Inotiv Reports First Quarter Financial Results for Fiscal 2025 and Provides Business Update
Inotiv (NOTV) reported Q1 FY2025 financial results showing an 11.5% revenue decline to $119.9 million compared to Q1 FY2024. The company experienced decreased revenue across both segments: Research Models & Services (RMS) declined 15.1% to $77.1 million, while Discovery & Safety Assessment (DSA) fell 4.2% to $42.8 million.
The company reported a net loss of $27.6 million (23.0% of revenue) compared to $15.8 million loss in Q1 FY2024. Adjusted EBITDA decreased to $2.6 million (2.2% of revenue) from $9.6 million in the prior year. The company strengthened its liquidity position by raising $27.5 million through a public offering of 6.9 million common shares at $4.25 per share.
DSA backlog stood at $130.4 million with a book-to-bill ratio of 1.01x. The company expects annual cost savings of $4.0-$5.0 million following the completion of its North American RMS site optimization plan.
Inotiv (NOTV) ha riportato i risultati finanziari del primo trimestre dell'anno fiscale 2025, evidenziando un calo dei ricavi dell'11,5% a 119,9 milioni di dollari rispetto al primo trimestre dell'anno fiscale 2024. L'azienda ha registrato una diminuzione dei ricavi in entrambi i segmenti: i Modelli di Ricerca e i Servizi (RMS) sono diminuiti del 15,1% a 77,1 milioni di dollari, mentre la Valutazione della Scoperta e della Sicurezza (DSA) è scesa del 4,2% a 42,8 milioni di dollari.
L'azienda ha riportato una perdita netta di 27,6 milioni di dollari (23,0% dei ricavi) rispetto a una perdita di 15,8 milioni di dollari nel primo trimestre dell'anno fiscale 2024. L'EBITDA rettificato è diminuito a 2,6 milioni di dollari (2,2% dei ricavi) dai 9,6 milioni dell'anno precedente. L'azienda ha rafforzato la propria posizione di liquidità raccogliendo 27,5 milioni di dollari tramite un'offerta pubblica di 6,9 milioni di azioni ordinarie a 4,25 dollari per azione.
Il portafoglio di progetti DSA si è attestato a 130,4 milioni di dollari, con un rapporto di fatturato di 1,01x. L'azienda prevede risparmi annuali sui costi di 4,0-5,0 milioni di dollari a seguito del completamento del piano di ottimizzazione del sito RMS in Nord America.
Inotiv (NOTV) reportó los resultados financieros del primer trimestre del año fiscal 2025, mostrando una reducción de ingresos del 11,5% a 119,9 millones de dólares en comparación con el primer trimestre del año fiscal 2024. La compañía experimentó una disminución de los ingresos en ambos segmentos: Modelos de Investigación y Servicios (RMS) disminuyeron un 15,1% a 77,1 millones de dólares, mientras que la Evaluación de Descubrimiento y Seguridad (DSA) cayó un 4,2% a 42,8 millones de dólares.
La compañía reportó una pérdida neta de 27,6 millones de dólares (23,0% de los ingresos) en comparación con una pérdida de 15,8 millones de dólares en el primer trimestre del año fiscal 2024. El EBITDA ajustado disminuyó a 2,6 millones de dólares (2,2% de los ingresos) desde 9,6 millones del año anterior. La compañía fortaleció su posición de liquidez al recaudar 27,5 millones de dólares mediante una oferta pública de 6,9 millones de acciones comunes a 4,25 dólares por acción.
El backlog de DSA se situó en 130,4 millones de dólares con una relación de libros por factura de 1,01x. La compañía espera ahorros anuales en costos de 4,0-5,0 millones de dólares tras la finalización de su plan de optimización del sitio RMS en América del Norte.
Inotiv (NOTV)는 2025 회계연도 1분기 재무 결과를 발표하며 11.5%의 매출 감소를 기록하여 1억 1,990만 달러에 이르렀다고 전했습니다. 회사는 두 개의 세그먼트 모두에서 매출 감소를 겪었으며, 연구 모델 및 서비스(RMS)는 15.1% 감소하여 7,710만 달러에 이르렀고, 발견 및 안전 평가(DSA)는 4.2% 하락하여 4,280만 달러에 그쳤습니다.
회사는 2760만 달러의 순손실을 기록했으며 (매출의 23.0%), 이는 2024 회계연도 1분기의 1580만 달러 손실과 비교됩니다. 조정된 EBITDA는 전년의 960만 달러에서 260만 달러(매출의 2.2%)로 감소했습니다. 회사는 1주당 4.25달러에 690만 주를 공개 모집하여 2,750만 달러를 조달함으로써 유동성 상황을 강화했습니다.
DSA의 미결 주문자는 1억 3,040만 달러에 달하며, 장부 대비 송장 비율은 1.01배입니다. 회사는 북미 RMS 사이트 최적화 계획 완료 후 연간 비용 절감 효과를 400만에서 500만 달러로 예상하고 있습니다.
Inotiv (NOTV) a publié les résultats financiers du premier trimestre de l'exercice 2025, montrant une baisse de 11,5 % des revenus à 119,9 millions de dollars par rapport au premier trimestre de l'exercice 2024. L'entreprise a connu une baisse de revenus dans les deux segments : les Modèles de Recherche et Services (RMS) ont chuté de 15,1 % à 77,1 millions de dollars, tandis que l'Évaluation de la Découverte et de la Sécurité (DSA) a baissé de 4,2 % à 42,8 millions de dollars.
L'entreprise a rapporté une perte nette de 27,6 millions de dollars (23,0 % des revenus) par rapport à une perte de 15,8 millions de dollars au premier trimestre de l'exercice 2024. L'EBITDA ajusté a diminué à 2,6 millions de dollars (2,2 % des revenus) contre 9,6 millions de dollars l'année précédente. L'entreprise a renforcé sa position de liquidité en levant 27,5 millions de dollars grâce à une offre publique de 6,9 millions d'actions ordinaires à 4,25 dollars par action.
Le carnet de commandes DSA s'élevait à 130,4 millions de dollars avec un ratio livre à facturer de 1,01x. L'entreprise prévoit des économies annuelles sur les coûts de 4,0 à 5,0 millions de dollars suite à l'achèvement de son plan d'optimisation du site RMS en Amérique du Nord.
Inotiv (NOTV) berichtete über die finanziellen Ergebnisse des ersten Quartals des Geschäftsjahres 2025 und verzeichnete einen Umsatzrückgang von 11,5% auf 119,9 Millionen Dollar im Vergleich zum ersten Quartal des Geschäftsjahres 2024. Das Unternehmen erlebte einen Rückgang der Einnahmen in beiden Geschäftsbereichen: Forschung Modelle & Dienstleistungen (RMS) fielen um 15,1% auf 77,1 Millionen Dollar, während Bewertung der Entdeckung & Sicherheit (DSA) um 4,2% auf 42,8 Millionen Dollar fiel.
Das Unternehmen meldete einen Nettoverlust von 27,6 Millionen Dollar (23,0% des Umsatzes) im Vergleich zu einem Verlust von 15,8 Millionen Dollar im ersten Quartal des Geschäftsjahres 2024. Bereinigtes EBITDA fiel auf 2,6 Millionen Dollar (2,2% des Umsatzes) gegenüber 9,6 Millionen Dollar im Vorjahr. Das Unternehmen stärkte seine Liquiditätsposition, indem es 27,5 Millionen Dollar durch ein öffentliches Angebot von 6,9 Millionen Stammaktien zum Preis von 4,25 Dollar pro Aktie einbrachte.
Der DSA-Auftragspool betrug 130,4 Millionen Dollar mit einem Book-to-Bill-Verhältnis von 1,01x. Das Unternehmen erwartet jährliche Kosteneinsparungen von 4,0 bis 5,0 Millionen Dollar nach Abschluss seines Optimierungsplans für die RMS-Standorte in Nordamerika.
- Raised $27.5 million in net proceeds through equity offering
- Expected annual cost savings of $4.0-$5.0 million from RMS site optimization
- DSA backlog maintained at $130.4 million
- Book-to-bill ratio above 1.0x at 1.01x for DSA services
- Revenue declined 11.5% to $119.9 million
- Net loss increased to $27.6 million from $15.8 million YoY
- Adjusted EBITDA decreased to $2.6 million from $9.6 million YoY
- RMS revenue dropped 15.1% due to lower NHP pricing
- DSA revenue declined 4.2% due to decreased discovery service revenue
Insights
The Q1 FY2025 results reveal significant operational headwinds for Inotiv, with concerning trends across key metrics. The 11.5% revenue decline to
The deteriorating profitability metrics are particularly worrying. The net loss margin expanded to
The company's financial position remains precarious despite the recent
The DSA segment's book-to-bill ratio of 1.01x and relatively stable backlog of
- Enhanced liquidity by
$27.5 million through the issuance of 6.9 million common shares - First quarter fiscal 2025 revenue declined
11.5% to$119.9 million - Conference call scheduled for today at 4:30 pm ET
WEST LAFAYETTE, Ind., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Inotiv, Inc. (Nasdaq: NOTV) (the “Company”), 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 (“Q1 FY 2025”) ended December 31, 2024.
Revenue by Segment (in millions of USD)
| Three Months Ended December 31, | % change | |||||||
| 2024 | 2023 | |||||||
| (unaudited) | (unaudited) | |||||||
| DSA (Discovery & Safety Assessment) | $ | 42.8 | $ | 44.7 | (4.2 | )% | ||
| RMS (Research Models & Services) | $ | 77.1 | $ | 90.8 | (15.1 | )% | ||
| Total | $ | 119.9 | $ | 135.5 | (11.5 | )% | ||
Management Commentary
Robert Leasure Jr., President and Chief Executive Officer, commented, “We are dedicated to building a stronger, more consistent company that delivers value to our clients, employees, and shareholders. In the first quarter of fiscal 2025, we continued to make progress in our top priorities, such as unifying our operations under one brand and as one company, strengthening our financial stability, and enhancing the client experience. Our recent equity offering generated
"To reduce revenue volatility, we have expanded our NHP client base and secured pre-sales for calendar year 2025. Additionally, we expect our colony management services to experience steady growth and increased revenue, building on the momentum from 2024. We are continuing to advance the optimization of our North American transportation and distribution systems for a smoother, more reliable experience for our clients while improving overall efficiency. Finally, once we complete the next phase of our North American RMS site optimization plan, we anticipate annual cost savings of approximately
Highlights
Q1 FY 2025 Highlights
- Revenue was
$119.9 million in Q1 FY 2025, a decrease of$15.6 million or11.5% , compared to$135.5 million during the three months ended December 31, 2023 (“Q1 FY 2024”), primarily driven by a decrease of$13.7 million , or15.1% , in Research Models and Services (“RMS”) revenue and a$1.9 million , or4.2% , decrease in Discovery and Safety Assessment ("DSA") revenue. - Consolidated net loss for Q1 FY 2025 was
$27.6 million , or23.0% of total revenue, compared to consolidated net loss of$15.8 million , or11.7% of total revenue, in Q1 FY 2024. - Adjusted EBITDA1 in Q1 FY 2025 was
$2.6 million , or2.2% of total revenue, compared to$9.6 million , or7.1% of total revenue, in Q1 FY 2024. - Book-to-bill ratio for Q1 FY 2025 was 1.01x for the DSA services business.
- DSA backlog was
$130.4 million at December 31, 2024 compared to$129.9 million at September 30, 2024 and$152.3 million at December 31, 2023.
1 This is a non-GAAP financial measure. Refer to “Note on Non-GAAP Financial Measures” in this release for further information.
Operational and Capital Resources Highlights
- On October 24, 2024, the Company and Orient BioResource Center entered into a Third Amendment to extend the maturity date of the Seller Payable to January 27, 2026.
- In closings on December 19, 2024 and December 30, 2024, the Company raised approximately
$27.5 million in net proceeds from its underwritten public offering of a total of 6.9 million common shares at a price to the public of$4.25 per share.
First Quarter Fiscal 2025 Financial Results (Three Months Ended December 31, 2024)
Revenue decreased
Operating loss was
Cash and cash equivalents of
Webcast and Conference Call
Management will host a conference call on Wednesday, February 5, 2025, at 4:30 pm ET to discuss first quarter fiscal 2025 results.
Interested parties may participate in the call by dialing:
- (800) 579-2543 (Domestic)
- (785) 424-1789 (International)
- "Inotiv" (Conference ID)
The live conference call webcast will be accessible in the Investors section of the Company’s web site and directly via the following link:
https://viavid.webcasts.com/starthere.jsp?ei=1703666&tp_key=aaee0f56f1
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://ir.inotiv.com/events-and-presentations/default.aspx.
Note on Non-GAAP Financial Measures
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 and Adjusted EBITDA as a percentage of total revenue for the three months ended December 31, 2024 and 2023 and selected business segment information for those periods. Adjusted EBITDA as reported herein refers to a financial measure that excludes from consolidated net loss, statements of operations line items interest expense and income tax benefit/provision, as well as non-cash charges for depreciation and amortization, stock compensation expense, acquisition and integration costs, startup costs, restructuring costs, unrealized foreign exchange (gain) loss, amortization of inventory step up, (gain) loss on disposition of assets and other unusual, third party costs. The adjusted business segment information excludes from operating loss and unallocated corporate operating expenses for these same expenses. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.
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. Management strongly encourages investors to review the Company's condensed 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 and medical devices to market. Inotiv is committed to supporting discovery and development objectives as well as helping researchers realize the full potential of their critical research and development projects, all while working together to build a healthier and safer world. Further information about Inotiv can be found here: https://www.inotiv.com/.
This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, statements regarding our intent, belief or current expectations with respect to (i) our strategic plans; (ii) trends in the demand for our services and products; (iii) trends in the industries that consume our services and products; (iv) market and company-specific impacts of NHP supply and demand matters; (v) compliance with the Resolution Agreement and Plea Agreement and the expected impacts on the Company related to the compliance plan and compliance monitor, and the expected amounts, timing and expense treatment of cash payments and other investments thereunder; (vi) our ability to service our outstanding indebtedness and to comply or regain compliance with financial covenants, including those established by the Seventh Amendment to our Credit Agreement; (vii) our current and forecasted cash position; (viii) our ability to make capital expenditures, fund our operations and satisfy our obligations; (ix) our ability to manage recurring and unusual costs; (x) our ability to execute on and realize the expected benefits related to our restructuring and site optimization plans; (xi) our expectations regarding the volume of new bookings, pre-sales, pricing, cost savings initiatives, expansion of services, operating income or losses and liquidity; (xii) our ability to effectively fill the recent expanded capacity or any future expansion or acquisition initiatives undertaken by us; (xiii) our ability to develop and build infrastructure and teams to manage growth and projects; (xiv) our ability to continue to retain and hire key talent; (xv) our ability to market our services and products under our corporate name and relevant brand names; (xvi) our ability to develop new services and products; (xvii) our ability to negotiate amendments to the Credit Agreement or obtain waivers related to the financial covenants defined within the Credit Agreement, including those detailed in the Company's filings with the U.S. Securities and Exchange Commission. Further discussion of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in our Annual Report on Form 10-K as filed on December 4, 2024, as well as other filings we make with the Securities and Exchange Commission.
| Company Contact | Investor Relations |
| Inotiv, Inc. | LifeSci Advisors |
| Beth A. Taylor, Chief Financial Officer | Steve Halper |
| (765) 497-8381 | (646) 876-6455 |
| beth.taylor@inotiv.com | shalper@lifesciadvisors.com |
| INOTIV, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Service revenue | $ | 53,557 | $ | 53,863 | |||
| Product revenue | 66,319 | 81,638 | |||||
| Total revenue | $ | 119,876 | $ | 135,501 | |||
| Costs and expenses: | |||||||
| Cost of services provided (excluding depreciation and amortization of intangible assets) | 39,244 | 39,077 | |||||
| Cost of products sold (excluding depreciation and amortization of intangible assets) | 55,594 | 62,951 | |||||
| Selling | 5,137 | 5,348 | |||||
| General and administrative | 19,152 | 19,927 | |||||
| Depreciation and amortization of intangible assets | 14,179 | 14,250 | |||||
| Other operating expense | 2,077 | 3,319 | |||||
| Operating loss | $ | (15,507 | ) | $ | (9,371 | ) | |
| Other (expense) income: | |||||||
| Interest expense | (13,838 | ) | (11,364 | ) | |||
| Other (expense) income | (463 | ) | 1,413 | ||||
| Loss before income taxes | $ | (29,808 | ) | $ | (19,322 | ) | |
| Income tax benefit | 2,178 | 3,494 | |||||
| Consolidated net loss | $ | (27,630 | ) | $ | (15,828 | ) | |
| Less: Net loss attributable to noncontrolling interests | — | (440 | ) | ||||
| Net loss attributable to common shareholders | $ | (27,630 | ) | $ | (15,388 | ) | |
| Loss per common share | |||||||
| Net loss attributable to common shareholders: | |||||||
| Basic | $ | (1.02 | ) | $ | (0.60 | ) | |
| Diluted | $ | (1.02 | ) | $ | (0.60 | ) | |
| Weighted-average number of common shares outstanding: | |||||||
| Basic | 27,160 | 25,764 | |||||
| Diluted | 27,160 | 25,764 | |||||
| INOTIV, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) | |||||||
| December 31, | September 30, | ||||||
| 2024 | 2024 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 38,043 | $ | 21,432 | |||
| Trade receivables and contract assets, net of allowances for credit losses of | 70,140 | 73,560 | |||||
| Inventories, net | 31,557 | 18,173 | |||||
| Prepaid expenses and other current assets | 29,661 | 50,248 | |||||
| Assets held for sale | 2,016 | — | |||||
| Total current assets | 171,417 | 163,413 | |||||
| Property and equipment, net | 182,279 | 188,328 | |||||
| Operating lease right-of-use assets, net | 48,827 | 49,165 | |||||
| Goodwill | 94,286 | 94,286 | |||||
| Other intangible assets, net | 264,767 | 274,396 | |||||
| Other assets | 11,331 | 11,773 | |||||
| Total assets | $ | 772,907 | $ | 781,361 | |||
| Liabilities and shareholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 24,954 | $ | 33,526 | |||
| Accrued expenses and other current liabilities | 25,500 | 28,218 | |||||
| Fees invoiced in advance | 46,129 | 41,986 | |||||
| Current portion of long-term operating lease | 9,505 | 11,774 | |||||
| Current portion of long-term debt | 3,037 | 3,538 | |||||
| Total current liabilities | 109,125 | 119,042 | |||||
| Long-term operating leases, net | 41,588 | 40,010 | |||||
| Long-term debt, less current portion, net of debt issuance costs | 392,978 | 389,801 | |||||
| Other long-term liabilities | 35,360 | 34,963 | |||||
| Deferred tax liabilities, net | 24,024 | 27,041 | |||||
| Total liabilities | 603,075 | 610,857 | |||||
| Shareholders’ equity: | |||||||
| Common shares, no par value: | |||||||
| Authorized 74,000,000 shares at December 31, 2024 and at September 30, 2024; 33,717,662 issued and outstanding at December 31, 2024 and 26,015,129 at September 30, 2024 | 8,391 | 6,466 | |||||
| Additional paid-in capital | 752,136 | 724,789 | |||||
| Accumulated deficit | (589,794 | ) | (562,163 | ) | |||
| Accumulated other comprehensive (loss) income | (901 | ) | 1,412 | ||||
| Total equity | 169,832 | 170,504 | |||||
| Total liabilities and shareholders’ equity | $ | 772,907 | $ | 781,361 | |||
| INOTIV, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Operating activities: | |||||||
| Consolidated net loss | $ | (27,630 | ) | $ | (15,828 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 14,179 | 14,250 | |||||
| Employee stock compensation expense | 1,770 | 1,897 | |||||
| Changes in deferred taxes | (2,802 | ) | (5,318 | ) | |||
| Provision for expected credit losses | (453 | ) | (438 | ) | |||
| Amortization of debt issuance costs and original issue discount | 1,288 | 846 | |||||
| Non-cash interest and accretion expense | 3,076 | 1,688 | |||||
| Other non-cash operating activities | 643 | (1,147 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Trade receivables and contract assets | 3,391 | (1,497 | ) | ||||
| Inventories | (13,632 | ) | 6,058 | ||||
| Prepaid expenses and other current assets | 19,606 | 7,096 | |||||
| Operating lease right-of-use assets and liabilities, net | (353 | ) | 138 | ||||
| Accounts payable | (7,240 | ) | (2,845 | ) | |||
| Accrued expenses and other current liabilities | (2,343 | ) | (2,497 | ) | |||
| Fees invoiced in advance | 5,071 | (20,012 | ) | ||||
| Other asset and liabilities, net | 932 | 11,064 | |||||
| Net cash used in operating activities | (4,497 | ) | (6,545 | ) | |||
| Investing activities: | |||||||
| Capital expenditures | (4,459 | ) | (5,572 | ) | |||
| Proceeds from sale of property and equipment | — | 1,529 | |||||
| Net cash used in investing activities | (4,459 | ) | (4,043 | ) | |||
| Financing activities: | |||||||
| Payments on revolving credit facility | (20,000 | ) | — | ||||
| Payments on senior term notes and delayed draw term loans | (691 | ) | (691 | ) | |||
| Borrowings on revolving credit facility | 20,000 | — | |||||
| Issuance of common shares | 27,524 | — | |||||
| Other financing activities, net | (708 | ) | (2,230 | ) | |||
| Net cash provided by (used in) financing activities | 26,125 | (2,921 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (558 | ) | 18 | ||||
| Net increase (decrease) in cash and cash equivalents | 16,611 | (13,491 | ) | ||||
| Cash and cash equivalents at beginning of period | 21,432 | 35,492 | |||||
| Cash and cash equivalents at end of period | $ | 38,043 | $ | 22,001 | |||
| Supplemental disclosure of cash flow information: | |||||||
| Cash paid for interest | $ | 10,888 | $ | 11,068 | |||
| Income taxes paid, net | $ | 271 | $ | 298 | |||
| INOTIV, INC. RECONCILIATION OF GAAP TO NON-GAAP SELECT BUSINESS SEGMENT INFORMATION (In thousands) (Unaudited) | |||||
| Three Months Ended December 31, | |||||
| 2024 | 2023 | ||||
| DSA | |||||
| Revenue | 42,822 | 44,698 | |||
| Operating income | 1,946 | 1,593 | |||
| Operating income as a % of total revenue | 1.6 | % | 1.2 | % | |
| Add back: | |||||
| Depreciation and amortization | 4,583 | 4,409 | |||
| Restructuring costs (1) | — | 113 | |||
| Startup costs (2) | 559 | 830 | |||
| Total non-GAAP adjustments to operating income | 5,142 | 5,352 | |||
| Non-GAAP operating income | 7,088 | 6,945 | |||
| Non-GAAP operating income as a % of DSA revenue | 16.6 | % | 15.5 | % | |
| Non-GAAP operating income as a % of total revenue | 5.9 | % | 5.1 | % | |
| RMS | |||||
| Revenue | 77,054 | 90,803 | |||
| Operating (loss) income | (1,185 | ) | 5,078 | ||
| Operating (loss) income as a % of total revenue | (1.0 | %) | 3.7 | % | |
| Add back: | |||||
| Depreciation and amortization | 9,438 | 9,737 | |||
| Restructuring costs (1) | 224 | 921 | |||
| Amortization of inventory step up | — | 102 | |||
| Other unusual, third party costs (3) | 961 | 1,086 | |||
| Total non-GAAP adjustments to operating (loss) income | 10,623 | 11,846 | |||
| Non-GAAP operating income | 9,438 | 16,924 | |||
| Non-GAAP operating income as a % of RMS revenue | 12.2 | % | 18.6 | % | |
| Non-GAAP operating income as a % of total revenue | 7.9 | % | 12.5 | % | |
| Unallocated Corporate Operating Loss | (16,268 | ) | (16,042 | ) | |
| Unallocated corporate operating loss as a % of total revenue | (13.6)% | )% | (11.8 | )% | |
| Add back: | |||||
| Depreciation and amortization | 158 | 104 | |||
| Stock compensation expense | 1,770 | 1,897 | |||
| Acquisition and integration costs | — | 70 | |||
| Total non-GAAP adjustments to operating loss | 1,928 | 2,071 | |||
| Non-GAAP operating loss | (14,340 | ) | (13,971 | ) | |
| Non-GAAP operating loss as a % of total revenue | (12.0 | )% | (10.3 | )% | |
| Total | |||||
| Revenue | 119,876 | 135,501 | |||
| Operating loss | (15,507 | ) | (9,371 | ) | |
| Operating loss as a % of total revenue | (12.9 | )% | (6.9 | %) | |
| Add back: | |||||
| Depreciation and amortization | 14,179 | 14,250 | |||
| Stock compensation expense | 1,770 | 1,897 | |||
| Restructuring costs (1) | 224 | 1,034 | |||
| Acquisition and integration costs | — | 70 | |||
| Amortization of inventory step up | — | 102 | |||
| Startup costs (2) | 559 | 830 | |||
| Other unusual, third party costs (3) | 961 | 1,086 | |||
| Total non-GAAP adjustments to operating loss | 17,693 | 19,269 | |||
| Non-GAAP operating income | 2,186 | 9,898 | |||
| Non-GAAP operating income as a % of total revenue | 1.8 | % | 7.3 | % | |
| (a) | Adjustments to certain GAAP reported measures for the three months ended December 31, 2024 and 2023 include, but are not limited to, the following: | ||
| (1) | For the three months ended December 31, 2024 and 2023, primarily represents costs incurred in connection with the exit of multiple sites and the enablement of the in-house integration of Inotiv’s North American transportation operations as previously disclosed. | ||
| (2) | For the three months ended December 31, 2024 and 2023, primarily represents costs related to the development and initiation of new service offerings that are not yet revenue generating for the respective periods. | ||
| (3) | For the three months ended December 31, 2024, primarily represents third party legal costs incurred in connection with the Department of Justice and certain other legal matters. For the three months ended December 31, 2023, primarily represents third party legal costs incurred in connection with the Department of Justice and certain remediation costs. | ||
| INOTIV, INC. RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (In thousands) (Unaudited) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| GAAP Consolidated Net Loss | $ | (27,630 | ) | $ | (15,828 | ) | |
| Adjustments (a) | |||||||
| Interest expense | 13,838 | 11,364 | |||||
| Income tax benefit | (2,178 | ) | (3,494 | ) | |||
| Depreciation and amortization | 14,179 | 14,250 | |||||
| Stock compensation expense | 1,770 | 1,897 | |||||
| Acquisition and integration costs | — | 70 | |||||
| Startup costs (1) | 559 | 830 | |||||
| Restructuring costs (2) | 224 | 1,034 | |||||
| Unrealized foreign exchange (gain) loss | 825 | (1,029 | ) | ||||
| Amortization of inventory step up | — | 102 | |||||
| (Gain) loss on disposition of assets | 62 | (666 | ) | ||||
| Other unusual, third party costs (3) | 961 | 1,086 | |||||
| Adjusted EBITDA | $ | 2,610 | $ | 9,616 | |||
| GAAP consolidated net loss as a percent of total revenue | (23.0 | )% | (11.7 | )% | |||
| Adjustments as a percent of total revenue | 25.2 | % | 18.8 | % | |||
| Adjusted EBITDA as a percent of total revenue | 2.2 | % | 7.1 | % | |||
| (a) | Adjustments to certain GAAP reported measures for the three months ended December 31, 2024 and 2023 include, but are not limited to, the following: | ||
| (1) | For the three months ended December 31, 2024 and 2023, primarily represents costs related to the development and initiation of new service offerings that are not yet revenue generating for the respective periods. | ||
| (2) | For the three months ended December 31, 2024 and 2023, primarily represents costs incurred in connection with the exit of multiple sites and the enablement of the in-house integration of Inotiv’s North American transportation operations as previously disclosed. | ||
| (3) | For the three months ended December 31, 2024, primarily represents third party legal costs incurred in connection with the Department of Justice and certain other legal matters. For the three months ended December 31, 2023, primarily represents third party legal costs incurred in connection with the Department of Justice and certain remediation costs. | ||
FAQ
What caused Inotiv's (NOTV) revenue decline in Q1 FY2025?
How much did Inotiv (NOTV) raise in its December 2024 public offering?
What is Inotiv's (NOTV) expected cost savings from its North American RMS optimization plan?
How much was Inotiv's (NOTV) Q1 FY2025 net loss?
What was Inotiv's (NOTV) DSA backlog as of December 31, 2024?
