Artivion(AORT)2024-08-09 15:47Revenue Performance - Artivion reported quarterly revenues of 89.3 million in the same period of 2023[117]. - Revenues from aortic stent grafts increased by 14% to 28.4 million in the same period of 2023[123]. - On-X product revenues rose by 15% to 17.9 million in the prior year[123]. - Surgical sealants revenues increased by 12% to 16.6 million in the same period of 2023[123]. - Preservation services revenues grew by 7% to 23.2 million in the same period of 2023[123]. - Total revenues for the six months ended June 30, 2024, were 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 222.8 million and a current ratio of 5 to 1 at December 31, 2023[171]. - The company incurred 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 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 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 8.3 million and 6.4 million and 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 190.0 million secured term loan facility and a 6.9 million and 100.0 million Convertible Senior Notes issued on June 18, 2020, was approximately 642,000 for the six months ended June 30, 2024, down from 6.1 million for the six months ended June 30, 2024, compared to net cash provided of 10.3 million[188]. - Net cash provided by financing activities decreased to 3.4 million in 2023, a decline of approximately 84%[189]. - Capital expenditures for the six months ended June 30, 2024, were 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].