ATLANTA, April 21, 2025 /PRNewswire/ -- Artivion, Inc. (NYSE: AORT), a leading cardiac and vascular surgery company focused on aortic disease, announced today that first quarter 2025 financial results will be released on Monday, May 5, 2025, 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 list ...

Artivion (AORT) shares ended the last trading session 7.9% higher at $23.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.5% loss over the past four weeks.Artivion stock surged amid a broader market rebound following the Trump administration’s announcement of a temporary halt on reciprocal tariffs for most countries. The move came in response to steep market declines and growing fears that tariff increases cou ...

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 [3] - The company offers four major product groups: aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues [3] - Artivion markets and sells its products in over 100 countries worldwide [3] Upcoming Event - Artivion will participate virtually in the Oppenheimer 35th Annual Healthcare MedTech & Services Conference [1] - The virtual fireside chat is scheduled to begin at 10:40 a.m. ET on March 18, 2025 [1] - A live webcast of the event will be available on Artivion's website, with an archived version accessible for 90 days [2]

Financial Performance - Total revenues for 2024 reached $388.5 million, an increase of 9.8% from $354.0 million in 2023[371]. - Product revenues increased to $290.2 million, up 11.1% from $261.2 million in 2023[371]. - Operating income for 2024 was $38.9 million, significantly higher than $5.7 million in 2023[371]. - Net loss decreased to $13.4 million in 2024 from $30.7 million in 2023, reflecting a reduction of 56.3%[371]. - Basic loss per share improved to $(0.32) from $(0.75) in 2023[371]. - Net loss for the year ended December 31, 2024, was $13,359 million, a decrease from a net loss of $30,690 million in 2023[373]. - Net cash flows provided by operating activities increased to $22,236 million in 2024 from $18,825 million in 2023[373]. - Total current assets increased to $290.1 million in 2024, up from $280.7 million in 2023[367]. - Total liabilities rose slightly to $512.9 million in 2024 from $510.6 million in 2023[369]. - Cash and cash equivalents decreased to $53.5 million in 2024 from $58.9 million in 2023[367]. Employee Relations and Workforce - The company had approximately 1,600 employees as of December 31, 2024, with a focus on attracting and retaining qualified personnel in a competitive market[146]. - The company has never experienced a work stoppage or interruption due to labor disputes, indicating good relations with employees worldwide[146]. - The company has programs in place to enhance compensation and benefits to attract and retain talent in the medical device and tissue processing industries[148]. - The company emphasizes a strong and collaborative culture, with core values focused on collaboration, results-driven performance, and customer focus[149]. Internal Controls and Compliance - The company maintains effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria[359]. - The company’s independent auditor, Ernst & Young, LLP, issued an unqualified opinion on the effectiveness of internal controls over financial reporting as of December 31, 2024[347]. Risks and Sensitivities - The company’s operations are subject to risks from interest rate fluctuations and foreign currency exchange rate changes, which could significantly impact financial results[332][334]. - A hypothetical increase of one percentage point in interest rates on the company's variable rate debt portfolio would decrease pre-tax operating results by an estimated $2.0 million over a twelve-month period[333]. - A hypothetical 10% change in foreign currency exchange rates would decrease pre-tax operating results by an estimated $8.0 million over a twelve-month period[335]. Capital Expenditures and Investments - Capital expenditures for 2024 were $11,188 million, up from $9,752 million in 2023[373]. - The company completed the acquisition of Ascyrus Medical LLC to enhance the company's product offerings in the treatment of acute Type A aortic dissections[440]. - The total potential purchase consideration for the Ascyrus acquisition is up to $200.0 million, including cash payments and stock issuance upon achieving specific milestones[441]. Revenue and Market Performance - North America generated $197.9 million in revenue for 2024, up from $187.6 million in 2023, representing a growth of 7.2%[506]. - EMEA revenue increased to $131.5 million in 2024 from $114.8 million in 2023, reflecting a growth of 14.6%[506]. Stock and Equity - The company authorized a total of 10,045,000 shares under its stock plans as of December 31, 2024, with 2,742,000 shares available for grant[507]. - In 2024, the company authorized stock awards totaling 781,000 shares with an aggregate grant date market value of $16.2 million[508]. - The company did not authorize any grants of stock options during 2024, while 110,000 shares were granted in 2023[515]. Tax and Deferred Assets - Total deferred tax assets were $41.87 million as of December 31, 2024, down from $43.14 million in 2023, with a net deferred tax liability of $19.12 million[470]. - The company maintained a valuation allowance against deferred tax assets of $32.61 million as of December 31, 2024, compared to $32.86 million in 2023[470]. - As of December 31, 2024, the uncertain tax liability was $5.1 million, with $4.0 million expected to affect the tax rate if recognized[475]. Debt and Financing - The total principal debt as of December 31, 2024, was $320.2 million, with total debt amounting to $314.3 million after accounting for unamortized debt issuance costs[480]. - The company entered into a credit agreement for $350.0 million, including a $190.0 million secured term loan facility and a $60.0 million revolving credit facility[483]. - The stated interest rate for the Term Loan Facility was 11.09% as of December 31, 2024, with an effective interest rate of 11.86%[489]. - The company is in compliance with its debt covenants, which require a total net leverage ratio not greater than 6.25x for certain periods[487].

Core Viewpoint - Artivion (AORT) has experienced a significant downtrend, with an 18.6% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Stock Performance and Technical Indicators - AORT's stock has been under heavy selling pressure, indicated by an RSI reading of 17.29, which suggests that the selling may be exhausting itself and a trend reversal could be imminent [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, typically when the RSI falls below 30 [2][3]. Group 2: Earnings Estimates and Analyst Consensus - There is a strong consensus among sell-side analysts regarding AORT's ability to exceed previous earnings estimates, with a 36% increase in the consensus EPS estimate over the last 30 days [6]. - AORT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7].

4Q and Full Year 2024 Earnings Presentation February 24, 2025 1 © 2025 Artivion, Inc. FORWARD-LOOKING STATEMENTS 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 and expectations about ou ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $97.3 million, up 3% compared to Q4 2023 [34] - Adjusted EBITDA increased approximately 15% from $15.3 million to $17.6 million in Q4 2024 [34] - For the full year, total revenues were $388.5 million, up 9.4% in constant currency and 10% excluding PerClot [35] - Adjusted EBITDA grew 32% for the full year, resulting in adjusted EBITDA margins of 18%, a 310 basis point improvement from 2023 [35][36] Business Line Data and Key Metrics Changes - On-X revenue increased 10% year-over-year on a constant currency basis [13] - Stent graft revenues grew 8% on a constant currency basis in Q4 compared to the same period last year [15] - BioGlue grew 7% on a constant currency basis compared to the same period last year [16] - Tissue processing declined 8% year-over-year on a constant currency basis in Q4 [18] Market Data and Key Metrics Changes - Latin America and Asia-Pacific delivered constant-currency revenue growth of 26% and 11% for the full year, respectively [19] - The company anticipates strong revenue growth for both regions over the coming years [19] Company Strategy and Development Direction - The company aims for sustained double-digit revenue growth and EBITDA growth at least twice the rate of revenue growth [7][31] - The Humanitarian Device Exemption (HDE) for AMDS represents a significant milestone, allowing for commercial distribution prior to PMA approval [21] - The company is focused on expanding its product pipeline and leveraging regulatory approvals to drive growth [20][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering lost revenue from the cyber incident throughout 2025, citing strong underlying demand [77][81] - The company expects constant currency growth of between 10% and 14% for the full year 2025, with reported revenue ranging from $420 million to $435 million [51] - Management noted that the cyber incident would not have a meaningful impact on the business for the full year 2025 [38] Other Important Information - The cyber incident had an estimated negative impact of approximately $4.5 million on Q4 revenue and $2 million on adjusted EBITDA [9][37] - The company expects to incur additional cyber-related expenses in 2025 [45] - Free cash flow was $8.7 million in Q4 2024, with approximately $53.5 million in cash and $314.3 million in debt as of December 31 [48][49] Q&A Session Summary Question: Early AMDS commercial progress - Management reported that the U.S. commercial team is actively pursuing AMDS accounts, with 55 feet on the street [72] Question: Confidence in recovering lost revenue - Management expressed confidence that demand exceeds supply, and they expect to catch up on lost revenue due to normal donation levels [76][77] Question: PMA timeline delay for AMDS - The delay is due to new testing requirements from the FDA, which will add two quarters to the timeline [86] Question: Number of implanting sites for AMDS - There are about 1,000 centers that perform DeBakey type 1 dissections, with a focus on the top 600 centers for initial penetration [92] Question: Operational impact of the cyber incident - The incident required manual processing of tasks that would normally be automated, extending lead times [95] Question: Q1 adjusted EBITDA expectations - Q1 is expected to be the lowest adjusted EBITDA of the year, with revenue timing differences impacting results [98]

Core Insights - Artivion (AORT) reported break-even quarterly earnings per share, missing the Zacks Consensus Estimate of $0.12, and compared to earnings of $0.11 per share a year ago, resulting in an earnings surprise of -100% [1] - The company posted revenues of $97.31 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.56%, but showing an increase from year-ago revenues of $93.67 million [2] - Artivion shares have underperformed the market, losing about 1.2% since the beginning of the year compared to the S&P 500's gain of 2.2% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.11 on revenues of $105.2 million, and for the current fiscal year, it is $0.50 on revenues of $432.55 million [7] - The estimate revisions trend for Artivion is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Instruments industry, to which Artivion belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, TransMedics (TMDX), is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year change of +50%, with revenues anticipated to be $110.38 million, up 36% from the year-ago quarter [9][10]

Revenue Performance - Total revenue for Q4 2024 was $97.3 million, a 4% increase on a GAAP basis compared to Q4 2023[5]. - Full year 2024 revenue reached $388.5 million, representing a 10% increase on a GAAP basis compared to 2023[7]. - Revenue growth in Q4 2024 was driven by On-X (10%), stent grafts (10%), and BioGlue (8%) compared to Q4 2023[3]. - Product revenues for the year ended December 31, 2024, reached $290,230,000, compared to $261,185,000 in 2023, reflecting a year-over-year increase of 11.1%[20]. - Total revenues for the three months ended December 31, 2024, were $97,308 million, representing a 3% increase from $93,670 million in the prior year[30]. - Aortic stent grafts revenue increased by 8% to $30,145 million from $27,437 million year-over-year[30]. - North America revenue for the year ended December 31, 2024, was $197,940 million, a 6% increase from $187,603 million in 2023[30]. - Europe, the Middle East, and Africa revenue increased by 13% to $131,518 million for the year ended December 31, 2024, compared to $114,814 million in 2023[30]. - Latin America revenue for the year ended December 31, 2024, increased by 26% to $21,877 million from $18,010 million in the prior year[30]. Profitability and Loss - Adjusted EBITDA for Q4 2024 increased by 15% to $17.6 million, while full year adjusted EBITDA rose by 32% to $71.3 million[3]. - Net loss for Q4 2024 was $(16.5) million, or $(0.39) per fully diluted share, compared to a net loss of $(4.0) million in Q4 2023[6]. - The net loss for the year ended December 31, 2024, was $13,359,000, compared to a net loss of $30,690,000 in 2023, representing an improvement of 56.4%[20]. - For the three months ended December 31, 2024, the net loss was $16,483 million, compared to a net loss of $3,975 million for the same period in 2023, representing a significant increase in losses[34]. - The diluted loss per common share for the year ended December 31, 2024, was $0.32, compared to $0.75 for the year ended December 31, 2023, indicating a reduction in loss per share[34]. - Adjusted net income for the year ended December 31, 2024, was $10,768 million, up from $8,426 million in 2023, reflecting a year-over-year increase of approximately 27.7%[34]. Expenses and Costs - Operating income for the year ended December 31, 2024, was $38,874,000, a decrease from $5,742,000 in 2023, showing a significant decline[20]. - Research and development expenses for the year ended December 31, 2024, totaled $28,452,000, slightly down from $28,707,000 in 2023[20]. - The company incurred a cybersecurity incident expense of $4,583 million in 2024, which was not present in 2023, highlighting a new challenge faced by the company[34]. - Business development, integration, and severance expenses totaled $29,269 million for the year ended December 31, 2023, compared to a gain of $6,102 million in 2024, indicating a significant shift in expenses[34]. - The company reported a non-cash interest expense of $3,866 million for the year ended December 31, 2024, compared to $1,858 million in 2023, indicating a rise in interest-related costs[34]. - The total income tax expense for the year ended December 31, 2024, was $5,845 million, down from $9,104 million in 2023, reflecting a decrease in tax obligations[34]. Cash and Assets - Cash and cash equivalents at the end of the year on December 31, 2024, were $53,463,000, down from $58,940,000 at the end of 2023, a decrease of 8.4%[26]. - Total current assets increased to $290,080,000 as of December 31, 2024, compared to $280,668,000 in 2023, reflecting a growth of 3.0%[22]. - Total liabilities as of December 31, 2024, were $512,901,000, compared to $510,617,000 in 2023, indicating a slight increase of 0.4%[24]. Future Outlook - The company expects 2025 revenues to be between $420 million and $435 million, indicating a growth of 10% to 14% on a constant currency basis compared to 2024[9]. - Adjusted EBITDA for 2025 is projected to grow between 18% and 28%, resulting in an expected range of $84 million to $91 million[10]. - The company anticipates that the November 2024 cybersecurity incident will not significantly impact its business for the full year 2025[4]. - The company received a Humanitarian Device Exemption from the FDA for the AMDS Hybrid Prosthesis, facilitating its market entry[4].

Core Insights - Artivion, Inc. reported strong financial performance for 2024, with total revenues reaching $388.5 million, a 10% increase on a GAAP basis compared to 2023 [7][14]. - The company achieved a net loss of $(13.4) million for the full year, an improvement from a net loss of $(30.7) million in 2023 [8][14]. - Artivion expects revenue growth for 2025 to be between $420 million and $435 million, representing a 10% to 14% increase on a constant currency basis compared to 2024 [9][19]. Financial Performance - Fourth quarter revenues for 2024 were $97.3 million, a 4% increase on a GAAP basis compared to the same quarter in 2023 [5][14]. - The company reported a net loss of $(16.5) million in Q4 2024, compared to a net loss of $(4.0) million in Q4 2023 [6][14]. - Adjusted EBITDA for Q4 2024 increased by 15% to $17.6 million, compared to $15.3 million in Q4 2023 [14][27]. Product and Market Highlights - Revenue growth in Q4 was driven by a 10% increase in On-X mechanical heart valves and stent grafts, and an 8% increase in BioGlue compared to Q4 2023 [3][14]. - Latin America showed significant revenue strength, growing 26% in Q4 2024 on a constant currency basis compared to the previous year [3][14]. - The company received a Humanitarian Device Exemption from the FDA for the AMDS Hybrid Prosthesis, allowing it to deliver its technology to patients while pursuing PMA approval [4][14]. Operational Developments - Artivion submitted the second module of the PMA application to the FDA for the AMDS Hybrid Prosthesis [4][14]. - The company generated $22.2 million in operating cash flow and $11.0 million in non-GAAP free cash flow for the full year 2024 [14][26]. - The company is confident in its ability to drive sustained double-digit revenue growth and adjusted EBITDA growth at twice the pace of constant currency revenue growth in 2025 [4][10].