SAN DIEGO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Maravai LifeSciences Holdings, Inc. (Maravai) (NASDAQ: MRVI), a global provider of life science reagents and services to researchers and biotech innovators, today reported financial results for the second quarter ended June 30, 2024, together with other business updates.
Financial Highlights:
Partnerships and Innovation:
Environmental, Social and Governance:
Facilities Updates:
Awards and Recognitions:
“During the quarter Maravai made exciting progress against our strategic priorities, including the achievement of key production milestones at our new Flanders GMP facilities and the introduction of new products across all of our businesses,” said Trey Martin, Chief Executive Officer of Maravai. “Our balance sheet remains strong and we are well positioned to execute on both organic and inorganic opportunities to bolster our market position and provide our customers with novel solutions. We remain committed to building a strong foundation for long-term, sustainable growth and creating value for our shareholders.”
Revenue for the Second Quarter 2024 | ||||||||
Three Months Ended June 30, | ||||||||
(Dollars in 000’s) | 2024 | 2023 | Year-over-Year % Change | |||||
Nucleic Acid Production | $ | 58,483 | $ | 53,265 | 9.8 | % | ||
Biologics Safety Testing | 14,917 | 15,649 | (4.7) | % | ||||
Total Revenue | $ | 73,400 | $ | 68,914 | 6.5 | % |
Revenue for the Six Months Ended June 30, 2024 | ||||||||
Six Months Ended June 30, | ||||||||
(Dollars in 000’s) | 2024 | 2023 | Year-over-Year % Change | |||||
Nucleic Acid Production | $ | 104,499 | $ | 114,716 | (8.9) | % | ||
Biologics Safety Testing | 33,080 | 33,223 | (0.4) | % | ||||
Total Revenue | $ | 137,579 | $ | 147,939 | (7.0) | % |
Second Quarter 2024 Financial Results
Revenue for the second quarter was $73.4 million, representing a 6.5% increase over the same period in the prior year and was driven by the following:
Net loss and Adjusted EBITDA (non-GAAP) were $(14.5) million and $16.9 million, respectively, for the second quarter of 2024, compared to net loss and Adjusted EBITDA (non-GAAP) of $(11.9) million and $9.1 million, respectively, for the second quarter of 2023.
Six Months Ended June 30, 2024 Financial Results
Revenue for the six months ended June 30, 2024 was $137.6 million, representing a 7.0% decrease over the same period in the prior year and was driven by the following:
Net loss and Adjusted EBITDA (non-GAAP) were $(37.2) million and $24.7 million, respectively, for the six months ended June 30, 2024, compared to net loss and Adjusted EBITDA (non-GAAP) of $(13.3) million and $32.9 million, respectively, for the same period in the prior year.
Financial Guidance for 2024
Maravai’s financial guidance for the full year 2024 is based on expectations for its existing business and does not include the financial impact of potential new acquisitions, if any, or items that have not yet been identified or quantified. This guidance is subject to a number of risks, uncertainties and other factors, including those identified in “Forward-looking Statements” below.
Revenue expectations for 2024 remain in the range of $265.0 million to $285.0 million.
Adjusted EBITDA (non-GAAP) margins are now expected to be in the range of 20% to 22%.
As it relates to forward-looking Adjusted EBITDA margin, Maravai cannot provide guidance for the most directly comparable GAAP measure or a reconciliation of this non-GAAP financial measure because it is unable to provide a meaningful or accurate calculation or estimation of certain significant reconciling items without unreasonable effort.
MARAVAI LIFESCIENCES HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share amounts) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ | 73,400 | $ | 68,914 | $ | 137,579 | $ | 147,939 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 38,271 | 43,273 | 76,606 | 76,949 | |||||||||||
Selling, general and administrative | 40,556 | 35,377 | 81,441 | 74,048 | |||||||||||
Research and development | 5,284 | 4,194 | 10,316 | 8,339 | |||||||||||
Change in estimated fair value of contingent consideration | (1,195 | ) | (2,316 | ) | (1,195 | ) | (2,316 | ) | |||||||
Restructuring | (4 | ) | — | (1,216 | ) | — | |||||||||
Total operating expenses | 82,912 | 80,528 | 165,952 | 157,020 | |||||||||||
Loss from operations | (9,512 | ) | (11,614 | ) | (28,373 | ) | (9,081 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest expense | (11,939 | ) | (7,022 | ) | (22,803 | ) | (18,855 | ) | |||||||
Interest income | 7,086 | 6,791 | 14,296 | 12,836 | |||||||||||
Change in payable to related parties pursuant to the Tax Receivable Agreement | — | 101 | — | (1,335 | ) | ||||||||||
Other expense | (2,562 | ) | (1,620 | ) | (2,456 | ) | (1,452 | ) | |||||||
Loss before income taxes | (16,927 | ) | (13,364 | ) | (39,336 | ) | (17,887 | ) | |||||||
Income tax benefit | (2,435 | ) | (1,421 | ) | (2,164 | ) | (4,596 | ) | |||||||
Net loss | (14,492 | ) | (11,943 | ) | (37,172 | ) | (13,291 | ) | |||||||
Net loss attributable to non-controlling interests | (6,907 | ) | (5,402 | ) | (17,509 | ) | (6,683 | ) | |||||||
Net loss attributable to Maravai LifeSciences Holdings, Inc. | $ | (7,585 | ) | $ | (6,541 | ) | $ | (19,663 | ) | $ | (6,608 | ) | |||
Net loss per Class A common share attributable to Maravai LifeSciences Holdings, Inc., basic and diluted | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.15 | ) | $ | (0.05 | ) | |||
Weighted average number of Class A common shares outstanding, basic and diluted | 135,842 | 131,864 | 134,088 | 131,802 |
MARAVAI LIFESCIENCES HOLDINGS, INC. RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (Unaudited) (in thousands, except per share amounts) | |||||||||||||||
Net Loss to Adjusted EBITDA | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net loss | $ | (14,492 | ) | $ | (11,943 | ) | $ | (37,172 | ) | $ | (13,291 | ) | |||
Add: | |||||||||||||||
Amortization | 6,869 | 6,852 | 13,738 | 13,617 | |||||||||||
Depreciation | 5,556 | 2,815 | 10,342 | 4,895 | |||||||||||
Interest expense | 11,939 | 7,022 | 22,803 | 18,855 | |||||||||||
Interest income | (7,086 | ) | (6,791 | ) | (14,296 | ) | (12,836 | ) | |||||||
Income tax benefit | (2,435 | ) | (1,421 | ) | (2,164 | ) | (4,596 | ) | |||||||
EBITDA | 351 | (3,466 | ) | (6,749 | ) | 6,644 | |||||||||
Acquisition contingent consideration(1) | (1,195 | ) | (2,316 | ) | (1,195 | ) | (2,316 | ) | |||||||
Acquisition integration costs(2) | 1,224 | 3,466 | 3,722 | 5,930 | |||||||||||
Stock-based compensation(3) | 13,763 | 9,272 | 25,820 | 15,259 | |||||||||||
Merger and acquisition related expenses(4) | — | 371 | 30 | 3,662 | |||||||||||
Acquisition related tax adjustment(5) | 2,554 | 1,620 | 2,441 | 1,447 | |||||||||||
Tax Receivable Agreement liability adjustment(6) | — | (101 | ) | — | 1,335 | ||||||||||
Restructuring costs(7) | (8 | ) | — | 11 | — | ||||||||||
Other(8) | 228 | 231 | 632 | 914 | |||||||||||
Adjusted EBITDA | $ | 16,917 | $ | 9,077 | $ | 24,712 | $ | 32,875 |
Adjusted Net (Loss) Income and Adjusted Fully Diluted (Loss) Earnings Per Share | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net loss attributable to Maravai LifeSciences Holdings, Inc. | $ | (7,585 | ) | $ | (6,541 | ) | $ | (19,663 | ) | $ | (6,608 | ) | |||
Net loss impact from pro forma conversion of Class B shares to Class A common shares | (6,907 | ) | (5,402 | ) | (17,509 | ) | (6,683 | ) | |||||||
Adjustment to the provision for income tax(9) | 1,648 | 1,290 | 4,178 | 1,596 | |||||||||||
Tax-effected net loss | (12,844 | ) | (10,653 | ) | (32,994 | ) | (11,695 | ) | |||||||
Acquisition contingent consideration(1) | (1,195 | ) | (2,316 | ) | (1,195 | ) | (2,316 | ) | |||||||
Acquisition integration costs(2) | 1,224 | 3,466 | 3,722 | 5,930 | |||||||||||
Stock-based compensation(3) | 13,763 | 9,272 | 25,820 | 15,259 | |||||||||||
Merger and acquisition related expenses(4) | — | 371 | 30 | 3,662 | |||||||||||
Acquisition related tax adjustment(5) | 2,554 | 1,620 | 2,441 | 1,447 | |||||||||||
Tax Receivable Agreement liability adjustment(6) | — | (101 | ) | — | 1,335 | ||||||||||
Restructuring costs(7) | (8 | ) | — | 11 | — | ||||||||||
Other(8) | 228 | 231 | 632 | 914 | |||||||||||
Tax impact of adjustments(10) | (3,998 | ) | (2,514 | ) | (4,463 | ) | (8,183 | ) | |||||||
Net cash tax benefit retained from historical exchanges(11) | 216 | 371 | 568 | 834 | |||||||||||
Adjusted net (loss) income | $ | (60 | ) | $ | (253 | ) | $ | (5,428 | ) | $ | 7,187 | ||||
Diluted weighted average shares of Class A common stock outstanding | 254,380 | 250,976 | 253,202 | 251,437 | |||||||||||
Adjusted net (loss) income | $ | (60 | ) | $ | (253 | ) | $ | (5,428 | ) | $ | 7,187 | ||||
Adjusted fully diluted (loss) earnings per share | $ | 0.00 | $ | 0.00 | $ | (0.02 | ) | $ | 0.03 |
Explanatory Notes to Reconciliations
(1) | Refers to the change in estimated fair value of contingent consideration related to completed acquisitions. |
(2) | Refers to incremental costs incurred to execute and integrate completed acquisitions, and retention payments in connection with these acquisitions. |
(3) | Refers to non-cash expense associated with stock-based compensation. |
(4) | Refers to diligence, legal, accounting, tax and consulting fees incurred associated with acquisitions that were pursued but not consummated. |
(5) | Refers to non-cash expense associated with adjustments to the indemnification asset recorded in connection with the acquisition of MyChem, LLC (“MyChem”), which was completed in January 2022. |
(6) | Refers to the adjustment of the Tax Receivable Agreement liability primarily due to changes in Maravai’s estimated state apportionment and the corresponding change of its estimated state tax rate. |
(7) | Refers to restructuring costs (benefit) associated with the Cost Realignment Plan, which was implemented in November 2023. For the six months ended June 30, 2024, stock-based compensation benefit of $1.2 million related to forfeited stock awards in connection with the restructuring is included in the stock-based compensation line item. For the three months ended June 30, 2024, such amount was immaterial. |
(8) | For the three and six months ended June 30, 2024, refers to severance payments, inventory step-up charges and certain other adjustments in connection with the acquisition of Alphazyme, LLC (“Alphazyme”), which was completed in January 2023, and other non-recurring costs. For the three and six months ended June 30, 2023, refers to severance payments, legal settlement amounts, inventory step-up charges in connection with the acquisition of Alphazyme, certain working capital and other adjustments related to the acquisition of MyChem, and other non-recurring costs. |
(9) | Represents additional corporate income taxes at an assumed effective tax rate of approximately 24% applied to additional net loss attributable to Maravai LifeSciences Holdings, Inc. from the assumed proforma exchange of all outstanding shares of Class B common stock for shares of Class A common stock. |
(10) | Represents income tax impact of non-GAAP adjustments at an assumed effective tax rate of approximately 24% and the assumed proforma exchange of all outstanding shares of Class B common stock for shares of Class A common stock. |
(11) | Represents income tax benefits due to the amortization of intangible assets and other tax attributes resulting from the tax basis step up associated with the purchase or exchange of Maravai Topco Holdings, LLC units and Class B common stock, net of payment obligations under the Tax Receivable Agreement. |
Non-GAAP Financial Information
This press release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (GAAP). These non-GAAP measures include: Adjusted EBITDA and Adjusted fully diluted Earnings Per Share (EPS).
Maravai defines Adjusted EBITDA as net (loss) income before interest, taxes, depreciation and amortization and adjustments to exclude, as applicable: (i) fair value adjustments to acquisition contingent consideration; (ii) incremental costs incurred to execute and integrate completed acquisitions, and associated retention payments; (iii) non-cash expenses related to share-based compensation; (iv) expenses incurred for acquisitions that were pursued but not consummated (including legal, accounting and professional consulting services); (v) non-cash expense associated with adjustments to the carrying value of the indemnification asset recorded in connection with completed acquisitions; (vi) loss or (income) recognized during the applicable period due to changes in the tax receivable agreement liability; (vii) restructuring costs; (viii) severance payments; (ix) legal settlement amounts; and (x) inventory step-up charges in connection with completed acquisitions. Maravai defines Adjusted Net (Loss) Income as tax-effected earnings before the adjustments described above, and the tax effects of those adjustments. Maravai defines Adjusted Diluted EPS as Adjusted Net (Loss) Income divided by the diluted weighted average number of shares of Class A common stock outstanding for the applicable period, which assumes the proforma exchange of all outstanding units of Maravai Topco Holdings, LLC (paired with shares of Class B common stock) for shares of Class A common stock.
These non-GAAP measures are supplemental measures of operating performance that are not prepared in accordance with GAAP and that do not represent, and should not be considered as, an alternative to net (loss) income, as determined in accordance with GAAP.
Management uses these non-GAAP measures to understand and evaluate Maravai’s core operating performance and trends and to develop short-term and long-term operating plans. Management believes the measures facilitate comparison of Maravai’s operating performance on a consistent basis between periods and, when viewed in combination with its results prepared in accordance with GAAP, helps provide a broader picture of factors and trends affecting Maravai’s results of operations.
These non-GAAP financial measures have limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of Maravai’s results as reported under GAAP. Because of these limitations, they should not be considered as a replacement for net (loss) income, as determined by GAAP, or as a measure of Maravai’s profitability. Management compensates for these limitations by relying primarily on Maravai’s GAAP results and using non-GAAP measures only for supplemental purposes. The non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
Conference Call and Webcast
Maravai’s management will host a conference call today at 2:00 p.m. PT/ 5:00 p.m. ET to discuss its financial results for the second quarter of fiscal year 2024. Approximately 10 minutes before the call, dial (888) 596-4144 or (646) 968-2525 and reference Maravai LifeSciences, Conference ID 4292675. The call will also be available via live or archived webcast on the "Investors" section of the Maravai web site at https://investors.maravai.com/.
About Maravai
Maravai is a leading life sciences company providing critical products to enable the development of drug therapies, diagnostics and novel vaccines and to support research on human diseases. Maravai’s companies are leaders in providing products and services in the fields of nucleic acid synthesis and biologics safety testing to many of the world's leading biopharmaceutical, vaccine, diagnostics, and cell and gene therapy companies.
For more information about Maravai LifeSciences, visit www.maravai.com.
Forward-looking Statements
This press release contains, and Maravai’s officers and representatives may from time-to-time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release which are not strictly historical statements constitute forward-looking statements, including, without limitation, statements regarding Maravai’s financial guidance for 2024; Maravai’s effect on the acceleration of transformational research in RNA therapeutics and discovery; Applied DNA's near-term demand for critical starting material for mRNA production; growth opportunities, including both organic and inorganic growth; and future innovations, constitute forward-looking statements and are identified by words like “believe,” “expect,” “see,” “project,” “may,” “will,” “should,” “seek,” “anticipate,” or “could” and similar expressions.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current beliefs, expectations and assumptions regarding the future of Maravai’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of management’s control. Maravai’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause Maravai’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
Any forward-looking statements made in this release are based only on information currently available to management and speak only as of the date on which it is made. Maravai undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Last Trade: | US$5.37 |
Daily Change: | -0.06 -1.10 |
Daily Volume: | 2,059,804 |
Market Cap: | US$761.680M |
December 05, 2024 November 07, 2024 November 07, 2024 September 24, 2024 August 28, 2024 |
Compass Therapeutics is a clinical-stage, oncology-focused biopharmaceutical company developing proprietary antibody-based therapeutics to treat multiple human diseases. The company's scientific focus is on the relationship between angiogenesis, the immune system, and tumor growth...
CLICK TO LEARN MORETerns Pharmaceuticals is a clinical-stage biopharmaceutical company developing a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity. Terns’ pipeline contains three clinical stage development programs including GLP-1 receptor...
CLICK TO LEARN MOREEnd of content
No more pages to load
COPYRIGHT ©2023 HEALTH STOCKS HUB