Corgenix Reports Third Quarter Fiscal 2006 Results.DENVER -- Corgenix Medical Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CONX), a worldwide developer and marketer of diagnostic test kits, reported sales of $1,634,446 for the third fiscal quarter ended March 31, 2006, an increase of 13.2% from the $1,444,553 in sales reported for the quarter ended March 31, 2005. Sales for the nine-month period this year increased 20.5% to $4,850,282 from $4,024,195 for the comparable period in 2005. The continued increase in the Company's sales is primarily attributable to an overall increase in demand for -- and increased acceptance of -- the Company's diagnostic kits. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]The third quarter produced an operating loss operating loss 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 $41,524 and negative 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 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 $154,502 and EBITDA of $202,441 for the same quarter in 2005. Operating income for the nine-month period ended March 31, 2006 was $256,157, compared to $52,409 for the prior year. EBITDA for the nine months ended March 31, 2006 was $347,672, compared to $194,381 for the same period the previous year. E[acute accent]The Company reported a net loss of $656,853, or $0.27 per share, for the quarter ended March 31, 2006, compared to net income of $75,675, or $0.01 per share, for the third quarter of 2005. Net loss for the nine-month period ended March 31, 2006 was $1,041,488, or $0.33 per share, compared to a loss of $216,562, or $0.05 per share, during the same period the year before. The current quarter- and year-to-date losses are primarily due to the Company's recent convertible-debt financing, which resulted in 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. to interest expenses of $554,170 and $1,152,245 for the third quarter and year to date, respectively. E[acute accent]During the third quarter, Corgenix submitted a 510(K) Pre-market Notification submission to the United States Food and Drug Administration United States Food and Drug Administration (FDA), n.pr a unit of the Public Health Service created to protect the health of the nation against impure and unsafe foods, drugs, and cosmetics. for AtherOx(TM), its next-generation product group that uses a patented technology to identify individuals at risk for developing atherosclerotic atherosclerotic pertaining to atherosclerosis. cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease . In addition, the Company received an extension of its technology license agreement with Rebio Gen., Inc., a subsidiary of Fujirebio, Inc., Tokyo, Japan. This foreign partner provides Corgenix the U.S. and worldwide (excluding Japan) rights to the intellectual property, as well as the manufacture and marketing, of a microplate-format ELISA ELISA (e-li´sah) Enzyme-Linked Immuno-Sorbent Assay; any enzyme immunoassay using an enzyme-labeled immunoreactant and an immunosorbent. ELISA n. test for hyaluronic acid hyaluronic acid: see mucopolysaccharide. Hyaluronic acid A polysaccharide which is an integral part of the gel-like substance of animal connective tissue; it supposedly serves as a lubricant and shock absorbent in the joints. (HA). This quarter, Corgenix also added significant depth of experience to its Board, naming Charles H. Scoggin, M.D., a biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. industry veteran, Larry Rau, a finance industry executive and Mr. C Mr C (aka Mr. Chuggs, born Richard West on January 2 1964) is a British DJ, musician and rapper. Best known for fronting The Shamen during their most commercially successful era, Mr C is also an acclaimed house music DJ and co-owner/co-founder of London's The End nightclub . David Kikumoto, one of the nation's leading experts in healthcare financing. In addition, the Company's shareholders approved an increase in the number of authorized common shares from 40 million to 100 million shares. As a result of this shareholder vote, $2,000,000 plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. related to the Barron Partners December 28, 2005 convertible preferred financing was released to the Company from escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. . E[acute accent]Douglass Simpson, President and Chief Executive Officer of Corgenix, commented: "This was a very good quarter for Corgenix. Even though we had an operating loss for the quarter, we continued 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, 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 expansion into these areas of strategic growth has necessitated an increase in key manufacturing, sales and product development headcount and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in order to keep all of the projects on schedule. However, we do feel that our focus on following pre-established timelines will allow the Company to continue toward its projected record revenue and EBITDA growth throughout fiscal 2006. We strongly believe that the fourth quarter will be a record quarter, giving us tremendous momentum moving into fiscal 2007." E[acute accent]About Corgenix Medical Corporation E[acute accent]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 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. process. More information is available at www.corgenix.com. E[acute accent]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 Nine Months Ended
March 31, March 31, March 31, March 31,
2006 2005 2006 2005
----------------------------------------------------------------------
(unaudited)(unaudited)(unaudited)(unaudited)
----------------------------------------------------------------------
Net sales $1,634 $1,445 4,850 4,024
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Gross profit 1,012 936 3,068 2,507
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Operating income (loss) (42) 155 256 52
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Net loss (657) 76 (1,041,488) (217)
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Basic and diluted earnings
(loss) per share $(0.27) $0.01 (0.33) (0.05)
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Diluted shares outstanding 9,913,950 5,367,863 9,099,598 5,338,421
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Reconciliation of Net Loss To EBITDA
($000 of U.S. Dollars)
Three Months Ended Nine Months Ended
March 31, March 31, March 31, March 31,
2006 2005 2006 2005
----------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Net income (loss) as
reported $(656,853) $75,675 $(1,041,488) $(216,562)
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Adjusted for:
----------------------------------------------------------------------
Interest expense,
net 615,329 78,827 1,297,645 268,971
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Depreciation and
amortization 19,646 47,939 91,515 141,972
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Earnings (loss) before
interest, taxes,
depreciation and
amortization (EBITDA) $(21,878) $202,441 $347,672 $194,381
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SUMMARY BALANCE SHEET DATA
(in thousands)
March 31, June 30,
2006 2005
(unaudited) (audited)
----------------------------------------------------------------------
Cash $ 3,569 $ 1,282
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Working capital 4,912 2,407
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Total assets 8,281 4,992
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Long-term debt 1,295 1,003
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Total stockholders' equity 5,416 2,459
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E[acute accent]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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