- Third Quarter 2023 Revenues were
$37.9 Million Representing an 18% Increase Year-over-Year; Nine Month 2023 Revenues of$106.1 Million , Up 26% Year-over-Year - Third Quarter 2023 Adjusted EBITDA of
$7.9 Million Representing a 31% Increase Year-over-Year; Nine Month 2023 Adjusted EBITDA of$17.7 Million , Up 67% Year-over-Year - Strong Third Quarter Results and Positive Outlook for Fourth Quarter Support Reiteration of Fiscal Year 2023 Revenue and Adjusted EBITDA Guidance
- Multiple Recent Achievements with CYTOGAM®, including Availability of Product Manufactured by the
Company for U.S. Commercial Sale and Presentation of New Clinical Data - Received Shareholder Approval and Subsequently Closed
$60 Million Private Placement with FIMI Opportunity Funds - Conference Call and Live Webcast Today at
8:30 AM ET
“We are highly encouraged with our strong financial and operational momentum during the first nine months of the year,” said
“We expect the momentum from the first nine months of the year to extend through the fourth quarter of 2023, with annual profitability to be further meaningfully enhanced as compared to last year. As such, we are reiterating our full-year 2023 revenue guidance of
“During the recent period we reported multiple achievements with CYTOGAM. Specifically, following recent FDA approval of the technology transfer process, CYTOGAM manufactured at our Israeli facility is now available for commercial sale in
“Our future prospects were also recently further buoyed by the recent closing of our
Financial Highlights for the Three Months Ended
- Total revenues were
$37.9 million in the third quarter of 2023, an 18% increase from the$32.2 million recorded in the third quarter of 2022. The increase in revenues was primarily attributable to increased sales of KEDRAB toKedrion due to increased market share and demand for the product in the U.S. market. - Gross profit and gross margins were
$14.8 million and 39%, respectively, in the third quarter of 2023, compared to$12.9 million and 40%, respectively, reported in the third quarter of 2022. Cost of goods sold in the Company’s Proprietary segment, for the third quarter of 2023 and 2022, included$1.3 million of depreciation expenses associated with intangible assets generated through the IgG products acquisition. - Operating expenses, including R&D, Sales & Marketing (S&M), G&A and other expenses, totaled
$10.4 million in the third quarter of 2023, as compared to$10.3 million in the third quarter of 2022. S&M costs, for the third quarter of 2023 and 2022, included$0.4 million of depreciation expenses of intangible assets generated through the IgG products acquisition. - Net income was
$3.2 million , or$0.07 per share, in the third quarter of 2023, as compared to a net income of$0.5 million , or$0.01 per share, in the third quarter of 2022. - Adjusted EBITDA, as detailed in the tables below, was
$7.9 million in the third quarter of 2023, a 31% increase as compared to$6.0 million in the third quarter of 2022. - Cash provided by operating activities was
$0.9 million in the third quarter of 2023, as compared to cash provided by operating activities of$5.5 million in the third quarter of 2022. The change correlates to the changes in the Company’s working capital and supports overall growth.
Financial Highlights for the Nine Months Ended
- Total revenues for the first nine months of 2023 were
$106.1 million , a 26% increase from the$83.9 million generated in the first nine months of 2022. The increase in revenues was primarily attributable to increased sales of KEDRAB toKedrion due to increased market share and demand for the product in the U.S. market. - Gross profit and gross margins for the first nine months of 2023 were
$41.1 million and 39%, respectively, compared to$31.4 million and 37%, respectively, in the first nine months of 2022. Cost of goods sold in the Company’s Proprietary segment, for the first nine months of 2023 and 2022, included$3.9 million of depreciation expenses associated with intangible assets generated through the IgG products acquisition. - Operating expenses, including R&D, S&
M, G&A and other expenses, totaled$33.8 million in the first nine months of 2023, as compared to$30.9 million in the prior year period. S&M costs, for the first nine months of 2023 and 2022, included$1.2 million of depreciation expenses of intangible assets generated through the IgG products acquisition. The increase in operating expenses was attributable to an increase in S&M costs associated with the acquired portfolio commercial operation, as well as increased R&D costs, primarily due to advancing the pivotal Phase 3 InnovAATe trial for Inhaled AAT. - Net income for the first nine months of 2023 was
$3.2 million , or$0.07 per share, as compared to net loss of$5.3 million , or$(0.12) per share, in the prior year period. - Adjusted EBITDA, as detailed in the tables below, was
$17.7 million in the first nine months of 2023, a 67% increase as compared to$10.6 million in the first nine months of 2022. - Cash used in operating activities during the first nine months of 2023 was approximately
$0.1 million , as compared to cash provided by operating activities of$21.8 million during the first nine months of 2022. The change correlates to the changes in the Company’s working capital and supports overall growth.
Balance Sheet Highlights
As of
Recent Corporate Highlights
- Received shareholder approval for and subsequently closed
$60 million private placement with FIMI Opportunity Funds. - Announced multiple achievements with CYTOGAM, including the availability of product manufactured by Kamada for
U.S. commercial sale, presented new clinical data highlighting five-year real-world survival benefits of high risk CMV mismatch lung transplant patients receiving CYTOGAM, and the establishment of aScientific Advisory Board focused onU.S. clinical programs for CYTOGAM. - The Company continues to conduct its business operations in
Israel with no effect on business continuity, and its global supply of products is not expected to be interrupted as a result of the recent events inIsrael .
Fiscal Year 2023 Guidance
Kamada continues to expect to generate fiscal year 2023 total revenues in the range of
Conference Call
Kamada management will host an investment community conference call on
Non-IFRS financial measures
We present EBITDA and adjusted EBITDA because we use this non-IFRS financial measure to assess our operational performance, for financial and operational decision-making, and as a means to evaluate period-to-period comparisons on a consistent basis. Management believes this non-IFRS financial measure are useful to investors because: (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and provide investors with a meaningful perspective on the current underlying performance of the Company’s core ongoing operations; and (2) they exclude the impact of certain items that are not directly attributable to our core operating performance and that may obscure trends in the core operating performance of the business. Non-IFRS financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, our IFRS results. We expect to continue reporting non-IFRS financial measures, adjusting for the items described below, and we expect to continue to incur expenses similar to certain of the non-cash, non-IFRS adjustments described below. Accordingly, unless otherwise stated, the exclusion of these and other similar items in the presentation of non-IFRS financial measures should not be construed as an inference that these items are unusual, infrequent or non-recurring. EBITDA and adjusted EBITDA are not recognized terms under IFRS and do not purport to be an alternative to IFRS terms as an indicator of operating performance or any other IFRS measure. Moreover, because not all companies use identical measures and calculations, the presentation of EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies. EBITDA and adjusted EBITDA are defined as net income (loss), plus income tax expense, plus or minus financial income or expenses, net, plus or minus income or expense in respect of securities measured at fair value, net, plus or minus income or expenses in respect of currency exchange differences and derivatives instruments, net, plus depreciation and amortization expense, plus non-cash share-based compensation expenses and certain other costs.
About Kamada
Cautionary Note Regarding Forward-Looking Statements
This release includes forward-looking statements within the meaning of Section 21E of the
CONTACTS:
Chaime Orlev
Chief Financial Officer
IR@kamada.com
212-915-2578
Britchie@LifeSciAdvisors.com
Condensed Consolidated Interim Statements of Financial Position | ||||||||||||||||||||
As of | As of | |||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||
Unaudited | Audited | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 52,603 | $ | 31,252 | $ | 34,258 | ||||||||||||||
Trade receivables, net | 25,107 | 23,997 | 27,252 | |||||||||||||||||
Other accounts receivables | 1,648 | 6,884 | 8,710 | |||||||||||||||||
Inventories | 73,795 | 73,029 | 68,785 | |||||||||||||||||
Total Current Assets | 153,153 | 135,162 | 139,005 | |||||||||||||||||
Non-Current Assets | ||||||||||||||||||||
Property, plant and equipment, net | 27,362 | 25,898 | 26,157 | |||||||||||||||||
Right-of-use assets | 5,494 | 2,793 | 2,568 | |||||||||||||||||
Intangible assets, | 142,501 | 148,620 | 147,072 | |||||||||||||||||
Contract assets | 8,546 | 7,164 | 7,577 | |||||||||||||||||
Total Non-Current Assets | 183,903 | 184,475 | 183,374 | |||||||||||||||||
Total Assets | $ | 337,056 | $ | 319,637 | $ | 322,379 | ||||||||||||||
Liabilities | ||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||
Current maturities of bank loans | $ | - | $ | 4,444 | $ | 4,444 | ||||||||||||||
Current maturities of lease liabilities | 1,138 | 1,004 | 1,016 | |||||||||||||||||
Current maturities of other long term liabilities | 15,989 | 25,095 | 29,708 | |||||||||||||||||
Trade payables | 12,812 | 30,619 | 32,917 | |||||||||||||||||
Other accounts payables | 7,318 | 7,948 | 7,585 | |||||||||||||||||
Deferred revenues | 15 | 40 | 35 | |||||||||||||||||
Total Current Liabilities | 37,272 | 69,150 | 75,705 | |||||||||||||||||
Non-Current Liabilities | ||||||||||||||||||||
Bank loans | - | 14,074 | 12,963 | |||||||||||||||||
Lease liabilities | 4,717 | 2,414 | 2,177 | |||||||||||||||||
Contingent consideration | 19,642 | 20,705 | 17,534 | |||||||||||||||||
Other long-term liabilities | 36,477 | 39,915 | 37,308 | |||||||||||||||||
Deferred revenues | - | 15 | - | |||||||||||||||||
Employee benefit liabilities, net | 558 | 813 | 672 | |||||||||||||||||
Total Non-Current Liabilities | 61,394 | 77,936 | 70,654 | |||||||||||||||||
Shareholder’s Equity | ||||||||||||||||||||
Ordinary shares | 15,020 | 11,732 | 11,734 | |||||||||||||||||
Additional paid in capital net | 265,700 | 210,355 | 210,495 | |||||||||||||||||
Capital reserve due to translation to presentation currency | (3,490 | ) | (3,490 | ) | (3,490 | ) | ||||||||||||||
Capital reserve from hedges | (98 | ) | (257 | ) | (88 | ) | ||||||||||||||
Capital reserve from share-based payments | 6,198 | 5,427 | 5,505 | |||||||||||||||||
Capital reserve from employee benefits | 318 | 212 | 348 | |||||||||||||||||
Accumulated deficit | (45,258 | ) | (51,428 | ) | (48,484 | ) | ||||||||||||||
Total Shareholder’s Equity | 238,390 | 172,551 | 176,020 | |||||||||||||||||
Total Liabilities and Shareholder’s Equity | $ | 337,056 | $ | 319,637 | $ | 322,379 | ||||||||||||||
Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income | ||||||||||||||||||||
Nine months period ended | Three months period ended | Year ended | ||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2022 | ||||||||||||||||
Unaudited | Unaudited | Audited | ||||||||||||||||||
Revenues from proprietary products | $ | 86,437 | $ | 67,198 | $ | 31,436 | $ | 25,580 | $ | 102,598 | ||||||||||
Revenues from distribution | 19,650 | 16,702 | 6,498 | 6,637 | 26,741 | |||||||||||||||
Total revenues | 106,087 | 83,900 | 37,934 | 32,217 | 129,339 | |||||||||||||||
Cost of revenues from proprietary products | 47,863 | 37,856 | 17,447 | 13,151 | 58,229 | |||||||||||||||
Cost of revenues from distribution | 17,146 | 14,632 | 5,684 | 6,196 | 24,407 | |||||||||||||||
Total cost of revenues | 65,009 | 52,488 | 23,131 | 19,347 | 82,636 | |||||||||||||||
Gross profit | 41,078 | 31,412 | 14,803 | 12,870 | 46,703 | |||||||||||||||
Research and development expenses | 10,694 | 10,181 | 3,180 | 3,118 | 13,172 | |||||||||||||||
Selling and marketing expenses | 11,573 | 10,435 | 3,711 | 3,843 | 15,284 | |||||||||||||||
General and administrative expenses | 10,603 | 9,481 | 3,701 | 3,165 | 12,803 | |||||||||||||||
Other expenses | 920 | 801 | (157 | ) | 182 | 912 | ||||||||||||||
Operating income (loss) | 7,288 | 514 | 4,368 | 2,562 | 4,532 | |||||||||||||||
Financial income | 92 | 32 | 67 | 29 | 91 | |||||||||||||||
Income (expenses) in respect of currency exchange differences and derivatives instruments, net | 726 | 756 | 553 | 163 | 298 | |||||||||||||||
Financial Income (expense) in respect of contingent consideration and other long- term liabilities. | (3,358 | ) | (5,924 | ) | (1,288 | ) | (2,049 | ) | (6,266 | ) | ||||||||||
Financial expenses | (1,343 | ) | (583 | ) | (404 | ) | (211 | ) | (914 | ) | ||||||||||
Income (expense) before tax on income | 3,405 | (5,205 | ) | 3,296 | 494 | (2,259 | ) | |||||||||||||
Taxes on income | 179 | 60 | 73 | 10 | 62 | |||||||||||||||
Net income (loss) | $ | 3,226 | $ | (5,265 | ) | $ | 3,223 | $ | 484 | $ | (2,321 | ) | ||||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Amounts that will be or that have been reclassified to profit or loss when specific conditions are met: | ||||||||||||||||||||
Gain (loss) on cash flow hedges | (334 | ) | (830 | ) | (90 | ) | (46 | ) | (776 | ) | ||||||||||
Net amounts transferred to the statement of profit or loss for cash flow hedges | 324 | 519 | 59 | 231 | 634 | |||||||||||||||
Items that will not be reclassified to profit or loss in subsequent periods: | ||||||||||||||||||||
Remeasurement gain (loss) from defined benefit plan | (30 | ) | 361 | (106 | ) | (59 | ) | 497 | ||||||||||||
Total comprehensive income (loss) | $ | 3,186 | $ | (5,215 | ) | $ | 3,086 | $ | 610 | $ | (1,966 | ) | ||||||||
Earnings per share attributable to equity holders of the Company: | ||||||||||||||||||||
Basic net earnings per share | $ | 0.07 | $ | (0.12 | ) | $ | 0.07 | $ | 0.01 | $ | (0.05 | ) | ||||||||
Diluted net earnings per share | $ | 0.06 | $ | (0.12 | ) | $ | 0.06 | $ | 0.01 | $ | (0.05 | ) | ||||||||
Condensed consolidated interim statements of cash flows | ||||||||||||||||||||
Nine months period Ended | Three months period Ended | Year Ended | ||||||||||||||||||
September, 30 | September, 30 | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2022 | ||||||||||||||||
Unaudited | Audited | |||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||
Net income (loss) | $ | 3,226 | $ | (5,265 | ) | $ | 3,223 | $ | 484 | $ | (2,321 | ) | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Adjustments to the profit or loss items: | ||||||||||||||||||||
Depreciation and impairment | 9,506 | 9,143 | 3,179 | 3,055 | 12,155 | |||||||||||||||
Financial expenses (income), net | 3,883 | 5,719 | 1,072 | 2,068 | 6,791 | |||||||||||||||
Cost of share-based payment | 941 | 935 | 312 | 366 | 1,153 | |||||||||||||||
Taxes on income | 179 | 60 | 73 | 10 | 62 | |||||||||||||||
Loss (gain) from sale of property and equipment | (5 | ) | - | - | - | - | ||||||||||||||
Change in employee benefit liabilities, net | (144 | ) | (106 | ) | (104 | ) | (10 | ) | (111 | ) | ||||||||||
14,360 | 15,751 | 4,532 | 5,489 | 20,050 | ||||||||||||||||
Changes in asset and liability items: | ||||||||||||||||||||
Decrease (increase) in trade receivables, net | 2,078 | 10,744 | (618 | ) | (6,358 | ) | 7,603 | |||||||||||||
Decrease (increase) in other accounts receivables | 2,716 | 2,917 | 1,177 | 844 | (578 | ) | ||||||||||||||
Decrease (increase) in inventories | (5,011 | ) | (5,606 | ) | 6,441 | (8,509 | ) | (1,361 | ) | |||||||||||
Decrease (increase) in deferred expenses | 2,763 | (2,596 | ) | (279 | ) | (2,112 | ) | (1,340 | ) | |||||||||||
Increase (decrease) in trade payables | (18,617 | ) | 5,895 | (13,181 | ) | 13,738 | 7,055 | |||||||||||||
Increase (decrease) in other accounts payables | (359 | ) | 566 | 49 | 2,083 | 290 | ||||||||||||||
Decrease in deferred revenues | (20 | ) | - | (23 | ) | - | (20 | ) | ||||||||||||
(16,450 | ) | 11,920 | (6,434 | ) | (314 | ) | 11,649 | |||||||||||||
Cash received (paid) during the period for: | ||||||||||||||||||||
Interest paid | (1,149 | ) | (550 | ) | (405 | ) | (170 | ) | (853 | ) | ||||||||||
Interest received | 92 | 15 | 67 | 12 | 97 | |||||||||||||||
Taxes paid | (174 | ) | (27 | ) | (62 | ) | (9 | ) | (36 | ) | ||||||||||
(1,231 | ) | (562 | ) | (400 | ) | (167 | ) | (792 | ) | |||||||||||
Net cash provided by (used in) operating activities | $ | (95 | ) | $ | 21,844 | $ | 921 | $ | 5,492 | $ | 28,586 | |||||||||
Condensed consolidated interim statements of cash flows | ||||||||||||||||||||
Nine months period Ended | Three months period Ended | Year Ended | ||||||||||||||||||
September, 30 | September, 30 | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2022 | ||||||||||||||||
Unaudited | Audited | |||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||
Purchase of property and equipment and intangible assets | $ | (3,876 | ) | $ | (2,807 | ) | $ | (1,729 | ) | $ | (1,616 | ) | $ | (3,784 | ) | |||||
Proceeds from sale of property and equipment | 6 | - | - | - | - | |||||||||||||||
Net cash provided by (used in) investing activities | (3,870 | ) | (2,807 | ) | (1,729 | ) | (1,616 | ) | (3,784 | ) | ||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||
Proceeds from exercise of share base payments | 3 | 7 | - | 1 | 9 | |||||||||||||||
Repayment of lease liabilities | (768 | ) | (842 | ) | (251 | ) | (269 | ) | (1,098 | ) | ||||||||||
Repayment of long-term loans | (17,407 | ) | (1,517 | ) | (15,185 | ) | (1,116 | ) | (2,628 | ) | ||||||||||
Repayment of other long-term liabilities | (17,500 | ) | (4,120 | ) | (11,500 | ) | (877 | ) | (5,626 | ) | ||||||||||
Proceeds from issuance of ordinary shares, net | 58,231 | - | 58,231 | - | - | |||||||||||||||
Net cash provided by (used in) financing activities | 22,559 | (6,472 | ) | 31,295 | (2,261 | ) | (9,343 | ) | ||||||||||||
Exchange differences on balances of cash and cash equivalent | (249 | ) | 100 | 328 | (296 | ) | 212 | |||||||||||||
Increase (decrease) in cash and cash equivalents | 18,345 | 12,665 | 30,815 | 1,319 | 15,671 | |||||||||||||||
Cash and cash equivalents at the beginning of the period | 34,258 | 18,587 | 21,788 | 29,933 | 18,587 | |||||||||||||||
Cash and cash equivalents at the end of the period | $ | 52,603 | $ | 31,252 | $ | 52,603 | $ | 31,252 | $ | 34,258 | ||||||||||
Significant non-cash transactions | ||||||||||||||||||||
Right-of-use asset recognized with corresponding lease liability | $ | 3,880 | $ | 526 | $ | 295 | $ | 230 | $ | 551 | ||||||||||
Purchase of property and equipment and Intangible assets | $ | 681 | $ | 134 | $ | 681 | $ | 134 | $ | 618 | ||||||||||
NON-IFRS MEASURES | ||||||||||||||||||||
Nine months period ended | Three months period ended | Year ended | ||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2022 | ||||||||||||||||
In thousands | ||||||||||||||||||||
Net income | $ | 3,226 | $ | (5,265 | ) | $ | 3,223 | $ | 484 | $ | (2,321 | ) | ||||||||
Taxes on income | 179 | 60 | 73 | 10 | 62 | |||||||||||||||
Financial expense (income), net | 3,883 | 5,719 | 1,072 | 2,068 | 6,791 | |||||||||||||||
Depreciation and amortization expense | 9,506 | 9,143 | 3,179 | 3,055 | 12,155 | |||||||||||||||
Non-cash share-based compensation expenses | 941 | 935 | 312 | 366 | 1,153 | |||||||||||||||
Adjusted EBITDA | $ | 17,735 | $ | 10,592 | $ | 7,859 | $ | 5,983 | $ | 17,840 | ||||||||||
Source:
2023 GlobeNewswire, Inc., source