Inotiv, Inc. Announces Second Quarter Fiscal 2022 Financial Results
Inotiv, a leader in contract research services, reported Q2 FY 2022 revenue of $140.3 million, a remarkable growth of 646.3% year-over-year, attributed to strategic acquisitions and internal initiatives. Gross profit surged 609.5% to $44.7 million. However, the net loss widened to $(6.1) million, with operating expenses increasing significantly due to acquisitions and internal investments. The adjusted EBITDA jumped 1,846.2% to $25.3 million, indicating strong operational leverage. Guidance for H2 FY 2022 projects revenue of $290 million, aiming for a total of at least $510 million for the fiscal year.
- Revenue grew 646.3% to $140.3 million in Q2 FY 2022.
- Adjusted EBITDA increased 1,846.2% to $25.3 million.
- Book-to-bill ratio was strong at 1.52x for DSA services in Q2 FY 2022.
- H1 FY 2022 revenue reached $224.5 million, up 513.4% year-over-year.
- Guidance projects total revenue of at least $510 million for FY 2022.
- Net loss attributable to common shareholders widened to $(6.1) million in Q2 FY 2022.
- Operating expenses increased by 442.6% to $30.1 million in Q2 FY 2022.
WEST LAFAYETTE, Ind., May 12, 2022 (GLOBE NEWSWIRE) -- Inotiv, Inc. (NASDAQ: NOTV) (the “Company”, “We”, “Our” or “Inotiv”), a leading contract research organization specializing in nonclinical and analytical drug discovery and development services and research models and related products and services, today announced financial results for the three months (“Q2 FY 2022”) and six months (“H1 FY 2022”) ended March 31, 2022.
Q2 FY 2022 Highlights
- Revenue grew
646.3% to$140.3 million , from$18.8 million during the three months ended March 31, 2021 (“Q2 FY 2021”), driven by$30.6 million in accretive sales from internal growth initiatives and$90.9 million from incremental revenue from the acquisitions of HistoTox Labs, Inc. (“HistoTox Labs”), Bolder BioPATH, Inc. (“Bolder BioPATH”), Gateway Pharmacology Laboratories LLC (“Gateway Pharmacology”), Plato BioPharma, Inc. (“Plato BioPharma”), Envigo RMS Holding Corp. (“Envigo”), Robinson Services, Inc. (“RSI”), BioReliance Corporation (“BRC”), Integrated Laboratory Systems Holdings, LLC (“ILS”) and Orient BioResource Center, Inc. (“OBRC”). - Gross profit increased
609.5% to$44.7 million , from$6.3 million in Q2 FY 2021, primarily reflecting additional gross profit from acquisitions. - Operating income totaled
$7.9 million , compared to an operating loss of$(0.5) million in Q2 FY 2021, reflecting higher gross profit on higher revenue, partially offset by an increase in operating expenses and higher strategic investment in unallocated corporate general and administrative (“G&A”) expense. - Net loss attributable to common shareholders was
$(6.1) million , or (4.3)% of total revenue, and$(0.24) per basic and diluted share, compared to a net loss of$(0.7) million , or (3.7)% of total revenue, and$(0.06) per basic and diluted share, in Q2 FY 2021. - Adjusted EBITDA increased 1,
846.2% to$25.3 million or18.0% of total revenue, from$1.3 million or6.9% of total revenue in Q2 FY 2021. - Book-to-bill ratio was 1.52x for the DSA services business for the three months ended March 31, 2022. In Q2 FY 2022, during which we had a record quarter of requests for quotes and sales awards.
- DSA backlog was
$133.6 million at March 31, 2022, up27.7% compared to$104.6 million at December 31, 2021, and up147.9% from$53.9 million at March 31, 2021.
H1 FY 2022 Highlights
- Revenue grew
513.4% to$224.5 million , from$36.6 million during the six months ended March 31, 2021 (“H1 FY 2021”), driven by$40.2 million in accretive sales from internal growth initiatives and$147.7 million from incremental revenue from the acquisitions of HistoTox Labs, Boulder BioPATH, Gateway Pharmacology, Plato BioPharma, Envigo, RSI, BRC, ILS, and OBRC. RMS revenue in H1 FY 2022 reflected one partial and one full quarter contribution from Envigo, which was acquired on November 5, 2021. - Gross profit increased
425.4% to$64.1 million , from$12.2 million in H1 FY 2021, primarily reflecting additional gross profit from acquisitions. - Operating loss totaled
$(25.8) million , compared to operating loss of$(0.5) million in H1 FY 2021, reflecting an increase in operating expenses, which more than offset higher gross profit on higher revenue. - Net loss attributable to common shareholders was
$(89.1) million , or (39.7)% of revenue, and$(3.84) per basic and diluted share, compared to a net loss of$(1.1) million , or (3.0)% of revenue, and$(0.10) per basic and diluted share, in H1 FY 2021. - Adjusted EBITDA increased 1,
157.1% to$35.2 million , or15.7% of total revenue, from$2.8 million , or7.6% of total revenue in H1 FY 2021. - Book-to-bill ratio was 1.64x for the DSA services business for the six months ended March 31, 2022.
Significant Events during Q2 FY 2022
- On January 4, 2022, the Company announced a collaboration with Synexa Life Sciences, a world leader in clinical biomarker and bioanalysis research services, that will accelerate the Company’s development of biomarkers essential to the understanding of safety and efficacy of novel biotherapeutics, enhancing the Company’s core preclinical DSA services.
- On January 10, 2022, the Company announced the purchase of ILS, a contract research organization (“CRO”), located in Morrisville, North Carolina, specializing in genetic toxicology, in vivo and in vitro toxicology, pathology, molecular biology, bioinformatics and computational toxicology services. Transaction consideration totaled
$56.0 million , consisting of:$38.0 million in cash and 429,118 the Company’s common shares having a value of$18.0 million based on the volume weighted average closing price of Company shares as reported by NASDAQ for the twenty trading-day period ending on January 6, 2022. ILS operates in two leased facilities with a total of 50,000 square feet, including a vivarium that is accredited by the Association for Assessment and Accreditation of Laboratory Animal Care, and recognized revenue of approximately$20.0 million in 2021. - On January 10, 2022, the Company borrowed the full amount of its existing
$35.0 million delayed draw term loan facility (the "DDTL") under its credit agreement dated November 5, 2021, to fund the purchase of ILS. - On January 27, 2022, the Company announced the purchase of OBRC, from Orient Bio, Inc., a preclinical CRO and animal model supplier based in Seongnam, South Korea. OBRC is a primate quarantine and holding facility located near Alice, Texas. Consideration for the OBRC stock consisted of
$28.2 million in cash, subject to certain adjustments, and 677,339 of the Company's common shares. As part of the purchase consideration, the Company agreed to leave in place a payable owed by OBRC to the Seller in the amount of$3.7 million , which the Company determined to have a fair value of$3.3 million as of January 27, 2022. The payable will not bear interest and is required to be paid to the Seller on the date that is 18 months after the closing. - In connection with the purchase of OBRC, the Company entered into a first amendment to its existing credit agreement on January 27, 2022. The amendment provides for, among other things, an increase to the existing term loan facility in the original principal amount of
$40.0 million (“Incremental Term Loans”) and a new DDTL in the amount of$35.0 million , which amount is available to be drawn up to 24 months from the date of the amendment. On January 27, 2022, the Company borrowed the full amount of the Incremental Term Loans but did not borrow any amounts under the new DDTL. - As part of the Company’s ongoing strategy to invest in building an executive management team, the Company successfully recruited Fernanda Beraldi as General Counsel and Corporate Secretary, and Mo Dastagir as Chief Technology Officer, during Q2 FY 2022. In addition, we filled critical open positions in the scientific team, veterinarian staff, sales, marketing, client experience, finance, technology, human resources and accounting teams to support future growth and continued improvements across both segments.
- The Company continued commitment to upgrade and expand facilities and infrastructure through investing capital of
$9.5M Q2 FY 2022 (6.8% of revenue) bringing total H1 FY 2022 capital expenditures to$15.2 million (6.8% of revenue).
Subsequent Events
- On April 25, 2022, the Company announced the purchase of Histion, LLC (“Histion”), a CRO that provides histology operations for highly-specialized plastics and medical device pathology. The acquisition is a strategic element of the Company’s expansion of its specialized pathology services in the DSA segment.
Robert Leasure, Jr., the Company's President and Chief Executive Officer, commented, “In the second quarter of fiscal 2022, Inotiv achieved exceptional year over year growth in quoting levels, awards, backlog, revenue and EBITDA, reflecting strong ongoing demand for our DSA and RMS services and the positive incremental impact from strategic acquisitions along with internal growth. We achieved these outstanding results while generating positive operating cash flow and continuing to make internal growth investments in our people, services, infrastructure, systems, and capacity expansion programs. In Q2 FY 2022, we completed the second phase of our St. Louis expansion, and we are currently hiring additional talent. We have also initiated DSA capacity expansion in Rockville, MD, Boulder, CO, Fort Collins, CO, and Morrisville, NC. For the RMS business, we are in the process of expanding capacity in North America and Europe. As we complete expansions, we plan to close two RMS sites and consolidate RSI into other current facilities by the end of Q1 FY 2023. We also are making significant investments across the RMS organization to improve infrastructure and animal welfare.”
Mr. Leasure continued, “We are very encouraged by recent cross-selling success between our RMS and DSA businesses, client uptake of our comprehensive preclinical research capabilities, and Inotiv’s robust backlog and book-to-bill levels. We are providing guidance for revenue of
Q2 FY 2022 Review
Total revenue increased to
| Revenue (in millions) | ||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||
| Segment | Q2 FY 2022 | Q2 FY 2021 | Difference | % Change | ||||||||||
| DSA1 | +108.0 | % | ||||||||||||
| RMS | - | - | ||||||||||||
| Total | +646.3 | % | ||||||||||||
| 1 includes BASi Products | ||||||||||||||
The acquisitions of HistoTox Labs, Bolder BioPATH, Gateway Pharmacology, Plato BioPharma, OBRC and ILS added
Total gross profit was
| Gross Profit1 (in millions) | ||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||
| Segment | Q2 FY 2022 | % of Segment Revenue | Q2 FY 2021 | % of Revenue | ||||||||||
| DSA2 | 31.5 | % | 33.5 | % | ||||||||||
| RMS | 32.0 | % | - | - | ||||||||||
| Total | 31.9 | % | 33.5 | % | ||||||||||
| 1 excludes amortization of intangible assets 2includes BASi Products | ||||||||||||||
DSA gross profit for Q2 FY 2022 increased to
RMS gross profit for Q2 FY 2022 was
Operating expenses increased by
Net loss attributable to common shareholders was
Adjusted EBITDA increased 1,
H1 FY 2022 Review
Total revenue increased
| Revenue (in millions) | ||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||
| Segment | H1 FY 2022 | H1 FY 2021 | Difference | % Change | ||||||||||
| DSA1 | +96.4 | % | ||||||||||||
| RMS | - | - | ||||||||||||
| Total | +513.4 | % | ||||||||||||
| 1 includes BASi Products | ||||||||||||||
The acquisitions of HistoTox Labs, Bolder BioPATH, Gateway Pharmacology, Plato BioPharma, OBRC and ILS added
Total gross profit was
| Gross Profit1 (in millions) | ||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||
| Segment | H1 FY 2022 | % of Segment Revenue | H1 FY 2021 | % of Revenue | ||||||||||
| DSA2 | 34.2 | % | 33.3 | % | ||||||||||
| RMS | 25.9 | % | - | - | ||||||||||
| Total | 28.6 | % | 33.3 | % | ||||||||||
| 1 excludes amortization of intangible assets 2includes BASi Products | ||||||||||||||
DSA gross profit for H1 FY 2022 was
RMS gross profit for H1 FY 2022 was
Operating expenses increased by
Net loss attributable to common shareholders was
Net loss attributable to common shareholders was
Adjusted EBITDA increased 1,
Cash Provided by Operating Activities and Financial Condition
As of March 31, 2022, the Company had
On January 10, 2022, the Company borrowed the full
Cash provided by operating activities was
Guidance
The Company is launching annual revenue guidance as follows:
- Revenue of
$290 million in H2 FY 2022 for a total fiscal 2022 annual revenue of at least$510 million , implying year over year internal growth of30% or more. - We expect our adjusted EBITDA margin for FY 2022 will not be less than our H1 FY 2022 adjusted EBITDA margin of
15% .
Conference Call
Management will host a conference call on Thursday, May 12, 2022, at 4:30 pm ET to discuss first quarter reported results for fiscal year 2022.
Interested parties may participate in the call by dialing:
- (877) 407-9753 (Domestic)
(201) 493-6739 (International)
The live conference call webcast also will be accessible in the Investors section of the Company’s website, and directly via the following link: https://services.choruscall.com/mediaframe/webcast.html?webcastid=B2I1ZFbH
For those who cannot listen to the live broadcast, an online replay will be available in the Investors section of Inotiv’s web site at: https://www.inotivco.com/investors/investor-information/.
Non-GAAP to GAAP Reconciliation
This press release contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP), including Adjusted EBITDA for the three and six months ended March 31, 2022 and 2021 and selected business segment information for those periods. Adjusted EBITDA as reported herein refers to a financial performance measure that excludes from net income (loss) income statement line items interest expense and income taxes (benefit) expense, as well as non-cash charges for depreciation and amortization, stock option expense, United Kingdom lease liability reversal benefit, acquisition and integration costs, startup costs, unrealized foreign exchange losses, loss on debt extinguishment, amortization of inventory step up, gain on disposition of assets, loss on fair value remeasurement of convertible notes and other non-recurring third-party costs. The adjusted business segment information excludes from operating income and unallocated corporate G&A these same expenses.
The Company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the Company’s ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to the adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources. Investors should consider these non-GAAP measures as supplemental and in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.
Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of our results and to illustrate our results giving effect to the non-GAAP adjustments shown in the reconciliation. Management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
About the Company
Inotiv, Inc. is a leading contract research organization dedicated to providing nonclinical and analytical drug discovery and development services and research models and related products and services. The Company’s products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development, all while increasing efficiency, improving data, and reducing the cost of taking new drugs to market. Inotiv is committed to supporting discovery and development objectives as well as helping researchers realize the full potential of their critical R&D projects, all while working together to build a healthier and safer world. Further information about Inotiv can be found here: https://www.inotivco.com/.
This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties related to changes in the market and demand for our services and products, the development, marketing and sales of products and services, changes in technology, industry and regulatory standards, the timing of acquisitions and the successful closing, integration and business and financial impact thereof, near-term and long-term growth in revenue and operating margins, the impact of the COVID-19 pandemic on the economy, demand for our services and products and our operations, including the measures taken by governmental authorities to address the pandemic, which may precipitate or exacerbate other risks and/or uncertainties and various other market and operating risks, including those detailed in the Company's filings with the U.S. Securities and Exchange Commission.
| Company Contact | Investor Relations |
| Inotiv, Inc. | The Equity Group Inc. |
| Beth A. Taylor, Chief Financial Officer | Kalle Ahl, CFA |
| (765) 497-8381 | (212) 836-9614 |
| btaylor@inotivco.com | kahl@equityny.com |
| Devin Sullivan | |
| (212) 836-9608 | |
| dsullivan@equityny.com |
| INOTIV, INC. | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (In thousands, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| March 31, | March 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Service revenue | $ | 49,584 | $ | 17,902 | $ | 87,760 | $ | 34,934 | |||||
| Product revenue | 90,729 | 849 | 136,764 | 1,702 | |||||||||
| Total revenue | $ | 140,313 | $ | 18,751 | $ | 224,524 | $ | 36,636 | |||||
| Costs and expenses: | |||||||||||||
| Cost of services provided | 33,305 | 11,905 | 57,514 | 23,502 | |||||||||
| Cost of products sold | 62,282 | 522 | 102,959 | 933 | |||||||||
| Selling | 4,647 | 880 | 7,385 | 1,505 | |||||||||
| General and administrative | 21,347 | 5,610 | 34,599 | 10,492 | |||||||||
| Amortization of intangible assets | 6,414 | 152 | 9,810 | 312 | |||||||||
| Other operating expense | 4,450 | 203 | 38,030 | 399 | |||||||||
| Operating income (loss) | $ | 7,868 | $ | (521 | ) | $ | (25,773 | ) | $ | (507 | ) | ||
| Other income (expense): | |||||||||||||
| Interest (expense) | (7,547 | ) | (366 | ) | (12,375 | ) | (713 | ) | |||||
| Other income (expense) | (139 | ) | 179 | (57,866 | ) | 179 | |||||||
| Income (loss) before income taxes | $ | 182 | $ | (708 | ) | $ | (96,014 | ) | $ | (1,041 | ) | ||
| Income tax (expense) benefit | (6,846 | ) | (15 | ) | 5,939 | (48 | ) | ||||||
| Consolidated net (loss) | $ | (6,664 | ) | $ | (723 | ) | $ | (90,075 | ) | $ | (1,089 | ) | |
| Less: Net (expense) attributable to noncontrolling interests | (577 | ) | - | (941 | ) | - | |||||||
| Net (loss) attributable to common shareholders | $ | (6,087 | ) | $ | (723 | ) | $ | (89,134 | ) | $ | (1,089 | ) | |
| Loss per common share | |||||||||||||
| Net loss attributable to common shareholders: | |||||||||||||
| Basic and diluted | $ | (0.24 | ) | $ | (0.06 | ) | $ | (3.84 | ) | $ | (0.10 | ) | |
| Weighted-average number of common shares outstanding: | |||||||||||||
| Basic and diluted | 25,315 | 11,151 | 23,197 | 11,083 | |||||||||
Note – Certain prior quarter amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
| INOTIV, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In thousands) | |||||||
| March 31, | September 30, | ||||||
| 2022 | 2021 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 47,042 | $ | 138,924 | |||
| Restricted cash | 427 | 18,000 | |||||
| Trade receivables and contract assets, net of allowances for doubtful accounts of | 86,456 | 28,364 | |||||
| Inventories, net | 56,775 | 602 | |||||
| Prepaid expenses and other current assets | 34,883 | 3,129 | |||||
| Total current assets | 225,583 | 189,019 | |||||
| Property and equipment, net | 153,179 | 47,978 | |||||
| Operating lease right-of-use assets, net | 23,795 | 8,358 | |||||
| Goodwill | 456,631 | 51,927 | |||||
| Other intangible assets, net | 274,387 | 24,233 | |||||
| Other assets | 5,846 | 341 | |||||
| Total assets | $ | 1,139,421 | $ | 321,856 | |||
| Liabilities, shareholders' equity and noncontrolling interest | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 30,805 | $ | 6,163 | |||
| Accrued expenses and other liabilities | 20,690 | 8,968 | |||||
| Capex line of credit | — | 1,749 | |||||
| Fees invoiced in advance | 70,238 | 26,614 | |||||
| Current portion on long-term operating lease | 5,356 | 1,959 | |||||
| Current portion of long-term debt | 5,339 | 9,656 | |||||
| Total current liabilities | 132,428 | 55,109 | |||||
| Long-term operating leases, net | 18,613 | 6,554 | |||||
| Long-term debt, less current portion, net of debt issuance costs | 332,274 | 154,209 | |||||
| Other liabilities | 1,913 | 512 | |||||
| Deferred tax liabilities, net | 36,783 | 344 | |||||
| Total liabilities | 522,011 | 216,728 | |||||
| Shareholders’ equity and noncontrolling interest: | |||||||
| Common shares, no par value: | |||||||
| Authorized 74,000,000 shares; 25,495,701 issued and outstanding at March 31, 2022 and 15,931,485 at September 30, 2021 | 6,336 | 3,945 | |||||
| Additional paid-in capital | 713,034 | 112,198 | |||||
| Accumulated deficit | (101,090 | ) | (11,015 | ) | |||
| Accumulated other comprehensive loss | (628 | ) | — | ||||
| Total shareholders’ equity | 617,652 | 105,128 | |||||
| Noncontrolling interest | (242 | ) | — | ||||
| Total shareholders’ equity and noncontrolling interest | 617,410 | 105,128 | |||||
| Total liabilities and shareholders’ equity and noncontrolling interest | $ | 1,139,421 | $ | 321,856 | |||
| INOTIV, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| Six Months Ended | |||||||
| March 31, | |||||||
| 2022 | 2021 | ||||||
| Operating activities: | |||||||
| Consolidated net (loss) | $ | (90,075 | ) | $ | (1,089 | ) | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities, net of acquisitions: | |||||||
| Depreciation and amortization | 15,866 | 2,154 | |||||
| Undistributed earnings of noncontrolling interest | 777 | - | |||||
| Employee stock compensation expense | 20,300 | 460 | |||||
| Changes in deferred taxes | (1,907 | ) | - | ||||
| Provision for doubtful accounts | 381 | 72 | |||||
| Unrealized foreign currency (gain) loss | 60 | 9 | |||||
| Amortization of debt issuance costs and original issue discount | 1,203 | - | |||||
| Noncash interest and accretion expense | 2,512 | - | |||||
| Loss on fair value remeasurement of embedded derivative | 56,714 | - | |||||
| Other non-cash operating activities | - | 69 | |||||
| Loss on debt extinguishment | 878 | - | |||||
| Non-cash amortization of inventory fair value step-up | 6,277 | - | |||||
| Gain on disposal of property and equipment | (235 | ) | (1 | ) | |||
| Financing lease interest expense | 1 | 137 | |||||
| Changes in operating assets and liabilities: | |||||||
| Trade receivables and contract assets | (8,926 | ) | (1,927 | ) | |||
| Inventories | (14,688 | ) | (172 | ) | |||
| Prepaid expenses and other current assets | (10,149 | ) | 178 | ||||
| Operational lease right-of-use assets and liabilities, net | 1,457 | (31 | ) | ||||
| Accounts payable | 5,222 | 770 | |||||
| Accrued expenses and other liabilities | (11,510 | ) | 66 | ||||
| Fees invoiced in advance | 28,402 | 3,831 | |||||
| Other asset and liabilities, net | 1,467 | - | |||||
| Net cash provided by operating activities | $ | 4,027 | $ | 4,526 | |||
| Investing activities: | |||||||
| Capital expenditures | $ | (15,202 | ) | $ | (2,427 | ) | |
| Proceeds from sale of equipment | 283 | 2 | |||||
| Cash paid in acquisitions | (288,702 | ) | - | ||||
| Net cash used in investing activities | $ | (303,621 | ) | $ | (2,425 | ) | |
| Financing activities: | |||||||
| Payments on finance lease liability | $ | - | $ | (207 | ) | ||
| Payments of long-term debt | (37,746 | ) | (1,436 | ) | |||
| Payments of debt issuance costs | (9,887 | ) | (41 | ) | |||
| Payments on promissory notes | (763 | ) | - | ||||
| Payments on capex lines of credit | (1,749 | ) | (135 | ) | |||
| Payments on revolving credit facility | (10,000 | ) | - | ||||
| Payments on senior term notes | (513 | ) | - | ||||
| Payments on delayed draw term loan | (88 | ) | - | ||||
| Borrowings on revolving credit facility | 10,000 | - | |||||
| Borrowings on construction loans | 1,184 | - | |||||
| Borrowings on capex lines of credit | - | 387 | |||||
| Borrowings on delayed draw term loan | 35,000 | - | |||||
| Proceeds from issuance of senior term notes | 205,000 | - | |||||
| Proceeds from exercise of stock options | 93 | 111 | |||||
| Net cash provided by (used in) financing activities | $ | 190,531 | $ | (1,321 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | (392 | ) | - | ||||
| Net increase (decrease) in cash and cash equivalents | (109,455 | ) | 780 | ||||
| Cash, cash equivalents, and restricted cash at beginning of period | 156,924 | 1,406 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 47,469 | $ | 2,186 | |||
| INOTIV, INC. RECONCILIATION OF GAAP TO NON-GAAP SELECTED BUSINESS SEGMENT INFORMATION | |||||||||
| (In thousands) | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | Six Months Ended | ||||||||
| March 31, | March 31, | ||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||
| DSA | |||||||||
| Revenue | 39,054 | 18,751 | 71,879 | 36,636 | |||||
| Operating income | 3,752 | 3,769 | 9,794 | 7,046 | |||||
| Operating income as a % of total revenue | |||||||||
| Add back: | |||||||||
| Depreciation and amortization | 3,417 | 1,125 | 5,958 | 2,226 | |||||
| Start up costs | 1,474 | 202 | 2,431 | 362 | |||||
| Total non-GAAP adjustments to operating income | 4,891 | 1,327 | 8,389 | 2,588 | |||||
| Non-GAAP operating income | 8,643 | 5,096 | 18,183 | 9,634 | |||||
| Non-GAAP operating income as a % of DSA revenue | |||||||||
| Non-GAAP operating income as a % of total revenue | |||||||||
| RMS | |||||||||
| Revenue | 101,259 | N/A | 152,645 | N/A | |||||
| Operating income/(loss) | 22,562 | N/A | 22,642 | N/A | |||||
| Operating income/(loss) as a % of total revenue | N/A | N/A | |||||||
| Add back: | |||||||||
| Depreciation and amortization | 6,425 | N/A | 9,908 | N/A | |||||
| Amortization of inventory step up | 2,609 | N/A | 6,277 | N/A | |||||
| Other non-recurring, third party costs | 507 | N/A | 946 | N/A | |||||
| Total non-GAAP adjustments to operating income/(loss) | 9,541 | N/A | 17,131 | N/A | |||||
| Non-GAAP operating income/(loss) | 32,103 | N/A | 39,773 | N/A | |||||
| Non-GAAP operating income/(loss) as a % of RMS revenue | N/A | N/A | |||||||
| Non-GAAP operating income/(loss) as a % of total revenue | N/A | N/A | |||||||
| Unallocated Corporate G&A | (18,445 | ) | (4,290 | ) | (58,209 | ) | (7,553 | ) | |
| Unallocated corporate G&A as a % of total revenue | - | - | - | - | |||||
| Add back: | |||||||||
| Stock option expense | 1,141 | 279 | 25,073 | 460 | |||||
| United Kingdom lease liability reversal benefit | - | (179 | ) | - | (179 | ) | |||
| Acquisition and integration costs | 2,085 | 229 | 10,893 | 229 | |||||
| Total non-GAAP adjustments to unallocated corporate G&A | 3,226 | 329 | 35,966 | 510 | |||||
| Non-GAAP unallocated corporate G&A | (15,219 | ) | (3,961 | ) | (22,243 | ) | (7,043 | ) | |
| Non-GAAP unallocated corporate G&A as a % of total revenue | - | - | - | - | |||||
| Total | |||||||||
| Revenue | 140,313 | 18,751 | 224,524 | 36,636 | |||||
| Operating (loss) | 7,869 | (521 | ) | (25,773 | ) | (507 | ) | ||
| Operating (loss) as a % of total revenue | - | - | - | ||||||
| Add back: | |||||||||
| Depreciation and amortization | 9,842 | 1,125 | 15,866 | 2,190 | |||||
| Stock option expense | 1,141 | 279 | 25,073 | 460 | |||||
| United Kingdom lease liability reversal benefit | - | (179 | ) | - | (179 | ) | |||
| Acquisition and integration costs | 2,085 | 229 | 10,893 | 229 | |||||
| Amortization of inventory step up | 2,609 | - | 6,277 | - | |||||
| Start up costs | 1,474 | 202 | 2,431 | 362 | |||||
| Other non-recurring, third party costs | 507 | - | 946 | - | |||||
| Total non-GAAP adjustments to operating (loss) | 17,658 | 1,656 | 61,486 | 3,062 | |||||
| Non-GAAP operating income | 25,527 | 1,135 | 35,713 | 2,555 | |||||
| Non-GAAP operating income as a % of total revenue | |||||||||
| INOTIV, INC. | |||||||||||||
| RECONCILIATION OF GAAP TO ADJUSTED EBITDA | |||||||||||||
| (In thousands) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| March 31, | March 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| GAAP Consolidated net income (loss) | $ | (6,664 | ) | $ | (723 | ) | $ | (90,075 | ) | $ | (1,089 | ) | |
| Add back (a): | |||||||||||||
| Interest expense | 7,547 | 366 | 12,375 | 713 | |||||||||
| Income taxes (benefit) expense | 6,846 | 15 | (5,939 | ) | 48 | ||||||||
| Depreciation and amortization | 9,842 | 1,125 | 15,866 | 2,190 | |||||||||
| Stock option expense (1) | 1,141 | 279 | 25,073 | 460 | |||||||||
| United Kingdon lease liability reversal benefit | N/A | (179 | ) | N/A | (179 | ) | |||||||
| Acquisition and integration costs (2) | 2,085 | 229 | 10,893 | 229 | |||||||||
| Startup costs | 1,474 | 202 | 2,431 | 362 | |||||||||
| Unrealized foreign exchange (gain) loss | (134 | ) | N/A | 60 | N/A | ||||||||
| Loss on debt extinguishment | N/A | N/A | 877 | N/A | |||||||||
| Amortization of inventory step-up | 2,609 | - | 6,277 | - | |||||||||
| Other non-recurring, third party costs | 507 | - | 946 | - | |||||||||
| Loss (gain) on disposition of assets | 12 | - | (235 | ) | N/A | ||||||||
| Loss on fair value remeasurement of convertible notes (3) | N/A | N/A | 56,714 | N/A | |||||||||
| Adjusted EBITDA (b) | $ | 25,265 | $ | 1,314 | $ | 35,263 | $ | 2,734 | |||||
| (a) | Adjustments to certain GAAP reported measures for the three and six months ended March 31, 2022 and 2021 include, but are not limited to, the following: | |
| (1) | For the six months ended March 31, 2022, | |
| (2) | For the three months ended March 31, 2022, charges for legal services, accounting services, travel, and other related activities in connection with the acquisitions of Envigo, RSI, ILS, OBRC and Histion. For the six months ended March 31, 2022, charges for legal services, accounting services, travel, and other related activities in connection with the acquisitions of Plato BioPharma, Envigo, RSI, ILS, OBRC and Histion. | |
| (3) | For the six months ended March 31, 2022, loss of | |
| (b) | Adjusted EBITDA - Earnings before interest expense, income taxes (benefit) expense, depreciation and amortization, stock option expense, United Kingdom lease liability reversal benefit, acquisition and integration costs, startup costs, foreign exchange losses, loss on debt extinguishment, amortization of inventory step up, other non-recurring, third party costs, gain/loss on disposition of assets and loss on fair value remeasurement of the embedded derivative component of the convertible notes. | |
FAQ
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