Avid Bioservices(CDMO)2021-12-06 16:00Financial Performance - Revenues for the second quarter ended October 31, 2021, were $26.1 million, an increase of 24% or $5.0 million compared to the same period in the prior year[117]. - Net income attributable to common stockholders for the second quarter was $3.5 million, or $0.06 per basic and diluted share[117]. - Gross profit for the three months ended October 31, 2021, was $9.2 million, with gross margins of 35%, compared to $6.4 million and 30% in the prior year[130]. - Revenues for the six months ended October 31, 2021 were $56.9 million, an increase of $10.4 million or 22% compared to $46.5 million for the same period in the prior year[135]. - Gross profit increased to $20.6 million for the six months ended October 31, 2021, up approximately $5.6 million, with gross margins improving from 32% to 36%[136]. - Operating income for the second quarter was $4.2 million, an increase of $1.9 million year-over-year, attributed to a $2.8 million increase in gross profit[131]. - Operating income improved to $11.1 million, a $4.1 million increase year-over-year, driven by higher gross profit[137]. - Interest expense for the second quarter was $0.7 million, attributed to outstanding Convertible Notes issued in March 2021[132]. - Interest expense was $1.4 million for the six months ended October 31, 2021, attributed to outstanding Convertible Notes issued in March 2021[140]. - Net cash provided by operating activities decreased by $4.5 million to $3.7 million compared to $8.1 million in the prior year[144]. Expenses and Costs - Selling, general and administrative (SG&A) expenses increased to $5.0 million, a rise of approximately 21% compared to $4.2 million in the prior year[131]. - SG&A expenses rose to $9.5 million, an increase of approximately $1.5 million or 19%, maintaining 17% of revenues for both periods[137]. - Capital expenditures for the six months ended October 31, 2021 were $11.8 million, with anticipated annual expenditures of $55 to $65 million for facility expansions[153]. Expansion Plans - The company plans to expand its CDMO service offerings into the cell and gene therapy market, including a new viral vector development facility with an estimated cost of $65 million to $75 million[119]. - The ongoing expansion of the Myford facility is expected to cost approximately $70 million to $75 million and will increase total revenue-generating capacity to up to $270 million annually[118]. - The total revenue-generating capacity, including the new viral vector facility and ongoing expansions, is projected to exceed $350 million annually[119]. Operational Insights - The company has not experienced significant operational impacts from the COVID-19 pandemic, maintaining essential services and implementing safety measures[120]. - Backlog as of October 31, 2021 was approximately $120 million, up from $118 million as of April 30, 2021[159]. - The company may need additional equity or debt financing if cash flows from operations are insufficient to support ongoing expansions[142]. Cash Position - Cash and cash equivalents as of October 31, 2021 totaled $163.7 million, sufficient to fund operations for at least the next 12 months[141].