BLFS - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q4 and Full Year 2021 BioLife Solutions, Inc. Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Troy Wichterman, please go ahead, sir.

Troy Wichterman

Grace. you, Thank and everyone, for this joining Good thank call. afternoon, you

Operating today's Joining de Rice, Chief results we and call fourth our Chairman for and release on a Greef, Earlier press issued and and operational Rod Mike financial and full are me year announcing XXXX. today, Officer; Chief President the highlights Officer. quarter Executive of

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

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

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

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

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

Mike Rice

to gross initial will and you take that, everyone. afternoon, managing Stirling for XXXX remarks, After our and revenue XXXX. year Then glad of he operational for we'll platform. ULT your freezer After an the QX guidance specifically good targeting will update for provide our financials our key improvements, my our joining be margin and is Troy, on present initiatives call. full Rod Thank questions. Thanks, Troy for

We Turning of revenue QX, complementing level and year-over-year their year-over-year get XX% XXXX. and at I'll Starting stock XX% QX, line what growth growth in revenue. to customers in of highlights. X XX% was increasing was to QX, in sequentially. in million a remind this XXXX new and services platforms, are. clear QX up believe then to media demand. across our It's are continue to media large compared one inventory growth those levels biopreservation in assets Top XXX response QX XXX% in our we biopreservation you now product fourth XX-day began acquisitions QX distributor will downstream least gained and $XX stellar this customer total strong Organic quarter of driven revenue power In that the revenue by and revenue to off. fast-growing was

which First, and cell biopreservation processing, includes Sexton products. media

which and includes and evo Second systems offering. Chain CBS and finally, services, storage ThawSTAR our cold and mechanical and is platform storage of systems; Stirling Cold our freezers thaw comprised liquid freezers nitrogen freezers chain and SciSafe services our management

new cryogenic new New biostorage new Stirling XXX Sexton now XXX QX XX end and using evo users, cell new Cold in products. XXXX. included XX product biopreservation new customers media, QX XX new to users, of customers, XX X now These freezer processing customers by all in using line new Chain customers, customers ThawSTAR customers, compared freezer XX XXX

than on shipped of Based end indirect to really This products volumes portfolio broader XXX for HypoThermosol. stellar should adoption BioLife, customers year, gained at we order X,XXX X XXXX, and is to is partners a much XXXX. media of our having customers to team and year largest continue unique benefited year our distribution we direct far least full more help of and the driving new productive expect very also and CryoStor this impressive focus from our For services. us. direct distributors, key build sold in brand for in so revenue synergies and another bioproduction our we awareness and capture Cross-selling tools biopreservation

XX least customers During XXXX, than one purchased additional previously solution portfolio were using. at they

by to capture continue expect of accounts. our to our portfolio adoption We synergies strategic revenue driving at components broader

to some about qualitative our comments let revenue I'll revenue speak make each. and X platforms Now Troy for

for therapies. QX, incorporated products our be applications, gene media XXX to confirmation received that in of from at up the than that processing additional biopreservation cell XXX used we will XXXX. at products new trials our processing cell more end We customer media or estimate For cell been XX clinical clinical in least have

and For based a we year, range remain cell each media, X in milliliters application, generate average mil. and approved, vials our in the used To clinical would in approved media number a $XXX,XXX media our also therapies approved therapies. the $X processing million, used on the if per our media of and customer price are dose confident Sexton volume annual to X in date, customers of each doses is could biopreservation biopreservation our selling manufacture that in of revenue estimated in

embedded our applications year CAR in embedded media submitted or currently majority next that and also expected are of this the XX Our clinical BLA regulatory biopreservation autologous and least platforms media developers filings products saying which I'll year. at other CGT products our for the T-cell in approval be to by customer base includes development. allogeneic conclude are in of with the biopreservation most additional

media continue to in grows critical reducing the CGT awareness from We engineered with expect to for formulations as share companies. risk our role able play home-brew cocktails to take preservation be

freezers systems Turning platform. to and our Thaw

a shipped and improving surge We nearly our XXXX. on and freezer more demand pains demand quality -- result production ULT issues to chain and around quality that competitors, a focused the of and last of customers recovery that freezers few I cost double The ULT Rob from hyper latent supply X,XXX overall, that orders. our detail order unit fulfill team customer speak strong, our strained will we're to are clock year nearly we compared can saw inherited. we're some and remains noted, working Stirling experiencing we're As had while exposed our more reducing XXXX ULT demand growing activities. than products. in in to on say customer this mitigation our

our freezer in we're of nitrogen with Additionally, BioLife one CBS discussion liquid to add to distributors ULT our largest offering. platform their freezer

biopreservation revenue to cryobag is agreement amendment this expected finalize to ThawStar customers, XX year. a few X Specific to next family, cold chain largest evo. new their expect our to services, BioLife product distribution in for the our SciSafe storage months. our one In media and platforms, XX distributor Chain storage of we in final QX, and Cold our services, and includes which customers for services for XX add this storage gained our We evo offering rentals

to grow storage SciSafe continues very to meet about platform services remain and rapidly, optimistic to this ability demand. Our our we scale profitably platform

and our Quick expanded network to storage our Cold and that access through now is now World and list robust. Courier, International, to Chain companies specialty full long new opportunities management customers evo With services Marken have courier Biocare. optionality offering Our potential partner cell Thermo our class-defining Fisher, gene Patheon, includes platform, therapy

our another was XXX to were unique to over evo shipments the marquee more Shipment nearly volume expect up in network than for months. XXXX. XXXX courier partner destinations. next onboard X,XXX We XX% evo Total few

approved announced Another that, existing evo our second shipping their been and an X highlight company This CAR their the for for solely earlier is traditionally evo adoption customer a have support a services cold served the provider. evaluation we validation successful, by chain legacy global logistics and therapies. ongoing platform platform by approved will pharma if of T-cell

a approve to than logistics will one few most partner shipping container our CGT selection. leading evo the years, As platform and and we I more mentioned validate before, over emerge believe will that next companies move and as

XG can. also couriers across transition performance our deployed radio end the to in class both supporting new development a platform external. look and engaged committed our to the in map for innovation, well and we're users XG we and defining cell also sunsetting our product internal shippers new courier partners to We I evo say We're far forward of system. very when But towers solid road from can the fleets in XG recently report and the so the details cellular through sharing new evo can

to present financials to the and Troy year for XXXX. our I'll Now full call over the QX turn Troy?

Troy Wichterman

XXXX, XXXX. in XXXX COVID-XX accounted our platform a year XXX% XXXX. representing was XX% in XX% biopreservation XXXX. a XXX% Thank and revenue XX% $XX.X of of million, QX million, was you, off our full increase compared revenue. guidance. platform over totaled summary XXXX. XXXX, then XXXX's fourth related XXXX Thaw revenue XX%. QX start revenue Revenue Cell and XX%. XX% media storage was revenue processing accounted million, $XX.X over for provide review XXXX XXXX. financial Mike. $XX.X in I'll revenue Organic Organic fourth of up total Storage revenue up compared $XX.X accounted same increased Organic Revenue for QX biopreservation and for for and million, XXX% and for quarter storage XXXX. million, year QX was to with of $XX.X to which revenue of approximately growth platform XXXX Storage the revenue thaw and approximately revenue. totaled growth related for platform revenue COVID-XX the increase for revenue This Cell platform up period total platform approximately revenue ended XX%. the and for services COVID-XX XXX% storage revenue. accounted growth Freezers was was accounted the revenue XXX% same XXX%. was the the revenue. for revenue of up million, XXX% processing freezer was platform in growth XX%. Organic XX% platform approximately the up over $XX increased was of COVID-XX-related over the over million, our storage representing revenue Freezers XXXX. was accounted XX% and was revenue was systems over $XX.X related XXXX. million, for freezer up XX%. in by XX% systems up same period platform $XX.X growth over Thaw Organic results XXXX. XX% over and and the full which Organic XX% growth was systems in $X.X Organic the revenue XXXX Organic was fourth approximately to revenue was XXXX. storage approximately revenue. driven XX% services services and of XX%. full of Thaw COVID-XX COVID-XX-related in million, driven quarter. December by storage related XX, period XX% $XXX.X platform services compared quarter of revenue media year systems up million, revenue

XX% to compared gross Our of the for for quarter of margin XXXX XX% adjusted fourth fourth the quarter was XXXX.

For to in sales XX% the Stirling change in QX. a our adjusted compared above XXXX, to to cost we that higher-than-expected In warranty was charges estimate margin expected was due of had This XX% warranty expense. the XXXX. product of related due line, in $X.X full million in gross of million primarily year a QX, resulted in QX utilization to QX $X.X expense warranty unusual a

we million In variances operational related at in price purchase had related in issues to variances $X.X and and Stirling. addition, labor charges to $XXX,XXX scrap abnormal

overhead, to a these vendor decrease we efforts. have $XX.X channel Adjusted we warranty QX impacts, product $XXX,XXX. gross XXXX. XX%. lines addition, freezers due totaled increase XXXX and $XXX,XXX for adjusted impact would our expense see XXXX to benefits in realizing Without other ULT leveraging approximately operating believe million of or experienced QX margin operational been We abnormal the compared average a impact and in of expenses throughout will approximately In selling of on mix prices, with million of margin in for $X.X in an scrap QX margin approximately positive a our charges for and of

For operating year million expenses adjusted with totaled in XXXX, compared the full $XX.X XXXX. million $XX.X

and budgeted difficult to X% activity, the plan Stirling came costs which operating Given to of a our operating operating year-over-year the primarily like within Sexton the acquisitions. a our note it M&A I'd XXXX on look absorption at on expenses to of increase same-store in driven acquisitions. by basis, expenses SciSafe, Stirling excludes The makes Sexton which basis, operating was and our expenses related

overall facilities accounting associated increased to status the well year, as bio the large addition, operating our compensation filer growth with repository In and stock-based X expense headcount opening expenses as due increased to accelerated objectives. costs necessary support of throughout

operating of the adjusted $XXX,XXX loss was loss XXXX Our in XXXX. compared $XX.X million for an fourth of QX with quarter operating

EBITDA operating XXXX. unusual negative adjusted which compared quarter Our out totaled $X.X earlier impacts not in the costs and XXXX. the operating margin for fourth year the XXXX million $XXX,XXX adjusted $X.X was Adjusted positive for in to loss the of $X.X with fourth XXXX the mentioned income of back $XX.X does million million full compared of million, quarter of

For EBITDA million $X.X with the full year million XXXX. adjusted negative in compared was period same the positive XXXX, $X.X in

$X.X XX, at cash related million was Our XXXX, EBITDA million December million, paying million to acquired our primarily consideration Taking use to into million. capital XX, to including $XX.X XXXX. XXXX was facilities at December the $X.X balance cash $X.X working $XX.X negative $XX.X off Stirling in of $X.X in of out compared of and adjusted million equipment, of debt million build purchase an to acquisition; increase biorepository

million, million total in and for revenue. $XXX million XX%. the in total reflecting revenue. Total platform Storage to our XX% XX% million, revenue between review revenue for revenue $XX.X and million growth services and of press processing expected and of for to $XX.X is XX% Now, $XX.X for growth storage accounting total and is release. of between million XX% be expected approximately XX% of year-over-year $XX $XXX.X XXXX XX% accounting and be be I'll revenue million organic the Cell issued approximately expected expected is to of between to revenue. of Thaw to Freezers range to $XX be to $XX million, approximately revenue is revenue guidance XXXX accounting system today

full expect don't year revenue guidance we positive the give line, While EBITDA. adjusted below XXXX we

fully today, our count, new million and we as a basis. issued XX.X terms XX.X have shares million of share on outstanding of and diluted in shares Finally,

Now the Rod. to I'll over turn call

Rod de Greef

to about over the Since much weeks. of XX understanding last the Thanks, related Troy. operational call the in X.X I time in line. product of we've for current was Stirling gained our last dynamics mid-November, And role better days, my the a

unit critical the XXX% we supply it's weaknesses certain and exceeded and increase identified XXXX. As is XXXX between and most the that down design, production, root product issues on unexpected the items, exposed chain processes, of in in operational and cause drilled clear manufacturing the rapid organization. This which growth

the estimate that as to doubling quality XX-day factory over development the manufacturing we on warranty in believe design engineering several been significant to mentioned QX the field the The reflects over produced X changes and the of supply took we lower our call, metrics last a first mitigated weakness the the the failure have scope of yield quality program. production chain impacting and exposed the related number workflow and increased historical largely through a floor, XX I improvements, not quality evidenced more issues As recent of in implementation also accrual months. more last the scale issues. warranty in costs And the a of change in and have incremental rates units last believe months by will on of same past we manufacturing robust ways. The

our of about scale last a with vendor of many not forward. fast second, the needed. enough and original completed our quality components that critical largely First, We've going number the vendors on sole-sourced simply key those to approach issue And call, level source could we'll vendor dual of support we transition were spoke we the sole-sourced.

items. a the number components secondary identified those sources securing in for sole-sourced of and and have are of qualifying process critical We other

lines organization as respect on by focused the are supply product the the some all we're approach to at other While global and issues also the chain across is of general well. supply impacted pursued constraints Stirling, management was and necessarily ensure not operations With being the operations chain We've platforms dual-source product senior also that case. the in another at that made right team. people key facility at added have which chain Athens right to the team supply the positions, the are Stirling, changes member we several reorganized have being

since with larger has consolidated those implementing have well VP who leveraging tasked management cost strategy Stirling the with has relationships target including Manufacturing, purchasing as the company-wide, volumes and dual vendor source the our savings. of been critical We to company all as at who under of been XXXX,

this on key is issues, offering. supporting last do X that being lines. on product have we service to our the objective opportunity the establish speak revenue-generating calls. detail further while on mentioned call, service tested is offering pilot customer customer I a to service operations As team And a We'll focused for year on primarily in future

implementation ERP continues largely plan. Finally, to to according progress

platforms is this We in by expect the month, to the accounting go nonfreezer plan. on of the live modules which of generally with alignment the initial NetSuite end on

later. full better than we year-end We achievable platform implementation target. point, a the early year still the next this those rather freezer sooner deployment or support overall have reprioritized At as schedule by operations of manufacturing QX to and company-wide an see

look increasing we to in move mid-XXs, the by been to expect a at have that of next and close while gross in to issues, year. the That expect product low forward with year. I that I'll gross been We and low end saying year, transitory throughout progress place volume -- it. believe also the the the in a have issues critical half we the identified year, plan the gross of move margin new that these Stirling the introduction, should into onetime normalized mid-XXs Stirling to impact last disappointing, of this and year execute the particularly improvement to back margin and issues we margin the Finally, said, that absent sharing line against we've and by product believe we've I as have

Mike. the over to turn back I'll call Now

Mike Rice

Thanks, takeaways Rod. and year from full X key to the I'd QX summarize like XXXX.

portfolio services potential great base phenomenal can realize provide and risk. continues our that the value companies First, reducing more bioproduction and built see can to grow in CGT synergies. demand in to customer cross-selling solutions We biopharma capture revenue a and it's as our tools clear for

stellar very products have high-trust, services. to with We of relationships customer sticky determined are and our experiences provide and all

Stirling to position at will usage members and platform I'm team confident to our our that truly are our file team leadership freezer continue Stirling disappointing, clearly platform ULT rank while class-defining. freezer issues Second, the and And resolve differentiated. ULT is as

other the of platforms business are well. All performing the of

overall, Finally, to strong, earnings so looking results and QX our I'm on next our sharing far demand call. in that say we're forward pleased product to is

the Your [Operator from first the your call from Now I'll operator Cowen questions. Company. turn Masucci over the and take to comes of to Instructions] question Max back Grace? line

Max Masucci

would start, us versus great way expectations -- from second to frame any to on I it margins, if a half perspective. half seeing first think the maybe QX be you're it's there's for or based Just what even so far for to in whether

call. would those changed think going accrual incremental if what has estimate how I at great be to visibility it look write-offs surcharges -- time the the into to QX hear could like your of and visibility compared forward your warranty

Troy Wichterman

the Thanks Yes. question, for Max.

not we or So do guidance give by margin guidance quarter.

initiatives gross financial to chain will year. the what supply obtain and product leveraging year improve should as tell goal we product our can through throughout continue volumes, of margins margin still for new you X-year We we completed However, assuming XXXX, metric combination expect, full of XX% the believe I are overall introductions. our gross improvement the of improvements,

XXXX to improvement the think what I year more So through QX. of a improvement you're see in throughout an onetime versus going is

Rod de Greef

sort think one-off half-way today, out and with or So don't here. of everything that incremental time, of point anticipate accruals the sort additional that, know add And to this we warranty, it's warranty I we're at through to in quarter. right? Max, respect is To any Rod we

perspective we our has look when nothing numbers. at QX changed the took So a from

Max Masucci

current at of does how Or capacity there that business? you that And manufacturing this a for sort could Stirling segment to demand solid the building during And for point? great out is would customers hear, that up with of how there's -- backlog match It a new the in freezer a it. QX. -- in well, how Got Stirling that year? Okay. added XXX play your might be

Mike Rice

We to backlog Yes. you building. report quantify or just could is But speak capacity. maybe a Max, Mike it. There on Rob, here. don't it

Rod de Greef

Yes.

I there. capacity is think well the

Max, and was think production impacting the over gotten with I than issues couple X of supplier for sure, QX. levels. really quarters to better, have that QX the better had, last challenges we've flow That do factory really has

model been not Stirling times And for the far is into better that sure needs to But have well. and where that than are as X be. would on say eating QX, make so it's in it lead backlog, our side. weeks objective I the But no our we particular it's to more completely we're any

Operator

up, Next Knight KeyBanc. Paul from have we

Paul Knight

you that to significant operating public Stirling, the income, Could specifically look and on impact in say factor biostorage you contributors at fair income you it the costs Stirling impact? to -- if sites. the is mentioned Would EBITDA be SciSafe, operating

Troy Wichterman

say Paul, it's would fair Troy. Yes. I a that's statement.

Paul Knight

added biostorage you X Where -- added? where being then And sites. are Okay. those

Troy Wichterman

and They're added New Massachusetts Netherlands, Jersey. in the

Paul Knight

then in force that lastly, customer are the increase? it it what count your up looks like lot; What Stirling? XXXX. behind Is direct you've it added is XXX XXX went the via a large And versus that? behind sales factors Or

Mike Rice

particularly on it to where sure. comprised which fluidly the hit platforms, you freezer relationships. the with Yes, has team, great. here. and sales other Stirling, over from Mike the we opportunities the came folks They identify Having integrated accounts already folks speak large new of that across the enough head, now is can been Paul, mostly for have

of really combination a efforts, marketing. it's their So our

in the of brand, BioLife now awareness really companies the particularly part that BioLife. these uplift Just are new of

social So their as our and can have the marketing every imagine, points. through as what in you arsenal possible far in we're media that talking and and way that exploiting direct maximizing sellers as

all the So of above.

Operator

we Johnson from Stephens. up, Next have Jacob

Jacob Johnson

starting a you Max's on kind Troy, gross gross questions up margins certainly onetime the about items. margins. throughout point, XXXX. following I ex of the XX% kind appreciate of about maybe just improving But just talked Maybe as

from off that bridge Just would any related XXXX. can as using about XX% of continue as of we are helpful a assume that of be kind kind point, to charges use we kind XX%? these think maybe should then starting we roll if and then Stirling improve So a into maybe XQ that that there you as and

Rod de Greef

Rod it's Jacob, Yes. here.

we that which going at half first go think I the through immaterial and of second the quarter, least why year referenced of we continue first the I as PPBs the some to half year. to are of is second have versus not kind the

do So that be going know into first second drag that's giving quarter specific is I quarter. Stirling a think to the a quarter I not then but for you the and number, next -- here

have I bit. think will in benefit point at that of of -- At we what chain a are to time so that can number not that a sources by suggest speak, supply they ease one a held point who much in can to they time, that sources like hostage, do. critical the of the having also, components number we'll have second company so want pretty feels do

So be play second of by the I all things year. half in will think those the

Troy Wichterman

gross QX a to there, and we which add continue that and too, QX, into impact percentage going Jacob. that's And to has their is Mike one too, value, par thing that few on mentioned, have margin. distributor increasing a points

Jacob Johnson

it'll you It that you think XQ more building I give Mike, dynamic? around and And questions. Okay. out side, XQ, off you and mentioned that. customers talk media then, outlook like strong sounds customers, just here XXXX. guess X between the then strength really on then commercial strong just maybe clinical a really One, the can into taper maybe about a I I mean, inventory. And in us then distributor large distributors? some Can play after color

Mike Rice

Yes. Glad to, Jacob.

with the other I distributor our one, combination found this more in homes for that the than is products. cited that, of media So X X,XXX X

and They've the cryobag the portfolio. add So I they're wired dedicated also We're communication the distributor got just thaw marketing is completely that ThawSTAR the mentioned resources with in the or format. that BioLife for in. to them. distributing constant vial CV soon It's

a So partner. they're fantastic just

enjoy Now a do they pretty discount. hefty

of so it's that out their ever Troy's margin is have to a point, revenue we But nothing does there. impact. try And engineer would because to significant, ourselves

customers some and scientific already finding So applications provide many for can wheel clinical folks. where and just at Matthew that products, which users productive. become other X- the point. communication support some of that And of to They're commercial clin-reg the some Dr. we are better we based several will end us on so homes transition of know through

So while is the relationship. the that's just think doing And they're the use-only not really still a as distributor, that market. on job. productive, But I mentioned, good I X other research more fantastic a focused

commercial Now comment applications. with respect about to your

I up the we're which say from in inaugural be XXXX there, or count are filings ARM made. want JPMorgan that for the address in the so approval XXXX that XX I REG listed from data As applications filings, perhaps of and will to XX

inquiries do really able it's proprietary. us the to seeing masterful use last approved U.S. on here it strong pride a that, other as job to you adopt and the know. fact, what also a AB Dr. who's to mildly. proprietary media clin-reg media really are these been Sexton, support media he's now I and Werner formula being the do And quagmire the done it done at inbound been clinical the mean into The Nobody says, they're serious some navigate, the been where Werner, in strong. use in applications particularly applications handling really many, masterfully, scientific Dr. helping side customers So continue The which has many from to busy, customer inquiries. year, us and/or to inquiries from incorporated has all knows in-country "Give those quite and AB helping and AB initial the formula." And I'll customers bodies our to say we pace. products. and reg U.S. outside the Matthew a in has Sean support for with don't media FDA, that has customers is, -- kudos put their than

tide So expect continue just phenomenal. media us, and boat over next really lifting the several we that is years. That for to really would the

Jacob Johnson

last quick around disclosure storage the questions questions. X inevitably, appreciate think But business. just I then duration COVID I of of kind And get it. Got the the it. we'll around

around the give ask going And I'll durability the maybe another XX-K I should think I'd quick I question being we there. on then of on those to just you kind how the forum figured delayed. follow-up. comment So what's you a of revenues. about got

Mike Rice

Troy. Yes, go ahead,

start can You with COVID.

Troy Wichterman

services, which because I'll those facility what our pretty is part a COVID COVID in start is wide question there noticed Jacob. on and QX. duration there, storage The And and depending what the tails of U.S. range. customer guidance duration includes that the off is with business, the in the for serving. and that its to storage But on reason contract a as you SciSafe we're

another that for to customer if tailwind BioLife. contract, there So revenue of renews their be that's right, going

a fact accelerated driven that now the you acquisitions. late wider realize So that that really regards time is BioLife not this range our and It's primarily time that's the just important. and filing by that And completed storage report filer, do auditors is you on pride kind is yet. thank filing, have in of And services in on large bringing an we see this because audit filer, then for the days. XX accelerated business. And why the this simple to a by up ourselves the storage XXXX line compressed

So X of reasons. the really that's kind

Operator

Lake of You Flaten next Street Thomas question comes from from Capital. the line

Thomas Flaten

more the Interesting having. are to impact that impact see or the positive distributors positive the

wondering force put there. there? become revenue integrating a distributors if lines horizon? cetera, the business et will should them? product guys should just about think And build I'm medium-term of maybe lesser over do lines, As you terms you how around will product think that out you some into impact we about in guys guys the growth -- have color the they new How could

Mike Rice

of on Yes. Well, Good the largest most very will format is Mike evidence the this Thomas, customers I early is, mentioned likely add ThawSTAR bioformat, helpful. I one That the media cryobag as will year. carrying think here. our call, be question.

largest other our to freezer be distributors liquid the going is as of nitrogen ULT well. freezers One adding

So we've there it expand got overlap can and we do in strengths way particular sense, those where the and smart to it where makes leverage full a of groups. leverage relationships reduce to those

for sure. on to that, more So come

Thomas Flaten

just And Great. then a question.

are given organic should COVID-related What expected numbers? walk the us growth, to of Can most just have You align would I you guys Can also overall through see to while? think and a walk maybe organic, you for provided discounts those those about little through board us your just we how how that on overall been a have bit acquisitions growth from related? those revenue. are more.

Troy Wichterman

Yes, sure.

only we it, same-store would a comparable. be right, do obviously, So organic

it full to period. have So own that we for

in So QX of we XXXX. SciSafe acquired

over a we're did XXXX, And factor QX not comparable full not for growth in the that they're comparable acquired but year the disclosing. organic XXXX then So a for Stirling and acquisitions full Sexton into year.

Thomas Flaten

Okay.

So there. only delta that's the

Okay.

to Just sure. make want

Troy Wichterman

that That's yes, -- the one only yes, exactly.

Operator

we Zhi Securities. from Next up, Yuan Riley have

Yuan Zhi

have I So questions. X

do the processing, see where across therapy storage first The you example, in opportunities have guys you logistics. XXXX? chain, cell guys market supply is one freezers, For the cell and

Just want hear beyond to your your even product and portfolios. thoughts

Mike Rice

happy to us everyone opportunities we of portions tremendous you distribution, preservation here. where question. whether and Yuan, processing. the tell throughout for Well, Mike the it's workflow storage, that I'm Great participate, it's and lift see cell media, we whether

you workflow want or intend segments we fully to sockets, products those them and if particular that. in supplier to call services So dominant be a of

storage is really, really the well. say going So knocking processing, is Clearly, at to boom. out to park it going of doing team our are Sexton Cell boom. media I'd

So across the board.

Yuan Zhi

because get it. you on online? are Got comment to And on question it Like, is evo can is edge X comment regions system? your testing guys customers which And can compatibility? on you those your evo competitive of another pricing, what's are

Mike Rice

and customers, evo give patented We by full reducing not help, a little you're question. can features, applied a Good differentiated risk. for in also for the but into is all Yes. translate directly So which platform approved number patent benefits about are okay? a nutshell, seeking, answer which the some of

container competing differentiator would much temperature upside doer hold to or for its systems, interior longer side particularly a down or dynamic which tipped the define environments, maintain #X some ability thermal a to the evo I'm than be in world in for that payload time the now on the for as So even being cases. going

static intentional as nature. Now really of a other something companies there which I'm being describe because may more dynamic is

death Yuan variation over, temperature get elicit are help all. doers for And and cycling because, temperature cavity is delivering get that of off at there. other doesn't can cell customer a knell or this interest payload on And as therapeutic not gene the to know, how that vent. and hence, don't like up. dose, reduce therapies. for again, escapes, to do internal we So sustained positive And risk or it. get death the or and And the fancy evo anymore, doesn't temperature. out word maintain know, the All gases starts warm knell patient initial folks, And viable LNX , from the desired container are the happens, customers not that's our use gas when that in a and and do effect, you you just that as when destroyed temperature patient Well, excursions important. They to If predicated they're response. respond they a nonviable do liquid they have that? the cells the and nitrogen paid tipped protect excursions, to reimbursement

not with So that's level engage -- and working end important. customers out directly the also evo support the their say I'd really business and rather gene courier supply is but scientific cell our really well. with companies and doers to amazing tech of a therapy strategy that to partners transact and just to our go-to-market or

customers of to field the they in have remarks, for has mentioned may assessment whatever best evo own lanes most really criteria optionality in with the the service or courier coverage customer prepared their the my who get partners I or depending geographic on or apply. of through, now As contract to partner platform different may they choose part, best whatever

contracting make reduce a more to selection a by safely one can gene B. try sure cell to So and to and we they as by than so as companies therapy qualifying more from container more point a that secondary stuff point perhaps really then but A believe with courier primary, moved and emerge provider risk effectively leading gets we're and going their

has would your The at question. that's go into Too point, but this for cloud certainly detailed it. that meaningful that are So features really some customers. to differentiated evo.is to applications be the response

Yuan Zhi

your And region hear Can maybe system Just on continent evo tested, which to being here. or you comments Asia America Europe a quick like or there. follow-up comment want Pacific? or has

Mike Rice

using of I'll or in continents little that kind in expect to get more use in would company different, nearly of now all it those evo T-cell And and that so use little with as Yuan. more this globe, and specificity we the shipments thing. CAR countries Western new whole their Well, those XXX destinations, developed over of of are has currently the that increase bit world. the platform I the and say evo Yes. centers on and up that current time to the over that approved all deployed unique more And in Europe is trained X,XXX container, is a a U.S., evo the clinical can what's say looks

second with approved if company approved. therapy imagine. Now that I as T-cell respect therapies to you has CAR already U.S., the be approvals, are Those to not, soon and can X European mentioned

across really So we continuing and that this just great clearly the beyond. something adoption see and year globe

Operator

Maxim. of line the from from comes McCarthy Jason question next Your

Mike Okunewitch

line for on Jason is Mike the This Okunewitch McCarthy.

my file studies. past to some it over are be like had clinical any new looks references number had and like something entering that asking in significant So the XXXX. data entering gene I reason that on And of has XX to see total of are therapy total wanted the for master new studies applications, percentage is if the there which And number cell you you year. clinical

any could on color give that? So you additional

Mike Rice

And it I I their that you can't memory, Yes, look do the XXXX, data how thing Jan for this from you if for JPMorgan get it. X, of address at in are and state file same deck master it will the no ARM U.S. and the of outside but I use it's see from that the can. our doubt the files applications, union cite can total the year, because And goes. certainly our just component mechanism, we one say don't amount, have you increase up But which, as some master numbers about a okay? know, fair U.S. look,

Mike Okunewitch

guess, wanted there more a that unit after significant one of I of Stirling. more, how the expense? then get one-time revenues? placed. how recurring of customers any and is I to capital the freezers? one a And an on would looks customer is often users And Are then those relationship Or idea with replace just

Mike Rice

of Yes. through I revenue. most profitable customer is the service the good kind questions, service other Rod the once is for center his that on establish Mike. of done, part, freezer initiative than say team bought, it's would Really to a working revenue

service And I be when an was little really just will my service started manager. aside, rep a a that So career, and field of I a cool. bit

team in goals the flesh margin a his So that. this helping I've practices right build and and strong all the got and right Rod out interest business and

assessors basically about and really So to really years, things like There's bullish that, for just until that. like But done sure. revenue X that figure life we're there to racks a it's yes. about X the X more. meaningful aren't useful one of But some, something or follow-on need kind or of but they

Operator

Oppenheimer. Your next Ott the Mike from comes line from of question

Mike Ott

the cited, evening. Stirling at know volumes, Rod, a in scale issues beyond the of issues broadly guess, you kind anything guess, additional staffing around of this Suraj you time issues. their But if know, color. I manufacturing-related? lot for on I'm you curious I was share any gave specifics And you can just acquisition? did I up or, of those design of the

Rod de Greef

Yes.

and I what I think kind close our that knew of the is vest advice. on know, something hold that, didn't to we company we're council based think, of to going issue that

As it I categories. boiled can think down specifics, X more well, it really relates to really -- be X into

from X,XXX couple first freezers had around engine that The manufacturing revamped limitations, pretty of process in one. from thousand be a to to particularly freezers. going nearly That's the is -- a design actual way big some

of scale, And not of significant that, the handful increase that biggest of needed. of impact -- year, the with the XXX-plus created in and the last not last inability vendors to think really probably we one particularly that percent respect quality quality the problems. a with I a simply amount vendors to was overall half had the critical

I completely think not largely all but it. that through with we're that, done we're

important, manufacturer so piece the becomes that of our consolidating again, geographical real-time other why can leverage terms can freezers. that we done those or the be That's our something obtained our that boards source not the location second for we've of source thaw some just on is contract of Now to we company, the by just the those components a just are a face but where of in makes sense. components, lot issues of starting just example for device use on Stirling electronic that around single might be of just activities which vendors, used the parts to ability availability example,

Operator

I'm showing And for to some conference of the Solutions, CEO no to this BioLife our further at Mike like remarks, sir? Rice, closing time. Chairman questions back turn and now would I

Mike Rice

be Thank your you, inflection quality everyone, of reaching another BioLife. year capture We realize Thank margin remain confident and initiatives the for good and demand interest thanks, our improvement in XXXX will financial we BioLife, goals. benefits in again, currently stated support midterm Grace, you of as evening. and the for your and underway.

Operator

call. conference all you Thank today's concludes this gentlemen, and Ladies you. joining. Thank for

You may now all disconnect.

BioLife Solutions (BLFS) 1 Mar 222021 Q4 Earnings call transcript