ATLANTA, April 30, 2020 /PRNewswire/ --
First Quarter and Recent Business Highlights:
- Achieved total revenues of $66.4
million in the first quarter 2020 versus preliminary first
quarter 2020 revenues of $65.5
million
-
- Total revenues decreased 2% and decreased 1% on a constant
currency basis versus first quarter 2019
- Excluding TMR, total revenues increased 1% and increased 2% on
a constant currency basis versus first quarter of 2019
- Received CE Mark for our Frozen Elephant Trunk E-vita OPEN
NEO
- Received renewed CE Mark status for our AAP Ascending Aortic
Prosthesis
- Secured Credit Facility Covenant Modification to Enhance
Liquidity
CryoLife, Inc. (NYSE: CRY), a leading cardiac and
vascular surgery company focused on aortic disease, announced today
its financial results for the first quarter ended March 31, 2020.
"During these challenging times, we are focused on protecting
our employees' health and safety while continuing to supply our
customers and patients who depend on our life saving and life
sustaining products," commented Pat
Mackin, Chairman, President, and Chief Executive Officer.
"Our business is well suited to weather the impact of this
global pandemic given the nature of the procedures in which our
products are used. Our manufacturing facilities have been
running at near capacity and our supply chain remained largely
intact. We have continued to fund R&D programs related to
products that could deliver revenue in 2021 and 2022, including our
U.S. PerClot PMA, BioGlue China and PROACT Mitral. Further,
we renegotiated our Credit Facility covenant to have greater
financial flexibility, if necessary. Given our recent device
approvals, and the ongoing progress made on our key growth
initiatives, we expect 2021 to be a strong year for CryoLife."
First Quarter 2020 Financial Results
Total revenues
for the first quarter of 2020 were $66.4
million, reflecting a decrease of (2%), and (1%) on a
non-GAAP constant currency basis, both compared to the first
quarter of 2019. Growth in tissue processing and On-X
revenues was offset by decreases in BioGlue and JOTEC
revenues.
Net loss for the first quarter of 2020 was ($6.7) million, or ($0.18) per fully diluted common share, compared
to a net loss of ($297,000), or
($0.01) per fully diluted common
share for the first quarter of 2019. Non-GAAP net loss for
the first quarter of 2020 was ($3.0)
million, or ($0.08) per fully
diluted common share, compared to non-GAAP net income of
$1.5 million, or $0.04 per fully diluted common share for the
first quarter of 2019. Net loss on both a GAAP and non-GAAP
basis reflects a $3.7 million pretax
loss primarily related to non-cash unrealized foreign currency
losses on intercompany payable balances.
2020 Financial Outlook
As previously reported on April 1,
2020, the Company has withdrawn its 2020 financial guidance
due to uncertainties resulting from the COVID-19 pandemic.
All numbers are presented on a GAAP basis except where expressly
referenced as non-GAAP. The Company does not provide GAAP
income per common share on a forward-looking basis because the
Company is unable to predict with reasonable certainty business
development and acquisition-related expenses, purchase accounting
fair value adjustments, and any unusual gains and losses without
unreasonable effort. These items are uncertain, depend on
various factors, and could be material to results computed in
accordance with GAAP.
The Company's financial performance for 2020 is subject to the
risks identified below.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures.
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. The Company's non-GAAP net
income and non-GAAP EBITDA results exclude (as applicable) business
development and integration expenses, amortization expense,
inventory basis step-up expense, loss on foreign currency
revaluation, stock-based compensation expense, and corporate
rebranding expenses. The Company 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 acquisitions, or
non-cash expense related to amortization of previously acquired
tangible and intangible assets. The Company has excluded the
impact of changes in currency exchange from certain revenues to
evaluate 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.
Webcast and Conference Call Information
The Company
will hold a teleconference call and live webcast later today,
April 30, 2020 at 4:30 p.m. ET to discuss the results followed by a
question and answer session. To listen to the live
teleconference, please dial 201-689-8261. A replay of the
teleconference will be available through May
7, 2020 and can be accessed by calling (toll free)
877-660-6853 or 201-612-7415. The Conference ID for the
replay is 13702193.
The live webcast and replay can be accessed by going to the
Investor Relations section of the CryoLife website at
www.cryolife.com and selecting the heading Webcasts &
Presentations.
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 our
beliefs that our business is well suited to weather the
impact of the COVID-19 pandemic given the nature of the
procedures in which our products are used; that we are funding
R&D programs for products that could deliver revenue in 2021
and 2022, including our U.S. PerClot PMA, BioGlue China, and PROACT
Mitral; that the renegotiation of our Credit Facility covenant will
give us greater financial flexibility, if necessary; and that we
expect 2021 to be a strong year for CryoLife. 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. 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.
CryoLife, Inc. and
Subsidiaries Financial Highlights (In
thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
|
2020
|
|
|
2019
|
Revenues:
|
|
|
|
|
|
Products
|
$
|
46,420
|
|
$
|
48,401
|
Preservation
services
|
|
20,009
|
|
|
19,104
|
Total
revenues
|
|
66,429
|
|
|
67,505
|
|
|
|
|
|
|
Cost of products
and preservation services:
|
|
|
|
|
|
Products
|
|
13,040
|
|
|
13,826
|
Preservation
services
|
|
9,218
|
|
|
9,406
|
Total cost of
products and preservation services
|
|
22,258
|
|
|
23,232
|
|
|
|
|
|
|
Gross
margin
|
|
44,171
|
|
|
44,273
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
General,
administrative, and marketing
|
|
39,002
|
|
|
36,520
|
Research and
development
|
|
6,356
|
|
|
5,548
|
Total operating
expenses
|
|
45,358
|
|
|
42,068
|
|
|
|
|
|
|
Operating (loss)
income
|
|
(1,187)
|
|
|
2,205
|
|
|
|
|
|
|
Interest
expense
|
|
3,388
|
|
|
3,894
|
Interest
income
|
|
(102)
|
|
|
(116)
|
Other expense,
net
|
|
3,662
|
|
|
77
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(8,135)
|
|
|
(1,650)
|
Income tax
benefit
|
|
(1,470)
|
|
|
(1,353)
|
|
|
|
|
|
|
Net
loss
|
$
|
(6,665)
|
|
$
|
(297)
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
Basic
|
$
|
(0.18)
|
|
$
|
(0.01)
|
Diluted
|
$
|
(0.18)
|
|
$
|
(0.01)
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
Basic
|
|
37,390
|
|
|
36,778
|
Diluted
|
|
37,390
|
|
|
36,778
|
|
|
|
|
|
|
Net
loss
|
$
|
(6,665)
|
|
$
|
(297)
|
Other
comprehensive loss:
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(4,463)
|
|
|
(3,781)
|
Comprehensive
loss
|
$
|
(11,128)
|
|
$
|
(4,078)
|
|
|
|
|
|
|
CryoLife, Inc. and
Subsidiaries Financial Highlights (In
thousands)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Products:
|
|
|
|
|
|
BioGlue
|
$
|
16,737
|
|
$
|
17,222
|
JOTEC
|
|
15,268
|
|
|
15,954
|
On-X
|
|
12,202
|
|
|
11,731
|
PhotoFix
|
|
1,042
|
|
|
730
|
PerClot
|
|
860
|
|
|
1,050
|
NEXUS
|
|
200
|
|
|
--
|
CardioGenesis cardiac
laser therapy
|
|
111
|
|
|
1,714
|
Total products
|
|
46,420
|
|
|
48,401
|
|
|
|
|
|
|
Preservation
services:
|
|
|
|
|
|
Cardiac
tissue
|
$
|
10,033
|
|
$
|
8,930
|
Vascular
tissue
|
|
9,976
|
|
|
10,174
|
Total preservation
services
|
|
20,009
|
|
|
19,104
|
|
|
|
|
|
|
Total
revenues
|
$
|
66,429
|
|
$
|
67,505
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
U.S.
|
$
|
36,447
|
|
$
|
37,325
|
International
|
|
29,982
|
|
|
30,180
|
Total
revenues
|
$
|
66,429
|
|
$
|
67,505
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2020
|
|
2019
|
Cash, cash
equivalents, and restricted securities
|
$
|
63,877
|
|
$
|
34,294
|
Total current
assets
|
|
214,082
|
|
|
187,390
|
Total
assets
|
|
621,033
|
|
|
605,654
|
Total current
liabilities
|
|
43,685
|
|
|
45,195
|
Total
liabilities
|
|
344,424
|
|
|
319,958
|
Shareholders'
equity
|
|
276,609
|
|
|
285,696
|
CryoLife, Inc. and
Subsidiaries Reconciliation of GAAP to
Non-GAAP Net Loss and Diluted (Loss) Income Per Common
Share (In thousands, except per share
data)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
March
31,
|
|
|
2020
|
|
|
2019
|
GAAP:
|
|
|
|
|
|
Loss before income
taxes
|
$
|
(8,135)
|
|
$
|
(1,650)
|
Income tax
benefit
|
|
(1,470)
|
|
|
(1,353)
|
Net
loss
|
$
|
(6,665)
|
|
$
|
(297)
|
|
|
|
|
|
|
Diluted loss per
common share:
|
$
|
(0.18)
|
|
$
|
(0.01)
|
|
|
|
|
|
|
Reconciliation
of loss before income taxes,
|
|
|
|
|
|
GAAP to adjusted
net (loss) income, non-GAAP
|
|
|
|
|
|
Loss before income
taxes, GAAP
|
$
|
(8,135)
|
|
$
|
(1,650)
|
Adjustments:
|
|
|
|
|
|
Amortization
expense
|
|
3,033
|
|
|
2,579
|
Business development
and integration expenses
|
|
823
|
|
|
1,109
|
Corporate
rebranding
|
|
321
|
|
|
--
|
Adjusted (loss)
income before income taxes,
|
|
|
|
|
|
non-GAAP
|
|
(3,958)
|
|
|
2,038
|
Income tax expense
calculated at a
|
|
|
|
|
|
pro forma tax rate of
25%
|
|
(989)
|
|
|
510
|
Adjusted net (loss)
income, non-GAAP
|
$
|
(2,969)
|
|
$
|
1,528
|
|
|
|
|
|
|
Reconciliation
of diluted loss per common share, GAAP
|
|
|
|
|
|
to adjusted
diluted (loss) income per common share,
non-GAAP:
|
|
|
|
|
|
Diluted loss per
common share, GAAP:
|
$
|
(0.18)
|
|
$
|
(0.01)
|
Adjustments:
|
|
|
|
|
|
Amortization
expense
|
|
0.08
|
|
|
0.07
|
Business development
and integration expenses
|
|
0.02
|
|
|
0.03
|
Corporate
rebranding
|
|
0.01
|
|
|
--
|
Tax effect of non-GAAP
adjustments
|
|
(0.03)
|
|
|
(0.03)
|
Effect of 25% pro forma
tax rate
|
|
0.02
|
|
|
(0.02)
|
Adjusted diluted
(loss) income per common share,
|
|
|
|
|
|
non-GAAP:
|
$
|
(0.08)
|
|
$
|
0.04
|
|
|
|
|
|
|
Diluted
weighted-average common
|
|
|
|
|
|
shares
outstanding
|
|
37,390
|
|
|
37,711
|
CryoLife, Inc. and
Subsidiaries Reconciliation of GAAP to
Non-GAAP Revenues (In thousands, except per
share data)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Growth
Rate
|
Reconciliation
of total revenues, GAAP to
|
|
|
|
|
|
|
total revenues,
non-GAAP:
|
|
|
|
|
|
|
Total revenues,
GAAP
|
$
|
66,429
|
|
$
|
67,505
|
-2%
|
Impact of changes in
currency exchange
|
|
--
|
|
|
(629)
|
|
Total constant
currency revenues, non-GAAP
|
$
|
66,429
|
|
$
|
66,876
|
-1%
|
|
|
|
|
|
|
|
Reconciliation
of total revenues, GAAP to
|
|
|
|
|
|
|
total revenues,
non-GAAP:
|
|
|
|
|
|
|
Total revenues,
GAAP
|
$
|
66,429
|
|
$
|
67,505
|
-2%
|
Less CardioGenesis
cardiac laser therapy
|
|
(111)
|
|
|
(1,714)
|
|
Total GAAP revenues
excluding
CardioGenesis
|
|
66,318
|
|
|
65,791
|
1%
|
Impact of changes in
currency exchange
|
|
--
|
|
|
(629)
|
|
Total constant
currency revenues excluding
CardioGenesis, non-GAAP
|
$
|
66,318
|
|
$
|
65,162
|
2%
|
|
|
|
|
|
|
|
Reconciliation
of total BioGlue revenues, GAAP to
|
|
|
|
|
|
|
total BioGlue
revenues, non-GAAP:
|
|
|
|
|
|
|
Total BioGlue
revenues, GAAP
|
$
|
16,737
|
|
$
|
17,222
|
-3%
|
Impact of changes in
currency exchange
|
|
--
|
|
|
(76)
|
|
Total constant
currency BioGlue revenues, non-GAAP
|
$
|
16,737
|
|
$
|
17,146
|
-2%
|
|
|
|
|
|
|
|
Reconciliation
of total On-X revenues, GAAP to
|
|
|
|
|
|
|
total On-X
revenues, non-GAAP:
|
|
|
|
|
|
|
Total On-X revenues,
GAAP
|
$
|
12,202
|
|
$
|
11,731
|
4%
|
Impact of changes in
currency exchange
|
|
--
|
|
|
(17)
|
|
Total constant
currency On-X revenues, non-GAAP
|
$
|
12,202
|
|
$
|
11,714
|
4%
|
|
|
|
|
|
|
|
Reconciliation
of total JOTEC revenues, GAAP, to
|
|
|
|
|
|
|
total JOTEC
revenues, non-GAAP:
|
|
|
|
|
|
|
Total JOTEC revenues,
GAAP
|
$
|
15,268
|
|
$
|
15,954
|
-4%
|
Impact of changes in
currency exchange
|
|
--
|
|
|
(534)
|
|
Total constant
currency JOTEC revenues, non-GAAP
|
$
|
15,268
|
|
$
|
15,420
|
-1%
|
CryoLife, Inc. and
Subsidiaries Reconciliation of GAAP to
Non-GAAP Adjusted EBITDA (In thousands, except
per share data)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Reconciliation
of net loss, GAAP to
|
|
|
|
|
|
adjusted EBITDA,
non-GAAP:
|
|
|
|
|
|
Net loss,
GAAP
|
$
|
(6,665)
|
|
$
|
(297)
|
Adjustments:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
4,898
|
|
|
4,350
|
Loss on foreign
currency revaluation
|
|
3,663
|
|
|
74
|
Interest
expense
|
|
3,388
|
|
|
3,894
|
Stock-based
compensation expense
|
|
2,564
|
|
|
1,853
|
Business development
and integration expenses
|
|
823
|
|
|
1,109
|
Corporate
rebranding
|
|
321
|
|
|
--
|
Interest
income
|
|
(102)
|
|
|
(116)
|
Income tax
benefit
|
|
(1,470)
|
|
|
(1,353)
|
Adjusted EBITDA,
non-GAAP
|
$
|
7,420
|
|
$
|
9,514
|
Contacts:
|
|
|
|
CryoLife
D. Ashley
Lee
Executive Vice
President, Chief Financial Officer and Chief
Operating
Officer
Phone:
770-419-3355
|
Gilmartin Group
LLC
Greg Chodaczek / Lynn
Lewis
Phone:
347-620-7010
investors@cryolife.com
|
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SOURCE CryoLife, Inc.