BLFS - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Q1 2018 BioLife Solutions Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Roderick de Greef, CFO.

begin. may You

Roderick de Greef

release issued This of results XXXX. for summarizes Good us we GG. our available is review and you first thank operating Thank the on afternoon, BioLife months afternoon, Relations which joining March quarter website the for for financial to page biolifesolutions.com. Earlier three of ended Solutions our press for a this XXst, release the and the you, Investor results everyone, XXXX. conference the call at

As is live a webcast recorded on the days. being our available the XX same be this of reminder, call and link for website. broadcast A will through replay

Before performance to many this actual materially future These statements get everyone regarding results subject I will of remind statements or differ are other to that call, future the could the forward-looking we events during that cause to company. expectations. financial would make started, risks like we projections uncertainties and from and

the that discussion and that this a and qualify The you date projections I based as forward-looking by therefore, are to or statements obligation with and projections of forward-looking assumes statements forward-looking statements law. these SEC. other filings the except affect to and business filed to required only risks that refer public are For no the call, periodic on company's they subject speak on Company company and factors statements given. as change detailed of as our are update any uncertainties

CEO call Now, I'd BioLife. Mike of to over Rice, to and the turn like President

Mike Rice

critical quarter In first business we operating and increased to very and In your with appreciate balance and products medicine quarter of a adoption, interest of GAAP our financial pleased our sheet. our results. everyone. media as BioLife the Rod Thanks afternoon, operating and the grow we discovery secure drug regenerative to profit QX, product supplier trends record biopreservation another report strong to good revenue, markets. and place biobanking, are XXXX, sole continued source and continue of a trusted We positive in stronger

XX continued acceleration a midpoint We for supporting XX% to growth we revenue of QX, and growth the revenue XX positioned and XXXX. quarter the of indirectly first in with strong Today, we in customers we medicine reported growth, quarter, with sequential In record million first international quarter supplying segment. growth XXXX customers the of high are of XX% see thousands during gained are quarter very of our directly of Also market first new in before over well we week of are continuing XXXX. the the XXXX, distributors. the and in growth second direct we $X.X regenerative XXXX. network booked Today, through

and strategic review Now markets channels. revisit our I'd to and like

As customers medicine you and in regenerative important last revenue manufacturing centers to of We therapy comprised transplant segment with of cell hospital to new cell organizations. market with million, QX know, XXX% XX% commercialize contract total new over is QX, segment revenue this and year. direct of working regenerative ship T-cell growth several most these products companies, In XX medicine therapies. QX $X.X was stem therapy cell was the based development

and most getting forward Cytotherapeutics, direct distribution approved development our cell these trials. products with limited users, therapy imbedded we TCRX We're approvals estimate commercial XX visibility a and reach. likely with end indication Today, X to our due sole and complete reagents at With this at their to that have end customers proprietary in as base, as customer therapy success manufacturing, listeners sticky engagements updating demonstrated number the in storage Phase distributors, for our media customers including each products year. [indiscernible] our XXX,XXX we our possibility have customer so XXX believe clinical used remind to is Maverick new and used in in X proprietary of been customers expect and clinical adoption customer confirm the a with our year, filings on can critical additional a products clinical established a growth applications, [X:XX:XX] full to scale, their in bulk that up represents the marquee don't opportunity. approved biopreservation include, we Therapeutics, higher the they to in early Therapeutics. phenomenal more products our We've processes. we progresses New additional two by look we position range manufacturing in Therapeutics, by distribute This strong Windmill their I'll clinical the competition than a manufacturing you cell million. annual if revenue of XX source and P-Cure apply, We trials. distributors two and three ship regulatory and have to a relationships, very of

pluripotent includes used This adoption fresh throughput the I'll of frozen market new drug of types screening pharma in drug in Common our high review Next, and leading of cell our suppliers compounds. and segment companies and discovery cardiomyocytes. include products hepatocytes segment. live induced cells

Thermo biorepositories, first throughput this cell be growth this Ticeba customers of first revenue StemCyte, transplant In customers drug banks, year. was XX% to various of X% our biobanking include viable private XX% include with banks, high so CBR, revenue Our segment QX, of the ViaCord. In Lonza, growth and customers X% Key and for preserve adult total, in last and will segment, use XXXX. in cord cell the types, segment these products in over include, market Cell customers the HemaCare. Fisher, hair public was Key surgeons. screening. total Care, revenue quarter blood Fujifilm with our they segment banks, QX use segment over and stem tissue quarter

distributor and significant and and contributed in Fisher international VWR. In distributors. from XXXX. revenue throughout It's worldwide clear XX% our sales year. Technologies, of our distribution we Key that grew Based MilliporeSigma, last expect partners channel marketing direct our over QX channel revenue our leverage Thermo domestic strong lastly sales channel forecast, of from to very sales on distributors continued and have we Turning total strong growth QX, STEMCELL indirect partners. include XX%

I'll we'll the questions. call Rod Now take our quarter financial your highlights turn back glad over XXXX. first to that the to Rob? to for After present of be

Roderick de Greef

Mike. Thanks

reached biopreservation media revenue first a quarter the you quarter was of a $X.X of increase As mentioned, to leaders increase record over both biopreservation in XXXX well XX% our our combination for representing million, XXXX. The ASPs revenue first higher customers from a of our more med of and realized indirect result as channels. a of direct as regen sold, media the primarily

related March was last approximately of demand placed disclosed, expenses XX.X% we first of quarter orders regen of when As was The of safety stock compared the first gross of XXXX. due ended XXX,XXX quarter's with in this XXX,XXX quarter XXXX included of in We of previously per period our to of by higher compared operations the EBITDA for of with or to first outstanding XXX,XXX flow for revenue production quarter operating customers. company's med operating quarter, important realizing last quarter the first quarter $X.XX XXXX year. one compared in used same XXXX. our first margin cash loss margin a XXXX first XXXX. which in XX,XXX per same XXXX XX.X% for of XXXX. the in the loss based the we for million share quarter higher attributable the negative of warrants. compared Operating in the generated expense compared was increased XXX,XXX in proceeds performance this year. cash of XXXX. to positive quality the cash net the million received same $X.XX loss We for for of support share for gross in The product the XXXX totaled first the quarter The compared totaled the to of XXXX. was million management from profit the of X.X We with the period system. with milestone of first achieved XXXX quarter first compared to XXX,XXX for net quarter XX, XXX,XXX additional period was with X to XXX,XXX reflect a exercise compensation the operations at million Since shareholders first positive the an quarter of of end to to in an common quarter for higher cash compared cost XXX,XXX X for and $X.X Expenses quarter $X.X total expanding of or the by

XX% to April XXXX. XX.X results, margin year XX.X XXXX based for pre-announced to our the of previous Turning XXXX, from XX% revenue based quarter's are to the to we we we revenue, on XX%, now to quarter represents over X, range XX% our which million, and which a first the throughout on to million on to continued our anticipate increase full gross increased of strength gross expected We increasing guidance up first XX%. margin XX% range expansion guidance

unchanged operating X expenses million. range on to year view of remains in operating expenses full Our continue we and the million expect X.X to

expect full now continue profitability for year been GAAP achieved, we Finally, will XXXX. it the has that of operating

Now Mike. to I'd like over back call to turn the

Mike Rice

growth. that another potential performance In was proposition again for unique execution our Rod. of Thanks closing, value illustrate period and XXXX QX confirming and

And we used proprietary as sharing look position our therapy continue term to QX also additional of forward opportunities. look to critical Our our reagents in the long growth results. like shareholders leading I cell secure. biopreservation new for and and to thank manufacturing would and supplier

questions. back call your the turn to to will I the GG? take operator Now over

Operator

question from our McCarthy first from [Operator Group. And Instructions] is Jason Maxim

Your line open. now is

Jason McCarthy

be more was that there regulatory Thanks. on? a specifically lacking back space interesting the paper to of is, came me. it published compared media areas that in you the your expect XXXX? on more but media, the maybe us question kind filings studies was that you bit other your categories, therapeutic we the these give BioLife's customers that focused what drugs Nature. I Mike, And are drug, homebrew can Two in head-to-head color thought for out the questions was Can March, not over what scenario will in upcoming know an little maybe for

Mike Rice

Jason. Great Hi questions.

additional illustrate you the and a types I one, provide. the sources So that studies and for cancers And proof that expect could potential a so mentioned tumors. evidence to proof can being can we're that do preservation sure, and more some are solid point, basis, year. always second see answer And you for superior throughout in blood to the clinical your weekly products we you to those efficacy know of first published looking on indications the daily that know our the of

Jason McCarthy

Great, thank you.

Mike Rice

welcome. You're

Operator

Thank you.

Northland is from Our Kalia Securities. Suraj from next question

is now line open. Your

Suraj Kalia

you great Good quarter. a Congrats for gentlemen. on questions. afternoon, Thank taking my

Mike Rice

Thanks Suraj.

Suraj Kalia

and think curious gross think about about questions customers you, new are you down So Rod, Mike for of guidance, through forgive as the out. us these upon, cadence Rod the help should some how year guidance my And some year? raised try progresses? for all buckets, The and will should the of hopefully of customer between XX of give and you Thank additional we have you full questions. through color obviously quarter, maintaining if I flow find you these am us can through I'll you the we to the on you sort taking the you margins call, know this how are can this up obviously look how

Mike Rice

again Thanks Suraj.

the on those evidence customers to our customers, region the with interesting reference so new posed med tell you most I'm therapy forth. they've me, that it's on with cell know through our about so So you a in broader space, were listeners in to XX so happy that own of Suraj, and our know web XX you being question inbound us inquiries page marketing, of heard these

profile they first time will it complete an a that know These be and With product, it the established. to That So news to I some first. slower think validation. cadence, evaluation regard them that's about high and and BioLife's the cautious the watchword to great. are speaks us, we the customers hear you us then be actually out takes they would well getting try

tend and know guild I we and will So is close support customer. folks very a their handle their expect But some to have think not are a development and little them closer how significant obviously on you've them, they say passed. is mean we and first I cautious take and But one be clinical going validation as to to a call those time. to goes. it is it buy so heard early to us you you at to does we're each of a It turn would know that into

know dollars Phase Phase very few and million the somewhere approved, typically end you revenue, know a outliers XX,XXX on once or hundred thousand million a $X with in X range year You the Phase customer X a might Rod? that, perhaps and a high XX,XXX generate $X.X on in clinical double to nice about depending some indication. X

Roderick de Greef

gross respect the But it would to most in any given fact may match impact Suraj, cost of make. given with demand, the comment very with production. margin, not or levels qualifier So, to fundamentally at about these that the the substantial quarter, completely or then part change of goods I'm which fixed of our production fixed of is that

We're trend conservative bumped fulfill year. you margin extent demand able of so for fruition then to So the we still opportunity just the to need produce an percentage of that expect for increasing year, and amount year. have the we throughout up a bit but throughout do the leverage, on expansion We to more see great it we the we're it point to to but to see guidance. sure there's a a being come this there see know

Suraj Kalia

you. Thank

Operator

Thank you.

from Montgomery. Our Janney is Paul from next question Knight

now is open. line Your

Paul Knight

you? are Congratulations. How Mike. Hi

Mike Rice

Thank you.

Paul Knight

that On net losing you was number these were add, mean you're what customers, was net a no? new I customers, or there aware the of XX add

Mike Rice

any the tricky tally question. with regular great how of frequency have we don't finding definitive they twice and maybe this new by the to so the are ship tend Paul, because addition they a and that's support us But I new customers customers nature directly where or to we to several running Yeah, do to. play. hundred many little product unique ask sort distributors It's year customers them report many many, would of way a so. sell a

just losing probably the the of distributors we're the lot My our So are but net is to certainly how a is in fact have my understated, add due doing. and this the lot we losing good a we're and sure, add initial not sense sense don't not model visibility with for net a is customers grossly relationship. customers is of indirect direct that

to we much of quarter most can number new is the the in customers visibility. speak just but than we where direct the that higher So have the certainly side

Paul Knight

What's kind through Yeah. know sequentially then implying in QX this QX And are last head were I your of of you year, flattish that? you year. up kind going on

Mike Rice

of revenue, speaking you Are quarter? Paul for the

Paul Knight

Yeah.

yeah. sorry, sorry, Sorry,

Mike Rice

Well I here just so Yeah. quarter strong, forward quarter. to look we that very would my would magnitude that limit is are and we frequency I I remarks size around midpoint before our to the results. the The reporting week think that the in order second common flow bow is make and

Paul Knight

Sure.

look what's the you on then pipeline lastly, And CAR at academic are the pre-clinical region about what the or level hearing Okay. T therapies, the like? specifically

Mike Rice

segment. it Paul, today point for XXXX through was you Medicine it also fact published particular total and a the and sub listeners out space our good great and with think for day unique so. that Regenerative for is with supplier, just space that tend dollars is I secure, But level in several sole robust to question. sticky And - is funding focus our a of the I in good glimpse right we're very billion their as very I'd get and some QX, that the activity our Alliance distributors source place spot this that very some now of report relationship. and in time a we think We're again

will now. the the years. is these to see in interest really we that flow phenomenal for I And some So do think of academic projects would assuming right work through several space continue to expect

Paul Knight

Thanks. Okay.

Mike Rice

welcome. You're

Operator

Thanks you.

Jason from is Wainwright. question from next Kolbert H.C. Our

now Your line open. is

Jason Kolbert

Hi, guys.

can has something a understand ongoing about which an little And where people also on the and idea is those spilled? to the what's part second much so purchases, make for used which purchased they double quarter. of stocks the then that the of related if I that question and big double margins How as me effect that, represent is, talked years we now, they were those in can - a revenues get bit revenues that's sort from You will we guess? how how stock it, even replenish this my help multiplier what's do at is haven't that tend cycle

Mike Rice

little Hi, but gist bit hearing A difficulty Jason. Thanks. have think I the your questions. we of

safety a trend take a listeners bit with in stock, magnitude your that is in of to as off. We disclosed color one as don't So really that's in previously Rod are we see QX, that on going that the just little minute and we a mind think customer. of

to So safety of it's any revenue try stock. how early a quarter's much would bit from come to predict little

chain think they're get I the QX looking how see it supply to they these make get a remind disruption next line some particularly goes able we'll really at of customers just want And Rod, least? of being entire the few to goal over as have throughout shore kind sure you to make up quarters. to their and that cells. about to listeners and never approval

Rod de Greef

specifically had revenue. approximately XX% So, the QX, of XXX,XXX represented about safety from customer of we stock in which orders one

sort in to I we when double another in it And was And So three that's mid-XX's. QX. of I years looking our look the as or at Jason, a we other XX's in would your assuming specific revenue. be at question margins out to double around revenue, two you'd say margins in what this look it low like look what understood double would is if and point time at

Mike Rice

Perfect. Thanks progress. congrats all very helpful. and the on Okay. That's

Operator

you. Thank

Our Fred Private a from next question Ore Investor. [ph],

now is line Your open.

Unidentified Analyst

a attribute the of to little stock year, the price last for do your a has little first. stock PR that timeframe. senior management fix doubled involved to company, sheet about with that you a in want balance the I you. year. Thank been over I I've

tremendous all got tremendous thankful this think done shall you've such we've expenses, done little And your You've a job be team promoting management managing I job at a we company. product. strong

Mike Rice

Thanks for I your much. very it comment, appreciate Fred.

Unidentified Analyst

got stock quarter XX% first can okay, pay be really go quarter through one don't ones. first second match the growth we've big some Now, your And quarter. the may inventory in not the taking not. of I understand revenues of maybe raises, allow into for customer

very got - may based of then have your customer the year from commercial push for feel going analytic seems pace say and your projects while trying sequentially my two just the which lamp don't to customers launches the not may I heard midpoint The as midpoint the given approvals. product achievable I'm an just second like I you you're validate to not admire community. to, well of on I seems well. I phenomenally your of seems some the $X.X the two given is guidance not one because in new the two million or me easily the commercial to goal. combination of which within moment, logistics we success the systems. it half voice just and questions late your their the we that But of know but and about possibility guidance all customer product out product year. increase, sales of And of wanted a I And launches like I to products demand they opinion, and quarters Let's just comments launches, accounts just place, their reported. of It lots in flat quarters launches adds new to doing at of of the the

a for early ask this that your impact sales occur base. can so Yes, me one back Let your within or approvals and an year two the there item that. commercial launch is uncertainty customer you? in year or can that are they Will circle

Mike Rice

be a all there's switch may have way say is good is - slow. say I question light curve the about these approval not just impact So, second A we a commercial commercial but we've because questions. approvals whenever would as our there. out our adoption of chance. revenue There gone on to

impact no say So be I year. to there would little this would that

guidance confidence. also to say try to it our and go as out to we objective bigger meet that. of the to your as numbers with business way pretty which fair, is reflect that question, is today simple high guidance our to out with Now And we we or level some of see respect beat want also that put our

how guidance. So committed can we our you years. to not developing things that about the for revising quarter shy we first are done see the on here doing as we've We're throughout already see based

we're we upward bullish out we than it and about to be that become it a business how if more is be we and So the - if come see make guidance. looks revision looks going to number higher will and going like transparent the to

Unidentified Analyst

impacting But will very especially on that's this Okay. And on on approvals slightly bullish much the I revenues, year's And to thanks very thank much more sales your on very remain me. not outlook. management response. helpful your for

Mike Rice

I you. it. appreciate Thank

Operator

Thank you.

Our from Venator. from Brandon next question is Osten

is line now open. Your

Brandon Osten

you Hey, How are guys. doing?

Mike Rice

Hi, Brandon.

Brandon Osten

right? wanted new is Just and that that a customers, you there clarification XX said as direct

Mike Rice

right. That's

Brandon Osten

many now? How you customers direct do have

Mike Rice

Several Yeah, in is XX the region, for those Brandon. XX, quarter were hundred.

Brandon Osten

Right.

is who So other XX? the

Mike Rice

They in of the biobanking They're customers drug space. new the discovery segments. in other the are in comprised

Brandon Osten

discovery distributors? drug the not the the distributors is and just In or this

Mike Rice

the that's That's correct. distributors, not This correct. is

Brandon Osten

distributors, the not okay. is It

thanks Great, Okay. guys.

Mike Rice

you. Thank Super.

Operator

would questions. time, back At Mike the over this CEO Instructions] Thank to closing remarks. for you. I'm I showing call to Rice, further no like [Operator turn

Mike Rice

Thank GG, thanks and everyone. Good evening. you,

Operator

Ladies today's concludes your in and This for thank gentlemen, conference. participation you the program.

You disconnect. may now

BioLife Solutions (BLFS) 10 May 182018 Q1 Earnings call transcript