FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(x) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended March 31, 1999 Commission File Number 0-21104
CRYOLIFE, INC.
(Exact name of Registrant as specified in its charter)
---------
Florida 59-2417093
(State or Other Jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1655 Roberts Boulevard, NW
Kennesaw, Georgia 31144
(Address of principal executive offices)
(zip code)
(770) 419-3355
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
YES X NO ____
The number of shares of common stock, par value $0.01 per share, outstanding at
May 10, 1999 was 12,370,991.
<PAGE>
Part I - FINANCIAL INFORMATION
Item 1. Financial statements
CRYOLIFE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
March 31,
_____________________
1999 1998
_____________________
(Unaudited)
Revenues:
Preservation services and products $ 16,059 $ 14,501
Research grants and licenses 266 60
________ ________
16,325 14,561
Costs and expenses:
Preservation services and products 7,371 5,481
General, administrative and marketing 6,170 5,827
Research and development 1,074 1,011
Interest expense 119 430
Interest income (425) ---
Other income, net (44) (64)
________ _______
14,265 12,685
________ _______
Income before income taxes 2,060 1,876
Income tax expense 680 704
________ _______
Net income $ 1,380 $ 1,172
======== =======
Earnings per share:
Basic $ 0.11 $ 0.12
======== =======
Diluted $ 0.11 $ 0.12
======== =======
Weighted average shares outstanding:
Basic 12,497 9,739
Diluted 12,680 10,077
See accompanying notes to summary consolidated financial statements.
2
<PAGE>
Item 1. Financial Statements
CRYOLIFE, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
(Unaudited)
ASSETS ____________________________
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 8,107 $ 12,885
Marketable securities, at market 26,490 26,713
Receivables (net) 13,209 11,187
Deferred preservation costs (net) 14,252 14,239
Inventories 4,149 3,385
Prepaid expenses 2,501 1,945
Deferred income taxes 1,384 1,348
---------------------------------
Total current assets 70,092 71,702
---------------------------------
Property and equipment (net) 21,804 21,460
Goodwill (net) 1,662 1,685
Patents (net) 2,298 2,216
Other (net) 1,401 1,327
---------------------------------
TOTAL ASSETS $ 97,257 $ 98,390
=================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,139 $ 1,652
Accrued expenses 2,734 2,968
Accrued procurement fees 1,693 1,806
Accrued compensation 1,265 1,185
Current maturities of capital lease obligations 229 224
Current maturities of long-term debt 290 516
Deferred income 1,090 1,038
---------------------------------
Total current liabilities 8,440 9,389
---------------------------------
Deferred income, less current portion 1,280 1,525
Deferred income taxes 419 410
Capital lease obligations, less current maturities 1,655 1,714
Convertible debenture 4,393 4,393
Other long-term debt 498 535
---------------------------------
Total liabilities 16,685 17,966
---------------------------------
Shareholders' equity:
Preferred stock --- ---
Common stock (issued 13,361 shares in 1999
and 1998) 134 134
Additional paid-in capital 64,350 64,350
Retained earnings 20,493 19,113
Unrealized gain on marketable securities 37 139
Less: Treasury stock (945 shares in 1999 and
845 shares in 1998) (4,442) (3,312)
---------------------------------
Total shareholders' equity 80,572 80,424
---------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 97,257 $ 98,390
=================================
</TABLE>
See accompanying notes to summary consolidated financial statements.
3
<PAGE>
Item 1. Financial Statements
CRYOLIFE, INC.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
____________________________
1999 1998
(Unaudited)
____________________________
<S> <C> <C>
Net cash flows used in operating activities:
Net income $ 1,380 $ 1,172
Adjustments to reconcile net income to net cash
used in operating activities:
Deferred income recognized (193) ---
Depreciation and amortization 686 960
Provision for doubtful accounts 24 24
Deferred income taxes 25 ---
Changes in operating assets and liabilities:
Receivables (2,046) 224
Deferred preservation costs and inventories (777) (1,442)
Prepaid expenses and other assets (556) (335)
Accounts payable and accrued expenses (780) 95
-----------------------------------
Net cash flows (used in) provided by operating activities (2,237) 698
-----------------------------------
Net cash flows used in investing activities:
Capital expenditures (963) (1,058)
Other assets (200) (896)
Purchases of marketable securities (6,709) ---
Sales of marketable securities 6,932 ---
Gross unrealized gain on marketable equity securities (154) ---
-----------------------------------
Net cash flows used in investing activities (1,094) (1,954)
-----------------------------------
Net cash flows provided by financing activities:
Principal payments of debt (263) (540)
Proceeds from borrowings on revolving term loan --- 1,680
Payment of obligations under capital leases (54) (35)
Purchase of treasury stock (1,259) ---
Proceeds from issuance of common stock and
from notes receivable from shareholders 129 154
-----------------------------------
Net cash (used in) provided by financing activities (1,447) 1,259
-----------------------------------
(Decrease) increase in cash (4,778) 3
Cash and cash equivalents, beginning of period 12,885 111
-----------------------------------
Cash and cash equivalents, end of period $ 8,107 $ 114
===================================
Supplemental cash flow information
Non-cash investing and financing activities:
Establishing capital lease obligations $ --- $ 2,141,000
===================================
Debt conversion into common stock $ --- $ 607,000
===================================
</TABLE>
See accompanying notes to summary consolidated financial statements.
4
<PAGE>
CRYOLIFE, INC.
NOTES TO SUMMARY CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of Presentation
The accompanying unaudited, condensed, consolidated financial statements have
been prepared in accordance with (i) generally accepted accounting principles
for interim financial information, and (ii) the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three months ended
March 31, 1999 are not necessarily indicative of the results that may be
expected for the year ending December 31, 1999. For further information, refer
to the consolidated financial statements and footnotes thereto included in the
Company's Form 10-K for the year ended December 31, 1998.
Note 2 - Investments
The Company maintains cash equivalents and investments in several large
well-capitalized financial institutions, and the Company's policy disallows
investment in any securities rated less than "investments-grade" by national
rating services.
Management determines the appropriate classification of debt securities at the
time of purchase and reevaluates such designations as of each balance sheet
date. Debt securities are classified as held-to-maturity when the Company has
the positive intent and ability to hold the securities to maturity.
Held-to-maturity securities are stated at amortized cost. Debt securities not
classified as held-to-maturity or trading, and marketable equity securities not
classified as trading, are classified as available-for-sale. Available-for-sale
securities are stated at their fair values, with the unrealized gains and
losses, net of tax, reported in a separate component of shareholders' equity.
The amortized cost of debt securities classified as available-for-sale is
adjusted for amortization of premiums and accretion of discounts to maturity.
Such amortization is included in investment income. Realized gains and losses
and declines in value judged to be other than temporary on available-for-sale
securities are included in investment income. The cost of securities sold is
based on the specific identification method. Interest and dividends on
securities classified as available-for-sale are included in interest income. At
March 31, 1999 all marketable equity securities and debt securities held by the
Company were designated as available-for-sale.
The gross realized gains on sales of available-for-sale securities totaled
$77,000 and $0 in the first quarters of 1999 and 1998, respectively. As of March
31, 1999 differences between cost and market of $56,000 (less deferred taxes of
$19,000) are included as a separate component of shareholders' equity.
At March 31, 1999 and December 31, 1998 approximately $5.9 million and $8.9
million, respectively, of debt securities with original maturities of 90 days or
less at their acquisition dates were included in cash and cash equivalents. At
March 31, 1999 and December 31, 1998 no investments had a maturity date between
90 days and 1 year and approximately $17.3 million and $16.1 million of
investments matured between one and five years, respectively. The market values
of these securities approximate cost.
5
<PAGE>
Note 3 - Inventory
Inventories are comprised of the following:
(Unaudited)
March 31, December 31,
1999 1998
-----------------------------------
Raw materials $ 1,621,000 $ 1,296,000
Work-in-process 1,115,000 1,037,000
Finished goods 1,413,000 1,052,000
-----------------------------------
$ 4,149,000 $ 3,385,000
===================================
Note 4 - Earnings per Share
The following table sets forth the computation of basic and diluted earnings per
share:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
______________________
1999 1998
______________________
(Unaudited)
<S> <C> <C>
Numerator for basic and diluted earnings per share -
net income $ 1,380,000 $ 1,172,000
===================================
Denominator for basic earnings per share - weighted-
average basis 12,497,000 9,739,000
Effect of dilutive stock options 183,000 338,000
-----------------------------------
Denominator for diluted earnings per share - adjusted
weighted-average shares 12,680,000 10,077,000
===================================
Earnings per share:
Basic $ .11 $ .12
===================================
Diluted $ .11 $ .12
===================================
</TABLE>
Note 5 - Comprehensive Income
During the periods ended March 31, 1999 and 1998, net comprehensive income was
less than net income by approximately $102,000 and $0, respectively, due to
unrealized losses on marketable equity securities.
6
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Results of Operations
Preservation and product revenues increased 11% to $16.1 million for the three
months ended March 31, 1999 from $14.5 million for the same period in 1998. The
increase in revenues was primarily due to the growing acceptance in the medical
community of cryopreserved tissues which has resulted in increased demand for
the Company's cryopreservation services, the Company's ability to procure
greater amounts of tissue, price increases for certain preservation services,
and revenues attributable to the Company's introduction of BioGlue Surgical
Adhesive in international markets in April 1998.
Revenues from human heart valve and conduit cryopreservation services decreased
8% to $6.8 million for the three months ended March 31, 1999 from $7.4 million
for the three months ended March 31, 1998, representing 42% and 51%,
respectively, of total revenues during such periods. This decrease was primarily
due to a 9% decrease in the number of heart allograft shipments for the three
months ended March 31, 1999. The decrease in the number of heart allograft
shipments primarily results from fewer pulmonary heart valve allografts being
shipped due to a decrease in the number of Ross procedures being performed.
Revenues from human vascular tissue cryopreservation services increased 39% to
$4.9 million for the three months ended March 31, 1999 from $3.5 million for the
three months ended March 31, 1998, representing 30% and 24%, respectively, of
total revenues during such periods. This increase in revenues was primarily due
to a 29% increase in the number of vascular allograft shipments for the three
months ended March 31, 1999 due to an increased demand and the Company's ability
to procure greater amounts of tissue and a focus on procuring and distributing
long segment veins which have a higher per unit revenue than the short segment
veins.
Revenues from human connective tissue cryopreservation services increased 33% to
$2.4 million for the three months ended March 31, 1999 from $1.8 million for the
three months ended March 31, 1998, representing 15% and 12%, respectively, of
total revenues during such periods. This increase in revenues was primarily due
to a 23% increase in the number of allograft shipments for the three months
ended March 31, 1999 due to increased demand and the Company's ability to
procure greater amounts of tissue. Additional revenue increases have resulted
from a greater proportion of the 1999 shipments consisting of cryopreserved
menisci, which have a significantly higher per unit revenue than the Company's
cryopreserved tendons and price increases for the cryopreservation of menisci
and tendons.
Revenues from Ideas for Medicine, Inc. ("IFM") were $1.6 million for the three
months ended March 31, 1999 and 1998, representing 10% and 11%, respectively, of
total revenues during such periods. The IFM product line was sold on September
30, 1998. In October 1998 IFM began an OEM manufacturing agreement which
provides for the manufacture by IFM of specified minimum dollar amounts of IFM
products to be purchased exclusively by the purchaser of the IFM product line
over each of the four years following the sale.
Revenues from bioprosthetic cardiovascular devices were $200,000 for the three
months ended March 31, 1999 and 1998, representing 1% of total revenues during
each such periods.
Revenues from BioGlue(R) surgical adhesive were $254,000 and $0 for the three
months ended March 31, 1999 and 1998, respectively. The Company is currently
commercializing the product in the European market as well as in other selected
overseas markets. Shipments began in April of 1998.
Grant revenues increased to $266,000 for the three months ended March 31, 1999
from $60,000 for the three months ended March 31, 1998. This increase in grant
revenues is primarily attributable to the SynerGraft(R) research and development
programs.
7
<PAGE>
Cost of cryopreservation services and products aggregated $7.4 million for the
three months ended March 31, 1999, compared to $5.5 million for the
corresponding period in 1998, representing 46% and 38% of total cryopreservation
and product revenues in each period. The increase in the 1999 cost of
cryopreservation services and products results from a lesser portion of 1999
revenues being derived from human heart valve and conduit cryopreservation
services, which carry significantly higher gross margins than other
cryopreservation services, and from the switch in October of 1998 to OEM
manufacturing of single-use medical devices, which generates lower gross margins
than cryopreservation services and lower gross margins than the IFM products
generated prior to the sale of the IFM product line.
General, administrative and marketing expenses increased 6% to $6.2 million for
the three months ended March 31, 1999, compared to $5.8 million for the
corresponding period in 1998, representing 38% and 40% of total preservation and
product revenues in each period. The increase in expenditures in 1999 resulted
from expenses incurred to support the increase in revenues.
Research and development expenses were $1.1 million for the three months ended
March 31, 1999, compared to $1 million for the three months ended March 31,
1998, representing 7% of total cryopreservation and product revenues for each
period. Research and development spending relates principally to the Company's
ongoing human clinical trials for its BioGlue surgical adhesive and to its focus
on its SynerGraft technologies.
Net interest income was $306,000 for the three months ended March 31, 1999
compared to net interest expense of $430,000 for the corresponding period in
1998. This increase in interest income and decrease in interest expense for the
three months ended March 31, 1999 was due to the receipt of interest income on
the invested proceeds from the follow-on equity offering (the "Offering")
completed in April 1998 and reduction of interest expense from the repayment of
certain indebtedness with the proceeds from the Offering, as well as the
conversion of a portion of a convertible debenture into common stock of the
Company.
The decline in the effective income tax rate to 33% from 38% for the three
months ended March 31, 1999 and 1998, respectively, is due to the implementation
of certain income tax planning strategies.
Seasonality
The demand for the Company's human heart valve and conduit cryopreservation
services is seasonal, with peak demand generally occurring in the second and
third quarters. Management believes this demand trend for human heart valve and
conduit cryopreservation services is primarily due to the high number of
surgeries scheduled during the summer months. Management believes the trends
experienced by the Company to date for its human connective tissue for the knee
cryopreservation services indicate this business may also be seasonal because it
is an elective procedure which may be performed less frequently during the
fourth quarter holiday months. However, the demand for the Company's vascular
tissue cryopreservation services, bioprosthetic cardiovascular devices, and
BioGlue surgical adhesive does not appear to experience this seasonal trend. As
an OEM manufacturer of single-use medical devices the product sales are dictated
by a manufacturing agreement which is not affected by a seasonal trend.
Liquidity and Capital Resources
At March 31, 1999, net working capital was $61.7 million, compared to $62.3
million at December 31, 1998, with a current ratio of 8-to-1 at March 31, 1999.
The Company's primary capital requirements arise out of general working capital
needs, capital expenditures for facilities and equipment and funding of research
and development projects and a common stock repurchase plan approved by the
Board of Directors in October of 1998. The Company historically has funded these
requirements through bank credit facilities, cash generated by operations and
equity offerings.
8
<PAGE>
Net cash used in operating activities was $2,237,000 for the three months ended
March 31, 1999, as compared to net cash provided by operating activities of
$698,000 for the three months ended March 31, 1998. This decrease primarily
resulted from an increase in the accounts receivables due to increased revenues
and an increase in the amount of accounts payable liquidated in the first
quarter in 1999 due to the expansion of the BioGlue manufacturing laboratory at
corporate headquarters, partially offset by a reduction in the increase of
deferred preservation costs and inventories between the first quarter of 1999 as
compared to the first quarter of 1998.
Net cash used in investing activities was $1.1 million for the three months
ended March 31, 1999, as compared to $2.0 million for the three months ended
March 31, 1998. This decrease was primarily attributable to the decrease in the
addition of other assets during the first quarter of 1999.
Net cash used in financing activities was $1.4 million for the three months
ended March 31, 1999, as compared to net cash provided by financing activities
of $1.3 million for the three months ended March 31, 1998. This decrease was
primarily attributable to a decrease in borrowings on the Company's bank loans
due to the repayment of the Company's bank loans from the Offering proceeds and
the Company's repurchase of treasury stock during the first quarter of 1999.
In October 1998 the Company entered into an agreement with an investment banking
firm to provide financial advisory services related to a potential private
placement of equity or equity-oriented securities to form a separate company for
the commercial development of its serine proteinase light activation (FibRx(R))
technologies. This strategy, if successful, will allow an affiliated entity to
fund the FibRx technology and should expedite the commercial development of its
blood clot dissolving and surgical sealant product applications without
additional R&D expenditures by the Company (other than through the affiliated
company). This strategy, if successful, should also favorably impact the
Company's liquidity going forward.
The Company anticipates that the remaining net proceeds from the Offering and
cash generated from operations will be sufficient to meet its operating and
development needs for the next 12 months. However, the Company's future
liquidity and capital requirements beyond that period will depend upon numerous
factors, including the timing of the Company's receipt of FDA approvals to begin
clinical trials for its products currently in development, the resources
required to further develop its marketing and sales capabilities if, and when,
those products gain approval, the resources required to expand manufacturing
capacity and the extent to which the Company's products generate market
acceptance and demand. There can be no assurance that the Company will not
require additional financing or will not seek to raise additional funds through
bank facilities, debt or equity offerings or other sources of capital to meet
future requirements. These additional funds may not be available when needed or
on terms acceptable to the Company, which unavailability could have a material
adverse effect on the Company's business, financial condition and results of
operations.
Year 2000
The Company is aware of the issues that many companies will face as the year
2000 approaches. In order to become year 2000 compliant, the Company has set up
a project team to address the issue and has taken the following steps:
Impact Assessment: The Company has identified potential year 2000 issues and the
associated potential risks. The Company has assessed the impact of the year 2000
issue and believes that its business products and services will not be
significantly impacted. Additionally, the Company has determined that, with the
exception of the Company's clinical tracking database, all of the Company's
financial and operational applications have been upgraded to or replaced with
year 2000 compliant software.
Third Party Impact Assessments: The Company has verified the readiness of its
significant suppliers through the distribution of a questionnaire which was 90%
returned by the suppliers by January 1, 1999 indicating compliance or that
compliance would be achieved by June 30, 1999. The Company does not anticipate
that a lack of compliance of the vendors will significantly affect the Company's
daily operations.
9
<PAGE>
Project Plan: The Company began its compliance strategy in October 1998. With
the exception of the clinical tracking database, all of the "off the shelf"
software packages have been upgraded to compliant releases. Older internally
developed software has been replaced with new systems that are year 2000
compliant. The remaining clinical tracking system will be internally rewritten,
and implemented by July 31, 1999. The Company estimates that all modifications
and testing for year 2000 issues will be completed at a cost of less than
$50,000 including expenditures to date.
Contingency Plan: The principal risk the Company faces is a delay in the
implementation of the new clinical tracking system. Although the clinical
tracking system is not critical to the day-to-day operations of the Company, it
is important for FDA compliance regarding follow-up procedures after transplant.
A delay in the implementation of the new clinical tracking system would result
in the Company having to rely on its paper support for required FDA data.
Although the Company is uncertain what the costs associated with a delay would
be or the related impact on operations, liquidity and financial condition, the
Company does not expect the impact to be material. The Company expects to have a
contingency plan completed by June 30, 1999.
The Company believes that it is diligently addressing the year 2000 issue and
expects that through its actions, year 2000 problems are not reasonably likely
to have a material adverse effect on its operations. However, there can be no
assurance that such problems will not arise.
Forward-Looking Statements
Statements made in this Form 10-Q for the quarter ended March 31, 1999 that
state the Company's or management's intentions, hopes, beliefs, expectations or
predictions of the future are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. It is important to note
that the Company's actual results could differ materially from those contained
in such forward-looking statements as a result of adverse changes in any of a
number of factors that affect the Company's business, including without
limitation, changes in (1) the effects on the Company of year 2000 issues
including unanticipated expenses in connection therewith, (2) the Company's
ability to find an equity investor in the FibRx technology and the impact of
such an investment on the Company's liquidity, (3) the adequacy of the Company's
financing arrangements over the next twelve months. See the "Business-Risk
Factors" section of the Company's Annual Report on Form 10-K for the year ended
December 31, 1998 for a more detailed discussion of factors which might affect
the Company's future performance.
Item 3. Qualitative and Quantitative Discussion About Market Risk.
The Company's interest income and expense are most sensitive to changes in the
general level of U.S. interest rates. In this regard, changes in U.S. interest
rates affect the interest earned on the Company's cash equivalents of $5.9
million and short-term investments of $17.3 million in municipal obligations as
of March 31, 1999 as well as interest paid on its debt. To mitigate the impact
of fluctuations in U.S. interest rates, the Company generally maintains 80% to
90% of its debt as fixed rate in nature. As a result, the Company is subject to
a risk that interest rates will decrease and the Company may be unable to
refinance its debt.
10
<PAGE>
Part II - OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
None
Item 5. Other information.
None
Item 6. Exhibits and Reports on Form 8-K
(a) The exhibit index can be found below.
Exhibit
Number Description
_______ ___________
3.1 Restated Certificate of Incorporation of the Company, as amended.
(Incorporated by reference to Exhibit 3.1 to the Registrant's
Registration Statement on Form S-1 (No. 33-56388).)
3.2 Amendment to Articles of Incorporation of the Company dated November
29, 1995. (Incorporated by reference to Exhibit 3.2 to the
Registrant's Annual Report on Form 10-K for the fiscal three months
ended December 31, 1995.)
3.3 Amendment to the Company's Articles of Incorporation to increase the
number of authorized shares of common stock from 20 million to 50
million shares and to delete the requirement that all preferred shares
have one vote per share. (Incorporated by reference to Exhibit 3.3 to
the Registrant's Quarterly Report on Form 10-Q for the quarter ended
June 31, 1996.)
3.4 ByLaws of the Company, as amended. (Incorporated by reference to
Exhibit 3.2 to the Registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1995.)
4.1 Form of Certificate for the Company's Common Stock. (Incorporated by
reference to Exhibit 4.1 to the Registrant's Registration Statement on
Form S-1 (No. 33-56388).)
4.2 Form of Certificate for the Company's Common Stock. (Incorporated by
reference to Exhibit 4.2 to the Registrant's Annual Report on Form
10-K for the fiscal year ended December 31, 1997).
27.1 Financial Data Schedule
(b) Current Reports on Form 8-K.
None
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CRYOLIFE, INC.
(Registrant)
May 10, 1999 /s/ EDWIN B. CORDELL, JR.
- ------------------ ----------------------------------
DATE EDWIN B. CORDELL, JR.
Vice President and Chief Financial
Officer
(Principal Financial and
Accounting Officer)
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA INFORMATION EXTRACTED FROM THE
COMPANY'S UNAUDITED FINANCIAL STATEMENTS CONTAINED IN ITS REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000784199
<NAME> CRYOLIFE, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 8,107,000
<SECURITIES> 26,490,000
<RECEIVABLES> 13,161,000
<ALLOWANCES> 280,000
<INVENTORY> 4,149,000
<CURRENT-ASSETS> 70,092,000
<PP&E> 32,638,000
<DEPRECIATION> 10,834,000
<TOTAL-ASSETS> 97,257,000
<CURRENT-LIABILITIES> 8,440,000
<BONDS> 7,065,000
0
0
<COMMON> 134,000
<OTHER-SE> 80,572,000
<TOTAL-LIABILITY-AND-EQUITY> 97,257,000
<SALES> 2,009,000
<TOTAL-REVENUES> 16,325,000
<CGS> 1,796,000
<TOTAL-COSTS> 7,371,000
<OTHER-EXPENSES> 6,894,000
<LOSS-PROVISION> 24,000
<INTEREST-EXPENSE> 119,000
<INCOME-PRETAX> 2,060,000
<INCOME-TAX> 680,000
<INCOME-CONTINUING> 1,380,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,380,000
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
</TABLE>
