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Dec 31, 2022
Inotiv Q1 2023 Earnings Report
Inotiv reported mixed results for Q1 2023, with revenue growth offset by a significant goodwill impairment charge and increased operating expenses.
Key Takeaways
Inotiv's Q1 2023 saw revenue growth driven by DSA and RMS segments, but a net loss of $86.9 million due to a goodwill impairment charge and increased expenses. The company is addressing challenges and aims for improved efficiency and margin expansion.
Total revenue increased due to growth in DSA and RMS segments.
Consolidated net loss was $(86.9) million, impacted by a $66.4 million non-cash goodwill impairment charge.
The company is addressing unexpected challenges and working to improve the business.
Reiterated FY 2023 revenue guidance of at least $580 million and Adjusted EBITDA of at least $75 million.
Inotiv
Inotiv
Inotiv Revenue by Segment
Revenue by Segment
RMS Revenue
CapyFin.comDSA Revenue
CapyFin.com Forward Guidance
Inotiv is confirming guidance of at least $580 million of revenue and at least $75 million of Adjusted EBITDA with adjusted EBITDA margins of approximately 17% for the nine-month period ended September 30, 2023, as well as capital expenditures of no more than 5% of revenue during FY 2023.
Positive Outlook
- Existing DSA backlog
- Current sales pipeline
- Trends in pricing
- Impact of new products and services
- Recent efficiency initiatives including the announced facility consolidation plans in the U.S.
Challenges Ahead
- NHP supply disruption
- Uncertainty related to the Company’s ability to import NHPs from Cambodia
- The Company is not currently shipping Cambodian NHPs at the same volumes that it was prior to the events on November 16, 2022.
- The Company expects to establish new procedures before it will resume Cambodian NHP imports.
- The Company expects that future imports of NHPs from Cambodia will be dependent on working with third parties to establish additional procedures aiming at providing additional assurances that future NHP imports from Cambodia are purpose-bred.
Revenue & Expenses
Visualization of income flow from segment revenue to net income