Revenue and Financial Performance - For the fiscal year ended September 30, 2024, RMS revenue decreased by $76,712, primarily driven by a $60,399 decrease in revenue related to non-human primates (NHPs) and a decrease in revenue from the Israeli businesses sold in August 2023[349]. - Revenue for the fiscal year ended September 30, 2024, decreased to $490,739 from $572,425 in the previous fiscal year, representing a decrease of $81,686 or 14.3%[357]. - RMS revenue decreased by $76,712, or 19.8%, primarily due to lower NHP product and service revenue[375]. - DSA revenue decreased by $4,974, or 2.7%, driven by a decline in discovery services revenue[371]. - The consolidated net loss for the twelve months ended September 30, 2024, was $108,885, compared to a net loss of $104,902 for the same period in 2023[384]. - Net loss attributable to common shareholders increased to $108,445 from $105,140, an increase of $3,305 or 3.1%[359]. - Operating loss for the fiscal year ended September 30, 2024, increased to $86,406 from $81,460, an increase of $5,946 or 7.3%[358]. - Cash and cash equivalents decreased to $21,432 as of September 30, 2024, from $35,492 as of September 30, 2023[397]. - Net cash used in operations for the fiscal year ended September 30, 2024, was $6,805 compared to $27,883 of net cash provided by operations in the previous fiscal year[361]. - Cash used in investing activities was $16,832 for the fiscal year ended September 30, 2024, compared to $28,755 for the fiscal year ended September 30, 2023[398]. Operational Challenges and Strategic Initiatives - The company faced challenges in the RMS segment due to the decline in NHP imports into the U.S., which significantly affected sales volumes and margins[349]. - The company completed all planned site optimizations as of September 30, 2024, including the closure of the Spain facility and the sale of multiple U.S. facilities[347]. - The company announced a partnership with Vanguard Supply Chain Solutions LLC to integrate North American transportation operations in-house, completed in Q2 fiscal 2024[348]. - The company identified and audited multiple additional sources of purpose-bred animals to diversify sourcing outside of Cambodia, aiming to meet forecasted demand for fiscal 2025[350]. - The company plans to continue route optimization projects into fiscal 2025 to enhance efficiency and cost reductions[348]. - The company plans to initiate the next phase of its site optimization program in fiscal 2025, projecting to eliminate approximately $4,000 to $5,000 in operating expenses[367]. Debt and Financing Activities - Total debt as of September 30, 2024, was $393,339 million, an increase of 4.1% from $377,745 million on September 30, 2023[406]. - The Company issued Second Lien Notes of $17,000 during fiscal 2024, contributing to net cash provided by financing activities of $9,675[401]. - The Company issued $22,000 million in Second Lien Notes due 2027, along with warrants for 3,946,250 shares of common stock[414]. - The Company drew $35,000 million on the Additional DDTL to fund capital expenditures in fiscal year 2022 and planned for fiscal year 2023[408]. - The Company is required to maintain a Secured Leverage Ratio of not more than 3.75 to 1.00 starting from the fiscal quarter ended September 30, 2023[422]. - The Company has entered into multiple amendments to the Credit Agreement, including waivers of financial covenant tests through March 31, 2025[413]. Tax and Compliance - The effective income tax rates for fiscal 2024 and fiscal 2023 were 16.7% and 15.6%, respectively, with tax benefits recorded of $21,875 and $19,340[383]. - The Company has approximately 55 days to cure noncompliance with financial covenants following any fiscal quarter[392]. - The Company is required to maintain a minimum liquidity of $17,500 for certain weeks as per the Sixth Amendment[448]. Asset Management and Valuation - Goodwill is reviewed for impairment annually, with an assessment date of September 30th, and is not amortized[499]. - Long-lived assets are reviewed for impairment based on undiscounted future cash flows, and if not recoverable, are written down to fair value[504]. - The estimated useful lives for customer relationships range from 5 to 13 years, and for intellectual property from 5 to 20 years[503]. - The Company uses observable and unobservable inputs for fair value measurements, categorized into three levels[505]. Audit and Going Concern - The audits were conducted in accordance with PCAOB standards to ensure the financial statements are free of material misstatement[526]. - The critical audit matter involves accounts or disclosures that are material to the financial statements and required complex judgments[527]. - The Company has experienced negative operating cash flows and operating losses, raising substantial doubt about its ability to continue as a going concern[524]. - The consolidated financial statements do not include adjustments that might result from the uncertainty regarding the Company's ability to continue as a going concern[524].

Financial Data and Key Metrics Changes - For Q4 2024, total revenue was $130.4 million, a 23% increase from Q3 2024 but down 7.3% compared to Q4 2023 [11][25] - Operating loss for Q4 2024 was $13.2 million, an improvement from a loss of $20.8 million in Q3 2024, but compared to an operating income of $2.5 million in Q4 2023 [33] - Consolidated net loss attributable to common shareholders for Q4 2024 was $18.9 million, or a $0.73 loss per diluted share, compared to a loss of $9.7 million, or $0.38 per diluted share in Q4 2023 [34][36] Business Line Data and Key Metrics Changes - RMS revenue increased by $24.2 million or 39.3% from Q3 2024 but decreased by 5.2% compared to Q4 2023 [25][29] - DSA revenue for Q4 2024 was $44.6 million, slightly up from $44.2 million in Q3 2024 but down from $50.2 million in Q4 2023 [26][27] - The number of NHPs sold in Q4 2024 increased by 177.9% compared to Q3 2024 and by 48.9% compared to Q4 2023 [25][12] Market Data and Key Metrics Changes - The biotech industry continues to experience conservative spending, impacting client spending patterns for early-stage research and development [16] - Net new orders for DSA were $33.7 million in Q4 2024, compared to $32 million in the same quarter last year, indicating a slight improvement [28] - The overall market conditions in biotech have led to price pressures, affecting revenue and margins [15][16] Company Strategy and Development Direction - The company aims to improve customer experience and cash flow while reducing risk and addressing volatility [10] - There is a focus on growing the existing customer base through cross-selling products and services and attracting new customers [17] - The company plans to initiate the next phase of its site optimization program to further consolidate facilities in the U.S., projected to eliminate $4 million to $5 million in operating expenses [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, expecting reduced volatility and improved margins as higher-cost inventory is cleared [22][32] - The company recognizes geopolitical market conditions and uncertainties but believes it is well-positioned for future growth [22][23] - Management noted that while there are challenges, the integration of acquisitions and operational improvements have created a stronger foundation [23] Other Important Information - The average selling price of NHPs in Q4 2024 was 7.7% higher compared to Q3 2024 but down approximately 33.4% compared to the prior year [26] - Interest expense in Q4 2024 increased to $12.3 million due to higher interest rates and additional debt [39] - The company withdrew its fiscal 2024 financial guidance and is not providing guidance for fiscal 2025 at this time [44] Q&A Session Summary Question: Clarification on gross margins in NHPs - Management indicated that gross margins were about half of what they would normally achieve due to the need to move higher-cost inventory [49][50] Question: Commentary on contracted business for 2025 - Management noted that the NHP business has more pre-sold contracts going into 2025 compared to 2024, with growth expected in colony management services [53][54] Question: Expectations for growth in 2025 - Management anticipates growth in NHPs, diet, bedding, and enrichment, with a potential recovery in discovery services [62][63] Question: Pricing competition and customer retention - Management acknowledged pricing pressures but emphasized strong customer relationships and service quality as key factors in retaining and gaining market share [66] Question: Future gross margin expectations - Management expects some margin pressure in the current quarter but anticipates stronger margins in calendar 2025 as higher-cost inventory is cleared [70]

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D spending increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 90% satisfaction rate [9]. Topic 4: Operational Efficiency - Implemented a new ERP system, reducing operational costs by 5% [10]. - Streamlined supply chain processes, resulting in a 15% reduction in delivery times [11]. - Employee training programs were expanded, leading to a 20% improvement in productivity [12]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a recycling program that has successfully diverted 50% of waste from landfills [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Topic 6: Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [16]. - Implemented a new whistleblower policy to ensure ethical practices across the organization [17]. - Conducted annual audits with no material findings, reinforcing financial integrity [18]. Topic 7: Customer Engagement - Introduced a loyalty program that increased customer retention by 10% [19]. - Enhanced digital platforms, resulting in a 25% increase in online sales [20]. - Customer service satisfaction scores improved to 95%, up from 90% last year [21].

Core Viewpoint - Inotiv, Inc. reported a decline in revenue for both the fourth quarter and the full fiscal year 2024, primarily due to decreased sales in its Research Models and Services (RMS) segment and Discovery and Safety Assessment (DSA) services, while also highlighting efforts to enhance liquidity and optimize operations [1][3][7]. Financial Performance - Q4 FY 2024 revenue decreased by 7.3% to $130.4 million compared to $140.7 million in Q4 FY 2023, driven by an 11.2% decrease in DSA revenue and a 5.2% decrease in RMS revenue [5][13]. - Full year FY 2024 revenue was $490.7 million, down 14.3% from $572.4 million in FY 2023, primarily due to a 19.8% decrease in RMS revenue [7][15]. - Consolidated net loss for Q4 FY 2024 was $18.9 million, or 14.5% of total revenue, compared to a net loss of $8.7 million, or 6.2% of total revenue, in Q4 FY 2023 [6][13]. - For FY 2024, the consolidated net loss was $108.9 million, or 22.2% of total revenue, compared to a net loss of $104.9 million, or 18.3% of total revenue, in FY 2023 [7][16]. Revenue by Segment - DSA revenue for Q4 FY 2024 was $44.6 million, down from $50.2 million in Q4 FY 2023, a decrease of 11.2% [2][31]. - RMS revenue for Q4 FY 2024 was $85.8 million, down from $90.5 million in Q4 FY 2023, a decrease of 5.2% [2][31]. - For the full year FY 2024, DSA revenue decreased by 2.7% to $180.1 million, while RMS revenue decreased by 19.8% to $310.6 million [2][7]. Operational and Strategic Initiatives - The company completed the consolidation of operating activities from its Blackthorn, U.K. facility into its Hillcrest, U.K. site by the end of September 2024 [9]. - Inotiv plans to initiate the next phase of its site optimization program in FY 2025, which is expected to eliminate approximately $4.0 million to $5.0 million in operating expenses [11]. - The company raised capital through the issuance of Second Lien Notes amounting to approximately $22.6 million and amended its credit agreement to enhance liquidity [1][9]. Management Commentary - The CEO noted that the fourth quarter was productive, with a focus on site optimization, capital raising, and improving customer experience [3][4]. - The company aims to reduce volatility in its NHP business and continue its customer-driven strategy to enhance scientific expertise and innovation [4][3].

WEST LAFAYETTE, Ind., Nov. 21, 2024 (GLOBE NEWSWIRE) -- Inotiv today announced it ranked 138 on the Deloitte Technology Fast 500™, a ranking of the 500 fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America. Over the last five years Inotiv grew 847%. Inotiv’s president and chief executive officer, Robert Leasure, Jr., credits the company’s growth trajectory to listening to customers’ concerns and needs. He said, "Inotiv is incredibly proud t ...

WEST LAFAYETTE, Ind., Nov. 20, 2024 (GLOBE NEWSWIRE) -- Inotiv, Inc. (Nasdaq: NOTV) (the “Company” 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 that it will issue its financial results for the fiscal 2024 fourth quarter and full year ended September 30, 2024, on Tuesday, December 3, 2024, after the close of the stock market. The Company will host ...

WEST LAFAYETTE, Ind., Sept. 16, 2024 (GLOBE NEWSWIRE) -- Inotiv, Inc. (Nasdaq: NOTV) (the "Company" 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, has amended certain terms of its Credit Agreement. In addition, Inotiv has closed the sale of $22.6 million aggregate principal amount of 15% Senior Secured Second Lien PIK Notes due February 2027 (the "Second Lien Note ...

WEST LAFAYETTE, Ind., Aug. 28, 2024 (GLOBE NEWSWIRE) -- Inotiv, Inc. (Nasdaq: NOTV), a leading contract research organization specializing in nonclinical and analytical drug discovery and development services and research models and related products and services, announced today that Robert Leasure Jr., Inotiv's President and Chief Executive Officer, and Beth Taylor, Chief Financial Officer, will participate in the 8th Annual Lake Street Best Ideas Growth Conference on Thursday, September 12, 2024, in New Y ...

Financial Data and Key Metrics Changes - For Q3 2024, total revenue was $105.8 million, a decrease of 33% from $157.5 million in the prior year, primarily due to a decrease in NHP sales and a 35% reduction in NHP average price [17] - For the nine months ended June 30, 2024, consolidated revenue was $360.3 million, down 16.5% from $431.7 million for the same period last year [17] - Adjusted EBITDA for Q3 was $0.1 million, less than 1% of total revenues, compared to $30.5 million or 19.4% of total revenue for the same quarter last year [24] Business Line Data and Key Metrics Changes - DSA revenues in Q3 2024 decreased by approximately 6% to $44.2 million compared to $46.8 million in the prior year, driven by a decrease in general toxicology services [18] - RMS revenue for Q3 was down 44.4% to $61.6 million compared to $110.7 million in the same quarter last year, primarily due to lower NHP-related product and service revenue [20] - Year-to-date RMS revenue was down 24.3% to $224.8 million compared to $296.8 million in the same period last year [20] Market Data and Key Metrics Changes - The DSA segment saw net new orders running ahead of last year’s pace by approximately 5% for the nine months ended June 30, 2024 [12] - The average sales price of NHPs in Q3 2024 decreased approximately 23% sequentially from Q2 2024 and 35% compared to the same period in fiscal 2023 [21] - The company is beginning to see early signs of recovery in the NHP market, with expectations to potentially double the volume of NHPs sold in Q4 2024 compared to Q3 2024 [8] Company Strategy and Development Direction - The company aims to be a leading mid-sized preclinical CRO and is focusing on diversifying its customer base and migrating to long-term recurring contracts [9] - The company has completed significant investments to grow its service offerings and improve operational efficiencies [15] - The company is committed to building a business that creates value for customers, employees, and shareholders while addressing legal challenges and industry headwinds [16] Management's Comments on Operating Environment and Future Outlook - Management noted that improved funding levels for biotech companies in early 2024 have positively impacted project awards, but biopharma companies are expected to remain conservative in their preclinical pipeline investments [11] - The company anticipates a significant improvement in Q4 2024, with potential sales of NHPs expected to increase by 120% to 130% compared to Q3 2024 [34] - Management expressed confidence in the future of the industry and the company, emphasizing the importance of focusing on customer service and operational improvements [59] Other Important Information - The company reached a resolution of the Virginia DOJ investigation and related settlement, which is expected to reduce legal expenses by approximately $2 million to $3 million per quarter [31] - The company amended its loan agreement with senior debt holders for the DOJ settlement and received a waiver for non-compliance with financial covenants as of June 30, 2024 [9] Q&A Session Summary Question: What does the resolution of the Florida DOJ situation mean for legal expenses? - Legal expenses are expected to decrease significantly, potentially by $2 million to $3 million per quarter [31] Question: When can improvements in NHP sales be expected? - Q4 is expected to show improvements, with potential sales of NHPs increasing significantly compared to Q3 [34] Question: How is the company addressing pricing pressures in the market? - The company is focusing on differentiating its services and has seen some success in maintaining demand despite pricing pressures [36] Question: Can you elaborate on the customer base and inventory levels? - The company has diversified its customer base, with no single customer representing over 10% of sales, and is seeing good inquiry levels for NHPs [40] Question: What is the outlook for long-term contracts? - The company expects a significant portion of its sales to be committed to long-term contracts, potentially over 75% [49]

Inotiv, Inc. (NOTV) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.09. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -122.22%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced a loss of $0.29, delivering a surprise of -680%. Over the last four quarters, the company has not ...