VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 28, 2017) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced financial and operating results for the first quarter fiscal 2017. All amounts are in Canadian dollars unless stated otherwise.
The Company reported total sales of $2,081,671 for the three months ended December 31, 2016, up $859,673 or 70% from $1,221,998 reported a year ago. The sales increase was primarily attributed to a sales rebound of sternal IO products from the military market. In addition, sales of trauma products from the civilian market continued to increase which partially contributed to the sales growth during this quarter. As a result, gross margin increased 96% to $1,081,545 from $550,418 reported for the comparative quarter last year. Gross margin as a percentage of sales increased to 52% as compared to 45% reported a year ago, driven by new pricing structure implemented this quarter and increased sales of the higher margin products.
Total operating expenses went up 10% to $1,192,701 this quarter compared to 1,081,381 for the first quarter fiscal 2016, primarily attributed to the M&A transaction costs and higher interest expenses. The Company also reported a net loss of $111,156, down 79% compared to a net loss of $530,963 reported a year ago. The net loss per share decreased to $0.004 from a net loss of $0.02 per share reported a year ago. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations increased to $164,349 from negative $373,907 reported for the first quarter last year.
As of December 31, 2016, the Company had a working capital of $416,788, an increase of $1,683,417, compared to the deficiency of $1,266,629 as at September 30, 2016. During this quarter, the Company completed amendments for the previously issued convertible debentures and the secured note with its largest manufacturing partner. Subsequent to the quarter end, the Company also announced a divestiture transaction with a strategic purchaser which is subject to a number of conditions to close, including shareholder and various regulatory approvals.
Full audited financial results for fiscal year ended September 30, 2016 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.
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