VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/25/15 -- Pyng Medical Corp. (TSX VENTURE: PYT) today announced financial and operating results for the three and nine month periods ended June 30, 2015. All amounts are in Canadian dollars unless stated otherwise.
The Company achieved strong sales growth during the quarter ended June 30, 2015. Total sales of $1,974,772 were reported, which more than doubled the amount of $947,772 reported for the third quarter of last year. This revenue amount was the highest quarterly sales total that the Company has reached over the past four years. The sales increase can primarily be attributed to both higher IO product sales, due to strong demand from the military market segment, as well as TPOD sales growth into the civilian market segment.
Gross margin increased to $895,100 with the higher sales achieved this quarter. Gross margin as a percentage of sales decreased to 45% from 52% a year ago. This decrease can primarily be attributed to market segment specific sales promotions, which also drove sales volumes during the quarter. Total expenses went up 29%, to $873,018, as a result of higher general and administrative expenses and sales and marketing expenses, partially offset by lower amortization of intangible assets and interest expenses.
The Company reported a net income of $22,082 for this quarter, equal to $0.001 per share, compared to a net loss of $181,931, or loss of $0.01 per share reported one year ago. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations rose to $184,031, more than five times higher than the $32,717 reported for the third quarter of fiscal 2014.
For the nine-month period, total sales of $5,139,375 were reported, up 30% from $3,951,066 for the comparative period last year. Gross margin increased to $2,407,290 this year from $1,872,080 and gross margin as a percentage of sales remained flat at 47% for the same nine-month period last year. Operating expenses went up 12% to $2,600,413, from $2,329,466 reported a year ago. Increased expenses reflected higher general and administrative, sales and marketing, and product development costs and also a higher foreign exchange loss of $149,154 resulting from the continuing weakening of the Canadian dollar.
As at June 30, 2015, the Company's cash balance increased to $473,109, from the $153,224 reported as at September 30, 2014, and the working capital deficiency decreased to $735,563 from $817,303. During the quarter ended June 30, 2015, the Company paid back total principal of $85,362 on its promissory notes. Subsequent to quarter end, the Company renewed convertible debentures with amended terms and closed a shares for debt transactions to settle a partial amount owing of outstanding director fees. The Company continues to pursue debt and/or equity financing to help fund working capital needs. There can be no assurance that these initiatives will be successful.
Full audited financial results for fiscal year ended September 30, 2014 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.
Pyng Medical Corp.
Chief Financial Officer
(604) 303-7964 x219