Cord Blood America Announces 2013 Second Quarter Financial Results
August 15 2013 - 9:01PM
PR Newswire (US)
LAS
VEGAS, Aug. 15,
2013 /PRNewswire/ - Cord Blood America, Inc.
(www.cordblood-america.com) (OTC Bulletin Board: CBAI) ("CBAI" or the
"Company") today announced financial results for the quarter
ended June 30, 2013.
Second Quarter 2013 Highlights from
Continuing Operations
• Recurring revenues increased
approximately 6% for the three months ended June 30, 2013 to
$735,705 from a year ago period.
• Cash provided by operations
totaled $215,765 in the second quarter. This combined with
the $128,970 generated in the first quarter totals $345,735 for the
first six months and represents and 82% increase of the total full
year cash generated in 2012 of $190,323.
• SG&A decreased 4% to $1.17
million from $1.22 million in the year ago period.
• Cash balance increased
$219,204 from the beginning of 2013 to $613,036 or 56%
"Second quarter financial results were
negatively impacted by a currency exchange rate adjustment of 17%
from Biocordcell Argentina (Bio) revenues compared to the year ago
period, and additional customer discounts on enrollment and
processing fees. With these changes, Bio continues to run a
strong second in market share throughout Argentina," said Joseph Vicente, President of
CBAI. While margins have been impacted, the
number of cord blood samples processed remains consistent from a
year over year period, and considering pure volume, Bio is building
significant future cash flows and protecting their market
leadership position. Bio is now at a key inflection point on
a stand-alone basis where incremental storage customers drop a
significantly higher percentage of profit to the bottom line.
This allows us to maintain our position as an industry leader and
the ability to match pricing fluctuations while maintaining
profitability on new customers. This is important as we continue to
build stability to the underlying business model with approximately
50% of the total revenues, or $735,505 in the second quarter, generated
from recurring revenues. Additionally, here in the US,
with the announcement in May of our new cord tissue offering, early
indications show an adoption rate for both cord blood and cord
tissue of approximately 50%, which incrementally increases storage
revenues by over 50% and a positive indicator for future recurring
revenue growth.
For
the three months ended June 30,
2013, total revenue decreased to
approximately $1.49
million from $1.70
million. Recurring revenue increased approximately 6%
from the year ago period.
Administrative and selling expenses for the
three months ended June 30,
2013 were $1.17
million as compared to $1.22 million for the comparative period of
2012 representing a 4% decrease. These expenses are primarily
related to marketing/advertising, professional services, allocated
facility related expenses and wages for personnel. The Company
continues to evaluate its expenses and their relationship to
revenues for alignment. Depreciation and amortization are included
as an administrative expense. For the three month period
ending June 30,
2013 and June 30,
2012, depreciation and amortization was
approximately $0.19
million. For the period ending June 30, 2013, the company had $0.61 million in cash, an increase of 56%
from $0.39
million at December 31,
2012. The Company currently collects cash receipts from
operations through Cord and its subsidiary, Bio-cells. During the
six month period ended June 30,
2013 there was no increase in notes payable for
purposes of working capital or investment in affiliate companies
and represents 5 consecutive quarters without external financing.
Net cash provided by operating activities for the six month period
ending June 30,
2013 was$0.35 million,
versus a net use of cash of $0.18
million from the prior comparative period of 2012, an
improvement of $0.53
million or 288%.
About Cord Blood America
Cord Blood America, Inc. is the parent company
of CorCell, Companies, Inc. which, along with Cord Blood America,
Inc., facilitates umbilical cord blood and cord tissue stem cell
preservation for expectant parents and their children.
Collected through a safe and non-invasive process, cord blood stem
cells offer a powerful and potentially life-saving resource for
treating a growing number of ailments, including cancer, leukemia,
blood, and immune disorders. To find out more about Cord Blood
America, Inc. and CorCell Companies, Inc., visit our
websites: http://www.cordblood-america.com/ for
investor information and http://www.corcell.com/ for customer information.
Forward-Looking Statements
Some statements made in this press release are
forward-looking statements, which are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. We use words such as "anticipate," "believe," "expect,''
"future," "intend," "plan," and similar expressions to identify
forward-looking statements. These statements including those
related to the growth of the industry, new stem cell treatments,
and Cord Blood America's performance, are only predictions and are
subject to certain risks, uncertainties and assumptions. Additional
risks are identified and described in the Company's public filings
with the Securities and Exchange Commission. Statements made herein
are as of the date of this press release and should not be relied
upon as of any subsequent date. The Company's past performance is
not necessarily indicative of its future performance. The Company
does not undertake, and the Company specifically disclaims any
obligation to update an y forward-looking statements to reflect
occurrences, developments, events, or circumstances after the date
of such statement.
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