REPLIGEN CORP false 0000730272 0000730272 2020-07-30 2020-07-30

 

 

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): July 30, 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 July 30, 2020, Repligen Corporation announced its financial results for the second quarter ended June 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 July 30, 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: July 30, 2020     By:  

/s/ Tony J. Hunt

      Tony J. Hunt
      President and Chief Executive Officer

Exhibit 99.1

 

LOGO   

Repligen Corporation

41 Seyon Street

Building #1, Suite 100

Waltham, Massachusetts 02453

 

Repligen Reports Second Quarter 2020 Financial Results

and Updates Full Year 2020 Financial Guidance

 

   

Reports record quarterly revenue of $87.5 million

 

   

Overall revenue grew 24% year-over-year, with organic growth of 19%

 

   

Raises revenue guidance to $332-$340 million for full year 2020, representing 18%-21% organic growth

 

   

Completes acquisition of silicone molding and tubing manufacturer Engineered Molding Technology

WALTHAM, Mass. – July 30, 2020 – Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its second quarter of 2020. Provided in this press release are financial highlights for the three- and six- month periods ended June 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, “I’m pleased to report that the company delivered outstanding financial performance during the second quarter as we continue to focus on keeping all our manufacturing sites fully operational and managing our supply chain and logistics while also prioritizing the health and safety of our employees. During the second quarter, we saw increased demand in all of our product franchises, highlighted by strong growth in Asia and a significant pick up in orders both in the quarter and into the second half of 2020 related to COVID-19 vaccine and therapeutic programs. We finished the quarter by announcing our acquisition of Engineered Molding Technology, which closed in July, to enhance our single-use portfolio. We are confident about the full year outlook for the company and are updating guidance to reflect our expectations for margin expansion and revenue growth in the range of 23%-26%.”.

Financial Highlights for the Second Quarter 2020

 

   

Revenue increased by 24% year-over-year as reported and 19% organically, to $87.5 million

 

   

GAAP gross margin increased to 57.9%, and adjusted gross margin (non-GAAP) was 58.2%

 

   

GAAP fully diluted EPS increased to $0.30 compared to $0.17 for the second quarter of 2019

 

   

Adjusted fully diluted EPS (non-GAAP) increased to $0.42 compared to $0.33 for the second quarter of 2019

 

 

1


Financial Highlights for the First Half of 2020

 

   

Revenue increased by 25% year-over-year as reported and 17% organically, to $163.6 million

 

   

GAAP gross margin increased to 57.9%, and adjusted gross margin (non-GAAP) was 58.3%

 

   

GAAP fully diluted EPS increased to $0.48 compared to $0.34 for the first half of 2019

 

   

Adjusted fully diluted EPS (non-GAAP) increased to $0.74 compared to $0.59 for the first half of 2019

Financial Details for the Second Quarter and First Half of 2020

REVENUE

 

   

Total revenue for the second quarter of 2020 increased to $87.5 million compared to $70.7 million for the second quarter of 2019, a year-over-year gain of 24% as reported and 25% at constant currency, with organic growth of 19%.

 

   

Total revenue for the first half of 2020 increased to $163.6 million compared to $131.3 million for the first half of 2019, a year-over-year gain of 25% as reported.

GROSS PROFIT and GROSS MARGIN

 

   

Gross profit (GAAP) for the second quarter of 2020 was $50.6 million, a year-over-year increase of $10.6 million and representing 57.9% gross margin.

 

   

Adjusted gross profit (non-GAAP) for the second quarter of 2020 was $50.9 million, a year-over-year increase of $9.5 million and representing 58.2% gross margin.

 

   

Gross profit (GAAP) for the first half of 2020 was $94.7 million, a year-over-year increase of $20.9 million and representing 57.9% gross margin.

 

   

Adjusted gross profit (non-GAAP) for the first half of 2020 was $95.4 million, a year-over-year increase of $20.1 million and representing 58.3% gross margin.

OPERATING INCOME

 

   

Operating income (GAAP) for the second quarter of 2020 was $19.5 million compared to $11.1 million for the second quarter of 2019. Adjusted operating income (non-GAAP) for the second quarter of 2020 was $25.5 million, an increase of 27% compared to $20.1 million for the second quarter of 2019.

 

   

Operating income (GAAP) for the first half of 2020 was $31.4 million compared to $22.2 million for the first half of 2019. Adjusted operating income (non-GAAP) for the first half of 2020 was $43.9 million, an increase of 23% compared to $35.7 million for the first half of 2019.

NET INCOME

 

   

Net income (GAAP) for the second quarter of 2020 was $15.9 million, an increase of 96% compared to $8.1 million for the second quarter of 2019. Adjusted net income (non-GAAP) for the second quarter of 2020 was $22.5 million, an increase of 39% compared to $16.2 million for the second quarter of 2019.

 

   

Net income (GAAP) for the first half of 2020 was $25.7 million, an increase of 59% compared to $16.1 million for the first half of 2019. Adjusted net income (non-GAAP) for the first half of 2020 was $39.3 million, an increase of 38% compared to $28.4 million for the first half of 2019.

 

2


EARNINGS PER SHARE

 

   

Earnings per share (GAAP) for the second quarter of 2020 increased to $0.30 on a fully diluted basis, compared to $0.17 for the second quarter of 2019. Adjusted EPS (non-GAAP) for the second quarter of 2020 increased to $0.42 on a fully diluted basis, compared to $0.33 for the 2019 period.

 

   

Earnings per share (GAAP) for the first half of 2020 increased to $0.48 on a fully diluted basis, compared to $0.34 for the first half of 2019. Adjusted EPS (non-GAAP) for the first half of 2020 increased to $0.74 on a fully diluted basis, compared to $0.59 for the first half of 2019.

EBITDA

 

   

EBITDA, a non-GAAP financial measure, increased to $25.3 million for the second quarter of 2020, compared to $15.2 million for the second quarter of 2019. Adjusted EBITDA for the second quarter of 2020 increased to $27.4 million, compared to $21.7 million for the second quarter of 2019.

 

   

EBITDA increased to $43.9 million for the first half of 2020, compared to $30.9 million for the first half of 2019. Adjusted EBITDA for the first half of 2020 increased to $48.6 million, compared to $39.2 million for the first half of 2019.

CASH

 

   

Our cash and cash equivalents at June 30, 2020 were $560.4 million, an increase of $32 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 acquisition of C Technologies (which closed on May 31, 2019) and Engineered Molding Technology (which closed on July 13, 2020). 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 $332-$340 million, an increase from our previous guidance of $309-$319 million. Our current guidance reflects overall revenue growth of 23%-26%, and organic revenue growth of 18%-21%.

 

   

Gross margin is expected to be in the range of 56.5%-57.0% on both a GAAP and non-GAAP basis, compared to our previous guidance of 56%-57%.

 

3


   

Income from operations is expected to be in the range of $59-$62 million on a GAAP basis, an increase from our previous guidance of $52-$56 million. Adjusted (non-GAAP) income from operations is expected to be in the range of $81-$84 million, an increase from our previous guidance of $72-$76 million.

 

   

Net income is expected to be in the range of $41-$44 million on a GAAP basis, an increase from our previous guidance of $34.5-$37.5 million. Adjusted (non-GAAP) net income is expected to be in the range of $66-$69 million, an increase from our previous guidance of $58-$61 million. Our current guidance reflects an adjusted tax rate of 18% on adjusted pre-tax income, compared to our previous guidance of 20%.

 

   

Fully diluted GAAP EPS is expected to be in the range of $0.77-$0.82, an increase from our previous guidance of $0.65-$0.70. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $1.24-$1.29, an increase from our previous guidance of $1.09-$1.14.

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

 

   

$5.7 million estimated acquisition and integration expenses; $0.5 million in cost of product revenue, $0.5 million in R&D and $4.7 million in SG&A.

 

   

Expected inventory step-up charges of $0.2 million related to the acquisition of Engineered Molding Technology.

 

   

$15.7 million estimated intangible amortization expense; $0.3 million in cost of product revenue and $15.5 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 $7.8 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, July 30, 2020, at 8:30 a.m. EDT, to discuss second quarter 2020 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 10146361.

 

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 selling, general and administrative expense, 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 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 Marlborough, MA; Bridgewater, NJ; Rancho Dominguez, CA; Clifton Park, NY; Lund, Sweden; Breda, The Netherlands and Ravensburg, Germany.

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 and Engineered Molding Technology businesses, the expected

 

5


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, and the related downturn of 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 and Engineered Molding Technology 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
June 30,
    Six Months Ended
June 30,
 
     2020     2019     2020     2019  

Revenue:

        

Product revenue

   $  87,432     $  70,670     $  163,492     $  131,282  

Royalty and other revenue

     30       22       60     44  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     87,462       70,692       163,552     131,326  

Costs and expenses:

        

Cost of product revenue

     36,863       30,708       68,845     57,553  

Research and development

     4,336     5,231     9,038     8,851

Selling, general and administrative

     26,726       23,699       54,226     42,697  
  

 

 

   

 

 

   

 

 

   

 

 

 
     67,925       59,638       132,109     109,101  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     19,537     11,054     31,443     22,225

Investment income

     253       1,005     1,617     1,718

Interest expense

     (3,004     (1,743     (5,980     (3,469

Other income, net

     (766     (697     (384     (339
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     16,020     9,619     26,696     20,135

Income tax provision

     159       1,524     1,020     3,987
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $  15,861     $  8,095     $  25,676     $  16,148  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $  0.30     $  0.17     $  0.49     $  0.36  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $  0.30     $  0.17     $  0.48     $  0.34  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     52,381,201     46,367,187     52,259,937     45,174,134
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     53,305,827     49,055,814     53,212,596     47,691,772
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     June 30,
2020
     December 31,
2019
 

Balance Sheet Data:

     

Cash, cash equivalents and marketable securities

   $  560,364      $  528,392  

Working capital

     642,756        593,515  

Total assets

     1,442,045        1,400,113

Long-term obligations

     297,617        292,032  

Accumulated earnings

     31,519        5,843

Stockholders’ equity

     1,100,027        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
June 30,
     Six Months Ended
June 30,
 
     2020      2019      2020      2019  

GAAP INCOME FROM OPERATIONS

   $  19,537      $  11,054      $  31,443      $  22,225  

ADJUSTMENTS TO INCOME (LOSS) FROM OPERATIONS:

 

        

Acquisition and integration costs

     2,134      4,822      4,687      6,621

Intangible amortization

     3,874      3,051      7,752      5,662

Inventory step-up charges

     —        1,169      —        1,169
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED INCOME FROM OPERATIONS

   $  25,545      $  20,096      $  43,882      $  35,677  
  

 

 

    

 

 

    

 

 

    

 

 

 

REPLIGEN CORPORATION

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

(Unaudited, amounts in thousands)

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2020      2019      2020      2019  

GAAP NET INCOME

   $  15,861      $  8,095      $  25,676      $  16,148  

ADJUSTMENTS TO NET INCOME:

           

Acquisition and integration costs

     2,134      5,322      4,687      7,121

Inventory step-up charges

     —        1,169      —        1,169

Intangible amortization

     3,874      3,051      7,752      5,662

Non-cash interest expense

     2,724      1,124      5,415      2,231

Tax effect of non-GAAP charges (1)

     (2,085      (2,610      (4,262      (3,961
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED NET INCOME

   $  22,508      $  16,151      $  39,268      $  28,370  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Effective as of the quarter ended June 30, 2019, the Company changed its methodology for calculating its non-GAAP financial measures to reflect certain tax effects related to acquisition and integration costs, intangible amortization and non-cash interest expense. Accordingly, the non-GAAP financial measures for the three months ended June 30, 2019 have been updated to be consistent with the methodology used to calculate such measures for the current period.

 

8


REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME PER SHARE TO

NON-GAAP (ADJUSTED) NET INCOME PER SHARE

(Unaudited)

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2020      2019      2020      2019  

GAAP NET INCOME PER SHARE - DILUTED

   $  0.30      $  0.17      $  0.48      $  0.34  

ADJUSTMENTS TO NET INCOME PER SHARE - DILUTED:

 

        

Acquisition and integration costs

     0.04      0.11      0.09      0.15  

Inventory step-up charges

     —        0.02      —        0.02  

Intangible amortization

     0.07      0.06      0.15      0.12  

Non-cash interest expense

     0.05      0.02      0.10      0.05  

Tax effect of non-GAAP charges(1)

     (0.04      (0.05      (0.08      (0.09
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED NET INCOME PER SHARE - DILUTED

     0.42    $  0.33      $  0.74      $  0.59  
  

 

 

    

 

 

    

 

 

    

 

 

 

Totals may not add due to rounding.

 

(1) 

Effective as of the quarter ended June 30, 2019, the Company changed its methodology for calculating its non-GAAP financial measures to reflect certain tax effects related to acquisition and integration costs, intangible amortization and non-cash interest expense. Accordingly, the non-GAAP financial measures for the three months ended June 30, 2019 have been updated to be consistent with the methodology used to calculate such measures for the current period.

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

(Unaudited, amounts in thousands)

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2020      2019      2020      2019  

GAAP NET INCOME

   $  15,861      $  8,095      $  25,676      $  16,148  

ADJUSTMENTS:

           

Investment Income

     (253      (1,005      (1,617      (1,718

Interest Expense

     3,004      1,743      5,980      3,469

Tax Provision

     159      1,524      1,020      3,987

Depreciation

     2,578      1,762      5,063      3,337

Amortization(1)

     3,902      3,079      7,807      5,716
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     25,251      15,198      43,929      30,939

OTHER ADJUSTMENTS:

           

Acquisition and integration costs

     2,134      5,322      4,687      7,121

Inventory step-up charges

     —        1,169      —          1,169
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED EBITDA

   $  27,385      $  21,689      $  48,616      $  39,229  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

Includes amortization of milestone payments in accordance with GAAP of $27 for the three months ended June 30, 2020 and 2019 and $55 for the six months ended June 30, 2020 and 2019.

 

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REPLIGEN CORPORATION

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

(Unaudited, amounts in thousands)

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2020      2019      2020      2019  

GAAP COST OF SALES

   $ 36,863      $ 30,708      $ 68,845      $ 57,553  

ADJUSTMENT TO COST OF SALES:

           

Acquisition and integration costs

     (185      (133      (465      (151

Inventory step-up charges

     —        (1,169      —          (1,169

Intangible amortization

     (127      (130      (254      (264
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED COST OF SALES

   $  36,551      $  29,276      $  68,126      $  55,969  
  

 

 

    

 

 

    

 

 

    

 

 

 

REPLIGEN CORPORATION

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

(Unaudited, amounts in thousands)

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2020      2019      2020      2019  

GAAP R&D

   $  4,336      $  5,231      $  9,038      $  8,851  

ADJUSTMENT TO R&D:

           

Acquisition and integration costs

     (189      (100      (471      (127
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED R&D

   $  4,147      $  5,131      $  8,567      $  8,724  
  

 

 

    

 

 

    

 

 

    

 

 

 

REPLIGEN CORPORATION

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

(Unaudited, amounts in thousands)

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2020      2019      2020      2019  

GAAP SG&A EXPENSE

   $  26,726      $  23,699      $  54,226      $  42,697  

ADJUSTMENTS TO SG&A EXPENSE:

           

Acquisition and integration costs

     (1,760      (4,590      (3,750      (6,343

Intangible amortization

     (3,747      (2,921      (7,498      (5,398
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED SG&A EXPENSE

   $  21,219      $  16,188      $  42,977      $  30,956  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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

   $  41,000      $  44,000  

ADJUSTMENTS TO GUIDANCE ON NET INCOME:

     

Acquisition and integration costs

     5,706      5,706

Anticipated pre-tax amortization of acquisition-related intangible assets

     15,733      15,733

Inventory step-up costs

     233      233

Non-cash interest expense

     10,963      10,963

Tax effect of non-GAAP charges

     (7,790      (7,790

Guidance rounding adjustment

     155      155
  

 

 

    

 

 

 

GUIDANCE ON ADJUSTED NET INCOME

   $ 66,000      $ 69,000  
  

 

 

    

 

 

 

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

   $ 0.77      $ 0.82  

ADJUSTMENTS TO GUIDANCE ON NET INCOME PER SHARE - DILUTED:

     

Acquisition and integration costs

   $ 0.11      $ 0.11  

Anticipated pre-tax amortization of acquisition-related intangible assets

   $ 0.29      $ 0.29  

Inventory step-up costs

   $ 0.00      $ 0.00  

Non-cash interest expense

   $ 0.21      $ 0.21  

Tax effect of non-GAAP charges

     ($0.15      ($0.15

Guidance rounding adjustment

   $ 0.00      $ 0.00  
  

 

 

    

 

 

 

GUIDANCE ON ADJUSTED NET INCOME PER SHARE - DILUTED

   $ 1.24      $ 1.29  
  

 

 

    

 

 

 

Totals may not add due to rounding.

     

# # #

 

11