CryoLife, Inc. Reports 54% Increase in Net Income During the First Quarter Of 2001 as Compared to the First Quarter of 2000

Apr 17, 2001, 01:00 ET from CryoLife, Inc.

    ATLANTA, April 17 /PRNewswire/ -- CryoLife, Inc. (NYSE:   CRY), a life-
 science company involved in the development and commercialization of tissue-
 engineered implantable heart valves, vascular and orthopaedic grafts, and
 surgical adhesives, today reported record first quarter revenues and earnings
 during the quarter ended March 31, 2001.
     Revenues for the quarter ended March 31, 2001 were $21.4 million, a 9%
 increase over the previous record of $19.6 million set in the first quarter of
 2000.  Net income for the quarter was a record of $2.5 million, a 54% increase
 compared to net income of $1.6 million for the quarter ended March 31, 2000.
 On a fully-diluted basis, earnings per share for the quarter ended March 31,
 2001 rose 44% to $0.13 from $0.09, as adjusted, for the same period in 2000.
 First quarter earnings per common share have been adjusted to reflect a 3-for-
 2 stock split effected on December 27, 2000.
     Steven G. Anderson, President and Chief Executive Officer, CryoLife, Inc.,
 noted, "First quarter revenues benefited from growth in our core businesses
 and from significant increases in sales of BioGlue(R) surgical adhesive in
 both domestic and overseas markets.  BioGlue sales were up 116% compared to
 the first quarter of 2000 and up 15% compared to the fourth quarter of 2000."
 
     Cryopreservation Services Review
     The Company's performance in the first quarter of 2001 was driven by
 continued progress in its diversification strategies, combined with solid
 results from its core orthopaedic and vascular cryopreservation businesses.
 Although cardiovascular tissue processing revenues decreased 9% from the first
 quarter of 2000, orthopaedic tissue processing revenues for the first quarter
 of 2001 increased by 34% over 2000, while vascular tissue processing revenues
 increased by 15% year-over-year.
 
     BioGlue Progress
     The commercial rollout of BioGlue surgical adhesive continues to have a
 more meaningful impact on corporate results, accounting for 11% of the
 Company's total revenues in the first quarter of 2001.  BioGlue revenues rose
 116% in the first quarter to approximately $2.4 million, compared to $1.1
 million in the year ago period.
     BioGlue is currently approved for vascular and pulmonary repair in 42
 foreign countries and is commercially available in the United States under a
 Food and Drug Administration (FDA) approved Humanitarian Use Device Exemption
 (HDE) for use as an adjunct in the repair of acute thoracic aortic
 dissections, a life-threatening condition.
     The Company filed a Premarket Approval (PMA) for BioGlue's use in all
 vascular repair and sealing on February 1, 2001.  Also in February of 2001,
 the Company announced that it had received approval to market BioGlue surgical
 adhesive in Australia.
 
     Gross Margins
     Gross margins for the quarter ended March 31, 2001 were 57%, compared to
 53% for the corresponding period in 2000.  The increase in gross margins
 resulted from the Company's diversification strategy, most notably the growing
 contribution of BioGlue, which carries gross margins in excess of those in the
 cryopreservation business, as well as the termination of the Ideas for
 Medicine OEM contract with Horizon Medical Products, Inc. which had
 significantly lower margins than the Company's core businesses.
 
     SynerGraft(R) Progress
     In January 2001 CryoLife, Inc. announced that it had expanded its human
 vascular program to include a new method of preserving vascular tissue used as
 an A-V (arteriovenous) access graft for application with dialysis patients.
 The new vascular graft, called CryoVein(R)SG, incorporates the use of the
 Company's patented SynerGraft technology to produce a graft that we believe
 reduces the risk of infection and provides for improved long-term
 functionality due to the potential for the graft to remodel itself in vivo.
     On February 22, 2001 CryoLife announced that its SynerGraft heart valve
 was successfully implanted in a three year-old male child in Norway.
 Additional implants have occurred in Norway and Finland.  The SynerGraft heart
 valve, a revolutionary advancement in heart valve replacement surgery, is
 currently being distributed under a CE (product certification) Mark that was
 awarded to the Company in October of 2000, allowing for commercial
 distribution of the valve throughout the European Community.
     The SynerGraft heart valve represents the world's first heart valve
 replacement technology that depopulates the donor cells leaving a collagen
 matrix that has the potential to repopulate itself with the recipients' own
 cells following implantation.
     Founded in 1984, CryoLife, Inc. is the leader in the development and
 commercialization of implantable living human tissues for use in
 cardiovascular, vascular, and orthopaedic surgeries throughout the United
 States and Canada.  The Company's BioGlue surgical adhesive is approved as an
 adjunct for acute thoracic aortic dissections under HDE regulations in the
 United States and is CE Marked in the European Community and approved in
 Canada and Australia for use in vascular and pulmonary sealing and repair.
 The Company also manufactures the SynerGraft heart valve, the world's first
 tissue-engineered heart valve replacement and the CryoLife-O'Brien(R) and
 CryoLife-Ross(R) stentless porcine heart valves, which are CE Marked for
 distribution within the European Community.  The human heart valves and
 vascular grafts processed by CryoLife using the SynerGraft technology are
 distributed in the U.S. under the trade names of CryoValve(R)SG and
 CryoVein(R)SG, respectively.
 
     Financial Highlights Follow.
 
     Statements made in this press release that look forward in time or that
 express management's beliefs, expectations or hopes regarding future
 occurrences are forward-looking statements within the meaning of the Private
 Securities Litigation Reform Act of 1995.  These future events may not occur
 when expected, if at all, and are subject to various risks and uncertainties.
 Such risks and uncertainties include the possibility that CryoVein-SG will not
 have the expected long-term functionality or repopulate with human recipient
 cells, that future clinical SynerGraft or BioGlue test results will prove less
 encouraging than current results, that SynerGraft or BioGlue regulatory
 submissions will not be ready when planned or that anticipated regulatory
 approvals will not be obtained on a timely basis, if at all, that future
 clinical SynerGraft or BioGlue test results will prove less encouraging than
 current results, that SynerGraft-treated tissues will not repopulate with
 human recipient cells the possibility that there will not be an adequate
 supply of human tissue for cryopreservation, the possibility of rapid
 technological change, uncertainties regarding products in development,
 competition from other companies, changes in laws and governmental regulations
 applicable to the Company and other risk factors detailed in the Company's
 Securities and Exchange Commission filings, including the Company's Form 10-K
 for the year ended December 31, 2000.
     For additional information about the company, visit CryoLife's web site:
 http://www.cryolife.com
 
                                 CRYOLIFE, INC.
                         Unaudited Financial Highlights
                     (In thousands, except per share data)
 
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
     Revenues                                         $21,432        $19,623
 
     Cost and expenses:
       Cryopreservation and products                    9,105          9,149
       General, administrative and marketing            8,159          7,043
       Research and development                         1,086          1,329
       Interest expense                                   ---            100
       Interest income                                   (562)          (377)
       Other                                              ---            (15)
         Total costs and expenses                      17,788         17,229
 
     Earnings before income taxes                       3,644          2,394
     Income tax expense                                 1,166            790
     Net income                                        $2,478         $1,604
 
     Earnings per share:
       Basic                                            $0.13          $0.09
       Diluted                                          $0.13          $0.09
 
     Weighted average shares outstanding:
       Basic                                           18,749         18,357
       Diluted                                         19,508         18,788
 
     Revenues From:
       Cardiovascular                                  $6,911        $ 7,582
       Vascular                                         6,412          5,564
       Orthopaedic                                      5,243          3,899
         Total Cryopreservation                        18,566         17,045
 
     BioGlue                                            2,442          1,130
     Bioprosthetic Valves                                 199            226
     IFM                                                   --          1,080
     Other                                                225            142
       Total Revenues                                 $21,432        $19,623
 
 
     Contact:   D. Ashley Lee
                Vice President, Chief Financial Officer
                (800) 438-8285
 
 

SOURCE CryoLife, Inc.
    ATLANTA, April 17 /PRNewswire/ -- CryoLife, Inc. (NYSE:   CRY), a life-
 science company involved in the development and commercialization of tissue-
 engineered implantable heart valves, vascular and orthopaedic grafts, and
 surgical adhesives, today reported record first quarter revenues and earnings
 during the quarter ended March 31, 2001.
     Revenues for the quarter ended March 31, 2001 were $21.4 million, a 9%
 increase over the previous record of $19.6 million set in the first quarter of
 2000.  Net income for the quarter was a record of $2.5 million, a 54% increase
 compared to net income of $1.6 million for the quarter ended March 31, 2000.
 On a fully-diluted basis, earnings per share for the quarter ended March 31,
 2001 rose 44% to $0.13 from $0.09, as adjusted, for the same period in 2000.
 First quarter earnings per common share have been adjusted to reflect a 3-for-
 2 stock split effected on December 27, 2000.
     Steven G. Anderson, President and Chief Executive Officer, CryoLife, Inc.,
 noted, "First quarter revenues benefited from growth in our core businesses
 and from significant increases in sales of BioGlue(R) surgical adhesive in
 both domestic and overseas markets.  BioGlue sales were up 116% compared to
 the first quarter of 2000 and up 15% compared to the fourth quarter of 2000."
 
     Cryopreservation Services Review
     The Company's performance in the first quarter of 2001 was driven by
 continued progress in its diversification strategies, combined with solid
 results from its core orthopaedic and vascular cryopreservation businesses.
 Although cardiovascular tissue processing revenues decreased 9% from the first
 quarter of 2000, orthopaedic tissue processing revenues for the first quarter
 of 2001 increased by 34% over 2000, while vascular tissue processing revenues
 increased by 15% year-over-year.
 
     BioGlue Progress
     The commercial rollout of BioGlue surgical adhesive continues to have a
 more meaningful impact on corporate results, accounting for 11% of the
 Company's total revenues in the first quarter of 2001.  BioGlue revenues rose
 116% in the first quarter to approximately $2.4 million, compared to $1.1
 million in the year ago period.
     BioGlue is currently approved for vascular and pulmonary repair in 42
 foreign countries and is commercially available in the United States under a
 Food and Drug Administration (FDA) approved Humanitarian Use Device Exemption
 (HDE) for use as an adjunct in the repair of acute thoracic aortic
 dissections, a life-threatening condition.
     The Company filed a Premarket Approval (PMA) for BioGlue's use in all
 vascular repair and sealing on February 1, 2001.  Also in February of 2001,
 the Company announced that it had received approval to market BioGlue surgical
 adhesive in Australia.
 
     Gross Margins
     Gross margins for the quarter ended March 31, 2001 were 57%, compared to
 53% for the corresponding period in 2000.  The increase in gross margins
 resulted from the Company's diversification strategy, most notably the growing
 contribution of BioGlue, which carries gross margins in excess of those in the
 cryopreservation business, as well as the termination of the Ideas for
 Medicine OEM contract with Horizon Medical Products, Inc. which had
 significantly lower margins than the Company's core businesses.
 
     SynerGraft(R) Progress
     In January 2001 CryoLife, Inc. announced that it had expanded its human
 vascular program to include a new method of preserving vascular tissue used as
 an A-V (arteriovenous) access graft for application with dialysis patients.
 The new vascular graft, called CryoVein(R)SG, incorporates the use of the
 Company's patented SynerGraft technology to produce a graft that we believe
 reduces the risk of infection and provides for improved long-term
 functionality due to the potential for the graft to remodel itself in vivo.
     On February 22, 2001 CryoLife announced that its SynerGraft heart valve
 was successfully implanted in a three year-old male child in Norway.
 Additional implants have occurred in Norway and Finland.  The SynerGraft heart
 valve, a revolutionary advancement in heart valve replacement surgery, is
 currently being distributed under a CE (product certification) Mark that was
 awarded to the Company in October of 2000, allowing for commercial
 distribution of the valve throughout the European Community.
     The SynerGraft heart valve represents the world's first heart valve
 replacement technology that depopulates the donor cells leaving a collagen
 matrix that has the potential to repopulate itself with the recipients' own
 cells following implantation.
     Founded in 1984, CryoLife, Inc. is the leader in the development and
 commercialization of implantable living human tissues for use in
 cardiovascular, vascular, and orthopaedic surgeries throughout the United
 States and Canada.  The Company's BioGlue surgical adhesive is approved as an
 adjunct for acute thoracic aortic dissections under HDE regulations in the
 United States and is CE Marked in the European Community and approved in
 Canada and Australia for use in vascular and pulmonary sealing and repair.
 The Company also manufactures the SynerGraft heart valve, the world's first
 tissue-engineered heart valve replacement and the CryoLife-O'Brien(R) and
 CryoLife-Ross(R) stentless porcine heart valves, which are CE Marked for
 distribution within the European Community.  The human heart valves and
 vascular grafts processed by CryoLife using the SynerGraft technology are
 distributed in the U.S. under the trade names of CryoValve(R)SG and
 CryoVein(R)SG, respectively.
 
     Financial Highlights Follow.
 
     Statements made in this press release that look forward in time or that
 express management's beliefs, expectations or hopes regarding future
 occurrences are forward-looking statements within the meaning of the Private
 Securities Litigation Reform Act of 1995.  These future events may not occur
 when expected, if at all, and are subject to various risks and uncertainties.
 Such risks and uncertainties include the possibility that CryoVein-SG will not
 have the expected long-term functionality or repopulate with human recipient
 cells, that future clinical SynerGraft or BioGlue test results will prove less
 encouraging than current results, that SynerGraft or BioGlue regulatory
 submissions will not be ready when planned or that anticipated regulatory
 approvals will not be obtained on a timely basis, if at all, that future
 clinical SynerGraft or BioGlue test results will prove less encouraging than
 current results, that SynerGraft-treated tissues will not repopulate with
 human recipient cells the possibility that there will not be an adequate
 supply of human tissue for cryopreservation, the possibility of rapid
 technological change, uncertainties regarding products in development,
 competition from other companies, changes in laws and governmental regulations
 applicable to the Company and other risk factors detailed in the Company's
 Securities and Exchange Commission filings, including the Company's Form 10-K
 for the year ended December 31, 2000.
     For additional information about the company, visit CryoLife's web site:
 http://www.cryolife.com
 
                                 CRYOLIFE, INC.
                         Unaudited Financial Highlights
                     (In thousands, except per share data)
 
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
     Revenues                                         $21,432        $19,623
 
     Cost and expenses:
       Cryopreservation and products                    9,105          9,149
       General, administrative and marketing            8,159          7,043
       Research and development                         1,086          1,329
       Interest expense                                   ---            100
       Interest income                                   (562)          (377)
       Other                                              ---            (15)
         Total costs and expenses                      17,788         17,229
 
     Earnings before income taxes                       3,644          2,394
     Income tax expense                                 1,166            790
     Net income                                        $2,478         $1,604
 
     Earnings per share:
       Basic                                            $0.13          $0.09
       Diluted                                          $0.13          $0.09
 
     Weighted average shares outstanding:
       Basic                                           18,749         18,357
       Diluted                                         19,508         18,788
 
     Revenues From:
       Cardiovascular                                  $6,911        $ 7,582
       Vascular                                         6,412          5,564
       Orthopaedic                                      5,243          3,899
         Total Cryopreservation                        18,566         17,045
 
     BioGlue                                            2,442          1,130
     Bioprosthetic Valves                                 199            226
     IFM                                                   --          1,080
     Other                                                225            142
       Total Revenues                                 $21,432        $19,623
 
 
     Contact:   D. Ashley Lee
                Vice President, Chief Financial Officer
                (800) 438-8285
 
 SOURCE  CryoLife, Inc.