Reports quarterly revenue of $69.4 million, representing 40% reported growth and 28% organic growth year-over-year
Raises revenue guidance to $267-$270 million for full year 2019, representing 31%-32% organic growthWALTHAM, Mass., Oct. 31, 2019 (GLOBE NEWSWIRE) — Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its third quarter of 2019. Provided in this press release are financial highlights for the three- and nine-month periods ended September 30, 2019, updated financial guidance for the fiscal year 2019, and access information for today’s webcast and conference call.Tony J. Hunt, President and Chief Executive Officer said, “We are pleased with our strong performance in the third quarter, reporting over $69 million in revenue and robust organic growth of 28%. Our filtration and chromatography franchises continued to track ahead of expectations and in process analytics, our C Technologies acquisition is tracking to plan, with the build out of the commercial team close to completion. We expect to launch important new products in the fourth quarter, including our innovative TFDF systems and next generation ATF controllers. With a strong Q4 order book, we are confident about finishing the year with revenues in the range of $267 to $270 million.”Third Quarter 2019 HighlightsRevenue increased by 40% year-over-year as reported (42% at constant currency) and 28% organically, to $69.4 million
GAAP fully diluted EPS decreased to $0.03 compared to $0.10 for the third quarter of 2018Adjusted (non-GAAP) fully diluted EPS increased to $0.26 compared to $0.18 for the third quarter of 2018First Nine Months of 2019 HighlightsRevenue increased by 41% year-over-year (43% at constant currency), and 37% organically, to $200.8 million
GAAP fully-diluted EPS increased to $0.37 compared to $0.24 for the first nine months of 2018Adjusted (non-GAAP) fully diluted EPS increased to $0.87 compared to $0.47 for the first nine months of 2018Financial Details for the Third Quarter and First Nine Months of 2019REVENUETotal revenue for the third quarter of 2019 increased to $69.4 million compared to $49.5 million for the third quarter of 2018, a year-over-year gain of 40% as reported and 42% at constant currency, with organic growth of 28%.
Total revenue for the first nine months of 2019 increased to $200.8 million compared to $142.1 million for the first nine months of 2018, a year-over-year gain of 41% as reported and 43% at constant currency, with organic growth of 37%.GROSS PROFIT and GROSS MARGINGross profit (GAAP) for the third quarter of 2019 was $38.0 million, a year-over-year increase of $10.7 million and representing 54.7% gross margin. Adjusted gross profit (non-GAAP) for the third quarter of 2019 was $39.0 million, a year-over-year increase of $11.4 million and representing 56.1% gross margin. 
Gross profit (GAAP) for the first nine months of 2019 was $111.8 million, a year-over-year increase of $32.6 million and representing 55.7% gross margin. Adjusted gross profit (non-GAAP) for the first nine months of 2019 was $114.3 million, a year-over-year increase of $34.6 million and representing 56.9% gross margin. OPERATING INCOMEOperating income (GAAP) for the third quarter of 2019 was $8.0 million compared to $7.9 million for the third quarter of 2018. Adjusted operating income (non-GAAP) for the third quarter of 2019 was $15.1 million, an increase of 34% compared to $11.3 million for the third quarter of 2018.Operating income (GAAP) for the first nine months of 2019 was $30.2 million, an increase of 67% compared to $18.1 million for the first nine months of 2018. Adjusted operating income (non-GAAP) for the first nine months of 2019 was $50.8 million, an increase of 79% compared to $28.4 million for the first nine months of 2018.NET INCOMENet income (GAAP) for the third quarter of 2019 was $1.7 million compared to $4.8 million for the third quarter of 2018. Adjusted net income (non-GAAP) for the third quarter of 2019 was to $13.3 million, an increase of 62% compared to $8.2 million for the third quarter of 2018.Net income (GAAP) for the first nine months of 2019 was $17.8 million, an increase of 62% compared to $11.0 million for the first nine months of 2018. Adjusted net income (non-GAAP) for the first nine months of 2019 was $41.7 million, an increase of 97% compared to $21.2 million for the first nine months of 2018. EARNINGS PER SHAREEarnings per share (GAAP) for the third quarter of 2019 were $0.03 on a fully diluted basis, compared to $0.10 for the third quarter of 2018. Adjusted EPS (non-GAAP) for the third quarter of 2019 increased to $0.26 on a fully diluted basis, compared to $0.18 for the 2018 period.Earnings per share (GAAP) for the first nine months of 2019 increased to $0.37 on a fully diluted basis, compared to $0.24 for the first nine months of 2018. Adjusted EPS (non-GAAP) for the first nine months of 2019 increased to $0.87 on a fully diluted basis, compared to $0.47 for the 2018 period.EBITDAEBITDA, a non-GAAP financial measure, for the third quarter of 2019 was $8.4 million compared to $11.6 million for the third quarter of 2018. Adjusted EBITDA for the third quarter of 2019 was $17.3 million, an increase of 39% compared to $12.4 million for the third quarter of 2018.EBITDA for the first nine months of 2019 was $39.3 million, an increase of 31% compared to $30.1 million for the third quarter of 2018. Adjusted EBITDA for the first nine months of 2019 was $56.5 million, an increase of 74% compared to $32.4 million for the first nine months of 2018.CASHOur cash and cash equivalents at September 30, 2019 were $513.5 million, an increase of $319.6 million from $193.8 million at December 31, 2018. All reconciliations of GAAP to adjusted (non-GAAP) figures above, as well as EBITDA to adjusted EBITDA, are detailed in the reconciliation tables included later in this press release.Financial Guidance for 2019Our financial guidance for the fiscal year 2019 is based on expectations for our existing business and includes the financial impact of our acquisition of C Technologies (which closed on May 31, 2019). We expect C Technologies to contribute $16-$17 million in revenue over the seven months of Repligen’s ownership in 2019. The guidance below excludes the impact of potential additional acquisitions and future fluctuations in foreign currency exchange rates. FISCAL YEAR 2019 GUIDANCE:Total revenue is projected to be in the range of $267-$270 million, an increase from our previous guidance of $264-$268 million. Our current guidance reflects overall revenue growth of 38%-39%, and organic revenue growth of 31%-32%.Gross margin is expected to be 55%-56%, consistent with our previous guidance. Adjusted gross margin is expected to be 56%-57%, consistent with our previous guidance.Income from operations is expected to be in the range of $35-$37 million on a GAAP basis, which includes the impact of $14.1 million in deal-related and inventory step-up costs associated with our acquisition of C Technologies. This compares to our previous guidance of $33-$35 million. Adjusted (non-GAAP) income from operations is expected to be in the range of $62-$64 million, an increase from our previous guidance of $60-$62 million.Net income is expected to be in the range of $19-$21 million on a GAAP basis, compared to our previous guidance of $17-$19 million. Adjusted (non-GAAP) net income is expected to be in the range of $50-$52 million, an increase from our previous guidance of $47-$49 million. Our current guidance reflects a tax rate of 22.5% on adjusted pre-tax income compared to our previous guidance of 24%.Fully diluted GAAP EPS is expected to be in the range of $0.38-$0.42, an increase from our previous guidance of $0.34-$0.38. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $1.00-$1.04, an increase from our previous guidance of $0.94-$0.98.Our non-GAAP guidance for the fiscal year 2019 excludes the following items: $12.6 million estimated acquisition and integration expenses associated with our acquisitions of Spectrum Inc. and C Technologies.Inventory step-up charges of $1.5 million related to the acquisition of C Technologies.$13.4 million estimated intangible amortization expense; $0.5 million in cost of product revenue and $12.9 million in G&A.$7.5 million of non-cash interest expense (Other income (expense)) related to our convertible debt notes.$5.7 million of expense related to the extinguishment of our 2016 convertible notes due 2021.Our non-GAAP guidance for the fiscal year 2019 includes:An income tax increase of $10.0 million, representing the tax impact of acquisition costs and intangible amortization.All reconciliations of GAAP to adjusted (non-GAAP) guidance are detailed in the tables included later in this press release.Conference Call
Repligen will host a conference call and webcast today, October 31, 2019, at 8:30 a.m. EDT, to discuss third quarter of 2019 financial results and corporate developments. The conference call will be accessible by dialing toll-free (844) 701-1063 for domestic callers or (412) 317-5487 for international callers. No passcode is required for the live call. In addition, a webcast will be accessible via the Investor Relations section of the Company’s website. Both the conference call and webcast will be archived for a period of time following the live event. The replay dial-in numbers are (877) 344-7529 from the U.S., (855) 669-9658 from Canada and (412) 317-0088 for international callers. Replay listeners must provide the passcode 10136347. Non-GAAP Measures of Financial Performance
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