LAS VEGAS, May 8, 2015 /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 March 31, 2015 and the results
of the Special Shareholder Meeting.
Results of Special Shareholder Meeting:
- At the May 7th,
2015 special meeting, shareholders approved the increase in
authorized shares.
The Board of Directors set June 9,
2015 as the Record Date for the Company's Annual General
Meeting, To Be Held July 14, 2015, to
Elect Directors, Ratify Auditors and Approve Changes to the
Company's Articles of Incorporation and Bylaws.
First Quarter Highlights Include:
- Revenue increased 39.0% to $1.278
million from $0.920 million in
the same period of 2014.
- Recurring revenues increased approximately 7.0% for the
three months ended March 31, 2015 to
$0.660 million compared to 2014 and
now represent over 51% of total revenue.
- EBITDA was $0.208 million
compared to a loss of $.022 million
in 2014.
Subsequent Event:
- On April 9, 2015 the
Company announced a $0.724 million
preferred equity investment from Red Oak Partners LLC and
affiliates (collectively "Red Oak").
- The proceeds of the Red Oak investment were used to
pre-pay a portion of the Tonaquint debt obligation. The Company's
total debt outstanding is $1.410
million as of April 30,
2015.
David Sandberg, Chairman of Cord
Blood America, Inc. stated, "With the approval of the increase in
authorized shares and the deleveraging of the balance sheet, the
Company now has the ability to invest in growth opportunities that
it previously was unable to capitalize on. We have also
appointed Board committees and approved committee charters, and we
are progressing on other corporate governance improvements.
Lastly, Red Oak's investment has now automatically converted into
common shares equivalent to 29.98% ownership in the Company."
Joseph Vicente, President of Cord
Blood America, Inc. commented, "This was a strong quarter and we
are pleased with the performance of the business. We are
excited about the future."
Results of Operations for the Three-Months March 31, 2015
For the three months ended March 31,
2015, total revenue increased to approximately $1.278 million from $0.920
million, an increase of 39.0% over the same period of 2014.
Processing fees decreased by approximately 14% while recurring
storage fees and the procurement of birth tissue increased
approximately 7% and 494%, respectively, over the prior comparative
three month period. The Company remains focused on strategic growth
which management expects will provide sustainable operating cash
flows and positive operating income.
Gross profit increased by approximately $0.226 million to $0.876
million for the period ending March
31, 2015 from the prior year due to the increase in revenue.
Gross margin decreased from 70.7% to 68.5% year over year due to an
increased percentage of revenue associated with the procurement of
birth tissue which has a lower gross margin.
Administrative and selling expenses for the first quarter were
$0.774 million as compared to
$0.806 million in 2014. These
expenses are primarily related to marketing/advertising,
professional services, allocated facility related expenses, wages
for personnel, and depreciation and amortization.
Net loss was $0.209 million versus
a net loss of $0.437 million in
2014.
EBITDA increased to $0.208 million
from a loss of $0.022 million in
2014. In the first quarter 2014 the Company incurred $154,471 in legal expenses associated with the
St. George and Tonaquint litigation which was settled in 2014.
Non-GAAP Measures
In addition to the GAAP financial measures set forth in this
press release, the Company has included the non-GAAP measurement
EBITDA which presents operating results on a basis adjusted for
depreciation, amortization, interest expense and taxes. The
Company uses this non-GAAP measure as a key performance measure for
the purpose of evaluating performance internally. We also believe
this non-GAAP measure provides our investors with useful
information regarding our operating results. This non-GAAP measure
is not intended to replace the presentation of our financial
results in accordance with GAAP. Use of the term EBITDA may differ
from similar measures reported by other companies.
About Cord Blood America, Inc.
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
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Hayden IR
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(651)
653-1854
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cameron@haydenir.com
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SOURCE Cord Blood America, Inc.