CryoLife Provides Business Update in Response to COVID-19 Pandemic
"We remain fully committed to supporting our employees while maintaining the demand and support for our products for customers and patients worldwide," commented
- Health and Safety: To reduce the risk to
CryoLife'semployees and their families to potential exposure to COVID-19, CryoLifehas 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,
CryoLifeis 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,
CryoLifehas 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, CryoLifeborrowed the entire available amount under its $30 millionrevolving 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 CryoLifehas over $60 millionin cash and cash equivalents. Terms of CryoLife'scredit facility are described in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commissionon December 1, 2017.
Update to Financial Guidance
Headquartered in suburban
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
Executive Vice President, Chief Financial Officer and
View original content to download multimedia:http://www.prnewswire.com/news-releases/cryolife-provides-business-update-in-response-to-covid-19-pandemic-301033623.html