aort-20220505x8k
false000078419900007841992022-05-052022-05-05

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): May 5, 2022
___________________________________________

ARTIVION, INC.

(Exact name of registrant as specified in its charter)
___________________________________________

Delaware

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)

Title of each class

Trading Symbol(s)

Name of each exchange
on which registered

Common Stock, $0.01 par value

AORT

NYSE

___________________________________________

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):

¨   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02Results of Operations and Financial Condition

On May 5, 2022, Artivion, Inc. (“Artivion” or the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2022. Artivion hereby incorporates by reference herein the information set forth in its press release dated May 5, 2022, 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 Artivion have continued unchanged since such date.

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 Artivion’s reports or filings with the Securities and Exchange Commission, 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 Artivion 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. Artivion’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 text portion of the press release for further discussion about forward-looking statements. For further information on risk factors, please refer to “Risk Factors” contained in Artivion’s most recently filed Form 10-K and its subsequent filings with the Securities and Exchange Commission, as well as in the press release attached as Exhibit 99.1 hereto. Artivion disclaims any obligation or duty to update or modify these forward-looking statements.

Item 9.01(d)

Exhibits

 

(d)

Exhibits.

Exhibit Number

Description

99.1*

Press Release dated May 5, 2022

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

* Furnished herewith, not filed.


-2-


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Artivion, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 5, 2022

ARTIVION, INC.

By:

/s/ D. Ashley Lee

Name:

D. Ashley Lee

Title:

Executive Vice President, and

Chief Financial Officer

-3-

Exhibit 99.1

Exhibit 99.1

 

 

Picture 1

Picture 2



FOR IMMEDIATE RELEASE



Contacts:

                                                                             Phone: 770-419-3355

 

/ Lynn Lewis

 

 

 



Artivion

D. Ashley Lee

Executive Vice President &

Chief Financial Officer

Phone: 770-419-3355

 

Gilmartin Group LLC

Brian Johnston / Lynn Lewis

Phone:  332-895-3222

investors@artivion.com



Artivion Reports First Quarter 2022 Financial Results 



Achieved revenue of $77.2 million in the first quarter 2022 versus $71.1 million in the first quarter of 2021, an increase of 8.6% on a GAAP basis and 11.2% on a non-GAAP constant currency basis





ATLANTA, GA – (May 5, 2022) – Artivion, Inc. (NYSE: AORT), a leading cardiac and vascular surgery company focused on aortic disease, today announced its financial results for the first quarter ended March 31, 2022.



“In the first quarter we made great progress on our recently unveiled three-year strategic growth initiatives announced at our analyst and investor day on March 23rd. Year-over-year revenue rose 8.6% on a GAAP basis and 11.2% on a constant currency basis. Constant currency revenue growth was driven by 34% growth in aortic stent grafts and 11% growth in On-X. We also posted, on a constant currency basis, 39% growth in Asia Pacific and 93% growth in Latin America as we continue to expand our commercial footprint in those regions and secure additional regulatory approvals. We believe our differentiated products supported by our global sales organization will continue to deliver strong results for the remainder of 2022,” said Pat Mackin, Chairman, President, and Chief Executive Officer.



“We also made progress in advancing our product pipeline, which is expected to drive growth in both the near and longer term. We continue to expect to receive FDA PMA approval for PROACT Mitral and for PerClot this year. Meanwhile, we have made significant progress with enrollment in our PROACT Xa trial and have made good progress on several other programs that are expected to deliver significant incremental growth beginning in 2025.”



First Quarter 2022 Financial Results

Total revenues for the first quarter of 2022 were $77.2 million, reflecting an increase of 8.6% on a GAAP basis and 11.2% on a non-GAAP constant currency basis, both compared to the first quarter of 2021.



Net loss for the first quarter of 2022 was ($3.4) million, or ($0.08) per fully diluted common share, compared to net loss of ($3.1) million, or ($0.08) per fully diluted common share for the first quarter of 2021. Non-GAAP net income for the first quarter of 2022 was $1.1 million, or $0.03 per fully diluted common share, compared to non-GAAP net income of $1.4 million, or $0.03 per fully diluted common share for the first quarter of 2021.



Page 1 of 9


 

2022 Financial Outlook 

Artivion continues to expect constant currency revenue growth of between 9.0% and 11.0% for the full year 2022 as compared to the full year 2021.



The Company's financial performance for 2022 and future periods is subject to the risks identified below.



Non-GAAP Financial Measures 

This press release contains non-GAAP financial measures, including non-GAAP revenue, non-GAAP net income, non-GAAP EBITDA, and non-GAAP general, administrative, and marketing expenses. Investors should consider this non-GAAP information in addition to, and not as a substitute for, financial measures prepared in accordance with US GAAP. In addition, this non-GAAP financial information may not be the same as similar measures presented by other companies. The Company's non-GAAP revenues are adjusted for the impact of changes in currency exchange. The Company’s non-GAAP net income; non-GAAP EBITDA; and non-GAAP general, administrative, and marketing results exclude (as applicable) business development, integration, and severance expense; depreciation and amortization expense; interest income and expense; non-cash interest expense; loss on foreign currency revaluation; stock-based compensation expense; corporate rebranding expense; and income tax expense (benefit). The Company generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Company management believes that these non-GAAP presentations provide useful information to investors regarding unusual non-operating transactions; the operating expense structure of the Company's existing and recently acquired operations, without regard to its on-going efforts to acquire additional complementary products and businesses and the transaction and integration expenses incurred in connection with recently acquired and divested product lines; and the operating expense structure excluding fluctuations resulting from foreign currency revaluation and stock-based compensation expense. The Company believes it is useful to exclude certain expenses because such amounts in any specific period may not directly correlate to the underlying performance of its business operations or can vary significantly between periods as a result of factors such as impact of recent acquisitions non-cash expense related to amortization of previously acquired tangible and intangible assets and any related adjustments to their carrying values. The Company has adjusted for the impact of changes in currency exchange from certain revenues to evaluate comparable product growth rates on a constant currency basis. The Company does, however, expect to incur similar types of expenses and currency exchange impacts in the future, and this non-GAAP financial information should not be viewed as a statement or indication that these types of expenses will not recur. Company management encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety, including the reconciliation of non-GAAP to GAAP financial measures.



Webcast and Conference Call Information

The Company will hold a teleconference call and live webcast later today, May 5, 2022 at 4:30 p.m. ET to discuss the results, followed by a question and answer session. To participate in the conference call dial 201-689-8261 a few minutes prior to 4:30 p.m. ET. The teleconference replay will be available approximately one hour following the completion of the event and can be accessed by calling (toll free) 877-660-6853 or 201-612-7415. The conference number for the replay is 13728477.



The live webcast and replay can be accessed by going to the Investors section of the Artivion website at www.Artivion.com and selecting the heading Webcasts & Presentations.



About Artivion, Inc.

Headquartered in suburban Atlanta, Georgia, Artivion, Inc. is a medical device company focused on developing simple, elegant solutions that address cardiac and vascular surgeons’ most difficult challenges in treating patients with aortic diseases. Artivion’s four major groups of products include: aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues. Artivion markets

Page 2 of 10

 


 

and sells products in more than 100 countries worldwide. For additional information about Artivion, visit our website, www.artivion.com.  



Forward Looking Statements

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. Such forward-looking statements reflect the views of management at the time such statements are made. These statements include our beliefs that our differentiated products supported by our global sales organization will continue to deliver strong results for the remainder of 2022; our product pipeline will drive growth in both the near and longer term; we will receive FDA PMA approval for PROACT Mitral and for PerClot in 2022; the PROACT Xa trial, if successful, and several other programs will deliver significant incremental growth beginning in 2025; and we will deliver year over year constant currency revenue growth of 9-11% in 2022. These forward-looking statements are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations, including that the benefits anticipated from the Ascyrus Medical LLC transaction and Endospan agreements may not be achieved; the benefits anticipated from our clinical trials may not be achieved or achieved on our anticipated timeline; our products may not be able to consistently retain their existing regulatory approvals or special regulatory approvals in order to be commercialized; products in our pipeline may not receive regulatory approval at all or receive regulatory approval on our anticipated timelines; our products that obtain regulatory approval may not be adopted by the market as much as we anticipate or at all;  and the continued effects of COVID-19, including new COVID-19 variants, hospital staffing shortages, and decelerating vaccination or vaccine adoption rates could adversely impact our results.  These risks and uncertainties include the risk factors detailed in our Securities and Exchange Commission filings, including our Form 10-K for the year ended December 31, 2021. Artivion does not undertake to update its forward-looking statements, whether as a result of new information, future events, or otherwise.







Page 3 of 10

 


 





Artivion, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share data)

(Unaudited)













 

 

 

 

 



 



Three Months Ended



March 31,



 

2022

 

 

2021

Revenues:

 

 

 

 

 

Products

$

57,542 

 

$

53,345 

Preservation services

 

19,671 

 

 

17,742 

Total revenues

 

77,213 

 

 

71,087 



 

 

 

 

 

Cost of products and preservation services:

 

 

 

 

 

Products

 

17,408 

 

 

14,911 

Preservation services

 

9,086 

 

 

8,338 

Total cost of products and preservation services

 

26,494 

 

 

23,249 



 

 

 

 

 

Gross margin

 

50,719 

 

 

47,838 



 

 

 

 

 

Operating expenses:

 

 

 

 

 

General, administrative, and marketing

 

38,955 

 

 

38,638 

Research and development

 

10,128 

 

 

7,754 

Total operating expenses

 

49,083 

 

 

46,392 



 

 

 

 

 

Operating income

 

1,636 

 

 

1,446 



 

 

 

 

 

Interest expense

 

3,948 

 

 

4,040 

Interest income

 

(16)

 

 

(24)

Other expense, net

 

133 

 

 

1,931 



 

 

 

 

 

Loss before income taxes

 

(2,429)

 

 

(4,501)

Income tax expense (benefit)

 

960 

 

 

(1,363)



 

 

 

 

 

Net loss

$

(3,389)

 

$

(3,138)



 

 

 

 

 

Loss per share:

 

 

 

 

 

Basic

$

(0.08)

 

 

(0.08)

Diluted

$

(0.08)

 

$

(0.08)



 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

Basic

 

39,850 

 

 

38,738 

Diluted

 

39,850 

 

 

38,738 



 

 

 

 

 

Net loss

$

(3,389)

 

$

(3,138)

Other comprehensive loss:

 

 

 

 

 

Foreign currency translation adjustments

 

(3,775)

 

 

(10,290)

Comprehensive loss

$

(7,164)

 

$

(13,428)

Page 4 of 10

 


 

Artivion, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)





 

 

 

 

 



March 31,

 

December 31,



2022

 

2021



(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

51,408 

 

$

55,010 

Trade receivables, net

 

54,998 

 

 

53,019 

Other receivables

 

4,577 

 

 

5,086 

Inventories, net

 

76,208 

 

 

76,971 

Deferred preservation costs, net

 

43,964 

 

 

42,863 

Prepaid expenses and other

 

13,378 

 

 

14,748 

Total current assets

 

244,533 

 

 

247,697 



 

 

 

 

 

Goodwill

 

247,829 

 

 

250,000 

Acquired technology, net

 

162,458 

 

 

166,994 

Operating lease right-of-use assets, net

 

44,365 

 

 

45,714 

Property and equipment, net

 

37,459 

 

 

37,521 

Other intangibles, net

 

33,697 

 

 

34,502 

Deferred income taxes

 

3,489 

 

 

2,357 

Other assets

 

8,026 

 

 

8,267 

Total assets

$

781,856 

 

$

793,052 



 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

9,230 

 

$

10,395 

Accrued compensation

 

9,571 

 

 

13,163 

Accrued expenses

 

9,396 

 

 

7,687 

Taxes payable

 

5,575 

 

 

3,634 

Accrued procurement fees

 

2,206 

 

 

3,689 

Current maturities of operating leases

 

3,362 

 

 

3,149 

Current portion of long-term debt

 

1,622 

 

 

1,630 

Other liabilities

 

1,875 

 

 

1,606 

Total current liabilities

 

42,837 

 

 

44,953 



 

 

 

 

 

Long-term debt

 

307,232 

 

 

307,493 

Contingent consideration

 

47,600 

 

 

49,400 

Non-current maturities of operating leases

 

43,679 

 

 

44,869 

Non-current finance lease obligation

 

4,156 

 

 

4,374 

Deferred income taxes

 

26,373 

 

 

28,799 

Deferred compensation liability

 

5,766 

 

 

5,952 

Other liabilities

 

6,721 

 

 

6,484 

Total liabilities

$

484,364 

 

$

492,324 



 

 

 

 

 

Commitments and contingencies

 

 

 

 

 



 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

Preferred stock

 

--

 

 

--

Common stock (issued shares of 41,688 in 2022 and 41,397 in 2021)

 

417 

 

 

414 

Additional paid-in capital

 

326,799 

 

 

322,874 

Retained (deficit) earnings

 

(1,414)

 

 

1,975 

Accumulated other comprehensive loss

 

(13,662)

 

 

(9,887)

Treasury stock, at cost, 1,487 shares as of March 31, 2022
and December 31, 2021, respectively

 

(14,648)

 

 

(14,648)

Total shareholders' equity

 

297,492 

 

 

300,728 



 

 

 

 

 

Total liabilities and shareholders' equity

$

781,856 

 

$

793,052 



Page 5 of 10

 


 















Artivion, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)











 

 

 

 

 



Three Months Ended



March 31,



 

2022

 

 

2021

Net cash flows from operating activities:

 

 

 

 

 

Net loss

$

(3,389)

 

$

(3,138)



 

 

 

 

 

Adjustments to reconcile net loss to net cash from operating activities:

 

 

 

 

 

Depreciation and amortization

 

5,881 

 

 

6,006 

Non-cash compensation

 

3,166 

 

 

2,480 

Non-cash lease expense

 

1,920 

 

 

1,758 

Write-down of inventories and deferred preservation costs

 

989 

 

 

1,274 

Change in fair value of contingent consideration

 

(1,800)

 

 

970 

Deferred income taxes

 

(2,966)

 

 

(4,241)

Other

 

496 

 

 

787 

Changes in operating assets and liabilities:

 

 

 

 

 

Prepaid expenses and other assets

 

1,494 

 

 

(1,291)

Inventories and deferred preservation costs

 

(1,359)

 

 

(5,933)

Receivables

 

(1,710)

 

 

(3,301)

Accounts payable, accrued expenses, and other liabilities

 

(3,320)

 

 

1,590 

Net cash flows used in operating activities

 

(598)

 

 

(3,039)



 

 

 

 

 

Net cash flows from investing activities:

 

 

 

 

 

Capital expenditures

 

(2,239)

 

 

(1,502)

Other

 

(469)

 

 

692 

Net cash flows used in investing activities

 

(2,708)

 

 

(810)



 

 

 

 

 

Net cash flows from financing activities:

 

 

 

 

 

Proceeds from exercise of stock options and issuance of common stock

 

2,318 

 

 

861 

Repayment of debt

 

(694)

 

 

(701)

Redemption and repurchase of stock to cover tax withholdings

 

(1,730)

 

 

(1,813)

Other

 

(129)

 

 

(442)

Net cash flows used in financing activities

 

(235)

 

 

(2,095)



 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(61)

 

 

1,088 

Decrease in cash and cash equivalents

 

(3,602)

 

 

(4,856)



 

 

 

 

 

Cash and cash equivalents beginning of period

 

55,010 

 

 

61,958 

Cash and cash equivalents end of period

$

51,408 

 

$

57,102 



Page 6 of 10

 


 















Artivion, Inc. and Subsidiaries

Financial Highlights

(In thousands)









 

 

 

 

 



(Unaudited)



Three Months Ended



March 31,



2022

 

2021

Products:

 

 

 

 

 

Aortic stent grafts

$

25,506 

 

$

20,205 

Surgical sealants

 

15,681 

 

 

17,828 

On-X

 

14,371 

 

 

13,095 

Other

 

1,984 

 

 

2,217 

Total products

 

57,542 

 

 

53,345 



 

 

 

 

 

Preservation services

 

19,671 

 

 

17,742 

Total revenues

$

77,213 

 

$

71,087 



 

 

 

 

 

Revenues:

 

 

 

 

 

U.S.

$

37,735 

 

$

36,318 

International

 

39,478 

 

 

34,769 

Total revenues

$

77,213 

 

$

71,087 



Page 7 of 10

 


 

Artivion, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP

Revenues and General Administrative, and Marketing Expense

(In thousands)







 

 

 

 

 

 



(Unaudited)



Three Months Ended



March 31,



2022

 

2021

Growth Rate

Reconciliation of total revenues, GAAP to

 

 

 

 

 

 

total revenues, non-GAAP:

 

 

 

 

 

 

Total revenues, GAAP

$

77,213 

 

$

71,087 

8.6%

Impact of changes in currency exchange

 

--

 

 

(1,629)

 

Total constant currency revenue,
non-GAAP

$

77,213 

 

$

69,458 

11.2%









 

 

 

 

 



(Unaudited)



Three Months Ended



March 31,



2022

 

2021

Reconciliation of G&A expenses, GAAP to

 

 

 

 

 

adjusted G&A, non-GAAP:

 

 

 

 

 

General, administrative, and marketing expense, GAAP

$

38,955 

 

$

38,638 

Business development, integration, and severance expense

 

1,579 

 

 

(1,470)

Corporate rebranding expense

 

(883)

 

 

(15)

Adjusted G&A, non-GAAP:

$

39,651 

 

$

37,153 





Page 8 of 10

 


 



Artivion, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP

Adjusted EBITDA

(In thousands)









 

 

 

 

 



(Unaudited)



Three Months Ended



March 31,



2022

 

2021

Reconciliation of net loss, GAAP to

 

 

 

 

 

adjusted EBITDA, non-GAAP:

 

 

 

 

 

Net loss, GAAP

$

(3,389)

 

$

(3,138)

Adjustments:

 

 

 

 

 

Depreciation and amortization expense

 

5,881 

 

 

6,006 

Interest expense

 

3,948 

 

 

4,040 

Stock-based compensation expense

 

3,166 

 

 

2,480 

Income tax expense (benefit)

 

960 

 

 

(1,363)

Corporate rebranding expense

 

883 

 

 

15 

Loss on foreign currency revaluation

 

133 

 

 

1,886 

Interest income

 

(16)

 

 

(24)

Business development, integration, and severance expense

 

(1,579)

 

 

1,470 

Adjusted EBITDA, non-GAAP

$

9,987 

 

$

11,372 













Page 9 of 10

 


 

















Artivion Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP

Net Loss and Diluted Loss Per Common Share

(In thousands, except per share data)













 

 

 

 

 



(Unaudited)



Three Months Ended



March 31,



 

2022

 

 

2021

GAAP:

 

 

 

 

 

Loss before income taxes

$

(2,429)

 

$

(4,501)

Income tax expense (benefit)

 

960 

 

 

(1,363)

Net loss

$

(3,389)

 

$

(3,138)



 

 

 

 

 

Diluted loss per common share:

$

(0.08)

 

$

(0.08)



 

 

 

 

 

Diluted weighted-average common shares outstanding

 

39,850 

 

 

38,738 



 

 

 

 

 

Reconciliation of loss before income taxes,

 

 

 

 

 

GAAP to adjusted income, non-GAAP

 

 

 

 

 

Loss before income taxes, GAAP:

$

(2,429)

 

$

(4,501)

Adjustments:

 

 

 

 

 

Amortization expense

 

4,084 

 

 

4,260 

Corporate rebranding expense

 

883 

 

 

15 

Non-cash interest expense

 

456 

 

 

568 

Business development, integration, and severance expense

 

(1,579)

 

 

1,470 

Adjusted income before income taxes,

 

 

 

 

 

non-GAAP

 

1,415 

 

 

1,812 



 

 

 

 

 

Income tax expense calculated at a

 

 

 

 

 

pro forma tax rate of 25%

 

354 

 

 

453 

Adjusted net income, non-GAAP

$

1,061 

 

$

1,359 



 

 

 

 

 

Reconciliation of diluted loss per common share, GAAP

 

 

 

 

 

to adjusted diluted income per common share, non-GAAP:

 

 

 

 

 

Diluted loss per common share, GAAP:

$

(0.08)

 

$

(0.08)

Adjustments:

 

 

 

 

 

Amortization expense

 

0.10 

 

 

0.11 

Effect of 25% pro forma tax rate

 

0.04 

 

 

(0.01)

Corporate rebranding expense

 

0.02 

 

 

--

Non-cash interest expense

 

0.01 

 

 

0.01 

Tax effect of non-GAAP adjustments

 

(0.02)

 

 

(0.04)

Business development, integration, and severance expense

 

(0.04)

 

 

0.04 

Adjusted diluted income per common share,

 

 

 

 

 

non-GAAP

$

0.03 

 

$

0.03 



 

 

 

 

 

Reconciliation of diluted weighted-average common shares outstanding

 

 

 

 

 

GAAP to diluted weighted-average common shares outstanding, non-GAAP:

 

 

 

 

 

Diluted weighted-average common shares outstanding, GAAP:

 

39,850 

 

 

38,738 

Adjustments:

 

 

 

 

 

Effect of dilutive stock options and awards

 

441 

 

 

615 

Diluted weighted-average common shares outstanding, non-GAAP

 

40,291 

 

 

39,353 











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