ADMA Biologics(ADMA) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, ADMA Biologics achieved a net income of $197.7 million, marking the first time in its history that it reported net income on a GAAP basis [337]. - Total revenues for the year ended December 31, 2024, were$426.5 million, an increase of $168.2 million or 65$258.2 million in 2023 [355]. - Gross profit for 2024 was $219.6 million, representing a gross margin of 51.5$197.7 million, an improvement of $225.9 million compared to a net loss of$28.2 million in 2023 [367]. - Adjusted EBITDA for 2024 was $164.6 million, compared to$40.3 million in 2023, reflecting significant operational improvements [354]. - The company expects Adjusted Net Income to exceed $175 million and$235 million in fiscal years 2025 and 2026, respectively [333]. - The company reported pre-tax income and GAAP net income of $125.7 million and$197.7 million for the year ended December 31, 2024, respectively [389]. Revenue Growth - The increase in revenues was primarily driven by higher sales of ASCENIV and other immunoglobulin products, along with a $2.2 million increase in plasma sales [355]. - ASCENIV's prescriber and patient base expanded during 2024, leading to record utilization and sustained demand trends into 2025 [339]. - The company expects further shifts in revenue mix toward higher margin IVIG products in fiscal 2025 [357]. - Total revenues for the year ended December 31, 2023, were$258.2 million, an increase of $104.1 million or approximately 68$154.1 million in 2022 [369]. Operational Efficiency - The company generated positive cash flow from operations of $118.7 million, primarily driven by substantial revenue growth and acceptance of ASCENIV [337]. - Positive cash flow from operations was$118.7 million for the year ended December 31, 2024, compared to $8.8 million for the year ended December 31, 2023 [387]. - Research and development expenses decreased to$1.8 million in 2024 from $3.3 million in 2023, primarily due to the absence of expenditures related to BIVIGAM [358]. - Plasma center operating expenses significantly decreased from$17.8 million in 2022 to $4.3 million in 2023, attributed to increased plasma collection efficiency [373]. Debt and Financing - The company entered into a senior secured credit facility with Ares Capital Corporation, providing$135.0 million in total, including a term loan of $62.5 million and a revolving credit facility of$72.5 million [391]. - As of December 31, 2024, the outstanding balance on the revolving credit facility was $42.5 million, and the term loan balance was$32.5 million [392]. - The interest rate on the term loan was approximately 10.9% and on the revolving facility was approximately 8.3% as of December 31, 2024 [393]. - The company incurred a loss on the extinguishment of the Hayfin Credit Facility amounting to $26.2 million in the year ended December 31, 2023 [391]. - Net cash used in financing activities for 2024 was$58.3 million, primarily due to $60.0 million in debt principal payments [409]. Future Outlook - The company anticipates filing a supplemental Biologics License Application for ASCENIV in mid-2025, with potential FDA approval in the first half of 2026 for pediatric use [340]. - The company expects total capital expenditures for fiscal 2025 to be between$12.0 million and $18.0 million [408]. - The company anticipates that its current cash, cash equivalents, and accounts receivable will be sufficient to fund operations through the end of the first quarter of fiscal 2026 [389]. Strategic Initiatives - The company is exploring various strategic alternatives and value-creating opportunities as a top corporate priority [390]. - ADMA's Boca Facility has a peak annual processing capability of up to 600,000 liters, with projected annual revenues exceeding$490 million in 2025 and $605 million in 2026 [333]. - The innovative yield enhancement production process, submitted for FDA approval in December 2024, is expected to increase production yields by approximately 20$74.1 million in 2024, reflecting a $6.4 million rise in stock-based compensation [361]. - Interest expense decreased to$13.9 million in 2024 from $25.0 million in 2023, due to a reduction in debt principal and lower interest rates [363]. - Inflation has impacted various aspects of the business, leading to increased costs for raw materials, labor, and transportation, with expectations for some relief in 2025 [411]. - The company does not currently utilize derivative financial instruments to mitigate interest rate risk associated with its senior credit facility [412]. - A hypothetical 100 basis points increase in interest rates would have an approximate$0.8 million annualized negative impact on the company's earnings and cash flows [412].