Cord Blood America Announces First Quarter Financial Results
LAS VEGAS, May 21, 2012 /PRNewswire/ -- Cord Blood America, Inc. (www.cordblood-america.com) (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells to families nationwide and internationally, today announced that revenues for the first quarter of 2012 increased by 6.7% to $1.55 million compared to $1.45 in the same period last year. The Company announced a gross profit of $1.12 million in the first quarter of 2012, an increase of 13.6% compared to the same period of 2011. The Company's loss from operations narrowed to $0.26 million from a prior year period of $1.43 million, a decrease of 81%.
"Today's results serve as a baseline by which to benchmark our performance in the quarters ahead," said newly appointed President Joseph Vicente. "Management understands that it will be held accountable to improve upon these results. We need to build shareholder value," Mr. Vicente said.
Mr. Vicente broke down further key financial metrics for the Quarter:
- Revenues increased moderately by 6.7%. He said that in 2011, the larger quarter over quarter increases reported were primarily driven by the full impact of two acquisitions being consolidated into the financials. Going forward, the revenues will more clearly indicate the Company's organic growth rate.
- Gross profit continues to be a strength of the Company with its gross margin up over 72%. We are pleased with the overall efficiency with our laboratory operations. We know that capacity remains with our laboratory and we will focus on quality enhancements to further leverage that capacity.
- The Company's loss from operations was reduced by approximately $1.2 million from the first quarter of 2011 to the first quarter of 2012. It is important to note this number does include depreciation and amortization, as well as some interest income. We are concentrating on a positive EBITDA performance for our operations, as we believe it is a critical component to creating company value. We will be disciplined with each dollar spent. We will not be biased to post growth just for growth. As we dissect the business, we always will assess the cost to obtain an additional dollar of revenue.
Finally, we continue to assess our approximately $2.3 million in existing principal debt versus an outstanding share count that has reached the ceiling of the authorized. We are exploring different alternatives. We recognize that in light of these debt obligations the cash value from the reoccurring sample base alone should provide more than ample coverage, thus providing us the opportunity to execute a viable business strategy.
"The next 90-120 days will be very tactical as we evaluate each and every segment of the business, with the goal of ensuring a financially sound footprint, along with a stable platform to grow. We remain excited about the possibilities, but we also understand this enthusiasm will only carry momentum with positive results," Mr. Vicente said.
Cord Blood America
Cord Blood America is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. 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., visit our website at www.corcell.com. For investor information, visit www.cordblood-america.com.
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 the 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.
CONTACT: Paul Knopick
E & E Communications
SOURCE Cord Blood America, Inc.