Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — Q2 2023 Earnings Presentation
28 slides from Emergent Biosolutions's earnings presentation, Aug 8, 2023
Slide 1: Q2 2023 Financial Results Update
Q2 2023 Financial Results Update August 8, 2023
Slide 2: Introduction
PROPRIETARY AND CONFIDENTIAL 2Q2 2023 Update Introduction Matt Hartwig Senior Director, Media Relations
Slide 3: Forward-looking statements
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 our business strategy, future operations
Slide 4: Non-GAAP financial measures
This presentation contains financial measures (Adjusted Net Loss, Adjusted Net Loss per Diluted Shares, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted Gross Margin, Adjusted Gross Margin %, Adjusted Revenues, and Adjusted Cost of Sales) that are considered
Slide 5: Agenda
Agenda 5Q2 2023 Update INTRODUCTION Topic(s)PresenterItem • Sharpened Focus on Products Business • Focus and Priorities Haywood Miller Interim CEO 1 • Key Messages • Q2 2023 vs. Q2 2022 • YTD 2023 • FY 2023 Guidance • Q3 2023 Forecast Rich Lindahl EVP, CFO and Treasurer 2 Q&A3
Slide 6: State of the Company
PROPRIETARY AND CONFIDENTIALQ2 2023 Update State of the Company Haywood Miller Interim Chief Executive Officer 6
Slide 7: Sharpened Focus on Products Business
Sharpened Focus on Products Business 7Q2 2023 Update STATE OF THE COMPANY • Recent strategic milestones in Products business help strengthen financial position • Board and senior management have conducted an in-depth review of overall business and strategic direction to ensure sustainability and pat
Slide 8: Focus and Priorities
Focus and Priorities 8Q2 2023 Update STATE OF THE COMPANY • Take decisive actions to strengthen Emergent’s financial position • Meet current demands for our products, including OTC launch of NARCAN Nasal Spray • Deliver quality products for our current customer base and maintain the manufacturing st
Slide 9: Financials
9Q1 2023 Investor Update Rich Lindahl Executive Vice President and Chief Financial Officer 2 Update Financials
Slide 10: Key Messages
Key Messages 10Q2 2023 Update FINANCIALS • Several clear positives during the quarter • Travel Health divestiture • $120M ACAM2000 contract with USG • Successful amendment to secured credit facility + maturity extension to May 2025 • Accelerated momentum in NARCAN sales (US PIP + Canada) • Strong Q2
Slide 11: Key Financial Performance Metrics Q2 2023 vs. Q2 2022
Q 2 20 22 Key Financial Performance Metrics Q2 2023 vs. Q2 20221 11Q2 2023 Update Total Revenues Adjusted EBITDA2 Adjusted Net Loss Per Diluted Share2 Adjusted Net Loss2 $242.7 $337.9 $0. 00 $(1.06) FINANCIALS $0.0 $55.8 $0. 0 $(53.5) ($ IN M ILL ION S, EXCEP T P ER SHARE AM OUN TS) Q2 20 23 Q2 2022
Slide 12: Notable Revenue Elements Q2 2023 vs. Q2 2022
Notable Revenue Elements Q2 2023 vs. Q2 20221 12Q2 2023 Update FINANCIALS ($ IN M ILL ION S, EXCEP T P ER SHARE AM OUN TS) 1. All financial information incorporated within this presentation is unaudited. 3. Product sales, net are reported net of variable consideration including returns, rebates, who
Slide 13: Key Financial Performance Metrics Q2 2023 vs. Q2 2022
Q 2 20 22 Key Financial Performance Metrics Q2 2023 vs. Q2 2022 13Q2 2023 Update R&D $ --- R&D Margin %1 SG&A $ --- SG&A Margin %2 Adjusted Corporate Gross Margin3 Corporate Gross Margin $49.8 $26.0 FINANCIALS $81.1 $91.4 28% 42% ($ IN M ILL ION S) Q2 20 23 28% 43% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2
Slide 14: Segment Reporting Q2 2023 vs. Q2 2022
Q 2 20 22 Segment Reporting Q2 2023 vs. Q2 20221 14Q2 2023 Update Revenue Adjusted Gross Margin2 $ --- Adjusted Gross Margin2 % Adjusted Gross Margin2 $ --- Adjusted Gross Margin2 % Revenue $237.2 $302.2 FINANCIALS $147.5 $169.6 ($ IN M ILL ION S) Q2 20 23 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2
Slide 15: Balance Sheet & Cash Flow Metrics
Balance Sheet & Cash Flow Metrics 15Q2 2023 Update FINANCIALS As of June 30, 2023 For the Six Months Ended June 30, 2023 $88.6C A S H $290.1A C C O U N T S R E C E I V A B L E $909.3T O T A L D E B T $820.7N E T D E B T 1 , 2 $(298.4)O P E R A T I N G C A S H F L O W $27.6C A P I T A L E X P E N D I
Slide 16: 2023 Forecast – Updated as of 08/08/2023
2023 Forecast – Updated as of 08/08/2023 16Q2 2023 Update FINANCIALS 2. See the Appendix for a definition of non-GAAP terms and reconciliation tables.
Slide 17: 2023 Forecast – Key Assumptions
2023 Forecast – Key Assumptions 17Q2 2023 Update FINANCIALS Revenues and profits in 2023 are expected to be weighted towards the second half of the year • Total Revenues — Revised, reflecting ongoing strength in NARCAN, offset by reduced near term expectations across other products and services. • A
Slide 18: Summary
Summary 18Q2 2023 Update FINANCIALS • Strong second quarter results • Delivered many important milestones • Adapting business to focus on products and serve existing customers • Strengthening quality and compliance across the organization • Taking decisive action to better align costs with customer
Slide 19: Q&A
PROPRIETARY AND CONFIDENTIAL 19Q2 2023 Update Q&A
Slide 20: Appendix
EMERGENT Appendix Q2.2023 Update 20
Slide 21: Reconciliation of Net Loss to Adjusted Net Loss – Q2 2023 vs. Q2 2022
Reconciliation of Net Loss and Net Loss per Diluted Share to Adjusted Net Income Loss and Adjusted Net Loss per Diluted Share – Q2 2023 vs. Q2 2022 21Q2 2023 Update APPENDIX
Slide 22: Reconciliation of Net Loss to Adjusted Net Loss – FY 2023 Forecast
Reconciliation of Net Loss to Adjusted Net Loss – FY 2023 Forecast 22Q2 2023 Update APPENDIX
Slide 23: Reconciliation of Net Loss to Adjusted EBITDA – Q2 2023 vs. Q2 2022
Reconciliation of Net Loss to Adjusted EBITDA – Q2 2023 vs. Q2 2022 23Q2 2023 Update APPENDIX
Slide 24: Reconciliation of Net Loss to Adjusted EBITDA – FY 2023 Forecast
Reconciliation of Net Loss to Adjusted EBITDA – FY 2023 Forecast 24Q2 2023 Update APPENDIX
Slide 25: Reconciliation of Total Revenues to Adjusted Revenues – Q2 2023 vs. Q2 2022
Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – Q2 2023 vs. Q2 2022 25Q2 2023 Update APPENDIX
Slide 26: Reconciliation of Total Revenues to Adjusted Revenues – FY 2023 Forecast
Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – FY 2023 Forecast 26Q2 2023 Update APPENDIX
Slide 27: Reconciliation of Segment Level Total Revenues to Adjusted Revenues
Reconciliation of Segment Level (Products and Services) Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – Q2 2023 vs. Q2 2022 27Q2 2023 Update APPENDIX
Slide 28: www.emergentbiosolutions.com
www.emergentbiosolutions.com
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