BioLife Solutions (BLFS) 9 May 242024 Q1 Earnings call transcript

Welcome to the BioLife Solutions First Quarter 2024 Financial Results and Business Update. [Operator Instructions] I would now like to turn the call over to your host, Troy Wichterman, Chief Financial Officer. Troy, you may begin.

Thank you, operator. Good afternoon, everyone, and thank you for joining the BioLife Solutions 2024 First Quarter Earnings Conference Call. will and highlights on reiterate XXXX guidance. we for financial full call, revenue quarter the our this cover and business performance year On previous comments results a of quarter which is announcing Earlier the biolifesolutions.com. XXXX, press at we highlights for issued our today, financial and available operational first release

the our we only reminder, risks can that and call, forward-looking given, SEC These These speak will date in statements filings. a of undertake As to this statements we statements. as uncertainties them. be make update during no are to and found subject obligation

adjusted We adjusted Reconciliations will also in issued speak to are metrics GAAP non-GAAP the or or non-GAAP afternoon. release we results. this to included press of financial

and CEO BioLife. to of I'd to call Now like Chairman turn the Greef, over Rod De

afternoon, joining Thanks, Quarter and BioLife's First for Earnings thank for you XXXX us Call. Troy. Good

market addition Garrie year Troy increased numbers provide begin, in franchise granularity in invited revenue. core to To on In our who strategy speak to and Richardson, continue our our end He our I've revenue will Wichterman, of Revenue and bond Officer, to our processing additional preservation. dynamics. to sequential QX to of outlook our expertise to pleased million $XXX our market-leading million will business another grow revenue also report full CFO, in growth Chief our $XX.X I'm cell quarter confidence and in

that our we macro in encouraging are the environment, substantiate subsector the and belief beginning we in operate bioproduction early to While year, an an particularly it's now helps in. experience easing start

lines. our year not platform revenues BioStorage behind our will products and platform and services product our our us, include from forward, shift our high-margin strategic With processing away largely from freezer freezer revenue does full cell the be any guidance primarily from and going legacy

win with products. set to equipment we like CGT with apply up capital-constrained the working at market operations, we on clear capital-intensive hard critical industry one resources strategic where and fast-evolving out have we which navigating one of is a Our a in renewed with our are thoughtful consumable. this and do to enabling focus, the forefront low-margin which this streamlining was recurring market capital Further, freeing the in as revenue focus areas is leader, return a to

company. a was enhances known is financial immediately the of but a April, considerable profile this As reminder, This and divestiture Stirling. of GCI to effort we divestiture time that our endeavor unit, the many the announced and substantial Freezer as to also and required complete strategic operations

significantly illustrate almost forma by excluding clearly First our an quarter pro instant demonstrating on that financial GCI, results, and positive metrics. impact

been a terms absolute from and forma $X.X grow the sales. based Specifically, results instead from our baseline operating adjusted instead gross leverage to would our we QX, a on total margin would XX%, have continues excluding these high-margin further, set million. anticipate year $X.X negative of GCI as processing pro And platform which further cell of new expansion percentage as throughout realized a adjusted our BioLife million have XX% margin EBITDA been in of positive in

sales as Turning exiting to of fully been last business of to XX% approximately historical swiftly this a assets, represented freezer as on remain committed profitability, QX and the and the we our which efficiently CBS, drag has possible.

share We provide we transaction, further the process. to becomes update in but as so. do are as it will at sensitivities this we are middle around time, the appropriate the given an this And of soon details to unable

a cash implemented through process, we As in $X.X expenses CBS this reduction at operating per year. we totaling million recently work

CBS generate EBITDA. to which Assuming cuts CBS these revenue adjusted remains relatively do, we allow constant, positive immediately

in industry-wide revenue QX QX headwinds more of initial we're I'll macro to year, level. address on a seeing let speak more of The into emerge QX. briefly Garrie detail, to last I'll easing While in that continued what began

For which customers BioLife, market a distributor view and direct improvement continued proxy pressure as our in revenue, meant sequential focused less stage this we segment. research inventory from for larger destocking the earlier

to cell the allowed XX% sequential processing of this increase a earlier, followed post to saw on our last which in us revenue, XX% increase QX from year. mentioned As QX we

a media drivers processing these XX Our also regulatory last to degree carry with approximately posting services newly year. market of we to X trials CGT QX, U.S. we approved utilizing at revenue quarter. Phase overall for XX% and and that specifically of sponsored in Overall, platform end and that commercially improvement, in clinical We expect the revenue share bringing environment of realized fundamental CryoStor. include embedded growth excess The market-leading to some approved of relevant total XX clinical continued forward biopreservation QX year. the the cell In of in the growth, we media revenue trials remainder this believe with have sponsored of our to commercial therapies the share the environment biopreservation throughout BioStorage II regulatory sequential III over X% last our Phase momentum started continue see year trends our the our trials the CGT. the for support therapies, commercially

geographic shovels that picks the new supported there established to standard confirms has clearly and for indications, of The and lines into industry. In CGT The new media the which leading equally evolved replenished and that premium be biopreservation relative addition, an has biopreservation and months. X similar BioLife opportunities next support share additional fast-growing earlier important provider the in and see were BioLife media need to driving tools We as and area XX industry over the X XX approved a of bioproduction approval future, frequently itself critical therapies. treatment market and revenue X above services.

call optimize more ease pole space dominant we and self-processing our convinced BioLife ever as take our As I'm share further exposure has will organization diversified We benefit and steps XX% offering industry, nascent to which insight Garrie, industry who matures, and on headwinds the to turn our now over XXXX. of to continue to business upon as market expected position go-to-market that focus to strategy. is this this already to as necessary sales to continue platform, the some revenue than well on in our of to an I'll CAGR XX% expanding QX the additional -- provide through

team XX pleasure it sales Rod, first it revenue in I with XXXX. late operating acquired development, million founded it's of in business been last into participate earnings sector. when Post sales Thanks, growing in working marketing I and joined Chief stepped and By to that $X.X BioLife to SciSafe years biopharma for background, XXXX. with SciSafe and years acquisition, of of is in broader I experience I've the my of a years a October to biostorage continue X.X have company BioLife I spend XX way in Revenue since business Bio until over the and marketing with Officer a call. XXXX, our role.

of growth color As like detailed in down I'd BioStorage year press prior processing release, platforms in difficult little our on both to delivered and cell comps, product our QX, services each more although our a against platform. continued sequential and provide each were platform

track of majority metrics processing platform, the biopreservation quarterly. we media and vast our cell our are there revenue, for accounts For several

revenue. approved approximately revenue customers of of XX therapies direct and approximately media total customers XX% to XX% Our provided totaled QX, media in top having sales direct

gain in closed revenue to levels. expect BioStorage of would provided these like do tools that sequentially, second note recent All by strategy. from in side cell with metrics EVO new to some existing half to recent of customers we like processing to from focus our increased management lumpier beginning see summarize Both I'd fluid the our things. and are and business and indication occur and team I also that we and which is growth, and to to go-forward early revenue our compared additional historical and turn of of the relationships me EVO see on year. to which continue are new year is our grew onboarding commercial line into sequentially, other results somewhat this some that accounts, our revenue impacted The prior for an sales. our key storage that add we system media drive on clients positively cross-selling

of X the CGT degree depth with Of the of many technical space. note strength world's in existing companies. is high have the a expertise individuals and consists biopharma of leading sales team Our who relationships of experienced our team's

solutions, Our also cross-selling. commercial relationships known based on expertise processing and as the existing our is their team commercial strategy leveraging of simply of the the cell other introduce to technical media strength

customers remains ensure On the their a media for that of and so any so also position we key next-generation is and with that our aware that or participants biopreservation focus leadership relationship media side, CGT our it in to on mature are new more biopreservation our therapies. the early-stage evaluate exploiting remain will robust, the supplier

assume underway, We an to In applying near have definition of technical media which I and inherited foundation am solid and best will to market to several this beyond our in energy share gene which the really prominence I my initiatives excellent look and term, and role. excited team, this the role, will bioproduction. driving therapy expertise passionate closing, in with to a we broaden practices solidify deploy cell and I market the forward

turn over the I'll call Troy. to Now

sales, increase our to in and X%. a a from X% business services decrease was On in related by or million divested year-over-year. million We cash our to XXXX the in and BioStorage BioStorage platform. our freezers our XX% due XX% by on Total representing of million $X.X of was a and Cooling $XX.X $X.X GCI. from by cell down repayment processing Bio $X.X XX% and services. QX decrease XX% revenue $X cell the of in $X partially offset sequential revenue April transaction partially offset a GCI decrease Garrie. of The long-term sheet XX, or successfully GCI debt. Global million you, QX reported remain of increase million, in Thank million decrease in or decrease The we sequentially processing in platform, required revenue primarily decrease a The or freezer platform increase XX% a year-over-year our was $XXX,XXX to balance

GCI implemented We our risks prior at also closing. to

of to financial and profile $X.X remove reduce cash our will GCI, liability. related As burn a a improve warranty million result transaction, this we significantly

XXXX in negative margins on April million GAAP in disclosed As in and $XX our addition X-K approximately in SG&A had operating to expenses. GCI XX, gross R&D filed

facilities. non-GAAP. are metrics without product primarily Adjusted better As results in year. to to XX%. was margin, utilization was GCI biorepository context and in of prior due All for reduction for XXXX. took $XX.X a expenses XXXX of in the to divestiture million prior million the in year. at mix financial The to XXXX at compared for of compared certain of margin decrease results was presented future QX totaled increase QX place headcount gross largely Adjusted excluding $XX.X provide operating our a due our expected favorable the prior in GCI, the were result XXXX. results we gross GCI, for The versus the this compared that year. Adjusted to expenses first QX XX% million GAAP with year QX manner XX% million are $XX.X end with was quarter $XX.X more operating the presenting the this

$X.X operating $XX.X adjusted quarter first the for million of XXXX. in million Our QX compared was XXXX with loss

quarter EBITDA $XX.X net million loss Adjusted was $X.X prior offset the processing from to million in prior to the our remained due year. for negative cell was Adjusted platform. year XXXX with personnel from negative decrease primarily lower lower the GAAP loss million EBITDA flat compared QX personnel $X.X net due Our The partially year. lower by in million first the expenses. revenue costs, in prior to was of in $XX.X compared

Our $X.X an positive adjusted GCI, revenues, XXXX from EBITDA due XX% million for excluding decreased true-up $X.X primarily QX in bonus Adjusted XXXX, of accrual. or million tax excluding indirect GCI EBITDA, sequentially the to quarter. the was

our Turning sheet. to balance

QX consideration million, payments XXXX March XX, negative marketable cash $X.X cash EBITDA securities financing Our to with million our $XX.X December of of of Taking capital XXXX. at and expenditures $X was at into capital of used $XXX,XXX. primarily XXXX, was and working compared related XX, $X.X adjusted balance million million in $XX.X million

QX through beginning Our long-term repayments interest-only of $X.X QX with million debt $XX is quarterly SVB balance was which million, in XXXX. XXXX

Turning revenue guidance. XXXX to

X%. overall service and is our lines. expectations any previous platform revenue our services which cell BioStorage from affirming be devices on line. expected ThawSTAR are platform million, to thawing processing include freezer includes X% based an the of product BioStorage We for automated and does $XX.X reflecting not product growth Total is million revenue $XXX now to The to guidance,

processing cell to expected flat $XX.X contribute to is platform growth Our XXXX. million to or X% $XX over million

is and a $XX.X million like-for-like XX% platform contribute over to of XXXX basis, services XX% to expected growth or million growth $XX.X to to BioStorage X% Our on XX%.

revenue, and gross addition, expect EBITDA adjusted In margin we XXXX. growth throughout

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

back I'll the Now up to call to for turn the open questions. operator

first this question-and-answer KeyBanc. we the Paul time, the Instructions] from And question At from will session. conduct [Operator comes

see see Rod, result higher And financing to well. big could of the technology yet? XQ. there uptick in that But in sequentially a seems fillage you be did you in specifically, as

market if if largest a which going would we to segment, for I of were Paul, the biotech will. look increase we as proxy see from academic at our that, think sequential you in see sort early-stage it that distributor, we

there sequentially. an So we uptick see did

extent flowed operations continue them it they to capital that through, start to So clinically. or allowed that the raised their

I your Are XX% what what's still think long that's had QX the thinking on the at in really margin? And on, margin. think possible? you EBITDA EBITDA mentioned term drives past would view that exiting do business And you a you

revenue and of revenue all the end outstanding. on the between goal, media by the the media, now to the is in to the that's of Longer flow-through dependent particular, financial term, upon year Clearly, the a that growth growth of end engine. of next adjusted because was front X media the year. really overall the Well, certainly hitting Paul, going and about we're it's Yes. that it that's and stream driven of committed in be EBITDA

the So with could of in end front X we I toward the early 'XX, get adjusted of that's think EBITDA to it 'XX, achievable.

the you the the call. Lastly, brew on competitive it's What's of you what see Garrie, or nature enter good do it? to to Garrie Is trying competition that hear others front? home it on still see?

meet to you. Yes, nice Paul,

focus around think that think that protect sure I that really our we term. do is is and and our leveraging strategy So I growing the primarily And media. protecting, biopreservation long position making

remain in we're So committed we that this the I think primary sure to making space. leader

So us where I to keep think we my are today. that's I'm as concerned, exactly objective far as primary

And question from comes from Inc. Jacob our Stephens next

still sale for Is of you cash expect Jacob. any the Do complete proceeds? This to on term? is you actually transaction Hannah CBS? do the this still there in update on near expect And

EBITDA an say what's expenses positive these what per it is trying perspective. divestitures. will immediately divesting time million that cash the CBS $X.X not what of of I'm we're define for lot. to when slightly question. it, But in the did do to to think makes Yes, fairly right middle we the optimistic say, timing, from With adjusted with because respect in what that the it, is Hanna, year, CBS thanks it's overly from circumspect fair been middle say I by be to a going comes of lines important are process We're right albeit expect this I CBS. modest. proceeds And to in is which operating reduce which I I've to recently We at

it cash little bit So not be extent will that burden past. in the a we've to we longer seen takes than originally anticipated, the that us it that

the seeing Great. potential half think And to any to you're way the in players back traditional of we recovery? what for to book bioprocessing have about some orders. order speak as the then there Is in a a pointed pickup

is that more talked have the of X I X-quarter of last our are half telling here. what year projection positive, feedback that the the that quarters. rolling they've been The think, the we've from to is for been and couple what with which increase on providing is look, for us last about sequential we've what us be the customers quarters focused the continues we second

So nothing changed has really in regard. that

question from our Jefferies. from comes And Matt next

Maybe you, one for Troy.

that entirely made in guess, margins said to sense. back XX% 'XX, half dynamics As tied had mix we think the back case? media? bridge just prior Is the XQ forma still Is I think the can us to half from about XX% I XX% you EBITDA XX% help XX% of range back kind on the pro just in guys of the in the the half. that to And the you to

we to XX% XX% Yes. disclosed. to that One There's also CBS. X is excluded previously aspects that

then which, not that extent of a Yes, well, too, And as far question, first drug, XXXX. that what And the the GCI, our we're -- middle CBS of the process. drags Rod media CBS as out, definitely our to that goal your or a would still as QX end but of nearly mentioned, half? margin down is financial be margin one to is number at hit as percentages. divestiture QX. So reason. in as good versus as in And the same reason a it you pointed the That's looking XX% sales at is half second other lower sorry, it

on Great. maybe that time you, a about what or focused took Okay. that Rod, spend the for just the on lot areas forward. into some And higher maybe to a level, with look energy love in to now, just more went rearview Would deal. time and from of going you're then, excited bit of hear some Sterling you'll here, one

bet. you Yes,

finish of the -- a I CBS we in our need internally. divestiture the strategic think process we clearly, are still review of product pretty of to portfolio comprehensive

the working that is -- our we're that. and definition going expand some let I of scope that he here quarter Garrie put sort the So the process. look which will X, next marketing mind initiatives of we're measurement fun which on it of in but mentioned, in or things loose that we in have one with the of to market will leadership, some team that share biopreservation, forward having position going to the through leadership

that, involved forward look in too. I to So being

question Capital Matt next from our from And comes Group. Craig-Hallum

first bit improvement customers Maybe trials increased of quarter? sheets lag there. extrapolate seeing help start was a there do a environment. the funding you is to to your those about on Just partners when curious, lag balance feeling their just how historically, Is up to the it QX. funding and off, think little through us long quarters? or to kicking an when when X better Is X I'm And between Obviously, or it are orders? see it are

would again, It's distribution. through a and segment say with But I -- coming is would level tough question that any very this that be to specificity. market answer of this

it's say would X that X probably I quarters. So to

that's think versus that that's through. I the start year. it us distributor largest is with with see to when second And year telling first of half our we half the of really what flow a respect stronger to consistent

has that Got then the here -- visibility. it. next customers or from better later we about have how X the we, as be the how do you least this look regarding little that in X bit it. quarter, pretty those you you And that ramp first thinking I -- something plan approvals guarded it's to analysts of about And as be therapies you X should how whether talking year, a they're at But year Is ramp? should it those ramp? been the do about approved, Or thinking you're on new that? anticipate getting know out, you products? therefore, how for start

but what we about only like. future the are our actual into right, is Yes. by built results, saying the what I not mean, ramp definition, looks

think us a pipe. do. gives that of need nonbinding, X-quarter how talked and specifically, we of have the the quarter, down coming is visibility what we the anticipation end one they And that sense you're believe at I approval their they they're going the one forecast a of in of to to purchases they last ramped So up 'XX rolling definitely about speaking that and be

And forecast the can particular with as than was last is I so customer, better did it 'XX. I say that quarter, that for

of therapy. we uptake So of their the visibility that best that kind suggests That's have. adoption or

Thomas from Lake Street from comes question next Capital. our And

to XX% on would but pull the think about mentioned just something you be? trigger capacity, the do guys what that when Rod, How XX%, last running call, not you the like facilities trigger were facility, that on about next I SciSafe that. think

a Yes, it's good question.

certainly a to So doubling respect think building consolidation not a level by facility, that capacity into quite Boston I with capacity that it's there, basically there the impact. increasing really having a mezzanine but and putting strong our and

X think consolidated which one reviewing of to Jersey going have is really process to the square we're working We just we're could feet perhaps would building them, to And other XXX,XXX be do that let's The but XX,XXX pick looking XXX,XXX New I'm I larger that sites what need like, through lease facility. numbers, we utilizing of that into some in have, or on would feet. square the available. currently, be that look say

a XX% So allowing capacity but therefore, good thereby we more XX% taking up to that the existing available. or have, us have

it. I maybe a this, with I drag? small your the on Any apologize or revenue know line, I sorry. a product, a thoughts it BioStorage do and missed Got that drag on to of to disproportionate very has TharSTAR And -- unit but less what in make but if services it rate growth

Well, product C have I quality varieties the those. be fact that and we both that cryo bags. the think ultimately One X of find drag inability the that that unit also believe Nevertheless, to October shipping the from to the of of has we're of longer transportation working dedicated hole and dig on are stop of for through. to soon-to-be-introduced is the be the vials had that we the we're product. the that is unique with think idea one LVC to an year, Celsia vials the do deeper. In for of issues some technology version that there made it device what new last based to We and the have line handle we the comes decision term, is didn't is that would extension want units that cycle. it the a bag cassette We and Cell exploring to shipping I

stand-alone razor-razorblade saw a opposed more from bag, that difficulties its and presents standpoint. will becomes challenges a model cryo it which a any as own of technology device to So

no I'd like turn for there [Operator Instructions] back At questions. be remarks. to over closing this to to time, Rod call appears further the

and Thank industry, I'd results the financial of to BioLife in cell that and the an of in and strong you the revenue tools position divestiture some close growing those and the adoption forward is you months. We market-leading services the our Thank of revenue to Thank expect recurring high-margin by today, participating during in we portfolio for with we'll fundamentals coming deliver this your and you. investor plan Ross. processing the updating to to on our the profitability future year time to provide be Stirling underlying upcoming position strength you, the amount with in at into like and you an increasing meeting drive biopreservation future. saying of the future. calls look on CGT other conferences excellent and the of leveraging in

attending. for conference you Thank This concludes call. today's