CHASKA, Minn., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (NASDAQ: LFCR) ("Lifecore" or the "Company"), a fully integrated contract development and manufacturing organization ("CDMO"), today announced that John Morberg will be stepping down from his position as chief financial officer to pursue other professional opportunities and spend time with his family, effective September 2, 2024. In addition, the Company is pleased to announce that Ryan Lake, an accomplished CDMO financial executive, ...

Financial Data and Key Metrics Changes - Revenues for Q4 FY 2024 were $43 million, an 8% increase from $39.8 million in Q4 FY 2023, primarily due to increased manufacturing runs and process development services [7] - For the full fiscal year 2024, revenues were $139.9 million, a decrease of approximately 6% compared to $149.3 million in the prior year, attributed to fewer manufacturing runs and reduced process development services [13] - Gross profit for Q4 FY 2024 was $5.5 million (13% gross margin), down from $8.4 million (21% gross margin) in Q4 FY 2023; full fiscal year gross profit was $7.3 million (5% gross margin), compared to $31.5 million (21% gross margin) in FY 2023 [14][15] - The company recorded a net loss of $123.1 million ($1.94 per share) in Q4 FY 2024, compared to a net loss of $0.3 million ($0.01 per share) in Q4 FY 2023; for the full fiscal year, the net loss was $140.8 million ($2.23 per share) compared to a net income of approximately $0.3 million in the prior year [22][23] Business Line Data and Key Metrics Changes - The company signed multiple new project agreements worth $30 million in Q4 FY 2024, ending the quarter with a strong backlog of $193 million [25] - The gross margin for Q4 FY 2024 approximately doubled compared to Q3 FY 2024, indicating improved operational efficiency [11][36] Market Data and Key Metrics Changes - The company noted improvements in the biotech financial markets, which are expected to facilitate the advancement of previously deferred manufacturing programs [26] - The company has seen a growing interest in its newly completed facilities and expanded capabilities, which is expected to support revenue growth [33] Company Strategy and Development Direction - The company aims to achieve revenue guidance of $160 million to $168 million for FY 2025, representing a 17% growth year-over-year at the midpoint [33] - Avid has expanded its annual revenue-generating capacity from approximately $120 million in FY 2021 to over $400 million today, enhancing its ability to service both biotech and large pharma customers [34] - The company is focusing on increasing capacity utilization and improving margins through operational efficiency rather than cost-cutting measures [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for FY 2025, citing positive revenue momentum and a strong backlog as indicators of future growth [39] - The company is encouraged by the improving financial market for biotech companies and the trend of onshoring drug manufacturing back to the U.S. [39] Other Important Information - The company recorded a valuation allowance of $118.5 million against its deferred tax assets due to a net loss in FY 2024, impacting its income tax expense significantly [17][21] - The company has engaged EcoVadis to evaluate its sustainability practices, achieving a score of 56, placing it in the 62nd percentile globally [28] Q&A Session Summary Question: Fiscal '25 revenue guidance and backlog contribution - Management indicated that the revenue guidance for FY 2025 is not markedly different from previous years, with confidence in forecasting based on historical performance [41][43] Question: Bookings and new capacity interest - Management confirmed that interest in new capacity is converting into business, with ongoing PPQ campaigns indicating strong future demand [44][45] Question: Margin recovery strategies - Management stated that increased capacity utilization will primarily drive margin recovery, with a focus on operational efficiency rather than cost-cutting [46] Question: Capacity of CGT business and activity - The CGT portion of the business has a capacity of about $80 million, with increasing activity expected in the coming quarters [59] Question: Dynamics of the CDMO market - Management noted that high-quality late-phase commercial grade CDMO capacity is in relatively short supply, with increasing conversations around onshoring [64] Question: Inbound call cadence and market conditions - Management reported an increase in positive conversations and customer interest, driven by improving market conditions and onshoring trends [68][72] Question: Gross margins and revenue composition - Management indicated that larger runs from late-stage programs typically command higher margins, contributing to a gradual rebound in gross margins [73]

Revenue Performance - Manufacturing revenues for fiscal 2024 were $119.3 million, a decrease of $6.1 million (5%) compared to $125.4 million in fiscal 2023[295]. - Process development revenues decreased by $3.3 million (13.8%) to $20.6 million in fiscal 2024 from $23.9 million in fiscal 2023[295]. - Total revenues for fiscal 2024 were $139.9 million, down $9.4 million (6.3%) from $149.3 million in fiscal 2023[295]. - For the fiscal year ended April 30, 2024, the company's revenue was $139.9 million, a decrease of 6.5% from $149.3 million in 2023[380]. Profitability and Loss - Gross profit for fiscal 2024 was $7.3 million, a decrease of $24.2 million (77%) compared to $31.5 million in fiscal 2023[343]. - Operating loss for fiscal 2024 was $18.7 million, compared to operating income of $3.6 million in fiscal 2023, reflecting a year-over-year decrease of $22.3 million[298]. - The company reported a net loss of $140.8 million for fiscal 2024, compared to a net income of $0.3 million in 2023[380]. Expenses - Selling, general and administrative (SG&A) expenses for fiscal 2024 were $26.0 million, a decrease of $1.9 million (6.8%) from $27.9 million in fiscal 2023[343]. - The cost of revenues for fiscal 2024 was $132.6 million, resulting in a gross profit of $7.3 million, down from $31.5 million in 2023[380]. - Operating expenses totaled $26.0 million in fiscal 2024, a decrease from $27.9 million in the previous year[380]. Interest and Other Income - Interest expense increased to $4.3 million in fiscal 2024 from $3.0 million in fiscal 2023, an increase of $1.3 million (43.3%)[348]. - Other income (expense), net for fiscal 2024 was an expense of $3.9 million, a decrease of $4.9 million compared to income of $1.0 million in fiscal 2023[349]. - Income tax expense for fiscal 2024 was $113.8 million, significantly higher than $1.3 million in fiscal 2023, due to a valuation allowance of $118.5 million recorded[350]. Cash Flow and Investments - Net cash provided by operating activities was $10.9 million in fiscal 2024, a significant improvement from a cash used of $12.7 million in 2023, reflecting a change of $23.7 million[364]. - Net cash used in investing activities decreased to $31.8 million in fiscal 2024 from $77.8 million in 2023, indicating a reduction of $46.0 million[364]. - Net cash provided by financing activities increased to $20.1 million in fiscal 2024, compared to $2.9 million in 2023, marking an increase of $17.2 million[364]. Future Outlook and Obligations - The company anticipates capital expenditures between $3 million and $5 million for fiscal 2025, including approximately $2 million in accrued and unpaid capital expenditures as of April 30, 2024[395]. - As of April 30, 2024, the company had outstanding lease payment obligations of approximately $83.2 million, with $6.0 million due in fiscal 2025[367]. - The company completed an offering of $160.0 million aggregate principal amount of 2029 Notes, receiving net proceeds of approximately $153.5 million after expenses[366]. Capacity - The total annual revenue generating capacity of the company's combined facilities is now estimated to be over $400 million following the completion of the CGT Facility[287].

Financial Performance - Q4 FY 2024 revenues reached $43.0 million, an 8% increase from $39.8 million in Q4 FY 2023; however, full fiscal year revenues decreased by approximately 6% to $139.9 million from $149.3 million[3] - Gross profit for Q4 FY 2024 was $5.5 million (13% gross margin), down from $8.4 million (21% gross margin) in Q4 FY 2023; full fiscal year gross profit was $7.3 million (5% gross margin) compared to $31.5 million (21% gross margin) in FY 2023[14] - Adjusted EBITDA for Q4 FY 2024 was $3.9 million, compared to $6.3 million in Q4 FY 2023; full fiscal year adjusted EBITDA was $2.0 million compared to $21.7 million in FY 2023[12] - The company reported a net loss of $123.1 million or $1.94 per share for Q4 2024, compared to a net loss of $0.3 million or $0.01 per share in Q4 2023[30] - Avid recorded an adjusted net loss of approximately $4.6 million for Q4 2024, excluding a significant income tax provision[30] Revenue Guidance and Backlog - FY 2025 revenue guidance is projected to be between $160 million and $168 million, reflecting enhancements and expansions to serve both biotech and large pharma customers[2] - The company expects fiscal 2025 revenue guidance of between $160 million and $168 million, indicating a year-over-year growth of 17% at the midpoint[25] - The commercial team signed new orders totaling approximately $30 million in Q4 FY 2024, resulting in a backlog of $193 million, expected to be recognized as revenue over the next five fiscal quarters[16] - Avid's total backlog as of April 30, 2024, was $193 million, consistent with $191 million at the end of the same quarter last year[29] Tax and Liabilities - The company recorded an income tax expense of $117.9 million in Q4 FY 2024, significantly up from $0.9 million in Q4 FY 2023; full fiscal year income tax expense was $113.8 million compared to $1.3 million in FY 2023[4] - A valuation allowance of $118.5 million was recorded for deferred tax assets due to a net cumulative loss over the three-year period ending April 30, 2024[4] - Total liabilities increased to $275.7 million as of April 30, 2024, compared to $262.4 million in the previous year[38] Operational Insights - The decrease in revenues for FY 2024 was primarily attributed to fewer manufacturing runs and a reduction in process development services from early-stage programs[3] - The company anticipates an increase in utilization of its facilities as new programs are onboarded, which is expected to improve margins[2] - Operating expenses for Q4 2024 were $6.8 million, a decrease of 10% compared to $7.6 million in Q4 2023[42] - The company completed a three-year expansion program, increasing its annual revenue-generating capacity from approximately $120 million in fiscal 2021 to over $400 million[40] Sustainability - The company achieved a Committed Badge from EcoVadis, scoring 56 and placing in the 62nd percentile globally for sustainability[44]

-- Signed $30 Million in Net New Business Resulting in Backlog of $193 Million -- TUSTIN, Calif., July 02, 2024 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ: CDMO), a dedicated biologics contract development and manufacturing organization (CDMO) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced financial results for the fourth quarter and year ended April 30, 2024. "Supporting our optimism, i ...

Core Insights - Avid Bioservices achieved a record quarterly revenue of $43 million in Q4 FY 2024, marking an 8% increase from $39.8 million in the same period last year [2][4]. - The company signed $30 million in net new business, resulting in a backlog of $193 million, which is expected to be recognized as revenue over the next five fiscal quarters [3][12]. - For FY 2025, Avid provided revenue guidance of $160 million to $168 million, indicating a projected growth of 17% year-over-year at the midpoint [1][10]. Financial Performance - Total revenues for FY 2024 were $139.9 million, a decrease of approximately 6% compared to $149.3 million in FY 2023, primarily due to fewer manufacturing runs and reduced process development services [2][7]. - Gross profit for Q4 FY 2024 was $5.5 million, representing a gross margin of 13%, down from $8.4 million (21% gross margin) in Q4 FY 2023 [7][34]. - The net loss for Q4 FY 2024 was $123.1 million, or $1.94 per share, compared to a net loss of $0.3 million, or $0.01 per share, in Q4 FY 2023 [22][30]. Operational Developments - The company completed a three-year expansion program, enhancing its mammalian and cell and gene therapy facilities, which significantly increased its annual revenue-generating capacity from approximately $120 million in FY 2021 to over $400 million [9][10]. - Avid's backlog remained stable at $193 million as of April 30, 2024, compared to $191 million at the end of the same quarter last year [3][12]. - The company anticipates an increase in capacity utilization as it onboard new programs, which is expected to improve margins [5][10]. Cost Management - Selling, general, and administrative (SG&A) expenses for Q4 FY 2024 were $6.8 million, a decrease of 10% from $7.6 million in Q4 FY 2023, attributed to lower compensation and facility expenses [34]. - The income tax expense for Q4 FY 2024 was $117.9 million, significantly higher than $0.9 million in Q4 FY 2023, due to a valuation allowance of $118.5 million recorded during the quarter [35]. Sustainability Initiatives - Avid achieved a Committed Badge from EcoVadis, scoring 56 and placing the company in the 62nd percentile globally for sustainability practices [23].

Company Overview - Avid Bioservices, Inc. is a dedicated biologics contract development and manufacturing organization (CDMO) focused on improving patient lives by providing high-quality services to biotechnology and pharmaceutical companies [3] - The company has over 30 years of experience in producing biologics and offers a comprehensive range of services including CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submissions support [3] Financial Reporting - Avid Bioservices will report its financial results for the quarter and fiscal year ended April 30, 2024, on July 2, 2024, after market close [1] - A webcast will be hosted at 1:30 PM Pacific Time (4:30 PM Eastern Time) where senior management will discuss the financial results and recent corporate developments [1]

EUROAPI and Priothera, a biotechnology company specializing in the treatment of hematological malignancies and the improvement of CAR-T cell therapies, have signed a 5-year CDMO agreement EUROAPI will develop and industrialize the manufacturing process of innovative complex molecule for blood cancers "Oncology is a major segment for EUROAPI's CDMO business. Signing this development and manufacturing agreement with Priothera demonstrates our ability to adapt to state-of-the-art innovation and quality require ...

Company Overview - Avid Bioservices, Inc. is a dedicated biologics contract development and manufacturing organization (CDMO) focused on improving patient lives by providing high-quality development and manufacturing services to biotechnology and pharmaceutical companies [1][3] - The company has over 30 years of experience in producing biologics and offers a comprehensive range of services including CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submissions support [3] Sustainability Achievement - Avid Bioservices has achieved a Committed Badge from EcoVadis, a leading provider of business sustainability ratings, with a score of 56, placing the company in the 62nd percentile globally [1][2] - The recognition reflects the company's commitment to sustainability and the integration of sustainable practices into daily business activities [2] EcoVadis Assessment - EcoVadis evaluates sustainability based on 21 criteria across four core themes: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement [2][3] - The ratings are based on international sustainability standards, including the UN Global Compact, ILO conventions, GRI standards, and ISO 26000 [3]

TUSTIN, Calif., May 23, 2024 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ: CDMO), a dedicated biologics contract development and manufacturing organization (CDMO) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced that the company has achieved a Committed Badge from EcoVadis, one of the world's most trusted providers of business sustainability ratings. Avid earned a score of 56 from EcoVadis, ...