CryoLife, Inc. Reports Record Revenues for 1999 First Quarter; Product and Service Diversification on Track
Revenues for the first quarter of 1999 were $16.3 million, a
first quarter record and an increase of 12% as compared with
$14.6 million in the same period in 1998. Net income for the quarter
ended March 31, 1999 was $1.4 million compared with $1.2 million in
the first quarter of 1998. Earnings per common share for first quarter
1999 were $0.11 basic and diluted on 12.5 and 12.7 million shares,
respectively, versus $0.12 basic and diluted on 9.7 and 10 million
shares, respectively, in the same period in 1998.
Steven G. Anderson, President and Chief Executive Officer of
CryoLife, said, "Net income was affected by a decline in allograft
heart valve preservation revenues, principally in pulmonary valves,
when compared with the first quarter of last year. We were very
pleased with the 39% increase in vascular tissue preservation revenues
and the 33% increase in orthopaedic tissue preservation revenues
compared with the first quarter a year ago, which we believe confirms
the fact that our diversification strategy is working."
The Company stated that vascular tissue preservation accounted
for 30% of the Company's revenues, orthopaedic tissue preservation
generated 15% of revenues, and human heart valve preservation revenues
accounted for 42%. Also, the Company indicated that it believes that
the early success and acceptance of its BioGlue(R) surgical adhesive
will enhance its diversification strategy.
On April 19th, the Company announced a lifetime limited warranty
on allograft heart valves for freedom from valve-related endocarditis
and thromboembolic events. In addition, on April 21st, the Company's
BioGlue surgical adhesive was the subject of a paper presented by
Dr. Steven R. Gundry of Loma Linda Medical Center at the 79th annual
meeting of the American Association of Thoracic Surgeons in
New Orleans. The paper highlighted the results of experimental cardiac
bypass surgeries to reconnect saphenous vein grafts and internal
mammary arteries to goat hearts using a sutureless technique and
BioGlue surgical adhesive. Subsequent to this experimental surgery,
the connected vessels are open and appear normal at 12 months.
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 and
pulmonary sealing and repair, is distributed throughout Europe. The
Company also manufactures CryoLife-O'Brien(R) and CryoLife-Ross(TM)
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 risk that the Company
may not be able to continue to diversify its product and service mix,
or even if successful, that the Company may continue to be dependent
on one or more lines of business, that BioGlue surgical adhesive will
not perform in humans as it has in animals or that unforeseen
complications may arise subsequent to the application of BioGlue
surgical adhesive, the possibility that the application of BioGlue
surgical adhesive to coronary bypasses in humans could involve
unanticipated costs and greater skill levels or more invasive
procedures than currently anticipated, 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 per share data)
Three Months Ended
March 31,
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1999 1998
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(Unaudited)
Revenues $16,325 $14,561
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Costs and expenses:
Cryopreservation and products 7,371 5,481
General, administrative and marketing 6,170 5,827
Research and development 1,074 1,011
Interest expense 119 430
Interest income (425) --
Other (44) (64)
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Total costs and expenses 14,265 12,685
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Income before income taxes 2,060 1,876
Income tax expense (benefit) 680 704
Net income $ 1,380 $ 1,172
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Earnings per share:
Basic $ 0.11 $ 0.12
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Diluted $ 0.11 $ 0.12
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Weighted average shares outstanding:
Basic 12,497 9,739
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Diluted 12,680 10,077
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CONTACT: CryoLife Inc.
Edwin B. Cordell Jr., 800/438-8285