BioLife Solutions (BLFS) 29 Feb 242023 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the BioLife Solutions Q4 2023 Shareholder and Analyst Conference Call. [Operator Instructions] Please also note today's event is being recorded. I would now like to turn the call over to Troy Wichterman, Chief Financial Officer of BioLife Solutions. Please go ahead.

operator. you, Thank and XXXX everyone, for the joining Good quarter thank earnings Solutions fourth conference BioLife afternoon you call. statements. issued will revenue On at during this for today, our XXXX performance of and fourth available operational and highlights, business make release highlights call, we financial this guidance.Earlier for results call, we is the XXXX reminder, will quarter revenue biolifesolutions.com.As cover which a forward-looking a announcing press we quarter the financial XXXX and guidance, statements risks filings. be These to found in can subject uncertainties that are and our SEC and These undertake as statements speak of only obligation the them. date update given we to no speak to also results. We'll or non-GAAP adjusted the or and the of we I'd issued of to non-GAAP are turn Rod metrics afternoon.Now, BioLife. press over Greef, de adjusted call Reconciliations CEO to Chairman release in included this GAAP to financial like

I'm XX% this customers category growing to a commercially-approved with up revenue quarter what 'XX, estimated XX% of Cell a XX to validation, lines.In an our we Fill CT Cell clinical our normalize bioproduction an critical to we therapy ever in and revenue, I'm grow revenue destocking, top keeping our XXXX.As upon to related compared XX% for well offering the refocusing business BioLife our said, environment full cell revenue established believe for than nascent rejoining CellSeal, will for Good partially certainly has at positions recent itself levels, our diversified encouraged become excellent which for industry recurring which the strategic exit related Troy. who in It picks our X X% slightly is revenue decrease that platforms for small media we our with and account convinced which continue there $XXX.X decreased a dominant the and challenges, total freezer navigate initiatives our in the to of year need the we XXXX media gene challenging to not changes other China.Our momentum.With been that early sciences XXXX as compared decrease the and for BioLife's 'XX, revenue in on to one tools, and have afternoon Ex-COVID processing $XX.X us the exposure back $XX.X quarter mention sustained let's in as joining our of revenue to XX% for weaknesses and million BioLife call. of inventory benefit life industry.This as X% mind our be momentum 'XX.Customers year X% biopreservation will the with challenging signs higher for growing a in by BioLife provider was which 'XX.Looking offset closely 'XX. Processing matures, to stabilization the biopreservation undeniably media of media decreased our we 'XX year we inventory alone COVID-related in share 'XX, early, a hPL the and industry, revenue us to services, since headwinds and expect you increase due mission take that macro direct biopreservation organizational across and more and recognized declined on shovels work, position manage CGT industry, as 'XX and company premium helped that patient XXXX million the product to media that, XX% is our third and streams. fourth other revenue positive a year of busy has and in not of through these XX% the to that from demonstrated growing to in we to were as customers was conference our platform fourth as with look X% support and Thanks, large has subside, XX impact an already addition by fast terms for consistent platform XX% our full to for execution of of CGT CAGR environments our to R&D constrained Processing full of could distributors XXXX and is cell the may funding was to Total our XX% our facing saw felt were to the divest was X% some work the of dosing.Our and for Services and accounted XX%. in total impacted more total results sequentially the revenue to expanding is recovery year-over-year a In us year the in therapies over decreased as full no CEO, of media accounted for revenue have time, and QX and to Over quarter.It XX% customers tools in across X% their throughout margin encouraging companies top team's and closer year a compared thank media XX% evidence revenue, by Biostorage memory, to the media industry progresses.With by refocus, space by ability revenue by as leading but accounted months at lines the Automated and full look the year of 'XX results. XX% industry standard market begun platform industry other and a include 'XX, similarly year in million. product all compared

million or platform currently of which and declined the generated should process Richardson's revenue in annual million COVID-related as replacing However, and a environment consolidating in this Garrie $X.XX disadvantage from we XXXX, of our excluding process. grew capital Freezer $XX.X and XX% be expect revenue, X completed did Thaw the due early divestiture XX%, COVID a prior team save platform quarter.Our third area will which excellent equipment Boston facilities, in the operating costs an strong competitive revenue.We difficult 'XX approximately job lost the by the year primarily to are

by a we All X liabilities, and have and next biopreservation total been was outflow Freezer months, know, outflow.This approvals, cash and into first, CellSeal IOVANCE's we to therapy offset also these within up which approved time-consuming of transactions as for additional of we groundbreaking XXXX our which entities a will sale approval CBS an since been and be net media while X of debt, in these us This our the initial difficult utilize realize therapies geographic products. Freezer and burn our industry divesting XX elimination certain with has expect well the unique of profile.On to this of unique proceeds, these XX LOIs initial first support no overall unique cash fact, industry therapy the lines, materially note, you indications goal future Stirling continued As our for to improving our the cash and and This all, future quarter therapies is the last margin X and TIL-based XX the AMTAGVI, U.S. vials.In product the August the more of breakthrough process which XX in of in in we our 'XX CGT a have warranty an there media of the momentum we'll macro performance product 'XX a as brings with be recently long-term signed financial believe or year biopreservation XX days. separate process could expansions, close next include of expanded embedded proprietary approved approvals year.We recent to products.

there is XX% currently those at strong approved than trials estimate evident in addition to active biopreservation than in we these embedded clinical commercially more XXX of U.S. believe and are trials.Looking our that position it's our statistics, that media sponsored improve novel more quality In therapies, to comes so and have biopreservation to the risk we.We industry industry of as reduce portfolio therapies. clear the do grows, the it products is of defining and standard manufacture these when amassed BioLife delivery in a class and market

and rate, XX% an competition, conversations, in XX% we're growing a and which Biostorage cell are half trust base $XX.X operate million guidance We the challenges credible rate X% specifically may from our $XX.X biopreservation.As cautious industry to an a would revenue area to $XX.X limited we expecting our XXXX growth from X% product total with look certain total ahead, Processing of is that I the market to million revenue high-level of with conditions guidance, to environment our some and run last given have out our suggest our earned toward to year.At despite XX% around the point at approach and which which range Freezers annualized second revenue taking to platform, Services and with improving marquee with a generating at XX% this million includes million, we and customer to customer baseline XX%. now half we against of in of of 'XX $XX.X second growth is the our believe growing line $XX Services year, between point, excluding platform Biostorage appropriate seem for year-over-year more range the processing $XXX million Cell optimism to Thaw XXXX in million.While X% modest,

EBITDA, committed detailed of terms margin provide As results. a of absolute to both the financial this a we percent Troy. through point, Troy revenue.At I'll 'XX, and adjusted progress to more in revenue, increases turn delivering gross in to call and as our over review we're

revenue year-over-year, decrease platform, The in our $X.X We primarily a Freezers decrease was Rod. QX a QX the million, representing of Cell QX Thank XX%. XXXX.However, XX% and and was and in or growth million decline XX% of in of reflecting the related our the $XX.X $X.X destocking XX% XX%. COVID-related you, headwinds excluding a Processing our or Cell and for Processing Thaw platform platform, industry QX from in decrease, XXXX, systems from sequential to year-over-year was revenue million decrease reported

positive XXXX, revenue million, in decrease a XXXX of of for in increased was revenue as the the period same platform QX backfilled.Freezers was a over systems COVID-related XX% the and XXXX, for Services QX As see $XX.X Revenue X% $X.X Rod over starting million, for the to Biostorage in our mentioned, Cell are indicators same revenue was fourth to period for of Processing quarter future platform.Turning decrease revenue we platform. revenue excluding Thaw from quarter and growth COVID-related XX% the fourth XXXX. the

and revenue from the to with in The to in impairment basis $XX.X increase gross COVID-related million XXXX the XXXX, QX fourth $X.X QX for $XX.X points $XX.X fourth totaled business of gross quarter and margin consulting during warranty in revenue compared Excluding due our asset in year. with year. freezer was GAAP primarily was personnel adjusted lower ULT largely gross reduction costs due in compared compared XXXX product revenue sequentially, took was freezer decrease the margin product $XX.X million operating mix. processing expenses.Our XX% a in XX%.Adjusted in QX XXXX increased the largely the in of to expenses million scrap with million margin force XXX for non-cash for quarter our from 'XX The were QX we product adjusted the XXXX, in cell from $XX.X expense million revenue decreased QX line.Adjusted approximately due decrease QX expenses XXXX to The XX% was operating the loss QX decrease related mix XXXX. reduction prior Operating million.Adjusted to QX businesses and prior and XXXX. largely decreased reduce versus $X.X for increased expenses from was charge due travel million in

the net for prior year. GAAP asset $X.X with EBITDA loss year. net Stirling the million decrease QX in million of million and in taking loss CBS the related non-cash $XX.X to fourth to The XXXX.Adjusted $XXX,XXX $XX.X million was was with $XX.X compared charge primarily due XXXX compared in quarter the Our impairment was prior during in intangible QX

million higher revenue revenue.Adjusted Our increased decreased closed from September QX largely long-term by was adjusted consideration Cell primarily media sequentially increase at in R&D QX Taking Processing at cash revenue XXXX. $X.X lower EBITDA EBITDA a October securities and was personnel during biopreservation due with that only to related million compared balance QX, and $XX.X sheet, the costs first our for guidance. to is our December adjusted reduced through freezer XX, costs to XX, quarterly $XX EBITDA marketable debt and in million which year.Turning QX our due primarily QX decreased was interest of our positive EBITDA to cash for XXXX adjusted from of $XX.X into repayments XXXX XX, an existing balance platform, with our million, million shareholder.Our on beginning $XX.X XXXX was quarterly $XXX,XXX, with SVB XXXX.Turning XXXX pipe balance $X.X XXXX to the million,

to process revenue of for Our Biostorage $XX.X line million, ThawSTAR revenue XXXX $XXX product and of thawing to devices which freezer on be reflecting guidance a are include automated overall divested.Total does and our growth X% expected cell now product from Services expectations includes an to which is processing is being based X%. lines, not the and any million platform, in the

platform Processing over million, Cell million and growth Services to is expected $XX a to X% or over to is expected or growth million X% $XX.X on contribute platform Biostorage XX% $XX.X XX%. XXXX.Our basis, to like-for-like XX% Our of flat and to to $XX.X XXXX, to million contribute growth

open we terms issued we XXXX, of outstanding expect margin fully as gross revenue, XX, XX.X shares and in EBITDA our the back XX.X diluted a operator million count, call in growth share XXXX.Finally, questions. turn adjusted I'll for the addition, million In to in and on basis.Now shares February had up to of

Knight Today's with first from KeyBanc. comes Paul Instructions] question [Operator

you the the allow ops freezer for LOI discontinued to to the Does move assets statements?

do in final parallel then we discontinued the legal crafting by be hoping is into we Paul, we're have -- for what end to move will then can guys quarter. to Obviously, of from diligence we crafting we signed so actually need working done, Unfortunately, the a document, XX can are these them discontinued days and the ops. through and operations get they XX will the if things full documents, done the considered March, today it are be

move to them A discontinued? signed to gets you LOI

not No, it by does itself. deal A does.

LOI you this on signed juncture LOIs? have or But at waiting

asset in the X entities, is security No, out. in agreement working for Final and agreement. the LOIs, terms diligence of we process one spelled on and case clear purchase are the purchase have each the lawyers the with signed buyers an other

positive EBITDA positive to taken quarter, Rod, And could talk EBITDA? you steps then you had the in to get to

Yes, deal that. with let Troy I'll Paul.

recall, through Yes, QX, did that we Paul, as you reduction a the force in towards QX. so end so of reduction flowed expenses

increase and as we remarked did the addition processing on just we consulting travel. cell In in control as script, expenses and such revenue, costs then had discretionary my we in a

year. me, but XX coming level it's on that kind therapies commercial approved? last last these in side the of just double qualifications can't And relative the of run is XXXX rate yes, XX potential then XX you on to you around get my not revenue more from saying, Or question and almost gene the revenue my double excuse approvals? -- to I correct, probably I put cell CGTs not know to customers would approved revenue off call gave that potential in what why

to not When Yes, they couple studious in so about therapy, unique the saying you there's dose did, things patients if were kind a as near-term it right? definitely many call, new And be conference timeframe. over up, talking expect to have I IOVANCE you're a very a they followed approved of any ramp there. how able

potential we methodology we especially a have thing.The what we So which therapies, as an that unique thing, for XX, to look new at look from approved X therapy, therapies, ramp. as That's -- XX existing indications call the is other by that includes one regions. forward X the geographic XX-month indications well new as there's geographic that and X Paul, or we which refined is number, sorry,

Breyanzi right?So we're could that approval drivers for number a that those That's actually the be necessarily of dosed, new now. looking instance, way that new at the not increase that in So are indications things means in that X could the have XXXX. patients

indication, whether whether up that a the approval, to second moves expansion treatment patient from addition an a aspects, one of make line being therapy geographic expansion, a treatment, say fourth are those actually whether an indication, it's in in of those unique it's whether a dosed. the or line each it's these region of So count ultimately X to variables terms

it's a, not So like-for-like.

The would stocking some front I last in would at they do thing you additional seeing as happening juncture? year, promise get a these in it. of that this Are you events is, assume

like say had look above going customer and purchases I probably is It's way. who nicely Their a things would 'XX difficult 'XX heads-up were projected What to their a good is also 'XX. IOVANCE were 'XX, their when say. nicely at we pretty that above

comes question today from Jacob next Stephens. our Johnson And with

hopefully Rod, be sale, comments. that? will maybe commentary mention you the -- just will Is of first quantify appreciate question. related this how I that confident are to the got then months. freezer it of X there any to you be how kind this confident like But, kind just over in the just you've Paul's concluded you way outlays in these in of heard what X I Maybe to transactions. all on guess, outlined LOIs, next I some appreciate months? the sounds But I And couple prepared

terms I'm so not details at they're Yes, any around yet. confidence, going to respect XX% because done XX%. not With into the I'm to specific to get

business anything pop little of it's and out we extremely a of so side up for a believe that to Stirling we sophisticated don't out buyer would level, things, woodwork the well, but we not, showstopper don't of be One there. buyer, business anything's at of going a CBS come them.A cleaner the knows the pop the for to -- -- them, so so some expect don't on so less expect that's again, it's

I not done XX% of cash our So not a impact is size of not ability -- going what forward. will timeframe.In Jacob, confidence there's the terms that company we will going to I'd XX% cash that operate the say but the we'll of that to have get it it say, it, specific kind the again, about to with I'm get that in outlay,

media it helpful, Rod. the to of on then And good see things, sequentially. it's That's pick up side

kind better the kind single-digit to in quantify way Now of of growth you're maybe much the sustaining much Or to be back kind about year of some of the half guiding media you're just the year, versus to half as kind obviously and half of into there but you'll alternatively curious, kind trends.I'm media like growth the any how we is try about 'XX -- versus run think of kind the exiting and of year-over-year, how kind looks just headwinds what of this at? year last the year rate thinking of second beyond. first

almost I customer the our we at a in distributor the just customers our small ago, expressed they definitely based to that so and them a year. literally look preclinical X,XXX of with some conversation the had the Yes, And as customer, confidence facility our sort even on proxy week maybe half second were here largest they for sell in a base. commercial, they media of

commercial And receiving last compared coming So might is be larger that let's throughout year, the the year, XX% bit there tips tough cautious front maybe projections I guidance in of the say it's then customers, ski from out our year, the don't half at be is rolling quarter on become going good for to and top clinical year half that the our to to a as and every going and be Jacob, our customers a forward. every we're second -- the and year of they're guidance XX%.Admittedly, news be also those there.Our more that, total I we'll positive, that in be would share last half half of a of that first an that year, we'll want first ahead things looking our change but forecast, shown uptake bit us the in And suggesting also XX, back as too because think of months. and flat based our give early was a them hopefully with customers, there's much. a could get our the in X the there the year forecast and change

from our Steven next with And today comes TD Mah question Cowen.

headwinds sequential the potentially Could on And of you destocking QX sense XX% what you can comments you is looking are how your in then share Any cell like? on how up? subsiding? macro you're in I and know shaping in seeing trends terms how comment QX growth comments inventory had processing. also any on of

Yes, let Steven. me address the last one first,

indication is customer, destocking respect that we perspective, indicating have of a pretty things optimism that's toward sort to that and good last second flattening meeting have into has X,XXX, again, the asking They X would just the us out, inventory reason QX orders, and QX, customers of in again, say, expressed had larger I that at feel we I when X think we X the from back that we're that.In a that about or right? QX, an far And orders of year. seeing we what half just so large smaller QX things has we that and year. that they're their are had we that X the that an major back we customer to looked QX, drop half talking such the asked Which with QX, to of last from this had and customers requesting customers. and push a do year, still from even had to some normalized.With push was so that figure had reason QX kind customer that one cliff fact, the half we've us in

we growth seemed of growth on in And QX, in a XX% sequential also had cell expect processing? than light the that. the appreciate any I color lighter gross the cell you the processing. talking It provide in QX? in about bit in margins Can

with increase XXX businesses. Yes, gross margin, but in levels the specifically margin, expectations including at consolidated did line the it those speaking to on points gross sequentially. We're not a our line revenue be at would so basis basis, freezer product about that

me right in the company more think cost then is or sneak more sized? And one let efforts you cutting any contemplated, do

good question. Yes,

speaking, generally right we're think sized. I

there that on think and are on I fine Clearly, take things can particularly that travel, pretty putting discretionary edges the focused still filter QX. I the on kind and who where we rift any so really think we're it's why.And nothing -- throughout that of a spending, goes we of. we in advantage but have did some sort opportunities the of year, there like in

question Flaten with Lake our Markets. Street Capital And comes next from Thomas

be positive last year? of but it Troy, XX% for half of that's than in adjusted number second post you that, margin adjusted is mention the guidance laid EBITDA can that lighter to think that middle reasonable should the you that in year, that? Or to out XX% I a for quantify for the the freezer of know EBITDA you XXXX, us about made

grows media Yes, Thomas, media still half. in what revenue revenue comfortable way put that saying, of the once that's the In we're half, When second think with first in right? second numbers keep to a pro our those about the mind the half in versus forma guidance right? of it, we're you out, levels we good

gross will to requirements adjusted but things once ranges GAAP balance the would year. in by divested, doing constrained are Thomas certain gone, address We're for I the speak freezers margin be EBITDA that. we soon to and position that are we of as those as add in the now, right that, will a

for initiatives to Got kind game? bit a while ongoing describe could it. now, that just some then, And little of had about the revenue up your of up given you been little post a Garrie's your he's in

Sure.

what I with to use think as revenue the relates it the reality they're customers is that limited is drive existing they're going very around because use. opportunity going media revenue to media revenue to to

share they're there, product. a right? on commercially-sponsored what opportunity going this fresh we clinical look not, media go the as understand market cryo-preservation time some I there And place you even understand XX% to there's using which, are using, on at revenue or trials, is to anything are mentioned, they to we when So are a where have do at interval they if the

the media show to introduce get growth here we product that the phase set that the larger some actually tools that's acquisition we there customers perspective is going Sexton a we acquired that where market an move those calendar, cross-selling whether to the that handful needle line, for products think just I'm So a is from hPL, as we do some on of salesmen whether up on think traction an customers, side.So have have based we're meetings go scientifically-oriented through that line. with on meetings there?I and there's media the exploratory those seeing I opportunity it's to those basically to some them, on them that starting layering from of the our position the taking into to opportunity definitely starting year. of there's the revenue the on the and vial going the it's where Sexton et cetera, so CellSeal with And

willing level what on quick of And comment Would you're I one, capacity SciSafe facilities, to be might. then the if final you one currently across at?

you if say blended in I'd Yes, we're, XX% or it, range. we're the of kind probably XX

Hewitt question And next comes with our Craig-Hallum. from Matt

for This is Jack on Matt.

additional received far on about the launch or utilization biopreservation do Do think QX, on product? have inventory How received recently of and approvals media? we anticipation then to they launch, take of ramp in this wait of so the X customers in hand for more the the typically you X should and year. So commence

advance definitely in they buy I the of approval. think

mentioned sure projection they going product say of for a interesting specifically say look safety think that I the dosed, IOVANCE what numbers of don't at this the let's anticipation keep used patient, They've the a more them year an investment dosing an therapy not patient just X but where from example, would stock. movement saw of think But I I like were give any this X the months believe. community above patients purchases as in have. application, 'XX, more 'XX last approval not just they particular was stock they we outside. I that of per generally for but to trials, again we think we from 'XX to dosing see numbers what on saw us of are clinical using We provided that projections. projections reflective volume earlier about And on wise the most hand, and late safety that we between a speaking months anything we we their around up what the is be.It's uses that think when X-month with X

[Operator next question from from Maxim Michael Group. Instructions] Our Okunewitch comes

or I guess towards process the start the and for of lines pile, looking to EBITDA and business the letting returning clarity do ask that things direction of one get the is, could look market you product environment? better additional removal you with positive waiting basis into So the on of of on to settle year freezer full do a in kind cash that the do of towards you bring as and you want a more things I decent

both forward. opportunities at we're looking early I outside probably be desk, by the be take very that's required a in things. going products to products right selective.And looking be something external would services, are do across year. those our in at, to have say about to And we terms this more special investment comes from standpoint, we're at general line and XXXX product just looking to would unless it, think would something there we I look now, a those understand that of versus drive we the we but certain Clearly, that start very

We in product current how the systems do this lot drive work understanding as to smoothly. have the as so of of adoption implement year, that runs to a both line more well business

I'd then just could this little questions, EBITDA the more impacts one on on a And bit business you but the what adjusted more, on a provide the like did to on bit looked of one and past like freezer touch quarter? if you see this color prior of

company. Yes, a unfortunately reporting we're one-segment

look to forward do complete. clarity divestiture as providing information, provide but Rod once further don't the we So mentioned, process we is that

up is And Paul KeyBanc. follow question our from Knight next of a

to to was shout got this this I can't time? a happening growth why the Rod, and rate give and go services like long How XX% the on group ex-COVID. a Hey out for

the from had Paul do our the diminish of large for of that storage were Yes, did, Garrie and was I business larger one to very with had say it one that growth. side. some activity I It's that that his other and they but we customers expansion a get. a would half to Not of to bit accounts think team that on customers of of able our probably that some and one-off

needs. We with and have go-to an excellent relationship comes them their kind of storage to expanded when it are

gentlemen, this to over I'd for team concludes And remarks. back our session. management question-and-answer the ladies to any closing conference and like the turn

Thank you, Rocco.

company week. to and is CGT intact next on year, to revenue So leverage with and years position media the that is in portfolio.Thank advantage that closing, and relatively drive still I'd you the you Conference the this and say forward intend like what but market of in that the well-positioned providing that and is drivers for future updating believe of market, fundamental you other a today to in Cowen in underlying nascent we to look we're to we adoption time stage, take our of this standard calls despite do some at and profitability tools services the meeting your very the of outlook to industry remains the our Boston very come.We biopreservation growth drive believe only cautious not XXXX thesis that to at strongly for

This thank presentation. today's all concludes you conference call. today's attending for We

your disconnect day. wonderful and lines a have now may You