Pyng Medical Corp.
TSX VENTURE : PYT

Pyng Medical Corp.

January 14, 2015 09:15 ET

Pyng Medical Corp. Reports Fiscal 2014 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 14, 2015) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced financial and operating results for the fiscal year ended September 30, 2014. All amounts are in Canadian dollars unless stated otherwise.

The Company reported total sales of $5,277,397 for fiscal 2014, up $203,433 or 4% from $5,073,964 reported a year ago. This increase was primarily driven by sales from new products. In fiscal 2014, the Company continued its growth strategy which primarily was to expand in the international market. International sales increased to $2,185,923, up 49% from $1,468,983 reported in fiscal 2013. Gross margin as a percentage of sales decreased from 46% in fiscal 2013 to 45% this year due to higher unit costs of the newly launched products. It should be noted that a manufacturing backorder of $929,213 existed at fiscal year-end. Therefore, actual FY14 sales (as opposed to shipped sales for reporting purposes) amounted to $6,206,610. Company growth should be viewed within this context.

The Company also reported a net loss of $796,438 for fiscal 2014, an increase of $104,459, or 15% compared to a net loss of $691,979 last year. The increased loss reflected an impairment loss recorded this year on some intangible assets, and the absence of interest income and refundable investment tax credit the Company recorded in fiscal 2013. Loss per share decreased to $0.03 for fiscal year 2014, compared to net loss of $0.04 per share for last year. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations increased to $126,244 during the year from $107,865 during fiscal 2013. EBITDA as a percentage of sales remained flat at 2% for these two years.

For the fourth quarter ended September 30, 2014, the Company recorded total sales of $1,326,330, down $417,615 or 24% compared to $1,743,945 reported for the comparative quarter of last year. Gross margin decreased from $743,284 to $519,322 due to the sales decrease. Net loss of $336,746 was reported for the fourth quarter this year compared to the net income of $129,552 for last year.

As of September 30, 2014, the Company had a working capital deficiency of $817,303, which decreased by $130,549, compared with the deficiency of $947,852 as at September 30, 2013. During fiscal 2014, the Company had been actively working on several financing options to meet working capital needs and fulfill its debt obligations. In October 2013, the Company closed a share for debt transaction and issued a total of 6,645,080 common shares at $0.09 per common share to reduce a short-term loan of $598,057. A promissory note was also signed with a strategic supplier to settle manufacturing and product development costs owing. In August 2014, the Company also amended the terms and conversion price for the convertible debentures which were issued in 2009. The Company will continue to work on strategic financing options in the new fiscal year to improve its working capital position. 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.

Contact Information

  • Pyng Medical Corp.
    George Dorin
    Chief Financial Officer
    (604) 303-7964 x219
    www.pyng.com