VANCOUVER, BC / ACCESSWIRE / November 26, 2019 / Apteryx Imaging Inc. ("Apteryx" 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 third quarter ended September 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 second quarter ended June 30, 2019 and third quarter ended September 30, 2018.
"After two consecutive quarters of delivering positive financial performance year to date, revenues declined by 20% from last quarter to $3.2M for the seasonally slower Q3 period", commented LED CEO Dr. David Gane. "VELscope experienced a supply disruption of a critical component and sales of perpetual software licenses were lower than anticipated for the period. However, Q3 was a strong quarter for XVWeb® subscriptions putting us on track to add 1,000 unique locations in 2019. EBITDA1 for the nine months ended September 30, 2019 was USD$1,016,446 compared to USD$513,775 for the same period in the prior year representing solid growth. I am also pleased to report that subsequent to the close of the third quarter the Company paid its maturing debenture obligation to the debenture holders in the principal amount of CDN$2,500,000, plus accrued interest."
Financial Highlights for the three months ended September 30, 2019
Net revenue for the three months ended September 30, 2019 was USD$3,166,093 representing a decrease of 20% from the three months ended June 30, 2019 and 7% from the three months ended September 30, 2018. The Company's gross margin2 was 67% for the three months ended September 30, 2019 as compared to 68% for the three months ended June 30, 2019 and 68% for the three months ended September 30, 2018. EBITDA1 for the three months ended September 30, 2019 was (USD$49,802) compared to EBITDA1 of USD$513,534 for the three months ended June 30, 2019 and EBITDA1 of USD$385,624 for the three months ended September 30, 2018.
Interest expenses totaled USD$295,757 for the three months ended September 30, 2019 which included non-cash interest expense of USD$152,790 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 (which expired October 30, 2019).
Net loss for the three months ended September 30, 2019 was USD$436,293 compared to net loss of USD$242,480 for the three months ended June 30, 2019 and net loss of USD$176,507 for the three months ended September 30, 2018.
Cash flow from operations was (USD$121,214) during the three months ended September 30, 2019 compared to cash flow from operations of USD$109,066 during the three months ended June 30, 2019 and USD$114,377 for the three months ended September 30, 2018. Cash inflows from financing activities for the three months ended September 30, 2019 and June 30, 2019 were nil; for the three months ended September 30, 2018 net cash proceeds from financing activities was USD$2,139,802 from a preferred share issuance less payments of debentures and deferred consideration.
The Company had cash on hand of USD$2,468,056 and Net Working Capital of USD$1,521,464 as of September 30, 2019 compared to cash of USD$2,777,891 and Net
Working Capital of USD$1,762,943 as of June 30, 2019. Net Working Capital is defined as total current assets less total current liabilities.
Financial Highlights for the Nine Months Ended September 30, 2019
Revenue for the nine months ended September 30, 2019 was USD$10,913,643 representing an increase of 5% from the prior year of USD$10,404,183. The Company's gross margin2 was 67% for the nine months ended September 30, 2019 as compared to 64% in the prior year period. EBITDA1 for the nine months ended September 30, 2019 was USD$1,016,446 representing an increase from EBITDA1 of USD$512,353 in the prior year nine-month period. Net income for the nine months ended September 30, 2019 was (USD$1,292,767) representing a decrease from net income of USD$278,317 in the prior year nine-month 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 September 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.apteryx.com.
About Apteryx Imaging Inc.
Apteryx Imaging develops award-winning dental imaging software and oral screening technologies while also providing state-of-the-art dental imaging devices. Our customers include many of the largest dental practices and organizations in the world, including many of the country's top Dental Support Organizations (DSOs), the United States Army and the United States Navy. Our proprietary brands include Apteryx XrayVision® imaging software, the VELscope® Enhanced Oral Screening System and TUXEDO® Intraoral Sensors. Backed by an experienced leadership team and dedicated to a higher level of service and support, Apteryx Imaging is committed to providing dental practitioners with the best technology available by identifying and adding leading products to its growing portfolio. Apteryx Imaging, Inc. is publicly traded on the TSX-Venture Exchange (TSXV:XRAY)(OTCQB:APTEF), and the Frankfurt Stock Exchange (FSE:XRAY). Apteryx Imaging, Inc. is headquartered in Vancouver, BC, Canada.
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, marketing, support, 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.
