LAS VEGAS, Aug. 15, 2013 /PRNewswire/ -- Cord Blood America, Inc. (www.cordblood-america.com) (OTC Bulletin Board: CBAI) ("CBAI" or the "Company") today announced financial results for the quarter ended June 30, 2013.
Second Quarter 2013 Highlights from Continuing Operations
- Recurring revenues increased approximately 6% for the three months ended June 30, 2013 to $735,705 from the year ago period.
- Cash provided by operations totaled $216,765 in the second quarter. This combined with the $128,970 generated in the first quarter totals $345,735 for the first six months and represents an 82% increase of the total full year cash generated in 2012 of $190,323.
- SG&A decreased 4% to $1.17 million from $1.22 million in the year ago period.
- Cash balance increased $219,204 from the beginning of 2013 to $613,036 or 56%.
"Second quarter financial results were negatively impacted by a currency exchange rate adjustment of 17% from Biocordcell Argentina (Bio) revenues compared to the year ago period, and additional customer discounts on enrollment and processing fees. With these changes, Bio continues to run a strong second in market share throughout Argentina," said Joseph Vicente, President of CBAI. While margins have been impacted, the number of cord blood samples processed remains consistent from a year over year period, and considering pure volume, Bio is building significant future cash flows and protecting their market leadership position. Bio is now at a key inflection point on a stand-alone basis where incremental storage customers drop a significantly higher percentage of profit to the bottom line. This allows us to maintain our position as an industry leader and the ability to match pricing fluctuations while maintaining profitability on new customers. This is important as we continue to build stability to the underlying business model with approximately 50% of the total revenues, or $735,505 in the second quarter, generated from recurring revenues. Additionally, here in the US, with the announcement in May of our new cord tissue offering, early indications show an adoption rate for both cord blood and cord tissue of approximately 50%, which incrementally increases storage revenues by over 50% and a positive indicator for future recurring revenue growth.
For the three months ended June 30, 2013, total revenue decreased to approximately $1.49 million from $1.70 million. Recurring revenue increased approximately 6% from the year ago period.
Administrative and selling expenses for the three months ended June 30, 2013 were $1.17 million as compared to $1.22 million for the comparative period of 2012 representing a 4% decrease. These expenses are primarily related to marketing/advertising, professional services, allocated facility related expenses and wages for personnel. The Company continues to evaluate its expenses and their relationship to revenues for alignment. Depreciation and amortization are included as an administrative expense. For the three month period ending June 30, 2013 and June 30, 2012, depreciation and amortization was approximately $0.19 million. For the period ending June 30, 2013, the company had $0.61 million in cash, an increase of 56% from $0.39 million at December 31, 2012. The Company currently collects cash receipts from operations through Cord and its subsidiary, Bio-cells. During the six month period ended June 30, 2013 there was no increase in notes payable for purposes of working capital or investment in affiliate companies and represents 5 consecutive quarters without external financing. Net cash provided by operating activities for the six month period ending June 30, 2013 was $0.35 million, versus a net use of cash of $0.18 million from the prior comparative period of 2012, an improvement of $0.53 million or 288%.
About Cord Blood America
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 preservation 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.