OxySure Systems (OXYS) Reports Third Quarter 2013 Results
Third Quarter 2013 Highlights:
- Total revenue increased by approximately 428% to $545,820
- Interest expense down by approximately 15% to $47,180
- Working capital deficit improved by approximately $2,204,966
- Stockholder deficit improved by approximately $2,080,000
- Gross profit increased approximately 722% to $434,710
- Net loss down by approximately 38.3% to $82,613 or $0.00 per share
The Company posted the third consecutive quarter of triple digit revenue growth rates as compared to year earlier quarters.
“We had an excellent building quarter and we are pleased to have sustained our positive momentum for the year so far,” said Julian T. Ross, Chairman of the Board and Chief Executive Officer of OxySure. “Our results for the third quarter reflect our continued success at executing on strategic initiatives aimed at generating superior top-line growth while staying focused on controlling our expenses. We plan to continue our strategy of building awareness for our new and innovative lifesaving products, while investing in branding, distribution, R&D and sales. We are excited about some of the initiatives we are currently working on.”
For the three months ended September 30, 2013, revenues increased to $545,820, representing an increase of approximately $442,493 or 428% as compared to revenues of $103,327 for the three months ended September 30, 2012. The increase in revenues is primarily attributable to an increase in product sales in the United States, an increase in licensing/service revenues and an increase in sales of products developed for the military as part of a teaming agreement.
Gross profit was $434,710 for the three months ended September 30, 2013, an increase of $381,855 or 722% from $52,855 in the same period last year, primarily due to increased product sales, service revenues and license revenues.
Selling, general and administrative expenses were $478,518 compared to $206,810 for the comparable three months in 2012. The Company increased sales and marketing expenses from $7,234 to $77,841 as it expanded its sales and branding efforts. OxySure also recorded an increase in research and development expenses primarily attributable to an increase in research and development expense recognized in connection with products for military markets. Research and development expense during the three months ended September 30, 2013 was $134,357 as compared to $579 for the three months ended September 30, 2012. Other general and administrative expenses also increased by 34% to $266,320 as compared to $198,997 for the prior period. The increase in other general and administrative expense was primarily as a result of increases in depreciation and amortization expense, sales and marketing expense, research and development expense, and salaries and wages.
Interest expense fell 15% to $47,180 for the third quarter of 2013 from $55,461 during the third quarter of 2012.
Net loss decreased to $82,613, or $0.00 per share, as compared to $133,779 or $0.01 per share for the third quarter of 2012. The weighted average diluted shares outstanding were 24,076,789 and 20,761,595 for third quarters of 2013 and 2012, respectively.
OxySure continues to execute on its core growth strategy of:
- Expand sales and distribution footprint in the U.S. and internationally
- Leverage distribution partnerships to enhance market penetration
- Diversify product offerings through additions of complimentary or additive products/services
- Promote market awareness and education
- Pursue strategic alliances to further accelerate growth
Key milestones achieved so far in 2013 include:
- Signed a distribution agreement with Dutch conglomerate Medizon B.V. to distribute products in the Netherlands, Belgium and Luxembourg
- Signed a distribution agreement with Aero Healthcare to distribute products in Australia, New Zealand, and the United Kingdom
- Launched a new product, a double wall cabinet to house a combination AED/OxySure system
- Added new distributors in the United States to expand distribution footprint
- Made significant progress towards the development of the military market in connection with a teaming agreement for the military
- Made significant progress with regard to the CE Marking of the Company’s flagship product, the OxySure Model 615
- Added Jerry M. Jones, former Chairman & CEO of Apria Healthcare to the Board of Directors
A link to a presentation of the company’s results can be found here: http://oxysure.com/3Q13_Earnings/OxySure_Earnings_Presentation_3Q13.pdf
About OxySure Systems, Inc.
OxySure Systems, Inc. (OXYS) is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and medical solutions. The company pioneered a safe and easy to use solution to produce medically pure (USP) oxygen from inert powders. The company owns numerous issued patents and patents pending on this technology which makes the provision of emergency oxygen safer, more accessible and easier to use than traditional oxygen provision systems. OxySure's products improve access to emergency oxygen that affects the survival, recovery and safety of individuals in several areas of need: (1) Public and private places and settings where medical emergencies can occur; (2) Individuals at risk for cardiac, respiratory or general medical distress needing immediate help prior to emergency medical care arrival; and (3) Those requiring immediate protection and escape from exposure situations or oxygen-deficient situations in industrial, mining, military, or other "Immediately Dangerous to Life or Health" (IDLH) environments. www.OxySure.com
Statements in this earnings release that are not historical facts are considered to be forward-looking statements. Such statements include, but are not limited to, statements regarding management beliefs and expectations, based upon information available at the time the statements are made, regarding future plans, objectives and performance. All forward-looking statements are subject to risks and uncertainties, many of which are beyond management’s control and actual results and performance may differ significantly from those contained in forward-looking statements. OxySure Systems, Inc. intends any forward-looking statement to be covered by the Litigation Reform Act of 1995 and is including this statement for purposes of said safe harbor provisions. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. OxySure Systems, Inc. undertakes no obligation to update any forward-looking statements to reflect events or circumstances that occur after the date as of which such statements are made. A discussion of certain risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements is included in OxySure Systems, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2012.
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