ThermoGenesis Holdings Announces Financial Results for the Third Quarter Ended September 30, 2020 and Provides Corporate Update
ThermoGenesis Holdings, Inc. (Nasdaq: THMO) reported net revenues of $2.4 million for Q3 2020, a 42% drop from $4.1 million in Q3 2019. This decline was attributed to reduced AXP® disposable and CAR-TXpress™ sales, impacted by the COVID-19 pandemic. Gross profit decreased to $1.5 million, representing 64% of net revenues. The company posted a net loss of $2.5 million, or $(0.37) per share. Adjusted EBITDA showed a loss of $672,000, a significant decline from a gain of $125,000 in the prior year. However, cash reserves improved to $4.4 million.
- Cash and cash equivalents increased to $4.4 million from $3.2 million at year-end 2019.
- Working capital improved to $7.1 million, enhancing liquidity.
- Net revenues decreased by 42% year-over-year.
- Gross profit declined by $0.4 million due to lower sales.
- Net loss widened to $2.5 million compared to $2.3 million in the previous year.
- Adjusted EBITDA fell to a loss of $672,000 from a gain of $125,000 in Q3 2019.
RANCHO CORDOVA, Calif., Nov. 12, 2020 /PRNewswire/ -- ThermoGenesis Holdings, Inc. (Nasdaq: THMO), a market leader in automated cell processing tools and services in the cell and gene therapy field, today announced financial and operating results for the third quarter ended September 30, 2020 and provided a corporate update.
Financial Results for the Quarter Ended September 30, 2020
Net Revenues. Consolidated net revenues for the three months ended September 30, 2020 were
Gross Profit. The Company's gross profit was
Sales and Marketing Expenses. Consolidated sales and marketing expenses were
Research and Development Expenses. Consolidated research and development expenses were
General and Administrative Expenses. Consolidated general and administrative expenses for the three months ended September 30, 2020 were
Interest Expense. Interest expense for the three months ended September 30, 2020 was
Net Loss. For the quarter ended September 30, 2020, the Company reported a comprehensive loss attributable to common stockholders of
Adjusted EBITDA. In addition to the results reported under U.S. GAAP, the Company also uses a non-GAAP measure, adjusted EBITDA, to evaluate operating performance and to facilitate the comparison of its historical results and trends. The Company uses the metric to determine operational cash flow. Adjusted EBITDA for the three months ended September 30, 2020 was a loss of
Liquidity and Capital Resources. At September 30, 2020, the Company had cash and cash equivalents totaling
Conference Call and Webcast Information
ThermoGenesis will host a conference call today at 1:30 p.m. PT/4:30 p.m. ET. To participate in the conference call, please dial 1-844-889-4331 (domestic), 1-412-380-7406 (international) or 1-866-605-3852 (Canada). To access a live webcast of the call, please visit: https://thermogenesis.com/investors/news-and-events/events-webcasts.
A webcast replay will also be available on ThermoGenesis' website for three months, please visit: https://thermogenesis.com/investors/news-and-events/events-webcasts.
About ThermoGenesis Holdings, Inc.
ThermoGenesis Holdings, Inc. develops, commercializes, and markets a range of automated technologies for CAR-T and other cell-based therapies. The Company currently markets a full suite of solutions for automated clinical biobanking, point-of-care applications, and automation for immuno-oncology, including its semi-automated, functionally-closed CAR-TXpress™ platform, which streamlines the manufacturing process for the emerging CAR-T immunotherapy market. For more information about ThermoGenesis, please visit: www.thermogenesis.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained herein. When used in this press release, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. Actual results, performance or achievements could differ materially from the results expressed in or implied by these forward-looking statements. Readers should be aware of important factors that, in some cases, have affected, and in the future could affect, actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. These factors include without limitation, the ability to obtain capital and other financing in the amounts and at the times needed to launch new products, market acceptance of new products, the nature and timing of regulatory approvals for both new products and existing products for which the Company proposes new claims, realization of forecasted revenues, expenses and income, initiatives by competitors, price pressures, failure to meet FDA regulated requirements governing the Company's products and operations (including the potential for product recalls associated with such regulations), risks associated with initiating manufacturing for new products, failure to meet Foreign Corrupt Practice Act regulations, legal proceedings, uncertainty associated with the COVID-19 pandemic, and other risk factors listed from time to time in our reports with the Securities and Exchange Commission ("SEC"), including, in particular, those set forth in ThermoGenesis Holdings' Form 10-K for the year ended December 31, 2019.
Company Contact:
Wendy Samford
916-858-5191
ir@thermogenesis.com
Investor Contact:
Paula Schwartz, Rx Communications
917-322-2216
pschwartz@rxir.com
Financials
ThermoGenesis Holdings, Inc. | ||||||
September 30, 2020 | December 31, 2019 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | ||||||
Restricted cash | -- | 1,000,000 | ||||
Accounts receivable, net | 1,698,000 | 1,278,000 | ||||
Inventories, net | 5,876,000 | 3,824,000 | ||||
Prepaid expenses and other current assets | 766,000 | 602,000 | ||||
Total current assets | 12,776,000 | 9,861,000 | ||||
Equipment and leasehold improvements, net | 1,537,000 | 2,028,000 | ||||
Right-of-use operating lease assets, net | 765,000 | 859,000 | ||||
Goodwill | 781,000 | 781,000 | ||||
Intangible assets, net | 1,382,000 | 1,467,000 | ||||
Other assets | 48,000 | 218,000 | ||||
Total assets | ||||||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | ||||||
Other current liabilities | 4,059,000 | 5,238,000 | ||||
Total current liabilities | 5,720,000 | 6,685,000 | ||||
Long-term liabilities | 8,267,000 | 7,613,000 | ||||
ThermoGenesis Holdings, Inc. stockholders' equity | 3,132,000 | 386,000 | ||||
Noncontrolling interests | 170,000 | 530,000 | ||||
Total liabilities and equity | ||||||
ThermoGenesis Holdings, Inc. | |||||||
Three Months Ended | Nine Months Ended September 30, | ||||||
2020 | 2019 | 2020 | 2019 | ||||
Net revenues | |||||||
Cost of revenues | 844,000 | 2,163,000 | 7,426,000 | 6,220,000 | |||
Gross profit | 1,511,000 | 1,895,000 | 371,000 | 5,105,000 | |||
Expenses: | |||||||
Sales and marketing | 539,000 | 502,000 | 1,424,000 | 1,227,000 | |||
Research and development | 750,000 | 584,000 | 1,937,000 | 1,758,000 | |||
General and administrative | 1,305,000 | 1,139,000 | 4,489,000 | 3,617,000 | |||
Total operating expenses | 2,594,000 | 2,225,000 | 7,850,000 | 6,602,000 | |||
Loss from operations | (1,083,000) | (330,000) | (7,479,000) | (1,497,000) | |||
Interest expense | (1,531,000) | (1,188,000) | (6,377,000) | (3,531,000) | |||
Loss on equity method investments | -- | -- | (13,000) | -- | |||
Loss on extinguishment of debt | -- | (840,000) | -- | (840,000) | |||
Other income (expenses) | 5,000 | (15,000) | 7,000 | (27,000) | |||
Total other expenses | (1,526,000) | (2,043,000) | (6,383,000) | (4,398,000) | |||
Net loss | (2,609,000) | (2,373,000) | (13,862,000) | (5,895,000) | |||
Loss attributable to noncontrolling interests | (146,000) | (91,000) | (360,000) | (445,000) | |||
Net loss attributable to common stockholders | |||||||
ThermoGenesis Holdings, Inc. | |||
Nine Months Ended September 30, | |||
2020 | 2019 | ||
Cash flows from operating activities: | |||
Net cash used in operating activities | |||
Cash flows from investing activities: | |||
Capital expenditures | (23,000) | (178,000) | |
Net cash used in investing activities | (23,000) | (178,000) | |
Cash flows from financing activities: | |||
Proceeds from convertible promissory note-related party | 4,287,000 | 1,513,000 | |
Payments on financing lease obligations | (32,000) | (15,000) | |
Proceeds from issuance of common stock, net of expenses | 5,580,000 | 756,000 | |
Proceeds from exercise of options, warrants and pre-funded warrants | 1,683,000 | 42,000 | |
Proceeds from long-term debt | -- | 1,800,000 | |
Proceeds from note payable | 646,000 | -- | |
Net cash provided by financing activities | 12,164,000 | 4,096,000 | |
Effects of exchange rate changes on cash and cash equivalents | (3,000) | -- | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 279,000 | 400,000 | |
Cash, cash equivalents and restricted cash at beginning of period | 4,157,000 | 3,400,000 | |
Cash, cash equivalents and restricted cash at end of period | |||
ThermoGenesis Holdings, Inc. | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
2020 | 2019 | 2020 | 2019 | ||||||
Net loss | |||||||||
Deduct: | |||||||||
Interest expense | (1,531,000) | (1,188,000) | (6,377,000) | (3,531,000) | |||||
Fair value change of derivative instruments and other | 5,000 | (15,000) | 7,000 | (27,000) | |||||
Loss on extinguishment of debt | -- | (840,000) | -- | (840,000) | |||||
Loss on equity method investments | -- | -- | (13,000) | -- | |||||
Loss from operations | |||||||||
Add: | |||||||||
Depreciation and amortization | 177,000 | 202,000 | 569,000 | 604,000 | |||||
Stock-based compensation expense | 234,000 | 253,000 | 615,000 | 459,000 | |||||
Adjusted EBITDA | |||||||||
The Company defines adjusted EBITDA as income (or loss) from operations less, depreciation, amortization, stock compensation and impairment of intangible assets.
View original content:http://www.prnewswire.com/news-releases/thermogenesis-holdings-announces-financial-results-for-the-third-quarter-ended-september-30-2020-and-provides-corporate-update-301172327.html
SOURCE ThermoGenesis Holdings, Inc.
FAQ
What were ThermoGenesis' Q3 2020 financial results?
What is the adjusted EBITDA for ThermoGenesis in Q3 2020?
What caused the revenue drop for ThermoGenesis in Q3 2020?
What was the net loss reported by ThermoGenesis for Q3 2020?
How did ThermoGenesis' cash position change in Q3 2020?
