Advertisement
News
Advertisement

Company Sees 352% Increase in Revenues Over Prior Year

Tue, 04/03/2012 - 4:45am
The Associated Press

(http://www.VELscope.com)

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.

Financial Highlights

-- 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),

respectively.

"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.

Business Highlights

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

transaction costs.

-- 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

news release.

Non-IFRS Measures

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.

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 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

(604) 434-4614, or visit www.velscope.com(http://www.velscope.com).

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

www.velscope.com(http://www.velscope.com).

Please visit www.sedar.com(http://www.sedar.com) for LED Medical

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.

Advertisement

Share this Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading