Emergent BioSolutions(EBS) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenues for Q2 2024 were $254.7 million, a decrease of 25% compared to $337.9 million in Q2 2023[2] - Net loss for Q2 2024 was $283.1 million, compared to a net loss of $261.4 million in Q2 2023, representing an 8% increase in losses[2] - Adjusted EBITDA for Q2 2024 was $(10.1) million, a significant decline from $55.9 million in Q2 2023, marking a 118% decrease[2] - Year-to-date revenues for 2024 reached $555.1 million, an 11% increase from $502.2 million in the same period of 2023[3] - Total revenues for Full Year 2024 are projected to be between $1,050 million and $1,125 million, an increase from the previous range of $1,000 million to $1,100 million[30] - The adjusted net loss for Full Year 2024 is expected to be between $(115) million and $(75) million, compared to the previous range of $(65) million to $(15) million[30] - Adjusted EBITDA for Full Year 2024 is forecasted to be between $140 million and $180 million, up from the previous range of $125 million to $175 million[30] - Total revenues for the first half of 2024 were $254.7 million, a decrease of 24.6% compared to $337.9 million in the same period of 2023[50] - Net loss for the first half of 2024 was $283.1 million, compared to a net loss of $261.4 million in the same period of 2023[50] - The company reported a loss from operations of $203.5 million for the first half of 2024, compared to a loss of $292.9 million in the same period of 2023[50] - The forecasted net loss for 2024 is between $(314) million and $(274) million[59] Revenue Breakdown - Revenues from NARCAN decreased by $13.9 million, or 10%, in Q2 2024 compared to Q2 2023, primarily due to unfavorable pricing and volume mix[6] - Revenues from Anthrax MCM increased by $17.6 million, or 83%, in Q2 2024 compared to Q2 2023, driven by timing of sales[8] - Revenues from Smallpox MCM decreased by $105.9 million, or 86%, in Q2 2024 compared to Q2 2023, primarily due to timing of U.S. government purchases[9] - For Q2 2024, Commercial Products segment revenues decreased by $17.9 million, or 13%, to $120.0 million compared to $137.9 million in Q2 2023[22] - MCM Products segment revenues fell by $100.9 million, or 61%, to $63.4 million in Q2 2024 from $164.3 million in Q2 2023[23] - Services segment revenues increased by $35.6 million, or 122%, to $64.7 million in Q2 2024 compared to $29.1 million in Q2 2023[24] - For the six months ended June 30, 2024, Commercial Products revenues decreased by $5.6 million, or 2%, to $238.5 million compared to $244.1 million in the same period of 2023[25] - MCM Products revenues increased by $17.3 million, or 9%, to $218.8 million for the six months ended June 30, 2024, compared to $201.5 million in the prior year[26] - Services segment revenues increased by $39.7 million, or 91%, to $83.2 million for the six months ended June 30, 2024, compared to $43.5 million in the same period of 2023[27] Expenses and Costs - Operating expenses decreased by 27% to $458.2 million in Q2 2024 from $630.8 million in Q2 2023[13] - Capital expenditures for Q2 2024 were $4.6 million, a 63% decrease from $12.5 million in Q2 2023[19] - Research and Development (R&D) expenses are projected to be around 7% of revenue[31] - The company incurred $110.2 million in settlement charges, which were not present in the previous year's results[52] - Share-based compensation expense decreased to $11.4 million from $15.1 million, indicating cost control measures[51] Cash and Assets - Cash and cash equivalents decreased to $69.7 million as of June 30, 2024, from $111.7 million at the end of 2023[47] - Total assets decreased to $1,513.5 million as of June 30, 2024, down from $1,823.2 million at the end of 2023[49] - Total liabilities decreased to $1,127.2 million as of June 30, 2024, compared to $1,173.9 million at the end of 2023[48] - The company’s total stockholders' equity decreased to $386.3 million as of June 30, 2024, down from $649.3 million at the end of 2023[49] - Total cash, cash equivalents, and restricted cash at the end of the period was $71.0 million, down from $88.6 million at the end of the previous year[51] Forecast and Guidance - The company provided an updated financial forecast for full year 2024 and initial forecast for Q3 2024, reflecting management's expectations based on the most current information available[29] - Commercial Products revenue is projected to be between $450 million and $480 million, a decrease from the previous forecast of $460 million to $500 million[30] - MCM Products revenue is expected to be between $455 million and $490 million, an increase from the previous range of $440 million to $490 million[30] - Services revenue is forecasted to be between $120 million and $130 million, significantly higher than the previous range of $70 million to $80 million[30] - Interest expense is estimated to be approximately $82 million for Full Year 2024[31] - Capital expenditures (Capex) are expected to be approximately $30 million for Full Year 2024[31] - The total segment adjusted gross margin percentage is expected to be between 42% and 45%, slightly down from the previous range of 44% to 47%[30] - The total segment gross margin is forecasted to be between $318 million and $381 million, with a gross margin percentage of 31% to 35%[61] - The company anticipates severance and restructuring costs of $21 million for the year[60] - Impairments are projected to be $27 million, impacting the overall financial outlook[60] - The settlement charge, net, is expected to be $110 million, significantly affecting the adjusted net loss[60]