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): July 30,
2009
_______________________
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 July 30, 2009, CryoLife, Inc.
(“CryoLife” or the “Company”) issued a press release announcing its financial
results for the quarter ended June 30, 2009. CryoLife hereby incorporates by
reference herein the information set forth in its Press Release dated July 30,
2009, 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 certain supplemental non-GAAP financial measures:
|
·
|
non-GAAP
tissue processing revenue growth, which has been obtained by adjusting the
comparable tissue processing GAAP revenue growth number to exclude
revenues related to orthopedic tissue processing
services;
|
|
·
|
non-GAAP
tissue processing revenues, which have been obtained by adjusting the
comparable tissue processing segment revenue numbers to exclude revenues
related to orthopedic tissue processing
services;
|
|
·
|
non-GAAP
net income, which has been obtained by measuring net income as if the
Company had recorded 2008 income taxes at a normalized 41 percent
effective tax rate;
|
|
·
|
non-GAAP
fully diluted earnings per share, which have been obtained by measuring
fully diluted earnings per share as if the Company had recorded 2008
income taxes at a normalized 41 percent effective tax
rate;
|
|
·
|
non-GAAP
BioGlue revenues, which have been obtained by excluding the effects of
changes in foreign currency exchange
rates.
|
Tissue processing revenue growth has
been adjusted to obtain non-GAAP tissue processing revenue growth, and tissue
processing segment revenues have been adjusted to obtain non-GAAP tissue
processing revenues, by excluding revenues from orthopedic tissue processing,
because the Company discontinued procuring and processing such tissue as of
January 1, 2007 and ceased distributing its remaining orthopedic tissue as of
June 30, 2008. Because the Company’s revenues from orthopedic tissue
have been effectively reduced to zero and should remain at that level for the
foreseeable future, the Company believes that the non-GAAP revenue growth
numbers presented, as well as the non-GAAP tissue processing revenues presented,
provide investors with a more accurate measure of the relative revenue
performance of the Company’s continuing tissue processing business.
Net income and fully diluted earnings
per share have been adjusted to obtain non-GAAP net income and fully diluted
earnings per share by presenting the figures as if the Company had recorded 2008
income taxes at a normalized 41 percent effective tax rate because the Company's
effective income tax rate was lower in 2008 due to the valuation allowance on
the Company's deferred tax assets during 2008. The Company believes
that the presentation of non-GAAP net income and fully diluted earnings per
share provides investors with the ability to better compare the Company’s
relative period-to-period performance with respect to such
measurements.
-2-
BioGlue revenues have been adjusted to
obtain non-GAAP revenues by excluding the effects of changes in foreign currency
exchange rates in order to show the underlying trend in demand for the product
and the impact of that demand on revenues, as fluctuations in foreign exchange
rates may tend to obscure the trend in overall demand.
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:
|
·
|
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 additional non-GAAP financial
information is not meant to be considered in isolation or as a substitute for
measures calculated in accordance with GAAP. With respect to the
BioGlue financial information, investors are cautioned to avoid overreliance on
the non-GAAP financial measures, as a substantial portion of BioGlue sales occur
in European denominated currency and foreign currency exchange rates have, and
will continue to have, a material impact on CryoLife dollar-denominated
revenues. Management considers both the GAAP and non-GAAP BioGlue
financial measures when evaluating the Company’s business prospects and overall
health and continues to evaluate alternatives to ameliorate the impact of
foreign exchange rate fluctuations on the Company’s revenues.
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, 2008, as filed with the SEC, and any subsequent
SEC filings, as well as in the press release. CryoLife disclaims any obligation
or duty to update or modify these forward-looking statements.
-3-
Section
9 Financial Statements and
Exhibits.
Item
9.01(d) Exhibits.
(a)
Financial Statements.
Not applicable.
(b) Pro
Forma Financial Information.
Not applicable.
(c) Shell
Company Transactions.
Not applicable.
(d)
Exhibits.
|
Exhibit Number
|
Description
|
|
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99.1*
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Press
release dated July 30,
2009
|
|
|
* This
exhibit is furnished, not
filed.
|
-4-
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:
July 30, 2009
|
By:
|
/s/ D.A. Lee | |
| Name: D. Ashley Lee | |||
| Title: Executive Vice President, Chief Operating Officer and Chief Financial Officer | |||
-5-
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 Record Quarterly Revenues of $28.2 Million
Company
posts fully diluted earnings per share of $0.09 for second quarter of
2009;
Revenues
increased 6 percent sequentially for second quarter of 2009 compared to first
quarter of 2009
ATLANTA, GA…(July 30, 2009)…CryoLife,
Inc. (NYSE: CRY), an implantable biological medical device and
cardiovascular tissue processing company, announced today that revenues for the
second quarter of 2009 increased 4 percent to a quarterly record of $28.2
million compared to $27.2 million for the second quarter of
2008. Excluding orthopaedic tissue processing revenues of $44,000 and
$297,000 for the second quarters of 2009 and 2008, respectively, revenues
increased 5 percent for the second quarter of 2009.
Operating
income for each of the second quarters of 2009 and 2008 was $4.2
million. Operating margin was 15 percent for each of the second
quarters of 2009 and 2008.
Net
income for the second quarter of 2009 was $2.5 million, or $0.09 per basic and
fully diluted common share, compared to $3.9 million, or $0.14 per basic and
fully diluted common share for the second quarter of 2008. The
Company’s effective income tax rate was 41 percent for the second quarter of
2009, compared to 6 percent for the second quarter of 2008. The
Company’s effective income tax rate was lower in 2008 due to the valuation
allowance on the Company’s deferred tax assets during 2008. If the
Company had recorded 2008 income taxes at a normalized 41 percent effective tax
rate, net income for the second quarter of 2008 would have been $2.4 million and
fully diluted earnings per share would have been $0.09.
Revenues
for the first six months of 2009 increased 4 percent to $54.9 million compared
to $52.7 million for the first six months of 2008. Excluding
orthopaedic tissue processing revenues of $129,000 and $624,000 for the first
six months of 2009 and 2008, respectively, revenues increased 5 percent for the
first six months of 2009.
Operating
income increased 11 percent for the first six months of 2009 to $7.7 million
compared to $6.9 million for the first six months of 2008. Operating
margin increased to 14 percent for the first six months of 2009 compared to 13
percent for 2008.
Net
income for the first six months of 2009 was $4.5 million, or $0.16 per basic and
fully diluted common share, compared to $6.7 million, or $0.24 per basic and
fully diluted common share for the first six months of 2008. If the
Company had recorded 2008 income taxes at a normalized 41 percent effective tax
rate, net income for the first six months of 2008 would have been $4.1 million
and fully diluted earnings per share would have been $0.15. The
Company has net operating loss carryforwards that will largely reduce required
cash payments for federal and state income taxes for the 2009 tax
year.
Tissue
processing revenues for the second quarter of 2009 increased 3 percent to
$14.1 million compared to $13.7 million for the second quarter of 2008.
Excluding orthopaedic tissue processing revenues of $44,000 and $297,000 for the
second quarter of 2009 and 2008, respectively, tissue processing revenues
increased 5 percent to $14.0 million for the second quarter of 2009 compared to
$13.4 million for the second quarter of 2008. The increase in tissue
processing revenues was primarily due to increased revenues from vascular tissue
for the second quarter of 2009 of $7.6 million as compared to $7.1 million for
the second quarter of 2008.
Tissue
processing revenues for the first six months of 2009 increased 2 percent to
$27.6 million compared to $27.1 million for the first six months of
2008. Excluding orthopaedic tissue processing revenues of $129,000
and $624,000 for the first six months of 2009 and 2008, respectively, tissue
processing revenues increased 4 percent to $27.5 million for the first six
months of 2009 compared to $26.5 million for the first six months of
2008. The increase in tissue processing revenues was primarily due to
increased revenues from vascular tissue for the first six months of 2009 of
$15.4 million as compared to $13.9 million for the first six months of
2008.
Revenues
from the distribution of CryoValve® SG
pulmonary heart valves increased to $1.5 million for the second quarter of 2009
from $1.4 million for the second
quarter of 2008, representing 24 percent of the Company’s cardiac
tissue processing revenues for the second quarter of 2009. Revenues
from the distribution of CryoValve SG pulmonary heart valves increased to $2.7
million for the first six months 2009 from $1.6 million for the first six
months of 2008, representing 22 percent of the Company’s cardiac
tissue processing revenues for the first six months of 2009.
BioGlue® Surgical
Adhesive revenues were $12.4 million for the second quarter of 2009
compared to $13.0 million for the second quarter of 2008, a decrease of 5
percent. Excluding the effects of changes in foreign currency
exchange rates for the second quarter of 2009 compared to those in effect during
the second quarter of 2008, which reduced BioGlue revenues by $331,000 for the
second quarter of 2009, BioGlue revenues would have been $12.7
million. BioGlue revenues were $24.1 million for the first six months of
2009 compared to $24.9 million for the first six months of 2008, a decrease of 3
percent. Excluding the effects of changes in foreign currency
exchange rates for the first six months of 2009 compared to those in effect
during the first six months of 2008, which reduced BioGlue revenues by $639,000
for the first six months of 2009, BioGlue revenues would have been $24.8
million.
Page 2 of
8
U.S.
BioGlue revenues were $8.5 million and $9.1 million for the second quarters of
2009 and 2008, respectively. U.S. BioGlue revenues were $16.9 million and
$17.7 million for the first six months of 2009 and 2008,
respectively. International BioGlue revenues were $3.9 million
for each of the second quarters of 2009 and 2008. International
BioGlue revenues were $7.3 million and $7.2 million for the first six months of
2009 and 2008, respectively.
Other
medical device revenues for the second quarter of 2009 were $1.5 million
compared to $308,000 for the second quarter of 2008. Other
medical device revenues for the first six months of 2009 were $2.7 million
compared to $401,000 for the first six months of 2008. Included in
this revenue category for the second quarter and the first six months
of 2009 were $1.5 million and $2.6 million, respectively, in
sales of HemoStase™.
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 $12.3
million compared to $12.4 million for the second quarter of
2008. General, administrative, and marketing expenses for the first
six months of 2009 were $25.1 million compared to $24.4 million for the first
six months of 2008. These expenses included personnel costs,
advertising, physician education and training, and promotional materials to
support the Company’s efforts to increase its tissue processing service and
product offerings, and current revenue growth.
General,
administrative, and marketing expenses for the second quarters of 2009 and 2008
included benefits of $495,000 and $610,000, respectively, related to the
adjustment of reserves for product liability losses. General,
administrative, and marketing expenses for the first six months of 2009 and 2008
included benefits of $460,000 and $530,000, respectively, related to the
adjustment of reserves for product liability losses.
Research
and development expenses were $1.4 million and $1.3 million for the second
quarters of 2009 and 2008, respectively. Research and
development expenses were $2.4 million and $2.8 million for the first six months
of 2009 and 2008, respectively. Research and development spending in
2009 is primarily focused on the Company’s protein hydrogel technologies
and SynerGraft® tissues
and products.
As of
June 30, 2009, the Company had $26.7 million in cash, cash equivalents, and
marketable securities, compared to $22.8 million at December 31,
2008. Of this $26.7 million, $2.5 million was received from the U.S.
Department of Defense as advance funding for the development of BioFoamÒ
protein hydrogel technology, and $5.0 million was designated as long-term
restricted money market funds due to a financial covenant requirement under the
Company’s credit agreement.
Page 3 of
8
“CryoLife
continues to thrive and expand as witnessed by the record revenues in the second
quarter of 2009, even in a very adverse world economy,” stated Steven G.
Anderson, president and chief executive officer. “We are very encouraged
by our continued growth and the trend we are establishing for 2009, and we will
continue to look for opportunities to expand our cardiac and vascular surgery
portfolios.”
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 $112.0
million and $116.0 million. The Company expects tissue processing
revenues to be between $57.0 million and $59.0 million. The Company
expects product revenues to be between $54.0 million and $56.0 million, with
BioGlue revenues to be between $49.0 million and $50.0 million for the full year
of 2009 and other medical device revenues, which consist primarily of sales
of HemoStase, to be between $5.0 million and $6.0 million in
2009. Tissue processing and product revenues could be affected
by several factors, including but not limited to, the general economic
environment and its effect on demand for the Company’s tissues and
products, and changes in foreign currency exchange rates and their effects
on revenues generated in international markets. Other revenues for
2009 are expected to be approximately $1.0 million, related to funding
received from the Department of Defense in connection with the development of
BioFoam. The amount of other revenues is largely dependent upon
actual expenses incurred related to the development of BioFoam.
The
Company expects general, administrative, and marketing expenses of between $50.0
million and $52.0 million, and research and development expenses of between $5.0
million and $6.0 million for the full year of 2009. The research and
development expectations include approximately $1.0 million to be funded by the
Department of Defense in connection with the development of
BioFoam.
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 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 from July
30 through August 7 and can be accessed by calling 877-660-6853 (toll free) or
201-612-7415. The account number for the replay is 244 and the
conference number is 327576.
Page 4 of
8
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 U.S. and Canada. The Company’s CryoValve® SG
pulmonary heart valve, processed using CryoLife's proprietary SynerGraft®
technology, has FDA 510(k) clearance for the replacement of diseased, damaged,
malformed, or malfunctioning native pulmonary valves. 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. BIOGLUE Aesthetic™ Medical Adhesive
is CE marked in the European Community for periosteal fixation following
endoscopic browplasty (brow lift) in reconstructive plastic surgery and is
distributed by a third party for this indication. CryoLife
distributes HemoStaseTM, a
hemostatic agent, in much of the U.S. for use in cardiac and vascular surgery
and in the European Community and Canada for cardiac, vascular, and general
surgery, subject to certain exclusions.
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 Securities and Exchange Commission filings, including
our Form 10-K filing for the year ended December 31, 2008, our Form 10Q filing
for the quarter ended March 31, 2009, our Form 10-Q to be filed for the quarter
ended June 30, 2009, and the Company's other SEC filings. The Company
does not undertake to update its forward-looking statements.
Page 5 of
8
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 | ||||||||||||
Page 6 of
8
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 | ||||||
Page 7 of
8
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.
END
Page 8 of
8