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Record revenue of $40.7 million increased 21% over Q3 2021; biopreservation media revenue growth of 50%, validating leading position as a critical cell and gene therapies tool supplier
Cash flow from operations of $1.5 million and adjusted EBITDA of $1.4 million
Tightens 2022 revenue guidance range reflecting year-over-year growth of 34% to 38% and organic growth of 37% to 40%
Conference call begins at 4:30 p.m. Eastern time today
BOTHELL, Wash., Nov. 9, 2022 /PRNewswire/ -- BioLife Solutions, Inc. (Nasdaq: BLFS) ("BioLife" or the "Company"), a leading developer and supplier of class-defining bioproduction products and services for the cell and gene therapy (CGT) and the broader biopharma markets, today announced financial results for the three and nine months ended September 30, 2022.
Mike Rice, Chairman and CEO, commented, "Against a backdrop of several macro headwinds affecting the life science tools industry, our team delivered a strong quarterly performance from our diversified offering of products and services, setting the stage for record full-year revenue. We are tightening our 2022 revenue guidance range and have a bullish outlook for 2023, driven by strong growth expectations from our Cell Processing platform."
"Our high-margin biopreservation media product line, which is recurring consumables revenue, grew 50% over Q3 2021. With our year-to-date results, BioLife has validated its position as a CGT tools leader. We generated record total revenue for Q3 despite a prior year comparable that included significant COVID-related revenue. We continue to diversify our customer base and increase cross-selling success by partnering with customers to drive adoption of multiple platforms, all of which can reduce risk in CGT manufacturing, storage and distribution. It's important to note that in Q3, 44% of total revenue was from proprietary consumables and 18% was from recurring service revenue, so over 60% of total revenue was from non-capital equipment sales."
Troy Wichterman, CFO, added, "We achieved positive adjusted EBITDA of $1.4 million for the third quarter, with further gains expected in Q4 2022. Although we continue to experience strong demand for our biopreservation media products, we are adjusting the top of our 2022 revenue guidance range to reflect expected shipment delays related to industry-wide supply-chain challenges impacting our cryogenic freezer product line. Any delays are expected to create a backlog of orders that we expect to ship in Q1 2023."
Operational Highlights
Third Quarter 2022 Financial Results
BioLife Solutions is presenting various financial metrics under U.S. Generally Accepted Accounting Principles (GAAP) and as adjusted (non-GAAP). A reconciliation of GAAP to non-GAAP metrics appears at the end of this news release.
REVENUE
GROSS MARGIN
OPERATING EXPENSE
OPERATING INCOME/(LOSS)
NET INCOME/(LOSS)
EARNINGS/(LOSS) PER SHARE
ADJUSTED EBITDA
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
2022 Revenue Guidance
Management is updating 2022 revenue guidance. Total revenue for 2022 is now expected to range from $160 million to $164 million compared with prior guidance of $160 million to $166 million, and reflects year-over-year growth of 34% to 38% and organic growth of 37% to 40%. COVID-19 related revenue is expected to account for approximately 7% to 8% of total revenue.
This revised revenue guidance includes the following platform contributions:
Although the Company does not provide guidance below the revenue line, BioLife expects positive full year adjusted EBITDA.
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 (800) 715-9871 for domestic callers or (646) 307-1963 for international callers. The conference ID number is 8988696. 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 class-defining bioproduction tools and services for the cell and gene therapy and broader biopharma markets. Our tools portfolio includes our proprietary CryoStor ® and HypoThermosol ® biopreservation media for shipping and storage, the ThawSTAR ® family of automated, water-free thawing products, evo ® cold chain management system, high capacity cryogenic storage freezers, Stirling Ultracold mechanical freezers, SciSafe biologic storage services, and Sexton Biotechnologies cell processing tools. For more information, please visit www.biolifesolutions.com, www.scisafe.com, www.stirlingultracold.com, or www.sextonbio.com and follow BioLife on Twitter.
Cautions Regarding Forward Looking Statements
Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements concerning the expected financial performance of the Company following the completion of its 2019, 2020 and 2021 acquisitions and giving effect to the COVID-19 pandemic, the Company's ability to implement its business strategy and anticipated business and operations, in particular following its recent acquisitions and the construction and validation of a center of excellence biorepository, the expected synergies between the Company and the companies and products that it has recently acquired, the Company's ability to realize all or any of the anticipated benefits associated with its recent acquisitions, the Company's ability to address and resolve ULT freezer issues, the potential utility of and market for the Company's products and services, including the adoption of evo cold chain services by all six currently approved CAR T-cell therapies, and the Company's ability to cross sell its products and services, guidance for financial results for 2022, including regarding revenue of its recently acquired products, and potential revenue growth and changes in gross margin, adjusted gross margin and adjusted EBITDA margin, and potential market expansion, including with consideration to our recent acquisitions and giving effect to the COVID-19 pandemic, the Company's anticipated future growth strategy, including the acquisition of synergistic cell and gene therapy manufacturing tools and services or technologies, regulatory approvals and/or commercial manufacturing of our customers' products, and potential customer revenue. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including among other things, unexpected costs, charges or expenses resulting from our recent acquisitions, market adoption of the Company's products (including the Company's recently acquired products), the ability of our recent acquisitions to be accretive on the Company's financial results, the ability of the Company to continue to implement its business strategy, uncertainty regarding third-party market projections, market volatility, competition, litigation, the impact of the COVID-19 pandemic and supply chain issues, and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We undertake no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, other than as may be required by applicable law.
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: adjusted gross profit and gross margin, adjusted operating expenses, adjusted operating income/(loss), adjusted net income/(loss), earnings before interest, taxes, depreciation and amortization (EBITDA), and adjusted EBITDA. 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 results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures 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. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(In thousands, except per share and share data) | 2022 | 2021 | 2022 | 2021 | ||||||||
Product revenue | $ | 33,668 | $ | 29,201 | $ | 98,227 | $ | 70,445 | ||||
Service revenue | 4,330 | 2,250 | 11,117 | 6,417 | ||||||||
Rental revenue | 2,749 | 2,349 | 8,156 | 4,989 | ||||||||
Total revenue | 40,747 | 33,800 | 117,500 | 81,851 | ||||||||
Costs and operating expenses: | ||||||||||||
Cost of product, rental, and service revenue (exclusive of Intangible asset amortization) | 27,009 | 24,864 | 77,649 | 50,968 | ||||||||
Research and development | 3,425 | 3,219 | 10,634 | 8,250 | ||||||||
Sales and marketing | 5,277 | 4,065 | 15,583 | 9,228 | ||||||||
General and administrative | 11,581 | 10,081 | 34,128 | 22,058 | ||||||||
Intangible asset amortization | 2,513 | 2,525 | 8,236 | 5,340 | ||||||||
Acquisition costs | 1 | 345 | 18 | 1,616 | ||||||||
Change in fair value of contingent consideration | 2,346 | (140) | (3,348) | 1,086 | ||||||||
Intangible asset impairment charges | - | - | 69,900 | - | ||||||||
Total operating expenses | 52,152 | 44,959 | 212,800 | 98,546 | ||||||||
Operating loss | (11,405) | (11,159) | (95,300) | (16,695) | ||||||||
Other income (expense), net | ||||||||||||
Change in fair value of warrant liability | - | - | - | (121) | ||||||||
Change in fair value of investments | 697 | - | 697 | - | ||||||||
Interest income (expense), net | 10 | (194) | (181) | (331) | ||||||||
Other expense | 142 | (7) | 270 | (7) | ||||||||
Gain on acquisition of Sexton Biotechnologies, Inc. | - | 6,451 | - | 6,451 | ||||||||
Total other income | 849 | 6,250 | 786 | 5,992 | ||||||||
Loss before income tax benefit | (10,556) | (4,909) | (94,514) | (10,703) | ||||||||
Income tax benefit | 599 | 4,988 | 4,937 | 17,540 | ||||||||
Net (loss) income | $ | (9,957) | $ | 79 | $ | (89,577) | $ | 6,837 | ||||
Net (loss) income attributable to common shareholders | ||||||||||||
Basic | $ | (0.23) | $ | 0.00 | $ | (2.11) | $ | 0.18 | ||||
Diluted | $ | (0.23) | $ | 0.00 | $ | (2.11) | $ | 0.17 | ||||
Weighted average shares used to compute earnings (loss) per share attributable to common shareholders: | ||||||||||||
Basic | 42,647,967 | 40,911,801 | 42,376,392 | 37,435,224 | ||||||||
Diluted | 42,647,967 | 43,296,470 | 42,376,392 | 39,984,923 | ||||||||
BIOLIFE SOLUTIONS, INC. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||
NET INCOME/(LOSS) | $ | (9,957) | $ | 79 | $ | (89,577) | $ | 6,837 | ||||
Other comprehensive income/(loss) | (357) | (166) | (975) | (163) | ||||||||
COMPREHENSIVE INCOME/(LOSS) | $ | (10,314) | $ | (87) | $ | (90,552) | $ | 6,674 | ||||
BIOLIFE SOLUTIONS, INC. | |||||||||
September 30, | December 31, | ||||||||
(In thousands) | 2022 | 2021 | |||||||
Cash, cash equivalents, and marketable securities | $ | 62,140 | $ | 69,870 | |||||
Working capital | 98,926 | 85,478 | |||||||
Current assets | 135,874 | 125,859 | |||||||
Current liabilities | 36,948 | 40,381 | |||||||
Total assets | 487,679 | 554,057 | |||||||
Long-term obligations | 42,482 | 33,539 | |||||||
Accumulated deficit | (194,597) | (105,020) | |||||||
Total shareholders' equity | $ | 408,249 | $ | 480,137 | |||||
BIOLIFE SOLUTIONS, INC. | ||||||
Nine Months Ended | ||||||
September 30, | ||||||
(In thousands) | 2022 | 2021 | ||||
Net cash used in operating activities | $ | (16,345) | $ | (3,819) | ||
Net cash used in investing activities | (43,223) | (10,650) | ||||
Net cash provided by (used in) financing activities | 16,941 | (673) | ||||
Effects of currency translation | (176) | (163) | ||||
Net increase (decrease) in cash, cash equivalents and restricted stock | $ | (42,803) | $ | (15,305) | ||
BIOLIFE SOLUTIONS, INC. | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||
GAAP GROSS PROFIT | $ | 12,442 | $ | 8,301 | $ | 36,369 | $ | 29,075 | ||||||
GAAP GROSS MARGIN | 31 | % | 25 | % | 31 | % | 36 | % | ||||||
ADJUSTMENTS TO GROSS PROFIT: | ||||||||||||||
Inventory step-up | - | 365 | 251 | 1,130 | ||||||||||
Intangible asset amortization | 1,296 | 635 | 3,482 | 1,808 | ||||||||||
ADJUSTED GROSS PROFIT | $ | 13,738 | $ | 9,301 | $ | 40,102 | $ | 32,013 | ||||||
ADJUSTED GROSS MARGIN | 34 | % | 28 | % | 34 | % | 39 | % | ||||||
BIOLIFE SOLUTIONS, INC. | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||
GAAP OPERATING EXPENSES | $ | 52,152 | $ | 44,959 | $ | 212,800 | $ | 98,546 | |||||||
ADJUSTMENTS TO OPERATING EXPENSES: | |||||||||||||||
Cost of product, rental, and service revenue | (27,009) | (24,864) | (77,649) | (50,968) | |||||||||||
Acquisition costs | (1) | (345) | (18) | (1,616) | |||||||||||
Intangible asset amortization | (2,513) | (2,525) | (8,236) | (5,340) | |||||||||||
Loss on disposal of assets | 169 | (7) | (88) | (24) | |||||||||||
Change in fair value of contingent consideration | (2,346) | 140 | 3,348 | (1,086) | |||||||||||
Intangible asset impairment charges | - | - | (69,900) | - | |||||||||||
ADJUSTED OPERATING EXPENSES | $ | 20,451 | $ | 17,358 | $ | 60,257 | $ | 39,512 | |||||||
BIOLIFE SOLUTIONS, INC. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
GAAP OPERATING INCOME/(LOSS) | $ | (11,405) | $ | (11,159) | $ | (95,300) | $ | (16,695) | ||||||||
ADJUSTMENTS TO OPERATING INCOME: | ||||||||||||||||
Inventory step-up | - | 365 | 251 | 1,130 | ||||||||||||
Acquisition costs | 1 | 345 | 18 | 1,616 | ||||||||||||
Intangible asset amortization | 2,513 | 2,525 | 8,236 | 5,340 | ||||||||||||
Loss on disposal of assets | (169) | 7 | 88 | 24 | ||||||||||||
Change in fair value of contingent consideration | 2,346 | (140) | (3,348) | 1,086 | ||||||||||||
Intangible asset impairment charges | - | - | 69,900 | - | ||||||||||||
ADJUSTED OPERATING INCOME/(LOSS) | $ | (6,714) | $ | (8,057) | $ | (20,155) | $ | (7,499) | ||||||||
BIOLIFE SOLUTIONS, INC. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||
GAAP NET INCOME/(LOSS) | $ | (9,957) | $ | 79 | $ | (89,577) | $ | 6,837 | ||||
ADJUSTMENTS TO NET INCOME/(LOSS): | ||||||||||||
Inventory step-up | - | 365 | 251 | 1,130 | ||||||||
Acquisition costs | 1 | 345 | 18 | 1,616 | ||||||||
Intangible asset amortization | 2,513 | 2,525 | 8,236 | 5,340 | ||||||||
Loss on disposal of assets | (169) | 7 | 88 | 24 | ||||||||
Change in fair value of contingent consideration | 2,346 | (140) | (3,348) | 1,086 | ||||||||
Change in fair value of investments | (697) | - | (697) | - | ||||||||
Change in fair value of warrant liability | - | - | - | 121 | ||||||||
Gain on acquisition of Sexton Biotechnologies, Inc. | - | (6,451) | - | (6,451) | ||||||||
Income tax benefit | (599) | (4,988) | (4,937) | (17,540) | ||||||||
Intangible asset impairment charges | - | - | 69,900 | - | ||||||||
ADJUSTED NET INCOME/(LOSS) | $ | (6,562) | $ | (8,258) | $ | (20,066) | $ | (7,837) | ||||
BIOLIFE SOLUTIONS, INC. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||
GAAP NET INCOME/(LOSS) | $ | (9,957) | $ | 79 | $ | (89,577) | $ | 6,837 | ||||
ADJUSTMENTS: | ||||||||||||
Interest expense/(income), net | (10) | 194 | 163 | 331 | ||||||||
Income tax benefit | (599) | (4,988) | (4,937) | (17,540) | ||||||||
Depreciation(1) | 1,722 | 1,101 | 5,045 | 2,996 | ||||||||
Intangible asset amortization | 2,513 | 2,525 | 8,238 | 5,340 | ||||||||
EBITDA | $ | (6,331) | $ | (1,089) | $ | (81,068) | $ | (2,036) | ||||
OTHER ADJUSTMENTS: | ||||||||||||
Share-based compensation (non-cash) | 6,299 | 4,868 | 17,671 | 8,892 | ||||||||
Inventory step-up | - | 365 | 251 | 1,130 | ||||||||
Acquisition costs | 1 | 345 | 18 | 1,616 | ||||||||
Loss on disposal of assets | (169) | 7 | 88 | 24 | ||||||||
Change in fair value of contingent consideration | 2,346 | (140) | (3,348) | 1,086 | ||||||||
Change in fair value of investments | (697) | - | (697) | - | ||||||||
Change in fair value of warrant liability | - | - | - | 121 | ||||||||
Gain on acquisition of Sexton Biotechnologies, Inc. | - | (6,451) | - | (6,451) | ||||||||
Intangible asset impairment charges | - | - | 69,900 | - | ||||||||
ADJUSTED EBITDA | $ | 1,449 | $ | (2,095) | $ | 2,815 | $ | 4,382 | ||||
(1) | YTD depreciation addback includes a correction for $684,000 of depreciation not previously reported in BioLife Solutions's earnings release for the three and six months ended June 30, 2022 |
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SOURCE BioLife Solutions, Inc.