Cesca Therapeutics Reports Second Quarter Fiscal 2017 Financial Results and Provides Business Update
February 13 2017 - 4:05PM
Cesca Therapeutics Inc. (NASDAQ:KOOL), a market leader in automated
cellular processing and point-of-care autologous cell-based
therapies, today reported second quarter financial results for 2017
and provided an update to investors.
Second Quarter 2017 Financial
Results
Net revenues for the three months ended December
31, 2016 were $4.0 million compared to $3.3 million for the three
months ended December 31, 2015, an increase of $0.7 million or
22%. The increase is primarily a result of increased
shipments of AXP disposables to a single end-user customer.
Gross profit was $1.6 million or 39% of net
revenues for the three months ended December 31, 2016, compared to
$1.0 million or 31% for the corresponding fiscal 2016 period.
Our gross profit margin increased primarily due to higher average
sales prices on our mix of products sold. Additionally, there
was an increase to our inventory reserves during the quarter ended
December 31, 2015, which negatively impacted that quarter’s
margin.
Operating Expenses were $5.1 million for the
three months ended December 31, 2016, compared to $3.0 million for
the three months ended December 31, 2015, an increase of $2.1
million or 71%. The increase was primarily due to the
termination of our former chief executive officer in November and
legal fees associated with the SynGen litigation, partially offset
by lower personnel costs.
Net loss was $3.4 million for the three months
ended December 31, 2016, compared to $0.6 million for the
corresponding fiscal 2016 period or an increase of $2.8
million. The increase in net loss was primarily due to the
termination of our former chief executive officer and legal fees
associated with the SynGen litigation, partially offset by improved
gross profit margin as already described. Additionally, there
was a benefit from fair value changes of derivative instruments in
prior year quarter.
In addition to the results reported in
accordance with U.S. GAAP, Cesca also uses a non-GAAP measure,
adjusted EBITDA, to evaluate operating performance and to
facilitate comparisons with historical results and trends.
The adjusted EBITDA loss was $2.6 million for the three months
ended December 31, 2016 compared to $1.7 million for the three
months ended December 31, 2015. The adjusted EBITDA loss
increased primarily due to the severance and other related costs
associated with terminating our former chief executive officer and
legal fees associated with the SynGen litigation, partially offset
by the improved gross profit margin as already described.
“I am pleased with the increase in revenue for
this quarter,” Dr. Xiaochun “Chris” Xu, our interim CEO,
commented. “Our short-term goal is to build strong leadership
position in automated cell processing, providing cutting-edge
technologies for cord blood processing, point-of-care applications,
and immune-oncology uses. First, we want to increase revenues.
Secondly, we want to continue to build a strong pipeline based on
our own proprietary technology, namely the AutoXpress® platform.
Our ultimate goal is to ensure Cesca has a competitive advantage in
the growing regenerative medicine field.”
Company’s Conference Call and
WebcastManagement will host a conference call on Monday,
February 13, 2017 at 2:00 PM Pacific (5:00 PM Eastern).
The call can be accessed by dialing
1-800-860-2442 within the U.S. or 1-412-858-4600 outside
the U.S. and referencing, “Cesca”. The Company’s
management will be on the call to discuss the second quarter
results and other corporate events, followed by a Q&A
session. Participants are asked to call the assigned number
approximately five minutes before the conference call
begins.
To listen to the audio webcast of the call during or after the
event, please visit:
http://services.choruscall.com/links/cesca170213.html
ReplayA replay of the
conference call will be available two hours after the call for the
following five business days by dialing 1-877-344-7529
within the U.S. or 1-412-317-0088 outside the U.S. and
entering the following account number when prompted
‘10099897’.
About Cesca Therapeutics Inc.Cesca Therapeutics
Inc. (www.cescatherapeutics.com) is engaged in the research,
development, and commercialization of cellular therapies and
delivery systems for use in regenerative medicine. The Company is a
leader in the development and manufacture of automated blood and
bone marrow processing systems that enable the separation,
processing and preservation of cell and tissue therapeutics.
These include:
- The SurgWerks™ System (in development) - a
proprietary system comprised of the SurgWerks Processing Platform,
including devices and analytics, and indication-specific SurgWerks
Procedure Kits for use in regenerative stem cell
therapy at the point-of-care for vascular and orthopedic
diseases.
- The CellWerks™ System (in development) - a
proprietary cell processing system with associated analytics for
intra-laboratory preparation of adult stem cells from bone marrow
or blood.
- The AutoXpress® System (AXP®) - a proprietary
automated device and companion sterile disposable for concentrating
hematopoietic stem cells from cord blood.
- The MXP® System - a
proprietary automated device and companion sterile disposable for
the isolation and concentration of hematopoietic stem cells from
bone marrow.
- The BioArchive® System - a Biologics License
Application (BLA) approved automated cryogenic device used for
individualized cryopreservation and storage of cord blood
concentrates and other clinical grade samples for future use.
- Manual bag sets - for use in the processing
and cryogenic storage of cord blood.
Forward-Looking StatementThe
statements contained herein may include statements of future
expectations and other forward-looking statements that are based on
management’s current views and assumptions and involve known and
unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or
implied in such statements. A more complete description of risks
that could cause actual events to differ from the outcomes
predicted by Cesca Therapeutics' forward-looking statements is set
forth under the caption "Risk Factors" in Cesca Therapeutics annual
report on Form 10-K and other reports it files with the Securities
and Exchange Commission from time to time, and you should consider
each of those factors when evaluating the forward-looking
statements.
Financials
|
Cesca Therapeutics Inc. |
Condensed Consolidated Balance
Sheets |
(Unaudited) |
|
(in thousands) |
|
December 31, 2016 |
|
June 30, 2016 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
4,899 |
|
$ |
5,835 |
Accounts
receivable, net |
|
|
3,019 |
|
|
3,169 |
Inventories |
|
|
2,763 |
|
|
3,593 |
Prepaid
expenses and other current assets |
|
|
260 |
|
|
246 |
|
|
|
|
|
Total
current assets |
|
|
10,941 |
|
|
12,843 |
|
|
|
|
|
Equipment, net |
|
|
3,045 |
|
|
2,962 |
Goodwill |
|
|
13,195 |
|
|
13,195 |
Intangible assets,
net |
|
|
20,614 |
|
|
20,821 |
Other assets |
|
|
78 |
|
|
78 |
|
|
|
|
|
|
|
$ |
47,873 |
|
$ |
49,899 |
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
2,059 |
|
$ |
2,648 |
Other
current liabilities |
|
|
3,383 |
|
|
2,894 |
|
|
|
|
|
Total
current liabilities |
|
|
5,442 |
|
|
5,542 |
|
|
|
|
|
Long-term
liabilities |
|
|
8,769 |
|
|
12,084 |
|
|
|
|
|
Stockholders'
equity |
|
|
33,662 |
|
|
32,273 |
|
|
|
|
|
|
|
$ |
47,873 |
|
$ |
49,899 |
Cesca Therapeutics Inc. |
Condensed Consolidated Statements of
Operations |
(Unaudited) |
|
(in
thousands) |
Three Months Ended December 31, |
|
Six Months Ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
4,005 |
|
|
$ |
3,294 |
|
|
$ |
7,772 |
|
|
$ |
6,117 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
2,453 |
|
|
|
2,266 |
|
|
|
4,838 |
|
|
|
4,722 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
1,552 |
|
|
|
1,028 |
|
|
|
2,934 |
|
|
|
1,395 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
294 |
|
|
|
527 |
|
|
|
775 |
|
|
|
1,159 |
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
694 |
|
|
|
646 |
|
|
|
1,364 |
|
|
|
1,743 |
|
|
|
|
|
|
|
|
|
|
General
and administrative |
|
|
4,137 |
|
|
|
1,823 |
|
|
|
6,316 |
|
|
|
4,375 |
|
|
|
|
|
|
|
|
|
|
Total
operating expenses |
|
|
5,125 |
|
|
|
2,996 |
|
|
|
8,455 |
|
|
|
7,277 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(3,573 |
) |
|
|
(1,968 |
) |
|
|
(5,521 |
) |
|
|
(5,882 |
) |
|
|
|
|
|
|
|
|
|
Fair value change of
derivative instruments |
|
|
153 |
|
|
|
2,180 |
|
|
|
(174 |
) |
|
|
3,606 |
|
Amortization of debt
discount |
|
|
-- |
|
|
|
(39 |
) |
|
|
(9,851 |
) |
|
|
(52 |
) |
Interest expense |
|
|
(2 |
) |
|
|
(14 |
) |
|
|
(10,537 |
) |
|
|
(21 |
) |
Registration rights
liquidated damages |
|
|
-- |
|
|
|
(220 |
) |
|
|
-- |
|
|
|
(1,100 |
) |
Loss on cashless
exercise of warrants |
|
|
-- |
|
|
|
(564 |
) |
|
|
-- |
|
|
|
(564 |
) |
Other income and
(expenses) |
|
|
23 |
|
|
|
1 |
|
|
|
239 |
|
|
|
(8 |
) |
Net loss |
|
($ |
3,399 |
) |
|
($ |
624 |
) |
|
($ |
25,844 |
) |
|
($ |
4,021 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
($ |
3,399 |
) |
|
($ |
624 |
) |
|
($ |
25,844 |
) |
|
($ |
4,021 |
) |
Other comprehensive
income: |
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments |
|
|
(2 |
) |
|
|
1 |
|
|
|
-- |
|
|
|
(24 |
) |
Comprehensive loss |
|
($ |
3,401 |
) |
|
($ |
623 |
) |
|
($ |
25,844 |
) |
|
($ |
4,045 |
) |
|
|
|
|
|
|
|
|
|
Cesca Therapeutics Inc. |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited) |
|
(in thousands) |
|
Six Months EndedDecember 31, |
|
|
|
2016 |
|
|
|
2015 |
|
Cash flows from
operating activities: |
|
|
|
|
Net cash
used in operating activities |
|
($ |
2,570 |
) |
|
($ |
4,494 |
) |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Capital
expenditures |
|
|
(276 |
) |
|
|
(602 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Proceeds
from convertible debentures, net of financing costs |
|
|
-- |
|
|
|
4,720 |
|
Payments
on capital lease obligations |
|
|
(46 |
) |
|
|
(27 |
) |
Proceeds
from issuance of common stock, net |
|
|
2,091 |
|
|
|
-- |
|
Repurchase of common stock |
|
|
(134 |
) |
|
|
(5 |
) |
|
|
|
|
|
Net cash
provided by financing activities |
|
|
1,911 |
|
|
|
4,688 |
|
|
|
|
|
|
Effects of foreign
currency rate changes on cash and cash equivalents |
|
|
(1 |
) |
|
|
(7 |
) |
Net decrease in cash
and cash equivalents |
|
|
(936 |
) |
|
|
(415 |
) |
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
|
|
5,835 |
|
|
|
3,357 |
|
Cash and cash
equivalents at end of period |
|
$ |
4,899 |
|
|
$ |
2,942 |
|
|
|
|
|
|
Supplemental non-cash
financing and investing information: |
|
|
|
|
Derivative obligation related to issuance of warrants |
|
$ |
-- |
|
|
$ |
4,282 |
|
Common
stock issued for payment of convertible debentures and
interest |
|
$ |
23,905 |
|
|
|
-- |
|
|
|
|
|
|
|
Cesca Therapeutics Inc. |
|
Adjusted EBITDA |
|
(Unaudited) |
|
|
|
(in
thousands) |
|
Three Months Ended December 31, |
|
Six Months Ended December 31, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Loss from
operations |
|
($ |
3,573 |
) |
|
($ |
1,968 |
) |
|
($ |
5,521 |
) |
|
($ |
5,882 |
) |
|
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
212 |
|
|
|
294 |
|
|
|
473 |
|
|
|
659 |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
735 |
|
|
|
(39 |
) |
|
|
1,033 |
|
|
|
304 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
loss |
|
($ |
2,626 |
) |
|
($ |
1,713 |
) |
|
($ |
4,015 |
) |
|
($ |
4,919 |
) |
Company Contact: Cesca Therapeutics Inc.
ir@cescatherapeutics.com
Investor Contact: The Ruth Group
Lee Roth / Tram Bui
646-536-7012 / 7035
lroth@theruthgroup.com / tbui@theruthgroup.com
Cesca Therapeutics (NASDAQ:KOOL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cesca Therapeutics (NASDAQ:KOOL)
Historical Stock Chart
From Apr 2023 to Apr 2024