Avid Bioservices(CDMO) - 2024 Q4 - Annual Results

Financial Performance - Q4 FY 2024 revenues reached $43.0 million, an 8% increase from $39.8 million in Q4 FY 2023; however, full fiscal year revenues decreased by approximately 6% to $139.9 million from $149.3 million[3] - Gross profit for Q4 FY 2024 was $5.5 million (13% gross margin), down from $8.4 million (21% gross margin) in Q4 FY 2023; full fiscal year gross profit was $7.3 million (5% gross margin) compared to $31.5 million (21% gross margin) in FY 2023[14] - Adjusted EBITDA for Q4 FY 2024 was $3.9 million, compared to $6.3 million in Q4 FY 2023; full fiscal year adjusted EBITDA was $2.0 million compared to $21.7 million in FY 2023[12] - The company reported a net loss of $123.1 million or $1.94 per share for Q4 2024, compared to a net loss of $0.3 million or $0.01 per share in Q4 2023[30] - Avid recorded an adjusted net loss of approximately $4.6 million for Q4 2024, excluding a significant income tax provision[30] Revenue Guidance and Backlog - FY 2025 revenue guidance is projected to be between $160 million and $168 million, reflecting enhancements and expansions to serve both biotech and large pharma customers[2] - The company expects fiscal 2025 revenue guidance of between $160 million and $168 million, indicating a year-over-year growth of 17% at the midpoint[25] - The commercial team signed new orders totaling approximately $30 million in Q4 FY 2024, resulting in a backlog of $193 million, expected to be recognized as revenue over the next five fiscal quarters[16] - Avid's total backlog as of April 30, 2024, was $193 million, consistent with $191 million at the end of the same quarter last year[29] Tax and Liabilities - The company recorded an income tax expense of $117.9 million in Q4 FY 2024, significantly up from $0.9 million in Q4 FY 2023; full fiscal year income tax expense was $113.8 million compared to $1.3 million in FY 2023[4] - A valuation allowance of $118.5 million was recorded for deferred tax assets due to a net cumulative loss over the three-year period ending April 30, 2024[4] - Total liabilities increased to $275.7 million as of April 30, 2024, compared to $262.4 million in the previous year[38] Operational Insights - The decrease in revenues for FY 2024 was primarily attributed to fewer manufacturing runs and a reduction in process development services from early-stage programs[3] - The company anticipates an increase in utilization of its facilities as new programs are onboarded, which is expected to improve margins[2] - Operating expenses for Q4 2024 were $6.8 million, a decrease of 10% compared to $7.6 million in Q4 2023[42] - The company completed a three-year expansion program, increasing its annual revenue-generating capacity from approximately $120 million in fiscal 2021 to over $400 million[40] Sustainability - The company achieved a Committed Badge from EcoVadis, scoring 56 and placing in the 62nd percentile globally for sustainability[44]