OLDSMAR, Fla., Oct. 15, 2020 (GLOBE NEWSWIRE) -- Cryo-Cell International, Inc. (OTC:QB Markets Group Symbol: CCEL), the world’s first private cord blood bank to separate and store stem cells in 1992, announced results for the fiscal third quarter ended August 31, 2020.
Financial Results
Revenue
Consolidated revenues for the third quarter of fiscal 2020 were $8.1 million compared to $8.2 million for the third quarter of fiscal 2019. The revenues for the third quarter of fiscal 2020 consisted of $7.5 million in processing and storage fees, $427,874 in licensee income, $82,800 in product revenue and $116,826 in public banking revenue compared $7.6 million in processing and storage fees, $423,173 in licensee income, $33,035 in product revenue and $160,561 in public banking revenue for the third quarter of fiscal 2019.
Net Income
The Company reported net income for the three months ended August 31, 2020 of $784,000, or $0.10 per basic share and diluted share, compared to net income of $1,116,000, or $0.14 per basic and $0.13 per diluted share for the three months ended August 31, 2019. Net income for the three months ended August 31, 2020 resulted from a 9% decrease in cost of sales and a 5% decrease in selling, general and administrative expenses offset by a 1% decrease in revenue and the recording of a loss of $1,070,900 pursuant to the cancellation of the Erie Group Revenue Sharing Agreement.
As previously disclosed, on August 31, 2020, the Company entered into a Termination Agreement with the Erie Group pursuant to which all such parties terminated all of their respective rights, duties, obligations, options, and liabilities to each other arising out of or related to the Cryo-Cell International, Inc. Space and Time Sharing (SATS) Lease Agreement, Addendum thereto, Addition to such Addendum, and Amendment to the Cryo-Cell International, Inc. Space and Time Sharing (SATS) Lease Agreement among the Company and the Erie Group (collectively, the “SATS Agreement”). Additionally, pursuant to the terms of the Termination Agreement, the Company made a payment of $1,939,748 on the Effective Date and the parties released each other from all claims related to the SATS Agreement and agreed to dismiss with prejudice the previously-disclosed complaint. Pursuant to the terms of the Agreement, the Erie Group will no longer have the rights to share in a portion of the Company’s storage revenues derived from specimens which originated in the state of Illinois and its five contiguous states. The payment amount of $1,939,748 was offset by the carrying amount of the long-term liability related to the SATS in the amount of $550,000 and accrued expenses in the amount of $279,100, which resulted in the cancellation of the Erie Group revenue sharing agreements and a one-time expense in the amount of $1,070,900.
David Portnoy, Chairman of the Board and Co-CEO, commented, “We are excited about our previously announced option agreement with Duke University and look forward to consummating the full license agreement.”
About Cryo-Cell International, Inc.
Founded in 1989, Cryo-Cell International, Inc. is the world’s first private cord blood bank. More than 500,000 parents from 87 countries have entrusted Cryo-Cell International with their baby’s cord blood and cord tissue stem cells. In addition to its family bank, Cryo-Cell International has a public banking program in partnership with Duke University. Cryo-Cell’s public bank has provided cord blood for more than 600 transplantations and operates cord blood donation sites across the U.S in prominent hospitals such as Cedars–Sinai Hospital in Los Angeles and Baptist Hospital in Miami. Cryo-Cell’s mission is to provide clients with state-of-the-art cord blood and cord tissue cryopreservation services, raise awareness of the opportunity for expectant parents to bank or donate their baby’s cord blood and support the advancement of regenerative medicine. Cryo-Cell operates in a facility that is FDA registered, cGMP-/cGTP-compliant and licensed in all states requiring licensure. Besides being AABB accredited as a cord blood facility, Cryo-Cell was also the first U.S. (for private use only) cord blood bank to receive FACT accreditation for adhering to the most stringent cord blood quality standards set by any internationally recognized, independent accrediting organization. Cryo-Cell is a publicly traded company, OTCQB:CCEL. For more information, please visit www.cryo-cell.com.
