Inotiv(US:NOTV)2025-12-05 13:53Revenue and Financial Performance - Revenue for the fiscal year ended September 30, 2025, increased to $513,024 from $490,739 in the fiscal year ended September 30, 2024, representing a 4.7% increase in RMS revenue and a 4.3% increase in DSA revenue[300] - DSA revenue for the twelve months ended September 30, 2025, was $187,943, an increase of $7,827 or 4.3% compared to the previous year[305] - RMS revenue increased to $325,081 for the fiscal year ended September 30, 2025, representing a growth of $14,458 or 4.7%[308] - The Company reported a consolidated net loss of $68,625 for the twelve months ended September 30, 2025, compared to a net loss of $108,885 for the same period in 2024, reflecting an improvement of 37%[319] - Net loss attributable to common shareholders decreased to $68,625 from $108,445, primarily due to the reduction in operating loss[302] - For the fiscal year ended September 30, 2025, the operating loss was $30,902, a decrease of $55,504 from the operating loss of $86,406 in the previous fiscal year[301] - Operating loss decreased to $30,902 for the fiscal year ended September 30, 2025, from $86,406 in fiscal 2024, representing a reduction of 64.2%[320] Cash Flow and Liquidity - As of September 30, 2025, the company had $21,741 in cash and cash equivalents, with total debt amounting to $402,123[303] - Cash and cash equivalents as of September 30, 2025, were $21,741, slightly up from $21,432 as of September 30, 2024[328] - Net cash used in operating activities was $10,455 for fiscal 2025, compared to $6,805 for fiscal 2024, indicating increased cash outflows[328] - Financing activities generated net cash of $23,701 in fiscal 2025, significantly higher than $9,675 in fiscal 2024, primarily due to proceeds from common share issuance[333] Debt and Financing - The company is exploring potential debt refinancing alternatives with the assistance of Perella Weinberg Partners[304] - The Company is exploring potential debt refinancing alternatives and is in discussions with lenders regarding current business conditions[326] - The Company issued $22,000 in Second Lien Notes and warrants to purchase 3,946,250 shares of common stock for $17,000 in cash and the cancellation of $8,333 of existing notes[341] - The Company issued $140,000 principal amount of Convertible Senior Notes, with an additional $15,000 option exercised by the initial purchaser[385] - The aggregate principal amount of Notes remaining outstanding after cancellations is $131,667[386] - The Company has incurred unamortized debt issuance costs of $2,093 and $3,031 related to the Notes as of September 30, 2025, and 2024, respectively[389] Operational Efficiency and Cost Management - The company achieved approximately $17,000 to $19,000 in net annual cost savings as a result of restructuring and site optimization plans[283] - Phase Two of the site optimization plan is expected to require a capital investment of approximately $6,500 and provide net annual savings of $6,000 to $7,000[284] - The Company plans to optimize capital allocation and improve operating results through increased revenue from NHP-related products and services in fiscal 2026[325] Market and Client Growth - The company anticipates continued growth in its NHP client base and has pre-sold NHP inventory to deliver a more consistent revenue stream[281] - The company is focused on expanding existing client relationships and acquiring new clients, particularly in the DSA segment to serve the emerging biopharmaceutical market[278] Legal and Compliance Matters - The company recorded an $11,000 liability and an insurance recovery receivable of $11,000 as of September 30, 2025, related to proposed settlements of securities class action and derivative lawsuits[293] - The company is in the process of providing notifications regarding a cybersecurity incident that occurred between August 5-8, 2025, with ongoing evaluations of its operational and financial impacts[294] Tax and Accounting - The effective income tax rate increased to 21.8% in fiscal 2025 from 16.7% in fiscal 2024, with income tax benefits recorded of $19,143 and $21,875, respectively[318] - The company uses the asset and liability approach for financial accounting and reporting of income taxes, with deferred income taxes reflecting temporary differences between financial reporting and tax purposes[414] - The company recognizes deferred tax assets only if it believes they are more likely than not to be realized, considering future taxable income and tax-planning strategies[415] Asset Management - Goodwill is reviewed for impairment annually, with an assessment date of September 30, and is not amortized[419] - The company amortizes definite-lived intangible assets over their estimated useful lives, with customer relationships ranging from 5 to 13 years[423] - Long-lived assets are reviewed for impairment whenever events indicate that the carrying amount may not be recoverable, based on future cash flow estimates[424]