2014 Q3 Form 10-Q Financial Statement

#000119312514306702 Filed on August 12, 2014

View on sec.gov

Income Statement

Concept 2014 Q3 2014 Q2 2013 Q2
Revenue $6.365M $6.335M $6.334M
YoY Change -0.31% 0.02% 7351.76%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $6.600M $5.700M $3.300M
YoY Change 73.68% 72.73% 153.85%
% of Gross Profit
Research & Development $16.65M $13.93M $7.247M
YoY Change 91.24% 92.23% 116.07%
% of Gross Profit
Depreciation & Amortization $1.540M $540.0K $160.0K
YoY Change 396.77% 237.5% 128.57%
% of Gross Profit
Operating Expenses $16.65M $19.67M $7.247M
YoY Change 91.24% 171.41% 116.07%
Operating Profit -$17.01M -$13.33M -$4.194M
YoY Change 176.27% 217.93% -8.83%
Interest Expense -$100.0K -$400.0K
YoY Change
% of Operating Profit
Other Income/Expense, Net -$20.00K $11.00K -$389.0K
YoY Change -145.45% -102.83% -1151.35%
Pretax Income -$17.03M -$13.32M -$4.583M
YoY Change 178.59% 190.7% -0.37%
Income Tax $0.00 -$11.80M $0.00
% Of Pretax Income
Net Earnings -$17.03M -$1.526M -$4.583M
YoY Change 178.59% -66.7% 0.44%
Net Earnings / Revenue -267.56% -24.09% -72.36%
Basic Earnings Per Share
Diluted Earnings Per Share -$605.0K -$61.22K -$2.091M
COMMON SHARES
Basic Shares Outstanding 28.60M shares 24.51M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2014 Q3 2014 Q2 2013 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $215.4M $175.7M $228.8M
YoY Change -0.65% -23.21%
Cash & Equivalents $89.60M $175.7M $228.8M
Short-Term Investments $125.8M
Other Short-Term Assets $7.900M $7.200M $1.700M
YoY Change 68.09% 323.53%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $223.3M $182.9M $230.5M
YoY Change 0.84% -20.67%
LONG-TERM ASSETS
Property, Plant & Equipment $14.98M $12.86M $2.515M
YoY Change 177.78% 411.21%
Goodwill $13.13M $13.13M
YoY Change
Intangibles $29.16M $30.10M
YoY Change
Long-Term Investments $48.40M
YoY Change
Other Assets $1.162M $1.700M $1.500M
YoY Change -17.0% 13.33%
Total Long-Term Assets $106.9M $57.75M $4.018M
YoY Change 1472.82% 1337.36%
TOTAL ASSETS
Total Short-Term Assets $223.3M $182.9M $230.5M
Total Long-Term Assets $106.9M $57.75M $4.018M
Total Assets $330.2M $240.6M $234.5M
YoY Change 44.66% 2.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.641M $2.586M $1.609M
YoY Change 218.27% 60.72%
Accrued Expenses $9.700M $11.70M $3.400M
YoY Change 94.0% 244.12%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $38.52M $39.55M $30.36M
YoY Change 22.34% 30.27%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $323.0K $352.0K $42.90M
YoY Change -99.17% -99.18%
Total Long-Term Liabilities $323.0K $352.0K $42.90M
YoY Change -99.17% -99.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $38.52M $39.55M $30.36M
Total Long-Term Liabilities $323.0K $352.0K $42.90M
Total Liabilities $68.30M $74.87M $73.27M
YoY Change -3.2% 2.17%
SHAREHOLDERS EQUITY
Retained Earnings -$127.8M -$110.8M -$84.48M
YoY Change 41.11% 31.17%
Common Stock $287.0K $251.0K $236.0K
YoY Change 21.61% 6.36%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $261.9M $165.8M $161.3M
YoY Change
Total Liabilities & Shareholders Equity $330.2M $240.6M $234.5M
YoY Change 44.66% 2.59%

Cashflow Statement

Concept 2014 Q3 2014 Q2 2013 Q2
OPERATING ACTIVITIES
Net Income -$17.03M -$1.526M -$4.583M
YoY Change 178.59% -66.7% 0.44%
Depreciation, Depletion And Amortization $1.540M $540.0K $160.0K
YoY Change 396.77% 237.5% 128.57%
Cash From Operating Activities -$20.77M -$11.33M -$8.250M
YoY Change 134.42% 37.33% 106.77%
INVESTING ACTIVITIES
Capital Expenditures -$1.770M -$2.010M -$460.0K
YoY Change -16.11% 336.96% 155.56%
Acquisitions
YoY Change
Other Investing Activities -$173.8M -$4.670M -$1.250M
YoY Change -173920.0% 273.6%
Cash From Investing Activities -$175.6M -$6.690M -$1.710M
YoY Change 8635.32% 291.23% 850.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 110.2M 1.230M 107.0M
YoY Change -9442.37% -98.85% 1069600.0%
NET CHANGE
Cash From Operating Activities -20.77M -11.33M -8.250M
Cash From Investing Activities -175.6M -6.690M -1.710M
Cash From Financing Activities 110.2M 1.230M 107.0M
Net Change In Cash -86.11M -16.79M 97.01M
YoY Change 614.61% -117.31% -2431.97%
FREE CASH FLOW
Cash From Operating Activities -$20.77M -$11.33M -$8.250M
Capital Expenditures -$1.770M -$2.010M -$460.0K
Free Cash Flow -$19.00M -$9.320M -$7.790M
YoY Change 181.48% 19.64% 104.46%

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<div> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> <b>1. Description of the business</b></p> <p style="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> bluebird bio, Inc. (the &#x201C;Company&#x201D; or &#x201C;bluebird&#x201D;) was incorporated in Delaware on April&#xA0;16, 1992, and is headquartered in Cambridge, Massachusetts. The Company was formed to develop, manufacture and market therapies to safely and effectively deliver genes useful in the treatment of serious human diseases. Since its inception, the Company has devoted substantially all of its resources to its development efforts relating to its product candidates, including activities to manufacture product in compliance with good manufacturing practices (&#x201C;GMP&#x201D;), conduct clinical studies of its product candidates, provide general and administrative support for these operations and protect its intellectual property.</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> On June&#xA0;30, 2014, the Company acquired all of the outstanding capital stock of Precision Genome Engineering, Inc. (&#x201C;Pregenen&#x201D;) and in connection therewith, obtained the rights to Pregenen&#x2019;s gene editing and cell signaling technology. See Note 6, &#x201C;Business combinations,&#x201D; for additional information.</p> </div>
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us-gaap Use Of Estimates
UseOfEstimates
<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b><i>Use of estimates</i></b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including: expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. This process may result in actual results differing materially from those estimated amounts used in the preparation of the financial statements. Estimates are used in the following areas, among others: acquisition-date fair value and subsequent fair value estimates used to assess impairment of long-lived assets, including goodwill and intangible assets, contingent consideration, stock-based compensation expense, accrued expenses, revenue and income taxes.</p> </div>
us-gaap Additional Cash And Cash Equivalent Related Text
AdditionalCashAndCashEquivalentRelatedText
Three months or less
us-gaap Revenues
Revenues
12670000
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-854000
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-12135000
us-gaap Contracts Revenue
ContractsRevenue
12500000
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-23932000
us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
344000
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
4673000
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
69000
us-gaap Operating Income Loss
OperatingIncomeLoss
-24001000
us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
11797000
us-gaap Net Income Loss
NetIncomeLoss
-12135000
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
4534000
us-gaap License And Services Revenue
LicenseAndServicesRevenue
170000
us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
7674000
us-gaap Issuance Of Stock And Warrants For Services Or Claims
IssuanceOfStockAndWarrantsForServicesOrClaims
168000
us-gaap Costs And Expenses
CostsAndExpenses
36671000
us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
11277000
us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
1864000
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
1896000
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Plan Modification Incremental Compensation Cost
ShareBasedCompensationArrangementByShareBasedPaymentAwardPlanModificationIncrementalCompensationCost
643000
us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
-12670000
us-gaap Share Based Compensation
ShareBasedCompensation
4843000
us-gaap Depreciation And Amortization
DepreciationAndAmortization
1017000
us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
-30569000
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-9207000
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-2702000
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
25394000
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1896000
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-11797000
blue Deferred Stock Offering Costs Included In Accounts Payable And Accrued Liabilities
DeferredStockOfferingCostsIncludedInAccountsPayableAndAccruedLiabilities
45000
blue Increase Decrease In Deferred Rent Payable
IncreaseDecreaseInDeferredRentPayable
1490000
blue Class Of Warrant Or Right Exercised
ClassOfWarrantOrRightExercised
0 shares
blue Receivable For Stock Option Exercise
ReceivableForStockOptionExercise
75000
blue Class Of Warrant Or Right Cancelled Or Expired In Period
ClassOfWarrantOrRightCancelledOrExpiredInPeriod
0 shares
blue Number Of New Employees Hired For Additional Headcount
NumberOfNewEmployeesHiredForAdditionalHeadcount
15 Employees
CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Period Increase Decrease
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecrease
960000 shares
CY2014Q1 blue Tax Incentive Program Tax Incentive Awarded
TaxIncentiveProgramTaxIncentiveAwarded
306000
CY2013Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
2151000 shares
CY2013Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-2.13
CY2013Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4440000 shares
CY2013Q2 us-gaap Revenues
Revenues
6334000
CY2013Q2 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-4583000
CY2013Q2 us-gaap Contracts Revenue
ContractsRevenue
6249000
CY2013Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-4583000
CY2013Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-389000
CY2013Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-4194000
CY2013Q2 us-gaap Net Income Loss
NetIncomeLoss
-4583000
CY2013Q2 us-gaap License And Services Revenue
LicenseAndServicesRevenue
85000
CY2013Q2 us-gaap Costs And Expenses
CostsAndExpenses
10528000
CY2013Q2 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
3281000
CY2013Q2 us-gaap Share Based Compensation
ShareBasedCompensation
1657000
CY2013Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
7247000
CY2014Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
24474000 shares
CY2014Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.06
CY2014Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4571000 shares
CY2014Q2 us-gaap Revenues
Revenues
6335000
CY2014Q2 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-1526000
CY2014Q2 us-gaap Contracts Revenue
ContractsRevenue
6250000
CY2014Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-13323000
CY2014Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
11000
CY2014Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-13334000
CY2014Q2 us-gaap Net Income Loss
NetIncomeLoss
-1526000
CY2014Q2 us-gaap License And Services Revenue
LicenseAndServicesRevenue
85000
CY2014Q2 us-gaap Costs And Expenses
CostsAndExpenses
19669000
CY2014Q2 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
5738000
CY2014Q2 us-gaap Share Based Compensation
ShareBasedCompensation
2351000
CY2014Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
13931000
CY2014Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-11797000
CY2014Q2 blue Class Of Warrant Or Right Exercised
ClassOfWarrantOrRightExercised
0 shares
CY2014Q2 blue Class Of Warrant Or Right Cancelled Or Expired In Period
ClassOfWarrantOrRightCancelledOrExpiredInPeriod
0 shares

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