OLDSMAR, Fla. – July 16, 2015 – Cryo-Cell International, Inc. (the “Company”) (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 second fiscal quarter ended May 31, 2015.
Consolidated revenues for the third quarter of fiscal 2015 were approximately $5.4 million compared to approximately $4.9 million for the third quarter of fiscal 2014. The revenues for the third quarter of fiscal 2015 consisted of approximately $5.0 million in processing and storage fees, $169,000 in licensee income, and $260,000 in product revenue compared to approximately $4.8 million in processing and storage fees, $169,000 in licensee income and $0 in product revenue for the third quarter of fiscal 2014.
The Company reported net income for the three months ended August 31, 2015 of approximately $7.8 million, or $0.83 per basic and $0.80 per diluted share, compared to net income of approximately $237,000, or $0.02 per basic and diluted share for the three months ended August 31, 2014. The increase in net income is primarily attributable to the Company releasing approximately $7.0 million of its valuation allowance for income taxes. The decision to reverse a portion of the allowance is based on the Company’s historical operating performance, which includes profitability in ten of the last eleven quarters, steadily improving operations, which contributed to the Company recently coming out of a 36 month cumulative loss position, and positive expectations for future taxable income. The increase in net income for the three months ended August 31, 2015 is also attributable to the non-recurring, one-time $287,000 reversal of a reserve against a receivable from the Company’s affiliate in India. If the Company did not recognize the two aforementioned non-recurring items, the Company’s basic and diluted earnings per share would have been $0.06 per share for the three months ended August 31, 2015.
Cash and Cash Equivalents
At August 31, 2015, the Company had cash and cash equivalents of $2,719,463. The Company’s cash decreased by approximately $560,000 during the first nine months of fiscal 2015, primarily as a result of approximately $2,947,000 used for the repurchase of 957,956 shares of the Company’s common stock and $862,000 used for the acquisition of the Prepacyte® CB cord blood business. These uses of cash were offset by cash flows generated from operations of $2,863,508 for the nine first nine months of fiscal 2015.