LAS VEGAS, Aug. 14, 2015 /PRNewswire/ -- Cord Blood America, Inc. (www.cordblood-america.com) (OTC Bulletin Board: CBAI) ("CBAI" or the "Company") today announced financial results for the second quarter ended June 30, 2015.
Second Quarter Highlights Include:
- Revenue increased 39.0% to $1.41 million from $1.02 million in the same period of 2014.
- Recurring revenues increased to $0.66 million and now represents over 46% of total revenue.
- EBITDA was $0.13 million compared to $0.02 million in 2014.
- Operating Income increased to $0.03 million versus a loss of $0.11 million for the three month comparative period of 2015 from 2014.
- Principal debt balance was reduced by 36% during the quarter with the prepayment of $750,000.
Joseph Vicente, President of Cord Blood America, Inc. commented, "Our second quarter results reflect a continuation of strong top line growth which has increased 39% year-to-date and steady improvement to our balance sheet. This growth has been driven by the continued evolution and expansion of our product offerings while continuing to layer our recurring storage revenue. "
Results of Operations for the Three-Months June 30, 2015
For the three months ended June 30, 2015, total revenue increased to approximately $1.41 million from $1.02 million, an increase of 39% over the same period of 2014. Revenues are generated primarily from three sources; new enrollment/processing fees, recurring storage fees (both cord blood and cord tissue) and fees associated with other tissue related products. The increase in revenue is due to growth in recurring storage fees and fees from other tissue related products. For the three months ended June 30, 2015, recurring revenues accounted for 47% of total revenues.
Cost of services as a percentage of revenue increased to 36% for the three month period ending June 30, 2015 compared to 28% the same prior period of 2014. The increasing mix of business from other tissue related products is a primary contributor to the increase in cost of services percentage. Gross profit increased by approximately $0.17 million or 24% to approximately $0.90 million for the three month period ending June 30, 2015 from the prior three month period of 2014.
Administrative and selling expenses for the second quarter were $0.87 million as compared to $0.84 million in 2014. These expenses are primarily related to marketing/advertising, professional services, allocated facility related expenses, wages for personnel, and depreciation and amortization.
Income from operations was $0.03 million versus a loss of $0.11 million for the three month comparative period of 2015 from 2014. The Company's net income was $0.40 million for the three month period ending June 30, 2015, compared to a net loss of $0.93 million for the period ended June 30, 2014. The large positive increase in net income for the three month period ending June 30, 2015 is primarily attributable to a one-time adjustment in accounts payable and accrued expenses of approximately $346,000 due to PharmaStem's patent and royalty claims being declared void under a final decision on appeal.
EBITDA increased to $0.13 million from $0.02 million in 2014.
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.
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.
SOURCE Cord Blood America, Inc.