BLFS - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. And welcome to the BioLife Solutions Fourth Quarter and Full Year 2018 Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct the question-and-answer session and instructions will be given at that time. [Operator Instructions].

conference recorded. this reminder, a is being As I to Officer. Roderick like to conference over turn the de would now Greef, Chief Financial

may begin. You

Roderick de Greef

joining year operating release and Thank thank our results a Bio XX, a for Astero this And Solutions results afternoon, press and release, press Good X Corporation. quarter financial This call summarizes us are and morning, fourth XXXX. available for issued full conference the you, agreement BioLife December XXXX. issued for detailing acquire to on Relations afternoon, XX which review at website everyone, to the earlier our our the biolifesolutions.com. the financial releases ended of Sonia. the for you Investor we months and of page Both we

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

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

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

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

Michael Rice

almost the strong comments $XX XX% Good to with initial financial about just our of revenue We XXXX. gene profitability in a Had segment guidance details dynamics and grew continue for just Rod. the in adoption with and under Market Regenerative announced of over year XXXX Astero biopreservation including market. and for the agreement therapy acquire of about million. Thank our present the growth the execution joining and results XXXX about you and Medicine market that everyone. the of full business proprietary, products Bio. very call. progress Rod and around year impact afternoon, speak of Thanks, full significant some with the to make media our was first revenue start our I'll driving segment. begin our provide QX expected some XXXX, year and Astero acquisition. financial comments I'll will After cell

at during This continued invested up There the underway than over year. end at of a XXXX. more were pace $XX XX% torrid the the funding XXXX billion with First, space X,XXX in more than is trials XXXX. clinical

representing cell segment Our Regen XXXX. $XX therapy new and million and was We XXXX. gene customers Med XX gained XX% total of growth revenue XXX% of direct or over in revenue

and environment Notable for prospects Semma, in evolving [indiscernible], the Mustang, FDA use Community of Maverick, our customers Rapa, Med products, products de-risk gene Works, a important There XXXX. of will is request patient. broader plan include We that for This the our predicated master reference adoption occurring believe in The payment direct a therapy. [ph], new trials. dose since this our dynamic paradigm with pay the notify they is reimbursement customers and space. and XX into to processed is dynamic a cross and the our also We on customers Flask WindMil. FDA in on up to clinical XXXX and therapy ALAgene, POSEIDA, new Refuge very support XX a Regen additional is from XXXX to non-viable cell for cure potential the XX files. mechanism to This response patient positive media delivering can biopreservation a this in

that combined are say facing cure therapeutic temperature a You've distribution and cancer cells many risk dead time products use of developers the therapies. best in economic and the times and don't should our cell administration of gene practice and sensitive manufacturer heard stores, us as broad and

expects cell starting stem XXXX, in granted, Kiadis therapy transplants. For catalyst customer second expects half If Pharma Rivo-Cel in cell Europe a they approval in LentiGlobin ATIRXXX approval the for rest include potential and of in BP-XXX results conditional some LentiGlobin Bluebird second for for of XXXX quarter following the line hematopoietic we European submit to Kiadis year. for of are ATIRXXX is an also of TDT top to this adjunctive the FDA anticipate intends approval in Bluebird, by Bellicum end study in MAA approval in second of TDT of a patients in for Rivo-Cel in XXXX. Celgene intends to for in launch XXXX. with countries finally, half selected organizations U.S. BLA U.S. the patients the [ph] expects with own the file XXXX. year. the commercial its from end the by of late Europe filing And through Europe with of the with

our Next, performance. indirect sales channel review I will

MilliporeSigma, total distribution largest channel STEMCELL partners four Technologies, These have was we Thermo XXXX regional This life a and of XX% over know, group four X.X with relationships the of growth contributed VWR. with science in distributors of OUS revenue. of million tools Fisher revenue XXXX. and companies, XX% you As small

research seeds distributors are transition to scientific, technical on end request planting users gene channel end many the may from users trial of commercial companies clinical and approved in our and we therapies. cell Based believe stage indirect regulatory support, So is for and operating markets. efficiently with become and possibly the and preclinical partners hundreds

therapies. believe used We the of in tools storage for supplier fragmented a in to technologies opportunity deal base, QX used our of gene complimentary tools gain the the space. strategy to and expand Astero strategy. Due and last in Bio. to this acquire to acquire consolidation the articulated our to year, pleased spend a for production BioLife bio it the tool announce there's increased manufacture, We're distribution first Turning a in very agreement portfolio called cell to we and identify M&A to we share

Astero Bio engagement is a perfect fit footprint in manufacturing customers' and our level workflow. that supports of our expanding our goal

viability respond. mentioned on not the to risk of providing tell can cure This can longer changed me thaw earlier. and therapies, used the that don't bath bath manipulate the water family packaged the also uses. Let sensitive step frozen in gene is risk a thawing which the distracted reduce in thawing, you a of get and users between doesn't are getting therapy consistent same team patient. products a in to the The devices and administering cure out user companies is cell cells dose that manual the of has frozen the Again, and the baths dead a is The since accurate patient reduce devices bags. pay ThawSTAR the baths vials require about not Astero paradigm in than of brand and and water acceptable. dose product. the risk for if the dose. getting products. contamination developed bath replace It's There automated I is the gene manual a the cancer reimbursed dose and ready Water non-viable by leave cell Water

deal, very relationships In programs, in will So positive XXXX, automated synergies we customers gene that growth to trials in can driven for feedback thawing and sales several We tools our diligence that industry tremendous buyer therapeutic the leverage see the about companies. with see and risk market thawing platform for our cell a and technologies and ThawSTAR and customers therapy broaden addition million media Infinium awareness and and and about ThawSTAR. to see from research the therapy Global is XXX automated cell space gene our number on to by therapy the devices, portfolio marketing approvals. clinical Research like look of our great received in the consultants. of economic mitigate of all gene by estimates cell we

Our therapy cell facto in goal products ThawSTAR is to standard to become gene thawing the adoption of automated drive workflow. and the de

suppliers SAVSU, Finally, innovative company based dozens also stake information to cold of existing leading the a words and about innovative solutions. to XX% that from companies a and win companies chain engaged the I'll with stage management we ownership cold commercial Albuquerque cell chain clinical therapy convert trial and hold few and gene less in. with say SAVSU established customers startup is

so As market or you this the is can't names any we imagine, extremely call. on customers can competitive, prospects additional disclose

for cloud very bullish share on of significant SAVSU's remain chain opportunity we to transport cold solutions. connected market However, capture the

the innovative technical experience respective develop also to therapy Astero and cell look continue workflow. gene offer SAVSU forward the using to and to leveraging We at and products

presenter the highlights financial and our XXXX turn transaction. impact call including to I'll the the Now and for back QX Rod, the guidance financial our expected XXXX full of year to Astero over for

Roderick de Greef

Mike. Thanks,

over Our revenue quarter a record $X.X fourth $X.X fourth reached of of million, for XXXX XX% year's a biopreservation media last revenue the million. representing increase quarter

in fourth For the to the increase to for channel. Med our full biopreservation to year, sales for our of result in XXXX. margin million, both space was our XXXX CryoStor $XX.X revenue and in media from to of the year. in The XX% periods higher distribution quarter of $XX with the last increased Regen XX% up primarily the of compared XX% million gross customers The quarter revenue grew fourth

in by For $X.X in Operating volume blended compared with gross compared million goods XXXX. sold full ASPs. higher The and increase of primarily product for $X.X margin in related QX. the was with totaled in XX% was QX expenses XXXX, periods XX% both margin reductions driven year million, cost of for gross

operating increased For increased compared operating $XXX,XXX is to operating an the The periods management $X result of with related both expenses quarter's increased compensation and fourth costs systems. marketing $X.X headcount quality of and expenditures, for XXXX. our compared the enhancing The million, million operating XXXX, performance based expenses fourth million, totaled growth was sales full quarter of the increase of to loss support XXXX. with in $X.X primarily expense, higher profit for year our in

the loss for the full For same million profit operating of with year million, operating in totaled $X.X XXXX, an compared $X.X period of XXXX.

share, $XXX,XXX common compared $X.XX loss quarter a diluted or fourth of $X.XX with net income shareholders XXXX. in of $XXX,XXX to the per or per XXXX, share was attributable For net

common million or For period million the with Adjusted per $X.X in share, compared $XXX,XXX $X.X net share income fourth for last full $X.X same XXXX, net or of loss year the a year. compared was diluted with per million, EBITDA attributable the of last to $X.XX shareholders quarter was $X.XX year.

in was of EBITDA million, to the compared adjusted $X.X For year XXXX, full XXX,XXX XXXX.

operations than XXXX, adequate I'll more combined related beginning million. with Astero continued subsequent XXXX. $X.X years second to million fund the contingent shares During outlook transaction all of annual the the the these upfront when shares through of $XXX,XXX XXXX, cash outstanding Series the expense with to positive and respect $XX.X and of us the to We Series quarter. for be A A our we impact from dividend cash, We payments at the throughout in of to year in compared end current million XXXX Astero redeemable go of cash cash flow our going acquisition. stock includes balance the Eliminating that the guidance will With our for $X.X believe XXXX forward. redeemed ended preferred in full saves both

of XXXX for this year. of between $XX year-over-year Astero million in range revenue will XX%. total anticipate $X the and We million And that revenue we to to reflecting growth $X $XX be contribute will million expect XX% million, in

products rate add next Over XX% years, could Astero percentage revenue points total to revenue. annual our growth the XX comprise to to we that up several X our the of believe and

gross XXXX should between range to blended Our XX%. for XX% margin

margin a a small expect forward, the gross we as will we our basis XXX be approximately of line, result Although Astero going the reduction product impact believe that in points.

product of into with gross of quality currently With range related expected headcount Astero's the higher line the company, we increased in Approximately in million over primarily will are following the operating half to and products XXXX to $XX.X areas balance as increased XXXX performance marketing believe California to a are the million. low-XXs. expenses transaction volumes, is the by increase margin climb related sales based have margins CMO gross the to the in and manufactured Astero the as compensation. mid-XXs. related be the and well based $XX.X to the

of adjusted than XX approximately I'd we margin providing of Although like In anticipate slightly within reduce level our of the QX a operating purchase and full million operating margin margins XX%, sustained of shares my common share Astero to summary to the to this profit remarks operating years, exit year will our our with year somewhat count. an Astero with XX XX.X%. EBITDA end positive expect XX.X is year, higher contribution which in subsequent we have currently to issued with our increasing a trend months. a We outstanding. XXXX

overhang only brings warrants non-affiliate eliminated Adding current Our to warrant our count warrants during remaining. fully effectively with was in XXX,XXX options these of diluted XXXX insider XX million. share

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

Michael Rice

support and Thanks again, delivered year. shareholders BioLife. board focused excited the the to our new strong forward really summary, across of on. and our We're We I throughout I'd your XXXX about look progress and inspired to like long In for what standing updating Rod. was an thank numerous results. executed success. we're on

operative Now I'll questions. take over to the turn your to the call

Sonia?

Operator

first Janney. Knight from [Operator you. Instructions] Thank of Our Paul question comes

is now line open. Your

Paul Knight

do you add distribution people? of plugin is Hey to do How Astero as effort, to the a general? even have have Rod. on you What it sales in do

Michael Rice

a expect up of efforts the with to also the Sam several some we Kent. have. straightforward Paul. distributors addition are people of do to We in very in It's distribution, looking XXXX sales be could to kind tie same add well pretty And we plugin,

side should be the of straightforward to sales a it So approach fairly things.

Paul Knight

than And the how talk data better III, on seeing I Rod region the market year, regarding, can of or master you many Phase to guess getting numbers. you people access some for the looks like you're your But on the customers Mike? about probably visibility file, have medicine in it ever

Michael Rice

customers distributors, I'll there's through as an we Okay. Paul, guest, some these Take go don't same always, educated always the issue us have to have. some the visibility caveat because of

to complete, that know, we call not range. crystal it would you it's XX, it's you But, say know, XX ball. Phase you So III, a in that know, probably

Paul Knight

an margin, business run And Astero, ultimate on gross What's potential consumables? then you margin, the think when on margin with think? said, XX-ish. we this the basis you operating what know of level can about is the I at do What off

Roderick de Greef

Yeah.

combined Paul, it on way think, is at looking we're the basis. I a

line Our purchased product per and that this right. is view company we've opposed transaction se, a of as a to

are we fully So to operations. of all the operations into going integrate our

basis. margin as forward, going on an going at to so a And company we're wide be looking operating

to estimated And So quarterly QX, expect the by comment that I on we subsequent that's know, did why climb I our made XX%. referencing QX basis. continue you years then to exit a

Paul Knight

Do you think ThawSTAR is a leading technology in that market?

Michael Rice

ThawSTAR We This the of unique features and works and the consistency it's see is be Mike, several bag And the Paul. differentiated over innovative has really in the really algorithm both in way actually following. platform excited which the and it product within device also other emerging or CB, about products advantages some ThawSTAR we're the unique that may competitive market. or format that

Paul Knight

the Congrats corner. on Okay.

Roderick de Greef

Paul. you, Thank

Michael Rice

Paul. Thanks,

Operator

next comes McCarthy then And Group. Jason you. Thank question of from Maxim

is open. line Your

Jason McCarthy

on for the and Hey the quarter. congrats Thanks guys. question

Michael Rice

Jason. Hi you. Thank

Jason McCarthy

right. All

actually one FDA cell statement to the relating the to ask I'd like policy therapy in back January from about manufacturing. XX, So you something

guys how you impact guys? it go depth on more you could on if a see in Let's bit that

Michael Rice

Sure.

centered to or be our the was repeat assume in FDA of therapy to if statement, So, take that could some have but if that the they necessarily Jason, optimized, require FDA wording around, identified them is you don't positioning manufacturing coming trial. and perhaps process from are to away going out clinical cell know, stage, late step gap that and a developers the a gene really that

news mean us. a manufacturing make and is additional that in change study fantastic. some with late that bridging small stage that for takeaway a that's that validation could the either So great can or That

Jason McCarthy

All more you I'd the right, cell about Thank just you. with Astero. quick to how then more helpful. one could bit one like to relating see ecosystem? And therapy a if current that's guys interplays BioLife talk ThawSTAR

Michael Rice

You bet.

to base other lot market with call level relationships. we level a preservation which and and we've of who know, our a decisions cell the when great customers, the relationships can of number about there's customer overlap. and particularly So on our and makers VP and got make think media and high with And points C therapy a gene you decision use use,

to trying get holistic So it also. to paid cure make sure some can the little a at that want food they you appeal make developers we and de-risking they to an stakeholders believe deliver have higher that, we altruistic different folks know, view in to really know, an don't chain, From you sense, dose. up a these but yes, a to non-viable patients, for want more

both the CryoStor, same really, proposition. are the preservation of value So the complimentary and give media to to they form the ThawSTAR, risk really techniques, these pain and appealing overlapping two mitigation, how also and HypoThermosol in same in points

Jason McCarthy

you Thank very right. for All my questions. much taking

Michael Rice

Thanks, Jason.

Operator

Kalia Instructions] from Northland Suraj you. Securities. next Our Thank comes question [Operator of

open. Your is And I over again comes any closing unmute. back Securities, CEO Suraj now phone Rice, Suraj turn like Northland question-and-answer conclude Kalia session. call Securities. And of please line Northland would our our This is from Mike if your does to remarks. for of Kalia question on to the mute,

Michael Rice

you, Thanks, quarter everyone. report We afternoon. Sonia. first look we speaking results. our you forward Thank to when Good with

Operator

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

may have day. all great Everyone, You a disconnect.

BioLife Solutions (BLFS) 14 Mar 192018 Q4 Earnings call transcript