VANCOUVER, BC / ACCESSWIRE / August 22, 2019 / LED Medical Diagnostics Inc. (LMD.V)(LEDIF) ("LED" or the "Company"), a leading dental imaging technology provider focused on delivering state-of-the-art imaging software and systems, today announced its financial results for the second quarter ended June 30, 2019, reported in United States dollars and in accordance with International Financial Reporting Standards ("IFRS"). The Company’s results are presented in comparison to the first quarter ended March 31, 2019 and second quarter ended June 30, 2018.
“I’m pleased to report EBITDA1 of USD$1,066,248 and EBITDA1 margin of 14% for the six-month period ended June 30, 2019,” commented LED CEO Dr. David Gane. “This represents a significant increase compared to EBITDA1 of USD$126,729 and EBITDA1 margin of 2% for the same period in the prior year. Our improved financial performance is a result of growth in recurring revenues from our SaaS software and support contracts and synergies between our software and device businesses driving growth in our Tuxedo sensor sales.”
Financial Highlights for the three months ended June 30, 2019
Net revenue for the three months ended June 30, 2019 was USD$3,933,084 representing an increase of 3% from the three months ended March 31, 2019 and 7% from the three months ended June 30, 2018. The Company’s gross margin2 was 68% for the three months ended June 30, 2019 as compared to 68% for the three months ended March 31, 2019 and 59% for the three months ended June 30, 2018. EBITDA1 for the three months ended June 30, 2019 was USD$513,534 compared to EBITDA1 of USD$552,714 for the three months ended March 31, 2019 and EBITDA1 of USD$100,433 for the three months ended June 30, 2018.
Net loss for the three months ended June 30, 2019 was USD$242,480 compared to net loss of USD$613,994 for the three months ended March 31, 2019 and net income of USD$378,036 for the three months ended June 30, 2018. The higher net loss for the quarter was due in part to large non-cash interest associated with the derivative liabilities (USD$118,545 in Q2/2019) and unrealized foreign exchange losses (USD$152,708 loss in Q2/2019).
Cash flow from operations was USD$109,066 during the three months ended June 30, 2019 compared to cash flow from operations of USD$521,806 during the three months ended March 31, 2019 and (USD$178,827) for the three months ended June 30, 2018. Cash inflows from financing activities for the three months ended June 30, 2019 and March 31, 2019 were nil; for the three months ended June 30, 2018 cash proceeds from financing activities was USD$200,000 from a debenture issuance.
Interest expenses totaled USD$297,563 for the three months ended June 30, 2019 which included non-cash interest expense of USD$152,963 relating to the accretion of interest for the preferred shares and lease obligations. The Company has current annual interest obligations of 5% for its preferred shares and 12% for its debentures.
The Company had cash on hand of USD$2,777,891 and Net Working Capital of USD$1,762,943 as of June 30, 2019 compared to cash of USD$2,540,051 and Net Working Capital of USD$1,489,951 as of March 31, 2019. Net Working Capital is defined as total current assets less total current liabilities.
Financial Highlights for the Six Months Ended June 30, 2019
Revenue for the six months ended June 30, 2019 was USD$7,747,550 representing an increase of 11% from the prior year of USD$7,003,298. The Company’s gross margin2 was 68% for the six months ended June 30, 2019 as compared to 62% in the prior year period. EBITDA1 for the six months ended June 30, 2019 was USD$1,066,248 representing an increase from EBITDA1 of USD$126,729 in the prior year six-month period. Net income for the six months ended June 30, 2019 was (USD$856,474) representing a decrease from net income of USD$453,402 in the prior year period.
Financial Statements and Management's Discussion & Analysis
Please see the consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for more details. The consolidated financial statements for the three months ended June 30, 2019 and related MD&A have been reviewed and approved by the Company's Audit Committee and Board of Directors. The Company has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted to www.ledapteryx.com.
About LED Medical Diagnostics Inc.
LED Medical Diagnostics Inc. is a dental imaging technology provider focused on delivering state-of-the-art imaging software and systems. Through its wholly-owned subsidiaries LED Dental Inc., LED Dental Ltd., and Apteryx, Inc., LED Medical has provided dentists and oral health specialists with advanced diagnostic imaging products and software for over 20 years. LED’s proprietary technologies include the VELscope® Vx Enhanced Oral Assessment and TUXEDO Intraoral Sensors, in addition to Apteryx’s XrayVision®, XVWeb® and XrayVision® DCV imaging software solutions.
Backed by an experienced leadership team and dedicated to a higher level of service and support, LED is committed to providing dental practitioners with the best technology available by identifying and adding leading products to its growing portfolio.
The Company is currently listed on the TSX-V under the symbol LMD, the OTCQB under the symbol LEDIF, as well as the Frankfurt Stock Exchange under the symbol LME.
Dr. David Gane, CEO
Phone: 604.434.4614 x227
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information include statements regarding, but not limited to the Company's future growth strategy, its distribution strategy and product offerings, potential expansion of the Company's technology to other medical applications or markets, or the potential introduction of new technologies by the Company. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Corporation's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to competition risks, distributor risks, product development risks such as regulatory, design, intellectual property and other factors described in the Corporation's reports filed on SEDAR including its Annual Information Form and financial report for the year ended December 31, 2018. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
1 EBITDA or Earnings before Interest, Taxes, Depreciation and Amortization is a non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. This measure does not have a comparable GAAP measure. EBITDA referenced here relates to net revenue less cost of goods sold, sales and marketing, research and development and administration expenses but excludes interest, income taxes, depreciation, amortization, finder’s warrants issuance costs, stock-based compensation, deferred share unit compensation, mark to market adjustments on Canadian dollar denominated warrants, changes in fair value to derivative liabilities, foreign exchange gain or loss and other income. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the cash operating loss of the business.
2 Gross margin is a non-IFRS measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Gross margin referenced here relates to revenues less cost of sales. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the operating performance of the Company.
SOURCE: LED Medical Diagnostics Inc.
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