Full Press Release Details
Teknova Reports Second Quarter 2021 Financial Results
$8.3 million in total revenue, up 38% year-over-year
Strong cash position of $108.0 million supports investment in long-term growth strategy
HOLLISTER, Calif., August 11, 2021 Alpha Teknova, Inc. ( Teknova ) (Nasdaq: TKNO), a leading provider of critical
reagents for the development and production of biopharmaceutical products including drug therapies, novel vaccines, and molecular diagnostics, today announced financial results for the second quarter ended June 30, 2021.
We are pleased with our performance during the second quarter of 2021, as we continued to see strong demand across our Lab Essentials and Clinical
Solutions product categories, said Stephen Gunstream, President and CEO of Teknova. Together with the successful completion of our initial public offering, our growing revenue supports our long-term strategy by fueling investments to
increase production capacity and to extend our commercial and R&D capabilities in the near term.
Corporate and Financial Updates
Revenue for the Second Quarter and
| $000s | Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| Unaudited | 2021 | 2020 | YoY Chg | 2021 | 2020 | YoY Chg | ||||||||||||||||||
| Lab Essentials | 6,456 | 4,430 | 46% | 13,246 | 9,679 | 37% | ||||||||||||||||||
| Clinical Solutions | 1,593 | 1,208 | 32% | 2,664 | 1,787 | 49% | ||||||||||||||||||
| Sample Transport | 37 | 174 | (78%) | 961 | 174 | 453% | ||||||||||||||||||
| Other | 227 | 232 | (2%) | 520 | 516 | 1% | ||||||||||||||||||
| Total Revenue | 8,313 | 6,044 | 38% | 17,391 | 12,156 | 43% |
Second Quarter 2021 Financial Highlights
Total revenues for the second quarter 2021 were $8.3 million, a 38% increase from $6.0 million in the second quarter 2020. Excluding Sample Transport
medium, revenues for the second quarter 2021 were $8.3 million, a 41% increase from $5.9 million in the second quarter 2020.
the second quarter 2021 was $3.4 million, compared to $3.5 million in the second quarter 2020. Gross margin for the second quarter 2021 was 40.4% of revenue, compared to 57.4% of revenue in the second quarter of 2020. Cost of sales in the
second quarter 2021 included a $0.7 million one-time reserve related to excess Sample Transport medium inventory.
Operating expenses for the second quarter 2021 were $5.9 million compared to $2.8 million in the second quarter 2020. The increase was driven by
increased headcount in research and development, sales and marketing, and general and administrative functions to support our new product development efforts, develop our commercial presence and increase customer support, and build the
infrastructure necessary to support our growth strategy.
Net loss attributable to common stockholders for the second quarter 2021 was $2.3 million,
or $0.52 per share, compared to net income attributable to common stockholders of $0.1 million, or $0.02 per share, for the second quarter 2020.
Adjusted EBITDA for the second quarter 2021 was negative $1.5 million, compared to $1.2 million for the second quarter 2020.
As of June 30, 2021, the Company had $108.0 million in cash and cash equivalents.
Conference Call and Webcast
Teknova will host a webcast
and conference call today, Wednesday, August 11, beginning at 4:30 p.m. ET. Participants may access the live webcast on the Investor Relations section of the Teknova website and at this link: https://edge.media-server.com/mmc/p/avgvftny. The
conference call can be accessed by dialing 877-312-1451 for domestic callers and
470-495-9521 for international callers. The conference ID number is 2756899. A replay will be available for 30 days on the Investor Relations section of the Teknova
Teknova is expediting
clinical breakthroughs in the life sciences by providing custom products and reagents for bioprocessing, bioproduction, and molecular diagnostics. With a focus on agility and customization, Teknova delivers research-grade and GMP products including
cell culture media and supplements, protein and nucleic acid purification buffers, and molecular biology reagents for a multitude of established and emerging applications, including cell and gene therapy, mRNA therapeutics, genomics, and synthetic
biology. Teknova s proprietary processes enable the manufacture and delivery of high quality, custom, made-to-order products on short turnaround times and at scale
across all stages of development, including commercialization.
Non-GAAP Financial Measures
This press release contains financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Teknova
uses the following non-GAAP financial measures in assessing the performance of our business and the effectiveness of our business strategies: (a) Adjusted EBITDA and (b) Adjusted Free Cash Flow.
Teknova defines Adjusted EBITDA as net income (loss) adjusted for interest expense, provision for income taxes, depreciation expense, amortization of
intangible assets and stock-based compensation expenses. Adjusted EBITDA reflects further adjustments to eliminate the impact of certain items, including certain non-cash and other items that we do not
consider representative of our ongoing operating performance.
Teknova defines Adjusted Free Cash Flow as Adjusted EBITDA less capital expenditures.
Teknova presents Adjusted EBITDA and Adjusted Free Cash Flow in this press release because Teknova believes analysts, investors, and other interested parties
frequently use these measures to evaluate companies in our industry and that they facilitate comparisons on a consistent basis across reporting periods. Further, Teknova believes they are helpful in highlighting trends in our operating results
because they exclude items that are not indicative of our core operating performance.
Adjusted EBITDA and Adjusted Free Cash Flow have limitations as
analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Teknova may in the future incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. In
particular, Teknova expects to incur meaningful share-based compensation expense in the future. Other limitations include the following, which Adjusted EBITDA and Adjusted Free Cash Flow do not reflect:
In addition, Adjusted EBITDA and Adjusted Free Cash Flow may not be comparable to similarly titled measures
used by other companies in our industry or across different industries.
A full reconciliation of these non-GAAP
measures to the most comparable GAAP measures is included at the end of this release.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical
facts, may constitute forward-looking statements. These statements include, but are not limited to, statements relating to our long-term growth strategy, demand for our products, expansion of our production capacity and commercial and
R&D capabilities. The words, without limitation, anticipate, believe, continue, could, estimate, expect, intend, may, plan,
potential, predict, project, should, target, will, would and similar expressions are intended to identify forward-looking statements, although not all
forward-looking statements contain these or similar identifying words. These forward-looking statements are based on management s current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to
predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our cash flows
and revenue growth rate; our supply chain, sourcing, manufacturing and warehousing; inventory management; risks related to global economic and marketplace uncertainties related to the impact of the COVID-19
pandemic; reliance on a limited number of customers for a high percentage of our revenue; acquisitions of other companies and other factors discussed in the Risk Factors section of our most recent periodic reports filed with the
Securities and Exchange Commission ( SEC ), including in our final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 25, 2021, all of which you may obtain for free on the
SEC s website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether
as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Chief Financial Officer
Condensed Balance Sheets
thousands, except share and per share data)
| As of June 30, 2021 | As of December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 108,022 | $ | 3,315 | ||||
| Short-term investments | 1,811 | |||||||
| Accounts receivable, net | 4,058 | 4,623 | ||||||
| Inventories | 3,880 | 3,582 | ||||||
| Income taxes receivable | 1,638 | 1,417 | ||||||
| Prepaid expenses and other current assets | 719 | 1,666 | ||||||
| Total current assets | 118,317 | 16,414 | ||||||
| Property, plant and equipment, net | 18,326 | 10,008 | ||||||
| Goodwill | 16,613 | 16,613 | ||||||
| Intangible assets, net | 19,278 | 19,852 | ||||||
| Other non-current assets | 31 | 24 | ||||||
| Total assets | $ | 172,565 | $ | 62,911 | ||||
| LIABILITIES, CONVERTIBLE AND REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,640 | $ | 1,635 | ||||
| Accrued liabilities | 3,301 | 2,327 | ||||||
| Total current liabilities | 5,941 | 3,962 | ||||||
| Deferred tax liabilities | 5,242 | 5,990 | ||||||
| Other accrued liabilities | 312 | 350 | ||||||
| Long term debt | 11,782 | |||||||
| Deferred rent | 253 | 204 | ||||||
| Total liabilities | 23,530 | 10,506 | ||||||
| Convertible and redeemable preferred stock | 35,638 | |||||||
| Stockholders equity: | ||||||||
| Common stock | ||||||||
| Additional paid-in capital | 149,675 | 14,495 | ||||||
| (Accumulated deficit) retained earnings | (640 | ) | 2,265 | |||||
| Accumulated other comprehensive income | 7 | |||||||
| Total stockholders equity | 149,035 | 16,767 | ||||||
| Total liabilities, convertible and redeemable preferred stock and stockholders equity | $ | 172,565 | $ | 62,911 |
Condensed Statements of Operations and Comprehensive Income (Loss)
thousands, except share and per share data)
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue | $ | 8,313 | $ | 6,044 | $ | 17,391 | $ | 12,156 | ||||||||
| Cost of sales | 4,959 | 2,575 | 9,012 | 5,058 | ||||||||||||
| Gross profit | 3,354 | 3,469 | 8,379 | 7,098 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 851 | 341 | 1,548 | 667 | ||||||||||||
| Sales and marketing | 904 | 481 | 1,609 | 831 | ||||||||||||
| General and administrative | 3,838 | 1,656 | 8,002 | 3,310 | ||||||||||||
| Amortization of intangible assets | 287 | 287 | 574 | 574 | ||||||||||||
| Total operating expenses | 5,880 | 2,765 | 11,733 | 5,382 | ||||||||||||
| (Loss) income from operations | (2,526 | ) | 704 | (3,354 | ) | 1,716 | ||||||||||
| Other income (expenses), net | ||||||||||||||||
| Interest income (expense), net | (304 | ) | 23 | (296 | ) | 55 | ||||||||||
| Other expense, net | (3 | ) | (4 | ) | (2 | ) | (25 | ) | ||||||||
| Total other income (expenses), net | (307 | ) | 19 | (298 | ) | 30 | ||||||||||
| (Loss) income before income taxes | (2,833 | ) | 723 | (3,652 | ) | 1,746 | ||||||||||
| (Benefit from) provision for income taxes | (583 | ) | 211 | (747 | ) | 286 | ||||||||||
| Net (loss) income | (2,250 | ) | 512 | (2,905 | ) | 1,460 | ||||||||||
| Less: undistributed income attributable to preferred stockholders | (425 | ) | (1,211 | ) | ||||||||||||
| Net (loss) income attributable to common stockholders | $ | (2,250 | ) | $ | 87 | $ | (2,905 | ) | $ | 249 | ||||||
| Net (loss) income per share attributable to common stockholders | ||||||||||||||||
| Basic | $ | (0.52 | ) | $ | 0.02 | $ | (0.73 | ) | $ | 0.07 | ||||||
| Diluted | $ | (0.52 | ) | $ | 0.02 | $ | (0.73 | ) | $ | 0.07 | ||||||
| Weighted average shares used in computing net (loss) income per share attributable to common stockholders | ||||||||||||||||
| Basic | 4,328,222 | 3,599,232 | 3,965,741 | 3,599,232 | ||||||||||||
| Diluted | 4,328,222 | 3,636,724 | 3,965,741 | 3,636,724 |
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net (loss) income as reported | $ | (2,250 | ) | $ | 512 | $ | (2,905 | ) | $ | 1,460 | ||||||
| Add back: | ||||||||||||||||
| Interest expense (income), net | 304 | (23 | ) | 296 | (55 | ) | ||||||||||
| (Benefit from) provision for income taxes | (583 | ) | 211 | (747 | ) | 286 | ||||||||||
| Depreciation expense | 413 | 189 | 778 | 358 | ||||||||||||
| Amortization of intangible assets | 287 | 287 | 574 | 574 | ||||||||||||
| EBITDA | $ | (1,829 | ) | $ | 1,176 | $ | (2,004 | ) | $ | 2,623 | ||||||
| Other and one-time expenses: | ||||||||||||||||
| Stock-based compensation expense | 302 | 485 | ||||||||||||||
| Adjusted EBITDA | $ | (1,527 | ) | $ | 1,176 | $ | (1,519 | ) | $ | 2,623 | ||||||
| Less: capital expenditures | (4,674 | ) | (584 | ) | (8,558 | ) | (953 | ) | ||||||||
| Adjusted Free Cash Flow | $ | (6,201 | ) | $ | 592 | $ | (10,077 | ) | $ | 1,670 |