EX-99.1 2 aort-2025x8k033125ex991.htm EX-99.1 Document
Exhibit 99.1
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FOR IMMEDIATE RELEASE

Contacts:
ArtivionGilmartin Group LLC
Lance A. BerryBrian Johnston / Laine Morgan
Executive Vice President &Phone: 332-895-3222
Chief Financial Officerinvestors@artivion.com
Phone: 770-419-3355

Artivion Reports First Quarter 2025 Financial Results

First Quarter Highlights:

•Achieved revenue of $99.0 million in the first quarter of 2025 versus $97.4 million in the first quarter of 2024, an increase of 2% on a GAAP basis and 4% on a non-GAAP constant currency basis
•Net loss was $(0.5) million, or $(0.01) per fully diluted share and non-GAAP net income was $2.5 million, or $0.06 per fully diluted share in the first quarter of 2025
•Adjusted EBITDA increased 1% to $17.5 million in the first quarter of 2025 compared to $17.3 million in the first quarter of 2024
•30-day data from Endospan’s NEXUS TRIOMPHE IDE trial presented at the AATS Annual Meeting demonstrated a 63% reduction in the major adverse event (MAE) rate compared with reference performance goal
•Submitted the clinical module of the pre-market approval application (PMA) to the FDA for the AMDS Hybrid Prosthesis

ATLANTA, GA – (May 5, 2025) – Artivion, Inc. (NYSE: AORT), a leading cardiac and vascular surgery company focused on aortic disease, today announced financial results for the first quarter ended March 31, 2025.

“I am pleased with our first quarter results as we returned to normal operations following our previously disclosed cybersecurity incident while making substantial progress on our strategic growth initiatives. As anticipated, our performance was driven by year-over-year growth in stent grafts of 14%, On-X of 10%, and BioGlue of 7%, all compared to the first quarter of 2024. On a constant currency basis, year-over-year stent grafts, On-X, and BioGlue grew 19%, 11% and 9%, respectively. Our strong product revenue growth of 14% on a constant currency basis was tempered by a 23% decrease in preservation services revenue due to the short-term backlog in tissue processing operations caused by the cybersecurity incident. We are pleased with our team’s progress to date in returning to standard tissue processing times, as we outpaced our initial expectations enabling stronger than anticipated first quarter performance,” said Pat Mackin, Chairman, President, and Chief Executive Officer.

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Mr. Mackin added, “Given our strong first quarter performance, we are raising the midpoint of our full year revenue expectations for 2025 and remain confident in our ability to grow adjusted EBITDA at twice the rate of constant currency revenue growth.”

Mr. Mackin concluded, “We were also pleased to see Endospan present positive new clinical data for its NEXUS aortic stent graft system at the AATS Annual Meeting in May. Trial data out to 30 days met its primary endpoints and demonstrated statistically significant improvement in clinical outcomes compared with the goals set in the investigational protocol. With these outcomes, we believe NEXUS remains on track for FDA approval in the second half of 2026 and we look forward to Endospan sharing 1-year follow up data next year.”

First Quarter 2025 Financial Results
Total revenues for the first quarter of 2025 were $99.0 million, an increase of 2% on a GAAP basis and 4% on a non-GAAP constant currency basis, both compared to the first quarter of 2024.

Net loss for the first quarter of 2025 was $(0.5) million, or $(0.01) per fully diluted common share, compared to net income of $7.5 million, or $0.18 per fully diluted common share for the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 was $2.5 million, or $0.06 per fully diluted common share, compared to non-GAAP net income of $2.6 million, or $0.06 per fully diluted common share for the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 includes pretax gains related to foreign currency revaluation of $2.9 million.

2025 Financial Outlook

Artivion is raising the midpoint of its revenue guidance and now expects full year 2025 revenue to be in the range of $423 to $435 million, representing growth of 11% to 14% on a constant currency basis compared to 2024. While current exchange rates would provide incremental upside to our as-reported revenue guidance range, the Company is not revising its FX assumptions at this time given ongoing volatility in the foreign exchange environment.

Additionally, Artivion continues to expect adjusted EBITDA growth of between 18% and 28% for the full year 2025 compared to 2024, resulting in an expected range of $84 to $91 million for 2025.

The Company's financial performance for 2025 and future periods is subject to the risks identified below.

Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including non-GAAP revenue, non-GAAP net income and diluted EPS, EBITDA, adjusted EBITDA, non-GAAP general, administrative, and marketing expenses, and free cash flows. Investors should consider this non-GAAP information in addition to, and not as a substitute for, financial measures prepared in accordance with US GAAP. In addition, this non-GAAP financial information may not be the same as similar measures presented by other companies. The Company's non-GAAP revenues are adjusted for the impact of changes in currency exchange. The Company’s non-GAAP net income, EBITDA, adjusted EBITDA, general, administrative, and marketing, and free cash flows results primarily exclude (as applicable) depreciation and amortization expense, interest income and expense, non-cash compensation expense, loss or gain on foreign currency revaluation, income tax expense or benefit, business development, integration, and severance income or expense, loss on extinguishment of debt, non-cash interest expense, capital expenditures, and other non-recurring items.

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The Company generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the Company and as a basis for strategic planning. Company management believes that these non-GAAP presentations provide useful information to investors regarding unusual non-operating transactions, the operating expense structure of the Company's existing and acquired operations, without regard to its on-going efforts to acquire additional complementary products and businesses, and the transaction and integration expenses incurred in connection with recently acquired and divested product lines, and the operating expense structure excluding fluctuations resulting from foreign currency revaluation and non-cash compensation expense. The Company believes it is useful to exclude certain expenses and revenues because such amounts in any specific period may not directly correlate to the underlying performance of its business operations or can vary significantly between periods as a result of factors such as impact of recent acquisitions, non-cash expense related to amortization of previously acquired tangible and intangible assets, and any related adjustments to their carrying values. The Company has adjusted for the impact of changes in currency exchange from certain revenues to evaluate comparable product growth rates on a constant currency basis. The Company does, however, expect to incur similar types of expenses and currency exchange impacts in the future, and this non-GAAP financial information should not be viewed as a statement or indication that these types of expenses will not recur. Company management encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety, including the reconciliation of GAAP to non-GAAP financial measures.

The Company’s adjusted EBITDA expectations for fiscal 2025 exclude potential charges or gains that may be recorded during the fiscal year, relating to, among other things, non-cash compensation, business development, integration, and severance income or expense, loss on extinguishment of debt, and foreign currency revaluations. The Company does not attempt to provide reconciliations of forward-looking adjusted EBITDA to the comparable GAAP measure because the impact and timing of these potential charges or gains are inherently uncertain and difficult to predict and are unavailable without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a material impact on GAAP measures of the Company’s financial performance.

Webcast and Conference Call Information
The Company will hold a teleconference call and live webcast on May 5, 2025, at 4:30 p.m. ET to discuss the results, followed by a question-and-answer session. To participate in the conference call dial 201-689-8261 a few minutes prior to 4:30 p.m. ET. The teleconference replay will be available approximately one hour following the completion of the event and can be accessed by calling (toll free) 877-660-6853 or 201-612-7415. The conference number for the replay is 13752340.

The live webcast and replay can be accessed by going to the Investors section of the Artivion website at www.Artivion.com and selecting the heading Webcasts & Presentations.

About Artivion, Inc.
Headquartered in suburban Atlanta, Georgia, Artivion, Inc., is a medical device company focused on developing simple, elegant solutions that address cardiac and vascular surgeons’ most difficult challenges in treating patients with aortic diseases. Artivion’s four major groups of products include: aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues. Artivion markets and sells products in more than 100 countries worldwide. For additional information about Artivion, visit our website, www.Artivion.com.


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Forward-Looking Statements
Statements made in this press release that look forward in time or that express management's beliefs, expectations, or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made. These statements include, but are not limited to, our beliefs and expectations about our revenue, year-over-year growth and growth drivers, earnings, currency impacts, and other financial measures and related information; our anticipated capital needs and capital structure; our beliefs about our competitive advantages and market opportunities; the expected impact on our business of the dynamic trade policy and tariff environment; our expected product mix and business strategy; anticipated quarterly fluctuations in our business; our beliefs and expectations about the impact of the November 2024 cybersecurity incident, including our expected timeline for returning to normal levels of inventory and backlog; the timeline for regulatory approval for AMDS and other products, including our expectation that NEXUS is on track to obtain FDA approval in the second half of 2026; the benefits of receiving the Humanitarian Device Exemption and Breakthrough Designation for AMDS; our expected geographies and timeframes for commercializing our products; that our revenues for the full year 2025 will be in the range of $423 to $435 million, representing revenue growth of between 11% to 14% compared to 2024 on a constant currency basis; and that we expect non-GAAP adjusted EBITDA to increase between 18% and 28% for the full year 2025 compared to 2024, resulting in non-GAAP adjusted EBITDA in the range of $84 to $91 million in 2025. These forward-looking statements are subject to a number of risks, uncertainties, estimates and assumptions that may cause actual results to differ materially from current expectations, including, but not limited to, the unpredictability of the timing and outcome of regulatory decisions and other regulatory developments; risks relating to our international operations; the benefits anticipated from our 2024 credit facility, the Ascyrus Medical LLC transaction and Endospan agreements, and our operational improvements in our tissue and stent graft business may not be achieved at all or at the levels we anticipate or had originally anticipated; the benefits anticipated from our clinical trials and regulatory approvals may not be achieved or achieved on our anticipated timelines; the uncertainty regarding potential unknown or future impacts of the November 2024 cybersecurity incident; and the benefits anticipated from our expansion into APAC and LATAM may not be achieved or achieved on our anticipated timelines. These risks and uncertainties include the risk factors detailed in our Securities and Exchange Commission filings, including our Form 10-K for the year ended December 31, 2025, and our Form 10-Q for the quarter ended March 31, 2025. Artivion does not undertake to update its forward-looking statements, whether as a result of new information, future events, or otherwise.



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Artivion, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income
In Thousands, Except Per Share Data
(Unaudited)

Three Months Ended
March 31,
20252024
Revenues:
Products$78,798 $71,114 
Preservation services20,180 26,317 
Total revenues98,978 97,431 
Cost of products and preservation services:
Products25,263 23,750 
Preservation services10,138 10,735 
Total cost of products and preservation services35,401 34,485 
Gross margin63,577 62,946 
Operating expenses:
General, administrative, and marketing54,704 30,689 
Research and development6,728 6,946 
Total operating expenses61,432 37,635 
Operating income2,145 25,311 
Interest expense7,663 7,826 
Interest income(144)(374)
Loss on extinguishment of debt— 3,669 
Other (income) expense, net(3,079)1,409 
(Loss) income before income taxes(2,295)12,781 
Income tax (benefit) expense(1,790)5,248 
Net (loss) income$(505)$7,533 
(Loss) income per share:
Basic$(0.01)$0.18 
Diluted$(0.01)$0.18 
Weighted-average common shares outstanding:
Basic 42,232 41,290 
Diluted42,232 47,886 
Net (loss) income$(505)$7,533 
Other comprehensive income:
Foreign currency translation adjustments, net of tax6,331 (1,528)
Comprehensive income$5,826 $6,005 
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Artivion, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
In Thousands
March 31,
2025		December 31,
2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$37,693 $53,463 
Trade receivables, net87,802 79,462 
Other receivables7,956 6,431 
Inventories81,927 79,766 
Deferred preservation costs52,375 51,701 
Prepaid expenses and other19,544 19,257 
Total current assets287,297 290,080 
Goodwill245,069 240,958 
Acquired technology, net127,530 128,051 
Operating lease right-of-use assets, net39,229 39,726 
Property and equipment, net37,810 36,403 
Other intangibles, net28,517 28,332 
Deferred tax assets, net684 1,068 
Other long-term assets25,027 24,483 
Total assets$791,163 $789,101 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$11,695 $17,971 
Accrued compensation12,294 18,342 
Accrued expenses11,520 11,834 
Accrued interest6,757 8,170 
Taxes payable1,605 2,934 
Accrued procurement fees1,982 1,704 
Current maturities of operating leases4,575 4,489 
Current portion of finance lease obligations669 601 
Current portion of long-term debt, net135 195 
Other current liabilities708 583 
Total current liabilities51,940 66,823 
Long-term debt, net314,611 314,152 
Contingent consideration50,050 52,880 
Non-current maturities of operating leases39,353 39,988 
Deferred tax liabilities, net21,532 20,183 
Deferred compensation liability8,070 7,977 
Non-current finance lease obligations3,016 2,833 
Other long-term liabilities8,339 8,065 
Total liabilities$496,911 $512,901 
Commitments and contingencies
Stockholders’ equity:
Preferred stock $0.01 par value per share, 5,000 shares authorized, no shares issued— — 
Common stock $0.01 par value per share, 75,000 shares authorized, 44,190 and 43,432 shares issued as of March 31, 2025 and December 31, 2024, respectively442 434 
Additional paid-in capital388,825 376,607 
Retained deficit (61,771)(61,266)
Accumulated other comprehensive loss (18,596)(24,927)
Treasury stock, at cost, 1,487 shares as of March 31, 2025 and December 31, 2024(14,648)(14,648)
Total stockholders’ equity294,252 276,200 
Total liabilities and stockholders’ equity$791,163 $789,101 
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Artivion, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
In Thousands
(Unaudited)
Three Months Ended
March 31,
20252024
Net cash flows from operating activities:
Net (loss) income$(505)$7,533 
Adjustments to reconcile net (loss) income to net cash from operating activities:
Depreciation and amortization5,446 5,909 
Non-cash compensation8,045 3,478 
Non-cash lease expense 1,226 1,920 
Write-down of inventories and deferred preservation costs1,312 723 
Deferred income taxes— 4,299 
Change in fair value of contingent consideration(2,830)(17,470)
Loss on extinguishment of debt— 3,669 
Other (2,891)644 
Changes in operating assets and liabilities:
Receivables(7,922)(3,334)
Inventories and deferred preservation costs(2,453)(1,380)
Prepaid expenses and other assets(327)(2,268)
Accounts payable, accrued expenses, and other liabilities(16,054)(9,216)
Net cash flows used in operating activities(16,953)(5,493)
Net cash flows from investing activities:
Capital expenditures(3,638)(3,611)
Net cash flows used in investing activities(3,638)(3,611)
Net cash flows from financing activities:
Proceeds from issuance of long-term debt— 190,000 
Proceeds from revolving credit facility— 30,000 
Repayment of debt(66)(211,627)
Proceeds from exercise of stock options and issuance of common stock4,181 3,528 
Payment of debt issuance costs— (9,998)
Principal payments on short-term notes payable— (1,027)
Other(178)(139)
Net cash flows provided by financing activities3,937 737 
Effect of exchange rate changes on cash and cash equivalents884 545 
Decrease in cash and cash equivalents(15,770)(7,822)
Cash and cash equivalents beginning of period53,463 58,940 
Cash and cash equivalents end of period$37,693 $51,118 
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Artivion, Inc. and Subsidiaries
Financial Highlights
In Thousands
(Unaudited)
Three Months Ended
March 31,
20252024
Products:
Aortic stent grafts$36,602$32,103
On-X21,57419,681
Surgical sealants18,10616,981
Other2,5162,349
Total products78,798 71,114 
Preservation services20,18026,317
Total revenues$98,978 $97,431 
North America47,793 50,928 
Europe, the Middle East, and Africa37,045 33,588 
Asia Pacific8,214 7,609 
Latin America5,926 5,306 
Total revenues$98,978 $97,431 

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Artivion, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
Revenues 
$ In Thousands
(Unaudited)

Revenues for the
Three Months Ended
March 31,		Percent
Change
From Prior
Year
20252024
US GAAPUS GAAPExchange Rate EffectConstant CurrencyConstant Currency
Products:
Aortic stent grafts$36,602 $32,103 $(1,308)$30,795 19%
On-X21,574 19,681 (272)19,409 11%
Surgical sealants18,106 16,981 (317)16,664 9%
Other2,516 2,349 (4)2,345 7%
Total products78,798 71,114 (1,901)69,213 14%
Preservation services20,180 26,317 (67)26,250 -23%
Total$98,978 $97,431 $(1,968)$95,463 4%
North America47,793 50,928 (152)50,776 -6%
Europe, the Middle East, and Africa37,045 33,588 (1,210)32,378 14%
Asia Pacific8,214 7,609 — 7,609 8%
Latin America5,926 5,306 (606)4,700 26%
Total$98,978 $97,431 $(1,968)$95,463 4%


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Artivion, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
General, Administrative, and Marketing Expense, EBITDA, Adjusted EBITDA, and Free Cash Flows
In Thousands
(Unaudited)
Three Months Ended
March 31,
20252024
Reconciliation of G&A expenses, GAAP to adjusted G&A, non-GAAP:
General, administrative, and marketing expense, GAAP$54,704 $30,689 
  Business development, integration, and severance income (2,784)(17,387)
Cybersecurity incident4,450 — 
Adjusted G&A, non-GAAP$53,038 $48,076 
Three Months Ended
March 31,
20252024
Reconciliation of net (loss) income, GAAP and EBITDA, non-GAAP to adjusted EBITDA, non-GAAP:
Net (loss) income, GAAP$(505)$7,533 
Adjustments:
Interest expense7,663 7,826 
Interest income(144)(374)
Income tax (benefit) expense(1,790)5,248 
Depreciation and amortization expense5,446 5,909 
EBITDA, non-GAAP10,670 26,142 
Non-cash compensation8,045 3,478 
  Business development, integration, and severance income (3,057)(17,387)
Cybersecurity incident4,746 — 
Loss on extinguishment of debt— 3,669 
(Gain) loss on foreign currency revaluation(2,856)1,410 
Adjusted EBITDA, non-GAAP$17,548 $17,312 
Three Months Ended
March 31,
20252024
Reconciliation of cash flows from operating activities, GAAP to free cash flows, non-GAAP:
Net cash flows provided by operating activities(16,953)(5,493)
Capital expenditures(3,638)(3,611)
Free cash flows, non-GAAP$(20,591)$(9,104)
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Artivion Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
Net Income and Diluted Income Per Common Share
In Thousands, Except Per Share Data
(Unaudited)
Three Months Ended
March 31,
20252024
GAAP:
(Loss) income before income taxes$(2,295)$12,781 
Income tax (benefit) expense$(1,790)$5,248 
Net (loss) income$(505)$7,533 
Diluted (loss) income per common share$(0.01)$0.18 
Diluted weighted-average common shares outstanding42,232 47,886 
Reconciliation of (loss) income before income taxes, GAAP to adjusted income, non-GAAP:
(Loss) income before income taxes, GAAP:$(2,295)$12,781 
Adjustments:
Amortization expense3,388 3,867 
Business development, integration, and severance income(3,057)(17,387)
Non-cash interest expense543 580 
Cybersecurity incident4,746 — 
Loss on extinguishment of debt— 3,669 
Adjusted income before income taxes, non-GAAP3,325 3,510 
Income tax expense calculated at a tax rate of 25%831 878 
Adjusted net income, non-GAAP$2,494 $2,632 
Reconciliation of diluted (loss) income per common share, GAAP to adjusted diluted income per common share, non-GAAP:
Diluted (loss) income per common share, GAAP:$(0.01)$0.18 
Adjustments:
Amortization expense0.08 0.09 
Business development, integration, and severance income (0.07)(0.41)
Non-cash interest expense0.01 0.01 
Cybersecurity incident0.11 — 
Loss on extinguishment of debt— 0.09 
Tax effect of non-GAAP adjustments(0.03)0.05 
Effect of 25% tax rate(0.03)0.05 
Adjusted diluted income per common share, non-GAAP$0.06 $0.06 
Reconciliation of diluted weighted-average common shares outstanding GAAP to diluted weighted-average common shares outstanding, non-GAAP:
Diluted weighted-average common shares outstanding, GAAP:42,232 47,886 
Adjustments:
Effect of dilutive stock options and awards1,306 — 
Effect of convertible senior notes— (5,707)
Diluted weighted-average common shares outstanding, non-GAAP43,538 42,179 
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