- Third quarter revenue of $60.5
million; nine months 2022 revenue reaches $176.9 million; Cryoport Systems' revenue up 25%
year-over-year
- $530 million in cash and
short-term investments
- Supporting a record 643 global clinical trials; 61 net new
trials added (year-over-year)
- Entered strategic relationship with Takeda's BioLife Plasma
Services for apheresis collection and leukopak production
- Record number of new products and offerings slated to be
released by Cryoport in 2023
NASHVILLE, Tenn., Nov. 3, 2022 /PRNewswire/ --
Cryoport, Inc. (NASDAQ: CYRX) ("Cryoport" or the "Company"), a
global leader in temperature-controlled supply chain solutions for
the life sciences industry, today announced financial results for
the three- and nine-month periods ended September
30, 2022.
Jerrell Shelton, CEO of Cryoport,
commented, "Like many companies that operate globally, we were
subject to macroeconomic headwinds during the third quarter and
expect some of these pressures will extend into the fourth quarter.
Specifically, during the third quarter, we experienced a
convergence of macroeconomic pressures that impacted revenue
including: a negative foreign exchange impact of $2.6 million due to the increased strength of the
U.S. dollar against certain foreign currencies; recurring COVID
lockdowns in China; supply chain
related issues; the Russia/Ukraine war and its ripple effect throughout
Europe; and industry capacity
limitations, which interfered with cell and gene therapy commercial
revenue acceleration.
"During the third quarter, we also saw a shift in cryogenic
freezer sales through distributors to smaller, lower cost units as
customers became more reserved in regard to capital purchases. Like
any company that sells a broad range of products, we expect to
experience some level of order variability during any given
quarter. However, the shift in the third quarter was sharp
and is likely tied to concerns about the general economic
environment. As of now, we see this purchasing trend continuing in
the fourth quarter, but we remain confident that the life sciences
market fundamentals are sound and will continue to drive long-term
demand for our comprehensive set of products and services.
"We have not seen erosion in demand from our key cell and gene
therapy customers as Cryoport Systems grew over 25% year-over-year
and as we continued to increase the number of clinical programs
that Cryoport supports, adding another 17 clinical trials during
the quarter, bringing our total to a record 643 global clinical
trials. However, the impact from the previously mentioned
macroeconomic factors affected other parts of our business and
prompts us to reevaluate our annual guidance for 2022. Based on
these factors, we are now anticipating full year 2022 revenue to be
in the range of $232 million to
$238 million.
"Despite these headwinds impacting our second half 2022
performance, we remain positive given the persistent demand from
our target markets. We are optimistic about further advancing
our leadership position in providing temperature-controlled supply
chain solutions to the life sciences industry and expect to resume
our overall growth as macroeconomic conditions subside and as our
new products and services launch in 2023. We continue to position
ourselves for anticipated rapid growth in the cell and gene
industry, through product and service developments including our
newly commissioned Cryoport Systems Global Supply Chain Center
Network, the expected launches of the Cryoportal®
Logistics Management System 2.0, SkyTraxTM, a
revolutionary condition monitoring system, the
CryoSphereTM, a revolutionary Elite™ shipper that
reduces shipping risks for cell and gene therapies, new model
launches of MVE Vario® and MVE Fusion®
freezers, and our Direct-to-Patient service over the next few
quarters. These new products and services are expected to further
expand our market presence, create new future revenue streams, and
enable us to support the growing number of commercial cell and gene
therapy products more broadly.
"Our efforts to proactively address our macroeconomic challenges
are far ranging. We are entering the market for apheresis
collection to answer the industry need for better starting
materials in cell and gene therapies through our recently
announced strategic relationship with Takeda's BioLife Plasma
Services. This partnership is expected to generate new revenues for
Cryoport beginning in 2023 and stretching over years to come. We
believe Cryoport has never been stronger with significant industry
changing business development initiatives underway. We feel that
these strategic actions will strengthen our business and position
us to begin to take advantage of opportunities in 2023 and beyond.
The commitment of our team is resolute and its commitment to
deliver solutions that support life-saving cell and gene therapies
is second to none," concluded Mr. Shelton.
In tabular form, revenue by market for the three- and nine-month
periods ended September 30, 2022, as
compared to the same periods in 2021 was as follows:
Cryoport, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Total revenues by
market
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
(in
thousands)
|
2022
|
2021
|
%
Change
|
|
2022
|
2021
|
%
Change
|
Biopharma/Pharma
|
$
48,570
|
$
46,001
|
6 %
|
|
$
143,309
|
$
133,878
|
7 %
|
Animal
Health
|
9,629
|
8,261
|
17 %
|
|
25,985
|
25,655
|
1 %
|
Reproductive
Medicine
|
2,265
|
2,431
|
-7 %
|
|
7,625
|
6,635
|
15 %
|
Total
revenues
|
$
60,464
|
$
56,693
|
7 %
|
|
$
176,919
|
$
166,168
|
6 %
|
As of September 30, 2022, the
Company supported nine (9) commercial therapies and a total of 643
global clinical trials, a net increase of 61 clinical trials over
third quarter 2021 and a net increase of 41 clinical trials from
year-end 2021. The number of trials in Phase 3 was 80 as of
September 30, 2022. The number of
trials by phase and region are as follows:
Cryoport Supported
Clinical Trials by Phase
|
|
|
|
|
Clinical
Trials
|
September
30,
|
2020
|
2021
|
2022
|
Phase 1
|
207
|
240
|
268
|
Phase 2
|
244
|
272
|
295
|
Phase 3
|
66
|
70
|
80
|
Total
|
517
|
582
|
643
|
|
|
|
|
Cryoport Supported
Clinical Trials by Region
|
|
|
|
|
Clinical
Trials
|
September
30,
|
2020
|
2021
|
2022
|
Americas
|
411
|
459
|
496
|
EMEA
|
83
|
92
|
105
|
APAC
|
23
|
31
|
42
|
Total
|
517
|
582
|
643
|
During the third quarter of 2022, bluebird bio's
SKYSONA® received FDA approval for Early, Active
Cerebral Adrenoleukodystrophy (CALD), bluebird bio's
ZYNTEGLO® received FDA approval for Beta-thalassemia,
Gilead/Kite's Tecartus® received approval from the
European Commission for the treatment of relapsed or refractory
(r/r) B-cell precursor acute lymphoblastic leukemia (ALL), and
subsequent to quarter end, Gilead/Kite's Yescarta®
received approval as a second line treatment for Diffuse Large
B-cell Lymphoma (DLBCL) from the European Commission. A total of
two (2) Cryoport supported Biologic License Applications (BLAs)
were filed in the third quarter, bringing the number of filings
through September 30, 2022, to six
(6). During the remainder of 2022, we anticipate up to an
additional seven (7) filings, and two (2) new therapy approvals. We
are now forecasting a combined total of 26 BLA or MAA filings in
2023, up three (3) from our previous estimate of 23 filings.
In addition, during the third quarter Cryoport entered a
strategic relationship with Takeda's BioLife Plasma Services,
intended to provide consistent, high-quality cellular starting
material for use in the manufacture of cell therapies. By bringing
together Takeda's BioLife Plasma Services' proficiency in apheresis
collection through their donation center infrastructure with
Cryoport's expanding capabilities and expertise in the
temperature-controlled supply chain, the companies aim to establish
a standardized, integrated apheresis collection, processing, and
distribution solution dedicated to cell and gene therapies.
Importantly, the new platform will leverage the cryo-processing
expertise of Cell Matters, which Cryoport acquired in late
July 2022. Operations are expected to
begin in early 2023 with apheresis scheduling and collections to be
initiated by Takeda's BioLife Plasma Services in the Houston area supported by Cryoport
cryo-processing capabilities being established near our
Houston, Texas Global Supply Chain
Center. Cryoport will provide supply chain solutions inclusive of
packaging, logistics, data management, consulting, program
management, cryo-processing, and bioservices.
Financial Highlights
Total revenue for the third quarter of 2022 was $60.5 million compared to $56.7 million for the third quarter of 2021, a
year-over-year increase of 7% or $3.8
million, and 11% at constant currency, driven by the
continued demand for Cryoport's comprehensive supply chain
solutions and systems.
- Biopharma/Pharma revenue increased to $48.6 million, up 6% or $2.6 million for the third quarter of 2022
compared to $46.0 million for the
third quarter of 2021. Revenue from commercial therapies was
$4.2 million, an increase of 23%
compared to the third quarter of 2021. Overall, revenue growth in
this market continued to be driven by the support of global
clinical trials and commercially launched therapies as well as
general demand for our temperature-controlled systems, logistics
and biostorage services. As noted above, revenue growth was
adversely impacted by certain macroeconomic conditions, including,
but not limited to, the foreign currency fluctuations impacting our
global business, recurring COVID lockdowns in China that temporarily impacted our MVE
Biological Solutions manufacturing facility and other parts of our
business, the Russia/Ukraine conflict impacting CRYOPDP's shipping
volumes and non-cell and gene clinical trial dynamics in EMEA, and
a more cautious approach by customers related to capital
allocations due to the macroeconomic environment and heightened
inflationary concerns.
- Animal Health revenue increased to $9.6
million, up 17% or $1.4
million for the third quarter of 2022 compared to
$8.3 million for the third quarter of
2021.
- Reproductive Medicine revenue was $2.3
million, down 7% or $0.2
million for the third quarter of 2022 compared to
$2.4 million for the third quarter of
2021.
Total revenue for the nine months ended September 30, 2022, increased to $176.9 million compared to $166.2 million for the same period in 2021, a
year-over-year increase of 6% or $10.8
million, and 10% at constant currency. Revenue for the nine
months ended September 30, 2022 was
adversely impacted by approximately $9.4
million during the first quarter of 2022 from the fire at
our New Prague, Minnesota
manufacturing facility.
- Biopharma/Pharma revenue increased to $143.3 million, a gain of 7% or $9.4 million for the nine months ended
September 30, 2022, compared to
$133.9 million for the same period in
2021. Revenue from commercial therapies increased to $12.1 million, a gain of 31% or $2.8 million for the nine months ended
September 30, 2022, compared to the
same period in 2021.
- Animal Health revenue was $26.0
million, an increase of 1% or $0.3
million for the nine months ended September 30, 2022, compared to the same period
in 2021.
- Reproductive Medicine revenue increased to $7.6 million, a gain of 15% or $1.0 million for the nine months ended
September 30, 2022, compared to the
same period in 2021. This increase was driven by strong demand for
our CryoStork® logistics solutions and Cryoport
Express® cryogenic shippers.
Gross margin was 43.7% for the third quarter of 2022, an
increase of 222 basis points from 41.5% in the third quarter of
2021. Gross margin was 43.9% for the nine months ended September 30, 2022, compared to 44.2% for the
same period in 2021. Gross margins were primarily impacted by
increased costs due to global supply chain constraints, as well as
the ramp up of resources to support the expected increase in demand
for our solutions and the opening of two global supply chain
centers.
Operating costs and expenses increased by $6.1 million, or 22% to $34.2 million for the third quarter of 2022
compared to $28.1 million for the
third quarter of 2021. The increase was primarily attributable to
the further build out of our competencies, global infrastructure,
and technology development to support the continuing scaling of our
business, broadening of our solutions and expected demand for
Cryoport's systems and solutions. Operating costs and expenses
increased for the nine months ended September 30, 2022 by $15.5 million, or 19% to $98.5 million compared to $82.9 million for the same period in the prior
year.
Net loss for the three- and nine-month periods ended
September 30, 2022 was $5.3 million and $27.9
million, respectively, compared to a net loss of
$6.5 million and $15.4 million for the same periods in 2021,
respectively. Net loss for the three- and nine-month periods ended
September 30, 2022 was partially
impacted by a non-cash expense of $3.9
million and $12.5 million,
respectively, related to unrealized losses on the mark-to-market
value of certain securities investments, which was partially offset
by a gain of $4.8 million recognized
during the third quarter of 2022, as a result of business
interruption and related insurance coverage related to the fire
damage at our New Prague,
Minnesota manufacturing facility.
Net loss attributable to common stockholders was $7.3 million, or $0.15 per share and $33.9
million, or $0.69 per share,
for the three- and nine-month periods ended September 30, 2022, respectively. This compares
to a net loss attributable to common stockholders of $8.5 million, or $0.18 per share and $21.6
million, or $0.48 per share,
for the three- and nine-month periods ended September 30, 2021, respectively.
Adjusted EBITDA was $4.7 million
for the third quarter of 2022, compared to $6.0 million for the third quarter of 2021.
Adjusted EBITDA for the nine months ended September 30, 2022 was $13.0 million compared to $19.1 million for the same period in 2021. The
decrease for the nine-month period primarily reflects the impact
from the fire at our New Prague,
Minnesota manufacturing facility during the first quarter of
2022 and increased investments in our growth initiatives.
Cryoport held $530 million in
cash, cash equivalents, and short-term investments as of
September 30, 2022.
Share Repurchase: On March 11,
2022, the Company announced that its board of directors
authorized a repurchase program through December 31, 2025, authorizing the repurchase of
common stock and/or convertible senior notes in the amount of up to
$100.0 million. During the nine
months ended September 30, 2022, the
Company purchased 1,341,571 shares of its common stock under this
program, at an average price of $24.84 per share, for an aggregate amount of
$33.3 million. These shares were
returned to the status of authorized but unissued shares of common
stock.
Note: All reconciliations of GAAP to adjusted (non-GAAP)
figures above are detailed in the reconciliation tables included
later in the press release.
Outlook
The Company's revised revenue guidance for the full year 2022 is
$232 - $238
million, and will be driven primarily by the growth from our
support of global clinical trials and commercially launched
therapies from our cell and gene therapy clients; growth in
temperature-controlled logistics for the life sciences industry;
and demand for our cryogenic systems solutions. The Company's
guidance is dependent on its current business and expectations,
which may be impacted by, among other things, factors that are
outside of our control, such as the ongoing and prolonged COVID-19
pandemic and related shut downs globally, supply chain constraints,
inflationary pressures, economic uncertainty and the effects of
foreign currency fluctuations, as well as the other factors
described in the Company's filings with the Securities and Exchange
Commission ("SEC"), including its Annual Report on Form 10-K for
the year ended December 31, 2021 and
its Quarterly Reports on Form 10-Q filed with the SEC during 2022,
as well as in its subsequent filings with the SEC.
Additional Information
Further information on Cryoport's financial results are included
in the attached condensed consolidated balance sheets and
statements of operations, and additional explanations of Cryoport's
financial performance are provided in the Company's quarterly
report on Form 10-Q for the three and nine months ended
September 30, 2022, which is expected
to be filed with the SEC on November
3, 2022. Additionally, the full report is available in
the SEC Filings section of the Investor Relations section of
Cryoport's website at www.cryoport.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: A document titled "Cryoport Third
Quarter 2022 In Review", providing a
review of Cryoport's recent financial and operational performance and a general
business update, will be issued at 4:05 p.m. ET on
Thursday, November 3, 2022. The
document is designed to be read by investors before the questions
and answers conference call and will be accessible at:
http://ir.cryoport.com/events-and-presentations.
Cryoport management will host a conference call the same day at
5:00 pm ET. The conference call will
be in the format of a questions and answers session and will
address questions members of the investment community have
regarding the Company's reported results. A slide deck will
accompany the call.
Conference Call Information
Date:
|
Thursday, November 3,
2022
|
Time:
|
5:00 p.m. ET
|
Dial-in
numbers:
|
1-888-254-3590 (U.S.),
1-720-543-0214 (International)
|
Confirmation
code:
|
Request the "Cryoport
Call"
|
Live
webcast:
|
'Investor Relations'
section at www.cryoport.com or click here.
Please allow 10 minutes prior to the call to visit this site to
download and install any necessary audio software.
|
Questions and answers will be recorded and available
approximately three hours after completion of the live event on the
Investor Relations section of the Company's website at
www.cryoport.com for a limited time. To access the
replay of the questions and answers, please follow this link.
A dial-in replay of the call will also be available to those
interested, until 11:59 p.m. ET on
November 10, 2022. To access the
replay, dial 1-844-512-2921 (United
States) or 1-412-317-6671 (International) and enter replay
pin number: 6820976.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX),
headquartered in Nashville, TN, is
a global leader in temperature-controlled supply chain solutions
for the life sciences industry supporting life-saving cell and gene
therapies across the research, clinical and commercial spectrum.
With 38 strategic locations covering the Americas, EMEA
(Europe, the Middle East and Africa) and APAC (Asia Pacific), Cryoport's global platform
provides mission-critical solutions, services, and products to the
Biopharma, Animal Health, and Reproductive Medicine markets
worldwide. In addition to its standard setting supply chain
solutions, Cryoport is the world's largest manufacturer of
cryogenic systems and one of the largest life science focused
specialty couriers.
For more information, visit www.cryoport.com or follow @cryoport
on Twitter at www.twitter.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press
release which are not purely historical, including statements
regarding the Company'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. These forward-looking
statements include, but are not limited to, those related to the
Company's industry, business, long-term growth prospects, plans,
strategy, acquisitions, future financial results and financial
condition, such as the Company's outlook and guidance for full year
2022 revenue and the related factors expected to drive revenue,
projected trends in the markets in which the Company operates, the
Company's intention to expand overall manufacturing capacities, the
Company's plan for a new Global Supply Chain Center in Paris, the Company's repurchases of shares of
its common stock, and regulatory approvals with respect to the
products of the Company's clients. 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, including as a result of the COVID-19 pandemic and its
variants, supply chain constraints, inflationary pressures and the
effects of foreign currency fluctuations, 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 discussed in the Company's Securities and Exchange
Commission ("SEC") reports including, but not limited to, the
Company's Annual Report on Form 10-K for the year ended
December 31, 2021, its Quarterly
Reports on Form 10-Q filed with the SEC during 2022, as well as in
its subsequent filings with the SEC. The forward-looking statements
contained in this press release speak only as of the date hereof
and the Company cautions investors not to place undue reliance on
these forward-looking statements. Except as required by law, the
Company disclaims any obligation, and does not undertake to update
or revise any forward-looking statements in this press release.
Cryoport, Inc. and
Subsidiaries
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in thousands,
except share and per share data)
|
2022
|
2021
|
|
2022
|
2021
|
Revenues:
|
|
|
|
|
|
Service
revenues
|
$
33,296
|
$
30,899
|
|
$
100,791
|
$
87,342
|
Product
revenues
|
27,168
|
25,794
|
|
76,128
|
78,826
|
Total
revenues
|
60,464
|
56,693
|
|
176,919
|
166,168
|
Cost of
revenues:
|
|
|
|
|
|
Cost of service
revenues
|
18,913
|
18,114
|
|
56,742
|
50,409
|
Cost of product
revenues
|
15,134
|
15,066
|
|
42,581
|
42,295
|
Total cost of
revenues
|
34,047
|
33,180
|
|
99,323
|
92,704
|
Gross
margin
|
26,417
|
23,513
|
|
77,596
|
73,464
|
Operating costs and
expenses:
|
|
|
|
|
|
Selling, general and
administrative
|
30,235
|
23,901
|
|
87,420
|
69,977
|
Engineering and
development
|
3,985
|
4,188
|
|
11,045
|
12,953
|
Total operating
costs and expenses:
|
34,220
|
28,089
|
|
98,465
|
82,930
|
Loss from
operations
|
(7,803)
|
(4,576)
|
|
(20,869)
|
(9,466)
|
Other income
(expense):
|
|
|
|
|
|
Investment
income
|
2,485
|
851
|
|
5,797
|
1,618
|
Interest
expense
|
(1,609)
|
(1,189)
|
|
(4,686)
|
(3,563)
|
Other income (expense),
net
|
1,668
|
(588)
|
|
(7,377)
|
(1,469)
|
Loss before provision
for income taxes
|
(5,259)
|
(5,502)
|
|
(27,135)
|
(12,880)
|
Provision for income
taxes
|
(57)
|
(1,024)
|
|
(762)
|
(2,562)
|
Net
loss
|
$
(5,316)
|
$
(6,526)
|
|
$
(27,897)
|
$
(15,442)
|
Paid-in-kind dividend
on Series C convertible preferred stock
|
(2,000)
|
(2,000)
|
|
(6,000)
|
(6,196)
|
Net loss
attributable to common stockholders
|
$
(7,316)
|
$
(8,526)
|
|
$
(33,897)
|
$
(21,638)
|
Net loss per share
attributable to common stockholders - basic and
diluted
|
$
(0.15)
|
$
(0.18)
|
|
$
(0.69)
|
$
(0.48)
|
Weighted average common
shares outstanding - basic and diluted
|
48,520,696
|
46,137,147
|
|
49,148,558
|
45,220,319
|
Cryoport, Inc. and
Subsidiaries
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
September
30,
|
December
31,
|
|
2022
|
2021
|
(in
thousands)
|
(unaudited)
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
30,724
|
$
139,101
|
Short-term
investments
|
498,801
|
489,698
|
Accounts receivable,
net
|
44,419
|
39,412
|
Inventories
|
24,542
|
16,501
|
Prepaid expenses and
other current assets
|
10,639
|
8,804
|
Total current
assets
|
609,125
|
693,516
|
Property and equipment,
net
|
57,680
|
49,029
|
Operating lease
right-of-use assets
|
24,820
|
20,675
|
Intangible assets,
net
|
192,140
|
201,427
|
Goodwill
|
147,458
|
146,954
|
Deposits
|
926
|
950
|
Deferred tax
assets
|
1,642
|
419
|
Total
assets
|
$
1,033,791
|
$
1,112,970
|
|
|
|
Current
liabilities:
|
|
|
Accounts payable and
other accrued expenses
|
$
27,441
|
$
28,583
|
Accrued compensation
and related expenses
|
8,625
|
9,912
|
Deferred
revenue
|
549
|
547
|
Current portion of
operating lease liabilities
|
3,007
|
3,542
|
Current portion of
notes payable
|
1,010
|
—
|
Current portion of
finance lease liabilities
|
96
|
61
|
Total current
liabilities
|
40,728
|
42,645
|
Convertible senior
notes, net
|
406,071
|
404,171
|
Notes payable,
net
|
351
|
1,086
|
Operating lease
liabilities, net
|
23,112
|
18,144
|
Finance lease
liabilities, net
|
171
|
51
|
Deferred tax
liabilities
|
3,037
|
4,018
|
Other long-term
liabilities
|
455
|
298
|
Contingent
consideration
|
4,145
|
729
|
Total liabilities
|
478,070
|
471,142
|
Total stockholders' equity
|
555,721
|
641,828
|
Total liabilities and stockholders' equity
|
$
1,033,791
|
$
1,112,970
|
Note Regarding Use of Non-GAAP Financial Measures
To supplement our financial statements, which are presented on
the basis of U.S. generally accepted accounting principles (GAAP),
the following non-GAAP measures of financial performance as defined
in Regulation G of the Securities Exchange Act of 1934 are included
in this release: revenue growth rate at constant currency and
adjusted EBITDA.
Under GAAP, revenues received in local (non-U.S. dollar)
currency are translated into U.S. dollars at the average exchange
rate for the period presented. When we use the term "constant
currency," it means that we have translated local currency revenues
for the current reporting period into U.S. dollars using the same
average foreign currency exchange rates for the conversion of
revenues into U.S. dollars that we used to translate local currency
revenues for the comparable reporting period of the prior year.
Adjusted EBITDA is defined as net loss adjusted for interest
expense, income taxes, depreciation and amortization expense,
stock-based compensation expense, acquisition and integration
costs, investment income, unrealized (gain)/loss on investments,
foreign currency loss and charges or gains resulting from
non-recurring events.
In evaluating Cryoport's performance, management uses non-GAAP
financial measures to supplement financial statements prepared
under GAAP. Management believes that revenue growth rate at
constant currency and adjusted EBITDA provide useful measures of
Cryoport's operating results, a meaningful comparison with
historical results, with the results of other companies, and
insight into Cryoport's revenue trends and ongoing operating
performance. Further, management and the Board of Directors
utilizes these non-GAAP financial measures to gain a better
understanding of Cryoport's performance from period-to-period and
as a basis for planning and forecasting future periods. Management
believes that the non-GAAP financial measures presented, when read
in conjunction with Cryoport's GAAP financials, are useful to
investors because they provide a basis for meaningful
period-to-period comparisons of Cryoport's revenue trends and
ongoing operating results, including results of operations, against
investor and analyst financial models. Management also
believes the non-GAAP financial measures are also useful in
identifying trends in Cryoport's underlying business and performing
related trend analyses, plus they provide a better understanding of
how management plans and measures Cryoport's underlying
business.
The non-GAAP financial measures are not calculated in accordance
with generally accepted accounting principles (GAAP) and are not
based on any comprehensive set of accounting rules or principles
and may be different from non-GAAP financial measures presented by
other companies. Non-GAAP financial measures, including revenue
growth rate at constant currency and adjusted EBITDA, should not be
considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP.
Cryoport, Inc. and
Subsidiaries
|
|
|
|
|
|
Reconciliation of
GAAP net loss to adjusted EBITDA
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in
thousands)
|
2022
|
2021
|
|
2022
|
2021
|
GAAP net
loss
|
$
(5,316)
|
$
(6,526)
|
|
$
(27,897)
|
$
(15,442)
|
Non-GAAP adjustments to
net loss:
|
|
|
|
|
|
Depreciation and
amortization expense
|
5,787
|
5,157
|
|
16,631
|
14,944
|
Acquisition and
integration costs
|
721
|
1,450
|
|
1,544
|
3,340
|
Investment
income
|
(2,485)
|
(851)
|
|
(5,797)
|
(1,618)
|
Unrealized loss on
investments
|
3,914
|
152
|
|
12,550
|
308
|
Gain on insurance
claim
|
(4,815)
|
-
|
|
(4,815)
|
-
|
Foreign currency
(gain)/loss
|
(128)
|
223
|
|
628
|
325
|
Interest expense,
net
|
1,609
|
1,189
|
|
4,686
|
3,563
|
Stock-based
compensation expense
|
5,366
|
4,148
|
|
14,749
|
11,163
|
Income taxes
|
57
|
1,024
|
|
762
|
2,562
|
Adjusted
EBITDA
|
$
4,710
|
$
5,966
|
|
$
13,041
|
$
19,145
|
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SOURCE Cryoport, Inc.