ThermoGenesis Reports Fourth Quarter and Full Fiscal Year 2013 Results

ThermoGenesis Reports Fourth Quarter and Full Fiscal Year 2013 Results

Company Reduces Net Loss and Prepares for Merger With TotipotentRX

RANCHO CORDOVA, Calif., Aug. 29, 2013 (GLOBE NEWSWIRE) -- ThermoGenesis Corp.
(Nasdaq:KOOL) ("ThermoGenesis"), a leading supplier of enabling technologies
for the processing and storage of stem cells and other biological tissues,
today reported financial results for the fourth quarter and year-ended fiscal
2013.

"Fiscal 2013 was a transformative year for ThermoGenesis, punctuated by
several key accomplishments, including the divestiture of our non-core
products, streamlining of our cost infrastructure and improving our market
share within our base business," said Matthew T. Plavan, Chief Executive
Officer of ThermoGenesis. "We believe these accomplishments position us well
for near term stockholder value creation, a key catalyst of which lies in the
future completion of the proposed merger with TotipotentRX ("TotiRX"). By
combining our best-in-class technologies and solutions for the processing,
preparing and preserving of cell-based products with TotiRX's extensive
experience in developing clinically validated therapeutic protocols and cell
therapy kits for major therapeutic areas, we expect the combined company to be
one of the first fully integrated regenerative medicine companies which we
believe substantially enhances the value of our business and will create
greater value for our shareholders."

Mr. Plavan added, "And as for the fourth quarter, ThermoGenesis realized a
number of important milestones, including the successful launch of a bone
marrow transplant program in India and commercial distribution of our AXP
System in China, one of the world's fastest growing cord blood markets."

Fourth Quarter 2013 and Recent Highlights

In July 2013, ThermoGenesis and TotiRX announced signing of a definitive
merger agreement. The combined company is expected to become one of the first
fully integrated regenerative medicine company, developing clinically
validated, commercially scalable, point-of-care cell therapies for major
therapeutic markets, including orthopedic, cardiovascular and neurologic
indications. The combined company is expected to be named Cesca Therapeutics
("Clinical Excellence in Stem Cell Applications") and will continue to trade
on NASDAQ.The merger is expected to close in the fourth quarter of calendar
year 2013 and is subject to customary closing conditions, certain financial
conditions and approval by the stockholders of both companies.

In August 2013, ThermoGenesis, with TotipotentRX, announced the successful
launch of their pediatric bone marrow transplant program at the Fortis-TotiRX
Centre for Cellular Medicine in New Delhi, India. The new program recently
achieved its first 100-day survival milestone following an allogeneic bone
marrow engraftment in a pediatric patient with aplastic anemia using a donor
with ABO-incompatible bone marrow.The successful transplant was performed
using ThermoGenesis' AXP^® AutoXpress^® System ("AXP").

In May 2013, ThermoGenesis announced it received registration approval for AXP
from China's State Food and Drug Administration ("cFDA").Commercial
distribution was launched shortly thereafter in China through the Company's
distribution partnership with Golden Meditech Holdings Limited, a leading
developer of blood-related medical devices.

In the fourth quarter 2013, ThermoGenesis significantly expanded its footprint
and increased its competitive market share in Europe with the announcement of
two new high-value AXP customers.The United Kingdom's ("UK") NHS Blood and
Transplant selected AXP to be implemented in its six cord blood collection
facilities and cord blood bank laboratory through an exclusive 5-year
agreement with ThermoGenesis.The Company also secured an equipment sale for
AXP with Crioestaminal, a leading European cord blood stem cell bank located
in Portugal.

Fourth Quarter 2013 Financial Results

Net revenues for the quarter ended June 30, 2013 were $4.1 million, compared
to $4.5 million for the same period in 2012. The decrease in year-over-year
quarter revenues of $400 thousand was primarily attributable to a decrease in
revenues from our CryoSeal and ThermoLine product lines which were sold in
fiscal 2013 and a decline in the number of AXP disposables sold in our United
States market.

Gross profit for the quarter ended June 30, 2013 was $1.1 million compared to
gross profit of $1.4 million for the same period in 2012.Gross margins
decreased from 32% in the quarter ended June 30, 2012 to 26% for the same
period in 2013. The decrease in gross profit of $360 thousand and related
decrease in gross margins was primarily attributable to a change in mix of
products sold into our geographically diverse global markets. Also, during the
fourth quarter ended June 30, 2013, we recorded a non-cash charge of $164
thousand for the impairment of an intangible asset associated with certain
rights related to our Res-Q product line.

Operating expenses for the quarter ended June 30, 2013 were $3.5 million,
compared to $2.5 million for the same period in 2012.The increase in
operating expenses of $965 thousand was primarily attributable to increases in
legal and professional fees associated with the proposed merger with TotiRX,
legal diligence associated with the Res-Q patent litigation, and costs
associated with establishing sales and distribution channels in Asia.

Net loss for the quarter ended June 30, 2013 was $2.4 million or $0.14 per
share, compared to a net loss of $0.7 million or $0.04 per share for the same
prior year period.

Adjusted EBITDA loss was $1.9 million for the quarter ended June 30, 2013
compared to $0.7 million for the same period in 2012. Adjusted EBITDA loss
increased by $1.2 million compared with the same period in 2012 due to the
decline in revenues associated with a change in the mix of products sold in
our global markets and an increase in legal and professional fees associated
with the proposed merger with TotiRX, legal diligence associated with the
Res-Q patent litigation, and costs associated with establishing sales and
distribution channels in Asia.

ThermoGenesis ended the fourth quarter with $6.9 million in cash compared to
$7.5 million at the end of the third quarter and $7.9 million at the end of
fiscal 2012.The Company's product backlog at the end of the fourth quarter
was $300 thousand.

Full Year Fiscal 2013 Financial Results

Net revenues for the year ended June 30, 2013 were $18 million, a decrease of
$1.0 million, or 5%, from $19.0 million for the same period in 2012.Revenues
decreased due to the divestiture of our CryoSeal and ThermoLine product lines
during fiscal 2013.These two non-core product lines represented $2.2 million
in revenues for the year ended June 30, 2012, compared to $944 thousand for
the year ended June 30, 2013.This decrease was partially offset by an
increase of $403,000 in revenues from Res-Q disposables as a result of an
increase in the number of bone marrow procedures and an increase in new
customers.

Gross profit for the year ended June 30, 2013 was $6.4 million, compared to
$6.3 million for the same period of 2012. Gross margins increased from 33% for
fiscal 2012 to 35% for fiscal 2013. The increase in gross profit of
approximately $100 thousand and related increase in gross margins for the year
ended June 30, 2013, is primarily due to lower inventory reserves and a change
in the mix of products sold in the current fiscal year resulting from the sale
of the CryoSeal and ThermoLine product lines.

Operating expenses for the year ended June 30, 2013, were $9.4 million,
compared to $11.7 million for the same period in 2012.The decrease in
operating expenses of $2.3 million was primarily due to lower personnel costs
resulting from the January 2012 restructuring, lower costs for clinical
studies and a gain on the sale of our two non-core product lines.The
decreases were offset by increases in legal and professional fees associated
with the proposed merger with TotiRX , legal diligence associated with the
Res-Q patent litigation, and costs associated with establishing sales and
distribution channels in Asia.

Adjusted EBITDA loss was $4.0 million for the year ended June 30, 2013,
compared to $4.0 million for the same period in 2012. The adjusted EBITDA loss
was consistent with the prior year as we offset a decrease in revenues from a
change in the mix of products sold in our global markets with a decrease in
expenses resulting from our cost reduction initiatives.

Net loss for the year ended June 30, 2013 was $3.1 million or $0.19 per share,
compared to a net loss of $5.0 million or $0.30 per share for the same prior
year period.

Conference Call and Webcast

Management will hold a conference call today at 2:00pm Pacific (5:00pm
Eastern) to review the fourth quarter and full year fiscal 2013 financial
results.

Conference call details:   
                          
Dial-in (U.S.):            1-800-860-2442
Dial-in (Internationally): 1-412-858-4600
Conference Name:           "ThermoGenesis"

To listen to the audio webcast of the call during or after the event, please
visit

http://www.thermogenesis.com/company/investor-relations/webcasts-calls/

An audio replay of the conference call will be available beginning
approximately two hours after completion of the call for the following five
business days.

To access the replay:           
                               
Access number (U.S.):           1-877-344-7529
Access number (Internationally) 1-412-317-0088
Conference ID#:                 385107

About ThermoGenesis Corp.

ThermoGenesis Corp. (www.thermogenesis.com) is a leader in developing and
manufacturing automated blood and bone marrow processing systems and companion
disposable products that enable the separation, processing and preservation of
cell and tissue therapy products. These include:

  *The BioArchive^® System, an automated cryogenic device, used by cord blood
    stem cell banks in more than 30 countries for cryopreserving and archiving
    cord blood stem cell units for transplant.
    
  *AXP^® AutoXpress^® Platform (AXP), a proprietary family of automated
    devices that includes the AXP and the MXP^® MarrowXpress^® and companion
    sterile blood processing disposables for harvesting stem cells in closed
    systems. The AXP device is used for the processing of cord blood. The MXP
    is used for the preparation of cell concentrates, including stem cells
    from bone marrow aspirates in the laboratory setting.
    
  *The Res-Q^TM 60 (Res-Q), a point-of-care system designed for the
    preparation of cell concentrates, including stem cells, from bone marrow
    aspirates and whole blood for platelet rich plasma (PRP).

Forward Looking Statement

This press release contains forward-looking statements. Such forward-looking
statements include but are not limited to that TotiRX and ThermoGenesis will
provide unmatched world-class capability and service to their clients and that
the proposed merger will be completed. These statements involve risks and
uncertainties that could cause actual outcomes to differ materially from those
contemplated by the forward-looking statements.A more complete description of
risks that could cause actual events to differ from the outcomes predicted by
ThermoGenesis forward-looking statements is set forth under the caption "Risk
Factors" in its annual report on Form 10-K and other reports we file with the
Securities and Exchange Commission from time to time, and you should consider
each of those factors when evaluating the forward-looking statements.

Non-Solicitation

This press release and the information contained herein shall not constitute
an offer to sell, buy or exchange or the solicitation of an offer to sell, buy
or exchange any securities, nor shall there be any sale, purchase or exchange
of securities in any jurisdiction in which such offer, solicitation, sale,
purchase or exchange would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction.No offer of securities
shall be made except by means of a prospectus meeting the requirements of
Section 10 of the Securities Act of 1933, as amended.

Additional Information

In connection with the merger, ThermoGenesis intends to file a registration
statement (including a prospectus) on Form S-4 with the Securities and
Exchange Commission.Holders of TotipotentRX Corporation Common Stock are
urged to read the proxy statement/prospectus and any other relevant documents
when filed because they contain important information about ThermoGenesis and
the merger.A proxy statement will be sent to holders of our Common Stock and
a proxy statement/prospectus will be sent to holders of TotipotentRX
Corporation common stock.When filed, the proxy statement/prospectus and other
documents relating to the proposed merger can be obtained free of charge from
the SEC's website at www.sec.gov. These documents can also be obtained free of
charge from ThermoGenesis upon written request to ThermoGenesis Corporation,
Investor Relations, 2711 Citrus Road Rancho Cordova, CA 95742.

THERMOGENESIS CORP.
Condensed Consolidated Balance Sheets
(Unaudited)
                                    
                         June 30,   June 30,
                         2013        2012
ASSETS                               
Current assets:                      
Cash and cash equivalents $6,884,000  $7,879,000
Accounts receivable, net  4,898,000   4,558,000
Inventories               4,259,000   6,290,000
Other current assets      232,000     338,000
                                    
Total current assets      16,273,000  19,065,000
                                    
Equipment, net            2,208,000   1,652,000
Intangible asset          --          315,000
Other assets              48,000      48,000
                                    
                         $18,529,000 $21,080,000
                                    
LIABILITIES AND STOCKHOLDERS' EQUITY
                                    
Current liabilities:                 
Accounts payable          $3,106,000  $2,772,000
Other current liabilities 2,042,000   2,259,000
                                    
Total current liabilities 5,148,000   5,031,000
                                    
Long-term liabilities     63,000      151,000
                                    
Stockholders' equity      13,318,000  15,898,000
                                    
                         $18,529,000 $21,080,000


THERMOGENESIS CORP.
Condensed Consolidated Statements of Operations
(Unaudited)
                                                              
                            Three Months Ended      Year Ended
                            June 30,                June 30,
                            2013         2012       2013         2012
Net revenues                 $4,147,000   $4,481,000 $17,963,000  $19,023,000
                                                              
Cost of revenues             3,058,000    3,032,000  11,598,000   12,690,000
                                                              
Gross profit                 1,089,000    1,449,000  6,365,000    6,333,000
                                                              
Expenses:                                                      
Sales and marketing          831,000      804,000    2,955,000    2,761,000
                                                              
Research and development     781,000      810,000    2,991,000    3,729,000
                                                              
General and administrative   1,855,000    888,000    5,645,000    5,222,000
                                                              
Gain on sale of product      --           --         (2,161,000)  --
lines
                                                              
                                                              
Total operating expenses     3,467,000    2,502,000  9,430,000    11,712,000
                                                              
Interest and other income,   (19,000)     315,000    (21,000)     393,000
net
                                                              
Net loss                     ($2,397,000) ($738,000) ($3,086,000) ($4,986,000)
                                                              
Basic and diluted net loss   ($0.14)      ($0.04)    ($0.19)      ($0.30)
per common share
                                                              
Shares used in computing per 16,541,926   16,408,599 16,526,578   16,389,008
share data


THERMOGENESIS CORP.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
                                                                
                                                                
                                                    Year Ended
                                                    June 30,
                                                    2013         2012
Cash flows from operating activities:                            
Net loss                                             ($3,086,000) ($4,986,000)
Adjustments to reconcile net loss to net cash used               
in operating activities:
Depreciation and amortization                        538,000      604,000
Stock based compensation expense                     563,000      791,000
Loss on sale/retirement of equipment                 25,000       17,000
Impairment on intangible asset                       164,000      --
Gain on sale of product lines                        (2,161,000)  --
                                                                
Net change in operating assets and liabilities:                  
Accounts receivable, net                             (340,000)    (655,000)
Inventories                                          795,000      120,000
Prepaid expenses and other current assets            106,000      (38,000)
Other assets                                         --           1,000
Accounts payable                                     619,000      696,000
Accrued payroll and related expenses                 (130,000)    223,000
Deferred revenue                                     (47,000)     2,000
Other liabilities                                    (128,000)    (660,000)
Net cash used in operating activities                (3,082,000)  (3,885,000)
                                                                
Cash flows from investing activities:                            
Capital expenditures                                 (391,000)    (545,000)
Proceeds from sale of product lines                  2,535,000    --
Net cash (used in)/provided by investing activities: 2,144,000    (545,000)
                                                                
Cash flows from financing activities:                            
Repurchase of common stock                           (57,000)     --
Exercise of stock options                            --           --
Issuance of common stock                             --           --
Payments on capital lease obligations                --           --
Net cash (used in)/provided by financing activities  (57,000)     --
Net increase/(decrease) in cash and cash equivalents (995,000)    (4,430,000)
Cash and cash equivalents at beginning of period     7,879,000)   12,309,000
Cash and cash equivalents at end of period           $6,884,000   $7,879,000


THERMOGENESIS CORP.
Adjusted EBITDA
(Unaudited)
                                                              
                          Three Months Ended        Year Ended
                          June 30,                  June 30,
                          2013         2012         2013         2012
Loss from operations       ($2,378,000) ($1,053,000) ($3,065,000) ($5,379,000)
                                                              
Add (subtract):                                                
Depreciation and           138,000      216,000      538,000      604,000
amortization
Stock-based compensation   153,000      140,000      563,000      791,000
expense
Impairment of intangible   164,000      --           164,000      --
asset
Gain on sale of product    --           --           (2,161,000)  --
lines
Adjusted EBITDA            ($1,923,000) ($697,000)   ($3,961,000) ($3,984,000)

CONTACT: Investor Relations
         +1-916-858-5107, or
         Email: ir@thermogenesis.com
         Web site: http://www.thermogenesis.com

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