Cord Blood Banking Leader Cryo-Cell Reports Fiscal Second Quarter 2020 Financial Results

OLDSMAR, Fla., July 10, 2020 (GLOBE NEWSWIRE) -- Cryo-Cell International, Inc. (OTC:QB Markets Group 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 second quarter ended May 31, 2020. 

Financial Results

Revenue

Consolidated revenues for the second quarter of fiscal 2020 were $7.87 million compared to $8.13 million for the second quarter of fiscal 2019, a 3% decrease.  The revenues for the second quarter of fiscal 2020 consisted of $7.40 million in processing and storage fee revenue, $57,000 in product revenue, $214,000 in public banking revenue and $202,000 in license and royalty income compared to $7.68 million in processing and storage fees, $12,000 product revenue, $234,000 in public banking revenue and $202,000 in license and royalty income for the second quarter of fiscal 2019.  

Net Income

The Company reported net income for the three months ended May 31, 2020 of $953,000, or $0.13 per basic share and $0.12 per diluted share, compared to net income of $54,000, or $0.01 per basic and diluted share for the three months ended May 31, 2019.  During the three months ended May 31, 2020, revenue decreased 3%, which was offset by a 6% decrease in cost of sales and a 2% decrease in selling, general and administrative expenses.

For the three months ended May 31, 2020, the Company recorded an increase of $27,000 versus a $1.04 million decrease for the three months ended May 31, 2019, to the fair value of the contingent consideration liability from the potential earn out to which Cord:Use is entitled from the Company’s sale of the purchased public cord blood inventory.  Also, for the three months ended May 31, 2019, due to changes in sales trends and estimated recoverability of costs capitalized into inventory, there was an impairment to the value of public cord blood bank inventory purchased from Cord:Use in the amount of $2.33 million.  

Option Agreement

On June 9, 2020, Cryo-Cell entered into a patent option agreement with Duke University.  The six-month exclusive option agreement gives Cryo-Cell an option to obtain a license to manufacture and sell products/services based on Duke University’s patents and regulatory filings related to umbilical cord blood and cord tissue.  Cryo-Cell anticipates opening a clinic(s) to provide patients with greater access to cord blood treatments established by Duke University under the FDA granted Expanded Access Program.  Please see the Company’s Form 8-K filed with the Securities and Exchange Commission on June 11, 2020 for more details.