SomnoMed Limited Reports Unaudited Earnings Results for the Second Quarter and First Half Ended December 31, 2017; Provides Earnings Guidance for the Year of 2018
January 24, 2018 at 03:09 am IST
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SomnoMed Limited reported unaudited earnings results for the second quarter and first half ended December 31, 2017. For the quarter, the group's revenues grew by 45% compared to the prior year reaching $18.5 million for the three months period. Growth was driven by SomnoMed's "Direct to Patient" Renew Sleep Solutions Inc., allowing North American revenues to grow by over 75% in the second quarter year on year. The company generated $2 million in operating cash from the core business.
For the half year, the company's core business generated an unaudited EBITDA of $1 million, after absorbing group corporate overheads. For the same period RSS generated start up EBITDA losses of $4.4 million (unaudited) resulting in SomnoMed Group's net EBITDA loss being $3.4 million (unaudited). Revenue from sale of goods and services, net of discounts was $31,573,940 as compared to $23,786,511 a year ago. Operating loss before corporate, research and business development expenses, non-cash items and income tax was $976,177 as compared to operating profit before corporate, research and business development expenses, non-cash items and income tax was $2,428,148 a year ago. Loss before income tax expense was $4,615,543 as compared to $372,048 a year ago. Loss after income tax expense was $6,529,916 as compared to $802,324 a year ago. Loss attributable to owners of company was $5,620,376 as compared to $600,587 a year ago. Basic and diluted loss per share was 10.33 cents as compared to 1.13 cents a year ago. Net cash outflow from operating activities was $6,418,731 as compared to $943,176 a year ago. Payments for intangible assets was $100,883 as compared to $209,779 a year ago. Payments for property, plant and equipment was $871,957 as compared to $922,363 a year ago.
For the year 2018, the company expects group revenues to grow between 35% and 40%, close to $70 million for the year. Rising profits in core business, combined with reduced losses in Renew Sleep Solutions Inc. are expected to achieve a break even position for the second half year, leaving the result for the financial year 2017-2018 at a negative group EBITDA of $3.5 to $4 million.
SomnoMed Limited is an Australia-based company, which is engaged in producing and selling devices for the oral treatment of sleep-related disorders. The Company provides treatment solutions for sleep-related breathing disorders, including obstructive sleep apnea, snoring, and bruxism. It is focused on the commercialization of the SomnoDent and other oral devices for sleep-related disorders. The Companyâs segments include North America, Europe, Asia Pacific, CORE, and RSS. Its SomnoDent product line includes SomnoDent Avant, SomnoDent Classic, SomnoDent Flex, SomnoDent Fusion, Herbst Advance Elite and Herbst Advance. Its SomMorning Repositioner is designed to help return their mandible back to its pre-treatment centric position. Its SomnoBrux Michigan splint is a custom fit, acrylic splint (dental guard) for upper teeth designed to protect the teeth from grinding and scraping during Bruxism. It also offers SomTabs, which are cleaning tablets that are developed to clean oral appliances.
SomnoMed Limited Reports Unaudited Earnings Results for the Second Quarter and First Half Ended December 31, 2017; Provides Earnings Guidance for the Year of 2018