CryoLife Reports Third Quarter 2020 Financial Results
Third Quarter and Recent Business Highlights:
- Achieved total revenues of
$65.1 million in the third quarter 2020 versus$67.9 million in the third quarter of 2019 - Total revenues decreased 4% on a GAAP and non-GAAP constant currency basis versus third quarter 2019
- Excluding TMR, third quarter revenues decreased 2% on a GAAP and non-GAAP constant currency basis versus third quarter 2019
- Achieved net loss of
($2.9) million , or ($0.08 ) per share - Achieved non-GAAP net income of
$4.9 million , or$0.13 per share - Completed acquisition of
Ascyrus Medical LLC
"Our performance in the third quarter further validated our belief that the majority of products in our portfolio are used in procedures that cannot be postponed or delayed for long. We believe our business is weathering the pandemic well and we continue to progress on our strategic initiatives," commented
Third Quarter Financial Results
Total revenues for the third quarter of 2020 were
Net loss for the third quarter of 2020 was
2020 Financial Outlook
Due to continued uncertainties resulting from the COVID-19 pandemic, the Company is not issuing 2020 financial guidance at this time.
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
Webcast and Conference Call Information
The Company will hold a teleconference call and live webcast later today,
The live webcast and replay can be accessed by going to the Investor Relations section of the
About
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 our beliefs that the majority of products in our portfolio are used in procedures that cannot be postponed or delayed for long; our business is weathering the pandemic well; we continue to progress on our strategic initiatives; certain of our products will deliver revenue in 2021 and 2022; and, with the acquisition of
Financial Highlights (In thousands, except per share data) |
|||||||||||
(Unaudited) |
(Unaudited) |
||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
|
|
||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||
(Unaudited) |
(Unaudited) |
||||||||||
Revenues: |
|||||||||||
Products |
$ |
45,109 |
$ |
47,484 |
$ |
128,797 |
$ |
147,053 |
|||
Preservation services |
20,022 |
20,397 |
56,534 |
59,472 |
|||||||
Total revenues |
65,131 |
67,881 |
185,331 |
206,525 |
|||||||
Cost of products and preservation services: |
|||||||||||
Products |
12,998 |
12,706 |
36,078 |
41,021 |
|||||||
Preservation services |
9,001 |
9,953 |
26,060 |
29,043 |
|||||||
Total cost of products and preservation services |
21,999 |
22,659 |
62,138 |
70,064 |
|||||||
Gross margin |
43,132 |
45,222 |
123,193 |
136,461 |
|||||||
Operating expenses: |
|||||||||||
General, administrative, and marketing |
33,743 |
34,259 |
105,033 |
105,402 |
|||||||
Research and development |
5,755 |
6,259 |
17,633 |
17,648 |
|||||||
Total operating expenses |
39,498 |
40,518 |
122,666 |
123,050 |
|||||||
Operating income |
3,634 |
4,704 |
527 |
13,411 |
|||||||
Interest expense |
4,940 |
3,555 |
11,980 |
11,260 |
|||||||
Interest income |
(13) |
(259) |
(181) |
(608) |
|||||||
Other expense, net |
2,888 |
2,400 |
5,810 |
2,662 |
|||||||
(Loss) income before income taxes |
(4,181) |
(992) |
(17,082) |
97 |
|||||||
Income tax benefit |
(1,311) |
(858) |
(3,858) |
(2,304) |
|||||||
Net (loss) income |
$ |
(2,870) |
$ |
(134) |
$ |
(13,224) |
$ |
2,401 |
|||
(Loss) income per common share: |
|||||||||||
Basic |
$ |
(0.08) |
$ |
(0.00) |
$ |
(0.35) |
$ |
0.06 |
|||
Diluted |
$ |
(0.08) |
$ |
(0.00) |
$ |
(0.35) |
$ |
0.06 |
|||
Weighted-average common shares outstanding: |
|||||||||||
Basic |
37,912 |
37,255 |
37,608 |
37,065 |
|||||||
Diluted |
37,912 |
37,255 |
37,608 |
37,850 |
|||||||
Net (loss) income |
$ |
(2,870) |
$ |
(134) |
$ |
(13,224) |
$ |
2,401 |
|||
Other comprehensive income (loss): |
|||||||||||
Foreign currency translation adjustments |
8,698 |
(8,017) |
8,669 |
(8,803) |
|||||||
Comprehensive income (loss) |
$ |
5,828 |
$ |
(8,151) |
$ |
(4,555) |
$ |
(6,402) |
Financial Highlights (In thousands) |
|||||||||||
(Unaudited) |
(Unaudited) |
||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
|
|
||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||
Products: |
|||||||||||
BioGlue |
$ |
15,811 |
$ |
15,679 |
$ |
44,985 |
$ |
50,834 |
|||
JOTEC |
15,290 |
15,774 |
43,932 |
48,936 |
|||||||
On-X |
12,067 |
12,610 |
34,385 |
36,751 |
|||||||
PhotoFix |
1,134 |
1,087 |
3,056 |
2,752 |
|||||||
PerClot |
724 |
980 |
2,081 |
2,814 |
|||||||
CardioGenesis cardiac laser therapy |
83 |
1,354 |
358 |
4,966 |
|||||||
Total products |
45,109 |
47,484 |
128,797 |
147,053 |
|||||||
Preservation services: |
|||||||||||
Cardiac tissue |
$ |
10,679 |
$ |
11,304 |
28,758 |
30,734 |
|||||
Vascular tissue |
9,285 |
9,093 |
27,657 |
28,738 |
|||||||
NeoPatch |
58 |
-- |
119 |
-- |
|||||||
Total preservation services |
20,022 |
20,397 |
56,534 |
59,472 |
|||||||
Total revenues |
$ |
65,131 |
$ |
67,881 |
$ |
185,331 |
$ |
206,525 |
|||
Revenues: |
|||||||||||
|
$ |
36,332 |
$ |
37,981 |
$ |
103,171 |
$ |
113,548 |
|||
International |
28,799 |
29,900 |
82,160 |
92,977 |
|||||||
Total revenues |
$ |
65,131 |
$ |
67,881 |
$ |
185,331 |
$ |
206,525 |
(Unaudited) |
|||||
|
|
||||
2020 |
2019 |
||||
Cash, cash equivalents, and restricted securities |
$ |
64,635 |
$ |
34,294 |
|
Total current assets |
233,699 |
187,390 |
|||
Total assets |
782,200 |
605,654 |
|||
Total current liabilities |
53,667 |
45,195 |
|||
Total liabilities |
456,434 |
319,958 |
|||
Shareholders' equity |
325,766 |
285,696 |
Reconciliation of GAAP to Non-GAAP Net (Loss) Income and Diluted (Loss) Income Per Common Share (In thousands, except per share data) |
|||||||||||
(Unaudited) |
(Unaudited) |
||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
|
|
||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||
GAAP: |
|||||||||||
(Loss) income before income taxes |
$ |
(4,181) |
$ |
(992) |
$ |
(17,082) |
$ |
97 |
|||
Income tax benefit |
(1,311) |
(858) |
(3,858) |
(2,304) |
|||||||
Net (loss) income |
$ |
(2,870) |
$ |
(134) |
$ |
(13,224) |
$ |
2,401 |
|||
Diluted (loss) income per common share |
$ |
(0.08) |
$ |
(0.00) |
$ |
(0.35) |
$ |
0.06 |
|||
Diluted weighted-average common shares outstanding |
37,912 |
37,255 |
37,608 |
37,850 |
|||||||
Reconciliation of (loss) income before income taxes, GAAP to adjusted net income, non-GAAP |
|||||||||||
(Loss) income before income taxes, GAAP: |
$ |
(4,181) |
$ |
(992) |
$ |
(17,082) |
$ |
97 |
|||
Adjustments: |
|||||||||||
Amortization expense |
3,397 |
2,660 |
9,430 |
7,796 |
|||||||
Business development, integration, and severance expense |
6,005 |
1,250 |
7,481 |
2,562 |
|||||||
Non-cash interest expense |
1,371 |
407 |
2,261 |
1,225 |
|||||||
Corporate rebranding expense |
-- |
-- |
321 |
-- |
|||||||
Adjusted income before income taxes, non-GAAP |
6,592 |
3,325 |
2,411 |
11,680 |
|||||||
Income tax benefit calculated at a |
|||||||||||
pro forma tax rate of 25% |
1,648 |
831 |
603 |
2,920 |
|||||||
Adjusted net income, non-GAAP |
$ |
4,944 |
$ |
2,494 |
$ |
1,808 |
$ |
8,760 |
|||
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: |
$ |
(0.08) |
$ |
(0.00) |
$ |
(0.35) |
$ |
0.06 |
|||
Adjustments: |
|||||||||||
Amortization expense |
0.09 |
0.07 |
0.25 |
0.20 |
|||||||
Business development, integration, and severance expense |
0.16 |
0.03 |
0.20 |
0.06 |
|||||||
Non-cash interest expense |
0.04 |
0.01 |
0.06 |
0.03 |
|||||||
Corporate rebranding expense |
-- |
-- |
0.01 |
-- |
|||||||
Tax effect of non-GAAP adjustments |
(0.07) |
(0.02) |
(0.13) |
(0.06) |
|||||||
Effect of 25% pro forma tax rate |
(0.01) |
(0.02) |
0.01 |
(0.06) |
|||||||
Adjusted diluted income per common share, non-GAAP |
$ |
0.13 |
$ |
0.07 |
$ |
0.05 |
$ |
0.23 |
|||
Diluted weighted-average common shares outstanding |
38,357 |
37,940 |
38,151 |
37,850 |
Reconciliation of GAAP to Non-GAAP Revenues and Adjusted EBITDA (In thousands, except per share data) |
|||||||||||||
(Unaudited) |
(Unaudited) |
||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||
|
|
||||||||||||
2020 |
2019 |
Growth |
2020 |
2019 |
Growth |
||||||||
Reconciliation of total revenues, GAAP to total revenues, non-GAAP: |
|||||||||||||
Total revenues, GAAP |
$ |
65,131 |
$ |
67,881 |
-4% |
$ |
185,331 |
$ |
206,525 |
-10% |
|||
Impact of changes in currency exchange |
-- |
4 |
-- |
(1,719) |
|||||||||
Total constant currency revenues, non-GAAP |
$ |
65,131 |
$ |
67,885 |
-4% |
$ |
185,331 |
$ |
204,806 |
-10% |
|||
Reconciliation of total revenues, GAAP to total revenues, non-GAAP: |
|||||||||||||
Total revenues, GAAP |
$ |
65,131 |
$ |
67,881 |
-4% |
$ |
185,331 |
$ |
206,525 |
-10% |
|||
Less CardioGenesis cardiac laser therapy |
(83) |
(1,354) |
(358) |
(4,966) |
|||||||||
Total GAAP revenues excluding CardioGenesis |
65,048 |
66,527 |
-2% |
184,973 |
201,559 |
-8% |
|||||||
Impact of changes in currency exchange |
-- |
4 |
-- |
(1,719) |
|||||||||
Total constant currency revenues excluding CardioGenesis, non-GAAP |
$ |
65,048 |
$ |
66,531 |
-2% |
$ |
184,973 |
$ |
199,840 |
-7% |
|||
(Unaudited) |
(Unaudited) |
|||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||
|
|
|||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||
Reconciliation of net (loss) income, GAAP to adjusted EBITDA, non-GAAP: |
||||||||||||
Net (loss) income, GAAP |
$ |
(2,870) |
$ |
(134) |
$ |
(13,224) |
$ |
2,401 |
||||
Adjustments: |
||||||||||||
Depreciation and amortization expense |
5,176 |
4,526 |
14,818 |
13,257 |
||||||||
Interest expense |
4,940 |
3,555 |
11,980 |
11,260 |
||||||||
Business development, integration, and severance expense |
6,005 |
1,250 |
7,481 |
2,562 |
||||||||
Stock-based compensation expense |
2,358 |
2,462 |
7,432 |
6,581 |
||||||||
(Income) loss on foreign currency revaluation |
(2,073) |
2,419 |
846 |
2,669 |
||||||||
Corporate rebranding expense |
-- |
-- |
321 |
-- |
||||||||
Income tax benefit |
(1,311) |
(858) |
(3,858) |
(2,304) |
||||||||
Interest income |
(13) |
(259) |
(181) |
(608) |
||||||||
Adjusted EBITDA, non-GAAP |
$ |
12,212 |
$ |
12,961 |
$ |
25,615 |
$ |
35,818 |
Contacts: |
|
Executive Vice President, Chief Financial Officer and Chief Operating Officer Phone: 770-419-3355 |
Phone: 631-807-1986 |
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