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Sep 30, 2022
Inotiv Q4 2022 Earnings Report
Announced Q4 and full year fiscal 2022 financial results.
Key Takeaways
Inotiv's Q4 2022 revenue increased due to a rise in DSA revenue and incremental RMS revenue. However, the company reported a consolidated net loss, including a non-cash goodwill impairment charge related to the RMS segment.
Total revenue increased due to rise in DSA revenue and incremental RMS revenue.
Organic growth of DSA revenue was $12.0 million, and acquisitions added $2.1 million of incremental service revenue.
Consolidated net loss included a non-cash goodwill impairment charge of $236.0 million related to the RMS segment.
Company had $18.5 million in cash and cash equivalents as of September 30, 2022.
Inotiv
Inotiv
Inotiv Revenue by Segment
Revenue by Segment
RMS Revenue
CapyFin.comDSA Revenue
CapyFin.com Forward Guidance
The Company's guidance takes into account a number of factors, including existing DSA backlog, current sales pipeline, trends in cancellations and delays, trends in pricing, the impact of new products and services and recent cost-cutting initiatives including the announced facility consolidation plans in the U.S.
Positive Outlook
- FY 2023 revenue of at least $580 million
- Estimated Q1 FY 2023 revenue of $118 million to $122 million
- Estimated revenue during Q2-Q4 FY 2023 of approximately $460 million
- Adjusted EBITDA of $75 million
- Capital expenditures to moderate from 2022 and are providing guidance of no more than $25 million of expected capital expenditures during FY 2023
Challenges Ahead
- Guidance takes into account existing DSA backlog, current sales pipeline, trends in cancellations and delays, trends in pricing, the impact of new products and services and recent cost-cutting initiatives including the announced facility consolidation plans in the U.S
- Guidance represents the Company’s best efforts to estimate the impact of the non-human primate (“NHP”) supply disruption that was identified in Q1 FY 2023
- Company’s decision to refrain from selling or delivering any of its Cambodian NHPs held in the U.S. until the Company’s staff and external experts can evaluate what additionally could be done to satisfy itself that the NHPs in inventory from Cambodia can be reasonably determined to be purpose-bred
- Guidance of $75 million of Adjusted EBITDA includes an expected negative Adjusted EBITDA margin in Q1 FY 2023
- Estimated Adjusted EBITDA margin of approximately 17% during the nine-month period of Q2-Q4 FY 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income