Full Press Release Details
Cryoport Increases Revenue by
65% for the First Six Months of Fiscal 2015
Revenue growth driven by broader
expanded distribution and increased
customer utilization
Now has collaborative agreements
with the three major global carriers accounting for over 220 countries.
LAKE FOREST, CA - November 12, 2014 - Cryoport,
Inc. (OTCBB: CYRX) today announced financial results for its second quarter and six months ended September 30, 2014.
Recent Operating Highlights
Six-Month Financial Results
Cryoport's net revenues increased 65% to $1.8 million
for the six months ended September 30, 2014, as compared to $1.1 million for the same period last year. The increase was primarily
driven by growth in overall demand within the Company's existing client base and the addition of new clients using Cryoport
Express Solutions as compared to the same period in the prior year.
Gross margin for the six months ended September 30, 2014 was
32% of net revenues, or $0.6 million, as compared to gross margin of 12% of net revenues, or $0.1 million, for the six months ended
September 30, 2013. Cost of revenues for the six months ended September 30, 2014 was 68% of net revenues, or $1.2 million, as compared
to 88% of net revenues, or $0.9 million for the six months ended September 30, 2013, which illustrates the operating leverage in
the business model as revenue continues to ramp.
Net loss decreased by $13.6 million to $3.7 million
for the six months ended September 30, 2014, a 77% decrease as compared with a net loss of $16.3 million for the six months
ended September 30, 2013. The net loss for the six month period last year included a debt conversion expense of $13.2
Three-Month Financial Results
Net revenues were $0.8 million, a 42% increase for the three
months ended September 30, 2014, as compared with $0.6 million for the three months ended September 30, 2013.
The demand for cryogenic logistics solutions in the life sciences
industry and an increase in our client base were the main contributors to the growth.
Gross margins for the three months ended September 30, 2014
was 27% as compared with 12% for the three months ended September 30, 2013. The increase in gross margin was primarily due to the
operating leverage in the company resulting in improved economies of scale as revenues increased.
Net loss decreased by $13.6 million to $1.4 million
for the three months ended September 30, 2014, a 91% decrease compared with a net loss of $15.0 million for the three months
ended September 30, 2013. The net loss for the second fiscal quarter last year included a debt conversion expense
Cryoport's CEO, Jerrell Shelton, commented, "We
are pleased to report another quarter of revenue growth over last year, resulting in a continued expansion of our gross margin.
Our sales and marketing strategies are gaining momentum as evidenced by an active and growing sales pipeline. Our growth year-to-date
is also a reflection of a flourishing life sciences industry with new therapies coming to market. Our recently announced strategic
collaboration with United Parcel Service (UPS) is yet another strong indication of the acceptance of our validated solutions and
the opportunities that exists within life sciences. We are now the provider of choice for the three major carriers looking to deliver
validated cryogenic logistics solutions to their life sciences and healthcare customers. Our unique, best-in-class solutions deliver
superior economics and reliability to life sciences clients throughout the world.
"Our powered by CryoportSM' partnering
strategy with the leading carriers in the world has expanded our sales and marketing reach in the life sciences community and across
the globe. The increased adoption of our cryogenic logistics solutions is a validation of our technology-centric solutions and
expertise in time- and temperature-sensitive logistics as more life sciences companies rely on our services. We expect our momentum
and growth to continue as we strive to maintain our market leadership."
"We are expanding our client base as we cultivate relationships
with large life sciences companies. Our increases in revenues are coming from across the board as we are recognized as an important
partner to the life sciences industry and we are recognized for providing solutions for the critical link of cryogenic logistics
for the industry. Our employees take pride in our reputation and work diligently to effectively serve our clients and support our
clients' initiatives."
"We maintain our long-term view of the market opportunities
for Cryoport and our strategic vision of being the premier provider of cold chain logistics solutions, including packaging, information
technology, and logistics expertise, to the life sciences industry. Our competencies to customize cryogenic logistics solutions
to meet client-defined needs and requirements are unsurpassed in the industry. Our role in the fast growing cold chain market for
life sciences continues to be validated by the increasing attention we receive from industry players that serve the life sciences
market including integrators, specialty
couriers, freight forwarders and brokers," concluded
Further information on Cryoport's results are included
on the attached condensed consolidated balance sheets and statements of operations and further explanation of Cryoport's
financial performance is provided in Cryoport's quarterly report for the quarter ended September 30, 2014 on Form 10-Q, which
was filed with the SEC today. The full report is available on the SEC Filings section of the Investor Relations section of our
website at www.cryoport.com.
About Cryoport, Inc.
Cryoport provides leading edge cryogenic logistics solutions
to the life sciences industry through the combination of purpose-built proprietary packaging, software technologies and skilled
and total management of the entire logistics process. Cryoport Express liquid nitrogen dry vapor shippers are validated
to maintain a constant -150 C temperature for a 10-plus day dynamic shipment duration, and its Cryoportal Logistics
Management Platform assists in managing the entire shipment process, including initial order input, document preparation, customs
documentation and clearance, courier management, shipment tracking, issue resolution, and delivery. Cryoport's total turnkey
logistics solutions offer reliability, cost effectiveness, and convenience, while the use of recyclable and reusable components
provides a "green" and environmentally friendly solution. Among Cryoport's service options, the client has the
option to record and archive the "chain of condition" and "chain of custody" information for shipments
thereby meeting the exacting requirements for scientific work and regulatory purposes. For more information visit www.cryoport.com.
To download Cryoport's investor relations app, which offers
access to SEC documents, press releases, videos, audiocasts and more, please click to download from your iPhone and iPad or Android
Forward Looking Statements
Statements in this press release which are not purely historical,
including statements regarding Cryoport, Inc.'s intentions, hopes, beliefs, expectations, representations, projections, plans
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 in any such forward-looking
statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties
associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow,
market acceptance risks, and technical development risks. The company's business could be affected by a number of other factors,
including the risk factors listed from time to time in the company's SEC reports including, but not limited to, the annual report
on Form 10-K for the year ended March 31, 2014. The company cautions investors not to place undue reliance on the forward-looking
statements contained in this press release. Cryoport, Inc. disclaims any obligation, and does not undertake to update or revise
any forward-looking statements in this press release.
Todd Fromer / Garth Russell
Condensed Consolidated Statements of
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net revenues | $ | 825,000 | $ | 579,827 | $ | 1,761,588 | $ | 1,067,790 | ||||||||
| Net revenues | $ | 825,000 | $ | 579,827 | $ | 1,761,588 | $ | 1,067,790 | ||||||||
| Cost of revenues | 600,042 | 507,725 | 1,197,275 | 941,046 | ||||||||||||
| Gross margin | 224,958 | 72,102 | 564,313 | 126,744 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Selling, general and administrative | 1,510,708 | 1,240,413 | 2,938,558 | 2,462,487 | ||||||||||||
| Research and development | 89,279 | 118,436 | 168,523 | 211,079 | ||||||||||||
| Total operating costs and expenses | 1,599,987 | 1,358,849 | 3,107,081 | 2,673,566 | ||||||||||||
| Loss from operations | (1,375,029 | ) | (1,286,747 | ) | (2,542,768 | ) | (2,546,822 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Debt conversion expense | -- | (13,161,017 | ) | -- | (13,161,017 | ) | ||||||||||
| Interest expense | (7,854 | ) | (512,776 | ) | (1,136,732 | ) | (594,995 | ) | ||||||||
| Other expense, net | (1,876 | ) | -- | (923 | ) | -- | ||||||||||
| Change in fair value of derivative liabilities | -- | 892 | -- | 19,649 | ||||||||||||
| Loss before provision for income taxes | (1,384,759 | ) | (14,959,648 | ) | (3,680,423 | ) | (16,283,185 | ) | ||||||||
| Provision for income taxes | -- | -- | (1,600 | ) | -- | |||||||||||
| Net loss | (1,384,759 | ) | (14,959,648 | ) | (3,682,023 | ) | (16,283,185 | ) | ||||||||
| Preferred stock beneficial conversion charge | (1,727,027 | ) | -- | (2,468,813 | ) | -- | ||||||||||
| Undeclared cumulative preferred dividends | (71,874 | ) | -- | (99,597 | ) | -- | ||||||||||
| Net loss attributable to common stockholders | $ | (3,183,660 | ) | $ | (14,959,648 | ) | $ | (6,250,433 | ) | $ | (16,283,185 | ) | ||||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.05 | ) | $ | (0.38 | ) | $ | (0.10 | ) | $ | (0.42 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 60,048,933 | 39,110,774 | 60,019,290 | 38,589,663 |
Cryoport Inc. and Subsidiary
Summary Condensed Consolidated Balance Sheets
| September 30, | March 31, | |||||||
| 2014 | 2014 | |||||||
| (unaudited) | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 103,343 | $ | 369,581 | ||||
| Accounts receivable, net | 408,080 | 515,825 | ||||||
| Inventories | 58,804 | 29,703 | ||||||
| Other current assets | 85,312 | 196,505 | ||||||
| Total current assets | 655,539 | 1,111,614 | ||||||
| Property and equipment, net | 393,372 | 408,892 | ||||||
| Intangible assets, net | 156,407 | 180,086 | ||||||
| Deposits and other assets | - | 9,358 | ||||||
| Total assets | $ | 1,205,318 | $ | 1,709,950 | ||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued expenses | $ | 703,084 | $ | 579,678 | ||||
| Accrued compensation and related expenses | 549,659 | 454,288 | ||||||
| Convertible debentures payable and accrued interest, net of discount | - | 1,622,359 | ||||||
| Current portion of related party notes payable | 1,326,188 | 1,358,120 | ||||||
| Total current liabilities | 2,578,931 | 4,014,445 | ||||||
| Total stockholders' deficit | (1,373,613 | ) | (2,304,495 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 1,205,318 | $ | 1,709,950 |