First, what does Biolife Solutions do?
BioLife Solutions is the leading developer, manufacturer and supplier of proprietary clinical grade cell and tissue hypothermic storage and cryopreservation freeze media for cells and tissues. Our proprietary HypoThermosol® and CryoStor® platform of solutions are highly valued in the regenerative medicine, biobanking and drug discovery markets.
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https://www.biolifesolutions.com/company/
The company recently beat on earnings and was up 18% on November 9th:
Revenue from biopreservation media product sales for the third quarter of 2018 reached $5.3 million, an increase of 79% from the third quarter of 2017. Revenue for the nine months ended September 30, 2018 was $14.3 million, an increase of 81% compared with the prior year period. Product revenue growth for both periods was driven by sales of clinical-grade biopreservation media to the high-growth cell and gene therapy segment, and to BioLife’s worldwide distributor network.
Mike Rice, BioLife Chief Executive Officer, commented, “Q3 was another record revenue quarter and our second consecutive profitable quarter with more than $1 million in net income. We continued to realize the benefits of scaling our business. Product demand from the cell and gene therapy market and our distributors drove this record performance. BioLife is well positioned for a strong close to 2018.”
Third Quarter 2018 Financial Results
Gross margin for the third quarter of 2018 increased to 70% from 63% in the third quarter of 2017, due to higher average selling prices per liter, and reduced COGS per liter, the result of higher production volume driven by increased sales of biopreservation media to the regenerative medicine market segment.
Operating expenses for the third quarter of 2018 were $2.5 million, compared with $1.9 million for the third quarter of 2017, primarily reflecting higher performance-based compensation and sales and marketing expenses.
Operating profit for the third quarter of 2018 was $1.2 million, compared with an operating loss of $32,000 for the third quarter of 2017.
Net income attributable to common stockholders for the third quarter of 2018 was $1.2 million, or $0.05 per diluted share, compared with a net loss attributable to common stockholders of $425,000, or $0.03 diluted per share, for the third quarter of 2017.
EBITDA for the third quarter of 2018 was positive $1.2 million compared with negative $234,000 for the third quarter of 2017.
Adjusted EBITDA for the third quarter of 2018 was $1.7 million compared with $298,000 for the third quarter of 2017.
Cash provided by operations for the third quarter of 2018 was $809,000, compared with cash provided by operations of $74,000 for the prior-year period.
Cash balance at September 30, 2018 was $32.4 million compared with $2.8 million at September 30, 2017, and $6.7 million at December 31, 2017.
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https://seekingalpha.com/pr/17328381-biolife-solutions-annou…
A article from Shareholders Unite (Pseudonym), seekingalpha:
Summary
BioLife is a recent addition to the SHU portfolio and one of its highest conviction buys.
We were already very positive, but after the Q3CC, we have become more bullish.
The rapid growth is still in the very early stages, and with SAVSU, the company could have a first major expansion of its already impressive TAM.
Future acquisitions in the fragmented market look set to increase the TAM further, up to 5-10x and create synergies.
The company is already profitable, generates cash, and has a healthy balance sheet with no debt.
We see numerous reasons to buy BioLife Solutions (BLFS):
The market opportunity is very large
Sales are exploding
Gross margins are increasing
There is substantial operational leverage
The company is, unlike other small growth companies, already profitable and generates cash.
The shares are off 50% of their 52-week high
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https://seekingalpha.com/article/4221389-shu-portfolio-bioli…
Ok, what’s the downside to this company? Beware, it is a Thinly traded micro cap
Starrob