- Total Revenues for Fiscal Year 2023 of
$142.5 Million , Representing All-Time Record Annual Revenues and Up 10% Compared to Fiscal Year 2022 - Fiscal Year 2023 Adjusted EBITDA of
$24.1 Million , Up 35% Year-over-Year - Strong Momentum Supports Expected Double-Digit Growth with Anticipated Fiscal Year 2024 Revenues in Range of
$156 to$160 Million and Expected Adjusted EBITDA in Range of$27 to$30 Million - Kamada Maintains Financial Strength to Accelerate Growth and Pursue Compelling New Business Development Opportunities
- Recently Amended and Extended
U.S. Distribution Agreement withKedrion for KEDRAB® Includes$180 Million of Revenues to Kamada Over the First Four Years of the Agreement Term - Positive Feedback from Recent Meeting with the FDA Regarding Ongoing Pivotal Phase 3 Inhaled AAT Clinical Trial for AAT Deficiency
- Conference Call and Live Webcast Today at 8:30 AM ET
“We are extremely pleased with the strong financial and operational momentum we experienced through 2023, which allowed us to achieve our full-year guidance,” said
“The growing increase in KEDRAB sales is expected to continue through 2024 and beyond. We recently signed an amendment and extension of our distribution agreement with
“Looking ahead, we anticipate continued momentum through 2024, with double-digit top- and bottom-line growth. Specifically, we are introducing full-year 2024 revenue guidance of
“We continue patient enrollment in our ongoing pivotal Phase 3 InnovAATe clinical trial for the inhaled Alpha-1 Antitrypsin therapy for the treatment of AAT Deficiency. Importantly, the
Financial Highlights for the Year Ended
- Total revenues for 2023 were
$142.5 million , a 10% increase from the$129.3 million generated in 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 theU.S. - Gross profit and gross margins were
$55.5 million and 39%, respectively, in the year endedDecember 31, 2023 , compared to$46.7 million and 36%, respectively, in 2022. Cost of goods sold in the Company’s Proprietary segment for the years endedDecember 31, 2023 , and 2022, included$5.4 million of amortization expenses associated with intangible assets generated through the IgG products acquisition. - Operating expenses, including Research and Development (“R&D”), Sales & Marketing (“S&M”), General and Administrative Expenses (“G&A”) and other expenses, totaled
$45.4 million in the year endedDecember 31, 2023 , as compared to$42.2 million in the prior year. S&M costs for the years endedDecember 31, 2023 , and 2022, included$1.7 million of amortization 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 year ended
December 31, 2023 , was$8.3 million , or$0.15 per diluted share, as compared to a net loss of$2.3 million , or$(0.05) per share, in the prior year. - Adjusted EBITDA, as detailed in the tables below, was
$24.1 million in the year endedDecember 31, 2023 , a 35% increase as compared to$17.8 million in the prior year. - Cash provided by operating activities was
$4.3 million in the year endedDecember 31, 2023 , as compared to$28.6 million in the prior year. The change correlates to changes in the Company’s working capital in support of expected growth.
Financial Highlights for the Three Months Ended
- Total revenues were
$36.4 million in the fourth quarter of 2023, compared to$45.4 million in the fourth quarter of 2022. The reduction in sales year-over-year was as a result of a significantly more balanced quarterly sales spread during 2023 compared to 2022. - Gross profit and gross margins were
$14.4 million and 40%, respectively, in the fourth quarter of 2023, compared to$15.3 million and 34%, respectively, in the fourth quarter of 2022. Cost of goods sold in the Company’s Proprietary Products segment for the fourth quarter of 2023 and 2022, included$1.3 million of amortization expenses associated with intangible assets generated through the IgG products acquisition. - Operating expenses, including R&D, S&
M, G&A and other expenses, totaled$11.6 million in the fourth quarter of 2023, as compared to$11.3 million in the fourth quarter of 2022. S&M costs for the fourth quarter of 2023 and 2022 included$0.4 million of amortization expenses of intangible assets generated through the IgG products acquisition. - Net income was
$5.1 million , or$0.09 per share, in the fourth quarter of 2023, as compared to$2.9 million , or$0.07 per share, in the fourth quarter of 2022. - Adjusted EBITDA, as detailed in the tables below, was
$6.4 million in the fourth quarter of 2023, compared to$7.2 million in the fourth quarter of 2022. - Cash provided by operating activities was
$6.1 million in the fourth quarter of 2023, as compared to cash provided by operating activities of$6.7 million in the fourth quarter of 2022. The change correlates to the changes in the Company’s working capital in support of expected growth.
Balance Sheet Highlights
As of
Recent Corporate Highlights
- Announced the amendment and extension of the KEDRAB
U.S. distribution agreement withKedrion , which represents the largest commercial agreement in Kamada’s history and includes$180 million of total revenues to Kamada over the first four years of the eight-year term, which term began this past January. - Received feedback from the FDA related to the progress of the Inhaled AAT study. The FDA reconfirmed the overall design of the study and endorsed the independent DSMB’s unblinded positive safety assessment. The FDA expressed willingness to potentially accept a P<0.1 alpha level in evaluating InnovAATe for meeting the efficacy primary endpoint for registration. As a result, the Company plans to present a revised SAP and study protocol for the InnovAATe study and to seek the FDA’s feedback by mid-2024.
Fiscal Year 2024 Guidance
Kamada expects to generate fiscal year 2024 total revenues in the range of
Conference Call
Kamada management will host an investment community conference call on
https://viavid.webcasts.com/starthere.jsp?ei=1655132&tp_key=6e560eef4a.
Non-IFRS financial measures
We present EBITDA and adjusted EBITDA because we use these non-IFRS financial measures 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 these non-IFRS financial measures 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.
For the projected 2024 adjusted EBITDA information presented herein, the Company is unable to provide a reconciliation of this forward measure to the most comparable IFRS financial measure because the information for these measures is dependent on future events, many of which are outside of the Company’s control. Additionally, estimating such forward-looking measures and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods is meaningfully difficult and requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward-looking non-IFRS measures are estimated in a manner consistent with the relevant definitions and assumptions noted in the Company’s adjusted EBITDA for historical periods.
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
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of | |||||||||
2023 | 2022 | ||||||||
Assets | |||||||||
Current Assets | |||||||||
Cash and cash equivalents | $ | 55,641 | $ | 34,258 | |||||
Trade receivables, net | 19,877 | 27,252 | |||||||
Other accounts receivables | 5,965 | 8,710 | |||||||
Inventories | 88,479 | 68,785 | |||||||
Total Current Assets | 169,962 | 139,005 | |||||||
Non-Current Assets | |||||||||
Property, plant and equipment, net | 28,224 | 26,157 | |||||||
Right-of-use assets | 7,761 | 2,568 | |||||||
Intangible assets, | 140,465 | 147,072 | |||||||
Contract asset | 8,495 | 7,577 | |||||||
Total Non-Current Assets | 184,945 | 183,374 | |||||||
Total Assets | $ | 354,907 | $ | 322,379 | |||||
Liabilities | |||||||||
Current Liabilities | |||||||||
Current maturities of bank loans | $ | - | $ | 4,444 | |||||
Current maturities of lease liabilities | 1,384 | 1,016 | |||||||
Current maturities of other long term liabilities | 14,996 | 29,708 | |||||||
Trade payables | 24,804 | 32,917 | |||||||
Other accounts payables | 8,261 | 7,585 | |||||||
Deferred revenues | 148 | 35 | |||||||
Total Current Liabilities | 49,593 | 75,705 | |||||||
Non-Current Liabilities | |||||||||
Bank loans | - | 12,963 | |||||||
Lease liabilities | 7,438 | 2,177 | |||||||
Contingent consideration | 18,855 | 17,534 | |||||||
Other long-term liabilities | 34,379 | 37,308 | |||||||
Deferred revenues | - | - | |||||||
Employee benefit liabilities, net | 621 | 672 | |||||||
Total Non-Current Liabilities | 61,293 | 70,654 | |||||||
Shareholder’s Equity | |||||||||
Ordinary shares | 15,021 | 11,734 | |||||||
Additional paid in capital net | 265,848 | 210,495 | |||||||
Capital reserve due to translation to presentation currency | (3,490 | ) | (3,490 | ) | |||||
Capital reserve from hedges | 140 | (88 | ) | ||||||
Capital reserve from share-based payments | 6,427 | 5,505 | |||||||
Capital reserve from employee benefits | 275 | 348 | |||||||
Accumulated deficit | (40,200 | ) | (48,484 | ) | |||||
Total Shareholder’s Equity | 244,021 | 176,020 | |||||||
Total Liabilities and Shareholder’s Equity | $ | 354,907 | $ | 322,379 |
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended | Three months period ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues from proprietary products | $ | 115,458 | $ | 102,598 | $ | 29,021 | $ | 35,400 | ||||||||
Revenues from distribution | 27,061 | 26,741 | 7,411 | 10,039 | ||||||||||||
Total revenues | 142,519 | 129,339 | 36,432 | 45,439 | ||||||||||||
Cost of revenues from proprietary products | 63,342 | 58,229 | 15,479 | 20,373 | ||||||||||||
Cost of revenues from distribution | 23,687 | 24,407 | 6,541 | 9,775 | ||||||||||||
Total cost of revenues | 87,029 | 82,636 | 22,020 | 30,148 | ||||||||||||
Gross profit | 55,490 | 46,703 | 14,412 | 15,291 | ||||||||||||
Research and development expenses | 13,933 | 13,172 | 3,239 | 2,991 | ||||||||||||
Selling and marketing expenses | 16,193 | 15,284 | 4,620 | 4,849 | ||||||||||||
General and administrative expenses | 14,381 | 12,803 | 3,777 | 3,322 | ||||||||||||
Other expenses | 919 | 912 | - | 111 | ||||||||||||
Operating income (loss) | 10,064 | 4,532 | 2,776 | 4,018 | ||||||||||||
Financial income | 588 | 91 | 496 | 59 | ||||||||||||
Income (expenses) in respect of currency exchange differences and derivatives instruments, net | 55 | 298 | (671 | ) | (458 | ) | ||||||||||
Financial Income (expense) in respect of contingent consideration and other long- term liabilities. | (980 | ) | (6,266 | ) | 2,378 | (342 | ) | |||||||||
Financial expenses | (1,298 | ) | (914 | ) | (45 | ) | (331 | ) | ||||||||
Income before tax on income | 8,429 | (2,259 | ) | 5,024 | 2,946 | |||||||||||
Taxes on income | 145 | 62 | (34 | ) | 2 | |||||||||||
Net Income (loss) | $ | 8,284 | $ | (2,321 | ) | $ | 5,058 | $ | 2,944 | |||||||
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 | (186 | ) | (776 | ) | 148 | 54 | ||||||||||
Net amounts transferred to the statement of profit or loss for cash flow hedges | 414 | 634 | 90 | 115 | ||||||||||||
Items that will not be reclassified to profit or loss in subsequent periods: | ||||||||||||||||
Remeasurement gain (loss) from defined benefit plan | (73 | ) | 497 | (43 | ) | 136 | ||||||||||
Total comprehensive income (loss) | $ | 8,439 | $ | (1,966 | ) | $ | 5,253 | $ | 3,249 | |||||||
Earnings per share attributable to equity holders of the Company: | ||||||||||||||||
Basic net earnings per share | $ | 0.17 | $ | (0.05 | ) | $ | 0.09 | $ | 0.07 | |||||||
Diluted net earnings per share | $ | 0.15 | $ | (0.05 | ) | $ | 0.09 | $ | 0.07 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended | Three months period ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||
Net income (loss) | $ | 8,284 | $ | (2,321 | ) | $ | 5,058 | $ | 2,944 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
Adjustments to the profit or loss items: | ||||||||||||||||
Depreciation and impairment | 12,714 | 12,155 | 3,208 | 3,012 | ||||||||||||
Financial expenses (income), net | 1,635 | 6,791 | (2,248 | ) | 1,072 | |||||||||||
Cost of share-based payment | 1,314 | 1,153 | 373 | 218 | ||||||||||||
Taxes on income | 145 | 62 | (34 | ) | 2 | |||||||||||
Gain from sale of property and equipment | (5 | ) | - | - | - | |||||||||||
Change in employee benefit liabilities, net | (125 | ) | (111 | ) | 19 | (5 | ) | |||||||||
15,678 | 20,050 | 1,318 | 4,299 | |||||||||||||
Changes in asset and liability items: | ||||||||||||||||
Decrease (increase) in trade receivables, net | 7,835 | 7,603 | 5,757 | (3,141 | ) | |||||||||||
Decrease (increase) in other accounts receivables | (1,150 | ) | (578 | ) | (3,866 | ) | (3,495 | ) | ||||||||
Decrease (increase) in inventories | (19,694 | ) | (1,361 | ) | (14,683 | ) | 4,245 | |||||||||
Decrease (increase) in deferred expenses | 2,814 | (1,340 | ) | 51 | (1,256 | ) | ||||||||||
Increase (decrease) in trade payables | (8,885 | ) | 7,055 | 11,432 | 1,160 | |||||||||||
Increase (decrease) in other accounts payables | 765 | 290 | 1,124 | (276 | ) | |||||||||||
Decrease in deferred revenues | 113 | (20 | ) | 133 | (20 | ) | ||||||||||
(18,202 | ) | 11,649 | (52 | ) | (271 | ) | ||||||||||
Cash (paid) during the period for: | ||||||||||||||||
Interest paid | (1,228 | ) | (853 | ) | (79 | ) | (303 | ) | ||||||||
Interest received | - | 97 | (92 | ) | 82 | |||||||||||
Taxes paid | (217 | ) | (36 | ) | (43 | ) | (9 | ) | ||||||||
(1,445 | ) | (792 | ) | (214 | ) | (230 | ) | |||||||||
Net cash provided by (used in) operating activities | $ | 4,315 | $ | 28,586 | $ | 6,110 | $ | 6,742 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended | Three months period ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Cash Flows from Investing Activities | |||||||||||||||
Purchase of property and equipment and intangible assets | (5,850 | ) | (3,784 | ) | (1,974 | ) | (977 | ) | |||||||
Proceeds from sale of property and equipment | 7 | - | 1 | - | |||||||||||
Net cash provided by (used in) investing activities | (5,843 | ) | (3,784 | ) | (1,973 | ) | (977 | ) | |||||||
Cash Flows from Financing Activities | |||||||||||||||
Proceeds from exercise of share base payments | 4 | 9 | 1 | 2 | |||||||||||
Proceeds from issuance of ordinary shares, net | 58,231 | - | - | - | |||||||||||
Repayment of lease liabilities | (850 | ) | (1,098 | ) | (82 | ) | (256 | ) | |||||||
Repayment of long-term loans | (17,407 | ) | (2,628 | ) | - | (1,111 | ) | ||||||||
Repayment of other long-term liabilities | (17,300 | ) | (5,626 | ) | (1,500 | ) | (1,506 | ) | |||||||
Net cash provided by (used in) financing activities | 22,678 | (9,343 | ) | (1,581 | ) | (2,871 | ) | ||||||||
Exchange differences on balances of cash and cash equivalent | 233 | 212 | 482 | 112 | |||||||||||
Increase (decrease) in cash and cash equivalents | 21,383 | 15,671 | 3,038 | 3006 | |||||||||||
Cash and cash equivalents at the beginning of the period | 34,258 | 18,587 | 52,603 | 31,252 | |||||||||||
Cash and cash equivalents at the end of the period | $ | 55,641 | $ | 34,258 | $ | 55,641 | $ | 34,258 | |||||||
Significant non-cash transactions | |||||||||||||||
Right-of-use asset recognized with corresponding lease liability | $ | 6,546 | $ | 551 | $ | 2,666 | $ | 25 | |||||||
Purchase of property and equipment and Intangible assets | $ | 646 | $ | 618 | $ | 646 | $ | 618 |
NON-IFRS MEASURES – ADJUSTED EBITDA
For the year ended | Three months period ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
In thousands | ||||||||||||||
Net income | $ | 8,284 | $ | (2,321 | ) | $ | 5,058 | $ | 2,944 | |||||
Taxes on income | 145 | 62 | (34 | ) | 2 | |||||||||
Financial expense (income), net | 1,635 | 6,791 | (2,248 | ) | 1,072 | |||||||||
Depreciation and amortization expense | 12,714 | 12,155 | 3,208 | 3,012 | ||||||||||
Non-cash share-based compensation expenses | 1,314 | 1,153 | 373 | 218 | ||||||||||
Adjusted EBITDA | $ | 24,092 | $ | 17,840 | $ | 6,357 | $ | 7,248 |
Source:
2024 GlobeNewswire, Inc., source