Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — Q1 2024 Earnings Presentation
32 slides from Emergent Biosolutions's earnings presentation, May 1, 2024
Slide 1: Q1 2024 Financial Results Update
Q1 2024 Financial Results Update May 1, 2024 1
Slide 2: Introduction
Introduction Q1 2024 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: Agenda
INTRODUCTION Agenda Presenter Topic(s) Joseph C. Papa • Transformation Plan Update President and CEO Rich Lindahl • Q1 2024 Financial Review EVP, CFO and Treasurer • FY 2024 and Q2 2024 Guidance Joseph C. Papa • Driving Profitable, Sustainable Long-Term Growth President and CEO • Closing Remarks Q&A
Slide 5: Transformation Plan Update
Transformation Plan Update Q1 2024 Update Joseph C. Papa President and Chief Executive Officer PROPRIETARY AND CONFIDENTIAL 55
Slide 6: Transformation Plan Update
Transformation Plan Update Transformation Plan Update Multi-year plan to stabilize, turnaround and transform. • Our mission is unchanged Q1 stabilization efforts and priorities: Addressed debt repayment; improved Continued focus on MCM and NARCAN® Sharpened strategy on future growth drivers operatin
Slide 7: Financials
Financials Q1 2024 Update Rich Lindahl Executive Vice President and Chief Financial Officer
Slide 8: Key Financial Performance Metrics Q1 2024 vs. Q1 2023
FINANCIALS Key Financial Performance Metrics Q1 2024 vs. Q1 20231 ($ in millions) Q1 Q1 2024 2023 $300.4 $148.0 $66.9 $164.3 51% 5% $31.1 $7.2 $(163.5) $(101.5) Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2024 2023 2024 2023 2024 2023 2024 2023 Total Revenues Total Segment Adjusted Gross Adjusted EBITDA2 Adjusted Net I
Slide 9: Notable Revenue Elements Q1 2024 vs. Q1 2023
FINANCIALS Notable Revenue Elements Q1 2024 vs. Q1 20231 ($ in millions) Q1 2024 Q1 2023 % Change Product sales, net (2): NARCAN® $ 118.5 $ 100.4 18 % Other Commercial Products — 5.8 (100)% Anthrax MCM 55.9 21.9 155 % Smallpox MCM 50.2 7.2 * Other Products 49.3 8.1 * Total Product sales, net $ 273.9
Slide 10: Key Financial Performance Metrics Q1 2024 vs. Q1 2023
FINANCIALS Key Financial Performance Metrics Q1 2024 vs. Q1 2023 1 ($ in millions) Q1 Q1 2024 2023 $101.3 $84.7 $62.2 $55.4 $52.1 $45.8 $51.7 $40.7 28% 62% $30.3 $15.1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Cost of Commercial Cost of MCM Product Cost of Biose
Slide 11: Segment Reporting Q1 2024 vs. Q1 2023
FINANCIALS Segment Reporting Q1 2024 vs. Q1 20231 ($ in millions) Q1 Q1 2024 2023 COMMERCIAL PRODUCTS SEGMENT MCM PRODUCTS SEGMENT SERVICES SEGMENT $155.4 $118.5 $106.2 $93.6 $66.4 $60.4 $(15.9) $(12.0) $(37.3) 56% 57% $37.2 60% (43)% $18.5 $14.4 (65)% (259)% Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2024
Slide 12: Balance Sheet & Cash Flow Metrics
FINANCIALS Balance Sheet & Cash Flow Metrics ($ in millions) As of March 31, 2024 For the Three Months Ended March 31, 2024 CASH $78.5 OPERATING CASH FLOW $(62.6) ACCOUNTS RECEIVABLE, NET $233.5 CAPITAL EXPENDITURES $10.8 TOTAL DEBT $909.2 NET DEBT1,2, 3 $830.7 1. Debt amount indicated on the Compan
Slide 13: 2024 Forecast – Updated as of 05/01/2024
FINANCIALS 2024 Forecast – Updated as of 05/01/2024 METRIC Updated Range Previous Range ($ in millions) (as of 05/01/2024) Action (as of 03/06/2024) Total revenues $1,000 - $1,100 REVISED $900 - $1,100 Net loss $(148) - $(98) REVISED $(183) - $(133) Adjusted net loss (1) $(65) - $(15) REVISED $(130)
Slide 14: Driving Profitable, Sustainable Long-Term Growth
Driving Profitable, Sustainable Long- Term Growth
Slide 15: Widespread Support for Expanded Access to NARCAN Nasal Spray
Widespread Support for Expanded Access to NARCAN® Nasal Spray New Survey Findings Underscore Importance of Naloxone Access NARCAN® Nasal Spray Q1 Highlights (n=1,005 survey )1 • Continued to meet demand through public interest Approximately 90% of respondents/adults (18+) includes parents distributi
Slide 16: 2024 & Beyond -- Catalysts / Future Drivers for NARCAN Nasal Spray
2024 & Beyond -- Catalysts / Future Drivers for NARCAN® Nasal Spray • Opioid settlement $54+B flowing into states over next 10-15 years • Demand for naloxone is expected to increase as the epidemic continues and federal/state programs continue to combat the crisis • Greater policy focus to stock nal
Slide 17: Key MCM Business Highlights
Key MCM Business Highlights NARCAN® Nasal • Increasingly dangerous world / ongoing focus on CBRN threats remains vital Spray Update ◦ Recent events across the EU have ignited greater preparedness efforts ◦ Mpox estimates up to 31 cases per month since 20231 ◦ Recently published 'Box the Pox' report
Slide 18: 2024 & Beyond -- Catalysts / Future Drivers for MCM Business
2024 & Beyond -- Catalysts / Future Drivers for MCM Business NARCAN® Nasal • Continued high-risk threats; Final FY 2024 Congressional Funding Figures for key programs ◦ On the biodefense front, these programs received the following appropriations: Spray Update ▪ Biomedical Advanced Research and Deve
Slide 19: Product Portfolio | Future Growth Drivers
Product Portfolio | Future Growth Drivers PROPRIETARY AND CONFIDENTIAL 19
Slide 20: Summary
FINANCIALS Summary • First quarter results reflect mix of strong performance in certain core areas offset by ongoing challenges • New contract awards and orders from the U.S. Government & DOD throughout 2024 • Notable progress on strengthening our business fundamentals • Positioned for success, driv
Slide 21: Q&A
Q&A PROPRIETARY AND CONFIDENTIAL 21
Slide 22: End Notes: Non-GAAP Financial Measures
End Notes: Non-GAAP Financial Measures In this presentation, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States (“G
Slide 23: Appendix
Appendix 23 23
Slide 24: Streamlining the Emergent Network Update
Streamlining the Emergent Network Update
Slide 25: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
APPENDIX Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) Three Months Ended March 31, (unaudited, $ in millions) 2024 2023 Source Net income (loss) $ 9.0 $ (186.2) Adjustments: Non-cash amortization charges $ 23.2 $ 18.0 Intangible Asset ("IA") Amortization, Other Income Changes in
Slide 26: Reconciliation of Net Income (Loss) to Adjusted EBITDA
APPENDIX Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended March 31, (unaudited, $ in millions) 2024 2023 Net income (loss) $ 9.0 $ (186.2) Adjustments: Depreciation & amortization $ 27.9 $ 34.6 Income taxes 3.1 25.6 Total interest expense, net 23.8 13.4 Changes in fair value
Slide 27: Reconciliations of Total Revenues to Total Segment Revenues and Gross Margin
APPENDIX Reconciliations of Total Revenues to Total Segment Revenues and of Segment and Total Segment Gross Margin and Gross Margin % to Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % Three Months Ended March 31, 2024 Commercial (unaudited, in millions) Products MCM Prod
Slide 28: Reconciliation of Total Debt to Net Debt
APPENDIX Reconciliation of Total Debt to Net Debt As of (unaudited, $ in millions) March 31, 2024 Total Debt $ 909.2 Less: Cash and cash equivalents $78.5 Net debt $ 830.7 28
Slide 29: Reconciliation of Net Loss to Adjusted Net Loss – FY 2024 Forecast
APPENDIX Reconciliation of Net Loss to Adjusted Net Loss – FY 2024 Forecast ($ in millions) 2024 Full Year Forecast Source Net loss $(148) - $(98) Adjustments: Non-cash amortization charges $65 IA Amortization Other Income Changes in fair value of contingent 2 MCM Product COGS consideration Severanc
Slide 30: Reconciliation of Net Loss to Adjusted EBITDA – FY 2024 Forecast
APPENDIX Reconciliation of Net Loss to Adjusted EBITDA – FY 2024 Forecast ($ in millions) 2024 Full Year Forecast Net loss $(148) - $(98) Adjustments: Depreciation & amortization $111 Income taxes 52 Total interest expense, net 82 Changes in fair value of contingent consideration 2 Severance and res
Slide 31: Reconciliations of Forecasted Total Revenues to Forecasted Segment Revenues and Gross Margin
APPENDIX Reconciliations of Forecasted Total Revenues to Forecasted Total Segment Revenues and of Forecasted Segment and Total Segment Gross Margin and Gross Margin % to Forecasted Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % (in millions) 2024 Full Year Forecast Total
Slide 32: www.emergentbiosolutions.com
www.emergentbiosolutions.com 32
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