LED Medical Diagnostics Inc. (TSX VENTURE: LMD) ("LED" or the
"Company") today announced its financial results for the fourth
quarter and full year ended December 31, 2011, reported in Canadian
dollars and in accordance with International Financial Reporting
Standards ("IFRS"). The Company's results are presented in comparison
to the three months and twelve months ended December 31, 2010, also in
accordance with IFRS.
-- Revenues for fiscal 2011 reached a record of approximately $7.1 million,
a 352% increase over fiscal 2010.
-- Revenues for Q4 2011 were approximately $2.0 million, a 841% increase
over Q4 2010.
-- EBITDA improved significantly for fiscal 2011 and Q4 2011 over
comparable periods to approximately ($1.5 million) and ($277,000),
"We expect three pillars to continue to drive growth for LED Medical
Diagnostics in 2012 and beyond," said Peter Whitehead, CEO and
Director, LED Medical Diagnostics. "The new Velscope@ Vx, which we
introduced in early 2011, is already the leading adjunctive cancer
screening device in the market; Henry Schein, the world's largest
dental distribution firm, is now the exclusive distributor of the
Velscope Vx in key markets around the world; and an increased
awareness that oral cancers are rising among non-traditional patients
such as non-smokers and otherwise healthy individuals."
"The proliferation of the HPV virus among sexually active people and
its direct links to oral cancer is increasing the demand and
importance of detecting oral abnormalities early. The Velscope Vx is
at the leading edge of this growing opportunity and our strong success
in 2011 has set the stage for future growth and market expansion."
Q4 2011 Comparative Results
For the fourth quarter ended December 31, 2011, the Company reported
revenues of approximately $2.0 million as compared to approximately
$213,000 for the fourth quarter of 2010, an increase 841% over the
comparable period. Gross margins(1) were 50% during the three months
ended December 31, 2011, which was significantly higher than the three
months ended December 31, 2010. The Company's margins vary depending
on the mix of equipment versus disposables sales for any given period.
Total operating expenses for the three months ended December 31, 2011
were 2% higher than the three months ended December 31, 2010.
EBITDA(2) for the three months ended December 31, 2011 was
approximately ($277,000) compared to approximately ($2.0) million for
the three months ended December 31, 2010.
Fiscal 2011 Comparative Results
For the year ended December 31, 2011 the Company reported revenues of
approximately $7.1 million as compared to approximately $1.6 million
for the year ended December 31, 2010, an increase of 352% over the
comparable period. The increase is attributable to the partnership
with industry leader Henry Schein, which has greatly expanded the
Company's sales and distribution reach.
Gross margins were 55% during the year ended December 31, 2011 which
was significantly higher than the gross margins of 22% for the year
ended December 31, 2010. The Company's margins vary depending on the
mix of equipment versus disposables sales for any given period.
Total operating expenses for the year ended December 31, 2011 were 39%
higher than the year ended December 31, 2010. EBITDA for the year
ended December 31, 2011 was approximately ($1.5) million compared to
($3.7) million for the year ended December 31, 2010.
Cash and cash equivalents were approximately $992,000 with net working
capital of approximately $570,000 as of December 31, 2011, compared to
cash and cash equivalents of approximately $269,000 with net working
capital(3) of approximately ($1.0 million) as of December 31, 2010.
Notable developments and achievements during the fourth quarter
included the following:
-- The Company completed its amalgamation with Searchlight Capital Corp.
and commenced trading on the TSX Venture Exchange (trading symbol: LMD)
on November 24, 2011. As part of this transaction, the Company generated
additional funds of approximately $1.1 million excluding related
-- Velscope Vx oral cancer screening system has been approved for use by
the dentists affiliated with Heartland Dental Care, which represents
over 350 dental practices in 18 states.
The Audit Committee of the Company has reviewed the contents of this
The following and preceding discussion of financial results includes
reference to Gross Margin, EBITDA and Working Capital, which are all
non-IFRS financial measures. The measure of gross margin is provided
as management believes this is a good indicator in evaluation the
operating performance of the Company. EBITDA is defined as operating
loss less depreciation, amortization, stock-based compensation and
warrant expense. The measure is provided as a proxy for the cash
earnings from the operations of the business as operating loss for the
Company includes non-cash amortization and depreciation expense. The
measure of working capital is provided as management believes this is
a good indicator of the operating liquidity available to the Company.
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 may include financial and other projections as well as
statements regarding the Company's future plans, objectives,
performance, revenues, growth, profits, operating expenses or the
company's underlying assumptions. The words "may", "would", "could",
"will", "likely", "expect," "anticipate," "intend", "plan",
"forecast", "project", "estimate" and "believe" or other similar words
and phrases may identify forward-looking statements or information.
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: economic conditions; dilution; limited history of
profits and operations; operational risk; distributor risks; working
capital; potential conflicts of interest; speculative investment;
volatility of stock price; intellectual property risks; disruptions in
production; reliance on key personnel; seasonality; management's
estimates; competitors; regulatory requirements; reliance on few
suppliers; reliance on subcontractors; technological milestones;
operating cost fluctuations; fluctuations in exchange rates; product
liability and medical malpractice claims; access to credit; taxation;
potential unknown liabilities; the need to develop, integrate and
deploy software solutions to meet its customers' requirements; the
possibility of development or deployment difficulties or delays; the
dependence on its customers' satisfaction; the timing of entering into
significant contracts; its customers' continued commitment to the
deployment of the Corporation's solutions; the risks involved in
developing integrated software solutions and integrating them with
third-party products and services; the performance of the global
economy and growth in software industry sales; market acceptance of
the Corporation's products and services; customer and industry analyst
perception of the Corporation and its technology vision and future
prospects; the success of certain business combinations engaged in by
the Corporation or by its competitors;
possible disruptive effects of organizational or personnel changes;
technological change, new products and standards; risks related to
acquisitions and international expansion; reliance on large customers;
concentration of sales; international operations and sales; management
of growth and expansion; dependence upon key personnel and hiring;
reliance on a limited number of suppliers; risks related to the
Corporation's competition; the Corporation not adequately protecting
its intellectual property; risks related to product defects and
product liability; currency exchange rate risk; and including, but not
limited to, 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, 2011. This list is not exhaustive of
the factors that may affect the Company's forward-looking information.
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.
About LED Medical Diagnostics Inc.
LED Medical Diagnostics Inc. was founded in 2003 and is headquartered
in Burnaby, British Columbia, Canada. Its wholly-owned subsidiary, LED
Dental Inc., is the manufacturer of the Velscope Vx oral cancer
screening system. Velscope Vx devices, the first to apply tissue
fluorescence visualization technology to the oral cavity, are used to
conduct more screenings for oral cancer and other oral diseases than
any adjunctive device in the world. For more information, call +1
About the VELscope Vx
The Velscope Vx is a powerful FDA-approved tool used to screen for
oral cancer. It saves lives by helping detect early stage oral cancer
and pre-cancer and other abnormalities in the mouth such as viral,
fungal and bacterial infections. The Velscope Vx is exclusively
distributed worldwide through a partnership with Henry Schein, the
world's largest dental distribution company. For more information
please call +1 (604) 434-4614, or visit
Diagnostics Inc.'s complete online annual report. If you require a
hard copy please call Investor Relations.
(1) 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.
(2) 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 IFRS measure. EBITDA
referenced here relates to operating loss less amortization,
depreciation, stock-based compensation and warrant expense. Please
refer to the reconciliation of EBITDA to reported financial results
attached to this press release.
(3) 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 IFRS measure. Working capital
is defined as current assets less current liabilities.