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BioLife Solutions(BLFS) - 2024 Q4 - Earnings Call Transcript
2024-03-01 03:06
Financial Data and Key Metrics Changes - Total revenue for 2023 was $143.3 million, an 11% decrease compared to 2022, with ex-COVID revenue decreasing 4% [10] - Q4 revenue was $32.7 million, representing a 26% year-over-year decrease, and a 23% decline when excluding COVID-related revenue from Q4 2022 [21] - Adjusted gross margin for Q4 was 35%, up from 32% in the prior year, primarily due to product mix and lower warranty expenses [23] - Adjusted operating loss for Q4 2023 was $9.3 million, compared to $8.2 million in Q4 2022 [25] - Adjusted EBITDA for Q4 2023 was $700,000, down from $1.7 million in the prior year but increased sequentially by $3.8 million from Q3 [26] Business Line Data and Key Metrics Changes - Cell processing platform revenue for 2023 declined 4% to $65.8 million, with a 6% decrease in biopreservation media revenue, partially offset by a 9% increase in other cell processing tools [10] - Biostorage and services platform revenue decreased 2% to $25.9 million, but grew 61% when excluding prior year COVID-related revenue [12] - Freezer and thaw platform revenue declined 23% to $15.1 million, primarily due to a difficult capital equipment environment [13] Market Data and Key Metrics Changes - The top 20 media customers accounted for 78% of media revenue, which was up slightly by 1% year-over-year [11] - Customers with commercially approved therapies accounted for an estimated 52% of direct media revenue in 2023, compared to 49% in 2022 [11] - The cell and gene therapy (CGT) industry is expected to grow at a 20% to 25% CAGR through 2033 [7] Company Strategy and Development Direction - The company is refocusing on higher margin recurring revenue streams and divesting freezer product lines to improve financial performance [6][14] - The company aims to leverage its market position in biopreservation media to drive adoption of other tools and services in its portfolio [89] - The 2024 revenue guidance is set between $95.5 million and $100 million, reflecting a cautious approach despite some optimism in market conditions [18] Management's Comments on Operating Environment and Future Outlook - Management noted that 2023 was a challenging year for the CGT industry, but there are early signs of stabilization and momentum [9] - The company expects a sustained recovery as 2024 progresses, with a focus on managing inventory normalization [9] - Management expressed confidence in the company's position to benefit from the growth of the CGT market, despite a cautious outlook for 2024 [89] Other Important Information - The company is in the process of divesting its freezer product lines, with two signed letters of intent (LOIs) and expects to close these transactions within 45 to 60 days [31][45] - The cash and marketable securities balance at December 31, 2023, was $52.3 million, up from $42.2 million at September 30, 2023 [27] Q&A Session Summary Question: Does the LOI allow the company to move the freezer assets to discontinued operations? - Management stated that a signed document is required to move them into discontinued operations, and they are working on finalizing the legal documents [31][32] Question: Can you discuss the steps taken to achieve positive EBITDA? - Management highlighted a reduction in force and control over discretionary expenses as key factors contributing to positive EBITDA [34][35] Question: How confident is the company about concluding the freezer sale? - Management expressed a 70% to 80% confidence level regarding the completion of the freezer sale within the expected timeframe [45][46] Question: What are the expectations for media revenue in 2024? - Management indicated that the first half of 2024 might be flat compared to the second half of 2023, with expectations of an uptake in the latter half [49] Question: What is the impact of the freezer business on adjusted EBITDA? - Management noted that they do not provide specific information on segment reporting but will clarify post-divestiture [81]
BioLife Solutions(BLFS) - 2023 Q4 - Annual Report
2024-02-29 22:16
Financial Performance - Total revenue for the year ended December 31, 2023, was $143.3 million, a decrease of $18.5 million or 11% compared to $161.8 million in 2022[245]. - Product revenue from Freezer and thaw decreased by $16.1 million or 24% to $50.6 million in 2023, while Cell processing revenue decreased by $2.7 million or 4% to $65.8 million[245]. - The company reported a net loss of $66.4 million for the year ended December 31, 2023, with cash used in operating activities amounting to $12.5 million[259]. - Revenue concentration with one customer decreased to 16% in 2023 from 18% in 2022, indicating a more diversified customer base[278]. Expenses - General and administrative expenses increased by $8.1 million or 17% in 2023, primarily due to increased consulting fees related to strategic transactions[248]. - Sales and marketing expenses increased by $3.0 million, or 14%, in 2023, primarily due to increased stock compensation and advertising[280]. - Research and development expenses rose by $4.0 million, or 27%, in 2023, mainly due to increased stock-based compensation and scrapped materials for a future product[281]. Cash Flow and Liquidity - Cash and cash equivalents increased by $15.9 million or 82% to $35.4 million as of December 31, 2023, compared to $19.4 million in 2022[256]. - The company reported a net increase in cash and cash equivalents of $15.9 million in 2023, a significant improvement compared to a decrease of $50.3 million in 2022[290]. - Cash provided by financing activities was $10.6 million in 2023, primarily due to a private placement of $10.4 million[292]. - The company believes its liquidity requirements will be satisfied for at least the next twelve months through cash, cash equivalents, and credit lines[288]. Asset Impairment - The company recorded asset impairment charges of $15.5 million in the third quarter of 2023, compared to $69.9 million and $40.5 million in 2022[250]. - The Company recognized non-cash impairment charges totaling $15.5 million for definite-lived intangible assets as of September 30, 2023, including $9.7 million for property and equipment, $3.1 million for acquired technology, $0.2 million for customer relationships, and $2.5 million for tradename[319]. - The company experienced a non-cash impairment charge of $9.7 million on property and equipment and $5.8 million on definite-lived intangible assets due to market price decreases[318]. - The Company experienced a significant decline in market capitalization in 2022, leading to an interim quantitative impairment test for goodwill and intangible assets[321]. Strategic Plans and Transactions - The company plans to expand its cell and gene therapy tools and services business, focusing on sustaining product revenue and profits[265]. - The company is actively evaluating strategic transactions, including acquisitions of complementary products and technologies, which may require additional financing[266]. - The Sexton Merger had a fair value of net tangible assets acquired at approximately $4.1 million, with residual goodwill of approximately $28.5 million[267]. - The fair value of the net tangible assets acquired in the GCI Merger was $740,000, with residual goodwill of $137.8 million[300]. Fair Value and Currency Translation - The fair value of identifiable intangible assets is determined using an income approach, estimating after-tax cash flows and discounting them to present value[236]. - Fair value determinations are sensitive to changes in assumptions, with potential impairment risks for the Company's reporting unit and intangible assets if future growth rates and cash flows do not meet expectations[320]. - The month-end exchange rates indicated a decrease in translation of 2023 earnings into U.S. dollars by $150 million and a decrease in translation of net assets of foreign subsidiaries by $187 million[323]. - The company had U.S. federal net operating loss carryforwards of approximately $151.9 million as of December 31, 2023, with $39.2 million expiring from 2024 through 2037[243].
BioLife Solutions to Report Fourth Quarter and Full Year 2023 Financial Results and Business Update on February 29, 2024
Prnewswire· 2024-02-20 13:03
BOTHELL, Wash., Feb. 20, 2024 /PRNewswire/ -- BioLife Solutions, Inc. (NASDAQ: BLFS), a leading supplier of class-defining bioproduction tools and services for the cell and gene therapies ("CGT") and broader biopharma markets, today announced the Company's fourth quarter and full year 2023 financial results will be released after market close on Thursday, February 29, 2024. The Company will host a conference call and live webcast at 4:30pm ET (1:30pm PT) that day. Management will provide an overview of the ...
BioLife Solutions(BLFS) - 2023 Q3 - Earnings Call Presentation
2023-11-10 04:10
Company Overview - Origin Materials is described as the world's leading carbon negative materials company[1,28] - The company possesses disruptive materials technology and a decarbonizing platform technology[13] - The company's core technology is protected in key countries[29] Financial Performance & Outlook - Customer demand exceeds $10 billion, a tenfold increase since February 2021[9,17] - Q3 2023 revenue is expected to be $25 to $30 million[35] - Adjusted EBITDA loss for Q3 2023 is projected to be $45 million to $50 million[35] Technology & Production - Origin 1 has commenced commercial-scale production[31] - Timber feedstocks are approximately 10 times cheaper than bio alternatives[9] - The company holds 33 patent families as of November 9, 2023[9,13]
BioLife Solutions(BLFS) - 2023 Q3 - Earnings Call Transcript
2023-11-10 03:27
Financial Data and Key Metrics Changes - Adjusted operating expenses for Q3 2023 totaled $24.4 million, an increase from $20.8 million in the prior year, primarily due to $2.9 million in severance costs [1] - Adjusted EBITDA for Q3 2023 was negative $3.1 million compared to positive $1.8 million in the prior year, primarily due to lower biopreservation media revenue [79] - GAAP net loss was $29.1 million in Q3 2023, compared to $10.3 million in the prior year [54] Business Line Data and Key Metrics Changes - Revenue for the cell processing platform decreased by 26% year-over-year, with a 29% sequential decrease compared to Q2 [75][45] - Biostorage services platform revenue for Q3 was $6.6 million, a decrease of 10% year-over-year, but excluding COVID-related revenue from Q3 2022, revenue increased by 50% [76] - Freezers and Thaw Systems platform revenue for Q3 was $13.4 million, a decrease of 13% over the same period in 2022 [52] Market Data and Key Metrics Changes - The company expects to come in at the low end of its revenue guidance for 2023, projecting total revenue of approximately $144 million [3] - The company noted that macro headwinds and global economic uncertainties, including pharma destocking and a constrained biotech funding environment, have persisted throughout the third quarter [65] Company Strategy and Development Direction - The company is focused on divesting its freezer business to refocus on high-margin cell processing products and biostorage services [48] - The company aims to expand its biostorage capacity in existing locations and explore new strategic sites for further growth [72] - Management is optimistic about the growth potential in the cell and gene therapy market, with a focus on profitable growth [40][42] Management's Comments on Operating Environment and Future Outlook - Management believes that the challenges faced are transient and anticipates a recovery in customer orders as inventory levels normalize [111] - The company is confident that it will emerge stronger and more agile post-divestiture of the freezer business [30] - Management expressed enthusiasm about the opportunities ahead, particularly in the cell and gene therapy market [40] Other Important Information - The company reduced its corporate non-freeze operations headcount by 10% in anticipation of the divestiture [53] - Cash and marketable securities balance at September 30, 2023, was $42.2 million, down from $48.1 million at June 30, 2023 [55] Q&A Session Summary Question: What is the outlook for the fourth quarter? - Management indicated that they feel good about Q4 performance relative to guidance, with expectations for larger distributors and direct customers to recover [82] Question: Can you elaborate on the go-to-market strategy post-freezer sale? - The sales team will focus on scientifically oriented sales strategies for cell processing tools, differing from the capital equipment focus of the freezer sales team [83] Question: How is the freezer divestiture process progressing? - Management stated that the divestiture is likely to close in early 2024, with ongoing discussions with multiple parties [49][114] Question: What is the impact of the current biotech environment on long-term opportunities? - Management believes that the current challenges will not significantly impact their long-term opportunities in cell and gene therapy [139] Question: How will capital be deployed post-divestiture? - The focus will be on investing in product lines that are expected to drive profitable growth [140]
BioLife Solutions(BLFS) - 2023 Q3 - Quarterly Report
2023-11-08 16:00
8 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------|-----------------------------------|-----------------------------------|-------|---------------------|---------------------|----------------------------|-------|----------------------------------------|---------------------|---------------|----------------------------| | (In thousands, except share data) | Series A Preferred Stock Shares | Series A Preferred Stock Amount | | Co ...
BioLife Solutions(BLFS) - 2023 Q2 - Earnings Call Transcript
2023-08-09 01:25
BioLife Solutions, Inc. (NASDAQ:BLFS) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants Troy Wichterman – Chief Financial Officer Mike Rice – Chairman and Chief Executive Officer Conference Call Participants Jacob Johnson – Stephens Chad Wiatrowski – TD Cowen Amanda Young – KeyBanc Capital Markets Thomas Flaten – Lake Street Operator Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the BioLife Solutions Second Quarter 2023 Shareholders and Analyst ...
BioLife Solutions(BLFS) - 2023 Q2 - Quarterly Report
2023-08-08 16:00
____________________________________________________ BioLife Solutions, Inc. Common Stock BLFS NASDAQ Capital Market FORM 10-Q o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Delaware 94-3076866 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) Securities registered pursuant to Section 12(b) of the Act: Indicate by check mark whether the registrant is a large accelerated filer, an acce ...
BioLife Solutions(BLFS) - 2023 Q1 - Earnings Call Transcript
2023-05-11 01:30
BioLife Solutions, Inc. (NASDAQ:BLFS) Q1 2023 Earnings Conference Call May 10, 2023 4:30 PM ET Company Participants Troy Wichterman - CFO Michael Rice - Chairman & CEO Conference Call Participants Jacob Johnson - Stephens Inc. Thomas Flaten - Lake Street Capital Markets Chad Wiatrowski - TD Cowen Carl Byrnes - Northland Capital Markets Yuan Zhi - B. Riley Securities Paul Knight - KeyBanc Capital Markets Operator Hello. My name is Mallory, and I will be your conference operator today. At this time, I would l ...
BioLife Solutions(BLFS) - 2023 Q1 - Quarterly Report
2023-05-10 16:00
[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) BioLife Solutions reported a 4% revenue increase to $37.7 million, but net loss widened to $13.7 million due to higher operating expenses, impacting overall financial position [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly to $446.5 million, while total liabilities increased and shareholders' equity declined to $358.1 million, reflecting the period's net loss Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $132,789 | $138,452 | | **Total Assets** | **$446,470** | **$450,229** | | **Total Current Liabilities** | $47,319 | $44,582 | | **Total Liabilities** | $88,363 | $86,041 | | **Total Shareholders' Equity** | **$358,107** | **$364,188** | | **Total Liabilities and Shareholders' Equity** | $446,470 | $450,229 | [Unaudited Condensed Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue increased 4% to $37.7 million, but operating loss widened to $13.6 million and net loss to $13.7 million due to higher operating expenses Q1 2023 vs Q1 2022 Statement of Operations (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Revenue | $37,703 | $36,220 | | Total Operating Expenses | $51,308 | $44,187 | | Operating Loss | $(13,605) | $(7,967) | | Net Loss | $(13,714) | $(7,421) | | Net Loss Per Share (Basic & Diluted) | $(0.32) | $(0.18) | [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss for Q1 2023 was $13.6 million, primarily driven by the net loss, partially offset by other comprehensive income Comprehensive Loss Summary (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net loss | $(13,714) | $(7,421) | | Other comprehensive income (loss) | $145 | $(156) | | **Comprehensive loss** | **$(13,569)** | **$(7,577)** | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity decreased to $358.1 million, primarily due to the $13.7 million net loss, partially offset by stock-based compensation - The primary driver for the decrease in shareholders' equity was the **net loss of $13.7 million** incurred during the quarter[57](index=57&type=chunk) - **Stock-based compensation of $7.4 million** partially offset the reduction in equity caused by the net loss[57](index=57&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $2.7 million, while investing activities provided $2.9 million, resulting in a net cash decrease of $0.3 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,712) | $(7,924) | | Net cash provided by (used in) investing activities | $2,926 | $(2,270) | | Net cash used in financing activities | $(562) | $(181) | | **Net decrease in cash** | **$(348)** | **$(10,375)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and key disclosures, including an immaterial error correction, contingent consideration, debt, and stock-based compensation, confirming sufficient liquidity - The company corrected an immaterial error from prior periods related to uncollected sales taxes, adjusting the March 31, 2022 balance sheet and income statement[107](index=107&type=chunk)[117](index=117&type=chunk) - The fair value of the contingent consideration liability related to the SciSafe acquisition increased to **$5.0 million** as of March 31, 2023, from **$4.3 million** at year-end 2022[15](index=15&type=chunk) - Total debt stood at **$24.9 million** as of March 31, 2023, primarily from a term loan agreement entered into in September 2022[66](index=66&type=chunk)[133](index=133&type=chunk) - Total stock-based compensation expense for Q1 2023 was **$7.4 million**, a notable increase from **$5.4 million** in Q1 2022[176](index=176&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 4% revenue growth to cell processing products, offset by freezer/thaw declines, while increased operating expenses led to a wider loss, though liquidity remains sufficient [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Total revenue increased 4% to $37.7 million, driven by cell processing products, while operating expenses rose significantly due to higher personnel and stock-based compensation costs Revenue by Product Line (in thousands) | Product Line | Q1 2023 | Q1 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Freezer and thaw | $12,381 | $15,335 | $(2,954) | (19)% | | Cell processing | $18,993 | $14,899 | $4,094 | 27% | | Storage and storage services (Product) | $219 | $154 | $65 | 42% | | Storage and storage services (Service) | $3,825 | $3,090 | $735 | 24% | | Storage and storage services (Rental) | $1,639 | $2,742 | $(1,103) | (40)% | | **Total Revenue** | **$37,703** | **$36,220** | **$1,483** | **4%** | - General & Administrative expenses increased by **$3.3 million (29%)** due to increased headcount and professional services fees[219](index=219&type=chunk) - Sales & Marketing expenses rose by **$1.6 million (32%)** primarily from increased personnel expenses including stock-based compensation[221](index=221&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company held $56.9 million in liquid assets, with improved operating cash flow and positive investing cash flow, asserting sufficient liquidity for the next twelve months - The company possessed **$56.9 million** in cash, cash equivalents, and available-for-sale securities as of March 31, 2023[231](index=231&type=chunk)[93](index=93&type=chunk) - The decrease in cash used by operating activities was primarily due to favorable timing in the collection and disbursement of working capital, particularly in accounts receivable, inventories, and accounts payable[232](index=232&type=chunk) - The company has the ability to borrow up to an additional **$30 million** under its 2022 term loan agreement[231](index=231&type=chunk)[93](index=93&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure from interest rates is not material due to fixed-rate debt and an interest rate ceiling, with no material changes in foreign currency risk - Interest rate risk from long-term debt is not considered material due to fixed rates and an interest rate ceiling on the variable component[240](index=240&type=chunk) - There were no material changes in foreign currency exchange risk during the quarter[241](index=241&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective due to ongoing material weaknesses in internal controls over financial reporting, with remediation plans still in progress - Disclosure controls and procedures were deemed ineffective as of the end of the quarter due to ongoing material weaknesses in internal controls[242](index=242&type=chunk) - The identified material weaknesses relate to the control environment, risk assessment, IT logical access, accounting for complex transactions, and indirect tax liabilities[242](index=242&type=chunk) - Remediation plans outlined in the 2022 Form 10-K are still being implemented[245](index=245&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any legal proceedings or claims expected to have a material adverse effect on its operations or financial condition - There are no material legal proceedings pending against the company[247](index=247&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K were reported - No material changes to risk factors were reported for the quarter[248](index=248&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[249](index=249&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and interactive data files - The exhibits include certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act[254](index=254&type=chunk)[255](index=255&type=chunk)