NYSE$EBS

Emergent BioSolutions Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported record Q4 and full year performance, aligning with previous guidance, and reaffirmed its full year 2021 forecast.

Emergent BioSolutions reported a strong financial performance for Q4 2020, with a 62% increase in total revenues compared to Q4 2019, driven primarily by increased contract development and manufacturing (CDMO) services revenues. Net income and adjusted EBITDA also saw significant increases. The company reaffirmed its full year 2021 forecast.

  • Total revenues for Q4 2020 were $583.0 million, a 62% increase compared to Q4 2019.
  • Net income for Q4 2020 was $185.4 million, a significant increase from $46.9 million in Q4 2019.
  • Revenue from CDMO services was $199.1 million, a substantial increase compared to $25.5 million in Q4 2019.
  • The company reaffirms its forecast of the following financial metrics, originally announced on January 10, 2021.

Headline financials

Total Revenue

$583M

Previous: $360M+61.8%
EPS (adj)

$3.67

Previous: $1.57+133.8%
Adjusted EBITDA

$291M

Previous: $134M+116.6%
Capital Expenditures

$36M

Previous: $36.1M-0.3%
Free Cash Flow

$209M

Previous: $86M+143.1%
Net Income

$185M

Previous: $46.9M+295.3%
Operating Income

$258M

Previous: $77.8M+231.7%
Gross Profit

$372M

Previous: $228M+63.3%
Cash & Equivalents

$621M

Previous: $168M+270.3%
Total Assets

$2.88B

Previous: $2.33B+23.8%
Stock-Based Comp

$10M

Previous: $5.7M+75.4%

Revenue & EPS history

Emergent BioSolutions · Revenue · Quarterly

$583M

Q4 2020+61.8%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Emergent BioSolutions · $108M total across 3 segments · Q3 2023

  • Other Products
    $50.1M+99.6%
  • Anthrax MCM
    $32.9M
  • Smallpox MCM
    $24.7M

Forward guidance

For full year 2021, the Company reaffirms its forecast of the following financial metrics, originally announced on January 10, 2021:Total Revenues $1,950 - $2,050 million, Adjusted EBITDA $750 - $810 million and Gross Margin 65%.

Tailwinds

  • Anthrax vaccine revenues are expected at a more normalized annual level and continue to primarily reflect procurement of AV7909 (Anthrax Vaccine Adsorbed, adjuvanted) under the Company’s existing contract with the Biomedical Advanced Research and Development Authority (BARDA).
  • ACAM2000® (Smallpox (Vaccinia) Vaccine, Live) vaccine deliveries are expected to continue under the terms of the Company’s existing contract with the U.S. Department of Health and Human Services (HHS) at unit volume levels consistent with 2020 deliveries.
  • CDMO Services assume continued performance of contracted services for Development Services (DVS), Drug Substance (DS) manufacturing, and Drug Product (DP) manufacturing and Packaging for both clinical- and commercial-stage projects on behalf of a growing list of pharmaceutical and biotechnology innovators and government/NGO customers.
  • Pipeline progress is expected across the vaccines, therapeutics, and devices portfolios, anticipating at least one Phase 3 launch
  • Pipeline progress is expected across the vaccines, therapeutics, and devices portfolios, anticipating at least one Biologics License Application (BLA)/Emergency Use Authorization (EUA) filing.

Headwinds

  • Narcan® (naloxone HCl) Nasal Spray revenues assume an appellate decision related to its pending patent litigation in the second half of 2021 followed by the entry of at least one competitor.
  • Global economic conditions and public health crises and epidemics, such as the global pandemic that arose from COVID-19, on the markets, our operations, and employees as well as those of our customers and suppliers
  • Negotiation of further commitments or contracts related to the collaboration and deployment of capacity toward future commercial manufacturing under our CDMO contracts
  • Ability to perform under our contracts with the U.S. government and our CDMO clients, including the timing of and specifications relating to deliveries
  • Ability to successfully appeal the patent litigation decision related to NARCAN® Nasal Spray 4mg/spray

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.5%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-1.0%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+75.5%

Q1 2024

Best reaction

-41.2%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.0%+13.3%+13.5%
Q4 2025-27.1%-21.0%-28.6%
Q3 2025+36.9%+7.3%+18.8%
Q1 2025+35.0%+24.1%+39.9%
Q4 2024-6.4%-15.5%-29.3%
Q3 2024+22.8%+33.6%+0.6%
Q2 2024-41.2%-27.1%-21.5%
Q1 2024+75.5%+111.7%+203.2%
Q4 2023-18.8%-17.9%-32.8%
Q3 2023-8.9%-22.9%+5.5%
Q2 2023-20.0%-25.9%-40.9%
Q1 2023+18.5%+0.7%-8.0%
Q4 2022-9.7%-15.0%-31.8%
Q3 2022-36.7%-22.5%-38.6%
Q2 2022-12.6%-8.6%-30.7%
Q1 2022-11.2%-8.5%-3.4%
Q4 2021-6.7%-2.2%+4.1%
Q3 2021-37.0%-33.3%-20.3%
Q2 2021+1.1%-2.7%-1.5%
Q1 2021-1.7%-4.8%-2.3%
Q4 2020-15.9%-23.7%-25.7%
Q3 2020-6.1%-10.9%-15.8%
Q2 2020+18.1%+30.1%+24.8%
Q1 2020+6.4%+7.5%+12.9%
Q4 2019+2.1%-7.2%-23.6%
Q3 2019-5.4%-7.6%-5.4%
Q2 2019+1.5%+0.7%-0.8%
Q1 2019-8.0%-9.2%-23.7%
Q4 2018-2.8%-11.0%-25.8%
Q3 2018+6.0%+12.6%+19.0%
Q2 2018+3.9%+0.2%+13.8%
Q1 2018-4.0%-4.9%+1.4%
Q4 2017-3.0%+0.6%+6.6%
Q3 2017+7.0%-3.6%+9.1%
Q2 2017-1.1%-1.2%+4.2%
Q1 2017-3.5%+3.2%+5.6%
Q4 2016+0.1%+4.9%-3.7%
Q3 2016+9.8%+22.0%+4.7%
Q2 2016-2.1%-2.6%-11.6%
Q1 2016+0.9%
Q4 2015-3.8%
Q3 2015+2.5%
Q2 2015+5.2%
Q1 2015-2.0%
Q4 2014-3.6%
Q3 2014+7.6%
Q2 2014-2.6%
Q1 2014-10.5%
Q4 2013+9.1%
Q3 2013+9.1%
Q2 2013+1.6%
Q1 2013-5.0%
Q4 2012+1.8%
Q3 2012+8.4%
Q2 2012+1.1%
Q1 2012+4.9%
Q4 2011+4.6%
Q1 2011+4.6%
Q4 2009+8.1%
Q3 2011-5.3%
Q3 2010-5.3%
Q2 2010-8.2%
Q2 2011-8.2%
Q1 2010-1.5%

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