Maravai Lifesciences Holdings, Inc. · NASDAQ:MRVI
Maravai Lifesciences — Q2 2022 Earnings Presentation
29 slides from Maravai Lifesciences's earnings presentation, Aug 4, 2022
Slide 1: Q2 2022 Financial Results
Q2 2022 Financial Results (Nasdaq: MRVI) August 4, 2022
Slide 2: Today's Agenda
Today’s Agenda Welcome Financial Results & Guidance 01 03 Deb Hart, Head of Investor Relations Kevin Herde, Chief Financial Officer Business Highlights & Update Q&A Session 02 Carl Hull, Chief Executive Officer 04 Carl Hull, Chief Executive Officer Kevin Herde, Chief Financial Officer 2
Slide 3: Forward Looking Statements and Use of Non-GAAP Financial Measures
Forward Looking Statements and Use of Non-GAAP Financial Measures This presentation contains, and our officers and representatives may from time-to-time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. I
Slide 4: Q2 and 1H 2022 Business Highlights & Update
Q2 and 1H 2022 Business Highlights & Update Carl Hull Chief Executive Officer
Slide 5: Q2 2022: A Great Quarter
Q2 2022: A Great Quarter • Quarterly revenue, up 11% y/y • Adjusted EBITDA growth ADJUSTED EPS1 of 15% y/y REVENUE ADJUSTED EBITDA1 $243 M $188 M $0.54 • Record 78% adjusted EBITDA margin per share • Adjusted free cash flow of $175 M during the quarter Base business growth of 4% (without COVID-19 Cl
Slide 6: 1H 2022: A Record Setting First Half
1H 2022: A Record Setting First Half ADJUSTED EPS1 ADJUSTED EBITDA1 • Six-month revenue, up 33% y/y $1.08 REVENUE per share • Adjusted EBITDA growth $375 M of 42% y/y $487 M • Adjusted free cash flow of $358 M during the six- month period Base business growth of 15% (without COVID-19 CleanCap®) 6 1.
Slide 7: Key Business Segment Highlights: Nucleic Acid Production
Key Business Segment Highlights: Nucleic Acid Production Second quarter Base revenue Continued strong Strong foundational Focused on long- revenues were (excluding pipeline and intellectual property term value creation $225 M CleanCap® for COVID-19) demand for our products position with unique toolk
Slide 8: New mRNA Therapeutic Assets Accelerating
New mRNA Therapeutic Assets Accelerating Worldwide mRNA, Cell & COVID-19 vaccines validate mRNA as a breakthrough Gene Therapy Pipeline1 therapeutic modality 8000 7-8K 7000 mRNA therapeutic assets in development are expected 5.5-6.5K to grow 4x from 2022-20271 6000 4.5-5.5K 5000 3.5-4.5K 4000 3-4K 3
Slide 9: COVID CleanCap Outlook
COVID CleanCap Outlook CLEANCAP EXPECTED EXPECTED 2023 REVENUE FOR 1H22 FULL YEAR 2022 CLEANCAP REVENUE $350 M $600-620 M $200-300 M Main Attributable Changes • Governments delaying/postponing previously contracted vaccine orders • Awaiting new variant vaccines 9
Slide 10: IPO to Today
IPO to Today 2020 Today Revenue >3X IPO TTM Revenues $284 M LEVELS $920 M Adjusted TTM Adjusted >4X IPO EBITDA1 EBITDA LEVELS $693 M $169 M 10
Slide 11: Key Business Segment Highlights: Biologics Safety Testing
Key Business Segment Highlights: Biologics Safety Testing Second quarter Revenue China weakness due Innovating to pandemic and revenues were -4% y/y lockdowns and scaling $17 M suspended our offerings shipments to Russia 1 Several new product launches planned later this year 11
Slide 12: Leadership Updates
Leadership Updates Pete Leddy, Ph.D. Kate Broderick, Ph.D. Jay Lochhead Chanfeng Zhao, Ph.D. Executive Vice President and Senior Vice President Vice President Vice President Chief Administrative Officer Research and Development Quality and Regulatory Research and Development 12
Slide 13: Facilities Updates
Facilities Updates • 32,000 SF for CleanCap and NTP manufacturing, and GMP raw materials for Flanders clinical and commercial use • Q2 agreement with DoD to fund up to $39M of expansion • Phase 1 occupancy late 2022 and Phase 2 occupancy 1H 2023 • 45,000 SF with Mass Spectrometry Center of Excellenc
Slide 14: Making a Positive Impact in our Communities
Making a Positive Impact in our Communities Maravai Charitable Foundation Employee Employee Advancing scientific education and innovation, supporting Volunteer Day Charitable Match local communities, promoting public health and access to healthcare, and advocating for inclusion and diversity Program
Slide 15: Financial Results & Guidance
Financial Results & Guidance Kevin Herde Chief Financial Officer
Slide 16: Q2 2022 Financial Overview
Q2 2022 Financial Overview GAAP Net Income ($M)1 $157 Income from Operations $181 M $469.3 $135 +16% y/y Operating margin 74% Q2 2021 Q2 2022 16 1. GAAP –based net income prior to amounts attributable to non-controlling interests
Slide 17: Q2 2022 Adjusted EBITDA and Adjusted EBITDA Margin
Q2 2022 Adjusted EBITDA and Adjusted EBITDA Margin 2 Adjusted EBITDA ($M)1 Adjusted EBITDA Margin $188 78% +300 bps $164 +15% y/y 75% Q2 2021 Q2 2022 Q2 2021 Q2 2022 17 1. Adjusted EBITDA reconciliation provided on page 27
Slide 18: Q2 2022 Earnings Per Share
Q2 2022 Earnings Per Share Earnings Per Share ($)1,2,3 $0.54 $0.53 $0.54 1 Basic Diluted Adjusted Fully Diluted 1. Basic EPS is Net Income attributable to our Class A shares divided by the weighted average outstanding Class A shares 2. Diluted EPS begins with Basic EPS, adjusted for Net Income and w
Slide 19: Q2 2022 Balance Sheet Highlights
Q2 2022 Balance Sheet Highlights CASH AS OF 6/30/22 LONG-TERM DEBT 0.8X 0.0X $551 M $541 M GROSS DEBT/ TTM1 ADJUSTED NET DEBT/ TTM1 ADJUSTED EBITDA EBITDA Adjusted Free Cash Flow = $175 M in Q2 2022 (Adjusted EBITDA less Capital Expenditures1) 1. TTM Adjusted EBITDA = Trailing twelve months Adjusted
Slide 20: Q2 2022 Business Segment Financial Highlights
Q2 2022 Business Segment Financial Highlights Nucleic Acid Production ($M)1 Biologics Safety Testing ($M)1 $225 $18 $17 $193 +17% y/y -4% y/y Q2 2021 Q2 2022 Q2 2021 Q2 2022 • 93% of total revenue • 7% of total revenue • $186 M of adjusted EBITDA • $14M of Adjusted EBITDA • CleanCap® from COVID-19=$
Slide 21: 2022 Guidance
2022 Guidance Prior Guidance Updated Guidance Change (at Midpoint) REVENUE $920 to $960 million $880 to $910 million -$45 million CleanCap $624 to $935 million $600 to $620 million -$20 million COVID-19 REVENUE ADJUSTED EBITDA $650 to $690 million $640 to $660 million -$20 million ADJUSTED EPS $1.74
Slide 22: Other 2022 Model Assumptions
Other 2022 Model Assumptions • Adjusted fully diluted EPS is based on the assumption that all Class B shares are converted to Class A shares, which results in a forecasted fully diluted share count of ~256 million for the full year of 2022. • Additionally, our adjusted fully diluted EPS, including c
Slide 23: Closing Commentary
Closing Commentary Carl Hull Chief Executive Officer
Slide 24: In Closing – We are Building a Strong Foundation for Long-Term Growth
In Closing – We are Building a Strong Foundation for Long-Term Growth • Building our portfolio in high-value areas • Non-COVID-19 vaccines and cell and gene therapies provide longer-term growth opportunities • Disciplined business model and strong cash position We will continue to focus on Operation
Slide 25: Q&A
Q&A Q&A
Slide 26: Thank you!
Thank you! ir@maravai.com
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Net Income to Adjusted EBITDA in thousands Three Months Ended June 30, Six Months Ended June 30, 2021 (as 2021 (as 2022 adjusted)* 2022 adjusted)* Net income $ 156,721 $ 134,497 $ 303,581 $ 209,962 Add: Amortization 6,252 5,040 11,779 10,081 Depreciation 1,892 1,615 3,747 2,
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income and Adjusted Net Income per Diluted Share in thousands, except per share amounts Three Months Ended June 30, Six Months Ended June 30, 2021 (as 2021 (as 2022 adjusted)* 2022 adjusted)* Net income attributable to Maravai LifeSciences Holdings, Inc. $ 71,24
Slide 29: Explanatory Notes to Reconciliations
Explanatory Notes to Reconciliations (1) Refers to the change in fair value of performance payments related to the acquisition of MyChem, LLC, which was completed in January 2022. (2) Refers to incremental costs incurred to execute and integrate completed acquisitions, and retention payments in conn
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