DELAWARE
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001-33137
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14-1902018
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(State or other jurisdiction
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(Commission File Number)
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(IRS Employer
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of incorporation)
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Identification No.)
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Exhibit No.
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Description
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Press release issued by the company on May 3, 2018.
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EMERGENT BIOSOLUTIONS INC.
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Dated: May 3, 2018
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By:
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/s/ RICHARD S. LINDAHL
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Richard S. Lindahl
Executive Vice President, Chief Financial Officer and Treasurer
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-
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Reaffirms full year 2018 financial forecast and operational goals
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-
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Provides Q2 2018 revenue forecast of $205M-$230M
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(in millions, except per share value)
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Q1 2018
(unaudited)
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Q1 2017
(unaudited)
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||||||
Total Revenues
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$
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117.8
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$
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116.9
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||||
Net Income (Loss)
Net Income (Loss) Per Diluted Share (1)
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$
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(4.9
($0.1
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)
)
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$
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10.5
$0.23
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|||
Adjusted Net Income (Loss) (2)
Adjusted Net Income (Loss) Per Diluted Share (2)
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$
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(1.6
($0.03
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)
)
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$
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14.3
$0.29
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|||
EBITDA (2)
EBITDA Per Diluted Share (2)
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$
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3.1
$0.06
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$
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25.4
$0.51
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·
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Awarded a contract valued at up to $26 million over 12 months by the Centers for Disease Control and Prevention for the continued supply of VIGIV [Vaccinia Immune Globulin Intravenous (Human)] into the U.S. Strategic National Stockpile. VIGIV is the only therapeutic licensed by the U.S. Food and Drug Administration for the treatment of complications due to smallpox vaccination.
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·
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Completed Mutual Recognition Procedure for market authorization of BioThrax® (Anthrax Vaccine Adsorbed) in five Concerned Member States within the European Union – Italy, the Netherlands, Poland, the U.K. and France.
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·
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Initiated, together with Valneva, a Phase 1 clinical trial in the U.S. to evaluate the safety and immunogenicity of VLA1601, our vaccine candidate against Zika virus, using Valneva's validated expression platform. Initial data from this trial is expected in late 2018 or early 2019.
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Three Months Ended
March 31,
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||||||||||||
(in millions)
(unaudited)
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2018
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2017
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% Change
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|||||||||
Product Sales
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||||||||||||
BioThrax®
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$
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20.2
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$
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43.8
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(54
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%)
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||||||
Other
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55.6
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38.2
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46
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%
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||||||||
Total Product Sales
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$
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75.8
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$
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82.0
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(8
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%)
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Three Months Ended
March 31,
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||||||||||||
(in millions)
(unaudited)
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2018
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2017
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% Change
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|||||||||
Research and Development Expenses
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$
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29.1
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$
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20.5
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42
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%
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||||||
Adjustments:
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||||||||||||
- Contracts and grants revenue
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$
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15.9
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$
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17.3
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(8
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%)
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||||||
Net Research and Development Expenses
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$
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13.2
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$
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3.2
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313
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%
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· Total Revenue
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$715 million to $755 million
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· Pre-Tax Income
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$120 million to $140 million
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· Net Income (3)
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$95 million to $110 million
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· Adjusted Net Income (2) (3)
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$110 million to $125 million
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· EBITDA (2) (3)
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$175 million to $190 million
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·
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Advance NuThrax development to enable Emergency Use Authorization filing with the FDA in 2018
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·
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Complete ACAM2000 deliveries; establish a multi-year follow-on contract with the U.S. government
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·
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Deliver Raxibacumab doses under current contract; advance technology transfer to the Company's Bayview facility in Baltimore, Maryland
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·
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Progress pipeline to have at least four product candidates in advanced development
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·
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Complete an acquisition that generates revenue within 12 months of closing
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(1) |
See "Calculation of Diluted Earnings Per Share."
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(2) |
See "Reconciliation of Net Income to Adjusted Net Income and EBITDA" for a definition of terms and a reconciliation table.
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(3) |
Reflects an estimated tax rate that includes the expected effects of the United States Tax Cuts and Jobs Act of 2017 on the Company's 2018 income tax provision.
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(4) |
"Net revenue" is computed as Total Revenue minus Contracts & Grants Revenue.
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Live Teleconference Information:
Dial in: [US] (855) 766-6521; [International] (262) 912-6157
Conference ID: 93329114
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Live Webcast Information:
Visit https://edge.media-server.com/m6/p/gyy8ca3t for the live webcast feed.
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Investor Contact
Robert Burrows
Vice President, Investor Relations
(o) 240/631-3280; (m) 240/413-1917
burrowsr@ebsi.com
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Media Contact
Lynn Kieffer
Vice President, Corporate Communications
(o) 240/631-3391
kiefferl@ebsi.com
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Emergent BioSolutions Inc. and Subsidiaries
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||||||||
Consolidated Balance Sheets
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||||||||
(in thousands, except share and per share data)
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||||||||
March 31, 2018
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December 31, 2017
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|||||||
ASSETS
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(Unaudited)
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Current assets:
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||||||||
Cash and cash equivalents
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$
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163,606
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$
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178,292
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||||
Restricted cash
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1,043
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1,043
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||||||
Accounts receivable
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122,090
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143,653
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||||||
Inventories
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155,196
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142,812
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||||||
Income tax receivable, net
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7,044
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2,432
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Prepaid expenses and other current assets
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27,670
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17,157
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||||||
Total current assets
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476,649
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485,389
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Property, plant and equipment, net
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411,269
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407,210
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||||||
Intangible assets, net
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115,685
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119,597
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||||||
Goodwill
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49,130
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49,130
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||||||
Deferred tax assets, net
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12,656
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2,834
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||||||
Other assets
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3,078
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6,046
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||||||
Total assets
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$
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1,068,467
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$
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1,070,206
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LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$
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46,216
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$
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41,751
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||||
Accrued expenses and other current liabilities
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6,840
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4,831
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||||||
Accrued compensation
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24,513
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37,882
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||||||
Contingent consideration, current portion
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2,337
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2,372
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||||||
Deferred revenue, current portion
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6,964
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13,232
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||||||
Total current liabilities
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86,870
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100,068
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||||||
Contingent consideration, net of current portion
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10,133
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9,902
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||||||
Long-term indebtedness
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13,469
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13,457
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||||||
Income taxes payable, net of current
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12,500
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12,500
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||||||
Deferred revenue, net of current portion (1)
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59,365
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17,259
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||||||
Other liabilities
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4,850
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4,675
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||||||
Total liabilities
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187,187
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157,861
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||||||
Stockholders' equity:
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||||||||
Preferred stock, $0.001 par value; 15,000,000 shares authorized, 0 shares issued and outstanding at both March 31, 2018 and December 31, 2017
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-
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-
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Common stock, $0.001 par value; 200,000,000 shares authorized, 51,025,978 shares issued and 49,808,692 shares outstanding at March 31, 2018; 50,619,808 shares issued and 49,405,365 shares outstanding at December 31, 2017
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50
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50
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Treasury stock, at cost, 1,217,286 and 1,214,443 common shares at March 31, 2018 and December 31, 2017, respectively
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(39,642
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)
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(39,497
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)
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Additional paid-in capital
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624,484
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618,416
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Accumulated other comprehensive loss
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(3,251
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)
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(3,698
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)
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Retained earnings (2)
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299,639
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337,074
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||||||
Total stockholders' equity
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881,280
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912,345
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||||||
Total liabilities and stockholders' equity
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$
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1,068,467
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$
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1,070,206
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(1)
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The change in deferred revenue from December 31, 2017 to March 31, 2018 includes the impact of a $42.4 million increase related to the adoption of a new revenue recognition accounting standard effective January 1, 2018.
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(2)
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The change in retained earnings from December 31, 2017 to March 31, 2018 includes the impact of a $32.5 million, net of tax, reduction related to the adoption of a new revenue recognition accounting standard effective January 1, 2018.
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Emergent BioSolutions Inc. and Subsidiaries
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||||||||
Consolidated Statements of Operations
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||||||||
(in thousands, except share and per share data)
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||||||||
Three Months Ended March 31,
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||||||||
2018
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2017
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|||||||
(Unaudited)
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||||||||
Revenues:
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||||||||
Product sales
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$
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75,771
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$
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81,969
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Contract manufacturing
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26,178
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17,628
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||||||
Contracts and grants
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15,865
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17,261
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||||||
Total revenues
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117,814
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116,858
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||||||
Operating expenses:
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||||||||
Cost of product sales and contract manufacturing
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58,044
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46,322
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||||||
Research and development
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29,051
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20,476
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||||||
Selling, general and administrative
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40,204
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35,150
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||||||
Income (loss) from operations
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(9,485
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)
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14,910
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|||||
Other income (expense):
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||||||||
Interest income
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222
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373
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||||||
Interest expense
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(234
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)
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(1,938
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)
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Other income, net
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74
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300
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||||||
Total other income (expense), net
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62
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(1,265
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)
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|||||
Income (loss) before provision for (benefit from) income taxes
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(9,423
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)
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13,645
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|||||
Provision for (benefit from) income taxes
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(4,515
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)
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3,160
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|||||
Net income (loss)
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$
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(4,908
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)
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$
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10,485
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Net income (loss) per share - basic
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$
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(0.10
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)
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$
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0.26
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Net income (loss) per share - diluted (1)
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$
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(0.10
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)
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$
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0.23
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Weighted-average number of shares - basic
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49,580,089
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40,727,755
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||||||
Weighted-average number of shares - diluted
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49,580,089
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49,718,426
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||||||
Three Months Ended
March 31,
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||||||||
(in millions, except per share value)
(unaudited)
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2018
|
2017
|
||||||
Net Income (Loss)
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$
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(4.9
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)
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$
|
10.5
|
|||
Adjustments:
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||||||||
+ Interest expense, net of tax
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--
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0.9
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||||||
+ Amortization of debt issuance costs, net of tax
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--
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0.2
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||||||
Net Income (Loss), adjusted ("if converted")
Net Income (Loss) Per Diluted Share, adjusted ("if converted")
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$
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(4.9
($0.1
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)
)
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$
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11.6
$0.23
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|||
Weighted Average Diluted Shares
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49.6
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49.7
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Three Months Ended
March 31, |
||||||||||||
(in millions, except per share value)
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2018
|
2017
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Source
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|||||||||
Net Income (Loss)
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$
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(4.9
|
)
|
$
|
10.5
|
N/A
|
||||||
Adjustments:
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||||||||||||
+ Acquisition-related costs (transaction & integration)
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0.2
|
0.6
|
SG&A
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|||||||||
+ Non-cash amortization charges
|
4.0
|
1.9
|
COGS, SG&A, Other Income
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|||||||||
+ Exit and disposal costs
|
--
|
1.4
|
SG&A
|
|||||||||
+ Impact of purchase accounting on inventory step-up
|
--
|
1.8
|
COGS
|
|||||||||
Tax effect
|
(0.9
|
)
|
(2.0
|
)
|
||||||||
Total Adjustments:
|
3.3
|
3.7
|
||||||||||
Adjusted Net Income (Loss)
Adjusted Net Income (Loss) Per Diluted Share
|
$
|
(1.6
($0.03
|
)
)
|
$
|
14.2
$0.29
|
Three Months Ended
March 31,
|
||||||||
(in millions, except per share value)
|
2018
|
2017
|
||||||
Net Income (Loss)
|
$
|
(4.9
|
)
|
$
|
10.5
|
|||
Adjustments:
|
||||||||
+ Depreciation & Amortization
|
12.3
|
9.8
|
||||||
+ Provision for (Benefit from) Income Taxes
|
(4.5
|
)
|
3.2
|
|||||
+ Total Interest Expense
|
0.2
|
1.9
|
||||||
Total Adjustments
|
8.0
|
14.9
|
||||||
EBITDA
EBITDA per Diluted Share
|
$
|
3.1
$0.06
|
$
|
25.4
$0.51
|