Repligen Corporation (NASDAQ:RGEN), a life sciences company focused
on bioprocessing technology leadership, today reported financial
results for its second quarter and first half of 2018. Provided in
this press release are financial highlights for the three- and
six-month periods ended June 30, 2018, updates to our 2018
financial guidance and access information for today's webcast and
conference call.
Tony J. Hunt, President and Chief Executive Officer said, “Our
second quarter financial performance was led by record direct sales
of our filtration and chromatography products, which nearly doubled
year-over-year and delivered greater than 25% organic growth. Our
Spectrum products continue to perform well, with 29% pro forma
growth over the second quarter of 2017. In our Proteins franchise,
we entered into strategic collaborations designed to establish a
new growth trajectory in the years ahead. Our outlook for the
remainder of the current year remains positive, and based on order
demand we are raising our revenue guidance for 2018.”
Second Quarter 2018
Highlights
- Total revenue increased by 47% year-over-year, to a new
quarterly record of $47.7 million
- Spectrum product sales contributed $12.3 million, a pro forma
increase of 29% year-over-year
- Organic growth for direct-to-customer Filtration and
Chromatography products exceeded 25%
- We delivered nearly 10% sequential growth in our Proteins
franchise and entered into strategic partnerships with Navigo
Proteins GmbH and Purolite Life Sciences
- GAAP gross margin was 55.8% and adjusted gross margin was
56.3%
- GAAP fully-diluted EPS was $0.06 compared to $0.24 for the
second quarter of 2017
- Adjusted (non-GAAP) fully-diluted EPS was $0.16 compared to
$0.20 for the second quarter of 2017
- An upfront payment of $2.3 million to Navigo Proteins GmbH was
recognized as an R&D expense during the second quarter of 2018.
This investment in our Proteins franchise is reflected in both the
GAAP and non-GAAP fully-diluted EPS figures above as a tax-effected
impact of ($0.04).
First Half 2018
Highlights
- Total revenue increased by 47% year-over-year to $92.6
million
- Spectrum product sales contributed $24.0 million, a pro forma
increase of 28% year-over-year
- Organic growth for direct-to-customer Filtration and
Chromatography products exceeded 25%
- GAAP gross margin was 56.0% and adjusted gross margin was
56.4%
- GAAP fully-diluted EPS was $0.14 compared to $0.33 for the
first half of 2017
- Adjusted (non-GAAP) fully-diluted EPS was $0.33 compared to
$0.35 for the first half of 2017
Financial Details for the Second Quarter
and First Half of
2018 REVENUE
- Total revenue for the second quarter of 2018 increased to $47.7
million compared to $32.5 million for the second quarter of 2017, a
year-over-year gain of 47% as reported, or 46% at constant
currency.
- Total revenue for the first half of 2018 increased to $92.6
million compared to $63.0 million for the first half of 2017, a
year-over-year gain of 47% as reported and 45% at constant
currency.
GROSS PROFIT and GROSS MARGIN
- Gross profit (GAAP) for the second quarter of 2018 was $26.6
million, a year-over-year increase of $8.1 million or 44%, and
representing 55.8% gross margin. Adjusted gross profit (non-GAAP)
for the second quarter of 2018 was $26.8 million, a year-over-year
increase of $8.2 million, or 44%.
- Gross profit (GAAP) for the first half of 2018 was $51.8
million, a year-over-year increase of $16.7 million or 48%, and
representing 56.0% gross margin. Adjusted gross profit for the
first half of 2018 was $52.2 million, a year-over-year increase of
$16.6 million, or 47%.
The below EPS, operating income, net income, EBITDA and adjusted
EBITDA figures for the second quarter and first half of 2018
include the impact of our $2.3 million upfront payment to Navigo
Proteins GmbH, which was recognized during the second quarter of
2018 as an R&D expense and had a ($0.04) tax-effected impact on
EPS.
OPERATING INCOME
- Operating income (GAAP) for the second quarter of 2018 was $4.3
million, compared to $5.5 million for the second quarter of 2017.
Adjusted operating income (non-GAAP) for the second quarter of 2018
was $7.8 million, compared to $8.6 million for the second quarter
of 2017.
- Operating income (GAAP) for the first half of 2018 was $10.2
million, compared to operating income of $11.2 million for the
first half of 2017. Adjusted operating income for the first half of
2018 was $17.1 million, an increase from $15.6 million for the
first half of 2017.
NET INCOME
- Net income (GAAP) for the second quarter of 2018 was $2.7
million, compared to $8.4 million for the second quarter of 2017.
Adjusted net income (non-GAAP) for the second quarter of 2018 was
$7.0 million, an increase from $6.9 million for the second quarter
of 2017.
- Net income (GAAP) for the first half of 2018 was $6.2 million,
compared to $11.5 million for the first half of 2017. Adjusted net
income for the first half of 2018 was $14.5 million, an increase
from $12.1 million for the first half of 2017.
EARNINGS PER SHARE
- Earnings per share (GAAP) for the second quarter of 2018 were
$0.06 on a fully diluted basis compared to $0.24 for the second
quarter of 2017. Adjusted EPS (non-GAAP) for the second quarter of
2018 was $0.16 per fully diluted share, compared to $0.20 for the
2017 period.
- Earnings per share (GAAP) for the first half of 2018 were $0.14
on a fully diluted basis compared to $0.33 for the first half of
2017. Adjusted earnings per share were $0.33 on a fully-diluted
basis for the first half of 2018 compared with $0.35 for the first
half of 2017.
EBITDA
- EBITDA, a non-GAAP financial measure, for the second quarter of
2018 was $8.5 million, a 24% increase from $6.8 million for the
second quarter of 2017. Adjusted EBITDA for the second quarter of
2018 was $9.3 million, compared to $9.2 million for the second
quarter of 2017.
- EBITDA for the first half of 2018 was $18.5 million, an
increase from $14.0 million for the first half of 2017. Adjusted
EBITDA for the first half of 2018 was $20.0 million, an increase
from $17.1 million for the first half of 2017.
CASH
- Our cash, cash equivalents and marketable securities at June
30, 2018 were $175.6 million compared to $173.8 million at December
31, 2017.
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 2018Our financial
guidance for the year 2018 is based on expectations for our
existing business and does not include the financial impact of
potential new acquisitions or future fluctuations in foreign
currency exchange rates. This guidance includes the first
full year of sales from our acquisition of Spectrum Inc. on August
1, 2017, as well as the impact of our upfront payment of $2.3
million to Navigo Proteins GmbH in June 2018. The updated guidance
below includes revisions to the full year 2018 guidance that we
provided on May 8, 2018.
YEAR 2018 GUIDANCE UPDATES:
- Total revenue is projected to be $185-$190 million, an increase
from our previous guidance of $182-$188 million. Our updated
revenue guidance reflects growth of 31%-35%, or 30%-34% at constant
currency. We are anticipating organic growth in the range of
11%-15%, an increase from our previous guidance of
10%-14%.
- Gross margin is expected to be 55.5%-56.5% on a GAAP basis,
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 $25.5-$27.5 million on
a GAAP basis, compared with our previous guidance of $26.5-$28.5
million. Adjusted (non-GAAP) income from operations is
expected to be $39-$41 million, compared with our previous guidance
of $40-$42 million.
- Net income is expected to be $14.5-$16.5 million on a GAAP
basis, an increase from our previous guidance of $14-$16
million. Adjusted (non-GAAP) net income is expected to be
$31-$33 million, an increase from our previous guidance of
$30.5-$32.5 million.
- Fully diluted GAAP EPS for the year 2018 is expected to be in
the range of $0.32-$0.36, consistent with our previous
guidance. Adjusted (non-GAAP) fully diluted EPS is expected
to be in the range of $0.69-$0.73, consistent with our previous
guidance.
Our non-GAAP guidance for the year 2018 excludes
the following items:
- $10.6 million estimated intangible amortization expense; $0.6
million in cost of product revenue and $10.0 million in
G&A.
- $2.6 million estimated acquisition and integration expenses
associated with the Spectrum acquisition.
- $4.2 million of non-cash interest expense (Other income
(expense)) related to our debt financing.
Our non-GAAP guidance for the year 2018
includes:
- An income tax increase of $1.0 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, August 2, 2018, at 8:30 a.m. EST, to
discuss second quarter of 2018 financial results and corporate
developments. The conference call will be accessible by dialing
toll-free (866) 777-2509 for domestic callers or (412) 317-5413 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
10122565.
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 and adjusted earnings per
diluted share (EPS). The Company provides revenue growth rates in
constant currency to 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 costs related to the
Company’s acquisitions of Atoll GmbH, TangenX Technology
Corporation, and Spectrum Lifesciences, LLC (formerly known as
Spectrum, Inc.), inventory step-up charges related to the
acquisition of Spectrum Inc., intangible amortization costs,
non-cash interest expense, and in the case of EBITDA, cash interest
expense related to the Company’s May 2016 convertible debt
issuance. Also excluded are tax benefits associated with
valuation allowances on deferred tax assets, the impact on tax of
intangible amortization, tax benefits associated with variable
integration expenses and tax benefits associated with tax reform.
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
(NASDAQ:RGEN) is a global bioprocessing company that develops and
commercializes highly innovative products that deliver cost and
process efficiencies to biological drug manufacturers worldwide.
Our portfolio includes protein products (Protein A affinity
ligands, cell culture growth factors), chromatography products
(OPUS® pre-packed columns, chromatography resins, ELISA kits) and
filtration products (including XCell™ ATF systems, TangenX™ Sius™
flat sheet TFF cassettes, and Spectrum KrosFlo™ hollow fiber TFF
cartridges and systems). The Protein A ligands and growth factor
products that we produce are essential components of Protein A
affinity resins and cell culture media, respectively. Protein A
affinity resins are the industry standard for downstream separation
and purification of monoclonal antibody-based therapeutics. Our
growth factors are used in upstream processes to accelerate cell
growth and productivity in a bioreactor. Our innovative line of
OPUS® chromatography columns, used in downstream processes for
bench-scale through commercial-scale purification needs, are
delivered pre-packed to our customers with their choice of resin.
Our XCell™ ATF Systems, available in stainless steel and single-use
configurations, are used upstream to continuously eliminate waste
from a bioreactor, to concentrate cells and increase product yield.
Single-use Sius™ TFF cassettes and hardware are used for biologic
drug concentration in downstream filtration processes. Spectrum
KrosFlo™ TFF cartridges and systems are used in both upstream and
downstream filtration processes. Repligen’s corporate headquarters
are in Waltham, MA (USA), with additional administrative and
manufacturing operations in Shrewsbury, MA, Rancho Dominguez, CA,
Lund, Sweden 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 the Spectrum business or our integration of
Spectrum, the expected performance and success of our strategic
partnerships with Navigo GmbH and Purolite Life Sciences,
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; 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 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. NewmanSenior
Director Investor Relations(781) 419-1881
| REPLIGEN CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
| |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except share and per
share data) |
Three months ended June
30, |
|
Six months ended June
30, |
| |
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
|
| Product
revenue |
$ |
47,743 |
|
|
$ |
32,434 |
|
|
$ |
92,542 |
|
|
$ |
63,003 |
|
| Royalty
and other revenue |
|
(12 |
) |
|
|
21 |
|
|
|
19 |
|
|
|
42 |
|
| Total
revenue |
|
47,731 |
|
|
|
32,455 |
|
|
|
92,561 |
|
|
|
63,045 |
|
| Costs and
expenses: |
|
|
|
|
|
|
|
| Cost of
product revenue |
|
21,088 |
|
|
|
13,937 |
|
|
|
40,756 |
|
|
|
27,926 |
|
| Research
and development |
|
5,780 |
|
|
|
1,860 |
|
|
|
9,068 |
|
|
|
3,602 |
|
| Selling,
general and administrative |
|
16,590 |
|
|
|
11,185 |
|
|
|
32,488 |
|
|
|
20,367 |
|
|
|
|
43,458 |
|
|
|
26,982 |
|
|
|
82,312 |
|
|
|
51,895 |
|
| Income
from operations |
|
4,273 |
|
|
|
5,473 |
|
|
|
10,249 |
|
|
|
11,150 |
|
| Investment income |
|
512 |
|
|
|
110 |
|
|
|
693 |
|
|
|
206 |
|
| Interest
expense |
|
(1,669 |
) |
|
|
(1,601 |
) |
|
|
(3,321 |
) |
|
|
(3,187 |
) |
| Other income
(expense) |
|
251 |
|
|
|
(328 |
) |
|
|
321 |
|
|
|
(448 |
) |
| Income
before income taxes |
|
3,367 |
|
|
|
3,654 |
|
|
|
7,942 |
|
|
|
7,721 |
|
| Income tax provision
(benefit) |
|
629 |
|
|
|
(4,784 |
) |
|
|
1,757 |
|
|
|
(3,785 |
) |
| Net income |
$ |
2,738 |
|
|
$ |
8,438 |
|
|
$ |
6,185 |
|
|
$ |
11,506 |
|
| Earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.06 |
|
|
$ |
0.25 |
|
|
$ |
0.14 |
|
|
$ |
0.34 |
|
|
Diluted |
$ |
0.06 |
|
|
$ |
0.24 |
|
|
$ |
0.14 |
|
|
$ |
0.33 |
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
43,743,356 |
|
|
|
34,097,805 |
|
|
|
43,682,650 |
|
|
|
33,995,323 |
|
|
Diluted |
|
45,015,720 |
|
|
|
35,094,814 |
|
|
|
44,694,745 |
|
|
|
34,715,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data: |
June 30, 2018 |
|
December 31, 2017 |
|
|
|
|
| Cash,
cash equivalents and marketable securities |
$ |
175,611 |
|
|
$ |
173,759 |
|
|
|
|
|
| Working
capital |
|
131,790 |
|
|
|
217,571 |
|
|
|
|
|
| Total
assets |
|
745,081 |
|
|
|
743,464 |
|
|
|
|
|
|
Long-term obligations |
|
25,303 |
|
|
|
126,760 |
|
|
|
|
|
|
Accumulated deficit |
|
(26,000 |
) |
|
|
(31,508 |
) |
|
|
|
|
|
Stockholders' equity |
|
598,659 |
|
|
|
591,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| REPLIGEN CORPORATION |
| RECONCILIATION OF GAAP INCOME FROM
OPERATIONS TO NON-GAAP (ADJUSTED) INCOME FROM
OPERATIONS |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| (in
thousands) |
Three months ended June 30, |
|
Six months ended June 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
| GAAP INCOME
FROM OPERATIONS |
$ |
4,273 |
|
|
$ |
5,473 |
|
|
$ |
10,249 |
|
|
$ |
11,150 |
|
| |
|
|
|
|
|
|
|
|
| ADJUSTMENTS
TO INCOME FROM OPERATIONS: |
|
|
|
|
|
|
|
| |
Acquisition and
integration costs |
|
853 |
|
|
|
2,385 |
|
|
|
1,508 |
|
|
|
2,787 |
|
| |
Inventory step-up
charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
224 |
|
| |
Intangible
amortization |
|
2,634 |
|
|
|
769 |
|
|
|
5,298 |
|
|
|
1,484 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| ADJUSTED
INCOME FROM OPERATIONS |
$ |
7,760 |
|
|
$ |
8,627 |
|
|
$ |
17,055 |
|
|
$ |
15,645 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN CORPORATION |
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP
(ADJUSTED) NET INCOME |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| (in
thousands) |
Three months ended June 30, |
|
Six months ended June 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
| GAAP NET
INCOME |
$ |
2,738 |
|
|
$ |
8,438 |
|
|
$ |
6,185 |
|
|
|
11,506 |
|
| |
|
|
|
|
|
|
|
|
| ADJUSTMENTS
TO NET INCOME: |
|
|
|
|
|
|
|
| |
Acquisition and
integration costs |
|
853 |
|
|
|
2,385 |
|
|
|
1,508 |
|
|
|
2,787 |
|
| |
Inventory step-up
charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
224 |
|
| |
Intangible
amortization |
|
2,634 |
|
|
|
769 |
|
|
|
5,298 |
|
|
|
1,484 |
|
| |
Non-cash interest
expense |
|
1,053 |
|
|
|
986 |
|
|
|
2,089 |
|
|
|
1,956 |
|
| |
Tax effect of
intangible amortization and acquisition costs |
|
(260 |
) |
|
|
(103 |
) |
|
|
(531 |
) |
|
|
(204 |
) |
| |
Release of valuation
allowance on deferred tax assets |
|
- |
|
|
|
(5,625 |
) |
|
|
- |
|
|
|
(5,625 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| ADJUSTED
NET INCOME |
$ |
7,018 |
|
|
$ |
6,850 |
|
|
$ |
14,549 |
|
|
$ |
12,128 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN CORPORATION |
| RECONCILIATION OF GAAP NET INCOME
PER SHARE TO NON-GAAP (ADJUSTED) NET INCOME PER SHARE |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| |
|
Three months ended June 30, |
|
Six months ended June 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
| GAAP NET
INCOME PER SHARE - DILUTED |
$ |
0.06 |
|
|
$ |
0.24 |
|
|
$ |
0.14 |
|
|
$ |
0.33 |
|
| |
|
|
|
|
|
|
|
|
| ADJUSTMENTS
TO NET INCOME PER SHARE - DILUTED: |
|
|
|
|
|
|
|
| |
Acquisition and
integration costs |
|
0.02 |
|
|
|
0.07 |
|
|
|
0.03 |
|
|
|
0.08 |
|
| |
Inventory step-up
charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
| |
Intangible
amortization |
|
0.06 |
|
|
|
0.02 |
|
|
|
0.12 |
|
|
|
0.04 |
|
| |
Non-cash interest
expense |
|
0.02 |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
0.06 |
|
| |
Tax effect of
intangible amortization and acquisition costs |
|
(0.01 |
) |
|
|
(0.00 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
| |
Release of valuation
allowance on deferred tax assets |
|
- |
|
|
|
(0.16 |
) |
|
|
- |
|
|
|
(0.16 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| ADJUSTED
NET INCOME PER SHARE - DILUTED |
$ |
0.16 |
|
|
$ |
0.20 |
|
|
$ |
0.33 |
|
|
$ |
0.35 |
|
| |
|
|
|
|
|
|
|
|
| Totals may
not add due to rounding. |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN CORPORATION |
| RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| (in
thousands) |
Three months ended June 30, |
|
Six months ended June 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
| GAAP NET
INCOME |
$ |
2,738 |
|
|
$ |
8,438 |
|
|
$ |
6,185 |
|
|
$ |
11,506 |
|
| |
|
|
|
|
|
|
|
|
|
ADJUSTMENTS: |
|
|
|
|
|
|
|
| |
Investment Income |
|
(512 |
) |
|
|
(110 |
) |
|
|
(693 |
) |
|
|
(206 |
) |
| |
Interest Expense |
|
1,669 |
|
|
|
1,601 |
|
|
|
3,321 |
|
|
|
3,187 |
|
| |
Tax Provision |
|
629 |
|
|
|
(4,784 |
) |
|
|
1,757 |
|
|
|
(3,785 |
) |
| |
Depreciation |
|
1,314 |
|
|
|
929 |
|
|
|
2,598 |
|
|
|
1,858 |
|
| |
Amortization |
|
2,634 |
|
|
|
769 |
|
|
|
5,298 |
|
|
|
1,484 |
|
| |
|
|
|
|
|
|
|
|
| EBITDA |
|
8,472 |
|
|
|
6,843 |
|
|
|
18,466 |
|
|
|
14,044 |
|
| |
|
|
|
|
|
|
|
|
| OTHER
ADJUSTMENTS: |
|
|
|
|
|
|
|
| |
Acquisition and
integration costs |
|
853 |
|
|
|
2,385 |
|
|
|
1,508 |
|
|
|
2,787 |
|
| |
Inventory step-up
charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
224 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| ADJUSTED
EBITDA |
$ |
9,325 |
|
|
$ |
9,228 |
|
|
$ |
19,974 |
|
|
$ |
17,055 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN CORPORATION |
| RECONCILIATION OF GAAP COST OF SALES TO
NON-GAAP (ADJUSTED) COST OF SALES |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| (in
thousands) |
Three months ended June 30, |
|
Six months ended June 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
| GAAP COST
OF SALES |
$ |
21,088 |
|
|
$ |
13,937 |
|
|
$ |
40,756 |
|
|
$ |
27,926 |
|
| |
|
|
|
|
|
|
|
|
| ADJUSTMENT
TO COST OF SALES: |
|
|
|
|
|
|
|
| |
Acquisition and
integration costs |
|
(64 |
) |
|
|
- |
|
|
|
(110 |
) |
|
|
- |
|
| |
Inventory step-up
charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(224 |
) |
| |
Intangible
amortization |
|
(142 |
) |
|
|
(139 |
) |
|
|
(293 |
) |
|
|
(277 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| ADJUSTED
COST OF SALES |
$ |
20,882 |
|
|
$ |
13,798 |
|
|
$ |
40,353 |
|
|
$ |
27,425 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| REPLIGEN CORPORATION |
| RECONCILIATION OF GAAP SG&A EXPENSE TO
NON-GAAP (ADJUSTED) SG&A EXPENSE |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| (in
thousands) |
Three months ended June 30, |
|
Six months ended June 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
| GAAP
SG&A EXPENSE |
$ |
16,590 |
|
|
$ |
11,185 |
|
|
$ |
32,488 |
|
|
$ |
20,367 |
|
| |
|
|
|
|
|
|
|
|
| ADJUSTMENTS
TO SG&A EXPENSE: |
|
|
|
|
|
|
|
| |
Acquisition and
integration costs |
|
(734 |
) |
|
|
(2,385 |
) |
|
|
(1,325 |
) |
|
|
(2,787 |
) |
| |
Intangible
amortization |
|
(2,492 |
) |
|
|
(630 |
) |
|
|
(5,005 |
) |
|
|
(1,207 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| ADJUSTED
SG&A EXPENSE |
$ |
13,364 |
|
|
$ |
8,170 |
|
|
$ |
26,158 |
|
|
$ |
16,373 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
| REPLIGEN CORPORATION |
| RECONCILIATION OF GAAP NET INCOME GUIDANCE TO
NON-GAAP (ADJUSTED) NET INCOME GUIDANCE |
| |
|
|
|
|
| (in
thousands) |
Twelve months ending December 31, 2018 |
| |
|
Low End |
|
High End |
| GUIDANCE ON
NET INCOME |
$ |
14,500 |
|
|
$ |
16,450 |
|
| ADJUSTMENTS
TO GUIDANCE ON NET INCOME: |
|
|
|
| |
Acquisition and
integration costs |
|
2,648 |
|
|
|
2,648 |
|
| |
Anticipated pre-tax
amortization of |
|
|
|
| |
acquisition-related intangible assets |
|
10,604 |
|
|
|
10,604 |
|
| |
Non-cash interest
expense |
|
4,249 |
|
|
|
4,249 |
|
| |
Tax effect of
intangible amortization and integration |
|
(973 |
) |
|
|
(973 |
) |
| |
Guidance rounding
adjustment |
|
(28 |
) |
|
|
22 |
|
| GUIDANCE ON
ADJUSTED NET INCOME |
$ |
31,000 |
|
|
$ |
33,000 |
|
| |
|
|
|
|
| REPLIGEN CORPORATION |
| RECONCILIATION OF GAAP NET INCOME PER SHARE
GUIDANCE TO |
| NON-GAAP (ADJUSTED) NET INCOME PER SHARE
GUIDANCE |
| |
|
|
|
|
| |
|
Twelve months ending December 31, 2018 |
| |
|
Low End |
|
High End |
| GUIDANCE ON
NET INCOME |
$0.32 |
|
|
$0.36 |
|
| ADJUSTMENTS
TO GUIDANCE ON NET INCOME: |
|
|
|
| |
Acquisition and
integration costs |
$0.06 |
|
|
$0.06 |
|
| |
Anticipated pre-tax
amortization of |
|
|
|
| |
acquisition-related intangible assets |
$0.24 |
|
|
$0.24 |
|
| |
Non-cash interest
expense |
$0.09 |
|
|
$0.09 |
|
| |
Tax effect of
intangible amortization and integration |
($0.02 |
) |
|
($0.02 |
) |
| |
Guidance rounding
adjustment |
($0.00 |
) |
|
($0.01 |
) |
| GUIDANCE ON
ADJUSTED NET INCOME |
$0.69 |
|
|
$0.73 |
|
| |
|
|
|
|
| Totals may
not add due to rounding. |
|
|
|
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