Full Press Release Details
First Quarter Highlights:
ATLANTA , May 5, 2025 /PRNewswire/ -- Artivion, Inc. (NYSE: AORT ), a leading cardiac and vascular surgery company focused on aortic disease, today announced financial results for the first quarter ended March 31, 2025 .
"I am pleased with our first quarter results as we returned to normal operations following our previously disclosed cybersecurity incident while making substantial progress on our strategic growth initiatives. As anticipated, our performance was driven by year-over-year growth in stent grafts of 14%, On-X of 10%, and BioGlue of 7%, all compared to the first quarter of 2024. On a constant currency basis, year-over-year stent grafts, On-X, and BioGlue grew 19%, 11% and 9%, respectively. Our strong product revenue growth of 14% on a constant currency basis was tempered by a 23% decrease in preservation services revenue due to the short-term backlog in tissue processing operations caused by the cybersecurity incident. We are pleased with our team's progress to date in returning to standard tissue processing times, as we outpaced our initial expectations enabling stronger than anticipated first quarter performance," said Pat Mackin , Chairman, President, and Chief Executive Officer.
Mr. Mackin added, "Given our strong first quarter performance, we are raising the midpoint of our full year revenue expectations for 2025 and remain confident in our ability to grow adjusted EBITDA at twice the rate of constant currency revenue growth."
Mr. Mackin concluded, "We were also pleased to see Endospan present positive new clinical data for its NEXUS aortic stent graft system at the AATS Annual Meeting in May. Trial data out to 30 days met its primary endpoints and demonstrated statistically significant improvement in clinical outcomes compared with the goals set in the investigational protocol. With these outcomes, we believe NEXUS remains on track for FDA approval in the second half of 2026 and we look forward to Endospan sharing 1-year follow up data next year."
First Quarter 2025 Financial Results Total revenues for the first quarter of 2025 were $99.0 million , an increase of 2% on a GAAP basis and 4% on a non-GAAP constant currency basis, both compared to the first quarter of 2024.
Net loss for the first quarter of 2025 was $(0.5) million , or $(0.01) per fully diluted common share, compared to net income of $7.5 million , or $0.18 per fully diluted common share for the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 was $2.5 million , or $0.06 per fully diluted common share, compared to non-GAAP net income of $2.6 million , or $0.06 per fully diluted common share for the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 includes pretax gains related to foreign currency revaluation of $2.9 million .
2025 Financial Outlook Artivion is raising the midpoint of its revenue guidance and now expects full year 2025 revenue to be in the range of $423 to $435 million , representing growth of 11% to 14% on a constant currency basis compared to 2024. While current exchange rates would provide incremental upside to our as-reported revenue guidance range, the Company is not revising its FX assumptions at this time given ongoing volatility in the foreign exchange environment.
Additionally, Artivion continues to expect adjusted EBITDA growth of between 18% and 28% for the full year 2025 compared to 2024, resulting in an expected range of $84 to $91 million for 2025.
The Company's financial performance for 2025 and future periods is subject to the risks identified below.
Non-GAAP Financial Measures This press release contains non-GAAP financial measures, including non-GAAP revenue, non-GAAP net income and diluted EPS, EBITDA, adjusted EBITDA, non-GAAP general, administrative, and marketing expenses, and free cash flows. Investors should consider this non-GAAP information in addition to, and not as a substitute for, financial measures prepared in accordance with US GAAP. In addition, this non-GAAP financial information may not be the same as similar measures presented by other companies. The Company's non-GAAP revenues are adjusted for the impact of changes in currency exchange. The Company's non-GAAP net income, EBITDA, adjusted EBITDA, general, administrative, and marketing, and free cash flows results primarily exclude (as applicable) depreciation and amortization expense, interest income and expense, non-cash compensation expense, loss or gain on foreign currency revaluation, income tax expense or benefit, business development, integration, and severance income or expense, loss on extinguishment of debt, non-cash interest expense, capital expenditures, and other non-recurring items.
The Company generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the Company and as a basis for strategic planning. Company management believes that these non-GAAP presentations provide useful information to investors regarding unusual non-operating transactions, the operating expense structure of the Company's existing and acquired operations, without regard to its on-going efforts to acquire additional complementary products and businesses, and the transaction and integration expenses incurred in connection with recently acquired and divested product lines, and the operating expense structure excluding fluctuations resulting from foreign currency revaluation and non-cash compensation expense. The Company believes it is useful to exclude certain expenses and revenues because such amounts in any specific period may not directly correlate to the underlying performance of its business operations or can vary significantly between periods as a result of factors such as impact of recent acquisitions, non-cash expense related to amortization of previously acquired tangible and intangible assets, and any related adjustments to their carrying values. The Company has adjusted for the impact of changes in currency exchange from certain revenues to evaluate comparable product growth rates on a constant currency basis. The Company does, however, expect to incur similar types of expenses and currency exchange impacts in the future, and this non-GAAP financial information should not be viewed as a statement or indication that these types of expenses will not recur. Company management encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety, including the reconciliation of GAAP to non-GAAP financial measures.
Webcast and Conference Call Information The Company will hold a teleconference call and live webcast on May 5, 2025 , at 4:30 p.m. ET to discuss the results, followed by a question-and-answer session. To participate in the conference call dial 201-689-8261 a few minutes prior to 4:30 p.m. ET . The teleconference replay will be available approximately one hour following the completion of the event and can be accessed by calling (toll free) 877-660-6853 or 201-612-7415. The conference number for the replay is 13752340.
The live webcast and replay can be accessed by going to the Investors section of the Artivion website at www.Artivion.com and selecting the heading Webcasts & Presentations.
About Artivion, Inc. Headquartered in suburban Atlanta, Georgia , Artivion, Inc., is a medical device company focused on developing simple, elegant solutions that address cardiac and vascular surgeons' most difficult challenges in treating patients with aortic diseases. Artivion's four major groups of products include: aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues. Artivion markets and sells products in more than 100 countries worldwide. For additional information about Artivion, visit our website, www.Artivion.com .
| Artivion, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income In Thousands, Except Per Share Data (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| Revenues: | |||
| Products | $ 78,798 | $ 71,114 | |
| Preservation services | 20,180 | 26,317 | |
| Total revenues | 98,978 | 97,431 | |
| Cost of products and preservation services: | |||
| Products | 25,263 | 23,750 | |
| Preservation services | 10,138 | 10,735 | |
| Total cost of products and preservation services | 35,401 | 34,485 | |
| Gross margin | 63,577 | 62,946 | |
| Operating expenses: | |||
| General, administrative, and marketing | 54,704 | 30,689 | |
| Research and development | 6,728 | 6,946 | |
| Total operating expenses | 61,432 | 37,635 | |
| Operating income | 2,145 | 25,311 | |
| Interest expense | 7,663 | 7,826 | |
| Interest income | (144) | (374) | |
| Loss on extinguishment of debt | — | 3,669 | |
| Other (income) expense, net | (3,079) | 1,409 | |
| (Loss) income before income taxes | (2,295) | 12,781 | |
| Income tax (benefit) expense | (1,790) | 5,248 | |
| Net (loss) income | $ (505) | $ 7,533 | |
| (Loss) income per share: | |||
| Basic | $ (0.01) | $ 0.18 | |
| Diluted | $ (0.01) | $ 0.18 | |
| Weighted-average common shares outstanding: | |||
| Basic | 42,232 | 41,290 | |
| Diluted | 42,232 | 47,886 | |
| Net (loss) income | $ (505) | $ 7,533 | |
| Other comprehensive income: | |||
| Foreign currency translation adjustments, net of tax | 6,331 | (1,528) | |
| Comprehensive income | $ 5,826 | $ 6,005 |
| Artivion, Inc. and Subsidiaries Condensed Consolidated Balance Sheets In Thousands | |||
| March 31, 2025 | December 31, 2024 | ||
| (Unaudited) | |||
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | $ 37,693 | $ 53,463 | |
| Trade receivables, net | 87,802 | 79,462 | |
| Other receivables | 7,956 | 6,431 | |
| Inventories | 81,927 | 79,766 | |
| Deferred preservation costs | 52,375 | 51,701 | |
| Prepaid expenses and other | 19,544 | 19,257 | |
| Total current assets | 287,297 | 290,080 | |
| Goodwill | 245,069 | 240,958 | |
| Acquired technology, net | 127,530 | 128,051 | |
| Operating lease right-of-use assets, net | 39,229 | 39,726 | |
| Property and equipment, net | 37,810 | 36,403 | |
| Other intangibles, net | 28,517 | 28,332 | |
| Deferred tax assets, net | 684 | 1,068 | |
| Other long-term assets | 25,027 | 24,483 | |
| Total assets | $ 791,163 | $ 789,101 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current liabilities: | |||
| Accounts payable | $ 11,695 | $ 17,971 | |
| Accrued compensation | 12,294 | 18,342 | |
| Accrued expenses | 11,520 | 11,834 | |
| Accrued interest | 6,757 | 8,170 | |
| Taxes payable | 1,605 | 2,934 | |
| Accrued procurement fees | 1,982 | 1,704 | |
| Current maturities of operating leases | 4,575 | 4,489 | |
| Current portion of finance lease obligations | 669 | 601 | |
| Current portion of long-term debt, net | 135 | 195 | |
| Other current liabilities | 708 | 583 | |
| Total current liabilities | 51,940 | 66,823 | |
| Long-term debt, net | 314,611 | 314,152 | |
| Contingent consideration | 50,050 | 52,880 | |
| Non-current maturities of operating leases | 39,353 | 39,988 | |
| Deferred tax liabilities, net | 21,532 | 20,183 | |
| Deferred compensation liability | 8,070 | 7,977 | |
| Non-current finance lease obligations | 3,016 | 2,833 | |
| Other long-term liabilities | 8,339 | 8,065 | |
| Total liabilities | $ 496,911 | $ 512,901 | |
| Commitments and contingencies | |||
| Stockholders' equity: | |||
| Preferred stock $0.01 par value per share, 5,000 shares authorized, no shares issued | — | — | |
| Common stock $0.01 par value per share, 75,000 shares authorized, 44,190 and 43,432 shares issued as of March 31, 2025 and December 31, 2024, respectively | 442 | 434 | |
| Additional paid-in capital | 388,825 | 376,607 | |
| Retained deficit | (61,771) | (61,266) | |
| Accumulated other comprehensive loss | (18,596) | (24,927) | |
| Treasury stock, at cost, 1,487 shares as of March 31, 2025 and December 31, 2024 | (14,648) | (14,648) | |
| Total stockholders' equity | 294,252 | 276,200 | |
| Total liabilities and stockholders' equity | $ 791,163 | $ 789,101 |
| Artivion, Inc. and Subsidiaries Condensed Consolidated Statement of Cash Flows In Thousands (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| Net cash flows from operating activities: | |||
| Net (loss) income | $ (505) | $ 7,533 | |
| Adjustments to reconcile net (loss) income to net cash from operating activities: | |||
| Depreciation and amortization | 5,446 | 5,909 | |
| Non-cash compensation | 8,045 | 3,478 | |
| Non-cash lease expense | 1,226 | 1,920 | |
| Write-down of inventories and deferred preservation costs | 1,312 | 723 | |
| Deferred income taxes | — | 4,299 | |
| Change in fair value of contingent consideration | (2,830) | (17,470) | |
| Loss on extinguishment of debt | — | 3,669 | |
| Other | (2,891) | 644 | |
| Changes in operating assets and liabilities: | |||
| Receivables | (7,922) | (3,334) | |
| Inventories and deferred preservation costs | (2,453) | (1,380) | |
| Prepaid expenses and other assets | (327) | (2,268) | |
| Accounts payable, accrued expenses, and other liabilities | (16,054) | (9,216) | |
| Net cash flows used in operating activities | (16,953) | (5,493) | |
| Net cash flows from investing activities: | |||
| Capital expenditures | (3,638) | (3,611) | |
| Net cash flows used in investing activities | (3,638) | (3,611) | |
| Net cash flows from financing activities: | |||
| Proceeds from issuance of long-term debt | — | 190,000 | |
| Proceeds from revolving credit facility | — | 30,000 | |
| Repayment of debt | (66) | (211,627) | |
| Proceeds from exercise of stock options and issuance of common stock | 4,181 | 3,528 | |
| Payment of debt issuance costs | — | (9,998) | |
| Principal payments on short-term notes payable | — | (1,027) | |
| Other | (178) | (139) | |
| Net cash flows provided by financing activities | 3,937 | 737 | |
| Effect of exchange rate changes on cash and cash equivalents | 884 | 545 | |
| Decrease in cash and cash equivalents | (15,770) | (7,822) | |
| Cash and cash equivalents beginning of period | 53,463 | 58,940 | |
| Cash and cash equivalents end of period | $ 37,693 | $ 51,118 |
| Artivion, Inc. and Subsidiaries Financial Highlights In Thousands (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| Products: | |||
| Aortic stent grafts | $ 36,602 | $ 32,103 | |
| On-X | 21,574 | 19,681 | |
| Surgical sealants | 18,106 | 16,981 | |
| Other | 2,516 | 2,349 | |
| Total products | 78,798 | 71,114 | |
| Preservation services | 20,180 | 26,317 | |
| Total revenues | $ 98,978 | $ 97,431 | |
| North America | 47,793 | 50,928 | |
| Europe, the Middle East, and Africa | 37,045 | 33,588 | |
| Asia Pacific | 8,214 | 7,609 | |
| Latin America | 5,926 | 5,306 | |
| Total revenues | $ 98,978 | $ 97,431 |
| Artivion, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Revenues $ In Thousands (Unaudited) | |||||||||
| Revenues for the Three Months Ended March 31, | Percent Change From Prior Year | ||||||||
| 2025 | 2024 | ||||||||
| US GAAP | US GAAP | Exchange Rate Effect | Constant Currency | Constant Currency | |||||
| Products: | |||||||||
| Aortic stent grafts | $ 36,602 | $ 32,103 | $ (1,308) | $ 30,795 | 19 % | ||||
| On-X | 21,574 | 19,681 | (272) | 19,409 | 11 % | ||||
| Surgical sealants | 18,106 | 16,981 | (317) | 16,664 | 9 % | ||||
| Other | 2,516 | 2,349 | (4) | 2,345 | 7 % | ||||
| Total products | 78,798 | 71,114 | (1,901) | 69,213 | 14 % | ||||
| Preservation services | 20,180 | 26,317 | (67) | 26,250 | -23 % | ||||
| Total | $ 98,978 | $ 97,431 | $ (1,968) | $ 95,463 | 4 % | ||||
| North America | 47,793 | 50,928 | (152) | 50,776 | -6 % | ||||
| Europe, the Middle East, and Africa | 37,045 | 33,588 | (1,210) | 32,378 | 14 % | ||||
| Asia Pacific | 8,214 | 7,609 | — | 7,609 | 8 % | ||||
| Latin America | 5,926 | 5,306 | (606) | 4,700 | 26 % | ||||
| Total | $ 98,978 | $ 97,431 | $ (1,968) | $ 95,463 | 4 % |
| Artivion, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP General, Administrative, and Marketing Expense, EBITDA, Adjusted EBITDA, and Free Cash Flows In Thousands (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| Reconciliation of G&A expenses, GAAP to adjusted G&A, non-GAAP: | |||
| General, administrative, and marketing expense, GAAP | $ 54,704 | $ 30,689 | |
| Business development, integration, and severance income | (2,784) | (17,387) | |
| Cybersecurity incident | 4,450 | — | |
| Adjusted G&A, non-GAAP | $ 53,038 | $ 48,076 | |
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| Reconciliation of net (loss) income, GAAP and EBITDA, non-GAAP to adjusted EBITDA, non-GAAP: | |||
| Net (loss) income, GAAP | $ (505) | $ 7,533 | |
| Adjustments: | |||
| Interest expense | 7,663 | 7,826 | |
| Interest income | (144) | (374) | |
| Income tax (benefit) expense | (1,790) | 5,248 | |
| Depreciation and amortization expense | 5,446 | 5,909 | |
| EBITDA, non-GAAP | 10,670 | 26,142 | |
| Non-cash compensation | 8,045 | 3,478 | |
| Business development, integration, and severance income | (3,057) | (17,387) | |
| Cybersecurity incident | 4,746 | — | |
| Loss on extinguishment of debt | — | 3,669 | |
| (Gain) loss on foreign currency revaluation | (2,856) | 1,410 | |
| Adjusted EBITDA, non-GAAP | $ 17,548 | $ 17,312 | |
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| Reconciliation of cash flows from operating activities, GAAP to free cash flows, non-GAAP: | |||
| Net cash flows provided by operating activities | (16,953) | (5,493) | |
| Capital expenditures | (3,638) | (3,611) | |
| Free cash flows, non-GAAP | $ (20,591) | $ (9,104) |
| Artivion Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Net Income and Diluted Income Per Common Share In Thousands, Except Per Share Data (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| GAAP: | |||
| (Loss) income before income taxes | $ (2,295) | $ 12,781 | |
| Income tax (benefit) expense | $ (1,790) | $ 5,248 | |
| Net (loss) income | $ (505) | $ 7,533 | |
| Diluted (loss) income per common share | $ (0.01) | $ 0.18 | |
| Diluted weighted-average common shares outstanding | 42,232 | 47,886 | |
| Reconciliation of (loss) income before income taxes, GAAP to adjusted income, non-GAAP: | |||
| (Loss) income before income taxes, GAAP: | $ (2,295) | $ 12,781 | |
| Adjustments: | |||
| Amortization expense | 3,388 | 3,867 | |
| Business development, integration, and severance income | (3,057) | (17,387) | |
| Non-cash interest expense | 543 | 580 | |
| Cybersecurity incident | 4,746 | — | |
| Loss on extinguishment of debt | — | 3,669 | |
| Adjusted income before income taxes, non-GAAP | 3,325 | 3,510 | |
| Income tax expense calculated at a tax rate of 25% | 831 | 878 | |
| Adjusted net income, non-GAAP | $ 2,494 | $ 2,632 | |
| Reconciliation of diluted (loss) income per common share, GAAP to adjusted diluted income per common share, non-GAAP: | |||
| Diluted (loss) income per common share, GAAP: | $ (0.01) | $ 0.18 | |
| Adjustments: | |||
| Amortization expense | 0.08 | 0.09 | |
| Business development, integration, and severance income | (0.07) | (0.41) | |
| Non-cash interest expense | 0.01 | 0.01 | |
| Cybersecurity incident | 0.11 | — | |
| Loss on extinguishment of debt | — | 0.09 | |
| Tax effect of non-GAAP adjustments | (0.03) | 0.05 | |
| Effect of 25% tax rate | (0.03) | 0.05 | |
| Adjusted diluted income per common share, non-GAAP | $ 0.06 | $ 0.06 | |
| Reconciliation of diluted weighted-average common shares outstanding GAAP to diluted weighted-average common shares outstanding, non-GAAP: | |||
| Diluted weighted-average common shares outstanding, GAAP: | 42,232 | 47,886 | |
| Adjustments: | |||
| Effect of dilutive stock options and awards | 1,306 | — | |
| Effect of convertible senior notes | — | (5,707) | |
| Diluted weighted-average common shares outstanding, non-GAAP | 43,538 | 42,179 |
| Contacts: | |
| Artivion | Gilmartin Group LLC |
| Lance A. Berry | Brian Johnston / Laine Morgan |
| Executive Vice President & | Phone: 332-895-3222 |
| Chief Financial Officer | [email protected] |
| Phone: 770-419-3355 |
SOURCE Artivion, Inc.