Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — Q4 2024 Earnings Presentation
40 slides from Emergent Biosolutions's earnings presentation, Mar 4, 2025
Slide 1: Q4 2024 & Full Year Financial Results
Q4 2024 & Full Year Financial Results March 3, 2025 1
Slide 2: Safe Harbor Statement/Trademarks
Safe Harbor Statement/Trademarks This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the future performance of the Company or any of
Slide 3: Today's Topics
Today’s Topics Presenter Topic Joe Papa Multi-Year Transformation Progress Update President and CEO Rich Lindahl Q4 2024 Highlights and FY Financial Results EVP, CFO and Treasurer FY 2025 Guidance Joe Papa 2025 Business Outlook & Catalysts to Enable Growth President and CEO Q&A 3
Slide 4: Multi-Year Transformation Progress Update
Multi-Year Transformation Progress Update Joe Papa President and Chief Executive Officer 4
Slide 5: For more than 25 years, Emergent has prepared those entrusted with protecting communities
For more than 25 years, Emergent has prepared those entrusted with protecting their communities against health threats. We are a leading public health company that delivers protective and life-saving solutions to communities across the world. Our mission is a simple one: to protect and save lives. 5
Slide 6: Our Multi-Year Transformation Plan to Create Value
02 Our Multi-Year Transformation Plan STEP 03 to Create Value Transform • 2026+ strategic transformation for long-term growth and profitability STEP • Build synergistic verticals to further leverage EBS infrastructure 02 Turnaround - EXECUTING • Focus on profitable growth and improved operating perf
Slide 7: Executed All Priority Stabilization Objectives
Executed All Priority Stabilization Objectives Entered Turnaround Phase Ahead of Schedule Stabilized balance sheet & substantially reduced debt • Refinanced capital structure & extended maturity Delivered NARCAN® Nasal Spray as opioid crisis continues • New Term Loan & Revolving Credit Facility • In
Slide 8: Critical Focus Areas & Goals for 2025
Critical Focus Areas & Goals for 2025 Strong profit follow through from 2024 • Higher net income • Increased gross margin % • Increased adjusted EBITDA margin % Operating cash flow growth versus 2024 & strong positive free cash flow Rebuilding product pipeline with R&D Target further optimization of
Slide 9: Q4 2024 & FY Financial Results
Q4 2024 & FY Financial Results Rich Lindahl Executive Vice President Chief Financial Officer and Treasurer 9
Slide 10: Key Financial Performance Metrics Q4 2024 vs. Q4 2023
Key Financial Performance Metrics Q4 2024 vs. Q4 20231 ($ in millions) Total Revenues Adjusted EBITDA2 $277 $195 $21 +$18 $3 3 Q4 2023 Q4 2024 Q4 2023 Q4 2024 2 Total Segment Adjusted Gross Margin (% & $) Operating Expenses (R&D and SG&A) $119 + 800 bps $(49) 40% R&D $29 32% SG&A $70 $86 $76 SG&A $9
Slide 11: Key Business Highlights | Strong Full Year Results
Key Business Highlights | Strong Full Year Results1 ($ in millions) Total Revenues Adjusted EBITDA2 $1,049 $1,044 $183 +$205 2023 2024 $(22) 2023 2024 Total Segment Adjusted Gross Margin (% & $)2 Operating Expenses (R&D and SG&A) $457 $480 $(101) +$121 $379 $112 R&D $336 +1,200 bps 45% $71 R&D 33% S
Slide 12: Notable Revenue Elements Full Year 2024 vs. Full Year 2023
Notable Revenue Elements Full Year 2024 vs. Full Year 20231 ($ in millions) 2023 $1,049 $1,044 2024 $945 $909 (4)% $498 $399 (20)% $277 $188 66% $167 $139 $92 $94 $105 (26)% $79 $26 $30 NARCAN 3 Anthrax MCM Smallpox Other Total Product Total Contracts & Total Revenue MCM Products Sales, net 2 Bioser
Slide 13: Significant Achievements in 2024 | Completed Ahead of Schedule
Significant Achievements in 2024 | Completed Ahead of Schedule Streamlined Business & Completed $117M of Asset Sales • $75M for the sale of RSDL® to SERB • $35M for the sale of Baltimore-Camden facility to Bora, plus significant headcount reduction • $7M for the sale of an underutilized warehouse in
Slide 14: Significantly Improved Financial Metrics in 2024
Significantly Improved Financial Metrics in 20241 ($ in millions) Turned Around Operating Cash Flow Material Debt Reduction5 Gross $868 Debt + $265 $59 $757 Net $700 Debt4 $601 $(168) $(156) (19)% (21)% $(206) 20232 20242 2023 Year End 2024 Year End 3 Strong Liquidity & Net Leverage Profile Improved
Slide 15: 2024 Full Year Normalized Revenue Summary
2024 Full Year Normalized Revenue Summary1 2024 Revenue includes $115 million removed from base entering 2025 ($ in millions) $1,044 ~ $930 $(50) $(65) RSDL® Camden 2 Full-Year Revenues 2024 Janssen Settlement Divestitures Normalized Revenues 2024 Agreement 1. All financial information incorporated
Slide 16: 2025 Forecast – Updated as of 3/3/2025
2025 Forecast – Updated as of 3/3/2025 METRIC ($ in millions) Full Year 2024 Actual Full Year 2025 Forecast Total revenues $1,043.6 $750 - $850 Net income (loss) $(190.6) $16 - $66 Adjusted net income (loss)1 $(12.1) $20 - $70 Adjusted EBITDA1 $183.1 $150 - $200 Total segment adjusted gross margin %
Slide 17: Key 2025 Guidance Summary
Key 2025 Guidance Summary • Entering turnaround phase of multi-year plan ahead of schedule • 2025 revenue focuses on core business across MCM, NARCAN® Nasal Spray 4mg & KLOXXADO® Nasal Spray 8 mg • Strong profit follow through from 2024, generated through restructuring actions and improved utilizati
Slide 18: 2025 Business Outlook & Catalysts to Enable Growth
2025 Business Outlook & Catalysts to Enable Growth Joe Papa President and Chief Executive Officer 18
Slide 19: 2025 Business Outlook – Commercial Products
2025 Business Outlook – Commercial Products Opioid Epidemic Remains a Priority in U.S. & Canada Brand leading NARCAN® Nasal Spray 4 mg (OTC) remains a critical tool; KLOXXADO® Nasal Spray 8 mg (Rx) is an additional naloxone solution In 2024, NARCAN® continued • NARCAN® remains market leader across i
Slide 20: 2025 Business Outlook – Medical Countermeasures
2025 Business Outlook – Medical Countermeasures Critical to U.S. and Int’l Public Health Preparedness and Response Strong ongoing bipartisan support with focus on safety, security and protecting lives Product Contract Terms • Increasingly dangerous world with ever-growing threats • Four high-priorit
Slide 21: 2025 Catalysts to Enable Growth
2025 Catalysts to Enable Growth We will invest to maintain our leadership position and stimulate sustainable growth through internal capabilities and business development, while upholding quality, ethics and compliance excellence. • Mpox public health threat - ACAM2000® Emergency Use Listing with th
Slide 22: Q&A
Q&A Preparedness Today, Safer Tomorrow. We prepare for today’s public health challenges, and tomorrow’s threats 2 2 22
Slide 23: End Notes: Non-GAAP Financial Measures
End Notes: Non-GAAP Financial Measures In this presentation, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States (“G
Slide 24: End Notes: Non-GAAP Financial Measures (Continued)
End Notes: Non-GAAP Financial Measures (Continued) We have included the definitions of Segment Gross Margin and Segment Gross Margin %, which are GAAP financial measures, below in order to more fully define the components of certain non-GAAP financial measures presented in this presentation. We defi
Slide 25: Appendix
Appendix 25
Slide 26: Notable Revenue Elements Q4 2024 vs. Q4 2023
Notable Revenue Elements Q4 2024 vs. Q4 20231 $277 ($ in millions) $249 Q4 2023 Q4 2024 $195 $182 (30)% (27)% $111 $112 $77 $65 565% (41)% $33 $21 (71)% $12 $14 $7 $7 $7 $6 NARCAN Anthrax MCM Smallpox Other Total Product Total Contracts & Total 3 MCM Products Sales, net 2 Bioservices Grants Revenue
Slide 27: Products | Future Growth Drivers in U.S. and OUS
Products | Future Growth Drivers in U.S. and OUS Product Current Markets Short-Term (By Year End 2025) Mid- / Long-Term (2026+) International partnership ventures; market Naloxone line extensions; kitting NARCAN® Nasal Spray 4 mg US, CAN expansion opportunities KLOXXADO® Nasal Spray 8 mg US Focus on
Slide 28: Commercial Products – Future Growth Drivers
Commercial Products – Future Growth Drivers KLOXXADO® Nasal Spray 8 mg Potential international partnership Naloxone line extensions; naloxone product ventures; market expansion kitting opportunities 28
Slide 29: Reconciliation of Net Loss to Adjusted Net Income (Loss) - Q4 2024 vs. Q4 2023
Reconciliation of Net Loss to Adjusted Net Income (Loss) - Q4 2024 vs. Q4 2023 Three Months Ended December 31, (unaudited, $ in millions) 2024 2023 Source Net loss $ (31.3) $ (49.5) Adjustments: Non-cash amortization charges $ 18.5 $ 22.0 Amortization of intangible assets (IA), Other Income Changes
Slide 30: Reconciliation of Net Loss to Adjusted Net Loss – YTD 2024 vs. YTD 2023
Reconciliation of Net Loss to Adjusted Net Loss – YTD 2024 vs. YTD 2023 Twelve Months Ended December 31, (unaudited, $ in millions) 2024 2023 Source Net loss $ (190.6) $ (760.5) Adjustments: Non-cash amortization charges $ 72.5 $ 86.8 Amortization of intangible assets (IA), Other Income Changes in f
Slide 31: Reconciliation of Net Loss to Adjusted EBITDA - Q4 2024 vs. Q4 2023
Reconciliation of Net Loss to Adjusted EBITDA - Q4 2024 vs. Q4 2023 Three Months Ended December 31, (unaudited, $ in millions) 2024 2023 Net loss $ (31.3) $ (49.5) Adjustments: Depreciation & amortization $ 26.0 $ 29.6 Income taxes 3.7 (5.0) Total interest expense, net 14.2 21.0 Inventory step-up pr
Slide 32: Reconciliation of Net Loss to Adjusted EBITDA – YTD 2024 vs. YTD 2023
Reconciliation of Net Loss to Adjusted EBITDA – YTD 2024 vs. YTD 2023 Twelve Months Ended December 31, (unaudited, $ in millions) 2024 2023 Net loss $ (190.6) $ (760.5) Adjustments: Depreciation & amortization $ 108.8 $ 125.1 Income taxes 47.7 29.3 Total interest expense, net 69.0 80.9 Impairments 2
Slide 33: Reconciliations of Total Revenues to Total Segment Revenues and Gross Margin - Q4
APPENDIX Reconciliations of Total Revenues to Total Segment Revenues and of Segment and Total Segment Gross Margin and Gross Margin % to Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % - Q4 2024 vs. Q4 2023 Three Months Ended December 31, 2024 Commercial (unaudited, in mi
Slide 34: Reconciliations of Total Revenues to Total Segment Revenues and Gross Margin - YTD 2024
APPENDIX Reconciliations of Total Revenues to Total Segment Revenues and of Segment and Total Segment Gross Margin and Gross Margin % to Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % – YTD 2024 vs. YTD 2023 Year Ended December 31, 2024 Commercial Contracts & (unaudited,
Slide 35: Reconciliations of Total Revenues to Total Segment Revenues and Gross Margin - YTD 2023
APPENDIX Reconciliations of Total Revenues to Total Segment Revenues and of Segment and Total Segment Gross Margin and Gross Margin % to Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % – YTD 2024 vs. YTD 2023 Year Ended December 31, 2023 Commercial Contracts & (unaudited,
Slide 36: Reconciliations of Total Debt to Net Debt and Leverage Ratio to Net Leverage Ratio
Reconciliations of Total Debt to Net Debt1 and Leverage Ratio to Net Leverage Ratio As of As of (unaudited, $ in millions) December 31, 2024 December 31, 2023 Total debt $ 700.0 $ 868.4 Less: Cash and cash equivalents 99.5 111.7 Net debt $ 600.5 $ 756.7 Twelve months ended Twelve months ended (unaud
Slide 37: Reconciliation of Total Revenues to Normalized Revenues
Reconciliation of Total Revenues to Normalized Revenues For the Year Ended (unaudited, $ in millions) December 31, 2024 Total Revenue $ 1,043.6 Less: Janssen Settlement Agreement revenue 50.0 Less: RSDL and Camden divestitures revenue 64.6 Normalized Revenues $ 929.0 37
Slide 38: Reconciliation of Net Income to Adjusted Net Income – Full Year 2025 Forecast
Reconciliation of Net Income to Adjusted Net Income – Full Year 2025 Forecast ($ in millions) 2025 Full Year Forecast Source Net income $16 - $66 Adjustments: Amortization of intangible assets and Other Income Non-cash amortization charges $65 (Expense) Inventory step-up provision 5 Cost of MCM Prod
Slide 39: Reconciliation of Net Income to Adjusted EBITDA – Full Year 2025 Forecast
Reconciliation of Net Income to Adjusted EBITDA – Full Year 2025 Forecast ($ in millions) 2025 Full Year Forecast Net income $16 - $66 Adjustments: Depreciation & amortization $100 Income taxes 34 Total interest expense, net 55 Inventory step-up provision 5 Settlement charges, net (10) Contingent co
Slide 40: Reconciliations of Forecasted Total Revenues to Forecasted Segment Revenues and Gross Margin
Reconciliations of Forecasted Total Revenues to Forecasted Total Segment Revenues and of Forecasted Segment and Total Segment Gross Margin and Gross Margin % to Forecasted Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % - Full Year 2025 Forecast ($ in millions) 2025 Full
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