CryoLife Reports Record Quarterly Revenues of $28.2 Million
Net income for the third quarter of 2009 was
Revenues for the first nine months of 2009 increased 4 percent to a record
Net income for the first nine months of 2009 was
Preservation service revenues for the third quarter of 2009 increased 6 percent to
Preservation service revenues for the first nine months of 2009 increased 3 percent to
Revenues from the distribution of CryoValve® SG pulmonary heart valves and CryoPatch® SG pulmonary cardiac patches increased to
Product revenues, which consists primarily of sales of BioGlue® Surgical Adhesive and HemoStase(TM), were
Product revenues were
Total preservation services and product gross margins were 60 percent and 64 percent for the third quarters of 2009 and 2008, respectively. Total preservation services and product gross margins were 62 percent and 64 percent for the first nine months of 2009 and 2008, respectively.
Preservation services gross margins were 41 percent and 46 percent for the third quarters of 2009 and 2008, respectively. Preservation services gross margins were 43 percent and 46 percent for the first nine months of 2009 and 2008, respectively.
Product gross margins were 82 percent and 83 percent for the third quarters of 2009 and 2008, respectively. Product gross margins were 84 percent for each of the first nine months of 2009 and 2008.
General, administrative, and marketing expenses for the third quarter of 2009 were
General, administrative, and marketing expenses for the first nine months of 2009 and 2008 included benefits of
Research and development expenses were
As of
"We saw several key milestones during the third quarter of 2009, including the 510(k) clearance for CryoPatch SG, the Humanitarian Use Device designation for CryoValve SG aortic heart valve, and the CE Mark and first human implants of BioFoam," stated
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 near the lower end of its range of guidance of between
The Company expects general, administrative, and marketing expenses to be near the lower end of its previous range of guidance 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.
2010 Financial Guidance
The Company plans to issue its initial 2010 financial guidance on either
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 development of our SynerGraft and BioGlue and related product platforms 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, the CryoPatch SG 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
Media Contact
Executive Vice President, Chief Financial Officer and
Chief Operating Officer
Phone: 770-419-3355
CRYOLIFE, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
Revenues:
Preservation services $15,033 $14,188 $42,672 $41,337
Products 12,806 12,239 39,669 37,499
Other 380 377 729 691
--- --- --- ---
Total revenues 28,219 26,804 83,070 79,527
------ ------ ------ ------
Cost of preservation services
and products:
Preservation services 8,903 7,615 24,421 22,382
Products 2,275 2,028 6,478 5,860
----- ----- ----- -----
Total cost of preservation
services and products 11,178 9,643 30,899 28,242
------ ----- ------ ------
Gross margin 17,041 17,161 52,171 51,285
------ ------ ------ ------
Operating expenses:
General, administrative, and
marketing 12,386 12,072 37,440 36,497
Research and development 1,461 1,186 3,854 3,938
----- ----- ----- -----
Total operating expenses 13,847 13,258 41,294 40,435
------ ------ ------ ------
Operating income 3,194 3,903 10,877 10,850
----- ----- ------ ------
Interest expense 58 62 168 201
Interest income (10) (92) (73) (285)
Other expense, net 8 142 100 115
- --- --- ---
Income before income taxes 3,138 3,791 10,682 10,819
Income tax expense 1,276 235 4,369 610
----- --- ----- ---
Net income $1,862 $3,556 $6,313 $10,209
====== ====== ====== =======
Income per common share:
Basic $0.07 $0.13 $0.22 $0.37
===== ===== ===== =====
Diluted $0.07 $0.12 $0.22 $0.36
===== ===== ===== =====
Weighted average common shares
outstanding:
Basic 28,145 27,899 28,074 27,741
Diluted 28,382 28,703 28,261 28,384
CRYOLIFE, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
Preservation services:
Cardiac tissue $7,315 $7,034 $19,377 $19,620
Vascular tissue 7,699 7,116 23,147 21,055
Orthopaedic tissue 19 38 148 662
-- -- --- ---
Total preservation services 15,033 14,188 42,672 41,337
------ ------ ------ ------
Products:
BioGlue and related products 11,180 11,623 35,323 36,482
HemoStase 1,562 549 4,139 726
Other medical devices 64 67 207 291
-- -- --- ---
Total products 12,806 12,239 39,669 37,499
------ ------ ------ ------
Other 380 377 729 691
--- --- --- ---
Total revenues $28,219 $26,804 $83,070 $79,527
======= ======= ======= =======
Revenues:
U.S. $23,941 $22,916 $70,264 $67,750
International 4,278 3,888 12,806 11,777
----- ----- ------ ------
Total revenues $28,219 $26,804 $83,070 $79,527
======= ======= ======= =======
September 30, December 31,
2009 2008
---- ----
(Unaudited)
Cash and cash equivalents and restricted
securities $27,046 $17,763
Receivables, net 15,293 13,999
Deferred preservation costs 36,737 34,913
Inventories 6,462 7,077
Restricted money market funds, long-term 5,000 5,000
Total assets 133,299 125,995
Shareholders' equity 108,260 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 Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Income before income taxes $3,138 $3,791 $10,682 $10,819
Income tax expense 1,276 235 4,369 610
----- --- ----- ---
Net income $1,862 $3,556 $6,313 $10,209
====== ====== ====== =======
Income per common share:
Basic $0.07 $0.13 $0.22 $0.37
===== ===== ===== =====
Diluted $0.07 $0.12 $0.22 $0.36
===== ===== ===== =====
Weighted average common shares
outstanding:
Basic 28,145 27,899 28,074 27,741
Diluted 28,382 28,703 28,261 28,384
Net income $3,556 $10,209
Non-GAAP adjustments to net income:
Tax calculated at 41% of income
before income taxes 1,554 4,436
Less income tax expense, as reported (235) (610)
----- -----
Additional income tax expense, non-GAAP 1,319 3,826
----- -----
Net income, non-GAAP $2,237 $6,383
====== ======
Income per common share, non-GAAP:
Basic $0.08 $0.23
===== =====
Diluted $0.08 $0.22
===== =====
Weighted average common shares
outstanding:
Basic 27,899 27,741
Diluted 28,703 28,384
For additional information about the company, visit
SOURCE
D. Ashley Lee, Executive Vice President, Chief Financial Officer and Chief Operating Officer, +1-770-419-3355