CRYO CELL INTERNATIONAL INC (CCEL)·Q2 2021 Earnings Summary

Executive Summary

• Q2 2021 revenue was $7.21M, down 8% year over year, while net income rose to $1.17M ($0.15 basic, $0.14 diluted), driven by lower cost of sales (-10%) and SG&A (-12%) and a $432K decrease in contingent consideration .
• Sequentially, revenue increased vs Q1 2021 ($6.86M), and net income improved vs ~$0.694M in Q1 2021, reflecting operating expense discipline and absence of prior-period one-time items .
• Strategic update: management highlighted the February 2021 Duke University license transforming Cryo-Cell into a vertically integrated cellular therapy company, a potential multi-quarter catalyst .
• No formal quantitative guidance or earnings call transcript was available for Q2 2021; estimate comparisons to Wall Street consensus were unavailable via S&P Global during this session (see Estimates Context) .

What Went Well and What Went Wrong

What Went Well

• Expense control offset top-line pressure: cost of sales (-10%) and SG&A (-12%) declines helped deliver higher net income despite lower revenue .
• Reduced contingent consideration: a $432K decrease vs a $27K increase in the prior-year quarter contributed positively to Q2 profitability .
• Strategic momentum: “In February 2021, Cryo-Cell entered into a license agreement with Duke University that transformed Cryo-Cell into an autonomous, vertically integrated cellular therapy company that will be able to treat patients,” positioning the company for future clinical revenue streams .

What Went Wrong

• Core revenue decline (-8% YoY): processing & storage revenue was slightly lower YoY, and ancillary revenue lines (license & royalty, product, public banking) were weaker versus Q2 2020 .
• Added amortization expense: $240K related to the Duke Patent and Technology License Agreement, a new cost burden as the company pivots into therapy operations .
• Ongoing COVID-19 impact: management previously flagged lower births and reduced consumer confidence as headwinds, which continued to weigh on demand in early 2021 .

Financial Results

Revenue, Net Income, EPS vs Prior Periods (oldest → newest)

Notes:

• YoY: Revenue -8% vs Q2 2020; net income +$0.22M vs Q2 2020 .
• Sequential: Revenue +$0.35M vs Q1 2021; net income +~$0.48M vs Q1 2021 .

Revenue Mix

Operating Drivers

• Cost of sales decreased 10%; SG&A decreased 12% in Q2 2021 vs prior-year quarter, supporting margin resilience .
• Fair value change in contingent consideration: -$432K in Q2 2021 vs +$27K in Q2 2020 .
• Amortization: $240K related to Duke license in Q2 2021 .

Guidance Changes

Management did not issue quantitative guidance in the Q2 2021 materials .

Earnings Call Themes & Trends

No Q2 2021 earnings call transcript was located in our document catalog; public sources list the earnings release only. The table below tracks themes across recent quarters using press releases.

Management Commentary

• “We are pleased to be able to report these results in light of the worldwide COVID-19 pandemic that dramatically affected consumer confidence. The uncertain health impact of the virus on a pregnancy has clearly lowered the number of births in the last year.” — David Portnoy, Chairman and Co-CEO, Q1 2021 press release .
• “We are actively working on our plans for the future, which include many new opportunities related to our licensing agreement with Duke University…” — David Portnoy, Q1 2021 press release .
• Strategic statement: “In February 2021, Cryo-Cell entered into a license agreement with Duke University that transformed Cryo-Cell into an autonomous, vertically integrated cellular therapy company that will be able to treat patients.” — Q2 2021 press release .

Q&A Highlights

• No Q2 2021 earnings call transcript found; there were no available Q&A clarifications in our document set .

Estimates Context

• Wall Street consensus EPS and revenue estimates from S&P Global were unavailable during this session due to platform request limits; as a result, no beat/miss vs consensus could be quantified here. If coverage exists, we recommend re-querying S&P Global for “Primary EPS Consensus Mean” and “Revenue Consensus Mean” for Q2 2021 to anchor estimate comparisons. Values retrieved from S&P Global would be cited without document tags and marked with an asterisk alongside an “Values retrieved from S&P Global” disclaimer.

Key Takeaways for Investors

• Q2 2021 showed resilient profitability despite an 8% revenue decline, underpinned by consistent cost control and a favorable $432K contingent consideration change; monitor whether expense improvements are sustainable as demand normalizes .
• Sequential revenue uptick vs Q1 2021 suggests stabilization; watch core processing & storage trajectory and the recovery of ancillary revenue lines (public banking, license/product) .
• The Duke University license is a structural catalyst, enabling clinic-based therapies; near-term financials will reflect amortization and setup costs, but medium-term optionality includes new revenue streams in expanded access indications (autism, CP, TBI) .
• With no formal guidance provided, focus on quarterly press releases and 10-Q filings for operating expense trends, contingent consideration movements, and any clinic deployment milestones .
• Absent a call transcript, tone and narrative rely on prepared materials; management has consistently emphasized COVID-related birth declines and strategic repositioning—track commentary for evidence of demand recovery and clinical execution .
• If/when consensus becomes available, recalibrate expectations; given Q2 profitability outperformance vs Q1, estimate revisions may bias upward for EPS even with modest top-line pressure.

Sources: Q2 2021 8-K and press release ; Q1 2021 8-K and press release ; Q3 2020 8-K and press release ; FY 2020 press release ; IR site press release PDF link .