Exhibit 99.1
Schick Technologies Reports Fiscal 2005 Third Quarter Results
• | Net Revenues Increase 39% | |
• | Income from Operations Increases 49% |
LONG ISLAND CITY, N.Y., February 10, 2005 -- Schick Technologies, Inc. (OTC BB: SCHK) today reported its financial results for the quarter ended December 31, 2004.
Net revenues for the third quarter were $16.8 million, an increase of $4.7 million, or 39%, compared to $12.1 million in the same period last year.
Income from operations for the third quarter was $7.3 million (43% of revenue), an increase of $2.4 million, or 49%, compared to $4.9 million (40% of revenue) for the same period last year.
Income before income tax for the third quarter was $7.4 million, an increase of $2.5 million, or 51%, compared to $4.9 million for the same period last year.
Net income for the third quarter of fiscal 2005 was $4.4 million, or $0.25 per diluted share, a decrease of $0.5 million, or 9%, compared to net income of $4.9 million, or $0.29 per diluted share, for the same period last year.
For the third quarter of fiscal 2005, the Company’s net income tax expense was $3.0 million. For the same period of fiscal 2004, net income tax expense was $34,000. In that year, income tax expense of approximately $1.9 million was offset by a $1.9 million, or $0.11 per diluted share, partial reversal of the deferred tax asset valuation allowance. As of March 31, 2004, the end of the previous fiscal year, the deferred tax asset valuation allowance was fully reversed.
At December 31, 2004, the Company had $31.5 million in cash, cash equivalents and short-term investments and $43.1 million in working capital, as compared to $20.7 million in cash, cash equivalents and short-term investments and $27.4 million in working capital at March 31, 2004, the end of the Company’s prior fiscal year.
Jeffrey Slovin, President and Chief Executive Officer, commented, “We are pleased to report record quarterly revenue and operating income. These results were driven by continued global demand for our CDR products as more dental professionals are making Schick their first choice for digital imaging. For the quarter, CDR product revenues grew 46% over last year, including a 62% increase in CDR product revenues from our exclusive North American distributor. We are also pleased by the progress we are seeing with our new CDRPanX at this early stage. For the nine months, cash flow from operations increased $1.8 million (20%) to $11.0 million, as our organization continues to make good strides in leveraging revenue growth and maintaining lower costs of operations. This strong performance is enabling us to increase our investment in innovative R&D. Our commitment to maintaining industry leadership has never been stronger.”
Net revenues for the nine months ended December 31, 2004 were $38.6 million, an increase of $9.3 million, or 32%, compared to $29.3 million in the same period last year.
Income from operations for the nine months ended December 31, 2004 was $14.2 million (37% of revenue), an increase of $5.1 million, or 56%, compared to $9.1 million (31% of revenue) for the same period last year.
Income before income tax for the nine months ended December 31, 2004 was $14.4 million, an increase of $5.3 million, or 59%, compared to $9.1 million for the same period in fiscal 2004.
Net income for the nine months ended December 31, 2004 was $8.7 million, or $0.50 per diluted share, compared to net income of $9.1 million, or $0.54 per diluted share, for the same period last year.
For the nine months ended December 31, 2004, the Company’s net income tax expense was $5.8 million. For the same period of fiscal 2004 income tax expense of $3.7 million was offset by a $3.7 million, or $0.22 per diluted share, partial reversal of the deferred tax asset valuation allowance.
Schick Technologies, Inc. will hold its quarterly conference call on Thursday, February 10, 2005 at 5:00 p.m. ET. To access the call, please dial 800-259-0251 (domestic) or 617-614-3671 (international), and enter passcode # 55452525. This conference call will be broadcast live on the Internet at www.fulldisclosure.com and www.streetevents.com. An audio digital replay of the call will be available from February 10, 2005, at approximately 7:00 p.m. ET until 11:59 p.m. ET on February 17, 2005 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and using confirmation code # 91087220. A web archive will be available for 30 days at www.fulldisclosure.com and www.streetevents.com. This earnings release, and any other financial and statistical information disclosed by the Company during the conference call will be available in the “Investors” section of the Company’s web site at www.schicktech.com.
Schick Technologies, Inc., an ISO 9001 certified company, designs, develops, and manufactures innovative digital radiographic imaging systems and devices for the dental and medical markets. The Company’s products, which are based on proprietary digital imaging technologies, create instant high-resolution radiographs and offer significant advantages over conventional x-ray devices.
This news release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including beliefs as to the demand for the Company’s products, the Company’s leveraging its revenue growth and maintaining lower costs of operations, and the Company’s investment in R&D, and any other statements which are not historical. Actual future events, results and trends could differ materially from those set forth in such statements due to various factors. Such factors include uncertainties as to the Company’s future revenues, the possibility of changing economic, market and competitive conditions, dependence on products and key suppliers, technological developments, competition, market uncertainties, dependence on distributors, the pending SEC action and U.S. Attorney investigation, ability to manage growth, fluctuation in results and other risks and uncertainties including those detailed in the company’s filings with the Securities and Exchange Commission.
CONTACT: | Cameron Associates |
Kevin McGrath, 212-245-4577
Kevin@cameronassoc.com
Schick Technologies, Inc. and Subsidiary
Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share amounts)
| Three months ended
December 31, | | Nine months ended
December 31, | |
|---|
| 2004
| | 2003
| | 2004
| | 2003
| |
|---|
| Revenue, net | | | $ | 16,813 | | $ | 12,124 | | $ | 38,564 | | $ | 29,301 | |
| Cost of sales | | | | 4,144 | | | 3,063 | | | 10,325 | | | 8,316 | |
|
| |
| |
| |
| |
| Gross profit | | | | 12,669 | | | 9,061 | | | 28,239 | | | 20,985 | |
| | | |
| Operating expenses: | | |
| Selling and marketing | | | | 2,235 | | | 1,655 | | | 5,222 | | | 4,505 | |
| General and administrative | | | | 1,723 | | | 1,725 | | | 4,992 | | | 4,921 | |
| Research and development | | | | 1,456 | | | 827 | | | 3,873 | | | 2,508 | |
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| |
| |
| |
| |
| Total operating costs | | | | 5,414 | | | 4,207 | | | 14,087 | | | 11,934 | |
|
| |
| |
| |
| |
| | | |
| Income from operations | | | | 7,255 | | | 4,854 | | | 14,152 | | | 9,051 | |
| | | |
| Other income (expense) | | |
| Interest income | | | | 111 | | | 39 | | | 288 | | | 88 | |
| Interest expense | | | | — | | | (9 | ) | | — | | | (180 | ) |
| Other income | | | | — | | | 4 | | | — | | | 141 | |
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| |
| |
| |
| Total other income | | | | 111 | | | 34 | | | 288 | | | 49 | |
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| |
| | | |
| Income before income taxes | | | | 7,366 | | | 4,888 | | | 14,440 | | | 9,100 | |
| | | |
| Provision for income taxes | | | | 2,968 | | | 34 | | | 5,757 | | | — | |
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| |
| |
| | | |
| Net income | | | $ | 4,398 | | $ | 4,854 | | $ | 8,683 | | $ | 9,100 | |
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| | | |
| Basic earnings per share | | | $ | 0.28 | | $ | 0.47 | | $ | 0.57 | | $ | 0.88 | |
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| Diluted earnings per share | | | $ | 0.25 | | $ | 0.29 | | $ | 0.50 | | $ | 0.54 | |
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| |
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| Weighted average common shares | | |
| (basic) | | | | 15,440,891 | | | 10,407,356 | | | 15,189,316 | | | 10,334,431 | |
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| Weighted average common shares | | |
| (diluted) | | | | 17,359,203 | | | 16,879,982 | | | 17,212,293 | | | 16,776,152 | |
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_________________________
The accompanying notes are an integral part of these financial statements.
Schick Technologies, Inc. and Subsidiary
Consolidated Balance Sheets
(In thousands, except share amounts)
| December 31,
| | March 31,
| |
|---|
| 2004
| |
|---|
| (unaudited) | | |
|---|
| Assets | | | | | | | | |
| Current assets | | |
| Cash and cash equivalents | | | $ | 16,560 | | $ | 20,734 | |
| Short-term investments | | | | 14,984 | | | — | |
| Accounts receivable, net of allowance for doubtful accounts | | |
| of $138 and $42, respectively | | | | 8,964 | | | 3,982 | |
| Inventories | | | | 3,687 | | | 3,057 | |
| Prepayments and other current assets | | | | 847 | | | 861 | |
| Deferred income taxes | | | | 6,967 | | | 6,481 | |
|
| |
| |
| Total current assets | | | | 52,009 | | | 35,115 | |
| Equipment, net | | | | 1,410 | | | 1,405 | |
| Goodwill, net | | | | 266 | | | 266 | |
| Deferred income taxes | | | | 93 | | | 5,679 | |
| Other assets | | | | 257 | | | 278 | |
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| |
| |
| Total assets | | | $ | 54,035 | | $ | 42,743 | |
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| | | |
| Liabilities and Stockholders’ Equity | | |
| Current liabilities | | |
| Accounts payable and accrued expenses | | | $ | 2,077 | | $ | 1,456 | |
| Accrued salaries and commissions | | | | 1,801 | | | 1,390 | |
| Income taxes payable | | | | 134 | | | 142 | |
| Deposits from customers | | | | 82 | | | 13 | |
| Warranty obligations | | | | 393 | | | 210 | |
| Deferred revenue | | | | 4,438 | | | 4,504 | |
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| |
| |
| Total current liabilities | | | | 8,925 | | | 7,715 | |
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| Commitments and contingencies | | |
| Stockholders’ equity | | |
| Preferred stock ($0.01 par value; 2,500,000 shares authorized; | | |
| none issued and outstanding) | | | | — | | | — | |
| Common stock ($0.01 par value; 50,000,000 shares authorized: | | | | 0 | |
| 15,930,707 and 15,026,470 shares issued and outstanding, | | |
| respectively) | | | | 159 | | | 15 | |
| Additional paid-in capital | | | | 46,016 | | | 44,626 | |
| Accumulated deficit | | | | (1,065 | ) | | (9,748 | ) |
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| |
| |
| | | | | 45,110 | | | 35,028 | |
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| |
| Total liabilities and stockholders’ equity | | | $ | 54,035 | | $ | 42,743 | |
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