Repligen Reports Third Quarter 2022 Financial Results

November 1, 2022

WALTHAM, Mass., Nov. 01, 2022 (GLOBE NEWSWIRE) — Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its third quarter of 2022. Provided in this press release are financial highlights for the three- and nine- month periods ended September 30, 2022, updates to our financial guidance for the year 2022 and access information for today’s webcast and conference call.

Tony J. Hunt, President and Chief Executive Officer said, “I’m very pleased with our performance for the third quarter, with reported revenue of $201 million reflecting overall revenue growth of approximately 13% year-over-year, and 19% at constant currency. We continue to see strength in our base business, where third quarter revenue grew 29% year-over-year, and is expected to be in the range of 33%-34% for the full year. Strategically, we executed on two important deals, signing a 15-year agreement with DRS Daylight Solutions on real-time process monitoring using mid-infrared technology and more recently extending our affinity ligand relationship with Purolite (an EcoLab company) until 2032. We are confident about our full year outlook for the company with overall revenue growth of 19%-20% as reported and 24%-25% at constant currency.”

Financial Highlights for the Third Quarter and First Nine Months of 2022

REVENUE

  • Total revenue as reported for the third quarter of 2022 increased to $200.7 million compared to $178.2 million for the third quarter of 2021, a year-over-year gain of 13%, or 19% at constant currency, and organic growth of 16%.
  • Total revenue as reported for the first nine months of 2022 increased to $614.8 million compared to $484.0 million for the first nine months of 2021, a year-over-year gain of 27%, or 32% at constant currency, and organic growth of 28%.

REVENUE MIX

  • For the third quarter of 2022, our base business accounted for approximately 83% of revenue, COVID-related sales accounted for 14%, and inorganic revenue from acquisitions made in 2021 accounted for 3% of revenue.
  • For the first nine months of 2022, our base business accounted for 78% of revenue, COVID-related sales accounted for 19% of revenue, and inorganic revenue from acquisitions made in 2021 accounted for 3% of revenue.

GROSS PROFIT and GROSS MARGIN

  • Gross profit (GAAP) for the third quarter of 2022 was $114.2 million, a year-over-year increase of $11.5 million. Adjusted gross profit (non-GAAP) for the third quarter of 2022 was $114.4 million, a year-over-year increase of $10.6 million, or 10%.
  • Gross margin (GAAP) for the third quarter of 2022 was 56.9%, compared to 57.6% for the third quarter of 2021. Adjusted gross margin (non-GAAP) for the third quarter was 57.0%, compared to 58.3% in the 2021 period.
  • Gross profit (GAAP) for the first nine months of 2022 was $359.6 million, a year-over-year increase of $72.9 million. Adjusted gross profit (non-GAAP) for the first nine months of 2022 was $360.8 million, a year-over-year increase of $71.2 million, or 25%.
  • Gross margin (GAAP) for the first nine months of 2022 was 58.5%, compared to 59.3% for the first nine months of 2021. Adjusted gross margin (non-GAAP) for the first nine months of 2022 was 58.7%, compared to 59.8% in the first nine months of 2021.

OPERATING INCOME

  • Operating income (GAAP) for the third quarter of 2022 was $52.7 million, a year-over-year increase of $7.5 million. Adjusted operating income (non-GAAP) for the third quarter of 2022 was $58.2 million, a year-over-year increase of $1.2 million.
  • Operating income (GAAP) for the first nine months of 2022 was $175.8 million, a year-over-year increase of $46.0 million. Adjusted operating income (non-GAAP) for the first nine months of 2022 was $191.1 million, a year-over-year increase of $31.8 million, or 20%.

NET INCOME

  • Net income (GAAP) for the third quarter of 2022 increased to $40.4 million, a year-over-year increase of $6.9 million. Adjusted net income (non-GAAP) for the third quarter of 2022 was $44.4 million.
  • Net income (GAAP) for the first nine months of 2022 was $137.2 million, a year-over-year increase of $38.0 million. Adjusted net income (non-GAAP) for the first nine months of 2022 was $149.5 million, a year-over-year increase of $21.2 million, or 16%.

EARNINGS PER SHARE

  • Earnings per share (GAAP) for the third quarter of 2022 increased to $0.71 on a fully diluted basis, compared to $0.58 for the third quarter of 2021. Adjusted EPS (non-GAAP) for the third quarter of 2022 was $0.77 on a fully diluted basis, compared to $0.78 for the third quarter of 2021.
  • Earnings per share (GAAP) for the first nine months of 2022 increased to $2.39 on a fully diluted basis, compared to $1.74 for the first nine months of 2021. Adjusted EPS (non-GAAP) for the first nine months of 2022 increased to $2.61 on a fully diluted basis, an increase of 16% compared to $2.25 for the first nine months of 2021.

EBITDA

  • Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP financial measure, for the third quarter of 2022 increased to $58.7 million compared to $54.4 million for the third quarter of 2021. Adjusted EBITDA for the third quarter of 2022 was $57.9 million, compared to $60.5 million for the third quarter of 2021.
  • EBITDA for the first nine months of 2022 was $202.0 million, compared to $155.5 million for the first nine months of 2021, a year-over-year increase of 30%. Adjusted EBITDA for the first nine months of 2022 was $197.8 million, a year-over-year increase of $28.9 million, or 17%.

CASH

  • Our cash and cash equivalents at September 30, 2022 were $573.4 million, compared to $603.8 million at December 31, 2021.

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 2022

Our financial guidance for the fiscal year 2022 is based on expectations for our existing business and includes the financial impact of our 2021 acquisitions. This guidance also excludes the impact of potential additional acquisitions and future fluctuations in foreign currency exchange rates.

YEAR 2022 GUIDANCE:

  • Total reported revenue is expected to be in the range of $795-$805 million, compared to our previous guidance of $790-$810 million.
  • We are now guiding to overall revenue growth of 19%-20% as reported, compared to our previous guidance of 18%-21%. We are increasing our guidance for growth at constant currency to 24%-25%, and increasing our organic growth guidance to 21%-22%.
    • Our base business revenue, which excludes COVID-related revenue and inorganic acquisition revenue from 2021 acquisitions, is expected to grow by 33%-34%, an increase from our previous guidance of 31%-33%.
  • Gross margin is expected to be 57.5%-58.5% on both a GAAP and non-GAAP basis, consistent with our previous guidance.
  • Income from operations is expected to be in the range of $203-$207 million on a GAAP basis. Adjusted (non-GAAP) income from operations is expected to be in the range of $231-$235 million, compared to our previous guidance of $234-$239 million.
  • Net income is expected to be in the range of $158-$161 million on a GAAP basis. Adjusted (non-GAAP) net income is expected to be in the range of $181-$184 million, as compared to our previous guidance of $180-$184 million. Our current guidance reflects a tax rate of 19% on adjusted pre-tax income.
  • Fully diluted GAAP EPS is expected to be in the range of $2.76-$2.81. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $3.15-$3.20, as compared to our previous guidance of $3.13-$3.20.

Our non-GAAP guidance for the fiscal year 2022 excludes the following items:

  • $10.4 million estimated acquisition and integration expenses (including $1.3 million in cost of product revenue, $0.7 million in R&D, $8.2 million in SG&A and $0.3 million (Other income (expense)).
  • $27.0 million estimated intangible amortization expense in SG&A.
  • $1.8 million in amortization of debt issuance (Other income (expense)).
  • $9.1 million estimated Avitide acquisition related contingent consideration gain, primarily related to changes in interest rates.

Our non-GAAP guidance for the fiscal year 2022 includes:

  • An income tax increase of $7.5 million, representing the tax impact on acquisition and integration costs, intangible amortization and contingent consideration expense, and amortization of debt issuance costs.

All reconciliations of GAAP to adjusted (non-GAAP) guidance are detailed in the tables included later in this press release. 

About Repligen Corporation

Repligen Corporation is a global company that develops and commercializes highly innovative bioprocessing technologies and systems that enable 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 focus areas are Filtration, Chromatography, Process Analytics, Fluid Management and Proteins. Our corporate headquarters are located in Waltham, Massachusetts, with additional administrative and manufacturing operations worldwide. The majority of our manufacturing sites are located within the U.S. (California, Massachusetts, New Hampshire, New Jersey and New York), and we also have sites in Estonia, France, Germany, Ireland, the Netherlands and Sweden. For more information about the company, including Repligen news releases, see our website at http://www.repligen.com. Follow us on LinkedIn and Twitter.