CARLSBAD, Calif., Oct. 24, 2024 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2024.
All figures are in U.S. dollars.
"The third quarter demonstrated how Aurora Spine is executing on its strategic plan and focused on growth and profitability," said Trent Northcutt, CEO of Aurora Spine. "This quarter has been nothing short of extraordinary, proving the power of our innovative product portfolio and our relentless commitment to patient-first technologies. With strong contributions from our leading solutions—such as the SiLO?-TFX System, ZIP-LP & 51? system, and DEXA-C technologies—we’ve knocked it out of the park with nearly a 21% increase in total revenues for the third quarter of 2024 over the same quarter one year ago. Our talented regional sales leadership teams have been the all-star players driving these incredible results, and their energy is propelling us toward even greater success."
"Looking ahead, we’re not slowing down. We are building momentum with new training labs, multicenter studies featuring the ZIP, SiLO-TFX, and DEXA systems, and expanding our reach into untapped regions. With new, talented sales leaders joining our lineup, the future of Aurora Spine is brighter than ever. These achievements reflect our unwavering dedication to innovation, superior patient outcomes, and maximizing value for our shareholders."
Chad Clouse, Chief Financial Officer of Aurora Spine, commented, “The Company’s efforts to reach profitability were realized in the third quarter through increased sales and continued cost control. The third quarter marks record growth in sales, net income, continued positive EBITDAC and month-over-month sales growth while we continued to control expenses related to this growth. Notably, collection efforts have reduced trade receivables and increased cash from operations significantly over the previous year and this enables the company to reinvest into additional growth opportunities”
Financial Results
Revenue Growth: Total revenues for Q3 2024 reached $4.77 million, marking a 20.7% increase compared to $3.95 million in Q3 2023. The quarter benefited from strong demand in the pain management sector, particularly for the SiLO TFX and ZIP 51 implants, driven by targeted marketing, training, and product innovation.
Gross Margin Expansion: Gross margins improved to 60.5% in Q3 2024, up from 59.7% in the same period last year. The margin improvement is a direct result of the increased sales of proprietary products with higher profitability, particularly in markets with favorable pricing dynamics like ambulatory surgery centers.
Operating Expenses: Operating expenses for Q3 2024 were $2.81 million, up from $2.61 million in Q3 2023. The rise in expenses was primarily due to increased salary and travel costs associated with expanding the sales force, partially offset by reductions in research and development and professional fees.
EBITDAC Improvement: EBITDAC (a non-GAAP figure non IFRS measure defined as Earnings before Interest, Tax, Depreciation, Amortization and Stock based compensation) was $0.38 million, compared to $0.12 million in Q3 2023. This improvement highlights Aurora’s ability to enhance profitability through efficient operations and a focus on high-margin product lines.
Net Income: The Company reported net income of $0.07 million for Q3 2024, significantly narrowing from a net loss of $(0.250) million in Q3 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 | September 30, 2024 | December 31, 2023 | December 31, 2022 |
| | $ | $ | $ |
| Cash | 882,050 | 766,829 | 423,401 |
| Receivables | 3,881,336 | 3,968,439 | 3,666,310 |
| Prepaid and other current assets | 276,343 | 204,173 | 186,800 |
| Inventory | 3,722,806 | 3,562,349 | 3,054,173 |
| Current assets | 8,762,535 | 8,501,790 | 7,330,684 |
| Notes receivable | 471,507 | 454,628 | - |
| Intangible assets | 803,669 | 753,180 | 881,354 |
| Property and equipment | 2,053,823 | 2,275,478 | 1,910,940 |
| Total assets | 12,091,534 | 11,985,076 | 10,122,978 |
| Current liabilities | 3,652,344 | 3,273,058 | 3,029,599 |
| Non-current liabilities | 3,416,098 | 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 | September 30,
2024 | | June 30,
2024 | | March 31,
2024 | | December 31,
2023 | | September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31, 2022 | |
| | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
| Revenue | 4,767,121 | | 4,079,543 | | 4,013,801 | | 4,044,234 | | 3,949,530 | | 3,568,583 | | 2,958,088 | | 3,609,514 | |
| Cost of goods sold | (1,884,637 | ) | (1,532,173 | ) | (1,529,538 | ) | (1,749,216 | ) | (1,592,530 | ) | (1,537,410 | ) | (1,429,987 | ) | (1,783,881 | ) |
| Gross profit | 2,882,484 | | 2,547,370 | | 2,484,263 | | 2,295,018 | | 2,357,000 | | 2,031,173 | | 1,528,101 | | 1,825,632 | |
| Operating expenses | 2,811,364 | | 2,701,478 | | 2,751,188 | | 2,580,613 | | 2,606,618 | | 2,513,587 | | 2,191,039 | | 2,665,203 | |
| EBITDAC* | 380,117 | | 105,522 | | 117,171 | | 109,734 | | 120,796 | | (163,660 | ) | (377,871 | ) | (358,311 | ) |
| Net income (loss) | 71,120 | | (154,108 | ) | (266,925 | ) | (285,595 | ) | (249,618 | ) | (482,414 | ) | (662,938 | ) | (839,570 | ) |
| Basic and diluted income (loss) per share** | 0.00 | | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) |
* EBITDAC is a non-GAAP, non-IFRS measure defined as Earnings before Interest, Tax, Depreciation, Amortization and Stock based compensation. This amount includes income (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.
Third Quarter 2024 Conference Call Details
Date and Time: Monday, October 28, 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/y2kqEAqEXWA.
Replay: A teleconference replay of the call will be available until November 4, 2024, at (877) 344-7529 or (412) 317-0088, replay access code 3686054. Additionally, a replay of the webcast will be available at https://app.webinar.net/y2kqEAqEXWA 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
