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Artivion (AORT) Tops Q3 Earnings and Revenue Estimates
ZACKS· 2024-11-08 00:10
Artivion (AORT) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 300%. A quarter ago, it was expected that this biological medical device maker would post earnings of $0.03 per share when it actually produced earnings of $0.07, delivering a surprise of 133.33%.Over the last four quarte ...
Artivion(AORT) - 2024 Q3 - Quarterly Results
2024-11-07 21:09
[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Artivion reported strong financial performance in Q3 2024, with revenue growth and increased adjusted EBITDA. Key operational milestones included a PMA submission for AMDS, completion of the NEXUS TRIOMPHE trial, and regulatory approval for BioGlue in China [Third Quarter 2024 Highlights](index=1&type=section&id=Third%20Quarter%202024%20Highlights) Artivion reported strong financial performance in Q3 2024, with revenue growth and increased adjusted EBITDA. Key operational milestones included a PMA submission for AMDS, completion of the NEXUS TRIOMPHE trial, and regulatory approval for BioGlue in China Q3 2024 Key Financial Metrics | Metric | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (GAAP) | Change (Non-GAAP Constant Currency) | | :--------------------- | :----------------- | :----------------- | :------------ | :---------------------------------- | | Revenue | $95.8 | $87.9 | 9% | 10% | | Net Loss | ($2.3) | ($9.8) | -76.5% | N/A | | Net Loss per Share | ($0.05) | ($0.24) | -79.2% | N/A | | Non-GAAP Net Income | $5.0 | $0.749 | 567.6% | N/A | | Non-GAAP EPS | $0.12 | $0.02 | 500% | N/A | | Adjusted EBITDA | $17.7 | $13.9 | 28% | N/A | - Submitted the first module of the pre-market approval application (PMA) for AMDS Hybrid Prosthesis with the U.S. Food and Drug Administration[1](index=1&type=chunk) - Enrollment completed in NEXUS TRIOMPHE clinical trial[1](index=1&type=chunk) - Received regulatory approval from the National Medical Products Administration (NMPA) to commercialize BioGlue Surgical Adhesive in China, with commercialization expected in H2 2025[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Pat Mackin highlighted strong Q3 financial performance driven by growth in On-X, BioGlue, and stent grafts, along with significant revenue strength in Asia Pacific and Latin America. He also noted key R&D milestones, including BioGlue approval in China, AMDS PMA submission, and completion of the NEXUS TRIOMPHE trial - Revenue growth in Q3 was driven by year-over-year increases in **On-X (15%)**, **BioGlue (14%)**, and **stent grafts (12%)** on a GAAP basis. On a constant currency basis, On-X grew 15%, BioGlue 14%, and stent grafts 13%[3](index=3&type=chunk) - Continued revenue strength was observed across **Asia Pacific (23% GAAP, 23% constant currency)** and **Latin America (21% GAAP, 32% constant currency)**[3](index=3&type=chunk) - Key R&D milestones achieved include BioGlue approval in China, submission of the first module of the PMA application for AMDS with the FDA (anticipated approval Q4 2025), and completion of enrollment in the NEXUS TRIOMPHE clinical trial (PMA approval H2 2026)[4](index=4&type=chunk) [Third Quarter 2024 Financial Results](index=2&type=section&id=Third%20Quarter%202024%20Financial%20Results) This section details Artivion's financial performance for Q3 2024, covering revenue and profitability metrics [Revenue Performance](index=2&type=section&id=Revenue%20Performance) Artivion's total revenues for Q3 2024 reached $95.8 million, demonstrating a 9% increase on a GAAP basis and a 10% increase on a non-GAAP constant currency basis compared to Q3 2023 Q3 2024 Revenue Performance | Metric | Q3 2024 (Millions) | Q3 2023 (Millions) | GAAP Change | Non-GAAP Constant Currency Change | | :------- | :----------------- | :----------------- | :---------- | :-------------------------------- | | Revenue | $95.8 | $87.9 | 9% | 10% | [Profitability](index=2&type=section&id=Profitability) The company significantly reduced its GAAP net loss in Q3 2024 and achieved substantial growth in non-GAAP net income, primarily due to improved operational performance and a pretax gain from foreign currency revaluation Q3 2024 Profitability Metrics | Metric | Q3 2024 (Millions) | Q3 2023 (Millions) | Change | | :--------------------- | :----------------- | :----------------- | :----- | | Net Loss (GAAP) | ($2.3) | ($9.8) | -76.5% | | Net Loss per Share | ($0.05) | ($0.24) | -79.2% | | Non-GAAP Net Income | $5.0 | $0.749 | 567.6% | | Non-GAAP EPS | $0.12 | $0.02 | 500% | - Non-GAAP net income for Q3 2024 includes pretax gains related to foreign currency revaluation of **$2.4 million**[6](index=6&type=chunk) [2024 Financial Outlook](index=2&type=section&id=2024%20Financial%20Outlook) This section provides Artivion's financial guidance for the full year 2024, including revenue and adjusted EBITDA expectations [Revenue Guidance](index=2&type=section&id=Revenue%20Guidance) Artivion has narrowed its full-year 2024 revenue guidance, expecting constant currency growth between 10% to 12% and a total revenue range of $389 million to $396 million, with negligible year-over-year currency impact 2024 Full-Year Revenue Guidance | Metric | 2024 Guidance Range (Millions) | Constant Currency Growth (YoY) | | :------------------- | :----------------------------- | :----------------------------- | | Total Revenue | $389 - $396 | 10% - 12% | - The company expects negligible year-over-year currency impact on full-year 2024 revenues at current rates[7](index=7&type=chunk) [Adjusted EBITDA Guidance](index=2&type=section&id=Adjusted%20EBITDA%20Guidance) Artivion maintains its adjusted EBITDA growth expectation for full-year 2024, projecting an increase of 28% to 34%, resulting in a range of $69 million to $72 million 2024 Full-Year Adjusted EBITDA Guidance | Metric | 2024 Guidance Range (Millions) | Growth (YoY) | | :-------------- | :----------------------------- | :----------- | | Adjusted EBITDA | $69 - $72 | 28% - 34% | [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Artivion uses non-GAAP financial measures, such as non-GAAP revenue, net income, adjusted EBITDA, and free cash flows, to provide investors with additional insights into its operational performance. These measures exclude certain items like depreciation, amortization, stock-based compensation, foreign currency revaluation, and acquisition-related expenses, which management believes do not directly correlate to underlying business operations or can vary significantly between periods - Non-GAAP financial measures include non-GAAP revenue, non-GAAP net income, non-GAAP adjusted EBITDA, non-GAAP general, administrative, and marketing expenses, and free cash flows[9](index=9&type=chunk) - Adjustments typically exclude depreciation and amortization, interest income and expense, stock-based compensation, foreign currency revaluation, income tax expense/benefit, corporate rebranding, business development, integration, severance, loss on extinguishment of debt, and non-cash interest expense[9](index=9&type=chunk) - The company uses non-GAAP measures to facilitate management's review of operational performance, for strategic planning, and to provide useful information to investors regarding unusual non-operating transactions and the operating expense structure[9](index=9&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of Artivion, Inc. and details regarding its Q3 2024 webcast and conference call [About Artivion, Inc.](index=3&type=section&id=About%20Artivion%2C%20Inc.) Artivion, Inc. is a medical device company based in Atlanta, Georgia, specializing in solutions for cardiac and vascular surgeons treating aortic diseases. Its product portfolio includes aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues, marketed in over 100 countries - Artivion, Inc. is a medical device company focused on developing solutions for cardiac and vascular surgeons treating patients with aortic diseases[13](index=13&type=chunk) - Major product groups include aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues[13](index=13&type=chunk) - The company markets and sells products in more than **100 countries** worldwide[13](index=13&type=chunk) [Webcast and Conference Call](index=3&type=section&id=Webcast%20and%20Conference%20Call) Artivion held a teleconference call and live webcast on November 7, 2024, to discuss its Q3 results, with replay information provided for those unable to attend live - A teleconference call and live webcast were held on November 7, 2024, at 4:30 p.m. ET to discuss the results[11](index=11&type=chunk) - The teleconference replay is available by calling 877-660-6853 or 201-612-7415 (conference number 13748263)[11](index=11&type=chunk) - The live webcast and replay can be accessed via the Investors section of Artivion's website at www.Artivion.com[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines that statements regarding future events, beliefs, expectations, or hopes are forward-looking and subject to various risks and uncertainties. These include the unpredictability of regulatory decisions, the realization of anticipated benefits from acquisitions and operational improvements, and the success of clinical trials and market expansion - Forward-looking statements reflect management's views at the time they are made and are subject to risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations[14](index=14&type=chunk) - Risks include the unpredictability of regulatory decisions, the achievement of anticipated benefits from the Ascyrus Medical LLC transaction and Endospan agreements, and the success levels of operational improvements in tissue and stent graft businesses[14](index=14&type=chunk) - Further risks involve the achievement of anticipated benefits from clinical trials and regulatory approvals on anticipated timelines, and the success of expansion into APAC and LATAM markets[15](index=15&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Artivion's condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows [Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The condensed consolidated statements of operations show a significant improvement in net loss for Q3 2024 and a shift to net income for the nine months ended September 30, 2024, driven by revenue growth and improved operating income Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | Metric (in Thousands) | Three Months Ended Sep 2024 | Three Months Ended Sep 2023 | Nine Months Ended Sep 2024 | Nine Months Ended Sep 2023 | | :-------------------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------------- | | Total Revenues | $95,779 | $87,854 | $291,229 | $260,334 | | Gross Margin | $61,009 | $56,270 | $187,279 | $168,081 | | Operating Income (Loss) | $4,387 | ($1,244) | $36,205 | $2,570 | | Net (Loss) Income | ($2,288) | ($9,801) | $3,124 | ($26,715) | | Diluted (Loss) Income Per Share | ($0.05) | ($0.24) | $0.07 | ($0.65) | [Balance Sheets](index=6&type=section&id=Balance%20Sheets) Artivion's balance sheet as of September 30, 2024, shows an increase in total assets and stockholders' equity compared to December 31, 2023, while total liabilities slightly decreased. Notable changes include a significant increase in the current portion of long-term debt Condensed Consolidated Balance Sheets | Metric (in Thousands) | September 30, 2024 | December 31, 2023 | | :-------------------------------- | :----------------- | :---------------- | | Total Current Assets | $287,958 | $280,668 | | Total Assets | $803,144 | $792,397 | | Total Current Liabilities | $152,838 | $57,862 | | Current Portion of Long-Term Debt | $99,698 | $1,451 | | Total Liabilities | $498,405 | $510,617 | | Total Stockholders' Equity | $304,739 | $281,780 | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, Artivion generated positive net cash flows from operating activities, while investing activities resulted in a net outflow. Financing activities provided a net inflow, primarily due to debt issuance, leading to a slight decrease in cash and cash equivalents Condensed Consolidated Statements of Cash Flows | Metric (in Thousands) | Nine Months Ended Sep 2024 | Nine Months Ended Sep 2023 | | :------------------------------------ | :------------------------- | :------------------------- | | Net Cash Flows from Operating Activities | $12,097 | $7,987 | | Net Cash Flows from Investing Activities | ($16,763) | $2,167 | | Net Cash Flows from Financing Activities | $2,029 | $2,495 | | (Decrease) Increase in Cash and Cash Equivalents | ($2,767) | $14,130 | | Cash and Cash Equivalents End of Period | $56,173 | $53,481 | - Proceeds from issuance of debt amounted to **$190,000 thousand** for the nine months ended September 30, 2024[19](index=19&type=chunk) [Financial Highlights by Product and Geography](index=9&type=section&id=Financial%20Highlights%20by%20Product%20and%20Geography) This section provides a detailed breakdown of Artivion's revenues by product category and geographic region for Q3 and the nine months ended September 30, 2024 [Product Revenue Breakdown](index=9&type=section&id=Product%20Revenue%20Breakdown) Artivion's product revenues for Q3 2024 showed strong growth across key categories, with aortic stent grafts, On-X, and surgical sealants being the primary drivers. Preservation services also contributed positively Product Revenue (in Thousands) | Product Category (in Thousands) | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue | | :------------------------------ | :-------------- | :-------------- | :-------------- | :-------------- | | Aortic Stent Grafts | $28,643 | $25,523 | $92,936 | $80,032 | | On-X | $21,478 | $18,744 | $61,804 | $54,346 | | Surgical Sealants | $18,437 | $16,234 | $53,963 | $49,503 | | Other Products | $2,686 | $3,246 | $6,865 | $8,160 | | Total Products | $71,244 | $63,747 | $215,568 | $192,041 | | Preservation Services | $24,535 | $24,107 | $75,661 | $68,293 | | Total Revenues | $95,779 | $87,854 | $291,229 | $260,334 | [Geographic Revenue Breakdown](index=9&type=section&id=Geographic%20Revenue%20Breakdown) Geographically, Artivion experienced robust revenue growth in Q3 2024, particularly in Europe, the Middle East, and Africa (EMEA), Asia Pacific, and Latin America, while North America also saw a modest increase Geographic Revenue (in Thousands) | Region (in Thousands) | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue | | :---------------------------- | :-------------- | :-------------- | :-------------- | :-------------- | | North America | $49,089 | $48,028 | $148,679 | $137,541 | | Europe, Middle East, and Africa | $30,423 | $26,536 | $98,156 | $84,608 | | Asia Pacific | $10,366 | $8,402 | $27,628 | $24,655 | | Latin America | $5,901 | $4,888 | $16,766 | $13,530 | | Total Revenues | $95,779 | $87,854 | $291,229 | $260,334 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of Artivion's GAAP financial results to various non-GAAP measures, illustrating adjustments for specific items [Reconciliation of Revenues](index=10&type=section&id=Reconciliation%20of%20Revenues) This section provides a detailed reconciliation of GAAP revenues to non-GAAP constant currency revenues for both product categories and geographic regions, highlighting the impact of exchange rate fluctuations on reported growth Reconciliation of Revenues by Product Category and Region **Three Months Ended September 30, 2024 (in Thousands):** | Product Category | 2024 GAAP | 2023 GAAP | Exchange Rate Effect | 2023 Constant Currency | % Change From Prior Year Constant Currency | | :--------------- | :-------- | :-------- | :------------------- | :--------------------- | :----------------------------------------- | | Aortic Stent Grafts | $28,643 | $25,523 | ($208) | $25,315 | 13% | | On-X | $21,478 | $18,744 | ($103) | $18,641 | 15% | | Surgical Sealants | $18,437 | $16,234 | ($128) | $16,106 | 14% | | Other | $2,686 | $3,246 | $1 | $3,247 | -17% | | Total Products | $71,244 | $63,747 | ($438) | $63,309 | 13% | | Preservation Services | $24,535 | $24,107 | ($22) | $24,085 | 2% | | Total Revenues | $95,779 | $87,854 | ($460) | $87,394 | 10% | **Nine Months Ended September 30, 2024 (in Thousands):** | Product Category | 2024 GAAP | 2023 GAAP | Exchange Rate Effect | 2023 Constant Currency | % Change From Prior Year Constant Currency | | :--------------- | :-------- | :-------- | :------------------- | :--------------------- | :----------------------------------------- | | Aortic Stent Grafts | $92,936 | $80,032 | $688 | $80,720 | 15% | | On-X | $61,804 | $54,346 | ($2) | $54,344 | 14% | | Surgical Sealants | $53,963 | $49,503 | ($10) | $49,493 | 9% | | Other | $6,865 | $8,160 | $4 | $8,164 | -16% | | Total Products | $215,568 | $192,041 | $680 | $192,721 | 12% | | Preservation Services | $75,661 | $68,293 | ($26) | $68,267 | 11% | | Total Revenues | $291,229 | $260,334 | $654 | $260,988 | 12% | **Three Months Ended September 30, 2024 (in Thousands):** | Region | 2024 GAAP | 2023 GAAP | Exchange Rate Effect | 2023 Constant Currency | % Change From Prior Year Constant Currency | | :---------------------------- | :-------- | :-------- | :------------------- | :--------------------- | :----------------------------------------- | | North America | $49,089 | $48,028 | ($50) | $47,978 | 2% | | Europe, Middle East, and Africa | $30,423 | $26,536 | $12 | $26,548 | 15% | | Asia Pacific | $10,366 | $8,402 | $1 | $8,403 | 23% | | Latin America | $5,901 | $4,888 | ($423) | $4,465 | 32% | | Total | $95,779 | $87,854 | ($460) | $87,394 | 10% | **Nine Months Ended September 30, 2024 (in Thousands):** | Region | 2024 GAAP | 2023 GAAP | Exchange Rate Effect | 2023 Constant Currency | % Change From Prior Year Constant Currency | | :---------------------------- | :-------- | :-------- | :------------------- | :--------------------- | :----------------------------------------- | | North America | $148,679 | $137,541 | ($57) | $137,484 | 8% | | Europe, Middle East, and Africa | $98,156 | $84,608 | $994 | $85,602 | 15% | | Asia Pacific | $27,628 | $24,655 | $0 | $24,655 | 12% | | Latin America | $16,766 | $13,530 | ($283) | $13,247 | 27% | | Total | $291,229 | $260,334 | $654 | $260,988 | 12% | [Reconciliation of G&A, Adjusted EBITDA, and Free Cash Flows](index=11&type=section&id=Reconciliation%20of%20G%26A%2C%20Adjusted%20EBITDA%2C%20and%20Free%20Cash%20Flows) This section reconciles GAAP General, Administrative, and Marketing (G&A) expense to adjusted non-GAAP G&A, GAAP net loss to adjusted EBITDA, and GAAP cash flows from operating activities to non-GAAP free cash flows, detailing the specific adjustments made for each metric Reconciliation of G&A Expense, GAAP to Adjusted G&A, Non-GAAP **Reconciliation of G&A expense, GAAP to adjusted G&A, non-GAAP (in Thousands):** | Metric | Three Months Ended Sep 2024 | Three Months Ended Sep 2023 | Nine Months Ended Sep 2024 | Nine Months Ended Sep 2023 | | :-------------------------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------------- | | General, administrative, and marketing expense, GAAP | $50,017 | $51,093 | $130,026 | $158,699 | | Business development, integration, and severance expense (income) | $3,431 | $6,363 | ($11,923) | $22,461 | | Corporate rebranding expense | $0 | $65 | $0 | $283 | | Adjusted G&A, non-GAAP | $46,586 | $44,665 | $141,949 | $135,955 | Reconciliation of Net Loss, GAAP to Adjusted EBITDA, Non-GAAP **Reconciliation of net loss, GAAP to adjusted EBITDA, non-GAAP (in Thousands):** | Metric | Three Months Ended Sep 2024 | Three Months Ended Sep 2023 | Nine Months Ended Sep 2024 | Nine Months Ended Sep 2023 | | :-------------------------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------------- | | Net (loss) income, GAAP | ($2,288) | ($9,801) | $3,124 | ($26,715) | | Interest expense | $8,405 | $6,603 | $24,535 | $19,055 | | Depreciation and amortization expense | $6,110 | $5,759 | $17,910 | $17,260 | | Business development, integration, and severance expense (income) | $3,431 | $6,122 | ($11,923) | $26,844 | | Stock-based compensation expense | $3,769 | $3,187 | $11,499 | $10,466 | | Income tax expense | $1,022 | $382 | $5,964 | $5,720 | | Loss on extinguishment of debt | $0 | $0 | $3,669 | $0 | | Interest income | ($366) | ($339) | ($1,093) | ($679) | | (Gain) loss on foreign currency revaluation | ($2,382) | $1,882 | ($29) | $112 | | Abandonment of CardioGenesis Cardiac laser therapy business | $0 | $0 | $0 | $390 | | Corporate rebranding expense | $0 | $65 | $0 | $283 | | Gain from sale of non-financial assets | $0 | $0 | $0 | ($14,250) | | Adjusted EBITDA, non-GAAP | $17,701 | $13,860 | $53,656 | $38,486 | Reconciliation of Cash Flows from Operating Activities, GAAP to Free Cash Flows, Non-GAAP **Reconciliation of cash flows from operating activities, GAAP to free cash flows, non-GAAP (in Thousands):** | Metric | Three Months Ended Sep 2024 | Three Months Ended Sep 2023 | Nine Months Ended Sep 2024 | Nine Months Ended Sep 2023 | | :-------------------------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------------- | | Net cash flows provided by operating activities | $11,455 | $7,232 | $12,097 | $7,987 | | Capital expenditures | ($3,639) | ($2,068) | ($9,763) | ($7,083) | | Free cash flows, non-GAAP | $7,816 | $5,164 | $2,334 | $904 | [Reconciliation of Net Income and EPS](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20and%20EPS) This section reconciles GAAP net income (loss) and diluted EPS to their non-GAAP adjusted counterparts, detailing the specific adjustments for items like business development expenses, amortization, and non-cash interest, and their tax effects Reconciliation of (Loss) Income Before Income Taxes, GAAP to Adjusted Income, Non-GAAP **Reconciliation of (loss) income before income taxes, GAAP to adjusted income, non-GAAP (in Thousands):** | Metric | Three Months Ended Sep 2024 | Three Months Ended Sep 2023 | Nine Months Ended Sep 2024 | Nine Months Ended Sep 2023 | | :-------------------------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------------- | | (Loss) income before income taxes, GAAP | ($1,266) | ($9,419) | $9,088 | ($20,995) | | Business development, integration, and severance expense (income) | $3,431 | $6,122 | ($11,923) | $26,844 | | Amortization expense | $3,990 | $3,766 | $11,650 | $11,453 | | Loss on extinguishment of debt | $0 | $0 | $3,669 | $0 | | Non-cash interest expense | $546 | $465 | $1,610 | $1,391 | | Abandonment of CardioGenesis Cardiac laser therapy business | $0 | $0 | $0 | $390 | | Corporate rebranding expense | $0 | $65 | $0 | $283 | | Gain from sale of non-financial assets | $0 | $0 | $0 | ($14,250) | | Adjusted income before income taxes, non-GAAP | $6,701 | $999 | $14,094 | $5,116 | | Income tax expense calculated at a tax rate of 25% | $1,675 | $250 | $3,523 | $1,279 | | Adjusted net income, non-GAAP | $5,026 | $749 | $10,571 | $3,837 | Reconciliation of Diluted Income (Loss) Per Common Share, GAAP to Adjusted Diluted Income Per Common Share, Non-GAAP **Reconciliation of diluted income (loss) per common share, GAAP to adjusted diluted income per common share, non-GAAP:** | Metric | Three Months Ended Sep 2024 | Three Months Ended Sep 2023 | Nine Months Ended Sep 2024 | Nine Months Ended Sep 2023 | | :-------------------------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------------- | | Diluted (loss) income per common share, GAAP | ($0.05) | ($0.24) | $0.07 | ($0.65) | | Business development, integration, and severance expense (income) | $0.08 | $0.15 | ($0.28) | $0.65 | | Amortization expense | $0.09 | $0.09 | $0.27 | $0.28 | | Loss on extinguishment of debt | $0 | $0 | $0.09 | $0 | | Non-cash interest expense | $0.02 | $0.01 | $0.04 | $0.03 | | Abandonment of CardioGenesis Cardiac laser therapy business | $0 | $0 | $0 | $0.01 | | Corporate rebranding expense | $0 | $0 | $0 | $0.01 | | Gain from sale of non-financial assets | $0 | $0 | $0 | ($0.34) | | Tax effect of non-GAAP adjustments | ($0.05) | ($0.06) | ($0.03) | ($0.17) | | Effect of 25% tax rate | $0.03 | $0.07 | $0.09 | $0.27 | | Adjusted diluted income per common share, non-GAAP | $0.12 | $0.02 | $0.25 | $0.09 |
Artivion Reports Third Quarter 2024 Financial Results
Prnewswire· 2024-11-07 21:05
Financial Performance - Total revenues for Q3 2024 were $95.8 million, a 9% increase on a GAAP basis and a 10% increase on a non-GAAP constant currency basis compared to Q3 2023 [2][3] - Net loss for Q3 2024 was ($2.3) million or ($0.05) per fully diluted share, an improvement from a net loss of ($9.8) million or ($0.24) per fully diluted share in Q3 2023 [2][20] - Non-GAAP net income for Q3 2024 was $5.0 million or $0.12 per fully diluted share, compared to $749,000 or $0.02 per fully diluted share in Q3 2023 [2][20] - Adjusted EBITDA increased by 28% to $17.7 million in Q3 2024 compared to $13.9 million in Q3 2023 [2][20] Revenue Growth Drivers - Revenue growth in Q3 2024 was driven by On-X growth of 15%, BioGlue growth of 14%, and stent grafts growth of 12% compared to Q3 2023 [2][3] - Revenue in Asia Pacific and Latin America grew by 23% and 21% respectively, with constant currency growth of 23% and 32% [2][3] Regulatory and R&D Developments - The company submitted the first module of the pre-market approval application for AMDS Hybrid Prosthesis to the FDA [2][3] - Enrollment was completed in the NEXUS TRIOMPHE clinical trial [2][3] - BioGlue Surgical Adhesive received regulatory approval from the NMPA for commercialization in China, expected in the second half of 2025 [2][3] Financial Outlook - The company narrowed its revenue guidance for 2024, expecting constant currency revenue growth of 10% to 12%, with a revised range of $389 to $396 million [3] - Adjusted EBITDA growth is expected to be between 28% and 34% for the full year 2024, resulting in an expected range of $69 to $72 million [3]
Artivion to Participate in Upcoming Investor Conferences
Prnewswire· 2024-11-05 21:15
Company Participation in Investor Conferences - Artivion, Inc. will participate in the Stifel 2024 Healthcare Conference on November 19, 2024, with a presentation scheduled to begin at 1:15 p.m. ET [2] - The management team will also host one-on-one meetings at the Canaccord Genuity MedTech, Diagnostics and Digital Health & Services Forum on November 21, 2024, in New York [3] Company Overview - Artivion, Inc. is a medical device company headquartered in suburban Atlanta, Georgia, focusing on solutions for cardiac and vascular surgeons dealing with aortic diseases [4] - The company offers four major product groups: aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues, marketing products in over 100 countries [4]
Artivion Announces Release Date and Teleconference Call Details for Third Quarter 2024 Financial Results
Prnewswire· 2024-10-24 20:15
ATLANTA, Oct. 24, 2024 /PRNewswire/ -- Artivion, Inc. (NYSE: AORT), a leading cardiac and vascular surgery company focused on aortic disease, announced today that third quarter 2024 financial results will be released on Thursday, November 7, 2024 after the market closes. On that day, the Company will hold a teleconference call and live webcast at 4:30 p.m. ET to discuss the results, followed by a question and answer session hosted by Pat Mackin, Chairman, President and Chief Executive Officer of Artivion.To ...
Artivion Announces Presentation of Late-Breaking Clinical Data at the 38th European Association for Cardio-Thoracic Surgery (EACTS) Annual Meeting
Prnewswire· 2024-10-10 20:10
Core Insights - Artivion, Inc. presented significant clinical trial data at the 38th EACTS Annual Meeting, showcasing the effectiveness of its AMDS Hybrid Prosthesis and E-vita Open Neo in treating aortic diseases [1][3]. Group 1: AMDS DARTS Trial - The 5-year data from the AMDS DARTS trial indicates that 94% of patients were free from aortic reoperation, significantly higher than the 76% reported in existing literature for hemiarch-only outcomes [4][5]. - Additionally, 95% of patients showed no total aortic diameter (TAD) growth greater than 5 mm between the 3-year and 5-year follow-up periods [4]. - The trial involved 25 out of 46 participants with acute DeBakey Type I dissection, demonstrating durable benefits over five years [4][10]. Group 2: AMDS PERSEVERE Trial - The 30-day data from the AMDS PERSEVERE trial revealed that 90% of patients with pre-operative cerebral malperfusion experienced resolution post-implantation [6][7]. - Among those with cerebral malperfusion, 63% had complete resolution, while 26% showed no worsening of symptoms [6]. - The trial's stroke occurrence rate was 10.8%, significantly lower than the 20.9% reported in literature for hemiarch procedures [7]. Group 3: E-vita Open Neo NEOS Study - The 1-year data from the NEOS study indicated a mortality rate of 9.9% for E-vita Open Neo, which is better than the 10.8% for the current market-leading device [8][9]. - The combined major adverse events rate for E-vita Open Neo was 17%, compared to 23.1% for the leading alternative [8]. - The study included 161 participants and demonstrated the safety and effectiveness of E-vita Open Neo in treating aortic arch pathologies [8][13].
Artivion(AORT) - 2024 Q2 - Earnings Call Presentation
2024-08-10 18:46
2Q 2024 Earnings Presentation August 8, 2024 1 © 2024 Artivion, Inc. FORWARD-LOOKING STATEMENT Statements made in this presentation that look forward in time or that express management's beliefs, expectations, or forecasts 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 will deliver between $388 - $396 mi ...
Artivion(AORT) - 2024 Q2 - Earnings Call Transcript
2024-08-10 18:45
Financial Data and Key Metrics Changes - In Q2 2024, the company reported total revenues of $98 million, reflecting a 10% increase year-over-year in constant currency [6][17] - Adjusted EBITDA grew 35% year-over-year, increasing from $13.8 million to $18.6 million, with an adjusted EBITDA margin of 19%, a 350-basis-point improvement [6][17] - General administrative and marketing expenses decreased from $57.2 million in Q2 2023 to $49.3 million in Q2 2024, indicating improved expense management [17][20] Business Line Data and Key Metrics Changes - On-X revenues increased by 15% year-over-year on a constant currency basis, driven by market share gains [7][17] - Stent graft revenues grew 13% year-over-year, supported by a differentiated product portfolio [8][17] - BioGlue revenues rose 12% year-over-year, with expectations of mid-single-digit growth for the full year [9][17] - Tissue processing revenues increased by 7% year-over-year, with expectations for double-digit growth for the full year [10][17] Market Data and Key Metrics Changes - Revenues in Latin America increased by 25% year-over-year, while Asia-Pacific revenues grew by 15% [11][19] - EMEA revenues rose by 13%, and North America saw a 5% increase compared to Q2 2023 [19] Company Strategy and Development Direction - The company is focused on expanding access to its differentiated product portfolio in existing and new markets, particularly in Latin America and Asia-Pacific [7][11] - The amended agreements with Endospan are viewed as an investment in the future of aortic repair, providing greater financial flexibility [15][21] - The company anticipates PMA approval for AMDS in 2025, which would open a $150 million addressable market in the U.S. [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum throughout 2024, driven by growth in On-X, stent grafts, and SynerGraft pulmonary valves [15][25] - The company raised its fiscal year 2024 revenue guidance to a growth range of 10% to 12% and adjusted EBITDA guidance to $69 million to $72 million [22][23] - Management highlighted the potential for double-digit growth in the long term, supported by a strong product pipeline and market position [46][47] Other Important Information - The company does not anticipate the need to raise additional capital to fund its debt obligations or investments in the foreseeable future [21] - Free cash flow was reported at $3.6 million for Q2 2024, with expectations for positive free cash flow for the full year [20] Q&A Session Summary Question: Clarification on EBITDA growth and investments - Management indicated that Q3 growth may be lighter than Q2 due to timing, with Q3 typically being the lowest revenue quarter [30] Question: On-X unit growth and pricing - Management did not break out price versus volume but confirmed continued market share growth and price increases for On-X [31][32] Question: On NEXUS trial enrollment and commercial adoption - Management noted that the trial is nearing completion, with expectations for modest uptake upon launch, followed by further trials [39][40] Question: Sales rep productivity and commission structure - Management highlighted the effectiveness of the sales force, with experienced reps capable of driving growth without needing to scale one-to-one with revenue [42][43] Question: Long-term growth expectations - Management expressed confidence in maintaining double-digit growth and leveraging the existing product portfolio for future growth [46][47] Question: BioGlue performance and outlook - Management noted strong growth in Q2 but cautioned against projecting that growth consistently due to the lumpy nature of the business [55] Question: Aortic stent graft portfolio performance - Management confirmed strong double-digit growth across the differentiated stent graft segment, without breaking out specific SKUs [57]
Artivion(AORT) - 2024 Q2 - Quarterly Report
2024-08-09 15:47
Revenue Performance - Artivion reported quarterly revenues of $98.0 million for the three months ended June 30, 2024, a 10% increase from $89.3 million in the same period of 2023[117]. - Revenues from aortic stent grafts increased by 14% to $32.2 million for the three months ended June 30, 2024, compared to $28.4 million in the same period of 2023[123]. - On-X product revenues rose by 15% to $20.6 million for the three months ended June 30, 2024, up from $17.9 million in the prior year[123]. - Surgical sealants revenues increased by 12% to $18.5 million for the three months ended June 30, 2024, compared to $16.6 million in the same period of 2023[123]. - Preservation services revenues grew by 7% to $24.8 million for the three months ended June 30, 2024, from $23.2 million in the same period of 2023[123]. - Total revenues for the six months ended June 30, 2024, were $195.5 million, reflecting a 13% increase from $172.5 million in the same period of 2023[124]. - Constant currency revenues increased by 10% for the three months ended June 30, 2024, and by 13% for the six months ended June 30, 2024, compared to the same periods in 2023[130]. - Aortic stent grafts accounted for 33% of total revenues for the three months ended June 30, 2024, up from 32% in the same period of 2023[123]. - The company anticipates continued growth in revenues driven by increased sales of aortic stent grafts, On-X products, and surgical sealants[131]. - Revenues from the sales of aortic stent grafts increased 18% for the six months ended June 30, 2024, compared to the same period in 2023, driven by increased unit sales and higher average sales prices[134]. - Revenues from On-X products increased 15% for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to increased unit sales[136]. - Domestic revenues from On-X products accounted for 59% and 61% of total On-X revenues for the three and six months ended June 30, 2024, respectively, up from 58% and 59% in the same periods of 2023[138]. - Revenues from surgical sealants increased 12% for the three months ended June 30, 2024, compared to the same period in 2023, mainly due to increased volume sold[139]. - Revenues from tissue processing increased 16% for the six months ended June 30, 2024, compared to the same period in 2023, driven by higher average sales prices[147]. Cost and Expenses - Cost of products increased 17% and 19% for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023, due to higher costs of aortic stent grafts and increased shipping volumes[148]. - Gross margin increased 9% and 13% for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023, remaining flat at 65% as a percentage of total revenues[152]. - General, administrative, and marketing expenses decreased 14% and 26% for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023, primarily due to reduced business development expenses[157]. - Other revenues decreased 42% and 15% for the three and six months ended June 30, 2024, respectively, due to a decrease in PerClot product revenues[143]. Financial Position - Net working capital as of June 30, 2024, was $234.4 million, with a current ratio of 6 to 1, compared to $222.8 million and a current ratio of 5 to 1 at December 31, 2023[171]. - The company incurred a net loss of $2.121 million for the three months ended June 30, 2024, compared to a net loss of $3.382 million for the same period in 2023, while net income for the six months ended June 30, 2024, was $5.412 million compared to a net loss of $16.914 million for the same period in 2023[164]. - The effective income tax rate was a benefit of 13% for the three months ended June 30, 2024, compared to an expense of 27% for the same period in 2023, and an expense of 48% for the six months ended June 30, 2024, compared to 46% for the same period in 2023[165]. - The company has $320.3 million in scheduled principal payments and $138.1 million in anticipated interest payments related to its debt obligations[190]. - As of June 30, 2024, approximately 29% of cash and cash equivalents were held in foreign jurisdictions[183]. - An additional 10% adverse change in exchange rates could impact the company's financial position or cash flows by approximately $7.0 million[198]. Debt and Financing - Interest expense rose to $8.3 million and $16.1 million for the three and six months ended June 30, 2024, respectively, compared to $6.4 million and $12.5 million for the same periods in 2023, primarily due to increased interest rates from debt refinancing[161]. - The company recorded a loss on extinguishment of debt of $3.7 million during the six months ended June 30, 2024, related to the extinguishment of a previously existing term loan[162]. - The company entered into a credit and guaranty agreement for $350.0 million on January 18, 2024, consisting of a $190.0 million secured term loan facility and a $60.0 million secured revolving credit facility[175]. - The company recognized $6.9 million and $12.7 million of interest expense on the Credit Facilities for the three and six months ended June 30, 2024, respectively[176]. - The fair value of the $100.0 million Convertible Senior Notes issued on June 18, 2020, was approximately $125.5 million as of June 30, 2024, with an effective interest rate of 5.05%[180]. - The company is eligible to redeem the Convertible Senior Notes starting July 5, 2023, if certain stock price conditions are met[182]. Cash Flow and Investments - Cash flows from operating activities decreased to $642,000 for the six months ended June 30, 2024, down from $755,000 in the same period of 2023, representing a decline of approximately 15%[186]. - Net cash used in investing activities was $6.1 million for the six months ended June 30, 2024, compared to net cash provided of $4.2 million in the same period of 2023, indicating a significant shift of $10.3 million[188]. - Net cash provided by financing activities decreased to $556,000 for the six months ended June 30, 2024, down from $3.4 million in 2023, a decline of approximately 84%[189]. - Capital expenditures for the six months ended June 30, 2024, were $6.1 million, slightly up from $5.0 million in the same period of 2023[193]. - The company has contingent payment obligations of up to $100.0 million to former shareholders of Ascyrus upon achieving certain milestones[191].
Artivion(AORT) - 2024 Q2 - Quarterly Results
2024-08-08 20:06
Exhibit 99.1 FOR IMMEDIATE RELEASE 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 Artivion Reports Second Quarter 2024 Financial Results Second Quarter Highlights: • Achieved revenue of $98.0 million in the second quarter of 2024 versus $89.3 million in the second quarter of 2023, an increase of 10% on both a GAAP and constant currency basis • Net loss was ($ ...