Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — Q3 2021 Earnings Presentation
25 slides from Emergent Biosolutions's earnings presentation, Nov 4, 2021
Slide 1: 3Q21 Investor Update
November 4, 2021 3Q21 Investor Update
Slide 2: Introduction
Introduction Robert G. Burrows Vice President, Investor Relations Officer 3Q 2021 Investor Update2
Slide 3: Safe Harbor Statement
Safe Harbor Statement INTRODUCTION This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including, without limitation, our financial guidance and related projections
Slide 4: Non-GAAP Financial Measures / Trademarks
Non-GAAP Financial Measures / Trademarks 3Q 2021 Investor Update4 INTRODUCTION NON-GAAP FINANCIAL MEASURES This presentation contains financial measures (Adjusted Net Income, Adjusted Net Income Per Diluted Share, Adjusted EBITDA (Earnings Before Depreciation and Amortization, Interest and Taxes), a
Slide 5: Agenda
Agenda 3Q 2021 Investor Update5 INTRODUCTION Topic Speaker State of the Company • Bob Kramer, CEO Financial Results: 3Q21 vs. 3Q20 • Rich Lindahl, CFO Financial Guidance: FY2021 • Rich Lindahl, CFO Q&A • Bob Kramer, CEO • Rich Lindahl, CFO • Other members of senior management, as needed
Slide 6: State of the Company
State of the Company Robert G. Kramer President and Chief Executive Officer 3Q 2021 Investor Update6
Slide 7: State of the Company highlights
• As of 9/30/21, we have contributed over 100M dose equivalents of a COVID vaccine for global distribution. • We secured key ongoing commitments from the USG in support of smallpox and anthrax preparedness. • Our Narcan® Nasal Spray continues to perform well above expectations, helping ensure naloxo
Slide 8: Creating A Customer-Centered Organization
Creating A Customer-Centered Organization 3Q 2021 Investor Update8 STATE OF THE COMPANY GOVERNMENT (Medical Countermeasures or MCM) [led by Paul Williams] Three businesses that align with our customers and markets COMMERCIAL (NARCAN, Travel Health) [led by Doug White] CDMO (Contract Development & Ma
Slide 9: Financial Results
Financial Results Richard S. Lindahl Executive Vice President and Chief Financial Officer 3Q 2021 Investor Update9
Slide 10: 3Q21 Summary Points Demonstrating Business Strength
3Q21 Summary Points Demonstrating Business Strength 3Q 2021 Investor Update10 FINANCIAL RESULTS • Medical countermeasures platform reinforced with ACAM2000 and AV7909 contract option exercises for continued procurement • Restart of operations at Bayview site, facilitating the global mandate for JNJ’
Slide 11: Reconciliation of Revised 2021 Total Revenue Forecast vs. Prior Range
Reconciliation of Revised 2021 Total Revenue Forecast of $1.7B-$1.8B vs. Prior Forecasted Range 3Q 2021 Investor Update11 FINANCIAL RESULTS • The CIADM termination reduces the revenue to be realized under BARDA Task Order but also accelerates recognition of deferred revenue on the 9/30/21 balance sh
Slide 12: P&L – Key Performance Metrics 3Q21 vs. 3Q20
1. See the Appendix for a definition of non-GAAP terms and reconciliation tables. P&L – Key Performance Metrics 3Q21 vs. 3Q20 3Q 2021 Investor Update12 FINANCIAL RESULTS $329.0 $385.2 ($3.3) 168.1 ($19.3) $119.0 Total Revenues Adjusted EBITDA1 Adjusted Net Income (Loss)1 Adjusted Net Income (Loss) P
Slide 13: CDMO Metrics at 3Q21
1. New business is defined as initial value of contracts secured as well as incremental value of existing contracts modified within the indicated period and is incorporated into Backlog. 2. Backlog is defined as estimated remaining contract value as of the indicated period pursuant to signed contrac
Slide 14: CDMO Metrics Trends
1. New business is defined as initial value of contracts secured as well as incremental value of existing contracts modified within the indicated period and is incorporated into Backlog. 2. Backlog is defined as estimated remaining contract value as of the indicated period pursuant to signed contrac
Slide 15: Balance Sheet & Cash Flow Metrics
Balance Sheet & Cash Flow Metrics 3Q 2021 Investor Update15 FINANCIAL RESULTS Cash $403.8 Accounts Receivable $254.6 Net Debt Position1,2 $454.2 As of September 30, 2021 1. Debt amount indicated on the Company’s balance sheet is net of unamortized debt issuance costs of $9.1M. 2. Net Debt is calcula
Slide 16: 2021 Forecast – Revised as of 11/04/2021
2021 Forecast – Revised as of 11/04/2021 3Q 2021 Investor Update16 FINANCIAL RESULTS Metric Revised Forecast Previous Forecast (07/29/21) Total revenues1 $1,700 - $1,800 $1,700 - $1,900 -- NARCAN Nasal Spray -- Anthrax vaccines -- ACAM2000 -- CDMO services $400 - $420 $250 - $260 $200 - $220 $600 -
Slide 17: Revised 2021 Forecast: Key Considerations
Revised 2021 Forecast: Key Considerations 3Q 2021 Investor Update17 FINANCIAL RESULTS • We have incorporated the financial implications of our mutual agreement to terminate the CIADM agreement and related task orders. • The expected range of gross margin is now 54% to 56% taking into account both ye
Slide 18: Key Takeaways
Key Takeaways 3Q 2021 Investor Update18 FINANCIAL RESULTS • Core PRODUCTS BUSINESS remains stable and growing across BOTH government and commercial channels • CDMO SERVICE BUSINESS experiencing continued scaling up of production and capabilities across the entire facilities network • R&D PIPELINE pr
Slide 19: Q&A
Q&A 3Q 2021 Investor Update19
Slide 20: Appendix
APPENDIX 3Q 2021 Investor Update20
Slide 21: FY2021 Financial Forecast Considerations
FY2021 Financial Forecast Considerations 3Q 2021 Investor Update21 APPENDIX Revised Considerations • Gross margin reflects the impact of the Q3 2021 performance as well as expectations for the remainder of the year. • CDMO services revenue reflects the impact of the mutual agreement with HHS to end
Slide 22: Reconciliation of Net Income to Adjusted Net Income – 3Q21 vs. 3Q20
Reconciliation of Net Income to Adjusted Net Income – 3Q21 vs. 3Q20 3Q 2021 Investor Update22 APPENDIX ($ in millions, except per share amounts) Three Months Ended September 30, 2021 2020 Source Net income (loss) ($32.7) $39.5 Adjustments: + Non-cash amortization charges 15.4 15.9 Intangible Asset A
Slide 23: Reconciliation of Net Income to Adjusted Net Income – 2021 Forecast
Reconciliation of Net Income to Adjusted Net Income – 2021 Forecast 3Q 2021 Investor Update23 APPENDIX ($ in millions) Full Year Forecast 2021F Source Net income $260-$295 Adjustments: + Non-cash amortization charges 64 Intangible Asset Amortization, Other Income + Changes in fair value of contingen
Slide 24: Reconciliation of Net Income to Adjusted EBITDA – 3Q21 vs. 3Q20
Reconciliation of Net Income to Adjusted EBITDA – 3Q21 vs. 3Q20 3Q 2021 Investor Update24 APPENDIX ($ in millions) Three Months Ended September 30, 2021 2020 Net income (loss) ($32.7) $39.5 Adjustments: + Depreciation & amortization 32.6 28.8 + Provision for (benefit from) income taxes (12.8) 15.5 +
Slide 25: Reconciliation of Net Income to Adjusted EBITDA – 2021 Forecast
Reconciliation of Net Income to Adjusted EBITDA – 2021 Forecast 3Q 2021 Investor Update25 APPENDIX ($ in millions) Full Year Forecast 2021F Net income (loss) $260-$295 Adjustments: + Depreciation & amortization 127 + Provision for income taxes 76-91 + Total interest expense, net 33 + Changes in fair
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