LAS VEGAS, April 1, 2013 /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, 2012.
Full Year Ended December 31, 2012 Highlights
- Revenue increased 18% to a record $6.0 million from $5.1 million in the year ago period.
- Gross Profit increased 20% to $4.2 million from $3.5 million in the year ago period.
- SG&A decreased 17% or $1.1 million to $5.6 million in 2012 from $6.7 million in 2011.
- Total assets exceeded total liabilities by $0.52 million, a net change of $1.4 million from the prior year of 2011 where the liabilities outpaced company assets.
- Net cash balance increased over 116% to $393,832 from the year ago period.
- Positive cash flow from operations of $0.19 million, an improvement of 117% compared to the year ago period.
Joseph Vicente, President of Cord Blood America, Inc. commented "After taking over as CEO in May of 2012, our team has made transformational changes to our business model as highlighted in the bullets above. At the same time we recognize we are at an inflection point for the company where incremental revenue growth will drive significantly higher operating profit for the company, highlighting the leverage within our model. Our combined US and South American operating divisions offer the best of both worlds, a high growth engine in Argentina which grew revenue by 35% for the year is providing the annuity streams of tomorrow, combined with our US operations which are growing at a steady rate of 10% while already achieving the scale to generate consistent recurring cash flow that covers the operation's fixed cost, demonstrating further the power of building a sizable customer base."
The Company's cash position continued to improve throughout 2012. The Company increased its cash from operations by $1.71 million from the comparative period of 2011. The impact of this is greatly heightened when one considers the Company's accounts payable balance decreased 37% or $327,000 from 2011 to 2012. "We have been steadfast that the Company needs to operate off its own cash. We continue to do so as evidenced by: our improving cash position; our consistent payment to vendors; and the fact that we did not take any outside investment capital for the last nine months of 2012," commented Mr. Vicente.
Gross profit for the year increased by approximately $0.69 million or 20% to $4.20 million from the prior comparative period. With gross margin as a percentage of revenue up slightly, to 70%, the Company anticipates that through the growth and expansion of its cord blood business in conjunction with continuing efficiencies in its own facilities, direct costs should continue to decrease as a percentage of sales, and gross profits will continue to improve.
Administrative and selling expenses for the year ended December 31, 2012 decreased 17% to $5.63 million as compared to $6.75 million for the comparative period of 2011. The company continues to evaluate each dollar being spent, automating for economies of scale, and understands that incremental revenue growth needs to proportionately drive higher operational profits.
Mr. Vicente concluded, "The last half of 2012 provided measureable improvement across key indicators for revenue, expenses and operating profit. As we progress into 2013, we are focused on expanding our service offerings in the stem cell space, securing additional sales channels to market our services, and ensuring that our sales efforts meet the balance of the fiscal discipline required to continue to build the cash position of the Company, all key contributors to drive the future value for our shareholders."
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 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.
Web Site: http://www.cordblood-america.com