VANCOUVER, BRITISH COLUMBIA, Dec. 15, 2010 (Marketwire) -- Pyng Medical Corp. (TSX VENTURE:PYT) today announced its financial and operating results for the year ended September 30, 2010. All amounts are in Canadian dollars unless stated otherwise.
The Company achieved strong financial results in fiscal 2010 due to the significant sales increase in the fourth quarter. Annual sales of $7,088,837 set a new record as the highest level of revenue in the Company's history and the net income before tax rose 700% to $392,415. Gross margin for the year ended September 30, 2010 amounted to $4,834,539, an increase of $493,909 from $4,340,630 reported for fiscal 2009. The gross margin as a percentage of revenues decreased from 72% to 68%, due primarily to the strengthening Canadian dollar during the fiscal 2010. The total operating expenses of $4,442,124 dropped to 63% of sales compared to $4,403,534 or 73% of the sales for fiscal 2009 due to cost-saving measures that the Company implemented which resulted in lower legal costs, consulting fees and other operating expenses.
The Company also reported a net income after tax of $283,415 for this year, or earning of $0.02 per share, compared to a net loss of $246,904 or loss of $0.02 per share for fiscal 2009. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations increased to $1,041,438, 15% of the sales compared with the EBITDA of $395,788, or 7% of the sales for fiscal 2009.
For the fourth quarter ended September 30, 2010, the Company recorded sales of $2,633,795, which increased by $915,523 or 53% compared with $1,718,272 for the comparative quarter of fiscal year 2009. The operating expenses decreased by 16% to $1,064,256. The net income before tax rose to $620,716, up $582,187 compared with the comparative quarter of fiscal year 2009 of $38,529. The significant increase in sales largely contributed the increase in the net income before tax.
As at September 30, 2010, the Company had a cash balance of $282,993 and working capital of $761,255, representing an increase of $130,462 and $106,649 respectively, compared to the year ended September 30, 2009. The operating activities generated $995,898 in cash before any changes in working capital, up $646,229 or 185% from $349, 669 for fiscal 2009, which was primarily due to the increased sales and non-cash expenses incurred during the year.
Full audited financial results for fiscal year ended September 30, 2010 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.
Pyng Medical Corp.
Chief Financial Officer