Maravai Lifesciences Holdings, Inc. · NASDAQ:MRVI
Maravai Lifesciences — Q3 2023 Earnings Presentation
26 slides from Maravai Lifesciences's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Financial Results
NASDAQ: MRVI Q3 2023 Financial Results November 7, 2023
Slide 2: Agenda
Agenda 01 Welcome Deb Hart, Head of Investor Relations 02 Business Highlights Trey Martin, Chief Executive Officer 03 Financial Results Kevin Herde, Chief Financial Officer & Guidance 04 Q&A Session Trey Martin, Chief Executive Officer Kevin Herde, Chief Financial Officer Drew Burch, President, Nucl
Slide 3: Forward Looking Statements and Use of Non-GAAP Financial Measures
Forward Looking Statements and Use of Non-GAAP Financial Measures This presentation contains, and our 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. I
Slide 4: Business Highlights
Q3 2023 Business Highlights Trey Martin, Chief Executive Officer 4 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 5: Q3 2023 Results
Q3 2023 Results • NAP revenue of $51 M ADJUSTED EPS1 REVENUE ADJUSTED EBITDA1 $67 M $12 M ($0.01) • Base NAP revenue per share of $36 M2 • BST revenue of $16 M 1. Reconciliation provided on pages 24-26 2. Total NAP base business without CleanCap® COVID-19 vaccine related revenue 5 ©2023 Maravai Life
Slide 6: Maravai grew at an exceptional rate during the pandemic
Maravai grew at an exceptional rate during the pandemic Wateridge • Scaled manufacturing to meet extraordinary demand • Developed GMP capabilities and built four new facilities Nucleic Acid Production Flanders 1 & 2 • CleanCap® analogs used successfully for human trials and in regulatory accepted va
Slide 7: Cost re-alignment expected to result in at least $30 million annualized savings
Cost re-alignment expected to result in at least $30 million annualized savings 2024 • Workforce reduction of ANNUALIZED COST SAVINGS TARGET approximately 15% OF AT LEAST • Target savings: $23 M $30 M • Non-labor expense reductions • Target savings: $7 M 7 ©2023 Maravai LifeSciences. This document a
Slide 8: Organizational changes support strategy, will enable sustainable growth
Organizational changes support strategy, will enable sustainable growth and allow us to better serve our customers Maintain two reporting segments, reorganize Nucleic Acid Production, and streamline corporate shared services REPORTING SEGMENTS Nucleic Acid Production Segment Biologics Safety Testing
Slide 9: Enabling resources across the company
Enabling resources across the company TriLink’s Analytical Sciences Comprehensive Commercial Organization Center of Excellence (ASCE) Providing critical functional support and systems Centralized hub to drive innovation in nucleic acid support across all businesses analytical methodologies • Suppor
Slide 10: 2028 financial targets and priorities focused on top-line growth and margin expansion
2028 financial targets and priorities focused on top-line growth and margin expansion $700M+ revenue 40%+ adjusted EBITDA margin 2023 2028 Disciplined capital allocation Attractive EPS growth & free cash flow 10 ©2023 Maravai LifeSciences. This document and its contents are confidential and propriet
Slide 11: Ongoing Partnerships to drive long-term growth
Ongoing Partnerships to drive long-term growth 11 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 12: Q3 2023 awards and recognitions
Q3 2023 awards and recognitions 12 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 13: Positioned to deliver on our long-term objectives
Positioned to deliver on our long-term objectives Operating in attractive Driving future revenue Targeting margin markets: growth targets: expansion: • Pipeline progression for mRNA, gene • Leveraging established capabilities • Robust cost control and operational editing, cell and gene therapies and
Slide 14: Financial Results
Q3 2023 Financial Results Kevin Herde Chief Financial Officer 14 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 15: Q3 2023 financial overview
Q3 2023 financial overview Earnings Per Share ($)1,2,3 • GAAP Net Loss of $15.1 M4 Basic EPS Diluted EPS Adjusted EPS Q3 REVENUE • Adjusted EBITDA of $11.9 M5 $67 M ($0.05) ($0.05) ($0.01) • Adjusted EBITDA Margin of 18%5 1. Basic EPS (GAAP) equals Net Income attributable to our Class A shares divid
Slide 16: Remain in Solid Position to Fund Long-term Strategy
Remain in Solid Position to Fund Long-term Strategy Adjusted Free Cash Flow = $0.4 M in Q3 2023 (Adjusted EBITDA less Capital Expenditures) LONG-TERM CASH NET DEBT GROSS DEBT $580 M $534 M ($45 M) 16 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are
Slide 17: Q3 2023 business segment financials
Q3 2023 business segment financials Nucleic Acid Production ($M) Biologics Safety Testing ($M) REVENUE REVENUE $51 M $16 M • 77% of total Maravai revenue • 23% of total Maravai revenue • $17 M of Adjusted EBITDA1 • $11 M of Adjusted EBITDA1 • CleanCap® from COVID-19 = $15 M 1. Reconciliation provide
Slide 18: Updated 2023 guidance
Updated 2023 guidance Prior Guidance Updated Guidance Change (at mid-point) REVENUE $300 to $325 million $275 to $285 million ($32.5) million CLEANCAP® $65 million $61 million ($4) million COVID-19 REVENUE ADJUSTED EPS1 $0.04 to $0.08 per share ($0.01) to $0.01 per share ($0.06) per share ADJUSTED E
Slide 19: Other 2023 model assumptions
Other 2023 model assumptions • Interest expense, net of interest income, between $16 million and $18 million; • Depreciation and amortization between $40 million and $42 million; • Stock-based compensation, which we show as a reconciling item from GAAP to Non-GAAP EBITDA, to be $34 million to $36 mi
Slide 20: Closing Commentary
Q3 2023 Closing Commentary Trey Martin Chief Executive Officer 20 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 21: In closing – we continue to innovate and build our product portfolio
In closing – we continue to innovate and build our product portfolio z Continued innovation in biologics, Putting our cash flow to work with Building a strong foundation for mRNA, gene editing, and cell and investments to bolster our market long-term, sustainable growth of gene therapy, building our
Slide 22: Q&A
Q&A 22 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 23: Thank you
Thank you maravdali LifeSciences
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations Net (Loss) Income to Adjusted EBITDA This presentation contains financial measures that have not been calculated in accordance with accounting principles generally Three Months Ended Nine Months Ended In thousands accepted in the U.S. (GAAP). These non-GAAP measures include:
Slide 25: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted Net (Loss) Income and Adjusted Fully Diluted Earnings Per Share These non-GAAP measures are supplemental measures of Three Months Ended Nine Months Ended In thousands, except per share amounts operating performance that are not prepared in accordance with September
Slide 26: Explanatory notes to reconciliations
Explanatory notes to reconciliations 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 i
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