Inotiv, Inc. Reports Fourth Quarter and Full-Year Fiscal 2024 Financial Results
West Lafayette, Ind., Dec. 3, 2024 — Inotiv, Inc. (NASDAQ: NOTV), a leading contract research organization, announced its financial results for the fourth quarter ('Q4 FY 2024') and fiscal year ('FY 2024') ending September 30, 2024.
Key Financial Metrics
| Financial Metric | Q4 FY 2024 ($M) | Q4 FY 2023 ($M) | QoQ (%) | YoY (%) | Consensus Estimate ($M) |
|---|---|---|---|---|---|
| Total Revenue | 130.4 | 140.7 | +23.3 | -7.3 | 116.94 |
| Net Loss | 18.9 | 8.7 | -27.6 | -117.8 | N/A |
Interpretation: Inotiv reported a decrease in quarterly revenue by 7.3% year-over-year but showed a significant increase of 23.3% quarter-over-quarter. However, the net loss widened significantly compared to the previous year, reflecting ongoing challenges.
Revenue Performance by Segment
| Segment | Q4 FY 2024 ($M) | Q4 FY 2023 ($M) | Change (%) |
|---|---|---|---|
| Discovery and Safety Assessment (DSA) | 44.4 | 50.0 | -11.2 |
| Research Models and Services (RMS) | 86.0 | 90.7 | -5.2 |
Interpretation: The DSA segment experienced an 11.2% decrease primarily due to lower safety assessment services and discovery services revenue. RMS revenue declined by 5.2% driven by lower non-human primate-related product and service revenues and small animal model sales, reflecting industry-wide challenges.
Key Developments and Operational Highlights
- Enhanced liquidity through issuance of Second Lien Notes.
- Obtained amendment to credit agreement and extended note payable.
- Integration and cost-reduction initiatives in place to improve financial performance.
- Site optimization plans completed for the UK facilities.
Management Commentary
Robert Leasure Jr., President and CEO, emphasized that despite the volatility in the NHP business, Inotiv is seeing improvements in other aspects of its operations. The company is focused on further integration, cost reduction initiatives, and a strengthened customer-driven strategy. Mr. Leasure highlighted that the initiatives implemented over the past two years have positioned the company well for future growth.
Dividends and Share Repurchase Program
There were no announcements related to dividends or a share repurchase program in the reported period.
Forward Guidance
Inotiv did not provide forward guidance but indicated ongoing efforts to streamline operations and improve fiscal performance in the coming years.
Stock Price Movement
Following the earnings release, Inotiv's stock price increased by approximately 7.44%, reflecting a positive market response to the company’s financial performance and strategic initiatives.
In summary, while Inotiv’s financial challenges persist, the company's strategic efforts to optimize operations and enhance liquidity appear promising for long-term growth.
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