Vancouver, British Columbia – August 29, 2018 – LED Medical Diagnostics Inc. (“LED” 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 second quarter ended June 30, 2018, 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, 2018 and second quarter ended June 30, 2017.
Revenue for the three months ended June 30, 2018 was $3,671,432 representing an increase of 10% over the immediately preceding quarter. The Company achieved EBITDA1 of $100,433 during the second quarter of fiscal year 2018 compared to $26,296 in the immediately preceding quarter.
“We are experiencing increasingly stronger financial performance since the Apteryx acquisition in early 2017 and anticipate this trend will continue into the future,” commented LED CEO Dr. David Gane. “Approximately 19% of our total revenues are now recurring or repeatable in nature inclusive of over US$1.5 million in annualized monthly recurring revenue (“MRR”) from our XVWeb® SaaS offering. This number is expected to grow as we execute on our plan”, added Dr. Gane. “XVWeb® is near the leading edge of market adoption which I expect will be facilitated by current market trends, including the expanding market presence of Dental Support Organizations (“DSOs”), and growth in the number of cloud practice management offerings in the US market with which to partner and gain wider market access.”
Highlights During the Three Months Ended June 30, 2018
- On April 1, 2018 LED ended its distribution agreement with 3Shape A/S as a reseller of its products and services to focus its resources on its core proprietary imaging devices and software products.
- On April 24, 2018, the Company entered into an amending agreement which extends the payment terms of the February 10, 2017 Apteryx purchase The deferred cash payment of $350,000 has been extended until November 2019 and will bear interest at 12% per annum.
- On May 17, 2018, the Company completed a financing of US$200,000 through the issuance of secured debentures maturing after twelve 12 months, bearing an interest rate of 12%.
Financial Highlights for the Three Months Ended June 30, 2018
Revenue for the three months ended June 30, 2018 was $3,671,432 representing an increase of 10% from the three months ended March 31, 2018 and a decrease of 1% from the three months ended June 30, 2017.
The Company’s gross margin2 was 59% for the three months ended June 30, 2018 as compared to 65% for the three months ended March 31 2018 and 57% in the three months ended June 30, 2017.
EBITDA1 for the three months ended June 30, 2018 was $100,433 representing an increase from $26,296 in the prior quarter and ($16,173) from the three months ended June 30, 2017.
Net income was $378,036 for the three months ended June 30, 2018 compared to net income of $905,233 for the three months ended June 30, 2017.
The Company had cash of $1,174,337 as of June 30, 2018. Cash used in operations was
$178,827 during the three months ended June 30, 2018 compared to $1,096,973 during the three months ended June 30, 2017.
Financial Highlights for the Six Months Ended June 30, 2018
Revenue for the six months ended June 30, 2018 was $7,003,298 representing an increase of 21% from the prior year of $5,802,915. The Company’s gross margin2 was 62% for the six months ended June 30, 2018 as compared to 54% in the prior year period. EBITDA1 for the six months ended June 30, 2018 was $126,729 representing an increase from EBITDA1 of ($721,833) in the prior year period. Net income for the six months ended June 30, 2018 was $453,400 representing an increase from net income of ($182,728) in the prior year period.
Financial Statements and Management’s Discussion & Analysis
Please see the interim consolidated financial statements and related Management’s Discussion & Analysis (“MD&A”) for more details. The interim condensed consolidated financial statements for the three months ended June 30, 2018 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.ledmd.com.
About LED Medical Diagnostics Inc.
LED Medical Diagnostics Inc. is a dental imaging technology provider focused on delivering state-of-the-art imaging software and systems. Through its wholly-owned subsidiaries LED Dental Inc., LED Dental Ltd., and Apteryx, Inc., LED Medical has provided dentists and oral health specialists with advanced diagnostic imaging products and software for over 20 years. LED’s proprietary technologies include the VELscope® Vx Enhanced Oral Assessment and TUXEDO Intraoral Sensors, in addition to Apteryx’s XrayVision, XVWeb® and XrayVision DCV imaging software solutions.
Backed by an experienced leadership team and dedicated to a higher level of service and support, LED is committed to providing dental practitioners with the best technology available by identifying and adding leading products to its growing portfolio.
The Company is currently listed on the TSX-V under the symbol LMD, the OTCQB under the symbol LEDIF, as well as the Frankfurt Stock Exchange under the symbol LME.