Surmodics(SRDX) - 2024 Q3 - Quarterly Results

Revenue Performance - Total revenue for Q3 FY 2024 was $30.3 million, a decrease of $22.1 million or 42% compared to $52.5 million in Q3 FY 2023[2] - Total revenue for Q3 Fiscal 2024 was $30.3 million, a decrease of $22.1 million, or 42%, compared to $52.5 million in the prior-year period[51] - Excluding SurVeil DCB license fee revenue, total revenue increased by $2.6 million, or 10%, to $29.2 million compared to $26.6 million in Q3 Fiscal 2023[52] - Total revenue for the nine months ended June 30, 2024, was $92.851 million, a decrease of $11.763 million compared to $104.614 million for the same period in 2023[63] Segment Performance - Medical Device revenue decreased by $22.6 million or 49% to $23.4 million, while In Vitro Diagnostics revenue increased by $0.5 million or 8% to $7.0 million[3] - Medical Device product sales increased by $1.4 million or 15% to $10.7 million, driven by commercial shipments of the SurVeil DCB and growth in the Pounce thrombectomy device[3] - Medical Device revenue, excluding SurVeil DCB license fees, increased by $2.1 million or 10% to $22.2 million[12] - Medical Device segment reported an operating loss of $(2.3) million, a decrease of $(24.1) million compared to the prior year[41] - In Vitro Diagnostics segment reported operating income of $3.2 million, an increase of $0.3 million compared to the prior year[41] - Medical Device revenue, excluding SurVeil DCB license fees, increased by $12.316 million to $68.561 million for the nine months ended June 30, 2024[63] - Medical Device segment reported an operating loss of $2,210 thousand, a decrease of $9,693 thousand compared to the previous year[64] - In Vitro Diagnostics segment achieved an operating income of $9,633 thousand, an increase of $183 thousand year-over-year[64] - Total segment operating income was $865,000, a decrease of $23.8 million compared to the prior year[41] - Total segment operating income was $7,423 thousand, down by $9,510 thousand from the prior year[64] Financial Losses and Adjusted Metrics - Surmodics reported a net loss of $7.6 million for Q3 FY 2024, compared to a net income of $7.3 million in the same period last year[14] - GAAP net loss was $(7.6) million, or $(0.53) per diluted share, compared to net income of $7.3 million, or $0.52 per diluted share in the prior-year period[49] - Adjusted EBITDA for Q3 FY 2024 was $1.6 million, down from $24.6 million in Q3 FY 2023[4] - Adjusted EBITDA for Q3 Fiscal 2024 was $1.6 million, down from $24.6 million in the prior-year period[51] - Non-GAAP operating income was $10,712 thousand, representing a 10.2% increase from $8,388 thousand[66] - Diluted EPS was reported at $(0.59), reflecting a net loss of $(8,230) thousand[66] Operating Costs and Expenses - Operating costs and expenses, excluding product costs, increased by $3.1 million or 13% to $27.3 million, primarily due to merger-related charges[23] - Operating costs increased to $35.710 million for the three months ended June 30, 2024, up from $31.071 million in the prior year[60] - The company reported a significant increase in product costs to $8.448 million for the three months ended June 30, 2024, compared to $6.921 million in the same period last year[60] - Corporate operating loss was $(6.2) million, an increase of $(3.0) million compared to the prior year[41] - Corporate segment incurred an operating loss of $12,455 thousand, an increase in loss of $3,122 thousand compared to the previous year[64] - Total operating loss was $5,032 thousand, a decrease of $12,632 thousand from the previous year[64] Acquisition and Corporate Actions - The company is in the process of being acquired by GTCR for $43.00 per share, totaling an equity valuation of approximately $627 million, representing a 41.1% premium[6] - The company announced a definitive agreement to be acquired by GTCR for $43.00 per share, representing an approximate equity value of $627 million[47] - Surmodics is suspending its previously issued financial guidance for fiscal 2024 due to the pending acquisition by GTCR[55] - The company will not host a live webcast for Q3 FY 2024 results due to the pending acquisition[5] Cash and Assets - As of June 30, 2024, Surmodics had $38.2 million in cash and investments, with $5.0 million in outstanding borrowings on its revolving credit facility[24] - Cash and cash equivalents decreased to $24.301 million as of June 30, 2024, down from $41.419 million at the end of the previous period[61] - Total assets decreased to $177.413 million as of June 30, 2024, compared to $185.733 million as of September 30, 2023[61] - Total liabilities decreased to $59.269 million as of June 30, 2024, from $65.823 million as of September 30, 2023[61] Other Financial Adjustments - Amortization of acquired intangible assets accounted for $2,659 thousand, contributing 2.5% to the overall expenses[66] - Restructuring expenses totaled $1,282 thousand, representing 1.2% of total expenses[66] - Contingent consideration fair value adjustment resulted in a negative impact of $(829) thousand, or (0.8%) on the financials[66]