REPLIGEN CORP (Form: 8-K, Received: 02/24/2021 07:55:28)
REPLIGEN CORP false 0000730272 0000730272 2021-02-24 2021-02-24

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 24, 2021

 

 

REPLIGEN CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-14656   04-2729386

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

41 Seyon Street, Bldg. 1, Suite 100, Waltham, MA 02453

(Address of principal executive offices, including zip code)

(781) 250-0111

(Registrant’s telephone number, including area code)

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value $0.01 per share   RGEN   The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

On February 24, 2021, Repligen Corporation announced its financial results for the fourth quarter and year ended December 31, 2020. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

 

99.1    Press Release by Repligen Corporation, dated February 24, 2021
104    Cover page from this Current Report on Form 8-K, formatted in Inline XBRL


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    REPLIGEN CORPORATION
Date: February 24, 2021     By:  

/s/ Tony J. Hunt

      Tony J. Hunt
      President and Chief Executive Officer

Exhibit 99.1

 

LOGO      

Repligen Corporation

41 Seyon Street

Building #1, Suite 100

Waltham, Massachusetts 02453

 

 

Repligen Reports Fourth Quarter and Full Year 2020 Financial Results

 

   

Reports quarterly revenue of $108.6 million, representing 56% year-over-year growth, and annual revenue of $366.3 million represents 36% year-over-year growth

 

   

Organic revenue growth was 47% for the fourth quarter and 29% for the year 2020

WALTHAM, Mass. – Feb. 24, 2021 — Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its fourth quarter and full year 2020. Provided in this press release are financial highlights for the three—and twelve-month periods ended December 31, 2020, followed by our current financial guidance for the year 2021, and access information for today’s webcast and conference call.

Tony J. Hunt, President and Chief Executive Officer said, “We are delighted with the way we finished off 2020 with 47% organic growth in the fourth quarter and 29% for the full year. Sales into COVID vaccine and therapeutic accounts were a major contributor to overall growth especially in the second half of 2020. Our non-COVID markets also performed well, up over 18% in 2020. All our franchises delivered robust growth during the year, and we continued to see traction at gene therapy accounts. Strategically, our three acquisitions position us well to accelerate growth in our systems and fluid management businesses in 2021. With a very strong order load and COVID tailwinds, we anticipate that 2021 will be another excellent year for the company as we build additional manufacturing capacity, support the manufacturing of COVID vaccines and therapeutics and launch exciting new products.”

Fourth Quarter 2020 Highlights

 

   

Revenue increased by 56% year-over-year as reported and 47% organically, to $108.6 million

 

   

GAAP operating margin was 16.0%, an increase of 750 bps

 

   

Adjusted (non-GAAP) operating margin was 25.1%, an increase of 680 bps

 

   

GAAP fully diluted EPS was $0.36 compared to $0.07 for the fourth quarter of 2019

 

   

Adjusted (non-GAAP) fully diluted EPS increased to $0.52 compared to $0.20 for the fourth quarter of 2019

 

1


Financial Details for the Fourth Quarter and Full Year 2020

REVENUE

 

   

Total revenue for the fourth quarter of 2020 increased to $108.6 million compared to $69.5 million for the fourth quarter of 2019, a year-over-year gain of 56% as reported and 53% at constant currency, with organic growth of 47%.

 

   

Total revenue for the full year 2020 increased to $366.3 million compared to $270.2 million for the full year 2019, a year-over-year gain of 36% as reported and 35% at constant currency, with organic growth of 29%.

GROSS PROFIT and GROSS MARGIN

 

   

Gross profit (GAAP) for the fourth quarter of 2020 was $60.5 million, a year-over-year increase of $21.1 million. Adjusted gross profit (non-GAAP) for the fourth quarter of 2020 was $61.1 million, a year-over-year increase of $21.4 million, or 53.7%.

 

   

Gross margin (GAAP) for the fourth quarter of 2020 was 55.7%, compared to 56.6% for the fourth quarter of 2019. Adjusted gross margin (non-GAAP) for the fourth quarter was 56.3%, compared to 57.2% to the 2019 period.

 

   

Gross profit (GAAP) for the full year 2020 was $209.6 million, a year-over-year increase of $58.5 million. Adjusted gross profit (non-GAAP) for the full year 2020 was $211.1 million, a year-over-year increase of $57.0 million, or 37%.

 

   

Gross margin (GAAP) was 57.2% for the full year 2020, a 130 bps improvement from the full year 2019. Adjusted gross margin (non-GAAP) for the full year 2020 was 57.6%, a 60 bps improvement from the full year 2019.

OPERATING INCOME

 

   

Operating income (GAAP) for the fourth quarter of 2020 was $17.4 million compared to $5.9 million for the fourth quarter of 2019. Adjusted operating income (non-GAAP) for the fourth quarter of 2020 was $27.3 million, an increase of 115% compared to $12.7 million for the fourth quarter of 2019.

 

   

Operating income (GAAP) for the full year 2020 was $69.8 million, an increase of 94% compared to $36.1 million for the full year 2019. Adjusted operating income (non-GAAP) for the full year 2020 was $98.1 million, an increase of 54% compared to $63.5 million for the full year 2019.

 

   

Operating margin (GAAP) was 16% for the fourth quarter of 2020, an increase of 750 bps year-over year. Adjusted operating margin (non-GAAP) was 25.1% for the fourth quarter of 2020, an increase of 680 bps year-over year.

 

   

Operating margin (GAAP) was 19.1% for the full year 2020, an increase of 570 bps year-over-year. Adjusted operating margin (non-GAAP) was 26.8% for the full year 2020, an increase of 330 bps year-over-year.

 

2


NET INCOME

 

   

Net income (GAAP) for the fourth quarter of 2020 was $19.7 million compared to $3.6 million for the fourth quarter of 2019. Adjusted net income (non-GAAP) for the fourth quarter of 2020 was to $28.7 million, an increase of 165% compared to $10.8 million for the fourth quarter of 2019.

 

   

Net income (GAAP) for the full year 2020 was $59.9 million, an increase of 180% compared to $21.4 million for the full year 2019. Adjusted net income (non-GAAP) for the full year 2020 was $89.1 million, an increase of 70% compared to $52.5 million for the full year 2019.

EARNINGS PER SHARE

 

   

Earnings per share (GAAP) for the fourth quarter of 2020 were $0.36 on a fully diluted basis, compared to $0.07 for the fourth quarter of 2019. Adjusted EPS (non-GAAP) for the fourth quarter of 2020 increased to $0.52 on a fully diluted basis, compared to $0.20 for the 2019 period.

 

   

Earnings per share (GAAP) for the full year 2020 increased to $1.11 on a fully diluted basis, compared to $0.44 for the full year 2019. Adjusted EPS (non-GAAP) for the full year 2020 increased to $1.65 on a fully diluted basis, compared to $1.07 for the full year 2019.

EBITDA

 

   

EBITDA, a non-GAAP financial measure, for the fourth quarter of 2020 was $25.3 million compared to $11.7 million for the fourth quarter of 2019. Adjusted EBITDA for the fourth quarter of 2020 was $29.8 million, an increase of 104% compared to $14.6 million for the fourth quarter of 2019.

 

   

EBITDA for the full year 2020 was $96.6 million, an increase of 90% compared to $51.0 million for the full year 2019. Adjusted EBITDA for the full year 2020 was $107.9 million, an increase of 52% compared to $71.1 million for the full year 2019.

CASH

 

   

Our cash and cash equivalents at December 31, 2020 were $717.3 million, an increase of $188.9 million from $528.4 million at December 31, 2019.

All reconciliations of GAAP to adjusted (non-GAAP) figures above, as well as EBITDA to adjusted EBITDA, are detailed in the reconciliation tables included later in this press release.

Financial Guidance for 2021

Our financial guidance for the fiscal year 2021 is based on expectations for our existing business and includes the financial impact of our 2020 acquisitions of ARTeSYN Biosolutions (which closed on December 3, 2020), Non-Metallic Solutions (which closed on October 20, 2020 ) and Engineered Molding Technologies (which closed on July 13, 2020). The guidance below excludes the impact of potential additional acquisitions and future fluctuations in foreign currency exchange rates.

 

3


FISCAL YEAR 2021 GUIDANCE:

 

   

Total revenue is expected to be in the range of $500-$525 million, reflecting overall revenue growth of 37%-43% as reported and at constant currency and organic growth of 26%-33%.

 

   

Revenue contribution from COVID-related programs are expected to be in the range of $90-$100 million, representing incremental COVID related revenue of $44-$54 million and 12%-15% points of overall revenue growth. Incremental acquisition-related revenue is expected to be in the range of $37-$40 million, representing 10%-11% points of overall revenue growth.

 

   

Gross margin is expected to be 57%-58% on both a GAAP and non-GAAP basis.

 

   

Income from operations is expected to be in the range of $103-$109 million on a GAAP basis. Adjusted (non-GAAP) income from operations is expected to be in the range of $134-$140 million.

 

   

Net income is expected to be in the range of $74-$79 million on a GAAP basis. Adjusted (non-GAAP) net income is expected to be in the range of $106-$111 million. Our current guidance reflects a tax rate of 20% on adjusted pre-tax income.

 

   

Fully diluted GAAP EPS is expected to be in the range of $1.30-$1.38. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $1.86-$1.94.

Our non-GAAP guidance for the fiscal year 2021 excludes the following items:

 

   

$5.8 million estimated acquisition and integration expenses; $0.1 million in cost of product revenue, $1.0 million in R&D and $4.7 million in SG&A.

 

   

$23.9 million estimated intangible amortization expense in SG&A.

 

   

Expected inventory step-up charges of $1.4 million related to 2020 acquisitions.

 

   

$11.0 million of non-cash interest expense (Other income (expense)) related to our convertible debt notes.

Our non-GAAP guidance for the fiscal year 2021 includes:

 

   

An income tax increase of $9.8 million, representing the tax impact of acquisition and integration costs, inventory step-up changes, intangible amortization and non-cash interest.

All reconciliations of GAAP to adjusted (non-GAAP) guidance are detailed in the tables included later in this press release.

 

4


Conference Call

Repligen will host a conference call and webcast today, February 24, 2021, at 8:30 a.m. EST, to discuss fourth quarter and full year 2020 financial results and corporate developments. The conference call will be accessible by dialing toll-free (844) 274-3999 for domestic callers or (412) 317-5607 for international callers. No passcode is required for the live call. In addition, a webcast will be accessible via the Investor Relations section of the Company’s website. Both the conference call and webcast will be archived for a period of time following the live event. The replay dial-in numbers are (877) 344-7529 from the U.S., (855) 669-9658 from Canada and (412) 317-0088 for international callers. Replay listeners must provide the passcode 10151931.

Non-GAAP Measures of Financial Performance

To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: revenue growth rate at constant currency, adjusted gross profit and adjusted gross margin, adjusted income from operations and adjusted operating margin, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, adjusted net income, adjusted net income per share, adjusted earnings per diluted share (EPS), adjusted cost of sales, adjusted research & development expense, adjusted SG&A, adjusted income tax expense and adjusted income tax rate. The Company provides organic revenue growth rates in constant currency to exclude the impact of both foreign currency translation, and the impact of acquisition revenue for current year periods that have no prior year comparable, in order to facilitate a comparison of its current revenue performance to its past revenue performance. The Company provides revenue growth rates in constant currency in order to facilitate a comparison of its current revenue performance to its past revenue performance. To calculate revenue growth rates in constant currency, the Company converts actual net sales from local currency to U.S. dollars using constant foreign currency exchange rates in the current and prior period.

The Company’s non-GAAP financial results and/or non-GAAP guidance exclude the impact of: acquisition and integration costs, inventory step-up charges and intangible amortization costs related to the Company’s acquisitions, as well as non-cash interest expenses related to the Company’s convertible debt, and the related impact on tax of non-GAAP charges. These costs are excluded because management believes that such expenses do not have a direct correlation to future business operations, nor do the resulting charges recorded accurately reflect the performance of our ongoing operations for the period in which such charges are recorded.

A reconciliation of GAAP to adjusted non-GAAP financial measures is included as an attachment to this press release. When analyzing the Company’s operating performance and guidance investors should not consider non-GAAP measures as substitutable for the comparable financial measures prepared in accordance with GAAP.

 

5


About Repligen Corporation

Repligen Corporation is a global life sciences company that develops and commercializes highly innovative bioprocessing technologies and systems that increase efficiencies in the process of manufacturing biological drugs. Our primary customers are biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide. Our corporate headquarters are located in Waltham, Massachusetts, with additional administrative and manufacturing operations worldwide. The majority of our manufacturing sites are located within the U.S. (California, Massachusetts, New Jersey and New York), and outside of the U.S. we have sites in Estonia, Germany, Ireland, the Netherlands and Sweden.

The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, express or implied statements or guidance regarding current or future financial performance and position, including cash and investment position, demand in the markets in which we operate, the expected performance of our business, the expected performance of the Engineered Molding Technology, Non-Metallic Solutions and ARTeSYN Biosolutions businesses, the expected performance and success of our strategic partnerships, management’s strategy, plans and objectives for future operations or acquisitions, product development and sales, selling, general and administrative expenditures, intellectual property, development and manufacturing plans, availability of materials and product and adequacy of capital resources, our financing plans, and the projected impact of, and response to, the COVID-19 coronavirus pandemic on our business and on the U.S. and global economies constitute forward-looking statements identified by words like “believe,” “expect,” “may,” “will,” “should,” “seek,” “anticipate,” “projected,” “estimated” or “could” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with the following: the effect of the COVID-19 coronavirus pandemic, including mitigation efforts and economic effects, on our business operations and the operations of our customers and suppliers; the ultimate impact of the COVID-19 coronavirus pandemic on our business or financial results; our ability to successfully grow our bioprocessing business, including as a result of acquisition, commercialization or partnership opportunities; our ability to successfully integrate any acquisitions, our ability to develop and commercialize products and the market acceptance of our products; our ability to integrate the Engineered Molding Technology, Non-Metallic Solutions and ARTeSYN Biosolutions businesses successfully into our business and achieve the expected benefits of the acquisitions; reduced demand for our products that adversely impacts our future revenues, cash flows, results of operations and financial condition; our ability to compete with larger, better financed bioprocessing, pharmaceutical and biotechnology companies; our compliance with all U.S. Food and Drug Administration and EMEA regulations; our volatile stock price; and other risks detailed in Repligen’s Annual Report on Form 10-K for the year ended December 31, 2020 on file with the Securities and Exchange Commission and the other reports that Repligen periodically files with the Securities and Exchange Commission. Actual results may differ materially from those Repligen contemplated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. These forward-looking statements reflect management’s current views, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions, and is based on only on information currently available to us. Repligen does not undertake to update, whether written or oral, any of these forward-looking statements to reflect a change in its views or events or circumstances, whether as a result of new information, future development or otherwise, that occur after the date hereof except as required by law.

Repligen Contact:

Sondra S. Newman

Global Head of Investor Relations

(781) 419-1881

investors@repligen.com

 

6


REPLIGEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, amounts in thousands, except share and per share data)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2020     2019     2020     2019  

Revenue:

        

Product revenue

   $ 108,615     $ 69,396     $ 366,136     $ 270,097  

Royalty and other revenue

     33       78       124       148  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     108,648       69,474       366,260       270,245  

Costs and expenses:

        

Cost of product revenue

     48,163       30,121       156,634       119,099  

Research and development

     6,722       5,172       20,182       19,450  

Selling, general and administrative

     36,344       28,287       119,621       95,613  
  

 

 

   

 

 

   

 

 

   

 

 

 
     91,229       63,580       296,437       234,162  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     17,419       5,894       69,823       36,083  

Investment income

     42       1,708       1,741       5,324  

Loss on extinguishment of debt

     —         —         —         (5,650

Interest expense

     (3,101     (2,966     (12,133     (9,292

Other income (expense), net

     418       (291     (214     (314
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     14,778       4,345       59,217       26,151  

Income tax (benefit) provision

     (4,920     741       (709     4,740  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 19,698     $ 3,604     $ 59,926     $ 21,411  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 0.37     $ 0.07     $ 1.14     $ 0.44  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.36     $ 0.07     $ 1.11     $ 0.44  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     53,143,302       52,063,528       52,553,799       48,342,584  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     55,022,355       52,976,271       53,892,261       49,206,242  
  

 

 

   

 

 

   

 

 

   

 

 

 
Balance Sheet Data:    December 31,
2020
    December 31,
2019
             

Cash, cash equivalents and marketable securities

   $ 717,292     $ 528,392      

Working capital

     583,426       593,515      

Total assets

     1,902,887       1,400,113      

Long-term obligations

     54,781       292,032      

Accumulated earnings

     65,769       5,843      

Stockholders’ equity

     1,529,150       1,059,768      

 

7


REPLIGEN CORPORATION

RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO

NON-GAAP (ADJUSTED) INCOME FROM OPERATIONS

(Unaudited, amounts in thousands)

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2020      2019      2020      2019  

GAAP INCOME FROM OPERATIONS

   $ 17,419      $ 5,894      $ 69,823      $ 36,083  

ADJUSTMENTS TO INCOME (LOSS) FROM OPERATIONS:

           

Acquisition and integration costs

     4,929        2,934        11,465        12,508  

Intangible amortization

     4,355        3,879        16,032        13,441  

Inventory step-up charges

     590        —          734        1,483  
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED INCOME FROM OPERATIONS

   $ 27,293      $ 12,707      $ 98,054      $ 63,515  
  

 

 

    

 

 

    

 

 

    

 

 

 

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP (ADJUSTED) NET INCOME

(Unaudited, amounts in thousands)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2020     2019     2020     2019  

GAAP NET INCOME

   $ 19,698     $ 3,604     $ 59,926     $ 21,411  

ADJUSTMENTS TO NET INCOME:

        

Acquisition and integration costs

     3,943       2,934       10,479       13,008  

Inventory step-up charges

     590       —         734       1,483  

Intangible amortization

     4,355       3,879       16,032       13,441  

Loss on extinguishment of debt

     —         —         —         5,650  

Non-cash interest expense

     2,796       2,674       10,970       7,536  

Tax effect of non-GAAP charges

     (2,716     (2,261     (9,050     (10,003
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME

   $ 28,666     $ 10,830     $ 89,091     $ 52,526  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

8


REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME PER SHARE TO

NON-GAAP (ADJUSTED) NET INCOME PER SHARE

(Unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2020     2019     2020     2019  

GAAP NET INCOME PER SHARE—DILUTED

   $ 0.36     $ 0.07     $ 1.11     $ 0.44  

ADJUSTMENTS TO NET INCOME PER SHARE—DILUTED:

        

Acquisition and integration costs

     0.07       0.06       0.19       0.26  

Inventory step-up charges

     0.01             0.01       0.03  

Intangible amortization

     0.08       0.07       0.30       0.27  

Loss on extinguishment of debt

     —         —         —         0.11  

Non-cash interest expense

     0.05       0.05       0.20       0.15  

Tax effect of non-GAAP charges

     (0.05     (0.04     (0.17     (0.20
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME PER SHARE—DILUTED

     0.52     $ 0.20     $ 1.65     $ 1.07  
  

 

 

   

 

 

   

 

 

   

 

 

 

Totals may not add due to rounding.

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

(Unaudited, amounts in thousands)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2020     2019     2020     2019  

GAAP NET INCOME

   $ 19,698     $ 3,604     $ 59,926     $ 21,411  

ADJUSTMENTS:

        

Investment Income

     (42     (1,708     (1,741     (5,324

Interest Expense

     3,101       2,966       12,133       9,292  

Tax Provision

     (4,920     741       (709     4,740  

Depreciation

     3,068       2,170       10,888       7,317  

Amortization(1)

     4,383       3,907       16,143       13,551  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     25,287       11,680       96,640       50,987  

OTHER ADJUSTMENTS:

        

Acquisition and integration costs

     3,943       2,934       10,479       13,008  

Loss on extinguishment of debt

     —         —         —         5,650  

Inventory step-up charges

     590       —         734       1,483  
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED EBITDA

   $ 29,821     $ 14,614     $ 107,853     $ 71,128  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Includes amortization of milestone payments in accordance with GAAP of $28 and $111 for the three- and twelve-month periods,. respectively.

 

9


REPLIGEN CORPORATION

RECONCILIATION OF GAAP COST OF SALES TO NON-GAAP (ADJUSTED) COST OF SALES

(Unaudited, amounts in thousands)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2020     2019     2020     2019  

GAAP COST OF SALES

   $ 48,163     $ 30,121     $ 156,634     $ 119,099  

ADJUSTMENT TO COST OF SALES:

        

Acquisition and integration costs

     (40     (281     (508     (951

Inventory step-up charges

     (590     —         (734     (1,483

Intangible amortization

     —         (128     (254     (520
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED COST OF SALES

   $ 47,533     $ 29,712     $ 155,138     $ 116,145  
  

 

 

   

 

 

   

 

 

   

 

 

 

REPLIGEN CORPORATION

RECONCILIATION OF GAAP R&D EXPENSE TO NON-GAAP (ADJUSTED) R&D EXPENSE

(Unaudited, amounts in thousands)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2020     2019     2020     2019  

GAAP R&D

   $ 6,722     $ 5,172     $ 20,182     $ 19,450  

ADJUSTMENT TO R&D:

        

Acquisition and integration costs

     (53     (282     (525     (687
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED R&D

   $ 6,669     $ 4,890     $ 19,657     $ 18,763  
  

 

 

   

 

 

   

 

 

   

 

 

 

REPLIGEN CORPORATION

RECONCILIATION OF GAAP SG&A EXPENSE TO NON-GAAP (ADJUSTED) SG&A EXPENSE

(Unaudited, amounts in thousands)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2020     2019     2020     2019  

GAAP SG&A EXPENSE

   $ 36,344     $ 28,287     $ 119,621     $ 95,613  

ADJUSTMENTS TO SG&A EXPENSE:

        

Acquisition and integration costs

     (4,836     (2,371     (10,432     (10,870

Intangible amortization

     (4,354     (3,751     (15,779     (12,921
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED SG&A EXPENSE

   $ 27,154     $ 22,165     $ 93,411     $ 71,822  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME GUIDANCE TO ADJUSTED (NON-GAAP NET INCOME GUIDANCE)

 

(in thousands)    Twelve months ending December 31, 2021  
     Low End     High End  

GUIDANCE ON NET INCOME

   $ 74,000     $ 79,000  

ADJUSTMENTS TO GUIDANCE ON NET INCOME:

    

Acquisition and integration costs

     5,754       5,754  

Anticipated pre-tax amortization of acquisition-related intangible assets

     23,896       23,896  

Inventory step-up costs

     1,430       1,430  

Non-cash interest expense

     10,957       10,957  

Tax effect of non-GAAP charges

     (9,774     (9,774

Guidance rounding adjustment

     (263     (263
  

 

 

   

 

 

 

GUIDANCE ON ADJUSTED NET INCOME

   $ 106,000     $ 111,000  
  

 

 

   

 

 

 

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME PER SHARE GUIDANCE TO

ADJUSTED (NON-GAAP) NET INCOME PER SHARE GUIDANCE

 

     Twelve months ending December 31, 2021  
     Low End     High End  

GUIDANCE ON NET INCOME PER SHARE—DILUTED

   $ 1.30     $ 1.38  

ADJUSTMENTS TO GUIDANCE ON NET INCOME PER SHARE—DILUTED:

 

 

Acquisition and integration costs

   $ 0.10     $ 0.10  

Anticipated pre-tax amortization of acquisition-related intangible assets

   $ 0.42     $ 0.42  

Inventory step-up costs

   $ 0.03     $ 0.03  

Non-cash interest expense

   $ 0.19     $ 0.19  

Tax effect of non-GAAP charges

   ($ 0.17   ($ 0.17

Guidance rounding adjustment

   ($ 0.00   ($ 0.00
  

 

 

   

 

 

 

GUIDANCE ON ADJUSTED NET INCOME PER SHARE—DILUTED

   $ 1.86     $ 1.94  
  

 

 

   

 

 

 

Totals may not add due to rounding.

    

# # #

 

11


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