Repligen(US:RGEN)2019-08-01 20:38Revenue and Growth - Total revenue for Q2 2019 increased by 48.1% to $70.7 million compared to Q2 2018, with product revenue rising by 48.0% to $70.7 million [151]. - Product revenue from chromatography and filtration products significantly contributed to the overall revenue growth, reflecting strong adoption by key bioprocessing customers [154]. - Revenue increased by 48% year-to-date, leading to an increase in accounts receivable that consumed $7.3 million [189]. Expenses and Margins - Gross margins for Q2 2019 were 56.6%, with an adjusted margin of 58.2% excluding amortization related to the C Technologies acquisition [159]. - Research and development expenses decreased by 9.5% in Q2 2019 compared to Q2 2018, primarily due to reduced investment in protein product development [161]. - Selling, general and administrative expenses increased by 42.9% in Q2 2019, driven by expansion in customer-facing activities and infrastructure [164]. - Total costs and operating expenses rose by 37.2% in Q2 2019, primarily due to increased product revenue and associated costs [157]. Income and Profitability - Non-GAAP adjusted income from operations for the three months ended June 30, 2019, was $20.1 million, compared to $7.8 million in 2018, representing a significant increase [175]. - Non-GAAP adjusted net income for the six months ended June 30, 2019, was $28.4 million, compared to $14.1 million in 2018, indicating a growth of 102.0% [177]. - Adjusted EBITDA for the six months ended June 30, 2019, was $39.2 million, up from $20.0 million in 2018, reflecting a 96.5% increase [178]. Cash Flow and Financing - Cash and cash equivalents as of June 30, 2019, were $208.9 million, an increase from $193.8 million at December 31, 2018 [180]. - The company completed a public offering in May 2019, raising approximately $190.2 million, which was partially used to fund the C Technologies acquisition [183]. - Cash provided by financing activities was $190.2 million, primarily from the issuance of common stock totaling $189.6 million [194]. - For the six months ended June 30, 2019, operating activities provided cash of $27.6 million, reflecting a net income of $16.1 million and non-cash charges totaling $18.5 million [189]. Acquisitions - The acquisition of C Technologies was completed for a total purchase price of $239.9 million, enhancing the company's product offerings in bioprocessing technology [148]. - The company acquired C Technologies for $239.9 million, funded by approximately $195.0 million in cash and 779,221 shares of common stock valued at $53.9 million [180]. - The acquisition of C Technologies on May 31, 2019, resulted in a cash outflow of $182.2 million [193]. Future Outlook - The company expects research and development expenses to increase slightly for the remainder of the year to support new product development [162]. - Future capital requirements will depend on various factors, including the expansion of the bioprocessing business and potential acquisitions [195]. - The company plans to continue investing in bioprocessing and key research and development activities for new products [196]. Tax and Interest - The income tax provision for the three and six months ended June 30, 2019, was $1.5 million and $4.0 million, respectively, reflecting an increase of 142.3% and 126.9% compared to the same periods in 2018 [171]. - Interest expense rose by $0.1 million for the three and six months ended June 30, 2019, compared to the same periods in 2018, primarily due to a decrease in the balance of debt issuance costs being amortized [169]. Investment Income - Investment income increased by 96.3% in Q2 2019, contributing positively to the overall financial performance [167]. - Investment income increased by $0.5 million and $1.0 million for the three and six months ended June 30, 2019, respectively, compared to the same periods in 2018, due to higher average invested cash balances and interest rates [168]. Other Financial Information - The company has no off-balance sheet financing arrangements as of June 30, 2019 [197]. - The company had utilized its remaining $19.5 million of net operating loss carryforwards as of December 31, 2018 [200]. - The company does not currently hedge foreign currency exposure, which includes currencies such as the Swedish kronor, Euro, and British pound [206].