Repligen Corporation (NASDAQ:RGEN), a life sciences company focused
on bioprocessing technology leadership, today reported financial
results for its first quarter of 2019. Provided in this press
release are financial highlights for the three-month period ended
March 31, 2019, recent business highlights, 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, “I’m
extremely pleased with our accomplishments and performance during
the first quarter. We executed on our business and strategic
goals, reporting record quarterly revenue with organic growth of
37% backed by continuing strong order demand. In April, we
announced our agreement to acquire C Technologies, whose products
expand our direct portfolio and move Repligen into process
analytics with market-leading systems to measure protein
concentration. Also in April we priced and have now closed on an
equity offering that raised net proceeds of $190 million. We remain
very confident about the overall performance for the company in
2019 and our recent announcements place us in a strong position to
execute on our next phase of growth as we continue to deliver on
our strategy to build a successful company through technology and
market leadership in bioprocessing.”
First Quarter 2019
Highlights
- Revenue increased by 35% year-over-year, and 37% organically,
to a record $60.6 million
- GAAP income from operations increased 510 bps to 18.4% of
revenue
- Adjusted (non-GAAP) income from operations increased 500 bps to
25.7% of revenue
- GAAP fully-diluted EPS increased to $0.17 compared to $0.08 for
the first quarter of 2018
- Adjusted (non-GAAP) fully-diluted EPS increased to $0.28
compared to $0.17 for the first quarter of 2018
Financial Details for the First Quarter
2019
REVENUE
- Total revenue for the first quarter of 2019 increased to $60.6
million compared to $44.8 million for the first quarter of 2018, a
year-over-year gain of 35% as reported and at 37% constant
currency.
GROSS PROFIT and GROSS MARGIN
- Gross profit (GAAP) for the first quarter of 2019 was $33.8
million, a year-over-year increase of $8.6 million or 34%, and
representing 55.7% gross margin. Adjusted gross profit (non-GAAP)
for the first quarter of 2019 was $33.9 million, a year-over-year
increase of $8.6 million, or 34%, and representing 56.0% gross
margin.
OPERATING INCOME
- Operating income (GAAP) for the first quarter of 2019 was $11.2
million, an increase of 87% from $6.0 million for the first quarter
of 2018. Adjusted operating income (non-GAAP) for the first quarter
of 2019 was $15.6 million, an increase of 68% from $9.3 million for
the first quarter of 2018.
NET INCOME
- Net income (GAAP) for the first quarter of 2019 was $8.1
million, a 134% increase from $3.4 million for the first quarter of
2018.
- Adjusted net income (non-GAAP) for the first quarter of 2019
was $13.1 million, a 73% increase from $7.5 million for the first
quarter of 2018.
EARNINGS PER SHARE
- Earnings per share (GAAP) for the first quarter of 2019
increased to $0.17 on a fully diluted basis, compared to $0.08 for
the first quarter of 2018.
- Adjusted EPS (non-GAAP) for the first quarter of 2019 increased
to $0.28 per fully diluted share, compared to $0.17 for the 2018
period.
EBITDA
- EBITDA, a non-GAAP financial measure, for the first quarter of
2019 was $15.7 million, an increase of 58% compared to $10.0
million for the first quarter of 2018.
- Adjusted EBITDA for the first quarter of 2019 was $17.5
million, an increase of 65% compared to $10.7 million for the first
quarter of 2018.
CASH
- Our cash, cash equivalents and marketable securities at March
31, 2019 were $196.1 million, an increase of $2.3 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 does not include the
financial impact of our pending acquisition of C Technologies,
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 $235-$241
million, an increase from our previous guidance of $218-$225
million. Our current guidance reflects overall revenue growth of
21%-24%, and organic revenue growth of 22%-25%.
- Gross margin is expected to be 56%-57% on both a GAAP and
non-GAAP basis, consistent with our previous guidance.
- Income from operations is expected to be in the range of
$39-$42 million on a GAAP basis, an increase from our previous
guidance of $36-$39 million. Adjusted (non-GAAP) income from
operations is expected to be in the range of $52-$55 million, an
increase from our previous guidance of $48-$51 million.
- Net income is expected to be in the range of $24.5-$27.5
million on a GAAP basis, an increase from our previous guidance of
$23-$25 million. Adjusted (non-GAAP) net income is expected to be
in the range of $41-$44 million, an increase from our previous
guidance of $38-$40 million.
- Fully diluted GAAP EPS is expected to be in the range of
$0.50-$0.56, an increase from our previous guidance of $0.48-$0.53.
Adjusted (non-GAAP) fully diluted EPS is expected to be in the
range of $0.84-$0.90, an increase from our previous guidance of
$0.81-$0.86. Both GAAP and adjusted EPS guidance includes the
impact of our recent equity financing, which resulted in a weighted
average addition of 2.1 million shares outstanding.
Our non-GAAP guidance for the fiscal year 2019
excludes the following items:
- $10.5 million estimated intangible amortization expense; $0.6
million in cost of product revenue and $9.9 million in
G&A.
- $2.7 million estimated acquisition and integration expenses
associated with our acquisition of Spectrum Inc. ($1.3 million),
and first quarter of 2019 costs related to our proposed acquisition
of C Technologies ($1.4 million).
- $4.5 million of non-cash interest expense (Other income
(expense)) related to our debt financing.
Our non-GAAP guidance for the fiscal year 2019
includes:
- An income tax increase of $1.1 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.
C Technologies ContributionPending the
completion of our proposed acquisition of C Technologies, we expect
C Technologies to contribute $16-$17 million in revenue, and be
accretive to adjusted earnings per share over the seven months of
anticipated Repligen ownership in 2019.
Conference CallRepligen will host a conference
call and webcast today, May 9, 2019, at 8:30 a.m. EST, to discuss
first quarter 2019 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 10131193.
Non-GAAP Measures of Financial PerformanceTo
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 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 acquisition of TangenX Technology
Corporation, Spectrum Lifesciences, LLC (formerly known as
Spectrum, Inc.), and the Company’s planned acquisition of C
Technologies Inc.; intangible amortization costs; non-cash interest
expense; the impact on tax of intangible amortization; tax benefits
associated with variable integration expenses; and, in the case of
EBITDA, cash interest expense related to the Company’s May 2016
convertible debt issuance. 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 Corporation Repligen 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 filtration products (including XCell™ ATF,
TangenX™ SIUS™ TFF and Spectrum KrosFlo™ TFF filters and systems),
chromatography products (OPUS® pre-packed columns, chromatography
resins, ELISA kits) and protein products (Protein A affinity
ligands including NGL Impact®-A, cell culture growth factors). Our
XCell™ ATF Systems, available in stainless steel and single-use
configurations, are used in perfusion processes to continuously
concentrate cells and increase product yield from a bioreactor.
Single-use SIUS™ TFF cassettes and hardware are used for biologic
drug concentration in downstream filtration processes. KrosFlo™ TFF
cartridges and systems are used in both upstream and downstream
filtration processes. Our innovative line of OPUS® chromatography
columns, used in bench-scale through commercial-scale biologics
purification, are delivered pre-packed to our customers with their
choice of affinity resin. Protein A ligands and growth factor
products that we produce are essential components of Protein A
affinity resins used in biologics purification, and cell culture
media used to accelerate cell growth in a bioreactor. Repligen’s
corporate headquarters are in Waltham, MA (USA), with additional
administrative and manufacturing operations in Marlborough, 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 our business, the expected closing of our
acquisition of C Technologies and the expected performance of the C
Technologies business post-closing, 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 close the acquisition of C Technologies on the
expected timeframe, 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. NewmanSenior
Director 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 March 31, |
|
2019 |
|
2018 |
|
|
|
|
Revenue: |
|
|
|
Product revenue |
$ |
60,612 |
|
|
$ |
44,799 |
|
Royalty and other revenue |
|
22 |
|
|
|
31 |
|
Total revenue |
|
60,634 |
|
|
|
44,830 |
|
Costs and
expenses: |
|
|
|
Cost of product revenue |
|
26,845 |
|
|
|
19,668 |
|
Research and development |
|
3,620 |
|
|
|
3,288 |
|
Selling, general and administrative |
|
18,998 |
|
|
|
15,898 |
|
|
|
49,463 |
|
|
|
38,854 |
|
Income from
operations |
|
11,171 |
|
|
|
5,976 |
|
Investment
income |
|
713 |
|
|
|
181 |
|
Interest
expense |
|
(1,726 |
) |
|
|
(1,652 |
) |
Other
income, net |
|
358 |
|
|
|
71 |
|
Income
before income taxes |
|
10,516 |
|
|
|
4,576 |
|
Income tax
provision |
|
2,463 |
|
|
|
1,128 |
|
Net
income |
$ |
8,053 |
|
|
$ |
3,448 |
|
Earnings per
share: |
|
|
|
Basic |
$ |
0.18 |
|
|
$ |
0.08 |
|
Diluted |
$ |
0.17 |
|
|
$ |
0.08 |
|
Weighted
average shares outstanding: |
|
|
|
Basic |
|
43,967,824 |
|
|
|
43,621,270 |
|
Diluted |
|
46,279,017 |
|
|
|
44,326,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data: |
March 31, 2019 |
|
December 31, 2018 |
Cash, cash
equivalents and marketable securities |
$ |
196,135 |
|
|
$ |
193,822 |
|
Working
capital |
|
153,799 |
|
|
|
145,897 |
|
Total
assets |
|
797,921 |
|
|
|
774,621 |
|
Long-term
obligations |
|
42,618 |
|
|
|
29,211 |
|
Accumulated
deficit |
|
(7,515 |
) |
|
|
(15,568 |
) |
Stockholders' equity |
|
625,025 |
|
|
|
615,568 |
|
|
|
|
|
|
REPLIGEN
CORPORATION |
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP
(ADJUSTED) INCOME FROM OPERATIONS |
(Unaudited,
amounts in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
|
|
|
GAAP INCOME
FROM OPERATIONS |
$ |
11,171 |
|
|
$ |
5,976 |
|
|
|
|
|
ADJUSTMENTS
TO INCOME (LOSS) FROM OPERATIONS: |
|
|
|
Acquisition and integration costs |
|
1,799 |
|
|
|
655 |
|
Intangible amortization |
|
2,611 |
|
|
|
2,664 |
|
|
|
|
|
ADJUSTED
INCOME FROM OPERATIONS |
$ |
15,581 |
|
|
$ |
9,295 |
|
|
|
|
|
|
|
|
|
REPLIGEN
CORPORATION |
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP (ADJUSTED)
NET INCOME |
(Unaudited,
amounts in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
|
|
|
GAAP NET
INCOME |
$ |
8,053 |
|
|
$ |
3,448 |
|
|
|
|
|
ADJUSTMENTS
TO NET INCOME: |
|
|
|
Acquisition and integration costs |
|
1,799 |
|
|
|
655 |
|
Intangible amortization |
|
2,611 |
|
|
|
2,664 |
|
Non-cash interest expense |
|
1,107 |
|
|
|
1,036 |
|
Tax effect of intangible amortization and acquisition costs |
|
(517 |
) |
|
|
(271 |
) |
|
|
|
|
ADJUSTED NET
INCOME |
$ |
13,053 |
|
|
$ |
7,532 |
|
|
|
|
|
|
|
|
|
REPLIGEN
CORPORATION |
RECONCILIATION OF GAAP NET INCOME PER SHARE TO NON-GAAP
(ADJUSTED) NET INCOME PER SHARE |
(Unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
|
|
|
GAAP NET
INCOME PER SHARE - DILUTED |
$ |
0.17 |
|
|
$ |
0.08 |
|
|
|
|
|
ADJUSTMENTS
TO NET INCOME PER SHARE - DILUTED: |
|
|
|
Acquisition and integration costs |
|
0.04 |
|
|
|
0.01 |
|
Intangible amortization |
|
0.06 |
|
|
|
0.06 |
|
Non-cash interest expense |
|
0.02 |
|
|
|
0.02 |
|
Tax effect of intangible amortization and acquisition costs |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
|
|
ADJUSTED NET
INCOME PER SHARE - DILUTED |
|
0.28 |
|
|
$ |
0.17 |
|
|
|
|
|
Totals may
not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
REPLIGEN
CORPORATION |
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA |
(Unaudited,
amounts in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
|
|
|
GAAP NET
INCOME |
$ |
8,053 |
|
|
$ |
3,448 |
|
|
|
|
|
ADJUSTMENTS: |
|
|
|
Investment Income |
|
(713 |
) |
|
|
(181 |
) |
Interest Expense |
|
1,726 |
|
|
|
1,652 |
|
Tax Provision |
|
2,463 |
|
|
|
1,128 |
|
Depreciation |
|
1,575 |
|
|
|
1,284 |
|
Amortization(1) |
|
2,638 |
|
|
|
2,664 |
|
EBITDA |
|
15,742 |
|
|
|
9,995 |
|
|
|
|
|
OTHER
ADJUSTMENTS: |
|
|
|
Acquisition and integration costs |
|
1,799 |
|
|
|
655 |
|
|
|
|
|
ADJUSTED
EBITDA |
$ |
17,541 |
|
|
$ |
10,650 |
|
|
|
|
|
(1) Fiscal
2019 includes amortization of milestone payments in accordance with
GAAP of $27. |
|
|
|
|
|
|
|
REPLIGEN
CORPORATION |
RECONCILIATION OF GAAP COST OF SALES TO NON-GAAP (ADJUSTED)
COST OF SALES |
(Unaudited,
amounts in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
|
|
|
GAAP COST OF
SALES |
$ |
26,845 |
|
|
$ |
19,668 |
|
|
|
|
|
ADJUSTMENT
TO COST OF SALES: |
|
|
|
Acquisition and integration costs |
|
(18 |
) |
|
|
(46 |
) |
Intangible amortization |
|
(134 |
) |
|
|
(151 |
) |
|
|
|
|
ADJUSTED
COST OF SALES |
$ |
26,693 |
|
|
$ |
19,471 |
|
|
|
|
|
REPLIGEN
CORPORATION |
RECONCILIATION OF GAAP SG&A EXPENSE TO NON-GAAP
(ADJUSTED) SG&A EXPENSE |
(Unaudited,
amounts in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
|
|
|
GAAP
SG&A EXPENSE |
$ |
18,998 |
|
|
$ |
15,898 |
|
|
|
|
|
ADJUSTMENTS
TO SG&A EXPENSE: |
|
|
|
Acquisition and integration costs |
|
(1,753 |
) |
|
|
(591 |
) |
Intangible amortization |
|
(2,474 |
) |
|
|
(2,512 |
) |
|
|
|
|
ADJUSTED
SG&A EXPENSE |
$ |
14,771 |
|
|
$ |
12,795 |
|
|
|
|
|
|
|
|
|
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 |
$ |
24,500 |
|
|
$ |
27,500 |
|
ADJUSTMENTS
TO GUIDANCE ON NET INCOME: |
|
|
|
Acquisition and integration costs |
|
2,665 |
|
|
|
2,665 |
|
Anticipated pre-tax amortization of |
|
|
|
acquisition-related intangible assets |
|
10,355 |
|
|
|
10,355 |
|
Non-cash interest expense |
|
4,538 |
|
|
|
4,538 |
|
Tax effect of intangible amortization and integration |
|
(1,085 |
) |
|
|
(1,085 |
) |
Guidance rounding adjustment |
|
27 |
|
|
|
27 |
|
GUIDANCE ON
ADJUSTED NET INCOME |
$ |
41,000 |
|
|
$ |
44,000 |
|
|
|
|
|
REPLIGEN
CORPORATION |
RECONCILIATION OF GAAP NET INCOME PER SHARE GUIDANCE
TO |
ADJUSTED
(NON-GAAP) NET INCOME PER SHARE GUIDANCE |
|
|
|
|
|
Twelve months ending December 31, 2018 |
|
Low End |
|
High End |
GUIDANCE ON
NET INCOME |
$0.50 |
|
|
$0.56 |
|
ADJUSTMENTS
TO GUIDANCE ON NET INCOME: |
|
|
|
Acquisition and integration costs |
$0.05 |
|
|
$0.05 |
|
Anticipated pre-tax amortization of |
|
|
|
acquisition-related intangible assets |
$0.21 |
|
|
$0.21 |
|
Non-cash interest expense |
$0.09 |
|
|
$0.09 |
|
Tax effect of intangible amortization and integration |
($0.02 |
) |
|
($0.02 |
) |
Guidance rounding adjustment |
$0.00 |
|
|
$0.00 |
|
GUIDANCE ON
ADJUSTED NET INCOME |
$0.84 |
|
|
$0.90 |
|
|
|
|
|
Totals may
not add due to rounding. |
|
|
|
|
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Repligen (NASDAQ:RGEN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Repligen (NASDAQ:RGEN)
Historical Stock Chart
From Apr 2023 to Apr 2024