ATLANTA, Feb. 16, 2012 /PRNewswire/ -- CryoLife,
Inc. (NYSE: CRY), a leading tissue processing and medical
device company focused on cardiac and vascular surgery, announced
today its results for the fourth quarter and full year of 2011.
Revenues for the fourth quarter increased 4 percent to a
record $30.4 million compared to
$29.2 million for the fourth quarter
of 2010. Revenues for the full year increased 3 percent to a
record $119.6 million compared to
$116.6 million for the full year of
2010.
Steven G. Anderson, president and
chief executive officer, said, "In 2011 we made significant
progress in repositioning CryoLife with earlier stage, growth
oriented products while also continuing to generate strong cash
flow from our core business. We expect to begin accelerating
our growth in 2012, led by expanded adoption of PerClot®, BioGlue®,
and TMR. Revenues from our product segment are expected to
increase by 10 percent to 15 percent for the year, with significant
upside potential over the next several years as we execute on the
clinical and regulatory pathways for our pipeline. In 2012
our strategic initiatives include enrolling our U.S. clinical
trials for PerClot and BioFoam®, potentially expanding the
indications for BioGlue in Japan,
initiating our pilot study to evaluate TMR with biologics in
Europe, and increasing revenues
for PerClot in Europe. We
believe that our portfolio of complementary, high margin products
has the potential to significantly expand our market opportunity,
leverage our core infrastructure and build value for the Company
and its shareholders."
Net income for the fourth quarter of 2011 was $1.9 million, or $0.07 per basic and fully diluted common share,
compared to net income of $2.1
million, or $0.08 per basic
and $0.07 per fully diluted common
share, for the fourth quarter of 2010.
Net income for the full year of 2011 was $7.4 million, or $0.26 per basic and fully diluted common share,
compared to net income of $3.9
million, or $0.14 per basic
and fully diluted common share, for the full year of 2010.
Excluding pretax expenses of $4.2
million related to the Company's acquisition of
Cardiogenesis and other business development activities, non-GAAP
adjusted net income for the full year of 2011 was $10.0 million, or $0.35 per fully diluted common share.
Surgical sealant and hemostat revenues, which consist primarily
of sales of BioGlue and PerClot, were $13.0
million for the fourth quarter of 2011 compared to
$15.1 million for the fourth quarter
of 2010, a decrease of 14 percent. The decrease in surgical
sealant and hemostat revenues was primarily due to the lack of
HemoStase revenues in the fourth quarter of 2011, partially offset
by a 3 percent increase in BioGlue revenues and a 134 percent
increase in PerClot revenues. The increase in BioGlue
revenues was primarily attributable to shipments into Japan. The Company discontinued sales of
HemoStase at the end of the first quarter of 2011 and began
distributing PerClot in international markets in the fourth quarter
of 2010.
Surgical sealant and hemostat revenues were $53.7 million for the full year of 2011 compared
to $56.4 million for the full year of
2010, a decrease of 5 percent. The decrease in surgical
sealant and hemostat revenues in the full year of 2011 was
primarily due to a decrease in HemoStase revenues, partially offset
by the full year addition of PerClot revenues and a 4 percent
increase in BioGlue revenues.
Revascularization technologies revenues were $2.4 million for the fourth quarter and
$5.7 million for the full year of
2011 as a result of the Company's acquisition of Cardiogenesis in
May 2011.
Preservation services revenues for the fourth quarter of 2011
increased 5 percent to $14.8 million
compared to $14.0 million for the
fourth quarter of 2010. The increase in preservation services
revenues for the fourth quarter of 2011 was primarily due to an
increase in shipments of vascular tissues and an increase in
average preservation service fees, partially offset by a decrease
in shipments of cardiac tissues.
Preservation services revenues for the full year of 2011 were
$59.8 million compared to
$59.7 million for the full year of
2010. Preservation services revenues for the full year of
2011 were favorably affected by an increase in shipments of
vascular tissue and an increase in average preservation service
fees, offset by a decrease in shipments of cardiac tissues.
Total gross margins increased to 64 percent in the fourth
quarter of 2011, up from 60 percent in the fourth quarter of 2010,
driven by higher gross margins from the Company's existing
products, the acquisition of the Cardiogenesis product line, and
the loss of lower margin HemoStase revenues. Preservation
services gross margins were 42 percent and 39 percent for the
fourth quarters of 2011 and 2010, respectively. Product gross
margins were 85 percent and 80 percent for the fourth quarters of
2011 and 2010, respectively.
Total gross margins were 63 percent and 58 percent for the full
year of 2011 and 2010, respectively. Preservation services
gross margins were 43 percent and 40 percent for the full year of
2011 and 2010, respectively. Product gross margins were 84
percent and 78 percent for the full year of 2011 and 2010,
respectively. Total gross margins for the full year of 2010
included a pretax charge of $1.6
million to write down HemoStase inventory that the Company
did not believe it would be able to distribute.
General, administrative, and marketing expenses for the fourth
quarter of 2011 were $14.6 million
compared to $12.2 million for the
fourth quarter of 2010. General, administrative, and
marketing expenses for the fourth quarter of 2011 have increased
compared to 2010 to support the sales personnel and ongoing
operations of Cardiogenesis. General, administrative, and
marketing expenses for the fourth quarter of 2011 included
approximately $843,000 in costs
related to ongoing litigation.
General, administrative, and marketing expenses for the full
year of 2011 were $57.3 million
compared to $49.1 million for the
full year of 2010. General, administrative, and marketing
expenses for the full year of 2011 included approximately
$4.2 million in costs related to the
Company's acquisition of Cardiogenesis and other business
development activities and approximately $1.9 million related to ongoing litigation.
General, administrative, and marketing expenses for the full
year of 2010 included approximately $1.0
million in costs related to business development activities
and $2.3 million related to ongoing
litigation.
Research and development expenses were $1.8 million and $2.0
million for the fourth quarters of 2011 and 2010,
respectively. Research and development expenses were
$6.9 million and $5.9 million for the full year of 2011 and 2010,
respectively. Research and development spending in 2011 was
primarily focused on SynerGraft® tissues and products, PerClot,
BioFoam Surgical Matrix, and BioGlue.
Acquired in-process research and development expense of
$3.5 million in the full year of 2010
was related to an intangible asset for PerClot distribution and
manufacturing rights in the U.S. and certain other countries in
which PerClot does not have current regulatory approvals.
Therefore the cost allocated to this asset was expensed upon
acquisition.
Other expense was $177,000 for the
full year of 2011 compared to $2.6
million for the full year of 2010. Other expense of
$2.6 million in the full year of 2010
consisted primarily of the $3.6
million charge related to the impairment of the investment
in Medafor common stock, partially offset by a $1.3 million gain on valuation of the derivative
related to the investment in Medafor common stock.
During the fourth quarter and full year ended December 31, 2011, the Company purchased 313,000
and 593,000 shares of the Company's common stock at average prices
of $4.52 and $4.90, respectively, resulting in aggregate
purchases of $1.4 million and
$2.9 million, respectively.
During January 2012, the
Company purchased 121,000 shares of the Company's common stock at
an average price of $5.15, resulting
in aggregate purchases of $627,000.
As of December 31, 2011, the
Company had $27.0 million in cash,
cash equivalents, and restricted securities, compared to
$40.8 million at December 31, 2010. The decrease in cash,
cash equivalents, and restricted securities is largely a result of
the $21.7 million paid for the
acquisition of Cardiogenesis in the second quarter of 2011 and
$3.5 million paid for the purchase of
Series A Preferred Stock of ValveXchange in early July 2011, and $2.9
million in common stock repurchases as discussed above,
partially offset by operating cash flows. Of this
$27.0 million in cash, cash
equivalents, and restricted securities, $1.2
million was received from the U.S. Department of Defense as
advance funding for the development of BioFoam protein hydrogel
technology, and $5.0 million was
designated as restricted securities primarily due to a financial
covenant requirement under the Company's credit agreement.
The Company's net cash flows provided by operations were
$16.8 million for the full year of
2011 and $20.8 million for the full
year of 2010.
2012 Financial Guidance
The Company expects total revenues for the full year of 2012 to
be between $126.0 million and $129.0
million, which include revenues of approximately
$500,000 related to the use of funds
received from the U.S. Department of Defense in connection with the
development of BioFoam. This represents annual total revenue
growth of 5 percent to 8 percent. The Company expects tissue
processing revenues to be flat for the full year of 2012 compared
to 2011. Revenues from the Company's higher margin product
segment are expected to grow between 10 percent and 15 percent for
the full year of 2012. This includes expectations for BioGlue
and BioFoam revenues to increase in the low to mid-single digits on
a percentage basis in 2012 compared to 2011, and PerClot revenues
to be between $3.5 million and $4.5
million, which represents growth of between 38 percent to 78
percent compared to 2011. The Company expects revenues from
revascularization technologies to be between $10.5 million and $11.5 million in 2012, which
represents growth of 9 percent to 19 percent compared to the
annualized fourth quarter 2011 run rate. Research and
development expenses are expected to be between $10.0 million and $12.0 million in 2012 as a
result of the Company's investments in its U.S. clinical trials for
Perclot and BioFoam, along with its European pilot study for TMR
with biologics. The Company expects earnings per share of
between $0.14 and $0.18 in 2012,
which includes the increased research and development expenses
described above, along with increased legal expenses related to the
Company's ongoing litigation with Medafor. The Company's
earnings per share guidance excludes expenses related to business
development and potential share repurchases, which cannot currently
be estimated. We have estimated litigation expense
conservatively on the high end of our anticipated range, because
litigation expenses are extremely variable and are not easily
predicted.
The Company expects the effective income tax rate for 2012 to be
in the mid thirty percent range.
The Company's financial guidance for the full year of fiscal
2012 is subject to the risks described below in the last paragraph
of this press release, prior to the financial tables.
Webcast and Conference Call Information
The Company will hold a teleconference call and live webcast
today at 10:00 a.m. Eastern Time to
discuss the results followed by a question and answer session
hosted by Mr. Anderson.
To listen to the live teleconference, please dial 201-689-8261 a
few minutes prior to 10:00 a.m.
A replay of the teleconference will be available from
February 16 through February 23 and
can be accessed by calling 877-660-6853 (toll free) or
201-612-7415. The account number for the replay is 244 and
the conference number is 388168.
The live webcast and replay can be accessed by going to the
Investor Relations section of the CryoLife Web site at
www.cryolife.com and selecting the heading Webcasts &
Presentations.
About CryoLife
Founded in 1984, CryoLife, Inc. is a leader in the processing
and distribution of implantable living human tissues for use in
cardiac and vascular surgeries throughout the U.S. and Canada. CryoLife's CryoValve® SG
pulmonary heart valve, processed using CryoLife's proprietary
SynerGraft® technology, has FDA 510(k) clearance for the
replacement of diseased, damaged, malformed, or malfunctioning
native or prosthetic pulmonary valves. CryoLife's CryoPatch®
SG pulmonary cardiac patch has FDA 510(k) clearance for the repair
or reconstruction of the right ventricular outflow tract (RVOT),
which is a surgery commonly performed in children with congenital
heart defects, such as Tetralogy of Fallot, Truncus Arteriosus, and
Pulmonary Atresia. CryoPatch SG is distributed in three
anatomic configurations: pulmonary hemi-artery, pulmonary trunk,
and pulmonary branch. CryoLife's BioGlue® Surgical Adhesive
is FDA approved as an adjunct to sutures and staples for use in
adult patients in open surgical repair of large vessels.
BioGlue is also CE marked in the European Community and
approved in Canada, Brazil and Australia for use in soft tissue repair and
was recently approved in Japan for
use in the repair of aortic dissections. CryoLife's BioFoam™
Surgical Matrix is CE marked in the European Community for use as
an adjunct in the sealing of abdominal parenchymal tissues (liver
and spleen) when cessation of bleeding by ligature or other
conventional methods is ineffective or impractical. CryoLife
distributes PerClot®, an absorbable powdered hemostat, in the
European Community. CryoLife, through its subsidiary
Cardiogenesis Corporation, specializes in the treatment of
cardiovascular disease and the sale of devices that treat severe
angina. Its market leading FDA-approved Holmium: YAG laser
console and single use, fiber-optic handpieces are used to perform
a surgical procedure known as Transmyocardial Revascularization
(TMR).
For additional information about CryoLife, visit CryoLife's
website, www.cryolife.com.
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 and are subject to a number of risks,
uncertainties, estimates, and assumptions that may cause actual
results to differ materially from current expectations. These
statements include those regarding our expectation that we will
begin accelerating our growth in 2012, led by expanded adoption of
PerClot, BioGlue, and TMR, the upside potential for revenues from
our product segment over the next several years as we execute on
the clinical and regulatory pathways for our pipeline, 2012
clinical and regulatory plans for our products, and the belief that
our portfolio of complementary, high margin products has the
potential to significantly expand our market opportunity, leverage
our core infrastructure, and build value for the Company and its
shareholders. These statements also include our anticipated
performance and expected effective income tax rate for the full
year of fiscal 2012. These risks and uncertainties include
that we will not experience expanded adoption of PerClot, BioGlue,
and TMR as soon as expected, if at all. The successful
development of our products, particularly our newer products, is
dependent on a number of factors beyond our control, including
physician and patient acceptance. Competing products may be
marketed or developed that reduce our market share, and in such
instances, we may see revenue growth slow or even decline.
BioGlue is a mature product in comparison to our other
products and, as such, continued or accelerated revenue growth may
be difficult to obtain for BioGlue. Each of our products is
subject to domestic and/or foreign regulation, and the success of
our products is dependent on our ability to maintain current
regulatory approvals and, in some instances, obtain new regulatory
approvals. Management may decide to delay or cease any
clinical or regulatory efforts with respect to any of our products
at any time. In the event that we are ultimately unable to
obtain or maintain any necessary regulatory approvals, we will not
be able to distribute the unapproved product in the respective
jurisdiction. Our expectations regarding revenues and
clinical and regulatory pathways for our products over the next
several years are particularly difficult to forecast with accuracy,
and our results with respect to future periods beyond 2012 are more
likely to differ from our current expectations due to
factors beyond our control. Regulatory requirements may
prove more difficult, time consuming, or costly to satisfy than we
currently anticipate. In addition, regulators may impose new
or different regulatory requirements on the products or services we
offer, which could result in delays for new products or services,
or disruption of sales for existing ones. CryoLife has also
inherited certain risks and uncertainties related to its 2011
acquisition of Cardiogenesis' business. These risks and
uncertainties include that CryoLife's ability to maintain revenues
and achieve growth in revenues from Cardiogenesis'
revascularization technologies in the future is dependent upon
physician awareness of this technology as a safe, efficacious, and
appropriate treatment for their patients, we will continue to
purchase some of Cardiogenesis' key product components from single
suppliers, and the loss of these suppliers could prevent or delay
shipments of its products, delay clinical trials, or otherwise
adversely affect our business, if Cardiogenesis' independent
contract manufacturers fail to timely deliver sufficient quantities
of some of Cardiogenesis' products and components, our
Cardiogenesis operations may be harmed, Cardiogenesis' contract
manufacturers are at locations that may be at risk from earthquakes
or other natural disasters, Cardiogenesis may have liability for
actions that occurred prior to our acquisition of Cardiogenesis
which could adversely affect us, and Cardiogenesis' internal
controls over financial reporting may not have been effective prior
to the merger, which could impact the value of our investment in
Cardiogenesis and potentially lead to lawsuits from former
Cardiogenesis shareholders, which could have a significant and
adverse effect on CryoLife. Cardiogenesis has been named as a
defendant in a patent infringement lawsuit, and costly litigation
may be necessary to protect or defend its intellectual property
rights. These risks and uncertainties related to
Cardiogenesis' business that CryoLife has inherited also include
the risk factors detailed in Cardiogenesis' Securities and Exchange
Commission filings, including its Form 10-K filing for the year
ended December 31, 2010, and
Cardiogenesis' other SEC filings. Our anticipated performance
and expected effective income tax rate for the full year of fiscal
2012 is subject to the general risks associated with our business,
which, in addition to those discussed above, include that we
are significantly dependent on our revenues from BioGlue and are
subject to a variety of risks affecting this product, including
that a German Patent Court has nullified our main BioGlue patent in
Germany, and if the ruling is
upheld on appeal, we would be prevented from suing to prevent third
parties from infringing the main BioGlue patent in Germany, the continued introduction into the
market of products that compete with BioGlue could have an
irreversible adverse impact on our sales of BioGlue, our BioGlue
patent expires in the U.S. in mid-2012 and in the rest of the world
in mid-2013, we are currently involved in significant litigation
with Medafor and that litigation cost has had, and is likely to
continue to have, a material adverse impact on our profitability,
litigation costs are extremely variable and difficult to predict,
and our actual earnings per share could differ greatly from those
projected as a result, the timing of research and development costs
is also difficult to predict and a delay or acceleration of
anticipated research and development spending could cause our
actual earnings per share to differ greatly from those projected,
our tissues and products have caused, and may in the future cause,
injury to patients, and we have been, and may in the future be,
exposed to tissue processing and product liability claims,
including one currently outstanding product liability lawsuit, and
additional regulatory scrutiny, required approvals, or recalls as a
result, our investment in Medafor has been impaired due to
Medafor's termination of our exclusive distribution agreement with
Medafor and our investment could be further impaired by risks
associated with Medafor's business or by Medafor's actions, which
could have a material adverse impact on our financial condition and
profitability, Medafor has filed counter-claims against us with
respect to our lawsuit against Medafor, and if Medafor is
successful in its claims, our revenues and profitability may be
materially, adversely impacted, we will not fully realize the
benefit of our investment in our distribution and license and
manufacturing agreements with Starch Medical, Inc. unless we are
able to obtain FDA approval for PerClot in the U.S., which will
require an additional commitment of funds, the FDA rejected our
initial IDE application for PerClot and we are working to address
its concerns, but there is no guarantee that we can do so on a
timely or cost efficient basis, if at all, the receipt of impaired
materials or supplies that do not meet our standards or the recall
of materials or supplies by our vendors or suppliers could have a
material adverse impact on our revenues, financial condition,
profitability, and cash flows, our sales are impacted by
challenging domestic and international economic conditions and
their constraining effect on hospital budgets and demand for our
tissues and products could decrease in the future, which could have
a material adverse impact on our business, healthcare policy
changes, including recent federal legislation to reform the U.S.
healthcare system, may have a material adverse effect on us, the
loss of any of our sole-source suppliers could have a material
adverse effect on our revenues, financial condition, profitability,
and cash flows, we may be unsuccessful in our efforts to market and
sell PerClot in the U.S. and internationally, we may expand through
acquisitions, or licenses of, or investments in other companies or
technologies, which may result in additional dilution to our
stockholders and consume resources that may be necessary to sustain
our business, we may not realize the anticipated benefits from
acquisitions and we may find it difficult to integrate recent
acquisitions or potential future acquisitions of technology or
business combinations, which could disrupt our business, dilute
stockholder value, and adversely impact our operating results, we
are subject to stringent domestic and foreign regulation which may
impede the approval process of our tissues and products, hinder our
development activities and manufacturing processes, and, in some
cases, result in the recall or seizure of previously cleared or
approved tissues and products, our HemoStase sales ceased in late
March 2011, and we will not be able
to participate in the hemostats market in the U.S. or other markets
where we lack regulatory approval unless we can obtain FDA or other
regulatory approval for PerClot, we may not be successful in
obtaining necessary clinical results and regulatory approvals for
services and products in development, and our new services and
products may not achieve market acceptance, uncertainties related
to patents and protection of proprietary technology may adversely
affect the value of our intellectual property, intense competition
may affect our ability to operate profitably, if we are not
successful in expanding our business activities in international
markets, we may be unable to increase our revenues, we are
dependent on the availability of sufficient quantities of tissue
from human donors, key growth strategies may not generate the
anticipated benefits, investments in new technologies and
acquisitions of products or distribution rights may not be
successful, regulatory action outside of the U.S. has affected our
business in the past and may affect our business in the future,
consolidation in the health care industry could lead to demands for
price concessions, limits on the use of our tissues and products,
and limitations on our ability to sell to certain of our
significant market segments, extensive government regulation may
adversely impact our ability to develop and market services and
products, the success of many of our tissues and products depends
upon strong relationships with physicians, our existing insurance
policies may not be sufficient to cover our actual claims
liability, we may be unable to obtain adequate insurance at a
reasonable cost, if at all, we are not insured against all
potential losses, and natural disasters or other catastrophes could
adversely impact our business, financial condition, and
profitability, our credit facility, which expires in October 2014, limits our ability to pursue
significant acquisitions, our ability to borrow under our credit
facility may be limited, continued fluctuation of foreign
currencies relative to the U.S. Dollar could materially adversely
impact our business, rapid technological change could cause our
services and products to become obsolete, our CryoValve SG
pulmonary heart valve post-clearance study may not provide expected
results, our investment in ValveXchange, Inc. may become impaired,
which could have a material adverse impact on our earnings, and we
are dependent on key personnel. Our expectations regarding
earnings per share for 2012 include anticipated 2012 expenses for
research and development and litigation. Actual 2012 expenses
for research and development and litigation may vary significantly
from our current expectations, based in part on factors beyond our
control. In the event that research and development expenses
and/or legal expenses are higher than expected, our actual 2012
earnings per share would be lower than projected. These
risks and uncertainties include the risk factors detailed in our
Securities and Exchange Commission filings, including our Form 10-K
to be filed on or around February 17,
2012 for the year ended December 31,
2011. CryoLife does not undertake to update its
forward-looking statements.
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Contacts:
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CryoLife
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The Ruth Group
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D. Ashley Lee
|
Nick Laudico / Zack
Kubow
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Executive Vice President, Chief
Financial Officer
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646-536-7030 / 7020
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|
and Chief Operating
Officer
|
nlaudico@theruthgroup.com
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Phone: 770-419-3355
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zkubow@theruthgroup.com
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CRYOLIFE,
INC. AND SUBSIDIARIES
|
|
Financial
Highlights
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
(Unaudited)
|
|
(Audited)
|
|
Revenues:
|
|
|
|
|
|
|
Preservation
services
|
$ 14,775
|
$ 14,025
|
|
$ 59,793
|
$ 59,724
|
|
Products
|
15,455
|
15,094
|
|
59,387
|
56,370
|
|
Other
|
167
|
103
|
|
446
|
551
|
|
Total revenues
|
30,397
|
29,222
|
|
119,626
|
116,645
|
|
|
|
|
|
|
|
|
Cost of preservation services
and products:
|
|
|
|
|
|
|
Preservation
services
|
8,631
|
8,546
|
|
34,340
|
35,868
|
|
Products
|
2,391
|
3,091
|
|
9,442
|
12,409
|
|
Total cost of preservation
services
|
|
|
|
|
|
|
and products
|
11,022
|
11,637
|
|
43,782
|
48,277
|
|
|
|
|
|
|
|
|
Gross margin
|
19,375
|
17,585
|
|
75,844
|
68,368
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
General, administrative,
and marketing
|
14,626
|
12,201
|
|
57,302
|
49,064
|
|
Research and
development
|
1,800
|
2,037
|
|
6,899
|
5,923
|
|
Acquired in-process
research and development
|
--
|
(236)
|
|
--
|
3,513
|
|
Total operating
expenses
|
16,426
|
14,002
|
|
64,201
|
58,500
|
|
|
|
|
|
|
|
|
Operating income
|
2,949
|
3,583
|
|
11,643
|
9,868
|
|
|
|
|
|
|
|
|
Interest
expense
|
26
|
35
|
|
142
|
180
|
|
Interest
income
|
(1)
|
(7)
|
|
(14)
|
(23)
|
|
Gain on valuation of
derivative
|
--
|
--
|
|
--
|
(1,345)
|
|
Other than temporary
investment impairment
|
--
|
--
|
|
--
|
3,638
|
|
Other expense,
net
|
61
|
97
|
|
49
|
141
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
2,863
|
3,458
|
|
11,466
|
7,277
|
|
Income tax
expense
|
997
|
1,343
|
|
4,095
|
3,333
|
|
|
|
|
|
|
|
|
Net income
|
$ 1,866
|
$ 2,115
|
|
$ 7,371
|
$ 3,944
|
|
|
|
|
|
|
|
|
Income per common
share:
|
|
|
|
|
|
|
Basic
|
$ 0.07
|
$ 0.08
|
|
$ 0.26
|
$ 0.14
|
|
Diluted
|
$ 0.07
|
$ 0.07
|
|
$ 0.26
|
$ 0.14
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
27,469
|
27,692
|
|
27,441
|
27,987
|
|
Diluted
|
27,745
|
28,030
|
|
27,759
|
28,274
|
|
|
|
|
|
|
|
|
|
|
|
CRYOLIFE,
INC. AND SUBSIDIARIES
|
|
Financial
Highlights
|
|
(In
thousands)
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
(Unaudited)
|
|
(Audited)
|
|
Preservation
Services:
|
|
|
|
|
|
|
Cardiac tissue
|
$ 6,629
|
$ 7,044
|
|
$
26,618
|
$
27,997
|
|
Vascular
tissue
|
8,146
|
6,981
|
|
33,175
|
31,727
|
|
Total preservation
services
|
14,775
|
14,025
|
|
59,793
|
59,724
|
|
|
|
|
|
|
|
|
Products:
|
|
|
|
|
|
|
BioGlue and
BioFoam
|
12,519
|
12,164
|
|
49,455
|
47,383
|
|
PerClot
|
617
|
264
|
|
2,528
|
264
|
|
HemoStase
|
(96)
|
2,666
|
|
1,699
|
8,793
|
|
Revascularization
technology
|
2,415
|
--
|
|
5,705
|
--
|
|
Other medical
devices
|
--
|
--
|
|
--
|
(70)
|
|
Total products
|
15,455
|
15,094
|
|
59,387
|
56,370
|
|
|
|
|
|
|
|
|
Other
|
167
|
103
|
|
446
|
551
|
|
Total revenues
|
$ 30,397
|
$ 29,222
|
|
$ 119,626
|
$ 116,645
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
U.S.
|
$ 24,475
|
$ 23,610
|
|
$
95,975
|
$
97,037
|
|
International
|
5,922
|
5,612
|
|
23,651
|
19,608
|
|
Total revenues
|
$ 30,397
|
$ 29,222
|
|
$ 119,626
|
$ 116,645
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
(Audited)
|
|
(Audited)
|
|
|
|
|
|
|
Cash, cash equivalents, and
restricted securities
|
$ 27,017
|
|
$ 40,806
|
|
Receivables, net
|
17,505
|
|
14,313
|
|
Deferred preservation
costs
|
29,039
|
|
31,570
|
|
Inventories
|
7,320
|
|
6,429
|
|
Investment in equity
securities
|
6,248
|
|
2,594
|
|
Total assets
|
147,864
|
|
137,438
|
|
Shareholders' equity
|
121,538
|
|
113,942
|
|
|
|
|
|
|
|
|
|
CRYOLIFE,
INC. AND SUBSIDIARIES
|
|
Unaudited
Reconciliation of
|
|
Non-GAAP
Adjusted Net Income and Adjusted Income per Common Share -
Diluted
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
|
2011
|
2010
|
|
GAAP:
|
|
|
|
|
|
|
|
Income before income
taxes
|
$ 11,466
|
$
7,277
|
|
Income tax
expense
|
4,095
|
3,333
|
|
|
|
|
|
Net income
|
$ 7,371
|
$ 3,944
|
|
|
|
|
|
Net income applicable to common
shareholders - diluted
|
$
7,224
|
$
3,894
|
|
|
|
|
|
Diluted income per common
share:
|
$
0.26
|
$
0.14
|
|
Diluted weighted-average common
shares outstanding:
|
27,759
|
28,274
|
|
|
|
|
|
|
|
|
|
Reconciliation excluding
items:
|
|
|
|
|
|
|
|
Income before income taxes,
GAAP
|
$
11,466
|
|
|
Excluding expenses
for business development activities
|
4,210
|
|
|
Adjusted income before income
taxes, non-GAAP
|
15,676
|
|
|
|
|
|
|
Income tax expense
calculated at 2011 effective tax rate of 36%
|
5,643
|
|
|
Adjusted net income,
non-GAAP
|
$
10,033
|
|
|
|
|
|
|
Adjusted net
income, non-GAAP allocated to participating securities -
diluted
|
201
|
|
|
Adjusted net income, non-GAAP
applicable to
|
|
|
|
common shareholders -
diluted
|
$
9,832
|
|
|
|
|
|
|
Diluted adjusted income per
common share, non-GAAP:
|
$
0.35
|
|
|
Diluted weighted-average common
shares outstanding:
|
27,759
|
|
|
|
|
|
|
|
Investors should consider this non-GAAP information in addition
to, and not as a substitute for, financial measures prepared in
accordance with U.S. GAAP. In addition, this non-GAAP
financial information may not be the same as similar measures
presented by other companies. Non-GAAP adjusted net income
and adjusted income per common share - diluted exclude expenses for
business development activities, including the Company's
transaction and integration costs associated with the acquisition
of Cardiogenesis. The Company believes that this non-GAAP
presentation provides useful information to investors regarding the
operating expense structure of the Company's existing and recently
acquired operations without regard to its ongoing efforts to
acquire additional complementary products and businesses and
without regard to the transaction and integration costs incurred in
connection with recently acquired businesses. The Company
does, however, expect to incur similar types of business
development expenses in the future, and this non-GAAP financial
information should not be viewed as a promise or indication that
these types of expenses will not recur.
SOURCE CryoLife, Inc.