Results of Operations for the Year Ended December 31, 2013 Compared To the Year Ended December 31, 2012
For the year ended December 31, 2013, the Company's total revenue slightly decreased to $5.97 million from $5.99 million, over the same period of 2012. Revenues are generated primarily from new enrollment/processing fees and recurring storage fees. The processing fees decreased approximately 11%, and the recurring revenues increased approximately 14% for the year ended December 31, 2013 versus the prior comparative period December 31, 2012. As a mix of total revenue, recurring revenues account for 51% of total revenues, and processing fees 42% of the total revenues. Two secondary sources of revenue are franchise fees and tissue related sales. As a percentage of revenue in 2013 these two sources were approximately 7% of sales compared to 8% in the comparative year ending period of 2012. Per segment, Cord’s revenues were level at $3.80 million and Bio decreased its revenues by 1% for the prior comparative twelve month period. Bio's decrease in revenues were largely impacted by year over year adjustments to the current exchange rate of approximately 16% and an increase in the discounts provided for enrollment and processing fees. Cord remains focused on strategic organic growth which management hopes will provide sustainable operating cash flows and net income.
Cost of services as a percentage of revenue increased from 30% to 34% for the comparative year ending 2013 versus 2012. The cost of services includes transportation of the umbilical cord blood from the hospital to the lab, direct material plus labor costs for processing and cryogenic storage, and allocated rent, utility and general administrative expenses. Gross profit decreased by approximately $0.23 million or 5% to $3.97 million from year ending 2012 to year ending 2013. Per segment, Cord’s cost of services as a percentage of revenue remained consistent at approximately 28%, and Bio increased from 32% to 42%. The Company anticipates that through the growth and expansion of its Cord business, and continuing efficiencies in its own facilities, direct costs should continue to decrease and gross profits will continue to improve.
Administrative and selling expenses for the year ended December 31, 2013 were $5.12 million as compared to $5.63 million for the comparative period of 2012 representing a 10% decrease. These expenses are primarily related to marketing/advertising, professional services, allocated facility, including utilities, expenses, and wages for personnel. Generally, each functional unit within administrative and selling expenses has reduced expenses. The Company continues to evaluate its expenses and their relationship to revenues for alignment. Depreciation and amortization are included as an administrative expense. For the year ended 2013, depreciation and amortization remained consistent with the 2012 year ending period total of $0.79 million.
The Company's loss from continuing operations was $3.04 million versus a loss of $2.39 million for the comparative period, resulting in an increase of 26% primarily attributable to an increase in the interest expense and change in derivative liability of $0.63 million. The Company's net loss was $2.98 million for the year ended December 31, 2013 a decrease of $0.52 million from an overall net loss for the year ended 2012, which included a loss of $1.10 million for discontinued operations.
