(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
INOTIV, INC. | |||||||||||
Date: | February 7, 2024 | By: | /s/ Beth A. Taylor | ||||||||
Chief Financial Officer, | |||||||||||
Senior Vice President—Finance |
(in millions of USD) | Three months ended December 31 | % change | |||||||||||||||
2023 | 2022 | ||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
DSA (Discovery & Safety Assessment) | $44.7 | $41.1 | 8.8% | ||||||||||||||
RMS (Research Models & Services) | $90.8 | $81.7 | 11.1% | ||||||||||||||
Total | $135.5 | $122.8 | 10.3% |
Company Contact | Investor Relations | ||||
Inotiv, Inc. | LifeSci Advisors | ||||
Beth A. Taylor, Chief Financial Officer | Bob Yedid | ||||
(765) 497-8381 | (516) 428-8577 | ||||
btaylor@inotivco.com | bob@lifesciadvisors.com |
Three Months Ended December 31 | |||||||||||
2023 | 2022 | ||||||||||
Service revenue | $ | 53,863 | $ | 50,048 | |||||||
Product revenue | 81,638 | 72,706 | |||||||||
Total revenue | 135,501 | 122,754 | |||||||||
Costs and expenses: | |||||||||||
Cost of services provided (excluding depreciation and amortization of intangible assets) | 39,077 | 34,001 | |||||||||
Cost of products sold (excluding depreciation and amortization of intangible assets) | 62,951 | 63,263 | |||||||||
Selling | 5,348 | 4,501 | |||||||||
General and administrative | 19,927 | 28,298 | |||||||||
Depreciation and amortization of intangible assets | 14,250 | 13,263 | |||||||||
Other operating expense | 3,319 | 3,639 | |||||||||
Goodwill impairment loss | — | 66,367 | |||||||||
Operating loss | $ | (9,371) | $ | (90,578) | |||||||
Other (expense) income: | |||||||||||
Interest expense | (11,364) | (10,450) | |||||||||
Other income (expense) | 1,413 | (1,878) | |||||||||
Loss before income taxes | $ | (19,322) | $ | (102,906) | |||||||
Income tax benefit | 3,494 | 15,974 | |||||||||
Consolidated net loss | $ | (15,828) | $ | (86,932) | |||||||
Less: Net (loss) income attributable to noncontrolling interests | (440) | 391 | |||||||||
Net loss attributable to common shareholders | $ | (15,388) | $ | (87,323) | |||||||
Loss per common share | |||||||||||
Net loss attributable to common shareholders: | |||||||||||
Basic | $ | (0.60) | $ | (3.41) | |||||||
Diluted | $ | (0.60) | $ | (3.41) | |||||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic | 25,764 | 25,603 | |||||||||
Diluted | 25,764 | 25,603 |
December 31, | September 30, | ||||||||||
2023 | 2023 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 22,001 | $ | 35,492 | |||||||
Trade receivables and contract assets, net of allowances for credit losses of $6,313 and $7,446, respectively | 89,849 | 87,383 | |||||||||
Inventories, net | 50,640 | 56,102 | |||||||||
Prepaid expenses and other current assets | 26,264 | 33,408 | |||||||||
Assets held for sale | 1,934 | 1,418 | |||||||||
Total current assets | 190,688 | 213,803 | |||||||||
Property and equipment, net | 191,536 | 191,068 | |||||||||
Operating lease right-of-use assets, net | 48,012 | 38,866 | |||||||||
Goodwill | 94,286 | 94,286 | |||||||||
Other intangible assets, net | 300,350 | 308,428 | |||||||||
Other assets | 10,638 | 10,079 | |||||||||
Total assets | $ | 835,510 | $ | 856,530 | |||||||
Liabilities, shareholders' equity and noncontrolling interest | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 30,716 | $ | 32,564 | |||||||
Accrued expenses and other liabilities | 23,436 | 25,776 | |||||||||
Fees invoiced in advance | 35,821 | 55,622 | |||||||||
Current portion of long-term operating lease | 11,105 | 10,282 | |||||||||
Current portion of long-term debt | 8,411 | 7,950 | |||||||||
Total current liabilities | 109,489 | 132,194 | |||||||||
Long-term operating leases, net | 38,074 | 29,614 | |||||||||
Long-term debt, less current portion, net of debt issuance costs | 370,931 | 369,795 | |||||||||
Other long-term liabilities | 17,967 | 6,373 | |||||||||
Deferred tax liabilities, net | 44,887 | 50,064 | |||||||||
Total liabilities | 581,348 | 588,040 | |||||||||
Shareholders’ equity and noncontrolling interest: | |||||||||||
Common shares, no par value: | |||||||||||
Authorized 74,000,000 shares at December 31, 2023 and at September 30, 2023; 25,790,680 issued and outstanding at December 31, 2023 and 25,777,169 at September 30, 2023 | 6,409 | 6,406 | |||||||||
Additional paid-in capital | 715,282 | 715,696 | |||||||||
Accumulated deficit | (469,106) | (453,278) | |||||||||
Accumulated other comprehensive income (loss) | 1,577 | 330 | |||||||||
Total equity attributable to common shareholders | 254,162 | 269,154 | |||||||||
Noncontrolling interest | — | (664) | |||||||||
Total shareholders’ equity and noncontrolling interest | 254,162 | 268,490 | |||||||||
Total liabilities and shareholders’ equity and noncontrolling interest | $ | 835,510 | $ | 856,530 |
Three Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating activities: | |||||||||||
Consolidated net loss | $ | (15,828) | $ | (86,932) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities, net of acquisitions: | |||||||||||
Depreciation and amortization | 14,250 | 13,263 | |||||||||
Employee stock compensation expense | 1,897 | 2,046 | |||||||||
Changes in deferred taxes | (5,318) | (20,123) | |||||||||
Provision for expected credit losses | (438) | 1,078 | |||||||||
Amortization of debt issuance costs and original issue discount | 846 | 732 | |||||||||
Non-cash interest and accretion expense | 1,688 | 1,446 | |||||||||
Other non-cash operating activities | (1,249) | 1,028 | |||||||||
Goodwill impairment loss | — | 66,367 | |||||||||
Non-cash amortization of inventory fair value step-up | 102 | 244 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade receivables and contract assets | (1,497) | 21,999 | |||||||||
Inventories | 6,058 | (4,204) | |||||||||
Prepaid expenses and other current assets | 7,096 | 7,810 | |||||||||
Operating lease right-of-use assets and liabilities, net | 138 | 266 | |||||||||
Accounts payable | (2,845) | 1,169 | |||||||||
Accrued expenses and other liabilities | (2,497) | (5,548) | |||||||||
Fees invoiced in advance | (20,012) | (7,796) | |||||||||
Other asset and liabilities, net | 11,064 | (255) | |||||||||
Net cash used in operating activities | (6,545) | (7,410) | |||||||||
Investing activities: | |||||||||||
Capital expenditures | (5,572) | (8,369) | |||||||||
Proceeds from sale of equipment | 1,529 | 211 | |||||||||
Net cash used in investing activities | (4,043) | (8,158) | |||||||||
Financing activities: | |||||||||||
Payments on revolving credit facility | — | (15,000) | |||||||||
Payments on senior term notes and delayed draw term loans | (691) | (688) | |||||||||
Borrowings on senior term notes and delayed draw term loans | — | 35,000 | |||||||||
Other financing activities, net | (2,230) | (928) | |||||||||
Net cash (used in) provided by financing activities | (2,921) | 18,384 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 18 | 593 | |||||||||
Net increase (decrease) in cash and cash equivalents | (13,491) | 3,409 | |||||||||
Less: cash, cash equivalents, and restricted cash held for sale | — | (1,569) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 35,492 | 18,980 | |||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 22,001 | $ | 20,820 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | 11,068 | $ | 8,491 | |||||||
Income taxes paid, net | $ | 298 | $ | 2,268 |
Three Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
DSA | |||||||||||
Revenue | 44,698 | 41,093 | |||||||||
Operating income | 1,593 | 2,372 | |||||||||
Operating income as a % of total revenue | 1.2 | % | 1.9 | % | |||||||
Add back: | |||||||||||
Depreciation and amortization | 4,409 | 3,980 | |||||||||
Restructuring costs | 113 | — | |||||||||
Startup costs | 830 | 1,505 | |||||||||
Total non-GAAP adjustments to operating income | 5,352 | 5,485 | |||||||||
Non-GAAP operating income | 6,945 | 7,857 | |||||||||
Non-GAAP operating income as a % of DSA revenue | 15.5 | % | 19.1 | % | |||||||
Non-GAAP operating income as a % of total revenue | 5.1 | % | 6.4 | % | |||||||
RMS | |||||||||||
Revenue | 90,803 | 81,661 | |||||||||
Operating income (loss) | 5,078 | (71,272) | |||||||||
Operating income (loss) as a % of total revenue | 3.7 | % | (58.1 | %) | |||||||
Add back: | |||||||||||
Depreciation and amortization | 9,737 | 9,283 | |||||||||
Restructuring costs | 921 | 266 | |||||||||
Amortization of inventory step up | 102 | 244 | |||||||||
Other unusual, third party costs | 1,086 | 671 | |||||||||
Goodwill impairment loss | — | 66,367 | |||||||||
Total non-GAAP adjustments to operating income (loss) | 11,846 | 76,831 | |||||||||
Non-GAAP operating income | 16,924 | 5,559 | |||||||||
Non-GAAP operating income as a % of RMS revenue | 18.6 | % | 6.8 | % | |||||||
Non-GAAP operating income as a % of total revenue | 12.5 | % | 4.5 | % | |||||||
Three Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Unallocated Corporate Operating Expenses | (16,042) | (21,678) | |||||||||
Unallocated corporate operating expenses as a % of total revenue | (11.8) | % | (17.7) | % | |||||||
Add back: | |||||||||||
Depreciation and amortization | 104 | — | |||||||||
Stock option expense | 1,897 | 2,046 | |||||||||
Acquisition and integration costs | 70 | 983 | |||||||||
Total non-GAAP adjustments to operating loss | 2,071 | 3,029 | |||||||||
Non-GAAP operating loss | (13,971) | (18,649) | |||||||||
Non-GAAP operating loss as a % of total revenue | (10.3) | % | (15.2) | % | |||||||
Total | |||||||||||
Revenue | 135,501 | 122,754 | |||||||||
Operating loss | (9,371) | (90,578) | |||||||||
Operating loss as a % of total revenue | (6.9) | % | (73.8 | %) | |||||||
Add back: | |||||||||||
Depreciation and amortization | 14,250 | 13,263 | |||||||||
Stock compensation expense | 1,897 | 2,046 | |||||||||
Restructuring costs | 1,034 | 266 | |||||||||
Acquisition and integration costs | 70 | 983 | |||||||||
Amortization of inventory step up | 102 | 244 | |||||||||
Startup costs | 830 | 1,505 | |||||||||
Other unusual, third party costs | 1,086 | 671 | |||||||||
Goodwill impairment loss | - | 66,367 | |||||||||
Total non-GAAP adjustments to operating loss | 19,269 | 85,345 | |||||||||
Non-GAAP operating income (loss) | 9,898 | (5,233) | |||||||||
Non-GAAP operating income (loss) as a % of total revenue | 7.3 | % | (4.3 | %) |
Three Months Ended December 31 | |||||||||||
2023 | 2022 | ||||||||||
GAAP Consolidated Net Loss | $ | (15,828) | $ | (86,932) | |||||||
Adjustments (a): | |||||||||||
Interest expense | 11,364 | 10,450 | |||||||||
Income tax benefit | (3,494) | (15,974) | |||||||||
Depreciation and amortization | 14,250 | 13,263 | |||||||||
Stock compensation expense | 1,897 | 2,046 | |||||||||
Acquisition and integration costs (1) | 70 | 983 | |||||||||
Startup costs | 830 | 1,505 | |||||||||
Restructuring costs (2) | 1,034 | 266 | |||||||||
Unrealized foreign exchange (gain) loss | (1,029) | 1,250 | |||||||||
Amortization of inventory step up | 102 | 244 | |||||||||
(Gain) loss on disposition of assets | (666) | 380 | |||||||||
Other unusual, third party costs | 1,086 | 671 | |||||||||
Goodwill impairment loss (3) | - | 66,367 | |||||||||
Adjusted EBITDA (b) | $ | 9,616 | $ | (5,481) | |||||||
GAAP consolidated net loss as a percent of total revenue | (11.7) | % | (70.8) | % | |||||||
Adjustments as a percent of total revenue | 18.8 | % | 66.4 | % | |||||||
Adjusted EBITDA as a percent of total revenue | 7.1 | % | (4.5 | %) |
Cover |
Feb. 07, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 07, 2024 |
Entity Registrant Name | INOTIV, INC. |
Entity Incorporation, State or Country Code | IN |
Entity File Number | 0-23357 |
Entity Tax Identification Number | 35-1345024 |
Entity Address, Address Line One | 2701 KENT AVENUE |
Entity Address, City or Town | WEST LAFAYETTE |
Entity Address, State or Province | IN |
Entity Address, Postal Zip Code | 47906 |
City Area Code | 765 |
Local Phone Number | 463-4527 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Shares |
Trading Symbol | NOTV |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000720154 |
Amendment Flag | false |
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end
9X)HF-A2#J\W/\\C_/;'U?35_.A#0$_H
MI4] U4*=4,6JN!YD(:2JVVT3,+T[NJ8MZ7,Z279NW2F2)EC)SA!D%L@VIEW$
M#B^4K-)!R2GVBOE .AJ"39/$,5,-5 H6%0SS^OC5=ORN%K?H&X;@$PKR
M-[B$TN.QTQCV=(PQ)BT^JQ?V7H+0-H*%]9CG'6Q[;$77P\& 2\SE$12;)&:3
MCVW=\FUM7K9)8S#TPS'P\KP@)*W0?/]^4+YD%IS[0PVKOR\4UG->[@7JI5P.
MG_46L#E1V6\K7!Y'CA[G%B1_G<%X=JK-2YFJ4[1L\AF#M;5OC=;7)1G4MYL]
M> HZZO#S7'3"FXG_4\Y4OS?:'7)6.ZW]N]'I+*!BO]DZ:=9:M5LIP_=B*3Z'
M ?R3\-)%"#ZT_Q\^C%WZ)'=C9:KY8MDZN$TW8"Z7G"5$\Q/%'!.\8T.H8!0VUF,5LKNZ5$$M5(,OY^2(G:D6#PJWI #JYF.D9D =!<
M9E0Z\T"*"[7//)#"0IT:'3:7*Y5O="@%AT,+#J4;'4K!85<; XV2=-I*(6%@
M2"FAYB#2%$M]K9+-]?2YYV-G0\B>IS7&3=GSM/9 DCU/#THH9,]3OADG4JZH
M-X!DM],#;?2!2A]DVW-LR:F:K>B]LLGQ9?>B00+(L<%W8"F&65:_.11\6Y-Y
ML+FKUHN;+Q]IS0Y;&=AE8TUE29;&@+=C*;I1/O.\?A2IJ5+3W?[XEG63,"$Y45T_/X9C2X)%_TT[?*I7*
M I3XH/X@G7'@WH@Z"5"E&*B),R9A=$<#[S\4*0J)IPRE8^\_>*\7D" ,'!C.
M0Y:$!(L&U'],^%
KM_RN1??D4FS&LV/BFOM=\XDA86H?EU]!IYBL+J@([&XJ
M=@)^@C/##\"/9Y$O,85=0=P*XU009.R4XZ,(M/2X/1EK8R#R
M%2(J%)(&0-]\.#L\M $."4Y/5)(F=W @.+O #586UL6#R8"S!<#9'F&2;$K2
MJ<+]?OP)?!1-&%C)/YR7SZ!QS' 9(0_M3X,T3@'FR=B+W!/4WQ^S)>%FK/-N
MX?C"K#VS2#Z)F8L(M-9ON-Y3^!L7W,ZR\A8Q!I?FSL,&6DR63^-=Z@F:M
4#FP)R>)27^^8IC1.L
ME_A5UI%N>9+ ED R%+W7_ )8C: -%Y.I'SXRM!J&SE>>
M(L""6)"*K"/9L<3<;8E\RL"6J0'UAI&NJ.:Q9!76G#Z
EXHE$.B=^<=G%;%,S8I].8O