Maravai Lifesciences Holdings, Inc. · NASDAQ:MRVI
Maravai Lifesciences — Q3 2022 Earnings Presentation
26 slides from Maravai Lifesciences's earnings presentation, Nov 2, 2022
Slide 1: Q3 2022 Financial Results
Q3 2022 Financial Results (Nasdaq: MRVI) November 2, 2022
Slide 2: Today's Agenda
Today’s Agenda Welcome Financial Results & Guidance 01 03 Deb Hart, Head of Investor Relations Kevin Herde, Chief Financial Officer Business Highlights & Update Q&A Session 02 Carl Hull, Executive Chairman and 04 Carl Hull, Executive Chairman and Interim CEO Interim CEO Kevin Herde, Chief Financial
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 & Update
Business Highlights & Update Carl Hull Executive Chairman and Interim CEO
Slide 5: Q3 2022: Strong balance sheet to drive long-term growth strategy
Q3 2022: Strong balance sheet to drive long-term growth strategy REVENUE ADJUSTED EBITDA1 ADJUSTED EPS1 ADJUSTED FREE CASH FLOW $191M $133M $0.37 per share $119M Record cash balance of $617M (+$67M q/q) provides opportunities for strategic capital deployment plans 5 1. Reconciliations provided on pa
Slide 6: Solid performance through nine months
Solid performance through nine months Biologic Safety Testing Business1 Base Nucleic Acid Production Business1 Nine-month Up 4% Revenue • Adjusted EBITDA2 of y/y $508M Up 21% • Adjusted EBITDA margin y/y of 75% $678M up 19% y/y Continue to build on strong customer foundation, expand customer relatio
Slide 7: Launched new product to support increasing mRNA therapeutic development
Launched new product to support increasing mRNA therapeutic development First available GMP-grade N1-Methyl-Pseudouridine-5’-Triphosphate Leverages our quality High demand due to its Addresses Helps enhance systems and GMP incorporation in COVID- customers’ needs to customers’ unique capabilities 19
Slide 8: Continued expansion of NAP customer base, from R&D to Phase 2 and beyond
Continued expansion of NAP customer base, from R&D to Phase 2 and beyond +29% y/y 600 464 Our product and service offerings scale +61% y/y with our customers as they mature into mRNA GMP 273 manufacturing 170 +28% y/y 53 68 CleanCap Reagent Customers CleanCap mRNA Discovery GMP mRNA Customers Custom
Slide 9: Facilities expansion remains on track to drive base business
Facilities expansion remains on track to drive base business • Passed BARDA audit and commenced billing for reimbursement under DOD grant • Partial Phase 1 occupancy in early Q1 2023 and Phase 2 occupancy 1H 2023 Flanders • Allows for expansion of small molecule platform and adds GMP API manufacturi
Slide 10: COVID-19 CleanCap outlook
COVID-19 CleanCap outlook Main attributable changes ▪ Slow uptake of new bivalent boosters EXPECTED 2023 COVID ▪ No binding commitments or forecasts from our major CLEANCAP REVENUE customers at this time $100 M ▪ Anticipate customers to carry forward existing raw material inventory into early 2023 ▪
Slide 11: Innovating and scaling offerings in Biologics Safety Testing
Innovating and scaling offerings in Biologics Safety Testing Supporting Building the most comprehensive catalog Launch of pivotal high-growth markets of highest quality Retrovirus MockV kit • Cell and gene therapy products & services to • Vaccines expected in late 2022 meet customer needs • Biologic
Slide 12: Financial Results & Guidance
Financial Results & Guidance Kevin Herde Chief Financial Officer
Slide 13: Q3 2022 financial overview
Q3 2022 financial overview Income from GAAP Net Income ($M)1 operations $117M $132 $100 Operating margin 61% R&D spend Q3 2021 Q3 2022 >$5M (~$2M in Q3’21) 13 1. GAAP –based net income prior to amounts attributable to non-controlling interests
Slide 14: Q3 2022 adjusted EBITDA and adjusted EBITDA margin
Q3 2022 adjusted EBITDA and adjusted EBITDA margin 2 Adjusted EBITDA ($M)1 Adjusted EBITDA Margin $155 $133 76% 69% Q3 2021 Q3 2022 Q3 2021 Q3 2022 14 1. Adjusted EBITDA reconciliation provided on pages 24-26
Slide 15: Q3 2022 earnings per share
Q3 2022 earnings per share Earnings Per Share ($)1,2,3 $0.37 $0.34 $0.34 1 Basic Diluted Adjusted Fully Diluted 1. Basic EPS is Net Income attributable to our Class A shares divided by the weighted average outstanding Class A shares 2. Diluted EPS begins with Basic EPS, adjusted for Net Income and w
Slide 16: Q3 2022 balance sheet and cash flow highlights
Q3 2022 balance sheet and cash flow highlights ADJUSTED FREE CASH AS OF LONG-TERM DEBT CASH FLOW 9/30/22 $617M $540M $119M (Adjusted EBITDA less Capital Expenditures1) 1. Capital expenditure represents: (i) purchases of property and equipment which are included in cash flows from investing activitie
Slide 17: Q3 2022 business segment financial results
Q3 2022 business segment financial results Nucleic Acid Production Biologics Safety Testing 79% adjusted 77% adjusted EBITDA margin 91% of total EBITDA margin 9% of total revenue1 revenue1 $127M COVID CleanCap revenue $134M ($131M in Q3’21) adjusted $13M adjusted EBITDA Continued China weakness EBIT
Slide 18: FY & Q4 2022 guidance
FY & Q4 2022 guidance FY 2022 Q4 2022 Change Prior Guidance Updated Guidance Guidance (at Midpoint) REVENUE $880M to $910M $880M to $890M -$10M $207M CleanCap $600M to $620M $600M to $605M -$7M $126M COVID-19 REVENUE ADJUSTED EBITDA $640M to $660M $650M to $660M +$5M $147M $1.70 to $1.80 per $1.76 t
Slide 19: Other 2022 model assumptions
Other 2022 model assumptions • Adjusted fully diluted EPS is based on the assumption that all Class B shares are converted to Class A shares, which results in a forecasted fully diluted share count of ~255-256 million for the full year of 2022. • Additionally, our adjusted fully diluted EPS, includi
Slide 20: Closing Commentary
Closing Commentary Carl Hull Executive Chairman and Interim CEO
Slide 21: Moving forward – focus on base business as long-term growth and value driver
Moving forward – focus on base business as long-term growth and value driver • Capabilities, customer interest and market momentum put us in an excellent position to build on nucleic acid production business • Biologic Safety Testing business expected to bounce back to market growth levels in 2023 •
Slide 22: Q&A
Q&A Q&A
Slide 23: Thank you!
Thank you! ir@maravai.com
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations Net Income to Adjusted EBITDA in thousands Three Months Ended Nine Months Ended September 30, September 30, 2021 2021 2022 (as adjusted)* 2022 (as adjusted)* Net income $ 99,653 $ 132,177 $ 403,234 $ 342,139 Add: Amortization 6,254 4,604 18,033 14,685 Depreciation 1,857 1,79
Slide 25: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted Net Income and Adjusted Net Income per Diluted Share Three Months Ended Nine Months Ended September 30, September 30, 2021 2021 2022 (as adjusted)* 2022 (as adjusted)* Net income attributable to Maravai LifeSciences Holdings, Inc. $ 44,469 $ 53,962 $ 182,571 $ 126,2
Slide 26: Explanatory notes to reconciliations
Explanatory notes to reconciliations (1) Refers to the change in fair value of performance payments related to the acquisition of MyChem, LLC (“MyChem”), which was completed in January 2022. (2) Refers to incremental costs incurred to execute and integrate completed acquisitions, and retention payme
Maravai LifeSciences Holdings — Q3 2022 Earnings Presentation on 6ix