VANCOUVER, BC / ACCESSWIRE / May 29, 2019 / LED Medical Diagnostics Inc. ("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 first quarter ended March 31, 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, 2018.
"The record EBITDA1 reported in Q1, which has historically been a seasonally weak quarter for the Company, was driven by a 46% year-over-year (and 26% vs. Q4/2018) increase in software revenues, including recurring revenue growth from our XVWeb® SaaS offering," commented LED CEO David Gane. "The higher gross margin associated with this business line and synergies between our software and imaging device businesses drove the strong EBITDA performance in the quarter. We are excited to see the software revenue growth and operational efficiencies starting to drive the consistent improvements in our financial results."
Financial Highlights for the three months ended March 31, 2019
Net revenue for the three months ended March 31, 2019 was $3,814,466 representing an increase of 14% from the three months ended March 31, 2018. The Company's gross margin 2 was 68% for the three months ended March 31, 2019 as compared to 65% for the three months ended March 31, 2018. EBITDA1 for the three months ended March 31, 2019 was $552,714 compared to EBITDA1 of $26,296 for the three months ended March 31, 2018.
Net loss for the three months ended March 31, 2019 was $613,994 compared to net income of $75,366 for the three months ended March 31, 2018. The higher net loss for the quarter was due in large part to non-cash changes in the fair value of derivative liabilities and warrants ($433,800 loss in Q1/2019) and foreign exchange losses ($137,773 loss in Q1/2019 compared to a gain of $118,868 in Q1/2018).
Cash flow from operations was $521,806 during the three months ended March 31, 2019 compared to cash flow from operations of ($581,612) during the three months ended March 31, 2018. Inflows from financing for the three months ended March 31, 2019 and March 31, 2018 were nil. The cash outflows from financing activities were $842,937 relating to the repayment of debentures.
Interest expenses totaled $294,529 for the three months ended March 31, 2019 which included non-cash interest expense of $140,770 relating to the accretion of interest for the preferred shares and lease obligations. The Company has current annual interest obligations of 5% for the preferred shares and 12% for the debentures.
The Company had cash on hand of $2,540,051 and Net Working Capital of $1,489,951 as of March 31, 2019 compared to cash of $1,433,006 and Net Working Capital of ($2,790,566) as of March 31, 2018. Net Working Capital is defined as total current assets less total current liabilities.
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 March 31, 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.
Email: [email protected]
Dr. David Gane, CEO
Phone: 604.434.4614 x227
Email: [email protected]
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.