2022 Q4 Form 10-Q Financial Statement

#000078419922000189 Filed on November 04, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3
Revenue $79.40M $76.84M
YoY Change 0.01% 6.41%
Cost Of Revenue $28.51M $28.09M
YoY Change 1.75% 15.05%
Gross Profit $50.89M $48.74M
YoY Change -0.95% 2.0%
Gross Profit Margin 64.09% 63.44%
Selling, General & Admin $38.60M $41.05M
YoY Change 20.09% 5.12%
% of Gross Profit 75.84% 84.22%
Research & Development $8.304M $11.80M
YoY Change -12.22% 18.32%
% of Gross Profit 16.32% 24.21%
Depreciation & Amortization $5.426M $5.519M
YoY Change -9.1% -8.15%
% of Gross Profit 10.66% 11.32%
Operating Expenses $50.66M $52.85M
YoY Change 10.58% 7.8%
Operating Profit $230.0K -$4.106M
YoY Change -95.86% -127.96%
Interest Expense -$5.309M $4.805M
YoY Change 37.08% -217.71%
% of Operating Profit -2308.26%
Other Income/Expense, Net $4.456M -$3.661M
YoY Change -254.99% 37.58%
Pretax Income $3.277M -$12.53M
YoY Change -120.37% -257.75%
Income Tax $1.108M $1.181M
% Of Pretax Income 33.81%
Net Earnings $2.158M -$13.71M
YoY Change -110.74% -229.59%
Net Earnings / Revenue 2.72% -17.85%
Basic Earnings Per Share -$0.34
Diluted Earnings Per Share $0.05 -$0.34
COMMON SHARES
Basic Shares Outstanding 40.33M shares 40.32M shares
Diluted Shares Outstanding 40.12M shares

Balance Sheet

Concept 2022 Q4 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $39.35M $37.57M
YoY Change -28.47% -41.83%
Cash & Equivalents $39.35M $37.57M
Short-Term Investments
Other Short-Term Assets $63.92M $62.33M
YoY Change 10.95% 5.19%
Inventory $74.48M $73.04M
Prepaid Expenses
Receivables $61.82M $57.16M
Other Receivables $7.764M $7.880M
Total Short-Term Assets $247.3M $238.0M
YoY Change -0.15% -7.52%
LONG-TERM ASSETS
Property, Plant & Equipment $38.67M $36.29M
YoY Change 3.07% -1.86%
Goodwill $243.6M $234.8M
YoY Change -2.55% -7.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $7.339M $7.088M
YoY Change -11.23% -46.39%
Total Long-Term Assets $515.5M $504.7M
YoY Change -5.48% -10.08%
TOTAL ASSETS
Total Short-Term Assets $247.3M $238.0M
Total Long-Term Assets $515.5M $504.7M
Total Assets $762.8M $742.7M
YoY Change -3.81% -9.27%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.00M $10.72M
YoY Change 15.48% 12.52%
Accrued Expenses $12.37M $10.09M
YoY Change 60.97% 10.97%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.608M $1.562M
YoY Change -1.35% -4.76%
Total Short-Term Liabilities $49.68M $45.99M
YoY Change 10.5% -24.76%
LONG-TERM LIABILITIES
Long-Term Debt $306.5M $306.7M
YoY Change -0.32% -0.35%
Other Long-Term Liabilities $7.027M $6.652M
YoY Change 8.37% -45.67%
Total Long-Term Liabilities $313.5M $313.3M
YoY Change -0.14% -2.09%
TOTAL LIABILITIES
Total Short-Term Liabilities $49.68M $45.99M
Total Long-Term Liabilities $313.5M $313.3M
Total Liabilities $478.5M $487.6M
YoY Change -2.81% -3.84%
SHAREHOLDERS EQUITY
Retained Earnings -$17.22M -$19.39M
YoY Change -971.75% -187.82%
Common Stock $337.8M $334.5M
YoY Change 4.49% 8.01%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $284.3M $255.1M
YoY Change
Total Liabilities & Shareholders Equity $762.8M $742.7M
YoY Change -3.81% -9.27%

Cashflow Statement

Concept 2022 Q4 2022 Q3
OPERATING ACTIVITIES
Net Income $2.158M -$13.71M
YoY Change -110.74% -229.59%
Depreciation, Depletion And Amortization $5.426M $5.519M
YoY Change -9.1% -8.15%
Cash From Operating Activities -$217.0K $3.976M
YoY Change -130.31% -236.68%
INVESTING ACTIVITIES
Capital Expenditures $2.668M -$3.992M
YoY Change -203.93% 21.89%
Acquisitions
YoY Change
Other Investing Activities $0.00 $939.0K
YoY Change -100.0% -95.0%
Cash From Investing Activities -$2.668M -$3.053M
YoY Change -5.12% -119.68%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -859.0K 252.0K
YoY Change -90.24% -20.0%
NET CHANGE
Cash From Operating Activities -217.0K 3.976M
Cash From Investing Activities -2.668M -3.053M
Cash From Financing Activities -859.0K 252.0K
Net Change In Cash -3.744M 1.175M
YoY Change -65.64% -90.91%
FREE CASH FLOW
Cash From Operating Activities -$217.0K $3.976M
Capital Expenditures $2.668M -$3.992M
Free Cash Flow -$2.885M $7.968M
YoY Change -187.88% 2077.05%

Facts In Submission

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Basis of Presentation and Summary of Significant Accounting Policies<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Overview</span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The accompanying Condensed Consolidated Financial Statements include the accounts of Artivion, Inc. and its subsidiaries (“Artivion,” the “Company,” “we,” or “us”). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2021 has been derived from audited financial statements. The accompanying unaudited Condensed Consolidated Financial Statements as of, and for the three and nine months ended, September 30, 2022 and 2021 have been prepared in accordance with (i) accounting principles generally accepted in the US for interim financial information and (ii) the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the US Securities and Exchange Commission (the “SEC”). Accordingly, such statements do not include all the information and disclosures that are required by accounting principles generally accepted in the US for a complete presentation of financial statements. In the opinion of management, all adjustments (including those of a normal, recurring nature) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes included in Artivion’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 22, 2022. </span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Significant Accounting Policies</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">A summary of our significant accounting policies is included in Note 1 of the “Notes to Consolidated Financial Statements” contained in our Form 10-K for the year ended December 31, 2021. Management believes that the consistent application of these policies enables us to provide users of the financial statements with useful and reliable information about our operating results and financial condition. The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the US, which require us to make estimates and assumptions. We did not experience any significant changes during the three and nine months ended September 30, 2022 in any of our Significant Accounting Policies from those contained in our Form 10-K for the year ended December 31, 2021.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">New Accounting Standards</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Recently Adopted </span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In August 2020 the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“ASU”) Update No. 2020-06, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> (“ASU 2020-06”). The update simplifies the accounting for convertible instruments by eliminating two accounting models (i.e., the cash conversion model and beneficial conversion feature model) and reducing the number of embedded conversion features that could be recognized separately from the host contract. ASU 2020-06 also enhances transparency and improves disclosures for convertible instruments and earnings per share guidance. On January 1, 2021 we adopted ASU 2020-06 using the modified retrospective approach. See Note 9 for further discussion of convertible debt. </span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Not Yet Effective </span></div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In March 2020 the FASB issued ASU 2020-04, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Reference Rate Reform Topic 848</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> (“ASC 848”). The amendments in this ASU were put forth in response to the market transition from the LIBOR and other interbank offered rates to alternative reference rates. Accounting principles generally accepted in the United States of America require entities to evaluate whether a contract modification, such as the replacement or change of a reference rate, results in the establishment of a new contract or continuation of an existing contract. ASC 848 allows an entity to elect not to apply certain modification accounting requirements to contracts affected by reference rate reform. The standard provides this temporary election through December 31, 2022 and cannot be applied to contract modifications that occur after December 31, 2022. </span>We are in the process of evaluating the effect that the adoption of this standard will have on our financial position and results of operations.
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FinanceLeaseLiability
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P12Y6M
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FinanceLeaseWeightedAverageDiscountRatePercent
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CY2022Q3 us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
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FinanceLeaseRightOfUseAssetAmortization
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FinanceLeaseRightOfUseAssetAmortization
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FinanceLeaseRightOfUseAssetAmortization
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FinanceLeaseInterestExpense
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FinanceLeaseInterestExpense
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FinanceLeaseInterestExpense
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FinanceLeaseCost
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FinanceLeaseLiabilityToBePaidAfterYearFour
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aort Research And Development Expense Termination And Wind Down Costs
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3233000 usd
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2990000 usd
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9654000 usd
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SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
7895000 usd
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424000 usd
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63000 usd
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34000 usd
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10519000 usd
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5232000 usd
CY2022Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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40115000 shares
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2022Q3 us-gaap Interest On Convertible Debt Net Of Tax
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CY2022Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
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5232000 usd
CY2022Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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40115000 shares
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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38924000 shares
CY2022Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2021Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2022Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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CY2021Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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CY2022Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2022Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2022Q3 us-gaap Cost Of Goods And Services Sold
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CY2022Q3 us-gaap Gross Profit
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48744000 usd
CY2021Q3 us-gaap Gross Profit
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us-gaap Gross Profit
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us-gaap Gross Profit
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CY2022Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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219442000 usd

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