Kelyniam Global Releases 2nd Quarter 2020 Financials

Rhea-AI Summary

Kelyniam Global (OTC:KLYG) reported its half-year results ending June 30, 2020, showcasing a significant turnaround despite Covid-19 challenges. Total revenue reached $1,256,235, a 34.8% increase from $931,894 in 2019. Gross margin improved to $621,966, and operating income shifted to $86,978 from a loss of $181,395. Net income also increased to $14,047, compared to a loss of $184,567 previously. The company obtained a $111,000 Payment Protection Loan to maintain operations and supported emergency surgeries during regulatory restrictions.

Positive

• Total revenue increased to $1,256,235, a 34.8% rise compared to 2019.
• Gross margin improved to $621,966 from $462,660.
• Operating income turned positive at $86,978 compared to a loss of $181,395.
• Net income rose to $14,047 compared to a loss of $184,567.
• Successfully supported urgent surgeries amid pandemic-related restrictions.

Negative

• Operations were significantly curtailed from mid-March to mid-May due to the suspension of elective surgeries.
• Future financial performance remains uncertain due to varying impacts of the pandemic across client bases.

CANTON, Conn., Sept. 1, 2020 /PRNewswire/ -- Kelyniam Global (OTC:KLYG), a maker of custom cranial implants, today announced results for its half year ended June 30, 2020. 

"Despite the Covid-19's pandemic effects, Kelyniam was able to continue operating profitably and significantly increased sales compared to the same period in 2019," said Ross Bjella, Kelyniam's CEO. 

Financial performance for the six months ended June 30, 2020 compared to the six months over the same period in 2019 includes:

• Total revenue of $1,256,235 compared to $931,894 an increase of 34.8% in sales revenue
• Gross margin of $621,966 compared to $462,660
• Operating income of $86,978 compared to a loss of $181,395
• Net Income $14,047 compared to a loss of $184,567 over the prior year

The resultant turnaround in profitability is attributable to the growth in sales and reduced general & administrative expenses, primarily travel and legal fees.

Events that significantly affected the quarter included:

• In mid-March (depending on the state), the Federal Government's recommendation for the termination of elective surgeries essentially curtailed most business operations at the Company. The regulatory restrictions were eased in mid-May enabling the Company to begin manufacturing and shipping units. Kelyniam mostly supported emergency surgeries for this 60-day period.
• On May 11, the Company received a Payment Protection Loan of approximately $111,000 enabling the Company to remain in operation with full staff. The Company used the proceeds of the loan to support employee salaries which should allow for forgiveness of the loan balance later this year.
• A Kelyniam implant was used on the first-ever cranioplasty performed onboard a ship, the USNS Comfort. Kelyniam is proud to have our implant selected for this historic procedure.

"It is impossible to predict our financial results for the balance of the year," said Bjella, "The effects of the virus across geographies and health systems is unequal across our client base. The rest of the year will be a balancing act for the neurosurgery marketplace and results could be positively or negatively impacted in profound ways".

Kelyniam continues to provide 24 hour and difficult to execute design services for the marketplace without interruption to the Provider Community across the United States.

The complete financials can be found on the company's website at https://www.kelyniam.com/news/

Kelyniam Inc., specializes in the rapid production of custom prosthetics utilizing computer aided design and computer aided manufacturing of advanced medical grade polymers.  The Company develops, manufactures, and distributes custom cranial and maxillo-facial implants for patients requiring the reconstruction of cranial and certain facial structures.  Kelyniam works directly with surgeons, health systems and payors to improve clinical and cost-of-care outcomes. Kelyniam's web site address is www.Kelyniam.com.

As a cautionary note to investors, certain matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company's ability to execute its service and product sales plans; changes in the status of ability to market products; and the risks described from time to time in the Company's SEC reports.

View original content:http://www.prnewswire.com/news-releases/kelyniam-global-releases-2nd-quarter-2020-financials-301122068.html

SOURCE Kelyniam Global, Inc.

FAQ

What were Kelyniam Global's financial results for the first half of 2020?

Kelyniam Global reported a total revenue of $1,256,235, up 34.8% from 2019, with a net income of $14,047.

How did Covid-19 impact Kelyniam Global's operations?

The company faced operational restrictions due to the suspension of elective surgeries from mid-March to mid-May.

What significant financial assistance did Kelyniam Global receive in 2020?

Kelyniam Global received a Payment Protection Loan of approximately $111,000 to maintain operations and support staff salaries.

What was Kelyniam Global's operating income for the first half of 2020?

The operating income for the first half of 2020 was $86,978, a turnaround from a loss of $181,395 in 2019.

What is the outlook for Kelyniam Global's future financial performance?

The CEO indicated uncertainty in financial results for the remainder of the year due to the unequal effects of Covid-19 on their client base.