Full Press Release Details
Repligen Reports First Quarter 2022 Financial Results
and Updates Full Year 2022 Financial Guidance
WALTHAM, Mass. April 27, 2022 Repligen Corporation (NASDAQ:RGEN), a life sciences
company focused on bioprocessing technology leadership, today reported financial results for its first quarter ended March 31, 2022. Provided in this press release are financial highlights for the quarter, updates to our financial guidance for
the year 2022 and access information for today s webcast and conference call.
Tony J. Hunt, President and Chief Executive Officer said, We
delivered on another outstanding quarter for the company with over $206 million in revenue and 44% organic growth. We were especially pleased with the momentum in our base business, which delivered 37% growth in the quarter, led by impressive
performance in our Filtration, Chromatography and Analytics businesses and strength in gene therapy revenue, which was up more than 100%. COVID-related programs accounted for 26% of our revenues in the first quarter. With slowing vaccination rates,
we expect lower COVID-related demand and revenue this year, largely offset by increased projected demand for our base business products. Overall, our outlook for 2022 remains very positive; we have a strong order book coming out of the first quarter
and are increasing our guidance for full year non-COVID business performance.
Financial Highlights for
the First Quarter 2022
Financial Details for the First Quarter 2022
GROSS PROFIT and GROSS MARGIN
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 2022
Our financial guidance for the fiscal year 2022 is based on expectations for our existing business and includes the financial impact of our 2021
acquisitions of BioFlex Solutions (which closed on December 16, 2021), Avitide Inc. (which closed on September 20, 2021) and Polymem S.A. (which closed on July 1, 2021). The guidance below excludes the impact of potential additional
acquisitions and future fluctuations in foreign currency exchange rates.
FISCAL YEAR 2022 GUIDANCE:
Our non-GAAP guidance for the fiscal year
2022 excludes the following items:
Our non-GAAP guidance for the fiscal year 2022 includes:
All reconciliations of GAAP to
adjusted (non-GAAP) guidance are detailed in the tables included later in this press release.
Repligen will host a conference call and webcast today, April 27, 2022, at 8:30 a.m. EST, to discuss first quarter 2022 financial results
and corporate developments. The conference call will be accessible by dialing toll-free (844) 274-3999 for domestic callers or (412) 317-5607 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 6956973.
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; adjusted operating income and adjusted net income; 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 R&D expense; and adjusted SG&A. 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 related inventory step-up costs, acquisition and
integration costs, intangible amortization costs, and contingent consideration expenses related to the Company s acquisitions, amortization of debt issuance costs related to Company s convertible debt,
non-cash interest expense, loss on conversion of 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 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
About Repligen Corporation
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, Massachusetts, with additional
administrative and manufacturing operations worldwide. The majority of our manufacturing sites are located within the U.S. (California, Massachusetts, New Jersey and New York), and outside of the U.S. we have sites in Estonia, France, Germany,
Safe Harbor Statement
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 our
acquired BioFlex Solutions, Avitide Inc. and Polymem S.A. businesses our ability to continue to generate, and the magnitude of, COVID-related revenue, 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, projected, estimated or
could and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they 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 develop and commercialize products and the market acceptance of our products; our ability to successfully integrate and acquired businesses, including the BioFlex Solutions, Avitide Inc. and Polymem S.A. businesses into
our business and achieve the expected benefits of such 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, 2021 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. Therefore, you should not rely on any of these forward-looking statements. These forward-looking statements reflect management s current views,
expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions, and are based only on information currently available to us.
Repligen does not undertake to update, whether written or oral, any of these forward-looking statements to reflect a change in its views or events or circumstances, whether as a result of new information, future development or otherwise, that occur
after the date hereof except as required by law.
Global Head of Investor Relations
REPLIGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, amounts in thousands, except share and per share data)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenue: | ||||||||
| Product revenue | $ | 206,363 | $ | 142,737 | ||||
| Royalty and other revenue | 37 | 100 | ||||||
| Total revenue | 206,400 | 142,837 | ||||||
| Costs and expenses: | ||||||||
| Cost of product revenue | 82,356 | 59,747 | ||||||
| Research and development | 12,155 | 7,612 | ||||||
| Selling, general and administrative | 54,300 | 39,095 | ||||||
| Contingent consideration | (2,411 | ) | ||||||
| 146,400 | 106,454 | |||||||
| Income from operations | 60,000 | 36,383 | ||||||
| Investment income | 77 | 52 | ||||||
| Interest expense | (292 | ) | (2,754 | ) | ||||
| Amortization of debt issuance costs* | (452 | ) | (352 | ) | ||||
| Other expenses, net | (402 | ) | (224 | ) | ||||
| Income before income taxes | 58,931 | 33,105 | ||||||
| Income tax provision | 11,967 | 3,655 | ||||||
| Net income | $ | 46,964 | $ | 29,450 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 0.85 | $ | 0.54 | ||||
| Diluted* | $ | 0.81 | $ | 0.52 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 55,352,886 | 54,805,051 | ||||||
| Diluted* | 58,816,354 | 56,868,793 |
| Balance Sheet Data: | March 31, 2022 | December 31, 2021 | ||||||
| Cash, cash equivalents and marketable securities | $ | 584,640 | $ | 603,814 | ||||
| Working capital | 520,456 | 556,415 | ||||||
| Total assets | 2,383,824 | 2,358,354 | ||||||
| Long-term obligations * | 193,090 | 233,025 | ||||||
| Accumulated earnings | 258,277 | 194,060 | ||||||
| Stockholders equity | 1,766,401 | 1,750,067 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP (ADJUSTED) INCOME FROM OPERATIONS
(Unaudited, amounts in thousands)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| GAAP INCOME FROM OPERATIONS | $ | 60,000 | $ | 36,383 | ||||
| ADJUSTMENTS TO INCOME FROM OPERATIONS: | ||||||||
| Inventory step-up charges | 1,598 | |||||||
| Acquisition and integration costs | 3,189 | 2,551 | ||||||
| Contingent consideration | (2,411 | ) | ||||||
| Intangible amortization | 6,593 | 5,162 | ||||||
| ADJUSTED INCOME FROM OPERATIONS | $ | 67,371 | $ | 45,694 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP (ADJUSTED) NET INCOME
(Unaudited, amounts in thousands)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| GAAP NET INCOME | $ | 46,964 | $ | 29,450 | ||||
| ADJUSTMENTS TO NET INCOME: | ||||||||
| Inventory step-up charges | 1,598 | |||||||
| Acquisition and integration costs | 3,189 | 2,551 | ||||||
| Contingent consideration | (2,411 | ) | ||||||
| Intangible amortization | 6,593 | 5,162 | ||||||
| Loss on conversion of debt | 1 | |||||||
| Amortization of debt issuance costs | 452 | 352 | ||||||
| Non-cash interest expense (1) | 2,476 | |||||||
| Tax effect of non-GAAP charges | (1,042 | ) | (2,822 | ) | ||||
| ADJUSTED NET INCOME | $ | 53,745 | $ | 38,768 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP NET INCOME PER SHARE TO NON-GAAP (ADJUSTED) NET INCOME PER SHARE
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| GAAP NET INCOME PER SHARE - DILUTED | $ | 0.81 | $ | 0.52 | ||||
| ADJUSTMENTS TO NET INCOME PER SHARE - DILUTED: | ||||||||
| Inventory step-up charges | 0.03 | |||||||
| Acquisition and integration costs | 0.05 | 0.04 | ||||||
| Contingent consideration | (0.04 | ) | ||||||
| Intangible amortization | 0.11 | 0.09 | ||||||
| Loss on conversion of debt | 0.00 | |||||||
| Amortization of debt issuance costs (1) | 0.00 | 0.01 | ||||||
| Non-cash interest expense (2) | 0.04 | |||||||
| Tax effect of non-GAAP charges | (0.02 | ) | (0.05 | ) | ||||
| ADJUSTED NET INCOME PER SHARE - DILUTED | $ | 0.92 | $ | 0.68 |
Totals may not add due to rounding.
RECONCILIATION OF GAAP NET
INCOME TO ADJUSTED EBITDA
(Unaudited, amounts in thousands)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| GAAP NET INCOME | $ | 46,964 | $ | 29,450 | ||||
| ADJUSTMENTS: | ||||||||
| Investment income | (77 | ) | (52 | ) | ||||
| Interest expense | 292 | 277 | ||||||
| Non-cash interest expense (1) | 2,477 | |||||||
| Amortization of debt issuance costs | 452 | 352 | ||||||
| Income tax provision | 11,967 | 3,655 | ||||||
| Depreciation | 5,213 | 3,255 | ||||||
| Amortization (2) | 6,621 | 5,189 | ||||||
| EBITDA | 71,432 | 44,603 | ||||||
| OTHER ADJUSTMENTS: | ||||||||
| Inventory step-up charges | 1,598 | |||||||
| Acquisition and integration costs | 3,189 | 2,551 | ||||||
| Contingent consideration | (2,411 | ) | ||||||
| Loss on conversion of debt | 1 | |||||||
| ADJUSTED EBITDA | $ | 72,210 | $ | 48,753 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP COST OF SALES TO NON-GAAP (ADJUSTED) COST OF SALES
(Unaudited, amounts in thousands)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| GAAP COST OF SALES | $ | 82,356 | $ | 59,747 | ||||
| ADJUSTMENT TO COST OF SALES: | ||||||||
| Inventory step-up charges | (1,598 | ) | ||||||
| Acquisition and integration costs | (527 | ) | (81 | ) | ||||
| ADJUSTED COST OF SALES | $ | 81,829 | $ | 58,068 |
REPLIGEN CORPORATION
RECONCILIATION OF GAAP R&D EXPENSE TO NON-GAAP (ADJUSTED) R&D EXPENSE
(Unaudited, amounts in thousands)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| GAAP R&D | $ | 12,155 | $ | 7,612 | ||||
| ADJUSTMENT TO R&D: | ||||||||
| Acquisition and integration costs | (317 | ) | (220 | ) | ||||
| ADJUSTED R&D | $ | 11,838 | $ | 7,392 |