Champions Oncology Reports Quarterly Revenue of $14.1 Million Adjusted EBITDA of $2.0 Million
Rhea-AI Summary
Champions Oncology (NASDAQ:CSBR) reported strong financial results for Q1 FY2025. Revenue increased 12% to $14.1 million, with improved margin of 50%. The company achieved adjusted EBITDA of $2.0 million and net income of $1.3 million. Cost reductions and operational efficiencies contributed to profitability. Total costs decreased by $2.4 million (15.8%) compared to Q1 FY2024. The company ended the quarter with $2.9 million in cash and no debt. CEO Ronnie Morris expressed cautious optimism about weathering the business downturn and positioning for future growth.
Positive
- Revenue increased 12% year-over-year to $14.1 million
- Margin improved to 50% from 38.8% in the previous year
- Achieved adjusted EBITDA of $2.0 million, compared to a loss of $1.7 million last year
- Reported net income of $1.3 million
- Total costs and operating expenses decreased by $2.4 million or 15.8%
- Cost of oncology services decreased by 8.0%
- Research and development expenses reduced by 47.9%
- General and administrative expenses decreased by 14.0%
- Net cash provided by operating activities was $311,000
- Company has no debt
Negative
- Potential revenue and margin volatility expected in coming quarters
- Cash on hand decreased to $2.9 million from $3.6 million at the end of the previous quarter
News Market Reaction
On the day this news was published, CSBR gained 9.58%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
HACKSENSACK, NJ / ACCESSWIRE / September 11, 2024 / Champions Oncology, Inc. (NASDAQ:CSBR), a global preclinical and clinical research services provider that offers end-to-end oncology solutions, today announced its financial results for its first quarter of fiscal 2025, ended July 31, 2024.
First Quarter Highlights:
Total revenue increased
12% to$14.1 million Margin improved to
50% Adjusted EBITDA of
$2.0 million Net income of
$1.3 million
Ronnie Morris, CEO of Champions, commented, "As outlined on our year-end earnings call, we're cautiously optimistic that we've weathered the worst of the business downturn and we're poised to emerge leaner and stronger. Our first quarter's performance provided further evidence that we're on a strategic course to more consistently deliver the results we have been striving to achieve." Morris added, "Our comprehensive platform, unique data, and strong team are the key ingredients for future growth that will drive long-term returns for our shareholders."
David Miller, CFO of Champions, added, "The first quarter saw a return to profitability as revenue increased
First Fiscal Quarter Financial Results
Total revenue for the first quarter of fiscal 2025 was
For the first quarter of fiscal 2025, Champions reported income from operations of
Cost of oncology services was
Research and development expense for the three-months ended July 31, 2024 was
Net cash provided by operating activities was approximately
The Company ended the quarter with cash on hand of approximately
Conference Call Information:
The Company will host a conference call today at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss its first quarter financial results. To participate in the call, please call 888-506-0062 (Domestic) or 973-528-0011 (International) and enter the access code 726315, or provide the verbal reference "Champions Oncology".
Full details of the Company's financial results will be available by or before September 16, 2024 in the Company's Form 10-Q atwww.championsoncology.com.
* Non-GAAP Financial Information
See the attached Reconciliation of GAAP net income (loss) to Non-GAAP net income (loss) for an explanation of the amounts excluded to arrive at Non-GAAP net income (loss) and related Non-GAAP income (loss) per share amounts for the three months ended July 31, 2024 and 2023. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company's basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net income (loss) and Non-GAAP income (loss) per share are not, and should not, be viewed as a substitute for similar GAAP items. Champions defines Non-GAAP dilutive income (loss) per share amounts as Non-GAAP net income (loss) divided by the weighted average number of diluted shares outstanding. Champions' definition of Non-GAAP net income (loss) and Non-GAAP diluted income (loss) per share may differ from similarly named measures used by other companies and may not be applicable for the current reporting period.
About Champions Oncology, Inc.
Champions Oncology is a global preclinical and clinical research services provider that offers end-to-end oncology R&D solutions to biopharma organizations. With the largest and most annotated bank of clinically relevant patient-derived xenograft (PDX) and primary hematological malignancy models, Champions delivers innovative highest-quality data through proprietary in vivo and ex vivo platforms. Through its large portfolio of cutting-edge bioanalytical platforms, groundbreaking data platform and analytics, and scientific excellence, Champions enables the advancement of preclinical and clinical oncology drug discovery and development programs worldwide. For more information, please visit www.ChampionsOncology.com.
This press release may contain "forward-looking statements" (within the meaning of the Private Securities Litigation Act of 1995) that inherently involve risk and uncertainties. Champions Oncology generally uses words such as "believe," "may," "could," "will," "intend," "expect," "anticipate," "plan," and similar expressions to identify forward-looking statements. One should not place undue reliance on these forward-looking statements. The Company's actual results could differ materially from those anticipated in the forward-looking statements for many unforeseen factors. See Champions Oncology's Form 10-K for the fiscal year ended April 30, 2024 for a discussion of such risks, uncertainties and other factors. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and Champions Oncology's future results, levels of activity, performance or achievements may not meet these expectations. The Company does not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in Champions Oncology's expectations, except as required by law.
Champions Oncology, Inc.
(Dollars in thousands)
Reconciliation of GAAP to Non-GAAP Net Income (Loss) (Unaudited)
| Three Months Ended July 31, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Net income (loss) - GAAP |
| $ | 1,313 |
|
| $ | (2,566 | ) |
Less: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
| 258 |
|
|
| 423 |
|
Net income (loss) - Non-GAAP |
| $ | 1,571 |
|
| $ | (2,143 | ) |
Reconciliation of GAAP EPS to Non-GAAP EPS (Unaudited)
| Three Months Ended July 31, |
| ||||||
| 2024 |
|
| 2023 |
| |||
EPS - GAAP, basic |
| $ | 0.10 |
|
| $ | (0.19 | ) |
Less: |
|
|
|
|
|
|
|
|
Effect of stock-based compensation on EPS |
|
| 0.02 |
|
|
| 0.03 |
|
EPS - Non-GAAP, basic |
| $ | 0.12 |
|
| $ | (0.16 | ) |
|
|
|
|
|
|
|
| |
| Three Months Ended July 31, | |||||||
|
| 2024 |
|
|
| 2023 |
| |
EPS - GAAP, diluted |
| $ | 0.09 |
|
| $ | (0.19 | ) |
Less: |
|
|
|
|
|
|
|
|
Effect of stock-based compensation on EPS |
|
| 0.02 |
|
|
| 0.03 |
|
EPS - Non-GAAP, diluted |
| $ | 0.11 |
|
| $ | (0.16 | ) |
Unaudited Condensed Consolidated Statements of Operations (unaudited)
|
| Three Months Ended July 31, |
| |||||
| 2024 |
|
| 2023 |
| |||
Oncology services revenue |
| $ | 14,061 |
|
| $ | 12,561 |
|
Cost of oncology services |
|
| 7,072 |
|
|
| 7,684 |
|
Research and development |
|
| 1,454 |
|
|
| 2,793 |
|
Sales and marketing |
|
| 1,679 |
|
|
| 1,696 |
|
General and administrative |
|
| 2,527 |
|
|
| 2,940 |
|
Income (loss) from operations |
|
| 1,329 |
|
|
| (2,552 | ) |
Other income |
|
| 5 |
|
|
| 14 |
|
Income (loss) before provision for income taxes |
|
| 1,334 |
|
|
| (2,538 | ) |
Provision for income taxes |
|
| 21 |
|
|
| 28 |
|
Net income (loss) |
| $ | 1,313 |
|
| $ | (2,566 | ) |
|
|
|
|
|
|
|
| |
Net income (loss) per common share outstanding |
|
|
|
|
|
|
|
|
basic |
| $ | 0.10 |
|
| $ | (0.19 | ) |
and diluted |
| $ | 0.09 |
|
| $ | (0.19 | ) |
|
|
|
|
|
|
|
| |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
basic |
|
| 13,593,766 |
|
|
| 13,506,782 |
|
and diluted |
|
| 14,042,379 |
|
|
| 13,506,782 |
|
Condensed Consolidated Balance Sheets
| July 31, 2024 |
|
| April 30, 2024 |
| |||
| (unaudited) |
|
|
|
| |||
Cash and cash equivalents |
| $ | 2,892 |
|
| $ | 2,618 |
|
Accounts receivable, net |
|
| 9,032 |
|
|
| 9,526 |
|
Other current assets |
|
| 1,254 |
|
|
| 1,495 |
|
Total current assets |
|
| 13,178 |
|
|
| 13,639 |
|
|
|
|
|
|
|
|
| |
Operating lease right-of-use assets, net |
|
| 5,963 |
|
|
| 6,252 |
|
Property and equipment, net |
|
| 5,272 |
|
|
| 5,721 |
|
Other long term assets |
|
| 185 |
|
|
| 185 |
|
Goodwill |
|
| 335 |
|
|
| 335 |
|
Total assets |
| $ | 24,933 |
|
| $ | 26,132 |
|
|
|
|
|
|
|
|
| |
Accounts payable and accrued liabilities |
| $ | 7,332 |
|
| $ | 7,960 |
|
Current portion of operating lease liabilities |
|
| 1,369 |
|
|
| 1,337 |
|
Other current liabilities |
|
| 151 |
|
|
| 150 |
|
Deferred revenue |
|
| 10,312 |
|
|
| 12,094 |
|
Total current liabilities |
|
| 19,164 |
|
|
| 21,541 |
|
|
|
|
|
|
|
|
| |
Non-current operating lease liabilities |
|
| 5,738 |
|
|
| 6,093 |
|
Other Non-current Liability |
|
| 363 |
|
|
| 401 |
|
Total liabilities |
|
| 25,265 |
|
|
| 28,035 |
|
|
|
|
|
|
|
|
| |
Stockholders' equity (deficit) |
|
| (332 | ) |
|
| (1,903 | ) |
Total liabilities and stockholders' equity (deficit) |
| $ | 24,933 |
|
| $ | 26,132 |
|
Unaudited Condensed Consolidated Statements of Cash Flows (unaudited)
| Three Months Ended |
| ||||||
| 2024 |
|
| 2023 |
| |||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net income (loss) |
| $ | 1,313 |
|
| $ | (2,566 | ) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
| 258 |
|
|
| 423 |
|
Operating lease right-of use assets |
|
| 289 |
|
|
| 270 |
|
Depreciation and amortization expense |
|
| 449 |
|
|
| 445 |
|
Allowance for doubtful accounts and estimated credit losses |
|
| (71 | ) |
|
| 162 |
|
Changes in operating assets and liabilities |
|
| (1,927 | ) |
|
| (2,725 | ) |
Net cash provided by (used in) operating activities |
|
| 311 |
|
|
| (3,991 | ) |
|
|
|
|
|
|
|
| |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
| - |
|
|
| (668 | ) |
Net cash used in investing activities: |
|
| - |
|
|
| (668 | ) |
|
|
|
|
|
|
|
| |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Repurchases of common stock |
|
| - |
|
|
| (602 | ) |
Proceeds from the exercise of stock options |
|
| - |
|
|
| 12 |
|
Finance lease payments |
|
| (37 | ) |
|
| - |
|
Net cash used in financing activities: |
|
| (37 | ) |
|
| (590 | ) |
|
|
|
|
|
|
|
| |
Net increase (decrease) in cash |
|
| 274 |
|
|
| (5,249 | ) |
Cash at beginning of period |
|
| 2,618 |
|
|
| 10,118 |
|
Cash at the end of period |
| $ | 2,892 |
|
| $ | 4,869 |
|
|
|
|
|
|
|
|
| |
SOURCE: Champions Oncology, Inc.
View the original press release on accesswire.com
FAQ
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