Inotiv(US:NOTV)2025-05-07 20:10Revenue Performance - Q2 FY 2025 revenue increased 4.4% to $124.3 million compared to $119.0 million in Q2 FY 2024, driven by a $6.6 million increase in RMS revenue[6] - Year-to-date FY 2025 revenue declined 4.1% to $244.2 million from $254.5 million in YTD FY 2024, with a $7.2 million decrease in RMS revenue and a $3.2 million decrease in DSA revenue[12] - Total revenue for the three months ended March 31, 2025, was $124.323 million, a 4.4% increase compared to $119.035 million for the same period in 2024[25] - Total revenue for the three months ended March 31, 2025, was $124.323 million, an increase from $119.035 million in the same period of 2024, representing a growth of 2.4%[32] - Product revenue increased to $68.195 million for the three months ended March 31, 2025, up 9.5% from $62.074 million in the same period last year[25] Profitability and Loss - Consolidated net loss for Q2 FY 2025 was $14.9 million, or 12.0% of total revenue, an improvement from a net loss of $48.1 million, or 40.4% of total revenue, in Q2 FY 2024[6] - Consolidated net loss for the six months ended March 31, 2025, was $42.496 million, an improvement from a net loss of $63.907 million for the same period in 2024[29] - GAAP consolidated net loss for the three months ended March 31, 2025, was $14.866 million, which is an improvement from a loss of $48.079 million in the same period of 2024[36] - The company reported a basic loss per common share of $0.44 for the three months ended March 31, 2025, an improvement from a loss of $1.86 per share in the same period of 2024[25] Operating Performance - Adjusted EBITDA for Q2 FY 2025 was $8.0 million, or 6.4% of total revenue, compared to $3.1 million, or 2.6% of total revenue, in Q2 FY 2024[6] - Adjusted EBITDA for the three months ended March 31, 2025, was $7.957 million, compared to $3.076 million in 2024, indicating an increase of 159.3%[36] - Operating loss for Q2 FY 2025 was $2.9 million, significantly improved from an operating loss of $43.1 million in Q2 FY 2024[11] - Operating loss for the three months ended March 31, 2025, was $2.938 million, significantly reduced from an operating loss of $43.116 million in the same quarter of 2024[25] - Non-GAAP operating income for the RMS segment was $15.558 million for the three months ended March 31, 2025, compared to $8.214 million in the same period last year, representing an increase of 89.5%[31] - Non-GAAP operating income for the three months ended March 31, 2025, was $7.855 million, compared to $3.088 million in 2024, reflecting a significant increase of 154.5%[32] - Unallocated corporate operating loss decreased to $(14.314) million for the three months ended March 31, 2025, from $(15.365) million in 2024, improving as a percentage of total revenue from (12.9)% to (11.5)%[32] Cash and Debt Management - Cash and cash equivalents were $19.3 million at March 31, 2025, down from $21.4 million at September 30, 2024[14] - Cash and cash equivalents at the end of the period were $19.299 million, down from $21.432 million at the beginning of the period[29] - Total debt as of March 31, 2025, was $399.5 million, with no borrowings on the $15.0 million revolving credit facility[15] - Total current assets increased to $173.658 million as of March 31, 2025, compared to $163.413 million as of September 30, 2024[27] - Total liabilities decreased slightly to $608.274 million as of March 31, 2025, from $610.857 million as of September 30, 2024[27] - The company issued common shares resulting in $27.524 million in financing activities during the six months ended March 31, 2025[29] Backlog and Future Expectations - DSA backlog was $130.8 million at March 31, 2025, down from $142.1 million at March 31, 2024[6] - The book-to-bill ratio for Q2 FY 2025 was 1.01x for the DSA services business[6] - The company expects U.S. optimization plans to be completed by the end of Q2 FY 2026[14] Restructuring and Legal Costs - The company incurred restructuring costs of $1.009 million for the three months ended March 31, 2025, down from $1.368 million in the same period of 2024[36] - Legal settlement costs for the three months ended March 31, 2025, were $(7.550) million, reflecting a significant charge related to a settlement payment received from FNI[36] Non-GAAP Adjustments - Total non-GAAP adjustments to operating loss for the three months ended March 31, 2025, amounted to $10.793 million, significantly lower than $46.204 million in 2024[32] - Non-GAAP operating loss as a percentage of total revenue improved to (10.2)% for the three months ended March 31, 2025, from (11.2)% in 2024[32]