FORT LAUDERDALE, Fla., May 15, 2018 (GLOBE NEWSWIRE) -- OmniComm Systems, Inc. (OTCQX:OMCM), a global leading provider of clinical data management technology, today announced record financial results for the quarter ended March 31, 2018.
“We are off to a considerably better start this year in comparison to last year,” said Stephen Johnson, chief executive officer and president of OmniComm. “With more than 120 clients and the introduction of three new product lines — IRTMaster, Acuity and AutoEncoder — we are well-positioned for strong financial growth in the near future. These new product lines, coupled with a shift in our business toward a subscription model, will enhance the predictability and sustainability of future revenue.”
For the quarter ended March 31, 2018, OmniComm reported revenue of $7.2 million, a 25% increase over the prior year’s first quarter revenue of $5.7 million. Gross margin improved by 35% to $6.0 million. Operating expenses increased by 15% or $0.6 million to $5.1 million, which resulted in operating income of $0.9 million. EBITDA, a non-GAAP financial measure OmniComm uses as an additional financial measure, was $1.0 million compared to $0.1 million in the first quarter of 2017.
OmniComm provides EBITDA, a non-GAAP financial measure as additional information to its financial results. Non-GAAP EBITDA excludes the impact of depreciation and amortization expenses that are included in operating income. Non-GAAP EBITDA is not an alternative or substitute for the financial measure prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) of operating income. The non-GAAP EBITDA financial measure presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define this non-GAAP financial measure in the same way. OmniComm’s management uses non-GAAP EBITDA as a measure of operational efficiency and as a goal for incentive compensation. Management believes non-GAAP EBITDA is a useful measure investors may use as an additional factor in their analysis of OmniComm’s performance. Please review the below reconciliation of the non-GAAP financial measure EBITDA to the GAAP financial measure operating income, as well as OmniComm’s financial statements as filed with the Securities and Exchange Commission.
| OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES | ||||||||
| Reconciliation of GAAP operating income to non-GAAP EBITDA | ||||||||
| For the three months ended | ||||||||
| March 31, | ||||||||
| 2018 | 2017 | |||||||
| Operating income/(loss) (GAAP) | $ | 905,136 | $ | 15,984 | ||||
| Depreciation expense | 77,776 | 79,924 | ||||||
| Amortization expense | 64,149 | 5,403 | ||||||
| EBITDA (non-GAAP) | $ | 1,047,061 | $ | 101,311 | ||||
Forward-Looking Statements Statements contained in this press release that are not historical facts are "forward-looking statements." These statements can often be identified by the use of forward-looking terminology such as "estimate," "project," "believe," "expect," "may," "will," "should," "intends," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We wish to caution the reader that these forward-looking statements regarding matters that are not historical facts are only predictions and are based on information available at the time and/or management's good faith belief with respect to future events. No assurance can be given that plans for the future will be consummated or that the future results indicated, whether expressed or implied, will be achieved. While sometimes presented with numerical specificity, these plans and projections and other forward-looking statements are based upon a variety of assumptions, which we consider reasonable, but which nevertheless may not be realized. Because of the number and range of the assumptions underlying our projections and forward-looking statements, many of which are subject to significant uncertainties and contingencies that are beyond our reasonable control, some of the assumptions inevitably will not materialize, and unanticipated events and circumstances may occur subsequent to the date of this press release. Therefore, our actual experience and results achieved during the period covered by any particular projections or forward-looking statements may differ substantially from those projected. Consequently, the inclusion of projections and other forward-looking statements should not be regarded as a representation by us or any other person that these plans will be consummated or that estimates and projections will be realized, and actual results may vary materially. There can be no assurance that any of these expectations will be realized or that any of the forward-looking statements contained herein will prove to be accurate. Forward-looking statements speak only as of the date the statement was made. OmniComm does not undertake any obligation to update or revise any forward-looking statement made by it or on its behalf, whether as a result of new information, future events or otherwise.
| OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (unaudited) | ||||||||||||
| For the three months ended | ||||||||||||
| March 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
| Revenues | $ | 7,040,369 | $ | 5,658,176 | ||||||||
| Reimbursable revenues | 150,103 | 77,354 | ||||||||||
| Total revenues | 7,190,472 | 5,735,530 | ||||||||||
| Cost of goods sold | 1,153,625 | 1,080,690 | ||||||||||
| Reimbursable expenses-cost of goods sold | 57,876 | 211,804 | ||||||||||
| Total cost of goods sold | 1,211,501 | 1,292,494 | ||||||||||
| Gross margin | 5,978,971 | 4,443,036 | ||||||||||
| Operating expenses | ||||||||||||
| Salaries, benefits and related taxes | 3,659,340 | 3,290,583 | ||||||||||
| Rent and occupancy expenses | 289,334 | 278,952 | ||||||||||
| Consulting services | 125,536 | 59,629 | ||||||||||
| Legal and professional fees | 221,252 | 147,357 | ||||||||||
| Travel | 200,396 | 287,691 | ||||||||||
| Telephone and internet | 29,683 | 39,258 | ||||||||||
| Selling, general and administrative | 409,756 | 208,889 | ||||||||||
| Bad debt expense | (3,387 | ) | 29,366 | |||||||||
| Depreciation expense | 77,776 | 79,924 | ||||||||||
| Amortization expense | 64,149 | 5,403 | ||||||||||
| Total operating expenses | 5,073,835 | 4,427,052 | ||||||||||
| Operating income/(loss) | 905,136 | 15,984 | ||||||||||
| Other income/(expense) | ||||||||||||
| Interest expense, related parties | (225,418 | ) | (231,459 | ) | ||||||||
| Interest expense | (90,943 | ) | (107,998 | ) | ||||||||
| Interest income | 5 | 1 | ||||||||||
| Change in derivative liabilities | 28,416 | 393,340 | ||||||||||
| Transaction gain/(loss) | (22,678 | ) | 5,300 | |||||||||
| Income/(loss) before income taxes | 594,518 | 75,168 | ||||||||||
| Income tax (expense) | (1,035 | ) | (1,194 | ) | ||||||||
| Net income/(loss) attributable to common stockholders | $ | 593,483 | $ | 73,974 | ||||||||
| Net income/(loss) per share | ||||||||||||
| Basic | $ | 0.00 | $ | 0.00 | ||||||||
| Diluted | $ | 0.00 | $ | 0.00 | ||||||||
| Weighted average number of shares outstanding | ||||||||||||
| Basic | 149,653,916 | 147,785,621 | ||||||||||
| Diluted | 152,693,666 | 147,953,716 | ||||||||||
| OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||
| CONSDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| March 31, 2018 | December 31, 2017 | |||||||||||
| (unaudited) | ||||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash | $ | 1,175,737 | $ | 1,176,551 | ||||||||
| Accounts receivable, net of allowance for doubtful accounts of $146,593 and $149,980, respectively | 5,993,778 | 7,492,597 | ||||||||||
| Prepaid expenses | 267,584 | 297,131 | ||||||||||
| Other current assets | 20,734 | 11,463 | ||||||||||
| Total current assets | 7,457,833 | 8,977,742 | ||||||||||
| Property and equipment, net | 569,154 | 552,538 | ||||||||||
| Other assets | ||||||||||||
| Intangible assets, net | 1,088,479 | 97,925 | ||||||||||
| Other assets | 67,691 | 46,714 | ||||||||||
| TOTAL ASSETS | $ | 9,183,157 | $ | 9,674,919 | ||||||||
| LIABILITIES AND SHAREHOLDERS' (DEFICIT) | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Accounts payable and accrued expenses | $ | 1,561,512 | $ | 2,586,045 | ||||||||
| Deferred revenue, current portion | 5,388,991 | 7,564,587 | ||||||||||
| Convertible notes payable, current portion | 50,000 | 50,000 | ||||||||||
| Patent settlement liability, current portion | -0- | 112,500 | ||||||||||
| Conversion feature liability, related parties | 1,568,527 | 1,604,723 | ||||||||||
| Conversion feature liability | 86,117 | 81,224 | ||||||||||
| Warrant liability, related parties | 2,162,345 | 2,196,570 | ||||||||||
| Warrant liability | 1,281,341 | 1,244,229 | ||||||||||
| Total current liabilities | 12,098,833 | 15,439,878 | ||||||||||
| LONG TERM LIABILITIES | ||||||||||||
| Line of credit, long term | 4,400,000 | 2,650,000 | ||||||||||
| Notes payable, related parties, long term, net of current portion, net of discount of $93,892 and $117,365, respectively | 306,108 | 282,635 | ||||||||||
| Notes payable, long term, net of current portion, net of discount of $248,357 and $279,402, respectively | 454,143 | 423,098 | ||||||||||
| Deferred revenue, long term, net of current portion | 1,845,835 | 1,952,366 | ||||||||||
| Convertible notes payable, related parties, long term, net of current portion | 5,770,000 | 5,770,000 | ||||||||||
| Convertible notes payable, long term, net of current portion | 350,000 | 350,000 | ||||||||||
| TOTAL LIABILITIES | 25,224,919 | 26,867,977 | ||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||
| SHAREHOLDERS' (DEFICIT) | ||||||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, 3,772,500 shares undesignated | ||||||||||||
| Series A convertible preferred stock, 5,000,000 shares authorized, -0- and -0- issued and outstanding, respectively, at $0.001 | ||||||||||||
| par value; liquidation preference $-0- and $-0-, respectively | -0- | -0- | ||||||||||
| Series B convertible preferred stock, 230,000 shares authorized, -0- and -0- issued and outstanding, respectively, at $0.001 par value; | ||||||||||||
| liquidation preference $-0- and $-0-, respectively | -0- | -0- | ||||||||||
| Series C convertible preferred stock, 747,500 shares authorized, -0- and -0- issued and outstanding, respectively, at $0.001 par value; | ||||||||||||
| liquidation preference $-0- and $-0-, respectively | -0- | -0- | ||||||||||
| Series D preferred stock, 250,000 shares authorized, 250,000 and 250,000 issued and outstanding, respectively, at $0.001 par value | 250 | 250 | ||||||||||
| Common stock, 500,000,000 shares authorized, 150,209,472 and 148,542,805 issued and outstanding, respectively, at $0.001 par value | 150,211 | 148,544 | ||||||||||
| Additional paid in capital - preferred | 999,750 | 999,750 | ||||||||||
| Additional paid in capital - common | 54,934,313 | 54,379,454 | ||||||||||
| Accumulated other comprehensive (loss) | (395,950 | ) | (397,237 | ) | ||||||||
| Accumulated (deficit) | (71,730,336 | ) | (72,323,819 | ) | ||||||||
| TOTAL SHAREHOLDERS' (DEFICIT) | (16,041,762 | ) | (17,193,058 | ) | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) | $ | 9,183,157 | $ | 9,674,919 | ||||||||
| OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (unaudited) | ||||||||||
| For the three months ended | ||||||||||
| March 31, | ||||||||||
| 2018 | 2017 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
| Net income/(loss) | $ | 593,483 | $ | 73,974 | ||||||
| Adjustment to reconcile net income/(loss) to net cash provided by/(used in) operating activities | ||||||||||
| Change in derivative liabilities | (28,416 | ) | (393,340 | ) | ||||||
| Interest expense from derivative instruments | 54,518 | 61,429 | ||||||||
| Employee stock compensation | 56,526 | 133,979 | ||||||||
| Provision for doubtful accounts | (3,387 | ) | 29,366 | |||||||
| Depreciation and amortization | 141,925 | 85,327 | ||||||||
| Changes in operating assets and liabilities | ||||||||||
| Accounts receivable | 1,502,206 | 104,622 | ||||||||
| Prepaid expenses | 29,547 | 26,418 | ||||||||
| Other current assets | (9,271 | ) | 15,848 | |||||||
| Other assets | (20,977 | ) | (339 | ) | ||||||
| Accounts payable and accrued expenses | (1,024,533 | ) | (573,305 | ) | ||||||
| Patent settlement liability | (112,500 | ) | (127,983 | ) | ||||||
| Deferred revenue | (2,282,127 | ) | (167,536 | ) | ||||||
| Net cash provided by/(used in) operating activities | (1,103,006 | ) | (731,540 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
| Purchase of property and equipment | (92,794 | ) | (61,554 | ) | ||||||
| Purchase of Acuity software | (552,403 | ) | -0- | |||||||
| Net cash (used in) investing activities | (645,197 | ) | (61,554 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
| Proceeds/(repayments) from revolving line of credit | 1,750,000 | -0- | ||||||||
| Net cash provided by/(used in) financing activities | 1,750,000 | -0- | ||||||||
| Effect of exchange rate changes on fixed and intangible assets | (3,898 | ) | (2,594 | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 1,287 | (2,468 | ) | |||||||
| Net increase/(decrease) in cash and cash equivalents | (814 | ) | (798,156 | ) | ||||||
| Cash and cash equivalents at beginning of period | 1,176,551 | 1,439,332 | ||||||||
| Cash and cash equivalents at end of period | $ | 1,175,737 | $ | 641,176 | ||||||
| Supplemental disclosures of cash flow information: | ||||||||||
| Cash paid during the period for: | ||||||||||
| Income taxes | $ | 1,035 | $ | 1,159 | ||||||
| Interest | $ | 254,092 | $ | 250,161 | ||||||
| Non-cash transactions: | ||||||||||
| Common stock issued for the purchase of Acuity software | $ | 500,000 | $ | -0- | ||||||
| Restricted stock issuance/(forfeiture) | $ | -0- | $ | (2,834 | ) | |||||
About OmniComm Systems, Inc OmniComm Systems, Inc. is a leading strategic software solutions provider to the life sciences industry. OmniComm is dedicated to helping the world’s pharmaceutical, biotechnology, contract research organizations, diagnostic and device firms, and academic medical centers maximize the value of their clinical research investments. Through the use of innovative and progressive technologies, these organizations drive efficiency in clinical development, better manage their risks, ensure regulatory compliance and manage their clinical operations performance. With an extensive global experience from more than 6,000 clinical trials, OmniComm provides comprehensive solutions for clinical research. For more information, visit: www.omnicomm.com
Trademarks OmniComm, TrialMaster, TrialOne, IRTMaster and Promasys are registered trademarks of OmniComm Systems, Inc. Other names may be trademarks of their respective owners.
Contact Info
Investor Relations OmniComm Systems, Inc. +1.954.473.1254 invrel@omnicomm.com
