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Mar 31, 2023
Inotiv Q2 2023 Earnings Report
Announced Q2 2023 financial results with revenue increase driven by DSA and RMS segments but net loss reported due to increased expenses.
Key Takeaways
Inotiv reported increased revenue driven by growth in both DSA and RMS segments. However, the company experienced a net loss due to higher operating expenses, including depreciation, amortization, stock compensation, legal, and third-party fees. The company is confirming revenue guidance of at least $580 million and updated Adjusted EBITDA guidance to at least $70 million for FY 2023.
Total revenue increased due to growth in DSA and RMS segments.
Consolidated net loss was $(9.6) million, impacted by higher depreciation, amortization, stock compensation, and legal fees.
Company is addressing NHP supply disruption issues and pursuing alternative sourcing.
FY 2023 revenue guidance confirmed at least $580 million, with Adjusted EBITDA guidance updated to at least $70 million.
Revenue by Segment
Forward Guidance
Inotiv is confirming revenue guidance of at least $580 million and capital expenditures of no more than 5% of revenue for FY 2023. However, due to increased legal and third party fees, Adjusted EBITDA guidance is updated to at least $70 million.
Positive Outlook
- Revenue guidance of at least $580 million is confirmed.
- Capital expenditures are expected to be no more than 5% of revenue.
- Company expects to remain in compliance with financial covenants.
- Integration and site optimization initiatives are progressing.
- Growth is being achieved in new service lines.
Challenges Ahead
- Adjusted EBITDA guidance is updated to at least $70 million, down from $75 million.
- Increased legal and third party fees impacted guidance
- NHP supply disruption issues are being addressed.
- Legal and third party fees negatively impacted net loss.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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