LAS VEGAS, March 31, 2011 -- 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 fiscal year 2010 totaled $4.1 million, up $900,000, or 28 percent, compared to revenues of $3.2 million in 2009. The increase in revenue was attributable to all three cord blood subsidiaries, Corcell in the US, and the two acquisitions in 2010 of Stellacure GmbH in Germany and Biocordcell (BioCells, Inc.) in Argentina.
Additionally, Cord Blood America said gross profit was up $800,000, to $2.5 million and the gross margin as a percentage of sales increased from 55 percent in 2009 to 61 percent in 2010. "Certainly a 41% increase in gross profit is a stand alone accomplishment, but the fact that we were able to raise our margin by 5% begins to demonstrate the power of having our own stem cell collection storage facility in Las Vegas," said Matthew Schissler, CEO and co-founder, "We know we have capacity to drive more economies into the business and that will be a key focus throughout 2011. "
Other key factors which Mr. Schissler cited from 2010 with an eye towards 2011 included:
- The acquisitions. BioCells reported only a quarter of revenue in 2010. We are pleased with their growth and our excited about their expansion in South America and a full year of reporting results. Stellacure is being managed to better align costs with revenues. The recent investment in VidaPlus in Spain, which utilizes both Stellacure and the German Red Cross provide opportunities to leverage the operation without sizable capital investment.
- Debt. While it may appear there was an increase of almost two million in the long term debt, this was the reclassification of a derivative liability to a long term note. The company maintained a relatively flat debt picture in 2010 even though there were two acquisitions made in 2010 and investments in two other entities.
- Net losses. They decreased for the year approximately $1.3 million. While there is progress in reducing the net loss, the Company continues to manage expenses and is confident that in 2011 expenses will be further controlled. Approximately 55% of those losses were non-cash expenses. The remaining 45% cash expenses encompass the acquisition related expenses, including legal, and the building of our own facility in Las Vegas, both of which drove a significant portion of the remaining expense.
"In viewing these very positive results, we have reached a conclusion that while acquisitions still remain a very viable way to grow the Company, we will be focusing our efforts on future transactions that will significantly and positively impact the Company's bottom line," said the CBAI CEO.
About 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 http://www.corcell.com/. For investor information, visit http://www.cordblood-america.com/.
Safe Harbor: This press release contains forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned that such forward looking statements should not be construed as a guarantee or assurance of future performance or results. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained herein will in fact occur. These forward-looking statements are based on current expectations, and the Company assumes no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by the Company in its Form 10-K and in the Company's other reports filed with the Securities and Exchange Commission that discuss certain of the risks and factors that may affect the Company and its business.
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SOURCE Cord Blood America, Inc.