LAS VEGAS, Aug. 14, 2014 /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, 2014.
Second Quarter 2014 Highlights:
- Total revenue increased to approximately $1.54 million from $1.49
million, an increase of 3% over the same period of
2013.
- Cord Blood's US operations saw recurring storage revenues
increase by 12% and tissue related products by 20% for the
comparative year over year three month period.
- Recurring revenues increased approximately 13% for the three
months ended June 30, 2014 to
$858,000 and now represents over 56%
of total revenue.
- The Company announced on June 25,
2014, the launch of a new service offering for the isolation
and expansion of mesenchymal stem cells, one of the fastest growing
areas of stem cell research
- Cash increased 15% to $701,880
compared to $613,036 in the same
period a year ago.
Joseph Vicente, President of Cord
Blood America, Inc. commented "One of the key drivers to our future
success stems from our ability create new revenue streams
while leveraging our existing infrastructure which creates
expanded brand recognition, diversity in our revenue base and the
ability to attract marketing relationships with key healthcare
groups. We have seen this firsthand from our tissue product
launch last year which has increased our average per-customer
recurring storage revenue by over 50%. We expanded on this
initiative further in the second quarter with the launch of another
new service offering for the isolation and expansion of mesenchymal
stem cells, one of the fastest growing areas of stem cell research
and expect this product to further increase our average per-
customer storage fee revenue going forward. In addition
to these recently launched products, we are working to continually
identify new complimentary service offerings to provide our
customers with the best in class product suite."
For the three months ended June 30,
2014, total revenue increased to approximately $1.54 million from $1.49
million, an increase of 3% over the same period of 2013. Per
segment, Cord had an increase of its total revenues of 7%, and Bio
had a decrease in its revenues of 4% over the same period ending
June 30, 2013. Cord's increase
was related to storage revenues increasing by 12% and tissue
related products by 20% for the comparative year over year three
month period. Bio's decrease in revenues were largely
impacted by a year over year adjustment to the currency exchange
rate of approximately 35%, an increase in the discounts provided
for enrollment/processing fees and a decrease in the number
of units processed. The Company remains focused on strategic
organic growth which management hopes will provide sustainable
operating cash flows, and, positive operating and net
income.
Cost of services as a percentage of revenue decreased to 31% for
the period ended June 30, 2014
compared to 32% the same prior period of 2013. Gross profit
increased by approximately $0.05
million or 5% to $1.06 million
for the period ending June 30, 2014
from the prior three month period of 2013. The Company anticipates
that through the growth and expansion of its Cord business, tighter
cost controls and continuing efficiencies in its own facilities,
direct costs should decrease and gross profits should
improve.
Administrative and selling expenses for the three months ended
June 30, 2014 were $1.31 million as compared to $1.17 million for the comparative period of 2013
representing a 12% increase. These expenses are primarily related
to marketing/advertising, professional services, allocated facility
related expenses and wages for personnel. A major contributor
to the increase in administrative and selling expenses were legal
costs associated with the Company's ongoing litigation. 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, 2014 depreciation and
amortization totaled $0.18 million
compared to the three month period of June
30, 2013 of $0.19
million.
The Company's loss from operations was $0.25 million versus an operating loss of
$0.16 million for the comparative
period. The Company's net loss was $0.93 million for the period ended June 30, 2014, an increase of $0.42 million compared to the comparative period
net loss of $0.51 million. The
primary contributor to the increase in the loss of net income in
the comparative period of 2014 versus 2013 was the interest and
derivative liability increasing by $0.38
million.
For the period ending June 30,
2014, the company had $0.70
million in cash, a decrease of 1% from $0.71 million at December
31, 2013. The Company currently collects cash receipts from
operations through Cord and its subsidiary, Bio-cells. During the
six month period ended June 30, 2014
there was no increase in notes payable for purposes of working
capital or investment in affiliate companies. Net cash provided by
operating activities for the six month period ending June 30, 2014 was $0.13
million, versus net cash provided by operating activities of
$0.35 million from the prior
comparative period of 2013. The Company did not have any financing
activities during six month period ending June 30, 2014, and cash flow from operations
continue to be sufficient to fund operations.
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
processing and storage 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 any forward-looking statements to reflect
occurrences, developments, events, or circumstances after the date
of such statement.
Investor Contact:
Cameron Donahue
Hayden IR
(651) 653-1854
cameron@haydenir.com
SOURCE Cord Blood America, Inc.