On August 6, 2020 BioLife Solutions, Inc. (NASDAQ: BLFS) ("BioLife" or the "Company"), a leading developer and supplier of a portfolio of class-defining bioproduction tools for cell and gene therapies, reported financial results for the three and six months ended June 30, 2020 (Press release, BioLife Solutions, AUG 6, 2020, View Source [SID1234563207]).

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Total revenue for the second quarter of 2020 was $9.9 million, a 48% increase over the second quarter of 2019. Revenue growth was driven by acquisitions completed in the second half of 2019. Revenue from biopreservation media accounted for approximately 67% of total revenue in the second quarter of 2020. Sales of BioLife’s ThawSTAR, evo and Custom Biogenic Systems (CBS) freezer products accounted for the balance of revenue and were in line with management’s reduced expectations given the effects of COVID-19.

Mike Rice, BioLife President & CEO, commented, "We continued to advance the business during the second quarter, achieving record revenue and further adoption of our media, thaw, evo cold chain and freezer platforms. In the first half of 2020, we gained 88 new customers across the product portfolio. Significant institutional investor interest resulted in our completion of an oversubscribed public stock offering just after the close of the quarter. BioLife is very well positioned for both organic and additional acquisition driven growth."

Key Accomplishments in the Second Quarter of 2020

Biopreservation media revenue of $6.7 million, representing 67% of total revenue. Media revenue decreased 23% from Q1 2020, during which several cell and gene therapy companies placed COVID-19-related safety stock orders. However, for the first half of 2020, media revenue increased 27% compared to the same period in 2019.
Gained 48 new customers including 14 using biopreservation media, 5 using ThawSTAR products, 6 using evo cold chain management solutions and 23 that placed initial orders for CBS freezers and related accessories.
Processed 14 new U.S. FDA Drug Master File cross-reference requests, indicating the planned use of CryoStor or HypoThermosol in human clinical trials of new cell or gene therapies. This brings the total U.S. FDA Drug Master File cross-reference requests to more than 400, including several requests that apply to potential therapies to treat COVID-19.
Confirmed that the evo cold chain management platform is now supporting more than 100 early stage cell and gene therapy clinical trials.
Closed a strategic capital investment by Casdin Capital for the purchase of $20 million of common stock.
Subsequent to the close of the quarter, raised gross proceeds of $86 million through an oversubscribed public offering of common stock.
Financial Highlights for the Second Quarter and Six Months Ended June 30, 2020

BioLife Solutions is presenting various financial metrics under U.S. Generally Accepted Accounting Principles (GAAP) and as adjusted (non-GAAP) to reflect acquisition-related activity. A reconciliation of GAAP to non-GAAP metrics appears at the end of this news release.

REVENUE

Total revenue for the second quarter of 2020 increased 48% to $9.9 million compared with $6.7 million for the second quarter of 2019.
Biopreservation media revenue of $6.7 million increased of 5% over the second quarter of 2019
Automated thawing product revenue of $376,000
evo cold chain management rental revenue of $439,000
CBS freezer and related accessories revenue of $2.4 million
Total revenue for the six months ended June 30, 2020 increased 77% to $22.1 million compared with $12.5 million for the first six months of 2019.
Biopreservation media revenue of $15.3 million increased 27% over the six months ended June 30, 2019
Automated thawing product revenue of $770,000
evo cold chain management rental revenue of $877,000
CBS freezer and related accessories revenue of $5.1 million
GROSS MARGIN

Gross margin (GAAP) for the second quarter of 2020 decreased to 48.7% from 69.4% in the second quarter of 2019. Adjusted gross margin (non-GAAP) for the second quarter of 2020 decreased to 56.6% from 72.2% in the second quarter of 2019.
Gross margin (GAAP) for the six months ended June 30, 2020 decreased to 53.7% from 70.4% for the same period in 2019. Adjusted gross margin (non-GAAP) for the six months ended June 30, 2020 decreased to 60.7% from 71.8% in the six months ended June 30, 2019.
The decline in 2020 second quarter and first half gross margin is due to product mix subsequent to acquisitions completed in the second half of 2019 having lower margins than the biopreservation media products and increases in manufacturing overhead.
OPERATING EXPENSE

Operating expenses (GAAP) for the second quarter of 2020 were $9.9 million compared with $6.0 million for the second quarter of 2019. Adjusted operating expenses (non-GAAP) for the second quarter of 2020 were $6.1 million compared with $3.8 million in the second quarter 2019.
Operating expenses (GAAP) for the six months ended June 30, 2020 were $21.7 million compared with $11.2 million for the same period in 2019. Adjusted operating expenses (non-GAAP) for the six months ended June 30, 2020 were $12.5 million compared with $7.2 million in the six months ended June 30, 2019.
The increase in 2020 second quarter and first half operating expenses is primarily due to acquisitions completed in the second half of 2019.
OPERATING INCOME/(LOSS)

Operating income (GAAP) for the second quarter of 2020 was $44,000 compared with $747,000 for the second quarter of 2019. Adjusted operating loss (non-GAAP) for the second quarter of 2020 was $510,000 compared with adjusted operating income of $993,000 in the second quarter of 2019.
Operating income (GAAP) for the six months ended June 30, 2020 was $414,000 compared with $1.3 million for the same period in 2019. Adjusted operating income (non-GAAP) for the six months ended June 30, 2020 was $906,000 compared with $1.8 million in the six months ended June 30, 2019.
NET INCOME/(LOSS)

Net loss (GAAP) for the second quarter of 2020 was $16.4 million compared with net income of $4.3 million for the second quarter of 2019. Net loss (GAAP) for the second quarter of 2020 included other expense of $16.4 million related to the change in fair value of warrants, and net income for the second quarter of 2019 included other income of $3.6 million related to the change in fair value of warrants. Adjusted net loss (non-GAAP) for the second quarter of 2020 was $492,000 compared with adjusted net income of $1.1 million in the second quarter of 2019.
Net income (GAAP) for the six months ended June 30, 2020 was $5.9 million compared with a net loss of $14.9 million for the same period in 2019. Net income (GAAP) for the six months ended June 30, 2020 included other income of $5.5 million related to the change in fair value of warrants, and net loss for the six months ended June 30, 2019 included other expense of $16.1 million related to the change in fair value of outstanding warrants. Adjusted net income (non-GAAP) for the six months ended June 30, 2020 was $952,000 compared with $2.1 million in the six months ended June 30, 2019.
EARNINGS/(LOSS) PER SHARE

Loss per share (GAAP) for the second quarter of 2020 was $0.70 compared with earnings per diluted share of $0.02 for the second quarter of 2019. Adjusted loss per share (non-GAAP) for the second quarter of 2020 was $0.01 compared with adjusted earnings per diluted share of $0.04 in the second quarter of 2019.
Earnings per diluted share (GAAP) for the six months ended June 30, 2020 was $0.01 compared with loss per share of $0.80 for the same period in 2019. Adjusted earnings per diluted share (non-GAAP) for the six months ended June 30, 2020 was $0.02 compared with $0.11 in the six months ended June 30, 2019.
EBITDA

EBITDA, a non-GAAP measure, for the second quarter of 2020 was negative $15.1 million compared with positive $4.3 million for the second quarter of 2019. Adjusted EBITDA for the second quarter of 2020 was positive $1.2 million compared with positive $1.9 million in the second quarter of 2019.
EBITDA, a non-GAAP measure, for the six months ended June 30, 2020 was positive $8.3 million compared with negative $14.9 million for the same period in 2019. Adjusted EBITDA for the six months ended June 30, 2020 was positive $4.1 million compared with positive $3.3 million in six months ended June 30, 2019.
CASH

Cash and cash equivalents as of June 30, 2020 were $29.9 million compared with $6.5 million as of December 31, 2019. The increase reflects a $20 million common share purchase agreement with Casdin Capital LLC during the second quarter.
Roderick de Greef, BioLife Chief Financial Officer and Chief Operating Officer, remarked, "With the $20 million raised from Casdin Capital and an additional $86 million raised in the July follow-on offering, we are well positioned to pursue additional strategic acquisitions to strengthen our portfolio of class-defining bioproduction tools for cell and gene therapies."

2020 Financial Guidance

Due to uncertainty regarding the impact of COVID-19 on BioLife and its customers, on May 1, 2020 the Company withdrew its financial guidance for 2020.

Conference Call & Webcast

Management will discuss the Company’s financial results and provide a general business update on a conference call and live webcast today at 4:30 p.m. ET (1:30 p.m. PT).

To access the webcast, log onto the Investor Relations page of the BioLife Solutions website at View Sourceearnings." target="_blank" title="View Sourceearnings." rel="nofollow">View Source Alternatively, you can access the live conference call by dialing 888-517-2485 with Conference ID 9675894. A webcast replay will be available approximately two hours after the call and will be archived on View Source for 90 days.