Workflow
Avid Bioservices(CDMO) - 2023 Q4 - Annual Report
CDMOAvid Bioservices(CDMO)2023-06-20 16:00
Transcript

Financial Performance - For fiscal year 2023, total revenues increased by 29.7million,withmanufacturingrevenuesupby29.7 million, with manufacturing revenues up by 26.1 million and process development revenues up by 3.6millioncomparedtofiscalyear2022[303].−Operatingincomedecreasedto3.6 million compared to fiscal year 2022[303]. - Operating income decreased to 3.6 million in fiscal 2023, down from 15.4millioninfiscal2022,primarilyduetoa15.4 million in fiscal 2022, primarily due to a 5.2 million decrease in gross profit and a 6.7 million increase in SG&A expenses[307]. - Income tax expense for fiscal 2023 was 1.4 million, compared to a benefit of 115.0millioninfiscal2022,reflectingthefirstyearofincometaxexpense[310].−Otherincome(expense),netwas115.0 million in fiscal 2022, reflecting the first year of income tax expense[310]. - Other income (expense), net was 1.0 million for fiscal 2023, an increase of 1.1millionfromanexpenseof1.1 million from an expense of 0.1 million in fiscal 2022, mainly due to increased interest income[309]. Expenses - Selling, general and administrative (SG&A) expenses rose to 27.9millioninfiscal2023,anincreaseof3127.9 million in fiscal 2023, an increase of 31% from 21.2 million in fiscal 2022[278]. - SG&A expenses as a percentage of revenues were 19% in fiscal 2023, compared to 18% in fiscal 2022[306]. - The company expects gross profit to be impacted in the near term due to increased fixed costs from recent hiring and facility expansions[277]. Cash Flow - Net cash used in operating activities for fiscal year 2023 was (12.9)million,adecreaseof(12.9) million, a decrease of (22.4) million compared to 9.5millioninfiscalyear2022[322].−Netcashusedininvestingactivitieswas9.5 million in fiscal year 2022[322]. - Net cash used in investing activities was (77.6) million, primarily for the acquisition of property and equipment related to the expansion of the Myford facility and the construction of the CGT Facility[323]. - Net cash provided by financing activities was 2.9million,adecreaseof2.9 million, a decrease of (296) thousand compared to 3.2millioninthepreviousyear[322].AssetsandLiabilities−AsofApril30,2023,thecompanyhadcashandcashequivalentsof3.2 million in the previous year[322]. Assets and Liabilities - As of April 30, 2023, the company had cash and cash equivalents of 38.5 million, which is expected to be sufficient to fund operations for at least the next 12 months[290]. - The company is in compliance with its Credit Agreement's financial covenant, which requires maintenance of a minimum consolidated EBITDA of 15million[296].FacilityandCapacity−ThecompanycompletedfacilityexpansionsinApril2023,whichareexpectedtoincreasetotalrevenue−generatingcapacitytoapproximately15 million[296]. Facility and Capacity - The company completed facility expansions in April 2023, which are expected to increase total revenue-generating capacity to approximately 400 million annually[269]. Equity and Compensation - The company maintains equity compensation plans that allow for stock options and restricted stock units, with expenses recognized over the requisite service periods[319]. - The Convertible Notes have a fixed interest rate of 1.25% per annum, maturing on March 15, 2026, and are convertible into cash, shares, or a combination thereof[325]. Revenue Recognition - Cancellation or postponement fees from customer contracts are recognized as revenue upon the cancellation or postponement date, subject to variable consideration[317]. - The company allocates transaction prices for contracts with multiple performance obligations based on relative standalone selling prices[316].