Vancouver, British Columbia – May 29, 2019 – 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 first quarter ended March 31, 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 first quarter ended March 31, 2018.
“The record EBITDA1 reported in Q1, which has historically been a seasonally weak quarter for the Company, was driven by a 46% year-over-year (and 26% vs. Q4/2018) increase in software revenues, including recurring revenue growth from our XVWeb® SaaS offering,” commented LED CEO David Gane. “The higher gross margin associated with this business line and synergies between our software and imaging device businesses drove the strong EBITDA performance in the quarter. We are excited to see the software revenue growth and operational efficiencies starting to drive the consistent improvements in our financial results.”
Financial Highlights for the three months ended March 31, 2019
Net revenue for the three months ended March 31, 2019 was $3,814,466 representing an increase of 14% from the three months ended March 31, 2018. The Company’s gross margin2 was 68% for the three months ended March 31, 2019 as compared to 65% for the three months ended March 31, 2018. EBITDA1 for the three months ended March 31, 2019 was $552,714 compared to EBITDA1 of $26,296 for the three months ended March 31, 2018.
Net loss for the three months ended March 31, 2019 was $613,994 compared to net income of $75,366 for the three months ended March 31, 2018. The higher net loss for the quarter was due in large part to non-cash changes in the fair value of derivative liabilities and warrants ($433,800 loss in Q1/2019) and foreign exchange losses ($137,773 loss in Q1/2019 compared to a gain of $118,868 in Q1/2018).
Cash flow from operations was $521,806 during the three months ended March 31, 2019 compared to cash flow from operations of ($581,612) during the three months ended March 31, 2018. Inflows from financing for the three months ended March 31, 2019 and March 31, 2018 were nil. The cash outflows from financing activities were $842,937 relating to the repayment of debentures.
Interest expenses totaled $294,529 for the three months ended March 31, 2019 which included non-cash interest expense of $140,770 relating to the accretion of interest for the preferred shares and lease obligations. The Company has current annual interest obligations of 5% for the preferred shares and 12% for the debentures.
The Company had cash on hand of $2,540,051 and Net Working Capital of $1,489,951 as of March 31, 2019 compared to cash of $1,433,006 and Net Working Capital of ($2,790,566) as of March 31, 2018. Net Working Capital is defined as total current assets less total current liabilities.
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, 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 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.