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Wed, January 11, 2012
Tue, January 10, 2012 Pyng Medical Corp. Reports Fiscal 2011 Financial Results
January 10, 2012 20:52 ET
Pyng Medical Corp. Reports Fiscal 2011 Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2012) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced its financial and operating results for the year ended September 30, 2011. All amounts are in Canadian dollars unless stated otherwise.
The Company reported total sales of $6,050,421 for fiscal 2011, down 15% from $7,088,837 reported for fiscal 2010. This decline in revenue was primarily attributed to the significant reduction in sales during the fourth quarter resulting from reduced demand from the U.S.A. military market. Gross margin of $3,855,021 for the year ended September 30, 2011 decreased to 68% of the sales from 72% one year ago, primarily due to the lower sales. In addition, the continuous appreciation of the Canadian dollar against U.S dollar is another major contributor for the lower margin this year. The total operating expenses decreased 8% to $4,070,205 from $4,442,124 of last year as a result of lower expenses incurred on salaries and benefits, professional fees and travel expenses.
The Company also reported a net loss of $194,184 this year, or loss of $0.01 per share, compared to a net income of $283,415 or earning of $0.02 per share for fiscal 2010. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations decreased to $530,284, 9% of the sales compared with the EBITDA of $1,041,438, or 15% of the sales for fiscal 2010.
For the fourth quarter ended September 30, 2011, the Company recorded sales of $995,611, a decrease of $1,638,184 or 62% as compared with $2,633,795 for the comparative quarter of fiscal year 2010. The operating expenses increased by 9% to $1,160,853. The net loss rose to $635,320 which reversed out the net income earned in the comparative quarter one year ago due to lower sales from the U.S.A. military in 2011.
As at September 30, 2011, the Company had a cash balance of $195,414 and working capital of $113,710, representing a decrease of $87,579 and $647,545 respectively, compared to the year ended September 30, 2010. The significant decline in working capital was caused by the decrease in sales combined with FASTx re-launch costs (estimated at US$2,000,000).
The Company is currently pursuing additional debt and/or equity financing to fund its working capital needs. Management hopes to secure the necessary financing through the combination of new credit facilities and issuance of new equity or convertible debt instruments. There can be no assurance that these initiatives will be successful.
The Company also announced that one of the Audit Committee members Michael Jacobs has resigned from the Audit Committee leaving three remaining members, the majority of which the Company believes to be independent, and thus the resignation will not impact the ability of the Committee to function as required by TSXV Policies.
Full audited financial results for fiscal year ended September 30, 2011 are available on SEDAR at [ www.sedar.com ].
About Pyng Medical Corp.
Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Pyng's expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide.
Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.
Neither the TSX Venture Exchange nor its Regulatory Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
