Corgenix Reports Second Quarter Fiscal 2006 Results.DENVER -- Corgenix Medical Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: CONX), a worldwide developer and marketer of diagnostic test kits, reported sales of $1,580,883 for the second fiscal quarter ended December 31, 2005 compared to $1,276,571 for the quarter ended December 31, 2004, an increase of 23.8% Sales for the six-month period increased 24.6% to $3,215,836 from $2,579,642 for the comparable prior year period. The continued increase in the Company's sales was primarily a result of an overall increase in demand for and increased acceptance of the Company's diagnostic kits. The quarter produced an operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $83,919 and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $102,093 for the prior year and EBITDA for the current six month period was $369,550 compared to negative EBITDA of $8,060 in the year earlier period. The Company reported a net loss of $260,527 or ($0.03) per share for the quarter ended December 31, 2005 compared to a net loss of $102,038 or ($0.02) in the year earlier quarter. For the comparable six-month periods, the net loss was $384,635, or $0.04 per share for the current six-month period compared to a loss of $292,237 or $0.06 per share in the prior year. The current quarter and year to date losses are primarily due to significant non-operating and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. attributable to the recent convertible debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay , which resulted in non-cash charges to interest expense of $33,488 and $598,075 for the second quarter and year to date respectively, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the beneficial conversion features of the notes payable from the convertible debt financings. During the second quarter of fiscal 2006, Corgenix was named one of Colorado's 50 fastest growing technology companies in a list compiled by Deloitte & Touche. In addition to this award, which was based on consistent revenue growth over five years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company was also featured in the October 2005 issue of the Konlin Letter, which specializes in featuring low-priced and under followed stocks, as well as places emphasis on emerging growth and special situations poised for price appreciation. The Company also recently announced the closing of two private placement financing agreements Financing Agreements In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. with selected institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. representing initial net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Company of $3,363,500. "This was a great quarter for Corgenix," stated Douglass Simpson, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our extensive experience in advancing products through the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. has proven to be a valuable resource as we continue our expansion into several key market verticals, including Hepatitis C Hepatitis C Definition Hepatitis C is a form of liver inflammation that causes primarily a long-lasting (chronic) disease. Acute (newly developed) hepatitis C is rarely observed as the early disease is generally quite mild. , Cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease , Fibromyalgia fibromyalgia Chronic syndrome that is characterized by musculoskeletal pain, often at multiple sites. The cause is unknown. A significant number of persons with fibromyalgia also have mental disorders, especially depression. , Aspirin Resistance and Bio-Defense. Our recent focus on these strategic growth opportunities, combined with our steady growth in the development and marketing of our already over 50 in vitro in vitro /in vi·tro/ (in ve´tro) [L.] within a glass; observable in a test tube; in an artificial environment. in vi·tro adj. In an artificial environment outside a living organism. diagnostic products, allows us to maintain our confidence in the Company's ability to continue our projected record revenue and EBITDA growth throughout 2006." About Corgenix Medical Corporation Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases vascular diseases, n.pl diseases of the peripheral circulatory system. and bone and joint disorders. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience advancing products through the FDA process. More information is available at www.corgenix.com. Statements in this press release that are not strictly historical facts are "forward looking" statements (identified by the words "believe", "estimate", "project", "expect" or similar expressions) within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, changes in the regulatory environment, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon information currently known to management, and the company does not undertake any obligation to publicly update or revise any forward-looking statements.
Condensed Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
----------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Net sales $ 1,581 $ 1,277 3,216 2,580
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Gross profit 1,003 826 2,056 1,571
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Operating income (loss) 84 (16) 298 (102)
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Net loss (261) (102) (385) (292)
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Basic and diluted
earnings (loss) per
share $ (0.03) $ (0.02) (0.04) (0.06)
----------------------------------------------------------------------
Diluted shares
outstanding 9,023,495 5,337,058 8,701,274 5,330,938
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Reconciliation of Net Loss To EBITDA
($000 of U.S. Dollars)
Three Months Ended Six Months Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
----------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Net loss as
reported $ (260,527) $ (102,038) $ (384,635) $ (292,237)
----------------------------------------------------------------------
Adjusted for:
----------------------------------------------------------------------
Interest expense, net 344,446 85,941 682,316 190,144
----------------------------------------------------------------------
Depreciation and
amortization 24,483 47,965 71,869 94,033
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Earnings (loss) before
interest, taxes,
depreciation and
amortization
(EBITDA) $ 108,402 $ 31,868 $ 369,550 $ (8,060)
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SUMMARY BALANCE SHEET DATA
(in thousands)
December 31, June 30,
2005 2005
(unaudited) (audited)
----------------------------------------------------------------------
Cash $ 2,108 $ 1,282
----------------------------------------------------------------------
Working capital 3,525 2,407
----------------------------------------------------------------------
Total assets 8,549 4,992
----------------------------------------------------------------------
Long-term debt 1,209 1,003
----------------------------------------------------------------------
Total stockholders' equity 4,028 2,459
----------------------------------------------------------------------
Complete copies of the Corgenix Medical Corporation Forms 10-KSB and 10-QSB are available at www.sec.gov. Copies and additional information can be obtained by contacting William Critchfield, Chief Financial Officer: phone (303) 453-8903, or e-mail at wcritchfield@corgenix.com. |
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