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Apteryx Imaging Inc. Reports 2020 First Quarter Results

  • May 27, 2020
  • News Releases

Vancouver, British Columbia – May 27, 2020 – Apteryx Imaging Inc. (TSXV: XRAY and OTCQB: APTEF) (“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 first quarter ended March 31, 2020, 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, 2019.

Financial Highlights for the Three Months Ended March 31, 2020

Net revenue for the three months ended March 31, 2020 was US$3,879,086, representing an increase of 2% from the three months ended March 31, 2019. The Company’s gross margin2 was 72% for the three months ended March 31, 2020 as compared to 68% for the three months ended March 31, 2019. EBITDA1 for the three months ended March 31, 2020 was US$497,936 compared to EBITDA1 of US$552,714 for the three months ended March 31, 2019.

Net income for the three months ended March 31, 2020 was US$1,182,312 compared to net loss of US$613,994 for the three months ended March 31, 2019. Net income for the three months ended March 31, 2020 was impacted by non-cash items including amortization, unrealized foreign exchange gains and a fair value revaluation of derivatives.

Cash flow from operations was US($255,154) during the three months ended March 31, 2020 compared to cash flow from operations of US$521,806 during the three months ended March 31, 2019.

The Company had cash on hand of US$1,481,839 and Net Working Capital3 of US$2,111,243 as of March 31, 2020 compared to cash of US$2,540,051 and Net Working Capital3 of US$1,489,951 as of March 31, 2019.

“Revenues related to device sales were negatively impacted in the period by the COVID- 19 pandemic,” commented Apteryx CEO Dr. David Gane. “Dentistry in the U.S. was hit hard by the pandemic with most dental practices closing to all but emergency care by the third week of March 2020. Fortunately, we are now seeing very solid signs of recovery with 42 states now re-opened for elective procedures, which is very encouraging.”

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, 2020 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.

Media Contact:

Chris Koch
Phone: 678-293-9413
Email: chris.koch@apteryx.com

Corporate Contact:

Dr. David Gane, CEO
Phone: 604-434-4614 x227
Email: david.gane@apteryx.com

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 operational risk; debt repayment risk including the risk that some or all of the amounts received under the paycheck protection program may be repayable; competition risks, distributor risks, working capital requirements; new diseases and epidemics (such as COVID 19); 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, 2019. 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, marketing, support, 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.

3 Net Working Capital is defined as total current assets less total current liabilities.