2015 Q3 Form 10-Q Financial Statement

#000162828015006531 Filed on August 12, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2015 Q2 2014 Q2
Revenue $11.31M $13.59M $4.432M
YoY Change 17.09% 206.63% 147633.33%
Cost Of Revenue $6.772M $6.901M $5.009M
YoY Change 22.42% 37.77% 500800.0%
Gross Profit $4.537M $6.689M -$577.0K
YoY Change 9.96% -1259.27% -28950.0%
Gross Profit Margin 40.12% 49.22% -13.02%
Selling, General & Admin $5.674M $5.585M $3.581M
YoY Change 31.56% 55.96% 129.55%
% of Gross Profit 125.06% 83.5%
Research & Development $3.740M $3.369M $4.364M
YoY Change -52.27% -22.8% 18.72%
% of Gross Profit 82.43% 50.37%
Depreciation & Amortization $400.0K $200.0K $100.0K
YoY Change 100.0% 100.0% -23.08%
% of Gross Profit 8.82% 2.99%
Operating Expenses $9.414M $8.954M $7.945M
YoY Change -22.51% 12.7% 51.74%
Operating Profit -$4.877M -$2.265M -$8.522M
YoY Change -39.2% -73.42% 62.82%
Interest Expense $2.000K $2.000K $2.000K
YoY Change 100.0% 0.0% -33.33%
% of Operating Profit
Other Income/Expense, Net $461.0K $113.0K $3.884M
YoY Change -58.28% -97.09% 1025.8%
Pretax Income -$4.420M -$2.150M -$4.640M
YoY Change -36.13% -53.66% -5.11%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$4.416M -$2.152M -$4.638M
YoY Change -36.16% -53.6% -5.13%
Net Earnings / Revenue -39.05% -15.84% -104.65%
Basic Earnings Per Share
Diluted Earnings Per Share -$185.8K -$90.37K -$711.7K
COMMON SHARES
Basic Shares Outstanding 23.79M shares 23.79M shares 6.497M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q3 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $18.70M $20.20M $7.300M
YoY Change -50.27% 176.71% 62.22%
Cash & Equivalents $18.70M $20.20M $7.300M
Short-Term Investments
Other Short-Term Assets $514.0K $2.270M $610.0K
YoY Change -65.73% 272.13% 158.47%
Inventory $1.639M $2.078M $1.922M
Prepaid Expenses
Receivables $7.639M $8.980M $4.317M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $28.52M $33.55M $14.11M
YoY Change -36.21% 137.71% 198.35%
LONG-TERM ASSETS
Property, Plant & Equipment $4.315M $4.616M $2.387M
YoY Change 79.79% 93.38% 150.47%
Goodwill
YoY Change
Intangibles $2.987M $3.057M $3.337M
YoY Change -8.39%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $7.302M $7.673M $5.724M
YoY Change 28.11% 34.05% 500.63%
TOTAL ASSETS
Total Short-Term Assets $28.52M $33.55M $14.11M
Total Long-Term Assets $7.302M $7.673M $5.724M
Total Assets $35.82M $41.22M $19.84M
YoY Change -28.93% 107.8% 249.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.995M $6.120M $2.909M
YoY Change 99.8% 110.38% -11.85%
Accrued Expenses $85.00K $140.0K $2.505M
YoY Change -97.26% -94.41% 401.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $2.500M
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $9.261M $10.82M $17.05M
YoY Change -25.91% -36.56% 343.81%
LONG-TERM LIABILITIES
Long-Term Debt $81.00K $91.00K $0.00
YoY Change -19.0%
Other Long-Term Liabilities $66.00K $66.00K
YoY Change
Total Long-Term Liabilities $147.0K $157.0K $0.00
YoY Change 47.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.261M $10.82M $17.05M
Total Long-Term Liabilities $147.0K $157.0K $0.00
Total Liabilities $9.408M $10.98M $17.10M
YoY Change -25.33% -35.82% 345.08%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $307.2M $306.6M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $26.41M $30.24M $2.785M
YoY Change
Total Liabilities & Shareholders Equity $35.82M $41.22M $19.84M
YoY Change -28.93% 107.8% 249.04%

Cashflow Statement

Concept 2015 Q3 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income -$4.416M -$2.152M -$4.638M
YoY Change -36.16% -53.6% -5.13%
Depreciation, Depletion And Amortization $400.0K $200.0K $100.0K
YoY Change 100.0% 100.0% -23.08%
Cash From Operating Activities -$720.0K -$4.480M -$6.070M
YoY Change -91.46% -26.19% 29.15%
INVESTING ACTIVITIES
Capital Expenditures -$770.0K -$1.210M -$10.00K
YoY Change 1000.0% 12000.0% -50.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $1.050M
YoY Change -100.0% -100.0%
Cash From Investing Activities -$780.0K -$1.200M $1.040M
YoY Change -69.65% -215.38% -5300.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -10.00K 0.000 3.460M
YoY Change -100.02% -100.0% -34700.0%
NET CHANGE
Cash From Operating Activities -720.0K -4.480M -6.070M
Cash From Investing Activities -780.0K -1.200M 1.040M
Cash From Financing Activities -10.00K 0.000 3.460M
Net Change In Cash -1.510M -5.680M -1.570M
YoY Change -104.98% 261.78% -66.81%
FREE CASH FLOW
Cash From Operating Activities -$720.0K -$4.480M -$6.070M
Capital Expenditures -$770.0K -$1.210M -$10.00K
Free Cash Flow $50.00K -$3.270M -$6.060M
YoY Change -100.6% -46.04% 29.49%

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CY2015Q2 us-gaap Operating Leases Future Minimum Payments Due In Four Years
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CY2015Q2 us-gaap Operating Leases Future Minimum Payments Due In Three Years
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CY2015Q2 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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CY2015Q2 us-gaap Operating Leases Future Minimum Payments Due Thereafter
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CY2015Q2 us-gaap Operating Leases Rent Expense Net
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2270000 USD
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5000 USD
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5000 USD
CY2015Q2 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
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0 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
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CY2015Q2 us-gaap Other Liabilities Noncurrent
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us-gaap Payments To Acquire Property Plant And Equipment
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us-gaap Basis Of Accounting
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Basis of Presentation</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The condensed consolidated financial statements included herein have been prepared in accordance with the rules&#160;and regulations of the U.S. Securities and Exchange Commission (SEC).&#160; The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) requires management to make estimates, judgments, and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules&#160;and regulations. The financial statements reflect, in the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary to state fairly the financial position and results of operations as of and for the periods indicated.&#160; The results of operations for the </font><font style="font-family:inherit;font-size:10pt;">three and six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">, are not necessarily indicative of the results to be expected for the full year or for any other period.&#160; The </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;"> condensed consolidated balance sheet data was derived from the Company&#8217;s audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form&#160;10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">, as filed with the SEC on March&#160;25, 2015 (Annual Report).</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The condensed consolidated financial statements include the accounts of Vericel and its wholly-owned subsidiaries, Marrow Donation, LLC, located in San Diego, California, and Vericel Denmark ApS, in Kastrup, Demark (collectively, the Company).&#160; All inter-company transactions and accounts have been eliminated in consolidation.&#160; Aastrom Biosciences GmbH ceased operations in 2014.</font></div></div>
us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Vericel Corporation a Michigan corporation, which was formerly known as Aastrom Biosciences,&#160;Inc. (the Company, Vericel, we, us or our), was incorporated in March&#160;1989 and began employee-based operations in 1991. On May&#160;30, 2014, Vericel completed the acquisition of certain assets and assumed certain liabilities of Sanofi, a French soci&#233;t&#233; anonyme (Sanofi), including all of the outstanding equity interests of Genzyme Biosurgery ApS (Genzyme Denmark or the Danish subsidiary) (now known as Vericel Denmark ApS), a wholly-owned subsidiary of Sanofi, and over </font><font style="font-family:inherit;font-size:10pt;">250</font><font style="font-family:inherit;font-size:10pt;"> patents and patent applications of Sanofi and certain of its subsidiaries for purposes of acquiring the portion of the cell therapy and regenerative medicine business (the CTRM Business), which researches, develops, manufactures, markets and sells the Carticel</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, MACI&#8482;,&#160;and Epicel</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">&#160;products. The Company is a fully integrated, commercial-stage biopharmaceutical company dedicated to the identification, development and commercialization of innovative therapies that enable the body to repair and regenerate damaged tissues and organs to restore normal structure and function. Vericel has marketed products as well as developmental stage product candidates and the Company&#8217;s goal is to become the leader in cell therapy and regenerative medicine by developing, manufacturing and marketing best-in-class therapies for patients with significant unmet medical needs.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company operates its business primarily in the U.S. in </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> reportable segment &#8212; the research, product development, manufacture and distribution of patient-specific, expanded cellular therapies for use in the treatment of specific diseases.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Successful future operations are subject to several technical hurdles and risk factors, including satisfactory product development, timely initiation and completion of clinical trials, regulatory approval and market acceptance of the Company&#8217;s products, and the successful integration and profitability of the CTRM Business.</font></div></div>

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