Inotiv, Inc. · NASDAQ:NOTV
Inotiv — Bioanalytical Systems — Investor Presentation (March 2021)
22 slides from Inotiv's investor presentation, Mar 9, 2021
Slide 1: Company Presentation March 2021
Company Presentation March 2021
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 • Bioanalytical Systems, Inc., doing business as Inotiv, is a growing contract research organization (“CRO”) focused on delivering superior client service to the world’s leading drug development companies and medical research organizations. • We provide a comprehensive suite of high
Slide 4: Inotiv's Comprehensive CRO Service Offering
Inotiv’s Comprehensive CRO Service Offering 4 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 • Drug Metabolism & Pharmacokinetics (+ GLP TK & PK Analysis) • Mechanistic Pharmacology & Tox
Slide 5: Accomplished New Senior Leadership
William Pitchford – Chief Human Resources Officer ▪ 35+ years of years of human resources experience ▪ Prior companies: Ford Motor Company, Rio Tinto Alcan Corporation and Wabash National Corporation. Accomplished New Senior Leadership 5 Beth Taylor, Chief Financial Officer ▪ 30+ years of experience
Slide 6: Reinventing BASI - Key Elements of New Strategy
Reinventing BASI - Key Elements of New Strategy • Focusing on becoming the preferred, “solutions - oriented” CRO • Implementing growth initiatives to achieve scale and optimally serve our clients > Investments in strategic acquisitions > Investments in internal capacity, people, services, capabiliti
Slide 7: Becoming the Preferred, Solutions-Oriented CRO
Becoming the Preferred, “Solutions - Oriented” CRO • Many biopharma firms and clients are seeking solutions - oriented, full - service partners to assist in research and product development • Cultural alignment with our emerging biopharma entrepreneurial client base • By expanding our expertise and
Slide 8: Acquisition Building Blocks – Bringing Additional Capacity and Services
8 Development and Reproduction • Juvenile Assessments • Fertility • Embryonic Development Surgical Models • Invasive Approaches • Wound Healing • Medical Devices • Imaging 2017 Base July 2018 May 2019 Dec. 2019 Discovery In Vivo and In Vitro • Pharmacology • Toxicology • Drug Metabolism • Pathology
Slide 9: Inotiv's Centers of Excellence
9 Inotiv’s Centers of Excellence Gaithersburg, MD Leased property 2 Buildings 40,000 Sq. Ft. Fort Collins, CO Owned property 1 building + Unoccupied Lot 24,000 Sq. Ft. Lease additional 13,000 Sq. Ft. Maryland Heights, MO Leased property 1 building 50,000 Sq. Ft. 20,000 Sq. Ft. unoccupied West Lafaye
Slide 10: Internal Investments to Drive Organic Growth
Internal Investments to Drive Organic Growth • Increased internal capacity and upgraded facilities – > Capital investments of $14.7 million from FY 2017 through FY 2020 > Evansville facility - annual capacity expanded from $13 million to $27 million • Infrastructure – enhancements to client services
Slide 11: Levers to Improve Profitability
Levers to Improve Profitability • Accretive and scalable investments • Internal growth plans to leverage existing direct fixed cost • Take advantage of purchasing opportunities • Reduce business development expenses and lower client - acquisition costs as a percentage of revenue • Reduce corporate o
Slide 12: Premium Growth in an Industry with Favorable Tailwinds
Premium Growth in an Industry with Favorable Tailwinds We believe we can grow faster than the broader CRO market due to our: • Focus on rapidly growing emerging biopharma (versus large pharma) o Significant, increasing R&D spend for developing new molecules and therapies; the science, technology and
Slide 13: Diverse Client Base and Significant Exposure to High Growth Emerging Biopharma
Diverse Client Base and Significant Exposure to High Growth Emerging Biopharma 13 96% 4% Emerging Biopharma Traditional Big Pharma FY’20 Awards – Emerging Biopharma 44% 56% Top 15 Clients All Other Clients FY’20 Awards - Top 15 Clients None of our clients contribute >10% of revenue Of our top 100 cl
Slide 14: Quarterly Growth Trends
Quarterly Growth Trends $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 BASi - Services Revenue Growth Basi Baseline $ 4.9M SWL B
Slide 15: Book to Bill Ratio and Backlog Trends by Period
15 Book to Bill Ratio and Backlog Trends by Period $17.1 $27.4 $43.8 $35.7 $45.3 FY'18 FY'19 FY'20 1Q'20 1Q'21 Backlog ($ millions) +27% CAGR +60% 0.79x 0.94x 1.07x 1.26x 1.16x FY'17 FY'18 FY'19 FY'20 1Q'21 Book to Bill Ratio (services only) Engaged business development team Focused on enhancing cli
Slide 16: Summary of Investment Thesis
Summary of Investment Thesis • New leadership team aligned with shareholders , successfully implementing a strategy to transform the business • Building a comprehensive suite of CRO solutions , ranging from small to large molecule therapies to medical devices • Delivering a superior client experienc
Slide 17: Ten Recent Accomplishments
Ten Recent Accomplishments 1. Managing through coronavirus pandemic and maintaining contracted services 2. Name change and branding strategy implemented 3. Growing client base and backlog 4. Recruiting, building team and maintaining low employee turnover 5. Internally developing and investing in dis
Slide 18: Appendix
Appendix
Slide 19: Financial Results Overview
Year over Year Quarter over Quarter 19 Financial Results Overview FY 2018 FY 2019 FY 2020 Q1 2020 Q1 2021 Revenues 26,346,000$ 43,616,000$ 60,469,000$ 12,918,000$ 17,885,000$ Net Income * (193)$ (790,000)$ (4,685,000)$ (1,426,000)$ (366,000)$ Adjusted EBITDA 2,424,000$ 2,834,000$ 2,548,000$ 481,000$
Slide 20: 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 $14.7 million f
Slide 21: Internal Timeline of Strategic Plan since Change in Leadership in 2017
Internal Timeline of Strategic Plan since Change in Leadership in 2017 21 FY 2018 FY 2019 FY 2020 FY 2021 *Develop longer term strategy *Growth in toxicology business model *Opened new capacity in Evansville and Gaithersburg *Initiating additional internal facility expansion projects *Understand mar
Slide 22: 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 princi ple s in the United States (GAAP). The non - GAAP financial measures are Adjusted EBITDA for the fiscal years ended September 30, 2018, 2019
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