ATLANTA, April 1, 2020 /PRNewswire/ -- CryoLife,
Inc. (NYSE: CRY), a leading cardiac and vascular surgery
company focused on aortic disease, announced today it has taken multiple steps to focus on the
health and welfare of its employees, patients, and customers.
"We remain fully committed to supporting our employees while maintaining the demand and support for
our products for customers and patients worldwide," commented
Pat Mackin, Chairman, President, and
Chief Executive Officer. "While the full short term impact on
us of the pandemic is not known, we believe we are well positioned
for the long term given that we have broad geographic and product
diversification as we sell into over 100 countries. In
addition, the conditions our products treat are progressive in
nature and eventually must be addressed. For example, in
the United States, CMS has
identified four categories of procedures that should not be
postponed during the coronavirus crisis, two of which are treated
by CryoLife's product portfolio. Finally, we have a strong
leadership team and we have acted quickly to protect our employees,
minimize business disruption and create additional financial
flexibility to serve the institutions and caregivers that depend on
our products and technical support."
During March 2020, CryoLife
implemented several initiatives in response to the potential impact
of COVID-19 on its operations. These are:
- Health and Safety: To reduce the risk to CryoLife's
employees and their families to potential exposure to COVID-19,
CryoLife has required that all employees, with the exception of
those related to manufacturing, order fulfillment and select
others, to work from home. CryoLife has also restricted
non-essential business travel, and urged employees to restrict
personal travel, to protect the health and safety of its employees,
patients and customers.
- Continuing to manufacture and support patients:
Currently, pursuant to its designation as an essential business
under federal guidelines, CryoLife is operating all three of its
manufacturing sites at near full production and its materials
supply chain is enabling the Company to supply its customers.
Specific protocols have been designed and implemented in
order to minimize contact among
employees working on site.
- Operating Expenses: At least until the Company has more
clarity on the full impact of COVID-19 on its business, which the
Company currently believes will depend in part on the duration and
variable geographic spread of COVID-19 and on government mandates
to address the pandemic, CryoLife has taken pre-emptive steps to
curtail spending, including implementing hiring restrictions,
deferring management merit increases, reducing most discretionary
spending, reducing capital expenditures, and delaying certain
R&D and clinical research projects that are not expected to
generate revenues before 2023 but continuing to pursue those that
will.
- Working Capital: On March 26,
2020, CryoLife borrowed the entire available amount under
its $30 million revolving credit
facility as a precautionary measure to increase cash and maintain
maximum financial flexibility during the current uncertainty in
global markets resulting from the COVID-19 pandemic. As of
March 31, 2020 CryoLife has over
$60 million in cash and cash
equivalents. Terms of CryoLife's credit facility are
described in the Company's Current Report on Form 8-K filed with
the Securities and Exchange Commission on December 1, 2017.
Update to Financial Guidance
CryoLife expects first
quarter 2020 revenues to be approximately $65.5 million compared to first quarter 2020
revenue guidance of $67 million to
$69 million. Due to the
continued uncertainties from the impact of COVID-19, CryoLife is
withdrawing its previously announced first quarter and full year
2020 financial guidance which was issued on February 13, 2020. CryoLife plans to
provide additional information during its earnings call regarding
first quarter results.
About CryoLife, Inc.
Headquartered in suburban
Atlanta, Georgia, CryoLife is a
leader in the manufacturing, processing, and distribution of
medical devices and implantable tissues used in cardiac and
vascular surgical procedures focused on aortic repair.
CryoLife markets and sells products in more than 100 countries
worldwide. For additional information about CryoLife, visit
our website, www.cryolife.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 the
unknown current short term impact on us of the pandemic; our
beliefs that we are well-positioned for the long
term given that we have broad geographic and product
diversification as we sell into over 100 countries, the conditions
our products treat are progressive in nature and eventually must be
addressed, two categories of CMS's "do not postpone procedures" are
treated by CryoLife's product portfolio; and that we have a strong
leadership team that has acted quickly to protect our employees,
minimize business disruption and create additional financial
flexibility to serve the institutions and caregivers that depend on
our products and technical support. They also include our planned hiring
restrictions, deferral of management merit increases, reduction to
most discretionary spending and to capital expenditures, and our
delay of certain R&D and clinical research projects that are
not expected to generate revenue before 2023 but the continued
pursuit of those that will; our expectation that first quarter 2020
revenues will be approximately $65.5
million; and our plans to provide additional information
during the Company's earnings call regarding the first quarter 2020 results.
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
the effects of COVID—19 and government mandates implemented to
address the pandemic. These risks and uncertainties include
the risk factors detailed in our Securities and Exchange Commission
filings, including our Form 10-K for year ended December 31, 2019. CryoLife does not
undertake to update its forward-looking statements, whether as a
result of new information, future events, or otherwise.
Contacts:
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CryoLife
D. Ashley
Lee
Executive Vice
President, Chief Financial Officer and
Chief Operating Officer
Phone:
770-419-3355
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Gilmartin Group
LLC
Greg Chodaczek / Lynn
Lewis
Phone:
646-924-1769
investors@cryolife.com
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SOURCE CryoLife, Inc.