BioLife Solutions Inc (BLFS) 2024 Q1 法說會逐字稿

Welcome to the BioLife Solutions first Quarter 2024 financial results and business Update.

歡迎閱讀 BioLife Solutions 2024 年第一季財務表現和業務更新。

(Operator instructions)

（操作員說明）

I would now like to turn the call over to your host, Troy Wichterman, Chief Financial Officer. Troy, you may begin.

現在我想將電話轉給主持人財務長 Troy Wichterman。特洛伊，你可以開始了。

Thank you, operator. Good afternoon, everyone, and thank you for joining the BioLife Solutions 2024 first - quarter earnings conference call. On this call, we will cover business highlights and financial performance for the quarter and reiterate our previous comments on full year 2024 revenue guidance. Earlier today, we issued a press release announcing our financial results and operational highlights for the first quarter of 2024, which is available at biolifesolutions.com.

謝謝你，接線生。大家下午好，感謝您參加 BioLife Solutions 2024 年第一季財報電話會議。在本次電話會議上，我們將介紹本季的業務亮點和財務業績，並重申我們先前對 2024 年全年收入指引的評論。今天早些時候，我們發布了一份新聞稿，宣布了 2024 年第一季的財務業績和營運亮點，該新聞稿可在 biolifesolutions.com 上取得。

As a reminder, during this call, we will make forward-looking statements. These statements are subject to risks and uncertainties that can be found in our SEC filings. These statements speak only as of the date given, and we undertake no obligation to update them. We will also speak to non-GAAP or adjusted results. Reconciliations of GAAP to non-GAAP or adjusted financial metrics are included in the press release we issued this afternoon.

提醒一下，在這次電話會議中，我們將做出前瞻性陳述。這些聲明存在風險和不確定性，這些風險和不確定性可以在我們向 SEC 提交的文件中找到。這些聲明僅代表截至日期的情況，我們不承擔更新這些聲明的義務。我們也將討論非公認會計原則或調整後的結果。我們今天下午發布的新聞稿中包含了 GAAP 與非 GAAP 或調整後的財務指標的調整。

Now I'd like to turn the call over to Rod De Greef, Chairman and CEO of BioLife.

現在我想將電話轉給 BioLife 董事長兼執行長 Rod De Greef。

Thanks, Troy. Good afternoon, and thank you for joining us for BioLife's first - quarter 2024 Earnings Call. In addition to Troy Wichterman, our CFO, I've invited Garrie Richardson, our Chief Revenue Officer, who will provide additional granularity on our Q1 revenue numbers and end market dynamics. He will also speak to our expertise and our strategy to continue to grow our market-leading franchise in bond preservation.

謝謝，特洛伊。下午好，感謝您參加 BioLife 2024 年第一季財報電話會議。除了我們的財務長 Troy Wichterman 之外，我還邀請了我們的首席營收長 Garrie Richardson，他將提供有關我們第一季營收數據和終端市場動態的更多詳細資訊。他還將介紹我們的專業知識和我們的策略，以繼續發展我們在債券保存方面的市場領先特許經營權。

To begin, I'm pleased to report another quarter of sequential revenue growth in our core cell processing business and increased confidence in our full year outlook of $95.5 million to $100 million in revenue. While early in the year, it's an encouraging start and helps substantiate our belief that we are now beginning to experience an easing macro environment, particularly in the bioproduction subsector we operate in.

首先，我很高興地報告我們的核心細胞處理業務收入又實現了一個季度的環比增長，並對我們全年 9550 萬至 1 億美元收入的前景信心增強。雖然在今年年初，這是一個令人鼓舞的開始，並有助於證實我們的信念，即我們現在開始經歷寬鬆的宏觀環境，特別是在我們經營的生物生產子行業。

With the strategic shift away from our legacy freezer products largely behind us, going forward our revenues will be primarily from our high-margin cell processing platform and our bioStorage and services platform and our full year guidance does not include any revenue from freezer product lines.

隨著我們對傳統冷凍機產品的策略轉變基本上已經過去，未來我們的收入將主要來自我們的高利潤細胞處理平台以及我們的生物儲存和服務平台，我們的全年指導不包括來自冷凍機產品線的任何收入。

Our strategic return to focus on recurring revenue was a thoughtful one as navigating a capital-constrained market like this one is hard to do with low-margin capital equipment and working capital-intensive products. Further, with this renewed focus, we have set out streamlining our operations, freeing up resources to apply in areas in which we win and where we are the clear market leader, which is at the forefront of the fast-evolving CGT industry with a critical enabling consumable.

我們將重點放在經常性收入上的策略回報是經過深思熟慮的，因為利用低利潤的資本設備和營運資本密集型產品很難在像這樣的資本受限的市場中航行。此外，隨著這一新的重點，我們開始簡化我們的運營，釋放資源，用於我們獲勝的領域以及我們明顯的市場領導者，這些領域處於快速發展的 CGT 行業的最前沿，具有關鍵的啟用消耗品。

As a reminder, this April, we announced the divestiture of our GCI Freezer unit, also known to many as Stirling. This divestiture was a substantial endeavor that required considerable time and effort to complete but is strategic and immediately enhances the financial profile and operations of the company. First quarter pro forma results, excluding GCI, clearly illustrate that by demonstrating an almost instant and significantly positive impact on our financial metrics.

謹此提醒，今年 4 月，我們宣布剝離 GCI 冷凍機部門（也稱為斯特林）。此次剝離是一項重大工作，需要大量時間和精力才能完成，但具有戰略意義，可以立即增強公司的財務狀況和營運。第一季預計業績（不包括 GCI）清楚地表明了這一點，它對我們的財務指標產生了幾乎即時且顯著的正面影響。

Specifically, excluding GCI from BioLife in Q1, our adjusted gross margin would have been 53% instead of 40%, and our adjusted EBITDA in absolute terms would have been a positive $3.6 million instead of negative $1.2 million. And further, these pro forma results set a new baseline from which we anticipate further margin expansion throughout the year based on operating leverage realized as our high-margin cell processing platform continues to grow as a percentage of total sales.

具體來說，如果將第一季的GCI 排除在BioLife 之外，我們調整後的毛利率將為53%，而不是40%，調整後EBITDA 的絕對值將為正360 萬美元，而不是負120萬美元。此外，這些預期結果設定了一個新的基準，隨著我們的高利潤細胞處理平台佔總銷售額的百分比持續成長，我們預計全年的利潤率將根據營運槓桿進一步擴大。

Turning to the last of the freezer assets, CBS, which represented approximately 11% of Q1 sales and has been a historical drag on our profitability, we remain fully committed to exiting this business as swiftly and efficiently as possible. We are in the middle of this process. And given the sensitivities around the transaction, we are unable to share further details at this time, but we will provide an update as soon as it becomes appropriate to do so.

談到最後一項冷凍資產 CBS，它約佔第一季銷售額的 11%，並且一直拖累我們的盈利能力，我們仍然完全致力於盡快、高效地退出這項業務。我們正處於這個過程的中間。考慮到交易的敏感性，我們目前無法分享更多細節，但我們將在適當的時候立即提供更新。

As we work through this process, we recently implemented a reduction in cash operating expenses at CBS totaling $1.2 million per year. Assuming CBS revenue remains relatively constant, which we do, these cuts immediately allow CBS to generate positive adjusted EBITDA.

在我們完成這項流程的過程中，我們最近將 CBS 的現金營運支出每年削減了 120 萬美元。假設 CBS 的收入保持相對穩定（我們確實這麼做了），這些削減將立即讓 CBS 產生正的調整後 EBITDA。

While I'll let Garrie speak to Q1 revenue in more detail, I'll briefly address what we're seeing on a more macro level. The initial easing of industry-wide headwinds that began to emerge in Q4 of last year, continued into Q1. For BioLife, this meant less inventory destocking pressure from our larger direct customers and continued improvement in sequential distributor revenue, which we view as a proxy for the earlier stage research focused market segment.

雖然我會讓 Garrie 更詳細地談論第一季的收入，但我將簡要討論我們在更宏觀層面上看到的情況。去年第四季開始出現的全行業不利因素的初步緩解一直持續到第一季。對於 BioLife 來說，這意味著來自我們較大的直接客戶的庫存去庫存壓力較小，而經銷商收入連續改善，我們將其視為早期階段研究重點細分市場的代表。

As mentioned earlier, this allowed us to post a 10% sequential increase in our cell processing revenue, which followed on the 11% increase we saw from Q3 to Q4 of last year. Our BioStorage and services platform also realized sequential improvement, posting 7% revenue growth over Q4 of last year. Overall, we expect to see these trends continue to some degree throughout the remainder of this year.

如前所述，這使我們的細胞處理收入在去年第三季至第四季成長 11% 後連續成長 10%。我們的 BioStorage 和服務平台也實現了環比改善，營收比去年第四季成長了 7%。總體而言，我們預計這些趨勢將在今年剩餘時間內在某種程度上持續下去。

The fundamental drivers for our cell processing revenue growth, specifically our biopreservation media revenue, include our market-leading share of commercially sponsored clinical trials and the overall regulatory environment for CGT. We believe that we have a market share in excess of 70% of the relevant commercially sponsored clinical trials in the U.S. with approximately 45 Phase II and Phase III trials utilizing CryoStor.

我們的細胞處理收入成長的基本驅動力，特別是我們的生物保存介質收入，包括我們在商業贊助的臨床試驗中的市場領先份額以及 CGT 的整體監管環境。我們相信，我們在美國擁有超過 70% 的相關商業贊助臨床試驗的市場份額，其中約有 45 項 II 期和 III 期試驗使用 CryoStor。

In Q1, the CGT regulatory environment continued to carry forward the momentum that started last year, with our biopreservation media embedded in 2 newly approved therapies, bringing the total approved commercial therapies we support to 15 at the end of the quarter. In addition, and equally important relative to driving biopreservation media revenue in the future, there were 2 new indications, 1 new geographic area, and 4 earlier lines of treatment approved for BioLife supported therapies.

第一季度，CGT 監管環境繼續發揚去年開始的勢頭，我們的生物保存介質嵌入 2 種新批准的療法中，使我們支持的批准商業療法總數在本季度末達到 15 種。此外，對於推動未來生物保存媒介收入同樣重要的是，BioLife 支持療法有 2 個新適應症、1 個新地理區域和 4 個早期治療系列獲得批准。

We see an additional 11 similar approval opportunities over the next 12 months. The above market share clearly confirms that BioLife has evolved into the industry standard and biopreservation media and has established itself as a leading provider of premium bioproduction tools and services. The critical picks and shovels that need to be frequently replenished and which support the fast-growing CGT industry.

我們預計未來 12 個月內將有 11 個類似的批准機會。上述市場份額清楚地證實了 BioLife 已發展成為行業標準和生物保存介質，並已成為優質生物生產工具和服務的領先提供者。需要經常補充並支持快速成長的 CGT 行業的關鍵鎬和鏟。

As we continue to take the steps necessary to optimize our business to focus on our self-processing platform, I'm convinced more than ever that BioLife is in pole position to benefit as industry headwinds continue to ease and this space further matures, expanding upon our already dominant share of the market and offering diversified exposure to this nascent industry, which has an expected CAGR of 20% to 25% through 2033.

隨著我們繼續採取必要的步驟來優化我們的業務以專注於我們的自我處理平台，我比以往任何時候都更加相信，隨著行業逆風的持續緩解以及該領域的進一步成熟，BioLife 處於受益的有利地位，我們已經佔據了市場主導地位，並為這個新興行業提供多元化投資，預計到 2033 年，該行業的複合年增長率將達到 20% 至 25%。

Now I'll turn the call over to Garrie, who will provide some additional insight on Q1 revenue as well as our sales organization and go-to-market strategy.

現在我將把電話轉給 Garrie，他將提供有關第一季收入以及我們的銷售組織和上市策略的更多見解。

Thanks, Rod, and it's a pleasure to participate in my first earnings call. By way of background, I have over 25 years of business development, sales and marketing experience with 18 years of that spend in the biopharma sector. I've been with BioLife for 3.5 years since it acquired SciSafe in late 2020. SciSafe is a biostorage company I founded in 2010, growing it to $7.1 million of revenue in 2020.

謝謝羅德，很高興參加我的第一次財報電話會議。就背景而言，我擁有超過 25 年的業務開發、銷售和行銷經驗，其中 18 年在生物製藥領域。自從 BioLife 於 2020 年底收購 SciSafe 以來，我已經在 BioLife 工作了 3.5 年。SciSafe 是我於 2010 年創立的生物儲存公司，到 2020 年收入已增至 710 萬美元。

Post acquisition, I joined BioLife to continue operating our biorepository business and working with a broader sales and marketing team until last October when I stepped into the Chief Revenue Officer role.

收購後，我加入 BioLife 繼續經營我們的生物樣本庫業務，並與更廣泛的銷售和行銷團隊合作，直到去年 10 月我擔任首席營收長。

As detailed in our press release, although both of our product platforms were down against difficult prior year comps, our cell processing and BioStorage services platform each delivered continued sequential growth in Q1, and I'd like to provide a little more color on each platform.

正如我們的新聞稿中所詳述的，儘管我們的兩個產品平台都比去年困難的比較有所下降，但我們的細胞處理和生物儲存服務平台在第一季均實現了持續的連續成長，我想在每個平台上提供更多的資訊。

For our cell processing platform, our biopreservation media accounts for the vast majority of revenue, and there are several metrics we track quarterly. Our top 20 customers provided approximately 80% of total media revenue in Q1, and sales to direct customers having approved therapies totaled approximately 40% of direct media revenue. All of these metrics are in line with recent historical levels.

對於我們的細胞處理平台，我們的生物保存介質佔收入的絕大多數，我們每季追蹤幾個指標。我們的前 20 位客戶提供了第一季媒體總收入的約 80%，向已批准療法的直接客戶的銷售總額約佔直接媒體收入的 40%。所有這些指標都符合最近的歷史水準。

I would also like to note that revenue provided by our other cell processing tools increased compared to prior year and sequentially, which for me is an indication that we are beginning to see some early results from our recent focus on cross-selling into our key media accounts, which positively impacted our closed fluid management system sales.

我還想指出的是，我們其他細胞處理工具提供的收入與上一年相比連續增加，對我來說這表明我們開始看到我們最近專注於關鍵媒體交叉銷售的一些早期成果帳戶，這對我們的封閉式流體管理系統銷售產生了正面影響。

Both storage and evo grew sequentially, and we continue to add new customers and gain additional revenue from existing relationships on the BioStorage side of things. The evo business is somewhat lumpier and that onboarding new clients drive revenue growth, and we do expect to see some of that occur in the second half of this year.

儲存和 evo 都持續成長，我們不斷增加新客戶，並從 BioStorage 方面的現有關係中獲得額外收入。evo 業務有些不穩定，新客戶的加入會推動營收成長，我們預計今年下半年會出現一些成長。

I'd like to turn to our commercial team and summarize our go-forward strategy. Our team consists of 8 experienced sales individuals who have a high degree of technical expertise in the CGT space. Of note is the strength and depth of our team's existing relationships with many of the world's leading biopharma companies. Our commercial strategy is based on leveraging the technical expertise of the commercial team and the strength of their existing media relationships to introduce our other cell processing solutions, also known simply as cross-selling.

我想向我們的商業團隊介紹我們的前進策略。我們的團隊由 8 位經驗豐富的銷售人員組成，他們在 CGT 領域擁有高度的技術專業知識。值得注意的是我們團隊與許多世界領先的生物製藥公司現有關係的強度和深度。我們的商業策略是基於利用商業團隊的技術專長及其現有媒體關係的優勢來介紹我們的其他細胞處理解決方案，也簡稱為交叉銷售。

On the media side, the focus is on exploiting our leadership position in biopreservation so that any new or early-stage CGT participants are aware of our media and will evaluate it, and also to ensure that the relationship with our more mature customers remains robust, so that we remain a key biopreservation supplier for their next-generation therapies. We have several initiatives underway, which we will deploy in the near term, which will broaden and solidify the definition of our market prominence beyond the media market share to driving best practices in cell and gene therapy bioproduction.

在媒體方面，重點是利用我們在生物保存方面的領導地位，以便任何新的或早期的 CGT 參與者都了解我們的媒體並對其進行評估，同時確保與更成熟的客戶保持牢固的關係，因此我們仍然是他們下一代療法的主要生物保存供應商。我們正在進行多項舉措，我們將在短期內部署這些舉措，這將擴大和鞏固我們市場重要性的定義，超越媒體市場份額，推動細胞和基因治療生物生產的最佳實踐。

In closing, I am really excited to assume this role, I inherited a solid foundation with an excellent technical and passionate team, and I look forward to applying my energy and expertise to this role.

最後，我非常高興能夠擔任這個角色，我繼承了一支優秀技術和充滿熱情的團隊的堅實基礎，我期待著將我的精力和專業知識運用到這個角色中。

Now I'll turn the call over to Troy.

現在我將把電話轉給特洛伊。

Thank you, Garrie. We reported Q1 revenue of $31.7 million, representing a decrease of 16% year-over-year. The year-over-year decrease was primarily related to a 35% decrease in revenue from our freezers and Bio platform and a 15% decrease in our cell processing platform, partially offset by a 25% increase in our BioStorage services platform.

謝謝你，加里。我們報告第一季營收為 3,170 萬美元，年減 16%。年比下降主要與我們的冰箱和生物平台收入下降 35% 以及我們的細胞處理平台收入下降 15% 有關，但部分被我們的 BioStorage 服務平台收入增加 25% 所抵消。

Total revenue was down sequentially from Q4 2023 by $1 million or 3%. The sequential decrease was due to a $2.9 million decrease in our freezer sales, partially offset by a $1.4 million or 10% increase in cell processing and $500,000 or 7% increase in BioStorage services. On April 17, we successfully divested our Global Cooling business or GCI. The transaction required $7 million of cash to remain on the balance sheet of GCI and the repayment of $2.6 million in GCI long-term debt.

總營收較 2023 年第四季連續下降 100 萬美元，即 3%。環比下降的原因是我們的冰箱銷售額減少了 290 萬美元，部分被細胞處理業務增加 140 萬美元（即 10%）以及生物儲存服務業務增加了 50 萬美元（即 7%）所抵消。4 月 17 日，我們成功剝離了全球冷卻業務（GCI）。該交易需要在 GCI 的資產負債表上保留 700 萬美元的現金，並償還 GCI 260 萬美元的長期債務。

We also implemented our risks at GCI prior to closing. As a result of this transaction, we will significantly reduce cash burn related to GCI, improve our financial profile and remove a $7.5 million warranty liability. As disclosed in our 8-K filed on April 23, GCI had negative gross margins in 2023 in addition to approximately $18 million in SG&A and R&D GAAP operating expenses.

我們也在交割前在 GCI 實施了風險。透過此交易，我們將大幅減少與 GCI 相關的現金消耗，改善我們的財務狀況，並消除 750 萬美元的保固責任。正如我們在 4 月 23 日提交的 8-K 中所揭露的那樣，除了大約 1800 萬美元的 SG&A 和研發 GAAP 營運費用外，GCI 在 2023 年的毛利率為負。

As a result of the divestiture of GCI, we are presenting certain financial metrics without the results of GCI to provide context to our expected future results for this year. All results presented in this manner are non-GAAP. Adjusted gross margin for the first quarter was 40% compared with 37% in the prior year. The increase was primarily due to more favorable product mix and better utilization at our biorepository facilities.

由於 GCI 剝離，我們將在沒有 GCI 結果的情況下提供某些財務指標，以便為我們今年的預期未來結果提供背景資訊。以這種方式呈現的所有結果都是非公認會計原則的。第一季調整後毛利率為 40%，去年同期為 37%。這一增長主要是由於我們的生物樣本庫設施更有利的產品組合和更好的利用率。

Adjusted gross margin, excluding GCI, was 53%. GAAP operating expenses for Q1 2024 were $41.9 million versus $51.3 million in Q1 2023. The decrease compared to the prior year was largely due to a reduction in headcount that took place at the end of Q3 2023. Adjusted operating expenses for Q1 2024 totaled $21.6 million compared with $24.6 million in the prior year. Our adjusted operating loss for the first quarter of 2024 was $9.1 million compared with $10.6 million in Q1 2023. Our GAAP net loss was $10.2 million in Q1 compared to $13.7 million in the prior year. The decrease in net loss was primarily due to lower personnel expenses.

調整後毛利率（不含 GCI）為 53%。2024 年第一季的 GAAP 營運費用為 4,190 萬美元，而 2023 年第一季為 5,130 萬美元。與前一年相比減少的主要原因是 2023 年第三季末員工人數減少。2024 年第一季調整後營運費用總計 2,160 萬美元，而前一年為 2,460 萬美元。2024 年第一季調整後的營運虧損為 910 萬美元，而 2023 年第一季為 1,060 萬美元。第一季我們的 GAAP 淨虧損為 1,020 萬美元，而去年同期為 1,370 萬美元。淨虧損減少主要是因為人員費用減少。

Adjusted EBITDA for the first quarter of 2024 was negative $1.2 million compared with negative $1.1 million in the prior year. Adjusted EBITDA remained flat from the prior year due to lower personnel costs, partially offset by lower revenue from our cell processing platform. Our adjusted EBITDA decreased $1.9 million sequentially from Q4 2023, primarily due to an indirect tax true-up in the 2024 bonus accrual. Adjusted EBITDA, excluding GCI, was positive $3.6 million or 13% of revenues, excluding GCI for the quarter.

2024 年第一季調整後 EBITDA 為負 120 萬美元，而前一年為負 110 萬美元。由於人員成本下降，調整後的 EBITDA 與上年持平，但部分被我們的細胞處理平台收入下降所抵消。與 2023 年第四季相比，我們調整後的 EBITDA 連續減少了 190 萬美元，這主要是由於 2024 年獎金應計額中的間接稅調整。調整後 EBITDA（不含 GCI）為正 360 萬美元，佔本季營收（不含 GCI）的 13%。

Turning to our balance sheet. Our cash and marketable securities balance at March 31, 2024, was $46.1 million compared with $52.3 million at December 31, 2023. Taking into consideration our adjusted EBITDA of negative $1.2 million cash used in Q1 2024 was primarily related to working capital of $2.6 million, financing payments of $1 million and capital expenditures of $900,000. Our SVB long-term debt balance was $20 million, which is interest-only through Q2 2024 with quarterly repayments of $2.5 million beginning in Q3 2024.

轉向我們的資產負債表。截至 2024 年 3 月 31 日，我們的現金和有價證券餘額為 4,610 萬美元，而 2023 年 12 月 31 日為 5,230 萬美元。考慮到 2024 年第一季使用的調整後 EBITDA 為負 120 萬美元，現金主要與 260 萬美元的營運資金、100 萬美元的融資付款和 90 萬美元的資本支出有關。我們的 SVB 長期債務餘額為 2,000 萬美元，截至 2024 年第二季均為只還利息，從 2024 年第三季開始每季還款 250 萬美元。

Turning to 2024 revenue guidance. We are affirming our previous guidance, which is based on expectations for our cell processing and BioStorage services platform and does not include any revenue from freezer product lines. The BioStorage service platform now includes the ThawSTAR automated thawing devices product line.

轉向 2024 年收入指引。我們確認先前的指導，該指導基於對我們的細胞處理和生物儲存服務平台的預期，不包括來自冷凍產品線的任何收入。BioStorage 服務平台現包括 ThawSTAR 自動解凍設備產品線。

Total revenue is expected to be $95.5 million to $100 million, reflecting an overall growth of 2% to 7%. Our cell processing platform is expected to contribute $66 million to $68.5 million or flat to 4% growth over 2023. Our BioStorage services platform is expected to contribute $29.5 million to $31.5 million or 5% to 12% growth over 2023 and on a like-for-like basis, growth of 10% to 16%. In addition, we expect revenue, gross margin and adjusted EBITDA growth throughout 2024. Finally, in terms of our share count, as of May 3, we had 46 million shares issued and outstanding and 48.7 million shares on a fully diluted basis.

總收入預估為 9,550 萬美元至 1 億美元，整體成長 2% 至 7%。我們的細胞處理平台預計將在 2023 年貢獻 6,600 萬至 6,850 萬美元的收入，即成長 4%。我們的 BioStorage 服務平台預計將在 2023 年貢獻 2,950 萬至 3,150 萬美元，成長 5% 至 12%，年增 10% 至 16%。此外，我們預計 2024 年收入、毛利率和調整後 EBITDA 將實現成長。最後，就我們的股份數量而言，截至 5 月 3 日，我們已發行和流通的股票為 4,600 萬股，完全稀釋後的股票為 4,870 萬股。

Now I'll turn the call back to the operator to open up for questions.

現在我將把電話轉回接線員以提出問題。

At this time, we will conduct the question-and-answer session.

這時，我們將進行問答環節。

(Operator Instructions)

（操作員說明）

Paul, KeyBanc.

保羅，KeyBanc。

Hi, Rod. Could you see the result of higher technology financing in 4Q? And specifically, there seems to be a big uptick sequentially in cell and gene as well. But did you see that yet?

嗨，羅德。您能看到第四季高技術融資的結果嗎？具體來說，細胞和基因似乎也持續大幅上升。但你看到了嗎？

Paul, I think if we were going to see that, we would see it in the sequential increase from our largest distributor, which we look at as a proxy for sort of that academic early-stage biotech market segment, if you will. So we did see an uptick there sequentially. So to the extent that they raised capital that flowed through, it allowed them to start or continue their operations clinically.

保羅，我認為如果我們要看到這一點，我們會在我們最大的分銷商的連續增長中看到它，如果你願意的話，我們將其視為學術早期生物技術細分市場的代表。所以我們確實看到了那裡的連續上升。因此，就他們籌集的資金而言，這使他們能夠開始或繼續臨床運作。

And what's your view on -- I think you would in the past had mentioned exiting Q4 at a 20% EBITDA margin. Are you still thinking that's possible? And what do you think the business really drives that long term on EBITDA margin?

您的看法是什麼 - 我想您過去會提到以 20% 的 EBITDA 利潤率退出第四季度。你還認為這是可能的嗎？您認為該業務真正推動長期 EBITDA 利潤率的因素是什麼？

Yes. Well, we're certainly committed to that goal, Paul, of hitting adjusted EBITDA with a 2 in front of it by the end of next year. Clearly, that's going to be driven and dependent upon the overall media, in particular, the media revenue growth between now and the end of the year because that's really the financial engine. Longer term, it's all about the growth on the media and the flow-through of that revenue stream is outstanding. So could we get to adjusted EBITDA with the 3 in front of it toward the end of '25, early '26, I think that's achievable.

是的。保羅，我們當然致力於實現這個目標，即在明年年底前實現調整後 EBITDA 前面為 2 的目標。顯然，這將受到整體媒體的推動和依賴，特別是從現在到年底的媒體收入成長，因為這確實是財務引擎。從長遠來看，這一切都與媒體的成長有關，而且收入流的流動非常出色。那麼，我們能否在 25 年底、26 年初調整調整後的 EBITDA（前面有 3），我認為這是可以實現的。

Lastly, it's good to hear Garrie on the call. Garrie, what do you see on the competitive front? Is it still home brew or others trying to enter it? What's the nature of competition that you see?

最後，很高興聽到加里打電話。Garrie，您對競爭方面有何看法？它仍然是自釀啤酒還是其他人試圖進入它？您認為競爭的本質是什麼？

Yes, Paul, nice to meet you. So I think our strategy is really primarily around protecting, growing, and leveraging, our biopreservation media. And I think that is the focus and making sure that we do protect that position long term. So I think we're committed to making sure that we remain the primary leader in this space. So I think as far as I'm concerned, that's my primary objective to keep us exactly where we are today.

是的，保羅，很高興認識你。所以我認為我們的策略實際上主要是圍繞著保護、種植和利用我們的生物保存介質。我認為這是重點，並確保我們能夠長期保護這一地位。因此，我認為我們致力於確保我們仍然是這個領域的主要領導者。所以我認為，就我而言，我的首要目標是讓我們保持在今天的狀態。

Jacob, Stephens Inc.

雅各史蒂芬斯公司

This is actually Hannah on for Jacob. Is there any update on the sale of CBS? Do you still expect to complete this transaction in the near term? And do you still expect cash proceeds?

這其實是漢娜為雅各代言。CBS 出售有什麼最新消息嗎？您是否仍期望在短期內完成這筆交易？您還期望現金收益嗎？

Yeah, Hannah, thanks for the question. We're right in the middle of this process of divesting CBS. And because we're right in the middle of it, I'm going to be fairly circumspect in what I say, which is not a lot. We do expect cash proceeds from it, albeit modest. With respect to timing, I think it's fair to say that I've been overly optimistic when it comes to trying to define what the time lines are with these divestitures. But what I will say is what's important that we did recently is to reduce operating expenses at CBS by $1.2 million per year, which immediately makes CBS slightly positive from an adjusted EBITDA perspective. So to the extent that it takes us a little bit longer than we originally anticipated, it will not be that cash burden that we've seen in the past.

是的，漢娜，謝謝你的提問。我們正處於剝離哥倫比亞廣播公司的過程中。因為我們正處於其中，所以我會在說話時相當謹慎，這並不是很多。我們確實期望從中獲得現金收益，儘管金額不大。就時間安排而言，我認為可以公平地說，在試圖確定這些資產剝離的時間表時，我過於樂觀了。但我要說的是，我們最近所做的重要事情是每年將 CBS 的營運費用減少 120 萬美元，這立即使 CBS 從調整後的 EBITDA 角度來看略有積極。因此，如果我們花費的時間比我們最初預期的要長一些，那麼它就不會是我們過去看到的那種現金負擔。

Great. And then some of the traditional bioprocessing players have pointed to a pickup in orders. Is there any way to speak to what you're seeing in the order book as we think about the potential for a back half recovery?

偉大的。然後一些傳統生物加工企業指出訂單增加。當我們考慮後半段復甦的潛力時，有什麼辦法可以說明您在訂單簿中看到的情況嗎？

I think, look, the sequential increase is what we've been focused on and what we've talked about for the last couple of quarters here. The feedback that we have from our customers that are providing us with the rolling 4-quarter projection is that the second half of the year continues to be more positive, which is what they've been telling us for the last 2 quarters. So nothing has really changed in that regard.

我認為，看，連續成長是我們過去幾季一直關注和討論的內容。我們從向我們提供第四季度滾動預測的客戶那裡得到的反饋是，今年下半年的情況繼續更加積極，這是他們在過去兩個季度告訴我們的。所以在這方面沒有任何真正的改變。

Matt, Jefferies.

馬特、傑弗里斯.

Hi, thanks. Maybe one for you, Troy. As we think about the EBITDA margins in the back half of '21, I think you guys had prior said the 16% to 18% range in the back half made sense. Is that still the case? And I guess, can you just kind of help us bridge from the 13% pro forma on 1Q to the 16% to 18% in the back half. Is that entirely just mix dynamics tied to media?

你好謝謝。也許有一個適合你，特洛伊。當我們考慮 21 年下半年的 EBITDA 利潤率時，我想你們之前說過下半年 16% 到 18% 的範圍是有道理的。現在還是這樣嗎？我想，你能否幫助我們從第一季的 13% 預計到後半段的 16% 到 18%。這完全只是與媒體相關的混合動力嗎？

Yes. There's 2 aspects to that 16% to 18% we previously disclosed. One is that also excluded CBS. So CBS as a financial drag, not to nearly the same extent as GCI, but it still drags down our margin percentages. That's one reason. And the other reason is what you pointed out, lower media sales in Q1 versus that first half of 2023. And then as far as your question, too, is that a good number looking at the second half? Yes, it would be definitely -- or sorry, XCBS as well, which, as Rod mentioned, we're in the middle of that divestiture process. And our goal is to hit a 20% margin at the end of Q4.

是的。我們之前揭露的 16% 到 18% 有兩個面向。一是哥倫比亞廣播公司也被排除在外。因此，CBS 作為財務拖累，其程度與 GCI 幾乎不同，但它仍然拖累了我們的利潤率。這是原因之一。另一個原因是您所指出的，與 2023 年上半年相比，第一季的媒體銷售額較低。然後就你的問題而言，從下半年來看，這個數字是否合適？是的，這肯定是——或者抱歉，XCBS 也是如此，正如羅德所提到的，我們正處於剝離過程中。我們的目標是在第四季末達到 20% 的利潤率。

Okay. Great. And then, Rod, maybe one for you, just higher level, with Sterling in the rearview now, took a lot of time and energy that went into that deal. Would love to just hear a bit more about what you're focused on or excited from here, maybe some of the areas you'll look to spend some time on going forward. Thanks

好的。偉大的。然後，羅德，也許一個適合你的，只是更高的水平，斯特林現在已經成為後視鏡，花了很多時間和精力來完成這筆交易。我很想聽聽更多關於您在這裡關注或興奮的事情，也許您會在某些領域花一些時間來推進。謝謝

Yes, you bet. I think clearly, we still need to finish the divestiture of CBS -- we are in the process of a pretty comprehensive strategic review of our product portfolio internally. So we're having some fun going through that process. I look forward to working with Garrie and the marketing team on the initiatives that he mentioned, which market share is one measurement of our leadership position in biopreservation, but we have some things in mind that we're going to let loose here in the next quarter or 2, which will sort of put that -- the definition of leadership, it will expand the scope of that. So I look forward to being involved in that, too.

是的，你敢打賭。我清楚地認為，我們仍然需要完成對 CBS 的剝離——我們正在內部對我們的產品組合進行相當全面的策略審查。所以我們在這個過程中很有趣。我期待與 Garrie 和行銷團隊合作實施他提到的舉措，市場份額是衡量我們在生物保護領域領導地位的一個衡量標準，但我們有一些想法，我們將在接下來的時間裡放開四分之一或第二季度，這將在某種程度上提出領導力的定義，它將擴大其範圍。所以我也期待參與其中。

Matt, Craig-Hallum Capital Group.

馬特，克雷格-哈勒姆資本集團。

Maybe first up to extrapolate a little bit on the funding environment. Obviously, there was an improvement to Q1. And I'm just curious, historically, how long of a lag is it between when your customers and partners are seeing or increased funding or feeling better about their balance sheets to when trials are kicking off, when do you start to see those orders? Is it 1 quarter? Is it 2 quarters? Just help us think through the lag there.

也許首先要對融資環境做一些推論。顯然，第一季有所改善。我只是很好奇，從歷史上看，當您的客戶和合作夥伴看到或增加資金或對其資產負債表感覺更好時，到試驗開始時，您什麼時候開始看到這些訂單之間有多長時間的滯後？是1季嗎？是2個季度嗎？請幫助我們思考那裡的延遲。

It's a very tough question to answer with any level of specificity. But I would say that -- and again, this is market segment that would be coming through distribution. So I would say that it's probably 2 to 3 quarters. I think that's when we see it really start to flow through. And that's consistent with what our largest distributor is telling us with respect to a stronger second half of the year versus first half of the year.

這是一個很難以任何具體程度來回答的問題。但我想說的是——再說一遍，這是一個透過分銷來實現的細分市場。所以我想說可能是 2 到 3 個季度。我認為那是我們看到它真正開始流動的時候。這與我們最大的經銷商告訴我們的下半年與上半年相比更強勁的情況是一致的。

Got it. And then regarding the 2 new approvals here in the first quarter, customers getting those therapies approved, how should we be thinking about the ramp from those products? I know at least 1 of the 2 has been pretty guarded on how they're talking about it. But do you -- how do you plan for that ramp? Is it something that you're -- you have a little bit better visibility. And therefore, as you look out, whether it's later this year or next year, you start to anticipate that? Or how should we, as analysts be thinking about that ramp?

知道了。然後，關於第一季的 2 個新批准，客戶獲得了這些療法的批准，我們應該如何考慮這些產品的成長？我知道這兩個人中至少有一個人對他們談論這件事的方式非常謹慎。但是你 - 你如何計劃那個坡道？你有更好的能見度嗎？因此，當你觀察時，無論是今年晚些時候還是明年，你開始預期這一點？或者，作為分析師，我們應該如何考慮這種成長？

Yes. I mean, by definition, the ramp is built into not only our actual results, right, but what we are saying about what the future looks like. So the one you're speaking of specifically, we talked about that one last quarter, and they definitely ramped up purchases at the end of '23 in anticipation of what I believe they need to be their approval coming down the pipe. And the visibility that we have is a rolling 4-quarter forecast nonbinding, and that gives us a sense of how they think they're going to do. And so I can say with that particular customer, as I did last quarter, that the forecast is better than it was for '23. So that suggests that kind of uptake or adoption of their therapy. That's the best visibility we have.

是的。我的意思是，根據定義，斜坡不僅取決於我們的實際結果，對吧，還取決於我們對未來的看法。所以你具體提到的那個，我們在上個季度討論過，他們肯定在 23 年底增加了採購，我相信他們需要得到他們的批准。我們所掌握的可見性是滾動的 4 季度預測，不具約束力，這讓我們了解他們認為自己將如何做。所以我可以對那個特定的客戶說，正如我上個季度所做的那樣，預測比 23 年的更好。所以這表明他們的療法得到了這種接受或採用。這是我們擁有的最好的能見度。

Thomas, Lake Street Capital.

托馬斯，湖街資本。

Hey, guys, appreciate you taking the questions. Rod, I think on the last call, you mentioned that SciSafe facilities were running about 70%, 80% capacity, something like that. How do you guys think about not just when to pull the trigger on the next facility, but what that trigger would be?

嘿，夥計們，感謝您提出問題。Rod，我想在上次通話中，您提到 SciSafe 設施的運作能力約為 70%、80%，類似的情況。你們如何思考何時觸發下一個設施，以及觸發條件是什麼？

Yes, it's a good question. So I think that with respect to the Boston facility, it's really a consolidation and increasing our capacity there by basically putting a mezzanine level into that building and not quite doubling capacity there, but certainly having a strong impact. The other is reviewing the New Jersey sites that we have, 4 of them, which really do need to be consolidated into one larger facility. And I think we're in the process of working through what that could look like, I'm just going to pick some numbers, but let's say that currently, we're utilizing 80,000 square feet. We would be looking to perhaps lease one building that would have 100,000 or 120,000 square feet available. So therefore, thereby taking up the existing capacity that we have, but allowing us to have a good 40% or 50% more available.

是的，這是一個好問題。因此，我認為，就波士頓工廠而言，這實際上是一次整合，並通過基本上在該建築中放置一個夾層來增加我們的產能，而不是使那裡的產能翻倍，但肯定會產生巨大的影響。另一個是審查我們在新澤西州擁有的 4 個工廠，這些工廠確實需要合併為一個更大的工廠。我認為我們正在研究可能的情況，我只是要選擇一些數字，但假設目前我們正在利用 80,000 平方英尺。我們可能會考慮租賃一棟可用面積為 100,000 或 120,000 平方英尺的建築。因此，從而佔用了我們現有的容量，但讓我們有 40% 或 50% 的可用容量。

Got it. And I apologize if I missed this, but -- and I know TharSTAR a very small product, but it has a disproportionate drag on the growth rate in your BioStorage services unit or revenue line, sorry. Any thoughts on what to do with that to maybe make it less of a drag?

知道了。如果我錯過了這一點，我深表歉意，但是 - 我知道 TharSTAR 是一個非常小的產品，但它對您的 BioStorage 服務部門或收入線的增長率產生了不成比例的拖累，抱歉。有什麼想法可以解決這個問題，以減少拖累嗎？

Well, I think the drag ultimately comes from the fact that there are 2 varieties of that product. One is for vials and one is for cryo bags. In October of last year, we made a decision to stop shipping the bag version of the device based on some quality issues that we had that we're working through. We didn't want to dig the hole deeper. We believe it has to do with the shipping of the units and the inability of the unit to handle that transportation cycle. Nevertheless, I think longer term, what we're exploring is the idea that technology would be unique to both the CellSeal Vials that we have and also the new soon-to-be-introduced LVC cassette that is an extension of the CellSeal product line and have it be dedicated to find those. So it becomes more of a razor-razorblade model as opposed to a stand-alone device that will saw any cryo bag, which presents its own difficulties and challenges from a technology standpoint.

嗯，我認為拖累最終來自於該產品有 2 個品種。一種用於小瓶，一種用於冷凍袋。去年 10 月，基於我們正在解決的一些品質問題，我們決定停止運送該設備的袋裝版本。我們不想把坑挖得更深。我們認為這與設備的運輸以及設備無法處理該運輸週期有關。儘管如此，我認為從長遠來看，我們正在探索的想法是，我們擁有的 CellSeal 小瓶以及即將推出的新 LVC 盒（CellSeal 產品線的延伸）都將採用獨特的技術並讓它專門去尋找那些。因此，它更像是一個剃刀模型，而不是一個可以看到任何冷凍袋的獨立設備，從技術角度來看，這提出了自己的困難和挑戰。

Great. Appreciate you taking the questions. Thank you.

偉大的。感謝您提出問題。謝謝。

(Operator Instructions)

（操作員說明）

At this time, there appears to be no further questions. I'd like to turn the call back over to Rod for closing remarks.

此時，似乎沒有其他問題了。我想將電話轉回給羅德做結束語。

Thank you, Ross. I'd like to close by saying that with the divestiture of Sterling and the growing strength of the fundamentals underlying the CGT industry, BioLife is in an excellent position to deliver strong financial results this year and into the future. We plan on leveraging our market-leading position in biopreservation to drive the adoption of the other high-margin recurring revenue cell processing tools and services in our portfolio and expect those to provide an increasing amount of revenue and profitability in the future.

謝謝你，羅斯。最後我想說，隨著 Sterling 的剝離以及 CGT 行業基本面的不斷增強，BioLife 處於有利地位，能夠在今年和未來實現強勁的財務業績。我們計劃利用我們在生物保存領域的市場領先地位，推動我們產品組合中其他高利潤經常性收入細胞處理工具和服務的採用，並期望這些工具和服務在未來提供越來越多的收入和盈利能力。

Thank you for your time today, and we look forward to updating you on future calls and meeting with some of you at the upcoming investor conferences we'll be participating in during the coming months. Thank you.

感謝您今天抽出寶貴的時間，我們期待在未來的電話會議上向您通報最新情況，並在未來幾個月我們將參加的投資者會議上與你們中的一些人會面。謝謝。

This concludes today's conference call. Thank you for attending.

今天的電話會議到此結束。感謝您的出席。