NASDAQ$NOTV

Inotiv Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Inotiv's financial performance decreased due to challenges related to importation of NHPs, decline in biotech funding and the timing of toxicology services.

Inotiv reported a decrease in revenue for Q3 FY 2023 compared to Q3 FY 2022, driven by lower revenue in both the Discovery and Safety Assessment (DSA) and Research Models and Services (RMS) segments. However, the company achieved consolidated net income compared to a net loss in the same period last year. The company is focused on completing integration projects, optimizing infrastructure, and right-sizing its global footprint.

  • Revenue was $157.5 million in Q3 FY 2023, down from $172.7 million in Q3 FY 2022.
  • Consolidated net income for Q3 FY 2023 was $0.4 million, compared to a net loss of $(3.6) million in Q3 FY 2022.
  • Adjusted EBITDA was $30.5 million, or 19.4% of total revenue, compared to $37.0 million, or 21.4% of total revenue, in Q3 FY 2022.
  • Net book-to-bill ratio was 1.08x for the DSA services business.

Headline financials

Total Revenue

$157M

Previous: $173M-8.8%
EPS (adj)

$0.07

Previous: -$0.15+146.7%
DSA Backlog

$149M

No prior period
Free Cash Flow

$1.84M

Previous: -$3.73M+149.4%
Net Income

$1.84M

Previous: -$3.73M+149.4%
Operating Income

$8.78M

Previous: $4.79M+83.5%
Gross Profit

$794K

Previous: $173M-99.5%
Cash & Equivalents

$22.2M

Previous: $21.2M+4.6%
Total Assets

$855M

Previous: $1.17B-26.8%
Stock-Based Comp

$2.03M

Previous: $1.99M+2.2%

Revenue & EPS history

Inotiv · Revenue · Quarterly

$157M

Q3 2023-8.8%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Inotiv · $158M total across 2 segments · Q3 2023

  • RMS
    $111M-17.5%
  • DSA
    $46.8M-2.3%

Forward guidance

Due to the decreasing availability of NHPs in the U.S., the company is recasting its full year revenue guidance to at least $570 million and adjusted EBITDA guidance to be at least $60 million. Capital expenditures are expected to be approximately 5% of revenue in fiscal 2023.

Tailwinds

  • Expect to remain in compliance with financial covenants for the fiscal year.
  • Anticipate a more modest level of capital investment in 2024, of less than 5% of revenue.
  • Confident in the product and service portfolio.
  • Continue to optimize the product and service portfolio.
  • Confident in the client service value proposition that is particularly attractive to the biopharma sector.

Headwinds

  • Decreasing availability of NHPs in the U.S.
  • Full year revenue guidance recasted to at least $570 million, down from $580 million in previous guidance.
  • Fiscal 2023 adjusted EBITDA guidance updated to be at least $60 million, down from the previous guidance of $70 million.
  • Industry challenges related to importation of NHPs this fiscal year.
  • Decline in overall biotech funding in the market.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.4%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+5.6%

Avg return

30 days after

39%

25 / 64 earnings

Positive

+51.3%

Q4 2022

Best reaction

-35.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-3.6%-0.2%-72.5%
Q1 2026-14.3%-33.3%-7.1%
Q4 2025-6.3%-9.6%-42.6%
Q2 2025+11.2%+4.5%+33.8%
Q1 2025-12.9%-8.9%-41.8%
Q4 2024+0.8%-2.6%+7.4%
Q3 2024+5.0%-5.0%-15.7%
Q2 2024+0.9%-13.2%-17.0%
Q1 2024+15.0%+45.5%+126.5%
Q4 2023-24.6%-7.1%+17.2%
Q3 2023-35.7%-40.7%-49.0%
Q2 2023-7.0%+0.2%-13.1%
Q1 2023+4.5%+4.4%-30.1%
Q4 2022+51.3%+67.4%+47.4%
Q3 2022+24.9%+33.9%+16.1%
Q2 2022+42.5%+60.3%+21.1%
Q1 2022-18.7%-28.8%-47.9%
Q4 2021-13.0%+9.7%-19.8%
Q3 2021+6.5%+3.2%+13.1%
Q2 2021+4.2%+9.3%+9.6%
Q1 2021+25.2%+34.7%+48.4%
Q4 2020+20.9%+13.6%+74.3%
Q3 2020-12.8%-15.7%-10.6%
Q2 2020+6.2%+13.2%+25.4%
Q1 2020-12.3%-13.1%-20.4%
Q4 2019+13.7%+10.8%+34.5%
Q3 2019-4.8%+16.2%+73.8%
Q2 2019-2.9%-4.8%-4.3%
Q1 2019-4.9%-2.1%+31.9%
Q4 2018-2.3%-2.3%+6.8%
Q3 2018+0.0%+6.7%+7.3%
Q2 2018+0.6%-2.3%-5.2%
Q1 2018-19.6%-16.4%-15.3%
Q4 2017-3.9%-5.7%-22.1%
Q3 2017-4.0%-2.8%-9.7%
Q2 2017+6.3%+3.2%+5.7%
Q1 2017+23.1%+20.9%+64.8%
Q4 2016+10.0%-1.2%+17.5%
Q3 2016-13.6%-4.3%-18.6%
Q2 2016-6.9%
Q1 2016-14.3%
Q4 2015-3.1%
Q3 2015-8.6%
Q2 2015-1.9%
Q1 2015-5.5%
Q4 2014-7.5%
Q3 2014+15.2%
Q2 2014-2.3%
Q1 2014-9.8%
Q4 2013+9.6%
Q3 2013+25.9%
Q2 2013+9.6%
Q1 2013+3.4%
Q4 2012-5.9%
Q3 2012+4.8%
Q2 2012-7.5%
Q1 2012+0.0%
Q1 2011+0.0%
Q4 2011-3.8%
Q2 2011-3.8%
Q4 2010-4.3%
Q3 2011-4.3%
Q3 2010-4.3%
Q2 2010-3.2%

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