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CRYO CELL INTERNATIONAL INC (CCEL)·Q4 2021 Earnings Summary

Executive Summary

  • Fiscal Q4 2021 capped a year of contraction driven by COVID-related birth-rate declines and pricing pressure; FY revenue fell 7% to $28.9M and FY diluted EPS was $0.25 .
  • Quarterly trend was stable: Q2 revenue $7.21M, Q3 $7.50M, and Q4 inferred at ~$7.31M by subtracting Q1–Q3 from FY totals; quarterly EPS was $0.15/$0.14 (basic/diluted) in Q2 and $0.10 in Q3; Q4 EPS was not disclosed .
  • Management highlighted the Duke University license and transformation toward a vertically integrated cellular therapy company, with clinic infusions targeted for FY2022 Q4 and expected pricing stabilization; this was the principal forward catalyst .
  • No Q4 earnings call transcript was found; SPGI consensus estimates were unavailable due to access limits, so beats/misses to Street could not be assessed [functions.SearchDocuments] [functions.GetEstimates].

What Went Well and What Went Wrong

What Went Well

  • Recurring annual storage fee revenue increased 8% YoY, partially offsetting new enrollment declines; cost of sales fell 7% YoY, supporting FY operating income of $4.0M .
  • Strong cash generation: FY2021 cash from operations was $7.93M, underpinning investment in the Duke license and clinic buildout .
  • Strategic progress toward cellular therapies: “We are proud to report another quarter of solid financial results even with the additional expenses related to our transformation into a vertically integrated, cellular therapy company.” — David Portnoy, Co-CEO (Q3 press release) .
  • Management tone on future prospects: “We believe we have more opportunities to pursue now than ever before… The transformation… is well underway.” — 2021 Annual Letter .

What Went Wrong

  • FY revenue declined 7% to $28.9M due to lower U.S. birth rates from COVID and price pressure in cord blood banking; license income from India expired, removing up to $1M of high-margin royalties .
  • Public bank inventory impairment of $1.16M in FY2021 reflected reduced expected recoverability, pressuring profitability .
  • Governance setback: NASDAQ notified the company in January 2022 that its audit committee had only two independent members vs. the required three; the company entered a cure period to comply .

Financial Results

Quarterly Revenue and EPS

MetricQ2 2021Q3 2021Q4 2021
Revenue ($USD Millions)$7.21 $7.50 $7.31 (derived from FY − Q1−Q3)
EPS - Basic ($)$0.15 $0.10 N/A (not disclosed)
EPS - Diluted ($)$0.14 $0.10 N/A (not disclosed)

Note: Q4 revenue is calculated as FY revenue ($28.8849M) minus Q1 ($6.86M), Q2 ($7.21M), and Q3 ($7.50M). Q4 EPS was not provided in company disclosures .

Annual Segment Breakdown

Segment Revenue ($USD Millions)FY 2020FY 2021
Umbilical cord blood & tissue service$30.18 $28.40
PrepaCyte CB$0.24 $0.11
Public cord blood banking$0.73 $0.38
Total$31.15 $28.88

KPIs and Balance Sheet Highlights

KPIFY 2020FY 2021
Deferred Revenue ($USD Millions)$36.38 $40.63
Cash and Cash Equivalents ($USD Millions)$10.36 $8.26
Cash from Operations ($USD Millions)$8.47 $7.93
Contingent Consideration Liability ($USD Millions)$1.51 $0.73
Public Inventory Units (approximate)~6,000 units ~6,000 units
Public Inventory Impairment ($USD Millions)$1.28 $1.16

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Clinic opening (autologous infusions)FY2022 Q4Not previously datedTarget opening in FY2022 Q4; plan to treat up to 10 patients/day, subject to FDA approval Introduced
Pricing environmentFY2022Not providedPrices anticipated to stabilize or trend up Introduced
EnrollmentsFY2022Not providedNew cord blood/tissue enrollments expected to be relatively flat YoY Introduced
Duke license revenue rampFY2022Not providedRevenues expected to begin in FY2022 Q4 Introduced

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
COVID impact on demandRevenue −8% Q2; −8% revenue in Q3; SG&A up modestly as they invest in Duke-related initiatives FY commentary: lower U.S. birth rate and pricing pressure cited as key drivers of FY revenue decline Demand pressure easing/expected stabilization
Duke University license executionQ2 amortization expense and patent costs; transformation narrative FY narrative emphasizes triad of business units (banking, manufacturing, clinics), with Q4’22 infusion start targeted Building capability; revenue ramp expected
Public inventory valuationNoted in Q2/Q3 operational costs and contingent consideration changes FY impairment ($1.16M) and lower contingent consideration liability Continued prudence; lower risk to earnout
Governance/listingUplisting publicity in 2H21 (press list); no operational call themes NASDAQ audit committee deficiency notice and cure period in Jan 2022 Remediation underway
Pricing/macroPricing pressure cited in FY narrative FY2022 prices anticipated to stabilize/uptrend Improving outlook

Management Commentary

  • “We are proud to report another quarter of solid financial results even with the additional expenses related to our transformation into a vertically integrated, cellular therapy company.” — David Portnoy, Co-CEO (Q3 press release) .
  • “The transformation of Cryo-Cell… to a fully integrated, cellular therapy company expecting to treat patients at its own clinic(s) is well underway.” — 2021 Annual Letter .
  • FY narrative on drivers: “Revenue and net income were negatively impacted by the reduction of the U.S. Birth rate due to Covid-19 and the price pressures in the umbilical cord blood banking industry.” .

Q&A Highlights

  • No Q4 2021 earnings call transcript was available in the document catalog; the company appears not to have hosted a call or the transcript was not published/furnished [functions.ListDocuments].

Estimates Context

  • Attempts to retrieve Q4 2021 Wall Street consensus EPS and revenue via S&P Global were unsuccessful due to access limits; consensus comparables are therefore unavailable for this quarter [functions.GetEstimates].
  • Given limited micro-cap coverage and absence of furnished estimates, we recommend caution interpreting beats/misses; Street models may need to incorporate price stabilization and clinic revenue timing from the Duke program .

Key Takeaways for Investors

  • FY2021 contraction reflects industry-wide COVID impacts; sequential revenue remained resilient into Q4, positioning the core banking business for stabilization in FY2022 per management .
  • High deferred revenue ($40.6M) supports predictable cash flows to fund Duke license, manufacturing, and clinic buildout; operating cash flow remained strong at $7.93M .
  • The Duke license is the central catalyst: clinic infusions targeted for FY2022 Q4 with potential for future manufacturing revenues; track regulatory milestones and operational readiness .
  • Public inventory impairment and lower contingent earnout liability de-risk the balance sheet; monitor further inventory sales and monetization .
  • Governance remediation (audit committee) is a near-term requirement for NASDAQ compliance; expect Board updates before the cure deadline .
  • Near-term trading: limited Street coverage and no call reduce event-driven volatility; catalysts revolve around clinic opening timeline and evidence of pricing stabilization .
  • Medium term: thesis hinges on successful execution of vertically integrated cellular therapy strategy, prudent capital allocation, and maintaining core banking cash generation .