UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
|
FORM
8-K
|
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): November 1,
2007
_______________________
CRYOLIFE,
INC.
(Exact
name of registrant as specified in its charter)
_________________________
|
Florida
|
1-13165
|
59-2417093
|
|
(State
or Other Jurisdiction
of
Incorporation)
|
(Commission
File Number)
|
(IRS
Employer
Identification
No.)
|
1655
Roberts Boulevard, N.W., Kennesaw,
Georgia 30144
(Address
of principal executive office) (zip code)
Registrant's
telephone number, including area code: (770) 419-3355
_____________________________________________________________
(Former
name or former address, if changed since last report)
_________________________
Check
the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation
of
the registrant under any of the following provisions (see General Instruction
A.2. below):
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
Section
2 – Financial Information
Item
2.02 Results of Operations and Financial
Condition.
On
November 1, 2007, CryoLife, Inc.
(“CryoLife” or the “Company”) issued a press release announcing its financial
results for the third quarter ended September 30, 2007. CryoLife hereby
incorporates by reference herein the information set forth in its Press Release
dated November 1, 2007, a copy of which is attached hereto as Exhibit 99.1.
Except as otherwise provided in the press release, the press release speaks
only
as of the date of such press release, and it shall not create any implication
that the affairs of CryoLife have continued unchanged since such
date.
The
press release includes supplemental
non-GAAP financial measures, including non-GAAP net income, non-GAAP earnings
per share and non-GAAP general, administrative, and marketing
expenses. These supplemental measures exclude stock-based
compensation expense, changes in the value of a derivative related to the
Company’s retired preferred stock, charges related to certain post-employment
benefits and gains related to the settlement of an insurance
dispute. The additional non-GAAP financial information is not meant
to be considered in isolation or as a substitute for net income or earnings
per
share prepared in accordance with GAAP. The press release also
includes non-GAAP revenues, which have been adjusted from the comparable GAAP
revenue numbers to exclude revenues related to orthopedic tissue preservation
services.
CryoLife
believes that providing
adjusted non-GAAP net income and earnings per share provides investors with
greater transparency to the information used by CryoLife’s management in its
financial and operational decision-making and allows investors to see CryoLife’s
results through the eyes of management. CryoLife considers non-GAAP financial
measures that exclude the effect of stock-based compensation to be useful
metrics for management and investors, allowing CryoLife’s management and
investors to compare CryoLife’s recurring core business operating results over
multiple periods. Because of varying available valuation
methodologies, subjective assumptions and the variety of award types that
companies can use under FAS 123R, CryoLife’s management believes that providing
a non-GAAP financial measure that excludes stock-based compensation allows
investors to make meaningful comparisons between CryoLife’s recurring core
business operating results and those of other companies, as well as providing
CryoLife’s management with an important tool for financial and operational
decision making and for evaluating CryoLife’s own recurring core business
operating results over different periods of time.
In
calculating non-GAAP financial
measures, CryoLife also excludes certain items to facilitate a review of
the comparability of CryoLife’s operating performance on a period-to-period
basis because such items are not, in our view, related to the Company’s ongoing
operational performance. In the attached press release, these items
included non-recurring items such as the exclusion of changes in the value
of a
derivative related to the Company’s retired preferred stock, charges related to
certain post-employment benefits and gains related to the settlement of an
insurance dispute. Non-GAAP revenues have been adjusted to exclude
revenues from orthopedic tissue processing because the Company discontinued
procuring and processing such tissue as of January 1, 2007 and is currently
only
distributing those tissues that were processed prior to that
time. Because the Company’s revenues from these tissues will be
reduced to zero in the near future, the Company believes that the non-GAAP
revenue numbers presented provide investors with a more accurate measure of
the
relative revenue performance of the Company’s continuing tissue preservation
business. Accordingly, CryoLife believes that these non-GAAP
measures, when read in conjunction with the Company’s GAAP financials, provide
useful information to investors by offering:
2
|
·
|
the
ability to make more meaningful period-to-period comparisons of the
Company’s on-going operating
results;
|
|
·
|
the
ability to better identify trends in the Company’s underlying business and
perform related trend analyses; and
|
|
·
|
a
better understanding of how management plans and measures the Company’s
underlying business.
|
The
information provided pursuant to
this Item 2.02 is to be considered “furnished” pursuant to Item 2.02 of Form 8-K
and shall not be deemed to be “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act
of
1933, as amended, nor shall it be deemed incorporated by reference into any
of
CryoLife’s reports or filings with the Securities and Exchange Commission
(“SEC”), whether made before or after the date hereof, except as expressly set
forth by specific reference in such report or filing.
Except
for the historical information
contained in this report, the statements made by CryoLife are forward-looking
statements that involve risks and uncertainties. All such statements are subject
to the safe harbor created by the Private Securities Litigation Reform Act
of
1995. CryoLife’s future financial performance could differ significantly from
the expectations of management and from results expressed or implied in the
press release. Please refer to the last paragraph of the press release for
further discussion about forward-looking statements. For further information
on
risk factors, please refer to “Risk Factors” contained in CryoLife’s Form 10-K
for the year ended December 31, 2006, as filed with the SEC, and any subsequent
SEC filings. CryoLife disclaims any obligation or duty to update or modify
these
forward-looking statements.
Section
9 – Financial Statements and Exhibits
Item
9.01(c) Exhibits.
(a)
Financial Statements.
Not
applicable.
(b)
Pro
Forma Financial Information.
Not
applicable.
(c)
Shell
Company Transactions.
Not
applicable.
(d)
Exhibits.
3
|
Exhibit
Number
|
Description
|
|
|
99.1*
|
Press
release dated November 1, 2007
|
|
| * This exhibit is furnished, not filed. | ||
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, CryoLife, Inc.
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
CRYOLIFE,
INC.
|
|
|
Date: November
1, 2007
|
By: /s/
D. A. Lee
|
|
Name: D.
Ashley Lee
|
|
|
Title: Executive
Vice President, Chief
|
|
|
Operating
Officer and
Chief
|
|
|
Financial
Officer
|
|
4
Exhibit
99.1
FOR
IMMEDIATE RELEASE
Media
Contacts:
|
D.
Ashley Lee
|
Katie
Brazel
|
|
Executive
Vice President, Chief Financial Officer and
|
Fleishman
Hillard
|
|
Chief
Operating Officer
|
Phone:
404-739-0150
|
|
Phone:
770-419-3355
|
CryoLife
Reports Third Consecutive Profitable Quarter
Company
posts third quarter net income of $1.9 million and $0.07 per share compared
to
$2.0
million and $0.07 per share in 2006;
Non-GAAP
EPS for third quarter was $0.09 compared to $0.00 per share in
2006
ATLANTA,
GA…(November 1, 2007)…CryoLife, Inc. (NYSE: CRY), a biomaterials,
medical device and tissue processing company, announced today that revenues
for
the third quarter of 2007 increased 11 percent to $22.2 million compared
to
$20.0 million in the third quarter of 2006. Net income in the third
quarter of 2007 was $1.9 million and $0.07 per basic and fully diluted common
share, compared to net income of $2.0 million and $0.07 per basic and fully
diluted common share in the third quarter of 2006.
Excluding
a $601,000 charge related to
stock-based compensation, non-GAAP net income in the third quarter of 2007
was
$2.5 million and $0.09 per basic and fully diluted common
share. Excluding a net $2.0 million gain related to the settlement of
an insurance dispute, and a $185,000 charge related to stock-based compensation,
non-GAAP net income in the third quarter of 2006 was $170,000 and $0.00 per
basic and fully diluted common share.
Revenues
for the first nine months of 2007 increased 16 percent to $69.7 million compared
to $60.2 million in the first nine months of 2006. Net income in the
first nine months of 2007 was $4.6 million and $0.17 per basic and $0.16
per
fully diluted common share, compared to net income of $415,000 and a net
loss of
($0.01) per basic and fully diluted common share in the first nine months
of
2006.
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more
-
5
Excluding
a $1.5 million charge related to stock-based compensation, an $821,000 charge
for the change in the valuation of the derivative related to the Company’s
preferred stock, and a $786,000 charge related to post employment benefits,
non-GAAP net income in the first nine months of 2007 was $7.7 million and
$0.29
per basic and $0.28 per fully diluted common share. Excluding a net
$2.0 million gain related to the settlement of an insurance dispute, an $832,000
charge related to stock-based compensation, and a $448,000 charge related
to
post employment benefits, non-GAAP net loss in the first nine months of 2006
was
($298,000) and ($0.04) per basic and fully diluted common share.
“Excluding
orthopaedic tissue processing revenues of $566,000 in 2007 and $1.7 million
in
2006, non-GAAP revenues for the third quarter of 2007 increased 18 percent
compared to 2006,” stated Steven G. Anderson, president and CEO of CryoLife,
Inc. “The increase in non-GAAP earnings in the third quarter reflects our
continued growth in our core cardiac and vascular tissue processing business,
as
well as our ability to expand gross margins while keeping general and
administrative expenses relatively flat on an adjusted basis.”
Tissue
processing revenues in the third quarter of 2007 increased 10 percent to
$11.3
million compared to $10.3 million in the third quarter of
2006. Tissue processing revenues in the first nine months of 2007
increased 21 percent to $36.0 million compared to $29.8 million in the first
nine months of 2006. Tissue processing revenues increased primarily
due to an increase in demand for the Company’s cardiac and vascular processed
tissues and increased availability of these tissues due to improvements in
procurement.
Combined
cardiac and vascular tissue processing revenues in the third quarter of 2007
increased 25 percent to $10.8 million compared to $8.7 million in the third
quarter of 2006. Combined cardiac and vascular tissue processing
revenues in the first nine months of 2007 increased 31 percent to $32.4 million
compared to $24.6 million in the first nine months of 2006. Combined
cardiac and vascular tissue processing revenues increased primarily due to
an
increase in demand for the Company’s processed tissues and increased
availability of tissues due to improvements in procurement.
Orthopaedic
tissue processing revenues in the third quarter of 2007 decreased 66 percent
to
$566,000 compared to $1.7 million in the third quarter of
2006. Orthopaedic tissue processing revenues in the first nine months
of 2007 decreased 30 percent to $3.7 million compared to $5.2 million in
the
first nine months of 2006. Orthopaedic tissue processing revenues
declined during 2007 because the Company discontinued procuring and processing
such tissues in the first quarter of 2007.
BioGlue®
revenues were $10.3
million for the third quarter of 2007 compared to $9.4 million in the third
quarter of 2006, an increase of 9 percent. U.S. BioGlue revenues were
$7.4 million and $7.1 million in the third quarter of 2007 and 2006,
respectively. International BioGlue revenues were $2.9 million and
$2.3 million in the third quarter of 2007 and 2006, respectively.
6
BioGlue
revenues were $32.4 million for the first nine months of 2007 compared to
$29.5
million in the first nine months of 2006, an increase of 10
percent. U.S. BioGlue revenues were $23.4 million and $22.0 million
in the first nine months of 2007 and 2006,
respectively. International BioGlue revenues were $9.0 million and
$7.5 million in the first nine months of 2007 and 2006,
respectively.
Total
product and tissue processing gross margins were 63 percent in the third
quarter
of 2007 compared to 57 percent in the third quarter of 2006. Total
product and tissue processing gross margins were 61 percent in the first
nine
months of 2007 compared to 56 percent in the first nine months of
2006. Tissue processing gross margins in the third quarter of 2007
were 42 percent compared to 33 percent in the third quarter of
2006. Tissue processing gross margins in the first nine months of
2007 were 41 percent compared to 30 percent in the first nine months of
2006. The increase in total product and tissue processing gross
margins was primarily the result of price increases.
General,
administrative, and marketing expenses in the third quarter of 2007 were
$11.2
million compared to $8.5 million in the third quarter of
2006. Excluding a $601,000 charge related to stock-based
compensation, non-GAAP general, administrative, and marketing expenses in
the
third quarter of 2007 were $10.6 million. Excluding a net $2.0
million gain related to the settlement of an insurance dispute, and a $185,000
charge related to stock-based compensation, non-GAAP general, administrative,
and marketing expenses in the third quarter of 2006 were $10.4
million.
General,
administrative, and marketing expenses in the first nine months of 2007 were
$34.4 million compared to $30.1 million in the first nine months of
2006. Excluding a $1.5 million charge related to stock-based
compensation, and a $786,000 charge related to post employment benefits,
non-GAAP general, administrative, and marketing expenses in the first nine
months of 2007 were $32.1 million. Excluding a net $2.0 million gain
related to the settlement of an insurance dispute, an $832,000 charge related
to
stock-based compensation, and a $448,000 charge related to post employment
benefits, non-GAAP general, administrative, and marketing expenses in the
first
nine months of 2006 were $30.8 million.
Research
and development expenses were $1.1 million and $826,000 in the third quarters
of
2007 and 2006, respectively. Research and development expenses were
$3.1 million and $2.6 million in the first nine months of 2007 and 2006,
respectively.
As
of
September 30, 2007, the Company had $14.2 million in cash, cash
equivalents and marketable securities (at market), of which $1.5 million
was
received from the U.S. Department of Defense as advance funding for the
development of protein hydrogel technology for use on the
battlefield.
Financial
Guidance
The
Company now expects product and tissue processing revenues for the full year
of
2007 to be near or slightly below the lower end of its previously announced
range of revenue guidance, which is $93.0 million.
7
The
Company expects general, administrative, and marketing expenses of between
$45.5
million and $47.0 million, and research and development expenses of between
$4.0
million and $5.0 million for the full year of 2007.
The
Company expects product and tissue processing revenues for the full year
of 2008
to be between $100.0 million and $104.0 million.
The
Company expects BioGlue revenues to be between $47.0 million and $49.0 million,
and tissue processing revenues to be between $52.0 million and $54.0 million
for
the full year of 2008. Other implantable medical device revenues are
expected to be approximately $1.0 million in 2008.
The
Company expects general, administrative, and marketing expenses of between
$48.0
million and $51.0 million, and research and development expenses of between
$6.0
million and $8.0 million for the full year of 2008. The research and
development expectations include an estimate of up to $1.6 million to be
funded
by the U.S. Department of Defense in connection with the development of
BioFoam.
Webcast
and Conference Call Information
The
Company will hold a teleconference call and live webcast today at 10:00 a.m.
Eastern Time to discuss the results followed by a question and answer session
hosted by Mr. Anderson.
To
listen
to the live teleconference, please dial 201-689-8261 a few minutes prior
to
10:00 a.m. A replay of the teleconference will be available November
1 – November 8, 2007 and can be accessed by calling (toll free) 877-660-6853
or
201-612-7415. The account number for the replay is 244, and the
conference number is 257727.
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
CryoLife, Inc.
Founded
in 1984, CryoLife, Inc. is a leader in the processing and distribution
of
implantable living human tissues for use in cardiac and vascular surgeries
throughout the United States and Canada. The Company's BioGlue® Surgical
Adhesive
is FDA approved as an adjunct to sutures and staples for use in adult patients
in open surgical repair of large vessels. BioGlue is also CE marked
in the European Community and approved in Canada and Australia for use
in soft
tissue repair. The Company also distributes the CryoLife-O'Brien® stentless
porcine
heart valve which is CE marked for distribution within the European
Community.
8
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 2007 and
2008 revenues, general and administrative expenses, and research and development
expenses. These future events may not occur as and when expected, if
at all, and, together with the Company's business, are subject to various
risks
and uncertainties. These risks and uncertainties include that the
Company's strategic directives may not generate anticipated revenue and
earnings
growth, the Company's efforts to continue to increase revenue may not be
effective, since their effectiveness is subject to such factors as competitive
pressures and tissue availability, that the Company's efforts to develop
and
introduce new products outside the U.S. may be unsuccessful, that the Company's
efforts to improve procurement and tissue processing yields may not continue
to
prove effective, the possibility that the FDA could impose additional
restrictions on the Company's operations, require a recall, or prevent
the
Company from processing and distributing tissues or manufacturing and
distributing other products, that products and services under development,
including BioDisc, may not be commercially feasible, that the Company's
SynerGraft products may not receive FDA approval when anticipated or at
all,
that the Company may not have sufficient borrowing or other capital availability
to fund its business, that pending or future litigation cannot be settled
on
terms acceptable to the Company, that the Company may not have sufficient
resources to pay punitive damages (which are not covered by insurance)
or other
liabilities in excess of available insurance, and that the Company may
be unable
to obtain sufficient financing to fully pursue its strategic
plan. These risks and uncertainties include the risk factors detailed
in CryoLife's Securities and Exchange Commission filings, including CryoLife's
Form 10-K filing for the year ended December 31, 2006, its most recent
Form
10-Q, and the Company's other SEC filings. The Company does not undertake
to
update its forward-looking statements.
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more
-
9
CRYOLIFE,
INC. AND SUBSIDIARIES
Financial
Highlights
(In
thousands, except per share data)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Revenues:
|
||||||||||||||||
|
Preservation
services
|
$ |
11,347
|
$ |
10,319
|
$ |
36,019
|
$ |
29,839
|
||||||||
|
Products
|
10,545
|
9,687
|
33,096
|
30,308
|
||||||||||||
|
Other
|
268
|
12
|
580
|
74
|
||||||||||||
|
Total
revenues
|
22,160
|
20,018
|
69,695
|
60,221
|
||||||||||||
|
Costs
and expenses:
|
||||||||||||||||
|
Preservation
services
|
6,575
|
6,954
|
21,183
|
20,751
|
||||||||||||
|
Products
|
1,615
|
1,576
|
5,444
|
5,581
|
||||||||||||
|
General,
administrative, and marketing
|
11,240
|
8,549
|
34,417
|
30,106
|
||||||||||||
|
Research
and development
|
1,098
|
826
|
3,134
|
2,572
|
||||||||||||
|
Interest
expense
|
178
|
169
|
518
|
504
|
||||||||||||
|
Interest
income
|
(158 | ) | (94 | ) | (360 | ) | (304 | ) | ||||||||
|
Change
in valuation of derivative
|
--
|
44
|
821
|
111
|
||||||||||||
|
Other
(income) expense, net
|
(350 | ) |
4
|
(248 | ) |
348
|
||||||||||
|
Total
costs and expenses
|
20,198
|
18,028
|
64,909
|
59,669
|
||||||||||||
|
Earnings
before income taxes
|
1,962
|
1,990
|
4,786
|
552
|
||||||||||||
|
Income
tax expense
|
55
|
12
|
234
|
137
|
||||||||||||
|
Net
income
|
$ |
1,907
|
$ |
1,978
|
$ |
4,552
|
$ |
415
|
||||||||
|
Effect
of preferred stock dividends
|
--
|
(243 | ) | (243 | ) | (730 | ) | |||||||||
|
Net
income (loss) applicable to common shares
|
$ |
1,907
|
$ |
1,735
|
$ |
4,309
|
$ | (315 | ) | |||||||
|
Income
(loss) per common share:
|
||||||||||||||||
|
Basic
|
$ |
0.07
|
$ |
0.07
|
$ |
0.17
|
$ | (0.01 | ) | |||||||
|
Diluted
|
$ |
0.07
|
$ |
0.07
|
$ |
0.16
|
$ | (0.01 | ) | |||||||
|
Weighted
average common shares outstanding:
|
||||||||||||||||
|
Basic
|
27,501
|
24,847
|
25,998
|
24,804
|
||||||||||||
|
Diluted
|
28,056
|
25,118
|
26,673
|
24,804
|
||||||||||||
|
Revenues
from:
|
||||||||||||||||
|
Cardiovascular
tissue
|
$ |
5,566
|
$ |
4,189
|
$ |
15,587
|
$ |
11,550
|
||||||||
|
Vascular
tissue
|
5,215
|
4,468
|
16,782
|
13,066
|
||||||||||||
|
Orthopaedic
tissue
|
566
|
1,662
|
3,650
|
5,223
|
||||||||||||
|
Total
preservation services
|
11,347
|
10,319
|
36,019
|
29,839
|
||||||||||||
|
BioGlue
|
10,280
|
9,444
|
32,373
|
29,534
|
||||||||||||
|
Other
implantable medical devices
|
265
|
243
|
723
|
774
|
||||||||||||
|
Total
products
|
10,545
|
9,687
|
33,096
|
30,308
|
||||||||||||
|
Other
|
268
|
12
|
580
|
74
|
||||||||||||
|
Total
revenues
|
$ |
22,160
|
$ |
20,018
|
$ |
69,695
|
$ |
60,221
|
||||||||
|
Domestic
revenues
|
$ |
18,847
|
$ |
17,297
|
$ |
59,659
|
$ |
51,497
|
||||||||
|
International
revenues
|
3,313
|
2,721
|
10,036
|
8,724
|
||||||||||||
|
Total
revenues
|
$ |
22,160
|
$ |
20,018
|
$ |
69,695
|
$ |
60,221
|
||||||||
10
CRYOLIFE,
INC. AND SUBSIDIARIES
Financial
Highlights
(In
thousands)
|
September
30,
|
December
31,
|
|||||||
|
2007
|
2006
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash
and cash equivalents, marketable securities,
|
$ |
14,168
|
$ |
8,669
|
||||
|
at
market, and restricted securities
|
||||||||
|
Trade
receivables, net
|
12,931
|
12,553
|
||||||
|
Other
receivables
|
1,439
|
1,403
|
||||||
|
Deferred
preservation costs, net
|
25,267
|
19,278
|
||||||
|
Inventories
|
5,571
|
5,153
|
||||||
|
Total
assets
|
90,892
|
79,865
|
||||||
|
Shareholders’
equity
|
59,256
|
52,088
|
||||||
11
CRYOLIFE,
INC. AND SUBSIDIARIES
Unaudited
Reconciliation of Non-GAAP Net Income (Loss)
(In
thousands, except per share data)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Net
income – as reported
|
$ |
1,907
|
$ |
1,978
|
$ |
4,552
|
$ |
415
|
||||||||
|
Adjustments
to net income:
|
||||||||||||||||
|
Insurance
settlement
|
--
|
(1,993 | ) |
--
|
(1,993 | ) | ||||||||||
|
Stock-based
compensation
|
601
|
185
|
1,524
|
832
|
||||||||||||
|
Post
employment benefits
|
--
|
--
|
786
|
448
|
||||||||||||
|
Change
in valuation of derivative
|
--
|
--
|
821
|
--
|
||||||||||||
|
Non-GAAP
net income (loss)
|
$ |
2,508
|
$ |
170
|
$ |
7,683
|
$ | (298 | ) | |||||||
|
Effect
of preferred stock dividends
|
--
|
(243 | ) | (243 | ) | (730 | ) | |||||||||
|
Non-GAAP
net income (loss) applicable to
|
||||||||||||||||
|
common
shares
|
$ |
2,508
|
$ | (73 | ) | $ |
7,440
|
$ | (1,028 | ) | ||||||
|
Weighted
average common shares
|
||||||||||||||||
|
outstanding
– Basic
|
27,501
|
24,847
|
25,998
|
24,804
|
||||||||||||
|
Non-GAAP
income (loss) per
|
||||||||||||||||
|
common
share – Basic
|
$ |
0.09
|
$ | (0.00 | ) | $ |
0.29
|
$ | (0.04 | ) | ||||||
|
Numerator
for non-GAAP diluted income (loss) per
|
||||||||||||||||
|
common
share:
|
||||||||||||||||
|
Non-GAAP
net income (loss)
|
$ |
2,508
|
170
|
$ |
7,683
|
(298 | ) | |||||||||
|
Less
effect of preferred stock dividends
|
--
|
(243 | ) | (243 | ) | (730 | ) | |||||||||
|
Non-GAAP
net income (loss) applicable to
|
||||||||||||||||
|
common
stock
|
$ |
2,508
|
(73 | ) | $ |
7,440
|
(1,028 | ) | ||||||||
|
Denominator
for non-GAAP diluted income (loss)
|
||||||||||||||||
|
per
common share:
|
||||||||||||||||
|
Basic
weighted-average common shares
|
27,501
|
24,847
|
25,998
|
24,804
|
||||||||||||
|
Effect
of dilutive stock options
|
555
|
--
|
675
|
--
|
||||||||||||
|
Weighted
average common shares
|
||||||||||||||||
|
outstanding
- Diluted
|
28,056
|
24,847
|
26,673
|
24,804
|
||||||||||||
|
Non-GAAP
income (loss) per
|
||||||||||||||||
|
common
share – Diluted
|
$ |
0.09
|
$ | (0.00 | ) | $ |
0.28
|
$ | (0.04 | ) | ||||||
12
CRYOLIFE,
INC.
Unaudited
Reconciliation of Non-GAAP General, Administrative, and Marketing
Expenses
(In
thousands)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
General,
administrative, and
|
||||||||||||||||
|
marketing
expense – as reported
|
$ |
11,240
|
$ |
8,549
|
$ |
34,417
|
$ |
30,106
|
||||||||
|
Adjustments
to G&A expense:
|
||||||||||||||||
|
Insurance
settlement
|
--
|
1,993
|
--
|
1,993
|
||||||||||||
|
Stock-based
compensation
|
(601 | ) | (185 | ) | (1,524 | ) | (832 | ) | ||||||||
|
Post
employment benefits
|
--
|
--
|
(786 | ) | (448 | ) | ||||||||||
|
Non-GAAP
general, administrative, and
|
||||||||||||||||
|
marketing
expense
|
$ |
10,639
|
$ |
10,357
|
$ |
32,107
|
$ |
30,819
|
||||||||
For
additional information about the company, visit CryoLife’s Web
site:
http://www.cryolife.com
END
13