Crdentia Announces 2006 First Quarter Results
18 May 2006 - 10:37AM
PR Newswire (US)
DALLAS, May 17 /PRNewswire-FirstCall/ -- Crdentia Corp. (OTC:CRDT)
(BULLETIN BOARD: CRDT) , a leading U.S. provider of healthcare
staffing services, today announced financial results for the three
months ended March 31, 2006. First Quarter Results The Company
reported first quarter 2006 revenue of $8.9 million, a 75.4%
increase compared to revenue of $5.1 million for first quarter
2005. The Company also reported a net loss attributable to common
stockholders of $1.4 million for the first quarter 2006, or $(0.42)
per basic and diluted share, as compared to a net loss attributable
to common stockholders of $3.4 million, or $(2.50) per basic and
diluted share, for the first quarter 2005. "The Company continues
to make excellent progress towards our objective of consolidating
the industry's premium private companies into our larger entity,
thereby increasing the number of qualified nurses and licensed
professional staff to serve our diversified client base," said
James D. Durham, Chairman and Chief Executive Officer of Crdentia
Corp. "In fact, the 75% year-over-year revenue growth we achieved
in the quarter was primarily driven by the integration of three
successful acquisitions that we completed last year. In addition to
the solid top line results, we also narrowed our net loss due to
on-going cost cutting initiatives and a $1.1 million non-cash gain
from the settlement of a claim related to a business we acquired in
2003." Durham concluded, "During the first quarter we also made
significant changes to our senior leadership and I am quite pleased
with the team's early results. While we continue to expect to
aggressively grow our business through strategic acquisitions, I
also believe we are in a good position to take advantage of
positive industry trends that should enable Crdentia to grow
organically." Liquidity At March 31, 2006, the Company had total
cash and cash equivalents of $0.1 million. During the first quarter
of 2006, the Company raised approximately $2.0 million in
debentures and an additional $1.15 million in equity. These
proceeds were used to repay a $0.6 million over-advance on the
Company's revolving line of credit, a repayment of $1.35 million on
the term loan, with the balance used for working capital purposes.
The Company is currently looking to raise another $1 million to $4
million of debt and equity for working capital needs, debt
retirement and potential acquisitions. About Crdentia Corp.
Crdentia Corp. is one of the nation's leading providers of
healthcare staffing services. Crdentia seeks to capitalize on an
opportunity that currently exists in the healthcare industry by
targeting the critical nursing and allied shortage issue. There are
many small, private companies that are addressing the rapidly
expanding needs of the healthcare industry. Unfortunately, due to
their relatively small capitalization, they are unable to maximize
their potential, obtain outside capital or expand. By consolidating
well-run small private companies into a larger public entity,
Crdentia intends to facilitate access to capital, the acquisition
of technology, providing greater diversity of client services and
expanded distribution that, in turn, drive internal growth. For
more information, visit http://www.crdentia.com/. Forward Looking
Statements Statements contained in this release that are not
historical facts are forward-looking statements that involve risks
and uncertainties. Among the important factors which could cause
actual results to differ materially from those in the
forward-looking statements include, but are not limited to, those
discussed in "Risk Factors" in the Company's Forms 10-KSB, Forms
10-QSB, and other filings with the Securities and Exchange
Commission. Such risk factors include, but are not limited to, a
limited operating history with no earnings; reliance on the
Company's management team, members of which have other business
interests; the ability to successfully implement the Company's
business plan; the ability to continue as a going concern; the
ability to fund the Company's business and acquisition strategy;
the growth of the temporary healthcare professional staffing
business; difficulty in managing operations of acquired businesses;
uncertainty in government regulation of the healthcare industry;
and the limited public market for the Company's common stock. The
actual results that the Company achieves may differ materially from
any forward-looking statements due to such risks and uncertainties.
We undertake no obligation to revise or update publicly any
forward-looking statements for any reason. AT THE COMPANY: AT
FINANCIAL RELATIONS BOARD: James D. Durham Lasse Glassen Chairman
and CEO 310-854-8313 972-850-0780 Crdentia Corp. Unaudited
Condensed Consolidated Statements of Operations Three months ended
March 31, 2006 2005 Revenue from services $8,984,823 $5,122,313
Direct operating expenses 7,235,519 4,048,820 Gross profit
1,749,304 1,073,493 Operating expenses: Selling, general, and
administrative expenses 2,600,785 1,715,880 Gain from settlement of
acquisition claim (1,064,693) -- Non-cash stock based compensation
378,260 78,846 Total operating expenses 1,914,352 1,794,726 Loss
from operations (165,048) (721,233) Interest expense, net
(1,193,539) (524,034) Loss before income taxes (1,358,587)
(1,245,267) Income tax expense -- -- Net loss (1,358,587)
(1,245,267) Non-cash preferred stock dividends -- (2,162,187) Net
loss attributable to common stockholders $(1,358,587) $(3,407,454)
Basic and diluted loss per common share attributable to common
stockholders $(0.42) $(2.50) Weighted average number of common
shares outstanding 3,214,729 1,363,496 Crdentia Corp. Selected
Condensed Consolidated Balance Sheet Data March 31, December 31,
2006 2005 (unaudited) Cash and cash equivalents $148,678 $434,921
Total current assets 5,798,710 6,092,660 Property and equipment,
net 394,874 418,837 Goodwill 22,977,377 22,977,377 Intangible
assets, net 1,804,161 1,985,585 Total assets 31,905,531 31,992,460
Convertible preferred stock and warrants 10,859,603 10,859,603
Total liabilities 11,936,411 14,543,790 Total stockholders' equity
9,109,517 6,589,067 DATASOURCE: Crdentia Corp. CONTACT: James D.
Durham, Chairman and CEO of Crdentia Corp., +1-972-850-0780; or
Lasse Glassen of Financial Relations Board, +1-310-854-8313, , for
Crdentia Corp. Web site: http://www.crdentia.com/
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