Inotiv, Inc. · NASDAQ:NOTV
Inotiv — Bioanalytical Systems — H.C. Wainwright Investment Conference September 2020
22 slides from Inotiv's conference presentation, Sep 16, 2020
Slide 1: H.C. Wainwright Investment Conference September 2020
H.C. Wainwright Investment Conference September 2020
Slide 2: Forward-looking statements
Forward - looking statements This presentation includes forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward - looking sta
Slide 3: Company overview
Company overview • BASi , now doing business as Inotiv • Public company since November 1997 • Listed on Nasdaq stock exchange (BASI) • Fiscal 2017, company began a new strategic plan 3
Slide 4: New strategic plan
New strategic plan • Becoming the preferred, “solutions - oriented” contract research organization (CRO) • Reinvention to become a contemporary company • Improve profitability and cash flow 4
Slide 5: Becoming the preferred, solutions-oriented CRO
Becoming the preferred, “solutions - oriented” CRO • Many biotech firms and clients are seeking solutions - oriented, full service partners to assist in research and product development • By expanding our services across the complete drug discovery & development continuum through internal growth and
Slide 6: Reinvention to a contemporary company
Reinvention to a contemporary company Focusing on: • Becoming a partnered, comprehensive drug discovery & development organization • Providing a superlative client experience • Enriching internal expertise and capabilities to span the drug discovery continuum — ranging from small to large molecule t
Slide 7: A contracted drug discovery & development organization
A contracted drug discovery & development organization Optimization Lead Se l ect i on Preclinical Devel o pm e n t I I I III Drug Discovery Clinical Development • Toxicology • Med Device Toxicology/Surgical Models • Histopathology (+ GLP) • Pathology (+ GLP) • Drug Metabolism & Pharmacokinetics (+
Slide 8: Steps to reinvention
Steps to reinvention x Started with BASi platform x Internally added new services and capacity 8 x Development of platform and infrastructure for support services and business development x Added three acquisitions for capacity and additional services x Culturally aligned with our entrepreneurial cl
Slide 9: Internal timeline of strategic plan
Internal timeline of strategic plan 9 FY 2017 FY 2018 FY 2019 FY 2020 A New Strategic Direction * Develop longer term strategy * Understand market opportunities & potential acquisitions * Focus on creating the best employee experience to reduce turnover and support recruiting efforts * Strategic tho
Slide 10: Timeline of acquisitions and building blocks over past three years
Timeline of acquisitions and “building blocks” over past three years • A group of small, niche service providers were brought together to fill a void created by consolidation within the contract research industry: GLP Toxicology GLP Bioanalysis Discovery In Vivo and In Vitro Development and Reproduc
Slide 11: Management team
Management team 11 Team Member Title Joined Company Robert Leasure , Jr. Chief Executive Officer, President and Director 2017 John Sagartz, DVM, Ph.D., DACVP Chief Strategy Officer and Director July 2018 Stewart Jacobson, DVM, DACVP Senior VP Pathology October 2019 Scott Daniels, Ph.D. Senior VP DMP
Slide 12: Improve profitability
Improve profitability • Accretive and scalable investments • Internal growth plans to leverage existing direct fixed cost • Take advantage of purchasing opportunities • Reduce business development and customer - acquisition costs as a percentage of revenue • Reduce corporate overhead as a percentage
Slide 13: Recent accomplishments
Recent accomplishments • Managing through coronavirus pandemic and maintaining contracted services • Name change and branding strategy implemented • Growing client base and backlog • Recruiting, building team and maintaining low employee turnover • Internally developing and investing discovery stage
Slide 14: Recent accomplishments — continued
Recent accomplishments — continued • Significant upgrades in all facilities, including major expansion in Evansville completed in March 2020 • Integration and improvements of recent acquisitions • Focus on developing project management team for multi - site projects • Continued focus on building cli
Slide 15: Quarterly growth trends
Quarterly growth trends -$500,000 $1,500,000 $3,500,000 $5,500,000 $7,500,000 $9,500,000 $11,500,000 $13,500,000 $15,500,000 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Services revenue growth Basi Baseline $ 4.9M SWL Baseline $ 3.2M GB Baseline $1
Slide 16: Book to bill ratio by year — services only
Book to bill ratio by year — services only Engaged business development team Focused on enhancing client experience Developing infrastructure for additional internal growth - 0.50 1.00 1.50 FY 2017 FY 2018 FY 2019 FYTD Jun 2020 16
Slide 17: Financial results overview
Financial results overview FY 2017 FY 2018 FY 2019 Nine Months Ended June 30, 2019 Nine Months Ended June 30, 2020 Revenues $ 24,242,000 $ 26,346,000 $ 43,616,000 $ 28,830,000 $ 44,695,000 Net Income (loss) * $ 884,000 $ ( 194) $ (790,000) $ (1,080,000) $ (2,893,000) Adjusted EBITDA $ 2,822,000 $ 2,
Slide 18: Growth financed with debt, stock and seller financing
Growth financed with debt, stock and seller financing • Acquisitions have met specific needs for opportunities for future financial and operational improvements and accretive sales growth • New services and capacity improvements have been added with capital expenditure investments of $13.6 million f
Slide 19: Shares outstanding
Shares outstanding • As of June 30, 2020, the Company had 10,963,675 common shares outstanding • Additionally, as of June 30, 2020, there were approximately 751,000 options outstanding, of which 314,000 were exercisable • As of August 31, 2020, the Company’s average daily traded share volume for the
Slide 20: Price history
Price history ‘$600 a - . x a w
Slide 21: Non-GAAP to GAAP Reconciliation
Non - GAAP to GAAP Reconciliation This presentation contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States ( GAA P). The non - GAAP financial measures are Adjusted EBITDA for the fiscal years ended September 30, 2017, 2018
Slide 22: Slide 22
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