Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — Q1 2023 Earnings Presentation
30 slides from Emergent Biosolutions's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Financial Results Update
Q1 2023 Financial Results Update May 9, 2023
Slide 2: Introduction
Introduction Bob Burrows Vice President, Investor Relations Q1 2023 Investor Update PROPRIETARY AND CONFIDENTIAL 2
Slide 3: Safe Harbor Statement/Trademarks
INTRODUCTION Safe Harbor Statement/Trademarks 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 Compa
Slide 4: Non-GAAP Financial Measures
INTRODUCTION Non-GAAP Financial Measures This presentation contains financial measures (Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Shares, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted Gross Margin, Adjusted Gross Margin %, Adjuste
Slide 5: Agenda
INTRODUCTION Agenda Item Presenter Topic(s) 1 Bob Kramer • State of the Company President and CEO 2 Paul Williams • State of the NARCAN Nasal Spray Franchise SVP, Products Business 3 Rich Lindahl • Q1 2023 vs. Q1 2022 EVP, CFO and Treasurer • FY 2023 Guidance • Q2 2023 Guidance 4 Q&A Q1 2023 Investo
Slide 6: State of the Company
State of the Company Bob Kramer President and Chief Executive Officer Q1 2023 Investor Update PROPRIETARY AND CONFIDENTIAL 6
Slide 7: Overview of Q1 2023
STATE OF THE COMPANY Overview of Q1 2023 • Q1 2023 performance in-line with expectations • Revenues above our guidance range • Operating costs higher than expected • Period profitability negatively impacted • Remain committed to continuing to take actions aimed at strengthening our core business and
Slide 8: Current Status of 2023 Priorities
STATE OF THE COMPANY Current Status of 2023 Priorities 1. Expect sale of Travel Health business to Bavarian Nordic to close in the second quarter; $270M upfront + up to $110M in sales and development-based milestones 2. Secured NARCAN Nasal Spray approval by FDA as first and only opioid overdose rev
Slide 9: State of the NARCAN Franchise
State of the NARCAN Franchise Paul Williams Senior Vice President, Products Business Q1 2023 Investor Update 9
Slide 10: 2023 and Future Priorities
STATE OF THE NARCAN FRANCHISE 2023 and Future Priorities 4mg Doses • FDA approval of NARCAN OTC (3/29/23) – opportunity to expand Distributed availability through pharmacies, convenience stores, vending in US/Canada machines, online retailers…anywhere OTC products are found (since 02/2016) +44M • Me
Slide 11: Financials
Financials Rich Lindahl Executive Vice President and Chief Financial Officer Q1 2023 Investor Update 11
Slide 12: Q1 2023 Key Financial Highlights
FINANCIALS Q1 2023 Key Financial Highlights 1. Anticipate divestiture of Travel Health business to close in second quarter; implications incorporated into updated 2023 guidance 2. Continued evidence of robust demand for NARCAN from both US PIP and Canadian channels; significant increase in NARCAN FY
Slide 13: Key Financial Performance Metrics Q1 2023 vs. Q1 2022
FINANCIALS Key Financial Performance Metrics Q1 2023 vs. Q1 2022 1 ($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS) Q1 Q1 2022 2023 $307.5 $165.1 $9.1 $36.0 $(100.8) $(158.8) $0.18 $(3.17) Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2022 2023 2022 2023 2022 2023 2022 2023 Total Revenues Adjusted EBITDA2 Adjusted Net Income (L
Slide 14: Notable Revenue Elements Q1 2023 vs. Q1 2022
FINANCIALS Notable Revenue Elements Q1 2023 vs. Q1 2022 1 ($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 1. All financial information incorporated within this presentation is unaudited. 3. Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt
Slide 15: Key Financial Performance Metrics Q1 2023 vs. Q1 2022
FINANCIALS Key Financial Performance Metrics Q1 2023 vs. Q1 2022 ($ IN MILLIONS) Q1 Q1 2022 2023 $100.5 $84.8 61% 48% 48% 28% $46.4 $40.6 15% 2% 4% 25% Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2022 2023 2022 2023 2022 2023 2022 2023 R&D $ SG&A $ Corporate Gross Margin Adjusted Corporate --- --- Gross Margin3 R&D Mar
Slide 16: Segment Reporting Q1 2023 vs. Q1 2022
FINANCIALS Segment Reporting Q1 2023 vs. Q1 2022 1 ($ IN MILLIONS) Q1 Q1 2022 2023 PRODUCTS SEGMENT SERVICES SEGMENT $237.1 $143.4 $157.3 66% $44.0 $60.8 $15.2 $(14.8) $(37.0) $0.0 31% (24%) (243%) Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2022 2023 2022 2023 2022 2023 2022 2023 Revenue Adjusted Gross Margin2 $ Reven
Slide 17: Balance Sheet & Cash Flow Metrics
FINANCIALS Balance Sheet & Cash Flow Metrics ($ IN MILLIONS) As of March 31, 2023 For the Three Months Ended March 31, 2023 CASH $430.2 OPERATING CASH FLOW $(184.0) ACCOUNTS RECEIVABLE $155.9 CAPITAL EXPENDITURES $15.1 N E T D E B T P O S I T I O N 1,2 $975.0 1. Debt amount indicated on the Company’
Slide 18: 2023 Forecast – Updated as of 05/09/2023
FINANCIALS 2023 Forecast – Updated as of 05/09/2023 2. See the Appendix for a definition of non-GAAP terms and reconciliation tables. Q1 2023 Investor Update 18
Slide 19: 2023 Forecast – Key Assumptions
FINANCIALS 2023 Forecast – Key Assumptions • OVERALL — Reflects the impact of the previously announced sale of the Travel Health business to Bavarian Nordic, which is anticipated to close in the second quarter. • Total Revenues — Unchanged, reflecting the neutral impact of the overall updates across
Slide 20: Summary Comments
FINANCIALS Summary Comments • First quarter results reflect mix of strong performance in certain core areas offset by ongoing challenges • Remain committed to sustaining revenue growth and improving profitability • Continue to address near term challenges to our credit profile • Remain confident in
Slide 21: Q&A
Q&A Q1 2023 Investor Update PROPRIETARY AND CONFIDENTIAL 21
Slide 22: Appendix
Appendix Q1 2023 Investor Update 22
Slide 23: Reconciliation of Net Loss to Adjusted Net Income (Loss) – Q1 2023 vs. Q1 2022
APPENDIX Reconciliation of Net Loss and Net Loss per Diluted Share to Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share – Q1 2023 vs. Q1 2022 Q1 2023 Investor Update 23
Slide 24: Reconciliation of Net Loss to Adjusted Net Loss – FY 2023 Forecast
APPENDIX Reconciliation of Net Loss to Adjusted Net Loss – FY 2023 Forecast Q1 2023 Investor Update 24
Slide 25: Reconciliation of Net Loss to Adjusted EBITDA – Q1 2023 vs. Q1 2022
APPENDIX Reconciliation of Net Loss to Adjusted EBITDA – Q1 2023 vs. Q1 2022 Q1 2023 Investor Update 25
Slide 26: Reconciliation of Net Loss to Adjusted EBITDA – FY 2023 Forecast
APPENDIX Reconciliation of Net Loss to Adjusted EBITDA – FY 2023 Forecast Q1 2023 Investor Update 26
Slide 27: Reconciliation of Total Revenues to Adjusted Revenues – Q1 2023 vs. Q1 2022
APPENDIX 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 % – Q1 2023 vs. Q1 2022 Q1 2023 Investor Update 27
Slide 28: Reconciliation of Total Revenues to Adjusted Revenues – FY 2023 Forecast
APPENDIX 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 Q1 2023 Investor Update 28
Slide 29: Reconciliation of Segment Level Total Revenues to Adjusted Revenues – Q1 2023 vs. Q1 2022
APPENDIX 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 % – Q1 2023 vs. Q1 2022 Q1 2023 Investor Update 29
Slide 30: www.emergentbiosolutions.com
www.emergentbiosolutions.com
Emergent BioSolutions — Q1 2023 Earnings Presentation on 6ix