BLFS - Earnings call transcript Q2 2020

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Operator

Welcome to the BioLife Solutions Second Quarter 2020 Conference Call. My name is Rebecca, and I will be your operator for today's call. Operator Instructions. I will now turn the call over to Roderick de Greef, Chief Financial Officer.

You may begin, sir.

Roderick de Greef

Rebecca. you, Thank and BioLife everyone, and for us XXXX. joining results Good conference thank call the of quarter Solutions the operating to for for afternoon second you review financial the issued this the for six a Earlier, and we press which financial three XX. summarizes June ended release months results our afternoon,

to regarding that call, company. future or financial cause of the As this make to from projections events we a differ reminder, uncertainties and expectations. future certain statements risks are actual results subject These may may during other and forward-looking statements materially performance

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

the non-GAAP During metrics not adjusted speak we afternoon. this included adjusted non-GAAP or we viewed financial These be are an release the issued or in press financial GAAP. as GAAP of non-GAAP call, results reconciliations should to or adjusted will to to metrics alternative

view with to clearer believe We compared of However a adjusted our results activity. provides of that the use in investors M&A periods. our light non-GAAP or current prior metrics when of financial

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

Michael Rice

growth, call. are therapy solid QX business. everyone. to We're We're armed rewarding, the all Thank portfolio and to afternoon of we're for good for future, activity. raised to billion companies more leveraging our follow-on expose place is the despite customers continue by media balance was expanded space. region a and the We capitalized M&A new the facing and brand is to XXXX. COVID-XX. top for sheet due generated the quarter another $XX oversubscribed products, well us bigger million further building of grew line challenges nearly med and our gene are with joining serving of execution white $XX and Rod, customers good cell in completed now revenue the just XX and industry after adjusted build gained EBITDA, med right a of We're Thanks our to with to leading our end offering strengthen the media XX%, quarter and with first the in a an region positive our now profitable half great hot space by you

this or regarding that Milner customers in Biosciences, plan to is SolinnCo's, to media Vitro product of cancer ImmunoActiva, you for media the multiple Therapeutics, at therapies our I'll longstanding is year-over-year and X% at using an each Relevant as known in gained treat least used be used or This to therapy are applications. Neupogen, and as seven used of or We response the in pandemic, form booked and the current the about BBXXXX. or CryoStor CryoStor two customer BMS, Vicwest BBXXXX, CAR be manufacture gene in relapsed XX of in provide our and QX cell for uses FDA there lymphoma bluebird media most including in media to the for XX% about to some clinical products, new we now our for include I'll processed ED products file least biopreservation cell strong. quarters blood our to is Avita and XX Leso CryoStor far we orders. Wetstem was refractory Gilead related this in for first Now, up also Biopharma used cap vaccines. Opta, order Kite CryoStor from for new and any mantle customers XX. from line, year provides glad revenue COVID Squibb Curtis, approved, year-over-year that Caribou Therapeutics, first QX of therapies. PDUFA up We Yescarta. Also, COVID-XX are B-cell Minerva cell Bluebird. use approved use QX, bio remind use that Bristol-Myers confirm in QX of so recently quarter, XXXX. I'm use approval products of in new of our clinical Cartesian nine the to the request trials November Capricor, large call in of we would estimate and in stock media media lymphoma. for Biomedical, Kate's refractory myeloma. Cell, relapsed also QX US date These Leopargen. also master Celgene treatment $X.X Biotechnologies approved safety Also bio-preservation highlights support to for therapy $X million that file in therapy a customer We planned current Media in cell in If outreach our program, to addition second gene have clinical T-cell the trials. cell is of integral XXX Leso in common Juno cell

proven many gene be note cell of Gottlieb plan to customers that important phase the therapy predicted We our and supporting over evo you early jointly trials. base to QX, thought BioLife all driven chain were points adoption of have carrier annually. gained therapy new in agency with cold XXXX former we've these new tremendous here that platform between and evo January revenue, Scott for of achieve FDA products and revenue and in This on clinical XXXX, partners, our Automated six XX ThawSTAR customers. to cell shots now so with Many customers. Working upside evo we by goal gene all are that will remember a XX five XXX and trials. on It's be the

but and and platform will low, and is notably revenue we're a the relatively cold space, evo small, So volume approved evaluation. leading chain we gene hence cell to continue the cell therapy that the support therapy is in emerge as and and confident preference management shipment company their

adopted broadly customer validation therapy track, the and So and we of we cold this and is cell far, the space. after know work our win customer media adoption to on win greatly you products adopted platform believe could others how chain in if gene accelerate this similar evo the were

ways. visitor gained restrictions at and us continuing, launches the foundry also good and equipment platforms or prospect also Turning onsite late to customer Despite shippers in or our And in travel we use evo our drive purchased to second for at manufacturer CBS customers and quarter, platform. a freezer progress making anticipate the management for delay CVS impacted new cold two that new two QX QX. vertically related product this approvals franchise is COVID-XX and in XX freezer we freezers our capital to per development on We're has and integrate accessories chain purchases. environment large in sites in

a quarter and forward the offer the look We therapy just investment completed continue end and we remarks activity the to cell in actively public year, funding doers is to of cash M&A and from the when a conclude QX. million May, can. and this great recap follow million on to offering additional investment gene expect tools capital in of I'll and space. first discussions to $XX of with with next the our details shape BioLife CBS oversubscribed we in $XX We're after may consolidate in my bio-production year. engaged sharing

Rod? financials present Now, Rod I'll QX, pass back to for the call over to our

Roderick de Greef

quarter for representing safety related million totaled over an year. stock. first realized XX% by revenue, of it media of impacted $X.X second revenue a XX% X% last for pull $X.X media quarter Thanks, compared increase quarter the the forward revenue the Revenue of was quarter XXXX was significant $X.X Mike. total first representing million, the last demand. or to year's of growth million in our in the revenue, increase We customers building Year-over-year in to second

thought quarter's revenue $X.X COVID-XX from and our of negatively capital and XXX,XXX impacted the thaw included revenue delays This believe related lines and freezer line by We also related sales automated freezers accessories. revenue and cold related XXX,XXX chain to in was million postponements. evo of delivery order product product equipment

$XX.X continue an to for million, last expect Revenue Something months the totaled of to increased that we'll June XXXX. period year. of XXXX the XX% year. six revenue period first the in the ended through $XX.X the six same the compared over XXXX months XX% XX, million we Media increase same balance of for

compared XX% margin gross this quarter year. adjusted with last second was for the XX% year of Our

gross XX% respectively. in months last The of adjusted lower lines, automated reflects for For gross thaw, same the margin XX, accounted in product the the margin XX% which six total freezer and ended was adjusted revenue for both XX% profile to margin period periods and June evo, year. compared XX% decrease

the anticipation acquired in of in addition, year. growth In we lines product last

also manufacturing with for evo of our million fixed in our freezer $X.X and XXXX. have QX increased compared million expenses $X.X totaled We at QX, operations, overhead operating adjusted

as to driven expenses XXXX adjusted expenses $XXX year. is second year. For an as XX, the to ended to for XXX,XXX well both million made stock-based XXXX $X.X months increased the million and the The the in six second last in ended operating in the totaled operating with six adjusted same increase year. same income primarily of compared overall adjusted compared the necessary $XX.X operating operating XXX,XXX compensation was for XXXX, in period June last with acquisitions support Adjusted quarter an additional the XX, in compared last headcount our loss XXXX related periods expense income totaled period quarter growth, of XXX,XXX million months June by

the XXX,XXX net or the adjusted income diluted compared per diluted in was per adjusted of year. million last or X.X with of XXXX net Our $X.XX second same for $X.XX period share loss share quarter

six the totaled the in $X.XX EBITDA was net $X.X for $X.XX June million Adjusted the adjusted same income million share $X.X million compared with with same last period in or per ended second $X.X or For last year. compared months $XXX,XXX year. quarter the per XX, period share

totaled $X.X million for year. the For XX, June compared EBITDA with million period adjusted same six the $X.X ended last months

closed we July, the offering million, $XX on We million Our cash cash was million balance net approximately into June balance account of excess provided sheet. at in of which in now in have $XX the XX $XXX public proceeds. taking

taking the into of count, and fully diluted terms currently shares outstanding and we have basis. a $XX million shares issued share on issued in million In shares consideration our the offering, $XX July

the support operating growth revenue growth, they EBITDA our raise underlying and year-over-year overall pursue which strategic XX% The that is $X.X challenging continue flexibility arise. despite million continues revenue with we believe to first adjusted Finally, media includes XX%, providing financial as capital the rationale opportunities environment, results, recent to financial half of our strategy. the to us growth of

back I over like to Mike. Now, to turn would call

Michael Rice

Thanks again, forward a to on this solid we and to Rod. execution further summary, and and and The cell consolidating era. supplier a tools the to our In value create customers is for space as tool gene continues growth. challenging and leading bio-production presence COVID to shareholders business expand. in foundation look our drive execute therapy continued We

back I over take will the questions, to call to Rebecca? the Now, your operator turn

Operator

Instructions]. [Operator

is from Jacob question from first Stephens. Our Johnson

is line open. Your

Jacob Johnson

taking on quarter. the guys for thanks and congrats nice Hey, questions

Michael Rice

thank hi, Jacob. you Hey,

Jacob Johnson

approval? your take media business With of this largely the hardest opportunity? is approval this parts a could Or benefit from of other

Michael Rice

good Yeah, Jacob. question,

So parts a yes, of and all to, initially the current continue of media, we to customers customer. to but the Gilead is our portfolio strategic present offering to Kite course

conversations. So those we'll having be

Jacob Johnson

as the you And about initial we then commercial color of you wave ramp a customer, these the the indication maybe I and but therapies? that? on follow-up gene varies on it think think high-level a the cell Got How that. do and by approvals imagine it. of of any therapies. about Can

Roderick de Greef

reimbursement does can ramp that's how answered clinical Well, and companies align that about training yourself, bet. for for following coupled with to well of you you I'll the coincidence the strategy, much vary have capacity. indication achieve the particular finally biologics. the The to It very it things, these the converge on to manufacturing administer to success, and happen centers then commercial the

of the time. initial than two So, well, cleaner goes pipe would we've faster what's all ramp applications expect for the some Kymriah, that all studying we'll now and quite see been going I if stuff the really things Yescarta that

Jacob Johnson

adding there Got it. where capacity for due right is you some Is there Thanks one or for one, the areas you're that. other increased And the expand is Can just maybe Rod. to manufacturing deal there on now? this last CBS overhead? largely

Roderick de Greef

They bar and Yeah, of lean consistent quality operation, running manufacturing beefing really to side I of system quality, is that, on both that's side, in Albuquerque. with respect a make think high it's driving less Detroit capacity control as quality the it's to our and to bit to processes, in with with the it the we have that a do our up pretty we throughout sure little and is do want all that increase. so were

Jacob Johnson

Great. quarter. on my the and That questions congrats makes sense. Thanks taking for

Roderick de Greef

Thanks Jacob.

Operator

And question Wiesenberger. our next Marc from is

line Your is open.

Marc Wiesenberger

you. Thank Good afternoon.

Roderick de Greef

Marc. Hi,

Michael Rice

Hi Marc.

Marc Wiesenberger

a I'm wondering Hi, timeline that as platform of about a dry kind maybe you of ultimate transportation we could for little of that, on transportation? think and acceptance detail potential for partnership the more more ice the provide if qualification and bit cryogenic or evo a be then, would

Roderick de Greef

Marc. questions Good Yeah.

is pass the what and you work to that there be we months to going completed assuming remains of competitive as you then how to rest expected goes think or forward few be really do have we which know, to get we'll will that we evaluation/validation work soon might a this here, we transition imagine. in think some the but I can confident highly work The details. to, the and because witness, to we continues, say and we're we're seen, occur as here, next environment, the adoption the the as is just updating in more look evo careful

Marc Wiesenberger

deal or some how expanded completely yields. And you looking with with more chest the you. large to be in thank I we maybe offerings one deploy doing about would then have, portfolio. add complementary scale new you thinking of one should multiple helpful, or be maybe me, this current in deals look you. Thank you to to That's operations terms offerings really money, guess just would And to you from now the war

Roderick de Greef

question, about we can for be bet. up And will, Marc super. is specific certainly the of the mentioned answer you Super, you Yeah. more all short is we but that everything and when above consideration. that,

Marc Wiesenberger

hearing thank forward more, you. Got it. to Look

Michael Rice

Thanks, Mark.

Operator

next And question Byrnes. our is from Carl

Your open. line is

Carl Byrnes

the for on congratulations and Thanks Great. quarter. question the

Michael Rice

Carl. Thanks, Hi.

Carl Byrnes

will if have experiencing I'm really tent numbers if you orders for The but if online? were CBS if wondering deferrals, so, you any and when or back look come feel can up during CapEx good, any those had Thanks. you're quantum orders held

Roderick de Greef

farther, kind got might who my I quarter, one working really, doubt, we that's No had and freezer of We're electrical utilities they if love we well order hard fit restricted highly to a go but a pull to things freezer that large in, knows site to crystal fall it that to to and normally a in on two do once a it we plumbing wish happen. I ball our it the actually ability and better or might to Yeah, in have in a be that for a what I do, from get cited would everything the even sale in sales can inability going see Carl, and like which but includes where pushed we with had amount. that technical consultative order travel process is with significant freezer delayed. this remarks. exhaust

their a lot that customer testing, then So to site various build for own stages in our can do, which sure. the meters get but addition factory it we stuff been the testing be it's to ready challenging once of to how to first of to out acceptance project, receive, has for the acceptance

what as COVID that again are going when to this As this far mode, We're we'll we but last the anybody's which the much incidence doing up of in, virtual guess authorities. not rates best hopefully depends particular normal country and on are and and and things part as as health see the that's can they're right. local the new going from to is restrictions too longer, open

Carl Byrnes

things thinking do Thanks. I pretty stands, is mean, great. business that, healthy pretty, That's there the numbers a backlog when of for I'm it just anyway. good, as quarter, open probably there. up the

Roderick de Greef

customers to we're don't our certainly well folks get prospect product space, we Well, in this to as use of captive everything doing exposed can media. the as all who to into the

non-media that's the we're us know customers don't this who and then as media customers attacking order, well. So first and

Carl Byrnes

Great, thanks.

Roderick de Greef

You're welcome. you. Thank

Carl Byrnes

Thanks, Carl.

Operator

we a Operator Deutsch. And Corey from question have Instructions

is line Your open.

Corey Deutsch

doing you Hey, congratulations. hey how guys

Roderick de Greef

Hi Corey.

Corey Deutsch

quarter. the On

Roderick de Greef

Thank you.

Corey Deutsch

further of that good a Could now you income roll kind kind space? just you of the just this provide circumstances decided a on of to M&A current time the given net ultimately that color guys bit landscape, and have how holes some more in up is and quarter,

Michael Rice

you the financial maybe first Rob, the I'll impact. you And that take Sure, know, can that, answer part.

just I'll are at what I'll right. So, think Corey, I and looking do, what we off start repeat

half the then satisfy that names that or it underneath that shipped that started is back company there gets storage it factory, get everything it to the all then to takes of let's that, purification space, in are year cell maybe and you the but dose, gene to companies work what's fit of ship just there part many material of companies how to gets cell there the the XXX in material cell ago, could, patient into that say house ago once particular then to years stuff, that So workflow. and these therapy our turn and as to And to therapy into that we Corey. into just are layer, something of decided that and once real final factory workflow until the a of acquisition in in a two manufacturing expansion the the moving as bio-production transaction around a gene the We whether dose types then it selling source dissect the are the of chunks it's tools here. source inside from technologies it have we and know, that time

really following. that's map I the not road too way to of hard it. attack that a out, it's it's figure reasonable So It's mean we're kind

still we novel there for more investments early of either seed for be of and And a are targets stage handful that outright what some than so disruptive to in very us to are consider acquisitions if would interest potentially not technology.

way much that's much of now. are now right consolidators this in cake in going are levels relatively bite we're why layer consolidate Company, sizes. Well, and small to of a with about So certainly a at it higher we're continuing there larger and terms who ecosystem the

as So can. we're smartly going to do as quickly enterprise everything to we this can grow we

shareholder Rod, to income can to the So that respect really whole value, and we any add you continue that's his make want described goal that? net to comment on there. as with he

Roderick de Greef

Got, whole you what do say when by that? you mean

Corey Deutsch

the about XX.X? net think loss you When at

Roderick de Greef

Well, of of say million want XX.X Corey, for yes. that to that. But I plus XX

to just me with value to the has do get change warrants. this the of XX.X XX.X, our Let the page. in Yeah,

Okay, the warrant liability.

on below got basis, line of swings nothing QX want there. that's is adjusted in the converted the of since been to criteria respect side operating on be impact on definitely see something we of it's top with have with So net anymore And a business going accretive of overall seeing terms on we in what sort to to the basis. the those be going that, are not do Is to to are and. an But XX% the income. that of warrants cashless

Michael Rice

Yeah.

Roderick de Greef

to and it put Within well until the just if doesn't it meet a to investment XX-month criteria. that that level? minority may sort XX- that a on period, make of We gets it and bench,

Corey Deutsch

I mean guys. here listen Yeah,

and of robust cell think of about you therapy done guys space, landscape, when the rolling of tremendous job and coming pipelines I gene commercialized. you products a be think incredible in growth just to have and tailwinds, a and terms the

yourself pick million of terms to that I the lot now and color the in about you're a and clarity excited think gives very $XX.X you on it a guys play positioned well me is because have shovel future. helpful, positioned more incredibly as how I am hear in

an mean, So quarter. congratulations greater. I on awesome

Roderick de Greef

support and Corey. interest your Appreciate Thanks.

Operator

Jacob the last is question from Johnson. on And

open. is line Your

Jacob Johnson

media the is year. one sounds line. quick we back in Last the a that just obviously, as some business, this continuing, Hey, the half in you but first half like had follow-up. It lumpiness strong of into look year business

color Just revenues? any media other your on, expectations for on

Roderick de Greef

that Yeah. at Not or quarter just here really, QX, of prepared repeat we I so a halfway through not in less are I'll is during far, my and point, Jacob. the media little this bit than a remarks what said strong.

and we'll of sustained some quarter be to will have the for full report media good that hopefully, really news So sales.

Jacob Johnson

for taking all it. the Thanks Got questions.

Roderick de Greef

you. Thank

Operator

to We have Mike no time. will now turn I further the questions over this at call back Rice.

Michael Rice

interest forward results. report and can during again, to you thank look and And And speaking We our healthy, Good our and BioLife. safe you ones your for Rebecca. we stay with Thanks your you we hope QX night. loved everyone follow-up calls. when in

Operator

concludes you, and gentlemen, this Thank ladies Thank for today's you conference. participating.

disconnect. You now may

Roderick de Greef	CFO, COO & Secretary
Michael Rice	President, CEO & Director
Jacob Johnson	Stephens Inc.
Marc Wiesenberger	B. Riley FBR, Inc.
Carl Byrnes	Northland Capital Markets
Corey Deutsch	Analyst

BioLife Solutions (BLFS) 9 Aug 202020 Q2 Earnings call transcript