BioLife Solutions Reports Third Quarter 2023 Financial Results
- Strong ex-COVID growth of 50% in biostorage services platform.
- Expectations for 2023 total revenue include platform contributions of approximately $65 million for the Cell Processing platform, $26 million for the Biostorage and Services platform, and $53 million for the Freezers and Thaw Systems platform.
- Cash, cash equivalents, and marketable securities as of September 30, 2023, were $42.2 million.
- Total revenue for the third quarter of 2023 was $33.3 million, a decrease of $7.4 million, or 18%, from $40.7 million for the third quarter of 2022.
- Adjusted EBITDA for the third quarter of 2023 was negative $3.1 million compared with positive $1.8 million for the third quarter of 2022.
- BioLife Solutions continues to expect its full year 2023 revenue to be at the low end of the guidance range, reflecting a year-over-year decrease of 11%.
Conference call begins at 4:30 p.m. Eastern time today
"It's been a few short weeks since rejoining the Company, and while it's a dynamic time in our industry, it's clear there are remarkable opportunities ahead for BioLife to adapt and innovate as a leading provider of cell processing tools and biostorage services," said Roderick de Greef, Chairman and CEO. "Results for the third quarter, which contained no COVID related revenue, were in line with our expectations, and while our cell processing platform was reflective of current industry wide headwinds, our biostorage services platform exhibited strong ex-COVID growth of
de Greef continued, "Looking beyond this year, we fundamentally believe BioLife is exceptionally well positioned to benefit from the growth drivers underlying the still nascent CGT industry in the medium to longer term. Currently, our biopreservation media is embedded in 5 of 6 approved CAR-T therapies and 11 relevant approved cell and cell-based gene therapies, and is utilized in hundreds of active clinical trials globally. In addition, our other cell processing tools and biostorage services are used in 10 approved cell and gene therapies globally, as well as being incorporated in well over 100 clinical trials. We are working expeditiously on the divestiture of the freezer operations with multiple interested parties, and we expect to bring this process to a conclusion in early 2024. Upon completion, the Company's streamlined financial profile will benefit immediately from the operating leverage provided by the high margin, recurring biopreservation media revenue."
Third Quarter 2023 Business Highlights
- Processed 20 new US FDA Master File cross references for our biopreservation media, bringing the total processed in 2023 to 60.
- Reduced non-freezer operations related headcount by
10% in order to better position the Company for profitability post the freezer divestitures.
- Post-quarter end management changes including the appointment of Roderick de Greef as Chairman and Chief Executive Officer and Garrie Richardson as Chief Revenue Officer.
Third Quarter 2023 Financial Performance
BioLife Solutions is presenting various financial metrics under
REVENUE
- Total revenue for the third quarter of 2023 was
$33.3 million $7.4 million 18% , from$40.7 million 10% .
- Cell Processing platform revenue was
$13.3 million $4.7 million 26% , over the same period in 2022.
- Cell Processing platform revenue was
- Biostorage and Services platform revenue was
$6.6 million $0.7 million 10% , over the same period in 2022. Ex-COVID related revenue growth was$2.2 million 50% , over the same period in 2022.
- Biostorage and Services platform revenue was
- Freezers and Thaw Systems platform revenue was
$13.4 million $2.0 million 13% , over the same period in 2022. Ex-COVID related revenue was down$1.3 million 9% , over the same period in 2022.
- Freezers and Thaw Systems platform revenue was
GROSS MARGIN
- Gross margin (GAAP) for the third quarter of 2023 was
33% compared with31% for the third quarter of 2022. Adjusted gross margin (non-GAAP) for the third quarter of 2023 was30% compared with34% for the third quarter of 2022.
OPERATING LOSS
- Operating loss (GAAP) for the third quarter of 2023 was
$28.8 million $15.5 million $11.7 million $14.4 million $7.0 million
NET LOSS
- Net loss (GAAP) for the third quarter of 2023 was
$29.1 million $15.5 million $10.3 million $14.6 million $6.9 million
LOSS PER SHARE
- Loss per share (GAAP) for the third quarter of 2023 was
$0.67 $0.24
ADJUSTED EBITDA
- Adjusted EBITDA, a non-GAAP measure, for the third quarter of 2023 was negative
$3.1 million $1.8 million
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
- Cash, cash equivalents, and marketable securities as of September 30, 2023, were
$42.2 million $10.4 million
2023 Revenue Guidance
BioLife Solutions continues to expect its full year 2023 revenue, which contains no COVID related revenue, at the low end of the previously announced guidance range of
Expectations for 2023 total revenue include the following platform contributions:
- Cell Processing platform: Approximately
$65 million 5% compared to 2022, which assumes flat to modest sequential growth for the cell processing platform in the fourth quarter.
- Biostorage and Services platform: Approximately
$26 million 2% compared to 2022, and excluding COVID-related revenue, year-over-year growth of61% .
- Freezers and Thaw Systems platform: Approximately
$53 million 21% compared to 2022, and excluding COVID-related revenue, a year-over-year decrease of18% .
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. The conference ID number is 5946398. 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 cell processing tools and services for the cell and gene therapy (CGT) and broader biopharma markets. Our expertise facilitates the commercialization of new therapies by supplying solutions that maintain the health and function of biologic materials during the collection, development, storage and distribution. For more information, please visit www.biolifesolutions.com, and follow BioLife on LinkedIn and X.
Cautions Regarding Forward Looking Statements
Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," "designed," and similar words are intended to identify forward-looking statements. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the
Non-GAAP Measures of Financial Performance:
To supplement our financial statements, which are presented on the basis of
We believe these non-GAAP financial measures are useful to investors in assessing our operating performance. We use these financial measures internally to evaluate our operating performance and for planning and forecasting of future periods. We also believe it is in the best interests of investors to provide this non-GAAP information.
While we believe these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Media & Investor Relations | ||
At the Company Troy Wichterman | ||
Chief Financial Officer | ||
(425) 402-1400 | ||
twichterman@biolifesolutions.com |
BIOLIFE SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, amounts in thousands, except share and per share amounts)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
(In thousands, except per share and share data) | 2023 | 2022 | 2023 | 2022 | |||
Product revenue | $ 26,891 | $ 33,668 | $ 91,520 | $ 98,227 | |||
Service revenue | 4,378 | 4,330 | 13,043 | 11,117 | |||
Rental revenue | 2,059 | 2,749 | 5,975 | 8,156 | |||
Total product, rental, and service revenue | 33,328 | 40,747 | 110,538 | 117,500 | |||
Costs and operating expenses: | |||||||
Cost of product, rental, and service revenue (exclusive of Intangible asset amortization) | $ 21,679 | $ 27,009 | $ 73,036 | $ 77,649 | |||
General and administrative | 12,513 | 11,916 | 42,757 | 35,098 | |||
Sales and marketing | 7,256 | 5,278 | 20,045 | 15,601 | |||
Research and development | 5,402 | 3,425 | 14,397 | 10,634 | |||
Asset impairment charges | 15,485 | — | 15,485 | 69,900 | |||
Intangible asset amortization | 1,356 | 2,513 | 4,266 | 8,236 | |||
Change in fair value of contingent consideration | (1,580) | 2,346 | (1,778) | (3,348) | |||
Total operating expenses | 62,111 | 52,487 | 168,208 | 213,770 | |||
Operating loss | (28,783) | (11,740) | (57,670) | (96,270) | |||
Other (expense) income: | |||||||
Change in fair value of investments | — | 697 | — | 697 | |||
Gain on settlement of Global Cooling escrow | — | — | 5,115 | — | |||
Interest expense, net | (476) | (15) | (1,305) | (250) | |||
Other income | 242 | 142 | 1,027 | 270 | |||
Total other (expense) income, net | (234) | 824 | 4,837 | 717 | |||
Loss before income tax (expense) benefit | (29,017) | (10,916) | (52,833) | (95,553) | |||
Income tax (expense) benefit | (115) | 599 | (212) | 4,937 | |||
Net loss | $ (29,132) | $ (10,317) | $ (53,045) | $ (90,616) | |||
Net loss attributable to common shareholders: | |||||||
Basic and Diluted | $ (29,132) | $ (10,317) | $ (53,045) | $ (90,616) | |||
Net loss per share attributable to common shareholders: | |||||||
Basic and Diluted | $ (0.67) | $ (0.24) | $ (1.22) | $ (2.14) | |||
Weighted average shares used to compute loss per share attributable to common shareholders: | |||||||
Basic and Diluted | 43,570,438 | 42,647,967 | 43,348,412 | 42,376,392 | |||
BIOLIFE SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited, amounts in thousands)
| |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||
Net loss | $ (29,132) | $ (10,317) | $ (53,045) | $ (90,616) | |||
Other comprehensive loss | (161) | (357) | 19 | (975) | |||
Comprehensive loss | $ (29,293) | $ (10,674) | $ (53,026) | $ (91,591) | |||
BIOLIFE SOLUTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited, amounts in thousands)
| |||
September 30, | December 31, | ||
(In thousands) | 2023 | 2022 | |
Cash, cash equivalents, and marketable securities | $ 42,216 | $ 64,065 | |
Working capital | 74,202 | 93,870 | |
Current assets | 116,824 | 138,452 | |
Current liabilities | 42,622 | 44,582 | |
Total assets | 411,152 | 450,229 | |
Long-term obligations | 36,513 | 41,459 | |
Accumulated deficit | (299,960) | (246,915) | |
Total shareholders' equity | 332,017 | 364,188 | |
BIOLIFE SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION (Unaudited, amounts in thousands)
| |||
Nine Months Ended | |||
(In thousands) | 2023 | 2022 | |
Net cash used in operating activities | $ (14,809) | $ (16,345) | |
Net cash used in (provided by) investing activities | 13,880 | (43,223) | |
Net cash provided by financing activities | 750 | 16,941 | |
Effects of currency translation | (28) | (176) | |
Net decrease in cash, cash equivalents, and restricted cash | $ (207) | $ (42,803) | |
BIOLIFE SOLUTIONS, INC. RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP ADJUSTED GROSS PROFIT (Unaudited, amounts in thousands)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||
GAAP GROSS PROFIT | $ 10,916 | $ 12,442 | $ 35,303 | $ 36,369 | |||
GAAP GROSS MARGIN | 33 % | 31 % | 32 % | 31 % | |||
ADJUSTMENTS TO GROSS PROFIT: | |||||||
Inventory step-up | — | — | — | 251 | |||
Inventory reserve costs | (1,623) | — | 562 | — | |||
Intangible asset amortization | 733 | 1,296 | 2,199 | 3,482 | |||
ADJUSTED GROSS PROFIT | $ 10,026 | $ 13,738 | $ 38,064 | $ 40,102 | |||
ADJUSTED GROSS MARGIN | 30 % | 34 % | 34 % | 34 % | |||
BIOLIFE SOLUTIONS, INC. RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING EXPENSES (Unaudited, amounts in thousands)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||
GAAP OPERATING EXPENSES | $ 62,111 | $ 52,487 | $ 168,208 | $ 213,770 | |||
ADJUSTMENTS TO OPERATING EXPENSES: | |||||||
Cost of product, rental, and service revenue | (21,679) | (27,009) | (73,036) | (77,649) | |||
Acquisition and divestiture costs | (250) | (1) | (3,226) | (18) | |||
Severance costs | (493) | — | (493) | — | |||
Intangible asset amortization | (1,356) | (2,513) | (4,266) | (8,236) | |||
Loss on disposal of assets | (11) | 169 | (39) | (88) | |||
Change in fair value of contingent consideration | 1,580 | (2,346) | 1,778 | 3,348 | |||
Asset impairment charges | (15,485) | — | (15,485) | (69,900) | |||
ADJUSTED OPERATING EXPENSES | $ 24,417 | $ 20,787 | $ 73,441 | $ 61,227 | |||
BIOLIFE SOLUTIONS, INC. RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP ADJUSTED OPERATING LOSS (Unaudited, amounts in thousands)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||
GAAP OPERATING LOSS | $ (28,783) | $ (11,740) | $ (57,670) | $ (96,270) | |||
ADJUSTMENTS TO GAAP OPERATING LOSS | |||||||
Inventory step-up | — | — | — | 251 | |||
Inventory reserve costs | (1,623) | — | 562 | — | |||
Acquisition and divestiture costs | 250 | 1 | 3,226 | 18 | |||
Severance costs | 493 | — | 493 | — | |||
Intangible asset amortization | 1,356 | 2,513 | 4,266 | 8,236 | |||
Loss on disposal of assets | 11 | (169) | 39 | 88 | |||
Change in fair value of contingent consideration | (1,580) | 2,346 | (1,778) | (3,348) | |||
Asset impairment charges | 15,485 | — | 15,485 | 69,900 | |||
ADJUSTED OPERATING LOSS | $ (14,391) | $ (7,049) | $ (35,377) | $ (21,125) | |||
BIOLIFE SOLUTIONS, INC. RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED NET LOSS (Unaudited, amounts in thousands)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||
GAAP NET LOSS | $ (29,132) | $ (10,317) | $ (53,045) | $ (90,616) | |||
ADJUSTMENTS TO GAAP NET LOSS | |||||||
Inventory step-up | — | — | — | 251 | |||
Inventory reserve costs | (1,623) | — | 562 | — | |||
Acquisition and divestiture costs | 250 | 1 | 3,226 | 18 | |||
Severance costs | 493 | — | 493 | — | |||
Intangible asset amortization | 1,356 | 2,513 | 4,266 | 8,236 | |||
Loss on disposal of assets | 11 | (169) | 39 | 88 | |||
Change in fair value of investments | — | (697) | (697) | ||||
Change in fair value of contingent consideration | (1,580) | 2,346 | (1,778) | (3,348) | |||
Income tax expense / (benefit) | 115 | (599) | 212 | (4,937) | |||
Gain on settlement of Global Cooling escrow | — | — | (5,115) | — | |||
Asset impairment charges | 15,485 | — | 15,485 | 69,900 | |||
ADJUSTED NET LOSS | $ (14,625) | $ (6,922) | $ (35,655) | $ (21,105) | |||
BIOLIFE SOLUTIONS, INC. RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (Unaudited, amounts in thousands)
| |||||||
Three Months Ended | Nine Months Ended | ||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||
GAAP NET LOSS | $ (29,132) | $ (10,317) | $ (53,045) | $ (90,616) | |||
ADJUSTMENTS: | |||||||
Interest expense, net | 476 | 15 | 1,305 | 250 | |||
Income tax expense / (benefit) | 115 | (599) | 212 | (4,937) | |||
Depreciation | 1,924 | 2,406 | 5,658 | 5,045 | |||
Intangible asset amortization | 1,356 | 2,513 | 4,266 | 8,236 | |||
EBITDA | $ (25,261) | $ (5,982) | $ (41,604) | $ (82,022) | |||
OTHER ADJUSTMENTS: | |||||||
Share-based compensation (non-cash) | 9,117 | 6,299 | 23,337 | 17,671 | |||
Inventory step-up | — | — | — | 251 | |||
Inventory reserve costs | (1,623) | — | 562 | — | |||
Acquisition and divestiture costs | 250 | 1 | 3,226 | 18 | |||
Severance costs | 493 | — | 493 | — | |||
Loss on disposal of assets | 11 | (169) | 39 | 88 | |||
Change in fair value of investments | — | (697) | — | (697) | |||
Change in fair value of contingent consideration | (1,580) | 2,346 | (1,778) | (3,348) | |||
Gain on settlement of Global Cooling escrow | — | — | (5,115) | — | |||
Asset impairment charges | 15,485 | — | 15,485 | 69,900 | |||
ADJUSTED EBITDA | $ (3,108) | $ 1,798 | $ (5,355) | $ 1,861 | |||
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SOURCE BioLife Solutions, Inc.
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