Le Lézard
Classified in: Health, Science and technology, Business
Subjects: ERN, ERP

BioLife Solutions Reports First Quarter 2024 Financial Results


Cell Processing revenue increased 10% sequentially to $16.2 million

GAAP gross margin of 38% and net loss of $10.2 million

Non-GAAP adjusted gross margin expands from 40% to 53% and adjusted EBITDA of $3.6 million or 13% ex-GCI freezers

Conference call begins at 4:30 p.m. Eastern time today

 

BOTHELL, Wash., May 9, 2024 /PRNewswire/ -- BioLife Solutions, Inc. (Nasdaq: BLFS) ("BioLife" or the "Company"), a leading developer and supplier of bioproduction products and services for the cell and gene therapy ("CGT") and the broader biopharma markets, today announced financial results for the three months ended March 31, 2024 and affirmed its revenue guidance for 2024.

"We are off to a solid start to 2024, delivering another quarter of sequential core cell processing revenue platform growth while advancing our strategic realignment to concentrate on our most valuable franchises. In April, we executed a key objective with the divestiture of the Global Cooling, Inc. ("GCI") freezer business, immediately transforming our financial profile. In the first quarter pro forma excluding GCI, adjusted gross margin would have increased from 40% to 53% and adjusted EBITDA would have improved from negative $1.2 million to positive $3.6 million, when compared to results inclusive of GCI" said Roderick de Greef, Chairman and CEO. "While there is still work to do, including finalizing the sale process of our remaining freezer asset, Custom Biogenic Systems ("CBS"), we believe that the Company is already in a much healthier position seeing the operating leverage of our high-margin consumable offering as it becomes the main contributor to total sales."

"In the first quarter, our core cell processing platform posted a 10% sequential increase in revenue, affirming our belief that the industry-wide recovery that began at the end of last year is progressing forward," de Greef continued. "With our biopreservation media supporting over 70% of the relevant industry-sponsored CGT trials in the U.S, and a constructive regulatory environment for CGT, marked by increased product approvals and geographic expansions, there are continued indications our revenue growth momentum will be sustainable."

First Quarter 2024 Business Highlights

First Quarter 2024 Financial Performance

BioLife Solutions is presenting various financial metrics under U.S. generally accepted accounting principles (GAAP) and as adjusted (non-GAAP). In addition, BioLife Solutions is presenting adjusted (non-GAAP) metrics on a consolidated basis and also presenting its non-GAAP financial metrics excluding the financial results of GCI from its consolidated results. Reconciliations of GAAP to non-GAAP metrics appear at the end of this news release.

SUMMARY OF KEY FINANCIAL RESULTS

Key operating results presented on the basis of GAAP, as adjusted (non-GAAP), and as adjusted excluding GCI (non-GAAP), are summarized as follows:

(In thousands)

March 31,

CONSOLIDATED GAAP

2024

Total revenue

$        31,727

Gross Margin

38 %

Adjusted Gross Margin (Non-GAAP)

40 %

Net Loss

$      (10,221)

Adjusted EBITDA (Non-GAAP)

$        (1,190)

Adjusted EBITDA as a % of Revenue (Non-GAAP)

(4) %



EXCLUDING GCI (NON-GAAP)


Total revenue

$        26,779

Gross Margin

51 %

Adjusted Gross Margin

53 %

Net Loss

$        (4,453)

Adjusted EBITDA

$          3,583

Adjusted EBITDA as a % of Revenue

13 %

 

REVENUE

GROSS MARGIN

OPERATING LOSS

NET LOSS

LOSS PER SHARE

ADJUSTED EBITDA

CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

(As a result of showing amounts in millions, rounding difference may exist in the percentages above.)

2024 Revenue Guidance

BioLife Solutions is affirming its 2024 revenue guidance of $95.5 million to $100.0 million. This is based on expectations for BioLife's Cell Processing and Biostorage Services platforms, which now include results from its ThawSTAR product line and do not include revenue from the freezer product line (GCI and CBS).

Management expects full year positive adjusted EBITDA and adjusted EBITDA growth in 2024.

Conference Call & Webcast

Management will discuss the Company's financial results, provide a general business update and answer questions during a conference call and live webcast today at 4:30 p.m. ET (1:30 p.m. PT).

To access the webcast, log onto the Investor Relations page of the BioLife Solutions website at https://www.biolifesolutions.com/earnings. In addition, the conference call will be accessible by dialing toll-free 877-346-6112 or 848-280-6350 for international callers. A webcast replay will be available approximately two hours after the call ends and will be archived on https://www.biolifesolutions.com/ for 90 days.

About BioLife Solutions

BioLife Solutions is a leading supplier of cell processing tools and services for the cell and gene therapy (CGT) and broader biopharma markets. Our expertise facilitates the commercialization of new therapies by supplying solutions that maintain the health and function of biologic materials during the collection, development, storage and distribution. For more information, please visit www.biolifesolutions.com, and follow BioLife on LinkedIn and X.

Cautions Regarding Forward Looking Statements

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," "designed," and similar words are intended to identify forward-looking statements. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by us. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

Non-GAAP Measures of Financial Performance

To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included on a consolidated basis in this release: adjusted gross margin, adjusted operating expenses, adjusted operating income/(loss), adjusted net income/(loss), earnings before interest, taxes, depreciation and amortization (EBITDA), and adjusted EBITDA. In addition to the non-GAAP measures included within this release on a consolidated basis, we also included non-GAAP measures excluding the operations of Global Cooling. A reconciliation of GAAP to adjusted non-GAAP financial measures is included as an attachment to this press release.

We believe these non-GAAP financial measures are useful to investors in assessing our operating performance. We use these financial measures internally to evaluate our operating performance and for planning and forecasting of future periods. We also believe it is in the best interests of investors to provide this non-GAAP information.

While we believe these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Media & Investor Relations

At the Company

Troy Wichterman
Chief Financial Officer
(425) 402-1400
[email protected]

Investors

LHA Investor Relations
Jody Cain
(310) 691-7100
[email protected]

 

BIOLIFE SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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



Three Months Ended
March 31,

(In thousands, except per share and share data)

2024


2023





Product revenue

$               24,803


$               31,593

Service revenue

5,088


4,471

Rental revenue

1,836


1,639

Total product, rental, and service revenue

31,727


37,703

Costs and operating expenses:




Cost of product, rental, and service revenue (exclusive of Intangible asset amortization)

$               19,166


$               23,664

General and administrative

12,934


14,842

Sales and marketing

5,070


6,471

Research and development

3,534


4,152

Intangible asset amortization

914


1,459

Acquisition costs

237


?

Change in fair value of contingent consideration

?


720

Total operating expenses

41,855


51,308

Operating loss

(10,128)


(13,605)





Other income (expense):




Interest expense, net

(207)


(411)

Other income

245


394

Total other income (expense), net

38


(17)





Loss before income tax expense

(10,090)


(13,622)

Income tax expense

(131)


(92)

Net loss

$             (10,221)


$             (13,714)





Net loss attributable to common shareholders:




Basic and Diluted

$             (10,221)


$             (13,714)

Net loss per share attributable to common shareholders:




Basic and Diluted

$                 (0.22)


$                 (0.32)

Weighted average shares used to compute loss per share attributable to common shareholders:




Basic and Diluted

45,432,426


43,027,612

 

BIOLIFE SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited, amounts in thousands)



Three Months Ended

March 31,

(In thousands)

2024


2023

Net loss

$       (10,221)


$       (13,714)

Other comprehensive (loss) income

(221)


145

Comprehensive loss

$       (10,442)


$       (13,569)

 

BIOLIFE SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION

(Unaudited, amounts in thousands)





(Unaudited)


March 31,


December 31,

(In thousands)

2024


2023

Cash, cash equivalents, and marketable securities

$          46,126


$          52,274

Working capital

73,042


78,426

Current assets

111,700


120,604

Current liabilities

38,658


42,178

Total assets

401,602


412,714





Long-term obligations

29,539


32,873

Accumulated deficit(1)

(325,138)


(314,917)

Total shareholders' equity

333,405


337,663


(1) During the three months ended March 31, 2024, we determined that an immaterial error existed in our previously issued consolidated financial statements related to stock compensation expense on unvested shares of market-based awards of certain employees upon their termination. Our Accumulated deficit was impacted by the error by $1.6 million and will be corrected within our Quarterly Report on Form 10-Q filed for the three months ended March 31, 2024.

 

BIOLIFE SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION

(Unaudited, amounts in thousands)



Three Months Ended
March 31,

(In thousands)

2024


2023

Net cash used in operating activities

$         (4,475)


$         (2,712)

Net cash provided by (used in) investing activities

(221)


2,926

Net cash used in financing activities

(952)


(562)

Effects of currency translation

(65)


11

Net decrease in cash, cash equivalents, and restricted cash

$         (5,713)


$            (337)

 

BIOLIFE SOLUTIONS, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP ADJUSTED GROSS MARGIN

(Unaudited, amounts in thousands)



Three Months Ended
March 31,

(In thousands)

2024


2023

Total revenues

$     31,727


$     37,703

Cost of revenues

(19,166)


(23,664)

COGS intangible asset amortization

(582)


(733)

GROSS PROFIT

$     11,979


$     13,306

GROSS MARGIN

38 %


35 %





ADJUSTMENTS TO GROSS PROFIT:




Gain on disposal of assets

(24)


?

Intangible asset amortization

582


733

ADJUSTED GROSS PROFIT

$     12,537


$     14,039

ADJUSTED GROSS MARGIN

40 %


37 %

 

BIOLIFE SOLUTIONS, INC.

RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING EXPENSES

(Unaudited, amounts in thousands)



Three Months Ended
March 31,

(In thousands)

2024


2023

OPERATING EXPENSES

$        41,855


$        51,308





ADJUSTMENTS TO OPERATING EXPENSES:




Cost of product, rental, and service revenues

(19,166)


(23,664)

Acquisition and divestiture costs(1)

(237)


(833)

Intangible asset amortization

(914)


(1,459)

Gain (loss) on disposal of assets

75


(9)

Change in fair value of contingent consideration

?


(720)

ADJUSTED OPERATING EXPENSES

$        21,613


$        24,623



(1) We have corrected our non-GAAP measures for the three months ended March 31, 2023 to conform with our current presentation of Acquisition and divestiture costs. The correction increased previously reported non-GAAP measures with Acquisition and divestiture cost add-backs by $0.8 million.

 

BIOLIFE SOLUTIONS, INC.

RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP ADJUSTED OPERATING LOSS

(Unaudited, amounts in thousands)



Three Months Ended
March 31,

(In thousands)

2024


2023

OPERATING LOSS

$       (10,128)


$       (13,605)





ADJUSTMENTS TO OPERATING LOSS




Inventory reserve costs

?


?

Acquisition and divestiture costs(1)

237


833

Intangible asset amortization

914


1,459

(Gain) loss on disposal of assets

(75)


9

Change in fair value of contingent consideration

?


720

ADJUSTED OPERATING LOSS

$        (9,052)


$       (10,584)



(1) We have corrected our non-GAAP measures for the three months ended March 31, 2023 to conform with our current presentation of Acquisition and divestiture costs. The correction increased previously reported non-GAAP measures with Acquisition and divestiture cost add-backs by $0.8 million.

 

BIOLIFE SOLUTIONS, INC.

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED NET LOSS

(Unaudited, amounts in thousands)



Three Months Ended
March 31,

(In thousands)

2024


2023

NET LOSS

$       (10,221)


$       (13,714)





ADJUSTMENTS TO NET LOSS




Inventory reserve costs

?


?

Acquisition and divestiture costs(1)

237


833

Intangible asset amortization

914


1,459

(Gain) loss on disposal of assets

(75)


9

Change in fair value of contingent consideration

?


720

Income tax expense

131


92

ADJUSTED NET LOSS

$        (9,014)


$       (10,601)



(1)  We have corrected our non-GAAP measures for the three months ended March 31, 2023 to conform with our current presentation of Acquisition and divestiture costs. The correction increased previously reported non-GAAP measures with Acquisition and divestiture cost add-backs by $0.8 million.

 

BIOLIFE SOLUTIONS, INC.

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA

(Unaudited, amounts in thousands)



Three Months Ended
March 31,

(In thousands)

2024


2023

NET LOSS

$       (10,221)


$       (13,714)





ADJUSTMENTS:




Interest expense, net

207


411

Income tax expense

131


92

Depreciation

1,434


1,731

Intangible asset amortization

914


1,459

EBITDA

$        (7,535)


$       (10,021)





OTHER ADJUSTMENTS:




Share-based compensation (non-cash)

6,183


7,363

Acquisition and divestiture costs(1)

237


833

(Gain) loss on disposal of assets

(75)


9

Change in fair value of contingent consideration

?


720

ADJUSTED EBITDA

$        (1,190)


$        (1,096)

(1) We have corrected our non-GAAP measures for the three months ended March 31, 2023 to conform with our current presentation of Acquisition and divestiture costs. The correction increased previously reported non-GAAP measures with Acquisition and divestiture cost add-backs by $0.8 million.

 

BIOLIFE SOLUTIONS, INC.

RECONCILIATION OF GROSS PROFIT TO NON-GAAP ADJUSTED GROSS MARGIN EXCLUDING GLOBAL COOLING)

(Unaudited, amounts in thousands)



March 31,

(In thousands)

2024

Total revenue

$       31,727

Less: Total revenue of Global Cooling

(4,948)

Revenue as adjusted for Global Cooling

$       26,779



Cost of revenue excluding Global Cooling

(12,566)

COGS intangible asset amortization excluding Global Cooling

(582)

GROSS PROFIT AS ADJUSTED FOR GLOBAL COOLING

13,631

GROSS MARGIN AS ADJUSTED FOR GLOBAL COOLING

51 %



ADJUSTMENTS TO GROSS PROFIT EXCLUDING GLOBAL COOLING:


Inventory reserve costs

?

(Gain) loss on disposal of assets

(24)

Intangible asset amortization

582

ADJUSTED GROSS PROFIT EXCLUDING GLOBAL COOLING

$       14,189

ADJUSTED GROSS MARGIN EXCLUDING GLOBAL COOLING

53 %

 

BIOLIFE SOLUTIONS, INC.

RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA EXCLUDING GLOBAL COOLING

(Unaudited, amounts in thousands)



March 31,

(In thousands)

2024

NET LOSS

$      (10,221)

Less: Net loss from Global Cooling, net

(5,768)

NET LOSS AS ADJUSTED FOR GLOBAL COOLING

(4,453)



ADJUSTMENTS EXCLUDING GLOBAL COOLING:


Interest expense

168

Income tax expense (benefit)

121

Depreciation

1,434

Intangible asset amortization

914

EBITDA Excluding Global Cooling

(1,816)



OTHER ADJUSTMENTS EXCLUDING GLOBAL COOLING:


Share-based compensation (non-cash)

5,237

Acquisition and divestiture costs

237

Severance costs

?

(Gain) loss on disposal of assets

(75)

Change in fair value of contingent consideration

?

Inventory reserve costs

?

ADJUSTED EBITDA Excluding Global Cooling

$         3,583

% of Revenue

13 %

 

SOURCE BioLife Solutions, Inc.


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