LAS VEGAS, Nov. 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 third quarter ended September 30,
2014.
Third Quarter 2014 Highlights:
- On September 29, 2014, the
Company sold its ownership stake in BioCells for $705,000. Continuing operations reflects the
exclusion of BioCells operations.
- Revenue from continuing operations increased 25% to
$1.2 million from $.96 million in the same period of 2013.
- Recurring revenues from continuing operations increased
approximately 5% for the three months ended September 30, 2014 to $.63
million compared to the prior year period and now represents
over 53% of total revenue.
- Net income from continuing operations increased by $1.13 million to $0.54
million versus an operating loss of $0.59 million for the comparative three month
period.
- Cash at the end of the third quarter totaled $.70 million, up 17% from $.60 million at the end of the third quarter
2013.
Joseph Vicente, President of Cord
Blood America, Inc. commented, "We made the decision to divest our
BioCells subsidiary during the third quarter of 2014, and our
positive financial results from continuing operations validate this
decision with the tangible impact it has had increasing our
profitability. It has also allowed us to focus on the areas of
profitable growth in our domestic Cord operations from enrollment
fees, recurring storage revenue across multiple products and tissue
related product sales where we saw an increase of over 180% in the
third quarter from the year ago period. We believe we have
positioned the company to have a significantly broader product base
diversifying our revenue. We have also been able to ramp our
sales and marketing efforts to support this product base, and are
excited about the opportunities this has already culminated in for
the company which we look forward to updating the investment
community on as they progress."
When reviewing the Results of Operations for both the Three
and Nine Months Ended September 30,
2014, the results are on a consolidated basis and continuing
operations which reflect our business going forward will be
referenced as "Cord". A full breakdown of consolidated financial
results, discontinued operations and continuing operations can be
found in our 10-Q.
Results of Operations for the Three-Months Ended September 30, 2014
For the three months ended September 30,
2014, total revenue decreased to approximately $1.20 million from $1.49
million, a decrease over the same period of 2013 related to
the sale of Bio.
For Cord, there was an increase in its total revenues from
$0.96 million to $1.20 million, or a 25% increase over the prior
comparative three month period. Processing fees, recurring storage
fees and tissue related product sales increased 5%, 5% and 187%
respectively over the prior comparative three month period. The
Company remains focused on strategic organic growth which
management hopes will provide sustainable operating cash flows and
positive operating income.
Gross profit decreased by approximately $0.24 million to $0.77
million for the period ending September 30, 2014 from the prior three month
period of 2013.
For Cord, gross profit increased from $0.68 million to $0.78
million, or 14%, for the comparative three month period. 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
September 30, 2014 were $0.75 million as compared to $1.27 million for the comparative period of 2013.
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.
The Company's net income from operations was $0.54 million versus an operating loss of
$0.59 million for the comparative
three month period.
The Company's net income was $1.51
million for the period ended September 30, 2014 compared to the comparative
three month period net loss of $0.59
million. This increase in net income was related to a one
time gain from discontinued operations associated with the BioCells
sale of $966,712.
Results of Operations for the Nine-Months Ended September 30, 2014
For the nine months ended September 30,
2014, the Company's total revenue decreased to approximately
$3.13 million from $4.43 million over the same period of 2013 due to
the sale of Bio. Revenues are generated primarily from new
enrollment/processing fees, recurring storage fees and tissue
related product sales.
For Cord, there was an increase in its total revenues from
$2.82 million to $3.14 million, or a 10% increase over the prior
comparative nine month period. Processing fees decreased less than
1% while recurring storage fees increased 7% and tissue related
product sales increased 61% over the prior comparative nine month
period. Gross profit decreased by approximately $0.83 million to $2.15
million from the prior comparative nine month period.
For Cord, gross profit increased from $2.08 million to $2.15
million, or 4%, for the comparative nine month period. 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 nine months ended
September 30, 2014 were $2.41 million as compared to $3.54 million for the comparative period of 2013.
These expenses are primarily related to marketing/advertising,
professional services, allocated facility, including utilities,
expenses, and wages for personnel. Depreciation and amortization
are included as an administrative expense. For the nine month
period, depreciation and amortization was $0.40 million versus $0.54
million for the prior comparative period of 2013.
The Company's loss from operations was $0.55 million versus an operating loss of
$1.69 million for the comparative
nine month period.
The Company's net income was $0.22
million for the period ended September 30, 2014 compared to the comparative
period net loss of $1.41 million.
This increase in net income was related to a one time gain from
discontinued operations associated with the BioCells sale of
$766,995.
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:
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Cameron
Donahue
|
|
Hayden IR
|
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(651)
653-1854
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cameron@haydenir.com
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Web Site: http://www.cordblood-america.com
SOURCE Cord Blood America, Inc.