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REPLIGEN CORP false 0000730272 0000730272 2021-07-27 2021-07-27

 

 

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 27, 2021

 

 

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 27, 2021, Repligen Corporation announced its financial results for the second quarter ended June 30, 2021. 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 27, 2021
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 27, 2021     By:  

/s/ Tony J. Hunt

      Tony J. Hunt
      President and Chief Executive Officer
EX-99.1 2 d124486dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO   

Repligen Corporation

41 Seyon Street

Building #1, Suite 100

Waltham, Massachusetts 02453

 

 

Repligen Reports Second Quarter 2021 Financial Results

and Updates Full Year 2021 Financial Guidance

 

   

Reported revenue was $163.0 million for the quarter, representing year-over-year growth of 86% and organic growth of 69%

 

   

Revenue guidance raised to $625-$645 million for full year 2021

 

   

Acquisition of hollow fiber innovator Polymem S.A. completed July 1, 2021

WALTHAM, Mass. – July 27, 2021 — Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its second quarter of 2021. Provided in this press release are financial highlights for the three- and six- month periods ended June 30, 2021, updates to our financial guidance for the fiscal year 2021 and access information for today’s webcast and conference call.

Tony J. Hunt, President and Chief Executive Officer said, “We delivered an outstanding second quarter and first half of the year for the Company, with strength across the board in all our franchises. During the second quarter, our filtration revenue more than doubled year-over-year. Orders related to COVID programs now extend well into 2022, while our base business revenues continued to grow at greater than 30% for the second quarter in a row. We finished the quarter by announcing the acquisition of Polymem S.A., an expert and innovator in hollow fiber technology, immediately expanding our capacity and strengthening our core capabilities. Based on this continued momentum, we are updating our 2021 financial guidance to reflect revenue growth in the range of 71%-76% and healthy margin expansion.”

Financial Highlights for the Second Quarter 2021

 

   

Revenue increased by $75.5 million in the second quarter, or 86% year-over-year, as reported and 69% organically, to $163.0 million

 

   

Our base business accounted for 66% of revenue and grew 35% year-over-year

 

   

COVID-related sales accounted for 27% of revenue

 

   

Revenue from acquisitions made in 2020 accounted for 7% of revenue

 

   

GAAP gross margin and adjusted gross margin (non-GAAP) each increased to 62.0%

 

   

GAAP operating margin was 29.6%, an increase of 730 bps

 

   

Adjusted (non-GAAP) operating margin was 34.7%, an increase of 550 bps

 

   

GAAP fully diluted EPS increased to $0.64 compared to $0.30 for the second quarter of 2020

 

   

Adjusted fully diluted EPS (non-GAAP) increased to $0.79 compared to $0.42 for the second quarter of 2020

 

1


Financial Highlights for the First Half of 2021

 

   

Revenue increased by 87% year-over-year as reported and 69% organically, to $305.8 million

 

   

GAAP gross margin increased to 60.2%, and adjusted gross margin (non-GAAP) was 60.8%

 

   

GAAP operating margin was 27.7%, an increase of 840 bps

 

   

Adjusted (non-GAAP) operating margin was 33.5%, an increase of 660 bps

 

   

GAAP fully diluted EPS increased to $1.16 compared to $0.48 for the first half of 2020

 

   

Adjusted fully diluted EPS (non-GAAP) increased to $1.47 compared to $0.74 for the first half of 2020

Financial Details for the Second Quarter and First Half of 2021

REVENUE

 

   

Total revenue for the second quarter of 2021 increased to $163.0 million compared to $87.5 million for the second quarter of 2020, a year-over-year gain of 86% as reported and 81% at constant currency, with organic growth of 69%.

 

   

Total revenue for the first half of 2021 increased to $305.8 million compared to $163.6 million for the first half of 2020, a year-over-year gain of 87% as reported and 82% at constant currency, with organic growth of 69%.

GROSS PROFIT and GROSS MARGIN

 

   

Gross profit (GAAP) for the second quarter of 2021 was $101.0 million, a year-over-year increase of $50.4 million. Adjusted gross profit (non-GAAP) for the second quarter of 2021 was $101.1 million, a year-over-year increase of $50.1 million.

 

   

Gross margin (GAAP) for the second quarter of 2021 increased to 62.0%, compared to 57.9% for the second quarter of 2020. Adjusted gross margin (non-GAAP) for the second quarter increased to 62.0%, compared to 58.2% in the second quarter of 2020.

 

   

Gross profit (GAAP) for the first half of 2021 was $184.1 million, a year-over-year increase of $89.4 million. Adjusted gross profit (non-GAAP) for the first half of 2021 was $185.8 million, a year-over-year increase of $90.4 million.

 

   

Gross margin (GAAP) for the first half of 2021 increased to 60.2%, compared to 57.9% for the first half of 2020. Adjusted gross margin (non-GAAP) for the first half of 2021 increased to 60.8%, compared to 58.3% in the first half of 2020.

OPERATING INCOME

 

   

Operating income (GAAP) for the second quarter of 2021 was $48.2 million, a year-over-year increase of $28.7 million.

 

   

Adjusted operating income (non-GAAP) for the second quarter of 2021 was $56.6 million, a year-over-year increase of $31.1 million or 122%.

 

   

Operating income (GAAP) for the first half of 2021 was $84.6 million, a year-over-year increase of $53.2 million.

 

   

Adjusted operating income (non-GAAP) for the first half of 2021 was $102.3 million, a year-over-year increase of $58.4 million or 133%.

 

2


NET INCOME

 

   

Net income (GAAP) for the second quarter of 2021 was $36.2 million, compared to $15.9 million for the second quarter of 2020.

 

   

Adjusted net income (non-GAAP) for the second quarter of 2021 was $44.9 million, a year-over-year increase of $22.4 million or 99%.

 

   

Net income (GAAP) for the first half of 2021 was $65.7 million, compared to $25.7 million for the first half of 2020.

 

   

Adjusted net income (non-GAAP) for the first half of 2021 was $83.6 million, a year-over-year increase of $44.4 million or 113%.

EARNINGS PER SHARE

 

   

Earnings per share (GAAP) for the second quarter of 2021 were $0.64 on a fully diluted basis, compared to $0.30 for the second quarter of 2020.

 

   

Adjusted EPS (non-GAAP) for the second quarter of 2021 increased to $0.79 on a fully diluted basis, compared to $0.42 for the second quarter of 2020.

 

   

Earnings per share (GAAP) for the first half of 2021 increased to $1.16 on a fully diluted basis, compared to $0.48 for the first half of 2020.

 

   

Adjusted EPS (non-GAAP) for the first half of 2021 increased to $1.47 on a fully diluted basis, compared to $0.74 for the first half of 2020.

EBITDA

 

   

EBITDA, a non-GAAP financial measure, for the second quarter of 2021 was $56.4 million, compared to $25.3 million for the second quarter of 2020.

 

   

Adjusted EBITDA for the second quarter of 2021 was $59.7 million, a year-over-year increase of $32.3 million or 118%.

 

   

EBITDA for the first half of 2021 was $101.1 million, compared to $43.9 million for the first half of 2020.

 

   

Adjusted EBITDA for the first half of 2021 was $108.4 million, a year-over-year increase of $59.8 million or 123%.

CASH

 

   

Our cash and cash equivalents at June 30, 2021 were $734.3 million, an increase of $17.0 million from $717.3 million at December 31, 2020.

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 2021

Our financial guidance for the fiscal year 2021 is based on expectations for our existing business and includes the financial impact of our 2020 acquisitions of ARTeSYN Biosolutions Holdings Ireland Limited, Non-Metallic Solutions, Inc. and Engineered Molding Technologies LLC, and our acquisition of Polymem S.A. (which closed on July 1, 2021). The guidance below excludes the impact of potential additional acquisitions and future fluctuations in foreign currency exchange rates.

 

3


FISCAL YEAR 2021 GUIDANCE:

 

   

Total revenue is expected to be in the range of $625-$645 million, an increase from our previous guidance of $565-$590 million. We expect overall revenue growth of 71%-76% and 68%-73% at constant currency. Organic growth is expected to be in the range of 57%-62%, an increase from our previous guidance of 42%-49%.

 

   

Revenue from COVID-related programs is expected to be in the range of $170-$180 million, an increase from our previous guidance of $140-$160 million.

 

   

Gross margin is expected to be in the range of 59%-60% on both a GAAP and non-GAAP basis, compared to our previous guidance of 57%-58%.

 

   

Income from operations is expected to be in the range of $156-$161 million on a GAAP basis, an increase from our previous guidance of $127-$133 million. Adjusted (non-GAAP) income from operations is expected to be in the range of $192-$197 million, an increase from our previous guidance of $156-$162 million.

 

   

Net income is expected to be in the range of $118-$122 million on a GAAP basis, an increase from our previous guidance of $95-$99 million. Adjusted (non-GAAP) net income is expected to be in the range of $154-$158 million, an increase from our previous guidance of $126-$130 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 $2.08-$2.15, an increase from our previous guidance of $1.67-$1.74. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $2.71 -$2.78, an increase from our previous guidance of $2.21-$2.28.

Our non-GAAP guidance for the fiscal year 2021 excludes the following items:

 

   

$12.8 million estimated acquisition and integration expenses; $0.3 million in cost of product revenue, $1.2 million in research and development (R&D) and $11.3 million in selling, general and administrative expenses (SG&A).

 

   

Expected inventory step-up charges of $1.6 million related to acquisitions, reflected in cost of product revenue.

 

   

$21.3 million estimated intangible amortization expense, reflected in SG&A expenses.

 

   

$11.2 million of non-cash interest expense related to our convertible debt notes, reflected in other income (expense).

Our non-GAAP guidance for the fiscal year 2021 includes:

 

   

An income tax increase of $10.9 million, representing the tax impact of acquisition and integration costs, inventory step-up changes, intangible amortization and non-cash interest.

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

 

4


Conference Call

Repligen will host a conference call and webcast today, July 27, 2021, at 8:30 a.m. EDT, to discuss second quarter 2021 financial results and corporate developments. The conference call will be accessible by dialing toll-free (844) 274-3999 for domestic callers or (412) 317-5607 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 10158519.

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 R&D 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 and loss on conversion of debt 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.

 

5


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. Our primary customers are biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide. 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 Jersey and New York), and outside of the U.S. we have sites in Estonia, France, Germany, Ireland, the Netherlands and Sweden.

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 Non-Metallic Solutions, ARTeSYN Biosolutions and Polymem S.A. businesses, 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,” “projected,” “estimated,” “planned,” or “could” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they 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 Non-Metallic Solutions, ARTeSYN Biosolutions and Polymem S.A. 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, 2020 and the most recently filed Quarterly Report on Form-10-Q 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. Therefore, you should not rely on any of these forward-looking statements. These forward-looking statements reflect management’s current views, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions, and is based on only on information currently available to us. Repligen does not undertake to update, whether written or oral, any of these forward-looking statements to reflect a change in its views or events or circumstances, whether as a result of new information, future development or otherwise, 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,
 
     2021     2020     2021     2020  

Revenue:

        

Product revenue

   $ 162,920     $ 87,432     $ 305,657     $ 163,492  

Royalty and other revenue

     40       30       140       60  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     162,960       87,462       305,797       163,552  

Costs and expenses:

        

Cost of product revenue

     61,990       36,863       121,737       68,845  

Research and development

     8,389       4,336       16,001       9,038  

Selling, general and administrative

     44,341       26,726       83,436       54,226  
  

 

 

   

 

 

   

 

 

   

 

 

 
     114,720       67,925       221,174       132,109  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     48,240       19,537       84,623       31,443  

Investment income

     41       253       93       1,617  

Loss on conversion of debt

     (3     —         (4     —    

Interest expense

     (3,144     (3,004     (6,250     (5,980

Other income (expense), net

     (776     (766     (999     (384
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     44,358       16,020       77,463       26,696  

Income tax (benefit) provision

     8,125       159       11,780       1,020  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 36,233     $ 15,861     $ 65,683     $ 25,676  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 0.66     $ 0.30     $ 1.20     $ 0.49  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.64     $ 0.30     $ 1.16     $ 0.48  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     54,931,140       52,381,201       54,868,444       52,259,937  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     56,786,266       53,305,827       56,823,757       53,212,596  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Balance Sheet Data:    June 30,
2021
     December 31,
2020
 

Cash, cash equivalents and marketable securities

   $ 734,327      $ 717,292  

Working capital

     651,488        583,426  

Total assets

     2,015,965        1,902,887  

Long-term obligations

     80,554        54,781  

Accumulated earnings

     131,452        65,769  

Stockholders’ equity

     1,603,069        1,529,150  

 

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,
 
     2021      2020      2021      2020  

GAAP INCOME FROM OPERATIONS

   $ 48,240      $ 19,537      $ 84,623      $ 31,443  

ADJUSTMENTS TO INCOME FROM OPERATIONS:

           

Inventory step-up charges

     —          —          1,598        —    

Acquisition and integration costs

     3,218        2,134        5,769        4,687  

Intangible amortization

     5,161        3,874        10,323        7,752  
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED INCOME FROM OPERATIONS

   $ 56,619      $ 25,545      $ 102,313      $ 43,882  
  

 

 

    

 

 

    

 

 

    

 

 

 

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,
 
     2021     2020     2021     2020  

GAAP NET INCOME

   $ 36,233     $ 15,861     $ 65,683     $ 25,676  

ADJUSTMENTS TO NET INCOME:

        

Inventory step-up charges

     —         —         1,598       —    

Acquisition and integration costs

     3,218       2,134       5,769       4,687  

Intangible amortization

     5,161       3,874       10,323       7,752  

Loss on conversion of debt

     4       —         4       —    

Non-cash interest expense

     2,862       2,724       5,690       5,415  

Tax effect of non-GAAP charges

     (2,615     (2,085     (5,437     (4,262
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME

   $ 44,863     $ 22,508     $ 83,630     $ 39,268  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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,
 
     2021     2020     2021     2020  

GAAP NET INCOME PER SHARE - DILUTED

   $ 0.64     $ 0.30     $ 1.16     $ 0.48  

ADJUSTMENTS TO NET INCOME PER SHARE - DILUTED:

        

Inventory step-up charges

     —         —         0.03       —    

Acquisition and integration costs

     0.06       0.04       0.10       0.09  

Intangible amortization

     0.09       0.07       0.18       0.15  

Loss on conversion of debt

     0.00       —         0.00       —    

Non-cash interest expense

     0.05       0.05       0.10       0.10  

Tax effect of non-GAAP charges

     (0.05     (0.04     (0.10     (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME PER SHARE - DILUTED

   $ 0.79     $ 0.42     $ 1.47     $ 0.74  
  

 

 

   

 

 

   

 

 

   

 

 

 

Totals may not add due to rounding.

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

(Unaudited, amounts in thousands)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2021     2020     2021     2020  

GAAP NET INCOME

   $ 36,233     $ 15,861     $ 65,683     $ 25,676  

ADJUSTMENTS:

        

Investment Income

     (41     (253     (93     (1,617

Interest Expense

     3,144       3,004       6,250       5,980  

Tax Provision

     8,125       159       11,780       1,020  

Depreciation

     3,797       2,578       7,052       5,063  

Amortization(1)

     5,190       3,902       10,379       7,807  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     56,448       25,251       101,051       43,929  

OTHER ADJUSTMENTS:

        

Inventory step-up charges

     —         —         1,598       —    

Acquisition and integration costs

     3,218       2,134       5,769       4,687  

Loss on conversion of debt

     4       —         4       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED EBITDA

   $ 59,670     $ 27,385     $ 108,422     $ 48,616  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Includes amortization of milestone payments in accordance with GAAP of $28 and $55 for the three- and six-month periods,. respectively.

 

9


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,
 
     2021     2020     2021     2020  

GAAP COST OF SALES

   $ 61,990     $ 36,863     $ 121,737     $ 68,845  

ADJUSTMENT TO COST OF SALES:

        

Inventory step-up charges

     —         —         (1,598     —    

Acquisition and integration costs

     (83     (185     (164     (465

Intangible amortization

     —         (127     —         (254
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED COST OF SALES

   $ 61,907     $ 36,551     $ 119,975     $ 68,126  
  

 

 

   

 

 

   

 

 

   

 

 

 

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,
 
     2021     2020     2021     2020  

GAAP R&D

   $ 8,389     $ 4,336     $ 16,001     $ 9,038  

ADJUSTMENT TO R&D:

        

Acquisition and integration costs

     (361     (189     (581     (471
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED R&D

   $ 8,028     $ 4,147     $ 15,420     $ 8,567  
  

 

 

   

 

 

   

 

 

   

 

 

 

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,
 
     2021     2020     2021     2020  

GAAP SG&A EXPENSE

   $ 44,341     $ 26,726     $ 83,436     $ 54,226  

ADJUSTMENTS TO SG&A EXPENSE:

        

Acquisition and integration costs

     (2,774     (1,760     (5,024     (3,751

Intangible amortization

     (5,161     (3,747     (10,323     (7,498
  

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED SG&A EXPENSE

   $ 36,405     $ 21,219     $ 68,089     $ 42,977  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


REPLIGEN CORPORATION

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

 

(in thousands)    Twelve months ending
December 31, 2021
 
     Low End     High End  

GUIDANCE ON NET INCOME

   $ 118,000     $ 122,000  

ADJUSTMENTS TO GUIDANCE ON NET INCOME:

    

Acquisition and integration costs

     12,752       12,752  

Inventory Step-Up Costs

     1,598       1,598  

Anticipated pre-tax amortization of acquisition-related intangible assets

     21,317       21,317  

Non-cash interest expense

     11,238       11,238  

Loss on conversion of debt

     4       4  

Tax effect of intangible amortization and integration

     (10,931     (10,931

Guidance rounding adjustment

     22       22  
  

 

 

   

 

 

 

GUIDANCE ON ADJUSTED NET INCOME

   $ 154,000     $ 158,000  
  

 

 

   

 

 

 

Totals may not add due to rounding.

    

REPLIGEN CORPORATION

RECONCILIATION OF GAAP NET INCOME PER SHARE GUIDANCE TO

ADJUSTED (NON-GAAP) NET INCOME PER SHARE GUIDANCE

 

     Twelve months ending
December 31, 2021
 
     Low End     High End  

GUIDANCE ON NET INCOME PER SHARE - DILUTED

   $ 2.08     $ 2.15  

ADJUSTMENTS TO GUIDANCE ON NET INCOME PER SHARE - DILUTED:

 

 

Acquisition and integration costs

   $ 0.22     $ 0.22  

Inventory Step-Up Costs

   $ 0.03     $ 0.03  

Anticipated pre-tax amortization of acquisition-related intangible assets

   $ 0.37     $ 0.37  

Non-cash interest expense

   $ 0.20     $ 0.20  

Loss on conversion of debt

   $ 0.00     $ 0.00  

Tax effect of intangible amortization and integration

   ($ 0.19   ($ 0.19
  

 

 

   

 

 

 

GUIDANCE ON ADJUSTED NET INCOME PER SHARE - DILUTED

   $ 2.71     $ 2.78  
  

 

 

   

 

 

 

Totals may not add due to rounding.

# # #

 

11