Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — Q2 2021 Earnings Presentation
24 slides from Emergent Biosolutions's earnings presentation, Jul 29, 2021
Slide 1: 2Q21 Investor Update
2Q21 Investor Update July 29, 2021
Slide 2: Introduction
2Q 2021 Investor Update2 Introduction Robert G. Burrows Vice President, Investor Relations
Slide 3: Safe Harbor Statement
Safe Harbor Statement INTRODUCTION This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including, without limitation, our financial guidance and related projections
Slide 4: Non-GAAP Financial Measures / Trademarks
Non-GAAP Financial Measures / Trademarks 2Q 2021 Investor Update4 INTRODUCTION NON-GAAP FINANCIAL MEASURES This presentation contains financial measures (Adjusted Net Income, Adjusted Net Income Per Diluted Share, Adjusted EBITDA (Earnings Before Depreciation and Amortization, Interest and Taxes), G
Slide 5: Agenda
• State of the Company • Financial Results: 2Q21 • Financial Guidance: Full Year 2021 and 3Q21 • Question and Answer Session Agenda 2Q 2021 Investor Update5 INTRODUCTION
Slide 6: State of the Company
2Q 2021 Investor Update6 State of the Company Robert G. Kramer President and Chief Executive Officer
Slide 7: State of the Company key points
• We are pleased to be resuming production of Johnson & Johnson’s Covid-19 vaccine bulk drug substance. • We continue to work collaboratively with AstraZeneca to complete all documents related to their batches and enable them to work with the US government on the disposition of those lots. • We are
Slide 8: Financial Results
Financial Results Richard S. Lindahl Executive Vice President, Chief Financial Officer and Treasurer 2Q 2021 Investor Update8
Slide 9: 2Q21 Performance Summary Points
2Q21 Performance Summary Points 2Q 2021 Investor Update9 FINANCIAL RESULTS • Solid top-line performance, consistent with expectations. • Expenses impacted by financial implications stemming from the situation at the Bayview facility. • Financial condition remains sound with liquidity and financial f
Slide 10: Primary Metrics: P&L – 2Q21 vs. 2Q20
1. See the Appendix for a definition of non-GAAP terms and reconciliation tables. Primary Metrics: P&L – 2Q21 vs. 2Q20 2Q 2021 Investor Update10 FINANCIAL RESULTS $397.5 $394.7 $49.5 $156.1 $18.0 $105.7 $0.33 Total Revenues Adjusted EBITDA1 Adjusted Net Income1 Adjusted Net Income Per Diluted Share1
Slide 11: Additional Information: CDMO Metrics at 2Q21
1. New business is defined as initial value of contracts secured as well as incremental value of existing contracts modified within the indicated period and is incorporated into Backlog. 2. Backlog is defined as estimated remaining contract value as of the indicated period pursuant to signed contrac
Slide 12: Additional Information: CDMO Metrics Trends
1. New business is defined as initial value of contracts secured as well as incremental value of existing contracts modified within the indicated period and is incorporated into Backlog. 2. Backlog is defined as estimated remaining contract value as of the indicated period pursuant to signed contrac
Slide 13: Primary Metrics: Balance Sheet & Liquidity – 2Q21
Primary Metrics: Balance Sheet & Liquidity – 2Q21 2Q 2021 Investor Update13 FINANCIAL RESULTS Cash $447.5 Accounts Receivable $261.9 Cash + Accounts Receivable $709.4 Net Debt Position1,2 $416.1 As of June 30, 2021 1. Debt amount indicated on the Company’s Balance Sheet is net of unamortized debt is
Slide 14: 2021 Forecast – Updated as of 07/28/2021
2021 Forecast – Updated as of 07/28/2021 2Q 2021 Investor Update14 FINANCIAL RESULTS 3Q21 forecasted total revenues: $400 to $500 Metric Forecast REAFFIRMED/REVISED Total revenues $1,700 - $1,900 REAFFIRMED -- NARCAN Nasal Spray -- Anthrax vaccines -- ACAM2000 -- CDMO services $305 - $325 $280 - $31
Slide 15: 2021 Forecast: Key Considerations
2021 Forecast: Key Considerations 2Q 2021 Investor Update15 FINANCIAL RESULTS • Most assumptions remain consistent with those provided with April 30 guidance update, including: • No Raxibacumab revenue until 2022 • At least one new entrant to Naloxone market this year, but no generic competitor prio
Slide 16: Key Takeaways
Key Takeaways 2Q 2021 Investor Update16 FINANCIAL RESULTS • Solid financial results in 2Q21 keep us on track with full year outlook. • YTD total revenues as a percentage of the midpoint of full year guidance in line with prior four years performance. • Remain confident in the strength of the busines
Slide 17: Q&A
Q&A 2Q 2021 Investor Update17
Slide 18: Appendix
APPENDIX 2Q 2021 Investor Update18
Slide 19: FY2021 Financial Forecast Considerations
FY2021 Financial Forecast Considerations 2Q 2021 Investor Update19 APPENDIX Revised Considerations • Gross margin reflects the impact of the Q2 2021 performance as well as expectations for the remainder of the year. Reaffirmed Considerations • Narcan® (naloxone HCl) Nasal Spray revenues assume the n
Slide 20: Reconciliation of Net Income to Adjusted Net Income – 2Q21 vs. 2Q20
Reconciliation of Net Income to Adjusted Net Income – 2Q21 vs. 2Q20 2Q 2021 Investor Update20 APPENDIX ($ in millions, except per share amounts) Three Months Ended June 30, 2021 2020 Source Net income $4.6 $92.7 Adjustments: + Non-cash amortization charges 16.1 15.8 Intangible Asset (IA) Amortizatio
Slide 21: Reconciliation of Net Income to Adjusted Net Income – 2021 Forecast
Reconciliation of Net Income to Adjusted Net Income – 2021 Forecast 2Q 2021 Investor Update21 APPENDIX ($ in millions) Full Year Forecast 2021F Source Net income $340 - $415 Adjustments: + Non-cash amortization charges 64 Intangible Asset (IA) Amortization, Other Income + Changes in fair value of co
Slide 22: Reconciliation of Net Income to Adjusted EBITDA – 2Q21 vs. 2Q20
Reconciliation of Net Income to Adjusted EBITDA – 2Q21 vs. 2Q20 2Q 2021 Investor Update22 APPENDIX ($ in millions) Three Months Ended June 30, 2021 2020 Net income $4.6 $92.7 Adjustments: + Depreciation & amortization 33.2 28.6 + Provision for income taxes 2.6 28.0 + Total interest expense, net 8.4
Slide 23: Reconciliation of Net Income to Adjusted EBITDA – 2021 Forecast
Reconciliation of Net Income to Adjusted EBITDA – 2021 Forecast 2Q 2021 Investor Update23 APPENDIX ($ in millions) Full Year Forecast 2021F Net income $340 - $415 Adjustments: + Depreciation & amortization 129 + Income taxes 114 – 139 + Total interest expense 32 + Change in fair value of contingent
Slide 24: Reconciliation of Gross Margin – 2Q21 vs. 2Q20
Reconciliation of Gross Margin – 2Q21 vs. 2Q20 2Q 2021 Investor Update24 APPENDIX (in millions) Three Months Ended June 30, 2021 2020 Total revenues $397.5 $394.7 - Contract and grants revenues (25.4) (23.6) Adjusted revenues $372.1 $371.1 Cost of product sales and contract development and manufactu
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