Vancouver, British Columbia – November 26, 2019 – Apteryx Imaging Inc. (“Apteryx” 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 third quarter ended September 30, 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 second quarter ended June 30, 2019 and third quarter ended September 30, 2018.
“After two consecutive quarters of delivering positive financial performance year to date, revenues declined by 20% from last quarter to $3.2M for the seasonally slower Q3 period”, commented LED CEO Dr. David Gane. “VELscope experienced a supply disruption of a critical component and sales of perpetual software licenses were lower than anticipated for the period. However, Q3 was a strong quarter for XVWeb® subscriptions putting us on track to add 1,000 unique locations in 2019. EBITDA1 for the nine months ended September 30, 2019 was USD$1,016,446 compared to USD$513,775 for the same period in the prior year representing solid growth. I am also pleased to report that subsequent to the close of the third quarter the Company paid its maturing debenture obligation to the debenture holders in the principal amount of CDN$2,500,000, plus accrued interest.”
Financial Highlights for the three months ended September 30, 2019
Net revenue for the three months ended September 30, 2019 was USD$3,166,093 representing a decrease of 20% from the three months ended June 30, 2019 and 7% from the three months ended September 30, 2018. The Company’s gross margin2 was 67% for the three months ended September 30, 2019 as compared to 68% for the three months ended June 30, 2019 and 68% for the three months ended September 30, 2018. EBITDA1 for the three months ended September 30, 2019 was (USD$49,802) compared to EBITDA1 of USD$513,534 for the three months ended June 30, 2019 and EBITDA1 of USD$385,624 for the three months ended September 30, 2018.
Interest expenses totaled USD$295,757 for the three months ended September 30, 2019 which included non-cash interest expense of USD$152,790 relating to the accretion of interest for the preferred shares and lease obligations. The Company has current annual interest obligations of 5% for its preferred shares and 12% for its debentures (which expired October 30, 2019).
Net loss for the three months ended September 30, 2019 was USD$436,293 compared to net loss of USD$242,480 for the three months ended June 30, 2019 and net loss of USD$176,507 for the three months ended September 30, 2018.
Cash flow from operations was (USD$121,214) during the three months ended September 30, 2019 compared to cash flow from operations of USD$109,066 during the three months ended June 30, 2019 and USD$114,377 for the three months ended September 30, 2018. Cash inflows from financing activities for the three months ended September 30, 2019 and June 30, 2019 were nil; for the three months ended September 30, 2018 net cash proceeds from financing activities was USD$2,139,802 from a preferred share issuance less payments of debentures and deferred consideration.
The Company had cash on hand of USD$2,468,056 and Net Working Capital of USD$1,521,464 as of September 30, 2019 compared to cash of USD$2,777,891 and Net Working Capital of USD$1,762,943 as of June 30, 2019. Net Working Capital is defined as total current assets less total current liabilities.
Financial Highlights for the Nine Months Ended September 30, 2019
Revenue for the nine months ended September 30, 2019 was USD$10,913,643 representing an increase of 5% from the prior year of USD$10,404,183. The Company’s gross margin2 was 67% for the nine months ended September 30, 2019 as compared to 64% in the prior year period. EBITDA1 for the nine months ended September 30, 2019 was USD$1,016,446 representing an increase from EBITDA1 of USD$512,353 in the prior year nine-month period. Net income for the nine months ended September 30, 2019 was (USD$1,292,767) representing a decrease from net income of USD$278,317 in the prior year nine-month period.
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 September 30, 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.apteryx.com.
About Apteryx Imaging Inc.
Apteryx Imaging develops award-winning dental imaging software and oral screening technologies while also providing state-of-the-art dental imaging devices. Our customers include many of the largest dental practices and organizations in the world, including many of the country’s top Dental Support Organizations (DSOs), the United States Army and the United States Navy. Our proprietary brands include Apteryx XrayVision® imaging software, the VELscope® Enhanced Oral Screening System and TUXEDO® Intraoral Sensors.
Backed by an experienced leadership team and dedicated to a higher level of service and support, Apteryx Imaging is committed to providing dental practitioners with the best technology available by identifying and adding leading products to its growing portfolio.
Apteryx Imaging, Inc. is publicly traded on the TSX-Venture Exchange (TSX-V: XRAY), OTCQB (OTCQB: APTEF), and the Frankfurt Stock Exchange (FSE: XRAY). Apteryx Imaging, Inc. is headquartered in Vancouver, BC, Canada.
