Repligen Reports First Quarter 2018 Financial Results

5/8/18

WALTHAM, Mass., May 08, 2018 (GLOBE NEWSWIRE) -- Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its first quarter ended March 31, 2018. Provided in this press release are financial highlights for the quarter, updates to our financial guidance for the year 2018 and access information for today's webcast and conference call.

Tony J. Hunt, President and Chief Executive Officer said, “We had a strong start to the year led by sales of our direct filtration and chromatography products, which were up by over 90% year-on-year. This includes our Spectrum business, which continues to outperform our expectations. We are also excited about the depth of our R&D pipeline which is generating new products, including our recently launched OPUS 80R pre-packed columns that address late stage clinical and commercial opportunities. Our end markets remain strong and with robust demand for our single-use and flexible bioprocessing technologies, we are raising our revenue guidance for 2018.”

First Quarter 2018 Snapshot

  • Total revenue increased by 46% year-over-year, to a new quarterly record of $44.8 million
  • Spectrum product sales contributed $11.7 million, a pro forma increase of 27% year-over-year
  • Organic growth for direct-to-customer Filtration and Chromatography products exceeded 20%
  • GAAP gross margin was 56.1% and adjusted gross margin was 56.6%, an increase of 110 bps
  • GAAP fully-diluted EPS was $0.08 versus $0.09 for the first quarter of 2017
  • Adjusted (non-GAAP) EPS increased 11% to $0.17 versus $0.15 for the first quarter of 2017

Financial Details for the First Quarter of 2018

REVENUE

  • Total revenue for the first quarter of 2018 increased to $44.8 million compared to $30.6 million for the first quarter of 2017, a year-over-year gain of 46% as reported, or 44% at constant currency.

GROSS PROFIT and GROSS MARGIN

  • Gross profit (GAAP) for the first quarter of 2018 was $25.2 million, a year-over-year increase of $8.6 million and representing 56.1% gross margin. Adjusted gross profit (non-GAAP) for the first quarter of 2018 was $25.4 million, a year-over-year increase of $8.4 million. Adjusted gross margin expanded by 110 basis points year-over-year to 56.6%.

OPERATING INCOME and OPERATING MARGIN

  • Operating income (GAAP) for the first quarter of 2018 was $6.0 million, a year-over-year increase of $0.3 million or 5%. Adjusted operating income (non-GAAP) for the first quarter of 2018 was $9.3 million, a year-over-year increase of $2.3 million or 33%. Adjusted operating margin was 20.7% for the first quarter of 2018 versus 22.9% for the same period in 2017.

NET INCOME

  • Net income (GAAP) for the first quarter of 2018 was $3.4 million, a 12% increase from $3.1 million for first quarter of 2017. Adjusted net income (non-GAAP) for the first quarter of 2018 was $7.5 million, a 43% increase from $5.3 million for the first quarter of 2017.

EARNINGS PER SHARE

  • Earnings per share (GAAP) for the first quarter of 2018 were $0.08 on a fully diluted basis compared to $0.09 for the first quarter of 2017. Adjusted EPS (non-GAAP) for the first quarter of 2018 was $0.17 per fully diluted share, an 11% increase from $0.15 for the 2017 period.

EBITDA

  • EBITDA, a non-GAAP financial measure, for the first quarter of 2018 was $10.0 million, a 39% increase from $7.2 million for the first quarter of 2017. Adjusted EBITDA for the first quarter of 2018 was $10.7 million, a 36% increase from $7.8 million for the first quarter of 2017.

CASH

  • Our cash, cash equivalents and marketable securities at March 31, 2018 were $173.9 million compared to $173.8 million at December 31, 2017.

All reconciliations of GAAP to adjusted (non-GAAP) figures above, as well as EBITDA to adjusted EBITDA, are detailed in the reconciliation tables included later in this press release.

Financial Guidance for 2018
Our financial guidance for the year 2018 is based on expectations for our existing business and does not include the financial impact of potential new acquisitions or future fluctuations in foreign currency exchange rates. This guidance includes the first full year of sales from our acquisition of Spectrum Inc. on August 1, 2017. The guidance below includes revisions to the full year 2018 guidance that we provided on February 22, 2018. Our current expectations for gross margin, operating income and income tax rate guidance are consistent with our previous guidance.

YEAR 2018 GUIDANCE UPDATES:

  • Total revenue is projected to be $182-$188 million, an increase from our previous guidance of $180-$186 million. Our updated revenue guidance reflects growth of 29%-33% or 27.5%-31.5% at constant currency. We are anticipating organic growth in the range of 10%-14% excluding the impact of currency fluctuation, consistent with our previous guidance.
  • Net income is expected to be $14-$16 million on a GAAP basis, an increase from our previous guidance of $14.0-$15.5 million. Adjusted net income is expected to be $30.5-$32.5 million, an increase from our previous guidance of $30.5-$32.0 million.
  • Fully diluted GAAP EPS for the year 2018 is expected to be in the range of $0.32-$0.36, an increase from our previous guidance of $0.31-$0.35. Adjusted fully diluted EPS is expected to be in the range of $0.69-$0.73, an increase from our previous guidance of $0.68-$0.72.

Our non-GAAP guidance for the year 2018 excludes the following items:

  • $10.7 million estimated intangible amortization expense; $0.6 million in cost of product revenue and $10.1 million in G&A.
  • $2.5 million estimated acquisition and integration expenses associated with the Spectrum acquisition.
  • $4.2 million of non-cash interest expense (Other income (expense)) related to our debt financing.

Our non-GAAP guidance for the year 2018 includes:

  • An income tax increase of $1.0 million, representing the tax impact of acquisition costs and intangible amortization.

All reconciliations of GAAP to adjusted (non-GAAP) guidance are detailed in the tables included later in this press release.

About Repligen Corporation
Repligen Corporation (NASDAQ:RGEN) is a global bioprocessing company that develops and commercializes highly innovative products that deliver cost and process efficiencies to biological drug manufacturers worldwide. Our portfolio includes protein products (Protein A affinity ligands, cell culture growth factors), chromatography products (OPUS® pre-packed columns, chromatography resins, ELISA kits) and filtration products (including XCell™ ATF systems, TangenX™ Sius™ flat sheet TFF cassettes, and Spectrum KrosFlo™ hollow fiber TFF cartridges and systems). The Protein A ligands and growth factor products that we produce are essential components of Protein A affinity resins and cell culture media, respectively. Protein A affinity resins are the industry standard for downstream separation and purification of monoclonal antibody-based therapeutics. Our growth factors are used in upstream processes to accelerate cell growth and productivity in a bioreactor. Our innovative line of OPUS® chromatography columns, used in downstream processes for bench-scale through clinical-scale purification needs, are delivered pre-packed to our customers with their choice of resin. Our XCell™ ATF Systems, available in stainless steel and single-use configurations, are used upstream to continuously eliminate waste from a bioreactor, to concentrate cells and increase product yield. Single-use Sius™ TFF cassettes and hardware are used for biologic drug concentration in downstream filtration processes. Spectrum KrosFlo™ TFF cartridges and systems are used in both upstream and downstream filtration processes. Repligen’s corporate headquarters are in Waltham, MA (USA), with additional administrative and manufacturing operations in Shrewsbury, MA, Rancho Dominguez, CA, Lund, Sweden and Ravensburg, Germany.

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