Cord Blood America, Inc. Announces 2014 Full Year Financial Results

LAS VEGAS, March 31, 2015 /PRNewswire/ -- Cord Blood America, Inc. (www.cordblood-america.com) (OTC Bulletin Board: CBAI) (“CBAI” or the “Company”) today announced financial results for the year ended December 31, 2014.

Fiscal Year 2014 Highlights:

• Revenue for the year increased to $4.33 million from $3.82 million in 2013, an increase of 13%
• Recurring revenues increased approximately 5% to $2.52 million for the year ended December 31, 2014 and now represents over 58% of total revenue
• Net income was $0.24 million for the year ended December 31, 2014, an increase of $2.71 million from an overall net loss of $2.47 million for the year ended 2013
• Net cash provided by operating activities for the year ended December 31, 2014, increased $1.39 million to $0.78 million or 227% from the prior comparative period of 2013

Joseph Vicente, President of Cord Blood America, Inc. commented “2014 saw continuous strides in our goal to build a scalable platform for growth. Over the past twelve months, the Company has increased revenues via a more diversified service offering, sold its equity stake in Bio increasing overall profitability, negotiated more favorable vendor relationship agreements and made strategic investments in technology. In addition, we reached a Settlement Agreement on the remaining debt obligation of the Company and began making payments earlier than required. Subsequent to the year, on February 27, 2015, the Company received its Accreditation from the American Association of Tissue Banks for the recovery of musculoskeletal tissue for transplantation and/or educational research. We believe this accreditation is important to our fastest growing segment, the procurement of birth tissue for therapeutic and/or research based products which grew 105% during 2014 to $0.80 million.”

Results of Operations for the Year Ended December 31, 2014 Compared To the Year Ended December 31, 2013:

For the year ended December 31, 2014, the Company’s total revenue increased to $4.33 million from $3.82 million, over the same period of 2013, an increase of 13%. New enrollment/processing fees decreased approximately 2% to $0.98 million while recurring storage revenues increased approximately 5% to $2.52 million for the year ended December 31, 2014 versus the prior comparative period of December 31, 2013. The slight decrease in enrollment fees was attributable to increased discounting associated with initial enrollment fees indicating a more competitive market. The total number of combined units of cord blood and cord tissue processed and stored increased year over year, as indicated by the 5% increase in recurring revenues. The procurement of birth tissue increased from $0.39 million to $0.80 million in the year over year period of 2013 to 2014, an increase of 105%. This growth is attributable to an increase in the demand of birth tissue from an existing relationship, coupled with an additional procurement agreement in place during the third quarter of 2014. Cost of services as a percentage of revenue increased from 29% to 32% for the comparative year ending 2014 versus 2013. The cost of services includes transportation of the umbilical cord blood, cord tissue and birth tissue from the hospital, direct material plus labor costs for processing and cryogenic storage, collection kit materials and allocated rent, utility and general administrative expenses.

Gross profit increased by approximately $0.23 million or 8% to $2.90 million from year ending 2014 to year ending 2013. The Company anticipates that through the growth and expansion of its Cord business, investment in automation, and continuing efficiencies in its own facilities, direct costs should decrease and gross profits will improve.

Administrative and selling expenses for the year ended December 31, 2014 were $3.10 million as compared to $2.91 million for the comparative period of 2013 representing a 7% increase. These expenses are primarily related to marketing/advertising, professional services, allocated facility, including utilities, expenses, and wages for personnel. Legal expenses associated with the Company litigation of St. George and Tonaquint increased $0.40 million in the year over year period and were the primary contributor to the overall increase in administrative and selling expenses. Depreciation and amortization are included as an administrative expense.

The Company’s income from continuing operations was $0.24 million versus a loss of $2.98 million for the comparative period for the year ending 2014 to 2013, resulting in an increase of $3.22 million. The primary contributor to this increase is the one-time gain related the sale of Biocells. The Company’s net income was $0.24 million for the year ended December 31, 2014, an increase of $2.71 million from an overall net loss of $2.47 million for the year ended 2013; again attributable to the sale of BioCells.

Liquidity and Capital Resources

At December 31, 2014, the company had $0.75 million in cash, an increase of $0.04 million or 6% from the prior comparative period of 2013. Cash flows from operations are currently sufficient to fund operations as net cash provided by operating activities for the year ended December 31, 2014, increased $1.39 million to $0.78 million or 227% from the prior comparative period of 2013.

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 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.

Forward-Looking Statements

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.

Web Site: http://www.cordblood-america.com

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SOURCE Cord Blood America, Inc.