Aurora Spine Corporation (“Aurora Spine” or the “Company”) (TSXV:
ASG) (OTCQB: ASAPF), a designer and manufacturer of innovative
medical devices that improve spinal surgery outcomes, today
announced the financial results for its third quarter fiscal 2023
ended September 30, 2023. All figures are in U.S. dollars.
HIGHLIGHTS DURING THE PERIOD
- Growing Sales – Q3
Sales of $3.9 million compared to $3.6 million in same quarter last
year up 7.7%.
- Product mix –
Gross margin percentage increased to 59.7% in Q3 2023 compared to
53.2% in Q3 2022. A change in product mix lead by growth in our
Pain division has resulted in an overall higher gross margin and
higher gross margin as a percentage of sales.
- Full Release of SiLO TFX
– With over 35 instrument sets release to the sales team,
SiLO TFX sales increased 51% quarter over quarter making up 30.5%
of sales in Q3 2023. Total SI joint product sales in 2023 were
24.8% of sales compared to 20.4% in the comparable period. The
Company is very pleased with these results as throughout the latter
half of 2022 and early 2023, our SiLO bone dowel SI Joint product
was negatively affected by changes in coding and reimbursement
allowances to physicians and surgery centers using these allograft
(bone) products and procedures.
- Positive EBITDAC –
The Company had positive EBITDAC of $120,796 in Q3 2023 compared to
($163,660), ($378,871) and ($358,311) in the three previous
quarters.
- Hired more Sales
Staff– The Company hired two new sales associates in Q3
with a focus in the Southeast and the Southwest. These hires are
expected to help drive sales growth in 2024. The Company expects to
hire two more sales associates in Q4.
Management Commentary
Mr. Trent Northcutt, President and Chief Executive Officer of
Aurora Spine, stated, “We are pleased with our third quarter’s
results. Our success in the third quarter is attributed to our
laser-focused execution across all facets of Aurora Spine &
Pain. We are well-positioned for continued growth with plans to
expand our presence across the U.S. in both the hospital and
ambulatory surgery center settings. We expect to finish 2023 strong
and look forward to carrying our success and momentum into
2024.”
Financial Results
Total revenues for the third quarter of 2023 were $3.95 million
an increase of 8.2% when compared to $3.65 million in the same
quarter one year ago. The increase is due to gains with pain
doctors and interventional radiologists offset by decreases in the
Ortho/Neuro side of our business. The decrease in the Ortho/Nuero
revenue is due to lower sales of lumbar screws, cervical cages, and
cervical plates due to several factors including delays in securing
cervical plate toolsets and inventory from our European supplier
resulting in a loss of surgeries and necessitating sourcing onshore
production.
Gross margin on total revenues were 59.7% for the third quarter
of 2023, compared to 53.2% in Q2 of 2022. The year-over-year change
in gross margins was attributable to the product mix in the quarter
with increased sales of higher margin products, like ZIP and SiLO
TFX.
Total operating expenses were $2.607 million for the third
quarter of 2023, compared to $2.058 million in the third quarter of
2022. Operating expenses increased during the third quarter
primarily due to increased marketing and training and expenses
incurred from the hiring of new sales personnel.
EBITDAC (a non-GAAP figure non IFRS measure defined as Earnings
before Interest, Tax, Depreciation, Amortization and Stock based
compensation) was $0.121 million for the third quarter of 2023,
compared to $0.151 million in the third quarter of 2022.
Net loss was $(0.250) million for the third quarter of 2023,
compared to the third quarter of 2022 with a loss of $(0.116)
million. Basic and diluted net (loss) income per share was $(0.00)
per share in the third quarter of 2023 and $(0.00) per share for
the third quarter of 2022.
Full financial statements can be found on SEDAR+ at
(www.sedarplus.ca).
SELECTED BALANCE SHEET
INFORMATION
The following table summarizes selected key
financial data.
As at |
September 30, 2023 |
December 31, 2022 |
December 31, 2021 |
|
$ |
$ |
$ |
Cash |
373,385 |
423,401 |
3,172,575 |
Receivables |
3,538,120 |
3,666,310 |
2,668,174 |
Prepaid and other current assets |
135,393 |
186,800 |
674,687 |
Inventory |
3,353,033 |
3,054,173 |
1,889,640 |
Current Assets |
7,399,931 |
7,330,684 |
8,405,076 |
Intangible Assets |
787,846 |
881,354 |
854,331 |
Property and Equipment |
2,568,540 |
1,910,940 |
1,304,242 |
Total Assets |
10,756,317 |
10,122,978 |
10,563,649 |
Current Liabilities |
3,653,348 |
3,029,599 |
2,627,281 |
Non-Current Liabilities |
3,369,861 |
2,773,919 |
2,367,056 |
Share Capital |
26,105,376 |
25,218,093 |
25,087,474 |
SELECTED QUARTERLY INFORMATION
The Company’s functional currency is the US dollar (USD). The
functional currency of the Company’s US subsidiary Aurora is
USD.
Operating results for each quarter for the last
two fiscal years are presented in the table below.
Quarters End |
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31, 2021 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Revenue |
3,949,530 |
|
3,568,583 |
|
2,958,088 |
|
3,609,514 |
|
3,648,680 |
|
4,067,166 |
|
3,551,964 |
|
2,964,980 |
|
Cost of goods sold |
(1,592,530 |
) |
(1,537,410 |
) |
(1,429,987 |
) |
(1,783,881 |
) |
(1,706,677 |
) |
(1,926,683 |
) |
(1,650,355 |
) |
(1,602,047 |
) |
Gross profit |
2,357,000 |
|
2,031,173 |
|
1,528,101 |
|
1,825,632 |
|
1,942,003 |
|
2,140,483 |
|
1,901,609 |
|
1,362,933 |
|
Operating expenses |
2,606,618 |
|
2,513,587 |
|
2,191,039 |
|
2,665,203 |
|
2,057,655 |
|
2,367,985 |
|
2,288,186 |
|
2,266,897 |
|
EBITDAC* |
120,796 |
|
(163,660 |
) |
(377,871 |
) |
(358,311 |
) |
150,687 |
|
96,285 |
|
(153,972 |
) |
(566,569 |
) |
Net loss |
(249,618 |
) |
(482,414 |
) |
(662,938 |
) |
(839,570 |
) |
(115,652 |
) |
(159,667 |
) |
(386,577 |
) |
(903,964 |
) |
Basic and diluted loss per share** |
(0.00 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) |
(0.00 |
) |
(0.00 |
) |
(0.01 |
) |
(0.01 |
) |
* EBITDAC is a non-GAAP, non
IFRS measure defined as Earnings before Interest, Tax,
Depreciation, Amortization and Stock based compensation. This
amount includes Gains (losses) on sale of property and equipment
and Other income (expense).** Outstanding options
and warrants have not been included in the calculation of the
diluted loss per share as they would have the effect of being
anti-dilutive.
Third Quarter Fiscal Year 2023 Conference Call
Details
Date and Time: Wednesday, November 15, 2023, at
11:00 a.m. ET / 8:00 a.m. PT
Call-in Information: Interested parties can
access the conference call by dialing (844) 861-5497 or (412)
317-5794.
Webcast: Interested parties can access the
conference call via a live webcast, which is available via the
following link: https://app.webinar.net/GwW2E1YEPoX or in the
Investor Relations section of the Company's website at
https://www.aurora-spine.com/investors-v02.
Replay: A teleconference replay of the call
will be available until November 22, 2023, at (877) 344-7529 or
(412) 317-0088, replay access code 8439397. Additionally, a replay
of the webcast will be available in the Investor Relations section
of the Company's website at
https://www.aurora-spine.com/investors-v02 or at
https://app.webinar.net/GwW2E1YEPoX for 90 days.
About Aurora Spine
Aurora Spine is focused on bringing new solutions to the spinal
and SI joint implant market through a series of innovative,
minimally invasive, regenerative spinal implant technologies.
Aurora's goal is to improve patients’ quality of life by developing
and distributing implants using its proprietary technologies to
relieve back pain and preserve spinal bone structure and anatomy.
The company’s fully developed product portfolio primarily addresses
the market need for minimally invasive spinal and SI joint surgical
devices. Additional information can be accessed at
www.aurora-spine.com or www.aurorapaincare.com.
Neither 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 news release contains forward-looking information that
involves substantial known and unknown risks and uncertainties,
most of which are beyond the control of Aurora Spine, including,
without limitation, those listed under "Risk Factors" and
"Cautionary Statement Regarding Forward-Looking Information" in
Aurora Spine's final prospectus (collectively, "forward-looking
information"). Forward-looking information in this news release
includes information concerning the proposed use and success of the
company’s products in surgical procedures. Aurora Spine cautions
investors of Aurora Spine's securities about important factors that
could cause Aurora Spine's actual results to differ materially from
those projected in any forward-looking statements included in this
news release. Any statements that express, or involve discussions
as to, expectations, beliefs, plans, objectives, assumptions or
future events or performance are not historical facts and may be
forward-looking and may involve estimates, assumptions and
uncertainties which could cause actual results or outcomes to
differ unilaterally from those expressed in such forward-looking
statements. No assurance can be given that the expectations set out
herein will prove to be correct and, accordingly, prospective
investors should not place undue reliance on these forward-looking
statements. These statements speak only as of the date of this
press release and Aurora Spine does not assume any obligation to
update or revise them to reflect new events or circumstances.
Contact:
Aurora Spine Corporation
Trent Northcutt
President and Chief Executive Officer
(760) 424-2004
Chad Clouse
Chief Financial Officer
(760) 424-2004
www.aurora-spine.com
Aurora Spine (TSXV:ASG)
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