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Aurora Spine Corporation Files Condensed Consolidated Financial Statements for the Three Months Ended March 31, 2018
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
CARLSBAD, Calif., May 28, 2018 (GLOBE NEWSWIRE) -- Aurora Spine Corporation (“Aurora Spine” or the “Company”) (TSXV:ASG) announces financial results for the three months ended March 31, 2018.
To our Shareholders:
Q1 2018 was the best quarter in the Company’s history based on several financial metrics and reflects many of the changes that were implemented throughout the latter half of 2017.
- Positive Cashflow in Q1 2018 - EBITDAC (a non GAAP, non IFRS measure defined as Earnings before interest, taxes, depreciation, amortization and stock based compensation, adjusted by the gain on sale of property and equipment) was over $73,000 for the quarter. This is an improvement of more than $400,000 from the comparable first quarter in 2017 and represents the Company’s first positive cashflow quarter.
- Gross Profit Improvement – We recorded a gross profit more than $876,000 up over $83,000 over the comparable quarter last year despite similar sales levels. The improvement was driven by a better product mix emphasizing Aurora Spine products and less reliance on third party products as well as efforts by our employees to lower manufacturing costs.
- Operating Expenses Lowered – We saw a continuation of a trend started last year, with total operating expense lowered to just over $1,038,000, a reduction of over $375,000 from Q1 of last year.
During the three months ended March 31, 2018 we generated revenues in the amount of $1,503,297. This represents a slight decline over the previous year, however the comparable period included about $42,000 in Europe sales which has been largely discontinued.
During the three months ended March 31, 2018 cost of sales was $626,453 and gross profit was $876,844 (58% of revenues). During the three months ended March 31, 2017 cost of sales was $732,704 and gross profit was $793,673 (52% of revenues). The gross margin percentage increased by 6% primarily as management has lowered the Company’s manufacturing costs on most of its Ti-Nano products.
Operating expenses (excluding the gain on sale of property and equipment) during the current quarter were $1,038,098 compared to $1,413,999 during the same period the previous year, a decrease of $375,901 or 27%.
SELECTED BALANCE SHEET INFORMATION
The following table summarizes selected key financial data.
|As at||March 31, 2018|
|December 31, 2017|
|December 31, 2016|
|Prepaid expenses and deposits||445,318||471,859||318,386|
|Property and equipment||1,099,935||1,265,720||2,095,565|
SELECTED QUARTERLY INFORMATION
Operating results for each quarter for the last two fiscal years are presented in the table below.
|Quarters ended||March 31,|
|March 31, |
|Cost of goods sold||(626,453||)||(1,017,320||)||(970,801||)||(709,060||)||(732,704||)||(879,751||)||(826,949||)||(921,836||)|
|Net income (loss)||(159,683||)||(898,085||)||(328,382||)||(456,121||)||(557,763||)||(694,240||)||(523,007||)||(155,791||)|
|Basic and diluted income (loss) per share||(0.01||)||(0.02||)||(0.01||)||(0.01||)||(0.02||)||(0.02||)||(0.02||)||(0.01||)|
* 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. Management and I thank our shareholders for their continued support in these endeavors. We will look to extend our technology position further with minimally disruptive procedural solutions for the spine.
None of this would be possible without the dedication and commitment of our hardworking colleagues at Aurora. I want to thank them for the great accomplishments they have made this year, for Aurora and ultimately, for patients. They have embraced change and risen to the numerous challenges before them, and I am grateful for their ongoing support of our company and our mission.
I would also like to thank you, our investors, for your continued support. Together, we have built a strong foundation, and I look forward to the opportunities ahead of us. I am truly grateful to be part of an organization that makes such a positive improvement in the lives of patients around the world.
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.
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||Sarina Mason|
|President and Chief Executive Officer||Chief Financial Officer|
|(760) 424-2004||(760) 424-2004|