Cord Blood Banking Leader Cryo-Cell Reports Fiscal Third Quarter 2024 Financial Results

Rhea-AI Summary

Cryo-Cell International, Inc. (NYSE: CCEL), the world's first private cord blood bank, reported its fiscal third quarter 2024 financial results. Highlights include:

- Revenue increased to $8.07 million, up from $7.87 million in Q3 2023
- Net income rose to $1.05 million ($0.13 per share), compared to $681,000 ($0.08 per share) in Q3 2023
- Gains on marketable securities were $522,000, up from $93,000 in Q3 2023

The company is exploring strategic alternatives to maximize shareholder value and considering instituting a regular quarterly dividend. Cryo-Cell's proposed spinoff of Celle Corp. is currently on hold due to a Demand for Arbitration filed with Duke University. The company continues to expand its services, including the launch of ExtraVault for biostorage and distribution solutions.

Positive

• Revenue increased by 2.5% year-over-year to $8.07 million
• Net income grew by 54.2% to $1.05 million
• Earnings per share increased from $0.08 to $0.13
• Gains on marketable securities rose significantly from $93,000 to $522,000
• Board of Directors considering instituting a regular quarterly dividend

Negative

• Proposed spinoff of Celle Corp. is currently on hold
• Demand for Arbitration filed with Duke University, potentially affecting operations

Insights

Financial Analyst

Cryo-Cell's Q3 2024 results show positive momentum. Revenue increased by 2.5% year-over-year to $8.07 million, while net income surged by 54.2% to $1.05 million. The earnings per share jumped from $0.08 to $0.13, a significant improvement. A key driver was the $522,000 gain on marketable securities, up from $93,000 last year.

The company's exploration of strategic alternatives and potential regular dividend payments signals a focus on shareholder value. However, investors should note that the spinoff of Celle Corp is on hold and there's ongoing arbitration with Duke University. These factors could impact future growth and operations.

The strong historical cash generation and reduced spending forecast related to the Duke License Agreement provide a solid foundation for potential dividend payments. This could make CCEL more attractive to income-focused investors, potentially supporting the stock price.

Medical Research Analyst

Cryo-Cell's position as the world's first private cord blood bank, with over 500,000 clients from 87 countries, underscores its market leadership. The company's dual approach of private and public banking, in partnership with Duke University, demonstrates a comprehensive strategy in the stem cell preservation sector.

The FDA registration, cGMP/cGTP compliance and FACT accreditation highlight Cryo-Cell's commitment to quality and regulatory standards. The exclusive rights to PrepaCyte-CB technology give the company a competitive edge in cord blood processing.

The transformation into a vertically integrated cellular therapy company, initiated by the Duke University license agreement, could open new revenue streams and research opportunities. However, the current hold on the Celle Corp spinoff and arbitration with Duke may temporarily slow this transformation. Investors should monitor these developments closely as they could significantly impact the company's future in the cellular therapy market.

OLDSMAR, Fla.--(BUSINESS WIRE)-- Cryo-Cell International, Inc. (NYSE American LLC Symbol: CCEL) (the “Company”), the world’s first private cord blood bank to separate and store stem cells in 1992, announced results for the fiscal third quarter ended August 31, 2024.

Financial Results

Revenue

Consolidated revenues for the third quarter of fiscal 2024 were $8.07 million compared to $7.87 million for the third quarter of fiscal 2023.

Net Income

The Company reported net income for the three months ended August 31, 2024 of $1.05 million, or $0.13 per basic share and diluted share, compared to net income of $681,000, or $0.08 per basic and diluted share for the three months ended August 31, 2023. During the three months ended August 31, 2024, gains on marketable securities was $522,000 compared to $93,000 for the three months ended August 31, 2023.

David Portnoy, Chairman of the Board and Co-CEO, commented, “As previously reported, the Company is exploring strategic alternatives to maximize shareholder value and that process remains underway. There can be no assurance that a transaction will be consummated. Also, please note that significant disclosures are available in the Company’s Form 10-Q, filed with the Securities and Exchange Commission on October 15, 2024, associated with the filing of the Company’s Demand for Arbitration with Duke University. Consequently, the Company’s proposed spinoff of Celle Corp. is currently on hold.”

Mr. Portnoy added, “Given the Company’s strong historical cash generation and its reduced forecast for spending related to the Duke License Agreement, Cryo-Cell’s Board of Directors is considering instituting the payment to shareholders of a regular quarterly dividend.”

About Cryo-Cell International, Inc.

Founded in 1989, Cryo-Cell International, Inc. is the world’s first private cord blood bank. ‎More than 500,000 parents from 87 countries have entrusted Cryo-Cell International with ‎their baby’s cord blood and cord tissue stem cells. In addition to its private bank, Cryo-Cell ‎International has a public banking program in partnership with Duke University. Cryo-Cell’s ‎public bank has provided cord blood for more than 600 transplantations and operates cord ‎blood donation sites across the U.S in prominent hospitals such as Cedars–Sinai Hospital in ‎Los Angeles and Baptist Hospital in Miami. Cryo-Cell’s facility is FDA registered, cGMP-/cGTP-‎compliant and licensed in all states requiring licensure. Besides being AABB accredited as a ‎cord blood facility, Cryo-Cell was also the first U.S. (for private use only) cord blood bank to ‎receive FACT accreditation for adhering to the most stringent cord blood quality standards ‎set by any internationally recognized, independent accrediting organization. Cryo-Cell has ‎the exclusive rights ‎to PrepaCyte-CB, the industry’s most advanced cord blood processing ‎technology.‎

Cryo-Cell’s mission is to provide the premier cord blood and cord tissue cryopreservation services, to develop, manufacture and administer cellular therapies to significantly improve the lives of patients worldwide and to offer the highest quality and most cost effective biostorage solutions available. In February 2021, Cryo-Cell entered into a license agreement with Duke University ‎that the Company believes has allowed Cryo-Cell to begin its transformation into an autonomous, ‎‎vertically ‎integrated cellular therapy ‎company. ‎In March 2022, Cryo-Cell launched ExtraVault to offer its expertise in biostorage and distribution to biopharmaceutical companies and healthcare institutions. For more information, please visit (www.extravault.com).

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, you can identify forward-looking statements by terminology such as “will,” “may,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential” or “continue” or the negative of these terms or other comparable terminology. Generally, the words “anticipate,” “believe,” “continue,” “expect,” “intend,” “estimate,” “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contain forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. These forward-looking statements involve risks and uncertainties and reflect only our current views, expectations and assumptions with respect to future events and our future performance. If risks or uncertainties materialize or assumptions prove incorrect, actual results or events could differ materially from those expressed or implied by such forward-looking statements. Risks that could cause actual results to differ from those expressed or implied by the forward-looking statements we make include, among others, the success of the Company’s global expansion initiatives and product diversification, including its addition of the ExtraVault services, the Company’s actual future ownership stake in future therapies emerging from its collaborative research partnerships, the success related to its IP portfolio, the Company’s future competitive position in stem cell innovation, future success of its core business and the competitive impact of public cord blood banking on the Company’s business, the success of the Company’s initiative to expand its core business units to include biopharmaceutical manufacturing and operating clinics, the complexities, uncertainties, required consents and timing related to the potential spinoff of Celle Corp., the uncertainty of profitability from its biopharmaceutical manufacturing and operating clinics, the Company’s ability to minimize future costs to the Company related to R&D initiatives and collaborations and the success of such initiatives and collaborations and the success and enforceability of the Company’s umbilical cord blood and cord tissue license agreements, together with the associated intellectual property and their ability to provide the Company with royalty fees, along with the Risk Factors set forth in the Company’s Form 10-Q filed on October 15, 2024.

This list of risks and uncertainties, however, is only a summary of some of the most important factors and is not intended to be exhaustive. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. These forward-looking statements are made only as of the date hereof. Except as otherwise required by applicable law, we do not undertake and expressly disclaim any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments. All subsequent written and oral forward-looking statements attributable to us, or to persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241015412376/en/

Irene Smith

813-749-2102

Ismith@cryo-cell.com

Source: Cryo-Cell International, Inc.

FAQ

What were Cryo-Cell's (CCEL) revenue and net income for Q3 2024?

Cryo-Cell (CCEL) reported revenue of $8.07 million and net income of $1.05 million for the fiscal third quarter of 2024.

How did Cryo-Cell's (CCEL) Q3 2024 results compare to Q3 2023?

Cryo-Cell's (CCEL) Q3 2024 revenue increased from $7.87 million to $8.07 million, and net income rose from $681,000 to $1.05 million compared to Q3 2023.

What is the status of Cryo-Cell's (CCEL) proposed spinoff of Celle Corp.?

Cryo-Cell's (CCEL) proposed spinoff of Celle Corp. is currently on hold due to a Demand for Arbitration filed with Duke University.

Is Cryo-Cell (CCEL) considering paying dividends?

Yes, Cryo-Cell's (CCEL) Board of Directors is considering instituting the payment of a regular quarterly dividend to shareholders.