Cryoport Reports 53% Revenue Growth for the First Quarter of Fiscal Year 2016

Implements strategy to further scale operations and sales and marketing programs following infusion of approximately $6.8 million in gross proceeds on July 29th

Aug 06, 2015, 08:00 ET from Cryoport, Inc.

LAKE FOREST, Calif., Aug. 6, 2015 /PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX) today announced financial results for the three-month period ended June 30, 2015.

"We are pleased to announce a 53% increase in revenue for our fiscal first quarter compared to the same period last year, as well as a 19% increase in revenue sequentially. This growth is attributable to our ever-increasing roster of customers in the life sciences industry that are implementing or expanding use of our cryogenic logistics solutions. In addition, we believe there is significant revenue growth already embedded in our existing customer base," stated Jerrell Shelton, Cryoport's Chief Executive Officer. 

Results for the three months ended June 30, 2015 Revenues increased by 53% to $1.4 million for the three months ended June 30, 2015, compared to $0.9 million for the three months ended June 30, 2014. This increase is driven by an overall increase in the number of clients utilizing our services and growth and frequency of shipments of current clients compared to the prior year.

Gross margin for the three months ended June 30, 2015 was 34% of revenues, as compared to 36% of revenues for the three months ended June 30, 2014. This decrease reflects an increase of freight costs as a percentage of revenues, which was primarily due to inventory balancing transfers between the Cryoport operations centers. Our gross margin target continues to be 60% as we achieve scale of our expanded infrastructure.

Net loss for the three months ended June 30, 2015 decreased $373,000, or 16%, to $1.9 million compared to $2.3 million for the prior year period. Net loss attributable to common stockholders for the three months ended June 30, 2015 was $6.6 million, or $1.31 per basic and diluted share, compared with a net loss attributable to common stockholders of $3.1 million, or $0.61 per basic and diluted share, for the same period last year. The net loss attributable to common stockholders for the quarter ended June 30, 2015 included a non-cash, preferred stock beneficial conversion charge of $4.5 million compared to $0.7 million for the same period last year.

"The market opportunities for our solutions have rapidly expanded in recent years by the continuous stream of advanced therapies going into clinical trials and coming to the market that must be shipped in verifiable cryogenic conditions. As a result of these requirements, Cryoport is being recognized by many as the 'new standard' to maintain the integrity of these advanced immunotherapies, vaccines, bio-pharmaceuticals, as well as for our traditional markets such as reproductive medicine, while in transit," continued Mr. Shelton.

"We currently support 45 clinical trials that, if commercialized, we estimate may contribute up to $150 million in cumulative revenue to Cryoport over the next 5 years. Our clinical trial solutions are supporting diverse therapeutic areas such as oncology, autoimmune disease, Parkinson's, and congestive heart failure in all three phases of clinical development. Furthermore, as therapies advance through their clinical trials to reach commercialization, the demand for our cryogenic logistics will increase over the life of the trials as more data is collected and trial sizes are expanded."

"The proceeds from our recent capital raise have allowed us to accelerate our trajectory for growth as we scale up our operations and expand our sales and marketing programs. We will be expanding our engineering and warehouse staffing and capacity used to store, test and recharge our Cryoport Express® Shippers and increasing our customer support staff for scheduling deliveries, as well as making investments in the staffing for our sales and marketing programs throughout the United States and Europe. Our global reach already supports use of our solutions in the United States, Europe, Japan, Australia, South America, and Africa, as well as multiple locations throughout Asia." concluded Mr. Shelton.

Further information on Cryoport's results are included on the attached unaudited consolidated balance sheets and statements of operations and further explanation of Cryoport's financial performance will be provided in Cryoport's quarterly report on Form 10-Q for the three months ended June 30, 2015, which will be filed with the SEC today, August 6, 2015. The full report will be available on the SEC Filings section of the Investor Relations section of our website at www.cryoport.com.

Conference Call

Cryoport will host a conference call at 10:00 a.m. ET on Thursday, August 6th, to review its financial results and business outlook.  Participants should dial 1-877-440-5788 (United States) or 1-719-325-4752 (International) and request the "Cryoport call" or provide confirmation code: 7516920. A live audio webcast of the call will also be available on the Investor Relations section of the Company's website at www.cryoport.com. 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 two 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.  A dial-in replay of the call will also be available to those interested until August 13, 2015.  To access the replay, dial 1-877-870-5176 (United States) or 1-858-384-5517 (International) and enter code: 7516920.

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. We provide leading edge logistics solutions for biologic materials such as immunotherapies, stem cells, CAR-T cells, and reproductive cells for clients worldwide including points-of-care, CRO's, central laboratories, biopharmaceuticals, contract manufacturing, health centers and university research. Our packaging is built around our proprietary Cryoport Express® liquid nitrogen dry vapor shippers, which are validated to maintain a constant -150°C temperature for a 10-day dynamic shipment duration. Our information technology centers around our Cryoportal™ Logistics Management Platform, which facilitates management of the entire shipment process. Cryoport is the preferred cryogenic logistics solutions partner to the world's largest shipping companies controlling more than 85% of the world's air shipments. For more information, visit www.cryoport.com.

Forward Looking Statements

Statements in this press 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 annual report on Form 10-K for the year ended March 31, 2015. 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.

Investor Contacts: Todd Fromer / Garth Russell tfromer@kcsa.com / grussell@kcsa.com  P: 1 212-682-6300

(TABLES BELOW)

 

Cryoport Inc. and Subsidiary

 Consolidated Statements of Operations

(unaudited)

 Three Months Ended June 30, 

2015

2014

Revenues

$        1,431,063

$           936,588

Cost of revenues

943,151

597,233

Gross margin

487,912

339,355

Operating costs and expenses:

Selling, general and administrative

2,026,357

1,427,850

Research and development

77,724

79,244

Total operating costs and expenses

2,104,081

1,507,094

Loss from operations

(1,616,169)

(1,167,739)

Other (expense) income:

Interest expense

(303,800)

(1,128,878)

Other income (expense), net

(975)

953

Loss before provision for income taxes

(1,920,944)

(2,295,664)

Provision for income taxes

(3,320)

(1,600)

Net loss

(1,924,264)

(2,297,264)

Preferred stock benefical conversion charge

(4,474,348)

(741,786)

Undeclared cumulative preferred dividends

(208,490)

(27,723)

Net loss attributable to common stockholders

$     (6,607,102)

$     (3,066,773)

Net loss per share attributable to common stockholders - basic and diluted

$                (1.31)

$                (0.61)

Weighted average shares outstanding - basic and diluted

5,055,649

4,999,110

 

 

Cryoport Inc. and Subsidiary

Condensed Consolidated Balance Sheets

June 30,

March 31,

2015

2015

(unaudited)

Current Assets:

Cash and cash equivalents

$        2,385,919

$        1,405,186

Accounts receivable, net

757,436

589,699

Inventories

104,804

69,680

Other current assets

263,227

97,337

Total current assets

3,511,386

2,161,902

Property and equipment, net

381,362

307,926

Intangible assets, net

127,327

136,821

Total assets

$        4,020,075

$        2,606,649

Current liabilities:

Accounts payable and other accrued expenses

$           562,340

$           758,696

Accrued compensation and related expenses

440,252

725,712

Notes payable and accrued interest, net of discount

-

535,507

Related party notes payable and accrued interest, net of discount

970,110

976,581

Total current liabilities

1,972,702

2,996,496

Related party notes payable, net of current portion

-

26,452

Total liabilities

1,972,702

3,022,948

Total stockholders' equity (deficit)

2,047,373

(416,299)

     Total liabilities and stockholders' equity (deficit)

$        4,020,075

$        2,606,649

 

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SOURCE Cryoport, Inc.



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http://www.cryoport.com