CryoLife Reports Record Quarterly Revenues of $28.2 Million
Company posts fully diluted earnings per share of
Revenues increased 6 percent sequentially for second quarter of 2009
compared to first quarter of 2009
Operating income for each of the second quarters of 2009 and 2008 was
Net income for the second quarter of 2009 was
Revenues for the first six months of 2009 increased 4 percent to
Operating income increased 11 percent for the first six months of 2009 to
Net income for the first six months of 2009 was
Tissue processing revenues for the second quarter of 2009 increased 3
percent to
Tissue processing revenues for the first six months of 2009 increased 2
percent to
Revenues from the distribution of CryoValve SG pulmonary heart valves
increased to
BioGlue Surgical Adhesive revenues were
U.S. BioGlue revenues were
Other medical device revenues for the second quarter of 2009 were
Total tissue processing and product gross margins were 63 percent and 66 percent for the second quarters of 2009 and 2008, respectively. Total tissue processing and product gross margins were 64 percent and 65 percent for the first six months of 2009 and 2008, respectively.
Tissue processing gross margins were 43 percent and 46 percent for the second quarters of 2009 and 2008, respectively. Tissue processing gross margins were 44 percent and 46 percent for the first six months of 2009 and 2008, respectively.
General, administrative, and marketing expenses for the second quarter of
2009 were
General, administrative, and marketing expenses for the second quarters of
2009 and 2008 included benefits of
Research and development expenses were
As of
"
2009 Financial Guidance
The Company is updating its guidance for the full year of 2009. The
Company expects total revenues for the full year of 2009 to be between
The Company expects general, administrative, and marketing expenses of
between
The Company expects operating income to increase for the full year of 2009 compared to 2008. However, the Company expects its effective income tax rate to be approximately 41 percent in 2009 compared to a tax benefit in 2008. As a result, earnings per share in 2009 will be lower than in 2008, when the Company reversed a significant portion of the valuation allowance on its deferred tax assets, which resulted in the recognition of significant income tax benefits.
Webcast and Conference Call Information
The Company will hold a teleconference call and live webcast today at
To listen to the live teleconference, please dial 201-689-8261 a few
minutes prior to
The live webcast and replay can be accessed by going to the Investor Relations section of the CryoLife Web site at www.cryolife.com and selecting the heading Webcasts & Presentations.
About
Founded in 1984,
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. These statements include those regarding anticipated 2009
performance and our growth prospects and statements regarding the expected
impact of our net operating loss carryforwards on our cash outlays for tax
obligations. These future events may not occur as and when expected, if at
all, and, together with our business, are subject to various risks and
uncertainties. These risks and uncertainties include that we are
significantly dependent on revenues from BioGlue and there are a variety of
risks affecting BioGlue, CryoValve SG pulmonary heart valves and other
SynerGraft processed tissues and products may not be accepted by the
marketplace, the CryoValve SG pulmonary heart valve has a one year shelf life,
we are dependent on the availability of sufficient quantities of tissue from
human donors, the CryoValve SG pulmonary heart valve post-clearance study
requested by the FDA may not provide the expected positive results, our
products and tissues we process and preserve have allegedly caused and may in
the future cause injury to patients, and we have been and may be exposed to
tissue processing and product liability claims and additional regulatory
scrutiny as a result, the possibility that the FDA could impose additional
restrictions on the Company's operations, issue a 483, or warning letter, or
require a recall, or prevent the Company from processing and distributing
tissues or manufacturing and distributing other products, our failure to
adequately comply with government regulations could result in loss of revenues
and customers as well as additional compliance expense, our ability to borrow
under our credit facility may be limited, the credit facility limits our
ability to pursue significant acquisitions, the financial and credit liquidity
crisis may adversely affect our ability to borrow money or raise capital, the
current and future economic crisis may adversely affect our business and
financial condition, there are limitations on our use of net operating loss
carry-forwards that could result in our inability to use them fully or at all,
adverse regulatory action outside of the U.S. could affect our business,
physicians have been and may be reluctant to implant or use our preserved
tissues or products, our existing insurance policies may not be sufficient to
cover our actual claims liability, current economic conditions may impact
demand for our tissues and products, intense competition may affect our
ability to operate profitably, we may be unable to obtain adequate insurance
at a reasonable cost or at all, uncertainties related to patents and
protection of proprietary technology may adversely affect the value of our
intellectual property, uncertainties related to patents and protection of
proprietary technology for products distributed by us may adversely affect our
ability to distribute those products, we are dependent on key personnel, we
may not be successful in obtaining necessary clinical results and regulatory
approvals for products and services in development, and our new products and
services may not achieve market acceptance, we may be unable to effectively
leverage our existing sales force to sell HemoStase, the lawsuit we filed
against Medafor regarding our distribution agreement with Medafor may
adversely impact our relationship with Medafor and could hamper or prevent us
from distributing HemoStase, rapid technological change could cause our
services and products to become obsolete, extensive government regulation may
adversely affect our ability to develop and sell products and services, we
have experienced operating losses and negative cash flows in the past, and we
must continue to address the underlying causes in order to continue to operate
profitably and generate positive cash flows, investments in new technologies
and acquisitions of products or distribution rights may not be successful, if
we are not successful in expanding our business activities in international
markets, we will be unable to pursue one of our strategies for increasing our
revenues, continued deflation of foreign currencies relative to the U.S.
dollar could materially and adversely impact our business, and future
healthcare policies, healthcare reimbursement methods, and healthcare
reimbursement policies may affect the availability, amount, and timing of our
revenues, financial condition and profitability. These risks and
uncertainties include the risk factors detailed in our
CRYOLIFE, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
------------------ ----------------
(Unaudited) (Unaudited)
Revenues:
Preservation services $14,091 $13,725 $27,639 $27,149
Products 13,918 13,280 26,863 25,260
Other 154 150 349 314
------------------ ----------------
Total revenues 28,163 27,155 54,851 52,723
------------------ ----------------
Cost of preservation services
and products:
Preservation services 8,027 7,449 15,518 14,767
Products 2,241 1,840 4,203 3,832
------------------ ----------------
Total cost of preservation
services and products 10,268 9,289 19,721 18,599
------------------ ----------------
Gross margin 17,895 17,866 35,130 34,124
------------------ ----------------
Operating expenses:
General, administrative,
and marketing 12,306 12,358 25,054 24,425
Research and development 1,367 1,307 2,393 2,752
------------------ ----------------
Total operating expenses 13,673 13,665 27,447 27,177
------------------ ----------------
Operating income 4,222 4,201 7,683 6,947
------------------ ----------------
Interest expense 61 69 110 139
Interest income (20) (71) (63) (193)
Other (income) expense, net (60) 55 92 (27)
------------------ ----------------
Income before income taxes 4,241 4,148 7,544 7,028
Income tax expense 1,739 260 3,093 375
------------------ ----------------
Net income $ 2,502 $ 3,888 $ 4,451 $ 6,653
================== ================
Income per common share:
Basic $ 0.09 $ 0.14 $ 0.16 $ 0.24
================== ================
Diluted $ 0.09 $ 0.14 $ 0.16 $ 0.24
================== ================
Weighted average common
shares outstanding:
Basic 28,067 27,756 28,038 27,661
Diluted 28,174 28,381 28,204 28,211
CRYOLIFE, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
------------------ ----------------
(Unaudited) (Unaudited)
Preservation Services:
Cardiac tissue $ 6,470 $ 6,348 $12,062 $12,586
Vascular tissue 7,577 7,080 15,448 13,939
Orthopaedic tissue 44 297 129 624
------------------ ----------------
Total preservation services 14,091 13,725 27,639 27,149
------------------ ----------------
Products:
BioGlue 12,379 12,972 24,143 24,859
HemoStase 1,467 177 2,577 177
Other medical devices 72 131 143 224
------------------ ----------------
Total products 13,918 13,280 26,863 25,260
------------------ ----------------
Other 154 150 349 314
------------------ ----------------
Total revenues $28,163 $27,155 $54,851 $52,723
================== ================
Revenues:
U.S. $23,579 $22,834 $46,323 $44,834
International 4,584 4,321 8,528 7,889
------------------ ----------------
Total revenues $28,163 $27,155 $54,851 $52,723
================== ================
June 30, December 31,
2009 2008
----------- ------------
(Unaudited)
Cash and cash equivalents
and restricted securities $ 21,700 $ 17,763
Receivables, net 15,548 13,999
Deferred preservation costs 37,029 34,913
Inventories 6,621 7,077
Restricted money market funds, long-term 5,000 5,000
Total assets 130,849 125,995
Shareholders' equity 105,663 99,326
CRYOLIFE, INC.
Unaudited Reconciliation of
Non-GAAP Net Income and Income per Common Share
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
------------------ ----------------
Income before income taxes $ 4,241 $ 4,148 $ 7,544 $ 7,028
Income tax expense 1,739 260 3,093 375
------------------ ----------------
Net income $ 2,502 $ 3,888 $ 4,451 $ 6,653
================== ================
Income per common share:
Basic $ 0.09 $ 0.14 $ 0.16 $ 0.24
================== ================
Diluted $ 0.09 $ 0.14 $ 0.16 $ 0.24
================== ================
Weighted average common
shares outstanding:
Basic 28,067 27,756 28,038 27,661
Diluted 28,174 28,381 28,204 28,211
Net income $ 3,888 $ 6,653
Non-GAAP adjustments to net income:
Tax calculated at 41% of income
before income taxes $ 1,701 $2,881
Less income tax expense, as reported (260) (375)
---------- ----------
Additional income tax expense, non-GAAP 1,441 2,506
---------- ----------
Net income, non-GAAP $ 2,447 $ 4,147
========== ==========
Income per common share, non-GAAP:
Basic $ 0.09 $ 0.15
========== ==========
Diluted $ 0.09 $ 0.15
========== ==========
Weighted average common shares outstanding:
Basic 27,756 27,661
Diluted 28,381 28,211
For additional information about the company, visit CryoLife's Web site:
www.cryolife.com.
Media Contacts:
D. Ashley Lee Katie Brazel
Executive Vice President, Fleishman Hillard
Chief Financial Officer and Phone: 404-739-0150
Chief Operating Officer
Phone: 770-419-3355
SOURCE:
CONTACT:
Officer and Chief Operating Officer of
+1-770-419-3355, or
Web Site: http://www.cryolife.com
(CRY)