Third Quarter and Recent Business Highlights:
- Achieved revenue of $87.9 million
in the third quarter of 2023 versus $76.8
million in the third quarter of 2022, an increase of 14% on
a GAAP basis and 12% on a non-GAAP constant currency basis
- Net loss was ($9.8) million or
($0.24) per share; non-GAAP net
income was $749,000 or $0.02 per share
- Non-GAAP adjusted EBITDA increased 34% to $13.9 million in the third quarter of 2023
compared to the third quarter of 2022
- Aortic stent graft revenues increased 30% on a GAAP basis and
22% on a non-GAAP constant currency basis in the third quarter of
2023 compared to the third quarter of 2022
- On-X revenues increased 14% on a GAAP basis and 13% on a
non-GAAP constant currency basis in the third quarter of 2023
compared to the third quarter of 2022
- Nearing completion of enrollment in the PERSEVERE clinical
trial
ATLANTA, Nov. 2, 2023
/PRNewswire/ -- Artivion, Inc. (NYSE: AORT), a
leading cardiac and vascular surgery company focused on aortic
disease, today announced its financial results for the third
quarter ended September 30, 2023.
"Our team delivered across the board in the third quarter,
making substantial progress on our commercial, operational, and
financial goals and initiatives. We delivered double-digit constant
currency revenue growth year-over-year for the third consecutive
quarter and remain on track to achieve or exceed our revenue and
adjusted EBITDA growth targets for this year. Our robust third
quarter performance was driven by exceptional year-over-year aortic
stent graft revenue growth of 30%, strong On-X revenue growth of
14%, and solid tissue processing growth of 12%, while BioGlue
revenue decreased 7% due to ordering patterns in Europe in the third quarter of 2022. On a
constant currency basis, year-over-year aortic stent graft, On-X,
tissue processing, and BioGlue revenue growth were 22%, 13%, 12%,
and (8%), respectively. We also saw Latin American and Asia Pacific revenue grow 29% and 21%,
respectively, and on a constant currency basis, 22% and 21%,
compared to last year," said Pat
Mackin, Chairman, President, and Chief Executive
Officer.
Mr. Mackin added, "In addition to our strong commercial results,
we have enrolled 90 of the 93 total patients in the PERSEVERE
clinical trial putting us on track for 2025 approval. Additionally,
positive results presented at EACTS in two late breaking
presentations featuring PERSEVERE 30-day patient safety data and
real-world data from a 510 patient On-X low INR post approval study
should drive enhanced growth in both AMDS and On-X."
Mr. Mackin concluded, "Given our solid execution in the first
nine months of 2023 and strong business momentum, we are once again
increasing our top-line guidance and continue on a path to achieve
our commitments to deliver 2024 double-digit annual constant
currency revenue growth and adjusted EBITDA in excess of
$75.0 million."
Third Quarter 2023 Financial Results
Total revenues
for the third quarter of 2023 were $87.9
million, an increase of 14% on a GAAP basis and 12% on a
non-GAAP constant currency basis, both compared to the third
quarter of 2022.
Net loss for the third quarter of 2023 was ($9.8) million, or ($0.24) per fully diluted common share, compared
to net loss of ($13.7) million, or
($0.34) per fully diluted common
share for the third quarter of 2022. Net loss for the third quarter
of 2023 includes pretax charges of $6.2
million related to contingent consideration for the
acquisition of AMDS. Non-GAAP net income for the third quarter of
2023 was $749,000, or $0.02 per fully diluted common share, compared to
non-GAAP net loss of ($1.9) million,
or ($0.05) per fully diluted common
share for the third quarter of 2022.
2023 Financial Outlook
Artivion is raising its revenue
guidance range and now expects to achieve constant currency revenue
growth of between 11% and 12%, compared to the previous range of
10% and 12%, for the full year 2023 compared to 2022. The Company
expects revenues to be in a range of $349.0
million and $351.0 million,
compared to the previous range of $342.0
million and $350.0
million.
Additionally, Artivion continues to expect non-GAAP adjusted
EBITDA, as reported, to increase by more than 25% in 2023 compared
to 2022, resulting in non-GAAP 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 adjusted 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
adjusted 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 on November 2, 2023, at 4:30
p.m. ET to discuss its third quarter financial results,
followed by a question and answer session. To participate in the
conference call dial (862) 298-0702 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 13741667.
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 our revenue and non-GAAP adjusted EBITDA growth
targets for this year and to achieve AMDS PMA approval in 2025; the
results from the PERSEVERE 30-day patient safety data and the 510
patient On-X low INR post approval study have begun to drive
enhanced growth in both AMDS and On-X and will continue to do so;
given our solid execution in the first nine months of 2023 and
strong business momentum, we continue on a path to achieve our
commitments to deliver 2024 double-digit annual constant currency
revenue growth and non-GAAP adjusted EBITDA in excess of
$75.0 million; and that we now expect
to achieve for the full year 2023, constant currency revenue growth
of between 11% and 12%, compared to 2022; revenues of $349.0 million and $351.0
million, and an increase of non-GAAP adjusted EBITDA,
as reported, of more than 25% compared to 2022, resulting in
non-GAAP adjusted EBITDA in excess of $52.0 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 but not limited to 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; and the benefits anticipated from our
clinical trials may not be achieved or achieved on our anticipated
timelines. These risks and uncertainties also 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 September 30, 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
$
63,747
|
|
$
55,248
|
|
$
192,041
|
|
$
171,726
|
|
Preservation
services
|
24,107
|
|
21,590
|
|
68,293
|
|
62,665
|
|
Total
revenues
|
87,854
|
|
76,838
|
|
260,334
|
|
234,391
|
|
|
|
|
|
|
|
|
|
Cost of products and
preservation services:
|
|
|
|
|
|
|
|
|
Products
|
21,574
|
|
17,743
|
|
62,084
|
|
53,381
|
|
Preservation
services
|
10,010
|
|
10,351
|
|
30,169
|
|
29,375
|
|
Total cost of
products and preservation services
|
31,584
|
|
28,094
|
|
92,253
|
|
82,756
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
56,270
|
|
48,744
|
|
168,081
|
|
151,635
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General,
administrative, and marketing
|
51,093
|
|
41,051
|
|
158,699
|
|
118,989
|
|
Research and
development
|
6,421
|
|
11,799
|
|
21,062
|
|
30,575
|
|
Total operating
expenses
|
57,514
|
|
52,850
|
|
179,761
|
|
149,564
|
|
Gain from sale of
non-financial assets
|
—
|
|
—
|
|
(14,250)
|
|
—
|
|
Operating (loss)
income
|
(1,244)
|
|
(4,106)
|
|
2,570
|
|
2,071
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
6,603
|
|
4,805
|
|
19,055
|
|
12,854
|
|
Interest
income
|
(339)
|
|
(40)
|
|
(679)
|
|
(86)
|
|
Other expense,
net
|
1,911
|
|
3,661
|
|
5,189
|
|
7,564
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(9,419)
|
|
(12,532)
|
|
(20,995)
|
|
(18,261)
|
|
Income tax
expense
|
382
|
|
1,181
|
|
5,720
|
|
3,100
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(9,801)
|
|
$
(13,713)
|
|
$
(26,715)
|
|
$
(21,361)
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.24)
|
|
$
(0.34)
|
|
$
(0.65)
|
|
$
(0.53)
|
|
Diluted
|
$
(0.24)
|
|
$
(0.34)
|
|
$
(0.65)
|
|
$
(0.53)
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
40,881
|
|
40,115
|
|
40,691
|
|
39,999
|
|
Diluted
|
40,881
|
|
40,115
|
|
40,691
|
|
39,999
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(9,801)
|
|
$
(13,713)
|
|
$
(26,715)
|
|
$
(21,361)
|
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(5,010)
|
|
(16,895)
|
|
432
|
|
(35,466)
|
|
Comprehensive
loss
|
$
(14,811)
|
|
$
(30,608)
|
|
$
(26,283)
|
|
$
(56,827)
|
|
Artivion, Inc. and
Subsidiaries
Condensed
Consolidated Balance Sheets
In
Thousands
|
|
|
September
30,
2023
|
|
December 31,
2022
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
53,481
|
|
$
39,351
|
|
Trade receivables,
net
|
64,277
|
|
61,820
|
|
Other
receivables
|
3,993
|
|
7,764
|
|
Inventories,
net
|
78,792
|
|
74,478
|
|
Deferred preservation
costs, net
|
49,391
|
|
46,371
|
|
Prepaid expenses and
other
|
17,175
|
|
17,550
|
|
Total current
assets
|
267,109
|
|
247,334
|
|
|
|
|
|
Goodwill
|
242,936
|
|
243,631
|
|
Acquired technology,
net
|
142,675
|
|
151,263
|
|
Operating lease
right-of-use assets, net
|
43,345
|
|
41,859
|
|
Property and equipment,
net
|
37,428
|
|
38,674
|
|
Other intangibles,
net
|
29,398
|
|
31,384
|
|
Deferred income
taxes
|
3,705
|
|
1,314
|
|
Other assets
|
8,191
|
|
7,339
|
|
Total
assets
|
$
774,787
|
|
$
762,798
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
10,819
|
|
$
12,004
|
|
Accrued
compensation
|
13,861
|
|
13,810
|
|
Accrued
expenses
|
9,930
|
|
12,374
|
|
Taxes
payable
|
9,390
|
|
2,635
|
|
Current maturities of
operating leases
|
3,940
|
|
3,308
|
|
Accrued procurement
fees
|
1,860
|
|
2,111
|
|
Current portion of
long-term debt
|
1,552
|
|
1,608
|
|
Other
liabilities
|
3,607
|
|
1,825
|
|
Total current
liabilities
|
54,959
|
|
49,675
|
|
|
|
|
|
Long-term
debt
|
305,877
|
|
306,499
|
|
Contingent
consideration
|
62,300
|
|
40,400
|
|
Non-current maturities
of operating leases
|
42,862
|
|
41,257
|
|
Deferred income
taxes
|
19,514
|
|
24,499
|
|
Deferred compensation
liability
|
6,460
|
|
5,468
|
|
Non-current finance
lease obligation
|
3,272
|
|
3,644
|
|
Other
liabilities
|
7,568
|
|
7,027
|
|
Total
liabilities
|
$
502,812
|
|
$
478,469
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Preferred
stock
|
—
|
|
—
|
|
Common stock (75,000
shares authorized, 42,537 and 41,830 shares
issued and outstanding
in 2023 and 2022, respectively)
|
425
|
|
418
|
|
Additional paid-in
capital
|
351,307
|
|
337,385
|
|
Retained
deficit
|
(43,932)
|
|
(17,217)
|
|
Accumulated other
comprehensive loss
|
(21,177)
|
|
(21,609)
|
|
Treasury stock, at
cost, 1,487 shares as of September 30, 2023 and December 31,
2022
|
(14,648)
|
|
(14,648)
|
|
Total shareholders'
equity
|
271,975
|
|
284,329
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
774,787
|
|
$
762,798
|
|
Artivion, Inc. and
Subsidiaries
Condensed
Consolidated Statement of Cash Flows
In Thousands
(Unaudited)
|
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
Net cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
(26,715)
|
|
$
(21,361)
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash from operating
activities:
|
|
|
|
|
Change in fair value
of contingent consideration
|
21,900
|
|
(4,600)
|
|
Depreciation and
amortization
|
17,260
|
|
17,016
|
|
Non-cash
compensation
|
10,466
|
|
9,189
|
|
Non-cash lease
expense
|
5,467
|
|
5,656
|
|
Fair value adjustment
of long-term loan
|
5,000
|
|
—
|
|
Write-down of
inventories and deferred preservation costs
|
3,726
|
|
3,116
|
|
Deferred income
taxes
|
(7,250)
|
|
5,097
|
|
Gain from sale of
non-financial assets
|
(14,250)
|
|
—
|
|
Other
|
2,325
|
|
1,523
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Receivables
|
765
|
|
(10,900)
|
|
Accounts payable,
accrued expenses, and other liabilities
|
412
|
|
(2,103)
|
|
Prepaid expenses and
other assets
|
(527)
|
|
(1,788)
|
|
Inventories and
deferred preservation costs
|
(10,592)
|
|
(5,781)
|
|
Net cash flows
provided by (used in) operating activities
|
7,987
|
|
(4,936)
|
|
|
|
|
|
Net cash flows from
investing activities:
|
|
|
|
|
Proceeds from sale of
non-financial assets, net
|
14,250
|
|
—
|
|
Payments for Endospan
Agreement
|
(5,000)
|
|
—
|
|
Capital
expenditures
|
(5,503)
|
|
(6,924)
|
|
Other
|
(1,580)
|
|
(1,123)
|
|
Net cash flows
provided by (used in) investing activities
|
2,167
|
|
(8,047)
|
|
|
|
|
|
Net cash flows from
financing activities:
|
|
|
|
|
Proceeds from
financing insurance premiums
|
3,558
|
|
—
|
|
Proceeds from exercise
of stock options and issuance of common stock
|
3,467
|
|
3,344
|
|
Redemption and
repurchase of stock to cover tax withholdings
|
(563)
|
|
(1,791)
|
|
Principal payments on
short-term notes payable
|
(1,522)
|
|
—
|
|
Repayment of term
loan
|
(2,063)
|
|
(2,033)
|
|
Other
|
(382)
|
|
(300)
|
|
Net cash flows
provided by (used in) financing activities
|
2,495
|
|
(780)
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
1,481
|
|
(3,675)
|
|
Increase (decrease)
in cash and cash equivalents
|
14,130
|
|
(17,438)
|
|
|
|
|
|
Cash and cash
equivalents beginning of period
|
39,351
|
|
55,010
|
|
Cash and cash
equivalents end of period
|
$
53,481
|
|
$
37,572
|
|
Artivion, Inc. and
Subsidiaries
Financial
Highlights
In Thousands
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Products:
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
25,523
|
|
$
19,674
|
|
$
80,032
|
|
$
69,013
|
|
On-X
|
18,744
|
|
16,456
|
|
54,346
|
|
47,082
|
|
Surgical
sealants
|
16,234
|
|
17,374
|
|
49,503
|
|
49,022
|
|
Other
|
3,246
|
|
1,744
|
|
8,160
|
|
6,609
|
|
Total
products
|
63,747
|
|
55,248
|
|
192,041
|
|
171,726
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
24,107
|
|
21,590
|
|
68,293
|
|
62,665
|
|
Total
revenues
|
$
87,854
|
|
$
76,838
|
|
$
260,334
|
|
$
234,391
|
|
|
|
|
|
|
|
|
|
North
America
|
48,028
|
|
42,678
|
|
137,541
|
|
124,833
|
|
Europe, the Middle
East, and Africa
|
26,536
|
|
23,413
|
|
84,608
|
|
78,508
|
|
Asia Pacific
|
8,402
|
|
6,952
|
|
24,655
|
|
20,492
|
|
Latin
America
|
4,888
|
|
3,795
|
|
13,530
|
|
10,558
|
|
Total
revenues
|
$
87,854
|
|
$
76,838
|
|
$
260,334
|
|
$
234,391
|
|
Artivion, Inc. and
Subsidiaries
Reconciliation of
GAAP to Non-GAAP
Revenues
In Thousands
(Unaudited)
|
|
|
Revenues for
the
Three Months
Ended
September
30,
|
|
Percent
Change
From
Prior
Year
|
|
2023
|
|
2022
|
|
|
US
GAAP
|
|
US
GAAP
|
|
Exchange
Rate
Effect
|
|
Constant
Currency
|
|
Constant
Currency
|
|
Products:
|
|
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
25,523
|
|
$
19,674
|
|
$
1,193
|
|
$
20,867
|
|
22 %
|
|
On-X
|
18,744
|
|
16,456
|
|
90
|
|
16,546
|
|
13 %
|
|
Surgical
sealants
|
16,234
|
|
17,374
|
|
318
|
|
17,692
|
|
-8 %
|
|
Other
|
3,246
|
|
1,744
|
|
8
|
|
1,752
|
|
85 %
|
|
Total
products
|
63,747
|
|
55,248
|
|
1,609
|
|
56,857
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
24,107
|
|
21,590
|
|
(12)
|
|
21,578
|
|
12 %
|
|
Total
|
$
87,854
|
|
$
76,838
|
|
$
1,597
|
|
$
78,435
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
48,028
|
|
42,678
|
|
(46)
|
|
42,632
|
|
13 %
|
|
Europe, the Middle
East, and Africa
|
26,536
|
|
23,413
|
|
1,419
|
|
24,832
|
|
7 %
|
|
Asia Pacific
|
8,402
|
|
6,952
|
|
2
|
|
6,954
|
|
21 %
|
|
Latin
America
|
4,888
|
|
3,795
|
|
222
|
|
4,017
|
|
22 %
|
|
Total
|
$
87,854
|
|
$
76,838
|
|
$
1,597
|
|
$
78,435
|
|
12 %
|
|
Revenues for
the
Nine Months
Ended
September
30,
|
|
Percent
Change
From
Prior
Year
|
|
2023
|
|
2022
|
|
|
US
GAAP
|
|
US
GAAP
|
|
Exchange
Rate
Effect
|
|
Constant
Currency
|
|
Constant
Currency
|
|
Products:
|
|
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
80,032
|
|
$
69,013
|
|
$
(17)
|
|
$
68,996
|
|
16 %
|
|
On-X
|
54,346
|
|
47,082
|
|
(129)
|
|
46,953
|
|
16 %
|
|
Surgical
sealants
|
49,503
|
|
49,022
|
|
(36)
|
|
48,986
|
|
1 %
|
|
Other
|
8,160
|
|
6,609
|
|
(10)
|
|
6,599
|
|
24 %
|
|
Total
products
|
192,041
|
|
171,726
|
|
(192)
|
|
171,534
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
68,293
|
|
62,665
|
|
(81)
|
|
62,584
|
|
9 %
|
|
Total
|
$
260,334
|
|
$
234,391
|
|
$
(273)
|
|
$
234,118
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
137,541
|
|
124,833
|
|
(253)
|
|
124,580
|
|
10 %
|
|
Europe, the Middle
East, and Africa
|
84,608
|
|
78,508
|
|
(120)
|
|
78,388
|
|
8 %
|
|
Asia Pacific
|
24,655
|
|
20,492
|
|
(79)
|
|
20,413
|
|
21 %
|
|
Latin
America
|
13,530
|
|
10,558
|
|
179
|
|
10,737
|
|
26 %
|
|
Total
|
$
260,334
|
|
$
234,391
|
|
$
(273)
|
|
$
234,118
|
|
11 %
|
|
Artivion, Inc. and
Subsidiaries
Reconciliation of
GAAP to Non-GAAP
General,
Administrative, and Marketing Expense and Adjusted
EBITDA
In Thousands
(Unaudited)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of
G&A expense, GAAP to adjusted G&A,
non-GAAP:
|
|
|
|
|
|
|
|
|
General,
administrative, and marketing expense, GAAP
|
$
51,093
|
|
$
41,051
|
|
$
158,699
|
|
$
118,989
|
|
Business
development, integration, and severance expense (income)
|
6,363
|
|
864
|
|
22,461
|
|
(3,816)
|
|
Corporate
rebranding expense
|
65
|
|
251
|
|
283
|
|
1,423
|
|
Adjusted G&A,
non-GAAP
|
$
44,665
|
|
$
39,936
|
|
$
135,955
|
|
$
121,382
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of
net loss, GAAP to adjusted EBITDA, non-GAAP:
|
|
|
|
|
|
|
|
|
Net loss,
GAAP
|
$
(9,801)
|
|
$
(13,713)
|
|
$
(26,715)
|
|
$
(21,361)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Business
development, integration, and severance expense (income)
|
6,122
|
|
864
|
|
26,844
|
|
(3,816)
|
|
Interest
expense
|
6,603
|
|
4,805
|
|
19,055
|
|
12,854
|
|
Depreciation and
amortization expense
|
5,759
|
|
5,519
|
|
17,260
|
|
17,016
|
|
Stock-based
compensation expense
|
3,187
|
|
3,089
|
|
10,466
|
|
9,189
|
|
Income tax
expense
|
382
|
|
1,181
|
|
5,720
|
|
3,100
|
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
—
|
|
—
|
|
390
|
|
—
|
|
Corporate rebranding
expense
|
65
|
|
251
|
|
283
|
|
1,423
|
|
Loss on foreign
currency revaluation
|
1,882
|
|
3,668
|
|
112
|
|
7,555
|
|
Clinical trial
termination expense
|
—
|
|
4,741
|
|
—
|
|
4,741
|
|
Interest
income
|
(339)
|
|
(40)
|
|
(679)
|
|
(86)
|
|
Gain from sale of
non-financial assets
|
—
|
|
—
|
|
(14,250)
|
|
—
|
|
Adjusted EBITDA,
non-GAAP
|
$
13,860
|
|
$
10,365
|
|
$
38,486
|
|
$
30,615
|
|
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
GAAP:
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
$
(9,419)
|
|
$
(12,532)
|
|
$
(20,995)
|
|
$
(18,261)
|
|
Income tax
expense
|
382
|
|
1,181
|
|
5,720
|
|
3,100
|
|
Net
loss
|
$
(9,801)
|
|
$
(13,713)
|
|
$
(26,715)
|
|
$
(21,361)
|
|
|
|
|
|
|
|
|
|
Diluted loss per
common share
|
$ (0.24)
|
|
$ (0.34)
|
|
$ (0.65)
|
|
$ (0.53)
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding
|
40,881
|
|
40,115
|
|
40,691
|
|
39,999
|
|
|
|
|
|
|
|
|
|
Reconciliation of
loss before income taxes, GAAP to adjusted income (loss),
non-GAAP:
|
|
|
|
|
|
|
|
|
Loss before income
taxes, GAAP:
|
$
(9,419)
|
|
$
(12,532)
|
|
$
(20,995)
|
|
$
(18,261)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Business development,
integration, and severance expense (income)
|
6,122
|
|
864
|
|
26,844
|
|
(3,816)
|
|
Amortization
expense
|
3,766
|
|
3,686
|
|
11,453
|
|
11,675
|
|
Non-cash interest
expense
|
465
|
|
459
|
|
1,391
|
|
1,372
|
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
—
|
|
—
|
|
390
|
|
—
|
|
Corporate rebranding
expense
|
65
|
|
251
|
|
283
|
|
1,423
|
|
Clinical trial
termination expense
|
—
|
|
4,741
|
|
—
|
|
4,741
|
|
Gain from sale of
non-financial assets
|
—
|
|
—
|
|
(14,250)
|
|
—
|
|
Adjusted income
(loss) before income taxes, non-GAAP
|
999
|
|
(2,531)
|
|
5,116
|
|
(2,866)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) calculated at a tax rate of 25%
|
250
|
|
(633)
|
|
1,279
|
|
(717)
|
|
Adjusted net income
(loss), non-GAAP
|
$
749
|
|
$
(1,898)
|
|
$
3,837
|
|
$
(2,149)
|
|
|
|
|
|
|
|
|
|
Reconciliation of
diluted loss per common share, GAAP to adjusted
diluted income
(loss) per common share, non-GAAP:
|
|
|
|
|
|
|
|
|
Diluted loss per
common share, GAAP:
|
$
(0.24)
|
|
$
(0.34)
|
|
$
(0.65)
|
|
$
(0.53)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Business development,
integration, and severance expense (income)
|
0.15
|
|
0.03
|
|
0.65
|
|
(0.09)
|
|
Amortization
expense
|
0.09
|
|
0.09
|
|
0.28
|
|
0.29
|
|
Non-cash interest
expense
|
0.01
|
|
0.01
|
|
0.03
|
|
0.03
|
|
Abandonment of
CardioGenesis cardiac laser therapy business
|
—
|
|
—
|
|
0.01
|
|
—
|
|
Corporate rebranding
expense
|
—
|
|
—
|
|
0.01
|
|
0.03
|
|
Clinical trial
termination expense
|
—
|
|
0.12
|
|
—
|
|
0.12
|
|
Tax effect of non-GAAP
adjustments
|
(0.06)
|
|
(0.06)
|
|
(0.17)
|
|
(0.09)
|
|
Gain from sale of
non-financial assets
|
—
|
|
—
|
|
(0.34)
|
|
—
|
|
Effect of 25% tax
rate
|
0.07
|
|
0.10
|
|
0.27
|
|
0.19
|
|
Adjusted diluted
income (loss) per common share, non-GAAP
|
$
0.02
|
|
$
(0.05)
|
|
$
0.09
|
|
$
(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:
|
40,881
|
|
40,115
|
|
40,691
|
|
39,999
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Effect of dilutive
stock options and awards
|
662
|
|
—
|
|
512
|
|
—
|
|
Diluted
weighted-average common shares outstanding, non-GAAP
|
41,543
|
|
40,115
|
|
41,203
|
|
39,999
|
|
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-third-quarter-2023-financial-results-301976324.html
SOURCE Artivion, Inc.
