Aurora Spine Corporation Files Condensed Consolidated Financial Statements for the Three and Six Months Ended June 30, 2018
August 27 2018 - 7:00AM
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER
UNITED STATES WIRE SERVICES
Aurora Spine Corporation (“Aurora Spine” or the “Company”) (TSXV:
ASG) announces financial results for the Second Quarter, 2018. All
figures are in U.S. dollars.
To our Shareholders:
The second quarter of 2018 was an outstanding
quarter. We achieved our highest quarterly revenue ever resulting
in record cash flow. Combined with our cost reductions to our
operating expenses, the new revenue levels have delivered a
breakthrough to positive net income for the company, driving our
growing confidence in the bright future for Aurora Spine. We are
very pleased with the strong sales of our expanding product
portfolio, and more importantly, the level of adoption we are
seeing by surgeons in surgery centers, and hospital systems
nationwide. The synergy of our product portfolio and
outcome-focused innovation is expected to provide a powerful
platform for our future growth.
Highlights:
- Record Revenues –
During the quarter, we generated more than $2.0 million in
revenues, an increase of over $566k or 39% as compared to Q2
2017.
- Gross Profit and Margin
Rises - Gross profit was more than $1.1 million, up over
$397k over the comparable quarter last year. Gross margin as a
percentage of sales also rose to 56.2% as compared to 50.6% in the
comparable quarter last year.
- Positive Cash Flow
– EBITDAC was over $298k for the quarter. This is an
improvement of almost $488k from the comparable quarter last year
and an improvement of more than $225k from Q1 2018 which was the
Company’s first positive cash flow quarter.
- Operating Expenses Lowered
– Total operating expense for the quarter was $1.1 million
or 54.6% of revenue. This compares favorably with an expense margin
of 82.3% from Q2 of last year.
- Canadian Milestone
- On July 9, 2018 the company announced the 100th surgical
implantation of its ZIP ULTRA® minimally invasive interspinous
device in Canada.
SELECTED BALANCE SHEET INFORMATION
The following table summarizes selected key financial data.
As at |
June 30, 2018$ |
December 31, 2017$ |
December 31, 2016$ |
Cash |
224,709 |
12,665 |
192,842 |
Trade receivables |
1,603,919 |
811,491 |
1,228,553 |
Prepaid expenses and deposits |
225,776 |
471,859 |
318,386 |
Inventory |
2,334,789 |
2,462,509 |
2,996,940 |
Current assets |
4,389,193 |
3,758,524 |
4,736,721 |
Intangible assets |
256,940 |
264,247 |
210,966 |
Property and equipment |
1,135,703 |
1,265,720 |
2,095,565 |
Total assets |
5,781,836 |
5,288,491 |
7,043,252 |
Current liabilities |
1,550,776 |
1,735,108 |
2,400,196 |
Long-term liabilities |
1,959,000 |
1,902,000 |
1,172,963 |
SELECTED QUARTERLY INFORMATION
Operating results for each quarter for the last two fiscal years
are presented in the table below.
Quarters ended |
June30,
2018$ |
March31, 2018$ |
December31,2017$ |
September30, 2017$ |
June30,
2017$ |
March31, 2017$ |
December31, 2016$ |
September30, 2016$ |
Revenue |
2,002,101 |
|
1,503,297 |
|
1,349,975 |
|
1,676,738 |
|
1,436,024 |
|
1,526,377 |
|
1,688,582 |
|
1,625,676 |
|
Cost of goods sold |
(877,746 |
) |
(626,453 |
) |
(1,017,320 |
) |
(970,801 |
) |
(709,060 |
) |
(732,704 |
) |
(879,751 |
) |
(826,949 |
) |
Gross profit |
1,124,355 |
|
876,844 |
|
332,655 |
|
705,937 |
|
726,964 |
|
793,673 |
|
808,831 |
|
798,727 |
|
Operating expenses |
1,083,310* |
1,036,527* |
1,230,740* |
1,034,319 |
|
1,183,085 |
|
1,351,436* |
1,503,071 |
|
1,321,734 |
|
EBITDAC** |
298,579 |
|
72,977 |
|
(649,335 |
) |
(100,022 |
) |
(189,391 |
) |
(341,556 |
) |
(571,566 |
) |
(224,935 |
) |
Net income (loss) |
41,045 |
|
(159,683 |
) |
(898,085 |
) |
(328,382 |
) |
(456,121 |
) |
(557,763 |
) |
(694,240 |
) |
(523,007 |
) |
Basic and diluted income (loss) per share |
0.01 |
|
(0.01 |
) |
(0.02 |
) |
(0.01 |
) |
(0.01 |
) |
(0.02 |
) |
(0.02 |
) |
(0.02 |
) |
* Adjusted by gain on sale of
property and equipment.** EBITDAC - a non GAAP,
non IFRS measure defined as Earnings before Interest, Tax,
Depreciation, Amortization and Stock based Compensation.
Additionally, this amount is adjusted by gain on sale of property
and equipment.
We are pleased that our efforts are beginning to
create value for our shareholders. Strong cash flow from
operations will help us to further expand sales, move new products
through our development group and help support and assist our
service levels to our surgeons. We are grateful for their
ongoing support of our company and our mission of improving the
lives of patients with debilitating spine issues.
The statements together with the Management Discussion and
Analysis can be found on SEDAR at www.sedar.com.
Trent J. NorthcuttPresident and Chief Executive
Officer
About Aurora Spine Aurora Spine
is an early stage company focused on bringing new solutions to the
spinal implant market through a series of screwless, innovative,
minimally invasive, regenerative spinal implant technologies.
Aurora Spine continues to position itself at the forefront of
spinal surgery procedures, focusing on minimally invasive spine
surgery technologies. Aurora Spine is changing spine surgery by
focusing on disruptive technologies following the Company's
commitment to - Simplifying the Complex.
Forward-Looking StatementsThis
news release contains forward-looking information that involves
substantial known and unknown risks and uncertainties, most of
which are beyond the control of Aurora Spine, including, without
limitation, those listed under "Risk Factors" and "Cautionary
Statement Regarding Forward-Looking Information" in Aurora Spine's
final prospectus (collectively, "forward-looking information").
Forward-looking information in this news release includes
information concerning the proposed use and success of the
company’s products in surgical procedures. Aurora Spine cautions
investors of Aurora Spine's securities about important factors that
could cause Aurora Spine's actual results to differ materially from
those projected in any forward-looking statements included in this
news release. Any statements that express, or involve discussions
as to, expectations, beliefs, plans, objectives, assumptions or
future events or performance are not historical facts and may be
forward-looking and may involve estimates, assumptions and
uncertainties which could cause actual results or outcomes to
differ unilaterally from those expressed in such forward-looking
statements. No assurance can be given that the expectations set out
herein will prove to be correct and, accordingly, prospective
investors should not place undue reliance on these forward looking
statements. These statements speak only as of the date of this
press release and Aurora Spine does not assume any obligation to
update or revise them to reflect new events or circumstances.
For more information, please
contact:
Aurora Spine Corporation Trent
Northcutt
President and Chief Executive
Officer
(760) 424-2004
www.aurora-spine.com
Sarina MasonChief Financial Officer(760)
424-2004
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