CryoLife Reports Record First Quarter Revenues of $26.7 Million
Operating income increases 26 percent in first quarter of 2009 compared to 2008
Operating income for the first quarter of 2009 increased 26 percent to
The Company's net income for 2009 was adversely affected by a normalized
effective income tax rate of 41 percent for the first quarter of 2009,
compared to 4 percent in the first quarter of 2008. The Company did not
record income tax expense at a normalized rate in 2008 due to the valuation
allowance on the Company's deferred tax assets during 2008. As a result, net
income for the first quarter of 2009 was
Tissue processing revenues for the first quarter of 2009 increased 1
percent to
BioGlue(R) Surgical Adhesive revenues were
U.S. BioGlue revenues were
Other medical device revenues for the first quarter of 2009 were
Total tissue processing and product gross margins were 64 percent and 63 percent for the first quarters of 2009 and 2008, respectively. Tissue processing gross margins for each of the first quarters of 2009 and 2008 were 45 percent.
General, administrative, and marketing expenses for the first quarter of
2009 were
Research and development expenses were
As of
"The Company continues to thrive and expand even in a very adverse world
economy, as witnessed by the Company's record revenues and operating income in
the first quarter of 2009," stated
2009 Financial Guidance
The Company is reiterating its guidance for the full year of 2009. The
Company's GAAP revenues are composed of tissue processing and product revenues
plus other revenues. The Company expects total revenues for the full year of
2009 to be between
Other revenues for 2009 may reach between
The Company expects general, administrative, and marketing expenses of
between
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
To listen to the live teleconference, please dial 201-689-8261 a few
minutes prior to
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
Founded in 1984,
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. 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,
there are limitations on our use of net operating loss carry-forwards, 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. These risks and
uncertainties include the risk factors detailed in our
CRYOLIFE, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except per share data)
Three Months Ended
March 31,
2009 2008
(Unaudited)
Revenues:
Preservation services $13,548 $13,424
Products 12,945 11,980
Other 195 164
Total revenues 26,688 25,568
Cost of preservation services and products:
Preservation services 7,491 7,318
Products 1,962 1,992
Total cost of preservation services
and products 9,453 9,310
Gross margin 17,235 16,258
Operating expenses:
General, administrative, and marketing 12,748 12,067
Research and development 1,026 1,445
Total operating expenses 13,774 13,512
Operating income 3,461 2,746
Interest expense 49 70
Interest income (43) (122)
Other expense (income), net 152 (82)
Income before income taxes 3,303 2,880
Income tax expense 1,354 115
Net income $ 1,949 $ 2,765
Income per common share:
Basic $ 0.07 $ 0.10
Diluted $ 0.07 $ 0.10
Weighted average common shares outstanding:
Basic 28,009 27,566
Diluted 28,230 28,002
CRYOLIFE, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)
Three Months Ended
March 31,
2009 2008
(Unaudited)
Revenues from:
Cardiac tissue $ 5,592 $ 6,238
Vascular tissue 7,871 6,859
Orthopaedic tissue 85 327
Total preservation services 13,548 13,424
BioGlue 11,764 11,887
HemoStase 1,110 --
Other medical devices 71 93
Total products 12,945 11,980
Other 195 164
Total revenues $26,688 $25,568
Revenues:
U.S. $22,744 $22,000
International 3,944 3,568
Total revenues $26,688 $25,568
March 31, December 31,
2009 2009
(Unaudited) (Audited)
Cash and cash equivalents, marketable
securities, $18,747 $17,763
at market, and restricted marketable securities
Receivables, net 15,166 13,999
Deferred preservation costs 35,769 34,913
Inventories 7,306 7,077
Restricted money market funds, long-term 5,000 5,000
Total assets 127,394 125,995
Shareholders' equity 102,209 99,326
For additional information about the company, visit
Media Contacts:
D. Ashley Lee
Executive Vice President, Chief Financial Officer and
Chief Operating Officer
Phone: 770-419-3355
Katie Brazel
Fleishman Hillard
Phone: 404-739-0150
SOURCE:
CONTACT:
Web Site: http://www.cryolife.com
(CRY)