Cell Processing revenue increased 10%
sequentially to $16.2
million
GAAP gross margin of
38% and net loss of $10.2 million
Non-GAAP adjusted gross margin expands
from 40% to 53% and adjusted
EBITDA of $3.6
million or 13% ex-GCI freezers
Conference call begins at 4:30 p.m. Eastern time today
BOTHELL,
Wash., May 9, 2024 /PRNewswire/ -- BioLife
Solutions, Inc. (Nasdaq: BLFS) ("BioLife" or the "Company"), a
leading developer and supplier of bioproduction products and
services for the cell and gene therapy ("CGT") and the broader
biopharma markets, today announced financial results for the
three months ended March 31, 2024 and affirmed its revenue
guidance for 2024.
"We are off to a solid start to 2024, delivering another quarter
of sequential core cell processing revenue platform growth while
advancing our strategic realignment to concentrate on our most
valuable franchises. In April, we executed a key objective with the
divestiture of the Global Cooling, Inc. ("GCI") freezer business,
immediately transforming our financial profile. In the first
quarter pro forma excluding GCI, adjusted gross margin would have
increased from 40% to 53% and adjusted EBITDA would have improved
from negative $1.2 million to
positive $3.6 million, when compared
to results inclusive of GCI" said Roderick
de Greef, Chairman and CEO. "While there is still work to
do, including finalizing the sale process of our remaining freezer
asset, Custom Biogenic Systems ("CBS"), we believe that the Company
is already in a much healthier position seeing the operating
leverage of our high-margin consumable offering as it becomes the
main contributor to total sales."
"In the first quarter, our core cell processing platform posted
a 10% sequential increase in revenue, affirming our belief that the
industry-wide recovery that began at the end of last year is
progressing forward," de Greef continued. "With our biopreservation
media supporting over 70% of the relevant industry-sponsored CGT
trials in the U.S, and a constructive regulatory environment for
CGT, marked by increased product approvals and geographic
expansions, there are continued indications our revenue growth
momentum will be sustainable."
First Quarter 2024 Business
Highlights
- Processed 22 new U.S. FDA Master File cross references for our
biopreservation media, bringing the cumulative total processed to
716.
- Based on two additional regulatory approvals in the first
quarter, our biopreservation media is embedded in 15 unique
commercial CGTs as of March 31, 2024, with an expectation that
11 additional product approvals, geographic expansions, or new
indications will occur in the next 12 months.
- On April 17, 2024 we completed
the sale of GCI, a previously wholly owned subsidiary. As
previously disclosed, a condition to the closing of the sale,
required GCI to have $7.0 million in
cash on its balance sheet, of which, $4.9
million was funded by the Company, and the Company was
required to repay approximately $2.6
million of outstanding GCI indebtedness and assume certain
other liabilities of GCI.
First Quarter 2024 Financial
Performance
BioLife Solutions is presenting various financial metrics under
U.S. generally accepted accounting principles (GAAP) and as
adjusted (non-GAAP). In addition, BioLife Solutions is presenting
adjusted (non-GAAP) metrics on a consolidated basis and also
presenting its non-GAAP financial metrics excluding the financial
results of GCI from its consolidated results. Reconciliations of
GAAP to non-GAAP metrics appear at the end of this news
release.
SUMMARY OF KEY FINANCIAL RESULTS
Key operating results presented on the basis of GAAP, as
adjusted (non-GAAP), and as adjusted excluding GCI (non-GAAP), are
summarized as follows:
(In
thousands)
|
March
31,
|
CONSOLIDATED
GAAP
|
2024
|
Total
revenue
|
$
31,727
|
Gross Margin
|
38 %
|
Adjusted Gross Margin
(Non-GAAP)
|
40 %
|
Net Loss
|
$ (10,221)
|
Adjusted EBITDA
(Non-GAAP)
|
$
(1,190)
|
Adjusted EBITDA as a %
of Revenue (Non-GAAP)
|
(4) %
|
|
|
EXCLUDING GCI
(NON-GAAP)
|
|
Total
revenue
|
$
26,779
|
Gross Margin
|
51 %
|
Adjusted Gross
Margin
|
53 %
|
Net Loss
|
$
(4,453)
|
Adjusted
EBITDA
|
$
3,583
|
Adjusted EBITDA as a %
of Revenue
|
13 %
|
REVENUE
- Total revenue for the first quarter of 2024 was $31.7 million, a decrease of $6.0 million, or 16%, from $37.7 million for the first quarter of 2023 and
down $1.0 million, or 3%,
sequentially from the fourth quarter of 2023.
-
- Cell Processing platform revenue was $16.2 million, a decrease of $2.8 million, or 15%, from the same period in
2023 and up $1.4 million, or 10%,
sequentially from the fourth quarter of 2023.
-
- Biostorage Services platform revenue was $7.1 million, an increase of $1.4 million, or 25%, from the same period in
2023 and up $0.5 million, or 7%,
sequentially from the fourth quarter of 2023.
-
- Freezers and Thaw Systems platform revenue was $8.4 million, a decrease of $4.6 million, or 35%, from the same period in
2023 and down $2.9 million, or 26%,
sequentially from the fourth quarter of 2023. Of the $8.4 million in Freezer and Thaw platform
revenue, $0.3 million was from our
ThawSTAR product line.
GROSS MARGIN
- Gross margin (GAAP) for the first quarter of 2024 was 38%
compared with 35% for the first quarter of 2023. Adjusted gross
margin (non-GAAP) for the first quarter of 2024 was 40% compared
with 37% for the first quarter of 2023.
OPERATING LOSS
- Operating loss (GAAP) for the first quarter of 2024 was
$10.1 million compared with
$13.6 million for the first quarter
of 2023. Adjusted operating loss (non-GAAP) for the first quarter
of 2024 was $9.1 million compared
with $10.6 million for the first
quarter of 2023.
NET LOSS
- Net loss (GAAP) for the first quarter of 2024 was
$10.2 million compared with
$13.7 million for the first quarter
of 2023. Adjusted net loss (non-GAAP) for the first quarter of 2024
was $9.0 million compared with
$10.6 million for the first quarter
of 2023.
LOSS PER SHARE
- Loss per share (GAAP) for the first quarter of 2024 was
$0.22 compared with $0.32 for the first quarter of 2023.
ADJUSTED EBITDA
- Adjusted EBITDA, a non-GAAP measure, for the first quarter of
2024 was negative $1.2 million
compared with negative $1.1 million
for the first quarter of 2023.
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
- Cash, cash equivalents, and marketable securities as of
March 31, 2024, were $46.1
million.
(As a result of showing
amounts in millions, rounding difference may exist in the
percentages above.)
|
2024 Revenue Guidance
BioLife Solutions is affirming its 2024 revenue guidance of
$95.5 million to $100.0 million. This is based on expectations for
BioLife's Cell Processing and Biostorage Services platforms, which
now include results from its ThawSTAR product line and do not
include revenue from the freezer product line (GCI and CBS).
- Cell Processing platform: $66.0
million to $68.5 million, an
increase of 0% to 4% compared with 2023. Compared with annualizing
the second half of 2023 revenue run rate, the growth would be 17%
to 22%
- Biostorage Services platform: $29.5
million to $31.5 million, an
increase of 5% to 12% compared with 2023. This platform now
includes the ThawSTAR automated thawing product line. Without
ThawSTAR, the growth rate would be 10% to 16%.
Management expects full year positive adjusted EBITDA and
adjusted EBITDA growth in 2024.
Conference Call & Webcast
Management will discuss the Company's financial results, provide
a general business update and answer questions during a conference
call and live webcast today at 4:30 p.m.
ET (1:30 p.m. PT).
To access the webcast, log onto the Investor Relations page of
the BioLife Solutions website
at https://www.biolifesolutions.com/earnings. In
addition, the conference call will be accessible by dialing
toll-free 877-346-6112 or 848-280-6350 for international callers. A
webcast replay will be available approximately two hours after the
call ends and will be archived
on https://www.biolifesolutions.com/ for 90 days.
About BioLife Solutions
BioLife Solutions is a leading supplier of cell processing tools
and services for the cell and gene therapy (CGT) and broader
biopharma markets. Our expertise facilitates the commercialization
of new therapies by supplying solutions that maintain the health
and function of biologic materials during the collection,
development, storage and distribution. For more information, please
visit www.biolifesolutions.com, and follow BioLife on LinkedIn
and X.
Cautions Regarding Forward Looking Statements
Certain statements contained in this press release are not
historical facts and may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "plans," "expects," "believes," "anticipates,"
"designed," and similar words are intended to identify
forward-looking statements. Forward-looking statements are based on
our current expectations and beliefs, and involve a number of risks
and uncertainties that are difficult to predict and that could
cause actual results to differ materially from those stated or
implied by the forward-looking statements. A description of certain
of these risks, uncertainties and other matters can be found in
filings we make with the U.S. Securities and Exchange Commission,
all of which are available at www.sec.gov. Because forward-looking
statements involve risks and uncertainties, actual results and
events may differ materially from results and events currently
expected by us. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date hereof. We undertake no obligation to publicly update these
forward-looking statements to reflect events or circumstances that
occur after the date hereof or to reflect any change in its
expectations with regard to these forward-looking statements or the
occurrence of unanticipated events.
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 on a consolidated basis in this release: adjusted
gross margin, adjusted operating expenses, adjusted operating
income/(loss), adjusted net income/(loss), earnings before
interest, taxes, depreciation and amortization (EBITDA), and
adjusted EBITDA. In addition to the non-GAAP measures included
within this release on a consolidated basis, we also included
non-GAAP measures excluding the operations of Global Cooling. A
reconciliation of GAAP to adjusted non-GAAP financial measures is
included as an attachment to this press release.
We believe these non-GAAP financial measures are useful to
investors in assessing our operating performance. We use these
financial measures internally to evaluate our operating performance
and for planning and forecasting of future periods. We also believe
it is in the best interests of investors to provide this non-GAAP
information.
While we believe these non-GAAP financial measures provide
useful supplemental information to investors, there are limitations
associated with the use of these non-GAAP financial measures. These
non-GAAP financial measures may not be reported by competitors, and
they may not be directly comparable to similarly titled measures of
other companies due to differences in calculation methodologies.
The non-GAAP financial measures are not an alternative to GAAP
information and are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures. They should be
used only as a supplement to GAAP information and should be
considered only in conjunction with our consolidated financial
statements prepared in accordance with GAAP.
Media & Investor Relations
At the Company
Troy Wichterman
Chief Financial Officer
(425) 402-1400
twichterman@biolifesolutions.com
Investors
LHA Investor Relations
Jody Cain
(310) 691-7100
jcain@lhai.com
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, amounts
in thousands, except share and per share amounts)
|
|
|
Three Months
Ended
March 31,
|
(In thousands,
except per share and share data)
|
2024
|
|
2023
|
|
|
|
|
Product
revenue
|
$
24,803
|
|
$
31,593
|
Service
revenue
|
5,088
|
|
4,471
|
Rental
revenue
|
1,836
|
|
1,639
|
Total product, rental,
and service revenue
|
31,727
|
|
37,703
|
Costs and operating
expenses:
|
|
|
|
Cost of product,
rental, and service revenue (exclusive of Intangible asset
amortization)
|
$
19,166
|
|
$
23,664
|
General and
administrative
|
12,934
|
|
14,842
|
Sales and
marketing
|
5,070
|
|
6,471
|
Research and
development
|
3,534
|
|
4,152
|
Intangible asset
amortization
|
914
|
|
1,459
|
Acquisition
costs
|
237
|
|
—
|
Change in fair value of
contingent consideration
|
—
|
|
720
|
Total operating
expenses
|
41,855
|
|
51,308
|
Operating
loss
|
(10,128)
|
|
(13,605)
|
|
|
|
|
Other income
(expense):
|
|
|
|
Interest expense,
net
|
(207)
|
|
(411)
|
Other income
|
245
|
|
394
|
Total other income
(expense), net
|
38
|
|
(17)
|
|
|
|
|
Loss before income tax
expense
|
(10,090)
|
|
(13,622)
|
Income tax
expense
|
(131)
|
|
(92)
|
Net loss
|
$
(10,221)
|
|
$
(13,714)
|
|
|
|
|
Net loss attributable
to common shareholders:
|
|
|
|
Basic and
Diluted
|
$
(10,221)
|
|
$
(13,714)
|
Net loss per share
attributable to common shareholders:
|
|
|
|
Basic and
Diluted
|
$
(0.22)
|
|
$
(0.32)
|
Weighted average shares
used to compute loss per share attributable to common
shareholders:
|
|
|
|
Basic and
Diluted
|
45,432,426
|
|
43,027,612
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
March
31,
|
(In
thousands)
|
2024
|
|
2023
|
Net loss
|
$
(10,221)
|
|
$
(13,714)
|
Other comprehensive
(loss) income
|
(221)
|
|
145
|
Comprehensive
loss
|
$
(10,442)
|
|
$
(13,569)
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited, amounts
in thousands)
|
|
|
|
|
(Unaudited)
|
|
March
31,
|
|
December
31,
|
(In
thousands)
|
2024
|
|
2023
|
Cash, cash equivalents,
and marketable securities
|
$
46,126
|
|
$
52,274
|
Working
capital
|
73,042
|
|
78,426
|
Current
assets
|
111,700
|
|
120,604
|
Current
liabilities
|
38,658
|
|
42,178
|
Total assets
|
401,602
|
|
412,714
|
|
|
|
|
Long-term
obligations
|
29,539
|
|
32,873
|
Accumulated
deficit(1)
|
(325,138)
|
|
(314,917)
|
Total shareholders'
equity
|
333,405
|
|
337,663
|
|
(1)
During the three months ended March 31,
2024, we determined that an immaterial error existed in our
previously issued consolidated financial statements related to
stock compensation expense on unvested shares of market-based
awards of certain employees upon their termination. Our Accumulated
deficit was impacted by the error by $1.6 million and will be
corrected within our Quarterly Report on Form 10-Q filed for the
three months ended March 31, 2024.
|
BIOLIFE SOLUTIONS,
INC.
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2024
|
|
2023
|
Net cash used in
operating activities
|
$
(4,475)
|
|
$
(2,712)
|
Net cash provided by
(used in) investing activities
|
(221)
|
|
2,926
|
Net cash used in
financing activities
|
(952)
|
|
(562)
|
Effects of currency
translation
|
(65)
|
|
11
|
Net decrease in cash,
cash equivalents, and restricted cash
|
$
(5,713)
|
|
$
(337)
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP GROSS PROFIT TO NON-GAAP ADJUSTED GROSS MARGIN
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2024
|
|
2023
|
Total
revenues
|
$ 31,727
|
|
$ 37,703
|
Cost of
revenues
|
(19,166)
|
|
(23,664)
|
COGS intangible asset
amortization
|
(582)
|
|
(733)
|
GROSS PROFIT
|
$ 11,979
|
|
$ 13,306
|
GROSS MARGIN
|
38 %
|
|
35 %
|
|
|
|
|
ADJUSTMENTS TO GROSS
PROFIT:
|
|
|
|
Gain on disposal of
assets
|
(24)
|
|
—
|
Intangible asset
amortization
|
582
|
|
733
|
ADJUSTED GROSS
PROFIT
|
$ 12,537
|
|
$ 14,039
|
ADJUSTED GROSS
MARGIN
|
40 %
|
|
37 %
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING
EXPENSES
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2024
|
|
2023
|
OPERATING
EXPENSES
|
$
41,855
|
|
$
51,308
|
|
|
|
|
ADJUSTMENTS TO
OPERATING EXPENSES:
|
|
|
|
Cost of product,
rental, and service revenues
|
(19,166)
|
|
(23,664)
|
Acquisition and
divestiture costs(1)
|
(237)
|
|
(833)
|
Intangible asset
amortization
|
(914)
|
|
(1,459)
|
Gain (loss) on disposal
of assets
|
75
|
|
(9)
|
Change in fair value of
contingent consideration
|
—
|
|
(720)
|
ADJUSTED OPERATING
EXPENSES
|
$
21,613
|
|
$
24,623
|
|
|
(1)
We have corrected our non-GAAP measures
for the three months ended March 31, 2023 to conform with our
current presentation of Acquisition and divestiture costs. The
correction increased previously reported non-GAAP measures with
Acquisition and divestiture cost add-backs by $0.8
million.
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP OPERATING LOSS TO NON-GAAP ADJUSTED OPERATING
LOSS
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2024
|
|
2023
|
OPERATING
LOSS
|
$
(10,128)
|
|
$
(13,605)
|
|
|
|
|
ADJUSTMENTS TO
OPERATING LOSS
|
|
|
|
Inventory reserve
costs
|
—
|
|
—
|
Acquisition and
divestiture costs(1)
|
237
|
|
833
|
Intangible asset
amortization
|
914
|
|
1,459
|
(Gain) loss on disposal
of assets
|
(75)
|
|
9
|
Change in fair value of
contingent consideration
|
—
|
|
720
|
ADJUSTED OPERATING
LOSS
|
$
(9,052)
|
|
$
(10,584)
|
|
|
(1)
We have corrected our non-GAAP measures
for the three months ended March 31, 2023 to conform with our
current presentation of Acquisition and divestiture costs. The
correction increased previously reported non-GAAP measures with
Acquisition and divestiture cost add-backs by $0.8
million.
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP ADJUSTED NET LOSS
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2024
|
|
2023
|
NET LOSS
|
$
(10,221)
|
|
$
(13,714)
|
|
|
|
|
ADJUSTMENTS TO NET
LOSS
|
|
|
|
Inventory reserve
costs
|
—
|
|
—
|
Acquisition and
divestiture costs(1)
|
237
|
|
833
|
Intangible asset
amortization
|
914
|
|
1,459
|
(Gain) loss on disposal
of assets
|
(75)
|
|
9
|
Change in fair value of
contingent consideration
|
—
|
|
720
|
Income tax
expense
|
131
|
|
92
|
ADJUSTED NET
LOSS
|
$
(9,014)
|
|
$
(10,601)
|
|
|
(1)
We have corrected our non-GAAP measures
for the three months ended March 31, 2023 to conform with our
current presentation of Acquisition and divestiture costs. The
correction increased previously reported non-GAAP measures with
Acquisition and divestiture cost add-backs by $0.8
million.
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2024
|
|
2023
|
NET LOSS
|
$
(10,221)
|
|
$
(13,714)
|
|
|
|
|
ADJUSTMENTS:
|
|
|
|
Interest expense,
net
|
207
|
|
411
|
Income tax
expense
|
131
|
|
92
|
Depreciation
|
1,434
|
|
1,731
|
Intangible asset
amortization
|
914
|
|
1,459
|
EBITDA
|
$
(7,535)
|
|
$
(10,021)
|
|
|
|
|
OTHER
ADJUSTMENTS:
|
|
|
|
Share-based
compensation (non-cash)
|
6,183
|
|
7,363
|
Acquisition and
divestiture costs(1)
|
237
|
|
833
|
(Gain) loss on disposal
of assets
|
(75)
|
|
9
|
Change in fair value of
contingent consideration
|
—
|
|
720
|
ADJUSTED
EBITDA
|
$
(1,190)
|
|
$
(1,096)
|
(1) We have corrected
our non-GAAP measures for the three months ended March 31, 2023 to
conform with our current presentation of Acquisition and
divestiture costs. The correction increased previously reported
non-GAAP measures with Acquisition and divestiture cost add-backs
by $0.8 million.
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
GROSS PROFIT TO NON-GAAP ADJUSTED GROSS MARGIN EXCLUDING GLOBAL
COOLING)
(Unaudited, amounts
in thousands)
|
|
|
March
31,
|
(In
thousands)
|
2024
|
Total
revenue
|
$
31,727
|
Less: Total revenue of
Global Cooling
|
(4,948)
|
Revenue as adjusted for
Global Cooling
|
$
26,779
|
|
|
Cost of revenue
excluding Global Cooling
|
(12,566)
|
COGS intangible asset
amortization excluding Global Cooling
|
(582)
|
GROSS PROFIT AS
ADJUSTED FOR GLOBAL COOLING
|
13,631
|
GROSS MARGIN AS
ADJUSTED FOR GLOBAL COOLING
|
51 %
|
|
|
ADJUSTMENTS TO GROSS
PROFIT EXCLUDING GLOBAL COOLING:
|
|
Inventory reserve
costs
|
—
|
(Gain) loss on disposal
of assets
|
(24)
|
Intangible asset
amortization
|
582
|
ADJUSTED GROSS PROFIT
EXCLUDING GLOBAL COOLING
|
$
14,189
|
ADJUSTED GROSS MARGIN
EXCLUDING GLOBAL COOLING
|
53 %
|
BIOLIFE SOLUTIONS,
INC.
RECONCILIATION OF
NET LOSS TO NON-GAAP ADJUSTED EBITDA EXCLUDING GLOBAL
COOLING
(Unaudited, amounts
in thousands)
|
|
|
March
31,
|
(In
thousands)
|
2024
|
NET LOSS
|
$ (10,221)
|
Less: Net loss from
Global Cooling, net
|
(5,768)
|
NET LOSS AS ADJUSTED
FOR GLOBAL COOLING
|
(4,453)
|
|
|
ADJUSTMENTS EXCLUDING
GLOBAL COOLING:
|
|
Interest
expense
|
168
|
Income tax expense
(benefit)
|
121
|
Depreciation
|
1,434
|
Intangible asset
amortization
|
914
|
EBITDA Excluding Global
Cooling
|
(1,816)
|
|
|
OTHER ADJUSTMENTS
EXCLUDING GLOBAL COOLING:
|
|
Share-based
compensation (non-cash)
|
5,237
|
Acquisition and
divestiture costs
|
237
|
Severance
costs
|
—
|
(Gain) loss on disposal
of assets
|
(75)
|
Change in fair value of
contingent consideration
|
—
|
Inventory reserve
costs
|
—
|
ADJUSTED EBITDA
Excluding Global Cooling
|
$
3,583
|
% of Revenue
|
13 %
|
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SOURCE BioLife Solutions, Inc.