Second Quarter and Recent Business Highlights:
- Achieved revenue of $89.3 million
in the second quarter of 2023 versus $80.3
million in the second quarter of 2022, an increase of 11% on
both a GAAP and non-GAAP constant currency basis
- Net loss was ($3.4) million or
($0.08) per share; non-GAAP net
income was $2.3 million or
$0.06 per share
- Achieved EBITDA of $9.2 million
in the second quarter of 2023; non-GAAP adjusted EBITDA increased
35% to $13.8 million in the second
quarter of 2023 compared to the second quarter of 2022
- Aortic stent graft revenues increased 19% on both a GAAP and
non-GAAP constant currency basis in the second quarter of 2023
compared to the second quarter of 2022
- On-X revenues increased 10% on a GAAP basis and 11% on a
non-GAAP constant currency basis in the second quarter of 2023
compared to the second quarter of 2022
- Received PerClot PMA approval and commenced shipping product to
Baxter
- Patient enrollment in the PERSEVERE clinical trial accelerated
with enrollment completion expected in the third quarter of
2023
ATLANTA, Aug. 3, 2023
/PRNewswire/ -- Artivion, Inc. (NYSE: AORT), a leading
cardiac and vascular surgery company focused on aortic disease,
today announced its financial results for the second quarter ended
June 30, 2023.
"Our second quarter results reflect the strength of our business
commercially, operationally, and financially. We delivered
double-digit constant currency revenue growth year-over-year for
the second consecutive quarter and remain on track to achieve or
exceed the revenue and EBITDA growth targets for this year. Our
exceptional second quarter performance was driven by year-over-year
aortic stent graft revenue growth of 19%, On-X revenue growth of
10%, tissue processing growth of 9%, and BioGlue growth of 4%. On a
constant currency basis, year-over-year aortic stent graft, On-X,
tissue processing, and BioGlue revenue growth were 19%, 11%, 9%,
and 4%, respectively. We also saw Asia
Pacific and Latin American revenue grow 23% and 21%,
respectively, and 23% and 24% on a constant currency basis,
compared to last year," said Pat
Mackin, Chairman, President, and Chief Executive
Officer.
Mr. Mackin added, "In addition to our strong commercial results,
we also obtained FDA approval for PerClot and, accordingly,
received the net $14.3 million FDA
approval milestone payment from Baxter. Immediately thereafter, we
also began shipping PerClot to Baxter, pursuant to the terms of our
agreement. Further, we had strong revenue growth in our aortic
stent graft product line, driven by accelerating productivity
levels at our German manufacturing facility. We improved patient
enrollment for our PERSEVERE trial evaluating AMDS, a simple,
elegant stent graft solution to treat aortic arch disease, and we
still anticipate completing enrollment in that trial in the third
quarter of this year.
Mr. Mackin concluded, "Given our solid execution in the first
half of 2023 and strong business momentum, we are now on a path to
meet or exceed our current year guidance, as well as to achieve our
2024 commitments to deliver double-digit compounded annual constant
currency revenue growth and adjusted EBITDA in excess of
$75.0 million."
Second Quarter 2023 Financial Results
Total revenues
for the second quarter of 2023 were $89.3
million, an increase of 11% on both a GAAP and non-GAAP
constant currency basis, both compared to the second quarter of
2022.
Net loss for the second quarter of 2023 was ($3.4) million, or ($0.08) per fully diluted common share, compared
to net loss of ($4.3) million, or
($0.11) per fully diluted common
share for the second quarter of 2022. Net loss for the second
quarter of 2023 includes pretax charges of $10.9 million related to contingent consideration
for the acquisition of AMDS and $5.0
million related to the final payment to Endospan under our
September 2019 Loan Agreement with
Endospan, partially offset by a net pretax gain of $14.3 million related to the PerClot PMA approval
milestone net payment. Non-GAAP net income for the second quarter
of 2023 was $2.3 million, or
$0.06 per fully diluted common share,
compared to non-GAAP net loss of ($1.3)
million, or ($0.03) per fully
diluted common share for the second quarter of 2022.
2023 Financial Outlook
Artivion is raising its revenue
guidance range and now expects to achieve constant currency revenue
growth of between 10% and 12%, compared to the previous range of 9%
and 12%, for the full year 2023 compared to 2022. The Company
expects revenues to be in a range of $342.0
million and $350.0 million,
compared to the previous range of $337.0
million and $348.0
million.
Additionally, Artivion continues to expect adjusted EBITDA, as
reported, to increase greater than 25% in 2023 compared to 2022,
resulting in adjusted EBITDA in excess of $52.0 million for 2023.
The Company's financial performance for 2023 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 general,
administrative, and marketing expenses. Investors should consider
this non-GAAP information in addition to, and not as a substitute
for, financial measures prepared in accordance with US 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 the impact of changes in
currency exchange. The Company's non-GAAP net income; non-GAAP
EBITDA; and non-GAAP general, administrative, and marketing results
exclude (as applicable) depreciation and amortization expense;
interest income and expense; stock-based compensation expense; loss
or gain on foreign currency revaluation; income tax expense or
benefit; corporate rebranding expense; business development,
integration, and severance income or expense; non-cash interest
expense; gain from sale of non-financial assets, and abandonment of
CardioGenesis cardiac laser therapy business. 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 impact of recent acquisitions,
non-cash expense related to amortization of previously acquired
tangible and intangible assets, and any related adjustments to
their carrying values. The Company has adjusted for the impact of
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, including the reconciliation of GAAP to non-GAAP
financial measures."
Webcast and Conference Call Information
The Company
will hold a teleconference call and live webcast later today,
August 3, 2023, at 4:30 p.m. ET to discuss the results, followed by
a question and answer session. To participate in the conference
call dial 201-689-8261 a few minutes prior to 4:30 p.m. ET. The teleconference replay will be
available approximately one hour following the completion of the
event and can be accessed by calling (toll free) 877-660-6853 or
201-612-7415. The conference number for the replay is 13739398.
The live webcast and replay can be accessed by going to the
Investors section of the Artivion website at www.Artivion.com and
selecting the heading Webcasts & Presentations.
About Artivion, Inc.
Headquartered in suburban
Atlanta, Georgia, Artivion, Inc.
is a medical device company focused on developing simple, elegant
solutions that address cardiac and vascular surgeons' most
difficult challenges in treating patients with aortic diseases.
Artivion's four major groups of products include: aortic stent
grafts, surgical sealants, On-X mechanical heart valves, and
implantable cardiac and vascular human tissues. Artivion markets
and sells products in more than 100 countries worldwide. For
additional information about Artivion, visit our website,
www.artivion.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. Such forward-looking statements reflect the
views of management at the time such statements are made. These
statements include our beliefs that we remain on track to achieve
or exceed the revenue and EBITDA growth targets for this year; and
we are now on a path to meet or exceed our current year guidance,
as well as to achieve our 2024 commitments to deliver double-digit
compounded annual constant currency revenue growth and adjusted
EBITDA in excess of $75.0 million.
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 agreements may not be achieved at all or
at the levels we had originally anticipated; the benefits
anticipated from our clinical trials may not be achieved or
achieved on our anticipated timeline; our products may not be able
to consistently retain their existing regulatory approvals or
special regulatory approvals in order to be commercialized;
products in our pipeline may not receive regulatory approval at all
or receive regulatory approval on our anticipated timelines; or our
products that obtain regulatory approval may not be adopted by the
market as much as we anticipate or at all. These risks and
uncertainties include the risk factors detailed in our Securities
and Exchange Commission filings, including our Form 10-K for the
year ended December 31, 2022 and our
Form 10-Q for the quarter ended June 31,
2023. Artivion does not undertake to update its
forward-looking statements, whether as a result of new information,
future events, or otherwise.
|
Artivion, Inc. and
Subsidiaries
Condensed
Consolidated Statements of Operations and Comprehensive
Loss
In Thousands, Except
Per Share Data
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
$
66,003
|
|
$
58,936
|
|
$
128,294
|
|
$
116,478
|
|
Preservation
services
|
23,248
|
|
21,404
|
|
44,186
|
|
41,075
|
|
Total
revenues
|
89,251
|
|
80,340
|
|
172,480
|
|
157,553
|
|
|
|
|
|
|
|
|
|
Cost of products and
preservation services:
|
|
|
|
|
|
|
|
|
Products
|
20,977
|
|
18,230
|
|
40,510
|
|
35,638
|
|
Preservation
services
|
10,190
|
|
9,938
|
|
20,159
|
|
19,024
|
|
Total cost of
products and preservation services
|
31,167
|
|
28,168
|
|
60,669
|
|
54,662
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
58,084
|
|
52,172
|
|
111,811
|
|
102,891
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General,
administrative, and marketing
|
57,241
|
|
38,983
|
|
107,606
|
|
77,938
|
|
Research and
development
|
7,418
|
|
8,648
|
|
14,641
|
|
18,776
|
|
Total operating
expenses
|
64,659
|
|
47,631
|
|
122,247
|
|
96,714
|
|
Gain from sale of
non-financial assets
|
(14,250)
|
|
—
|
|
(14,250)
|
|
—
|
|
Operating
income
|
7,675
|
|
4,541
|
|
3,814
|
|
6,177
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
6,356
|
|
4,101
|
|
12,452
|
|
8,049
|
|
Interest
income
|
(265)
|
|
(30)
|
|
(340)
|
|
(46)
|
|
Other expense,
net
|
4,241
|
|
3,770
|
|
3,278
|
|
3,903
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(2,657)
|
|
(3,300)
|
|
(11,576)
|
|
(5,729)
|
|
Income tax
expense
|
725
|
|
959
|
|
5,338
|
|
1,919
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(3,382)
|
|
$
(4,259)
|
|
$
(16,914)
|
|
$
(7,648)
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.08)
|
|
$
(0.11)
|
|
$
(0.41)
|
|
$
(0.19)
|
|
Diluted
|
$
(0.08)
|
|
$
(0.11)
|
|
$
(0.41)
|
|
$
(0.19)
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
40,755
|
|
40,031
|
|
40,595
|
|
39,941
|
|
Diluted
|
40,755
|
|
40,031
|
|
40,595
|
|
39,941
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(3,382)
|
|
$
(4,259)
|
|
$
(16,914)
|
|
$
(7,648)
|
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
1,826
|
|
(14,796)
|
|
5,442
|
|
(18,571)
|
|
Comprehensive
loss
|
$
(1,556)
|
|
$
(19,055)
|
|
$
(11,472)
|
|
$
(26,219)
|
|
Artivion, Inc. and
Subsidiaries
Condensed
Consolidated Balance Sheets
In
Thousands
|
|
June 30,
2023
|
|
December 31,
2022
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
48,775
|
|
$
39,351
|
|
Trade receivables,
net
|
64,806
|
|
61,820
|
|
Other
receivables
|
4,450
|
|
7,764
|
|
Inventories,
net
|
78,458
|
|
74,478
|
|
Deferred preservation
costs, net
|
48,302
|
|
46,371
|
|
Prepaid expenses and
other
|
19,107
|
|
17,550
|
|
Total current
assets
|
263,898
|
|
247,334
|
|
|
|
|
|
Goodwill
|
245,561
|
|
243,631
|
|
Acquired technology,
net
|
147,029
|
|
151,263
|
|
Operating lease
right-of-use assets, net
|
40,825
|
|
41,859
|
|
Property and equipment,
net
|
38,389
|
|
38,674
|
|
Other intangibles,
net
|
29,966
|
|
31,384
|
|
Deferred income
taxes
|
3,951
|
|
1,314
|
|
Other assets
|
8,242
|
|
7,339
|
|
Total
assets
|
$
777,861
|
|
$
762,798
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
10,455
|
|
$
12,004
|
|
Accrued
expenses
|
10,365
|
|
12,374
|
|
Accrued
compensation
|
12,792
|
|
13,810
|
|
Taxes
payable
|
10,641
|
|
2,635
|
|
Current maturities of
operating leases
|
4,037
|
|
3,308
|
|
Accrued procurement
fees
|
1,744
|
|
2,111
|
|
Current portion of
long-term debt
|
1,561
|
|
1,608
|
|
Other
liabilities
|
4,635
|
|
1,825
|
|
Total current
liabilities
|
56,230
|
|
49,675
|
|
|
|
|
|
Long-term
debt
|
306,109
|
|
306,499
|
|
Contingent
consideration
|
56,100
|
|
40,400
|
|
Non-current maturities
of operating leases
|
39,989
|
|
41,257
|
|
Deferred income
taxes
|
19,469
|
|
24,499
|
|
Deferred compensation
liability
|
6,541
|
|
5,468
|
|
Non-current finance
lease obligation
|
3,446
|
|
3,644
|
|
Other
liabilities
|
7,469
|
|
7,027
|
|
Total
liabilities
|
$
495,353
|
|
$
478,469
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Preferred
stock
|
—
|
|
—
|
|
Common stock (75,000
shares authorized, 42,443 and 41,830 shares issued and outstanding
in
2023 and 2022, respectively)
|
424
|
|
418
|
|
Additional paid-in
capital
|
347,030
|
|
337,385
|
|
Retained
deficit
|
(34,131)
|
|
(17,217)
|
|
Accumulated other
comprehensive loss
|
(16,167)
|
|
(21,609)
|
|
Treasury stock, at
cost, 1,487 shares as of June 30, 2023 and December 31,
2022
|
(14,648)
|
|
(14,648)
|
|
Total shareholders'
equity
|
282,508
|
|
284,329
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
777,861
|
|
$
762,798
|
|
Artivion, Inc. and
Subsidiaries
Condensed
Consolidated Statement of Cash Flows
In Thousands
(Unaudited)
|
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
Net cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
(16,914)
|
|
$
(7,648)
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash from operating
activities:
|
|
|
|
|
Change in fair value
of contingent consideration
|
15,700
|
|
(5,000)
|
|
Depreciation and
amortization
|
11,501
|
|
11,497
|
|
Non-cash
compensation
|
7,279
|
|
6,100
|
|
Fair value adjustment
of long-term loan
|
5,000
|
|
—
|
|
Non-cash lease
expense
|
3,631
|
|
3,803
|
|
Write-down of
inventories and deferred preservation costs
|
2,021
|
|
2,177
|
|
Deferred income
taxes
|
(8,073)
|
|
(1,611)
|
|
Gain from sale of
non-financial assets
|
(14,250)
|
|
—
|
|
Other
|
1,836
|
|
940
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts payable,
accrued expenses, and other liabilities
|
1,607
|
|
(5,677)
|
|
Receivables
|
655
|
|
(9,635)
|
|
Prepaid expenses and
other assets
|
(2,317)
|
|
(205)
|
|
Inventories and
deferred preservation costs
|
(6,921)
|
|
(3,653)
|
|
Net cash flows
provided by (used in) operating activities
|
755
|
|
(8,912)
|
|
|
|
|
|
Net cash flows from
investing activities:
|
|
|
|
|
Proceeds from sale of
non-financial assets, net
|
14,250
|
|
—
|
|
Capital
expenditures
|
(4,029)
|
|
(4,055)
|
|
Payments for Endospan
Agreement
|
(5,000)
|
|
—
|
|
Other
|
(986)
|
|
(939)
|
|
Net cash flows
provided by (used in) investing activities
|
4,235
|
|
(4,994)
|
|
|
|
|
|
Net cash flows from
financing activities:
|
|
|
|
|
Proceeds from
financing insurance premiums
|
3,558
|
|
—
|
|
Proceeds from exercise
of stock options and issuance of common stock
|
2,581
|
|
2,318
|
|
Principal payments on
short-term notes payable
|
(529)
|
|
—
|
|
Redemption and
repurchase of stock to cover tax withholdings
|
(563)
|
|
(1,739)
|
|
Repayment of term
loan
|
(1,381)
|
|
(1,370)
|
|
Other
|
(262)
|
|
(241)
|
|
Net cash flows
provided by (used in) financing activities
|
3,404
|
|
(1,032)
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
1,030
|
|
310
|
|
Increase (decrease)
in cash and cash equivalents
|
9,424
|
|
(14,628)
|
|
|
|
|
|
Cash and cash
equivalents beginning of period
|
39,351
|
|
55,010
|
|
Cash and cash
equivalents end of period
|
$
48,775
|
|
$
40,382
|
|
Artivion, Inc. and
Subsidiaries
Financial
Highlights
In Thousands
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Products:
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
28,359
|
|
$
23,833
|
|
$
54,509
|
|
$
49,339
|
|
On-X
|
17,946
|
|
16,255
|
|
35,602
|
|
30,626
|
|
Surgical
sealants
|
16,566
|
|
15,967
|
|
33,269
|
|
31,648
|
|
Other
|
3,132
|
|
2,881
|
|
4,914
|
|
4,865
|
|
Total
products
|
66,003
|
|
58,936
|
|
128,294
|
|
116,478
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
23,248
|
|
21,404
|
|
44,186
|
|
41,075
|
|
Total
revenues
|
$
89,251
|
|
$
80,340
|
|
$
172,480
|
|
$
157,553
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
US
|
$
44,425
|
|
$
40,953
|
|
$
85,758
|
|
$
78,688
|
|
International
|
44,826
|
|
39,387
|
|
$
86,722
|
|
78,865
|
|
Total
revenues
|
$
89,251
|
|
$
80,340
|
|
$
172,480
|
|
$
157,553
|
|
Artivion, Inc. and
Subsidiaries
Reconciliation of
GAAP to Non-GAAP
Revenues and
General, Administrative, and Marketing Expense
In Thousands
(Unaudited)
|
|
|
Revenues for
the
Three Months
Ended
June
30,
|
|
Percent
Change
From
Prior
Year
|
|
2023
|
|
2022
|
|
|
US
GAAP
|
|
US
GAAP
|
|
Exchange
rate effect
|
|
Constant
Currency
|
|
Constant
Currency
|
|
Products:
|
|
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
28,359
|
|
$
23,833
|
|
29
|
|
$
23,862
|
|
19 %
|
|
On-X
|
17,946
|
|
16,255
|
|
(72)
|
|
16,183
|
|
11 %
|
|
Surgical
sealants
|
16,566
|
|
15,967
|
|
(69)
|
|
15,898
|
|
4 %
|
|
Other
|
3,132
|
|
2,881
|
|
(4)
|
|
2,877
|
|
9 %
|
|
Total
products
|
66,003
|
|
58,936
|
|
(116)
|
|
58,820
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
23,248
|
|
21,404
|
|
(34)
|
|
21,370
|
|
9 %
|
|
Total
|
$
89,251
|
|
$
80,340
|
|
$
(150)
|
|
$
80,190
|
|
11 %
|
|
Revenues for
the
Six Months
Ended
June
30,
|
|
Percent
Change
From
Prior
Year
|
|
2023
|
|
2022
|
|
|
US
GAAP
|
|
US
GAAP
|
|
Exchange
rate effect
|
|
Constant
Currency
|
|
Constant
Currency
|
|
Products:
|
|
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
54,509
|
|
$
49,339
|
|
(1,209)
|
|
$
48,130
|
|
13 %
|
|
On-X
|
35,602
|
|
30,626
|
|
(219)
|
|
30,407
|
|
17 %
|
|
Surgical
sealants
|
33,269
|
|
31,648
|
|
(354)
|
|
31,294
|
|
6 %
|
|
Other
|
4,914
|
|
4,865
|
|
(19)
|
|
4,846
|
|
1 %
|
|
Total
products
|
128,294
|
|
116,478
|
|
(1,801)
|
|
114,677
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
44,186
|
|
41,075
|
|
(69)
|
|
41,006
|
|
8 %
|
|
Total
|
$
172,480
|
|
$
157,553
|
|
$
(1,870)
|
|
$
155,683
|
|
11 %
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of
G&A expense, GAAP to adjusted G&A,
non-GAAP:
|
|
|
|
|
|
|
|
|
General,
administrative, and marketing expense, GAAP
|
$
57,241
|
|
$
38,983
|
|
$
107,606
|
|
$
77,938
|
|
Business
development, integration, and severance expense (income)
|
11,101
|
|
(3,101)
|
|
16,098
|
|
(4,680)
|
|
Corporate
rebranding expense
|
69
|
|
289
|
|
218
|
|
1,172
|
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
160
|
|
—
|
|
160
|
|
—
|
|
Adjusted G&A,
non-GAAP
|
$
45,911
|
|
$
41,795
|
|
$
91,130
|
|
$
81,446
|
|
Artivion, Inc. and
Subsidiaries
Reconciliation of
GAAP to Non-GAAP
Adjusted
EBITDA
In Thousands
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of
net loss, GAAP to adjusted EBITDA, non-GAAP:
|
|
|
|
|
|
|
|
|
Net loss,
GAAP
|
$
(3,382)
|
|
$
(4,259)
|
|
$
(16,914)
|
|
$
(7,648)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Business
development, integration, and severance expense (income)
|
15,270
|
|
(3,101)
|
|
20,722
|
|
(4,680)
|
|
Interest
expense
|
6,356
|
|
4,101
|
|
12,452
|
|
8,049
|
|
Depreciation and
amortization expense
|
5,767
|
|
5,616
|
|
11,501
|
|
11,497
|
|
Stock-based
compensation expense
|
3,938
|
|
2,934
|
|
7,279
|
|
6,100
|
|
Income tax
expense
|
725
|
|
959
|
|
5,338
|
|
1,919
|
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
390
|
|
—
|
|
390
|
|
—
|
|
Corporate rebranding
expense
|
69
|
|
289
|
|
218
|
|
1,172
|
|
Interest
income
|
(265)
|
|
(30)
|
|
(340)
|
|
(46)
|
|
(Gain) loss on foreign
currency revaluation
|
(797)
|
|
3,754
|
|
(1,770)
|
|
3,887
|
|
Gain from sale of
non-financial assets
|
(14,250)
|
|
—
|
|
(14,250)
|
|
—
|
|
Adjusted EBITDA,
non-GAAP
|
$
13,821
|
|
$
10,263
|
|
$
24,626
|
|
$
20,250
|
|
Artivion Inc.
and Subsidiaries
Reconciliation of
GAAP to Non-GAAP
Net Income and
Diluted Income Per Common Share
In Thousands, Except
Per Share Data
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
GAAP:
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
$
(2,657)
|
|
$
(3,300)
|
|
$
(11,576)
|
|
$
(5,729)
|
|
Income tax
expense
|
725
|
|
959
|
|
5,338
|
|
1,919
|
|
Net
loss
|
$
(3,382)
|
|
$
(4,259)
|
|
$
(16,914)
|
|
$
(7,648)
|
|
|
|
|
|
|
|
|
|
Diluted loss per
common share
|
$
(0.08)
|
|
$
(0.11)
|
|
$
(0.41)
|
|
$
(0.19)
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding
|
40,755
|
|
40,031
|
|
40,595
|
|
39,941
|
|
|
|
|
|
|
|
|
|
Reconciliation of
loss before income taxes, GAAP to adjusted income
(loss), non-GAAP:
|
|
|
|
|
|
|
|
|
Loss before income
taxes, GAAP:
|
$
(2,657)
|
|
$
(3,300)
|
|
$
(11,576)
|
|
$
(5,729)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Business development,
integration, and severance expense (income)
|
15,270
|
|
(3,101)
|
|
20,722
|
|
(4,680)
|
|
Amortization
expense
|
3,806
|
|
3,905
|
|
7,687
|
|
7,989
|
|
Non-cash interest
expense
|
464
|
|
457
|
|
926
|
|
913
|
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
390
|
|
—
|
|
390
|
|
—
|
|
Corporate rebranding
expense
|
69
|
|
289
|
|
218
|
|
1,172
|
|
Gain from sale of
non-financial assets
|
(14,250)
|
|
—
|
|
(14,250)
|
|
—
|
|
Adjusted income
(loss) before income taxes, non-GAAP
|
3,092
|
|
(1,750)
|
|
4,117
|
|
(335)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) calculated at a tax rate of 25%
|
773
|
|
(438)
|
|
1,029
|
|
(84)
|
|
Adjusted net income
(loss), non-GAAP
|
$
2,319
|
|
$
(1,312)
|
|
$
3,088
|
|
$
(251)
|
|
|
|
|
|
|
|
|
|
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)
|
|
$
(0.11)
|
|
$
(0.41)
|
|
$
(0.19)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Business development,
integration, and severance expense (income)
|
0.37
|
|
(0.08)
|
|
0.50
|
|
(0.12)
|
|
Effect of 25% tax
rate
|
0.03
|
|
0.05
|
|
0.20
|
|
0.08
|
|
Amortization
expense
|
0.09
|
|
0.10
|
|
0.19
|
|
0.20
|
|
Non-cash interest
expense
|
0.01
|
|
0.01
|
|
0.02
|
|
0.02
|
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
0.01
|
|
—
|
|
0.01
|
|
—
|
|
Corporate rebranding
expense
|
—
|
|
0.01
|
|
0.01
|
|
0.03
|
|
Tax effect of non-GAAP
adjustments
|
(0.03)
|
|
(0.01)
|
|
(0.10)
|
|
(0.03)
|
|
Gain from sale of
non-financial assets
|
(0.34)
|
|
—
|
|
(0.34)
|
|
—
|
|
Adjusted diluted
income (loss) per common share, non-GAAP
|
$
0.06
|
|
$
(0.03)
|
|
$
0.08
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
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:
|
40,755
|
|
40,031
|
|
40,595
|
|
39,941
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Effect of dilutive
stock options and awards
|
419
|
|
—
|
|
444
|
|
—
|
|
Diluted
weighted-average common shares outstanding, non-GAAP
|
41,174
|
|
40,031
|
|
41,039
|
|
39,941
|
|
Contacts:
|
|
Artivion
|
|
Gilmartin Group
LLC
|
|
D. Ashley Lee
|
|
Brian Johnston / Lynn
Lewis
|
|
Executive Vice
President &
|
|
Phone:
332-895-3222
|
|
Chief Financial
Officer
|
|
investors@artivion.com
|
|
Phone:
770-419-3355
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/artivion-reports-second-quarter-2023-financial-results-301893123.html
SOURCE Artivion, Inc.
