CryoLife, Inc. Reports Record Revenues for Second Quarter; Increasing Interest in New Products
Revenues for the second quarter of 1999 were $17.4 million, an
increase of 12% over the previous year's second quarter record of
$15.6 million. Net income for the quarter ended June 30, 1999, was
$1.7 million compared with $2.0 million in the second quarter of 1998.
Earnings per common share for the second quarter of 1999 were $0.14
basic and diluted on 12.3 and 12.5 million shares, respectively,
versus $0.16 basic and diluted on 12.7 and 13.0 million shares,
respectively, in the same period in 1998. Earnings for the second
quarter of 1998 were favorably affected by the divestiture of the
vascular port product line for the total price of $570,000. If
adjusted for this amount, the per share earnings from operations for
the second quarter of 1998 and 1999 would be comparable.
Revenues for the first half of 1999 were $33.7 million, an
increase of 12% as compared with revenues of $30.1 million in the
six-month period ended June 30, 1998. Net income for the six months
ended June 30, 1999, was $3.1 million compared with $3.2 million in
the first half of 1998. Earnings per common share for the six months
ended June 30, 1999, were $0.25 basic and diluted on 12.4 and 12.6
million shares, respectively, versus $0.29 basic and $0.28 diluted on
11.2 and 11.6 million shares, respectively, in the same period in
1998. These amounts are not adjusted for the sale of the vascular port
product line.
Steven G. Anderson, President and Chief Executive Officer of
CryoLife, said, "We are pleased that second quarter 1999 allograft
heart valve preservation revenues increased 15% over allograft heart
valve revenues in the first quarter of the year. Also, our vascular
tissue preservation revenues and orthopaedic tissue preservation
revenues increased substantially by 26% and 31%, respectively, over
the second quarter of last year. In addition, revenues from foreign
sales of BioGlue increased 90% to $409,000 in the second quarter vs.
$215,000 in the same period last year. We believe our BioGlue products
hold great promise for the Company in the surgical adhesive market,
which is estimated to have worldwide potential in excess of $9
billion. For the six months ended in June 1999, BioGlue revenues
increased 208% to $663,000 from $215,000 for the six-month period in
1998."
Mr. Anderson added, "We are pleased with our strong revenue
gains, but even more pleased about the success of our BioGlue surgical
adhesive in international markets. On May 6, 1999, we filed for a
Humanitarian Device Exemption (HDE) from the FDA for the use of our
BioGlue surgical adhesive in acute aortic dissections in the U.S. We
are awaiting news from the FDA regarding the status of this
application."
Founded in 1984, CryoLife, Inc. is the leader in the development
and commercialization of living human tissue implantable devices for
use in cardiovascular, vascular and orthopaedic surgeries throughout
the United States and Canada. The Company's BioGlue(R) surgical
adhesive, CE marked in the European Union for use in vascular and
pulmonary sealing and repair, is distributed throughout Europe. The
Company also manufactures CryoLife-O'Brien(R) and CryoLife-Ross(TM)
stentless porcine heart valves which are distributed within the
European Community.
Statements made in this press release which look forward in time
involve risks and uncertainties and are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. Such risks and uncertainties include the risk that the Company
may not be able to continue to diversify its product and service mix,
or even if successful, that the Company may continue to be dependent
on one or more lines of business, that BioGlue surgical adhesive or
the SynerGraft technology will not perform in humans as it has in
animals or that unforeseen complications may arise subsequent to the
application of BioGlue surgical adhesive or the implementation of a
SynerGraft device, the possibility that the application of BioGlue
surgical adhesive to coronary bypasses in humans could involve
unanticipated costs and greater skill levels or more invasive
procedures than currently anticipated, changes in economic cycles,
competition from other companies, changes in laws and governmental
regulations applicable to the Company and other risk factors detailed
in the Company's Securities and Exchange Commission filings, including
the Company's annual report on Form 10-K for the year ended December
31, 1998.
The Company web site is: http://www.cryolife.com.
CRYOLIFE, INC.
Unaudited Financial Highlights
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
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1999 1998 1999 1998
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Revenues $17,395 $15,554 $33,720 $30,115
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Costs and expenses:
Cryopreservation and products 8,235 6,345 15,611 11,826
General, administrative
and marketing 5,937 5,841 12,102 11,707
Research and development 883 1,256 1,957 2,267
Interest expense 89 118 208 509
Interest income (367) (399) (792) (399)
Other 40 (708) (4) (772)
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Total costs and expenses 14,817 12,453 29,082 25,138
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Income before income taxes 2,578 3,101 4,638 4,977
Income tax expense (benefit) 851 1,053 1,531 1,757
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Net income $1,727 $2,048 $3,107 $3,220
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Earnings per share:
Basic $0.14 $0.16 $0.25 $0.29
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Diluted $0.14 $0.16 $0.25 $0.28
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Weighted average shares
outstanding:
Basic 12,344 12,709 12,422 11,219
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Diluted 12,527 13,033 12,606 11,577
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CONTACT: CryoLife Inc., Atlanta
Edwin B. Cordell Jr., 800/438-8285