Inotiv Inc (NOTV) 2024 Q4 法說會逐字稿

Good day, everyone, and welcome to today's Inotiv fiscal 2024 fourth quarter financial results. (Operator Instructions) Today's conference is being recorded. I will be standing by if you need any assistance. It is now my pleasure to turn the conference over to Steven Halper.

大家好，歡迎閱讀今天的 Inotiv 2024 財年第四季財務業績。（操作員指示）今天的會議正在錄音。如果您需要任何幫助，我將隨時待命。現在我很高興將會議交給史蒂文·哈爾珀。

Thank you, Marjorie, and good afternoon, everyone. Thank you for joining today's quarterly call with Inotiv's management team. Before we begin, I'd like to remind everyone that some of the statements that management will make on this call are considered forward-looking statements, including statements about the company's future operating and financial results and plans.

謝謝你，馬喬裡，大家午安。感謝您參加今天與 Inotiv 管理團隊舉行的季度電話會議。在開始之前，我想提醒大家，管理層在本次電話會議上發表的一些聲明被視為前瞻性聲明，包括有關公司未來營運和財務業績及計劃的聲明。

Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected. Any such statements represent management's expectations as of today's date.

此類陳述存在風險與不確定性，可能導致實際績效或成就與預期有重大差異。任何此類聲明均代表管理層截至今日的預期。

You should not place undue reliance on these forward-looking statements, and the company does not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to the company's SEC filings for further guidance on this matter.

您不應過度依賴這些前瞻性陳述，且本公司不承擔任何更新或修改前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。請參閱該公司向 SEC 提交的文件，以了解有關此事的進一步指導。

Management will also discuss certain non-GAAP financial measures in an effort to provide additional information for investors. Definition of these non-GAAP measures and reconciliations to the most comparable GAAP measures are included in the company's earnings release, which has been posted to the Investors section of the company's website, www.inotiv.com, and is also available in the Form 8-K filed with the Securities and Exchange Commission. If you haven't obtained a copy of today's press release yet, you could do so by going to the Investors section of Inotiv's website.

管理階層也將討論某些非公認會計準則財務指標，以便為投資者提供更多資訊。這些非 GAAP 衡量標準的定義以及與最具可比性 GAAP 衡量標準的調整包含在公司的收益發布中，該發布已發佈到公司網站 www.inotiv.com 的投資者部分，也可以在表格 8 中找到-K 向美國證券交易委員會提交。如果您尚未獲得今天新聞稿的副本，您可以訪問 Inotiv 網站的投資者部分。

Joining us from the company this afternoon are Bob Leasure, President and Chief Executive Officer; and Beth Taylor, Chief Financial Officer. John Sagartz, Chief Strategy Officer, will join us for the question-and-answer portion of the call. Bob will begin with some opening remarks, after which Beth will present a summary of the company's financial results for our fiscal fourth quarter and full year ended September 30, 2024, and then we'll open the call for your questions. It is now my pleasure to turn the call over to Bob Leasure, CEO. Bob, please go ahead.

今天下午，公司總裁兼執行長 Bob Leasure 也加入了我們的行列。和財務長貝絲·泰勒。首席策略長約翰·薩加茨 (John Sagartz) 將參加我們電話會議的問答部分。Bob 將首先發表一些開場白，隨後 Beth 將介紹公司截至 2024 年 9 月 30 日的第四財季和全年的財務業績摘要，然後我們將開始電話會議回答您的問題。現在我很高興將電話轉給執行長 Bob Leasure。鮑勃，請繼續。

Thank you, Steve, and good afternoon to everyone joining our call today. Fourth quarter was, again, productive for Inotiv. We accomplished many of our goals during the quarter and believe we are in good position going into 2025.

謝謝史蒂夫，今天參加我們電話會議的每個人都下午好。第四季對 Inotiv 來說再次是富有成效的。我們在本季度實現了許多目標，並相信我們在進入 2025 年時處於有利位置。

As you are aware, during 2024, we experienced volatility within our earnings and cash flow. Volatility was mainly related to challenges in our NHP business within the RMS business model, but we also saw continued conservative spending within the biotech industry.

如您所知，2024 年我們的收益和現金流經歷了波動。波動主要與 RMS 業務模式中 NHP 業務的挑戰有關，但我們也看到生技產業的支出持續保守。

The initiatives we put in place over the last year were designed to reduce risk and address volatility, improve the customer experience, and draw new customers to the business, all while enhancing our cash flow model in calendar 2025. I'd like to spend a few minutes on our fourth quarter '24 results and fiscal '24 highlights.

我們去年採取的措施旨在降低風險、解決波動性、改善客戶體驗並吸引新客戶參與業務，同時在 2025 年增強我們的現金流量模型。我想花幾分鐘時間介紹我們的 24 年第四季業績和 24 年財務亮點。

For the fiscal 2024 fourth quarter, total revenue was $130.4 million compared to $105.8 million in the third quarter of 2024, representing a 23% increase in quarter-over-quarter revenue, though it was down 7.3% compared to the fourth quarter in fiscal 2023.

2024 財年第四季的總營收為 1.304 億美元，而 2024 年第三季為 1.058 億美元，季增 23%，儘管與 2023 財年第四季相比下降了 7.3% 。

During the fourth quarter of 2024, in the RMS business, we continued to make progress improving our North American transportation and distribution systems. We also completed the RMS site consolidation and facility improvements we announced almost two years ago as we completed the closure of our Blackthorn facility in the UK and the planned investments in our UK Hillcrest facility.

2024 年第四季度，在 RMS 業務中，我們持續在改善北美運輸和配送系統方面取得進展。我們還完成了大約兩年前宣布的 RMS 站點整合和設施改進，當時我們完成了英國 Blackthorn 設施的關閉以及英國 Hillcrest 設施的計劃投資。

We saw a significant increase in NHPs sold in Q4 compared to Q3, as we more than doubled the number sold in Q3. During Q4, we sold much of our higher cost NHP inventory, which impacted margins in the quarter and will continue to impact margins in Q1 of fiscal 2025. We also already have strong commitments for purchases from both existing and new customers for calendar 2025.

與第三季相比，第四季銷售的 NHP 顯著增加，第三季銷售數量增加了一倍以上。在第四季度，我們出售了大部分成本較高的 NHP 庫存，這影響了本季的利潤率，並將繼續影響 2025 財年第一季的利潤率。我們也對 2025 年現有客戶和新客戶做出了堅定的採購承諾。

Within the RMS business, we also saw strong performances in the NHP colony management services, the diet, bedding, and enrichment business line, as well as our European and UK RMS business lines. DSA revenue and operating income decreased in Q4 2024 as compared to Q4 2023 due to safety assessment study mix and lower discovery service revenue.

在 RMS 業務中，我們也看到 NHP 蜂群管理服務、飲食、寢具和濃縮業務線以及歐洲和英國 RMS 業務線的強勁表現。與 2023 年第四季相比，由於安全評估研究組合和發現服務收入下降，DSA 2024 年第四季的收入和營業收入有所下降。

However, DSA revenue and operating income were relatively consistent in Q4 2024 compared to Q3 2024. From Q3 2024 to Q4 2024, we saw a continued trend of strong revenue for new services at our Rockville facility and a decrease in revenue related to discovery services.

然而，與 2024 年第三季相比，2024 年第四季的 DSA 收入和營業收入相對穩定。從 2024 年第三季到 2024 年第四季度，我們看到羅克維爾工廠的新服務收入持續強勁，而與發現服務相關的收入則下降。

On the operational side, we continued to drive efficiency, which allowed us to further reduce our general and administrative expenses on a year-over-year basis. While we made some incremental improvements to the balance sheet this quarter, we continue to evaluate opportunities to improve our balance sheet further and enhance our liquidity. In Q4, we still saw some of the same trends experienced in previous quarters, which we monitor closely and continue to navigate through.

在營運方面，我們繼續提高效率，這使我們能夠比去年同期進一步減少一般和管理費用。雖然我們本季對資產負債表進行了一些漸進式改進，但我們仍在繼續評估進一步改善資產負債表和增強流動性的機會。在第四季度，我們仍然看到了前幾季度經歷的一些相同趨勢，我們密切關注並繼續應對這些趨勢。

These include overall general business conditions in the biotech industry impacted and created price pressures in our business. Although biotech funding in the market increased in the first nine months of calendar 2024, we believe that the reduced biotech funding in the market during 2022 and 2023 and the increased cost of capital has continued to influence our clients' spending patterns for early-stage research and development.

其中包括生物技術行業的整體一般業務狀況影響並給我們的業務帶來了價格壓力。儘管市場上的生物技術資金在 2024 年前 9 個月有所增加，但我們認為 2022 年和 2023 年市場上生物技術資金的減少以及資本成本的增加將繼續影響我們客戶的早期研究支出模式和發展。

Now let me provide some comments on what we are seeing in the market today and some forward-looking thoughts on our different business segments. We expect biopharma companies in the short term to continue to take a restrained, conservative approach to the preclinical pipeline products in order to prioritize the use of capital to their most important projects.

現在讓我對我們今天的市場狀況發表一些評論，並對我們不同的業務領域提出一些前瞻性的想法。我們預計生物製藥公司短期內將繼續對臨床前管道產品採取克制、保守的態度，以便優先將資金用於最重要的項目。

We will continue to capitalize on our innovation and scientific expertise to assist our clients in the improvement of speed of product development and achieve the appropriate economic returns. We are emphasizing our efforts on growing our existing customer base through cross-selling our broad portfolio of products and services and attracting new customers to gain market share. We believe the additional investments we've made in our sales team in 2024 will continue to benefit us in fiscal 2025.

我們將繼續利用我們的創新和科學專業知識，協助客戶提高產品開發速度並獲得適當的財務回報。我們強調透過交叉銷售我們廣泛的產品和服務組合來擴大現有客戶群，並吸引新客戶以獲得市場份額。我們相信，2024 年我們對銷售團隊的額外投資將在 2025 財年繼續讓我們受益。

For the 12 months ended September 30, 2024, net new orders for DSA were ahead of the prior year's pace by approximately 5%. We are pleased we've been able to accomplish this in spite of industry price pressure that we've seen in fiscal 2024 and an approximate 11% decline in revenue and 23% decline in orders in the Discovery business.

截至 2024 年 9 月 30 日的 12 個月，DSA 的淨新訂單比上年同期成長約 5%。我們很高興我們能夠實現這一目標，儘管我們在 2024 財年看到了行業價格壓力，並且發現業務的收入下降了約 11%，訂單下降了 23%。

In the RMS segment, we are optimistic that we will see reduced volatility in 2025. We have added new customers. And based on our presales of NHPs and demand for colony management services, we are cautiously optimistic about increased NHP-related revenue in calendar '25.

在 RMS 領域，我們樂觀地認為 2025 年波動性將會減少。我們增加了新客戶。根據我們對 NHP 的預售和對蜂群管理服務的需求，我們對 25 年 NHP 相關收入的增加持謹慎樂觀態度。

We have expanded our NHP supply base and continue to work with our existing and newly-qualified NHP suppliers in multiple countries. Critically, we continue to audit them for animal welfare, health standards, and compliance-related matters, and will not source from suppliers who do not or cannot meet those standards.

我們擴大了 NHP 供應基地，並繼續與多個國家現有的和新獲得資格的 NHP 供應商合作。至關重要的是，我們將繼續對他們的動物福利、健康標準和合規相關事項進行審核，並且不會向不符合或無法達到這些標準的供應商購買。

In the RMS non-HP business in 2025, we will initiate the next phase of our site optimization program to further improve and consolidate facilities in the US. This next phase is another important program, which is projected to eliminate another $4 million to $5 million in operating expenses and further improve our RMS margins when completed. Most of these financial improvements are not expected to be seen until fiscal 2026.

在 2025 年的 RMS 非惠普業務中，我們將啟動下一階段的站點優化計劃，以進一步改善和整合美國的設施。下一階段是另一個重要計劃，預計完成後將消除另外 400 萬至 500 萬美元的營運費用，並進一步提高我們的 RMS 利潤率。其中大部分財務改善預計要到 2026 財年才能實現。

We also believe we can achieve another [$500,000 to $1 million] in cost reductions from our continued integration of our North America transportation and distribution system. We're confident going into 2025, but recognize there are geopolitical, market conditions, risks, and uncertainties. In 2023 and '24, we incurred several challenges, as did some of our customers and others in our industry.

我們也相信，透過持續整合北美運輸和配送系統，我們可以進一步降低成本 [50 萬至 100 萬美元]。我們對進入 2025 年充滿信心，但也認識到存在地緣政治、市場狀況、風險和不確定性。在 2023 年和 24 年，我們遇到了一些挑戰，我們的一些客戶和我們行業的其他人也是如此。

As a company, I'm proud of our people, our leadership, Board, suppliers, customers, and lenders who work together to address these challenges, creating a stronger foundation for our business going into 2025. As we overcome the challenges we've faced over the past two years, we believe our business is well-positioned for the future.

作為一家公司，我為我們的員工、領導階層、董事會、供應商、客戶和貸款人感到自豪，他們共同努力應對這些挑戰，為我們進入 2025 年的業務奠定更堅實的基礎。當我們克服過去兩年所面臨的挑戰時，我們相信我們的業務已為未來做好了準備。

We have continued to integrate our acquisitions to optimize our facilities, as we have also implemented several initiatives to mitigate these risks and related challenges. We have lowered our cost, improved our service and responsiveness to our customers. Inotiv is well-positioned as a midsized, full-service CRO and provider of research models, diet, bedding, and enrichment products and services.

我們持續整合收購來優化我們的設施，同時我們也實施了多項措施來減輕這些風險和相關挑戰。我們降低了成本，改善了服務和對客戶的回應能力。Inotiv 是一家中型全方位服務 CRO 和研究模式、飲食、床上用品以及豐富產品和服務的提供者。

We remain committed to building a business that will create value for our customers, employees, and our shareholders, and look forward to 2025. With that, I'll turn the call over to Beth, who will provide a more detailed synopsis of Inotiv's results for the quarter and full year.

我們仍然致力於打造一家能夠為客戶、員工和股東創造價值的企業，並展望 2025 年。接下來，我會將電話轉給 Beth，她將提供 Inotiv 本季和全年業績的更詳細概要。

Thank you, Bob, and good afternoon, everyone. For the fiscal 2024 fourth quarter, total revenue was $130.4 million, compared to $105.8 million in our third quarter 2024, and $140.7 million during the fiscal 2023 fourth quarter. Compared to Q3 of 2024, we saw our RMS revenue increase $24.2 million, or 39.3%, and our DSA revenue increased $0.4 million, or 0.9%.

謝謝鮑勃，大家下午好。2024 財年第四季的總營收為 1.304 億美元，而 2024 年第三季的總營收為 1.058 億美元，2023 財年第四季的總營收為 1.407 億美元。與 2024 年第三季相比，我們的 RMS 收入增加了 2,420 萬美元，即 39.3%，DSA 收入增加了 40 萬美元，即 0.9%。

Compared to Q4 of 2023, we saw a decrease in total revenue of 7.3%, primarily due to an 11.2% decrease in DSA revenue and a 5.2% decrease in RMS revenue. We actually saw a 177.9% increase in the number of NHPs sold in Q4 2024 compared to Q3 2024, and a 48.9% increase in the number of NHPs sold versus Q4 of 2023.

與 2023 年第四季相比，總收入下降了 7.3%，主要是由於 DSA 收入下降 11.2%，RMS 收入下降 5.2%。實際上，與 2024 年第三季相比，2024 年第四季銷售的 NHP 數量增加了 177.9%，與 2023 年第四季相比，銷售的 NHP 數量增加了 48.9%。

The NHP average selling price in Q4 2024 was 7.7% higher compared to Q3 of 2024, and the NHP average selling price in the current quarter compared to the prior year period was down approximately 33.4%. 2023 RMS revenue also included revenue of $1.7 million from our Israeli operation, which was sold in August of 2023.

2024 年第四季 NHP 平均售價較 2024 年第三季上漲 7.7%，本季 NHP 平均售價較去年同期下降約 33.4%。2023 年 RMS 收入還包括我們於 2023 年 8 月出售的以色列業務的 170 萬美元收入。

For the 12 months ended September 30, 2024, consolidated revenue was $490.7 million, down 14.3%, compared to $572.4 million for fiscal 2023, mainly due to the decrease in NHPs sold in Q2 and Q3 of fiscal 2024, as well as a decrease in NHP pricing in the sale of the Israeli businesses in August of 2023. DSA revenue in the 2024 fourth quarter was $44.6 million, compared to $44.2 million in Q3 of 2024 and $50.2 million in Q4 of 2023.

截至 2024 年 9 月 30 日的 12 個月，合併收入為 4.907 億美元，較 2023 財年的 5.724 億美元下降 14.3%，主要是由於 2024 財年第二季和第三季銷售的 NHP 減少，以及NHP 對2023 年8 月出售以色列業務的定價。2024 年第四季的 DSA 營收為 4,460 萬美元，而 2024 年第三季為 4,420 萬美元，2023 年第四季為 5,020 萬美元。

The decrease in the DSA revenue from prior year period was primarily driven by a decrease in general toxicology services due to a change in study mix and a decrease in Discovery Services revenue as a result of lower overall biotech activity in the market.

DSA 收入較上年同期減少的主要原因是研究組合變化導致一般毒理學服務減少，以及市場整體生物技術活動減少導致發現服務收入減少。

These impacts were partially offset by growth in the newer service lines at our Rockville, Maryland facility. DSA revenue for the 12 months ended September 30, 2024, was $180.1 million, 2.7% lower compared to prior year revenue of $185.1 million.

這些影響被我們馬裡蘭州羅克維爾工廠新服務線的成長所部分抵消。截至 2024 年 9 月 30 日的 12 個月，DSA 收入為 1.801 億美元，比上年收入 1.851 億美元下降 2.7%。

The decrease in DSA revenue was primarily driven by a $5 million decrease in Discovery Services revenue as a result of the decline in overall biotech activity in the market. Overall, net new DSA orders this quarter were $33.7 million versus $32 million in the same quarter last year. For fiscal year ended September 30, 2024, we booked net new orders of $173 million versus $165.2 million for the 12 months ended September 30, 2023.

DSA 收入下降的主要原因是由於市場整體生物技術活動下降，發現服務收入減少了 500 萬美元。總體而言，本季 DSA 淨新訂單為 3,370 萬美元，去年同期為 3,200 萬美元。截至 2024 年 9 月 30 日的財年，我們的淨新訂單為 1.73 億美元，而截至 2023 年 9 月 30 日的 12 個月為 1.652 億美元。

The conversion rate in the 2024 fourth quarter was 33%, slightly down from 34% in the prior year period. The DSA cancellations and negative change orders in the 2024 fourth quarter were approximately 32% lower compared to the prior year period, and in fiscal 2024 were approximately 16% less than in fiscal 2023.

2024 年第四季的轉換率為 33%，略低於去年同期的 34%。2024 年第四季的 DSA 取消和負面變更訂單比去年同期減少了約 32%，2024 財年比 2023 財年減少了約 16%。

RMS revenue for the fiscal fourth quarter increased $24.2 million, or 39.3%, compared to Q3 2024, and declined by 5.2% to $85.8 million compared to $90.5 million in the same fourth quarter of 2023. The decrease in the fourth quarter of 2024 compared to the same quarter in 2023 was due to lower NHP-related product and service revenue, mainly as a result of pricing.

與 2024 年第三季相比，第四季 RMS 營收增加了 2,420 萬美元，即 39.3%，與 2023 年第四季的 9,050 萬美元相比，下降了 5.2%，至 8,580 萬美元。與 2023 年同季相比，2024 年第四季的下降是由於 NHP 相關產品和服務收入下降，主要是定價造成的。

Additionally, in Q4 of fiscal 2024, there was a decrease in RMS revenue as a result of the sale of our Israeli businesses in Q4 fiscal 2023, with the remaining decrease primarily due to a decline in small animal model sales.

此外，在 2024 財年第四季度，由於 2023 財年第四季度出售我們的以色列業務，RMS 收入有所下降，其餘下降主要是由於小動物模型銷售下降。

For the 12 months ended September 30, 2024, RMS revenue was down 19.8% to $310.6 million compared to $387.3 million in fiscal 2023. The decrease was primarily due to the negative impact of lower volumes and lower pricing of NHP sales of $60.4 million and lower revenue as a result of the sale of our Israeli business in fiscal 2023 of $10.6 million.

截至 2024 年 9 月 30 日的 12 個月，RMS 營收下降 19.8% 至 3.106 億美元，而 2023 財年為 3.873 億美元。這一下降主要是由於 NHP 銷量下降和定價下降（6040 萬美元）以及我們在 2023 財年出售以色列業務 1060 萬美元導致收入下降的負面影響。

The remaining decrease in RMS revenue was due primarily to decreases in small animal sales and RMS services in the US due to lower demand, partially offset by an increase in diet, bedding, and enrichment product sales and an increase in small animal sales and services outside the US. Regarding NHP pricing, we indicated on our past conference calls that NHP prices were coming down from the highs we saw in Q4 of fiscal 2023 and the first two quarters in fiscal 2024.

RMS 收入的剩餘下降主要是由於需求下降導緻美國小動物銷售和 RMS 服務的減少，但部分被飲食、床上用品和豐富產品銷售的增加以及國外小動物銷售和服務的增加所抵消。關於 NHP 定價，我們在過去的電話會議上表示，NHP 價格正從 2023 財年第四季和 2024 財年前兩個季度的高點回落。

As noted above, the average sales price of NHPs did increase slightly in Q4 of 2024 compared to Q3 2024. As we sold higher-cost NHPs that were purchased in late calendar 2023 and early calendar 2024, we saw lower margins in fiscal year 2024. Now that we have worked through much of our higher-cost NHP inventory, we believe our RMS margins in calendar 2025 should begin to improve.

如上所述，與 2024 年第三季相比，2024 年第四季 NHP 的平均銷售價格確實略有上漲。由於我們出售了在 2023 年底和 2024 年年初購買的成本較高的 NHP，因此我們在 2024 財年的利潤率較低。現在我們已經處理掉了大部分成本較高的 NHP 庫存，我們相信 2025 年我們的 RMS 利潤率應該會開始改善。

Overall, operating loss for the fourth quarter of fiscal 2024 was $13.2 million and improved from operating loss in Q3 fiscal year 2024 of $20.8 million. The operating loss in the fourth quarter of 2024 compared to operating income of $2.5 million from last year's fourth quarter was primarily due to lower NHP margins on increased costs and reduced revenue and lower DSA margins on reduced revenue.

整體而言，2024 財年第四季的營運虧損為 1,320 萬美元，較 2024 年第三季的營運虧損 2,080 萬美元有所改善。與去年第四季的營業收入 250 萬美元相比，2024 年第四季的營業虧損主要是由於成本增加和收入減少導致 NHP 利潤率下降，以及收入減少導致 DSA 利潤率下降。

These items were partially offset by decreases from the impact of the sale of our Israeli businesses, decreases in restructuring costs, transportation costs, and costs related to sites closed in connection with our site optimization plan.

這些項目被我們以色列業務出售影響的減少、重組成本、運輸成本以及因我們的網站優化計劃而關閉的網站相關成本的減少所部分抵消。

Operating income for our DSA segment in the fourth quarter was $1.9 million, or 1.5% of total revenue, compared to $6.8 million, or 4.8% of total revenue, in last year's fourth quarter. Operating income for our RMS segment in the fourth quarter was $1 million, or 0.8% of total revenue, compared to $11.8 million, or 8.4% of total revenue, in last year's fourth quarter.

第四季 DSA 部門的營業收入為 190 萬美元，佔總收入的 1.5%，而去年第四季為 680 萬美元，佔總收入的 4.8%。第四季 RMS 部門的營業收入為 100 萬美元，佔總營收的 0.8%，而去年第四季為 1,180 萬美元，佔總營收的 8.4%。

Consolidated net loss attributable to common shareholders in the fourth quarter of fiscal 2024 totaled $18.9 million, or a $0.73 loss per diluted share. This compared to consolidated net loss attributable to common shareholders of $9.7 million, or $0.38 of loss per diluted share in the fourth quarter of fiscal 2023.

2024 財年第四季歸屬於普通股股東的合併淨虧損總計 1,890 萬美元，即稀釋後每股虧損 0.73 美元。相較之下，2023 財年第四季歸屬於普通股股東的合併淨虧損為 970 萬美元，即攤薄後每股虧損 0.38 美元。

For the fourth quarter, adjusted EBITDA was $5.4 million, or 4.1% of total revenue, compared to $23.7 million, or 16.8% of total revenue for last fiscal year's fourth quarter. For the 12 months ended September 30, 2024, adjusted EBITDA was $18.2 million, or 3.7% of total revenue, compared to fiscal 2023 adjusted EBITDA of $65.8 million, or 11.5% of total revenue.

第四季調整後 EBITDA 為 540 萬美元，佔總營收的 4.1%，而上一財年第四季的調整後 EBITDA 為 2,370 萬美元，佔總營收的 16.8%。截至 2024 年 9 月 30 日的 12 個月，調整後的 EBITDA 為 1,820 萬美元，佔總營收的 3.7%，而 2023 財年調整後的 EBITDA 為 6,580 萬美元，佔總營收的 11.5%。

Consolidated net loss attributable to common shareholders for the 12 months ended September 30, 2024, totaled $108.4 million, or a $4.19 loss per diluted share. This compared to consolidated net loss attributable to common shareholders of $105.1 million, or $4.10 loss per diluted share for fiscal 2023. Non-GAAP operating income for our DSA segment for the fourth quarter was $7.4 million, or 5.6% of total revenue, compared to $12.6 million, or 9% of total revenue, in last fiscal year's fourth quarter.

截至 2024 年 9 月 30 日的 12 個月，歸屬於普通股股東的合併淨虧損總計 1.084 億美元，即每股攤薄虧損 4.19 美元。相較之下，2023 財年歸屬於普通股股東的合併淨虧損為 1.051 億美元，即稀釋後每股虧損 4.10 美元。第四季 DSA 部門的非 GAAP 營業收入為 740 萬美元，佔總收入的 5.6%，而上一財年第四季的非 GAAP 營業收入為 1,260 萬美元，佔總收入的 9%。

Non-GAAP operating income for our DSA segment for fiscal 2024 was $30.3 million, or 6.2% of total revenue, compared to $38.6 million, or 6.7% of total revenue, in fiscal 2023. As our new DSA services come fully online, and we begin to fill newly-added capacity, we believe we will see margin improvement through operating leverage.

2024 財年 DSA 部門的非 GAAP 營業收入為 3,030 萬美元，佔總收入的 6.2%，而 2023 財年為 3,860 萬美元，佔總收入的 6.7%。隨著我們新的 DSA 服務全面上線，並且我們開始填補新增產能，我們相信我們將透過營運槓桿看到利潤率的提高。

The book-to-bill for DSA in the fourth quarter of fiscal 2024 was 0.78 times to 1. Our full year fiscal 2024 book-to-bill was 0.99 times to 1. DSA backlog was $129.9 million at September 30, 2024, compared to $132.1 million at September 30, 2023.

2024 財年第四季 DSA 的訂單出貨比為 0.78 比 1。我們 2024 財年全年的訂單出貨比為 0.99 比 1。截至 2024 年 9 月 30 日，DSA 積壓金額為 1.299 億美元，而 2023 年 9 月 30 日為 1.321 億美元。

In our RMS segment, non-GAAP operating income in the fourth quarter of fiscal 2024 was $12.7 million, or 9.7% of total revenue, compared to $24 million, or 17% of total revenue in last year's period. In our RMS segment, non-GAAP operating income for fiscal 2024 was $44.3 million, or 9%, compared to $88.9 million, or 15.5% for fiscal 2023.

在我們的 RMS 部門，2024 財年第四季的非 GAAP 營業收入為 1,270 萬美元，佔總營收的 9.7%，而去年同期為 2,400 萬美元，佔總營收的 17%。在我們的 RMS 部門，2024 財年的非 GAAP 營業收入為 4,430 萬美元，即 9%，而 2023 財年的營業收入為 8,890 萬美元，即 15.5%。

Again, the NHP pricing and margins and the sale of our Israeli businesses in August of 2023, partially offset by favorable cost reductions related to restructuring costs, accounted for most of these changes. Interest expense in Q4 2024 increased to $12.3 million, up from $11.3 million in last year's fiscal fourth quarter due to an increase in interest rates, additional second lien debt, and periodic draws on our revolving credit facility. Our balance sheet as of September 30, 2024, included $21.4 million in cash and cash equivalents as compared to $35.5 million on September 30, 2023.

同樣，NHP 的定價和利潤以及 2023 年 8 月出售我們的以色列業務，部分被重組成本相關的有利成本削減所抵消，是造成這些變化的主要原因。由於利率上升、額外的第二留置權債務以及定期提取循環信貸額度，2024 年第四季的利息支出從去年第四財季的 1,130 萬美元增至 1,230 萬美元。截至 2024 年 9 月 30 日，我們的資產負債表包括 2,140 萬美元的現金和現金等價物，而 2023 年 9 月 30 日為 3,550 萬美元。

Total debt -- net of debt issuance costs as of September 30, 2024, was $393.3 million, compared to $377.7 million at September 30, 2023. This includes $110 million of convertible notes as of September 30, 2024, and our new second lien debt of $17.8 million.

截至 2024 年 9 月 30 日，債務總額（扣除債務發行成本）為 3.933 億美元，而 2023 年 9 月 30 日為 3.777 億美元。這包括截至 2024 年 9 月 30 日的 1.1 億美元可轉換票據，以及我們新的 1,780 萬美元第二留置權債務。

Net cash used in operations for the 12 months ended September 30, 2024, was $6.8 million compared to cash provided by operations of $27.9 million in fiscal 2023. Cash used in operations during fiscal 2024 included $6.5 million paid under the resolution agreement with the DOJ. In October 2024, we entered into a third amendment with the seller of OBRC and extended the note payable to January 27, 2026.

截至 2024 年 9 月 30 日的 12 個月營運中使用的現金淨額為 680 萬美元，而 2023 財年營運提供的現金為 2,790 萬美元。2024 財年營運中使用的現金包括根據與司法部的解決協議支付的 650 萬美元。2024年10月，我們與OBRC的賣方達成第三次修訂，並將應付票據延長至2026年1月27日。

The seventh amendment to our credit agreement entered into on September 13, 2024, established a maximum capital expenditure limit and a minimum adjusted EBITDA test effective September 13, 2024. It waived the previously existing financial covenants from the date of the seventh amendment until June 30, 2025, and established additional new financial covenants for quarters starting June 30, 2025, and thereafter.

我們於 2024 年 9 月 13 日簽訂的信貸協議第七修正案規定了最高資本支出限額和最低調整後 EBITDA 測試，並於 2024 年 9 月 13 日生效。它放棄了從第七修正案之日起至 2025 年 6 月 30 日止之前存在的財務契約，並為 2025 年 6 月 30 日及之後的季度製定了額外的新財務契約。

Capital expenditures in the fourth quarter were $5.3 million, or approximately 4.1% of total revenue. For the 12 months ended September 30, 2024, capital expenditures were $22.3 million, or approximately 4.5% of total revenue as compared to $27.5 million, or 4.8% for the fiscal year 2023.

第四季的資本支出為 530 萬美元，約佔總收入的 4.1%。截至 2024 年 9 月 30 日的 12 個月，資本支出為 2,230 萬美元，約佔總收入的 4.5%，而 2023 財年為 2,750 萬美元，佔總收入的 4.8%。

The capital expenditures reflect investments in facility improvements, finalizing the Hillcrest UK site expansion, enhancements to laboratory technology, improvements for animal welfare, and system enhancements to improve the client experience. In terms of our capital improvements and site optimization plans, I'm pleased to report that we've completed the investments and initiatives started mid-calendar year 2022.

資本支出反映了對設施改進、完成英國 Hillcrest 站點擴建、實驗室技術增強、動物福利改善以及系統增強以改善客戶體驗的投資。就我們的資本改進和網站優化計劃而言，我很高興地報告，我們已經完成了 2022 年中旬開始的投資和舉措。

We expect to spend less than 4% of revenue for CapEx in fiscal 2025. With respect to guidance, as you know, we withdrew our fiscal 2024 financial guidance after we reported fiscal Q2 2024 results. While we feel good about the progress we made in the most recent quarter, we are not providing fiscal 2025 guidance at this juncture.

我們預計 2025 財年的資本支出將佔營收的 4% 以下。關於指導，如您所知，我們在報告 2024 年第二財季業績後撤回了 2024 財年財務指導。雖然我們對最近一個季度的進展感到滿意，但目前我們並未提供 2025 財年指引。

We hope to provide guidance once we have greater clarity on the market and customer demand. Management has developed a comprehensive fiscal 2025 annual operating plan designed to continue to optimize our capital allocation and expense base and improve our operating results as discussed above. The plan forecasts compliance with the updated covenants under our latest amendment to the credit agreement in September 2024. And with that financial overview, we will turn the call over to our operator for questions.

一旦我們更清楚地了解市場和客戶需求，我們希望能夠提供指導。管理層制定了全面的 2025 財年年度營運計劃，旨在繼續優化我們的資本配置和支出基礎，並改善我們的營運業績，如上所述。該計劃預計將遵守我們於 2024 年 9 月對信貸協議進行最新修訂的更新後的契約。有了財務概覽後，我們會將電話轉給我們的接線生詢問問題。

(Operator Instructions) Frank Takkinen, Lake Street Capital Markets.

（操作員指示）Frank Takkinen，湖街資本市場。

Congrats on all the progress. I was hoping to start with one clarifying question around gross margins, really around gross margins in NHPs. Anything you can do to help quantify exactly how much of a headwind it was that quarter? The reason I'm asking is it seems like there was really good sequential improvement in both volume and units. And I think that, that gross margin is just lagging because of some of that higher dollar old inventory.

祝賀所有的進展。我希望先澄清一個有關毛利率的問題，實際上是有關 NHP 毛利率的問題。您可以採取哪些措施來幫助準確量化該季度的逆風有多大？我問的原因是，在數量和單位方面似乎都有很好的連續改進。我認為，毛利率之所以落後，是因為一些舊庫存的美元價值較高。

But anything you can quantify in there to kind of give us a feel for what that gross margin may mature into once we get into a more normalized environment?

但是，你可以量化其中的任何內容，讓我們了解一旦我們進入更正常化的環境，毛利率可能會達到什麼程度？

I don't have a way to do that off the top of my head. Beth, if you have a way that you can articulate those. But I'm guessing we're probably at least half of what we would normally achieve. Beth, can you see that?

我沒有辦法立即做到這一點。貝絲，如果你有辦法能夠清楚表達這些內容的話。但我猜我們可能至少達到了正常水平的一半。貝絲，你看得到嗎？

Yeah. If we look quarter over quarter, this '24 fourth quarter to last year's, we were about half of the margin percentage and dollars.

是的。如果我們逐季比較，今年 24 年第四季與去年相比，我們的利潤率和美元約為一半。

Yeah. And it was important for us to move that out. One, we needed to move the higher-cost inventory. But two, from a space standpoint, we really needed to start bringing in additional lower cost inventory, and we really needed to move that to make room as our bottleneck is how much boarding capacity we have. So it was important that we could move that out. The market was there, demand was there, so we were able to move those out.

是的。對我們來說，將其移出很重要。第一，我們需要轉移成本較高的庫存。但第二，從空間的角度來看，我們確實需要開始引入額外的低成本庫存，而且我們確實需要移動它以騰出空間，因為我們的瓶頸是我們有多少登機能力。因此，我們可以將其移出，這一點很重要。市場在那裡，需求在那裡，所以我們能夠把它們搬出去。

And that was going to be my second half. It feels like we're seeing that really stabilize. What can you say about 2025? Can you maybe speak to just how much of the business is now contracted, any inventory commentary from your customers, just any other commentary around that to give us a feel for NHPs next year?

那將是我的下半場。感覺我們看到了真正的穩定。對於2025年你有什麼想說的？您能否談談現在有多少業務已簽訂合同，您的客戶對庫存的評論，以及與之相關的任何其他評論，讓我們對明年的 NHP 有所了解？

Well, yeah, the NHP business, one, we have definitely presold more going into '25 than we did going into '24, and that includes multiple new customers. In addition, what we've really done a pretty good job with over the last couple of years is growing our colony management services, and it's mainly boarding and services related around that. It's been growing 20%, 25% a year, which is very good reoccurring revenue for us. So we've been expanding those boarding capabilities and services. So we expect that will continue to grow next year.

嗯，是的，NHP 業務，一，我們進入 25 年的預售量肯定比進入 24 年的還要多，其中包括多個新客戶。此外，過去幾年我們真正做得很好的是發展我們的殖民地管理服務，主要是與此相關的寄宿和服務。它每年成長 20%、25%，這對我們來說是非常好的經常性收入。因此，我們一直在擴展這些登機功能和服務。因此，我們預計明年這一數字將持續成長。

So I think for us, it's important that we see that a more consistent, reoccurring sales base as we have -- really we had 2 weak quarters. It was our fiscal Q2 and Q3 of last year that somewhat caught us by surprise and had lower demand. And we're working with our customers this year to make sure that, that does not happen. And I think we're doing a better job of communicating with them. So I think we'll see a much more consistent demand cycle.

因此，我認為對我們來說，重要的是我們要看到一個更一致、重複的銷售基礎，因為我們確實經歷了兩個疲軟的季度。去年第二財季和第三財季的情況讓我們有些意外，需求較低。今年我們正在與客戶合作，以確保這種情況不會發生。我認為我們在與他們的溝通方面做得更好。所以我認為我們將看到一個更一致的需求週期。

And I think what we sold last quarter should be more of a reoccurring quarter going forward. I think we will still have some depressed margins in our fiscal Q1, the quarter we're in today. But after that, I think we'll be a much more normalized base, much like we probably saw in '22 and early '23.

我認為我們上個季度銷售的產品應該更多是未來一個季度的重複銷售。我認為，在我們今天所處的第一財季，我們的利潤率仍將受到一些抑制。但在那之後，我認為我們將成為一個更標準化的基地，就像我們在 22 年和 23 年初可能看到的那樣。

And then, maybe just for my last one, a bigger picture question. I know in the past, you've talked to adjusted EBITDA margins maturing over a longer period of time into the 18% to 22% range. In light of all the site optimizations you've done, the contracted NHP business, do you feel that, that 18% to 22% target is still a reasonable, call it, midterm target over time for the business to mature into?

然後，也許只是我的最後一個問題，一個更大的問題。我知道過去您曾談過，調整後的 EBITDA 利潤率在較長一段時間內會達到 18% 至 22% 的範圍。鑑於您已完成的所有網站優化以及合約 NHP 業務，您是否認為 18% 至 22% 的目標仍然是合理的，即隨著時間的推移業務成熟的中期目標？

I do. I think to get to the higher end of that, we'd have to see some recovery in the industry because there's some pricing pressure right now and some volume issues because I think of the overall demand in small animals in some of those areas.

我願意。我認為要達到更高的目標，我們必須看到該行業的一些復甦，因為現在存在一些定價壓力和一些數量問題，因為我認為其中一些地區對小動物的整體需求。

But if you look at where we're going to see our improvements next year, because of some of the site optimization things that we did, what we're seeing in our diet enrichment business, what we're seeing in the UK and Europe, what costs we're able to take out in transportation in the US, combined with our improvements in the NHP business, and then what we're seeing in our DSA business currently, and I do expect we'll probably see some recovery in the DSA business next year, one from the new services and from some of the other things that we've been able to grow.

但是，如果你看看明年我們將在哪些方面取得改進，因為我們所做的一些網站優化工作，我們在飲食豐富業務中看到的情況，我們在英國和歐洲看到的情況，我們能夠在美國的運輸中承擔哪些成本，結合我們在NHP 業務方面的改進，以及我們目前在DSA 業務中看到的情況，我確實預計我們可能會看到一些復甦明年的DSA 業務，其中一項來自新服務，還有一些我們已經能夠發展的其他業務。

So anyway, I'm optimistic that we'll be able to get back to that 18% to 22%. But I think to get to the higher end of that, it's going to require recovery in the industry.

所以無論如何，我對我們能夠回到 18% 到 22% 持樂觀態度。但我認為要達到更高的目標，就需要產業的復甦。

Matt Hewitt, Craig-Hallum.

馬特·休伊特，克雷格·哈勒姆。

Maybe first up, and I appreciate that you're not providing guidance, but is it safe to assume that we should anticipate growth in '25 off of '24's kind of a low watermark?

也許首先，我很感激你沒有提供指導，但是可以安全地假設我們應該預期 25 年的增長比 24 年的低水位線要高嗎？

Yes. I think just on the NHPs, we'll see some growth. I think we'll also see it in diet, bedding, and enrichment. We'll see continued growth, I believe, right now in the US and also UK.

是的。我認為僅在 NHP 方面，我們就會看到一些成長。我想我們也會在飲食、床上用品和豐富方面看到它。我相信，我們現在在美國和英國都會看到持續成長。

and Europe. And it wouldn't surprise me completely that we see growth next year in the Discovery. I believe that we're hopefully seeing the bottom of that and starting to see maybe some recovery. So I think we will see growth in all those areas. I don't think we'll see a lot of growth in pricing. I think it will be mainly in the NHP business. I think it'll come mainly from volume.

和歐洲。如果我們看到明年發現號的成長，我一點也不感到驚訝。我相信我們有望看到底部並開始看到一些復甦。所以我認為我們將看到所有這些領域的成長。我認為我們不會看到價格大幅成長。我認為這將主要集中在 NHP 業務上。我認為這主要來自數量。

And then I just want to maybe touch on the price. It's come up a couple of times. Obviously, you're seeing some price competition. Are you being forced to match to retain or even pick up some incremental share? Or are you able to highlight your white-glove treatment of customers, and so you're not having to perfectly match.

然後我只想談談價格。它出現過幾次了。顯然，您會看到一些價格競爭。您是否被迫匹配以保留甚至獲得一些增量份額？或者您是否能夠突出您對客戶的白手套待遇，因此您不必完全匹配。

Maybe you have to come down a little bit, but you're still able to retain or pick up incremental share because of the treatment and your strong customer relationships.

也許你必須降低一點，但由於待遇和強大的客戶關係，你仍然能夠保留或獲得增量份額。

Well, I think pricing's coming down for a couple of reasons. One, pricing is coming down because the NHP prices have come down, and so people's costs have come down. And second of all, I think there's been some margin compression also. So I think in general, there's been some pricing. And that's mainly in the DSA business, more so than the other businesses. But I think the NHP business also drove some of that pricing down.

嗯，我認為價格下降有幾個原因。第一，定價正在下降，因為 NHP 價格下降了，人們的成本也下降了。其次，我認為利潤率也有所壓縮。所以我認為總的來說，存在一些定價。這主要是在 DSA 業務中，比其他業務更重要。但我認為 NHP 業務也降低了部分定價。

And maybe one last one for me, and I'll hop back into the queue. But I just want to mesh a couple of comments. So I think earlier in your prepared comments, Bob, you had stated that the higher-cost NHPs are going to impact gross margins for that segment in '25. And then, Beth, you commented that you're expecting RMS gross margins to improve over the course of '25. Is that, as you were just alluding to, Bob, maybe first quarter, you've got some of that higher-cost inventory that you have to get through.

也許是我的最後一個，然後我會跳回隊列。但我只想補充一些評論。因此，鮑勃，我認為您在之前準備好的評論中曾說過，成本較高的 NHP 將影響 25 年該細分市場的毛利率。然後，Beth，您評論說您預計 RMS 毛利率將在 25 年期間有所改善。正如您剛才提到的，鮑勃，也許在第一季度，您必須處理一些成本較高的庫存。

Once you're through that, you should start to see some lift in gross margins over the remainder of the year. Am I hearing that correctly?

一旦你完成了這個任務，你應該會開始看到今年剩餘時間毛利率上升。我聽得對嗎？

Yes, Matt. I think what we're saying is that we think that there'll be some margin pressure in this quarter, but what we will see in calendar 2025 should be much stronger. I think -- yeah, I think it was a calendar versus a fiscal issue. But we're fairly optimistic going into calendar '25. But we want to make sure that what we have left, we clear out in this quarter.

是的，馬特。我認為我們所說的是，我們認為本季會出現一些利潤壓力，但我們在 2025 年看到的利潤壓力應該會更大。我認為——是的，我認為這是一個日曆問題與一個財務問題。但我們對 25 年曆相當樂觀。但我們希望確保我們在本季清理掉剩下的東西。

And with no further questions, I'd like to turn the call back over to Mr. Bob Leasure for any closing remarks.

沒有其他問題了，我想將電話轉回給 Bob Leasure 先生，讓其結束語。

All right. Well, thank you, everyone, for joining today's call. I think our site optimization, integration, ability to reduce our third-party expenses, and presales of NHPs have put us in a much better position going into our fiscal 2025. In 2025, we'll continue to build Inotiv as a high-touch, flexible provider with strong scientific capabilities focused on our customer needs. We'll continue to pay attention to the details.

好的。好的，謝謝大家參加今天的電話會議。我認為我們的網站優化、整合、減少第三方費用的能力以及 NHP 的預售使我們在進入 2025 財年時處於更好的位置。2025 年，我們將繼續將 Inotiv 打造成一家高接觸性、靈活的供應商，擁有強大的科學能力，專注於客戶需求。我們將繼續關注細節。

Our metrics related to customer service, quality, and delivery are continuing to improve, and we continue to get better every day. We're still a young company in our industry, and we believe our best days are ahead. Thank you for your time today.

我們與客戶服務、品質和交付相關的指標正在不斷改進，而且我們每天都在進步。我們在行業中仍然是一家年輕的公司，我們相信最好的日子就在前方。感謝您今天抽出時間。

Thank you. And ladies and gentlemen, that does conclude today's program. Thank you for your participation. You may disconnect at any time.

謝謝。女士們、先生們，今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。