Aurora Spine Corporation (“Aurora Spine” or the “Company”) (TSXV:
ASG) (OTCQB: ASAPF), a leader in spine and interventional spine
technology that improves spinal surgery outcomes, today announced
its financial results for second quarter ended June 30, 2024.
All figures are in U.S. dollars.
Financial and Business Highlights
- Continued Positive
EBITDAC – Q2 2024 EBITDAC was $105,522 as compared to
($163,660) in Q2 2023, an improvement of $269,182. This marks the
fourth consecutive quarter of positive EBITDAC, underscoring Aurora
Spine’s consistent profitability.
- Robust Sales
Growth – Q2 2024 sales of $4,079,543, represents an
Increase of $510,960 or 14.3% compared to sales of $3,568,583 in
the same period the previous year. This growth reflects the strong
market demand for Aurora’s advanced spine solutions, leading to the
third consecutive quarter surpassing $4 million in revenue.
- Enhanced Profit
Margins – Gross margin of 62.4% in the current period is a
5.5% increase over the 56.9% gross margin in the comparable period
of the previous year. Margin growth is driven by sales of higher
margin implants and decreased distributor commissions as a
percentage of sales offset by higher royalty and shipping
costs.
- Surge in SiLO sales
– The SiLO-TFX SI joint implant and SiLO allograft implant
generated $1.7 million in sales, accounting for 41.7% of total Q2
revenue. This is a significant jump from the 22.3% or $795K
contribution in Q2 2023. Notably, SiLO-TFX sales grew by 20.4% from
Q1 2024 to Q2 2024, reflecting the success of Aurora’s expansion
into the pain management market.
- Zip 51 Sales Double
– Sales of the ZIP 51 implant nearly doubled, reaching
$669,316 in Q2 2024 compared to $345,505 in Q2 2023, an impressive
93.7% increase. The robust growth is attributed to intensified
marketing efforts and increased adoption among surgeons.
- Expanding Sales Force
– Aurora continued to scale its sales team throughout Q2,
directly contributing to the sales surge. The addition of new sales
professionals is expected to further drive growth as they onboard
more surgeons into Aurora’s ecosystem.
- Advanced Training
Initiatives – The Company maintained its commitment to
excellence by conducting advanced training sessions and cadaver
labs for top orthopedic, neurosurgical, and pain management
physicians, showcasing the clinical advantages of the ZIP™ and
SiLO™ implants.
Management Commentary
Trent Northcutt, Chief Executive Officer of
Aurora Spine, commented, “The second quarter of 2024 was a pivotal
period for Aurora, with notable progress in both our financial
performance and market penetration. Our strategic focus on
expanding the sales force and targeting underserved markets has
yielded strong results, as evidenced by our significant sales
growth and improved profitability. We remain dedicated to pushing
the boundaries of spinal technology, delivering superior clinical
outcomes, and driving sustained financial success for our
stakeholders.”
Financial Results
Revenue Growth: Total revenues
for Q2 2024 reached $4.02 million, marking a 14.3% increase
compared to $3.66 million in Q2 2023. The quarter benefited from
strong demand in the pain management sector, particularly for the
SiLO TFX and ZIP 51 implants, driven by targeted marketing,
training, and product innovation.
Gross Margin
Expansion: Gross margins improved to 62.4% in Q2
2024, up from 56.9% in the same period last year. The margin
improvement is a direct result of the increased sales of
proprietary products with higher profitability, particularly in
markets with favorable pricing dynamics like ambulatory surgery
centers.
Operating
Expenses: Operating expenses for Q2 2024 were $2.74
million, up from $2.51 million in Q2 2023. The rise in expenses was
primarily due to increased salary and travel costs associated with
expanding the sales force, partially offset by reductions in
research and development and professional fees.
EBITDAC
Improvement: EBITDAC (a non-GAAP figure non IFRS
measure defined as Earnings before Interest, Tax, Depreciation,
Amortization and Stock based compensation) was $0.11 million,
compared to a loss of $(0.16) million in Q2 2023. This improvement
highlights Aurora’s ability to enhance profitability through
efficient operations and a focus on high-margin product lines.
Reduced Net Loss: The
Company reported a net loss of $(0.154) million for Q2 2024,
significantly narrowing from a net loss of $(0.482) million in Q2
2023. Basic and diluted net loss per share improved to $(0.00) in
Q2 2024 from $(0.01) in Q2 2023.
Full financial statements can be found on SEDAR at
(www.sedarplus.ca).
SELECTED STATEMENT OF FINANCIAL POSITION
INFORMATION
The following table summarizes selected key
financial data.
As at |
June 30, 2024 |
December 31, 2023 |
December 31, 2022 |
|
$ |
$ |
$ |
Cash |
518,546 |
766,829 |
423,401 |
Receivables |
4,215,811 |
3,968,439 |
3,666,310 |
Prepaid and other current assets |
185,106 |
204,173 |
186,800 |
Inventory |
3,587,987 |
3,562,349 |
3,054,173 |
Current assets |
8,507,450 |
8,501,790 |
7,330,684 |
Notes receivable |
465,819 |
454,628 |
- |
Intangible assets |
850,048 |
753,180 |
881,354 |
Property and equipment |
2,167,421 |
2,275,478 |
1,910,940 |
Total assets |
11,990,738 |
11,985,076 |
10,122,978 |
Current liabilities |
3,618,981 |
3,273,058 |
3,029,599 |
Non-current liabilities |
3,448,161 |
3,414,695 |
2,773,919 |
Share capital |
27,657,591 |
27,657,591 |
25,218,093 |
SELECTED QUARTERLY
INFORMATION
The Company’s functional currency is the US
dollar (USD). The functional currency of the Company’s US
subsidiary Aurora is USD.
Operating results for each quarter for the last
two fiscal years are presented in the table below.
Quarters End |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Revenue |
4,079,543 |
|
4,013,801 |
|
4,044,234 |
|
3,949,530 |
|
3,568,583 |
|
2,958,088 |
|
3,609,514 |
|
3,648,680 |
|
Cost of goods sold |
(1,532,173 |
) |
(1,529,538 |
) |
(1,749,216 |
) |
(1,592,530 |
) |
(1,537,410 |
) |
(1,429,987 |
) |
(1,783,881 |
) |
(1,706,677 |
) |
Gross profit |
2,547,370 |
|
2,484,263 |
|
2,295,018 |
|
2,357,000 |
|
2,031,173 |
|
1,528,101 |
|
1,825,632 |
|
1,942,003 |
|
Operating expenses |
2,701,478 |
|
2,751,188 |
|
2,580,613 |
|
2,606,618 |
|
2,513,587 |
|
2,191,039 |
|
2,665,203 |
|
2,057,655 |
|
EBITDAC* |
105,522 |
|
117,171 |
|
109,734 |
|
120,796 |
|
(163,660 |
) |
(377,871 |
) |
(358,311 |
) |
150,687 |
|
Net loss |
(154,108 |
) |
(266,925 |
) |
(285,595 |
) |
(249,618 |
) |
(482,414 |
) |
(662,938 |
) |
(839,570 |
) |
(115,652 |
) |
Basic and diluted loss per share** |
(0.00 |
) |
(0.00 |
) |
(0.00 |
) |
(0.00 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) |
(0.00 |
) |
* EBITDAC is a non-GAAP, non
IFRS measure defined as Earnings before Interest, Tax,
Depreciation, Amortization and Stock based compensation. This
amount includes Gains (losses) on sale of property and equipment
and Other income (expense).** Outstanding options
and warrants have not been included in the calculation of the
diluted loss per share as they would have the effect of being
anti-dilutive.
Second Quarter 2024 Conference Call Details
Date and Time: Friday, August 23, 2024, at
11:00 a.m. ET / 8:00 a.m. PT
Call-in Information: Interested parties can
access the conference call by dialing (844) 861-5497 or (412)
317-5794.
Webcast: Interested parties can access the
conference call via a live webcast, which is available via the
following link: https://app.webinar.net/5xAJmW9XzV6.
Replay: A teleconference replay of the call
will be available until August 30, 2024, at (877) 344-7529 or (412)
317-0088, replay access code 1299715. Additionally, a replay of the
webcast will be available at https://app.webinar.net/5xAJmW9XzV6
for 90 days.
About Aurora Spine
Aurora Spine is focused on bringing new solutions to the spinal
implant market through a series of innovative, minimally invasive,
regenerative spinal implant technologies. Additional information
can be accessed at www.aurora-spine.com or www.aurorapaincare.com.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking Statements This 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.
Contact:
Aurora Spine Corporation
Trent Northcutt President and Chief Executive Officer (760)
424-2004
Chad Clouse Chief Financial Officer (760) 424-2004
www.aurora-spine.com
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