- Revenue increased 133% to
$204.8 million for the third quarter; - Net income of
$132.8 million for the third quarter, representing growth of 240% over the prior year; - 2021 revenue guidance increased to a range of
$770.0 million to$780.0 million ; - Established initial 2022 revenue guidance range of
$840 .0 million to$880 .0 million; - Closed the previously announced divestiture of Protein Detection business segment to
Thompson Street Capital Partners ; and - Published inaugural Environmental, Social and Governance Report.
"We continue to see very strong momentum across our end markets. We are, once again, increasing our 2021 guidance and establishing initial revenue guidance for 2022,” said
Hull added, “We are also pleased to have issued our first Environmental, Social and Governance Report and look forward to advancing how we integrate ESG priorities into our operating decisions.”
Revenue for the Third Quarter and Year to Date 2021
Three Months Ended | |||||||||
2021 | 2020 | Year-over-Year % Change | |||||||
Nucleic Acid Production | $ | 182,901 | $ | 67,656 | 170.3 | % | |||
Biologics Safety Testing | 16,626 | 14,114 | 17.8 | % | |||||
Protein Detection | 5,283 | 6,089 | (13.2 | ) | % | ||||
Total Revenue | $ | 204,810 | $ | 87,859 | 133.1 | % |
Nine Months Ended | ||||||||
2021 | 2020 | Year-over-Year % Change | ||||||
Nucleic Acid Production | $ | 499,354 | $ | 128,569 | 288.4 | % | ||
Biologics Safety Testing | 52,483 | 40,772 | 28.7 | % | ||||
Protein Detection | 18,959 | 16,404 | 15.6 | % | ||||
Total Revenue | $ | 570,796 | $ | 185,745 | 207.3 | % |
Third Quarter Fiscal 2021 Financial Results
Revenue for the third quarter was
- Nucleic Acid Production revenue was
$182.9 million for the third quarter, representing a 170% increase year-over-year. The increase in Nucleic Acid Production revenue was the result of continued strong demand for our proprietary CleanCap® analogs as COVID-19 vaccine manufacturers scaled production and increased demand for mRNA products as this technology becomes incorporated into more therapeutic and vaccine programs. - Biologic Safety Testing revenue was
$16.6 million for the third quarter, representing an 18% increase year-over-year. Due to the breadth of our global product offerings supporting cell and gene therapies, biosimilars and biologics development programs, there continues to be strong demand for our products. - Protein Detection revenue was
$5.3 million for the third quarter, representing a 13% decrease year-over-year. The decrease was primarily due to the sale ofVector Laboratories, Inc. (Vector), which was completed in early September.
Net income and Adjusted EBITDA (non-GAAP) were
Nine Months Ended
Revenue for the nine months ended
- Nucleic Acid Production revenue was
$499.4 million for the nine months endedSeptember 30, 2021 , representing a 288% increase year-over-year. - Biologic Safety Testing revenue was
$52.5 million for the nine months endedSeptember 30, 2021 , representing a 29% increase year-over-year. - Protein Detection revenue was
$19.0 million for the nine months endedSeptember 30, 2021 , representing a 16% increase year-over-year.
Net income and Adjusted EBITDA (non-GAAP) were
Environmental, Social and Governance Report
The Company has published its inaugural Environmental, Social and Governance (ESG) Report, which highlights the Company’s commitment to a sustainable and equitable impact for its various stakeholders.
The ESG report highlights global efforts in four key areas: Environment, Human Capital, Business Model and Innovation and Community Relations. The full report is available on the Investor Relations section of the Maravai website at: https://investors.maravai.com/esg.
Updated Financial Guidance for 2021
Our updated financial guidance for the full year 2021 is based on expectations for our existing business and does not include the financial impact of potential new acquisitions, if any, or items that have not yet been identified or quantified. Guidance does include revenue contribution from our Protein Detection business from
Total revenue for 2021 is projected to be in the range of
Adjusted EBITDA (non-GAAP) is expected to be in the range of
Adjusted fully diluted EPS (non-GAAP) is expected to be in the range of
Maravai cannot provide guidance for the most closely comparable GAAP measures or reconciliations for the non-GAAP financial measures included in the updated 2021 guidance above because we are unable to provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including net income attributable to noncontrolling interest, variations in effective tax rate, expenses to be incurred for acquisition activities, and the diluted weighted average number of shares of Class A common stock outstanding for the applicable period from potential proforma exchanges of outstanding
Preliminary Revenue Guidance for 2022
Maravai is providing preliminary revenue guidance for 2022. This guidance for the full year 2022 is based on expectations for our existing business and does not include the financial impact of potential new acquisitions, if any, or items that have not yet been identified or quantified.
Total revenue for 2022 is projected to be in the range of
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share and per unit amounts)
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | $ | 204,810 | $ | 87,859 | $ | 570,796 | $ | 185,745 | |||||||
Operating expenses | |||||||||||||||
Cost of revenue | 32,047 | 19,760 | 99,928 | 56,254 | |||||||||||
Research and development | 1,950 | 1,868 | 6,046 | 7,212 | |||||||||||
Selling, general and administrative | 25,189 | 20,510 | 72,511 | 52,624 | |||||||||||
Gain on sale of business | (11,249 | ) | — | (11,249 | ) | — | |||||||||
Gain on sale and leaseback transaction | — | — | — | (19,002 | ) | ||||||||||
Total operating expenses | 47,937 | 42,138 | 167,236 | 97,088 | |||||||||||
Income from operations | 156,873 | 45,721 | 403,560 | 88,657 | |||||||||||
Other income (expense) | |||||||||||||||
Interest expense | (8,545 | ) | (7,089 | ) | (25,827 | ) | (21,934 | ) | |||||||
Change in payable to related parties pursuant to the Tax Receivable Agreement | 3,246 | — | 9,132 | — | |||||||||||
Other income | 78 | 32 | 78 | 132 | |||||||||||
Income before income taxes | 151,652 | 38,664 | 386,943 | 66,855 | |||||||||||
Income tax expense (benefit) | 18,842 | (359 | ) | 43,937 | 2,511 | ||||||||||
Net income | 132,810 | 39,023 | 343,006 | 64,344 | |||||||||||
Net income attributable to noncontrolling interests | 78,536 | 73 | 216,410 | 582 | |||||||||||
Net income attributable to | $ | 54,274 | $ | 38,950 | $ | 126,596 | $ | 63,762 | |||||||
Net income per share/unit attributable to | |||||||||||||||
Basic | $ | 0.46 | $ | 0.12 | $ | 1.16 | $ | 0.21 | |||||||
Diluted | $ | 0.45 | $ | 0.12 | $ | 1.14 | $ | 0.21 | |||||||
Weighted average number of shares/units outstanding: | |||||||||||||||
Basic | 118,433 | 253,917 | 109,174 | 253,917 | |||||||||||
Diluted | 258,028 | 253,917 | 257,799 | 253,917 | |||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(Unaudited)
(in thousands, except per share amounts)
Net Income to Adjusted EBITDA | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income | $ | 132,810 | $ | 39,023 | $ | 343,006 | $ | 64,344 | |||||||
Add: | |||||||||||||||
Amortization | 4,604 | 5,040 | 14,685 | 15,156 | |||||||||||
Depreciation | 2,472 | 1,631 | 6,623 | 4,756 | |||||||||||
Interest Expense | 8,545 | 7,089 | 25,827 | 21,934 | |||||||||||
Income tax expense (benefit) | 18,842 | (359 | ) | 43,937 | 2,511 | ||||||||||
EBITDA | 167,273 | 52,424 | 434,078 | 108,701 | |||||||||||
Acquisition integration costs (1) | 21 | (14 | ) | (777 | ) | 3,588 | |||||||||
Amortization of lease facility financing obligation (2) | (1,031 | ) | — | (2,080 | ) | — | |||||||||
Acquired in-process research and development costs (3) | — | — | — | 2,881 | |||||||||||
Equity-based compensation (4) | 3,567 | 1,849 | 8,228 | 2,933 | |||||||||||
GTCR management fee (5) | — | 126 | — | 555 | |||||||||||
Gain on sale of business (6) | (11,249 | ) | — | (11,249 | ) | — | |||||||||
Gain on sale and leaseback transaction (7) | — | — | — | (19,002 | ) | ||||||||||
Merger and acquisition related expenses (income) (8) | (366 | ) | 124 | 1,550 | 218 | ||||||||||
Financing costs (9) | 1,034 | 3,266 | 2,038 | 4,966 | |||||||||||
Tax receivable agreement liability adjustment (10) | (3,246 | ) | — | (9,132 | ) | — | |||||||||
Adjusted EBITDA | $ | 156,003 | $ | 57,775 | $ | 422,656 | $ | 104,840 | |||||||
Adjusted Net Income and Adjusted Net Income per Diluted Share | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
Net income attributable to | $ | 54,274 | * | $ | 126,596 | * | |||||
Net income impact from pro forma conversion of Class B shares to Class A common shares | 78,536 | * | 216,410 | * | |||||||
Adjustment to the provision for income tax (11) | (17,748 | ) | * | (50,393 | ) | * | |||||
Tax-effected net income | 115,062 | * | 292,613 | * | |||||||
Acquisition integration costs (1) | 21 | * | (777 | ) | * | ||||||
Amortization of lease facility financing obligation (2) | (1,031 | ) | * | (2,080 | ) | * | |||||
Equity-based compensation (4) | 3,567 | * | 8,228 | * | |||||||
Gain on sale of business (6) | (11,249 | ) | * | (11,249 | ) | * | |||||
Merger and acquisition related expenses (8) | (366 | ) | * | 1,550 | * | ||||||
Financing costs (9) | 1,034 | * | 2,038 | * | |||||||
Tax receivable agreement liability adjustment (10) | (3,246 | ) | * | (9,132 | ) | * | |||||
Deferred tax expense related to historical exchanges (12) | 844 | * | 5,424 | * | |||||||
Deferred tax expense related to assets held for sale (13) | 2,610 | * | (212 | ) | * | ||||||
Tax impact of adjustments (14) | (64 | ) | * | 307 | * | ||||||
Foreign-derived intangible income cash tax benefit (15) | 3,779 | * | 3,779 | * | |||||||
Net cash tax benefit retained from historical exchanges (16) | 1,566 | * | 3,821 | * | |||||||
Adjusted net income | $ | 112,527 | * | $ | 294,310 | * | |||||
Diluted weighted average shares of Class A common stock outstanding | 258,028 | * | 257,800 | * | |||||||
Adjusted net income | $ | 112,527 | * | $ | 294,310 | * | |||||
Adjusted fully diluted EPS | $ | 0.44 | * | $ | 1.14 | * |
____________________
Explanatory Notes to Reconciliations | |
(*) Information not presented for Pre-IPO period. | |
(1) | Refers to incremental costs incurred to execute and integrate completed acquisitions. |
(2) | Refers to cash rent paid for our Wateridge |
(3) | Refers to in-process research and development charge associated with the acquisition of |
(4) | Refers to non-cash expense associated with equity-based compensation. |
(5) | Refers to cash fees paid to |
(6) | Refers to the gain on the sale of Vector, which was completed in |
(7) | Refers to the gain on the sale of our |
(8) | Refers to diligence, legal, accounting, tax and consulting fees incurred associated with acquisitions that were not consummated. This also includes |
(9) | Refers to transaction costs related to our IPO and the refinancing of our long-term debt that are not capitalizable or cannot be offset against proceeds from such transactions. |
(10) | Refers to the loss (gain) related to the adjustment of our tax receivable agreement liability primarily due to changes in our estimated state apportionment and the corresponding reduction of our estimated state tax rate. |
(11) | Represents additional corporate income taxes at an assumed effective tax rate of 23.65% applied to additional net income attributable to |
(12) | Refers to deferred tax expense (benefit) related to the adjustment of our deferred tax asset primarily due to changes in our estimated state apportionment and the corresponding reduction of our estimated state tax rate, as well as increases in |
(13) | Refers to deferred tax expense (benefit) in connection with the sale of Vector, which was completed in |
(14) | Represents income tax impact of non-GAAP adjustments and assumed proforma exchange of all outstanding Class B common stock for shares of Class A common stock at an assumed effective tax rate of 23.65%. |
(15) | Represents tax benefits from additional tax deductions at |
(16) | Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the tax basis step up associated with the purchase or exchange of |
Non-GAAP Financial Information
This press release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the
We define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization and adjustments to exclude, as applicable: (i) incremental costs incurred to execute and integrate completed acquisitions; (ii) amortization of lease facility financing obligations; (iii) charges for in-process research and development associated with completed acquisitions; (iv) non-cash expenses related to share-based compensation; (v) gain on sale of business; (vi) gain on sale and leaseback transaction; (vii) expenses incurred for acquisitions that were not consummated (including legal, accounting and professional consulting services); (viii) transaction costs incurred for the initial public offering and debt refinancing; (ix) GTCR management fees; and (x) loss (income) recognized during the applicable period due to changes in the tax receivable agreement liability. We define Adjusted Net Income as tax-effected earnings before the adjustments described above, and the tax effects of those adjustments. We define Adjusted Diluted EPS as Adjusted Net Income divided by the diluted weighted average number of Class A common stock outstanding for the applicable period, which assumes the proforma exchange of all outstanding units of
These non-GAAP measures are supplemental measures of operating performance that is not prepared in accordance with GAAP and that does not represent, and should not be considered as, an alternative to net income, as determined in accordance with GAAP.
We use these non-GAAP measures to understand and evaluate our core operating performance and trends and to develop short-term and long-term operating plans. We believe the measures facilitate comparison of our operating performance on a consistent basis between periods and, when viewed in combination with our results prepared in accordance with GAAP, helps provide a broader picture of factors and trends affecting our results of operations.
These non-GAAP financial measures have limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, they should not be considered as a replacement for net income, as determined by GAAP, or as a measure of our profitability. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP measures only for supplemental purposes. The non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
Conference Call and Webcast
Maravai’s management will host a conference call today at
About Maravai
Maravai is a leading life sciences company providing critical products to enable the development of drug therapies, diagnostics and novel vaccines and to support research on human diseases. Maravai’s companies are leaders in providing products and services in the fields of nucleic acid synthesis and biologic safety testing to many of the world's leading biopharmaceutical, vaccine, diagnostics, and cell and gene therapy companies.
For more information about
Forward-looking Statements
This press release 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
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
- Certain of our products are used by customers in the production of vaccines and therapies, some of which represent relatively new and still-developing modes of treatment. Unforeseen adverse events, negative clinical outcomes, or increased regulatory scrutiny of these vaccines and therapies and their financial cost may damage public perception of the safety, utility, or efficacy of these vaccines and therapies or other modes of treatment and may harm our customers’ ability to conduct their business. Such events may negatively impact our revenue and have an adverse effect on our performance.
- We compete with life science, pharmaceutical and biotechnology companies who are substantially larger than we are and potentially capable of developing new approaches that could make our products, services and technology obsolete.
- We depend on a limited number of customers for a high percentage of our revenue. If we cannot maintain our current relationships with customers, fail to sustain recurring sources of revenue with our existing customers, or if we fail to enter into new relationships, our future operating results will be adversely affected.
- We rely on a limited number of suppliers or, in some cases, sole suppliers, for some of our raw materials and may not be able to find replacements or immediately transition to alternative suppliers.
- Such other factors as discussed throughout the “Risk Factors” section of our Annual Report on Form 10-K for the year ended
December 31, 2020 , as well as other documents on file with theSecurities and Exchange Commission .
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Contact Information: Media Contact:Sara Michelmore MacDougall +1 781-235-3060 maravai@macbiocom.com Investor Contact:Deb Hart Maravai LifeSciences + 1 858-988-5917 ir@maravai.com
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