Lineage Cell Therapeutics, Inc. · AMEX:LCTX
Lineage Cell Therapeutics — Q3 2024 Earnings Presentation
43 slides from Lineage Cell Therapeutics's earnings presentation, Nov 14, 2024
Slide 1: Third Quarter 2024 Financial Results
Third Quarter 2024 FINANCIAL RESULTS November 6, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this presentation, including statements relating to our plans and strategies, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally b
Slide 3: Agenda
Agenda • Introduction to Lineage • Q3 Highlights • Capital Deployment • Financial Results • Business Segment Details • Capital Structure • 2024 Outlook • Q&A 3
Slide 4: Key Investment Highlights: Lineage at a Glance
Key Investment Highlights Lineage at a Glance1 Cold storage is the critical infrastructure of the food supply chain ~3.0B Cubic Feet Global leader in a fragmented industry with powerful network benefits 480+ High-quality assets in attractive locations Warehouses Diversified across commodities, custo
Slide 5: Lineage's Robust Flywheel of Growth
Lineage’s Robust Flywheel of Growth Increasing NOI and Same Warehouse Growth Yields Additional Investment Capacity Strong Cash Flow and Tax-Efficient REIT Structure Creates Efficient Cost of Capital Accretive Capital Deployment in Development Projects and M&A Supports Future NOI Growth 5
Slide 6: Q3 Highlights
Q3 Highlights • Completed largest real estate IPO of all time; $5.1B of gross proceeds • Used IPO proceeds to reduce debt, achieving investment grade credit ratings (BBB+ at Fitch, Baa2 at Moody’s) • Adj. EBITDA +5% YoY to $333M; AFFO +52% to $208M; AFFO/share +20% to $0.90 • Strong operational exec
Slide 7: Capital Deployment
Capital Deployment Greenfields and Expansions Hazleton, PA • Opened state-of-the-art, fully-automated 27M cubic feet with Hazleton, PA facility 85K pallet positions • 60M people in a ~250-mile radius • Leverages proprietary, patented LinOS Adds to portfolio of technology over 80 fully and semi-autom
Slide 8: Case Study: Acquisition of ColdPoint Logistics
Case Study: Acquisition of ColdPoint Logistics Company Overview Location • Located in Edgerton, KS (Greater Kansas City), ColdPoint provides storage, handling, and select transportation and value-added services for both export and domestic accounts • Acquisition expands Lineage’s existing presence i
Slide 9: Q3 2024 Financial Results
Q3 2024 Financial Results Total Revenue ($M) Adjusted EBITDA ($M) $316 $333 $1,329 $1,335 $277 $1,256 Q3 2024 Q3 2024 +0.5% vs PY +5.4% vs PY Q3 22 Q3 23 Q3 24 Q3 22 Q3 23 Q3 24 AFFO ($M) AFFO per share $0.90 $208 $0.74 $0.75 $129 $137 Q3 2024 Q3 2024 +51.8% vs PY +20.0% vs PY Q3 22 Q3 23 Q3 24 Q3 2
Slide 10: Global Warehousing Segment
Global Warehousing Segment • Same Warehouse NOI +2.4%; compared to Total Segment +11.0% in Q3 2023 $M Revenue NOI • NOI margin +120 bps vs PY, driven by labor $972 $383 productivity and strong execution; $960 $367 controlling the controllables • Industry continues to rebalance post-Covid and supply
Slide 11: Global Integrated Solutions Segment
Global Integrated Solutions Segment • Global Integrated Solutions Total Segment $M offerings help drive benefits for Revenue Global Warehousing $369 $363 • Challenging demand environment for transportation solutions due to lower volumes and excess capacity • Similar environment expected for Q3 2024
Slide 12: Capital Structure
Capital Structure • Used net proceeds from IPO to repay: • Remaining DDTL balance of $2.4B Net Debt to Adjusted EBITDA • Remaining ICE 5 CMBS balance of $1.3B • $1.2B of revolver balance As of, • Total debt outstanding of $5.0B; total debt $M Q3 2024 and debt-like-obligations of $6.8B Total Debt $5,
Slide 13: 2024 Outlook
2024 Outlook • FY 2024 AFFO/share: $3.16 - $3.20 • Q4 2024 Outlook • AFFO: $180M - $190M • AFFO/share: $0.70 - $0.74 • Low Single-Digit Same WH NOI Growth (vs +9% PY comp) Notes: Outlook excludes the impact of unannounced future acquisitions or developments. See "Non-GAAP Financial Measures" for add
Slide 14: Q3 Summary
Q3 Summary Increasing NOI and Same Strong Cash Flow and Accretive Capital Deployment in Warehouse Growth Yields Tax-Efficient REIT Structure Development Projects and Additional Investment Capacity Creates Efficient Cost of Capital M&A Supports Future NOI Growth Strong Financial Growth: Adj. EBITDA +
Slide 15: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data 15
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets September 30, December 31, 2024 2023 (in millions, except par values) (unaudited) Assets Current assets: Cash and cash equivalents $ 409 $ 68 Restricted cash 3 3 Accounts receivable, net 901 913 Inventories 175 171 Prepaid expenses and other current assets 111 101 Total c
Slide 17: Consolidated Statements of Income
Consolidated Statements of Income Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (in millions, except per share amounts) (unaudited) Net revenues $ 1,335 $ 1,329 $ 4,001 $ 4,008 Cost of operations 897 899 2,672 2,694 General and administrative expense 143 122 39
Slide 18: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Nine Months Ended September 30, 2024 2023 (in millions) (unaudited) Cash flows from operating activities: Net income (loss) $ (671) $ (39) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Provision for credit losses 3 4 Im
Slide 19: Consolidated Statements of Cash Flows (continued)
Consolidated Statements of Cash Flows (continued) Nine Months Ended September 30, 2024 2023 (in millions) (unaudited) Cash flows from financing activities: Capital contributions, net of equity raise costs $ - $ 142 Issuance of common stock in IPO, net of equity raise costs 4,879 - Distributions to s
Slide 20: Debt Summary: Debt Detail
Debt Summary DEBT DETAIL As of September 30, 2024 Contracted Stated Balance (in millions) Interest Rate Maturity Date Unsecured Revolving Credit Facility $1,735 SOFR + 0.925% 2/15/2028 Unsecured Term Loan - Floating 1,000 SOFR + 0.925% 2/15/2029 Total Unsecured Loans $2,735 Private Placement (USD Tr
Slide 21: Debt Summary: Debt Composition
Debt Summary DEBT COMPOSITION $M $2,512 $228 $549 $1,540 $459 $820 $1,735 $163 $1,000 $637 $89 $33 $20 2024 2025 2026 2027 2028 2029+ Revolver Term Loan A Other Unsecured Debt CMBS Real Estate Secured Debt Equipment Financing Other Secured Debt Fixed vs Floating Secured vs Unsecured By Currency $M $
Slide 22: Debt Summary: Interest Expense Summary
Debt Summary INTEREST EXPENSE SUMMARY Interest Expense (in millions) Current Rate Maturity Q3 2024 Revolver S + 10bps + 0.775% 2/15/2028 $ 30 Term Loan A S + 10bps + 0.925% 2/15/2029 17 Private Placement Notes Various Various 10 CMBS (ICE 5) S + 1.97% 11/9/2025 10 Oakland Cool Port Financing S + 1.7
Slide 23: Global Warehouse Segment: Utilization and Minimum Storage Guarantees
Global Warehouse Segment HISTORICAL UTILIZATION AND MINIMUM STORAGE GUARANTEES Average Economic and Physical Occupancy in Contracts with Minimum Storage Our Global Warehousing Segment Guaranteed & Lease Revenue (as % of Rent and Storage Revenue) 87.7% 87.3% 87.2% 85.1% 84.5% 84.3% 83.7% 83.6% 82.9%
Slide 24: Global Warehouse Segment: Historical Same Warehouse NOI Growth
Global Warehouse Segment HISTORICAL SAME WAREHOUSE NOI GROWTH – AS REPORTED 22.5% 19.0% 11.0% 9.0% 2.4% (2.9)% (2.3)% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 24
Slide 25: Global Warehouse Segment - Total
Global Warehouse Segment - Total CONSOLIDATED FINANCIAL PERFORMANCE Three Months Ended Nine Months Ended September 30, September 30, (in millions except revenue per pallet) 2024 2023 Change 2024 2023 Change Warehouse storage $508 $515 (1.4)% $1,534 $1,545 (0.7)% Warehouse services $464 $445 4.3% $1,
Slide 26: Global Warehouse Segment – Same Warehouse
Global Warehouse Segment – Same Warehouse SAME WAREHOUSE FINANCIAL PERFORMANCE Three Months Ended Nine Months Ended September 30, September 30, (in millions except revenue per pallet) 2024 2023 Change 2024 2023 Change Warehouse storage $441 $455 (3.1)% $1,325 $1,367 (3.1)% Warehouse services $402 $3
Slide 27: Global Warehouse Segment – Non-Same Warehouse
Global Warehouse Segment – Non-Same Warehouse NON-SAME WAREHOUSE FINANCIAL PERFORMANCE Three Months Ended Nine Months Ended September 30, September 30, (in millions except revenue per pallet) 2024 2023 Change 2024 2023 Change Warehouse storage $67 $60 11.7% $209 $178 17.4% Warehouse services $62 $52
Slide 28: Global Integrated Solutions Segment
Global Integrated Solutions Segment CONSOLIDATED FINANCIAL PERFORMANCE Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2024 2023 Change 2024 2023 Change Global Integrated Solutions segment revenues $363 $369 (1.6)% $1,094 $1,126 (2.8)% Global Integrated Solutions cost
Slide 29: Capital Expenditures
Capital Expenditures RECURRING MAINTENANCE CAPITAL EXPENDITURES (in millions) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YoY Change Global warehousing $34 $57 $20 $34 $38 11.8% Global integrated solutions $9 $9 $5 $4 $1 (88.9)% Information technology and other $7 $22 $5 $10 $6 (14.3)% Recurring mainten
Slide 30: Capital Expenditures: Greenfield and Expansion Projects
Capital Expenditures GROWTH CAPITAL EXPENDITURES: GREENFIELD AND EXPANSION PROJECTS Greenfield and Expansion Projects Completed Within The Last 36 Months and in Process Remaining Estimated Estimated Project Vintage Square Feet Cubic Feet Pallet Positions Total Cost Spend LTM NOI Stabilized NOI Stabi
Slide 31: Repair and Maintenance Expenditures
Repair and Maintenance Expenditures (in millions) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YoY Change Global warehousing $35 $39 $33 $36 $40 14.3% Global integrated solutions $14 $17 $14 $13 $13 (7.1)% Repair and maintenance expenditures $49 $56 $47 $49 $53 8.2% 31
Slide 32: Additional Modeling Support
Additional Modeling Support (in millions) Q3 2024 Expected Q4 2024 Weighted average common shares outstanding 210 Partnership common units and OP Units help by Non-Company LPs 21 Equity compensation and other unvested units 1 Adjusted diluted weighted average common shares outstanding 232 257 Intere
Slide 33: Same Warehouse (Q3 2024 Pool) – Last Six Quarters
Global Warehouse Segment – Same Warehouse (Q3 2024 Pool) SAME WAREHOUSE FINANCIAL PERFORMANCE - LAST SIX QUARTERS Three Months Ended June 30, September 30, December 31, March 31, June 30, September 30, (in millions except revenue per pallet) 2023 2023 2023 2024 2024 2024 Warehouse storage $457 $455
Slide 34: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations 34
Slide 35: Non-GAAP Reconciliations: NOI to Net Income
Non-GAAP Reconciliations NOI RECONCILIATION TO NET INCOME Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2023 2024 2023 2024 Net Income (Loss) $(50) $(543) $(39) $(671) Stock-based compensation expense in cost of operations - 1 - 1 General and administrative expense 1
Slide 36: Non-GAAP Reconciliations: NOI Last Six Quarters
Non-GAAP Reconciliations NOI RECONCILIATION TO NET INCOME - LAST SIX QUARTERS (Q3 2024 POOL) Three Months Ended June 30, September 30, December 31, March 31, June 30, September 30, (in millions) 2023 2023 2023 2024 2024 2024 Net Income (Loss) $(8) $(50) $(57) $(48) $(80) $(543) Stock-based compensat
Slide 37: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations ADJUSTED EBITDA RECONCILIATION TO NET INCOME Three Months Ended September 30, (in millions) 2022 2023 2024 Net Income (loss) $(42) $(50) $(543) Adjustments: Depreciation and amortization expense 167 188 210 Interest expense, net 93 126 82 Income tax expense (benefit) 13 (5)
Slide 38: Non-GAAP Reconciliations: Adjusted EBITDA LTM
Non-GAAP Reconciliations ADJUSTED EBITDA RECONCILIATION TO NET INCOME – LAST TWELVE MONTHS (LTM) Three Months Ended Twelve Months Ended (in millions) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 September 30, 2024 Net Income (loss) $(57) $(48) $(80) $(543) $(728) Adjustments: De
Slide 39: Non-GAAP Reconciliations: Adjusted FFO
Non-GAAP Reconciliations ADJUSTED FFO RECONCILIATION TO NET INCOME Three Months Ended September 30, (in millions) 2022 2023 2024 Net Income (loss) $(42) $(50) $(543) Adjustments: Real estate depreciation 81 82 89 In-place lease intangible amortization 2 2 1 Net loss (gain) on sale of real estate ass
Slide 40: Non-GAAP Reconciliations: Net Debt
Non-GAAP Reconciliations NET DEBT RECONCILIATION As of September 30, (in millions) 2024 Total debt, net $4,994 Finance lease obligations 1,462 Failed sale-leaseback financing obligations 74 Kloosterboer preference shares 261 Total debt and debt-like obligations $6,791 Deferred financing costs 18 Abo
Slide 41: Non-GAAP Financial Measures
Non-GAAP Financial Measures We use the following non-GAAP financial measures as supplemental performance measures of our business: segment NOI, FFO, Core FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, and net debt. We also use same warehouse and non-same warehouse metrics. We calculate total
Slide 42: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the NAREIT. NAREIT defines FFO as net income or loss determined in accordance with GAAP, excluding extraordinary items as defined under GAAP a
Slide 43: Thank you
Thank you C O N TA C T Evan Barbosa VP, Investor Relations ir@onelineage.com 43
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