Cord Blood America Reports 12% Increase in 2010 Second Quarter Revenue
LAS VEGAS, Aug. 18 Cord Blood America, Inc. (http://www.cordblood-america.com) (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells, a biological insurance policy, to families nationwide and internationally, announced today that revenues for the second quarter ended June 30, 2010, increased 12 percent to $951,561 compared to $813,950 in the same period in 2009.
Revenue increased due to Cord Blood America's purchase of 51 percent of the total outstanding shares of stellacure GmbH, a private German company which collects, processes and stores cord blood for use in Germany, Spain and other European and Middle Eastern countries.
Revenues for the first six months of 2010 totaled $1.79 million, up from $1.76 million in the first half of 2009. Cord Blood America announced a gross profit of $550,861 for the second quarter of 2010 and $974,838 for the first six months of the year.
"The stellacure acquisition, we believe, will serve as a strategic footprint for the growth of our stem cell business throughout Europe. stellacure sales channels started in 2009 in Spain and Italy are already providing immediate market penetration and a significant opportunity for growth," said Matthew Schissler, co-founder and CEO. "The established relationship stellacure has with the German Red Cross is, we believe, a potential catalyst for expansion of our services throughout the Continent."
Some of the financial highlights include:
Gross Profit was $550,861, up 10% from 2Q 2009.
Loss from operations was $1,484,564 a 200% increase from same period 2009; the loss from operations included a non-cash expense for stock-based compensation of $525,993 and a non-cash expense accrual of $344,413 from stellacure; excluding these two items, the loss increased 16% compared to the previous year's second quarter. This loss is attributable to investing in more business development for future organic growth.
Net Loss is $1.58 million, a 17% improvement from 2Q 2009.
From the balance sheet, debt increased by a little over $1 million, attributable to the cash needed to acquire and fund stellacure.
"These results show an increase in revenues, gross profits and a decrease in net loss, all moving in the right direction. However, today Cord Blood is much different than it was a year ago. In 2009, we did not have a lab, lab staff, or had acquired stellacure. In all respects, we were a much smaller organization. Today, we have a 17,000 square foot facility, completely staffed, with international operations," said Mr. Schissler.
"There are many components that affect our financials, and we believe that the numbers for the next four quarters will be dynamic, especially when compared to the previous year. We are encouraged in the increase in sales and gross profit, along with decrease in net loss. The company believes that the combination of organic growth and acquisitions, along with a diversified revenue stream, positions it well for the future," Mr. Schissler concluded.
About Cord Blood America
Cord Blood America is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. 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., visit our website at http://www.corcell.com/. For investor information, visit http://www.cordblood-america.com/.
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 the 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.
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SOURCE Cord Blood America, Inc.
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