CBA Florida Inc. (fka CBAI)

[Goodbuddy4863]

Cord Blood America Reports 2017 First Quarter Results:

https://finance.yahoo.com/news/cord-blood-america-reports-2017-121500305.html

Results of Operations for the Three-Months Ended March 31, 2017

For the three months ended March 31, 2017, total revenue was $0.75 million, a decrease of $0.24 million or 24.4% from $0.99 million in first quarter 2016. Of the $0.24 million decrease, approximately $0.17 million was attributable to the ceasing of orders in March 2016 within the tissue procurement business and approximately $0.03 million was attributable to the reduction in storage and processing revenue from a previously terminated agreement with a third party. The discontinuation of storage revenue from the third party accounted for the decline in the Company's recurring storage revenue in the quarter.

Gross Profit for the three months ended March 31, 2017 was $0.58 million, a decrease of $0.07 million, or 11.0%, from $0.65 million in first quarter 2016. Of the $0.07 million decrease, approximately $0.06 million was attributable to the tissue procurement business, and approximately $0.03 million was attributable to the reduction in storage and processing revenue from the third party, offset by reductions made by the Company in cost of goods sold.

Gross Margin for the three months ended March 31, 2017 was 77.1%, compared to 65.5% in first quarter 2016. Gross margin increased due to the reduction in revenue from lower margin business and reductions made by the Company in cost of goods sold.

Net Income for the three months ended March 31, 2017 was $0.12 million, compared to a loss of $0.008 million in first quarter 2016.

EBITDA for the three months ended March 31, 2017 was $0.16 million, an increase of $0.08 million, or 100.3%, from $0.08 in first quarter 2016, despite the reduction in revenue as the Company continues to reduce costs.

David Sandberg, Chairman of the Board, commented, "The business is performing in line with our guidance from last quarter, and sits on net cash of approximately $0.5 mm while continuing to generate cash. Organic growth has been flattish, but with the balance sheet now healthy and visibility of positive ongoing cash generation, we expect to evaluate high ROI opportunities to spur growth."

Non-GAAP Measures

In addition to the GAAP financial measures set forth in this press release, the Company has included the non-GAAP measurement EBITDA which presents operating results on a basis adjusted for depreciation, amortization, interest expense and taxes. The Company uses this non-GAAP measure as a key performance measure for the purpose of evaluating performance internally. The Company also believes this non-GAAP measure provides our investors with useful information regarding our operating results. This non-GAAP measure is not intended to replace the presentation of our financial results in accordance with GAAP. Use of the term EBITDA may differ from similar measures reported by other companies.