Maravai LifeSciences(US:MRVI)2024-11-12 22:24Financial Performance - Revenue for the three months ended September 30, 2024, was $65.2 million, a decrease of 2.5% compared to $66.9 million for the same period in 2023[14]. - Net loss attributable to Maravai LifeSciences Holdings, Inc. for the three months ended September 30, 2024, was $99.0 million, compared to a net loss of $6.5 million for the same period in 2023[14]. - For the three months ended September 30, 2024, Maravai LifeSciences reported a net loss of $175,955 thousand, compared to a net loss of $15,102 thousand for the same period in 2023, representing an increase in loss of approximately 1,065%[16]. - The total comprehensive loss attributable to Maravai LifeSciences Holdings, Inc. for the nine months ended September 30, 2024, was $118,701 thousand, compared to $13,070 thousand for the same period in 2023, indicating a significant increase of approximately 810%[16]. - The company experienced a significant increase in net loss for the nine months ended September 30, 2024, with a total loss of $213,127 thousand compared to $28,393 thousand for the same period in 2023, reflecting an increase of approximately 651%[19]. - The Company reported a net loss attributable to Maravai LifeSciences Holdings, Inc. of $99.0 million for the three months ended September 30, 2024, compared to a net loss of $6.5 million for the same period in 2023[90]. - The net loss for the three months ended September 30, 2024, was $175,955,000, compared to a net loss of $15,102,000 for the same period in 2023, indicating a substantial increase in losses[142]. Assets and Liabilities - Total current liabilities decreased from $87.5 million as of December 31, 2023, to $63.2 million as of September 30, 2024[10]. - Goodwill decreased significantly from $326.0 million as of December 31, 2023, to $171.8 million as of September 30, 2024[11]. - Total assets decreased from $1.487 billion as of December 31, 2023, to $1.278 billion as of September 30, 2024[12]. - The stockholders' equity as of September 30, 2024, was $613,127 thousand, a decrease from $897,638 thousand as of June 30, 2023, reflecting a decline of approximately 31.7%[20]. - The total stockholders' equity decreased from $789,884 thousand as of December 31, 2023, to $613,127 thousand as of September 30, 2024, representing a decline of approximately 22.4%[19]. - The total carrying amount of finite-lived intangible assets as of September 30, 2024, was $351.3 million, with a net carrying amount of $201.9 million after accumulated amortization[69]. - As of September 30, 2024, the total long-term debt was $521.7 million, a decrease from $524.1 million as of December 31, 2023[87]. Operating Expenses - Operating expenses for the three months ended September 30, 2024, were $234.3 million, compared to $82.3 million for the same period in 2023, reflecting a substantial increase[14]. - Total operating expenses surged by 184.8% to $234.3 million in Q3 2024 compared to $82.3 million in Q3 2023[130]. - Selling, general and administrative expenses for the three and nine months ended September 30, 2024, were $39.1 million and $120.5 million, respectively, compared to $38.9 million and $112.9 million for the same periods in 2023[111]. - Research and development expenses for the three and nine months ended September 30, 2024, were $4.3 million and $14.7 million, respectively, compared to $4.3 million and $12.7 million for the same periods in 2023, indicating an increase in R&D investment[111]. Revenue Breakdown - Total revenue for the three months ended September 30, 2024, was $65.2 million, with a breakdown of $49.9 million from Nucleic Acid Production and $15.3 million from Safety Testing[42]. - Total revenue for the nine months ended September 30, 2024, was $202.8 million, with $154.4 million from Nucleic Acid Production and $48.3 million from Safety Testing[43]. - Revenue from the Nucleic Acid Production segment was $49.9 million for the three months ended September 30, 2024, down from $51.2 million in the same period of 2023, while for the nine months, it decreased from $165.9 million to $154.4 million[110]. - Nucleic Acid Production revenue decreased by 2.5% to $49.9 million in Q3 2024 from $51.2 million in Q3 2023, primarily due to lower demand for research and discovery products[136]. - Biologics Safety Testing revenue also decreased by 2.5% to $15.3 million in Q3 2024 from $15.6 million in Q3 2023, driven by lower demand in the bioprocessing market[136]. Goodwill Impairment - Goodwill impairment recorded was $154,239 thousand, indicating a substantial impact on financial results[23]. - Goodwill impairment of $154.2 million was recorded during the three months ended September 30, 2024[53]. - A goodwill impairment charge of $154.2 million was recognized for the TriLink reporting unit, as its fair value did not exceed its carrying value[177]. Cash Flow and Investments - Cash provided by operating activities was $22,103 thousand, a significant decrease from $118,434 thousand in the prior year[23]. - The company reported a net cash used in investing activities of $19,385 thousand, down from $109,407 thousand in the previous year[23]. - Cash and cash equivalents increased slightly from $575.0 million as of December 31, 2023, to $578.2 million as of September 30, 2024[11]. - Cash and cash equivalents as of September 30, 2024 were $578.2 million, with positive cash flow from operations of $22.1 million for the nine months ended September 30, 2024[160]. Market and Economic Conditions - The company anticipates ongoing macroeconomic challenges may impact future performance and customer demand[6]. - Economic activity contraction in Asia, particularly in China, has negatively impacted revenue derived from those markets[113]. Employee and Workforce - The company employed over 580 full-time employees as of September 30, 2024, with approximately 27% holding advanced degrees[110]. - The Company implemented a cost realignment plan resulting in the termination of approximately 15% of its workforce, completed on January 5, 2024[62]. Tax and Interest Rates - The effective interest rate on the term loan was 8.28% per annum as of September 30, 2024, with a total term loan facility of $600 million maturing in October 2027[83]. - The effective tax rate for the three months ended September 30, 2024, was (0.2)%, significantly lower than the U.S. federal statutory income tax rate of 21.0%[94]. - The Company had unrecognized tax benefits of $3.4 million as of September 30, 2024, which would affect the effective tax rate if recognized[94].