Emergent BioSolutions Reports Fourth Quarter 2023 Financial Results
- None.
- Net Loss of $50 million in Q4 2023 and Adjusted EBITDA of $3 million.
- Decrease in Total Revenues by 16% in Q4 2023 compared to Q4 2022.
- Net Loss of $760.5 million in Full Year 2023, a significant increase from $211.6 million in 2022.
- Adjusted EBITDA of $(22.3) million in Full Year 2023, a decrease from $28.8 million in 2022.
- Decrease in Total Segment Adjusted Gross Margin % from 48% in Q4 2022 to 32% in Q4 2023.
- Awarded contracts and grants decreased by 6% in Q4 2023 compared to Q4 2022.
- Operating expenses decreased by 17% in Q4 2023 compared to Q4 2022.
- Goodwill Impairment decreased by $6.7 million in Q4 2023 compared to Q4 2022.
- Capital expenditures decreased by 52% in Q4 2023 compared to Q4 2022.
- MCM Products gross margin decreased by 55% in Full Year 2023 compared to 2022.
Insights
The reported financial figures of Emergent BioSolutions Inc. reflect a mixed picture, with full-year revenues meeting guidance but a significant net loss recorded. A critical observation is the 6% year-over-year decline in total revenues, coupled with a substantial increase in net loss from $211.6 million in 2022 to $760.5 million in 2023. This deterioration in net income is a red flag for financial stability and could raise concerns among investors regarding the company's profitability trajectory.
Another key point is the shift in product sales mix, with a notable 98% increase in Anthrax MCM revenues, which may suggest a successful strategic pivot or favorable government contracts. However, this is contrasted by a 92% reduction in Smallpox MCM revenues, indicating potential volatility in government procurement patterns. The 22% increase in NARCAN® sales is a positive development, likely reflecting successful expansion into OTC markets.
The significant decrease in adjusted EBITDA from $44.0 million to $3.4 million in Q4 and a turn from a positive to a negative adjusted EBITDA for the full year, highlight operational challenges. This could suggest a need for further cost control measures or strategic reassessment. The reported $160 million in annual savings from organizational changes indicates proactive management efforts to address these challenges.
Lastly, the capital expenditure reduction by 52% suggests a conservative approach to spending, possibly in response to the net loss incurred. This may impact the company's ability to invest in future growth opportunities.
Emergent BioSolutions' financial performance has implications for its market positioning and competitive landscape. The launch of OTC NARCAN® and the FDA approval of CYFENDUS® represent strategic initiatives to diversify and strengthen the product portfolio. The entry into retail pharmacies and digital commerce with OTC NARCAN® could enhance market penetration and brand visibility, potentially leading to increased market share in the opioid overdose treatment sector.
The awarded contracts, such as the $75 million option for CYFENDUS® and a $379.6 million U.S. Department of Defense contract, are indicative of the company's solid footing in the public sector market, particularly in medical countermeasures. These contracts can provide a stable revenue stream and bolster the company's reputation as a reliable government supplier.
However, the divestiture of the Travel Health business and the cessation of the Janssen Agreement manufacturing may reflect a strategic refocus but could also signal a narrowing of the company's commercial scope. This could have mixed implications for market presence, depending on the success of newly launched and existing products to compensate for the divested assets.
The FDA's approval of CYFENDUS® and the subsequent contract option awarded to Emergent are significant developments in the field of anthrax vaccines. The two-dose regimen for post-exposure prophylaxis could represent an advancement in public health preparedness, potentially improving response times and efficacy in the event of biological threats.
The procurement of the Ebola treatment, Ebanga™, under a 10-year BARDA contract, highlights the company's ongoing commitment to addressing global health emergencies. This long-term contract could provide both financial stability and support sustained investment in infectious disease research and development.
It is important to monitor the impact of the FDA's closure of the inspection of Emergent's Camden facility. The resolution of regulatory challenges can restore confidence in the company's manufacturing capabilities and compliance, which is crucial for maintaining partnerships and securing new contracts in the medical sector.
- Fourth Quarter 2023 Total Revenues of
$277 million , which aligned our Full Year to the mid-point of guidance - Full Year 2023 Total Revenues of
$1.05 billion , which was the mid-point of guidance - Fourth Quarter 2023 Net Loss of
$50 million and Adjusted EBITDA of$3 million - Issues Q1 2024 and FY 2024 guidance
GAITHERSBURG, Md., March 06, 2024 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) today reported financial results for the quarter and year ended December 31, 2023.
"Emergent has a long history of helping protect people around the world from opioid overdose emergencies and chemical, biological and radiological threats. This commitment to public health, together with Emergent's leadership, give me confidence in the long-term future of the company," said Joe Papa, President and CEO at Emergent. "Emergent faces some short-term challenges, which we are addressing head on. At the same time, we are making decisions and putting strategies in place for Emergent to add value for customers, patients and investors. Emergent is a company with a bright future, and I am excited to help lead it forward."
FINANCIAL HIGHLIGHTS (1)
Q4 2023 vs. Q4 2022
| ($ in millions, except per share amounts) | Q4 2023 | Q4 2022 | % Change | |||||
| Total Revenues | $ | 276.6 | $ | 330.2 | (16)% | |||
| Net Loss | $ | (49.5 | ) | $ | (67.0 | ) | 26 | % |
| Net Loss per Diluted Share | $ | (0.95 | ) | $ | (1.34 | ) | 29 | % |
| Adjusted Net Income (Loss) (2) | $ | (40.0 | ) | $ | 5.9 | * | ||
| Adjusted Net Income (Loss) per Diluted Share (2) | $ | (0.77 | ) | $ | 0.11 | * | ||
| Adjusted EBITDA (2) | $ | 3.4 | $ | 44.0 | (92)% | |||
| Total Segment Gross Margin % (2) | 31 | % | 32 | % | ||||
| Total Segment Adjusted Gross Margin % (2) | 32 | % | 48 | % | ||||
| * % change is greater than +/- | ||||||||
Full Year 2023 vs. Full Year 2022
| ($ in millions, except per share amounts) | 2023 | 2022 | % Change | ||||
| Total Revenues | $ | 1,049.3 | $ | 1,117.5 | (6)% | ||
| Net Loss | $ | (760.5 | ) | $ | (211.6 | ) | * |
| Net Loss per Diluted Share | $ | (14.85 | ) | $ | (4.22 | ) | * |
| Adjusted Net Loss (2) | $ | (319.0 | ) | $ | (99.7 | ) | * |
| Adjusted Net Loss per Diluted Share (2) | $ | (6.23 | ) | $ | (1.98 | ) | * |
| Adjusted EBITDA (2) | $ | (22.3 | ) | $ | 28.8 | * | |
| Total Segment Gross Margin % (2) | 31 | % | 36 | % | |||
| Total Segment Adjusted Gross Margin % (2) | 33 | % | 41 | % | |||
| * % change is greater than +/- | |||||||
SELECT Q4 2023 AND FULL YEAR BUSINESS UPDATES
- Launched NARCAN® Naloxone HCl Nasal Spray 4 mg Over-The-Counter (“OTC NARCAN®”), broadening our customer base and sales channels to retail pharmacies and digital commerce websites as well as through physician-directed or standing order prescriptions at retail pharmacies, health departments, local law enforcement agencies, community-based organizations, substance abuse centers and other federal agencies
- Announced U.S. Food and Drug Administration (“FDA”) approval of CYFENDUS® (Anthrax Vaccine Adsorbed, Adjuvanted), previously known as AV7909, a two-dose anthrax vaccine for post-exposure prophylaxis use
- Awarded a
$75 million option to Emergent's existing contract for the acquisition of the newly approved CYFENDUS® - Awarded a 10-year contract by the Biomedical Advanced Research and Development Authority (“BARDA”) for advanced development, manufacturing scale-up, and procurement of Ebanga™ (ansuvimab-zykl) product, a treatment for Ebola
- Awarded a
$379.6 million U.S. Department of Defense contract for RSDL® - The FDA closed out its inspection of the Company’s Camden facility and issued a “close-out letter” of its Warning Letter issued in August 2022
- Continued progress on strengthening our fundamentals with key focus on our Medical Countermeasure (“MCM”) and NARCAN® products
- Implemented organizational and resource changes resulting in
$160 million of annual savings - Amended and extended maturity of our secured credit facility to May 2025
- Divested the Travel Health business valued at
$380 million
FOURTH QUARTER 2023 FINANCIAL PERFORMANCE (1)
Revenues
Beginning in 2023, the Company revised the categories used in discussing product/service level revenues. The new categories are:
- NARCAN® — comprises contributions from NARCAN® Nasal Spray
- Other Commercial Products - comprises contributions from Vaxchora® and Vivotif®, which we sold to Bavarian Nordic as part of our travel health business in May 2023
- Anthrax MCM — comprises potential contributions from CYFENDUS®, previously known as AV7909, BioThrax®, Anthrasil® and Raxibacumab
- Smallpox MCM — comprises potential contributions from ACAM2000®, VIGIV and TEMBEXA®
- Other Products — comprises potential contributions from BAT®, RSDL® and Trobigard®
- Bioservices — comprises service and lease revenues from the Bioservices business
| ($ in millions) | Q4 2023 | Q4 2022 | % Change | |||
| Product sales, net (3): | ||||||
| NARCAN® | $ | 111.0 | $ | 91.1 | 22 | % |
| Other Commercial Products | — | 4.9 | NM | |||
| Anthrax MCM | 111.6 | 56.4 | 98 | % | ||
| Smallpox MCM | 11.5 | 144.6 | (92)% | |||
| Other Products | 15.0 | 8.7 | 72 | % | ||
| Total Product sales, net | $ | 249.1 | $ | 305.7 | (19)% | |
| Bioservices: | ||||||
| Services | $ | 20.6 | $ | 17.2 | 20 | % |
| Leases | 0.2 | 0.2 | — | % | ||
| Total Bioservices revenues | $ | 20.8 | $ | 17.4 | 20 | % |
| Contracts and grants | $ | 6.7 | $ | 7.1 | (6)% | |
| Total revenues | $ | 276.6 | $ | 330.2 | (16)% | |
| NM - Not Meaningful | ||||||
Products Revenue, net
NARCAN®
For Q4 2023, revenues from NARCAN® (naloxone HCl) Nasal Spray increased
Other Commercial Products
For Q4 2023, revenues from Other Commercial Products decreased
Anthrax MCM
For Q4 2023, revenues from Anthrax MCM increased
Smallpox MCM
For Q4 2023, revenues from Smallpox MCM decreased
Other Products
For Q4 2023, revenues from other product sales increased
Bioservices Revenues
Services
For Q4 2023, revenues from Bioservices services increased
Leases
For Q4 2023, revenues from Bioservices leases were consistent with Q4 2022.
Contracts and Grants
For Q4 2023, revenues from contracts and grants decreased
Operating Expenses
| ($ in millions) | Q4 2023 | Q4 2022 | % Change | |||
| Cost of Commercial product sales | $ | 50.1 | $ | 40.2 | 25 | % |
| Cost of MCM product sales | 97.2 | 127.6 | (24)% | |||
| Cost of Bioservices | 37.8 | 52.7 | (28)% | |||
| Goodwill impairment | — | 6.7 | NM | |||
| Research and development (“R&D”) | 29.4 | 47.0 | (37)% | |||
| Selling, general and administrative (“SG&A”) | 89.7 | 93.4 | (4)% | |||
| Amortization of intangible assets | 16.2 | 17.9 | (9)% | |||
| Total operating expenses | $ | 320.4 | $ | 385.5 | (17)% | |
| NM - Not Meaningful | ||||||
Cost of Commercial Product Sales
For Q4 2023, cost of Commercial product sales increased
Cost of MCM Product Sales
For Q4 2023, cost of MCM product sales decreased
Cost of Bioservices
For Q4 2023, cost of Bioservices decreased
Research and Development Expenses
For Q4 2023, R&D expenses decreased
Selling, General and Administrative Expenses
For Q4 2023, SG&A expenses decreased
Goodwill Impairment
For Q4 2023, goodwill impairment decreased
ADDITIONAL FINANCIAL INFORMATION (1)
Capital Expenditures
| ($ in millions) | Q4 2023 | Q4 2022 | % Change | ||||
| Capital expenditures | $ | 11.4 | $ | 23.6 | (52)% | ||
| Less: capital expenditures reimbursed | — | 2.5 | NM | ||||
| Net capital expenditures | $ | 11.4 | $ | 21.1 | (46)% | ||
| Capital expenditures as a % of total revenues | 4 | % | 7 | % | |||
| Net capital expenditures as a % of total revenues | 4 | % | 6 | % | |||
| NM - Not Meaningful | |||||||
For Q4 2023, capital expenditures decreased largely due to lower product development activities across the Company’s facilities.
SEGMENT INFORMATION
In the fourth quarter of 2023, we realigned our reportable operating segments to reflect recent changes in our internal operating and reporting process. The Company now manages the business with a focus on three reportable segments: (1) a Commercial Products segment consisting of our NARCAN® and other commercial products which were sold as part of our travel health business in the second quarter of 2023; (2) a MCM Products segment consisting of the Anthrax - MCM, Smallpox - MCM and Other products and (3) a services segment (“Services”) consisting of our Bioservices. The Company evaluates the performance of these reportable segments based on revenue 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, 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 2023 SEGMENT RESULTS
| ($ in millions) | Commercial Products | |||||||||
| Quarter Ended December 31, | ||||||||||
| 2023 | 2022 | $ Change | % Change | |||||||
| Revenues | $ | 111.0 | $ | 96.0 | $ | 15.0 | 16 | % | ||
| Cost of sales | 50.1 | 40.2 | 9.9 | 25 | % | |||||
| Gross margin ** | $ | 60.9 | $ | 55.8 | $ | 5.1 | 9 | % | ||
| Gross margin % ** | 55 | % | 58 | % | ||||||
| Segment adjusted gross margin (2) | $ | 60.9 | $ | 55.8 | $ | 5.1 | 9 | % | ||
| Segment adjusted gross margin % (2) | 55 | % | 58 | % | ||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | ||||||||||
Commercial Products gross margin increased
| ($ in millions) | MCM Products | |||||||||
| Quarter Ended December 31, | ||||||||||
| 2023 | 2022 | $ Change | % Change | |||||||
| Revenues | $ | 138.1 | $ | 209.7 | $ | (71.6 | ) | (34)% | ||
| Cost of sales | 97.2 | 127.6 | (30.4 | ) | (24)% | |||||
| Gross margin ** | $ | 40.9 | $ | 82.1 | $ | (41.2 | ) | (50)% | ||
| Gross margin % ** | 30 | % | 39 | % | ||||||
| Add back: | ||||||||||
| Changes in fair value of contingent consideration | $ | 0.6 | $ | 0.2 | $ | 0.4 | * | |||
| Inventory step-up provision | 2.0 | 51.4 | (49.4 | ) | (96)% | |||||
| Restructuring costs | (1.4 | ) | — | (1.4 | ) | NM | ||||
| Segment adjusted gross margin (2) | $ | 42.1 | $ | 133.7 | $ | (91.6 | ) | (69)% | ||
| Segment adjusted gross margin % (2) | 30 | % | 64 | % | ||||||
| * % change is greater than +/- | ||||||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | ||||||||||
| NM - Not Meaningful | ||||||||||
MCM Products gross margin decreased
| ($ in millions) | Services | ||||||||||
| Quarter Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 20.8 | $ | 17.4 | $ | 3.4 | 20 | % | |||
| Cost of services | 37.8 | 52.7 | (14.9 | ) | (28)% | ||||||
| Gross margin ** | $ | (17.0 | ) | $ | (35.3 | ) | $ | 18.3 | 52 | % | |
| Gross margin % ** | (82 | )% | (203 | )% | |||||||
| Add back: | |||||||||||
| Restructuring costs | $ | 0.3 | $ | — | $ | 0.3 | NM | ||||
| Segment adjusted gross margin (2) | $ | (16.7 | ) | $ | (35.3 | ) | $ | 18.6 | 53 | % | |
| Segment adjusted gross margin % (2) | (80 | )% | (203 | )% | |||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| NM - Not Meaningful | |||||||||||
Services gross margin increased
FULL YEAR 2023 SEGMENT RESULTS
| ($ in millions) | Commercial Products | |||||||||
| Year Ended December 31, | ||||||||||
| 2023 | 2022 | $ Change | % Change | |||||||
| Revenues | $ | 497.3 | $ | 386.6 | $ | 110.7 | 29 | % | ||
| Cost of sales | 210.3 | 160.3 | 50.0 | 31 | % | |||||
| Gross margin ** | $ | 287.0 | $ | 226.3 | $ | 60.7 | 27 | % | ||
| Gross margin % ** | 58 | % | 59 | % | ||||||
| Segment adjusted gross margin (2) | $ | 287.0 | $ | 226.3 | $ | 60.7 | 27 | % | ||
| Segment adjusted gross margin % (2) | 58 | % | 59 | % | ||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | ||||||||||
Commercial Products gross margin increased
| ($ in millions) | MCM Products | ||||||||||
| Year Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 447.2 | $ | 579.6 | $ | (132.4 | ) | (23)% | |||
| Cost of sales | 305.6 | 264.3 | 41.3 | 16 | % | ||||||
| Gross margin ** | $ | 141.6 | $ | 315.3 | $ | (173.7 | ) | (55)% | |||
| Gross margin % ** | 32 | % | 54 | % | |||||||
| Add back: | |||||||||||
| Changes in fair value of contingent consideration | $ | 0.2 | $ | 2.6 | $ | (2.4 | ) | (92)% | |||
| Inventory step-up provision | 3.9 | 51.4 | (47.5 | ) | (92)% | ||||||
| Restructuring costs | 5.6 | — | 5.6 | NM | |||||||
| Segment adjusted gross margin (2) | $ | 151.3 | $ | 369.3 | $ | (218.0 | ) | (59)% | |||
| Segment adjusted gross margin % (2) | 34 | % | 64 | % | |||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| NM - Not Meaningful | |||||||||||
MCM Products gross margin decreased
| ($ in millions) | Services | ||||||||||
| Year Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 78.5 | $ | 109.9 | $ | (31.4 | ) | (29)% | |||
| Cost of services | 189.5 | 268.5 | (79.0 | ) | (29)% | ||||||
| Gross margin ** | $ | (111.0 | ) | $ | (158.6 | ) | $ | 47.6 | 30 | % | |
| Gross margin % ** | (141 | )% | (144 | )% | |||||||
| Add back: | |||||||||||
| Restructuring costs | $ | 8.4 | $ | — | $ | 8.4 | NM | ||||
| Segment adjusted gross margin (2) | $ | (102.6 | ) | $ | (158.6 | ) | $ | 56.0 | 35 | % | |
| Segment adjusted gross margin % (2) | (131 | )% | (144 | )% | |||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| NM - Not Meaningful | |||||||||||
Services gross margin increased
2024 FINANCIAL FORECAST
The Company provides the following financial forecast for full year 2024 and Q1 2024, in both instances reflecting management's expectations based on the most current information available.
Full Year 2024
| ($ in millions) METRIC | Full Year 2023 Actual | Full Year 2024 Forecast | |
| Total revenues | |||
| Net loss | |||
| Adjusted net loss (2) | |||
| Adjusted EBITDA (2) | |||
| Total segment adjusted gross margin % (2) | |||
| Segment Level Revenue (4) | |||
| Commercial Products | |||
| MCM Products | |||
| Services |
Q1 2024
| ($ in millions) METRIC | Q1 2024 Forecast |
| Total revenues |
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 U.S. generally accepted accounting principles.
(4) Other Commercial products, which includes Vivotif® and Vaxchora®, which were sold to Bavarian Nordic as part of our travel health business in May 2023, are not included in the 2024 forecast.
CONFERENCE CALL, PRESENTATION SUPPLEMENT AND WEBCAST INFORMATION
Company management will host a conference call at 5:00 pm eastern time today, March 6, 2024, to discuss these financial results. The conference call and presentation supplement can be accessed from the Company's website or through the following:
By phone
Advance registration is required.
Visit https://register.vevent.com/register/BI4568368bc7f24d88b225baf83e5fa29c to register and receive an email with the dial-in number, passcode and registrant ID.
By webcast
Visit https://edge.media-server.com/mmc/p/zaanahs2.
A replay of the call can be accessed from the Emergent website.
ABOUT EMERGENT BIOSOLUTIONS INC.
At Emergent, our mission is to protect and enhance life. We develop, manufacture, and deliver protections against public health threats through a pipeline of innovative vaccines and therapeutics. For over 20 years, we have been at work defending people from things we hope will never happen—so that we are prepared just in case they ever do. We do what we do because we see the opportunity to create a better, more secure world. One where preparedness empowers protection from the threats we face. And peace of mind prevails. In working together, we envision protecting or enhancing 1 billion lives by 2030. For more information, visit our website and follow us on LinkedIn, Twitter, and Instagram.
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 contingent consideration, acquisition and divestiture-related costs, goodwill and long-lived asset impairment charges, severance and restructuring costs, exit and disposal costs, inventory step-up provisions, and non-cash amortization charges. 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 consolidated net loss before income tax provision (benefit), interest expense, net, depreciation, amortization of intangible assets, changes in fair value of contingent consideration, goodwill and long-lived asset impairment charges, severance and restructuring costs, exit and disposal costs, acquisition and divestiture-related costs and inventory step-up provisions. 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. 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 restructuring costs and non-cash items related to changes in fair value of contingent consideration 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 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, inventory step-up provision and the fair value of contingent consideration. We define Total Segment Adjusted Gross Margin %, which is a non-GAAP financial measure, as Total Segment Adjusted Gross Martin 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 our business strategy, future operations, future financial position, future revenues and earnings, our ability to achieve the objectives of our restructuring initiatives, 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. Forward-looking statements are based on our current intentions, beliefs and expectations regarding future events based on information that is currently available. We cannot guarantee that any forward-looking statement will be accurate. Readers should realize that if underlying assumptions prove inaccurate or if known 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. Any 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 MCM products, including CYFENDUS® (Anthrax Vaccine Adsorbed (AVA), Adjuvanted), BioThrax® (Anthrax Vaccine Adsorbed), ACAM2000®, (Smallpox (Vaccinia) Vaccine, Live), among others, as well as contracts related to development of medical countermeasures; the availability of government funding for our other commercialized products, including Ebanga™ (ansuvimab-zykl), BAT® (Botulism Antitoxin Heptavalent) and RSDL® (Reactive Skin Decontamination Lotion Kit); 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 acceptance of over-the-counter NARCAN® (naloxone HCl) Nasal Spray; the impact of the generic marketplace on NARCAN® (naloxone HCI) Nasal Spray and future NARCAN® sales; our ability to perform under our contracts with the USG, including the timing of and specifications relating to deliveries; our ability to provide Bioservices for the development and/or manufacture of product and/or product candidates of our customers at required levels and on required timelines; the ability of our contractors and suppliers to maintain compliance with current good manufacturing practices and other regulatory obligations; our ability to negotiate further commitments related to the collaboration and deployment of capacity toward future commercial manufacturing under our existing Bioservices contracts; our ability to collect reimbursement for raw materials and payment of services fees from our Bioservices customers; the results of pending stockholder litigation and government investigations and their potential impact on our business; our ability to comply with the operating and financial covenants required by our senior secured credit facilities and the amended and restated credit agreement relating to such facilities, and our
Trademarks
Emergent®, BioThrax®, BaciThrax®, RSDL®, 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.
| Investor Contact Rich Lindahl Executive Vice President, Chief Financial Officer lindahlr@ebsi.com | Media Contact Assal Hellmer Vice President, Communications mediarelations@ebsi.com |
| Emergent BioSolutions Inc. Consolidated Balance Sheets (unaudited, in millions, except per share data) | |||||||
| December 31, | December 31, | ||||||
| 2023 | 2022 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 111.7 | $ | 642.6 | |||
| Accounts receivable, net | 191.0 | 159.2 | |||||
| Inventories, net | 328.9 | 350.7 | |||||
| Prepaid expenses and other current assets | 47.9 | 57.9 | |||||
| Total current assets | 679.5 | 1,210.4 | |||||
| Property, plant and equipment, net | 382.8 | 817.6 | |||||
| Intangible assets, net | 566.6 | 728.8 | |||||
| Goodwill | — | 218.2 | |||||
| Other assets | 194.3 | 191.3 | |||||
| Total assets | $ | 1,823.2 | $ | 3,166.3 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 112.2 | $ | 103.5 | |||
| Accrued expenses | 18.6 | 34.9 | |||||
| Accrued compensation | 74.1 | 87.3 | |||||
| Debt, current portion | 413.7 | 957.3 | |||||
| Other current liabilities | 32.7 | 45.9 | |||||
| Total current liabilities | 651.3 | 1,228.9 | |||||
| Debt, net of current portion | 446.5 | 448.5 | |||||
| Deferred tax liability | 47.2 | 59.7 | |||||
| Other liabilities | 28.9 | 41.5 | |||||
| Total liabilities | $ | 1,173.9 | $ | 1,778.6 | |||
| Stockholders’ equity: | |||||||
| Preferred stock, par value | — | — | |||||
| Common stock, par value | 0.1 | 0.1 | |||||
| Treasury stock, at cost, 5.6 and 5.6 common shares, respectively | (227.7 | ) | (227.7 | ) | |||
| Additional paid-in capital | 904.4 | 873.5 | |||||
| Accumulated other comprehensive income (loss), net | (5.7 | ) | 3.1 | ||||
| Retained earnings (accumulated deficit) | (21.8 | ) | 738.7 | ||||
| Total stockholders’ equity | $ | 649.3 | $ | 1,387.7 | |||
| Total liabilities and stockholders’ equity | $ | 1,823.2 | $ | 3,166.3 | |||
| Emergent BioSolutions Inc. Consolidated Statements of Operations (unaudited, in millions, except per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenues: | |||||||||||||||
| Commercial Product sales | $ | 111.0 | $ | 96.0 | $ | 497.3 | $ | 386.6 | |||||||
| MCM Product sales | 138.1 | 209.7 | 447.2 | 579.6 | |||||||||||
| Total Product sales, net | 249.1 | 305.7 | 944.5 | 966.2 | |||||||||||
| Bioservices: | |||||||||||||||
| Services | 20.6 | 17.2 | 72.8 | 105.0 | |||||||||||
| Leases | 0.2 | 0.2 | 5.7 | 4.9 | |||||||||||
| Total Bioservices revenues | 20.8 | 17.4 | 78.5 | 109.9 | |||||||||||
| Contracts and grants | 6.7 | 7.1 | 26.3 | 41.4 | |||||||||||
| Total revenues | 276.6 | 330.2 | 1,049.3 | 1,117.5 | |||||||||||
| Operating expenses: | |||||||||||||||
| Cost of Commercial Product sales | 50.1 | 40.2 | 210.3 | 160.3 | |||||||||||
| Cost of MCM Product sales | 97.2 | 127.6 | 305.6 | 264.3 | |||||||||||
| Cost of Bioservices | 37.8 | 52.7 | 189.5 | 268.5 | |||||||||||
| Goodwill impairment | — | 6.7 | 218.2 | 6.7 | |||||||||||
| Impairment of long-lived assets | — | — | 306.7 | — | |||||||||||
| Research and development | 29.4 | 47.0 | 111.4 | 188.3 | |||||||||||
| Selling, general and administrative | 89.7 | 93.4 | 368.4 | 339.5 | |||||||||||
| Amortization of intangible assets | 16.2 | 17.9 | 65.6 | 59.9 | |||||||||||
| Total operating expenses | 320.4 | 385.5 | 1,775.7 | 1,287.5 | |||||||||||
| Loss from operations | (43.8 | ) | (55.3 | ) | (726.4 | ) | (170.0 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (21.7 | ) | (12.8 | ) | (87.9 | ) | (37.3 | ) | |||||||
| Gain on sale of business | — | — | 74.2 | — | |||||||||||
| Other, net | 11.0 | 6.7 | 8.9 | (11.7 | ) | ||||||||||
| Total other income (expense), net | (10.7 | ) | (6.1 | ) | (4.8 | ) | (49.0 | ) | |||||||
| Loss before income taxes | (54.5 | ) | (61.4 | ) | (731.2 | ) | (219.0 | ) | |||||||
| Income tax provision (benefit) | (5.0 | ) | 5.6 | 29.3 | (7.4 | ) | |||||||||
| Net loss | $ | (49.5 | ) | $ | (67.0 | ) | $ | (760.5 | ) | $ | (211.6 | ) | |||
| Net loss per common share | |||||||||||||||
| Basic | $ | (0.95 | ) | $ | (1.34 | ) | $ | (14.85 | ) | $ | (4.22 | ) | |||
| Diluted | $ | (0.95 | ) | $ | (1.34 | ) | $ | (14.85 | ) | $ | (4.22 | ) | |||
| Shares used in computing net loss per common share | |||||||||||||||
| Basic | 51.9 | 49.9 | 51.2 | 50.1 | |||||||||||
| Diluted | 51.9 | 49.9 | 51.2 | 50.1 | |||||||||||
| Emergent BioSolutions Inc. Consolidated Statements of Cash Flows (unaudited, in millions) | |||||||
| Year Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Operating Activities | |||||||
| Net income (loss) | $ | (760.5 | ) | $ | (211.6 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Share-based compensation expense | 23.1 | 45.1 | |||||
| Depreciation and amortization | 125.1 | 143.3 | |||||
| Change in fair value of contingent obligations, net | 0.2 | 2.6 | |||||
| Amortization of deferred financing costs | 21.3 | 4.1 | |||||
| Deferred income taxes | (8.9 | ) | (28.6 | ) | |||
| Gain on sale of travel health business | (74.2 | ) | — | ||||
| Goodwill impairment | 218.2 | 6.7 | |||||
| Impairment of long-lived assets | 306.7 | — | |||||
| Other | 13.0 | 6.4 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (21.6 | ) | 118.1 | ||||
| Inventories | 0.6 | (57.1 | ) | ||||
| Prepaid expenses and other assets | 11.7 | (19.9 | ) | ||||
| Accounts payable | 10.6 | (14.0 | ) | ||||
| Accrued expenses and other liabilities | (55.7 | ) | (66.7 | ) | |||
| Accrued compensation | (10.4 | ) | (0.8 | ) | |||
| Long-term incentive plan accrual | 4.8 | — | |||||
| Income taxes receivable and payable, net | (16.2 | ) | 28.7 | ||||
| Contract liabilities | 5.9 | 9.6 | |||||
| Net cash used in operating activities | (206.3 | ) | (34.1 | ) | |||
| Investing Activities | |||||||
| Purchases of property, plant and equipment | (51.6 | ) | (115.8 | ) | |||
| Royalty settlement payment | — | (21.8 | ) | ||||
| Milestone payment from prior asset acquisition | (6.3 | ) | — | ||||
| Asset acquisitions | — | (243.7 | ) | ||||
| Proceeds from sale of travel health business, net | 270.2 | — | |||||
| Net cash provided by (used in) investing activities | 212.3 | (381.3 | ) | ||||
| Financing Activities | |||||||
| Purchases of treasury stock | — | (82.1 | ) | ||||
| Proceeds from revolving credit facility | 20.0 | 598.0 | |||||
| Principal payments on revolving credit facility | (398.8 | ) | — | ||||
| Principal payments on term loan facility | (164.6 | ) | (33.8 | ) | |||
| Proceeds from stock-based compensation activity | 1.8 | 5.0 | |||||
| Taxes paid for stock-based compensation activity | (2.5 | ) | (5.9 | ) | |||
| Proceeds from at-the-market sale of stock, net of commissions and expenses | 8.4 | — | |||||
| Net cash provided by (used in) financing activities: | (535.7 | ) | 481.2 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1.2 | ) | 0.5 | ||||
| Net change in cash, cash equivalents and restricted cash | (530.9 | ) | 66.3 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 642.6 | 576.3 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 111.7 | $ | 642.6 | |||
| Supplemental cash flow disclosures: | |||||||
| Cash paid for interest | $ | 68.3 | $ | 33.0 | |||
| Cash paid for income taxes | $ | 52.8 | $ | 6.2 | |||
| Non-cash investing and financing activities: | |||||||
| Purchases of property, plant and equipment unpaid at period end | $ | 5.7 | $ | 9.4 | |||
| Gain on extinguishment of debt | $ | 2.5 | $ | — | |||
| 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) | ||||||||||||||
| ($ in millions, except per share value) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | Source | ||||||||||
| Net loss | $ | (49.5 | ) | $ | (67.0 | ) | $ | (760.5 | ) | $ | (211.6 | ) | ||
| Adjustments: | ||||||||||||||
| Non-cash amortization charges | $ | 22.0 | $ | 18.8 | $ | 86.8 | $ | 64.0 | Intangible Asset ("IA") Amortization, Other Income | |||||
| Changes in fair value of contingent consideration | 0.6 | 0.2 | 0.2 | 2.6 | MCM Product COGS | |||||||||
| Impairments | — | 6.7 | 524.9 | 6.7 | Goodwill and Long-lived Asset Impairment | |||||||||
| Severance and restructuring costs | (1.1 | ) | — | 33.4 | — | COGS, SG&A and R&D | ||||||||
| Inventory step-up provision | 2.0 | 51.4 | 3.9 | 51.4 | MCM Product COGS | |||||||||
| Acquisition and divestiture costs | 1.9 | 0.7 | 4.7 | 1.8 | SG&A | |||||||||
| Exit and disposal costs | 6.4 | — | 12.5 | — | Other Income (Expense) | |||||||||
| Gain on sale of business | — | — | (74.2 | ) | — | Other Income (Expense) | ||||||||
| Other income (expense), net item | (2.5 | ) | — | (2.5 | ) | — | Other Income (Expense) | |||||||
| Tax effect | (19.8 | ) | (4.9 | ) | (148.2 | ) | (14.6 | ) | ||||||
| Total adjustments: | $ | 9.5 | $ | 72.9 | $ | 441.5 | $ | 111.9 | ||||||
| Adjusted net income (loss) | $ | (40.0 | ) | $ | 5.9 | $ | (319.0 | ) | $ | (99.7 | ) | |||
| Net loss per diluted share | $ | (0.95 | ) | $ | (1.34 | ) | $ | (14.85 | ) | $ | (4.22 | ) | ||
| Adjustments: | ||||||||||||||
| Non-cash amortization charges | $ | 0.42 | $ | 0.38 | $ | 1.70 | $ | 1.28 | IA Amortization, Other Income | |||||
| Changes in fair value of contingent consideration | 0.01 | — | — | 0.05 | MCM Product COGS | |||||||||
| Impairments | — | 0.13 | 10.25 | 0.13 | Goodwill and Long-lived Asset Impairment | |||||||||
| Severance and restructuring costs | (0.02 | ) | — | 0.65 | — | COGS, SG&A and R&D | ||||||||
| Inventory step-up provision | 0.04 | 1.03 | 0.08 | 1.03 | MCM Product COGS | |||||||||
| Acquisition and divestiture costs | 0.04 | 0.01 | 0.09 | 0.04 | SG&A | |||||||||
| Exit and disposal costs | 0.12 | — | 0.24 | — | Other Income (Expense) | |||||||||
| Gain on sale of business | — | — | (1.45 | ) | — | Other Income (Expense) | ||||||||
| Other income (expense), net item | (0.05 | ) | — | (0.05 | ) | — | Other Income (Expense) | |||||||
| Tax effect | (0.38 | ) | (0.10 | ) | (2.89 | ) | (0.29 | ) | ||||||
| Total adjustments: | $ | 0.18 | $ | 1.45 | $ | 8.62 | $ | 2.24 | ||||||
| Adjusted net income (loss) per diluted share | $ | (0.77 | ) | $ | 0.11 | $ | (6.23 | ) | $ | (1.98 | ) | |||
| Diluted shares used in computing Adjusted net income (loss) per diluted share | 51.9 | 49.9 | 51.2 | 50.1 | ||||||||||
| Emergent BioSolutions, Inc. Reconciliation of Net Loss to Adjusted EBITDA (1) | |||||||||||||
| ($ in millions) | Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net loss | $ | (49.5 | ) | $ | (67.0 | ) | $ | (760.5 | ) | $ | (211.6 | ) | |
| Adjustments: | |||||||||||||
| Depreciation & amortization | $ | 29.6 | $ | 35.6 | $ | 125.1 | $ | 143.3 | |||||
| Income taxes | (5.0 | ) | 5.6 | 29.3 | (7.4 | ) | |||||||
| Total interest expense, net | 21.0 | 10.8 | 80.9 | 34.0 | |||||||||
| Impairments | — | 6.7 | 524.9 | 6.7 | |||||||||
| Inventory step-up provision | 2.0 | 51.4 | 3.9 | 51.4 | |||||||||
| Changes in fair value of contingent consideration | 0.6 | 0.2 | 0.2 | 2.6 | |||||||||
| Severance and restructuring costs | (1.1 | ) | — | 33.4 | — | ||||||||
| Exit and disposal costs | 6.4 | — | 12.5 | — | |||||||||
| Acquisition and divestiture costs | 1.9 | 0.7 | 4.7 | 1.8 | |||||||||
| Gain on sale of business | — | — | (74.2 | ) | — | ||||||||
| Other income (expense), net item | (2.5 | ) | — | (2.5 | ) | 8.0 | |||||||
| Total adjustments | $ | 52.9 | $ | 111.0 | $ | 738.2 | $ | 240.4 | |||||
| Adjusted EBITDA | $ | 3.4 | $ | 44.0 | $ | (22.3 | ) | $ | 28.8 | ||||
| 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, 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 | |||||||||||||
| Gross margin | $ | 60.9 | $ | 40.9 | $ | (17.0 | ) | $ | 84.8 | ||||||||
| Gross margin % | 55 | % | 30 | % | (82 | )% | 31 | % | |||||||||
| Add back: | |||||||||||||||||
| Changes in fair value of contingent consideration | $ | — | $ | 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 | % | |||||||||
| Three Months Ended December 31, 2022 (unaudited, in millions) | Commercial Products | MCM Products | Services | Total Segment | Contracts & Grants | Total Revenues | |||||||||||
| Revenues | $ | 96.0 | $ | 209.7 | $ | 17.4 | $ | 323.1 | $ | 7.1 | $ | 330.2 | |||||
| Cost of sales or services | 40.2 | 127.6 | 52.7 | 220.5 | |||||||||||||
| Gross margin | $ | 55.8 | $ | 82.1 | $ | (35.3 | ) | $ | 102.6 | ||||||||
| Gross margin % | 58 | % | 39 | % | (203 | )% | 32 | % | |||||||||
| Add back: | |||||||||||||||||
| Changes in fair value of contingent consideration | $ | — | $ | 0.2 | $ | — | $ | 0.2 | |||||||||
| Inventory step-up provision | — | 51.4 | — | 51.4 | |||||||||||||
| Adjusted gross margin | $ | 55.8 | $ | 133.7 | $ | (35.3 | ) | $ | 154.2 | ||||||||
| Adjusted gross margin % | 58 | % | 64 | % | (203 | )% | 48 | % | |||||||||
| 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 (unaudited, 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 | |||||||||||||
| Gross margin | $ | 287.0 | $ | 141.6 | $ | (111.0 | ) | $ | 317.6 | ||||||||
| Gross margin % | 58 | % | 32 | % | (141 | )% | 31 | % | |||||||||
| Add back: | |||||||||||||||||
| Changes in fair value of contingent consideration | $ | — | $ | 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 | % | |||||||||
| Year Ended December 31, 2022 (in millions) | Commercial Products | MCM Products | Services | Total Segment | Contracts & Grants | Total Revenues | |||||||||||
| Revenues | $ | 386.6 | $ | 579.6 | $ | 109.9 | $ | 1,076.1 | $ | 41.4 | $ | 1,117.5 | |||||
| Cost of sales or services | 160.3 | 264.3 | 268.5 | 693.1 | |||||||||||||
| Gross margin | $ | 226.3 | $ | 315.3 | $ | (158.6 | ) | $ | 383.0 | ||||||||
| Gross margin % | 59 | % | 54 | % | (144 | )% | 36 | % | |||||||||
| Add back: | |||||||||||||||||
| Changes in fair value of contingent consideration | $ | — | $ | 2.6 | $ | — | $ | 2.6 | |||||||||
| Inventory step-up provision | — | 51.4 | — | 51.4 | |||||||||||||
| Adjusted gross margin | $ | 226.3 | $ | 369.3 | $ | (158.6 | ) | $ | 437.0 | ||||||||
| Adjusted gross margin % | 59 | % | 64 | % | (144 | )% | 41 | % | |||||||||
| Emergent BioSolutions, Inc. Reconciliation of Net Loss Forecast to Adjusted Net Loss Forecast | |||
| ($ in millions) | 2024 Full Year Forecast | Source | |
| Net loss | |||
| Adjustments: | |||
| Non-cash amortization charges | IA Amortization Other Income | ||
| Changes in fair value of contingent consideration | 2 | MCM Product COGS | |
| Tax effect | (14) | ||
| Total adjustments: | |||
| Adjusted net loss | |||
| Reconciliation of Net Loss Forecast to Adjusted EBITDA Forecast | |
| ($ in millions) | 2024 Full Year Forecast |
| Net loss | |
| Adjustments: | |
| Depreciation & amortization | |
| Income taxes | 59 |
| Total interest expense, net | 61 |
| Changes in fair value of contingent consideration | 2 |
| Total adjustments | |
| Adjusted EBITDA | |
| 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) | 2024 Full Year Forecast |
| Total revenues | |
| Contracts & Grants | (30) |
| Total segment revenues | |
| Cost of sales or services | |
| Total segment gross margin | |
| Total segment gross margin % | |
| Add back: | |
| Changes in fair value of contingent consideration | |
| Total segment adjusted gross margin | |
| Total segment adjusted gross margin % | |
FAQ
What were Emergent BioSolutions Inc.'s Total Revenues in Q4 2023?
What was the Net Loss in Q4 2023?
What products did Emergent BioSolutions Inc. launch in Q4 2013?
What contract awards did Emergent BioSolutions Inc. receive in Q4 2013?
What financial challenges did Emergent BioSolutions Inc. face in Q4 2013?
