8-K
REPLIGEN CORP false 0000730272 0000730272 2020-11-05 2020-11-05

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 5, 2020

 

 

REPLIGEN CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-14656   04-2729386

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

41 Seyon Street, Bldg. 1, Suite 100, Waltham, MA 02453

(Address of principal executive offices, including zip code)

(781) 250-0111

(Registrant’s telephone number, including area code)

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value $0.01 per share   RGEN   The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

On November 5, 2020, Repligen Corporation announced its financial results for the third quarter ended September 30, 2020. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

 

99.1    Press Release by Repligen Corporation, dated November 5, 2020
104    Cover page from this Current Report on Form 8-K, formatted in Inline XBRL


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    REPLIGEN CORPORATION
Date: November 5, 2020     By:  

/s/ Tony J. Hunt

      Tony J. Hunt
      President and Chief Executive Officer
EX-99.1

Exhibit 99.1

 

 

Repligen Corporation

41 Seyon Street

Building #1, Suite 100

Waltham, Massachusetts 02453

 

 

Repligen Reports Third Quarter 2020 Financial Results

and Updates Full Year 2020 Financial Guidance

 

 

Reports record quarterly revenue of $94.1 million with strong margin expansion

 

 

Overall revenue grew 35% year-over-year, with organic growth of 31%

 

 

Raises revenue guidance to $348-$352 million and overall revenue growth to 29%-30% for full year 2020, representing 23%-24% organic growth

 

 

Completes acquisition of Non-Metallic Solutions and announces agreement to acquire bioprocess systems innovator ARTeSYN Biosolutions

WALTHAM, Mass. – November 5, 2020 — Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its third quarter of 2020. Provided in this press release are financial highlights for the three- and nine- month periods ended September 30, 2020, updates to our financial guidance for the fiscal year 2020 and access information for today’s webcast and conference call.

Tony J. Hunt, President and Chief Executive Officer said, “We are pleased with our momentum during the third quarter, reporting over $94 million in revenue and robust organic growth of 31%. COVID programs accounted for approximately 14% of revenue during the quarter, and approximately 55% of revenue growth. We continued to see strong revenue and order demand as both COVID customers and gene therapy accounts drove accelerated growth across our franchises, with Filtration performing exceptionally well. Direct product orders were up over 100% year-on-year, positioning us well for an excellent finish to 2020 and a strong start to 2021.”

Mr. Hunt added, “In addition to our strong business performance we were delighted to close on our deal to acquire Non-Metallic Solutions and also sign an agreement to acquire ARTeSYN Biosolutions. These acquisitions broaden and strengthen our systems strategy - where single-use systems and consumables - including flow path assemblies - come together for an enhanced customer offering with meaningful process and yield advantages.”

Financial Highlights for the Third Quarter 2020

 

   

Revenue increased by 35% year-over-year as reported and 31% organically, to reach a quarterly record $94.1 million.

 

   

Gross margin (GAAP) was 57.9%, an increase of 3.1 points, and adjusted gross margin (non-GAAP) was 58.0%, an increase of 1.9 points compared to third quarter of 2019.

 

   

Operating margin (GAAP) was 22.3%, an increase of 10.8 points, and adjusted operating margin (non-GAAP) was 28.6%, an increase of 6.8 points compared to the third quarter of 2019.

 

1


   

Fully diluted EPS (GAAP) increased to $0.27 compared to $0.03 for the third quarter of 2019, and adjusted fully diluted EPS (non-GAAP) increased to $0.40 compared to $0.26 for the third quarter of 2019.

Financial Details for the Third Quarter and First Nine Months of 2020

REVENUE

 

   

Total revenue for the third quarter of 2020 increased to $94.1 million compared to $69.4 million for the third quarter of 2019, a year-over-year gain of 35% as reported and 34% at constant currency, with organic growth of 31%.

 

   

Total revenue for the first nine months of 2020 increased to $257.6 million compared to $200.8 million for the first nine months of 2019, a year-over-year gain of 28% as reported and at constant currency, with organic growth of 22%.

GROSS PROFIT and GROSS MARGIN

 

   

Gross profit (GAAP) for the third quarter of 2020 was $54.4 million, a year-over-year increase of $16.4 million and representing 57.9% gross margin.

 

   

Adjusted gross profit (non-GAAP) for the third quarter of 2020 was $54.6 million, a year-over-year increase of $15.6 million and representing 58% gross margin.

 

   

Gross profit (GAAP) for the first nine months of 2020 was $149.1 million, a year-over-year increase of $37.3 million and representing 57.9% gross margin.

 

   

Adjusted gross profit (non-GAAP) for the first nine months of 2020 was $150.0 million, a year-over-year increase of $35.7 million and representing 58.2% gross margin.

OPERATING INCOME

 

   

Operating income (GAAP) for the third quarter of 2020 was $21.0 million, an increase of $13 million compared to $8.0 million for the third quarter of 2019. Adjusted operating income (non-GAAP) for the third quarter of 2020 was $26.9 million, an increase of $11.7 million compared to $15.1 million for the third quarter of 2019.

 

   

Operating income (GAAP) for the first nine months of 2020 was $52.4 million, an increase of $22.2 million compared to $30.2 million for the first nine months of 2019. Adjusted operating income (non-GAAP) for the first nine months of 2020 was $70.8 million, an increase of $20.0 million compared to $50.8 million for the first nine months of 2019.

NET INCOME

 

   

Net income (GAAP) for the third quarter of 2020 was $14.6 million, an increase of $12.9 million compared to $1.7 million for the third quarter of 2019. Adjusted net income (non-GAAP) for the third quarter of 2020 was $21.2 million, an increase of $7.8 million compared to $13.3 million for the third quarter of 2019.

 

   

Net income (GAAP) for the first nine months of 2020 was $40.2 million, an increase of $22.4 million compared to $17.8 million for the first nine months of 2019. Adjusted net income (non-GAAP) for the first nine months of 2020 was $60.4 million, an increase of $18.7 million compared to $41.7 million for the first nine months of 2019.

 

2


EARNINGS PER SHARE

 

   

Earnings per share (GAAP) for the third quarter of 2020 increased to $0.27 on a fully diluted basis, compared to $0.03 for the third quarter of 2019. Adjusted EPS (non-GAAP) for the third quarter of 2020 increased to $0.40 on a fully diluted basis, compared to $0.26 for the 2019 period.

 

   

Earnings per share (GAAP) for the first nine months of 2020 increased to $0.75 on a fully diluted basis, compared to $0.37 for the first nine months of 2019. Adjusted EPS (non-GAAP) for the first nine months of 2020 increased to $1.13 on a fully diluted basis, compared to $0.87 for the first nine months of 2019.

EBITDA

 

   

EBITDA, a non-GAAP financial measure, increased to $27.4 million for the third quarter of 2020, compared to $8.4 million for the third quarter of 2019. Adjusted EBITDA for the third quarter of 2020 increased to $29.4 million, compared to $17.3 million for the third quarter of 2019.

 

   

EBITDA increased to $71.4 million for the first nine months of 2020, compared to $39.3 million for the first nine months of 2019. Adjusted EBITDA for the first nine months of 2020 increased to $78.0 million, compared to $56.5 million for the first nine months of 2019.

CASH

 

   

Our cash and cash equivalents at September 30, 2020 were $553.3 million, an increase of $24.9 million from $528.4 million at December 31, 2019.

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 2020

Our financial guidance for the fiscal year 2020 is based on expectations for our existing business and includes the financial impact of our acquisitions of C Technologies (which closed on May 31, 2019), Engineered Molding Technology (which closed on July 13, 2020) and Non-Metallic Solutions, Inc. (which closed on October 20, 2020). The guidance below does not include the impact of our proposed acquisition of ARTeSYN Biosolutions, which is expected to close during the fourth quarter of 2020. The guidance also 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 $348-$352 million, an increase from our previous guidance of $332-$340 million. This updated revenue guidance includes approximately $1 million in projected revenue from Non-Metallic Solutions, and reflects overall revenue growth of 29%-30%, with organic revenue growth in the range of 23%-24%.

 

   

COVID programs are expected to account for approximately 10% of revenue.

 

3


   

Gross margin is expected to be in the range of 57.5%-58.0% on both a GAAP and non-GAAP basis, compared to our previous guidance of 56.5%-57%.

 

   

Income from operations is expected to be in the range of $66-$68 million on a GAAP basis, an increase from our previous guidance of $59-$62 million. Adjusted income from operations (non-GAAP) is expected to be in the range of $91-$93 million, an increase from our previous guidance of $81-$84 million.

 

   

Net income is expected to be in the range of $47.5-$49.5 million on a GAAP basis, an increase from our previous guidance of $41-$44 million. Adjusted net income (non-GAAP) is expected to be in the range of $75-$77 million, an increase from our previous guidance of $66-$69 million. Our current guidance reflects an adjusted tax rate of 17% on adjusted pre-tax income, compared to our previous guidance of 18%.

 

   

Fully diluted EPS (GAAP) is expected to be in the range of $0.89-$0.93, an increase from our previous guidance of $0.77-$0.82. Adjusted fully diluted EPS (non-GAAP) is expected to be in the range of $1.41-$1.45, an increase from our previous guidance of $1.24-$1.29.

Our non-GAAP guidance for the fiscal year 2020 excludes the following items:

 

   

$9.2 million estimated acquisition and integration expenses; $0.5 million in cost of product revenue, $0.5 million in R&D and $8.2 million in selling, general and administrative expense (“SG&A”).

 

   

Expected inventory step-up charges of $0.2 million related to the acquisitions of Engineered Molding Technology and Non-Metallic Solutions.

 

   

$15.8 million estimated intangible amortization expense; $0.3 million in cost of product revenue and $15.6 million in SG&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 expense of $8.6 million, representing the tax impact of acquisition and integration, inventory step-up, and intangible amortization expenses, as well as non-cash interest expenses related to our convertible debt notes.

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, November 5, 2020, at 8:30 a.m. EST, to discuss third quarter 2020 financial results and corporate developments. The conference call will be accessible by dialing toll-free (844) 763-8274 for domestic callers or (412) 717-9224 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 10149396.

 

4


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 in this release: revenue growth rate at constant currency, adjusted gross profit and adjusted gross margin, adjusted income from operations and adjusted operating margin, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, adjusted net income, adjusted net income per share, adjusted earnings per diluted share (EPS), adjusted cost of sales, adjusted research & development expense, adjusted SG&A, adjusted income tax expense and adjusted income tax rate. The Company provides organic revenue growth rates in constant currency to exclude the impact of both foreign currency translation, and the impact of acquisition revenue for current year periods that have no prior year comparable, in order to facilitate a comparison of its current revenue performance to its past revenue performance. The Company provides revenue growth rates in constant currency in order to facilitate a comparison of its current revenue performance to its past revenue performance. To calculate revenue growth rates in constant currency, the Company converts actual net sales from local currency to U.S. dollars using constant foreign currency exchange rates in the current and prior period.

The Company’s non-GAAP financial results and/or non-GAAP guidance exclude the impact of: acquisition and integration costs, inventory step-up charges and intangible amortization costs related to the Company’s acquisitions, as well as non-cash interest expenses related to the Company’s convertible debt, and the related impact on tax of non-GAAP charges. These costs are excluded because management believes that such expenses do not have a direct correlation to future business operations, nor do the resulting charges recorded accurately reflect the performance of our ongoing operations for the period in which such charges are recorded.

A reconciliation of GAAP to adjusted (non-GAAP) financial measures, as well as EBITDA to adjusted EBITDA, is included as an attachment to this press release. When analyzing the Company’s operating performance and guidance, investors should not consider non-GAAP measures as substitutable for the comparable financial measures prepared in accordance with GAAP.

About Repligen Corporation

Repligen Corporation is a global life sciences company that develops and commercializes highly innovative bioprocessing technologies and systems that increase efficiencies in the process of manufacturing biological drugs. We are inspiring advances in bioprocessing for the customers we serve; primarily biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide. Our corporate headquarters are located in Waltham, MA (USA), and we have additional administrative and manufacturing operations in Rancho Dominguez, CA; Marlborough and Auburn, MA; Bridgewater, NJ; Clifton Park, NY; Dallas, TX; Ravensburg, Germany; Breda, the Netherlands and Lund, Sweden.

 

5


The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, express or implied statements or guidance regarding current or future financial performance and position, including cash and investment position, demand in the markets in which we operate, the expected performance of our business, the expected performance of the C Technologies, Engineered Molding Technology and Non-Metallic Solutions businesses, the expected closing of the acquisition of ARTeSYN Biosolutions, the expected performance and success of our strategic partnerships, management’s strategy, plans and objectives for future operations or acquisitions, product development and sales, selling, general and administrative expenditures, intellectual property, development and manufacturing plans, availability of materials and product and adequacy of capital resources, our financing plans, and the projected impact of, and response to, the COVID-19 coronavirus pandemic on our business and on the U.S. and global economies constitute forward-looking statements identified by words like “believe,” “expect,” “may,” “will,” “should,” “seek,” “anticipate,” or “could” and similar expressions. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with the following: the effect of the COVID-19 coronavirus pandemic, including mitigation efforts and economic effects, on our business operations and the operations of our customers and suppliers; the ultimate impact of the COVID-19 coronavirus pandemic on our business or financial results; our ability to successfully grow our bioprocessing business, including as a result of acquisition, commercialization or partnership opportunities; our ability to successfully integrate any acquisitions, our ability to develop and commercialize products and the market acceptance of our products; our ability to integrate the C Technologies, Engineered Molding Technology and Non-Metallic Solutions businesses successfully into our business and achieve the expected benefits of the acquisitions; reduced demand for our products that adversely impacts our future revenues, cash flows, results of operations and financial condition; our ability to compete with larger, better financed bioprocessing, pharmaceutical and biotechnology companies; our compliance with all U.S. Food and Drug Administration and EMEA regulations; our volatile stock price; and other risks detailed in Repligen’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 on file with the Securities and Exchange Commission and the other reports that Repligen periodically files with the Securities and Exchange Commission. Actual results may differ materially from those Repligen contemplated by these forward-looking statements. These forward-looking statements reflect management’s current views and Repligen does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date hereof except as required by law.

Repligen Contact:

Sondra S. Newman

Global Head of Investor Relations

(781) 419-1881

investors@repligen.com

 

6


REPLIGEN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2020     2019     2020     2019  

Revenue:

        

Product revenue

   $ 94,029     $ 69,419     $ 257,521     $ 200,701  

Royalty and other revenue

     31       26       91       70  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     94,060       69,445       257,612       200,771  

Costs and expenses:

        

Cost of product revenue

     39,626       31,425       108,471       88,978  

Research and development

     4,422       5,427       13,460       14,278  

Selling, general and administrative

     29,051       24,629       83,277       67,326  
  

 

 

   

 

 

   

 

 

   

 

 

 
     73,099       61,481       205,208       170,582  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     20,961       7,964       52,404       30,189  

Investment income

     82       1,898       1,699       3,616  

Loss on extinguishment of debt

     —         (5,650     —         (5,650

Interest expense

     (3,052     (2,857     (9,032     (6,326

Other (expense) income, net

     (248     316       (632     (23
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     17,743       1,671       44,439       21,806  

Income tax provision

     3,191       12       4,211       3,999  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 14,552     $ 1,659     $ 40,228     $ 17,807  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 0.28     $ 0.03     $ 0.77     $ 0.38  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.27     $ 0.03     $ 0.75     $ 0.37  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     52,545,100       50,851,623       52,341,037       47,086,779  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     53,468,658       51,809,289       53,299,544       47,929,581  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Balance Sheet Data:    September 30,
2020
     December 31,
2019
 

Cash, cash equivalents and marketable securities

   $ 553,302      $ 528,392  

Working capital

     645,744        593,515  

Total assets

     1,476,316        1,400,113  

Long-term obligations

     300,462        292,032  

Accumulated earnings

     46,071        5,843  

Stockholders’ equity

     1,124,870        1,059,768  

 

7


REPLIGEN CORPORATION

RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO

NON-GAAP (ADJUSTED) INCOME FROM OPERATIONS

(Unaudited, amounts in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2020      2019      2020      2019  

GAAP INCOME FROM OPERATIONS

   $ 20,961      $ 7,964      $ 52,404      $ 30,189  

ADJUSTMENTS TO INCOME (LOSS) FROM OPERATIONS:

           

Acquisition and integration costs

     1,849        2,953        6,536        9,573  

Intangible amortization

     3,925        3,900        11,677        9,562  

Inventory step-up charges

     144        314        144        1,483  
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED INCOME FROM OPERATIONS

   $ 26,879      $ 15,131      $ 70,761      $ 50,807  
  

 

 

    

 

 

    

 

 

    

 

 

 

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP (ADJUSTED) NET INCOME

(Unaudited, amounts in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2020      2019      2020      2019  

GAAP NET INCOME

   $ 14,552      $ 1,659      $ 40,228      $ 17,807  

ADJUSTMENTS TO NET INCOME:

           

Acquisition and integration costs

     1,849        2,953        6,536        10,074  

Inventory step-up charges

     144        314        144        1,483  

Intangible amortization

     3,925        3,900        11,677        9,562  

Loss on extinguishment of debt

     —          5,650        —          5,650  

Non-cash interest expense

     2,759        2,631        8,174        4,863  

Tax effect of non-GAAP charges

     (2,072      (3,781      (6,334      (7,742
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED NET INCOME

   $ 21,157      $ 13,326      $ 60,425      $ 41,697  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

8


REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME PER SHARE TO

NON-GAAP (ADJUSTED) NET INCOME PER SHARE

(Unaudited)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2020      2019      2020      2019  

GAAP NET INCOME PER SHARE - DILUTED

   $ 0.27      $ 0.03      $ 0.75      $ 0.37  

ADJUSTMENTS TO NET INCOME PER SHARE - DILUTED:

           

Acquisition and integration costs

     0.03        0.06        0.12        0.21  

Inventory step-up charges

     0.00        0.01        0.00        0.03  

Intangible amortization

     0.07        0.08        0.22        0.20  

Loss on extinguishment of debt

     —          0.11        —          0.12  

Non-cash interest expense

     0.05        0.05        0.15        0.10  

Tax effect of non-GAAP charges

     (0.04      (0.07      (0.12      (0.16
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED NET INCOME PER SHARE - DILUTED

     0.40      $ 0.26      $ 1.13      $ 0.87  
  

 

 

    

 

 

    

 

 

    

 

 

 

Totals may not add due to rounding.

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

(Unaudited, amounts in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2020      2019      2020      2019  

GAAP NET INCOME

   $ 14,552      $ 1,659      $ 40,228      $ 17,807  

ADJUSTMENTS:

           

Investment Income

     (82      (1,898      (1,699      (3,616

Interest Expense

     3,052        2,857        9,032        6,326  

Tax Provision

     3,191        12        4,211        3,999  

Depreciation

     2,757        1,810        7,820        5,147  

Amortization(1)

     3,953        3,928        11,760        9,644  
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     27,422        8,368        71,353        39,307  

OTHER ADJUSTMENTS:

           

Acquisition and integration costs

     1,849        2,953        6,536        10,074  

Loss on extinguishment of debt

     —          5,650        —          5,650  

Inventory step-up charges

     144        314        144        1,483  
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED EBITDA

   $ 29,415      $ 17,285      $ 78,033      $ 56,514  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Includes amortization of milestone payments in accordance with GAAP of $28 and $83 for the three- and nine-months ended September 30, 2020 and 2019.

 

9


REPLIGEN CORPORATION

RECONCILIATION OF GAAP COST OF SALES TO NON-GAAP (ADJUSTED) COST OF SALES

(Unaudited, amounts in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2020      2019      2020      2019  

GAAP COST OF SALES

   $ 39,626      $ 31,425      $ 108,471      $ 88,978  

ADJUSTMENT TO COST OF SALES:

           

Acquisition and integration costs

     (3      (519      (468      (670

Inventory step-up charges

     (144      (314      (144      (1,483

Intangible amortization

     —          (128      (254      (392
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED COST OF SALES

   $ 39,479      $ 30,464      $ 107,605      $ 86,433  
  

 

 

    

 

 

    

 

 

    

 

 

 

REPLIGEN CORPORATION

RECONCILIATION OF GAAP R&D EXPENSE TO NON-GAAP (ADJUSTED) R&D EXPENSE

(Unaudited, amounts in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2020      2019      2020      2019  

GAAP R&D

   $ 4,422      $ 5,427      $ 13,460      $ 14,278  

ADJUSTMENT TO R&D:

           

Acquisition and integration costs

     (1      (278      (472      (405
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED R&D

   $ 4,421      $ 5,149      $ 12,988      $ 13,873  
  

 

 

    

 

 

    

 

 

    

 

 

 

REPLIGEN CORPORATION

RECONCILIATION OF GAAP SG&A EXPENSE TO NON-GAAP (ADJUSTED) SG&A EXPENSE

(Unaudited, amounts in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2020      2019      2020      2019  

GAAP SG&A EXPENSE

   $ 29,051      $ 24,629      $ 83,277      $ 67,326  

ADJUSTMENTS TO SG&A EXPENSE:

           

Acquisition and integration costs

     (1,845      (2,156      (5,596      (8,499

Intangible amortization

     (3,925      (3,772      (11,425      (9,170
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED SG&A EXPENSE

   $ 23,280      $ 18,701      $ 66,257      $ 49,657  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

10


REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME GUIDANCE TO ADJUSTED (NON-GAAP NET INCOME GUIDANCE)

 

(in thousands)    Twelve months ending December 31, 2020  
     Low End      High End  

GUIDANCE ON NET INCOME

   $ 47,500      $ 49,500  

ADJUSTMENTS TO GUIDANCE ON NET INCOME:

     

Acquisition and integration costs

     9,167        9,167  

Anticipated pre-tax amortization of acquisition-related intangible assets

     15,842        15,842  

Inventory step-up costs

     172        172  

Non-cash interest expense

     10,966        10,966  

Tax effect of non-GAAP charges

     (8,630      (8,630

Guidance rounding adjustment

     (17      (17
  

 

 

    

 

 

 

GUIDANCE ON ADJUSTED NET INCOME

   $ 75,000      $ 77,000  
  

 

 

    

 

 

 

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME PER SHARE GUIDANCE TO

ADJUSTED (NON-GAAP) NET INCOME PER SHARE GUIDANCE

 

     Twelve months ending December 31, 2020  
     Low End      High End  

GUIDANCE ON NET INCOME PER SHARE - DILUTED

   $ 0.89      $ 0.93  

ADJUSTMENTS TO GUIDANCE ON NET INCOME PER SHARE - DILUTED:

     

Acquisition and integration costs

   $ 0.17      $ 0.17  

Anticipated pre-tax amortization of acquisition-related intangible assets

   $ 0.30      $ 0.30  

Inventory step-up costs

   $ 0.00      $ 0.00  

Non-cash interest expense

   $ 0.21      $ 0.21  

Tax effect of non-GAAP charges

   ($ 0.16    ($ 0.16

Guidance rounding adjustment

   ($ 0.00    $ 0.00  
  

 

 

    

 

 

 

GUIDANCE ON ADJUSTED NET INCOME PER SHARE - DILUTED

   $ 1.41      $ 1.45  
  

 

 

    

 

 

 

Totals may not add due to rounding.

# # #

 

11

v3.20.2
Document and Entity Information
Nov. 05, 2020
Cover [Abstract]  
Entity Registrant Name REPLIGEN CORP
Amendment Flag false
Entity Central Index Key 0000730272
Document Type 8-K
Document Period End Date Nov. 05, 2020
Entity Incorporation State Country Code DE
Entity File Number 001-14656
Entity Tax Identification Number 04-2729386
Entity Address, Address Line One 41 Seyon Street
Entity Address, Address Line Two Bldg. 1
Entity Address, Address Line Three Suite 100
Entity Address, City or Town Waltham
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02453
City Area Code (781)
Local Phone Number 250-0111
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock, par value $0.01 per share
Trading Symbol RGEN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false