Cytori Therapeutics Announces Second Quarter and Six Month Financial Results
Monday August 15, 9:30 am ET
biz.yahoo.com
fwiw...emphasis mine.
Best of Luck,
SS
btw...they also mentioned that they are filing for Nasdaq listing this week on the conference call.
>>>
Cytori Therapeutics Announces Second Quarter and Six Month Financial Results
Monday August 15, 9:30 am ET
SAN DIEGO--(BUSINESS WIRE)--Aug. 15, 2005--Cytori Therapeutics, Inc. (Frankfurt: XMP - News), a biotechnology company innovating regenerative medicine, announced financial results for the quarter and six months ended June 30, 2005.
"In the second quarter of 2005, Cytori Therapeutics continued to advance its development of adipose stem cell therapies and systems," said Christopher J. Calhoun, Chief Executive Officer of Cytori Therapeutics. "During the first half, three accomplished medical scientists joined the Company to bolster our research and clinical development and, after the end of the quarter, we published preclinical research findings demonstrating adipose stem cells may repair damage to an injured heart through multiple mechanisms. Additionally, in May, we received $11.0 million from a strategic equity agreement that we entered into with Olympus Corporation."
Cytori Therapeutics strategically reorganized the company due to its shift in focus toward and progress in the development of cell-based treatments. This reorganization includes a new corporate name and the creation of a separate division for its surgical implants business. This division will operate under the name MacroPore Biosurgery and will report financial information as an operating segment of Cytori Therapeutics.
For the remainder of 2005, Cytori Therapeutics expects to complete its first regenerative cell technology partnership, submit additional regulatory filings for the Celution(TM) system, which we recently completed development of, and report on additional results from multiple preclinical studies.
Financials
Total revenues for the second quarter of 2005 were $1,541,000 compared to $1,540,000 for the same period in 2004. Of the total revenue for the second quarter of 2005, $1,477,000 was attributable to HYDROSORB(TM) spine and orthopedic implant sales, compared to $886,000 for the same period in 2004. Total revenues for the first half of 2005 were $3,330,000 compared to $3,892,000 for the first half of 2004. Of the total revenue in the first half, $3,232,000 was attributable to HYDROSORB(TM) sales to Medtronic, compared to $2,533,000 for the same period in 2004. The increase in HYDROSORB(TM) revenues for the second quarter and first half of 2005 is due predominantly to stocking orders for the radiographically identifiable Spine System products, marketed under the name MYSTIQUE(TM), which was recently launched by Medtronic.
Net loss for the second quarter of 2005 was $5,359,000 compared to a net loss of $3,810,000 for the same period in 2004. Net loss for the first half of 2005 was $9,886,000 compared to a net loss of $2,320,000 for the same period in 2004. The net loss in the first half of 2004 included a $5,000,000 gain related to the sale of the Craniomaxillofacial product line to Medtronic. Net loss in the first half of 2004 before the gain was $7,320,000 as shown in the table below(1). The increase in net loss for the second quarter and first half of 2005 is primarily attributable to the increase in research and development related to the cell-based therapeutics and systems.
Six Months Ended June 30,
----------------------------
2005 2004
------------- ------------
Net loss GAAP $ (9,886,000) $(2,320,000)
Less: Gain on the sale of asset, related
party -- (5,000,000)
------------- ------------
Adjusted net loss $ (9,886,000) $(7,320,000)
============= ============
(1) The Company believes adjusted net loss is a useful measure by which investors can evaluate our operating performance on a comparable basis, unaffected by the $5,000,000 payment we recorded in the first half of 2004.
Cytori Therapeutics ended the second quarter of 2005 with $14,822,000 in cash, cash equivalents and short-term investments and $491,000 in accounts receivable.
Conference Call Information
The management of Cytori Therapeutics will host a conference call today at 10:00 a.m. Eastern Daylight Time (EDT) or 4:00 p.m. Central European Summer Time (CEST). The conference call will be webcast live and may be accessed under "Events & Webcasts" in the Investor Relations section of the Company's website at cytoritx.com. The archived version of the webcast will be available 60 minutes after the call on the company's website and accessible for 90 days. A telephone replay will be available for one week. To access the replay, please call +1 (303) 590-3000 (PIN: 11036406#) or +49 (0) 69- 58 99 90 568 (PIN: 133371#).
About Cytori Therapeutics
Cytori Therapeutics (Frankfurt: XMP - News) is discovering and developing proprietary cell-based therapeutics utilizing adult stem cells derived from adipose, also known as fat tissue. The Company's investigational therapies target cardiovascular disease, spine and orthopedic conditions, gastrointestinal disorders and new approaches for aesthetic and reconstructive surgery. To facilitate processing and delivery of adipose stem cells, Cytori is developing its proprietary Celution(TM) system to isolate and concentrate a patient's own stem cells in about an hour. This system will dramatically improve the speed in which personalized cell-based therapies can be delivered to patients.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding events and trends which may affect Cytori Therapeutics' future operating results and financial position. Such statements are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially. Some of these risks and uncertainties are described (under the heading "Risk Factors") in Cytori Therapeutics' 2004 Form 10-K annual report for the year ended December 31, 2004 and subsequent SEC filings, which are available through the Company's web site. Cytori Therapeutics assumes no responsibility to update any revision of forward-looking statements to reflect events, trends or circumstances after the date they are made.
CONSOLIDATED CONDENSED BALANCE SHEETS
As of
As of June December
30, 2005 31, 2004
------------ ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 3,076,000 $ 2,840,000
Short-term investments, available-for-
sale 11,746,000 10,579,000
Accounts receivable, net of allowance for
doubtful accounts of $5,000 and $8,000
in 2005 and 2004, respectively 491,000 863,000
Inventories 532,000 379,000
Other current assets 901,000 984,000
------------ ------------
Total current assets 16,746,000 15,645,000
Property and equipment, net 2,900,000 3,080,000
Other assets 393,000 236,000
Intangibles, net 1,987,000 2,122,000
Goodwill 4,387,000 4,387,000
------------ ------------
Total assets $26,413,000 $25,470,000
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 2,489,000 $ 2,329,000
Current portion of long-term obligations 773,000 938,000
------------ ------------
Total current liabilities 3,262,000 3,267,000
Deferred gain on sale of assets 5,650,000 5,650,000
Deferred license fee revenue 1,500,000 1,500,000
Deferred development revenue 1,083,000 1,092,000
Option liability 246,000 --
Deferred other 7,811,000 --
Long-term obligations, less current portion 819,000 1,128,000
------------ ------------
Total liabilities 20,371,000 12,637,000
------------ ------------
Stockholders' equity:
Preferred stock, $0.001 par value;
5,000,000 shares authorized; 0 shares
issued and outstanding in 2005 and 2004 -- --
Common stock, $0.001 par value;
95,000,000 shares authorized; 18,040,018
and 16,820,018 shares issued and
15,167,184 and 13,947,184 shares
outstanding in 2005 and 2004,
respectively 18,000 17,000
Additional paid-in capital 77,817,000 74,737,000
Accumulated deficit (61,361,000) (51,475,000)
Treasury stock, at cost (10,414,000) (10,414,000)
Accumulated other comprehensive loss (18,000) (32,000)
------------ ------------
Total stockholders' equity 6,042,000 12,833,000
------------ ------------
Total liabilities and stockholders'
equity $26,413,000 $25,470,000
============ ============
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(UNAUDITED)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
------------ ----------- ----------------------
2005 2004 2005 2004
----------- ----------- ---------- -----------
Revenues:
Sales to related
party $ 1,477,000 $ 894,000 $3,232,000 $ 2,815,000
Sales to third
parties 2,000 636,000 4,000 977,000
Research grant 62,000 10,000 85,000 100,000
Development -- -- 9,000 --
----------- ----------- ---------- -----------
1,541,000 1,540,000 3,330,000 3,892,000
Cost of revenues:
Cost of revenues
including stock
based
compensation
expense of $0 and
$1,000 for the
three months
ended June 30,
2005 and 2004
respectively; $0
and $3,000 for
the six months
ended June 30,
2005 and 2004,
respectively 738,000 314,000 1,483,000 1,191,000
Inventory
provision -- -- -- 242,000
----------- ----------- ---------- -----------
Gross profit 803,000 1,226,000 1,847,000 2,459,000
----------- ----------- ---------- -----------
Operating expenses:
Research and
development,
excluding stock
based
compensation
expense of
$63,000 and
$32,000 for the
three months
ended June 30,
2005 and 2004,
respectively;
$63,000 and
$32,000 for the
six months ended
June 30, 2005 and
2004,
respectively 3,596,000 2,668,000 6,869,000 5,175,000
Sales and
marketing,
excluding stock
based
compensation
expense of $0 and
$11,000 for the
three months
ended June 30,
2005 and 2004,
respectively; $0
and $22,000 for
the six months
ended June 30,
2005 and 2004,
respectively 337,000 654,000 728,000 1,612,000
General and
administrative,
excluding stock
based
compensation
expense of $0 and
$36,000 for the
three months
ended June 30,
2005 and 2004,
respectively; $0
and $71,000 for
the six months
ended June 30,
2005 and 2004,
respectively 2,098,000 1,575,000 4,007,000 2,801,000
Stock based
compensation
(excluding cost
of revenues stock
based
compensation) 63,000 79,000 63,000 125,000
Change in fair
value of option
liability 60,000 -- 60,000 --
Restructuring
charge -- 70,000 -- 70,000
----------- ----------- ---------- -----------
Total
operating
expenses 6,154,000 5,046,000 11,727,000 9,783,000
----------- ----------- ---------- -----------
Operating
loss (5,351,000) (3,820,000) (9,880,000) (7,324,000)
----------- ----------- ---------- -----------
Other income
(expense):
Gain on sale of
assets, related
party -- -- -- 5,000,000
Interest income 54,000 57,000 109,000 112,000
Interest expense (36,000) (48,000) (76,000) (87,000)
Other income
(expense), net (26,000) 1,000 (39,000) (21,000)
----------- ----------- ---------- -----------
Total other
income
(expense) (8,000) 10,000 (6,000) 5,004,000
----------- ----------- ---------- -----------
Net loss (5,359,000) (3,810,000) (9,886,000) (2,320,000)
----------- ----------- ---------- -----------
Other comprehensive
income (loss):
unrealized holding
income (loss) 14,000 (41,000) 14,000 (50,000)
----------- ----------- ---------- -----------
Comprehensive
loss $(5,345,000) $(3,851,000)$(9,872,000)$(2,370,000)
=========== =========== ========== ===========
Basic and diluted
net loss per common
share $ (0.37) $ (0.27) $ (0.70)$ (0.17)
Basic and diluted
weighted average
common shares 14,379,849 13,920,186 14,168,234 13,933,111
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the six months ended
June 30,
-------------------------
2005 2004
------------ ------------
Cash flows from operating activities:
Net loss $(9,886,000) (2,320,000)
Adjustments to reconcile loss to net cash
used in operating activities:
Depreciation and amortization 861,000 866,000
Inventory provision -- 242,000
Reduction in allowance for doubtful
accounts (3,000) (19,000)
Change in fair value of option liability 60,000 --
Restructuring charge -- 70,000
Amortization of gain on sale of assets,
related party -- (156,000)
Amortization of gain on sale of assets -- (189,000)
Gain on sale of assets, related party -- (5,000,000)
Stock based compensation 63,000 119,000
Increases (decreases) in cash caused by
changes in operating assets and
liabilities:
Accounts receivable 375,000 (147,000)
Inventories (153,000) (51,000)
Other current assets 83,000 (79,000)
Other assets (157,000) 35,000
Accounts payable and accrued expenses 160,000 (413,000)
Deferred development revenue (9,000) 58,000
----------- -----------
Net cash used in operating
activities (8,606,000) (6,984,000)
----------- -----------
Cash flows from investing activities:
Proceeds from sale and maturity of short-
term investments 22,089,000 30,006,000
Purchases of short-term investments (23,242,000)(34,548,000)
Proceeds from sale of assets, related party -- 5,000,000
Proceeds from sale of assets, net -- 6,960,000
Purchases of property and equipment (546,000) (463,000)
Acquisition costs -- (21,000)
----------- -----------
Net cash (used in) provided by
investing activities (1,699,000) 6,934,000
----------- -----------
Cash flows from financing activities:
Principal payments on long-term obligations (474,000) (382,000)
Proceeds from long-term obligations -- 722,000
Proceeds from exercise of employee stock
options 15,000 26,000
Proceeds from sale of common stock 3,003,000 --
Proceeds from issuance of options 186,000 --
Proceeds received in excess of fair market
value of common stock 7,811,000 --
Purchase of treasury stock -- (1,043,000)
----------- -----------
Net cash provided by (used in)
financing activities 10,541,000 (677,000)
----------- -----------
Net increase (decrease) in cash and
cash equivalents 236,000 (727,000)
Cash and cash equivalents at beginning of
period 2,840,000 2,820,000
----------- -----------
Cash and cash equivalents at end of period $ 3,076,000 $ 2,093,000
=========== ===========
--------------------------------------------------------------------------------
Contact:
Cytori Therapeutics, Inc.
Media/U.S. Investors:
Tom Baker, +1-858-458-0900
tbaker@cytoritx.com
or
International Investors:
Stefanie Bacher, +1-858-362-0365
sbacher@cytoritx.com
--------------------------------------------------------------------------------
Source: Cytori Therapeutics, Inc. |
