Repligen(US:RGEN)2025-04-29 20:17PART I - FINANCIAL INFORMATION Item 1. Financial Statements This section presents Repligen Corporation's unaudited condensed consolidated financial statements for Q1 2025 and 2024, along with detailed notes on significant financial activities Condensed Consolidated Balance Sheets Total assets increased slightly to $2.85 billion as of March 31, 2025, driven by goodwill and intangible assets from acquisitions, while total liabilities rose to $866.7 million Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $697,229 | $757,355 | | Total current assets | $1,032,465 | $1,066,041 | | Goodwill | $1,082,413 | $1,030,995 | | Intangible assets, net | $409,225 | $397,897 | | Total assets | $2,852,143 | $2,829,666 | | Liabilities & Equity | | | | Total current liabilities | $151,996 | $126,787 | | Convertible Senior Notes due 2028, net | $529,605 | $525,567 | | Total liabilities | $866,660 | $856,948 | | Total stockholders' equity | $1,985,483 | $1,972,718 | Condensed Consolidated Statements of Comprehensive Income (Loss) Q1 2025 total revenue increased 10.4% to $169.2 million, with net income rising to $5.8 million and diluted EPS reaching $0.10 Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $169,172 | $153,182 | | Income from Operations | $6,578 | $3,750 | | Net Income | $5,830 | $3,296 | | Diluted EPS | $0.10 | $0.06 | Condensed Consolidated Statements of Stockholders' Equity Total stockholders' equity increased to $1.985 billion by March 31, 2025, primarily due to $5.8 million in net income and $7.3 million in stock-based compensation - Key changes in stockholders' equity for Q1 2025 include a $5.8 million increase from net income and a $7.3 million increase from stock-based compensation expense12 Condensed Consolidated Statements of Cash Flows Q1 2025 operating cash flow significantly decreased to $15.0 million, with investing activities using $74.1 million primarily for an acquisition, leading to a $60.1 million overall cash decrease Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $15,005 | $44,708 | | Net cash used in investing activities | ($74,108) | ($8,362) | | Net cash used in financing activities | ($5,030) | ($8,974) | | Net (decrease) increase in cash | ($60,126) | $29,294 | - The primary use of cash in investing activities was $69.7 million for an acquisition, net of cash acquired15 Notes to Unaudited Condensed Consolidated Financial Statements These notes detail significant accounting policies, fair value measurements, recent acquisitions, restructuring, revenue recognition, goodwill, debt, equity, income taxes, and segment reporting - On March 4, 2025, the Company acquired 908 Devices Inc.'s PAT Portfolio for cash consideration of $69.9 million, resulting in $50.1 million of goodwill394143 - The company recorded pre-tax restructuring charges of $2.0 million in Q1 2025 as part of its ongoing Restructuring Plan initiated in July 20235253 - The effective tax rate for Q1 2025 was 26.6%, compared to 10.8% for Q1 2024, primarily due to higher pre-tax income and lower stock windfall tax benefits92 - The company operates as a single reportable segment, with Q1 2025 revenue geographically distributed as 50% North America, 35% Europe, and 15% APAC/Other100102 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial results, highlighting a 10.4% revenue increase driven by product performance, the impact of acquisitions, and the company's liquidity position Results of Operations Q1 2025 total revenue increased 10.4% to $169.2 million, with gross margin improving to 53.6%, while operating expenses, particularly SG&A, also rose Revenue and Gross Margin Comparison | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $169.2M | $153.2M | +10.4% | | Gross Margin | 53.6% | 50.1% | +3.5 p.p. | - The increase in product revenue was mainly due to timing of sales for Proteins and strong performance in the Chromatography and Analytics franchises, with newly acquired 908 Devices products contributing $1.0 million119 - SG&A costs increased by $9.5 million (15.3%), primarily driven by a $6.3 million increase in professional services related to acquisition and integration activities128 Liquidity and Capital Resources Cash and cash equivalents decreased to $697.2 million by March 31, 2025, primarily due to the $69.7 million acquisition, with operating cash flow also declining due to working capital changes - Cash and cash equivalents stood at $697.2 million at the end of Q1 2025135 - Working capital decreased by $58.8 million to $880.5 million, primarily due to the 908 Devices PAT Portfolio acquisition in March 2025136 - Cash from operating activities decreased by $29.7 million YoY, driven by an increase in accounts receivable and a decrease in accounts payable and accrued expenses139140 - The company believes current cash balances are adequate to meet cash needs for at least the next 24 months, absent major acquisitions or debt conversions148 Item 3. Quantitative and Qualitative Disclosures About Market Risk No material changes to the company's market risk exposure were reported during Q1 2025 compared to the prior annual report - There were no material changes to the company's market risk exposure during Q1 2025155 Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to previously identified material weaknesses in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were not effective as of March 31, 2025157 - The ineffectiveness is due to three previously reported material weaknesses concerning: 1) revenue recognition controls, 2) IT general controls (access and change management), and 3) business process controls for inventory valuation and financial close158162 - A remediation plan is being implemented to address the deficiencies, but the material weaknesses have not yet been remediated159160163 PART II - OTHER INFORMATION Item 1. Legal Proceedings The company is not aware of any material legal proceedings or claims that would adversely affect its business or financial condition - The company is not aware of any material legal proceedings or claims against it166 Item 1A. Risk Factors No material changes to risk factors from the most recent Form 10-K have been reported - No material changes to risk factors from the most recent Form 10-K have been reported167 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None168 Item 5. Other Information No Rule 10b5-1 trading plan activities by directors or officers were reported for the fiscal quarter ended March 31, 2025 - No Rule 10b5-1 trading plan activities by directors or officers were reported for the quarter171 Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents