Full Press Release Details
Repligen Reports Fourth Quarter and Year 2015 Financial Results
- Constant currency revenue growth of 45% for the fourth quarter, 47% for the year -
- Gross margin expansion of 420 basis points to 57.8% for the year -
- Non-GAAP adjusted EPS of $0.40, an increase of 67% for the year -
WALTHAM, MA February 25, 2016 Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership,
today reported financial results for the fourth quarter and year ended December 31, 2015. Below are the Company s performance highlights for these periods, followed by financial guidance for the year 2016 and access information for today s
webcast and conference call.
Tony J. Hunt, President and Chief Executive Officer said, 2015 was a great year for Repligen, as we executed on our
growth strategy and established the Repligen brand in key bioprocessing end-markets, while delivering strong financial performance across all of our product lines. For the year, we reported exceptional product sales growth and margin expansion.
We finished the year with fourth quarter revenue ahead of our expectations, led by an outstanding quarter for ATF and strong adoption of our growth factors. As we look to 2016, we expect another double-digit growth year driven by healthy
end-markets, accelerating brand recognition and continued adoption of our innovative portfolio of bioprocessing products.
Fourth Quarter of 2015
Financial Highlights
Full Year 2015 Financial Highlights
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 operating income, 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
adjustments to these other measures exclude the impact of contingent consideration and acquisition costs related to the Company s June 2014 asset purchase agreement with Refine Technology, and non-product revenue related to therapeutic
outlicense agreements. These costs and revenue are excluded because management believes that such expenses do not have a direct correlation to future business operations, nor do the resulting charges and revenue recorded accurately reflect the
performance of our ongoing operations for the period in which such charges are incurred and revenues recorded. Refine contingent consideration is triggered by the achievement of annual ATF System sales milestones through the end of the year 2016.
A reconciliation of GAAP to adjusted financial measures is included as an attachment to this press release. When analyzing the Company s operating
performance investors should not consider non-GAAP measures as substitutable for the comparable financial measures prepared in accordance with GAAP.
Financial Guidance for 2016
The following guidance for
the year 2016 is based on expectations for our existing business and does not include the financial impact of potential Refine contingent consideration, potential bioprocessing acquisitions or future fluctuations in foreign currency exchange
Repligen will host a conference call and webcast today, February 25th, at 8:30 a.m. EST, to discuss fourth
quarter and full year 2015 financial results and corporate developments. The conference call will be
accessible by dialing toll-free (844) 835-7432 for domestic callers or (404) 537-3372 for international callers. Dial-in participants must provide the passcode 41151742. 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 (855) 859-2056 for
domestic callers and (404) 537-3406 for international callers. Replay listeners must provide the passcode 41151742.
About Repligen Corporation
Repligen Corporation (NASDAQ:RGEN) is a life sciences company focused on the development and commercialization of high-value consumable products used
in the process of manufacturing biological drugs. Our bioprocessing products are sold to major life sciences and biopharmaceutical companies worldwide. We are the leading manufacturer of Protein A affinity ligands, a critical component of Protein A
media that is used to separate and purify monoclonal antibody therapeutics. Our ATF System and our growth factor products are used to increase product yield during the fermentation stage of biologic drug manufacturing. In addition, we developed and
market an innovative line of ready-to-use chromatography columns under our OPUS brand that we deliver pre-packed with our customers choice of purification media.
Repligen s corporate headquarters are in Waltham, MA (USA) and our manufacturing facilities are located in Waltham, MA and Lund, Sweden.
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, constitute forward-looking
statements, including, without limitation, express or implied statements or guidance regarding current or future financial performance and position, including cash and investment position, the potential impairment of future earnings,
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 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.
Senior Director Investor Relations
Repligen Corporation
REPLIGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| (Unaudited) | ||||||||||||||||
| (in thousands, except share and per share data) | Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue | $ | 21,449 | $ | 15,393 | $ | 83,537 | $ | 60,431 | ||||||||
| Royalty and other revenue | 1,000 | 3,117 | ||||||||||||||
| 21,449 | 16,393 | 83,537 | 63,548 | |||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of product revenue | 10,148 | 8,084 | 35,251 | 28,022 | ||||||||||||
| Research and development | 1,431 | 1,328 | 5,740 | 5,609 | ||||||||||||
| Selling, general and administrative | 6,473 | 4,975 | 24,699 | 17,154 | ||||||||||||
| Contingent consideration - fair value adjustments | 1,969 | 1,945 | 4,083 | 2,072 | ||||||||||||
| 20,021 | 16,332 | 69,773 | 52,857 | |||||||||||||
| Income from operations | 1,428 | 61 | 13,764 | 10,691 | ||||||||||||
| Investment income | 44 | 59 | 136 | 309 | ||||||||||||
| Interest expense | (8 | ) | (12 | ) | (32 | ) | (50 | ) | ||||||||
| Other (expense) income | (270 | ) | 134 | (445 | ) | 188 | ||||||||||
| Income before income taxes | 1,194 | 242 | 13,423 | 11,138 | ||||||||||||
| Income tax provision | 929 | 640 | 4,078 | 2,968 | ||||||||||||
| Net income (loss) | $ | 265 | $ | (398 | ) | $ | 9,345 | $ | 8,170 | |||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.01 | $ | (0.01 | ) | $ | 0.28 | $ | 0.25 | |||||||
| Diluted | $ | 0.01 | $ | (0.01 | ) | $ | 0.28 | $ | 0.25 | |||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 32,945,912 | 32,746,615 | 32,881,940 | 32,497,657 | ||||||||||||
| Diluted | 33,576,724 | 32,746,615 | 33,577,091 | 33,263,667 | ||||||||||||
| Comprehensive income (loss) | $ | 428 | $ | (3,453 | ) | $ | 6,552 | $ | 399 | |||||||
| December 31, 2015 | December 31, 2014 | |||||||||||||||
| Balance Sheet Data: | ||||||||||||||||
| Cash, cash equivalents and marketable securities* | $ | 73,407 | $ | 62,003 | ||||||||||||
| Working capital | 84,471 | 70,263 | ||||||||||||||
| Total assets | 146,237 | 128,293 | ||||||||||||||
| Long-term obligations | 4,708 | 5,879 | ||||||||||||||
| Accumulated deficit | (71,542 | ) | (80,887 | ) | ||||||||||||
| Stockholders equity | 122,748 | 111,732 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED NET INCOME
| (in thousands) | Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| GAAP NET INCOME (LOSS) | $ | 265 | $ | (398 | ) | $ | 9,345 | $ | 8,170 | |||||||
| NON-GAAP NET INCOME ADJUSTMENTS: | ||||||||||||||||
| Royalty and other revenue | (1,000 | ) | (3,117 | ) | ||||||||||||
| Refine acquisition costs | 2 | 818 | ||||||||||||||
| Contingent consideration - fair value adjustments | 1,969 | 1,945 | 4,083 | 2,072 | ||||||||||||
| NON-GAAP ADJUSTED NET INCOME | $ | 2,234 | $ | 549 | $ | 13,428 | $ | 7,943 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP INCOME FROM OPERATIONS
| (in thousands) | Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| GAAP INCOME FROM OPERATIONS | $ | 1,428 | $ | 61 | $ | 13,764 | $ | 10,691 | ||||||||
| NON-GAAP INCOME FROM OPERATIONS ADJUSTMENTS: | ||||||||||||||||
| Royalty and other revenue | (1,000 | ) | (3,117 | ) | ||||||||||||
| Refine acquisition costs | 2 | 818 | ||||||||||||||
| Contingent consideration - fair value adjustments | 1,969 | 1,945 | 4,083 | 2,072 | ||||||||||||
| NON-GAAP ADJUSTED INCOME FROM OPERATIONS | $ | 3,397 | $ | 1,008 | $ | 17,847 | $ | 10,464 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP NET INCOME (LOSS) PER SHARE TO NON-GAAP ADJUSTED NET INCOME PER SHARE
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| GAAP NET INCOME (LOSS) PER SHARE - DILUTED | $ | 0.01 | $ | (0.01 | ) | $ | 0.28 | $ | 0.25 | |||||||
| NON-GAAP NET INCOME ADJUSTMENTS: | ||||||||||||||||
| Royalty and other revenue | (0.03 | ) | (0.09 | ) | ||||||||||||
| Refine acquisition costs | 0.00 | 0.02 | ||||||||||||||
| Contingent consideration - fair value adjustments | 0.06 | 0.06 | 0.12 | 0.06 | ||||||||||||
| NON-GAAP ADJUSTED NET INCOME PER SHARE - DILUTED | $ | 0.07 | $ | 0.02 | $ | 0.40 | $ | 0.24 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA
| (in thousands) | Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| GAAP NET INCOME (LOSS) | $ | 265 | $ | (398 | ) | $ | 9,345 | $ | 8,170 | |||||||
| NON-GAAP EBITDA ADJUSTMENTS: | ||||||||||||||||
| Investment Income | 44 | 59 | 136 | 309 | ||||||||||||
| Interest Expense | (8 | ) | (12 | ) | (32 | ) | (50 | ) | ||||||||
| Tax Provision | 929 | 640 | 4,078 | 2,968 | ||||||||||||
| Depreciation | 745 | 644 | 2,996 | 2,606 | ||||||||||||
| Amortization | 399 | 421 | 1,600 | 1,426 | ||||||||||||
| NON-GAAP EBITDA | 2,374 | 1,354 | 18,123 | 15,429 | ||||||||||||
| OTHER NON-GAAP ADJUSTMENTS: | ||||||||||||||||
| Royalty and other revenue | (1,000 | ) | (3,117 | ) | ||||||||||||
| Refine acquisition costs | 2 | 818 | ||||||||||||||
| Contingent consideration - fair value adjustments | 1,969 | 1,945 | 4,083 | 2,072 | ||||||||||||
| NON-GAAP ADJUSTED EBITDA | $ | 4,343 | $ | 2,301 | $ | 22,206 | $ | 15,202 |