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Repligen Reports Fourth Quarter and Full Year 2019 Financial Results

Reports quarterly revenue of $69.5 million, representing 34% year-over-year growth, and annual revenue of $270.2 million represents 39% year-over-year growthOverall organic revenue growth was 21% for the fourth quarter and 33% for the year 2019WALTHAM, Mass., Feb. 20, 2020 (GLOBE NEWSWIRE) — Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its fourth quarter and full year 2019. Provided in this press release are financial highlights for the three – and twelve-month periods ended December 31, 2019, followed by our current financial guidance for the year 2020, and access information for today’s webcast and conference call.Tony J. Hunt, President and Chief Executive Officer said, “We are delighted with the way we finished off 2019 with 21% organic growth in the fourth quarter and 33% for the full year. Our Filtration and Chromatography franchises accelerated in 2019 as we expanded our market presence as customers scaled these technologies into late stage processes. We also captured greater share in gene therapy manufacturing where sales more than doubled in 2019 to 15% of total revenue. Strategically, our acquisition of C Technologies established an important new Process Analytics franchise that delivered over $16M in the first 7 months of ownership. We anticipate that 2020 will be another positive year for the company as we continue to bring on additional manufacturing capacity, launch exciting new products and deliver on strong organic growth and earnings to our shareholders.”Fourth Quarter 2019 Highlights
Revenue increased by 34% year-over-year as reported (35% at constant currency), to $69.5 millionOrganic revenue growth was 21%GAAP fully diluted EPS was $0.07 compared to $0.12 for the fourth quarter of 2018Adjusted (non-GAAP) fully diluted EPS increased to $0.20 compared to $0.19 for the fourth quarter of 2018Full Year 2019 Highlights
Revenue increased by 39% year-over-year (41% at constant currency), to $270.2 millionOrganic revenue growth was 33%GAAP fully diluted EPS increased to $0.44 compared to $0.37 for the year 2018Adjusted (non-GAAP) fully diluted EPS increased to $1.07 compared to $0.66 for the year 2018Financial Details for the Fourth Quarter and Full Year 2019
             
REVENUE
Total revenue for the fourth quarter of 2019 increased to $69.5 million compared to $51.9 million for the fourth quarter of 2018, a year-over-year gain of 34% as reported and 35% at constant currency, with organic growth of 21%.Total revenue for the full year 2019 increased to $270.2 million compared to $194.0 million for the full year 2018, a year-over-year gain of 39% as reported and 41% at constant currency, with organic growth of 33%.GROSS PROFIT and GROSS MARGIN
Gross profit (GAAP) for the fourth quarter of 2019 was $39.4 million, a year-over-year increase of $11.0 million. Adjusted gross profit (non-GAAP) for the fourth quarter of 2019 was $39.8 million, a year-over-year increase of $11.3 million.Gross margin (GAAP) for the fourth quarter of 2019 was 56.6%, a 210 bps improvement from the fourth quarter of 2018. Adjusted gross margin (non-GAAP) for the fourth quarter of 2019 was 57.2%, a 240 bps improvement compared to the 2018 period.Gross profit (GAAP) for the full year 2019 was $151.1 million, a year-over-year increase of $43.6 million. Adjusted gross profit (non-GAAP) for the full year 2019 was $154.1 million, a year-over-year increase of $45.9 million. Gross margin (GAAP) for the full year 2019 was 55.9%, a 50 bps improvement from the full year 2018. Adjusted gross margin (non-GAAP) for the full year 2019 was 57.0%, a 120 bps improvement from the full year 2018.OPERATING INCOMEOperating income (GAAP) for the fourth quarter of 2019 was $5.9 million compared to $7.9 million for the fourth quarter of 2018. Adjusted operating income (non-GAAP) for the fourth quarter of 2019 was $12.7 million, an increase of 15% compared to $11.1 million for the fourth quarter of 2018.Operating income (GAAP) for the full year 2019 was $36.1 million, an increase of 39% compared to $26.0 million for the full year 2018. Adjusted operating income (non-GAAP) for the full year 2019 was $63.5 million, an increase of 61% compared to $39.4 million for the full year 2018.  NET INCOMENet income (GAAP) for the fourth quarter of 2019 was $3.6 million compared to $5.6 million for the fourth quarter of 2018. Adjusted net income (non-GAAP) for the fourth quarter of 2019 was to $10.8 million, an increase of 21% compared to $8.9 million for the fourth quarter of 2018.  Net income (GAAP) for the full year 2019 was $21.4 million, an increase of 29% compared to $16.6 million for the full year 2018. Adjusted net income (non-GAAP) for the full year 2019 was $52.5 million, an increase of 74% compared to $30.1 million for the full year 2018. EARNINGS PER SHAREEarnings per share (GAAP) for the fourth quarter of 2019 were $0.07 on a fully diluted basis, compared to $0.12 for the fourth quarter of 2018. Adjusted EPS (non-GAAP) for the fourth quarter of 2019 increased to $0.20 on a fully diluted basis, compared to $0.19 for the 2018 period.Earnings per share (GAAP) for the full year 2019 increased to $0.44 on a fully diluted basis, compared to $0.37 for the full year 2018. Adjusted EPS (non-GAAP) for the full year 2019 increased to $1.07 on a fully diluted basis, compared to $0.66 for the full year 2018.EBITDAEBITDA, a non-GAAP financial measure, for the fourth quarter of 2019 was $11.7 million compared to $11.9 million for the fourth quarter of 2018. Adjusted EBITDA for the fourth quarter of 2019 was $14.6 million, an increase of 17% compared to $12.5 million for the fourth quarter of 2018.EBITDA for the full year 2019 was $51.0 million, an increase of 21% compared to $42.0 million for the full year 2018. Adjusted EBITDA for the full year 2019 was $71.1 million, an increase of 58% compared to $45.0 million for the full year 2018.CASHOur cash and cash equivalents at December 31, 2019 were $528.4 million, an increase of $334.6 million from $193.8 million at December 31, 2018. 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 2020Our financial guidance for the fiscal year 2020 is based on expectations for our existing business and includes the financial impact of our acquisition of C Technologies (which closed on May 31, 2019). The guidance below excludes the impact of potential additional acquisitions and future fluctuations in foreign currency exchange rates. FISCAL YEAR 2020 GUIDANCE:Total revenue is projected to be in the range of $309-$319 million, reflecting overall revenue growth of 14%-18% as reported and at constant currency and organic growth of 10%-14%.Gross margin is expected to be 55%-56% on both a GAAP and non-GAAP basis.Income from operations is expected to be in the range of $50-$54 million on a GAAP basis. Adjusted (non-GAAP) income from operations is expected to be in the range of $70-$74 million.Net income is expected to be in the range of $33.5-$36.5 million on a GAAP basis. Adjusted (non-GAAP) net income is expected to be in the range of $57-$60 million. Our current guidance reflects a tax rate of 23% on adjusted pre-tax income.Fully diluted GAAP EPS is expected to be in the range of $0.63-$0.68. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $1.07-$1.12.Our non-GAAP guidance for the fiscal year 2020 excludes the following items: $4.8 million estimated acquisition and integration expenses; $0.5 million in cost of product revenue, $0.5 million in R&D and $3.8 million in SG&A.$15.5 million estimated intangible amortization expense; $0.3 million in cost of product revenue and $15.1 million in G&A.$11.0 million of non-cash interest expense (Other income (expense)) related to our convertible debt notes.Our non-GAAP guidance for the fiscal year 2020 includes:An income tax increase of $7.6 million, representing the tax impact of acquisition and integration costs, intangible amortization and non-cash interest.All reconciliations of GAAP to adjusted (non-GAAP) guidance are detailed in the tables included later in this press release.  Conference Call
Repligen will host a conference call and webcast today, February 20, 2020, at 8:30 a.m. EST, to discuss fourth quarter and full year 2019 financial results and corporate developments. The conference call will be accessible by dialing toll-free (844) 701-1063 for domestic callers or (412) 317-5487 for international callers. No passcode is required for the live call. In addition, a webcast will be accessible via the Investor Relations section of the Company’s website. Both the conference call and webcast will be archived for a period of time following the live event. The replay dial-in numbers are (877) 344-7529 from the U.S., (855) 669-9658 from Canada and (412) 317-0088 for international callers. Replay listeners must provide the passcode 10137263. 
Non-GAAP Measures of Financial Performance
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