Inotiv(US:NOTV)2025-05-08 00:28Revenue Performance - Total revenue for the three months ended March 31, 2025, was $124.3 million, a 4.4% increase compared to $119.0 million for the same period in 2024[12]. - Product revenue increased by 9.5% to $68.2 million for the three months ended March 31, 2025, compared to $62.1 million for the same period in 2024[12]. - Service revenue decreased to $56.1 million for the three months ended March 31, 2025, from $57.0 million in the same period of 2024, reflecting a decline of 3.1%[12]. - Revenue from the United States for the three months ended March 31, 2025, was $112.151 million, an increase from $102.429 million in Q2 2024[54]. - DSA revenue decreased by $1,299, or 2.8%, to $45,332 for the three months ended March 31, 2025, primarily due to a decline in general toxicology services revenue[180]. - RMS revenue increased by $6,587, or 9.1%, to $78,991 for the three months ended March 31, 2025, attributed to higher NHP volumes sold[182]. - Revenue for the six months ended March 31, 2025, was $156,045, a decrease of $7,162 or 4.4% compared to $163,207 for the same period in 2024[192]. Financial Losses and Improvements - The consolidated net loss for the three months ended March 31, 2025, was $14.9 million, compared to a net loss of $48.1 million for the same period in 2024[14]. - Basic loss per common share for the three months ended March 31, 2025, was $(0.44), an improvement from $(1.86) in the same period of 2024[12]. - Consolidated net loss for the six months ended March 31, 2025, was $42,496,000, compared to a loss of $63,907,000 for the same period in 2024, indicating an improvement[19]. - The company reported an operating loss of $2.938 million for the three months ended March 31, 2025, compared to a loss of $43.116 million in the same period of 2024[53]. - The company reported a loss before income taxes of $15.976 million for the three months ended March 31, 2025, compared to a loss of $54.443 million in the same period of 2024[53]. - Consolidated net loss for the three months ended March 31, 2025, was $14,866,000, compared to a loss of $48,079,000 for the same period in 2024[141]. Assets and Liabilities - Total current assets increased to $173.7 million as of March 31, 2025, from $163.4 million as of September 30, 2024, representing a growth of 6.9%[10]. - Total liabilities decreased slightly to $608.3 million as of March 31, 2025, from $610.9 million as of September 30, 2024[10]. - The company reported an increase in inventories to $38.0 million as of March 31, 2025, compared to $18.2 million as of September 30, 2024, indicating a significant rise of 109.9%[10]. - Cash and cash equivalents decreased to $19.3 million as of March 31, 2025, from $21.4 million as of September 30, 2024[10]. - The company’s accumulated deficit increased to $(604.7) million as of March 31, 2025, from $(562.2) million as of September 30, 2024[10]. - Long-term debt as of March 31, 2025, was $392.394 million, slightly up from $389.801 million as of September 30, 2024[57]. Capital Expenditures and Investments - Capital expenditures for the six months ended March 31, 2025, were $9,932,000, down from $12,594,000 in the same period of 2024[19]. - Capital expenditures for DSA were $1.105 million in Q2 2025, up from $929 thousand in Q2 2024, while RMS capital expenditures decreased to $4.368 million from $6.093 million[53]. - The company plans to optimize capital allocation and improve operating results through increased revenue from non-human primate-related products and services[33]. - The company anticipates that Phase Two will require a capital investment of approximately $6,500 and is expected to provide net annual savings of $6,000 to $7,000[172]. Debt and Financial Covenants - The company is at risk of non-compliance with its financial covenants if operational results do not improve in the next twelve months[29]. - The Company entered into a Seventh Amendment to the Credit Agreement, waiving existing financial covenants until June 30, 2025, and establishing new testing ratios for the Fixed Charge Coverage Ratio and Secured Leverage Ratio starting June 30, 2025[31]. - The Company has approximately 55 days after any fiscal quarter to cure noncompliance with financial covenants, and approximately 100 days after fiscal year-end[33]. - The Company does not believe its existing cash and cash equivalents would be sufficient to fund operations if loans under the Credit Agreement were accelerated[30]. Stock and Equity - The company issued 6,900,000 common shares, raising net proceeds of $27,524,000 after deducting underwriting discounts and commissions[27]. - The company raised $27,524,000 in net proceeds from a public offering of 6,000,000 common shares at a price of $4.25 per share[135]. - As of March 31, 2025, there were 903,240 shares available for grants under the 2024 Equity Incentive Plan[138]. - The company has 10,797,000 anti-dilutive common share equivalents as of March 31, 2025, due to stock options and other instruments[141]. Operational Challenges and Future Outlook - Operating cash flows for the six months ended March 31, 2025, were negative, reflecting ongoing operational challenges[19]. - Management's operating plan forecasts compliance with financial covenants under the Credit Agreement for the next twelve months, but substantial doubt about the Company's ability to continue as a going concern exists[35]. - The company anticipates a more consistent revenue stream in calendar 2025 due to expanded NHP client base and pre-sold NHP inventory, compared to fiscal 2024[168]. - The company expects revenue from colony management services to continue increasing in calendar 2025 compared to calendar 2024[168]. - The company achieved approximately $17,000 - $19,000 in net annual cost savings as a result of its restructuring and site optimization plans completed by September 30, 2024[170].