Full Press Release Details
Cryoport Reports Record Results;
Grows Revenue by 50% for the First Nine Months of Fiscal 2015
Fiscal 2016 Revenue Guidance
Management Conference Call Scheduled
for 10AM ET on February 5th
LAKE FOREST, CA - February 5, 2015 - Cryoport,
Inc. (CYRX) today announced financial results for its fiscal third quarter and nine months ended December 31, 2014.
Recent Operating Highlights
"The momentum in our business is undeniable as we report
another quarter of strong revenue growth and gross margin expansion. Revenues for the third fiscal quarter and first nine months
of fiscal 2015 were the highest in our company's history," stated Cryoport's CEO, Jerrell Shelton.
"The global biotech and life sciences boom continues to
drive demand for cryogenic shipments of biologic material. Innovations in immuno-oncology, gene therapy, CAR-T cell products and
major advances in drug discovery and bio-manufacturing have made the use of advanced cryogenic logistics solutions an imperative
for laboratories, clinics and Big Pharma. Cryoport supports the safe and secure transfer of biologic materials around the globe.
This is why the three major air freight shipping companies in the world, collectively accounting for 85% market share, have chosen
Cryoport as their cryogenic logistics provider of choice."
Nine-Month Financial Results
Cryoport's net revenues increased 50% to $2.7 million
for the nine months ended December 31, 2014, as compared to $1.8 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 nine months ended December 31, 2014 was
29% of net revenues, or $0.8 million, as compared to gross margin of 16% of net revenues, or $0.3 million, for the nine months
ended December 31, 2014. The increase in gross margin illustrates the operating leverage in the business model as revenue continues
Net loss decreased by 72% to $5.1 million
for the nine months ended December 31, 2014, compared with a net loss of $18.1 million for the nine months ended December 31, 2013.
The net loss for the fiscal year 2014 period included a debt conversion expense
Three-Month Financial Results
Net revenues increased 29% to $1.0 million for the three months
ended December 31, 2014, as compared to $0.8 million for the three months ended December 31, 2013. The demand for cryogenic logistics
solutions in the life sciences industry and an increase in the Company's client base were the main contributors to the growth.
Gross margin for the three months ended December 31, 2014 was
24% of net revenues, as compared to 22% of net revenues for the three months ended December 31, 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 24% to $1.4 million
for the three months ended December 31, 2014, compared with a net loss of $1.8 million for the three months ended December 31,
Outlook for Fiscal Year 2016
The Company expects revenue for fiscal year 2016 to be between
$10 million and $12 million.
"We know that all the ingredients are present for explosive
growth for Cryoport. As government regulations on shipments of biomaterial become increasingly more stringent and prevalent, we
expect the growth in demand we have been experiencing will accelerate. In the past two years, our addressable market has doubled
in size and our pipeline is stronger than at any time in the company's history. With an expanded sales force under the leadership
of Dr. Mark Sawicki, our newly appointed Chief Commercial Officer, and through our partnerships with the world's top three
shipping companies, we have the ability to capitalize on our market leadership position and deliver exceptional value for our shareholders,"
concluded Mr. Shelton.
The Company will host a conference call at 10:00AM ET on Thursday,
February 5th to review its financial results and business outlook. Participants should call (888) 523-1225 (United States) or
(719) 325-2215 (International) and request the Cryoport call or provide confirmation code: 6985389. A live audio webcast of the
call will also be available on the Investor Relations section of the Company's website at www.cryoport.com. Please
allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.
An archive of the webcast will be available approximately two
hours after completion of the live event and will be accessible on the Investor Relations section of the Company's website at
www.cryoport.com for a limited time. A dial-in replay of the call will also be available to those interested until February
12, 2015. To access the replay, dial (877) 870-5176 (United States) or (858) 384-5517 (International) and enter code: 6985389.
Further information on Cryoport's results are included
on the attached condensed consolidated balance sheets and statements of operations; further explanation of Cryoport's financial
performance is provided in Cryoport's quarterly report for the quarter ended December 31, 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 Cryoport's
website at www.cryoport.com.
About Cryoport, Inc.
Cryoport is the premier provider
of cryogenic logistics solutions to the life sciences industry through its purpose-built proprietary packaging, information technology
and specialized cold chain logistics expertise. We provide leading edge logistics solutions for biologic materials such as immunotherapies,
stem cells, CAR-T cells, and reproductive cells for clients worldwide including points-of-care, CRO's, central laboratories,
biopharmaceuticals, contract manufacturing, health centers and university research. Our packaging is built around our proprietary
Cryoport Express liquid nitrogen dry vapor shippers, which are validated to maintain a constant -150 C temperature for
a 10 day dynamic shipment duration. Our information technology centers around our Cryoportal Logistics Management Platform,
which facilitates management of the entire shipment process. Cryoport is the preferred cryogenic logistics solutions partner to
the world's largest shipping companies controlling more than 85% of the world's air shipments. 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 mobile device.
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
Cryoport Inc. and Subsidiary
Condensed Consolidated Statements of
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenues | $ | 975,188 | $ | 757,327 | $ | 2,736,776 | $ | 1,825,117 | ||||||||
| Cost of revenues | 740,651 | 590,266 | 1,937,926 | 1,531,312 | ||||||||||||
| Gross margin | 234,537 | 167,061 | 798,850 | 293,805 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Selling, general and administrative | 1,492,732 | 1,305,562 | 4,431,290 | 3,768,049 | ||||||||||||
| Research and development | 99,052 | 118,490 | 267,575 | 329,569 | ||||||||||||
| Total operating costs and expenses | 1,591,784 | 1,424,052 | 4,698,865 | 4,097,618 | ||||||||||||
| Loss from operations | (1,357,247 | ) | (1,256,991 | ) | (3,900,015 | ) | (3,803,813 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Debt conversion expense | -- | (552,750 | ) | -- | (13,713,767 | ) | ||||||||||
| Interest expense | (48,605 | ) | (31,786 | ) | (1,185,337 | ) | (626,781 | ) | ||||||||
| Other expense, net | (1,906 | ) | -- | (2,829 | ) | -- | ||||||||||
| Change in fair value of derivative liabilities | -- | 1,196 | -- | 20,845 | ||||||||||||
| Loss before provision for income taxes | (1,407,758 | ) | (1,840,331 | ) | (5,088,181 | ) | (18,123,516 | ) | ||||||||
| Provision for income taxes | -- | -- | (1,600 | ) | -- | |||||||||||
| Net loss | (1,407,758 | ) | (1,840,331 | ) | (5,089,781 | ) | (18,123,516 | ) | ||||||||
| Preferred stock beneficial conversion charge | (492,910 | ) | -- | (2,961,723 | ) | -- | ||||||||||
| Undeclared cumulative preferred dividends | (95,304 | ) | -- | (194,901 | ) | -- | ||||||||||
| Net loss attributable to common stockholders | $ | (1,995,972 | ) | $ | (1,840,331 | ) | $ | (8,246,405 | ) | $ | (18,123,516 | ) | ||||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.14 | ) | $ | (0.40 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 60,057,846 | 58,995,821 | 60,032,189 | 45,342,320 |
Cryoport Inc. and Subsidiary
Summary Condensed Consolidated Balance
| December 31, 2014 | March 31, 2014 | |||||||
| (unaudited) | ||||||||
| Cash and cash equivalents | $ | 773,922 | $ | 369,581 | ||||
| Accounts receivable, net | 407,459 | 515,825 | ||||||
| Inventories | 66,958 | 29,703 | ||||||
| Other current assets | 122,413 | 196,505 | ||||||
| Total current assets | 1,370,752 | 1,111,614 | ||||||
| Property and equipment, net | 349,515 | 408,892 | ||||||
| Intangible assets, net | 146,315 | 180,086 | ||||||
| Deposits and other assets | -- | 9,358 | ||||||
| Total assets | $ | 1,866,582 | $ | 1,709,950 | ||||
| Accounts payable and accrued expenses | $ | 713,465 | $ | 579,678 | ||||
| Accrued compensation and related expenses | 617,636 | 454,288 | ||||||
| Notes payable and accrued interest, net of discount | 343,432 | -- | ||||||
| Convertible debentures payable and accrued interest, net of discount | -- | 1,622,359 | ||||||
| Related party notes payable and accrued interest | 1,309,682 | 1,358,120 | ||||||
| Total current liabilities | 2,984,215 | 4,014,445 | ||||||
| Total stockholders' deficit | (1,117,633 | ) | (2,304,495 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 1,866,582 | $ | 1,709,950 |