Kamada .(US:KMDA)2023-03-15 11:10Kamada 2022 Financial Results and 2023 Outlook Executive Summary & Key Highlights The company reported strong 2022 results with 25% revenue growth and a threefold EBITDA increase driven by its acquired IgG portfolio Fiscal Year 2022 Key Financial Metrics | Metric | FY 2022 | FY 2021 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $129.3 M | $103.6 M | +25% | | EBITDA | $17.8 M | $5.4 M | +229% (3x) | | Operating Cash Flow | $28.6 M | ($8.8 M) | N/A | | Year-End Cash Position | $34.3 M | $18.6 M | +84% | Fiscal Year 2023 Guidance | Metric | 2023 Guidance Range | Mid-point YoY Growth | | :--- | :--- | :--- | | Total Revenues | $138 M - $146 M | +9.8% | | EBITDA | $22 M - $26 M | +35% | - Key growth drivers included the acquired portfolio of four FDA-approved IgG products, sales of KEDRAB in the U.S, royalties from GLASSIA, and a thriving Israeli distribution business35 - The company is advancing its pivotal Phase 3 clinical trial (InnovAATe) for Inhaled AAT, with accelerated recruitment and plans to meet with regulatory agencies516 Detailed Financial Performance The company's financials show significant year-over-year improvement in revenue and gross margin for fiscal year 2022 Fiscal Year 2022 Financial Results Full-year 2022 revenue grew 25% with improved gross margins, though net results were impacted by acquisition-related expenses FY 2022 vs. FY 2021 Performance | Metric | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Total Revenues | $129.3 M | $103.6 M | | Gross Profit | $46.7 M | $30.3 M | | Gross Margin | 36% | 29% | | Operating Expenses | $42.2 M | $31.0 M | | Net Loss | ($2.3 M) | ($2.2 M) | | Adjusted EBITDA | $17.8 M | $5.4 M | - The increase in revenues was primarily attributable to sales of the four acquired IgG products8 - Operating expenses rose due to increased Sales & Marketing costs for the acquired portfolio and higher R&D costs for the pivotal Phase 3 InnovAATe trial8 - The reported net loss was significantly impacted by a $6.3 million finance expense associated with the revaluation of contingent consideration from the IgG products acquisition8 Fourth Quarter 2022 Financial Results Q4 2022 revenues increased 44% year-over-year, driving a significant gross margin improvement and a return to net income Q4 2022 vs. Q4 2021 Performance | Metric | Q4 2022 | Q4 2021 | | :--- | :--- | :--- | | Total Revenues | $45.4 M | $31.5 M | | Gross Profit | $15.3 M | $6.6 M | | Gross Margin | 34% | 21% | | Net Income (Loss) | $2.9 M | ($5.0 M) | | Adjusted EBITDA | $7.2 M | ($1.3 M) | - The increase in profitability was driven by a positive product sales mix, including sales of the four new IgG products, KEDRAB U.S sales and GLASSIA royalties11 Balance Sheet and Cash Flow The company nearly doubled its year-end cash position, driven by a record annual operating cash flow of $28.6 million Cash Position and Operating Cash Flow (Year-End) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Cash, Cash Equivalents, and Short-Term Investments | $34.3 M | $18.6 M | | Cash Provided by (Used in) Operating Activities | $28.6 M | ($8.8 M) | - The increase in the cash position was driven by continued positive operational cash flows, indicating significant momentum in commercial operations12 Business Outlook and Corporate Updates Kamada issued strong 2023 guidance and reported progress on key regulatory submissions and clinical trials Fiscal Year 2023 Guidance | Metric | 2023 Guidance Range | | :--- | :--- | | Total Revenues | $138 million to $146 million | | EBITDA | $22 million to $26 million | - The company has submitted applications to the U.S. FDA and Health Canada to manufacture CYTOGAM® at its facility in Beit Kama, Israel16 - Progress in the pivotal Phase 3 InnovAATe trial for inhaled AAT includes accelerated recruitment and plans to meet with regulatory agencies to discuss the program16 Consolidated Financial Statements This section provides the detailed audited financial statements for the year ended December 31, 2022 Consolidated Statements of Financial Position Total assets were $322.4 million as of year-end 2022, reflecting a significant increase in cash and stable equity Balance Sheet Summary (in thousands USD) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Current Assets | $139,005 | $130,044 | | Total Non-Current Assets | $183,374 | $188,623 | | Total Assets | $322,379 | $318,667 | | Total Current Liabilities | $75,705 | $54,057 | | Total Non-Current Liabilities | $70,654 | $87,786 | | Total Shareholder's Equity | $176,020 | $176,824 | | Total Liabilities and Equity | $322,379 | $318,667 | Consolidated Statements of Profit or Loss The company reported total revenues of $129.3 million and a net loss of $2.3 million for the full year 2022 Income Statement Summary - Full Year (in thousands USD) | Account | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Total Revenues | $129,339 | $103,642 | | Gross Profit | $46,703 | $30,328 | | Operating Income (Loss) | $4,532 | ($696) | | Net Income (Loss) | ($2,321) | ($2,230) | | Basic Net Earnings Per Share | ($0.05) | ($0.05) | Consolidated Statements of Cash Flows The company generated $28.6 million in cash from operating activities, a strong reversal from the prior year's cash use Cash Flow Summary - Full Year (in thousands USD) | Activity | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $28,586 | ($8,819) | | Net Cash from Investing Activities | ($3,784) | ($61,050) | | Net Cash from Financing Activities | ($9,343) | $18,593 | | Increase (Decrease) in Cash | $15,671 | ($51,610) | | Cash at End of Period | $34,258 | $18,587 | Non-IFRS Measures Reconciliation A reconciliation from IFRS net loss to non-IFRS Adjusted EBITDA resulted in $17.8 million for fiscal year 2022 Reconciliation to Adjusted EBITDA - Full Year (in thousands USD) | Line Item | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net Income (Loss) | ($2,321) | ($2,230) | | Taxes on income | $62 | $345 | | Financial expense (income), net | $6,791 | $1,189 | | Depreciation and amortization | $12,155 | $5,609 | | Non-cash share-based compensation | $1,153 | $529 | | Adjusted EBITDA | $17,840 | $5,442 |