OLDSMAR, Fla., Oct. 18, 2016 (GLOBE NEWSWIRE) -- 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 fiscal third quarter ended August 31, 2016.

Financial Results

Revenue         
               
Consolidated revenues for the third quarter of fiscal 2016 were $6.3 million compared to $5.4 million for the third quarter of fiscal 2015.  The revenues for the third quarter of fiscal 2016 consisted of $5.6 million in processing and storage fees, $609,000 in licensee income, and $88,000 in product revenue, compared to $5.0 million in processing and storage fees, $169,000 in licensee income and $266,000 in product revenue for the third quarter of fiscal 2015. 

Net Income
               
The Company reported a net loss for the three months ended August 31, 2016 of ($2.6) million, or ($0.35) per basic share, compared to net income of $7.8 million, or $0.83 per basic share and $0.80 per diluted share for the three months ended August 31, 2015.  The net loss for the three months ended August 31, 2016 resulted from the cancellation of certain interests in the Florida Revenue Sharing Agreement and certain interests in the Texas Revenue Sharing Agreement resulting in extinguishment of revenue sharing agreements in the amount of $2.3 million, goodwill and intangible assets impairment of $1.9 million, a 49% increase in selling, general and administrative expenses and a 3% increase in cost of sales.  This was offset by a 16% increase in total revenue and an income tax benefit of $899,000.  During the three months ended August 31, 2015, the Company released $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. 

Cash and Cash Equivalent Position

At August 31, 2016, the Company had cash and cash equivalents of $2.0 million.  The Company’s cash decreased by $2.1 million during the first nine months of fiscal 2016, primarily as a result of $10.7 million used for the stock repurchase plan pursuant to which the Company repurchased 2,429,033 shares of the Company’s common stock during the nine months ended August 31, 2016, $501,000 of cash used to purchase property and equipment and marketable securities and $876,000 used for the repayment of the Promissory Note to CytoMedical Design Group LLC which were partially offset by cash flow from operations of $2.4 million and $224,000 of cash provided by the redemption of a Certificate of Deposit.   On May 20, 2016, the Company entered into a Credit Agreement (“Agreement”) with Texas Capital Bank, National Association (“TCB”) for a term loan of $8.0 million in senior credit facilities.  The proceeds of the term loan were used by the Company to fund repurchases of the Company’s common stock.  Subject to the terms of the Agreement, on May 20, 2016, TCB advanced the Company $100.00.  On July 1, 2016, TCB advanced the remaining principal amount of $7,999,900 per a promissory note dated May 20, 2016 between the Company and TCB.  On May 20, 2016, the Company entered into a Subordination Agreement with Texas Capital Bank and CrowdOut Capital LLC (“CrowdOut”) for a subordinated loan of the principal amount of $650,000, which amount CrowdOut advanced to the Company on May 20, 2016.  The proceeds of the subordinated loan will be used by the Company to fund continued repurchases of the Company’s common stock.  On August 26, 2016, the Company entered into a First Amendment to Credit Agreement with TCB. Pursuant to terms of the First Amendment to Credit Agreement, on August 26, 2016, TCB made an additional advance to the Company in principal amount of $2,133,433 per an Amended and Restated Promissory Note dated August 26, 2016 between the Company and TCB.  The proceeds of the term loan were used by the Company to fund a portion of the cancellation of certain interests in the Florida Revenue Sharing Agreement and certain interests in the Texas Revenue Sharing Agreement. 

About Cryo-Cell International, Inc.

Founded in 1989, Cryo-Cell International, Inc. is the world's first private cord blood bank.  More than 500,000 parents from 87 countries trust Cryo-Cell to preserve their family members' stem cells.  Cryo-Cell's mission is to provide clients with state-of-the-art stem cell cryopreservation services and support the advancement of regenerative medicine. Cryo-Cell operates in a facility that is FDA registered, cGMP-/cGTP-compliant and is licensed in all states requiring licensure. Besides being AABB accredited as a cord blood facility, Cryo-Cell is also the first U.S. (for private use only) cord blood bank to receive FACT accreditation for adhering to the most stringent cord blood quality standards set by any internationally recognized, independent accrediting organization. In addition, Cryo-Cell is ISO 9001:2008 certified by BSI, an internationally recognized, quality assessment organization. Cryo-Cell is a publicly traded company, OTCQB:CCEL. For more information, please visit www.cryo-cell.com.

Forward-Looking Statement

Statements wherein the terms “believes”, “intends”, “projects”, “anticipates”, “expects”, and similar expressions as used are intended to reflect “forward-looking statements” of the Company. The information contained herein is subject to various risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such forward-looking statements or paragraphs, many of which are outside the control of the Company. These uncertainties and other factors include the success of the Company’s global expansion initiatives and product diversification, the Company’s actual future ownership stake in future therapies emerging from its collaborative research partnerships, the success related to its IP portfolio, the Company’s future competitive position in stem cell innovation, future success of its core business and the competitive impact of public cord blood banking on the Company’s business, the Company’s ability to minimize future costs to the Company related to R&D initiatives and collaborations and the success of such initiatives and collaborations, the success and enforceability of the Company’s menstrual stem cell technology license agreements and umbilical cord blood license agreements and their ability to provide the Company with royalty fees, the ability of the reproductive tissue storage to generate new revenues for the Company and those risks and uncertainties contained in risk factors described in documents the Company files from time to time with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K filed by the Company. The Company disclaims any obligations to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.

Contact:         
                                                                                    
David Portnoy, Chairman and Co-CEO
Cryo-Cell International, Inc.
813-749-2100
dportnoy@cryo-cell.com