Company Reports Improved Operating Results, Strengthened Balance Sheet
To Host Conference Call for the Investment Community at 11 a.m. Eastern Time Today
SANTA MONICA, Calif., May 21 /PRNewswire-FirstCall/ -- Cord Blood America, Inc. (OTC Bulletin Board: CBAI - News), the umbilical cord blood stem cell preservation company (http://www.cordblood-america.com) focused on bringing the life saving potential of stem cells to families nationwide and internationally, announced today financial highlights for its 2009 first quarter for the period ended March 31, 2009. Some of the highlights include:
- Improved operating results. The Company reduced its loss from operations from $0.4 million in its 2008 first quarter to $0.3 million in the 2009 first quarter.
- Increased gross margin. The Company increased gross margin from 45.0% in the 2008 first quarter to 52.5% in the 2009 first quarter due to a more favorable mix of business, including a significantly higher percentage of revenue coming from the sale of umbilical cord blood stem cell preservation services.
- Strengthened balance sheet. Indebtedness under the Company's convertible debentures declined from $6.8 million one year ago to $5.6 million at the end of the 2009 first quarter. Current liabilities fell from $13.6 million to $12.4 million.
- Strong growth in billings for Company's core business. Cord's billings in the three-month period ended March 31, 2009 was $1.2 million, compared to $1.0 million in the year earlier period as reflected in the Company's deferred revenue. Deferred revenue consists of payments for enrollment in the program and processing of umbilical cord blood by customers whose samples have not yet been collected, as well as the pro-rata share of annual storage fees for customers whose samples were stored during the year.
"During the first quarter, we took significant initiatives to position the Company for growth," said Matthew Schissler, Founder and CEO. "We shifted our business focus to capitalize on the opportunities in the processing of umbilical cord blood, deemphasizing the advertising business, as reflected by our improved gross margin. We believe that the new administration will further support growth in the stem cell industry, and in our business of collecting and storing umbilical cord blood lifting the current ban on Federal funding for research on embryonic stem cell lines. The funding should accelerate the use of stem cells in treating diabetes, heart disease, and other major diseases, driving consumers to make the investments in storage and collection."
"We also strengthened our balance sheet, reducing indebtedness, extending maturities and regaining compliance with all of our key lenders," continued Schissler. "We believe with our improved financial condition that Cord Blood America is now well-positioned to consolidate the industry as well as to acquire or build its own state-of-the-art laboratory for the storage of multiple stem cell products including umbilical cord blood stem cells, which should further improve gross margin and profitability. We believe that the Company is well positioned to play a key role as stem cell therapies become a viable treatment modality."
Conference Call:
The Company will hold a conference call at 11 a.m. eastern time today to discuss the results and outlook for the balance of the year. Interested parties may access the call by dialing 877-627-6555 (domestically) or 719-325-4931 (internationally) and referencing passcode 3112433. There will also be a replay of the call available for five days at the conclusion of the call. Parties desiring to listen to the replay may dial 888-203-1112 (domestically) or 719-457-0820 (internationally) and use passcode 3112433
The conference call will also be webcast and will be available at http://www.investorcalendar.com/IC/CEPage.asp?ID=145176
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 www.cordblood-america.com.
Forward-Looking Statements
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 Company'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.
CONTACT: Paul Knopick E & E Communications 949/707-5365 pknopick@eandecommunications
