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Aurora Spine Corporation Files Condensed Consolidated Financial Statements for the Three and Six Months Ended June 30, 2018
Globe Newswire 27-Aug-2018 7:00 AM
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
CARLSBAD, Calif., Aug. 27, 2018 (GLOBE NEWSWIRE) -- Aurora Spine Corporation ("Aurora Spine" or the "Company") (TSXV:ASG) announces financial results for the Second Quarter, 2018. All figures are in U.S. dollars.
To our Shareholders:
The second quarter of 2018 was an outstanding quarter. We achieved our highest quarterly revenue ever resulting in record cash flow. Combined with our cost reductions to our operating expenses, the new revenue levels have delivered a breakthrough to positive net income for the company, driving our growing confidence in the bright future for Aurora Spine. We are very pleased with the strong sales of our expanding product portfolio, and more importantly, the level of adoption we are seeing by surgeons in surgery centers, and hospital systems nationwide. The synergy of our product portfolio and outcome-focused innovation is expected to provide a powerful platform for our future growth.
Highlights:
Record Revenues – During the quarter, we generated more than $2.0 million in revenues, an increase of over $566k or 39% as compared to Q2 2017.
Gross Profit and Margin Rises - Gross profit was more than $1.1 million, up over $397k over the comparable quarter last year. Gross margin as a percentage of sales also rose to 56.2% as compared to 50.6% in the comparable quarter last year.
Positive Cash Flow – EBITDAC was over $298k for the quarter. This is an improvement of almost $488k from the comparable quarter last year and an improvement of more than $225k from Q1 2018 which was the Company's first positive cash flow quarter.
Operating Expenses Lowered – Total operating expense for the quarter was $1.1 million or 54.6% of revenue. This compares favorably with an expense margin of 82.3% from Q2 of last year.
Canadian Milestone - On July 9, 2018 the company announced the 100th surgical implantation of its ZIP ULTRA® minimally invasive interspinous device in Canada.
SELECTED BALANCE SHEET INFORMATION
The following table summarizes selected key financial data.
As at
June 30, 2018 $
December 31, 2017 $
December 31, 2016 $
Cash
224,709
12,665
192,842
Trade receivables
1,603,919
811,491
1,228,553
Prepaid expenses and deposits
225,776
471,859
318,386
Inventory
2,334,789
2,462,509
2,996,940
Current assets
4,389,193
3,758,524
4,736,721
Intangible assets
256,940
264,247
210,966
Property and equipment
1,135,703
1,265,720
2,095,565
Total assets
5,781,836
5,288,491
7,043,252
Current liabilities
1,550,776
1,735,108
2,400,196
Long-term liabilities
1,959,000
1,902,000
1,172,963
SELECTED QUARTERLY INFORMATION
Operating results for each quarter for the last two fiscal years are presented in the table below.
Quarters ended
June 30, 2018 $
March 31, 2018 $
December 31,2017 $
September 30, 2017 $
June 30, 2017 $
March 31, 2017 $
December 31, 2016 $
September 30, 2016 $
Revenue
2,002,101
1,503,297
1,349,975
1,676,738
1,436,024
1,526,377
1,688,582
1,625,676
Cost of goods sold
(877,746
)
(626,453
)
(1,017,320
)
(970,801
)
(709,060
)
(732,704
)
(879,751
)
(826,949
)
Gross profit
1,124,355
876,844
332,655
705,937
726,964
793,673
808,831
798,727
Operating expenses
1,083,310*
1,036,527*
1,230,740*
1,034,319
1,183,085
1,351,436*
1,503,071
1,321,734
EBITDAC**
298,579
72,977
(649,335
)
(100,022
)
(189,391
)
(341,556
)
(571,566
)
(224,935
)
Net income (loss)
41,045
(159,683
)
(898,085
)
(328,382
)
(456,121
)
(557,763
)
(694,240
)
(523,007
)
Basic and diluted income (loss) per share
0.01
(0.01
)
(0.02
)
(0.01
)
(0.01
)
(0.02
)
(0.02
)
(0.02
)
* Adjusted by gain on sale of property and equipment. ** EBITDAC - a non GAAP, non IFRS measure defined as Earnings before Interest, Tax, Depreciation, Amortization and Stock based Compensation. Additionally, this amount is adjusted by gain on sale of property and equipment.
We are pleased that our efforts are beginning to create value for our shareholders. Strong cash flow from operations will help us to further expand sales, move new products through our development group and help support and assist our service levels to our surgeons. We are grateful for their ongoing support of our company and our mission of improving the lives of patients with debilitating spine issues.
The statements together with the Management Discussion and Analysis can be found on SEDAR at www.sedar.com.
Trent J. Northcutt President and Chief Executive Officer
About Aurora Spine Aurora Spine is an early stage company focused on bringing new solutions to the spinal implant market through a series of screwless, innovative, minimally invasive, regenerative spinal implant technologies. Aurora Spine continues to position itself at the forefront of spinal surgery procedures, focusing on minimally invasive spine surgery technologies. Aurora Spine is changing spine surgery by focusing on disruptive technologies following the Company's commitment to - Simplifying the Complex.
Forward-Looking Statements This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurora Spine, including, without limitation, those listed under "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" in Aurora Spine's final prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes information concerning the proposed use and success of the company's products in surgical procedures. Aurora Spine cautions investors of Aurora Spine's securities about important factors that could cause Aurora Spine's actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ unilaterally from those expressed in such forward-looking statements. No assurance can be given that the expectations set out herein will prove to be correct and, accordingly, prospective investors should not place undue reliance on these forward looking statements. These statements speak only as of the date of this press release and Aurora Spine does not assume any obligation to update or revise them to reflect new events or circumstances.
For more information, please contact:
Aurora Spine Corporation Trent Northcutt President and Chief Executive Officer (760) 424-2004 www.aurora-spine.com
