IRVINE, Calif., May 4, 2017 /PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX, CYRXW), the world’s leading cryogenic logistics company dedicated to the life sciences industry, today announced financial results for the first quarter ended March 31, 2017.
“2017 began with strong momentum as we are reporting robust year-over-year revenue growth of 74%,” commented Jerrell Shelton, Cryoport, Inc.'s Chief Executive Officer. “The quarter’s results were driven by extraordinary growth in our core business of providing cold chain logistics solutions to biopharma clients, which saw revenue grow 100% year-over-year and 31% sequentially. Our sales and marketing team continues to make excellent progress expanding our footprint as we secured 27 new clients and 14 new clinical trial programs, further strengthening our pipeline.”
“Cryoport’s success is being mainly fueled by growth in the regenerative medicine market, where the advancement of CAR T-cell therapies is revolutionizing treatment options for a multitude of health issues, including cancers, congenital diseases and trauma. These therapies rely on our state-of-the-art cryogenic logistic solutions as the only effective method of maintaining efficacy when they are transported and stored, making Cryoport a strategic concern in the design and implementation of clinical trials and the delivery of commercial products. With our stronger balance sheet, we are now well-capitalized to scale our solutions as more regenerative medicines approach commercialization and require significantly more logistics support and services. With the first two CAR T-cell therapies expected to receive FDA approval this year to commence commercial sales, the opportunity to build significant value for Cryoport’s shareholders is obvious,” continued Mr. Shelton.
Mr. Shelton concluded, “Biopharma revenue now accounts for 75% of total revenues and remains our largest growth opportunity; however, I am also pleased to report strength across all Cryoport’s markets. Reproductive medicine revenue increased 26% year-over-year driven by strong domestic demand. Animal health revenue increased 28% year-over-year as we on-boarded new clients. Our strong start for 2017 is just the beginning of the tremendous opportunity ahead of us, as we enter this pivotal stage in our development.”
Market Highlights:
Biopharma
- Biopharma revenue increased by 100% compared to the prior year quarter
- 27 new Biopharma clients and 14 new clinical trial programs, which added to our robust pipeline during the first three months of 2017
- 139 clinical trials are now being supported by Cryoport, with 17 in Phase III
Reproductive Medicine
- Reproductive Medicine revenue increased by 26% for the first quarter compared to the same quarter last year, led by a 52% increase in the U.S. market, which was partially offset by a decline in international revenue of 12%. International revenue continues to be impacted by the restriction of reproductive tourism in certain countries.
Animal Health
- Driven by new client additions, revenue from the Animal Health market was up 28% in the first quarter compared to the same quarter last year.
Overall Financial Results:
- Revenue increased 74% to $2.7 million for the first quarter ended March 31, 2017, compared with the same period in the prior year. This growth was driven by an overall increase in our number of clients, complemented by annual pricing adjustments and expansion from current clients.
- Gross margin for the first quarter ended March 31, 2017 was 46% compared to 37% for the same three-month period in the prior year, driven by increased business volume, pricing adjustments and cost controls.
- Operating costs and expenses decreased by $183,000 for the first quarter ended March 31, 2017 due to lower non-cash stock compensation expenses, salaries and associated employee costs and expense control.
- GAAP net loss for the first quarter ended March 31, 2017 was $1.8 million, down 34% compared to $2.7 million in the same three-month period in the prior year. GAAP net loss attributable to common stockholders for the first quarter ended March 31, 2017 was $1.8 million, or $0.10 per share, compared with $2.8 million, or $0.26 per share, in the same three-month period in the prior year.
- Adjusted EBITDA for the first quarter ended March 31, 2017 was ($867,000), a reduction of 51% compared to ($1.8 million) in the same three-month period in the prior year.
- The Company reported $14.5 million in cash and cash equivalents as of March 31, 2017, compared to $4.5 million as of Fiscal Year ended December 31, 2016. The increase in cash includes net proceeds of $11.4 million received from an underwritten public offering on March 31, 2017.
Further information on Cryoport’s results are included on the attached unaudited condensed consolidated balance sheets and statements of operations, and a further explanation of Cryoport’s financial performance will be provided in Cryoport’s quarterly report on Form 10-Q for the three months ended March 31, 2017, which will be filed with the Securities and Exchange Commission (“SEC”) today, May 4, 2017. The full report will be available on the SEC Filings section of the Investor Relations section of the Company’s website at www.cryoport.com.
Conference Call
The Company will host a conference call at 4:30 pm ET on May 4, 2017 to review its financial results and business outlook. Cryoport will provide an update on revenue from its three main lines of business Biopharma, Animal Health and Reproductive Medicine. Management will also report on new client activities and provide a general business outlook.
Participants should call 1-855-327-6837 (United States) or 1-631-891-4304 (International) and request the “Cryoport call.” A live audio webcast of the call and slide deck will also be available on the Investor Relations section of the Company’s website at www.cryoport.com or at this link. Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.
An archive of the webcast will be available approximately three hours after completion of the live event and will be accessible on the Investor Relations section of the Company’s website at www.cryoport.com for a limited time. To access the replay of the webcast, please follow this link. A dial-in replay of the call will also be available to those interested until May 11, 2017. To access the replay, dial 1- 844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay pin number: 10002860.
About Cryoport, Inc.
Cryoport is the premier provider of cryogenic logistics solutions to the life sciences industry through its purpose-built proprietary packaging, information technology and specialized cold chain logistics expertise. The Company provides leading edge logistics solutions for biologic materials, such as immunotherapies, stem cells, CAR-T cells and reproductive cells for clients worldwide. Cryoport actively supports points-of-care, CRO’s, central laboratories, pharmaceutical companies, contract manufacturers and university researchers. For more information, visit www.cryoport.com.
Forward Looking Statements
Statements in this news release which are not purely historical, including statements regarding Cryoport, Inc.'s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that the Company’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic conditions, trends in the products markets, variations in the Company’s cash flow, market acceptance risks, and technical development risks. The Company’s business could be affected by a number of other factors, including the risk factors listed from time to time in the Company’s SEC reports including, but not limited to, the Transition Report on Form 10-K for the nine months ended December 31, 2016 filed with the SEC. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Cryoport, Inc. disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
Cryoport, Inc. and Subsidiary | ||||||
Consolidated Statements of Operations | ||||||
(unaudited) | ||||||
Three Months Ended | ||||||
2017 | 2016 | |||||
Revenues | $ 2,712,234 | $ 1,555,545 | ||||
Cost of revenues | 1,458,737 | 973,738 | ||||
Gross margin | 1,253,497 | 581,807 | ||||
Operating costs and expenses: | ||||||
General and administrative | 1,703,032 | 1,814,421 | ||||
Sales and marketing | 1,069,935 | 1,247,026 | ||||
Engineering and development | 249,843 | 144,478 | ||||
Total operating costs and expenses | 3,022,810 | 3,205,925 | ||||
Loss from operations | (1,769,313) | (2,624,118) | ||||
Other expense: | ||||||
Interest expense | (15,667) | (81,194) | ||||
Other expense, net | - | (4,872) | ||||
Loss before provision for income taxes | (1,784,980) | (2,710,184) | ||||
Provision for income taxes | (4,231) | - | ||||
Net loss | (1,789,211) | (2,710,184) | ||||
Undeclared cumulative preferred dividends | - | (75,460) | ||||
Net loss attributable to common stockholders | $ (1,789,211) | $ (2,785,644) | ||||
Net loss per share attributable to common stockholders - basic and diluted | $ (0.10) | $ (0.26) | ||||
Weighted average shares outstanding - basic and diluted | 17,604,283 | 10,601,311 | ||||
Cryoport, Inc. and Subsidiary | |||||
Condensed Consolidated Balance Sheets | |||||
March 31, | December 31, | ||||
2017 | 2016 | ||||
(unaudited) | |||||
Current Assets: | |||||
Cash and cash equivalents | $ 14,532,860 | $ 4,524,529 | |||
Accounts receivable, net | 1,467,849 | 1,195,479 | |||
Inventories | 70,960 | 89,499 | |||
Prepaid expenses and other current assets | 321,419 | 286,919 | |||
Total current assets | 16,393,088 | 6,096,426 | |||
Property and equipment, net | 2,129,397 | 1,647,104 | |||
Intangible assets, net | 15,199 | 5,000 | |||
Deposits | 363,403 | 363,403 | |||
Total assets | $ 18,901,087 | $ 8,111,933 | |||
Current liabilities: | |||||
Accounts payable and other accrued expenses | $ 1,656,708 | $ 1,160,299 | |||
Accrued compensation and related expenses | 413,621 | 419,034 | |||
Related party notes payable and accrued interest, net of discount | 563,842 | 651,934 | |||
Total current liabilities | 2,634,171 | 2,231,267 | |||
Deferred rent liability | 199,359 | 200,264 | |||
Total liabilities | 2,833,530 | 2,431,531 | |||
Total stockholders’ equity | 16,067,557 | 5,680,402 | |||
Total liabilities and stockholders’ equity | $ 18,901,087 | $ 8,111,933 | |||
Note Regarding Use of Non-GAAP Financial Measures
This news release contains non-GAAP financial measures as defined in Regulation G of the Securities Exchange Act of 1934. These financial measures are not calculated in accordance with generally accepted accounting principles (GAAP) and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes the following non-GAAP financial measure, adjusted EBITDA, to provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management and the Board of Directors utilize these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company’s GAAP financials, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company’s ongoing operating results, including results of operations, against investor and analyst financial models, identifying trends in the Company’s underlying business and performing related trend analyses, and they provide a better understanding of how management plans and measures the Company’s underlying business.
Cryoport, I |
