Bio-Techne (TECH) 2025 Conference May 13, 2025 01:40 PM ET Speaker0 Fireside Chat. I'm joined by Kim Kelderman, Chief Executive Officer and Jim Hipple, Chief Financial Officer. Gentlemen, thanks for being here. Thanks for having us. Format is going to be a fireside chat, and then we'll open up to the audience. If there's any questions, just raise your hand and we can squeeze you in as well. I guess just to kick things off, you reported fiscal 3Q results recently, solid results, especially considering some o ...

Core Insights - CMB.TECH's diversified business model spans multiple sectors, including dry bulk, tankers, containers, and offshore wind, with over 250 vessels post-merger with Golden Ocean, aiming for long-term growth and sustainability [3][8] - The company emphasizes the importance of stability and a long-term vision in an industry often focused on short-term gains, with leadership prioritizing sustainable growth over immediate profits [5][6] - CMB.TECH is addressing the valuation gap between net asset values (NAV) and market valuations by focusing on earnings potential and strategic positioning rather than just liquidation value [6][7] Business Strategy - The merger with Golden Ocean is expected to increase CMB.TECH's free float from 8% to 38%, enhancing liquidity and attractiveness to institutional investors [7][8] - Post-merger, CMB.TECH will have a fleet of 253 vessels with an average age of 6.1 years, a contract backlog of $3 billion, and capex commitments of $2.2 billion, targeting a leverage of 50% [8] - The company plans to invest in ammonia and hydrogen as future fuels, aligning with emissions targets and focusing on sustainable growth [9][10] Newbuilding Program - CMB.TECH is overseeing an ambitious newbuilding program with 46 vessels on order, including ammonia-capable ships scheduled for delivery starting in 2026 [11] - All newbuilds will be equipped to operate on alternative fuels, except where engine technology is not commercially available, ensuring cost-effectiveness [11] Infrastructure and Regulatory Strategy - The company acknowledges challenges in developing bunkering networks for ammonia but believes existing infrastructure for industrial ammonia can support initial phases of adoption [12] - CMB.TECH's strategy does not rely solely on regulatory support, emphasizing the need for a self-sustaining business model that can thrive without subsidies [13] Market Outlook - Mr. Saverys expresses a bullish outlook on Africa, highlighting its potential due to population growth, technology adoption, and emerging trade routes [14][15] - The company believes that success in shipping will require a strategic focus on Africa, leveraging its unique economic models and sustainable practices [15]

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Bio-Techne Corporation's unaudited condensed consolidated financial statements, including earnings, balance sheets, and cash flows, with detailed notes on accounting policies and segment information [Condensed Consolidated Statements of Earnings and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Income) Net sales increased, but net earnings and diluted EPS significantly decreased due to higher operating expenses and a litigation charge Condensed Consolidated Statements of Earnings (in thousands, except per share data) | Financial Metric | Quarter Ended Mar 31, 2025 | Quarter Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | **$316,181** | **$303,428** | **$902,671** | **$852,961** | | Gross margin | $214,556 | $204,599 | $591,460 | $566,377 | | Operating income | $38,708 | $66,998 | $126,115 | $160,863 | | **Net earnings** | **$22,588** | **$49,059** | **$91,078** | **$127,517** | | Diluted EPS | $0.14 | $0.31 | $0.57 | $0.79 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased, while total liabilities increased due to long-term debt, resulting in a decrease in total shareholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | June 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,644,259** | **$2,703,867** | | Cash and cash equivalents | $140,670 | $151,791 | | Goodwill | $968,612 | $972,663 | | Intangible assets, net | $443,699 | $507,081 | | **Total Liabilities** | **$626,234** | **$635,017** | | Long-term debt obligations | $330,000 | $319,000 | | **Total Shareholders' Equity** | **$2,018,025** | **$2,068,850** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased due to lower earnings, while investing cash outflow reduced, and financing cash outflow increased from share repurchases Condensed Consolidated Cash Flow Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $189,355 | $223,485 | | Net cash used in investing activities | ($35,589) | ($194,222) | | Net cash used in financing activities | ($163,453) | ($62,303) | | **Net change in cash and cash equivalents** | **($11,121)** | **($40,656)** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment changes, strategic investments, ongoing restructuring charges, and the resolution of a significant legal dispute - The company changed the name of its 'Diagnostics and Genomics' segment to '**Diagnostics and Spatial Biology**' to better reflect its offerings[15](index=15&type=chunk) - In July 2024, the Company invested **$15.0 million** in Spear Bio, accounted for under the cost-method[16](index=16&type=chunk) - The Company initiated enterprise-wide restructuring in fiscal 2025 to improve operating margins, incurring total charges of **$13.7 million** for the nine months ended March 31, 2025[21](index=21&type=chunk)[22](index=22&type=chunk) - A legal dispute with the former CEO regarding stock options was resolved through arbitration, resulting in a payment of **$37.2 million**, which was recognized as a litigation charge in the quarter[35](index=35&type=chunk)[36](index=36&type=chunk) Revenue by Type (in thousands) | Revenue Type | Quarter Ended Mar 31, 2025 | Quarter Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Consumables | $257,785 | $246,732 | $719,345 | $682,405 | | Instruments | $26,111 | $26,493 | $83,185 | $81,178 | | Services | $27,246 | $25,501 | $81,953 | $71,084 | | **Total revenues, net** | **$316,181** | **$303,428** | **$902,671** | **$852,961** | Segment Revenue and Operating Income (in thousands) | Segment | Quarter Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2025 | | :--- | :--- | :--- | | **Protein Sciences** | | | | Net Sales | $227,687 | $643,774 | | Operating Income | $103,910 | $271,564 | | **Diagnostics and Spatial Biology** | | | | Net Sales | $89,231 | $256,558 | | Operating Income | $8,423 | $15,940 | - On April 30, 2025, the Board approved a new share repurchase plan authorizing the purchase of up to **$500 million** of the Company's stock[102](index=102&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses increased net sales driven by organic growth, offset by decreased net earnings due to a non-recurring arbitration award and restructuring costs [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Consolidated net sales increased due to organic growth, but SG&A expenses rose significantly from an arbitration award, impacting net earnings and the effective tax rate - Consolidated net sales for Q3 FY25 increased **4% YoY** to **$316.2 million**[109](index=109&type=chunk)[111](index=111&type=chunk) - Organic revenue grew **6%**, while foreign currency and a business held-for-sale each had an unfavorable impact of **1%**[111](index=111&type=chunk) - Net earnings for Q3 FY25 decreased to **$22.6 million** from **$49.1 million YoY**, primarily due to a non-recurring arbitration award[110](index=110&type=chunk) Adjusted Gross Margin Reconciliation (Q3 FY25) | Metric | Amount (in thousands) | Percentage | | :--- | :--- | :--- | | Gross margin - GAAP | $214,556 | 67.9% | | Adjustments | $11,980 | - | | **Adjusted gross margin** | **$226,536** | **71.6%** | Segment Performance (Q3 FY25 vs Q3 FY24) | Segment | Net Sales (Q3'25) | YoY Growth | Organic Growth | Operating Margin (Q3'25) | | :--- | :--- | :--- | :--- | :--- | | Protein Sciences | $227.7M | 6% | 7% | 45.6% | | Diagnostics and Spatial Biology | $89.2M | 2% | 2% | 9.4% | Adjusted Diluted EPS Reconciliation (Q3 FY25 vs Q3 FY24) | Metric | Q3 FY25 | Q3 FY24 | | :--- | :--- | :--- | | Net earnings before taxes - GAAP | $38,274 | $61,084 | | Total Adjustments | $74,234 | $36,943 | | Net earnings before taxes - Adjusted | $112,508 | $98,027 | | **Non-GAAP adjusted net earnings** | **$88,318** | **$76,425** | | **Earnings per share - diluted - Adjusted** | **$0.56** | **$0.48** | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with substantial cash and credit availability, expecting to meet future cash requirements despite significant share repurchases - As of March 31, 2025, the Company had **$140.7 million** in cash and cash equivalents and **$670 million** available on its line-of-credit[128](index=128&type=chunk)[129](index=129&type=chunk) - The Company has a future commitment to acquire the remaining **80.1%** of Wilson Wolf, with a potential payment of up to **$1 billion** plus contingent consideration, forecasted to occur between fiscal 2026 and 2028[130](index=130&type=chunk) - For the nine months ended March 31, 2025, cash from operations was **$189.4 million**, capital expenditures were **$26.1 million**, dividends paid were **$38.0 million**, and share repurchases were **$175.7 million**[132](index=132&type=chunk)[134](index=134&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes to its market risk exposure from interest rates and currency exchange rates since the last annual report - There have been no material changes in the Company's exposure to market risk from interest rates and currency exchange rates since the last annual report[152](index=152&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[155](index=155&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the third quarter of fiscal 2025[156](index=156&type=chunk) PART II: OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings, with a significant dispute involving the former CEO resolved during the quarter - The Company is not a party to any legal proceedings expected to have a material adverse effect on its business[158](index=158&type=chunk) - A dispute with the former CEO was resolved through a binding arbitration award during the quarter ended March 31, 2025, for which the Company paid **$37.2 million** inclusive of interest and legal fees[35](index=35&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to its risk factors, except for an expanded discussion on global market conditions, including the adverse effects of tariffs and trade actions - A key risk factor highlighted is the changing conditions and uncertainty in global markets, including the adverse effects of tariffs, sanctions, and other trade actions[161](index=161&type=chunk) - These actions, such as those between the U.S. and China, could increase costs, disrupt supply chains, and negatively impact margins and profitability[161](index=161&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases under its publicly announced plan, with a remaining balance available for future repurchases Share Repurchase Activity (Fiscal Year 2025 to March 31, 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Dollar Amount Remaining Under Plan | | :--- | :--- | :--- | :--- | | Nov 1 - 30, 2024 | 1,118,492 | $67.62 | $105,110,738 | | Feb 1 - 29, 2025 | 1,488,563 | $67.21 | $5,066,126 | | **Total YTD** | **2,607,055** | **$67.38** | **$5,066,126** | - The share repurchase plan, approved on February 2, 2022, authorized the purchase of up to **$400 million** in stock[162](index=162&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[165](index=165&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[167](index=167&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the third quarter of fiscal 2025[169](index=169&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including corporate governance documents, compensation plans, and required certifications - The report includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[174](index=174&type=chunk) - Financial statements are provided in Inline Extensible Business Reporting Language (iXBRL) format[174](index=174&type=chunk)

Core Insights - Kytopen Corp. and Bio-Techne Corporation have announced a partnership to enhance gene delivery solutions for advanced cell therapies, focusing on the integration of their respective technologies [1][5] - The collaboration aims to streamline workflows for genome engineering of immune cell therapies, expediting their clinical advancement and manufacturing [1][5] Company Overview - Kytopen is a leader in non-viral, continuous flow cellular engineering technologies, headquartered in Cambridge, Massachusetts, and is known for maximizing yields and delivering hundreds of billions of engineered cells rapidly [6] - Bio-Techne is a global life sciences company that provides innovative tools and bioactive reagents for research and clinical diagnostics, generating approximately $1.2 billion in net sales in fiscal 2024 [7] Technology Highlights - The TcBuster™ system allows for the simultaneous delivery of multiple genes with high editing efficiency, offering advantages over traditional lentivirus-based methods [2][5] - Flowfect® technology combines mechanical, electrical, and chemical forces to enhance transfection efficiency and cell health, enabling the processing of billions of cells in minutes [2][5] Collaboration Details - The partnership will leverage the TcBuster™ GMP non-viral genome engineering system and the Flowfect Tx™ GMP cellular engineering platform to create a non-viral gene-editing workflow suitable for various immune cell types [1][3] - Data from the collaboration will be presented at the International Society of Cell & Gene Therapy (ISCT) Annual Meeting, showcasing the advancements made through this partnership [3][5]

Company Overview - Bio-Techne Corporation is a global life sciences company that provides innovative tools and bioactive reagents for research and clinical diagnostics [2] - The company generated approximately $1.2 billion in net sales in fiscal 2024 and employs over 3,100 people worldwide [2] Upcoming Events - Kim Kelderman, President and CEO of Bio-Techne, will present at the BofA Securities 2025 Health Care Conference on May 13, 2025, at 10:40 a.m. PDT [1]

Bio-Techne (TECH) reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of 56 cents, which surpassed the Zacks Consensus Estimate by 9.8%. The bottom line improved from the year-ago figure of 48 cents.The quarter's adjustments eliminated the impact of certain one-time items, including amortization of intangibles and Wilson Wolf intangible assets, acquired inventory, and restructuring and restructuring-related costs, among others.GAAP EPS was 14 cents compared with 31 cents in the prior-year q ...

Core Insights - Techne (TECH) reported revenue of $316.18 million for the quarter ended March 2025, reflecting a year-over-year increase of 4.2% and surpassing the Zacks Consensus Estimate by 0.30% [1] - The company's EPS was $0.56, up from $0.48 in the same quarter last year, resulting in an EPS surprise of 9.80% compared to the consensus estimate of $0.51 [1] Financial Performance - Organic Growth was reported at 6%, exceeding the average estimate of 5.2% from three analysts [4] - Organic Growth in Diagnostics and Genomics was 2%, below the two-analyst average estimate of 6.2% [4] - Organic Growth in Protein Sciences was 7%, significantly higher than the average estimate of 2.8% from two analysts [4] - Net Sales from intersegment revenue was -$0.74 million, worse than the average estimate of -$0.55 million, representing a year-over-year decline of 3.7% [4] - Net Sales in Protein Sciences reached $227.69 million, surpassing the average estimate of $224.75 million, with a year-over-year increase of 6.1% [4] - Net Sales in Diagnostics and Genomics were $89.23 million, slightly below the average estimate of $92.50 million, showing a year-over-year growth of 2% [4] Market Performance - Techne's shares have returned -2.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of 10.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - The company reported a 6% organic revenue growth for Q3, with adjusted operating margin at 34.9% [5][20][22] - Adjusted EPS increased to $0.56 from $0.48 year-over-year, while GAAP EPS decreased to $0.14 from $0.31 [20] - Q3 revenue reached $316.2 million, a 6% increase year-over-year on an organic basis [20][21] - Total adjusted gross margin was 71.6%, slightly down from 71.9% last year [22] Business Segment Performance - The Protein Sciences segment achieved 7% organic revenue growth, driven by large pharma customers [10][26] - The Diagnostics and Spatial Biology segment reported 2% organic revenue growth, with strong performance in automated spatial instruments [13][27] - The GMP reagents business saw a trailing twelve-month growth of over 13% [12] Market Performance - North America experienced low single-digit growth, while Europe saw mid single-digit growth, and China faced a mid single-digit decline [21] - The biopharma market increased mid single digits, while the academic market remained flat [21][22] Company Strategy and Industry Competition - The company is focusing on balancing investments for future growth while driving operational efficiencies [5][19] - The FDA's recent emphasis on reducing animal testing is seen as an opportunity for the company's organoid solutions [11] - The company is well-positioned to mitigate tariff impacts through its global operational footprint [17][18] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to NIH funding and tariffs, expecting to mitigate impacts by the start of fiscal year 2026 [28][32] - The company anticipates a temporary slowdown in growth momentum to low single digits in Q4 due to macro uncertainties [32] - Management believes that potential NIH funding cuts may not significantly impact long-term growth expectations [29][68] Other Important Information - The company generated $41.1 million in cash from operations and returned $12.6 million in dividends and $100 million through stock buybacks [25] - A new share repurchase program has been authorized for up to $500 million [25] Q&A Session Summary Question: Impact of NIH funding on guidance - Management indicated that while there is uncertainty, they believe severe cuts to NIH funding are unlikely and would have an immaterial impact on long-term growth [29][68] Question: Clarification on pharma growth rates - Management clarified that pharma experienced double-digit growth in Q3, but they expect a step down in Q4 due to order timing and tariff impacts [36][41] Question: Tariff exposure and local manufacturing - Management explained that they have pathways to mitigate tariff impacts and emphasized the importance of their local manufacturing footprint in China [48][50] Question: Academic market headwinds - Management acknowledged headwinds in the academic market due to NIH funding uncertainties but expressed confidence in their competitive positioning [70][72] Question: Growth expectations for GMP reagents - Management noted that the cell and gene therapy product line has shown a trailing twelve-month growth of over 30% [80]

Bio-Techne (TECH) Q3 2025 Earnings Call May 07, 2025 09:00 AM ET Speaker0 Good morning, and welcome to Bio Techne Earnings Conference Call for the Third Quarter of Fiscal Year twenty twenty five. At this time, all participants have been placed in listen only mode, and the call will be opened for questions following the management's prepared remarks. During our Q and A session, please limit yourself to one question and a follow-up. I would now like to turn the call over to David Claire, Bio Vice President, I ...

Group 1 - Bio-Techne Corporation (TECH) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jul 18, 2025 $80 Call option [1] - Implied volatility indicates market expectations for future stock movement, suggesting potential upcoming events that could lead to substantial price changes [2] - Currently, Bio-Techne holds a Zacks Rank 4 (Sell) in the Medical - Biomedical and Genetics industry, with no analysts increasing earnings estimates for the current quarter and one analyst revising estimates downward, resulting in a consensus estimate decrease from 52 cents to 51 cents per share [3] Group 2 - The high implied volatility surrounding Bio-Techne may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as anticipated by expiration [4]