On a Year-Over-Year Basis, Total Revenues Increased 50% to $5.08 Million from $3.38 Million;
Adjusted EBITDA, on a Non-GAAP Basis, Rose to $610,856 from $82,359
LAS VEGAS - April 1, 2014 - Diagnostic Imaging International Corp. (OTCQB:DIIG) ("DIIG"), a provider of fixed-base and remote medical diagnostic imaging services to clients in the U.S. and Canada, today announced its financial results for the fiscal year ended December 31, 2013.
2013 Financial Highlights
- Total revenues increased 50% to $5,077,342 - up from $3,378,982 in 2012.
- Gross profit margin improved, rising to 37.5% for the 12-months ended December 31, 2013 compared to 19.1% for the previous year.
- On a non-GAAP basis, adjusted EBITDA totaled $610,856 compared to $82,359.
- On a GAAP basis, income from operations in 2013 totaled $303,685, representing a 16-fold increase over income from operations of $17,441 reported for 2012.
- Despite factoring interest expense and amortization of debt discount totaling $380,748, net loss declined 53% to $62,271, or $0.00 loss per basic and diluted share, compared to a net loss of $132,450, or $0.01 loss per basic and diluted share, in the prior year, after factoring interest expense and amortization of debt discount of $82,970.
- Cash provided by the Company's operating activities increased to $458,266 in 2013 compared to $170,621 in the previous year.
- As of December 31, 2013, cash and cash equivalents totaled $77,300; accounts receivable were $295,614 and total stockholders' deficit was $2,265.
Commenting on the results, Mitch Geisler, DIIG CEO, stated, "With ambition to build a multi-national enterprise of significant and enduring value that helps to materially enhance the care of the patients we serve, we are very pleased with the marked progress we made in 2013. Thus far, our approach to building Diagnostic Imaging International into an industry respected provider of imaging services to the North American healthcare market is serving us well, as proven by our achieving double digit revenue growth and strong positive cash flow. By remaining steadfast in executing our business plan, we fully expect that our continued efforts will help to perpetuate this impressive growth trend well into the foreseeable future."
Reconciliation of Non-GAAP Measure
In addition to containing results that are determined in accordance with accounting principles generally accepted in the United States of America (GAAP), this press release also contains non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure that comprises net income (loss) excluding interest expense, amortization of debt discount, depreciation and amortization of intangible assets. We interest expense, amortization of debt discount, depreciation and amortization of intangible assets because they are non-cash in nature, and we believe that non-GAAP financial measures excluding these items provide meaningful supplemental information about our operating performance and liquidity. Our definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. While adjusted EBITDA is not intended to replace any presentation included in the consolidated financial statements under GAAP and should not be considered an alternative to operating performance or an alternative to cash flow as a measure of liquidity, the Company believes this measure is useful to investors in assessing the Company's ongoing operating performance and working capital requirements. This calculation may differ in method of calculation from similarly titled measures used by other companies. A reconciliation of adjusted EBITDA to the nearest comparable GAAP financial measure is included in the financial charts included in this press release. The non-GAAP financial measures, as well as other information in this press release, should be read in conjunction with the Company's financial statements filed with the Securities and Exchange Commission.
|Years Ended December 31,|
|Net Loss||$ (66,046)||$ (132,337)|
|Add Interest expense||300,873||42,749|
|Add Amortization of debt discount||79,875||40,221|
|Add Amortization of Intangible Assets||137,547||117,075|
|Adjusted EBITDA||$ 610,856||$ 82,359|
For more details on DIIG's fiscal 2013 year-end results, please refer to the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov.
For additional information, please contact:
Erin Palmer, Director of Client Relations
Phone: 407-585-1080 | Email: DIIG@hanoverelite.com
About Diagnostic Imaging International Corp.
Headquartered in Las Vegas, Diagnostic Imaging International Corp. ("DIIG") is engaged in providing comprehensive medical diagnostic imaging services to clients in the United States and Canada through its wholly owned subsidiaries: Custom Teleradiology Services, Inc. ("CTS") and Schuylkill Medical Imaging (SMI). Founded in 2004, CTS is a leading provider of expert remote reading and reporting of medical diagnostic imaging scans for rural hospitals, clinics and referring physicians. SMI is the premier outpatient diagnostic imaging facility serving patients in Schuylkill County, Pennsylvania; and has provided high quality medical diagnostic imaging services to the region for more than 11 years. For more information, please visit www.diig.biz.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control Diagnostic Imaging International Corp. Such forward-looking statements are based on current expectations, estimates and projections about our industry, management beliefs and certain assumptions made by our management. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Information concerning factors that could cause the Company's actual results to differ materially from those contained in these forward-looking statements can be found in the Company's periodic reports on Form 10-K and Form 10-Q, and in its Current Reports on Form 8-K, filed with the Securities and Exchange Commission. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise to reflect future events or circumstances or reflect the occurrence of unanticipated events.