Harvard Bioscience(US:HBIO)2021-08-06 20:20Revenue Performance - Revenues for the three months ended June 30, 2021 were $29.2 million, an increase of approximately $5.9 million, or 25.3%, compared to $23.3 million for the same period in 2020[73] - Revenues for the six months ended June 30, 2021 were $56.2 million, an increase of approximately $9.1 million, or 19.3%, compared to $47.1 million for the same period in 2020[82] Profitability - Gross profit increased by $2.5 million, or 18.0%, to $16.4 million for the three months ended June 30, 2021, with a gross margin of 56.0%[74] - Gross profit increased by $4.9 million, or 18.4%, to $31.8 million for the six months ended June 30, 2021, compared to $26.9 million for the same period in 2020[83] - Gross margin decreased to 56.6% for the six months ended June 30, 2021, down from 57.0% for the same period in 2020, primarily due to supply chain cost increases[83] Expenses - Sales and marketing expenses rose by $1.4 million, or 33.9%, to $5.7 million for the three months ended June 30, 2021, primarily due to investments in new personnel[75] - Sales and marketing expenses rose by $1.2 million, or 12.8%, to $11.1 million for the six months ended June 30, 2021, compared to $9.9 million in 2020[84] - Research and development expenses increased by $0.8 million, or 42.4%, to $2.7 million for the three months ended June 30, 2021, reflecting higher compensation and strategic costs[77] - Research and development expenses increased by $0.8 million, or 18.3%, to $5.2 million for the six months ended June 30, 2021, compared to $4.4 million in 2020[86] - General and administrative expenses were $6.4 million for the three months ended June 30, 2021, an increase of $0.7 million, or 12.9%, compared to the same period in 2020[76] Interest and Debt - Interest expense decreased by $0.8 million, or 69.4%, to $0.4 million for the three months ended June 30, 2021, due to lower interest rates under a new Credit Agreement[79] - Interest expense decreased by $1.7 million, or 68.9%, to $0.8 million for the six months ended June 30, 2021, compared to $2.5 million in 2020[88] - Total debt, net of cash and cash equivalents, was $38.2 million as of June 30, 2021, compared to $41.1 million at December 31, 2020[91] Cash Flow and Liquidity - Cash provided by operating activities was $1.8 million for the six months ended June 30, 2021, down from $5.2 million in 2020[95] - The company held cash and cash equivalents of $6.2 million as of June 30, 2021, down from $8.3 million at December 31, 2020[91] - The company expects available cash and cash generated from operations to be sufficient to finance current operations for at least the next 12 months[94] Restructuring and COVID-19 Impact - The 2019 Restructuring Plan is expected to deliver approximately $4.5 million of annualized run-rate savings[68] - Cash outlays incurred through June 30, 2021 as a result of the restructuring plan totaled $8.2 million[70] - The company continues to monitor the impact of COVID-19 on operations and sales, with many academic labs not yet returning to pre-COVID levels[67] Taxation - The effective tax rate for the six months ended June 30, 2021, was 18.0%, compared to (14.4)% for the same period in 2020[89]