Blueprint
Cord Blood America, Inc. Reports 2018 First Quarter
Results
May 14, 2018 - Cord Blood America, Inc. (www.cordblood-america.com)
(OTC PINK: CBAI) ("CBAI" or the "Company") today announced
financial results for the first quarter ended March 31, 2018. Given
the agreement entered into with California Cryobank Stem Cell
Services LLC (dba “FamilyCord”) to sell substantially
all of the Company’s assets, the operating results associated
with the assets being sold have been reclassified into discontinued
operations and the assets and liabilities are reflected as
held-for-sale. Additional disclosure pertaining to this financial
treatment is included in the Company’s 10-Q which is being
filed today.
Highlights Include:
●
Total revenue from
discontinued operations for the first quarter 2018 was $0.70
million, a decrease of 5.8% from total revenue of $0.75 million for
the first quarter 2017.
●
Recurring storage
revenue from discontinued operations for the first quarter 2018 was
$0.65 million, an increase of 2.1% from recurring storage revenue
of $0.64 million for the first quarter 2017.
●
Gross profit from
discontinued operations for the first quarter 2018 was $0.53
million, a decrease of 7.7% from gross profit from discontinued
operations of $0.58 million for the first quarter 2017.
Discontinued operations’ gross margin for the first quarter
2018 was 75.5% compared to 77.1% for the first quarter
2017.
Results of Operations for the Three-Months Ended March 31,
2018
For the three-months ended December 31, 2017, total revenue from
discontinued operations was $0.70 million, a decrease of $0.05
million or 5.8% from $0.75 million in first quarter 2017. The
decrease was the result of a decrease in new enrollment/processing
revenue offset by an increase in recurring storage
revenue.
Gross profit from discontinued operations for the three-month
period ended March 31, 2018 was $0.53 million, a decrease of $0.05
million or 7.7% from $0.58 million in first quarter 2017. The
decrease was the result of the aforementioned decrease in new
enrollment/processing revenue.
Discontinued operations’ gross margin for the three-month
period ended March 31, 2018 was 75.5% compared to 77.1% in first
quarter 2017.
Administrative and selling expenses for the three-month period
ended March 31, 2018 was $0.43 million, an increase of $0.01
million or 2.1% from $0.42 million in first quarter
2017.
Net loss from continuing operations for the three-month period
ended March 31, 2018 was $0.42 compared to a net loss from
continuing operations of $0.37 million for the three-month period
ended March 31, 2017. Net income from discontinued operations for
the three month-period ended March 31, 2018 was $0.46 million
compared to $0.49 million for the three-month period ended March
31, 2017.
Commentary
Chairman David Sandberg stated, “While the Company
incurred additional expenses in the first quarter related to the
FamilyCord transaction and other non-recurring items, the business
continues to perform as expected with continuing positive cash
flow. We continue to expect the transaction will close in the
second quarter subject to the closing conditions including the
approval of shareholders.”
About Cord Blood America, Inc.
Cord Blood America, Inc. is the parent company of CorCell
Companies, Inc. which, along with Cord Blood America, Inc.,
facilitates umbilical cord blood and cord tissue stem cell
processing and storage 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.
Forward-Looking Statements
Some statements made in this press release are forward-looking
statements. 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.
Investor
Contact:
Anthony Snow
asnow@cordblood-america.com