LAS VEGAS, March 31, 2015 /PRNewswire/ -- Cord Blood
America, Inc. (www.cordblood-america.com) (OTC Bulletin Board:
CBAI) ("CBAI" or the "Company") today announced financial results
for the year ended December 31,
2014.
Fiscal Year 2014 Highlights:
- Revenue for the year increased to $4.33
million from $3.82 million in
2013, an increase of 13%
- Recurring revenues increased approximately 5% to $2.52 million for the year ended December 31, 2014 and now represents over 58% of
total revenue
- Net income was $0.24 million for
the year ended December 31, 2014, an
increase of $2.71 million from an
overall net loss of $2.47 million for
the year ended 2013
- Net cash provided by operating activities for the year ended
December 31, 2014, increased
$1.39 million to $0.78 million or 227% from the prior comparative
period of 2013
Joseph Vicente, President of Cord
Blood America, Inc. commented "2014 saw continuous strides in our
goal to build a scalable platform for growth. Over the past
twelve months, the Company has increased revenues via a more
diversified service offering, sold its equity stake in Bio
increasing overall profitability, negotiated more favorable vendor
relationship agreements and made strategic investments in
technology. In addition, we reached a Settlement Agreement on the
remaining debt obligation of the Company and began making payments
earlier than required. Subsequent to the year, on February 27, 2015, the Company received its
Accreditation from the American Association of Tissue Banks for the
recovery of musculoskeletal tissue for transplantation and/or
educational research. We believe this accreditation is important to
our fastest growing segment, the procurement of birth tissue for
therapeutic and/or research based products which grew 105% during
2014 to $0.80 million."
Results of Operations for the Year Ended December 31, 2014 Compared To the Year Ended
December 31, 2013:
For the year ended December 31,
2014, the Company's total revenue increased to $4.33 million from $3.82
million, over the same period of 2013, an increase of 13%.
New enrollment/processing fees decreased approximately 2% to
$0.98 million while recurring storage
revenues increased approximately 5% to $2.52
million for the year ended December
31, 2014 versus the prior comparative period of December 31, 2013. The slight decrease in
enrollment fees was attributable to increased discounting
associated with initial enrollment fees indicating a more
competitive market. The total number of combined units of cord
blood and cord tissue processed and stored increased year over
year, as indicated by the 5% increase in recurring revenues. The
procurement of birth tissue increased from $0.39 million to $0.80
million in the year over year period of 2013 to 2014, an
increase of 105%. This growth is attributable to an increase in the
demand of birth tissue from an existing relationship, coupled with
an additional procurement agreement in place during the third
quarter of 2014. Cost of services as a percentage of revenue
increased from 29% to 32% for the comparative year ending 2014
versus 2013. The cost of services includes transportation of the
umbilical cord blood, cord tissue and birth tissue from the
hospital, direct material plus labor costs for processing and
cryogenic storage, collection kit materials and allocated rent,
utility and general administrative expenses.
Gross profit increased by approximately $0.23 million or 8% to $2.90 million from year ending 2014 to year
ending 2013. The Company anticipates that through the growth and
expansion of its Cord business, investment in automation, and
continuing efficiencies in its own facilities, direct costs should
decrease and gross profits will improve.
Administrative and selling expenses for the year ended
December 31, 2014 were $3.10 million as compared to $2.91 million for the comparative period of 2013
representing a 7% increase. These expenses are primarily related to
marketing/advertising, professional services, allocated facility,
including utilities, expenses, and wages for personnel. Legal
expenses associated with the Company litigation of St. George and
Tonaquint increased $0.40 million in
the year over year period and were the primary contributor to the
overall increase in administrative and selling expenses.
Depreciation and amortization are included as an administrative
expense.
The Company's income from continuing operations was $0.24 million versus a loss of $2.98 million for the comparative period for the
year ending 2014 to 2013, resulting in an increase of $3.22 million. The primary contributor to this
increase is the one-time gain related the sale of Biocells. The
Company's net income was $0.24
million for the year ended December
31, 2014, an increase of $2.71
million from an overall net loss of $2.47 million for the year ended 2013; again
attributable to the sale of BioCells.
Liquidity and Capital Resources
At December 31, 2014, the company
had $0.75 million in cash, an
increase of $0.04 million or 6% from
the prior comparative period of 2013. Cash flows from operations
are currently sufficient to fund operations as net cash provided by
operating activities for the year ended December 31, 2014, increased $1.39 million to $0.78
million or 227% from the prior comparative period of
2013.
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
|
Web Site: http://www.cordblood-america.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cord-blood-america-announces-2014-full-year-financial-results-300058192.html
SOURCE Cord Blood America, Inc.