BioLife Solutions(US:BLFS)2021-03-23 03:14Financial Data and Key Metrics Changes - BioLife Solutions reported total revenue of $48 million for 2020, representing a 76% increase over 2019 [9][27] - The adjusted gross margin for Q4 2020 was 54%, down from 65% in Q4 2019, while the full year adjusted gross margin was 58%, compared to 69% in 2019 [28][30] - Adjusted net loss for Q4 2020 was $256,000, or negative $0.01 per diluted share, compared to adjusted net income of $527,000, or $0.02 per diluted share in Q4 2019 [30] Business Line Data and Key Metrics Changes - Media revenue for Q4 2020 was $8.2 million, a 58% increase over Q4 2019, and full year media revenue increased 32% to $31 million [26][27] - CryoStor products gained 11 new customers in Q4 2020, with a 29% increase for the full year [11] - The evo Cold Chain management platform added 14 new customers in Q4 2020 [11] Market Data and Key Metrics Changes - In 2020, total funding for cell and gene therapy companies was nearly $20 billion, a 50% increase over 2019 [8] - BioLife's market share in new clinical trials is estimated to be nearly 50%, considering the addition of 75 new trials in 2020 [10] Company Strategy and Development Direction - The acquisition of Stirling Ultracold is part of BioLife's strategy to broaden its tools portfolio and enhance its offerings in the cell and gene therapy market [7][14] - The company aims to achieve total revenue of $250 million within the next 3 to 4 years, with 2021 revenue guidance set between $101 million and $110 million [13][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in organic growth potential and the strategic fit of the Stirling acquisition, which is expected to enhance operational and cost synergies [12][17] - The company anticipates that the gross margin for the combined entity can improve to the mid to high 40s over the next 12 to 36 months [32][60] Other Important Information - BioLife's cash balance at December 31, 2020, was $90 million [30] - The acquisition of Stirling Ultracold is valued at approximately $258 million, including the assumption of $8.7 million of debt [31] Q&A Session Summary Question: What does the rest of the market do regarding the 50% share estimate? - Management indicated that the competition primarily consists of homebrew solutions, with no significant entrance of preformulated preservation media products from other suppliers [38] Question: What is the distribution strategy post-Stirling acquisition? - The current organization has about 10 sales personnel, with plans to leverage existing distributors and expand the sales force [39] Question: What was Stirling Ultracold's revenue in 2019? - Stirling Ultracold's revenue in 2019 was $35 million, with preliminary revenue for 2020 estimated at $39 million [47][50] Question: How does the company expect to grow in the ultracold freezing and cold chain logistics area? - Growth is anticipated to be driven by the pace of approvals in cell and gene therapy and the adoption of the evo platform [65] Question: What are the expected gross margins for 2021? - Management expects gross margins to be in the low 50s for 2021, with a target of achieving 30% adjusted EBITDA margin in the mid-term [54][60]