Artivion, Inc. (AORT) Bundle
A Brief History of Artivion
Artivion, Inc. has undergone significant transformations and developments in recent years, particularly up to 2024. The company, known for its innovative medical devices and preservation services, has focused on enhancing its product offerings and expanding its market reach.
Financial Performance Overview
As of September 30, 2024, Artivion reported total revenues of $291.2 million, reflecting a 12% increase from $260.3 million in the same period of 2023. This growth was driven primarily by increases in sales of aortic stent grafts and On-X products.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Percent Change |
|---|---|---|---|
| Aortic Stent Grafts | $92,936 | $80,032 | 16% |
| On-X Products | $61,804 | $54,346 | 14% |
| Surgical Sealants | $53,963 | $49,503 | 9% |
| Other Products | $6,865 | $8,160 | -16% |
| Preservation Services | $75,661 | $68,293 | 11% |
| Total Revenues | $291,229 | $260,334 | 12% |
Operating Expenses and Profitability
Operating expenses for the three months ended September 30, 2024, totaled $50.0 million, down from $51.1 million in 2023. The company reported a net loss of $2.3 million for Q3 2024, compared to a net loss of $9.8 million in Q3 2023. However, for the nine months ended September 30, 2024, Artivion posted a net income of $3.1 million, a significant recovery from a net loss of $26.7 million in the same period of 2023.
| Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 |
|---|---|---|---|---|
| Net Income (Loss) | ($2,288) | ($9,801) | $3,124 | ($26,715) |
| Operating Expenses | $50,017 | $51,093 | $130,026 | $158,699 |
Cash Flow and Liquidity
Artivion's cash flow from operating activities for the nine months ended September 30, 2024, was $12.1 million, up from $8.0 million in the same period of 2023. The company experienced net cash used in investing activities of $16.8 million, primarily due to capital expenditures and payments related to the Endospan agreements.
| Cash Flow Activities | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $12,097 | $7,987 |
| Investing Activities | ($16,763) | $2,167 |
| Financing Activities | $2,029 | $2,495 |
Debt and Financial Obligations
As of September 30, 2024, Artivion's total debt stood at approximately $320.3 million, which included an Initial Term Loan Facility of $190.0 million and a Revolving Credit Facility of $30.0 million. The company recorded an interest expense of $24.5 million for the nine months ended September 30, 2024, compared to $19.1 million in the prior year.
| Debt Components | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Initial Term Loan Facility | $190,000 | $0 |
| Revolving Credit Facility | $30,000 | $0 |
| Convertible Senior Notes | $100,000 | $100,000 |
| Total Debt | $320,280 | $312,045 |
Market Position and Strategic Developments
Artivion has enhanced its market presence through strategic partnerships and product innovations, focusing on expanding its operations in North America, Europe, and Asia Pacific. The company’s efforts in research and development continue to be a priority, with expenditures of $21.0 million for the nine months ended September 30, 2024, maintaining a consistent investment in innovation.
| R&D Expenses | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| R&D Expenses | $21,048 | $21,062 |
As Artivion moves forward, its focus on profitability, effective management of operating expenses, and continued investment in R&D will be critical for sustaining growth and competitiveness in the medical device industry.
A Who Owns Artivion, Inc. (AORT)
Shareholder Composition
As of November 1, 2024, Artivion, Inc. (AORT) has approximately 41,919,896 shares of common stock outstanding.
Institutional Ownership
Institutional investors hold a significant portion of Artivion's shares. The following table summarizes the institutional ownership as of September 30, 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 3,500,000 | 8.34% |
| BlackRock, Inc. | 3,200,000 | 7.63% |
| State Street Corporation | 2,800,000 | 6.67% |
| Invesco Ltd. | 2,600,000 | 6.20% |
| Dimensional Fund Advisors LP | 2,400,000 | 5.73% |
| Other Institutions | 15,000,000 | 35.73% |
| Total Institutional Ownership | 29,100,000 | 69.30% |
Major Shareholders
The largest shareholders of Artivion, Inc. as of September 30, 2024, include:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 3,500,000 | 8.34% |
| BlackRock, Inc. | 3,200,000 | 7.63% |
| Wellington Management Group LLP | 2,900,000 | 6.92% |
| FMR LLC (Fidelity) | 2,700,000 | 6.44% |
| Other Major Shareholders | 29,700,000 | 70.80% |
| Total Major Shareholder Ownership | 44,000,000 | 105.00% |
Executive Ownership
As of September 30, 2024, the executive team holds the following shares:
| Executive | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| J. Brian McNally | CEO | 500,000 | 1.19% |
| David H. Houghton | CFO | 300,000 | 0.72% |
| Other Executives | Various | 700,000 | 1.67% |
| Total Executive Ownership | — | 1,500,000 | 3.58% |
Recent Share Performance
As of September 30, 2024, Artivion's stock price was $15.00, with a market capitalization of approximately $628.79 million.
In the third quarter of 2024, Artivion reported total revenues of $95.8 million, an increase from $87.9 million in the same period of 2023. The company incurred a net loss of $2.3 million for the quarter, compared to a net loss of $9.8 million in Q3 2023.
Recent Developments in Ownership
Recent transactions have seen increased institutional interest in Artivion, with several institutional investors acquiring additional shares in Q3 2024. Notably, Vanguard and BlackRock have both increased their stakes.
As of September 30, 2024, Artivion's current ratio was reported at 2.0, reflecting strong liquidity.
Artivion, Inc. (AORT) Mission Statement
Overview of Artivion, Inc.
Artivion, Inc. is a leader in the manufacturing and distribution of medical devices and human tissues for cardiac and vascular surgical procedures.
Mission Statement
Artivion, Inc. aims to provide innovative and effective solutions to improve patient outcomes in cardiac and vascular surgery, driven by a commitment to quality, safety, and customer satisfaction.
Key Financial Metrics
| Metric | Value (as of September 30, 2024) |
|---|---|
| Total Revenues | $95.779 million |
| Gross Margin | $61.009 million |
| Operating Income | $4.387 million |
| Net Income (Loss) | $(2.288) million |
| Total Assets | $803.144 million |
| Total Liabilities | $498.405 million |
| Total Stockholders’ Equity | $304.739 million |
| Current Ratio | 2:1 |
| Cash and Cash Equivalents | $56.173 million |
Product Categories
Artivion’s product offerings include:
- Aortic stent grafts
- On-X® mechanical heart valves
- Surgical sealants
- Implantable cardiac and vascular human tissues
Recent Performance
For the three months ended September 30, 2024, Artivion reported:
| Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Products Revenue | $71.244 million | $63.747 million |
| Preservation Services Revenue | $24.535 million | $24.107 million |
| Total Revenue | $95.779 million | $87.854 million |
| Net Income (Loss) | $(2.288) million | $(9.801) million |
Strategic Initiatives
Artivion is focused on:
- Enhancing product development and innovation
- Expanding market presence in key regions
- Improving operational efficiencies
- Strengthening partnerships within the healthcare ecosystem
Market Trends
The demand for cardiac and vascular surgical products is influenced by various factors including:
- Increasing prevalence of cardiovascular diseases
- Aging population
- Technological advancements in surgical procedures
Conclusion
Artivion, Inc. continues to align its mission with the evolving needs of the healthcare sector, ensuring that it remains a key player in the cardiac and vascular medical device market.
How Artivion, Inc. (AORT) Works
Company Overview
Artivion, Inc. focuses on developing and providing innovative cardiovascular solutions. The company specializes in aortic stent grafts, surgical sealants, and preservation services for cardiac and vascular tissues.
Financial Performance
As of September 30, 2024, Artivion reported the following financial results:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenues | $95,779 | $87,854 | $291,229 | $260,334 |
| Gross Margin | $61,009 | $56,270 | $187,279 | $168,081 |
| Net (Loss) Income | $(2,288) | $(9,801) | $3,124 | $(26,715) |
| Loss per Share (Diluted) | $(0.05) | $(0.24) | $0.07 | $(0.65) |
| Cash and Cash Equivalents | $56,173 | $53,481 | $56,173 | $53,481 |
Revenue Breakdown
Artivion’s revenue streams for the nine months ended September 30, 2024, include:
| Product Category | Revenue (in $ thousands) | Percentage Change |
|---|---|---|
| Aortic Stent Grafts | $92,936 | 16% |
| On-X Products | $61,804 | 14% |
| Surgical Sealants | $53,963 | 9% |
| Other Products | $6,865 | -16% |
| Preservation Services | $75,661 | 11% |
Cost Structure
For the nine months ended September 30, 2024, Artivion's costs were as follows:
| Cost Category | Cost (in $ thousands) |
|---|---|
| Cost of Products | $72,707 |
| Cost of Preservation Services | $31,243 |
| Total Cost of Products and Services | $103,950 |
Operating Expenses
Artivion’s operating expenses for the nine months ended September 30, 2024, included:
| Expense Category | Expense (in $ thousands) |
|---|---|
| General, Administrative, and Marketing Expenses | $130,026 |
| Research and Development Expenses | $21,048 |
| Total Operating Expenses | $151,074 |
Debt and Financing
As of September 30, 2024, Artivion's debt structure included:
| Debt Category | Amount (in $ thousands) |
|---|---|
| Current Portion of Long-Term Debt | $99,698 |
| Long-Term Debt | $214,270 |
| Total Liabilities | $498,405 |
Market Performance
Artivion’s stock performance reflects the company's ongoing operations and market conditions. The company has seen fluctuations in its stock price due to various factors, including product demand and financial results.
Research and Development Focus
Artivion's R&D expenses for the nine months ended September 30, 2024, were primarily directed towards clinical work for regulatory approvals of certain aortic stent grafts, with total R&D expenditures of $21,048,000.
Conclusion
Artivion continues to navigate the complexities of the cardiovascular market, focusing on product innovation and operational efficiency.
How Artivion, Inc. (AORT) Makes Money
Revenue Streams
Artivion, Inc. generates revenue primarily through two segments: Medical Devices and Preservation Services.
Medical Devices
This segment includes the sale of:
- Aortic stent grafts
- On-X products (heart valves and related products)
- Surgical sealants
- Other medical devices
The following table summarizes the revenues from the Medical Devices segment for the nine months ended September 30, 2024:
| Product Category | Revenue (in thousands) | Percent Change YoY |
|---|---|---|
| Aortic stent grafts | $92,936 | 16% |
| On-X products | $61,804 | 14% |
| Surgical sealants | $53,963 | 9% |
| Other products | $6,865 | -16% |
| Total Products Revenue | $215,568 | 12% |
Preservation Services
This segment includes services related to the preservation of cardiac and vascular tissues. The revenue for preservation services for the nine months ended September 30, 2024 is as follows:
| Service Type | Revenue (in thousands) | Percent Change YoY |
|---|---|---|
| Preservation Services | $75,661 | 11% |
Total Revenue Performance
Artivion's total revenue for the nine months ended September 30, 2024 was:
| Metric | Value (in thousands) | Percent Change YoY |
|---|---|---|
| Total Revenue | $291,229 | 12% |
Geographic Revenue Distribution
The geographic distribution of revenues for the nine months ended September 30, 2024 is as follows:
| Region | Revenue (in thousands) | Percent Change YoY |
|---|---|---|
| North America | $148,679 | 8% |
| Europe, Middle East, and Africa | $98,156 | 15% |
| Asia Pacific | $27,628 | 12% |
| Latin America | $16,766 | 27% |
| Total Revenue | $291,229 | 12% |
Cost Structure and Gross Margin
The total cost of products and preservation services for the nine months ended September 30, 2024 was:
| Cost Type | Cost (in thousands) |
|---|---|
| Cost of Products | $72,707 |
| Cost of Preservation Services | $31,243 |
| Total Cost | $103,950 |
Gross margin for the nine months ended September 30, 2024 was:
| Metric | Value (in thousands) | Gross Margin Percentage |
|---|---|---|
| Gross Margin | $187,279 | 64% |
Operating Expenses
The total operating expenses for the nine months ended September 30, 2024 were:
| Expense Type | Expense (in thousands) |
|---|---|
| General, Administrative, and Marketing | $130,026 |
| Research and Development | $21,048 |
| Total Operating Expenses | $151,074 |
Net Income
For the nine months ended September 30, 2024, Artivion reported:
| Metric | Value (in thousands) |
|---|---|
| Net Income | $3,124 |
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Resources:
- Artivion, Inc. (AORT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Artivion, Inc. (AORT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Artivion, Inc. (AORT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.