DALLAS, May 21 /PRNewswire-FirstCall/ -- Crdentia Corp. (OTC:CRDT)
(BULLETIN BOARD: CRDT) , a leading healthcare staffing company, has
announced results for the first quarter ended March 31, 2008.
Revenue in the quarter was $10,579,387, an increase of 8% over
fourth quarter 2007 revenue of $9,806,540 and an increase of 31%
over revenue of $8,097,329 in the first quarter of 2007. Gross
profit improved to $2,310,854 in the first quarter of 2008,
compared to $2,228,061 in the fourth quarter of 2007 and $1,712,150
in the first quarter of 2007. Net loss was $2,301,958 in the first
quarter of 2008, an improvement from the net loss of $2,644,869
reported in the fourth quarter of 2007 and a net loss of $6,589,080
in the first quarter of 2007. Net loss was $0.05 per share for the
first quarter of 2008 on weighted average shares of 47,572,548
compared to a net loss of $0.38 per share for the first quarter of
2007 on weighted average shares of 17,365,298. During the first
quarter, the Company completed a $10.2 million long-term debt
financing with ComVest Capital LLC, based in Palm Beach, Florida.
Proceeds from the financing replaced Crdentia's previous credit
facility and are being used for general working capital purposes.
The $10.2 million financing is comprised of a two-year $5.2 million
Revolving Credit Note, bearing interest at the greater of the Prime
Rate plus 2% or 8.5%, and two separate three-year term loans, each
amounting to $2.5 million and bearing annual interest of 12.5%.
John Kaiser, CEO of Crdentia said, "We are off to a strong start in
2008. I am pleased with the growth in revenues we achieved in the
latest quarter, both on a sequential quarter and year-over-year
basis. We continue to make good progress towards our objective of
profitably growing our business through improved operating
performance and executing initiatives to expand our presence in the
attractive U.S. Sun Belt region." Kaiser concluded, "In addition to
our solid first quarter operating results, I believe several
recently announced additions to our executive management team and
Board of Directors have significantly enhanced the day-to-day and
strategic leadership of the Company. This, coupled with the
improved financial flexibility afforded us by the new $10.2 million
long-term debt financing, gives me confidence in our ability to
continue to build on our success in 2008 and beyond." About
Crdentia Corp. Crdentia Corp., one of the nation's leading
providers of healthcare staffing solutions, is focused on
recruiting talented national and international healthcare
professionals to meet the ever-increasing employment needs of over
2,300 clients. Crdentia is one of the few companies that can
provide quality temporary staff for all healthcare industry
positions including local nurses, travel nurses, allied health,
locum tenens and home care professionals. 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-K, Forms 10-Q, 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. Crdentia undertakes
no obligation to revise or update publicly any forward-looking
statements for any reason. Contact Crdentia Corp. John Kaiser, CEO
Phone: 972.850.0780 Fax: 972.392.2722 Jim TerBeest, CFO Phone:
972.850.0780 Fax: 972.392.2722 Crdentia Corp. Unaudited Condensed
Consolidated Statements of Operations Three Months Ended March 31,
2008 2007 Revenue from services $10,579,387 $8,097,329 Direct
operating expenses 8,268,533 6,385,179 Gross profit 2,310,854
1,712,150 Selling, general, and administrative expenses 3,848,356
6,291,043 Loss from continuing operations before interest and taxes
(1,537,502) (4,578,893) Interest expense, net (764,456) (2,106,786)
Loss from continuing operations before income taxes (2,301,958)
(6,685,679) Income tax expense - - Loss from continuing operations
(2,301,958) (6,685,679) Income from discontinued operations -
96,599 Net loss $(2,301,958) $(6,589,080) Net loss per share -
basic and diluted; Loss from continuing operations $(0.05) $(0.39)
Income from discontinued operations - 0.01 Basic and diluted loss
per common share $(0.05) $(0.38) Weighted average number of common
shares outstanding 47,572,548 17,365,298 Crdentia Corp. Unaudited
Condensed Consolidated Balance Sheets March 31, December 31, 2008
2007 Current assets: Cash and cash equivalents $459,246 $94,470
Accounts receivable, net of allowance for doubtful accounts of
$995,000 and $961,160, respectively 6,849,483 6,081,131 Other
current assets 1,668,977 1,748,315 Total current assets 8,977,706
7,923,916 Property and equipment, net 465,079 344,212 Goodwill
15,063,047 15,063,047 Intangible assets, net 1,166,594 1,272,164
Other assets 692,045 243,969 Total assets $26,364,471 $24,847,308
Current liabilities: Revolving lines of credit $4,849,818
$4,355,338 Accounts payable and accrued expenses 4,078,912
3,627,305 Accrued employee compensation and benefits 994,479
880,718 Current portion of notes payable including amounts due to
significant stockholders of $925,282 at March 31, 2008 and $935,425
at December 31, 2008 1,234,373 1,534,333 Notes payable to lender -
2,075,000 Debentures, net of discount of $115,312 at March 31, 2008
409,688 - Other current liabilities 948,971 725,053 Total current
liabilities 12,516,241 13,197,747 Debentures, net of discount of
$153,750 at December 31, 2007 - 371,250 Long-term bonus payable,
net of current portion - 495,864 Long-term notes payable, net of
discount of $973,864 at March 31, 2008 4,401,803 375,667 Other
long-term liabilities 95,943 - Total liabilities 17,013,987
14,440,528 Commitments and contingencies Stockholders' equity:
Preferred stock, 10,000,000 shares authorized no shares issued and
outstanding - - Common stock, par value $0.0001, 150,000,000 shares
authorized at March 31, 2008 and December 31, 2007; 49,973,795
shares issued and outstanding at March 31, 2008 and 49,860,327
shares issued and outstanding at December 31, 2007 4,997 4,986
Additional paid-in capital 146,481,562 145,235,911 Accumulated
deficit (137,136,075) (134,834,117) Total stockholders' equity
9,350,484 10,406,780 Total liabilities and stockholders' equity
$26,364,471 $24,847,308 Crdentia Corp. Unaudited Condensed
Consolidated Statement of Cash Flows Three Months Ended March 31,
2008 2007 Operating activities: Net loss $(2,301,958) $(6,589,080)
Adjustments to reconcile net loss to net cash used in operating
activities: Non-cash interest expense 143,841 1,232,639
Depreciation and amortization 165,321 249,002 Bad debt expense
34,447 6,306 Non-cash stock based compensation 194,796 3,391,392
Changes in operating assets and liabilities, net of effects of
acquisitions: Accounts receivable (802,799) 207,815 Other current
assets and liabilities 354,422 (663,873) Accounts payable and
accrued expenses (51,632) (55,961) Accrued employee compensation
and benefits 113,762 (63,426) Long-term bonus payable 22,068 22,068
Net cash used in operating activities (2,127,732) (2,263,118)
Investing activities: Purchases of property and equipment (45,202)
(33,340) Financing activities: Proceeds from issuance of common
stock, net of costs (3,273) 3,152,381 Net increase (decrease) in
revolving lines of credit 494,480 (2,355,645) Proceeds from notes
payable to lender 6,000,000 2,400,000 Repayment of notes payable
(299,960) - Repayment of note payable to lender (3,075,000)
(781,867) Debt issuance costs (578,537) - Net cash provided by
financing activities 2,537,710 2,414,869 Net increase (decrease) in
cash and cash equivalents 364,776 118,411 Cash and cash equivalents
at beginning of period 94,470 198,068 Cash and cash equivalents at
end of period $459,246 $316,479 DATASOURCE: Crdentia Corp. CONTACT:
John Kaiser, CEO, +1-972-850-0780, fax, +1-972-392-2722, , or Jim
TerBeest, CFO, +1-972-850-0780, fax, +1-972-392-2722, , both of
Crdentia Corp. Web site: http://www.crdentia.com/
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