Delaware
|
001-33137
|
14-1902018
|
(State or Other Jurisdiction
of Incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
2273 Research Boulevard, Suite 400, Rockville, Maryland
|
20850
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Date: May 5, 2011
|
EMERGENT BIOSOLUTIONS INC.
|
|
By:
|
/s/R. Don Elsey
R. Don Elsey
Chief Financial Officer
|
·
|
the continuation of deliveries of BioThrax under the current multi-year procurement contract with CDC, which was recently modified to increase the total contracted doses to 17.9 million;
|
·
|
additional deliveries of BioThrax under a follow-on, multi-year procurement contract with CDC, anticipated to begin in 4Q 2011;
|
·
|
a significant increase in contracts and grants revenue based primarily on development contracts related to product development programs in the company’s BioDefense segment; and
|
·
|
collaboration and milestone revenues associated with achievement of clinical development milestones related to the company’s oncology product candidate, which is under an existing co-development agreement with Abbott, and the company’s autoimmune product candidate, which is being developed by Pfizer under a license agreement from the company.
|
Emergent BioSolutions Inc. and Subsidiaries
|
||||||||
Consolidated Balance Sheets
|
||||||||
(in thousands, except share and per share data)
|
||||||||
March 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 136,925 | $ | 169,019 | ||||
Investments
|
6,338 | 2,029 | ||||||
Accounts receivable
|
11,976 | 39,326 | ||||||
Inventories
|
22,163 | 12,722 | ||||||
Deferred tax assets, net
|
6,743 | 2,638 | ||||||
Income tax receivable, net
|
23,966 | 8,728 | ||||||
Restricted cash
|
217 | 217 | ||||||
Prepaid expenses and other current assets
|
7,875 | 8,814 | ||||||
Total current assets
|
216,203 | 243,493 | ||||||
Property, plant and equipment, net
|
157,963 | 152,701 | ||||||
In-process research and development
|
51,400 | 51,400 | ||||||
Goodwill
|
5,029 | 5,029 | ||||||
Assets held for sale
|
12,741 | 12,741 | ||||||
Deferred tax assets, net
|
26,812 | 33,757 | ||||||
Other assets
|
1,129 | 1,198 | ||||||
Total assets
|
$ | 471,277 | $ | 500,319 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 24,034 | $ | 25,409 | ||||
Accrued expenses and other current liabilities
|
1,257 | 1,309 | ||||||
Accrued compensation
|
13,687 | 23,975 | ||||||
Contingent value rights, current portion
|
9,113 | - | ||||||
Long-term indebtedness, current portion
|
16,927 | 17,187 | ||||||
Deferred revenue, current portion
|
5,916 | 7,839 | ||||||
Total current liabilities
|
70,934 | 75,719 | ||||||
Contingent value rights, net of current portion
|
6,000 | 14,532 | ||||||
Long-term indebtedness, net of current portion
|
29,657 | 30,239 | ||||||
Deferred revenue, net of current portion
|
3,823 | 4,386 | ||||||
Other liabilities
|
1,940 | 1,882 | ||||||
Total liabilities
|
112,354 | 126,758 | ||||||
Commitments and contingencies
|
- | - | ||||||
Stockholders’ equity:
|
||||||||
Preferred stock, $0.001 par value; 15,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively
|
- | - | ||||||
Common stock, $0.001 par value; 100,000,000 shares authorized, 35,424,190 and 35,011,423 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively
|
35 | 35 | ||||||
Additional paid-in capital
|
204,367 | 197,689 | ||||||
Accumulated other comprehensive loss
|
(2,803 | ) | (2,110 | ) | ||||
Retained earnings
|
152,453 | 173,850 | ||||||
Total Emergent BioSolutions Inc. stockholders’ equity
|
354,052 | 369,464 | ||||||
Noncontrolling interest in subsidiary
|
4,871 | 4,097 | ||||||
Total stockholders’ equity
|
358,923 | 373,561 | ||||||
Total liabilities and stockholders’ equity
|
$ | 471,277 | $ | 500,319 |
Emergent BioSolutions Inc. and Subsidiaries
|
||||||||
Consolidated Statements of Operations
|
||||||||
(in thousands, except per share data)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
Revenues:
|
||||||||
Product sales
|
$ | 5,597 | $ | 38,853 | ||||
Contracts and grants
|
12,936 | 7,947 | ||||||
Total revenues
|
18,533 | 46,800 | ||||||
Operating expenses:
|
||||||||
Cost of product sales
|
1,068 | 7,508 | ||||||
Research and development
|
34,759 | 19,922 | ||||||
Selling, general and administrative
|
18,212 | 16,192 | ||||||
Income (loss) from operations
|
(35,506 | ) | 3,178 | |||||
Other income (expense):
|
||||||||
Interest income
|
35 | 388 | ||||||
Interest expense
|
- | (5 | ) | |||||
Other income (expense), net
|
(1 | ) | (8 | ) | ||||
Total other income (expense)
|
34 | 375 | ||||||
Income (loss) before provision for (benefit from) income taxes
|
(35,472 | ) | 3,553 | |||||
Provision for (benefit from) income taxes
|
(12,299 | ) | 1,635 | |||||
Net income (loss)
|
(23,173 | ) | 1,918 | |||||
Net loss attributable to noncontrolling interests
|
1,776 | 605 | ||||||
Net income (loss) attributable to Emergent BioSolutions Inc.
|
$ | (21,397 | ) | $ | 2,523 | |||
Earnings per share - basic
|
$ | (0.61 | ) | $ | 0.08 | |||
Earnings per share - diluted
|
$ | (0.61 | ) | $ | 0.08 | |||
Weighted-average number of shares - basic
|
35,179 | 30,880 | ||||||
Weighted-average number of shares - diluted
|
35,179 | 31,433 |
Emergent BioSolutions Inc. and Subsidiaries
|
||||||||
Consolidated Statements of Cash Flows
|
||||||||
(in thousands)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$ | (23,173 | ) | $ | 1,918 | |||
Adjustments to reconcile to net cash provided by (used in) operating activities:
|
||||||||
Stock-based compensation expense
|
2,441 | 1,522 | ||||||
Depreciation and amortization
|
2,235 | 1,296 | ||||||
Deferred income taxes
|
2,879 | 819 | ||||||
Non-cash development expenses from joint ventures
|
2,550 | 17 | ||||||
(Gain) Loss on disposal of property and equipment
|
13 | (34 | ) | |||||
Provision for impairment of long-lived assets
|
- | 548 | ||||||
Provision for fair value of contingent value rights
|
581 | - | ||||||
Excess tax benefits from stock-based compensation
|
(39 | ) | (376 | ) | ||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
27,350 | 21,467 | ||||||
Inventories
|
(9,441 | ) | (3,560 | ) | ||||
Income taxes
|
(15,238 | ) | (2,459 | ) | ||||
Prepaid expenses and other assets
|
1,008 | 576 | ||||||
Accounts payable
|
(453 | ) | 1,115 | |||||
Accrued expenses and other liabilities
|
6 | 146 | ||||||
Accrued compensation
|
(10,288 | ) | (5,580 | ) | ||||
Deferred revenue
|
(2,486 | ) | (14 | ) | ||||
Net cash provided by (used in) operating activities
|
(22,055 | ) | 17,401 | |||||
Cash flows from investing activities:
|
||||||||
Purchases of property, plant and equipment
|
(8,432 | ) | (5,030 | ) | ||||
Purchase of investments
|
(4,309 | ) | - | |||||
Net cash used in investing activities
|
(12,741 | ) | (5,030 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from borrowings on line of credit
|
- | 15,000 | ||||||
Issuance of common stock subject to exercise of stock options
|
4,198 | 1,253 | ||||||
Principal payments on long-term indebtedness and line of credit
|
(842 | ) | (15,755 | ) | ||||
Excess tax benefits from stock-based compensation
|
39 | 376 | ||||||
Net cash provided by financing activities
|
3,395 | 874 | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
(693 | ) | 215 | |||||
Net increase (decrease) in cash and cash equivalents
|
(32,094 | ) | 13,460 | |||||
Cash and cash equivalents at beginning of period
|
169,019 | 102,924 | ||||||
Cash and cash equivalents at end of period
|
$ | 136,925 | $ | 116,384 |