Artivion(AORT) - 2024 Q4 - Annual Report

Financial Performance - Total revenues for 2024 reached $388.5 million, an increase of 9.8$354.0 million in 2023[371]. - Product revenues increased to $290.2 million, up 11.1$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$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$131.5 million in 2024 from $114.8 million in 2023, reflecting a growth of 14.6$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].