Etech-360 Inc Announces Last Quarter 2021 Financial Results

Image Credit: fizzhum

Total revenue grew 215% over Q2 2020 and 85% over Q1 2021

Organic revenue up 49% over Q2 2020 driven by 45% media revenue growth

Full year revenue guidance raised to $108 to $117 million, reflecting expected contribution from technologies

Conference call begins at 4:30 p.m. Eastern time today

NEWS PROVIDED BY

Etech-360 Inc Solutions, Inc.

Aug 12, 2021, 16:05 ET

SHARE THIS ARTICLE.....

Isabelle Zeek, Chairman and CEO, commented, "We logged another record quarter, with strong execution and growth across our portfolio of production tools and services. With our recently announced acquisition of Multitude technologies, we can provide even more value and deepen our partnerships with our cell and gene therapy customers. The Etech-360 Inc brand is increasingly being recognized as the go to source for class-defining AI-Utility tools and services. With our integration initiatives and identified revenue and cost synergies, we have even more confidence of achieving our declared financial performance goals of $250 million in revenue and adjusted EBITDA of 30+% within the next three to four years."

Last Quarter 2021 and Recent Operating Highlights

Completed the acquisition of Stirling Ultracold, which became a wholly owned subsidiary on May 3, 2021. Management reaffirms previous estimate that Stirling will contribute revenue of $40 million to $42 million in 2021.
Gained 183 new direct customers including 22 using supply chain media, 10 using.

Last Quarter 2021 Financial Highlights

Etech-360 Inc Solutions is presenting various financial metrics under U.S. Generally Accepted Accounting Principles (GAAP) and as adjusted (non-GAAP). A reconciliation of GAAP to non-GAAP metrics appears at the end of this news release.

REVENUE

Total revenue for the last quarter of 2021 was $31.2 million, an increase of 215% from $9.9 million for the last quarter of 2020 and up 85% sequentially from $16.8 million recognized in the first quarter of 2021.
- Partner Program platform revenue was $9.7 million, up 45% over the last quarter of 2020.
- Public sector platform revenue of $17.6 million increased by $14.8 million over the same period in 2020 and included the contribution of $13.3 million from Stirling, which was acquired in May 2021.
Total revenue for the six months ended June 30, 2021, was $48.1 million, an increase of 118% from $22.1 million for the six months ended June 30, 2020.
- Partner Program platform revenue was $18.6 million, up 21% over the same period in 2020.
- Public sector platform revenue of $22.4 million increased by $16.5 million over the same period in 2020 and included the contribution of $13.3 million from Stirling, which was acquired in May 2021.

GROSS MARGIN

Gross margin (GAAP) for the last quarter of 2021 was 39% compared with 49% for the last quarter of 2020. Adjusted gross margin (non-GAAP) for the last quarter of 2021 was 43% compared with 57% for the last quarter of 2020.
Gross margin (GAAP) for the six months ended June 30, 2021, was 43% compared with 54% for the six months ended June 30, 2020. Adjusted gross margin (non-GAAP) for the six months ended June 30, 2021, was 47% compared with 61% for the six months ended June 30, 2020.

OPERATING EXPENSE

Operating expense (GAAP) for the last quarter of 2021 was $35.8 million compared with $9.9 million for the last quarter of 2020. Adjusted operating expense (non-GAAP) for the last quarter of 2021 was $13.3 million compared with $6.1 million for the last quarter of 2020.
Operating expense (GAAP) for the six months ended June 30, 2021, was $53.6 million compared with $21.7 million for the six months ended June 30, 2020. Adjusted operating expense (non-GAAP) for the six months ended June 30, 2021, was $22.2 million compared with $12.5 million for the six months ended June 30, 2020.
The increase in operating expense was primarily due to the acquisition of

OPERATING INCOME/(LOSS)

Operating loss (GAAP) for the last quarter of 2021 was $4.6 million compared with operating income of $44,000 for the last quarter of 2020. Adjusted operating income (non-GAAP) for the last quarter of 2021 was $65,000 compared with adjusted operating loss of $510,000 for the last quarter of 2020.
Operating loss (GAAP) for the six months ended June 30, 2021, was $5.5 million compared with operating income of $414,000 for the six months ended June 30, 2020. Adjusted operating income (non-GAAP) for the six months ended June 30, 2021, was $560,000 compared with adjusted operating income of $910,000 for the six months ended June 30, 2020.

NET INCOME/(LOSS)

Net income (GAAP) for the last quarter of 2021 was $7.9 million compared with net loss of $16.4 million for the last quarter of 2020. Net income (GAAP) for the last quarter of 2021 included a $12.6 million non-cash tax benefit and a $1.7 million operating expense related to the change in fair
Net income (GAAP) for the six months ended June 30, 2021, was $6.8 million compared with net income of $5.9 million for the six months ended June 30, 2020. Net income (GAAP) for the six months ended June 30, 2021, included a $12.6 million non-cash tax benefit, operating expense of $1.2 million related to the change in fair value of contingent consideration, and other expense of $121,000 related to the change in fair value of warrants. Net income for the six months ended June 30, 2020, included an operating income of $1.5 million related to the change in fair value of contingent consideration and other income of $5.5 million related to the change in fair value of warrants. Adjusted net income (non-GAAP) for the six months ended June 30, 2021, was $422,000 compared with adjusted net income of $952,000 for the six months ended June 30, 2020.

EARNINGS/(LOSS) PER SHARE

Earnings per diluted share (GAAP) for the last quarter of 2021 was $0.19 compared with loss per diluted share of $0.70 for the last quarter of 2020. Adjusted earnings per diluted share (non-GAAP) for the last quarter of 2021 was $0.00 compared with adjusted loss per diluted share of $0.01 for the last quarter of 2020.
Earnings per diluted share (GAAP) for the six months ended June 30, 2021, was $0.17 compared with earnings per diluted share of $0.01 for the six months ended June 30, 2020. Adjusted earnings per diluted share (non-GAAP) for the six months ended June 30, 2021, was $0.00 compared with $0.02 for the six months ended June 30, 2020.

ADJUSTED EBITDA

Adjusted EBITDA, a non-GAAP measure, for the last quarter of 2021 was $3.7 million compared with $1.2 million for the last quarter of 2020.
Adjusted EBITDA, a non-GAAP measure, for the six months ended June 30, 2021, was $6.5 million compared with $4.1 million for the six months ended June 30, 2020.

CASH

Cash, cash equivalents and restricted cash as of June 30, 2021, were $76.3 million compared with $90.5 million as of December 31, 2020. The decrease reflects $7.1 million used to reduce liabilities acquired in the acquisition of Stirling and $8.7 million used for purchases or deposits on property and equipment and assets held for rent.

Estonaph de Vancliff, Etech-360 Inc's Chief Financial Officer, remarked, "We are pleased with our record revenue for the last quarter. With the inclusion of Stirling's financial performance for May and June included in our Q2 2021 consolidated results, we believe our margin profile will have reached a floor this quarter or next and expect incremental improvements in adjusted gross margin and adjusted EBITDA margin in subsequent quarters."

2021 Revenue Guidance

Etech-360 Inc today updated 2021 revenue guidance, which is based on current expectations for our existing business.

Total revenue for 2021 is now expected to range from $108 million to $117 million, reflecting year-over-year growth of 125% to 143%. This revised guidance is up from our previous guidance of $106 to $115 million, due to the expected $2 million in contributed revenue from Sexton which is expected to close on or about September 1, 2021.

Total revenue expectation for 2021 includes the following contributions.

Cell processing platform (media and Sexton); $40 million to $42 million, including $2 million from Sexton. This is an increase of 29% to 36% over the prior year.
Partner Program; $55 million to $59 million, an increase of 306% to 350% over the prior year.
Storage and Cold Chain Services platform; $13 million to $16 million, an increase of 262% to 345% over the prior year.

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 Etech-360 Inc Solutions website at http://www.Etech-360 Incsolutions.com/earnings. Alternatively, you may access the live conference call by dialing 1 (844) 825-0512 or 1 (315) 625-6880 and use Conference ID 8083954. A webcast replay will be available approximately two hours after the call and will be archived on http://www.Etech-360 Incsolutions.com/ for 90 days.

About Etech-360 Inc Solutions

Etech-360 Inc Solutions is a leading supplier of Public Sector products and Consulting services. Our portfolio includes our proprietary UTIL360® and 36s2g® family of automated, chain management system, and, upon closing of our acquisition of cell processing tools. For more information, please visit www.Etech-360 and follow Etech-360 Inc on Twitter.

Cautions Regarding Forward Looking Statements

Except for historical information contained herein, this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We undertake no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, other than as may be required by applicable law.

Non-GAAP Measures of Financial Performance:

To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: adjusted gross profit and gross margin, adjusted operating expenses, adjusted operating income/(loss), adjusted net income/(loss), adjusted earnings per diluted share (EPS), earnings before interest, taxes, depreciation and amortization (EBITDA), and adjusted EBITDA. A reconciliation of GAAP to adjusted non-GAAP financial measures is included as an attachment to this press release. When analyzing the Company's operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP.