Fourth Quarter and Recent Business Highlights:
- Achieved revenue of $93.7 million
in the fourth quarter of 2023 versus $79.4
million in the fourth quarter of 2022, an increase of 18% on
a GAAP basis and 15% on a non-GAAP constant currency basis
- Achieved revenue of $354.0
million for the full year of 2023 versus $313.8 million for the full year of 2022, an
increase of 13% on a GAAP basis and 12% on a non-GAAP constant
currency basis
- Net loss was ($4.0) million or
($0.10) per fully diluted share and
non-GAAP net income was $4.6 million
or $0.11 per fully diluted share in
the fourth quarter of 2023
- Non-GAAP adjusted EBITDA increased 40% to $15.3 million in the fourth quarter of 2023
compared to $11.0 million in the
fourth quarter of 2022. For the full year adjusted EBITDA increased
29.5% to $53.8 million
- Generated $11.4 million of free
cash flow for the full year of 2023
- Closed non-dilutive credit agreement for $350.0 million of senior secured, interest-only,
credit facilities with 6-year maturities
- Completed enrollment of the AMDS PERSEVERE clinical trial and
presented positive results of the full IDE cohort at the STS Annual
Meeting demonstrating a significant reduction of all-cause
mortality and primary major adverse events (MAEs) at 30-days
following AMDS implantation
- Appointed Lance A. Berry as
Executive Vice President and Chief Financial Officer
ATLANTA, Feb. 15,
2024 /PRNewswire/ -- Artivion, Inc. (NYSE:
AORT), a leading cardiac and vascular surgery company focused
on aortic disease, today announced financial results for the fourth
quarter and full year ended December 31,
2023.
"2023 was a standout year for Artivion as we exceeded our
revenue and adjusted EBITDA growth targets and continued to deliver
on our mission to enhance our world class, aortic focused company
with a highly differentiated product portfolio and global
footprint. Revenue growth in the fourth quarter was strong across
all four of our product lines and all four geographies, driven by
particularly strong performance in On-X with 19% constant currency
growth and tissue processing with 18% constant currency growth,"
said Pat Mackin, Chairman,
President, and Chief Executive Officer.
Mr. Mackin added, "In addition to our strong commercial results,
we also completed enrollment for our PERSEVERE clinical trial which
met every primary endpoint and has set the stage for success with
AMDS. Trial data out to 30 days demonstrated a 72% reduction in
all-cause mortality and a 52% reduction in the primary composite
endpoint of major adverse events, with zero occurrence of distal
anastomotic new entry, or DANE, when compared to the current
standard of care hemiarch procedure. We continue to work with the
FDA toward PMA approval, which we anticipate in the second half of
2025."
Mr. Mackin concluded, "Given our solid financial performance,
improved capital structure, ongoing clinical progress and
operational achievements in 2023, we enter 2024 with strong
momentum and confidence in our ability to deliver profitable
growth."
Fourth Quarter 2023 Financial Results
Total revenues
for the fourth quarter of 2023 were $93.7
million, an increase of 18% on a GAAP basis and 15% on a
non-GAAP constant currency basis, both compared to the fourth
quarter of 2022.
Net loss for the fourth quarter of 2023 was ($4.0) million, or ($0.10) per fully diluted common share, compared
to net income of $2.2 million, or
$0.05 per fully diluted common share
for the fourth quarter of 2022. Non-GAAP net income for the fourth
quarter of 2023 was $4.6 million, or
$0.11 per fully diluted common share,
compared to non-GAAP net income of $4.2
million, or $0.10 per fully
diluted common share for the fourth quarter of 2022. Non-GAAP net
income for the fourth quarter of 2023 includes pretax gains related
to foreign currency revaluation of $2.2
million.
Full Year 2023 Financial Results
Total revenues for
2023 were $354.0 million, reflecting
an increase of 13% on a GAAP basis and 12% on a non-GAAP constant
currency basis compared to the full year of 2022.
Net loss for 2023 was ($30.7)
million, or ($0.75) per fully
diluted common share, compared to net loss of ($19.2) million, or ($0.48) per fully diluted common share for the
full year of 2022. Non-GAAP net income for the full year of 2023
was $8.4 million, or $0.20 per fully diluted common share, compared to
non-GAAP net income of $2.1 million,
or $0.05 per fully diluted common
share for the full year of 2022. Non-GAAP net income for the full
year of 2023 includes pretax gains related to foreign currency
revaluation of $2.1 million.
2024 Financial Outlook
The Company expects revenues
for the full year 2024 to be in the range of $382 to $396
million, representing growth of 8% to 12% compared to 2023
on both an as reported and constant currency basis. At current
exchange rates, the company expects negligible year-over-year
currency impact to revenue.
Artivion expects non-GAAP adjusted EBITDA, to increase between
26% and 34% for the full year 2024 compared to 2023, resulting in
non-GAAP adjusted EBITDA to be in the range of $68 to $72 million
in 2024.
The Company's financial performance for 2024 and future periods
is subject to the risks identified below.
Non-GAAP Financial Measures
This press release
contains non-GAAP financial measures, including non-GAAP revenue,
non-GAAP net income, non-GAAP adjusted EBITDA, non-GAAP general,
administrative, and marketing expenses, and free cash flows.
Investors should consider this non-GAAP information in addition to,
and not as a substitute for, financial measures prepared in
accordance with US GAAP. In addition, this non-GAAP financial
information may not be the same as similar measures presented by
other companies. The Company's non-GAAP revenues are adjusted for
the impact of changes in currency exchange. The Company's non-GAAP
net income; non-GAAP adjusted EBITDA; non-GAAP general,
administrative, and marketing, and free cash flows results exclude
(as applicable) depreciation and amortization expense; interest
income and expense; stock-based compensation expense; loss or gain
on foreign currency revaluation; income tax expense or benefit;
corporate rebranding expense; business development, integration,
and severance income or expense; non-cash interest expense; gain
from sale of non-financial assets, and abandonment of CardioGenesis
cardiac laser therapy business. The Company generally uses non-GAAP
financial measures to facilitate management's review of the
operational performance of the company and as a basis for strategic
planning. Company management believes that these non-GAAP
presentations provide useful information to investors regarding
unusual non-operating transactions; the operating expense structure
of the Company's existing and recently acquired operations, without
regard to its on-going efforts to acquire additional complementary
products and businesses, and the transaction and integration
expenses incurred in connection with recently acquired and divested
product lines; and the operating expense structure excluding
fluctuations resulting from foreign currency revaluation and
stock-based compensation expense. The Company believes it is useful
to exclude certain expenses because such amounts in any specific
period may not directly correlate to the underlying performance of
its business operations or can vary significantly between periods
as a result of factors such as impact of recent acquisitions,
non-cash expense related to amortization of previously acquired
tangible and intangible assets, and any related adjustments to
their carrying values. The Company has adjusted for the impact of
changes in currency exchange from certain revenues to evaluate
comparable product growth rates on a constant currency basis. The
Company does, however, expect to incur similar types of expenses
and currency exchange impacts in the future, and this non-GAAP
financial information should not be viewed as a statement or
indication that these types of expenses will not recur. Company
management encourages investors to review the Company's
consolidated financial statements and publicly filed reports in
their entirety, including the reconciliation of GAAP to non-GAAP
financial measures.
Webcast and Conference Call Information
The company
will hold a teleconference call and live webcast on February 15, 2024, at 4:30
p.m. ET to discuss the results, followed by a question and
answer session. To participate in the conference call dial
201-689-8261 a few minutes prior to 4:30
p.m. ET. The teleconference replay will be available
approximately one hour following the completion of the event and
can be accessed by calling (toll free) 877-660-6853 or
201-612-7415. The conference number for the replay is 13742847.
The live webcast and replay can be accessed by going to the
Investors section of the Artivion website at www.Artivion.com and
selecting the heading Webcasts & Presentations.
About Artivion, Inc.
Headquartered in suburban
Atlanta, Georgia, Artivion, Inc.
is a medical device company focused on developing simple, elegant
solutions that address cardiac and vascular surgeons' most
difficult challenges in treating patients with aortic diseases.
Artivion's four major groups of products include: aortic stent
grafts, surgical sealants, On-X mechanical heart valves, and
implantable cardiac and vascular human tissues. Artivion markets
and sells products in more than 100 countries worldwide. For
additional information about Artivion, visit our website,
www.Artivion.com.
Forward Looking-Statements
Statements made in
this press release that look forward in time or that express
management's beliefs, expectations, or hopes are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements reflect the
views of management at the time such statements are made. These
statements include, but are not limited to, that we are entering
2024 with strong momentum and confidence in our ability to drive
profitable growth, given our financial performance in 2023, our
improved capital structure, and our on-going clinical progress; we
expect revenues for the full year 2024 to be in the range of
$382 to $396
million, representing revenue growth of between 8% to 12%
compared to 2023, both as reported and on a constant currency
basis; expect, at current exchange rates, negligible impact
year-over-year to revenue on a constant currency basis; and expect
non-GAAP adjusted EBITDA, to increase between 26% and 34% for the
full year 2024 compared to 2023, resulting in non-GAAP adjusted
EBITDA in the range of $68 to
$72 million in 2024. These
forward-looking statements are subject to a number of risks,
uncertainties, estimates and assumptions that may cause actual
results to differ materially from current expectations, including
but not limited to the benefits anticipated from the Ascyrus
Medical LLC transaction and Endospan agreements and our operational
improvements in our tissue business may not be achieved at all or
at the levels we anticipate or had originally anticipated; and the
benefits anticipated from our clinical trials and regulatory
approvals not be achieved or achieved on our anticipated timelines.
These risks and uncertainties include the risk factors detailed in
our Securities and Exchange Commission filings, including our Form
10-K for the year ended December 31,
2023 and subsequent Quarterly Reports on Form 10-Q and
annual reports on Form 10-K. Artivion does not undertake to update
its forward-looking statements, whether as a result of new
information, future events, or otherwise.
Artivion, Inc. and
Subsidiaries
Consolidated
Statements of Operations and Comprehensive Income
(Loss)
In Thousands, Except
Per Share Data
|
|
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
Products
|
$
69,144
|
|
$
58,627
|
|
$
261,185
|
|
$
230,353
|
Preservation
services
|
24,526
|
|
20,771
|
|
92,819
|
|
83,436
|
Total
revenues
|
93,670
|
|
79,398
|
|
354,004
|
|
313,789
|
|
|
|
|
|
|
|
|
Cost of products and
preservation services:
|
|
|
|
|
|
|
|
Products
|
22,511
|
|
18,785
|
|
84,595
|
|
72,166
|
Preservation
services
|
10,064
|
|
9,725
|
|
40,233
|
|
39,100
|
Total cost of
products and preservation services
|
32,575
|
|
28,510
|
|
124,828
|
|
111,266
|
|
|
|
|
|
|
|
|
Gross
margin
|
61,095
|
|
50,888
|
|
229,176
|
|
202,523
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General,
administrative, and marketing
|
50,278
|
|
38,454
|
|
208,977
|
|
157,443
|
Research and
development
|
7,645
|
|
8,304
|
|
28,707
|
|
38,879
|
Total operating
expenses
|
57,923
|
|
46,758
|
|
237,684
|
|
196,322
|
Gain from sale of
non-financial assets
|
—
|
|
—
|
|
(14,250)
|
|
—
|
Operating
income
|
3,172
|
|
4,130
|
|
5,742
|
|
6,201
|
|
|
|
|
|
|
|
|
Interest
expense
|
6,244
|
|
5,370
|
|
25,299
|
|
18,224
|
Interest
income
|
(398)
|
|
(61)
|
|
(1,077)
|
|
(147)
|
Other (income) expense,
net
|
(2,083)
|
|
(4,456)
|
|
3,106
|
|
3,108
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
(591)
|
|
3,277
|
|
(21,586)
|
|
(14,984)
|
Income tax
expense
|
3,384
|
|
1,108
|
|
9,104
|
|
4,208
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(3,975)
|
|
$
2,169
|
|
$
(30,690)
|
|
$
(19,192)
|
|
|
|
|
|
|
|
|
(Loss) income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.10)
|
|
0.05
|
|
$
(0.75)
|
|
$
(0.48)
|
Diluted
|
$
(0.10)
|
|
$
0.05
|
|
$
(0.75)
|
|
$
(0.48)
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
40,898
|
|
40,127
|
|
40,743
|
|
40,032
|
Diluted
|
40,898
|
|
40,509
|
|
40,743
|
|
40,032
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(3,975)
|
|
$
2,169
|
|
$
(30,690)
|
|
$
(19,192)
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
9,167
|
|
23,744
|
|
9,599
|
|
(11,722)
|
Comprehensive
income (loss)
|
$
5,192
|
|
$
25,913
|
|
$
(21,091)
|
|
$
(30,914)
|
Artivion, Inc. and
Subsidiaries
Consolidated Balance
Sheets
In Thousands, Except
Per Share Data
|
|
|
December
31,
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
58,940
|
|
$
39,351
|
Trade receivables,
net
|
71,796
|
|
61,820
|
Other
receivables
|
2,342
|
|
7,764
|
Inventories,
net
|
81,976
|
|
74,478
|
Deferred preservation
costs, net
|
49,804
|
|
46,371
|
Prepaid expenses and
other
|
15,810
|
|
17,550
|
|
|
|
|
Total current
assets
|
280,668
|
|
247,334
|
|
|
|
|
Goodwill
|
247,337
|
|
243,631
|
Acquired technology,
net
|
142,593
|
|
151,263
|
Operating lease
right-of-use assets, net
|
43,822
|
|
41,859
|
Property and equipment,
net
|
38,358
|
|
38,674
|
Other intangibles,
net
|
29,638
|
|
31,384
|
Deferred income
taxes
|
1,087
|
|
1,314
|
Other long-term
assets
|
8,894
|
|
7,339
|
|
|
|
|
Total
assets
|
$
792,397
|
|
$
762,798
|
Artivion, Inc. and
Subsidiaries
Consolidated Balance
Sheets
In Thousands, Except
Per Share Data
|
|
|
December
31,
|
|
2023
|
|
2022
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
13,318
|
|
$
12,004
|
Accrued
compensation
|
18,715
|
|
13,810
|
Accrued
expenses
|
12,732
|
|
12,374
|
Taxes
payable
|
3,840
|
|
2,635
|
Current maturities of
operating leases
|
3,395
|
|
3,308
|
Current portion of
long-term debt
|
1,451
|
|
1,608
|
Accrued procurement
fees
|
1,439
|
|
2,111
|
Current portion of
finance lease obligation
|
582
|
|
513
|
Other
|
2,390
|
|
1,312
|
|
|
|
|
Total current
liabilities
|
57,862
|
|
49,675
|
|
|
|
|
Long-term
debt
|
305,531
|
|
306,499
|
Contingent
consideration
|
63,890
|
|
40,400
|
Non-current maturities
of operating leases
|
43,977
|
|
41,257
|
Deferred income
taxes
|
21,851
|
|
24,499
|
Deferred compensation
liability
|
6,760
|
|
5,468
|
Non-current finance
lease obligations
|
3,405
|
|
3,644
|
Other
|
7,341
|
|
7,027
|
|
|
|
|
Total
liabilities
|
510,617
|
|
478,469
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
Preferred stock $0.01
par value per share, 5,000 shares authorized, no shares
issued
|
—
|
|
—
|
Common stock $0.01 par
value per share, 75,000 shares authorized, 42,569 and 41,830
shares issued as of December 31, 2023 and 2022,
respectively
|
426
|
|
418
|
Additional paid-in
capital
|
355,919
|
|
337,385
|
Retained
deficit
|
(47,907)
|
|
(17,217)
|
Accumulated other
comprehensive loss
|
(12,010)
|
|
(21,609)
|
Treasury stock at cost,
1,487 shares as of December 31, 2023 and 2022
|
(14,648)
|
|
(14,648)
|
|
|
|
|
Total shareholders'
equity
|
281,780
|
|
284,329
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
792,397
|
|
$
762,798
|
Artivion, Inc. and
Subsidiaries
Consolidated
Statement of Cash Flows
In Thousands
|
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
|
|
|
Net cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(30,690)
|
|
$
(19,192)
|
|
|
|
|
Adjustments to
reconcile net loss to net cash from operating
activities:
|
|
|
|
Change in fair value of
contingent consideration
|
23,490
|
|
(9,000)
|
Depreciation and
amortization
|
23,076
|
|
22,442
|
Non-cash
compensation
|
14,422
|
|
12,344
|
Non-cash lease
expense
|
7,354
|
|
7,432
|
Fair value adjustment
of long-term loan
|
5,000
|
|
—
|
Write-down of
inventories and deferred preservation costs
|
4,785
|
|
4,374
|
Non-cash interest
expense
|
1,858
|
|
1,832
|
Deferred income
taxes
|
(1,385)
|
|
(1,717)
|
Gain on sale of
non-financial assets
|
(14,250)
|
|
—
|
Other
|
1,358
|
|
2,268
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts payable,
accrued expenses, and other liabilities
|
1,682
|
|
(1,958)
|
Prepaid expenses and
other assets
|
535
|
|
(2,234)
|
Receivables
|
(4,050)
|
|
(13,340)
|
Inventories and
deferred preservation costs
|
(14,360)
|
|
(8,404)
|
Net cash flows
provided by (used in) operating activities
|
18,825
|
|
(5,153)
|
|
|
|
|
Net cash flows from
investing activities:
|
|
|
|
Proceeds from sale of
non-financial assets, net
|
14,250
|
|
—
|
Payments for Endospan
agreement
|
(5,000)
|
|
—
|
Capital
expenditures
|
(7,430)
|
|
(9,016)
|
Other
|
(2,322)
|
|
(1,699)
|
Net cash flows used
in investing activities
|
(502)
|
|
(10,715)
|
|
|
|
|
Net cash flows from
financing activities:
|
|
|
|
Proceeds from exercise
of stock options and issuance of common stock
|
3,955
|
|
3,368
|
Proceeds from financing
insurance premiums
|
3,558
|
|
—
|
Payment of debt
issuance costs
|
(249)
|
|
—
|
Redemption and
repurchase of stock to cover tax withholdings
|
(559)
|
|
(1,795)
|
Principal payments on
short-term notes payable
|
(2,531)
|
|
—
|
Repayment of
debt
|
(2,772)
|
|
(2,753)
|
Other
|
(537)
|
|
(459)
|
Net cash flows
provided by (used in) financing activities
|
865
|
|
(1,639)
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
401
|
|
1,848
|
Increase (decrease)
in cash and cash equivalents
|
19,589
|
|
(15,659)
|
|
|
|
|
Cash and cash
equivalents, beginning of year
|
39,351
|
|
55,010
|
Cash and cash
equivalents, end of year
|
$
58,940
|
|
$
39,351
|
Artivion, Inc. and
Subsidiaries
Financial
Highlights
In Thousands
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Products:
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
27,437
|
|
$
23,739
|
|
$
107,469
|
|
$
92,752
|
On-X
|
20,182
|
|
16,822
|
|
74,528
|
|
63,904
|
Surgical
sealants
|
18,513
|
|
16,357
|
|
68,016
|
|
65,379
|
Other
|
3,012
|
|
1,709
|
|
11,172
|
|
8,318
|
Total
products
|
69,144
|
|
58,627
|
|
261,185
|
|
230,353
|
|
|
|
|
|
|
|
|
Preservation
services
|
24,526
|
|
20,771
|
|
92,819
|
|
83,436
|
Total
revenues
|
$
93,670
|
|
$
79,398
|
|
$
354,004
|
|
$
313,789
|
|
|
|
|
|
|
|
|
North
America
|
50,062
|
|
42,709
|
|
187,603
|
|
167,542
|
Europe, the Middle
East, and Africa
|
30,206
|
|
25,611
|
|
114,814
|
|
104,119
|
Asia Pacific
|
8,922
|
|
7,481
|
|
33,577
|
|
27,973
|
Latin
America
|
4,480
|
|
3,597
|
|
18,010
|
|
14,155
|
Total
revenues
|
$
93,670
|
|
$
79,398
|
|
$
354,004
|
|
$
313,789
|
Artivion, Inc. and
Subsidiaries
Reconciliation of
GAAP to Non-GAAP
Revenues
In Thousands
(Unaudited)
|
|
|
Revenues for
the
Three Months Ended
December 31,
|
|
Percent
Change
From
Prior
Year
|
|
2023
|
|
2022
|
|
|
US
GAAP
|
|
US
GAAP
|
|
Exchange
Rate Effect
|
|
Constant
Currency
|
|
Constant
Currency
|
Products:
|
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
27,437
|
|
$
23,739
|
|
$
1,604
|
|
$
25,343
|
|
8 %
|
Surgical
sealants
|
18,513
|
|
16,357
|
|
273
|
|
16,630
|
|
11 %
|
On-X
|
20,182
|
|
16,822
|
|
189
|
|
17,011
|
|
19 %
|
Other
|
3,012
|
|
1,709
|
|
14
|
|
1,723
|
|
75 %
|
Total
products
|
69,144
|
|
58,627
|
|
2,080
|
|
60,707
|
|
14 %
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
24,526
|
|
20,771
|
|
(7)
|
|
20,764
|
|
18 %
|
Total
|
$
93,670
|
|
$
79,398
|
|
$
2,073
|
|
$
81,471
|
|
15 %
|
|
|
|
|
|
|
|
|
|
|
North
America
|
50,062
|
|
42,709
|
|
(15)
|
|
42,694
|
|
17 %
|
Europe, the Middle
East, and Africa
|
30,206
|
|
25,611
|
|
1,907
|
|
27,518
|
|
10 %
|
Asia Pacific
|
8,922
|
|
7,481
|
|
6
|
|
7,487
|
|
19 %
|
Latin
America
|
4,480
|
|
3,597
|
|
175
|
|
3,772
|
|
19 %
|
Total
|
$
93,670
|
|
$
79,398
|
|
$
2,073
|
|
$
81,471
|
|
15 %
|
|
Revenues for
the
Twelve Months Ended
December 31,
|
|
Percent
Change
From
Prior
Year
|
|
2023
|
|
2022
|
|
|
US
GAAP
|
|
US
GAAP
|
|
Exchange
Rate Effect
|
|
Constant
Currency
|
|
Constant
Currency
|
Products:
|
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
107,469
|
|
$
92,752
|
|
$
1,587
|
|
$
94,339
|
|
14 %
|
Surgical
sealants
|
68,016
|
|
$
65,379
|
|
236
|
|
65,615
|
|
4 %
|
On-X
|
74,528
|
|
$
63,904
|
|
61
|
|
63,965
|
|
17 %
|
Other
|
11,172
|
|
$
8,318
|
|
4
|
|
8,322
|
|
34 %
|
Total
products
|
261,185
|
|
230,353
|
|
1,888
|
|
232,241
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
$
92,819
|
|
$
83,436
|
|
(88)
|
|
83,348
|
|
11 %
|
Total
|
$
354,004
|
|
$
313,789
|
|
$
1,800
|
|
$
315,589
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
North
America
|
187,603
|
|
167,542
|
|
(268)
|
|
167,274
|
|
12 %
|
Europe, the Middle
East, and Africa
|
114,814
|
|
104,119
|
|
1,787
|
|
105,906
|
|
8 %
|
Asia Pacific
|
33,577
|
|
27,973
|
|
(73)
|
|
27,900
|
|
20 %
|
Latin
America
|
18,010
|
|
14,155
|
|
354
|
|
14,509
|
|
24 %
|
Total
|
$
354,004
|
|
$
313,789
|
|
$
1,800
|
|
$
315,589
|
|
12 %
|
Artivion, Inc. and
Subsidiaries
Reconciliation of
GAAP to Non-GAAP
General,
Administrative, and Marketing Expense, Adjusted EBITDA, and Free
Cash Flows
In Thousands
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
G&A expenses, GAAP to adjusted G&A,
non-GAAP:
|
|
|
|
|
|
|
|
General,
administrative, and marketing expense, GAAP
|
$ 50,278
|
|
$ 38,454
|
|
$
208,977
|
|
$
157,443
|
Business development,
integration, and severance expense (income)
|
2,531
|
|
(3,934)
|
|
24,992
|
|
(7,750)
|
Corporate rebranding
expense
|
72
|
|
499
|
|
355
|
|
1,908
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
—
|
|
—
|
|
160
|
|
—
|
Adjusted G&A,
non-GAAP
|
$ 47,675
|
|
$ 41,889
|
|
$
183,470
|
|
$
163,285
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
net (loss) income, GAAP to adjusted EBITDA,
non-GAAP:
|
|
|
|
|
|
|
|
Net (loss) income,
GAAP
|
$ (3,975)
|
|
$
2,169
|
|
$
(30,690)
|
|
$
(19,192)
|
Adjustments:
|
|
|
|
|
|
|
|
Business development,
integration, and severance expense (income)
|
2,425
|
|
(2,036)
|
|
29,269
|
|
(5,852)
|
Interest
expense
|
6,244
|
|
5,370
|
|
25,299
|
|
18,224
|
Depreciation and
amortization expense
|
5,816
|
|
5,426
|
|
23,076
|
|
22,442
|
Stock-based
compensation expense
|
3,956
|
|
3,155
|
|
14,422
|
|
12,344
|
Income tax
expense
|
3,384
|
|
1,108
|
|
9,104
|
|
4,208
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
—
|
|
—
|
|
390
|
|
—
|
Corporate rebranding
expense
|
72
|
|
499
|
|
355
|
|
1,908
|
Clinical trial
termination (income) expense
|
—
|
|
(197)
|
|
—
|
|
4,544
|
Interest
income
|
(398)
|
|
(61)
|
|
(1,077)
|
|
(147)
|
(Gain) loss on foreign
currency revaluation
|
(2,192)
|
|
(4,470)
|
|
(2,080)
|
|
3,085
|
Gain from sale of
non-financial assets
|
—
|
|
—
|
|
(14,250)
|
|
—
|
Adjusted EBITDA,
non-GAAP
|
$ 15,332
|
|
$ 10,963
|
|
$ 53,818
|
|
$ 41,564
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
cash flows from operating activities, GAAP to free
cash flows, non-GAAP:
|
|
|
|
|
|
|
|
Net cash flows
provided by (used in) operating activities
|
$
9,299
|
|
$
(217)
|
|
$ 18,825
|
|
$ (5,153)
|
Capital
expenditures
|
(1,927)
|
|
(2,092)
|
|
(7,430)
|
|
(9,016)
|
Free cash flows,
non-GAAP
|
$
7,372
|
|
$ (2,309)
|
|
$ 11,395
|
|
$
(14,169)
|
Artivion Inc.
and Subsidiaries
Reconciliation of
GAAP to Non-GAAP
Net Income and
Diluted Income Per Common Share
In Thousands, Except
Per Share Data
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP:
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
$
(591)
|
|
$
3,277
|
|
$
(21,586)
|
|
$
(14,984)
|
Income tax
expense
|
3,384
|
|
1,108
|
|
9,104
|
|
4,208
|
Net (loss)
income
|
$
(3,975)
|
|
$
2,169
|
|
$
(30,690)
|
|
$
(19,192)
|
|
|
|
|
|
|
|
|
Diluted (loss)
income per common share
|
$
(0.10)
|
|
$
0.05
|
|
$
(0.75)
|
|
$
(0.48)
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding
|
40,898
|
|
40,509
|
|
40,743
|
|
40,032
|
|
|
|
|
|
|
|
|
Reconciliation of
(loss) income before income taxes, GAAP to
adjusted income, non-GAAP
|
|
|
|
|
|
|
|
(Loss) income before
income taxes, GAAP:
|
$
(591)
|
|
$
3,277
|
|
$
(21,586)
|
|
$
(14,984)
|
Adjustments:
|
|
|
|
|
|
|
|
Business development,
integration, and severance expense (income)
|
2,425
|
|
(2,036)
|
|
29,269
|
|
(5,852)
|
Amortization
expense
|
3,745
|
|
3,635
|
|
15,198
|
|
15,310
|
Non-cash interest
expense
|
467
|
|
460
|
|
1,858
|
|
1,832
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
—
|
|
—
|
|
390
|
|
—
|
Corporate rebranding
expense
|
72
|
|
499
|
|
355
|
|
1,908
|
Clinical trial
termination (income) expense
|
—
|
|
(197)
|
|
—
|
|
4,544
|
Gain from sale of
non-financial assets
|
—
|
|
—
|
|
(14,250)
|
|
—
|
Adjusted income
before income taxes, non-GAAP
|
6,118
|
|
5,638
|
|
11,234
|
|
2,758
|
|
|
|
|
|
|
|
|
Income tax expense
calculated at a tax rate of 25%
|
1,529
|
|
1,409
|
|
2,808
|
|
689
|
Adjusted net
income, non-GAAP
|
$
4,589
|
|
$
4,229
|
|
$
8,426
|
|
$
2,069
|
|
|
|
|
|
|
|
|
Reconciliation of
diluted (loss) income per common share, GAAP to
adjusted diluted income per common share,
non-GAAP:
|
|
|
|
|
|
|
|
Diluted (loss)
income per common share, GAAP:
|
$
(0.10)
|
|
$
0.05
|
|
$
(0.75)
|
|
$
(0.48)
|
Adjustments:
|
|
|
|
|
|
|
|
Business development,
integration, and severance expense (income)
|
0.06
|
|
(0.05)
|
|
0.71
|
|
(0.14)
|
Amortization
expense
|
0.09
|
|
0.09
|
|
0.37
|
|
0.38
|
Non-cash interest
expense
|
0.01
|
|
0.01
|
|
0.04
|
|
0.04
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
—
|
|
—
|
|
0.01
|
|
—
|
Corporate rebranding
expense
|
—
|
|
0.02
|
|
0.01
|
|
0.05
|
Clinical trial
termination (income) expense
|
—
|
|
(0.01)
|
|
—
|
|
0.11
|
Tax effect of non-GAAP
adjustments
|
(0.03)
|
|
(0.02)
|
|
(0.20)
|
|
(0.11)
|
Gain from sale of
non-financial assets
|
—
|
|
—
|
|
(0.34)
|
|
—
|
Effect of 25% tax
rate
|
0.08
|
|
0.01
|
|
0.35
|
|
0.20
|
Adjusted diluted
income per common share, non-GAAP
|
$
0.11
|
|
$
0.10
|
|
$
0.20
|
|
$
0.05
|
|
|
|
|
|
|
|
|
Reconciliation of
diluted weighted-average common shares
outstanding GAAP to diluted weighted-average
common
shares outstanding,
non-GAAP:
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding, GAAP:
|
40,898
|
|
40,509
|
|
40,743
|
|
40,032
|
Adjustments:
|
|
|
|
|
|
|
|
Effect of dilutive
stock options and awards
|
802
|
|
—
|
|
598
|
|
464
|
Diluted
weighted-average common shares outstanding, non-GAAP
|
41,700
|
|
40,509
|
|
41,341
|
|
40,496
|
Contacts:
|
Artivion
|
Gilmartin Group
LLC
|
Lance A.
Berry
|
Brian Johnston / Laine
Morgan
|
Executive Vice
President &
|
Phone:
332-895-3222
|
Chief Financial
Officer
|
investors@artivion.com
|
Phone:
770-419-3355
|
|
View original
content:https://www.prnewswire.com/news-releases/artivion-reports-fourth-quarter-and-full-year-2023-financial-results-302063410.html
SOURCE Artivion