Repligen(RGEN) - 2024 Q4 - Annual Results

Revenue and Growth - Fourth quarter revenue was $168 million, representing a 13% growth excluding COVID-related revenue[6] - Full year revenue for 2024 reached $634 million, compared to $632 million in 2023[7] - Orders in Q4 outpaced revenue by 6%, with sequential increases of 11% in orders and 8% in revenues[6] - The company provided guidance for 2025, expecting total reported revenue growth of 8% to 12% and non-COVID revenue growth of 10% to 14%[10] Profit and Loss - Q4 GAAP gross profit was $39 million, with an adjusted gross profit of $85 million[7] - Q4 GAAP net loss was $(34) million, while adjusted net income was $25 million[12] - The company reported a GAAP gross margin of 23.2% for Q4 2024, down from 47.1% in Q4 2023[9] - Net loss for Q4 2024 was $33.9 million, compared to a net loss of $16.5 million in Q4 2023[22] - Adjusted net income for the year ended December 31, 2024, was $88.8 million, down from $93.2 million in 2023[26] Expenses - Research and development expenses for Q4 2024 were $11.7 million, up from $10.3 million in Q4 2023[22] - Selling, general and administrative expenses increased to $60.5 million in Q4 2024 from $57.6 million in Q4 2023[22] - The company reported an adjusted income from operations of $25.0 million for Q4 2024, compared to $29.7 million in Q4 2023[25] - Research and development (R&D) expenses (GAAP) for the year ended December 31, 2024, were $43,200 thousand, slightly up from $42,722 thousand in 2023, with adjusted R&D expenses (Non-GAAP) of $42,266 thousand, down from $42,611 thousand[30] - Selling, general and administrative (SG&A) expenses (GAAP) for the year ended December 31, 2024, were $263,368 thousand, compared to $218,584 thousand in 2023, while adjusted SG&A expenses (Non-GAAP) were $195,621 thousand, up from $179,607 thousand[31] Cash and Assets - Cash and cash equivalents at the end of 2024 were $757 million, up from $751 million at the end of 2023[9] - Cash, cash equivalents, and marketable securities totaled $757.4 million as of December 31, 2024, compared to $751.3 million at the end of 2023[22] - Total assets decreased slightly to $2.83 billion as of December 31, 2024, from $2.83 billion at the end of 2023[22] Guidance and Projections - The company anticipates a GAAP net income guidance for the year ending December 31, 2025, in the range of $51,000 thousand to $56,000 thousand, with adjusted net income (Non-GAAP) guidance of $95,000 thousand to $100,000 thousand[32] - The guidance for diluted earnings per share (GAAP) for the year ending December 31, 2025, is projected between $0.90 and $0.99, with adjusted diluted earnings per share (Non-GAAP) guidance of $1.67 to $1.76[33] Restructuring and Strategic Planning - The company recorded pre-tax costs of $46.9 million and $32.2 million in 2024 and 2023, respectively, related to restructuring activities aimed at streamlining operations[36] - The company reviewed its manufacturing strategy and footprint as part of the 2024 annual strategic planning and budget session[40] - Future demand and product mix projections were revised during the annual strategic planning and budget sessions in 2024[39] Inventory and Charges - Non-cash inventory write-off in 2024 resulted from discontinuing certain product SKUs and evaluating inventory positions amid turbulent market conditions[39] - In Q4 2024, non-cash charges included write-off of abandoned equipment related to unneeded capacity for a specific product line, with plans to reallocate factory space[40] - Incremental stock compensation expense of $16 million for Q4 2024 and $22.362 million for the full year was due to the CEO's transition to Executive Chair[41] - Foreign currency adjustments on intercompany loans amounted to ($4.883 million) for Q4 2024 and ($5.509 million) for the full year[41] - Amortization of milestone payments was $28 million for Q4 2024 and 2023, and $112 million for the full year[41] - Accelerated depreciation related to the restructuring plan was $19 million for the full year 2024[41] Market Conditions - The company proactively secured materials during the pandemic to meet accelerated demand, impacting inventory write-offs[38]