Emergent BioSolutions Inc. (NYSE: EBS) today reported financial
results for the quarter and year ended December 31, 2024.
"As we close out 2024, I’m proud to share we
delivered favorable full-year financial results driven by our core
products, all the while, completing a series of strategic
stabilization actions to strengthen our financial position ahead of
plan," said Joe Papa, president and chief executive officer of
Emergent. “This strong foundation enables Emergent to focus on
profitable revenue growth and cash generation as we move forward
with turnaround activities, a critical phase in our multi-year
transformation plan. Our results and progress are a testament to
the hard work and dedication of our entire team, and we believe
Emergent’s future will be defined by the durability of our
business, opportunities for new markets and innovation, and a
steadfast commitment to protecting and saving lives."
FINANCIAL HIGHLIGHTS(1)
Q4 2024 vs.
Q4 2023
|
($ in millions, except per share amounts) |
Q4 2024 |
Q4 2023 |
% Change |
|
Total Revenues |
$ |
194.7 |
|
$ |
276.6 |
|
(30 |
)% |
|
Net Loss |
$ |
(31.3 |
) |
$ |
(49.5 |
) |
37 |
% |
|
Net Loss per Diluted Share |
$ |
(0.58 |
) |
$ |
(0.95 |
) |
39 |
% |
|
Adjusted Net Income (Loss)(2) |
$ |
2.6 |
|
$ |
(40.0 |
) |
107 |
% |
|
Adjusted Net Income (Loss) per Diluted Share(2) |
$ |
0.05 |
|
$ |
(0.77 |
) |
106 |
% |
|
Adjusted EBITDA(2) |
$ |
21.0 |
|
$ |
3.4 |
|
518 |
% |
|
Total Segment Gross Margin %(2) |
|
29 |
% |
|
25 |
% |
|
|
Total Segment Adjusted Gross Margin %(2) |
|
40 |
% |
|
32 |
% |
|
Year to Date
(“YTD”) 2024 vs. YTD
2023
|
($ in millions, except per share amounts) |
YTD 2024 |
YTD 2023 |
% Change |
|
Total Revenues |
$ |
1,043.6 |
|
$ |
1,049.3 |
|
(1 |
)% |
|
Net Loss |
$ |
(190.6 |
) |
$ |
(760.5 |
) |
75 |
% |
|
Net Loss per Diluted Share |
$ |
(3.60 |
) |
$ |
(14.85 |
) |
76 |
% |
|
Adjusted Net Loss(2) |
$ |
(12.1 |
) |
$ |
(319.0 |
) |
96 |
% |
|
Adjusted Net Loss per Diluted Share(2) |
$ |
(0.23 |
) |
$ |
(6.23 |
) |
96 |
% |
|
Adjusted EBITDA(2) |
$ |
183.1 |
|
$ |
(22.3 |
) |
921 |
% |
|
Total Segment Gross Margin %(2) |
|
26 |
% |
|
25 |
% |
|
|
Total Segment Adjusted Gross Margin %(2) |
|
45 |
% |
|
33 |
% |
|
SELECT 2024 FULL YEAR BUSINESS
UPDATES
- Appointed industry leader Joseph C.
Papa as President, CEO and Director
- Appointed Dr. Simon Lowry as Chief
Medical Officer and Head of Research and Development
- Received approximately $550 million
of Medical Countermeasure Contract Modification Awards
- Awarded procurement contract valued
up to $235.8 million to supply BioThrax® (Anthrax Vaccine Adsorbed)
to the U.S. Department of Defense
- FDA approved sBLA for expansion of
the indication for ACAM2000® to include prevention of mpox disease
in individuals determined to be at high risk
- Repaid $168 million of debt and
extended maturities to 2029 with new $250 million secured term loan
and $100 million asset-backed revolving credit facility
- Completed $117 million of targeted
asset divestitures and streamlined manufacturing footprint
- Resolved legacy legal disputes
including receipt of $50 million settlement payment from
Janssen
- Received $30 million in development
milestone payments from Bavarian Nordic as part of the sale of the
Travel Health Business
- Returned to strong, positive
operating cash flow
FOURTH QUARTER
2024 FINANCIAL PERFORMANCE(1)
Revenues
The Company uses the following categories in
discussing product/service level revenues:
- NARCAN® —
comprises contributions from NARCAN® Nasal Spray
- Anthrax MCM —
comprises contributions from CYFENDUS®, previously known as AV7909,
BioThrax®, Anthrasil® and Raxibacumab
- Smallpox MCM —
comprises contributions from ACAM2000®, VIGIV CNJ-016® and
TEMBEXA®
- Other Products —
comprises contributions from BAT® and RSDL®
- Bioservices —
comprises service and lease revenues from the Bioservices
business
|
($ in millions) |
Q4 2024 |
Q4 2023 |
% Change |
|
Product sales, net:(3) |
|
|
|
|
NARCAN® |
$ |
65.1 |
|
$ |
111.0 |
|
(41 |
)% |
|
Anthrax MCM |
|
32.5 |
|
|
111.6 |
|
(71 |
)% |
|
Smallpox MCM |
|
76.5 |
|
|
11.5 |
|
565 |
% |
|
Other Products |
|
7.8 |
|
|
15.0 |
|
(48 |
)% |
|
Total Product sales, net |
$ |
181.9 |
|
$ |
249.1 |
|
(27 |
)% |
| |
|
|
|
|
Bioservices: |
|
|
|
|
Services |
$ |
6.8 |
|
$ |
20.6 |
|
(67 |
)% |
|
Leases |
|
0.6 |
|
|
0.2 |
|
200 |
% |
|
Total Bioservices revenues |
$ |
7.4 |
|
$ |
20.8 |
|
(64 |
)% |
| |
|
|
|
|
Contracts and grants |
$ |
5.4 |
|
$ |
6.7 |
|
(19 |
)% |
| |
|
|
|
|
Total revenues |
$ |
194.7 |
|
$ |
276.6 |
|
(30 |
)% |
Product Sales, net
NARCAN®
For Q4 2024, revenues from NARCAN® (naloxone
HCl) Nasal Spray decreased $45.9 million, or 41%, as compared
with Q4 2023. The decrease was primarily driven by lower sales of
over-the-counter (“OTC”) NARCAN®, coupled with lower revenues for
Canadian retail sales.
Anthrax MCM
For Q4 2024, revenues from Anthrax MCM products
decreased $79.1 million, or 71%, as compared with Q4 2023. The
decrease reflects the impact of timing of sales related to
CYFENDUS®, Anthrasil®, and BioThrax®. Anthrax vaccine product sales
are primarily made under annual purchase options exercised by the
U.S. government (the “USG”). Fluctuations in revenues result from
the timing of USG purchases and the exercise of annual purchase
options, the availability of governmental funding and the Company’s
delivery of orders that follow.
Smallpox MCM
For Q4 2024, revenues from Smallpox MCM products
increased $65.0 million, or 565%, as compared with Q4 2023.
The increase was primarily due higher ACAM2000® sales to non-U.S.
customers and timing of USG purchases of VIGIV CNJ-016®.
Fluctuations in revenues result from the timing of USG purchases
and the exercise of annual purchase options in existing procurement
contracts, the availability of governmental funding and Company
delivery of orders that follow.
Other Products
For Q4 2024, revenues from Other Product sales
decreased $7.2 million, or 48%, as compared with Q4 2023. The
decrease was due to lower sales of RSDL®, which was sold to SERB
during the third quarter of 2024, and lower product sales of BAT®,
due to timing of deliveries.
Bioservices Revenues
Services
For Q4 2024, revenues from Bioservices services
decreased $13.8 million, or 67%, as compared with Q4 2023. The
decrease was primarily attributable to the sale of the Camden
facility to Bora Pharmaceuticals Injectables Inc., a subsidiary of
Bora Pharmaceuticals Co., Ltd (“Bora”), during the third quarter of
2024, coupled with lower revenue from the Company's Bayview
facility as a result of the prior year resolution of a customer's
outstanding obligation, partially offset by higher production from
the Company’s Winnipeg facility.
Leases
For Q4 2024, revenues from Bioservices leases
increased $0.4 million, or 200%, as compared with Q4 2023. The
increase was attributable to an increase in lease revenue
associated with SERB at our Winnipeg facility.
Contracts and Grants
For Q4 2024, revenues from contracts and grants
decreased $1.3 million, or 19%, as compared with Q4 2023. The
decrease was primarily attributable to the wind-down of various
development initiatives.
Operating Expenses
|
($ in millions) |
Q4 2024 |
Q4 2023 |
% Change |
|
Cost of Commercial product sales |
$ |
33.2 |
|
$ |
50.1 |
|
(34 |
)% |
|
Cost of MCM product sales |
|
72.1 |
|
|
97.2 |
|
(26 |
)% |
|
Cost of Bioservices |
|
12.7 |
|
|
37.8 |
|
(66 |
)% |
|
Research and development (“R&D”) |
|
9.1 |
|
|
29.4 |
|
(69 |
)% |
|
Selling, general and administrative (“SG&A”) |
|
60.8 |
|
|
89.7 |
|
(32 |
)% |
|
Amortization of intangible assets |
|
16.3 |
|
|
16.2 |
|
1 |
% |
|
Total operating expenses |
$ |
204.2 |
|
$ |
320.4 |
|
(36 |
)% |
Cost of Commercial Product Sales
For Q4 2024, cost of Commercial Product sales
decreased $16.9 million, or 34%, as compared with Q4 2023. The
decrease was primarily due to lower OTC NARCAN® unit volume.
Cost of MCM Product Sales
For Q4 2024, cost of MCM Product sales decreased
$25.1 million, or 26%, as compared with Q4 2023. The decrease
was primarily due to lower sales of CYFENDUS® and Anthrasil®,
coupled with a reduction in Trobigard®-related costs due to the
revocation of Trobigard's Marketing Authorization during the second
quarter of 2024 and lower sales of RSDL®, which was sold to SERB
during the third quarter of 2024. This decrease was partially
offset by an increase in TEMBEXA® related costs and higher sales of
ACAM2000®.
Cost of Bioservices
For Q4 2024, cost of Bioservices decreased
$25.1 million, or 66%, as compared with Q4 2023. The decrease
was primarily attributable to lower costs due to the sale of the
Camden facility to Bora in the third quarter of 2024, coupled with
a decrease in overhead costs at our Gaithersburg facility. The
decrease was partially offset by higher costs at our Winnipeg
facility due to an increase in production.
Research and Development Expenses
For Q4 2024, R&D expenses decreased
$20.3 million, or 69%, as compared with Q4 2023. The decrease
was primarily driven by prior period write-offs related to program
terminations, a reduction in spend for certain funded and unfunded
projects and a reduction in related overhead costs driven by
headcount reductions.
Selling, General and Administrative Expenses
For Q4 2024, SG&A expenses decreased
$28.9 million, or 32%, as compared with Q4 2023. The decrease
was primarily due to lower legal services fees and consulting
services fees for disputes and other corporate initiatives, coupled
with lower employee related expenses and compensation as a result
of restructuring initiatives during 2023 and 2024. The decrease was
also driven by lower marketing fees related to the launch of OTC
NARCAN® in the prior year.
ADDITIONAL FINANCIAL
INFORMATION(1)
Capital Expenditures
|
($ in millions) |
Q4 2024 |
Q4 2023 |
% Change |
|
|
Capital expenditures |
$ |
1.7 |
|
$ |
11.4 |
|
(85 |
)% |
|
Capital expenditures as a % of total revenues |
|
1 |
% |
|
4 |
% |
|
|
For Q4 2024, capital expenditures decreased
largely due to lower development activities across the Company’s
facilities.
SEGMENT INFORMATION
The Company manages the business with a focus on
three reportable segments: (1) the Commercial Products segment
consisting of NARCAN® and other commercial products that were sold
as part of our travel health business in the second quarter of
2023; (2) the MCM Products segment consisting of Anthrax – MCM,
Smallpox – MCM and Other products and (3) the services segment
consisting of our Bioservices business (“Services”). The Company
evaluates the performance of these reportable segments based on
revenues and segment adjusted gross margin, which is a non-GAAP
financial measure. Segment revenue includes external customer
sales, but does not include inter-segment services. The Company
does not allocate contracts and grants revenue, R&D, SG&A,
amortization of intangible assets, interest and other income
(expense) or taxes to its evaluation of the performance of these
segments.
FOURTH QUARTER 2024 SEGMENT
RESULTS
|
($ in millions) |
Commercial Products |
|
Quarter Ended December 31, |
|
|
2024 |
|
|
2023 |
|
$ Change |
% Change |
|
Revenues |
$ |
65.1 |
|
$ |
111.0 |
|
$ |
(45.9 |
) |
(41 |
)% |
|
Cost of sales |
|
33.2 |
|
|
50.1 |
|
|
(16.9 |
) |
(34 |
)% |
|
Intangible asset amortization |
|
9.5 |
|
|
9.4 |
|
|
0.1 |
|
1 |
% |
|
Gross margin** |
$ |
22.4 |
|
$ |
51.5 |
|
$ |
(29.1 |
) |
(57 |
)% |
|
Gross margin %** |
|
34 |
% |
|
46 |
% |
|
|
|
Add back: |
|
|
|
|
|
Intangible asset amortization |
$ |
9.5 |
|
$ |
9.4 |
|
$ |
0.1 |
|
1 |
% |
|
Segment adjusted gross margin(2) |
$ |
31.9 |
|
$ |
60.9 |
|
$ |
(29.0 |
) |
(48 |
)% |
|
Segment adjusted gross margin %(2) |
|
49 |
% |
|
55 |
% |
|
|
** Gross margin is calculated as revenues less
cost of sales and intangible asset amortization. Gross margin % is
calculated as gross margin divided by revenues.
Commercial Products segment gross margin
decreased $29.1 million, or 57%, to $22.4 million in the quarter,
as compared with $51.5 million in the prior year quarter.
Commercial Products segment gross margin percentage decreased
twelve percentage points to 34% for the quarter ended December 31,
2024. The decrease was largely due to an unfavorable price and
volume mix in 2024 for NARCAN® products. Commercial Products
segment adjusted gross margin in the current year period excludes
the impact of intangible asset amortization of $9.5 million.
|
($ in millions) |
MCM Products |
|
Quarter Ended December 31, |
|
|
2024 |
|
|
2023 |
|
$ Change |
% Change |
|
Revenues |
$ |
116.8 |
|
$ |
138.1 |
|
$ |
(21.3 |
) |
(15 |
)% |
|
Cost of sales |
|
72.1 |
|
|
97.2 |
|
|
(25.1 |
) |
(26 |
)% |
|
Intangible asset amortization |
|
6.8 |
|
|
6.8 |
|
|
— |
|
— |
% |
|
Gross margin** |
$ |
37.9 |
|
$ |
34.1 |
|
$ |
3.8 |
|
11 |
% |
|
Gross margin %** |
|
32 |
% |
|
25 |
% |
|
|
|
Add back: |
|
|
|
|
|
Intangible asset amortization |
$ |
6.8 |
|
$ |
6.8 |
|
$ |
— |
|
— |
% |
|
Changes in fair value of financial instruments |
|
— |
|
|
0.6 |
|
|
(0.6 |
) |
(100 |
)% |
|
Restructuring costs |
|
(0.3 |
) |
|
(1.4 |
) |
|
1.1 |
|
79 |
% |
|
Inventory step-up provision |
|
5.0 |
|
|
2.0 |
|
|
3.0 |
|
150 |
% |
|
Segment adjusted gross margin(2) |
$ |
49.4 |
|
$ |
42.1 |
|
$ |
7.3 |
|
17 |
% |
|
Segment adjusted gross margin %(2) |
|
42 |
% |
|
30 |
% |
|
|
** Gross margin is calculated as revenues less
cost of sales and intangible asset amortization. Gross margin % is
calculated as gross margin divided by revenues.
MCM Products segment gross margin increased $3.8
million, or 11%, to $37.9 million in the quarter, as compared with
$34.1 million in the prior year quarter. MCM Products segment
gross margin percentage increased 7 percentage points to 32% for
the quarter ended December 31, 2024. The increase was largely due
to a favorable product mix weighted more heavily to higher margin
products. MCM Product segment adjusted gross margin in the current
year period excludes the impact of intangible asset amortization of
$6.8 million, inventory step-up provision of $5.0 million
and restructuring costs of $(0.3) million.
|
($ in millions) |
Services |
|
Quarter Ended December 31, |
|
|
2024 |
|
|
2023 |
|
$ Change |
% Change |
|
Revenues |
$ |
7.4 |
|
$ |
20.8 |
|
$ |
(13.4 |
) |
(64 |
)% |
|
Cost of services |
|
12.7 |
|
|
37.8 |
|
|
(25.1 |
) |
(66 |
)% |
|
Gross margin** |
$ |
(5.3 |
) |
$ |
(17.0 |
) |
$ |
11.7 |
|
69 |
% |
|
Gross margin %** |
|
(72 |
)% |
|
(82 |
)% |
|
|
|
Add back: |
|
|
|
|
|
Restructuring costs |
$ |
(0.1 |
) |
$ |
0.3 |
|
|
(0.4 |
) |
(133 |
)% |
|
Segment adjusted gross margin(2) |
$ |
(5.4 |
) |
$ |
(16.7 |
) |
$ |
11.3 |
|
68 |
% |
|
Segment adjusted gross margin %(2) |
|
(73 |
)% |
|
(80 |
)% |
|
|
** Gross margin is calculated as revenues less
cost of services less intangible asset amortization. Gross margin %
is calculated as gross margin divided by revenues.
Services segment gross margin increased $11.7
million, or 69%, to $(5.3) million in the quarter, as compared with
$(17.0) million in the prior year quarter. Services segment gross
margin percentage increased 10 percentage points to (72)% for the
quarter ended December 31, 2024. The increase was primarily due to
lower overhead and remediation costs related to the sale of the
Camden facility coupled with lower overhead costs at our
Gaithersburg facility. Services segment adjusted gross margin in
the current year period excludes the impact of restructuring costs
of $(0.1) million.
YTD 2024 SEGMENT RESULTS
|
($ in millions) |
Commercial Products |
|
Year Ended December 31, |
|
|
2024 |
|
|
2023 |
|
$ Change |
% Change |
|
Revenues |
$ |
398.9 |
|
$ |
497.3 |
|
$ |
(98.4 |
) |
(20 |
)% |
|
Cost of sales |
|
185.9 |
|
|
210.3 |
|
|
(24.4 |
) |
(12 |
)% |
|
Intangible asset amortization |
|
37.8 |
|
|
38.6 |
|
|
(0.8 |
) |
(2 |
)% |
|
Gross margin** |
$ |
175.2 |
|
$ |
248.4 |
|
$ |
(73.2 |
) |
(29 |
)% |
|
Gross margin %** |
|
44 |
% |
|
50 |
% |
|
|
|
|
Add back: |
|
|
|
|
|
|
Intangible asset amortization |
$ |
37.8 |
|
$ |
38.6 |
|
$ |
(0.8 |
) |
(2 |
)% |
|
Segment adjusted gross margin(2) |
$ |
213.0 |
|
$ |
287.0 |
|
$ |
(74.0 |
) |
(26 |
)% |
|
Segment adjusted gross margin %(2) |
|
53 |
% |
|
58 |
% |
|
|
|
** Gross margin is calculated as revenues less
cost of sales and intangible asset amortization. Gross margin % is
calculated as gross margin divided by revenues.
Commercial Products segment gross margin
decreased $73.2 million, or 29%, to $175.2 million for the year
ended December 31, 2024, as compared with $248.4 million for the
year ended December 31, 2023. Commercial Products segment gross
margin percentage decreased 6 percentage points to 44% in 2024. The
decrease was largely due to an unfavorable price and volume mix in
2024 for NARCAN® products, partially offset by the sale of the
products associated with our travel health business to Bavarian
Nordic. Commercial Products segment adjusted gross margin in the
current year period excludes the impact of intangible asset
amortization of $37.8 million.
|
($ in millions) |
MCM Products |
|
Year Ended December 31, |
|
|
2024 |
|
|
2023 |
|
$ Change |
% Change |
|
Revenues |
$ |
509.8 |
|
$ |
447.2 |
|
$ |
62.6 |
|
14 |
% |
|
Cost of sales |
|
219.4 |
|
|
305.6 |
|
|
(86.2 |
) |
(28 |
)% |
|
Intangible asset amortization |
|
27.3 |
|
|
27.0 |
|
|
0.3 |
|
1 |
% |
|
Gross margin** |
$ |
263.1 |
|
$ |
114.6 |
|
$ |
148.5 |
|
130 |
% |
|
Gross margin %** |
|
52 |
% |
|
26 |
% |
|
|
|
Add back: |
|
|
|
|
|
Intangible asset amortization |
$ |
27.3 |
|
$ |
27.0 |
|
$ |
0.3 |
|
1 |
% |
|
Changes in fair value of financial instruments |
|
0.6 |
|
|
0.2 |
|
|
0.4 |
|
200 |
% |
|
Inventory step-up provision |
|
6.2 |
|
|
3.9 |
|
|
2.3 |
|
59 |
% |
|
Restructuring costs |
|
7.2 |
|
|
5.6 |
|
|
1.6 |
|
29 |
% |
|
Segment adjusted gross margin(2) |
$ |
304.4 |
|
$ |
151.3 |
|
$ |
153.1 |
|
101 |
% |
|
Segment adjusted gross margin %(2) |
|
60 |
% |
|
34 |
% |
|
|
** Gross margin is calculated as revenues less
cost of sales and intangible asset amortization. Gross margin % is
calculated as gross margin divided by revenues.
MCM Products segment gross margin increased
$148.5 million, or 130%, to $263.1 million for the year ended
December 31, 2024, as compared with $114.6 million for the year
ended December 31, 2023. MCM Products segment gross margin
percentage increased 26 percentage points to 52% for the year ended
December 31, 2024. The increase was largely due to overall higher
sales volumes with a favorable product mix weighted more heavily to
higher margin products coupled with lower allocations to Cost of
MCM Product sales at our Bayview facility and lower shutdown
related costs, a reduction in Trobigard® related costs due to the
Trobigard® revocation, and realization of previously adjusted
inventory values. MCM Product segment adjusted gross margin in the
current year period excludes the impact of intangible asset
amortization of $27.3 million, restructuring costs of $7.2
million, inventory step-up provision of $6.2 million and changes in
fair value of financial instruments of $0.6 million.
|
($ in millions) |
Services |
|
Year Ended December 31, |
|
|
2024 |
|
|
2023 |
|
$ Change |
% Change |
|
Revenues |
$ |
104.9 |
|
$ |
78.5 |
|
$ |
26.4 |
|
34 |
% |
|
Cost of services |
|
276.0 |
|
|
189.5 |
|
|
86.5 |
|
46 |
% |
|
Gross margin** |
$ |
(171.1 |
) |
$ |
(111.0 |
) |
$ |
(60.1 |
) |
(54 |
)% |
|
Gross margin %** |
|
(163 |
)% |
|
(141 |
)% |
|
|
|
Add back: |
|
|
|
|
|
Settlement charges, net |
$ |
110.2 |
|
$ |
— |
|
$ |
110.2 |
|
NM |
|
|
Restructuring costs |
|
0.2 |
|
|
8.4 |
|
|
(8.2 |
) |
(98 |
)% |
|
Segment adjusted gross margin(2) |
$ |
(60.7 |
) |
$ |
(102.6 |
) |
$ |
41.9 |
|
41 |
% |
|
Segment adjusted gross margin %(2) |
|
(58 |
)% |
|
(131 |
)% |
|
|
** Gross margin is calculated as revenues less
cost of sales and intangible asset amortization. Gross margin % is
calculated as gross margin divided by revenues.NM - Not
Meaningful
Services segment gross margin decreased $60.1
million, or 54%, to $(171.1) million for the year ended
December 31, 2024, as compared with $(111.0) million for the
year ended December 31, 2023. Services segment gross margin
percentage decreased 22 percentage points to (163)% for the year
ended December 31, 2024. The decrease was primarily due to the
Settlement Agreement with Janssen and resulting revenue and
write-down of related assets mentioned above, coupled with lower
production at the Company's Canton facility. This decrease was
partially offset by an increase in production at the Camden
facility prior to the sale of the facility to Bora and a decrease
in overhead costs at our other Maryland facilities. Services
segment adjusted gross margin in the current year period excludes
the impact of segment settlement charge, net of $110.2 million and
restructuring costs of $0.2 million.
2025 FINANCIAL FORECAST
The Company provides the following financial
forecast for full year 2025 and Q1 2025, reflecting management's
expectations based on the most current information available.
|
METRIC($ in millions) |
Full Year 2024 Actual |
Full Year 2025 Forecast |
|
Total revenues |
$ |
1,043.6 |
|
$750 - $850 |
|
Net income (loss) |
$ |
(190.6 |
) |
$16 - $66 |
|
Adjusted net income (loss)(2) |
$ |
(12.1 |
) |
$20 - $70 |
|
Adjusted EBITDA(2) |
$ |
183.1 |
|
$150 - $200 |
|
Total segment adjusted gross margin %(2) |
|
45 |
% |
48% - 51% |
|
|
|
|
|
Segment Level Revenue |
|
|
|
MCM Products(4) |
$ |
509.8 |
|
$435 - $485 |
|
Commercial Products(5) |
$ |
398.9 |
|
$265 - $315 |
|
Key Assumptions($ and shares in millions) |
|
|
|
Interest expense |
~$55 |
|
|
R&D |
~6% to 7% of Revenue |
|
|
SG&A |
~27% to 28% of Revenue |
|
|
Weighted avg. fully diluted share count |
~54 |
|
|
Capex |
~$17 |
|
|
Depreciation & amortization |
~$100 |
|
Q1 2025
|
METRIC($ in millions) |
Q1 2025 Forecast |
|
Total revenues |
$200 - $240 |
FOOTNOTES
(1) All financial information included in this
release is unaudited.(2) See “Non-GAAP Financial Measures” and the
"Reconciliation of Non-GAAP Financial Measures" tables for the
definitions and reconciliations of these non-GAAP financial
measures to the most closely related GAAP financial measures.(3)
Product sales, net are reported net of variable consideration
including returns, rebates, wholesaler fees and prompt pay
discounts in accordance with GAAP.(4) Our MCM Products forecast
excludes revenues related to RSDL®, which product was sold during
the third quarter of 2024.(5) Our Commercial Products forecast
consists of revenues for NARCAN® Nasal Spray and revenues from
distribution of Kloxxado™ naloxone HCl nasal spray 8 mg pursuant to
an agreement with Hikma Pharmaceuticals PLC in January 2025.
CONFERENCE CALL, PRESENTATION SUPPLEMENT
AND WEBCAST INFORMATION
Company management will host a conference call
at 5:00 pm eastern time today, March 3, 2025, to discuss these
financial results. The conference call and presentation supplement
can be accessed from the Company's website or through the
following:
By phoneAdvanced registration
is required.Visit
https://register.vevent.com/register/BI9fd2e9c4549b4810a48b112eda75d4ad to
register and receive an email with the dial-in number, passcode and
registrant ID
By webcastVisit
https://edge.media-server.com/mmc/p/3zrcjovsA replay of the call
can be accessed from the Emergent website.
ABOUT EMERGENT BIOSOLUTIONS
INC.
At Emergent, our mission is to protect and save
lives. For over 25 years, we’ve been at work preparing those
entrusted with protecting public health. We deliver protective and
life-saving solutions for health threats like smallpox, mpox,
botulism, Ebola, anthrax and opioid overdose emergencies. To learn
more about how we help prepare communities around the world for
today’s health challenges and tomorrow’s threats, visit our website
and follow us on LinkedIn, X, Instagram, Apple Podcasts and
Spotify.
NON-GAAP FINANCIAL MEASURES
In the accompanying analysis of financial
information, we sometimes use information derived from consolidated
and segment financial information that may not be presented in our
financial statements or prepared in accordance with generally
accepted accounting principles in the United States (“GAAP”).
Certain of these financial measures are considered not in
conformity with GAAP (“non-GAAP financial measures”) under the
United States Securities and Exchange Commission (“SEC”) rules.
Specifically, we have referred to the following non-GAAP financial
measures:
- Adjusted Net Income
(Loss)
- Adjusted Net Income (Loss)
per Diluted Share
- Adjusted
EBITDA
- Total Segment
Revenues
- Total Segment Gross
Margin
- Total Segment Gross Margin
%
- Total Segment Adjusted
Gross Margin
- Total Segment Adjusted
Gross Margin %
- Segment Adjusted Gross
Margin
- Segment Adjusted Gross
Margin %
We define Adjusted Net Income (Loss) and
Adjusted Net Income (Loss) per Diluted Share, which are non-GAAP
financial measures, as net loss and net loss per diluted share,
respectively, excluding the impact of changes in fair value of
financial instruments, acquisition and divestiture-related costs,
severance and restructuring costs, settlement charges, net, exit
and disposal costs, impairment charges, gain on sale of business,
non-cash amortization charges, contingent consideration milestones,
and other income (expense) items. We use Adjusted Net Income (Loss)
for the purpose of calculating Adjusted Net Income (Loss) per
Diluted Share. Management uses Adjusted Net Income (Loss) per
Diluted Share to assess total Company operating performance on a
consistent basis. We believe that these non-GAAP financial
measures, when considered together with our GAAP financial results
and GAAP financial measures, provide management and investors with
an additional understanding of our business operating results,
including underlying trends.
We define Adjusted EBITDA, which is a non-GAAP
financial measure, as net loss before income tax provision
(benefit), interest expense, net, depreciation, amortization of
intangible assets, excluding the impact of changes in fair value of
financial instruments, acquisition and divestiture-related costs,
severance and restructuring costs, settlement charges, net, exit
and disposal costs, impairment charges, gain (loss) on sale of
business, non-cash amortization charges, contingent consideration
milestones and other income (expense) items. We believe that this
non-GAAP financial measure, when considered together with our GAAP
financial results and GAAP financial measures, provides management
and investors with a more complete understanding of our operating
results, including underlying trends. In addition, EBITDA is a
common alternative measure of operating performance used by many of
our competitors. It is used by investors, financial analysts,
rating agencies and others to value and compare the financial
performance of companies in our industry, although it may be
defined differently by different companies. Therefore, we also
believe that this non-GAAP financial measure, considered along with
corresponding GAAP financial measures, provides management and
investors with additional information for comparison of our
operating results with the operating results of other
companies.
We have included the definitions of Segment
Gross Margin and Segment Gross Margin %, which are GAAP financial
measures, below in order to more fully define the components of
certain non-GAAP financial measures presented in this press
release. We define Segment Gross Margin, as a segment's revenues,
less a segment's cost of sales or services and intangible asset
amortization. We define Segment Gross Margin %, as Segment Gross
Margin as a percentage of a segments revenues. We define Segment
Adjusted Gross Margin, which is a non-GAAP financial measure as
Segment Gross Margin excluding the impact of intangible asset
amortization, restructuring costs, changes in the fair value of
financial instruments, settlement charges, net and inventory
step-up provision. We define Segment Adjusted Gross Margin %, which
is a non-GAAP financial measure, as Segment Adjusted Gross Margin
as a percentage of a segment's revenues.
We define Total Segment Revenues, which is a
non-GAAP financial measure, as our Total Revenues, less contracts
and grants revenue, which is also equal to the sum of the revenues
of our reportable operating segments. We define Total Segment Gross
Margin, which is a non-GAAP financial measure, as Total Segment
Revenues less our aggregate cost of sales or services. We define
Total Segment Gross Margin %, which is a non-GAAP financial
measure, as Total Segment Gross Margin as a percentage of Total
Segment Revenues. We define Total Segment Adjusted Gross Margin,
which is a non-GAAP financial measure, as Total Segment Gross
Margin, excluding the impact of restructuring costs, settlement
charges, net, changes in the fair value of financial instruments
and inventory step-up provision. We define Total Segment Adjusted
Gross Margin %, which is a non-GAAP financial measure, as Total
Segment Adjusted Gross Margin as a percentage of Total Segment
Revenues.
Non-GAAP financial measures are not defined in
the same manner by all companies and may not be comparable with
other similarly titled measures of other companies. The
determination of the amounts that are excluded from these non-GAAP
financial measures are a matter of management judgment and depend
upon, among other factors, the nature of the underlying expense or
income amounts. Non-GAAP financial measures should be considered in
addition to, but not as a substitute for or superior to, the
information contained in our Consolidated Statements of Operations
and Consolidated Statements of Cash Flows. Reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP
financial measures are included in the financial tables
accompanying this press release.
SAFE HARBOR STATEMENT
This press release includes forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of
historical fact, including statements regarding the future
performance of the Company or any of our businesses, our business
strategy, future operations, future financial position, future
revenues and earnings, our ability to achieve the objectives of our
restructuring initiatives and divestitures, including our future
results, projected costs, prospects, plans and objectives of
management, are forward-looking statements. We generally identify
forward-looking statements by using words like “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “forecast,”
“future,” “goal,” “intend,” “may,” “plan,” “position,” “possible,”
“potential,” “predict,” “project,” “should,” “target,” “will,”
“would,” and similar expressions or variations thereof, or the
negative thereof, but these terms are not the exclusive means of
identifying such statements. These forward-looking statements are
based on our current intentions, beliefs, assumptions and
expectations regarding future events based on information that is
currently available. You should realize that if underlying
assumptions prove inaccurate or unknown risks or uncertainties
materialize, actual results could differ materially from our
expectations. Readers are, therefore, cautioned not to place undue
reliance on any forward-looking statement contained herein. Any
such forward-looking statement speaks only as of the date of this
press release, and, except as required by law, we do not undertake
any obligation to update any forward-looking statement to reflect
new information, events or circumstances.
There are a number of important factors that
could cause our actual results to differ materially from those
indicated by such forward-looking statements, including, among
others, the availability of USG funding for contracts related to
procurement of our medical countermeasure ("MCM") products,
including CYFENDUS® (Anthrax Vaccine Adsorbed (AVA) Adjuvanted),
previously known as AV7909, BioThrax® (Anthrax Vaccine Adsorbed),
and ACAM2000® (Smallpox (Vaccinia) Vaccine, Live) among others, as
well as contracts related to development of medical
countermeasures; our ability to meet our commitments to quality and
compliance in all of our manufacturing operations; our ability to
negotiate additional USG procurement or follow-on contracts for our
MCM products that have expired or will be expiring; the commercial
availability and impact of a generic and competitive marketplace on
future sales of NARCAN® (naloxone HCL) Nasal Spray and
over-the-counter NARCAN® Nasal Spray; our ability to perform under
our contracts with the USG, including the timing of and
specifications relating to deliveries; the ability of our
contractors and suppliers to maintain compliance with current good
manufacturing practices and other regulatory obligations; our
ability to negotiate new or further commitments related to the
collaboration and deployment of capacity toward future commercial
manufacturing related to our bioservices and under our existing
Bioservices contracts; our ability to collect reimbursement for raw
materials and payment of service fees from our Bioservices
customers; the results of pending government investigations and
their potential impact on our business; our ability to satisfy the
conditions of the final settlement, and the potential impact of the
final settlement agreement, including the funds to resolve the
litigation, on our business; our ability to comply with the
operating and financial covenants required by (i) our term loan
facility under a credit agreement, dated August 30, 2024, among the
Company, the lenders from time to time party thereto and OHA Agency
LLC, as administrative agent, (ii) our revolving credit facility
under a credit agreement, dated September 30, 2024, among the
Company, certain subsidiary borrowers, the lenders from time to
time party thereto and Wells Fargo, National Association, as Agent,
and (iii) our 3.875% Senior Unsecured Notes due 2028; our ability
to maintain adequate internal control over financial reporting and
to prepare accurate financial statements in a timely manner; our
ability to maintain sufficient cash flow from our operations to pay
our substantial debt, now and in the future; our ability to invest
in our business operations as a result of our current indebtedness;
the procurement of our product candidates by USG entities under
regulatory authorities that permit government procurement of
certain medical products prior to FDA marketing authorization, and
corresponding procurement by government entities outside the United
States; our ability to realize the expected benefits of the sale of
our travel health business to Bavarian Nordic, the sale of our Drug
Product facility in Baltimore-Camden to Bora Pharmaceuticals
Injectables Inc., a subsidiary of Bora Pharmaceuticals Co., Ltd.
and the sale of RSDL® to SERB Pharmaceuticals; the impact of the
organizational changes we announced in January 2023, August 2023,
May 2024 and August 2024; our ability to identify and acquire
companies, businesses, products or product candidates that satisfy
our selection criteria; the impact of cybersecurity incidents,
including the risks from the unauthorized access, interruption,
failure or compromise of our information systems or those of our
business partners, collaborators or other third parties; the
success of our commercialization, marketing and manufacturing
capabilities and strategy; and the accuracy of our estimates
regarding future revenues, expenses, capital requirements and need
for additional financing. The foregoing sets forth many, but not
all, of the factors that could cause actual results to differ from
our expectations in any forward-looking statement. Readers should
consider this cautionary statement, as well as the risks identified
in our periodic reports filed with the Securities and Exchange
Commission, when evaluating our forward-looking statements.
Trademarks
Emergent®, BioThrax®, BaciThrax®, BAT®,
Trobigard®, Anthrasil®, CNJ-016®, ACAM2000®, NARCAN®, CYFENDUS®,
TEMBEXA® and any and all Emergent BioSolutions Inc. brands,
products, services and feature names, logos and slogans are
trademarks or registered trademarks of Emergent BioSolutions Inc.
or its subsidiaries in the United States or other countries. All
other brands, products, services and feature names or trademarks
are the property of their respective owners, including RSDL®
(Reactive Skin Decontamination Lotion), which was acquired by SERB
on July 31, 2024.
|
Investor ContactRich LindahlExecutive Vice
President, Chief Financial Officerlindahlr@ebsi.com |
Media ContactAssal HellmerVice President,
Communicationsmediarelations@ebsi.com |
|
Emergent BioSolutions Inc. |
|
Consolidated Balance Sheets |
|
(unaudited, in millions, except per share
data) |
| |
| |
|
December 31, |
|
December 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
99.5 |
|
|
$ |
111.7 |
|
|
Restricted cash |
|
|
6.1 |
|
|
|
— |
|
|
Accounts receivable, net |
|
|
154.5 |
|
|
|
191.0 |
|
|
Inventories, net |
|
|
311.7 |
|
|
|
328.9 |
|
|
Prepaid expenses and other current assets |
|
|
26.9 |
|
|
|
47.9 |
|
|
Total current assets |
|
|
598.7 |
|
|
|
679.5 |
|
| |
|
|
|
|
|
Property, plant and equipment, net |
|
|
270.6 |
|
|
|
382.8 |
|
|
Intangible assets, net |
|
|
501.5 |
|
|
|
566.6 |
|
|
Other assets |
|
|
18.9 |
|
|
|
194.3 |
|
|
Total assets |
|
$ |
1,389.7 |
|
|
$ |
1,823.2 |
|
| |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
60.9 |
|
|
$ |
112.2 |
|
|
Accrued expenses |
|
|
17.7 |
|
|
|
18.6 |
|
|
Accrued compensation |
|
|
56.1 |
|
|
|
74.1 |
|
|
Debt, current portion |
|
|
— |
|
|
|
413.7 |
|
|
Other current liabilities |
|
|
27.7 |
|
|
|
32.7 |
|
|
Total current liabilities |
|
|
162.4 |
|
|
|
651.3 |
|
| |
|
|
|
|
|
Debt, net of current portion |
|
|
663.7 |
|
|
|
446.5 |
|
|
Deferred tax liability |
|
|
41.7 |
|
|
|
47.2 |
|
|
Other liabilities |
|
|
39.1 |
|
|
|
28.9 |
|
|
Total liabilities |
|
$ |
906.9 |
|
|
$ |
1,173.9 |
|
| |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Preferred stock, $0.001 par value per share; 15.0 shares
authorized, no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
|
Common stock, $0.001 par value per share; 200.0 shares authorized,
59.9 and 57.8 shares issued; 54.3 and 52.2 shares outstanding,
respectively. |
|
|
0.1 |
|
|
|
0.1 |
|
|
Treasury stock, at cost, 5.6 and 5.6 common shares,
respectively |
|
|
(227.7 |
) |
|
|
(227.7 |
) |
|
Additional paid-in capital |
|
|
928.0 |
|
|
|
904.4 |
|
|
Accumulated other comprehensive loss, net |
|
|
(5.2 |
) |
|
|
(5.7 |
) |
|
Accumulated deficit |
|
|
(212.4 |
) |
|
|
(21.8 |
) |
|
Total stockholders’ equity |
|
$ |
482.8 |
|
|
$ |
649.3 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
1,389.7 |
|
|
$ |
1,823.2 |
|
|
Emergent BioSolutions Inc. |
|
Consolidated Statements of Operations |
|
(unaudited, in millions, except per share
data) |
| |
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Commercial Product sales |
|
$ |
65.1 |
|
|
$ |
111.0 |
|
|
$ |
398.9 |
|
|
$ |
497.3 |
|
|
MCM Product sales |
|
|
116.8 |
|
|
|
138.1 |
|
|
|
509.8 |
|
|
|
447.2 |
|
|
Total Product sales, net |
|
|
181.9 |
|
|
|
249.1 |
|
|
|
908.7 |
|
|
|
944.5 |
|
|
Bioservices: |
|
|
|
|
|
|
|
|
|
Services |
|
|
6.8 |
|
|
|
20.6 |
|
|
|
103.5 |
|
|
|
72.8 |
|
|
Leases |
|
|
0.6 |
|
|
|
0.2 |
|
|
|
1.4 |
|
|
|
5.7 |
|
|
Total Bioservices revenues |
|
|
7.4 |
|
|
|
20.8 |
|
|
|
104.9 |
|
|
|
78.5 |
|
|
Contracts and grants |
|
|
5.4 |
|
|
|
6.7 |
|
|
|
30.0 |
|
|
|
26.3 |
|
|
Total revenues |
|
|
194.7 |
|
|
|
276.6 |
|
|
|
1,043.6 |
|
|
|
1,049.3 |
|
| |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Cost of Commercial Product sales(1) |
|
|
33.2 |
|
|
|
50.1 |
|
|
|
185.9 |
|
|
|
210.3 |
|
|
Cost of MCM Product sales(1) |
|
|
72.1 |
|
|
|
97.2 |
|
|
|
219.4 |
|
|
|
305.6 |
|
|
Cost of Bioservices(1) |
|
|
12.7 |
|
|
|
37.8 |
|
|
|
276.0 |
|
|
|
189.5 |
|
|
Research and development |
|
|
9.1 |
|
|
|
29.4 |
|
|
|
70.7 |
|
|
|
111.4 |
|
|
Selling, general and administrative |
|
|
60.8 |
|
|
|
89.7 |
|
|
|
308.0 |
|
|
|
368.4 |
|
|
Amortization of intangible assets |
|
|
16.3 |
|
|
|
16.2 |
|
|
|
65.1 |
|
|
|
65.6 |
|
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
218.2 |
|
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
27.2 |
|
|
|
306.7 |
|
|
Total operating expenses |
|
|
204.2 |
|
|
|
320.4 |
|
|
|
1,152.3 |
|
|
|
1,775.7 |
|
| |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(9.5 |
) |
|
|
(43.8 |
) |
|
|
(108.7 |
) |
|
|
(726.4 |
) |
| |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(14.8 |
) |
|
|
(21.7 |
) |
|
|
(71.0 |
) |
|
|
(87.9 |
) |
|
Gain on sale of business |
|
|
— |
|
|
|
— |
|
|
|
24.3 |
|
|
|
74.2 |
|
|
Other, net |
|
|
(3.3 |
) |
|
|
11.0 |
|
|
|
12.5 |
|
|
|
8.9 |
|
|
Total other income (expense), net |
|
|
(18.1 |
) |
|
|
(10.7 |
) |
|
|
(34.2 |
) |
|
|
(4.8 |
) |
| |
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(27.6 |
) |
|
|
(54.5 |
) |
|
|
(142.9 |
) |
|
|
(731.2 |
) |
|
Income tax provision (benefit) |
|
|
3.7 |
|
|
|
(5.0 |
) |
|
|
47.7 |
|
|
|
29.3 |
|
|
Net loss |
|
$ |
(31.3 |
) |
|
$ |
(49.5 |
) |
|
$ |
(190.6 |
) |
|
$ |
(760.5 |
) |
| |
|
|
|
|
|
|
|
|
|
Loss per common share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.58 |
) |
|
$ |
(0.95 |
) |
|
$ |
(3.60 |
) |
|
$ |
(14.85 |
) |
|
Diluted |
|
$ |
(0.58 |
) |
|
$ |
(0.95 |
) |
|
$ |
(3.60 |
) |
|
$ |
(14.85 |
) |
| |
|
|
|
|
|
|
|
|
|
Shares used in computing loss per common
share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
54.2 |
|
|
|
51.9 |
|
|
|
53.0 |
|
|
|
51.2 |
|
|
Diluted |
|
|
54.2 |
|
|
|
51.9 |
|
|
|
53.0 |
|
|
|
51.2 |
|
| |
|
|
|
|
|
|
|
|
|
(1) Excludes intangible assets amortization |
|
Emergent BioSolutions Inc. |
|
Consolidated Statements of Cash Flows |
|
(unaudited, in millions) |
| |
| |
|
Year Ended December 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating Activities |
|
|
|
|
|
Net loss |
|
$ |
(190.6 |
) |
|
$ |
(760.5 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
Share-based compensation expense |
|
|
18.0 |
|
|
|
23.1 |
|
|
Depreciation and amortization |
|
|
108.8 |
|
|
|
125.1 |
|
|
Change in fair value of contingent obligations, net |
|
|
0.6 |
|
|
|
0.2 |
|
|
Amortization of deferred financing costs |
|
|
7.4 |
|
|
|
21.3 |
|
|
Deferred income taxes |
|
|
(5.5 |
) |
|
|
(8.9 |
) |
|
Noncash gain on sale of business |
|
|
(32.2 |
) |
|
|
(74.2 |
) |
|
Change in fair value of warrant and forward liabilities |
|
|
1.1 |
|
|
|
— |
|
|
Goodwill impairment |
|
|
— |
|
|
|
218.2 |
|
|
Impairment of long-lived assets |
|
|
27.2 |
|
|
|
306.7 |
|
|
Loss on disposal of assets |
|
|
28.7 |
|
|
|
21.1 |
|
|
Other |
|
|
6.5 |
|
|
|
(8.1 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
|
(24.4 |
) |
|
|
(21.6 |
) |
|
Inventories |
|
|
(24.5 |
) |
|
|
0.6 |
|
|
Prepaid expenses and other assets |
|
|
169.9 |
|
|
|
11.7 |
|
|
Accounts payable |
|
|
(33.0 |
) |
|
|
10.6 |
|
|
Accrued expenses and other liabilities |
|
|
12.3 |
|
|
|
(55.7 |
) |
|
Long-term incentive plan accrual |
|
|
3.6 |
|
|
|
4.8 |
|
|
Accrued compensation |
|
|
(18.2 |
) |
|
|
(10.4 |
) |
|
Income taxes receivable and payable, net |
|
|
23.3 |
|
|
|
(16.2 |
) |
|
Contract liabilities |
|
|
(20.3 |
) |
|
|
5.9 |
|
|
Net cash provided by (used in) operating
activities |
|
|
58.7 |
|
|
|
(206.3 |
) |
|
Investing Activities |
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(22.9 |
) |
|
|
(51.6 |
) |
|
Proceeds from sale of property, plant and equipment |
|
|
7.9 |
|
|
|
— |
|
|
Milestone payments from prior asset divestiture (acquisition) |
|
|
30.0 |
|
|
|
(6.3 |
) |
|
Proceeds from sale of business |
|
|
110.2 |
|
|
|
270.2 |
|
|
Net cash provided by investing activities |
|
|
125.2 |
|
|
|
212.3 |
|
|
Financing Activities |
|
|
|
|
|
Proceeds from the issuance of debt, net of lender fees |
|
|
219.0 |
|
|
|
— |
|
|
Proceeds allocated to warrants issued in conjunction with debt |
|
|
13.4 |
|
|
|
— |
|
|
Proceeds allocated to common stock issued in conjunction with
debt |
|
|
9.3 |
|
|
|
— |
|
|
Proceeds from revolving credit facility |
|
|
65.0 |
|
|
|
20.0 |
|
|
Principal payments on revolving credit facility |
|
|
(284.2 |
) |
|
|
(398.8 |
) |
|
Principal payments on term loan facility |
|
|
(198.2 |
) |
|
|
(164.6 |
) |
|
Debt issuance costs |
|
|
(14.6 |
) |
|
|
— |
|
|
Proceeds from share-based compensation activity |
|
|
1.5 |
|
|
|
1.8 |
|
|
Taxes paid for share-based compensation activity |
|
|
(1.2 |
) |
|
|
(2.5 |
) |
|
Proceeds from at-the-market sale of stock, net of commissions and
expenses |
|
|
— |
|
|
|
8.4 |
|
|
Net cash used in financing activities: |
|
|
(190.0 |
) |
|
|
(535.7 |
) |
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
— |
|
|
|
(1.2 |
) |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(6.1 |
) |
|
|
(530.9 |
) |
|
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
111.7 |
|
|
|
642.6 |
|
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
105.6 |
|
|
$ |
111.7 |
|
|
Supplemental cash flow disclosures: |
|
|
|
|
|
Cash paid for interest |
|
$ |
64.0 |
|
|
$ |
68.3 |
|
|
Cash paid for income taxes, net of refunds |
|
$ |
26.5 |
|
|
$ |
52.8 |
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
Purchases of property, plant and equipment unpaid at period
end |
|
$ |
1.9 |
|
|
$ |
5.7 |
|
|
Gain on extinguishments of debt |
|
$ |
0.6 |
|
|
$ |
2.5 |
|
|
Issuance of common stock in conjunction with debt |
|
$ |
7.7 |
|
|
$ |
— |
|
|
Reconciliation of cash and cash equivalents and restricted
cash: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
99.5 |
|
|
$ |
111.7 |
|
|
Restricted cash |
|
|
6.1 |
|
|
|
— |
|
|
Total |
|
$ |
105.6 |
|
|
$ |
111.7 |
|
|
Emergent BioSolutions, Inc. |
|
Reconciliation of Non-GAAP Financial Measures |
|
Reconciliation of Net Loss and Net Loss per Diluted Share
to Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per
Diluted Share(1) |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
($ in millions, except per share data) |
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
Source |
|
Net loss |
|
$ |
(31.3 |
) |
$ |
(49.5 |
) |
|
$ |
(190.6 |
) |
$ |
(760.5 |
) |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Non-cash amortization charges |
|
$ |
18.5 |
|
$ |
22.0 |
|
|
$ |
72.5 |
|
$ |
86.8 |
|
|
Amortization of intangible assets (IA), Other Income |
|
Impairments |
|
|
— |
|
|
— |
|
|
|
27.2 |
|
|
524.9 |
|
|
Impairment of long-lived assets and goodwill |
|
Severance and restructuring costs |
|
|
(0.4 |
) |
|
(1.1 |
) |
|
|
22.5 |
|
|
33.4 |
|
|
Cost of MCM Products, Cost of Services, SG&A and R&D |
|
Inventory step-up provision |
|
|
5.0 |
|
|
2.0 |
|
|
|
6.2 |
|
|
3.9 |
|
|
Cost of MCM Products |
|
Acquisition and divestiture costs |
|
|
— |
|
|
1.9 |
|
|
|
— |
|
|
4.7 |
|
|
SG&A |
|
Exit and disposal costs |
|
|
— |
|
|
6.4 |
|
|
|
13.3 |
|
|
12.5 |
|
|
R&D |
|
Gain on sale of business |
|
|
— |
|
|
— |
|
|
|
(24.3 |
) |
|
(74.2 |
) |
|
Other Income (Expense) |
|
Settlement charges, net |
|
|
1.5 |
|
|
— |
|
|
|
121.7 |
|
|
— |
|
|
Cost of Services and SG&A |
|
Contingent consideration milestones |
|
|
— |
|
|
— |
|
|
|
(30.0 |
) |
|
— |
|
|
Other Income (Expense) |
|
Changes in fair value of financial instruments |
|
|
2.3 |
|
|
0.6 |
|
|
|
1.8 |
|
|
0.2 |
|
|
Cost of MCM Products and Other Income (Expense) |
|
Other expense (income), net items |
|
|
— |
|
|
(2.5 |
) |
|
|
9.8 |
|
|
(2.5 |
) |
|
Other Income (Expense) |
|
Tax effect |
|
|
7.0 |
|
|
(19.8 |
) |
|
|
(42.2 |
) |
|
(148.2 |
) |
|
|
|
Total adjustments: |
|
$ |
33.9 |
|
$ |
9.5 |
|
|
$ |
178.5 |
|
$ |
441.5 |
|
|
|
|
Adjusted net income (loss) |
|
$ |
2.6 |
|
$ |
(40.0 |
) |
|
$ |
(12.1 |
) |
$ |
(319.0 |
) |
|
|
|
Net loss per diluted share |
|
$ |
(0.58 |
) |
$ |
(0.95 |
) |
|
$ |
(3.60 |
) |
$ |
(14.85 |
) |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Non-cash amortization charges |
|
$ |
0.34 |
|
$ |
0.42 |
|
|
$ |
1.37 |
|
$ |
1.70 |
|
|
Amortization of IA, Other Income (Expense) |
|
Impairments |
|
|
— |
|
|
— |
|
|
|
0.51 |
|
|
10.25 |
|
|
Impairment of long-lived assets |
|
Severance and restructuring costs |
|
|
(0.01 |
) |
|
(0.02 |
) |
|
|
0.42 |
|
|
0.65 |
|
|
Cost of MCM Products, Cost of Services, SG&A and R&D |
|
Inventory step-up provision |
|
|
0.09 |
|
|
0.04 |
|
|
|
0.12 |
|
|
0.08 |
|
|
Cost of MCM Products |
|
Acquisition and divestiture costs |
|
|
— |
|
|
0.04 |
|
|
|
— |
|
|
0.09 |
|
|
SG&A |
|
Exit and disposal costs |
|
|
— |
|
|
0.12 |
|
|
|
0.25 |
|
|
0.24 |
|
|
R&D |
|
Gain on sale of business |
|
|
— |
|
|
— |
|
|
|
(0.46 |
) |
|
(1.45 |
) |
|
Other Income (Expense) |
|
Settlement charges, net |
|
|
0.03 |
|
|
— |
|
|
|
2.30 |
|
|
— |
|
|
Cost of Services and SG&A |
|
Contingent consideration milestones |
|
|
— |
|
|
— |
|
|
|
(0.57 |
) |
|
— |
|
|
Other Income (Expense) |
|
Changes in fair value of financial instruments |
|
|
0.04 |
|
|
0.01 |
|
|
|
0.03 |
|
|
— |
|
|
Cost of MCM Products and Other Income (Expense) |
|
Other expense (income), net items |
|
|
— |
|
|
(0.05 |
) |
|
|
0.19 |
|
|
(0.05 |
) |
|
Other Income (Expense) |
|
Tax effect |
|
|
0.14 |
|
|
(0.38 |
) |
|
|
(0.79 |
) |
|
(2.89 |
) |
|
|
|
Total adjustments: |
|
$ |
0.63 |
|
$ |
0.18 |
|
|
$ |
3.37 |
|
$ |
8.62 |
|
|
|
|
Adjusted net income (loss) per diluted share |
|
$ |
0.05 |
|
$ |
(0.77 |
) |
|
$ |
(0.23 |
) |
$ |
(6.23 |
) |
|
|
| Diluted shares used in
computing Adjusted net income (loss) per diluted share |
|
|
54.2 |
|
|
51.9 |
|
|
|
53.0 |
|
|
51.2 |
|
|
|
|
Emergent BioSolutions, Inc. |
|
Reconciliation of Net Loss to Adjusted
EBITDA(1) |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
($ in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net loss |
|
$ |
(31.3 |
) |
|
$ |
(49.5 |
) |
|
$ |
(190.6 |
) |
|
$ |
(760.5 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation & amortization |
|
$ |
26.0 |
|
|
$ |
29.6 |
|
|
$ |
108.8 |
|
|
$ |
125.1 |
|
|
Income taxes |
|
|
3.7 |
|
|
|
(5.0 |
) |
|
|
47.7 |
|
|
|
29.3 |
|
|
Total interest expense, net |
|
|
14.2 |
|
|
|
21.0 |
|
|
|
69.0 |
|
|
|
80.9 |
|
|
Impairments |
|
|
— |
|
|
|
— |
|
|
|
27.2 |
|
|
|
524.9 |
|
|
Inventory step-up provision |
|
|
5.0 |
|
|
|
2.0 |
|
|
|
6.2 |
|
|
|
3.9 |
|
|
Changes in fair value of financial instruments |
|
|
2.3 |
|
|
|
0.6 |
|
|
|
1.8 |
|
|
|
0.2 |
|
|
Severance and restructuring costs |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
|
|
22.5 |
|
|
|
33.4 |
|
|
Exit and disposal costs |
|
|
— |
|
|
|
6.4 |
|
|
|
13.3 |
|
|
|
12.5 |
|
|
Acquisition and divestiture costs |
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
4.7 |
|
|
Gain on sale of business |
|
|
— |
|
|
|
— |
|
|
|
(24.3 |
) |
|
|
(74.2 |
) |
|
Settlement charges, net |
|
|
1.5 |
|
|
|
— |
|
|
|
121.7 |
|
|
|
— |
|
|
Contingent consideration milestones |
|
|
— |
|
|
|
— |
|
|
|
(30.0 |
) |
|
|
— |
|
|
Other expense (income), net items |
|
|
— |
|
|
|
(2.5 |
) |
|
|
9.8 |
|
|
|
(2.5 |
) |
|
Total adjustments |
|
$ |
52.3 |
|
|
$ |
52.9 |
|
|
$ |
373.7 |
|
|
$ |
738.2 |
|
|
Adjusted EBITDA |
|
$ |
21.0 |
|
|
$ |
3.4 |
|
|
$ |
183.1 |
|
|
$ |
(22.3 |
) |
|
Emergent BioSolutions, Inc. |
|
Reconciliations of Total Revenues to Total Segment Revenues
and of Segment and Total Segment Gross Margin and Gross Margin
% |
|
to Segment and Total Segment Adjusted Gross Margin and
Adjusted Gross Margin %(1) |
|
|
|
Three Months Ended December 31, 2024(unaudited, in
millions) |
|
Commercial Products |
MCM Products |
Services |
|
Total Segment |
Contracts & Grants |
Total Revenues |
|
Revenues |
|
$ |
65.1 |
|
$ |
116.8 |
|
$ |
7.4 |
|
|
$ |
189.3 |
|
$ |
5.4 |
|
$ |
194.7 |
|
| |
|
|
|
|
|
|
|
|
|
Cost of sales or services |
|
|
33.2 |
|
|
72.1 |
|
|
12.7 |
|
|
|
118.0 |
|
|
|
|
Amortization of intangible assets |
|
|
9.5 |
|
|
6.8 |
|
|
— |
|
|
|
16.3 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
Gross margin |
|
$ |
22.4 |
|
$ |
37.9 |
|
$ |
(5.3 |
) |
|
$ |
55.0 |
|
|
|
|
Gross margin % |
|
|
34 |
% |
|
32 |
% |
|
(72 |
)% |
|
|
29 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
$ |
9.5 |
|
$ |
6.8 |
|
$ |
— |
|
|
$ |
16.3 |
|
|
|
|
Inventory step-up provision |
|
|
— |
|
|
5.0 |
|
|
— |
|
|
|
5.0 |
|
|
|
|
Restructuring costs |
|
|
— |
|
|
(0.3 |
) |
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
Adjusted gross margin |
|
$ |
31.9 |
|
$ |
49.4 |
|
$ |
(5.4 |
) |
|
$ |
75.9 |
|
|
|
|
Adjusted gross margin % |
|
|
49 |
% |
|
42 |
% |
|
(73 |
)% |
|
|
40 |
% |
|
|
|
Three Months Ended December 31,
2023(unaudited, in millions) |
|
Commercial Products |
MCM Products |
Services |
|
Total Segment |
Contracts & Grants |
Total Revenues |
|
Revenues |
|
$ |
111.0 |
|
$ |
138.1 |
|
$ |
20.8 |
|
|
$ |
269.9 |
|
$ |
6.7 |
|
$ |
276.6 |
|
| |
|
|
|
|
|
|
|
|
|
Cost of sales or services |
|
|
50.1 |
|
|
97.2 |
|
|
37.8 |
|
|
|
185.1 |
|
|
|
|
Amortization of intangible assets |
|
|
9.4 |
|
|
6.8 |
|
|
— |
|
|
|
16.2 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
Gross margin |
|
$ |
51.5 |
|
$ |
34.1 |
|
$ |
(17.0 |
) |
|
$ |
68.6 |
|
|
|
|
Gross margin % |
|
|
46 |
% |
|
25 |
% |
|
(82 |
)% |
|
|
25 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
$ |
9.4 |
|
$ |
6.8 |
|
$ |
— |
|
|
$ |
16.2 |
|
|
|
|
Changes in fair value of financial instruments |
|
|
— |
|
|
0.6 |
|
|
— |
|
|
|
0.6 |
|
|
|
|
Inventory step-up provision |
|
|
— |
|
|
2.0 |
|
|
— |
|
|
|
2.0 |
|
|
|
|
Restructuring costs |
|
|
— |
|
|
(1.4 |
) |
|
0.3 |
|
|
|
(1.1 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
Adjusted gross margin |
|
$ |
60.9 |
|
$ |
42.1 |
|
$ |
(16.7 |
) |
|
$ |
86.3 |
|
|
|
|
Adjusted gross margin % |
|
|
55 |
% |
|
30 |
% |
|
(80 |
)% |
|
|
32 |
% |
|
|
|
Emergent BioSolutions, Inc. |
|
Reconciliations of Total Revenues to Total Segment Revenues
and of Segment and Total Segment Gross Margin and Gross Margin % to
Segment and Total Segment Adjusted Gross Margin and Adjusted Gross
Margin %(1) |
|
|
|
Year Ended December 31, 2024(unaudited, in
millions) |
|
Commercial Products |
MCM Products |
Services¹ |
|
Total Segment |
Contracts & Grants |
Total Revenues |
|
Revenues |
|
$ |
398.9 |
|
$ |
509.8 |
|
$ |
104.9 |
|
|
$ |
1,013.6 |
|
$ |
30.0 |
|
$ |
1,043.6 |
|
| |
|
|
|
|
|
|
|
|
|
Cost of sales or services |
|
|
185.9 |
|
|
219.4 |
|
|
276.0 |
|
|
|
681.3 |
|
|
|
|
Amortization of intangible assets |
|
|
37.8 |
|
|
27.3 |
|
|
— |
|
|
|
65.1 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
Gross margin |
|
$ |
175.2 |
|
$ |
263.1 |
|
$ |
(171.1 |
) |
|
$ |
267.2 |
|
|
|
|
Gross margin % |
|
|
44 |
% |
|
52 |
% |
|
(163 |
)% |
|
|
26 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
$ |
37.8 |
|
$ |
27.3 |
|
$ |
— |
|
|
$ |
65.1 |
|
|
|
|
Changes in fair value of financial instruments |
|
|
— |
|
|
0.6 |
|
|
— |
|
|
|
0.6 |
|
|
|
|
Inventory step-up provision |
|
|
— |
|
|
6.2 |
|
|
— |
|
|
|
6.2 |
|
|
|
|
Settlement charges, net |
|
|
— |
|
|
— |
|
|
110.2 |
|
|
|
110.2 |
|
|
|
|
Restructuring costs |
|
|
— |
|
|
7.2 |
|
|
0.2 |
|
|
|
7.4 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
Adjusted gross margin |
|
$ |
213.0 |
|
$ |
304.4 |
|
$ |
(60.7 |
) |
|
$ |
456.7 |
|
|
|
|
Adjusted gross margin %(1) |
|
|
53 |
% |
|
60 |
% |
|
(58 |
)% |
|
|
45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total Segment results for the year ended December 31, 2024
includes $50.0 million attributable to the Settlement
Agreement with Janssen. The revenue and cost of services is related
to raw materials purchased for the Janssen Agreement which Janssen
had not reimbursed. Excluding the impacts of the Settlement
Agreement, Total Segment Adjusted Gross Margin % would have been 2%
higher for the year ended December 31, 2024. |
|
Emergent BioSolutions, Inc. |
|
Reconciliations of Total Revenues to Total Segment Revenues
and of Segment and Total Segment Gross Margin and Gross Margin % to
Segment and Total Segment Adjusted Gross Margin and Adjusted Gross
Margin %(1) |
|
|
|
Year Ended December 31, 2023(in millions) |
|
Commercial Products |
MCM Products |
Services |
|
Total Segment |
Contracts & Grants |
Total Revenues |
|
Revenues |
|
$ |
497.3 |
|
$ |
447.2 |
|
$ |
78.5 |
|
|
$ |
1,023.0 |
|
$ |
26.3 |
|
$ |
1,049.3 |
|
| |
|
|
|
|
|
|
|
|
|
Cost of sales or services |
|
|
210.3 |
|
|
305.6 |
|
|
189.5 |
|
|
|
705.4 |
|
|
|
|
Intangible asset amortization |
|
|
38.6 |
|
|
27.0 |
|
|
— |
|
|
|
65.6 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
Gross margin |
|
$ |
248.4 |
|
$ |
114.6 |
|
$ |
(111.0 |
) |
|
$ |
252.0 |
|
|
|
|
Gross margin % |
|
|
50 |
% |
|
26 |
% |
|
(141 |
)% |
|
|
25 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
$ |
38.6 |
|
$ |
27.0 |
|
$ |
— |
|
|
$ |
65.6 |
|
|
|
|
Changes in fair value of financial instruments |
|
|
— |
|
|
0.2 |
|
|
— |
|
|
|
0.2 |
|
|
|
|
Inventory step-up provision |
|
|
— |
|
|
3.9 |
|
|
— |
|
|
|
3.9 |
|
|
|
|
Restructuring costs |
|
|
— |
|
|
5.6 |
|
|
8.4 |
|
|
|
14.0 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
Adjusted gross margin |
|
$ |
287.0 |
|
$ |
151.3 |
|
$ |
(102.6 |
) |
|
$ |
335.7 |
|
|
|
|
Adjusted gross margin % |
|
|
58 |
% |
|
34 |
% |
|
(131 |
)% |
|
|
33 |
% |
|
|
|
Emergent BioSolutions, Inc. |
|
Reconciliation of Net Income Forecast to Adjusted Net
Income Forecast |
|
|
|
($ in millions) |
|
2025 Full Year Forecast |
|
Source |
|
Net income |
|
$16 - $66 |
|
|
|
Adjustments: |
|
|
|
|
|
Non-cash amortization charges |
|
$65 |
|
Amortization of intangible assets and Other Income (Expense) |
|
Inventory step-up provision |
|
5 |
|
Cost of MCM Products |
|
Settlement charges, net |
|
(10) |
|
Cost of Services and SG&A |
|
Contingent consideration milestones |
|
(50) |
|
Other Income (Expense) |
|
Tax effect |
|
(6) |
|
|
|
Total adjustments: |
|
$4 |
|
|
|
Adjusted net income |
|
$20 - $70 |
|
|
|
Reconciliation of Net Income Forecast to Adjusted EBITDA
Forecast |
|
|
|
($ in millions) |
2025 Full Year Forecast |
|
Net income |
$16 - $66 |
|
Adjustments: |
|
|
Depreciation & amortization |
$100 |
|
Income taxes |
34 |
|
Total interest expense, net |
55 |
|
Inventory step-up provision |
5 |
|
Settlement charges, net |
(10) |
|
Contingent consideration milestones |
(50) |
|
Total adjustments |
$134 |
|
Adjusted EBITDA |
$150 - $200 |
|
Emergent BioSolutions, Inc. |
|
Reconciliations of Forecasted Total Revenues to Forecasted
Total Segment Revenues and of Forecasted Segment and Total Segment
Gross Margin and Gross Margin % to Forecasted Segment and Total
Segment Adjusted Gross Margin and Adjusted Gross Margin
%(1) |
|
|
|
($ in millions) |
2025 Full Year Forecast |
|
Total revenues |
$750 - $850 |
|
Contracts & Grants |
(25) - (30) |
|
Total segment revenues |
$725 - $820 |
| |
|
|
Cost of sales or services |
$447- $474 |
|
Total segment gross margin |
$278 - $351 |
|
Total segment gross margin % |
38% - 43% |
|
Add back: |
|
|
Intangible asset amortization |
$60 |
|
Inventory step-up provision |
5 |
|
Total segment adjusted gross margin |
$348 - $421 |
|
Total segment adjusted gross margin % |
48% - 51% |
Emergent Biosolutions (NYSE:EBS)
Graphique Historique de l'Action
De Fév 2025 à Mar 2025
Emergent Biosolutions (NYSE:EBS)
Graphique Historique de l'Action
De Mar 2024 à Mar 2025
