CryoLife reports Q2 earnings, turns from loss to profit

CryoLife Inc. (NYSE:CRY) today saw shares sharply rise after releasing 2nd quarter results, seeing profits where there were losses in 2015.

The company reported profits of $2.3 million, or 7¢ per share, on sales of $47.1 million for the 3 months ended June 30.

The $2.3 million profit is a huge turnaround from Atlanta, Ga.-based Cryolife, which reported losses of $502,000 during the same period last year, with losses per share at 2¢.

After adjusting to include 1-time items, profits this quarter were $4.3 million and earnings per share were at 13¢, both up over 200% from the 2nd quarter of 2015.

Shares soared today, trading up 13.3% at $13.62 as of 11:42 a.m. EDT

“I’m pleased to report the 2nd quarter was a success on several fronts.  The company posted strong financial results and is tracking ahead of schedule on several key operational initiatives.  Our expanded U.S. cardiac surgery sales force is increasing the awareness and availability of the On-X product portfolio to a broader customer base while also driving sales of BioGlue and our tissue preservation services.  Outside of the U.S., we are now selling On-X in all of our direct markets.  Our decision to streamline our focus and product portfolio on the cardiac surgery market, combined with selling direct in more markets than ever before, is driving positive performance and strengthening our competitive position globally.  We also continue to benefit from the enhancements to our tissue processing operations, which along with the revenue performance, contributed to strong gross margin and profitability in the quarter.  On the clinical front, we recently received FDA approval for the updated protocol for our PerClot IDE trial and expect to restart patient enrollment later this year, keeping us on track for potential FDA approval in the 1st half of 2019.  Given our strong overall performance and momentum through the 1st half of the year, we are increasing our 2016 revenue, gross margin, and EPS guidance and remain very confident in our ability to capitalize on the large opportunity our markets offer,” CEO J. Mackin said in a press release.

Along with the earnings release, Cryolife adjusted its guidance for the upcoming year. The company lifted its sights in terms of revenue, expecting to see between $180 and $182 million – up from $178 to $180 million.

Earnings per share rose for the coming year, with the company expecting between 32¢ and 34¢, up from between 29¢ and 32¢ it previously expected.

In April, CryoLife said it exercised its right to acquire Genesee BioMedical’s PhotoFix bovine pericardium patch for $2.3 million in cash. Cryolife said it had the option to purchase the patches after acquiring the distribution rights and a purchase option for PhotoFix in August 2014.

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