Aurora Spine Corporation (“Aurora Spine” or the “Company”) (TSXV:
ASG) (OTCQB: ASAPF), a leader in spine and interventional spine
technology that improves spinal surgery outcomes, today announced
its financial results for first quarter ended March 31, 2024.
All figures are in U.S. dollars.
Financial and Business Highlights
- Positive
EBITDAC – Q1 2024 EBITDAC was $117,171 as compared to
($377,871) in Q1 2023, an improvement of $495,042. This represents
the third consecutive quarter of positive EBITDAC, and the second
consecutive quarter of $4 million plus in revenue.
- Sales
growth – Q1 2024 sales of $4,013,801, represents an
Increase of $1,055,713 or 35.7% compared to sales of $2,958,088 in
the same period the previous year.
- Higher Margins –
Gross margin of 61.9% in the current period is a 10.2% increase
over the 51.7% gross margin in the comparable period of the
previous year. Margin growth is driven by sales of higher margin
implants and decreased distributor commissions as a percentage of
sales offset by higher royalty and shipping costs.
- SiLO
sales – Sales of the SiLO-TFX SI joint implant and SiLO
allograft implant made up 35.2% or $1.41 million in sales in the
quarter as compared to 20.3% or $601K in the same period the
previous year and 32.8% or $1.33 million of sales in Q4 2023. Sales
of the higher margin SiLO-TFX implants are related to expansion in
the pain market.
- Zip 51
– Sales of the Zip 51 implant increased to $544,190 as
compared to $185,490 in the same period the previous year, an
increase of 193%. Increased marketing of the product among surgeons
led to increased use and an overall increase in Zip sales.
- Sales
force – The Company continued to expand its sales force in
the first quarter. This has contributed to our increased sales, and
as the new sales staff bring new surgeons to Aurora, we expect
their success to continue. The Company also plans to add additional
new sales staff in 2024.
- Training – The
Company continued to conduct more advanced training sessions and
cadaver labs that introduced leading orthopedic, neurosurgical, and
pain management physicians to the ZIP™ and SiLO™ implants.
Management Commentary
“Aurora Spine's commitment to innovation is exemplified by our
state-of-the-art technology platforms, renowned for their superior
performance and clinical efficacy,” said Trent Northcutt, CEO and
President of Aurora Spine. "The ZIP, SiLO-TFX, and DEXA
technologies are leading the way to increased revenues and
margins."
Northcutt emphasized the importance of strategic alliances in
Aurora Spine's growth strategy. "Aurora continues to cultivate
strategic alliances with healthcare providers, surgery centers and
distributors to extend our reach and to set new standards of
accessibility and care, especially within the growing sacroiliac
fusion market."
Mr. Chad Clouse, Chief Financial Officer of
Aurora Spine, added, “The Company shows continued progress with a
third consecutive EBITDAC positive quarter and the second
consecutive quarter with $4 million plus in sales. The Company has
continued to invest in cost control through the asset purchase of a
local supplier. This investment will allow the company to produce
its own implants, instruments, and allow for quick prototyping of
future products at a lower cost.”
Financial Results
Total revenues for the first quarter of 2024
were $4.01 million, an increase of 35.7% when compared to $2.96
million in the same quarter one year ago. The quarter saw increased
activity in the pain market with increased SI joint implant sales
due to SiLO TFX and continued growth in Zip implants. We have also
been targeting the pain market with increased marketing, training,
new product releases, and an increase in the sales force. This has
resulted in a changing product mix with large increases in our ZIP
51 and SiLO TFX sales.
Gross margin on total revenues were 61.9% for
the first quarter of 2024, compared to 51.7% in Q1 of 2023. The
improvements in gross margins are attributable to the company’s
strategy of selling more proprietary, Aurora Spine products into
markets with improved pricing, like ambulatory surgery centers. As
the company continues to focus on growing sales of proprietary
products, gross margin has the capabilities for additional
improvements, dependent upon sales mix and shipping costs.
Total operating expenses were $2.75 million for
the first quarter of 2024, compared to $2.19 million in the first
quarter of 2023. Operating expenses are higher during the current
quarter primarily due to an increase in salary expense offset by a
decrease in research and development and professional fees. Salary
expense and travel costs increased as the Company hired more
salespeople.
EBITDAC (a non-GAAP figure non IFRS measure
defined as Earnings before Interest, Tax, Depreciation,
Amortization and Stock based compensation) was $0.12 million for
the first quarter of 2024, compared to $(0.38) million in the first
quarter of 2023. EBITDAC improvements were due to higher gross
margin levels from selling more proprietary products.
Net loss was $(0.267) million for the first
quarter of 2024, compared to the first quarter of 2023 with a loss
of $(0.663) million. Basic and diluted net loss per share was
$(0.00) per share in the first quarter of 2024 and $(0.01) per
share for the first quarter of 2023.
Full financial statements can be found on SEDAR at
(www.sedarplus.ca).
SELECTED STATEMENT OF FINANCIAL POSITION
INFORMATION
The following table summarizes selected key
financial data.
As at |
March 31, 2024 |
December 31, 2023 |
December 31, 2022 |
|
$USD |
$USD |
$USD |
Cash |
366,756 |
766,829 |
423,401 |
Receivables |
4,324,354 |
3,968,439 |
3,666,310 |
Prepaid and other current assets |
258,864 |
204,173 |
186,800 |
Inventory |
3,631,876 |
3,562,349 |
3,054,173 |
Current Assets |
8,581,850 |
8,501,790 |
7,330,684 |
Notes Receivable |
460,193 |
454,628 |
- |
Intangible Assets |
903,514 |
753,180 |
881,354 |
Property and Equipment |
2,087,288 |
2,275,478 |
1,910,940 |
Total Assets |
12,032,845 |
11,985,076 |
10,122,978 |
Current Liabilities |
3,566,977 |
3,273,058 |
3,029,599 |
Non-Current Liabilities |
3,394,706 |
3,414,695 |
2,773,919 |
Share Capital |
27,657,591 |
27,657,591 |
25,218,093 |
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 |
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30,2022 |
|
|
$USD |
|
$USD |
|
$USD |
|
$USD |
|
$USD |
|
$USD |
|
$USD |
|
$USD |
|
Revenue |
4,013,801 |
|
4,044,234 |
|
3,949,530 |
|
3,568,583 |
|
2,958,088 |
|
3,609,514 |
|
3,648,680 |
|
4,067,166 |
|
Cost of goods sold |
(1,529,538 |
) |
(1,749,216 |
) |
(1,592,530 |
) |
(1,537,410 |
) |
(1,429,987 |
) |
(1,783,881 |
) |
(1,706,677 |
) |
(1,926,683 |
) |
Gross profit |
2,484,263 |
|
2,295,018 |
|
2,357,000 |
|
2,031,173 |
|
1,528,101 |
|
1,825,632 |
|
1,942,003 |
|
2,140,483 |
|
Operating expenses |
2,751,188 |
|
2,580,613 |
|
2,606,618 |
|
2,513,587 |
|
2,191,039 |
|
2,665,203 |
|
2,057,655 |
|
2,367,985 |
|
EBITDAC* |
117,171 |
|
109,734 |
|
120,796 |
|
(163,660 |
) |
(377,871 |
) |
(358,311 |
) |
150,687 |
|
96,285 |
|
Net loss |
(266,925 |
) |
(285,595 |
) |
(249,618 |
) |
(482,414 |
) |
(662,938 |
) |
(839,570 |
) |
(115,652 |
) |
(159,667 |
) |
Basic and diluted loss per share** |
(0.00 |
) |
(0.00 |
) |
(0.00 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) |
(0.00 |
) |
(0.00 |
) |
* 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.
First Quarter 2024 and Fiscal Year 2023 Conference Call
Details
Date and Time: Tuesday May 14, 2024, 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/JbqanyRDeyx.
Replay: A teleconference replay of the call
will be available until May 21, 2024, at (877) 344-7529 or (412)
317-0088, replay access code 9427446. Additionally, a replay of the
webcast will be available at https://app.webinar.net/JbqanyRDeyx
for 90 days.
About Aurora Spine
Aurora Spine is focused on bringing new solutions to the spinal
implant market through a series of innovative, minimally invasive,
regenerative spinal implant technologies. 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
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