Avid Bioservices(US:CDMO)2024-09-09 20:43Financial Performance - Revenues for the first fiscal quarter ended July 31, 2024, were $40.2 million, an increase of 6% or $2.4 million compared to the same period in the prior year[86]. - Gross profit for the quarter was $5.7 million, representing a gross margin of 14%, compared to a gross profit of $4.1 million and a gross margin of 11% in the prior year[98]. - Operating loss for the quarter was $2.5 million, compared to an operating loss of $2.2 million in the prior year, reflecting a $0.3 million increase[100]. - Interest expense rose to $2.5 million, an increase of approximately $1.6 million compared to $0.8 million in the same period last year[101]. - Other income (expense), net was an expense of $0.6 million, compared to income of $0.3 million in the prior year, marking a $0.9 million decrease[102]. Expenses - Selling, general and administrative (SG&A) expenses increased to $8.2 million, a rise of 30% or $1.9 million compared to the same period last year[99]. - SG&A expenses as a percentage of revenues were 20% for the quarter, compared to 17% in the same period last year[99]. Cash Flow and Investments - Net cash used in operating activities for the three months ended July 31, 2024 was $(3,680) thousand, compared to $(236) thousand for the same period in 2023, representing a change of $(3,444) thousand[106]. - Net cash used in investing activities decreased significantly from $(14,156) thousand in 2023 to $(1,311) thousand in 2024, a change of $12,845 thousand[108]. - Net cash provided by financing activities for the three months ended July 31, 2024 was $266 thousand, down from $748 thousand in 2023, a decrease of $482 thousand[110]. Backlog and Revenue Drivers - The company ended the quarter with a backlog of approximately $219 million, up from approximately $189 million at the end of the same quarter in fiscal 2024[86]. - The increase in revenues was primarily attributed to an increase in process development revenues, which rose by $1.9 million[96]. - The company’s backlog as of July 31, 2024 was approximately $219 million, an increase from approximately $193 million as of April 30, 2024[121]. Debt and Obligations - The company completed an offering of $160.0 million aggregate principal amount of 7.00% convertible senior notes due 2029, receiving net proceeds of approximately $153.5 million[111]. - As of July 31, 2024, the company had outstanding lease payment obligations of approximately $81.7 million, with $4.5 million due in the remainder of fiscal 2025[113]. - Anticipated cash required for capital expenditures during fiscal 2025 is approximately $5 million, including $3.1 million of accrued and unpaid capital expenditures as of July 31, 2024[114]. - The company entered into a revolving credit facility with a maximum amount of $50 million, with no outstanding loans as of July 31, 2024[116]. - The credit agreement requires maintenance of a minimum consolidated EBITDA of $15 million for the most recently completed four fiscal quarters, and the company was in compliance as of July 31, 2024[118]. Market Risks - There were no material changes in market risks during the three months ended July 31, 2024[123].