Cryo-Cell International Reports 3% Revenue Growth, Improved Net Income in Q3 2024

Cryo-Cell International, Inc. reported its financial results for the three and nine months ended August 31, 2024, showing notable changes in revenue and profitability compared to the previous fiscal period. Total revenue for the three months reached $8.1 million, a 3% increase from $7.9 million in the same period of 2023. For the nine months, revenue was $24.0 million, up from $23.5 million year-over-year, driven primarily by a 4% increase in recurring annual storage fees, despite a 4% decrease in new domestic cord blood specimens processed.

Operating income for the three months ended August 31, 2024, was $1.4 million, compared to $1.2 million in the prior year. However, for the nine-month period, operating income decreased to $3.6 million from $3.9 million in 2023. Net income for the three months was $1.1 million, significantly higher than $680,561 in the same quarter of 2023. For the nine months, net income rose to $2.3 million from $1.7 million, with basic earnings per share increasing to $0.13 from $0.08 for the three months and to $0.28 from $0.20 for the nine months.

The company’s total assets increased to $62.9 million as of August 31, 2024, from $61.2 million at the end of November 2023. Total current liabilities decreased to $17.4 million from $20.9 million, contributing to a reduction in total stockholders' deficit to $(9.6 million) from $(11.0 million).

Strategically, Cryo-Cell formed a new subsidiary, Celle Corp., on February 22, 2024, to manage certain non-recurring revenue assets. The company is also engaged in arbitration against Duke University, alleging fraudulent inducement and breach of the Duke License Agreement, with claims exceeding $100 million. This ongoing arbitration has led to a pause in investments related to the Duke License Agreement and the anticipated opening of the Cryo-Cell Institute for Cellular Therapies, initially planned for Q4 fiscal 2021 but now expected in Q4 fiscal 2024.

Cash and cash equivalents decreased to $197,437 as of August 31, 2024, from $406,067 at the end of November 2023. Net cash from operating activities for the nine months was $3.9 million, down from $5.6 million in the previous year. The company also reported a significant increase in selling, general, and administrative expenses, which rose to $12.5 million from $11.7 million, primarily due to higher marketing and personnel costs.

Overall, Cryo-Cell's performance reflects a mix of revenue growth and strategic challenges, particularly related to its ongoing legal disputes and operational adjustments.