CryoLife, Inc. Reports Revenues and Earnings for 1998
Revenues for the year were $60.7 million, an increase of 20% as compared with $50.6 million in 1997. Net income for the year 1998 was $6.5 million, an increase of 37% as compared with $4.7 million in 1997. Earnings per common share for 1998 were $0.54 basic and $0.53 diluted, up from $0.49 basic and $0.48 diluted in 1997.
Steven G. Anderson, President and Chief Executive Officer of CryoLife, said, "Earnings and net income were negatively affected in the fourth quarter of 1998 by one-time nonrecurring costs of $800,000 associated with the manufacture of CryoLife-O'Brien(R) and CryoLife-Ross(TM) stentless porcine valves and the SynerGraft(R) program. Offsetting these costs were tax savings resulting from the implementation of programs relating to research and development tax credits and state and local tax strategies."
Mr. Anderson also commented, "The Company's financial results in
1998 represent the fifth consecutive year of increasing revenues and
earnings since our initial public offering in 1993. We view this
five-year growth trend as an endorsement of our product
diversification strategy that we began ten years ago. The roll out of
our European introduction of BioGlue(R) Surgical Adhesive is on
schedule and is encouraging. Sales of BioGlue in the seven months
since its market introduction in Europe in May 1998 were $883,000."
Founded in 1984, CryoLife, Inc. is the leader in the development
and commercialization of living human tissue implantable devices for
use in cardiovascular, vascular and orthopaedic surgeries throughout
the United States and Canada. The Company's BioGlue(R) Surgical
Adhesive, CE marked in the European Union for use in vascular sealing
and repair, is distributed throughout Europe. The Company also
manufactures CryoLife-O'Brien(R) and CryoLife-Ross(R) stentless
porcine heart valves which are distributed within the European
Community.
Statements made in this press release which look forward in time involve risks and uncertainties and are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include the possibility that demand for the Company's cryopreserved tissues and sales of the CryoLife-O'Brien(R) stentless heart valves and BioGlue(R) Surgical Adhesive will not continue to increase, the ability of the Company to successfully implement its operating strategy, changes in economic cycles, competition from other companies, changes in laws and governmental regulations applicable to the Company and other risk factors detailed in the Company's Securities and Exchange Commission filings, including the Company's Prospectus dated March 30, 1998, contained in its Registration Statement on Form S-3 (No. 333-46545.)
The Company web site is:
http://www.cryolife.com
CRYOLIFE, INC.
Financial Highlights
(In thousands, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
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1998 1997 1998 1997
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(Unaudited)
Revenues $ 14,562 $ 12,949 $ 60,691 $ 50,571
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Costs and expenses:
Cryopreservation and
products 7,214 4,676 25,303 17,764
General, administrative
and marketing 5,890 5,284 23,907 20,548
Research and development 1,291 997 4,708 3,946
Interest (income) and
expense (557) 233 (820) 970
Other (106) (143) (1,078) (290)
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Total costs
and expenses 13,732 11,047 52,020 42,938
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Income before
income taxes 830 1,902 8,671 7,633
Income tax
expense (benefit) (534) 747 2,185 2,908
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Net income $ 1,364 $ 1,155 $ 6,486 $ 4,725
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Earnings per share:
Basic $ 0.11 $ 0.12 $ 0.54 $ 0.49
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Diluted $ 0.11 $ 0.12 $ 0.53 $ 0.48
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Weighted average
shares outstanding:
Basic 12,661 9,694 11,974 9,642
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Diluted 12,859 10,023 12,264 9,942
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CONTACT: CryoLife, Inc., Atlanta
Edwin B. Cordell, Jr., 800/438-8285