-- Company Records Fiscal Year 2018 Revenue of $53.6 Million --
-- Committed Backlog Increases to $57.8 Million (ASC 605) --
-- Customer Base Expanded and Diversified --
-- Key Appointments Strengthen CDMO Leadership Team --
TUSTIN, Calif., July 16, 2018 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ:CDMO) (NASDAQ:CDMOP), 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 fiscal year (FY) 2018 ended April 30, 2018, and provided an update on its contract manufacturing operations, and other corporate highlights.
Highlights Since January 31, 2018
“During fiscal 2018, Avid Bioservices initiated a transition to a pure play biologics contract development and manufacturing organization. Today, Avid is a recognized, established and well-respected service provider to the biotechnology and pharmaceutical industry,” said Roger Lias, Ph.D., president and chief executive officer of Avid Bioservices. “In recent months we have significantly diversified and expanded our portfolio of customers. This effort has also fostered a steady increase in our backlog, which creates a strong foundation as we diligently pursue our goal to achieve breakeven and positive EBITDA. We have brought in an impressive new board and established a cohesive new leadership team with expertise spanning every vital facet of our business from business development to process development and finance. We are responding to, and winning, more requests for proposal than at any time in Avid’s history and we are filling our available capacity with a product mix consisting of both earlier phase process development and clinical programs, as well as late phase clinical and commercial programs. While fiscal 2018 was an impressive turnaround year for Avid, fiscal 2019 will be our first full year as a focused CDMO business and we are excited about the market opportunity and the very significant prospects for growth and market leadership that lie ahead.
“I would like to recognize the tremendous efforts of the staff at Avid Bioservices. The type of transition that we have effected is not easy and I remain incredibly impressed by the dedication and talent of the Avid team and their commitment to exemplary customer service and continued industry leading compliance. I would like to very specifically thank them for their continued support. Our people remain the backbone of our service offering and our business.”
Recent CDMO Developments
Recent Corporate Developments
Financial Highlights and Guidance
More detailed financial information and analysis may be found in Avid’s Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission today.
Conference Call
Avid will host a conference call and webcast this afternoon, July 16, 2018, 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: http://ir.avidbio.com/events.cfm.
About Avid Bioservices, Inc.
Avid Bioservices is a dedicated contract development and manufacturing organization (CDMO) focused on development and cGMP manufacturing of biopharmaceutical products derived from mammalian cell culture. The company provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With 25 years of experience producing monoclonal antibodies and recombinant proteins in batch, fed-batch and perfusion modes, Avid's services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support. The company also provides a variety of process development activities, including cell line development and optimization, cell culture and feed optimization, analytical methods development and product characterization. www.avidbio.com
Forward-Looking Statements
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 the company may experience delays in engaging new clients, the risk that the company may experience technical difficulties in processing customer orders which could delay delivery of products to customers, revenue recognition and receipt of payment or 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, and the risk that the company may need to use the majority of its cash to fund operations, thereby delaying the contemplated upgrade to its process development capabilities and expansion plans. 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, 2018, 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 LOSS | |||||||||||||||
| Three Months Ended April 30, | Twelve Months Ended April 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Contract manufacturing revenue | $ | 6,943,000 | $ | 17,904,000 | $ | 53,621,000 | $ | 57,630,000 | |||||||
| Cost of contract manufacturing | 8,904,000 | 11,782,000 | 56,545,000 | 38,259,000 | |||||||||||
| Gross profit (loss) | (1,961,000 | ) | 6,122,000 | (2,924,000 | ) | 19,371,000 | |||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 4,183,000 | 4,477,000 | 16,456,000 | 18,079,000 | |||||||||||
| Restructuring charges | — | — | 1,258,000 | — | |||||||||||
| Total operating expenses | 4,183,000 | 4,477,000 | 17,714,000 | 18,079,000 | |||||||||||
| Operating income (loss) | (6,144,000 | ) | 1,645,000 | (20,638,000 | ) | 1,292,000 | |||||||||
| Other income (expense): | |||||||||||||||
| Interest and other income | 19,000 | 37,000 | 102,000 | 108,000 | |||||||||||
| Interest and other expense | (9,000 | ) | (5,000 | ) | (27,000 | ) | (7,000 | ) | |||||||
| Income (loss) from continuing operations | $ | (6,134,000 | ) | $ | 1,677,000 | $ | (20,563,000 | ) | $ | 1,393,000 | |||||
| Income (loss) from discontinued operations | 9,154,000 | (6,949,000 | ) | (1,250,000 | ) | (29,552,000 | ) | ||||||||
| Net income (loss) | $ | 3,020,000 | $ | (5,272,000 | ) | $ | (21,813,000 | ) | $ | (28,159,000 | ) | ||||
| Comprehensive income (loss) | $ | 3,020,000 | $ | (5,272,000 | ) | $ | (21,813,000 | ) | $ | (28,159,000 | ) | ||||
| Series E preferred stock accumulated dividends | (1,442,000 | ) | (1,442,000 | ) | (4,686,000 | ) | (4,640,000 | ) | |||||||
| Net income (loss) attributable to common stockholders | $ | 1,578,000 | $ | (6,714,000 | ) | $ | (26,499,000 | ) | $ | (32,799,000 | ) | ||||
| Basic and diluted weighted average common shares outstanding: | 53,360,424 | 42,141,720 | 47,063,020 | 37,109,493 | |||||||||||
| Basic and diluted net income (loss) per common share attributable to common stockholders: | |||||||||||||||
| Continuing operations | $ | (0.14 | ) | $ | 0.01 | $ | (0.53 | ) | $ | (0.09 | ) | ||||
| Discontinued operations | $ | 0.17 | $ | (0.17 | ) | $ | (0.03 | ) | $ | (0.79 | ) | ||||
| Net income (loss) per share attributable to common stockholders | $ | 0.03 | $ | (0.16 | ) | $ | (0.56 | ) | $ | (0.88 | ) | ||||
- continued -
| AVID BIOSERVICES, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS AS OF APRIL 30, 2018 AND 2017 | |||||||
| 2018 | 2017 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 42,265,000 | $ | 46,799,000 | |||
| Trade and other receivables | 3,754,000 | 7,742,000 | |||||
| Inventories | 16,129,000 | 33,099,000 | |||||
| Prepaid expenses | 679,000 | 808,000 | |||||
| Assets of discontinued operations | 5,000,000 | 1,426,000 | |||||
| Total current assets | 67,827,000 | 89,874,000 | |||||
| PROPERTY AND EQUIPMENT: | |||||||
| Leasehold improvements | 20,686,000 | 20,098,000 | |||||
| Laboratory equipment | 10,258,000 | 10,229,000 | |||||
| Furniture, fixtures, office equipment and software | 4,597,000 | 4,385,000 | |||||
| Construction-in-progress | 3,310,000 | 2,841,000 | |||||
| 38,851,000 | 37,553,000 | ||||||
| Less accumulated depreciation and amortization | (12,372,000 | ) | (11,508,000 | ) | |||
| Property and equipment, net | 26,479,000 | 26,045,000 | |||||
| Restricted cash | 1,150,000 | 1,150,000 | |||||
| Other assets | 304,000 | 1,043,000 | |||||
| TOTAL ASSETS | $ | 95,760,000 | $ | 118,112,000 | |||
- continued -
| AVID BIOSERVICES, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS AS OF APRIL 30, 2018 AND 2017 (continued) | |||||||
| 2018 | 2017 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 1,909,000 | $ | 3,000,000 | |||
| Accrued payroll and related costs | 2,564,000 | 5,055,000 | |||||
| Deferred revenue | 10,922,000 | 28,500,000 | |||||
| Customer deposits | 17,013,000 | 17,017,000 | |||||
| Other current liabilities | 905,000 | 636,000 | |||||
| Liabilities of discontinued operations | 4,550,000 | 8,723,000 | |||||
| Total current liabilities | 37,863,000 | 62,931,000 | |||||
| Deferred rent, less current portion | 2,159,000 | 1,599,000 | |||||
| Commitments and contingencies | |||||||
| STOCKHOLDERS' EQUITY: | |||||||
| Preferred stock - $.001 par value; authorized 5,000,000 shares; 1,647,760 shares issued and outstanding at April 30, 2018 and 2017, respectively | 2,000 | 2,000 | |||||
| Common stock - $.001 par value; authorized 500,000,000 shares; 55,689,222 and 44,014,040 shares issued and outstanding at April 30, 2018 and 2017, respectively | 55,000 | 44,000 | |||||
| Additional paid-in-capital | 614,810,000 | 590,971,000 | |||||
| Accumulated deficit | (559,129,000 | ) | (537,435,000 | ) | |||
| Total stockholders' equity | 55,738,000 | 53,582,000 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 95,760,000 | $ | 118,112,000 | |||
Contacts: Stephanie Diaz (Investors) Vida Strategic Partners 415-675-7401 Tim Brons (Media) Vida Strategic Partners 415-675-7402