Avid Bioservices Reports Financial Results for Second Quarter Ended October 31, 2024
Avid Bioservices (NASDAQ: CDMO) reported financial results for Q2 FY2025 ended October 31, 2024. Revenue increased 32% to $33.5 million, while backlog grew 11% to $220 million. Despite revenue growth, the company recorded a gross loss of $2.0 million and a net loss of $17.4 million ($0.27 per share).
The company announced its acquisition by GHO Capital Partners and Ampersand Capital Partners in an all-cash transaction valued at $1.1 billion. Shareholders will receive $12.50 per share, representing a 13.8% premium to the closing price on November 6, 2024. The transaction is expected to close in Q1 2025, after which Avid will become private.
Avid Bioservices (NASDAQ: CDMO) ha riportato i risultati finanziari per il secondo trimestre dell'anno fiscale 2025, conclusosi il 31 ottobre 2024. I ricavi sono aumentati del 32%, raggiungendo 33,5 milioni di dollari, mentre il portafoglio ordini è cresciuto dell'11%, arrivando a 220 milioni di dollari. Nonostante la crescita dei ricavi, l'azienda ha registrato una perdita lorda di 2,0 milioni di dollari e una perdita netta di 17,4 milioni di dollari (0,27 dollari per azione).
L'azienda ha annunciato la sua acquisizione da parte di GHO Capital Partners e Ampersand Capital Partners in un'operazione interamente in contante del valore di 1,1 miliardi di dollari. Gli azionisti riceveranno 12,50 dollari per azione, rappresentando un premio del 13,8% rispetto al prezzo di chiusura del 6 novembre 2024. Si prevede che la transazione si chiuda nel primo trimestre del 2025, dopodiché Avid diventerà privata.
Avid Bioservices (NASDAQ: CDMO) reportó resultados financieros para el segundo trimestre del año fiscal 2025, que finalizó el 31 de octubre de 2024. Los ingresos aumentaron un 32%, alcanzando 33.5 millones de dólares, mientras que la cartera de pedidos creció un 11%, llegando a 220 millones de dólares. A pesar del crecimiento de los ingresos, la empresa registró una pérdida bruta de 2.0 millones de dólares y una pérdida neta de 17.4 millones de dólares (0.27 dólares por acción).
La compañía anunció su adquisición por parte de GHO Capital Partners y Ampersand Capital Partners en una transacción totalmente en efectivo valorada en 1.1 mil millones de dólares. Los accionistas recibirán 12.50 dólares por acción, lo que representa una prima del 13.8% sobre el precio de cierre del 6 de noviembre de 2024. Se espera que la transacción se cierre en el primer trimestre de 2025, después de lo cual Avid se volverá privada.
Avid Bioservices (NASDAQ: CDMO)는 2024년 10월 31일 종료된 2025 회계 연도 2분기 재무 결과를 발표했습니다. 수익은 32% 증가하여 3,350만 달러에 달했으며, 잔여 주문량은 11% 증가하여 2억 2천만 달러에 달했습니다. 수익 증가에도 불구하고 회사는 200만 달러의 총 손실 및 1,740만 달러(주당 0.27 달러)의 순손실을 기록했습니다.
회사는 GHO Capital Partners와 Ampersand Capital Partners에 의해 총 11억 달러 가치의 전액 현금 거래로 인수된다고 발표했습니다. 주주들은 주당 12.50 달러를 받을 예정이며, 이는 2024년 11월 6일의 종가에 비해 13.8%의 프리미엄을 나타냅니다. 거래는 2025년 1분기에 완료될 것으로 예상되며, 이후 Avid는 비상장 회사가 됩니다.
Avid Bioservices (NASDAQ: CDMO) a annoncé ses résultats financiers pour le deuxième trimestre de l'exercice 2025, se terminant le 31 octobre 2024. Le chiffre d'affaires a augmenté de 32 %, atteignant 33,5 millions de dollars, tandis que le carnet de commandes a progressé de 11 %, pour atteindre 220 millions de dollars. Malgré la croissance des revenus, l'entreprise a enregistré une perte brute de 2,0 millions de dollars et une perte nette de 17,4 millions de dollars (0,27 dollar par action).
L'entreprise a annoncé son acquisition par GHO Capital Partners et Ampersand Capital Partners dans le cadre d'une opération entièrement en espèces d'une valeur de 1,1 milliard de dollars. Les actionnaires recevront 12,50 dollars par action, ce qui représente une prime de 13,8 % par rapport au cours de clôture du 6 novembre 2024. La transaction devrait être finalisée au premier trimestre 2025, après quoi Avid deviendra privée.
Avid Bioservices (NASDAQ: CDMO) berichtete über die finanziellen Ergebnisse für das 2. Quartal des Geschäftsjahres 2025, das am 31. Oktober 2024 endete. Der Umsatz stieg um 32% auf 33,5 Millionen Dollar, während der Auftragsbestand um 11% auf 220 Millionen Dollar wuchs. Trotz des Umsatzwachstums verzeichnete das Unternehmen einen Bruttoverlust von 2,0 Millionen Dollar und einen Nettoverlust von 17,4 Millionen Dollar (0,27 Dollar pro Aktie).
Das Unternehmen gab bekannt, dass es von GHO Capital Partners und Ampersand Capital Partners in einer gesamten Bartransaktion im Wert von 1,1 Milliarden Dollar übernommen wird. Aktionäre erhalten 12,50 Dollar pro Aktie, was einem Aufschlag von 13,8% auf den Schlusskurs vom 6. November 2024 entspricht. Die Transaktion wird voraussichtlich im 1. Quartal 2025 abgeschlossen, nach dem Avid privat werden wird.
- Revenue increased 32% YoY to $33.5 million in Q2
- Backlog grew 11% YoY to $220 million
- Six-month revenue increased 17% to $73.7 million
- Acquisition deal offers 13.8% premium to shareholders at $12.50 per share
- Q2 gross loss of $2.0 million
- Net loss widened to $17.4 million from $9.5 million YoY
- SG&A expenses increased 61% to $10.6 million
- Cash position decreased to $33.4 million from $38.1 million in April 2024
Insights
The Q2 FY2025 results reveal a mixed financial picture for Avid Bioservices. While revenues increased
The pending acquisition by GHO and Ampersand at
The operational metrics show concerning trends despite revenue growth. The gross loss of
Cash position has deteriorated to
TUSTIN, Calif., Dec. 10, 2024 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ: CDMO), a dedicated biologics contract development and manufacturing organization (CDMO) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced financial results for the second quarter and six months ended October 31, 2024.
Highlights from the Quarter Ended October 31, 2024:
“We delivered solid results in a competitive environment, with increased revenues and backlog offset by increased costs,” stated Nick Green, president and CEO of Avid Bioservices. “We are pleased to reach the separately announced agreement with GHO and Ampersand, which will provide our stockholders with significant, immediate and certain cash value for their shares. The transaction also provides us with partners who are committed to leveraging their deep industry experience, focused strategy, and collaborative approach to drive growth beyond the Company’s standalone plan.”
Financial Highlights for the Second Quarter and Six Months Ended October 31, 2024
- Revenues for the second quarter were
$33.5 million , an increase of32% as compared to revenues of$25.4 million recorded in the same prior year period. For the first six months of fiscal 2025, revenues were$73.7 million , an increase of17% as compared to revenues of$63.1 million in the same prior year period. The revenue increase for the second quarter and six months ended October 31, 2024, was attributed to increases in manufacturing and process development revenues. - As of October 31, 2024, backlog was
$220 million an increase of11% compared to$199 million at the end of the same quarter last year. The company anticipates a significant amount of its backlog will be recognized as revenue over the next five fiscal quarters. - Gross loss for the second quarter was
$2.0 million compared to a gross loss of$4.7 million for the same prior year period. Gross profit for the first six months of fiscal 2025 was$3.7 million compared to a gross loss of$0.6 million for the same prior year period. The increase in gross profit for the second quarter and six months ended October 31, 2024, compared to the same prior year period was primarily driven by increased revenues, partially offset by increases in compensation and benefit related expenses, facility, manufacturing and other related expenses, and depreciation expense. - SG&A expenses for the second quarter were
$10.6 million , an increase of61% compared to$6.6 million recorded in the same prior year period. The increase in SG&A for the second quarter ended October 31, 2024, compared to the same prior year period was primarily due to increases in compensation and benefit related expenses and legal fees. SG&A expenses for the first six months of fiscal 2025 were$18.8 million , an increase of46% compared to$12.8 million recorded in the prior year period. The increase in SG&A for the second quarter and six months ended October 31, 2024, compared to the same prior year period was primarily due to increases in compensation and benefit related expenses and audit, legal and other consulting fees. - Net loss for the second quarter was
$17.4 million or$0.27 per basic and diluted share, compared to a net loss of$9.5 million or$0.15 per basic and diluted share for the same prior year period. For the first six months of fiscal 2025, the company recorded a net loss of$22.9 million or$0.36 per basic and diluted share, compared to a net loss of$11.6 million or$0.18 per basic and diluted share during the same prior year period. - On October 31, 2024, the company reported cash and cash equivalents of
$33.4 million , compared to$38.1 million on April 30, 2024. - During the second quarter of fiscal 2025, the company’s revolving line of credit expired.
More detailed financial information and analysis may be found in Avid Bioservices’ Quarterly Report on Form 10-Q, which is being filed with the Securities and Exchange Commission today.
Acquisition of Avid Bioservices by GHO Capital Partners and Ampersand Capital Partners
- On November 6, 2024, the company announced that Avid, GHO Capital Partners LLP ("GHO") and Ampersand Capital Partners (“Ampersand”) have entered into a definitive merger agreement for Avid to be acquired by funds managed by GHO and Ampersand in an all-cash transaction valued at approximately
$1.1 billion . Under the terms of the merger agreement, GHO and Ampersand would acquire all the outstanding shares held by Avid’s stockholders for$12.50 per share in cash. The per share purchase price represents a13.8% premium to Avid’s closing share price of$10.98 on November 6, 2024, the last full trading day prior to the transaction announcement, and a21.9% premium to the company's 20-day volume-weighted average share price for the period ended November 6, 2024. This transaction equates to an enterprise value of approximately$1.1 billion , a 6.3x multiple to consensus FY2025E revenue.
The transaction, which was unanimously approved by the Avid Board of Directors, is currently expected to close in the first quarter of 2025, subject to customary closing conditions, including approval by Avid’s stockholders and receipt of required regulatory approvals. The transaction is not subject to a financing condition. The companies will continue to operate independently until the proposed transaction is finalized. Upon completion of the transaction, Avid common stock will no longer be listed on any public stock exchange. The company will continue to operate under the Avid name and brand.
In light of the proposed transaction, Avid will not host an earnings conference call and is suspending its practice of providing financial guidance.
About Avid Bioservices, Inc.
Avid Bioservices (NASDAQ: CDMO) is a dedicated contract development and manufacturing organization (CDMO) focused on development and CGMP manufacturing of biologics. The company provides a comprehensive range of process development, CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With more than 30 years of experience producing biologics, Avid's services include CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. For early-stage programs the company provides a variety of process development activities, including cell line development, upstream and downstream development and optimization, analytical methods development, testing and characterization. The scope of our services ranges from standalone process development projects to full development and manufacturing programs through commercialization. www.avidbio.com
Forward-Looking Statements
Statements in this press release, which are not purely historical, including statements regarding the company’s projected revenue ramp and expected continued momentum, expected future sustained profitability, the estimated annual revenue-generating capacity of the company’s facilities, the expected benefits to the company’s business from customers with later stage programs, the anticipated timing for recognizing revenue from the company’s backlog, the realization of the company’s strategic objectives, the company’s revenue guidance, and other statements relating to the company’s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including, but not limited to, the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed transaction that could delay the consummation of the proposed transaction or cause the parties to abandon the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement entered into in connection with the proposed transaction; the possibility that the company’s stockholders may not approve the proposed transaction; the risk that the parties to the merger agreement may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the proposed transaction; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the company’s common stock; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk of any litigation relating to the proposed transaction; and the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the company to retain and hire key personnel and to maintain relationships with customers, vendors, partners, employees, stockholders and other business relationships and on its operating results and business generally, the risk the company may experience delays in engaging new customers, the risk that the company may not be successful in executing customers projects, the risk that changing economic conditions may delay or otherwise adversely impact the realization of the company’s backlog, the risk that the company may not be able to convert its backlog into revenue within the contemplated time periods, the risk that the company may experience technical difficulties in completing customer projects due to unanticipated equipment and/or manufacturing facility issues which could result in projects being terminated or delay delivery of products to customers, revenue recognition and receipt of payment or result in the loss of the customer, the risk that the company’s later-stage customers do not receive regulatory approval or that commercial demand for an approved product is less than forecast, the risk that one or more existing customers terminates its contract prior to completion or reduces or delays its demand for development or manufacturing services which could adversely affect guided fiscal 2025 revenues, the risk that expanding into a new biologics manufacturing capability may distract senior management’s focus on the company’s existing operations, the risk that the company may experience delays in hiring qualified individuals into the cell and gene therapy business, the risk that the company may experience delays in engaging customers for the cell and gene therapy business, and the risk that the cell and gene therapy business may not become profitable for several years, if ever. Our business could be affected by a number of other factors, including the risk factors listed from time to time in our reports filed with the Securities and Exchange Commission including, but not limited to, our annual report on Form 10-K for the fiscal year ended April 30, 2024, as well as any updates to these risk factors filed from time to time in our other filings with the Securities and Exchange Commission. We caution investors not to place undue reliance on the forward-looking statements contained in this press release, and we disclaim any obligation, and do not undertake, to update or revise any forward-looking statements in this press release except as may be required by law.
FAQ
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