Pyng Medical Corp.
TSX VENTURE : PYT

Pyng Medical Corp.

August 23, 2016 17:00 ET

Pyng Medical Corp. Reports Third Quarter Fiscal 2016 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 23, 2016) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced financial and operating results for the three and nine months June 30, 2016. All amounts are in Canadian dollars unless stated otherwise.

The Company reported total sales of $1,336,501 for the three months ended June 30, 2016, down 32% from $1,974,772 reported for the third quarter fiscal 2015.The sales decrease was primarily attributed to a cyclical drop in sales from the military market segment, which has been the case for much of fiscal 2016. In this third quarter, the decrease was partially offset by the increased sales from the civilian market via the Company's trauma products (TPOD and MAT). It is expected that military revenues will rebound and improve in coming quarters and purchase orders have been increasing for several months. The Company is actually starting to see an increase in Military orders now and thus its Backorder position is increasing. Gross margin as a percentage of sales increased to 46% from 45% a year ago, driven by the cost reduction on trauma products. Operating expenses increased 6% to $883,238 from $832,655 reported a year ago. The higher sales & marketing expenses is the main contributor for the operating expense increase.

The Company reported a net loss of $299,595 for this quarter, equal to a loss of $0.011 per share, compared to a net income of $22,082 or $0.001 per share one year earlier. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were a loss of $162,236, a decrease of $346,267 from earnings of $184,031 reported for the third quarter of fiscal 2015.

For the six months ended June 30, 2016, total sales of $3,776,578 were recorded, down 27% from $5,139,375 for the comparative period last year due to the lower military sales, partially offset by increased sales on trauma products from the civilian market. Gross margin as a percentage of sales remained flat at 47% with last year, but the total amount decreased to $1,761,332 from $2,407,390 reported one year ago. Total operating expenses went up 22% to $2,795,941 from $2,300,190 with market for the comparative period of last year, primarily attributed to the higher sales and marketing expenses.

As at June 30, 2016, the Company had a cash balance of $607,852, an increase of $100,343 compared with the balance of $507,509 as at September 30, 2015. The working capital deficiency increased however, from $383,337 as at September 30, 2015 to $1,200,056 as at June 30, 2016. During the quarter ended June 30, 2016, the Company paid back principal of $175,749 on two promissory notes, including one which was fully paid out. The Company continues to pursue debt and/or equity financing to help fund its working capital needs. There can be no assurance that these initiatives will be successful.

Full audited financial results for fiscal year ended September 30, 2015 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

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