-- Recorded Fourth Quarter Revenue of $27.6 Million and Annual Revenue of $95.9 Million --
-- Achieved Four Consecutive Quarters of Operational Profitability During Fiscal 2021 --
-- Signed Approximately $148 Million in New Business Orders and Achieved a Year-End Backlog of $118 Million During Fiscal 2021 , an 85% and 82% Increase Over Prior Year, Respectively --
-- Raised $138.5 Million Net in Successful Offering of 1.25% Convertible Senior Notes --
-- Project Fiscal 2022 Revenue of $115 to $117 Million, Representing 20% - 22% Growth Over Fiscal 2021 --
TUSTIN, Calif, June 29, 2021 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ:CDMO), a dedicated biologics contract development and manufacturing organization (CDMO) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced financial results for the fourth quarter and full fiscal year 2021, ended April 30, 2021.
Highlights Since January 31, 2021
“Fiscal 2021 was a very strong year for Avid. During the year, revenues increased by 61% as compared to fiscal 2020 and gross margins were significantly improved from 7% to more than 30%. During fiscal 2021 we signed eight new customers, and during the fourth quarter we successfully completed FDA inspections for two product approvals with zero 483 observations. During fiscal 2021, we generated more than $31 million in cash from operations, and for the first time, we achieved four consecutive quarters of operational profitability. Beyond our operational successes, Avid’s financial position was significantly strengthened during the year by both new and existing investors who demonstrated support for Avid’s strategy through two separate offerings which were completed in the third and fourth quarters of fiscal 2021, raising combined net proceeds of $170.6 million. Further, as a sign of the momentum we have moving into the next year, we ended fiscal 2021 with a backlog of $118 million, the majority of which we expect to recognize during fiscal 2022. Given this backdrop, I am pleased to report that we expect to record revenue of between $115 million and $117 million in fiscal 2022, representing growth of approximately 20% - 22% as compared to fiscal 2021,” stated Nicholas Green, president and chief executive officer of Avid Bioservices.
“The growth experienced during fiscal 2021 made it increasingly evident that an expansion of our capacity is required not only to best service our existing customers who are advancing products through the clinical development process toward commercialization, but to also maintain our competitive advantage in attracting new customers seeking capacity today. As discussed previously, Avid has initiated a two-phased expansion plan which was designed to bring incremental capacity online by the end of calendar 2021, and significantly more capacity in calendar 2022. I am very pleased to report that both phases are underway and advancing according to plan, and we look forward to reporting progress on this effort in the coming quarters. Given this work, it is important to note that our annual maintenance shutdowns that are usually conducted back-to-back in Q2, will be amended slightly this year with the Myford shutdown taking place in Q3 to accommodate our expansion schedule.
“Looking ahead into fiscal 2022, we expect these expansion investments, combined with ongoing investments in the recruitment, training and retention of our workforce, to result in a continued strengthening of our core business, opening doors to new opportunities for growth. Given the expectation of increasing demand, our additional planned capacity and a strong balance sheet, we will not only be able to best support additional customers working to develop mammalian drug products, but we look forward to strategically evaluating adjacent and/or strategic business expansions that may create value for Avid and our customers.
“The exceptional execution of our team during fiscal 2021 was transformative, bringing Avid to a position of operational and financial strength. We look forward to the many opportunities that lie ahead.”
Financial Highlights and Guidance
More detailed financial information and analysis may be found in Avid Bioservices’ Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission today.
Recent Corporate Developments
Avid will host a conference call and webcast this afternoon, June 29, 2021, at 4:30 PM EDT (1:30 PM PDT).
To listen to the conference call, please dial (877) 312-5443 or (253) 237-1126 and request the Avid Bioservices conference call. To listen to the live webcast, or access the archived webcast, please visit: https://ir.avidbio.com/investor-events.
About Avid Bioservices, Inc.
Avid Bioservices is a dedicated contract development and manufacturing organization (CDMO) focused on development and CGMP manufacturing of biopharmaceutical drug substances derived from mammalian cell culture. The company provides a comprehensive range of process development, CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With 28 years of experience producing monoclonal antibodies and recombinant proteins, Avid’s services include CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. For early-stage programs the company provides a variety of process development activities, including upstream and downstream development and optimization, analytical methods development, testing and characterization. The scope of our services ranges from standalone process development projects to full development and manufacturing programs through commercialization. www.avidbio.com
Statements in this press release, which are not purely historical, including statements regarding Avid Bioservices’ intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risk that the ongoing COVID-19 pandemic will adversely affect our or our customers’ business and operations, the risk the company may experience delays in engaging new clients, the risk that the company may not be successful in executing client projects, the risk that the company may experience technical difficulties in completing client projects due to unanticipated equipment and/or manufacturing facility issues which could result in projects being terminated or delay delivery of products to customers, revenue recognition and receipt of payment or result in the loss of the customer, the risk that one or more existing customers terminates its contract prior to completion or reduces or delays its demand for development or manufacturing services which could adversely affect guided fiscal 2022 revenues, and the risk that the completion of one or both phases the of the Myford expansion may be delayed, may cost more than anticipated or may not increase revenue generating capacity by the amounts contemplated. Our business could be affected by a number of other factors, including the risk factors listed from time to time in our reports filed with the Securities and Exchange Commission including, but not limited to, our annual report on Form 10-K for the fiscal year ended April 30, 2021, as well as any updates to these risk factors filed from time to time in our other filings with the Securities and Exchange Commission. We caution investors not to place undue reliance on the forward-looking statements contained in this press release, and we disclaim any obligation, and do not undertake, to update or revise any forward-looking statements in this press release except as may be required by law.
AVID BIOSERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share information)
|Three Months Ended |
|Twelve Months Ended |
|Cost of revenues||19,463||13,849||66,561||55,770|
|Gross profit (loss)||8,143||(1,299||)||29,307||3,932|
|Selling, general and administrative||5,055||3,528||17,064||14,517|
|Loss on lease termination||—||—||—||355|
|Total operating expenses||5,055||3,528||17,064||14,872|
|Operating income (loss)||3,088||(4,827||)||12,243||(10,940||)|
|Interest and other income, net||63||60||133||482|
|Net income (loss)||$||1,991||$||(4,768||)||$||11,212||$||(10,466||)|
|Comprehensive income (loss)||$||1,991||$||(4,768||)||$||11,212||$||(10,466||)|
|Series E preferred stock accumulated dividends||(1,211||)||(1,442||)||(4,455||)||(4,686||)|
|Impact of Series E preferred stock redemption||(3,439||)||—||(3,439||)||—|
|Net income (loss) attributable to common stockholders||$||(2,659||)||$||(6,210||)||$||3,318||$||(15,152||)|
|Net income (loss) per share attributable to common stockholders:|
|Weighted average common shares outstanding:|
AVID BIOSERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
|Cash and cash equivalents||$||169,915||$||36,262|
|Total current assets||207,804||59,763|
|Property and equipment, net||37,455||27,105|
|Operating lease right-of-use assets||18,691||20,100|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued payroll and related costs||8,794||3,019|
|Current portion of operating lease liabilities||1,355||1,228|
|Other current liabilities||761||808|
|Total current liabilities||70,936||44,480|
|Convertible senior notes, net||96,949||—|
|Operating lease liabilities, less current portion||19,889||21,244|
|Commitments and contingencies|
|Preferred stock, $0.001 par value; 5,000 shares authorized; |
no shares and 1,648 shares issued and outstanding at respective dates
|Common stock, $0.001 par value; 150,000 shares authorized; |
61,069 and 56,483 shares issued and outstanding at respective dates
|Additional paid-in capital||637,534||612,909|
|Total stockholders’ equity||77,736||41,896|
|Total liabilities and stockholders’ equity||$||265,510||$||107,620|
CONTACT: Contacts: Stephanie Diaz (Investors) Vida Strategic Partners 415-675-7401 email@example.com Tim Brons (Media) Vida Strategic Partners 415-675-7402 firstname.lastname@example.org