Second Quarter Highlights:
- Achieved revenue of $98.0 million
in the second quarter of 2024 versus $89.3
million in the second quarter of 2023, an increase of 10% on
both a GAAP and constant currency basis
- Net loss was ($2.1) million or
($0.05) per fully diluted share and
non-GAAP net income was $2.9 million
or $0.07 per fully diluted share in
the second quarter of 2024
- Adjusted EBITDA increased 35% to $18.6
million in the second quarter of 2024 compared to
$13.8 million in the second quarter
of 2023
- Raised FY24 revenue guidance to 10% to 12% year-over-year
growth on a constant currency basis, an increase of 0.5% at the
midpoint
- Raised FY24 adjusted EBITDA guidance to 28% to 34%
year-over-year growth, an increase of 1% at the midpoint
ATLANTA, Aug. 8, 2024
/PRNewswire/ -- Artivion, Inc. (NYSE: AORT), a leading
cardiac and vascular surgery company focused on aortic disease,
today announced financial results for the second quarter ended
June 30, 2024.
"In the second quarter, we continued to make substantial
progress on our strategic growth initiatives to drive sustained and
profitable growth, and we further solidified our position as the
leader in the aortic disease space. Revenue growth in the second
quarter was driven by year-over-year constant currency growth in
On-X of 15% and stent grafts of 13%, both compared to the second
quarter of 2023. We also saw continued revenue strength across
Latin America and Asia Pacific, which grew 25% and 15%,
respectively, in the second quarter on a constant currency basis
compared to the same period last year. In addition to our strong
revenue performance, adjusted EBITDA grew 35% this quarter,
demonstrating our ability to scale the business and continue to
expand adjusted EBITDA margins," said Pat
Mackin, Chairman, President, and Chief Executive
Officer.
Mr. Mackin concluded, "Given our second quarter performance, we
are raising our full year revenue and adjusted EBITDA expectations
for 2024."
Second Quarter 2024 Financial Results
Total revenues
for the second quarter of 2024 were $98.0
million, an increase of 10% on both a GAAP basis and
constant currency basis, both compared to the second quarter of
2023.
Net loss for the second quarter of 2024 was ($2.1) million, or ($0.05) per fully diluted common share, compared
to net loss of ($3.4) million, or
($0.08) per fully diluted common
share for the second quarter of 2023. Non-GAAP net income for the
second quarter of 2024 was $2.9
million, or $0.07 per fully
diluted common share, compared to non-GAAP net income of
$2.3 million, or $0.06 per fully diluted common share for the
second quarter of 2023. Non-GAAP net income for the second quarter
of 2024 includes pretax losses related to foreign currency
revaluation of $0.9 million.
2024 Financial Outlook
Artivion is raising its revenue
guidance range and now expects constant currency revenue growth of
between 10% to 12% for the full year 2024, compared to the 9% to
12% previously provided. Growth rates are compared to 2023.
The Company expects revenues to be in the range of $388 to $396
million compared to the previously articulated range of
$386 to $396
million. At current rates, the Company expects negligible
year-over-year currency impact on the full year 2024 revenues.
Additionally, Artivion is raising its adjusted EBITDA guidance
range and now expects growth of between 28% and 34% for the full
year 2024, compared to the 26% to 34% previously provided. Growth
rates are compared to 2023. The Company expects adjusted EBITDA to
be in the range of $69 to
$72 million compared to the
previously articulated range of $68
to $72 million.
The Company's financial performance for 2024 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, non-GAAP general,
administrative, and marketing expenses, and free cash flows.
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, non-GAAP general,
administrative, and marketing, and free cash flows 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, loss on extinguishment of debt,
and non-cash interest expense. 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 August 8, 2024, 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 13746922.
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, but are not limited to, those regarding our
full year revenue expectations and our confidence in our ability to
meet or exceed our adjusted EBITDA target for 2024; the timeline
for regulatory approval for AMDS and other products; that our
revenues for the full year 2024 will be in the range of
$388 and $396
million, representing revenue growth of between 10% to 12%
compared to 2023 on a constant currency basis; expect, at current
exchange rates, negligible currency impact on the 2024 full year
revenues; and expect non-GAAP adjusted EBITDA to increase between
28% and 34% for the full year 2024 compared to 2023, resulting in
non-GAAP adjusted EBITDA in the range of $69 to $72 million
in 2024. 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 unpredictability of the timing
and outcome of regulatory decisions, the benefits anticipated from
the Ascyrus Medical LLC transaction and Endospan agreements and our
operational improvements in our tissue and stent graft business may
not be achieved at all or at the levels we anticipate or had
originally anticipated; the benefits anticipated from our clinical
trials and regulatory approvals may not be achieved or achieved on
our anticipated timelines; and the benefits anticipated from our
expansion into APAC and LATAM may not be achieved or achieved on
our anticipated timelines. 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, 2023, and our Form 10-Q for the
quarter ended June 30, 2024. 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) Income
In Thousands,
Except Per Share Data
(Unaudited)
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
$
73,210
|
|
$
66,003
|
|
$
144,324
|
|
$
128,294
|
|
Preservation
services
|
24,809
|
|
23,248
|
|
51,126
|
|
44,186
|
|
Total
revenues
|
98,019
|
|
89,251
|
|
195,450
|
|
172,480
|
|
|
|
|
|
|
|
|
|
Cost of products and
preservation services:
|
|
|
|
|
|
|
|
|
Products
|
24,545
|
|
20,977
|
|
48,295
|
|
40,510
|
|
Preservation
services
|
10,150
|
|
10,190
|
|
20,885
|
|
20,159
|
|
Total cost of
products and preservation services
|
34,695
|
|
31,167
|
|
69,180
|
|
60,669
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
63,324
|
|
58,084
|
|
126,270
|
|
111,811
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General,
administrative, and marketing
|
49,320
|
|
57,241
|
|
80,009
|
|
107,606
|
|
Research and
development
|
7,497
|
|
7,418
|
|
14,443
|
|
14,641
|
|
Total operating
expenses
|
56,817
|
|
64,659
|
|
94,452
|
|
122,247
|
|
Gain from sale of
non-financial assets
|
—
|
|
(14,250)
|
|
—
|
|
(14,250)
|
|
Operating
income
|
6,507
|
|
7,675
|
|
31,818
|
|
3,814
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
8,304
|
|
6,356
|
|
16,130
|
|
12,452
|
|
Interest
income
|
(353)
|
|
(265)
|
|
(727)
|
|
(340)
|
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
3,669
|
|
—
|
|
Other expense,
net
|
983
|
|
4,241
|
|
2,392
|
|
3,278
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
(2,427)
|
|
(2,657)
|
|
10,354
|
|
(11,576)
|
|
Income tax (benefit)
expense
|
(306)
|
|
725
|
|
4,942
|
|
5,338
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(2,121)
|
|
$
(3,382)
|
|
$
5,412
|
|
$
(16,914)
|
|
|
|
|
|
|
|
|
|
(Loss) income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.05)
|
|
$
(0.08)
|
|
$
0.13
|
|
$
(0.41)
|
|
Diluted
|
$
(0.05)
|
|
$
(0.08)
|
|
$
0.13
|
|
$
(0.41)
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
41,683
|
|
40,755
|
|
41,487
|
|
40,595
|
|
Diluted
|
41,683
|
|
40,755
|
|
42,405
|
|
40,595
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(2,121)
|
|
$
(3,382)
|
|
$
5,412
|
|
$
(16,914)
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(2,727)
|
|
1,026
|
|
(5,864)
|
|
$
5,647
|
|
Unrealized gain (loss)
from foreign currency intra-entity loans, net of tax
|
404
|
|
800
|
|
2,013
|
|
(205)
|
|
Comprehensive
(loss) income
|
$
(4,444)
|
|
$
(1,556)
|
|
$
1,561
|
|
$
(11,472)
|
|
Artivion, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
In Thousands
|
|
June 30,
2024
|
|
December 31,
2023
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
55,019
|
|
$
58,940
|
|
Trade receivables,
net
|
73,890
|
|
71,796
|
|
Other
receivables
|
5,063
|
|
2,342
|
|
Inventories,
net
|
80,802
|
|
81,976
|
|
Deferred preservation
costs, net
|
50,674
|
|
49,804
|
|
Prepaid expenses and
other
|
19,514
|
|
15,810
|
|
Total current
assets
|
284,962
|
|
280,668
|
|
|
|
|
|
Goodwill
|
244,008
|
|
247,337
|
|
Acquired technology,
net
|
135,151
|
|
142,593
|
|
Operating lease
right-of-use assets, net
|
41,655
|
|
43,822
|
|
Property and equipment,
net
|
37,440
|
|
38,358
|
|
Other intangibles,
net
|
29,261
|
|
29,638
|
|
Deferred income
taxes
|
3,309
|
|
1,087
|
|
Other long-term
assets
|
13,753
|
|
8,894
|
|
Total
assets
|
$
789,539
|
|
$
792,397
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
11,728
|
|
$
13,318
|
|
Accrued
expenses
|
16,490
|
|
12,732
|
|
Accrued
compensation
|
13,995
|
|
18,715
|
|
Current maturities of
operating leases
|
3,283
|
|
3,395
|
|
Taxes
payable
|
1,734
|
|
3,840
|
|
Accrued procurement
fees
|
1,472
|
|
1,439
|
|
Current portion of
long-term debt
|
268
|
|
1,451
|
|
Other current
liabilities
|
1,612
|
|
2,972
|
|
Total current
liabilities
|
50,582
|
|
57,862
|
|
|
|
|
|
Long-term
debt
|
313,295
|
|
305,531
|
|
Contingent
consideration
|
48,210
|
|
63,890
|
|
Non-current maturities
of operating leases
|
41,967
|
|
43,977
|
|
Deferred income
taxes
|
21,719
|
|
21,851
|
|
Deferred compensation
liability
|
7,455
|
|
6,760
|
|
Non-current finance
lease obligation
|
3,202
|
|
3,405
|
|
Other long-term
liabilities
|
8,053
|
|
7,341
|
|
Total
liabilities
|
$
494,483
|
|
$
510,617
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Preferred
stock
|
—
|
|
—
|
|
Common stock (75,000
shares authorized, 43,279 and 42,569 shares issued in 2024 and
2023, respectively)
|
433
|
|
426
|
|
Additional paid-in
capital
|
367,627
|
|
355,919
|
|
Retained
deficit
|
(42,495)
|
|
(47,907)
|
|
Accumulated other
comprehensive loss
|
(15,861)
|
|
(12,010)
|
|
Treasury stock, at
cost, 1,487 shares as of June 30, 2024 and December 31,
2023
|
(14,648)
|
|
(14,648)
|
|
Total shareholders'
equity
|
295,056
|
|
281,780
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
789,539
|
|
$
792,397
|
|
Artivion, Inc. and
Subsidiaries
Condensed Consolidated Statement of Cash
Flows
In Thousands
(Unaudited)
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
Net cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
$
5,412
|
|
$
(16,914)
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
11,800
|
|
11,501
|
|
Non-cash
compensation
|
7,730
|
|
7,279
|
|
Non-cash lease
expense
|
3,897
|
|
3,631
|
|
Loss on extinguishment
of debt
|
3,669
|
|
—
|
|
Write-down of
inventories and deferred preservation costs
|
1,508
|
|
2,021
|
|
Deferred income
taxes
|
994
|
|
(8,073)
|
|
Fair value adjustment
of long-term loan
|
—
|
|
5,000
|
|
Gain from sale of
non-financial assets
|
—
|
|
(14,250)
|
|
Change in fair value
of contingent consideration
|
(15,680)
|
|
15,700
|
|
Other
|
1,178
|
|
1,836
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Inventories and
deferred preservation costs
|
(2,165)
|
|
(6,921)
|
|
Prepaid expenses and
other assets
|
(5,224)
|
|
(2,317)
|
|
Accounts payable,
accrued expenses, and other liabilities
|
(6,031)
|
|
1,607
|
|
Receivables
|
(6,446)
|
|
655
|
|
Net cash flows
provided by operating activities
|
642
|
|
755
|
|
|
|
|
|
Net cash flows from
investing activities:
|
|
|
|
|
Proceeds from sale of
non-financial assets, net
|
—
|
|
14,250
|
|
Payments for Endospan
Agreement
|
—
|
|
(5,000)
|
|
Capital
expenditures
|
(6,124)
|
|
(5,015)
|
|
Net cash flows (used
in) provided by investing activities
|
(6,124)
|
|
4,235
|
|
|
|
|
|
Net cash flows from
financing activities:
|
|
|
|
|
Proceeds from issuance
of debt
|
190,000
|
|
—
|
|
Proceeds from
revolving credit facility
|
30,000
|
|
—
|
|
Proceeds from exercise
of stock options and issuance of common stock
|
3,587
|
|
2,581
|
|
Proceeds from
financing insurance premiums
|
—
|
|
3,558
|
|
Principal payments on
short-term notes payable
|
(1,027)
|
|
(529)
|
|
Payment of debt
issuance costs
|
(10,044)
|
|
—
|
|
Repayment of
debt
|
(211,688)
|
|
(1,381)
|
|
Other
|
(272)
|
|
(825)
|
|
Net cash flows
provided by financing activities
|
556
|
|
3,404
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
1,005
|
|
1,030
|
|
(Decrease) increase
in cash and cash equivalents
|
(3,921)
|
|
9,424
|
|
|
|
|
|
Cash and cash
equivalents beginning of period
|
58,940
|
|
39,351
|
|
Cash and cash
equivalents end of period
|
$
55,019
|
|
$
48,775
|
|
Artivion, Inc. and
Subsidiaries
Financial Highlights
In
Thousands
(Unaudited)
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Products:
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
32,190
|
|
$
28,359
|
|
$
64,293
|
|
$
54,509
|
|
On-X
|
20,645
|
|
17,946
|
|
40,326
|
|
35,602
|
|
Surgical
sealants
|
18,545
|
|
16,566
|
|
35,526
|
|
33,269
|
|
Other
|
1,830
|
|
3,132
|
|
4,179
|
|
4,914
|
|
Total
products
|
73,210
|
|
66,003
|
|
144,324
|
|
128,294
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
24,809
|
|
23,248
|
|
51,126
|
|
44,186
|
|
Total
revenues
|
$
98,019
|
|
$
89,251
|
|
$
195,450
|
|
$
172,480
|
|
|
|
|
|
|
|
|
|
North
America
|
48,662
|
|
46,268
|
|
99,590
|
|
89,513
|
|
Europe, the Middle
East, and Africa
|
34,145
|
|
30,143
|
|
67,733
|
|
58,072
|
|
Asia Pacific
|
9,653
|
|
8,375
|
|
17,262
|
|
16,253
|
|
Latin
America
|
5,559
|
|
4,465
|
|
10,865
|
|
8,642
|
|
Total
revenues
|
$
98,019
|
|
$
89,251
|
|
$
195,450
|
|
$
172,480
|
|
Artivion, Inc. and
Subsidiaries
Reconciliation of GAAP to
Non-GAAP
Revenues
In
Thousands
(Unaudited)
|
|
Revenues for
the
Three Months
Ended
June
30,
|
|
Percent
Change
From
Prior
Year
|
|
2024
|
|
2023
|
|
|
US
GAAP
|
|
US
GAAP
|
|
Exchange
Rate Effect
|
|
Constant
Currency
|
|
Constant
Currency
|
|
Products:
|
|
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
32,190
|
|
$
28,359
|
|
$
148
|
|
$
28,507
|
|
13 %
|
|
On-X
|
20,645
|
|
17,946
|
|
(3)
|
|
17,943
|
|
15 %
|
|
Surgical
sealants
|
18,545
|
|
16,566
|
|
—
|
|
16,566
|
|
12 %
|
|
Other
|
1,830
|
|
3,132
|
|
(2)
|
|
3,130
|
|
-42 %
|
|
Total
products
|
73,210
|
|
66,003
|
|
143
|
|
66,146
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
24,809
|
|
23,248
|
|
(6)
|
|
23,242
|
|
7 %
|
|
Total
|
$
98,019
|
|
$
89,251
|
|
$
137
|
|
$
89,388
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
48,662
|
|
46,268
|
|
(11)
|
|
46,257
|
|
5 %
|
|
Europe, the Middle
East, and Africa
|
34,145
|
|
30,143
|
|
177
|
|
30,320
|
|
13 %
|
|
Asia Pacific
|
9,653
|
|
8,375
|
|
(1)
|
|
8,374
|
|
15 %
|
|
Latin
America
|
5,559
|
|
4,465
|
|
(28)
|
|
4,437
|
|
25 %
|
|
Total
|
$
98,019
|
|
$
89,251
|
|
$
137
|
|
$
89,388
|
|
10 %
|
|
Revenues for
the
Six Months
Ended
June
30,
|
|
Percent
Change
From
Prior
Year
|
|
2024
|
|
2023
|
|
|
US
GAAP
|
|
US
GAAP
|
|
Exchange
Rate Effect
|
|
Constant
Currency
|
|
Constant
Currency
|
|
Products:
|
|
|
|
|
|
|
|
|
|
|
Aortic stent
grafts
|
$
64,293
|
|
$
54,509
|
|
896
|
|
$
55,405
|
|
16 %
|
|
On-X
|
40,326
|
|
35,602
|
|
101
|
|
35,703
|
|
13 %
|
|
Surgical
sealants
|
35,526
|
|
33,269
|
|
118
|
|
33,387
|
|
6 %
|
|
Other
|
4,179
|
|
4,914
|
|
3
|
|
4,917
|
|
-15 %
|
|
Total
products
|
144,324
|
|
128,294
|
|
1,118
|
|
129,412
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
Preservation
services
|
51,126
|
|
44,186
|
|
(4)
|
|
44,182
|
|
16 %
|
|
Total
|
$
195,450
|
|
$
172,480
|
|
$
1,114
|
|
$
173,594
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
99,590
|
|
89,513
|
|
(7)
|
|
89,506
|
|
11 %
|
|
Europe, the Middle
East, and Africa
|
67,733
|
|
58,072
|
|
982
|
|
59,054
|
|
15 %
|
|
Asia Pacific
|
17,262
|
|
16,253
|
|
(1)
|
|
16,252
|
|
6 %
|
|
Latin
America
|
10,865
|
|
8,642
|
|
140
|
|
8,782
|
|
24 %
|
|
Total
|
$
195,450
|
|
$
172,480
|
|
$
1,114
|
|
$
173,594
|
|
13 %
|
|
Artivion, Inc. and
Subsidiaries
Reconciliation of GAAP to
Non-GAAP
General, Administrative, and Marketing Expense,
Adjusted EBITDA, and Free Cash Flows
In
Thousands
(Unaudited)
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Reconciliation of
G&A expense, GAAP to adjusted G&A,
non-GAAP:
|
|
|
|
|
|
|
|
|
General,
administrative, and marketing expense, GAAP
|
$
49,320
|
|
$
57,241
|
|
$
80,009
|
|
$
107,606
|
|
Business
development, integration, and severance expense (income)
|
2,033
|
|
11,101
|
|
(15,354)
|
|
16,098
|
|
Corporate
rebranding expense
|
—
|
|
69
|
|
—
|
|
218
|
|
Abandonment of
CardioGenesis Cardiac laser therapy business
|
—
|
|
160
|
|
—
|
|
160
|
|
Adjusted G&A,
non-GAAP
|
$
47,287
|
|
$
45,911
|
|
$
95,363
|
|
$
91,130
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Reconciliation of
net (loss) income, GAAP to adjusted EBITDA,
non-GAAP:
|
|
|
|
|
|
|
|
|
Net (loss) income,
GAAP
|
$
(2,121)
|
|
$
(3,382)
|
|
$
5,412
|
|
$
(16,914)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Interest
expense
|
8,304
|
|
6,356
|
|
16,130
|
|
12,452
|
|
Depreciation and
amortization expense
|
5,891
|
|
5,767
|
|
11,800
|
|
11,501
|
|
Stock-based
compensation expense
|
4,252
|
|
3,938
|
|
7,730
|
|
7,279
|
|
Income tax (benefit)
expense
|
(306)
|
|
725
|
|
4,942
|
|
5,338
|
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
3,669
|
|
—
|
|
Loss (gain) on foreign
currency revaluation
|
943
|
|
(797)
|
|
2,353
|
|
(1,770)
|
|
Abandonment of
CardioGenesis Cardiac laser therapy business
|
—
|
|
390
|
|
—
|
|
390
|
|
Corporate rebranding
expense
|
—
|
|
69
|
|
—
|
|
218
|
|
Gain from sale of
non-financial assets
|
—
|
|
(14,250)
|
|
—
|
|
(14,250)
|
|
Interest
income
|
(353)
|
|
(265)
|
|
(727)
|
|
(340)
|
|
Business
development, integration, and severance expense (income)
|
2,033
|
|
15,270
|
|
(15,354)
|
|
20,722
|
|
Adjusted EBITDA,
non-GAAP
|
$
18,643
|
|
$
13,821
|
|
$
35,955
|
|
$
24,626
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Reconciliation of
cash flows from operating activities, GAAP to free cash flows,
non-GAAP:
|
|
|
|
|
|
|
|
|
Net cash flows
provided by operating activities
|
$
6,135
|
|
$
6,909
|
|
$
642
|
|
$
755
|
|
Capital
expenditures
|
(2,513)
|
|
(2,172)
|
|
(6,124)
|
|
(5,015)
|
|
Free cash flows,
non-GAAP
|
$
3,622
|
|
$
4,737
|
|
$ (5,482)
|
|
$ (4,260)
|
|
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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP:
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes
|
$
(2,427)
|
|
$
(2,657)
|
|
$
10,354
|
|
$
(11,576)
|
|
Income tax (benefit)
expense
|
(306)
|
|
725
|
|
4,942
|
|
5,338
|
|
Net (loss) income
|
$
(2,121)
|
|
$
(3,382)
|
|
$
5,412
|
|
$
(16,914)
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per common
share
|
$
(0.05)
|
|
$
(0.08)
|
|
$
0.13
|
|
$
(0.41)
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average common shares
outstanding
|
41,683
|
|
40,755
|
|
42,405
|
|
40,595
|
|
|
|
|
|
|
|
|
|
Reconciliation of (loss) income before income taxes,
GAAP to adjusted income, non-GAAP:
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes,
GAAP:
|
$
(2,427)
|
|
$
(2,657)
|
|
$
10,354
|
|
$
(11,576)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization
expense
|
3,793
|
|
3,806
|
|
7,660
|
|
7,687
|
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
3,669
|
|
—
|
|
Non-cash interest
expense
|
484
|
|
464
|
|
1,064
|
|
926
|
|
Abandonment of
CardioGenesis Cardiac laser therapy business
|
—
|
|
390
|
|
—
|
|
390
|
|
Corporate rebranding
expense
|
—
|
|
69
|
|
—
|
|
218
|
|
Gain from sale of
non-financial assets
|
—
|
|
(14,250)
|
|
—
|
|
(14,250)
|
|
Business development,
integration, and severance expense (income)
|
2,033
|
|
15,270
|
|
(15,354)
|
|
20,722
|
|
Adjusted income before income taxes,
non-GAAP
|
3,883
|
|
3,092
|
|
7,393
|
|
4,117
|
|
|
|
|
|
|
|
|
|
Income tax expense
calculated at a tax rate of 25%
|
970
|
|
773
|
|
1,848
|
|
1,029
|
|
Adjusted net income, non-GAAP
|
$
2,913
|
|
$
2,319
|
|
$
5,545
|
|
$
3,088
|
|
|
|
|
|
|
|
|
|
Reconciliation of diluted income (loss) per common
share, GAAP to adjusted diluted income per common share,
non-GAAP:
|
|
|
|
|
|
|
|
|
Diluted income (loss) per common share,
GAAP:
|
$
(0.05)
|
|
$
(0.08)
|
|
$
0.13
|
|
$
(0.41)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization
expense
|
0.09
|
|
0.09
|
|
0.18
|
|
0.19
|
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
0.09
|
|
—
|
|
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
|
|
Gain from sale of
non-financial assets
|
—
|
|
(0.34)
|
|
—
|
|
(0.34)
|
|
Business development,
integration, and severance expense (income)
|
0.05
|
|
0.37
|
|
(0.36)
|
|
0.50
|
|
Tax effect of non-GAAP
adjustments
|
(0.04)
|
|
(0.03)
|
|
0.01
|
|
(0.10)
|
|
Effect of 25% tax
rate
|
0.01
|
|
0.03
|
|
0.06
|
|
0.20
|
|
Adjusted diluted income per common share,
non-GAAP
|
$
0.07
|
|
$
0.06
|
|
$
0.13
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
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:
|
41,683
|
|
40,755
|
|
42,405
|
|
40,595
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Effect of dilutive
stock options and awards
|
941
|
|
419
|
|
—
|
|
444
|
|
Diluted weighted-average common shares outstanding,
non-GAAP
|
42,624
|
|
41,174
|
|
42,405
|
|
41,039
|
|
Contacts:
|
|
|
Artivion
|
Gilmartin Group LLC
|
|
Lance A.
Berry
|
Brian Johnston / Laine
Morgan
|
|
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-2024-financial-results-302218271.html
SOURCE Artivion, Inc.