- Expects a re-baseline of operations with stable revenue contributions from core products and services business in 2022, guiding to total revenues of
$1.45 billion at the midpoint and Adjusted EBITDA margin of 21.5% at the midpoint - Reports preliminary 2021 total revenues of
$1.78 billion at the midpoint and Adjusted EBITDA of$513 million , or 29%, at the midpoint, both in line with prior guidance given inNovember 2021
“This past year we celebrated wins across the business and overcame our share of challenges, which have made our organization stronger,” said
“Our 2021 financial performance reflects steady growth in our core products combined with strong CDMO services revenues stemming from our participation in the global COVID-19 response,” said
PRELIMINARY 2021 FINANCIAL RESULTS (Unaudited)
The Company is providing the following preliminary, unaudited financial results for full year 2021.
(in millions) | PRELIMINARY 2021 RESULTS (January 9, 2022) | PRIOR 2021 GUIDANCE ( |
Total Revenues | ||
Net Income | ||
Adjusted EBITDA (1) | ||
Adjusted Net Income (1) |
Revenue Metrics
Total revenues for 2021 are expected to be in the range of
Profitability Metrics
The Company anticipates Adjusted EBITDA of
Note:
The preliminary 2021 financial results are unaudited, subject to revision, and anticipated to be finalized by late
2022 FINANCIAL GUIDANCE
The Company is providing the following guidance of selected financial metrics for full year 2022.
(in millions) | FULL YEAR 2022 (As of |
Total Revenues | |
Adjusted EBITDA (1) | |
Adjusted Net Income (1) | |
Gross Margin % | 47% - 51% |
Product/Service Level Revenue | |
• Anthrax Vaccines | |
• ACAM2000® | |
• Nasal Naloxone Products* | |
• CDMO Services | |
• Other Products and Contracts and Grants |
* Includes revenues from the Company's branded NARCAN® Nasal Spray and revenues related to the authorized generic of NARCAN® Nasal Spray, a product licensed to
Total Revenues
The 2022 guidance for total revenue indicates a re-baseline of the Company's operational performance and primarily reflects the impact to the CDMO services business following the conclusion of the
Adjusted EBITDA and Adjusted Net Income (1)
The 2022 guidance reflects an anticipated mix of product and services gross margin, continued investment in research and development, and scale efficiencies in selling, general & administration expenses.
2022 Product/Service Level Revenues – Select Assumptions
- Anthrax vaccines revenues are expected to continue at similar levels to 2021 under the terms of the Company's existing contract with BARDA.
- ACAM2000® (Smallpox (Vaccinia) Vaccine, Live) vaccine deliveries are expected to continue under the terms of the Company’s existing contract with the
U.S. Department of Health and Human Services (HHS) at unit volume levels consistent with 2021 deliveries. - Nasal naloxone product revenues reflect the formation of a generic market and comprise revenues from NARCAN® (naloxone HCl) Nasal Spray and revenues related to the authorized generic of NARCAN® Nasal Spray, a product licensed to
Sandoz AG and launched in late 2021. - CDMO revenues include, among others, continued production of COVID-19 drug substance for Johnson & Johnson.
Other 2022 Assumptions
- Gross margin is expected to be approximately 47%-51% on a GAAP basis, influenced by the mix of product and services revenues.
- Pipeline progress is expected across the R&D portfolio with anticipated advancements of a number of early-stage programs, the ongoing progress of the CHIKV VLP Phase 3 clinical trial, and completion of the Biologics License Application filing for AV7909, the Company's next generation anthrax vaccine candidate.
- Capital expenditures, net of reimbursement, are expected to be approximately 10% of total revenues at the midpoint, reflecting ongoing investments in capacity and capability expansions related to the CDMO business and the Company's R&D programs.
FOOTNOTES
(1) See “Reconciliation of Non-GAAP Measures” for a definition of terms and applicable reconciliation tables.
PRESENTATION WEBCAST
The Company will provide an update on the current business and discuss preliminary 2021 unaudited financial results, the financial guidance for 2022, and long-term goals during its presentation at the 40th Annual
A live webcast of the presentation can be accessed through Emergent’s website. An on-demand replay of the webcast can also be accessed in the investors section after the presentation has concluded.
RECONCILIATION OF NON-GAAP MEASURES (unaudited)
This press release contains financial measures (Adjusted Net Income, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization and Adjusted EBITDA Margin)) that are considered “non-GAAP” financial measures under applicable
The determination of the amounts that are excluded from these non-GAAP financial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety.
This press release references changes in Revenues, Adjusted EBITDA, and Adjusted Net Income from the Company’s full year 2020 performance to the mid-point of the estimated full year 2021 performance. The Company believes these metrics are an important part of assessing performance on a year over year basis. These changes are expressed in dollars as well as percentages. A reconciliation of the calculation of these changes is included below.
Reconciliation of Net Income to Adjusted Net Income (Unaudited)
(in millions, except per share value) | Twelve Months Ended | |||
2022 (Guidance) | 2021 (Estimated) | 2020 (Actual) | Source | |
Net income | ||||
Adjustments: | ||||
+ Non-cash amortization charges | 60.0 | 64.0 | 63.4 | Intangible Asset Amortization, Other Income |
+ Changes in fair value of contingent consideration | 1.0 | 3.0 | 31.7 | COGS |
+ Impairment of IPR&D intangible asset | — | — | 29.0 | R&D |
+ Exit and disposal costs | — | — | 17.2 | COGS, SG&A, Other Income |
+ Acquisition-related costs (transaction & integration) | 2.0 | 1.0 | 0.6 | SG&A |
Tax effect | (13.0) | (13.0) | (23.1) | |
Total adjustments: | ||||
Adjusted net income |
Reconciliation of Net Income to Adjusted EBITDA (Unaudited)
(in millions) | Twelve Months Ended | |||
2022 (Guidance) | 2021 (Estimated) | 2020 (Actual) | Source | |
Net income | ||||
Adjustments: | ||||
+ Depreciation & amortization | 125.0 | 127.0 | 114.5 | COGS, SG&A, R&D |
+ Income taxes | 34.0 - 49.0 | 75.0 - 80.0 | 102.1 | Income Taxes |
+ Total interest expense, net | 33.0 | 34.0 | 30.2 | Other Expense |
+ Changes in fair value of contingent consideration | 1.0 | 3.0 | 31.7 | COGS |
+ Impairment of IPR&D intangible asset | — | — | 29.0 | R&D |
+ Exit and disposal costs | — | — | 17.2 | COGS, SG&A, Other Income |
+ Acquisition-related costs (transaction & integration) | 2.0 | 1.0 | 0.6 | SG&A |
Total adjustments | ||||
Adjusted EBITDA |
Reconciliation of the 2021 Estimated Midpoint of Revenues, Adjusted EBITDA and Adjusted Net Income and the Dollar and Percentage Changes as compared to 2020 Actual (Unaudited)
(in millions, except percentage increase/decrease at midpoint of range) | |||||
Twelve Months Ended | Revenues | Adjusted EBITDA | Adjusted Net Income | ||
2021 (Estimated) Range | |||||
2021 (Estimated) Midpoint of Range | |||||
2020 (Actual) | |||||
Increase (decrease) at Midpoint of Range ($) | ( | ( | |||
Percentage increase (decrease) at Midpoint of Range | 14.4% | (18.7)% | (23.3)% |
ABOUT
At Emergent, our mission is to protect and enhance life. We develop, manufacture, and deliver protections against public health threats through a pipeline of innovative vaccines and therapeutics. For over 20 years, we’ve been at work defending people from things we hope will never happen—so that we’re prepared, just in case they ever do. We do what we do because we see the opportunity to create a better, more secure world. One where preparedness empowers protection from the threats we face. And peace of mind prevails. In working together, we envision protecting or enhancing 1 billion lives by 2030. For more information, visit our website and follow us on LinkedIn, Twitter, and Instagram.
SAFE HARBOR STATEMENT
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including, without limitation, our financial guidance and related projections and statements regarding our ability to meet such projections in the anticipated timeframe, if at all, statements regarding our growth potential, growth goals, vision, M&A opportunities, future performance and meeting milestones in our R&D portfolio, the timing of our final 2021 financial results, future revenue levels and the sources of such revenues, capital expenditures, gross margin, ACAM2000 vaccine deliveries, the impact of a generic market on NARCAN Nasal Spray, the timing of advancement of early-stage programs and completion of a Biologics License Application filing for AV7909, progress of the CHIKV VLP Phase 3 clinical trial, and any other statements containing the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “targets,” “forecasts,” “estimates” and similar expressions in conjunction with, among other things, discussions of the Company’s outlook, financial performance or financial condition, financial and operation goals, strategic goals, growth strategy, product sales, government development or procurement contracts or awards, government appropriations, manufacturing capabilities, and the timing of certain regulatory approvals or expenditures are forward-looking statements. These forward-looking statements are based on our current intentions, beliefs and expectations regarding future events. We cannot guarantee that any forward-looking statement will be accurate.
The reader should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from our expectations. Readers are, therefore, cautioned not to place undue reliance on any forward-looking statement. Any forward-looking statements speak only as of the date of this press release, and, except as required by law, we do not undertake to update any forward-looking statement to reflect new information, events or circumstances. There are a number of important factors that could cause our actual results to differ materially from those indicated by such forward-looking statements, including the availability of
Investor Contact Vice President, Investor Relations burrowsr@ebsi.com (240) 413-1917 | Media Contact Senior Director, Media Relations mediarelations@ebsi.com |
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