Cryo-Cell Reports Financial Results for Fiscal Year Ended November 30, 2024

Rhea-AI Summary

Cryo-Cell International (CCEL) reported its fiscal year 2024 financial results, showing consolidated revenues of $32.0 million, up from $31.3 million in 2023. The company achieved a net income of $402,000 ($0.05 per share) in 2024, compared to a net loss of $9.5 million in 2023.

The revenue breakdown included $31.6 million in processing and storage fees, $68,000 in product revenue, and $367,000 in public banking revenue. The company faced a $2.4 million income tax expense, with $1.3 million attributed to Florida's revenue apportionment methodology change. Realized and unrealized gains on marketable securities were $1.1 million in 2024, up from $51,000 in 2023.

Positive

• Revenue increased 2.2% to $32.0M
• Turned $9.5M loss into $402,000 profit
• Processing and storage revenue up to $31.6M from $30.8M
• Marketable securities gains increased to $1.1M from $51,000

Negative

• Public banking revenue declined to $367,000 from $481,000
• $2.4M income tax expense vs previous $3.8M tax benefit
• Higher legal expenses expected in FY2025
• Continued investment costs in Duke License Agreement

Insights

Financial Analyst

Cryo-Cell's fiscal 2024 results show a modest financial recovery, with a return to profitability after significant impairment charges in the previous year. The company posted $32.0 million in revenue, representing a slight 2.2% year-over-year increase, while achieving net income of $402,000 ($0.05 per share) compared to a net loss of $9.5 million in FY2023.

The previous year's substantial loss was primarily due to one-time charges: a $13.1 million impairment of assets related to the Duke License Agreement and a $3.7 million public bank inventory impairment. Without these non-recurring items, the year-over-year comparison would show more modest improvement.

Several factors affected the bottom line, including $1.1 million in realized and unrealized gains on marketable securities and a $2.4 million income tax expense - $1.3 million of which stemmed from a Florida tax methodology change that reduced the value of deferred tax assets.

Management's forward guidance indicates a mixed outlook, projecting reduced expenditures related to the Duke License Agreement but anticipating higher legal expenses in fiscal 2025. This suggests a potential shift in cost structure rather than overall cost reduction.

With a market cap of approximately $64.5 million against annual revenue of $32 million and minimal profitability, the company's valuation appears to rely more on future growth potential from its transformation initiatives than current financial performance.

Biotech Industry Expert

Cryo-Cell's results reflect a company in strategic transition from traditional cord blood banking toward becoming a vertically integrated cellular therapy organization. The Duke University license agreement signed in February 2021 represents the cornerstone of this transformation, though it continues to require significant investment as indicated in management's commentary.

The company's business model currently rests on three pillars: its core cord blood and tissue storage services ($31.6 million revenue), a smaller public banking operation ($367,000 revenue), and emerging product revenue ($68,000). The ExtraVault initiative launched in 2022 represents an attempt to leverage existing biopreservation expertise to serve biopharmaceutical companies and healthcare institutions, potentially opening new B2B revenue streams beyond their traditional consumer market.

The previous impairment of $13.1 million related to the Duke License Agreement assets signals earlier challenges in commercialization timeline or value realization from this partnership. The anticipated higher legal expenses in FY2025 noted by management suggests ongoing complexity in executing their cellular therapy strategy.

For a company with Cryo-Cell's extensive history (founded in 1989, first private cord blood bank) and substantial client base (500,000+ parents), the relatively flat revenue growth indicates potential market saturation in their core business, emphasizing the strategic necessity of their expansion into cellular therapies and biopharmaceutical services to drive future growth.

OLDSMAR, Fla.--(BUSINESS WIRE)-- Cryo-Cell International, Inc. (NYSE American LLC: CCEL) (the “Company”), the world’s first private cord blood bank to separate and store stem cells in 1992, announced results for its fiscal year ended November 30, 2024.

Financial Results

Revenue

Consolidated revenues for fiscal 2024 were $32.0 million compared to $31.3 million for fiscal 2023. The revenues for fiscal 2024 consisted of $31.6 million in processing and storage fee revenue, $68,000 in product revenue and $367,000 in public banking revenue compared to $30.8 million in processing and storage fee revenue, $66,000 in product revenue and $481,000 in public banking revenue for fiscal 2023.

Net Income (Loss)

The Company reported net income of $402,000 in fiscal 2024 or $0.05 per basic and diluted share, compared to a net loss of $9.5 million in fiscal 2023 or $1.14 per basic and diluted share. For the twelve months ended November 30, 2024, income tax expense was $2.4 million compared to a tax benefit of $3.8 million for the twelve months ended November 30, 2023. $1.3 million of the income tax expense for the twelve months ended November 30, 2024 is attributable to the impact of the state of Florida revenue apportionment methodology change. The change decreased the value of the Company’s deferred tax asset resulting in income tax expense. For the twelve months ended November 30, 2024, realized and unrealized gains on marketable securities were $1.1 million compared to $51,000 for the twelve months ended November 30, 2023. The net loss for fiscal year ended November 30, 2023, was due to an impairment during the fourth quarter of the assets related to the Duke License Agreement in the amount of $13.1 million. Also included in the net loss for the twelve months ended November 30, 2023 was a public bank inventory impairment charge of $3.7 million during the fourth quarter.

David Portnoy, Cryo-Cell’s Chairman of the Board and Co-CEO remarked, “The Company’s 2024 fiscal results were impacted by continued investments related to the Duke License Agreement. We expect reduced expenditures related thereto this year; however, higher legal expenses are anticipated in fiscal year 2025 versus fiscal year 2024.”

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-K filed on February 28, 2025.

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/20250228154778/en/

Irene Smith

813-749-2102

Ismith@cryo-cell.com

Source: Cryo-Cell International, Inc.

FAQ

What was CCEL's revenue growth in fiscal year 2024?

CCEL's revenue grew to $32.0 million in FY2024, a 2.2% increase from $31.3 million in FY2023.

How much net income did CCEL report for fiscal 2024?

CCEL reported net income of $402,000 ($0.05 per share) in fiscal 2024, compared to a net loss of $9.5 million in 2023.

What impacted CCEL's tax expenses in fiscal 2024?

Florida's revenue apportionment methodology change resulted in a $1.3 million tax expense by decreasing the company's deferred tax asset value.

How much did CCEL earn from processing and storage fees in 2024?

CCEL earned $31.6 million from processing and storage fees in fiscal 2024, up from $30.8 million in 2023.