an increase of 3.1 points, and
adjusted gross margin (non-GAAP) was 58.0%, an increase of 1.9
points compared to third quarter of 2019.
- Operating margin (GAAP) was 22.3%, an increase of 10.8 points,
and adjusted operating margin (non-GAAP) was 28.6%, an increase of
6.8 points compared to the third quarter of 2019.
- Fully diluted EPS (GAAP) increased to $0.27 compared to $0.03
for the third quarter of 2019, and adjusted fully diluted EPS
(non-GAAP) increased to $0.40 compared to $0.26 for the third
quarter of 2019.
Financial Details for the Third Quarter
and First Nine Months of 2020
REVENUE
- Total revenue for the third quarter of 2020 increased to $94.1
million compared to $69.4 million for the third quarter of 2019, a
year-over-year gain of 35% as reported and 34% at constant
currency, with organic growth of 31%.
- Total revenue for the first nine months of 2020 increased to
$257.6 million compared to $200.8 million for the first nine months
of 2019, a year-over-year gain of 28% as reported and at constant
currency, with organic growth of 22%.
GROSS PROFIT and GROSS MARGIN
- Gross profit (GAAP) for the third quarter of 2020 was $54.4
million, a year-over-year increase of $16.4 million and
representing 57.9% gross margin.
- Adjusted gross profit (non-GAAP) for the third quarter of 2020
was $54.6 million, a year-over-year increase of $15.6 million and
representing 58% gross margin.
- Gross profit (GAAP) for the first nine months of 2020 was
$149.1 million, a year-over-year increase of $37.3 million and
representing 57.9% gross margin.
- Adjusted gross profit (non-GAAP) for the first nine months of
2020 was $150.0 million, a year-over-year increase of $35.7 million
and representing 58.2% gross margin.
OPERATING INCOME
- Operating income (GAAP) for the third quarter of 2020 was $21.0
million, an increase of $13 million compared to $8.0 million for
the third quarter of 2019. Adjusted operating income (non-GAAP) for
the third quarter of 2020 was $26.9 million, an increase of $11.7
million compared to $15.1 million for the third quarter of
2019.
- Operating income (GAAP) for the first nine months of 2020 was
$52.4 million, an increase of $22.2 million compared to $30.2
million for the first nine months of 2019. Adjusted operating
income (non-GAAP) for the first nine months of 2020 was $70.8
million, an increase of $20.0 million compared to $50.8 million for
the first nine months of 2019.
NET INCOME
- Net income (GAAP) for the third quarter of 2020 was $14.6
million, an increase of $12.9 million compared to $1.7 million for
the third quarter of 2019. Adjusted net income (non-GAAP) for the
third quarter of 2020 was $21.2 million, an increase of $7.8
million compared to $13.3 million for the third quarter of
2019.
- Net income (GAAP) for the first nine months of 2020 was $40.2
million, an increase of $22.4 million compared to $17.8 million for
the first nine months of 2019. Adjusted net income (non-GAAP) for
the first nine months of 2020 was $60.4 million, an increase of
$18.7 million compared to $41.7 million for the first nine months
of 2019.
EARNINGS PER SHARE
- Earnings per share (GAAP) for the third quarter of 2020
increased to $0.27 on a fully diluted basis, compared to $0.03 for
the third quarter of 2019. Adjusted EPS (non-GAAP) for the third
quarter of 2020 increased to $0.40 on a fully diluted basis,
compared to $0.26 for the 2019 period.
- Earnings per share (GAAP) for the first nine months of 2020
increased to $0.75 on a fully diluted basis, compared to $0.37 for
the first nine months of 2019. Adjusted EPS (non-GAAP) for the
first nine months of 2020 increased to $1.13 on a fully diluted
basis, compared to $0.87 for the first nine months of 2019.
EBITDA
- EBITDA, a non-GAAP financial measure, increased to $27.4
million for the third quarter of 2020, compared to $8.4 million for
the third quarter of 2019. Adjusted EBITDA for the third quarter of
2020 increased to $29.4 million, compared to $17.3 million for the
third quarter of 2019.
- EBITDA increased to $71.4 million for the first nine months of
2020, compared to $39.3 million for the first nine months of 2019.
Adjusted EBITDA for the first nine months of 2020 increased to
$78.0 million, compared to $56.5 million for the first nine months
of 2019.
CASH
- Our cash and cash equivalents at September 30, 2020 were $553.3
million, an increase of $24.9 million from $528.4 million at
December 31, 2019.
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 2020
Our financial guidance for the fiscal year 2020 is based on
expectations for our existing business and includes the financial
impact of our acquisitions of C Technologies (which closed on May
31, 2019), Engineered Molding Technology (which closed on July 13,
2020) and Non-Metallic Solutions, Inc. (which closed on October 20,
2020). The guidance below does not include the impact of our
proposed acquisition of ARTeSYN Biosolutions, which is expected to
close during the fourth quarter of 2020. The guidance also excludes
the impact of potential additional acquisitions and future
fluctuations in foreign currency exchange rates.
FISCAL YEAR 2020 GUIDANCE:
- Total revenue is projected to be in the range of $348-$352
million, an increase from our previous guidance of $332-$340
million. This updated revenue guidance includes approximately $1
million in projected revenue from Non-Metallic Solutions, and
reflects overall revenue growth of 29%-30%, with organic revenue
growth in the range of 23%-24%.
- COVID programs are expected to account for approximately 10% of
revenue.
- Gross margin is expected to be in the range of 57.5%-58.0% on
both a GAAP and non-GAAP basis, compared to our previous guidance
of 56.5%-57%.
- Income from operations is expected to be in the range of
$66-$68 million on a GAAP basis, an increase from our previous
guidance of $59-$62 million. Adjusted income from operations
(non-GAAP) is expected to be in the range of $91-$93 million, an
increase from our previous guidance of $81-$84 million.
- Net income is expected to be in the range of $47.5-$49.5
million on a GAAP basis, an increase from our previous guidance of
$41-$44 million. Adjusted net income (non-GAAP) is expected to be
in the range of $75-$77 million, an increase from our previous
guidance of $66-$69 million. Our current guidance reflects an
adjusted tax rate of 17% on adjusted pre-tax income, compared to
our previous guidance of 18%.
- Fully diluted EPS (GAAP) is expected to be in the range of
$0.89-$0.93, an increase from our previous guidance of $0.77-$0.82.
Adjusted fully diluted EPS (non-GAAP) is expected to be in the
range of $1.41-$1.45, an increase from our previous guidance of
$1.24-$1.29.
Our non-GAAP guidance for the fiscal year 2020 excludes the
following items:
- $9.2 million estimated acquisition and integration expenses;
$0.5 million in cost of product revenue, $0.5 million in R&D
and $8.2 million in selling, general and administrative expense
(“SG&A”).
- Expected inventory step-up charges of $0.2 million related to
the acquisitions of Engineered Molding Technology and Non-Metallic
Solutions.
- $15.8 million estimated intangible amortization expense; $0.3
million in cost of product revenue and $15.6 million in
SG&A.
- $11.0 million of non-cash interest expense (Other income
(expense)) related to our convertible debt notes.
Our non-GAAP guidance for the fiscal year 2020
includes:
- An income tax expense of $8.6
million, representing the tax impact of acquisition and
integration, inventory step-up, and intangible amortization
expenses, as well as non-cash interest expenses related to our
convertible debt notes.
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, November 5, 2020, at 8:30 a.m. EST, to
discuss third quarter 2020 financial results and corporate
developments. The conference call will be accessible by dialing
toll-free (844) 763-8274 for domestic callers or (412) 717-9224 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
10149396.
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
SG&A, adjusted income tax expense and adjusted income tax rate.
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,
inventory step-up charges and intangible amortization costs related
to the Company’s acquisitions, as well as non-cash interest
expenses related to the Company’s convertible debt, 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, as well as EBITDA to adjusted EBITDA, 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
Rancho Dominguez, CA; Marlborough and Auburn, MA; Bridgewater, NJ;
Clifton Park, NY; Dallas, TX; Ravensburg, Germany; Breda, the
Netherlands and Lund, Sweden.
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, Engineered Molding Technology and Non-Metallic
Solutions businesses, the expected closing of the acquisition of
ARTeSYN Biosolutions, 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, our financing plans, and the projected impact of, and
response to, the COVID-19 coronavirus pandemic on our business and
on the U.S. and global economies 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 the following: the 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; the ultimate impact of the COVID-19
coronavirus pandemic on our business or financial results; 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, Engineered Molding Technology and Non-Metallic
Solutions businesses successfully into our business and achieve the
expected benefits of the 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 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, 2019 and Quarterly Report on Form
10-Q for the quarter ended March 31, 2020 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, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
Product revenue |
$ |
94,029 |
|
|
$ |
69,419 |
|
|
$ |
257,521 |
|
|
$ |
200,701 |
|
Royalty and other revenue |
|
31 |
|
|
|
26 |
|
|
|
91 |
|
|
|
70 |
|
Total revenue |
|
94,060 |
|
|
|
69,445 |
|
|
|
257,612 |
|
|
|
200,771 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of product revenue |
|
39,626 |
|
|
|
31,425 |
|
|
|
108,471 |
|
|
|
88,978 |
|
Research and development |
|
4,422 |
|
|
|
5,427 |
|
|
|
13,460 |
|
|
|
14,278 |
|
Selling, general and administrative |
|
29,051 |
|
|
|
24,629 |
|
|
|
83,277 |
|
|
|
67,326 |
|
|
|
73,099 |
|
|
|
61,481 |
|
|
|
205,208 |
|
|
|
170,582 |
|
Income from operations |
|
20,961 |
|
|
|
7,964 |
|
|
|
52,404 |
|
|
|
30,189 |
|
Investment income |
|
82 |
|
|
|
1,898 |
|
|
|
1,699 |
|
|
|
3,616 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
(5,650 |
) |
|
|
- |
|
|
|
(5,650 |
) |
Interest expense |
|
(3,052 |
) |
|
|
(2,857 |
) |
|
|
(9,032 |
) |
|
|
(6,326 |
) |
Other (expense) income, net |
|
(248 |
) |
|
|
316 |
|
|
|
(632 |
) |
|
|
(23 |
) |
Income before income taxes |
|
17,743 |
|
|
|
1,671 |
|
|
|
44,439 |
|
|
|
21,806 |
|
Income tax provision |
|
3,191 |
|
|
|
12 |
|
|
|
4,211 |
|
|
|
3,999 |
|
Net income |
$ |
14,552 |
|
|
$ |
1,659 |
|
|
$ |
40,228 |
|
|
$ |
17,807 |
|
Earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.28 |
|
|
$ |
0.03 |
|
|
$ |
0.77 |
|
|
$ |
0.38 |
|
Diluted |
$ |
0.27 |
|
|
$ |
0.03 |
|
|
$ |
0.75 |
|
|
$ |
0.37 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
52,545,100 |
|
|
|
50,851,623 |
|
|
|
52,341,037 |
|
|
|
47,086,779 |
|
Diluted |
|
53,468,658 |
|
|
|
51,809,289 |
|
|
|
53,299,544 |
|
|
|
47,929,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data: |
September 30,2020 |
|
December 31,2019 |
|
|
|
|
Cash, cash equivalents and marketable securities |
$ |
553,302 |
|
|
$ |
528,392 |
|
|
|
|
|
Working capital |
|
645,744 |
|
|
|
593,515 |
|
|
|
|
|
Total assets |
|
1,476,316 |
|
|
|
1,400,113 |
|
|
|
|
|
Long-term obligations |
|
300,462 |
|
|
|
292,032 |
|
|
|
|
|
Accumulated earnings |
|
46,071 |
|
|
|
5,843 |
|
|
|
|
|
Stockholders' equity |
|
1,124,870 |
|
|
|
1,059,768 |
|
|
|
|
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
GAAP INCOME FROM OPERATIONS |
$ |
20,961 |
|
|
$ |
7,964 |
|
|
$ |
52,404 |
|
|
$ |
30,189 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO INCOME (LOSS) FROM OPERATIONS: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
1,849 |
|
|
|
2,953 |
|
|
|
6,536 |
|
|
|
9,573 |
|
|
Intangible amortization |
|
3,925 |
|
|
|
3,900 |
|
|
|
11,677 |
|
|
|
9,562 |
|
|
Inventory step-up charges |
|
144 |
|
|
|
314 |
|
|
|
144 |
|
|
|
1,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED INCOME FROM OPERATIONS |
$ |
26,879 |
|
|
$ |
15,131 |
|
|
$ |
70,761 |
|
|
$ |
50,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME |
$ |
14,552 |
|
|
$ |
1,659 |
|
|
$ |
40,228 |
|
|
$ |
17,807 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO NET INCOME: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
1,849 |
|
|
|
2,953 |
|
|
|
6,536 |
|
|
|
10,074 |
|
|
Inventory step-up charges |
|
144 |
|
|
|
314 |
|
|
|
144 |
|
|
|
1,483 |
|
|
Intangible amortization |
|
3,925 |
|
|
|
3,900 |
|
|
|
11,677 |
|
|
|
9,562 |
|
|
Loss on extinguishment of debt |
|
- |
|
|
|
5,650 |
|
|
|
- |
|
|
|
5,650 |
|
|
Non-cash interest expense |
|
2,759 |
|
|
|
2,631 |
|
|
|
8,174 |
|
|
|
4,863 |
|
|
Tax effect of non-GAAP charges |
|
(2,072 |
) |
|
|
(3,781 |
) |
|
|
(6,334 |
) |
|
|
(7,742 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME |
$ |
21,157 |
|
|
$ |
13,326 |
|
|
$ |
60,425 |
|
|
$ |
41,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME PER SHARE - DILUTED |
$ |
0.27 |
|
|
$ |
0.03 |
|
|
$ |
0.75 |
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO NET INCOME PER SHARE - DILUTED: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
0.03 |
|
|
|
0.06 |
|
|
|
0.12 |
|
|
|
0.21 |
|
|
Inventory step-up charges |
|
0.00 |
|
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.03 |
|
|
Intangible amortization |
|
0.07 |
|
|
|
0.08 |
|
|
|
0.22 |
|
|
|
0.20 |
|
|
Loss on extinguishment of debt |
|
- |
|
|
|
0.11 |
|
|
|
- |
|
|
|
0.12 |
|
|
Non-cash interest expense |
|
0.05 |
|
|
|
0.05 |
|
|
|
0.15 |
|
|
|
0.10 |
|
|
Tax effect of non-GAAP charges |
|
(0.04 |
) |
|
|
(0.07 |
) |
|
|
(0.12 |
) |
|
|
(0.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME PER SHARE - DILUTED |
|
0.40 |
|
|
$ |
0.26 |
|
|
$ |
1.13 |
|
|
$ |
0.87 |
|
|
|
|
|
|
|
|
|
|
Totals may not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPLIGEN CORPORATION |
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA |
(Unaudited, amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME |
$ |
14,552 |
|
|
$ |
1,659 |
|
|
$ |
40,228 |
|
|
$ |
17,807 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS: |
|
|
|
|
|
|
|
|
Investment Income |
|
(82 |
) |
|
|
(1,898 |
) |
|
|
(1,699 |
) |
|
|
(3,616 |
) |
|
Interest Expense |
|
3,052 |
|
|
|
2,857 |
|
|
|
9,032 |
|
|
|
6,326 |
|
|
Tax Provision |
|
3,191 |
|
|
|
12 |
|
|
|
4,211 |
|
|
|
3,999 |
|
|
Depreciation |
|
2,757 |
|
|
|
1,810 |
|
|
|
7,820 |
|
|
|
5,147 |
|
|
Amortization(1) |
|
3,953 |
|
|
|
3,928 |
|
|
|
11,760 |
|
|
|
9,644 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
27,422 |
|
|
|
8,368 |
|
|
|
71,353 |
|
|
|
39,307 |
|
|
|
|
|
|
|
|
|
|
OTHER ADJUSTMENTS: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
1,849 |
|
|
|
2,953 |
|
|
|
6,536 |
|
|
|
10,074 |
|
|
Loss on extinguishment of debt |
|
- |
|
|
|
5,650 |
|
|
|
- |
|
|
|
5,650 |
|
|
Inventory step-up charges |
|
144 |
|
|
|
314 |
|
|
|
144 |
|
|
|
1,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA |
$ |
29,415 |
|
|
$ |
17,285 |
|
|
$ |
78,033 |
|
|
$ |
56,514 |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Includes amortization of milestone payments in accordance with GAAP
of $28 and $83 for the three- and nine-months ended September 30,
2020 and 2019. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
GAAP COST OF SALES |
$ |
39,626 |
|
|
$ |
31,425 |
|
|
$ |
108,471 |
|
|
$ |
88,978 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO COST OF SALES: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
(3 |
) |
|
|
(519 |
) |
|
|
(468 |
) |
|
|
(670 |
) |
|
Inventory step-up charges |
|
(144 |
) |
|
|
(314 |
) |
|
|
(144 |
) |
|
|
(1,483 |
) |
|
Intangible amortization |
|
- |
|
|
|
(128 |
) |
|
|
(254 |
) |
|
|
(392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED COST OF SALES |
$ |
39,479 |
|
|
$ |
30,464 |
|
|
$ |
107,605 |
|
|
$ |
86,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
GAAP R&D |
$ |
4,422 |
|
|
$ |
5,427 |
|
|
$ |
13,460 |
|
|
$ |
14,278 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO R&D: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
(1 |
) |
|
|
(278 |
) |
|
|
(472 |
) |
|
|
(405 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED R&D |
$ |
4,421 |
|
|
$ |
5,149 |
|
|
$ |
12,988 |
|
|
$ |
13,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
GAAP SG&A EXPENSE |
$ |
29,051 |
|
|
$ |
24,629 |
|
|
$ |
83,277 |
|
|
$ |
67,326 |
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS TO SG&A EXPENSE: |
|
|
|
|
|
|
|
|
Acquisition and integration costs |
|
(1,845 |
) |
|
|
(2,156 |
) |
|
|
(5,596 |
) |
|
|
(8,499 |
) |
|
Intangible amortization |
|
(3,925 |
) |
|
|
(3,772 |
) |
|
|
(11,425 |
) |
|
|
(9,170 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED SG&A EXPENSE |
$ |
23,280 |
|
|
$ |
18,701 |
|
|
$ |
66,257 |
|
|
$ |
49,657 |
|
REPLIGEN CORPORATION |
RECONCILIATION OF GAAP NET INCOME GUIDANCE TO ADJUSTED
(NON-GAAP NET INCOME GUIDANCE) |
|
|
|
|
|
(in thousands) |
Twelve months ending December 31, 2020 |
|
|
Low End |
|
High End |
GUIDANCE ON NET INCOME |
$ |
47,500 |
|
|
$ |
49,500 |
|
ADJUSTMENTS TO GUIDANCE ON NET INCOME: |
|
|
|
|
Acquisition and integration costs |
|
9,167 |
|
|
|
9,167 |
|
|
Anticipated pre-tax amortization of |
|
|
|
|
acquisition-related intangible
assets |
|
15,842 |
|
|
|
15,842 |
|
|
Inventory step-up costs |
|
172 |
|
|
|
172 |
|
|
Non-cash interest expense |
|
10,966 |
|
|
|
10,966 |
|
|
Tax effect of non-GAAP charges |
|
(8,630 |
) |
|
|
(8,630 |
) |
|
Guidance rounding adjustment |
|
(17 |
) |
|
|
(17 |
) |
GUIDANCE ON ADJUSTED NET INCOME |
$ |
75,000 |
|
|
$ |
77,000 |
|
|
|
|
|
|
|
|
|
|
|
REPLIGEN CORPORATION |
RECONCILIATION OF GAAP NET INCOME PER SHARE GUIDANCE
TO |
ADJUSTED (NON-GAAP) NET INCOME PER SHARE
GUIDANCE |
|
|
|
|
|
|
|
Twelve months ending December 31, 2020 |
|
|
Low End |
|
High End |
GUIDANCE ON NET INCOME PER SHARE - DILUTED |
$ |
0.89 |
|
|
$ |
0.93 |
|
ADJUSTMENTS TO GUIDANCE ON NET INCOME PER SHARE - DILUTED: |
|
|
|
Acquisition and integration costs |
$ |
0.17 |
|
|
$ |
0.17 |
|
|
Anticipated pre-tax amortization of |
|
|
|
|
acquisition-related intangible
assets |
$ |
0.30 |
|
|
$ |
0.30 |
|
|
Inventory step-up costs |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
Non-cash interest expense |
$ |
0.21 |
|
|
$ |
0.21 |
|
|
Tax effect of non-GAAP charges |
($ |
0.16 |
) |
|
($ |
0.16 |
) |
|
Guidance rounding adjustment |
($ |
0.00 |
) |
|
$ |
0.00 |
|
GUIDANCE ON ADJUSTED NET INCOME PER SHARE - DILUTED |
$ |
1.41 |
|
|
$ |
1.45 |
|
|
|
|
|
|
Totals may not add due to rounding. |
|
|
|
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