Skip to main content

Market Overview

CryoLife Reports First Quarter 2021 Financial Results

Share:

ATLANTA, April 29, 2021 /PRNewswire/ --

First Quarter and Recent Business Highlights:

  • Achieved total revenues of $71.1 million in the first quarter 2021 versus $66.4 million in the first quarter of 2020, an increase of 7% on a GAAP basis and 3% on a non-GAAP proforma constant currency basis
  • Net loss was ($3.1) million, or ($0.08) per share, in the first quarter of 2021
  • Non-GAAP net income was $1.4 million, or $0.03 per share, in the first quarter of 2021

CryoLife, Inc. (NYSE:CRY), a leading cardiac and vascular surgery company focused on aortic disease, announced today its financial results for the first quarter ended March 31, 2021. 

"Despite the ongoing impact of COVID-19 on our business, we saw our business return to growth on both a GAAP and proforma constant currency basis in the first quarter.  Growth was driven by our new product launches outside of the U.S., a recovery in procedure volume in the U.S., an improved JOTEC inventory position, and our international expansion efforts, evidenced by double digit revenue growth in both Asia and Europe," commented Pat Mackin, Chairman, President, and Chief Executive Officer. 

"Additionally, we made progress on our regulatory strategy and are on-track to file PMAs for PerClot and PROACT Mitral later in 2021, which should help drive growth in 2022 and 2023.  We also made solid progress on enrollment in our PROACT Xa clinical trial and advanced R&D programs that should deliver additional growth opportunities beginning in 2024.  We are optimistic that the second half of 2021 will be the start of a prolonged period of growth for CryoLife."

First Quarter 2021 Financial Results
Total revenues for the first quarter of 2021 were $71.1 million, reflecting an increase of 7% on a GAAP basis and 3% on a non-GAAP proforma constant currency basis, both compared to the first quarter of 2020. 

Net loss for the first quarter of 2021 was $(3.1) million, or $(0.08) per fully diluted common share, compared to net loss of ($6.7) million, or ($0.18) per fully diluted common share for the first quarter of 2020.  Non-GAAP net income for the first quarter of 2021 was $1.4 million, or $0.03 per fully diluted common share, compared to non-GAAP net loss of ($2.7) million, or ($0.07) per fully diluted common share for the first quarter of 2020. 

The financial results reported in this earnings release are preliminary pending the Company's filing of its quarterly report on Form 10-Q, which it expects to file on April 30, 2021.

2021 Financial Outlook
Due to continued uncertainties resulting from the COVID-19 global pandemic, particularly in Europe, the Company is not issuing full year 2021 financial guidance at this time.

The Company's financial performance for 2021 is subject to the risks identified below.

Non-GAAP Financial Measures
This press release contains non-GAAP financial measures.  Investors should consider this non-GAAP information in addition to, and not as a substitute for, financial measures prepared in accordance with U.S. 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 net income and non-GAAP EBITDA 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 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 acquisitions, or non-cash expense related to amortization of previously acquired tangible and intangible assets.  The Company has excluded the impact of changes in currency exchange from certain revenues to evaluate 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.

Webcast and Conference Call Information
The Company will hold a teleconference call and live webcast later today, April 29, 2021 at 4:30 p.m. ET to discuss the results followed by a question and answer session.  To listen to the live teleconference, please dial 201-689-8261.  A replay of the teleconference will be available through May 6, 2021 and can be accessed by calling (toll free) 877-660-6853 or 201-612-7415.  The Conference ID for the replay is 13718912.

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

About CryoLife, Inc.
Headquartered in suburban Atlanta, Georgia, CryoLife is a leader in the manufacturing, processing, and distribution of medical devices and implantable tissues used in cardiac and vascular surgical procedures focused on aortic repair.  CryoLife markets and sells products in more than 100 countries worldwide.  For additional information about CryoLife, visit our website, www.cryolife.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.  Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release and reflect the view of management as of the date of this press release.  Such forward-looking statements reflect the views of management at the time such statements are made.  These statements include our beliefs that our PMAs for PerClot and PROACT Mitral, if approved, should help drive our growth in 2022 and 2023; our PROACT Xa clinical trial and advanced R&D programs, if successful, should deliver additional growth opportunities for us beginning in 2024; and the second half of 2021 will be the start of a prolonged period of growth for CryoLife. 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 distribution agreement may not be achieved and the continued effects of COVID-19, including decelerating vaccination or vaccine adoption rates, or government mandates implemented to address the effects of the pandemic 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 year ended December 31, 2020.  CryoLife does not assume any obligation, and expressly disclaims any duty to update any of its forward-looking statements, whether as a result of new information, future events, or otherwise.

 

CryoLife, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share data)

(Unaudited)










Three Months Ended


March 31,



2021



2020

Revenues:






Products

$

53,345


$

46,420

Preservation services


17,742



20,009

Total revenues


71,087



66,429







Cost of products and preservation services:






Products


14,911



13,040

Preservation services


8,338



9,218

Total cost of products and preservation services


23,249



22,258







Gross margin


47,838



44,171







Operating expenses:






General, administrative, and marketing


38,638



39,002

Research and development


7,754



6,356

Total operating expenses


46,392



45,358







Operating income (loss)


1,446



(1,187)







Interest expense


4,040



3,388

Interest income


(24)



(102)

Other expense, net


1,931



3,662







Loss before income taxes


(4,501)



(8,135)

Income tax benefit


(1,363)



(1,470)







Net loss

$

(3,138)


$

(6,665)







Loss per common share:






Basic

$

(0.08)


$

(0.18)

Diluted

$

(0.08)


$

(0.18)







Weighted-average common shares outstanding:






Basic


38,738



37,390

Diluted


38,738



37,390







Net loss

$

(3,138)


$

(6,665)

Other comprehensive loss:






Foreign currency translation adjustments


(10,290)



(4,463)

Comprehensive loss

$

(13,428)


$

(11,128)

 

CryoLife, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)








March 31,


December 31,


2021


2020


(Unaudited)




ASSETS






Current assets:






Cash and cash equivalents

$

56,552


$

61,412

Restricted securities


550



546

Trade receivables, net


48,320



45,964

Other receivables


2,416



2,788

Inventories


73,375



73,038

Deferred preservation costs


39,250



36,546

Prepaid expenses and other


15,220



14,295

Total current assets


235,683



234,589







Goodwill


253,950



260,061

Acquired technology, net


178,964



186,091

Other intangibles, net


39,274



40,966

Operating lease right-of-use assets, net


39,073



18,571

Property and equipment, net


31,497



33,077

Deferred income taxes


1,657



1,446

Other assets


14,734



14,603

Total assets

$

794,832


$

789,404







LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities:






Current portion of contingent consideration

$

16,800


$

16,430

Accrued compensation


10,644



10,192

Accounts payable


8,952



9,623

Accrued expenses


8,564



7,472

Accrued procurement fees


3,402



3,619

Current maturities of operating leases


1,548



5,763

Current portion of long-term debt


1,174



1,195

Taxes payable


3,229



2,808

Other liabilities


3,705



3,366

Total current liabilities


58,018



60,468







Long-term debt


310,058



290,468

Contingent consideration


44,100



43,500

Non-current maturities of operating leases


38,441



14,034

Deferred income taxes


29,272



34,713

Deferred compensation liability


5,436



5,518

Other liabilities


12,176



11,990

Total liabilities

$

497,501


$

460,691







Commitments and contingencies












Shareholders' equity:






Preferred stock


--



--

Common stock (issued shares of 40,585 in 2021 and 40,394 in 2020)


406



404

Additional paid-in capital


301,449



316,192

Retained earnings


13,671



20,022

Accumulated other comprehensive (loss) income


(3,547)



6,743

Treasury stock, at cost, 1,487 shares as of March 31, 2021
 and December 31, 2020, respectively


(14,648)



(14,648)

Total shareholders' equity


297,331



328,713







Total liabilities and shareholders' equity

$

794,832


$

789,404

 

CryoLife, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)








Three Months Ended


March 31,



2021



2020

Net cash flows from operating activities:






Net loss

$

(3,138)


$

(6,665)







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






Depreciation and amortization


6,006



4,898

Non-cash compensation


2,480



2,564

Non-cash lease expense


1,758



1,746

Write-down of inventories and deferred preservation costs


1,274



720

Change in fair value of contingent consideration


970



--

Deferred income taxes


(4,241)



(265)

Other


787



461

Changes in operating assets and liabilities:






Accounts payable, accrued expenses, and other liabilities


1,590



(2,489)

Prepaid expenses and other assets


(1,291)



982

Receivables


(3,301)



3,557

Inventories and deferred preservation costs


(5,933)



(2,874)

Net cash flows (used in) provided by operating activities


(3,039)



2,635







Net cash flows from investing activities:






Capital expenditures


(1,502)



(2,539)

Other


692



(364)

Net cash flows used in investing activities


(810)



(2,903)







Net cash flows from financing activities:






Proceeds from revolving line of credit


--



30,000

Proceeds from exercise of stock options and issuance of common stock


861



1,064

Redemption and repurchase of stock to cover tax withholdings


(1,813)



(1,712)

Repayment of debt


(701)



(691)

Other


(442)



(146)

Net cash flows (used in) provided by financing activities


(2,095)



28,515







Effect of exchange rate changes on cash, cash equivalents, and restricted securities


1,088



1,336

(Decrease) increase in cash, cash equivalents, and restricted securities


(4,856)



29,583







Cash, cash equivalents, and restricted securities beginning of period


61,958



34,294

Cash, cash equivalents, and restricted securities end of period

$

57,102


$

63,877

 

CryoLife, Inc. and Subsidiaries

Financial Highlights

(In thousands)








(Unaudited)


Three Months Ended


March 31,


2021


2020

Products:






Aortic stents and stent grafts

$

20,205


$

15,468

Surgical sealants


17,828



16,737

On-X


13,095



12,202

Other


2,217



2,013

Total products


53,345



46,420







Preservation services


17,742



20,009

Total revenues

$

71,087


$

66,429







Revenues:






U.S.

$

36,318


$

36,447

International


34,769



29,982

Total revenues

$

71,087


$

66,429

 

CryoLife, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP

Revenues and Adjusted EBITDA

(In thousands, except per share data)









(Unaudited)


Three Months Ended


March 31,


2021


2020

Growth
Rate

Reconciliation of total revenues, GAAP to







total revenues, non-GAAP:







Total revenues, GAAP

$

71,087


$

66,429

7%

Including AMDS prior to acquisition  


--



698


Total GAAP revenues including
AMDS


71,087



67,127

6%

Impact of changes in currency exchange


--



1,725


Total constant currency revenues including
AMDS, non-GAAP

$

71,087


$

68,852

3%














(Unaudited)


Three Months Ended


$


2021


2020

Reconciliation of operating income (loss), GAAP to






adjusted operating income, non-GAAP:






Operating income (loss)

$

1,446


$

(1,187)

Amortization expense


4,260



3,033

Business development, integration, and severance expense


1,470



823

Adjusted operating income, non-GAAP

$

7,176


$

2,669














(Unaudited)


Three Months Ended


March 31,


2021


2020

Reconciliation of net loss, GAAP to






adjusted EBITDA, non-GAAP:






Net loss, GAAP

$

(3,138)


$

(6,665)

Adjustments:






Depreciation and amortization expense


6,006



4,898

Interest expense


4,040



3,388

Stock-based compensation expense


2,480



2,564

Loss on foreign currency revaluation


1,886



3,663

Business development, integration, and severance expense


1,470



823

Corporate rebranding expense


15



321

Interest income


(24)



(102)

Income tax benefit


(1,363)



(1,470)

Adjusted EBITDA, non-GAAP

$

11,372


$

7,420

 

CryoLife, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP

Net Income (Loss) and Diluted Income (Loss) Per Common Share

(In thousands, except per share data)








(Unaudited)


Three Months Ended


March 31,



2021



2020

GAAP:






Loss before income taxes

$

(4,501)


$

(8,135)

Income tax benefit


(1,363)



(1,470)

Net loss

$

(3,138)


$

(6,665)







Diluted loss per common share:

$

(0.08)


$

(0.18)







Diluted weighted-average common






shares outstanding


38,738



37,390







Reconciliation of loss before income taxes,






GAAP to adjusted income (loss), non-GAAP






Loss before income taxes, GAAP:

$

(4,501)


$

(8,135)

Adjustments:






Amortization expense


4,260



3,033

Business development, integration, and severance expense


1,470



823

Non-cash interest expense


568



405

Corporate rebranding expense


15



321

Adjusted income (loss) before income taxes,






non-GAAP


1,812



(3,553)







Income tax expense (benefit) calculated at a






pro forma tax rate of 25%


453



(888)

Adjusted net income (loss), non-GAAP

$

1,359


$

(2,665)







Reconciliation of diluted loss per common share, GAAP






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






Diluted loss per common share, GAAP:

$

(0.08)


$

(0.18)

Adjustments:






Amortization expense


0.11



0.08

Business development, integration, and severance expense


0.04



0.02

Non-cash interest expense


0.01



0.01

Corporate rebranding expense


--



0.01

Tax effect of non-GAAP adjustments


(0.04)



(0.03)

Effect of 25% pro forma tax rate


(0.01)



0.02

Adjusted diluted income (loss) per common share,






non-GAAP

$

0.03


$

(0.07)







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:


38,738



37,390

Adjustments:






Stock options


326



--

Contingently returnable shares


289



--

Diluted weighted-average common shares outstanding, non-GAAP1


39,353



37,390



1- Diluted weighted-average common shares outstanding, non-GAAP does not include the dilutive impact of the Senior Convertible Notes

 

Contacts:


 

CryoLife

D. Ashley Lee

Executive Vice President, Chief Financial Officer and

Chief Operating Officer

Phone: 770-419-3355

 

Gilmartin Group LLC

Brian Johnston / Lynn Lewis

Phone: 631-807-1986

investors@cryolife.com 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/cryolife-reports-first-quarter-2021-financial-results-301280672.html

SOURCE CryoLife, Inc.

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com