ATLANTA, Nov. 4, 2021 /PRNewswire/ --
Third Quarter and Recent Business Highlights:
- Achieved total revenues of $72.2
million in the third quarter 2021 versus $65.1 million in the third quarter of 2020, an
increase of 11% on a GAAP basis and 9% on a non-GAAP proforma
constant currency basis
- Net income was $10.6 million, or
$0.26 per share, in the third quarter
of 2021
- Non-GAAP net loss was ($1.2)
million, or ($0.03) per share,
in the third 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 third quarter ended
September 30, 2021.
"Despite meaningful headwinds from the Delta variant in the
third quarter, we still generated revenue growth on both a GAAP and
pro forma constant currency basis compared to the prior year and
compared to 2019, driven by our recent product launches and
strength in our U.S. On-X aortic valve business. We've also made
progress in driving growth across APAC and LATAM as we continue to
expand our commercial footprint and seek new regulatory approvals,"
said Pat Mackin, Chairman,
President, and Chief Executive Officer.
"Additionally, we have submitted PMAs to FDA for PerClot and
PROACT Mitral and anticipate receiving approvals for both in 2022.
We've also made significant progress with enrollment in our PROACT
Xa clinical trial and continue to advance several other programs
which are expected to deliver incremental growth beginning in
2024."
"Given our solid financial foundation, performance of our new
products, market expansion opportunities and a strong pipeline,
CryoLife is very well positioned now and for the future."
Third Quarter 2021 Financial Results
Total revenues
for the third quarter of 2021 were $72.2 million, reflecting an increase of 11%
on a GAAP basis and 9% on a non-GAAP proforma constant currency
basis, both compared to the third quarter of 2020.
Net income for the third quarter of 2021 was $10.6 million, or $0.26 per fully diluted common share, compared to
net loss of ($2.9) million, or
($0.08) per fully diluted common
share for the third quarter of 2020. Non-GAAP net loss for the
third quarter of 2021 was ($1.2) million, or ($0.03) per fully diluted common share, compared
to non-GAAP net income of $4.9
million, or $0.13 per fully
diluted common share for the third 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 November 5, 2021.
2021 Financial Outlook
The Company is maintaining its second half of 2021 proforma
constant currency growth outlook of between 7 and 10% compared to
the second half of 2019, but due to the strengthening dollar,
revenues for the full year are expected to be between $296.0 and $299.0 million
dollars and fourth quarter revenues are expected to be
between $76.5 and $79.5 million dollars, reflecting pro forma
constant currency growth of between 9.5% and 13.7% over the fourth
quarter of 2019. This forecast is based on our estimates of the
current and an anticipated diminishing impact of COVID-19 on our
business.
The Company's financial performance for the remainder of 2021
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 adjusted operating income. 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 revenues are adjusted for revenues of acquired and
divested product lines and the impact of changes in currency
exchange. The Company's non-GAAP net income, non-GAAP EBITDA, and
non-GAAP adjusted operating income results exclude (as applicable)
business development, integration, and severance expense; gain from
sale of non-financial assets; depreciation and amortization
expense; interest income and expense; non-cash interest expense;
loss (gain) 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 acquisitions, or non-cash expense
related to amortization of previously acquired tangible and
intangible assets. The Company has adjusted for the impact of
acquired and divested product lines and 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.
Webcast and Conference Call Information
The Company
will hold a teleconference call and live webcast later today,
November 4, 2021 at 4:30 p.m. ET
to discuss the results followed by a question and answer session.
To participate in the conference call dial 862-298-0702. An audio
replay will be available through November
11, 2021 and can be accessed by dialing (toll free)
877-660-6853 or 201-612-7415. The Conference ID for the replay is
13724263.
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. Forward-looking statements include statements related to
future regulatory approvals, the progress and future results of
clinical trials, future product launches, commercial footprint
expansion, market performance of our current and future products,
revenue and earnings growth related to current and newly introduced
products, our forecasted revenue and earnings, and the effects of
the COVID-19 pandemic on our business. 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, that the benefits
anticipated from our clinical trials may not be achieved or
achieved on our anticipated timelines, that our product candidates
may not receive regulatory approval or receive regulatory approval
on our anticipated timelines, that our products that obtain
regulatory approval may not be accepted by the market, 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.
Contacts:
|
|
CryoLife
|
Gilmartin Group
LLC
|
D. Ashley
Lee
|
Brian Johnston / Lynn
Lewis
|
Executive Vice
President, Chief Financial Officer and
|
Phone:
631-807-1986
|
Chief Operating
Officer
|
investors@cryolife.com
|
Phone:
770-419-3355
|
|
CryoLife, Inc. and
Subsidiaries
|
Condensed
Consolidated Statements of Operations and Comprehensive
Income/(Loss)
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
$
|
53,107
|
|
$
|
45,109
|
|
$
|
162,528
|
|
$
|
128,797
|
Preservation
services
|
|
19,100
|
|
|
20,022
|
|
|
56,914
|
|
|
56,534
|
Total
revenues
|
|
72,207
|
|
|
65,131
|
|
|
219,442
|
|
|
185,331
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products
and preservation services:
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
15,503
|
|
|
12,998
|
|
|
46,592
|
|
|
36,078
|
Preservation
services
|
|
8,915
|
|
|
9,001
|
|
|
26,710
|
|
|
26,060
|
Total cost of
products and preservation services
|
|
24,418
|
|
|
21,999
|
|
|
73,302
|
|
|
62,138
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
47,789
|
|
|
43,132
|
|
|
146,140
|
|
|
123,193
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
General,
administrative, and marketing
|
|
39,053
|
|
|
33,743
|
|
|
118,521
|
|
|
105,033
|
Research and
development
|
|
9,972
|
|
|
5,755
|
|
|
26,086
|
|
|
17,633
|
Total operating
expenses
|
|
49,025
|
|
|
39,498
|
|
|
144,607
|
|
|
122,666
|
Gain from sale of
non-financial assets
|
|
(15,923)
|
|
|
--
|
|
|
(15,923)
|
|
|
--
|
Operating
income
|
|
14,687
|
|
|
3,634
|
|
|
17,456
|
|
|
527
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
4,100
|
|
|
4,940
|
|
|
12,995
|
|
|
11,980
|
Interest
income
|
|
(18)
|
|
|
(13)
|
|
|
(60)
|
|
|
(181)
|
Other expense,
net
|
|
2,661
|
|
|
2,888
|
|
|
3,261
|
|
|
5,810
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
7,944
|
|
|
(4,181)
|
|
|
1,260
|
|
|
(17,082)
|
Income tax
benefit
|
|
(2,638)
|
|
|
(1,311)
|
|
|
(4,006)
|
|
|
(3,858)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
10,582
|
|
$
|
(2,870)
|
|
$
|
5,266
|
|
$
|
(13,224)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.27
|
|
|
(0.08)
|
|
$
|
0.13
|
|
|
(0.35)
|
Diluted
|
$
|
0.26
|
|
$
|
(0.08)
|
|
$
|
0.13
|
|
$
|
(0.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
39,086
|
|
|
37,912
|
|
|
38,924
|
|
|
37,608
|
Diluted
|
|
44,453
|
|
|
37,912
|
|
|
39,496
|
|
|
37,608
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
10,582
|
|
$
|
(2,870)
|
|
$
|
5,266
|
|
$
|
(13,224)
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(5,010)
|
|
|
8,698
|
|
|
(12,327)
|
|
|
8,669
|
Comprehensive
income (loss)
|
$
|
5,572
|
|
$
|
5,828
|
|
$
|
(7,061)
|
|
$
|
(4,555)
|
CryoLife, Inc. and
Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
64,587
|
|
$
|
61,412
|
Restricted
securities
|
|
538
|
|
|
546
|
Trade receivables,
net
|
|
49,682
|
|
|
45,964
|
Other
receivables
|
|
5,494
|
|
|
2,788
|
Inventories,
net
|
|
78,319
|
|
|
73,038
|
Deferred preservation
costs
|
|
42,619
|
|
|
36,546
|
Prepaid expenses and
other
|
|
16,104
|
|
|
14,295
|
Total current
assets
|
|
257,343
|
|
|
234,589
|
|
|
|
|
|
|
Goodwill
|
|
252,441
|
|
|
260,061
|
Acquired technology,
net
|
|
171,788
|
|
|
186,091
|
Operating lease
right-of-use assets, net
|
|
46,913
|
|
|
18,571
|
Other intangibles,
net
|
|
36,001
|
|
|
40,966
|
Property and
equipment, net
|
|
36,973
|
|
|
33,077
|
Deferred income
taxes
|
|
3,974
|
|
|
1,446
|
Other
assets
|
|
13,221
|
|
|
14,603
|
Total
assets
|
$
|
818,654
|
|
$
|
789,404
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current portion of
contingent consideration
|
$
|
17,600
|
|
$
|
16,430
|
Accounts
payable
|
|
9,528
|
|
|
9,623
|
Accrued
compensation
|
|
11,990
|
|
|
10,192
|
Accrued
expenses
|
|
9,091
|
|
|
7,472
|
Accrued procurement
fees
|
|
3,296
|
|
|
3,619
|
Taxes
payable
|
|
3,129
|
|
|
2,808
|
Current maturities of
operating leases
|
|
3,053
|
|
|
5,763
|
Current portion of
long-term debt
|
|
1,640
|
|
|
1,195
|
Other
liabilities
|
|
1,803
|
|
|
3,366
|
Total current
liabilities
|
|
61,130
|
|
|
60,468
|
|
|
|
|
|
|
Long-term
debt
|
|
307,765
|
|
|
290,468
|
Non-current
maturities of operating leases
|
|
45,765
|
|
|
14,034
|
Contingent
consideration
|
|
47,300
|
|
|
43,500
|
Deferred income
taxes
|
|
27,339
|
|
|
34,713
|
Deferred compensation
liability
|
|
5,571
|
|
|
5,518
|
Other
liabilities
|
|
12,243
|
|
|
11,990
|
Total
liabilities
|
$
|
507,113
|
|
$
|
460,691
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Preferred
stock
|
|
--
|
|
|
--
|
Common stock (issued
shares of 40,816 in 2021 and 40,394 in 2020)
|
|
408
|
|
|
404
|
Additional paid-in
capital
|
|
309,290
|
|
|
316,192
|
Retained
earnings
|
|
22,075
|
|
|
20,022
|
Accumulated other
comprehensive (loss) income
|
|
(5,584)
|
|
|
6,743
|
Treasury stock, at
cost, 1,487 shares as of September 30, 2021
and December
31, 2020, respectively
|
|
(14,648)
|
|
|
(14,648)
|
Total shareholders'
equity
|
|
311,541
|
|
|
328,713
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
818,654
|
|
$
|
789,404
|
CryoLife, Inc. and
Subsidiaries
|
Condensed
Consolidated Statement of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
|
2021
|
|
|
2020
|
Net cash flows
from operating activities:
|
|
|
|
|
|
Net income
(loss)
|
$
|
5,266
|
|
$
|
(13,224)
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash from operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
18,008
|
|
|
14,818
|
Non-cash
compensation
|
|
7,471
|
|
|
7,432
|
Non-cash lease
expense
|
|
5,566
|
|
|
5,324
|
Change in fair value
of contingent consideration
|
|
4,970
|
|
|
--
|
Non-cash interest
expense
|
|
2,025
|
|
|
2,261
|
Change in fair value
of long-term loan
|
|
--
|
|
|
4,949
|
Deferred income
taxes
|
|
(8,128)
|
|
|
(4,916)
|
Gain from sale of
non-financial assets
|
|
(15,923)
|
|
|
--
|
Other
|
|
4,665
|
|
|
1,631
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts payable,
accrued expenses, and other liabilities
|
|
65
|
|
|
3,230
|
Prepaid expenses and
other assets
|
|
(2,268)
|
|
|
(2,560)
|
Receivables
|
|
(8,032)
|
|
|
7,718
|
Inventories and
deferred preservation costs
|
|
(16,986)
|
|
|
(19,744)
|
Net cash flows
(used in) provided by operating activities
|
|
(3,301)
|
|
|
6,919
|
|
|
|
|
|
|
Net cash flows
from investing activities:
|
|
|
|
|
|
Proceeds from sale of
non-financial assets, net
|
|
19,000
|
|
|
--
|
Acquisition of
Ascyrus, net of cash acquisition
|
|
--
|
|
|
(59,643)
|
Payments for Endospan
agreements
|
|
--
|
|
|
(5,000)
|
Capital
expenditures
|
|
(10,524)
|
|
|
(5,171)
|
Other
|
|
(4)
|
|
|
(968)
|
Net cash flows
provided by (used in) investing activities
|
|
8,472
|
|
|
(70,782)
|
|
|
|
|
|
|
Net cash flows
from financing activities:
|
|
|
|
|
|
Proceeds from exercise
of stock options and issuance of common stock
|
|
3,531
|
|
|
2,079
|
Proceeds from issuance
of convertible debt
|
|
--
|
|
|
100,000
|
Proceeds from
revolving line of credit
|
|
--
|
|
|
30,000
|
Proceeds from
financing insurance premiums
|
|
--
|
|
|
2,816
|
Repayment of revolving
line of credit
|
|
--
|
|
|
(30,000)
|
Redemption and
repurchase of stock to cover tax withholdings
|
|
(1,898)
|
|
|
(1,768)
|
Payment of debt
issuance costs
|
|
(2,219)
|
|
|
(3,647)
|
Repayment of
debt
|
|
(2,397)
|
|
|
(3,727)
|
Other
|
|
(439)
|
|
|
(463)
|
Net cash flows
(used in) provided by financing activities
|
|
(3,422)
|
|
|
95,290
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
securities
|
|
1,418
|
|
|
(1,086)
|
Increase in cash,
cash equivalents, and restricted securities
|
|
3,167
|
|
|
30,341
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted securities beginning of
period
|
|
61,958
|
|
|
34,294
|
Cash, cash
equivalents, and restricted securities end of period
|
$
|
65,125
|
|
$
|
64,635
|
CryoLife, Inc. and
Subsidiaries
|
Financial
Highlights
|
(In
thousands)
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Products:
|
|
|
|
|
|
|
|
|
|
|
|
Aortic stents and
stent grafts
|
$
|
20,896
|
|
$
|
15,290
|
|
$
|
62,165
|
|
$
|
43,932
|
Surgical
sealants
|
|
16,544
|
|
|
15,811
|
|
|
52,236
|
|
|
44,985
|
On-X
|
|
14,022
|
|
|
12,067
|
|
|
41,843
|
|
|
34,385
|
Other
|
|
1,645
|
|
|
1,941
|
|
|
6,284
|
|
|
5,495
|
Total
products
|
|
53,107
|
|
|
45,109
|
|
|
162,528
|
|
|
128,797
|
|
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
|
19,100
|
|
|
20,022
|
|
|
56,914
|
|
|
56,534
|
Total
revenues
|
$
|
72,207
|
|
$
|
65,131
|
|
$
|
219,442
|
|
$
|
185,331
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
U.S.
|
$
|
36,205
|
|
$
|
36,332
|
|
$
|
111,529
|
|
$
|
103,171
|
International
|
|
36,002
|
|
|
28,799
|
|
|
107,913
|
|
|
82,160
|
Total
revenues
|
$
|
72,207
|
|
$
|
65,131
|
|
$
|
219,442
|
|
$
|
185,331
|
CryoLife, Inc. and
Subsidiaries
|
Reconciliation of
GAAP to Non-GAAP
|
Revenues and
Adjusted EBITDA
|
(In thousands,
except per share data)
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
Growth
Rate
|
|
2021
|
|
2020
|
Growth
Rate
|
Reconciliation
of total revenues, GAAP to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total revenues,
non-GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues,
GAAP
|
$
|
72,207
|
|
$
|
65,131
|
11%
|
|
$
|
219,442
|
|
$
|
185,331
|
18%
|
Including AMDS prior to
acquisition
|
|
--
|
|
|
691
|
|
|
|
--
|
|
|
2,088
|
|
Excluding PerClot post
sale
|
|
--
|
|
|
(498)
|
|
|
|
--
|
|
|
(498)
|
|
Impact of changes in
currency exchange
|
|
--
|
|
|
824
|
|
|
|
--
|
|
|
4,358
|
|
Total proforma
constant currency revenue, non-
GAAP
|
$
|
72,207
|
|
$
|
66,148
|
9%
|
|
$
|
219,442
|
|
$
|
191,279
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Reconciliation
of operating income, GAAP to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjusted
operating income, non-GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
14,687
|
|
$
|
3,634
|
|
|
$
|
17,456
|
|
$
|
527
|
|
Gain from sale of
non-financial assets
|
|
(15,923)
|
|
|
--
|
|
|
|
(15,923)
|
|
|
--
|
|
Amortization
expense
|
|
4,203
|
|
|
3,397
|
|
|
|
12,701
|
|
|
9,430
|
|
Operating business
development, integration, and
severance expense
|
|
1,309
|
|
|
1,056
|
|
|
|
6,138
|
|
|
2,532
|
|
Corporate rebranding
expense
|
|
461
|
|
|
--
|
|
|
|
523
|
|
|
321
|
|
Adjusted operating
income, non-GAAP
|
$
|
4,737
|
|
$
|
8,087
|
|
|
$
|
20,895
|
|
$
|
12,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Reconciliation
of net income (loss), GAAP to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjusted EBITDA,
non-GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss),
GAAP
|
$
|
10,582
|
|
$
|
(2,870)
|
|
|
$
|
5,266
|
|
$
|
(13,224)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
6,009
|
|
|
5,176
|
|
|
|
18,008
|
|
|
14,818
|
|
Interest
expense
|
|
4,100
|
|
|
4,940
|
|
|
|
12,995
|
|
|
11,980
|
|
Stock-based
compensation expense
|
|
2,876
|
|
|
2,358
|
|
|
|
7,471
|
|
|
7,432
|
|
Business development,
integration, and severance
expense
|
|
1,309
|
|
|
6,005
|
|
|
|
6,138
|
|
|
7,481
|
|
Loss (gain) on foreign
currency revaluation
|
|
2,576
|
|
|
(2,073)
|
|
|
|
3,097
|
|
|
846
|
|
Corporate rebranding
expense
|
|
461
|
|
|
--
|
|
|
|
523
|
|
|
321
|
|
Interest
income
|
|
(18)
|
|
|
(13)
|
|
|
|
(60)
|
|
|
(181)
|
|
Income tax
benefit
|
|
(2,638)
|
|
|
(1,311)
|
|
|
|
(4,006)
|
|
|
(3,858)
|
|
Gain from sale of
non-financial assets
|
|
(15,923)
|
|
|
--
|
|
|
|
(15,923)
|
|
|
--
|
|
Adjusted EBITDA,
non-GAAP
|
$
|
9,334
|
|
$
|
12,212
|
|
|
$
|
33,509
|
|
$
|
25,615
|
|
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)
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
$
|
7,944
|
|
$
|
(4,181)
|
|
$
|
1,260
|
|
$
|
(17,082)
|
Income tax
benefit
|
|
(2,638)
|
|
|
(1,311)
|
|
|
(4,006)
|
|
|
(3,858)
|
Net income
(loss)
|
$
|
10,582
|
|
$
|
(2,870)
|
|
$
|
5,266
|
|
$
|
(13,224)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income
(loss) per common share:
|
$
|
0.26
|
|
$
|
(0.08)
|
|
$
|
0.13
|
|
$
|
(0.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding
|
|
44,453
|
|
|
37,912
|
|
|
39,496
|
|
|
37,608
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of income (loss) before income taxes,
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to adjusted
(loss) income, non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes, GAAP:
|
$
|
7,944
|
|
$
|
(4,181)
|
|
$
|
1,260
|
|
$
|
(17,082)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
|
4,203
|
|
|
3,397
|
|
|
12,701
|
|
|
9,430
|
Gain from sale of
non-financial assets
|
|
(15,923)
|
|
|
--
|
|
|
(15,923)
|
|
|
--
|
Business development,
integration, and severance expense
|
|
1,309
|
|
|
6,005
|
|
|
6,138
|
|
|
7,481
|
Non-cash interest
expense
|
|
453
|
|
|
1,371
|
|
|
2,025
|
|
|
2,261
|
Corporate rebranding
expense
|
|
461
|
|
|
--
|
|
|
523
|
|
|
321
|
Adjusted (loss)
income before income taxes,
|
|
|
|
|
|
|
|
|
|
|
|
non-GAAP
|
|
(1,553)
|
|
|
6,592
|
|
|
6,724
|
|
|
2,411
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense calculated at a
|
|
|
|
|
|
|
|
|
|
|
|
pro forma tax rate of
25%
|
|
(388)
|
|
|
1,648
|
|
|
1,681
|
|
|
603
|
Adjusted net (loss)
income, non-GAAP
|
$
|
(1,165)
|
|
$
|
4,944
|
|
$
|
5,043
|
|
$
|
1,808
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of diluted income (loss) per common share, GAAP
|
|
|
|
|
|
|
|
|
|
|
|
to adjusted
diluted (loss) income per common share,
non-GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income
(loss) per common share, GAAP:
|
$
|
0.26
|
|
$
|
(0.08)
|
|
$
|
0.13
|
|
$
|
(0.35)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
|
0.11
|
|
|
0.09
|
|
|
0.33
|
|
|
0.25
|
Gain from sale of
non-financial assets
|
|
(0.41)
|
|
|
--
|
|
|
(0.40)
|
|
|
--
|
Business development,
integration, and severance expense
|
|
0.04
|
|
|
0.16
|
|
|
0.15
|
|
|
0.20
|
Non-cash interest
expense
|
|
0.01
|
|
|
0.04
|
|
|
0.05
|
|
|
0.06
|
Corporate rebranding
expense
|
|
0.01
|
|
|
--
|
|
|
0.01
|
|
|
0.01
|
Tax effect of non-GAAP
adjustments
|
|
0.06
|
|
|
(0.07)
|
|
|
(0.03)
|
|
|
(0.13)
|
Effect of 25% pro forma
tax rate
|
|
(0.11)
|
|
|
(0.01)
|
|
|
(0.11)
|
|
|
0.01
|
Adjusted diluted
(loss) income per common share,
|
|
|
|
|
|
|
|
|
|
|
|
non-GAAP
|
$
|
(0.03)
|
|
$
|
0.13
|
|
$
|
0.13
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
44,453
|
|
|
37,912
|
|
|
39,496
|
|
|
37,608
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
stock options and awards
|
|
(505)
|
|
|
445
|
|
|
--
|
|
|
543
|
Effect of convertible
senior notes
|
|
(4,862)
|
|
|
--
|
|
|
--
|
|
|
--
|
Diluted
weighted-average common shares outstanding, non-GAAP
|
|
39,086
|
|
|
38,357
|
|
|
39,496
|
|
|
38,151
|
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SOURCE CryoLife, Inc.