Exhibit 99.1
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| Contact: |
| Sharps Compliance Corp. | David P. Tusa Senior Vice President & Chief Financial Officer dtusa@sharpsinc.com |
SHARPS COMPLIANCE CORP. ANNOUNCES FIRST QUARTER OF
FISCAL YEAR 2004 RESULTS
HOUSTON, Texas, (November 3, 2003) — Sharps Compliance Corp. and subsidiaries (OTC BB: SCOM) (“Sharps” or the “Company”), leading providers of cost-effective medical waste disposal solutions for industry and consumers, announced its operating results for the quarter ended September 30, 2003.
For the three months ended September 30, 2003, the Company generated revenues of $2.0 million which was virtually flat when compared to the prior year first quarter revenue.
The Company realized an improved gross margin of 39% for the quarter ended September 30, 2003 versus a gross margin of 33% for the corresponding quarter of the prior year.
The Company reported an operating loss of $0.1 million for the quarter ended September 30, 2003, an improvement over the operating loss for the quarter ended September 30, 2002 of $0.2 million.
Regarding the results, Dr. Burt Kunik, Chairman, Chief Executive Officer and President of Sharps Compliance Corp. stated, “Although, the revenues for the quarter were slightly below our expectations, we are very pleased with the significant improvement in our gross margins to the near 40% level as well as the narrowing of our quarterly operating loss. This improved performance is a direct result of our refocus on pricing, operational efficiencies and an aggressive cost reduction program.”
Kunik added, “We are extremely focused on closing a number of sales opportunities in the industrial, commercial and other markets during the fiscal year 2004. Revenue from these opportunities is a critical component to our fiscal year 2004 Plan expectations. Additionally, our Plan reflects the continuing improvement in our gross margins as well as stability in our quarterly overhead. Achievement of the above should result not only in revenue growth but also significantly improved bottom-line performance.”
In September 2003, the Company announced the completion of a $500,000 private placement of 625,000 of the Company’s common stock.
In closing, Kunik stated, “We are very pleased with the recent completion of the $500,000 common stock equity raise. These funds along with our current credit arrangement are expected to be utilized not only to fund working capital but also the planned growth of the business”.
Headquartered in Houston, Texas, Sharps is a leading developer of superior solutions for improving safety, efficiency and cost related to the proper disposal of medical waste by industry and consumers. The Company’s products and services represent cutting edge solutions for a variety of industries dealing with the complexity of managing regulatory compliance, environmental sensitivity, employee and customer safety, corporate risk and operating costs related to medical waste disposal. Sharps is a leading proponent and participant in the development of public awareness and solutions for the safe disposal of needles, syringes and other sharps in the community setting.
Sharps Compliance Corp. is the exclusive supplier of Sharps Disposal by Mail systems to the Consumer Health Care division of Becton, Dickinson and Company. The Company also maintains an exclusive sales and marketing arrangement with Waste Management, Inc. whereby Sharps provides safe disposal systems and related services for Waste Management’s residential and commercial customers.
The Company also has a mutually exclusive joint marketing agreement with McKesson Health Solutions (“McKesson”), a subsidiary of McKesson Corporation, to co-market and sell the Sharps Disposal by Mail System™ products and services to pharmaceutical manufacturers and biotechnology companies. McKesson is a leader in the design, implementation and management of marketing programs, specialty pharmaceutical services and patient support centers that help pharmaceutical and biotechnology manufactures successfully commercialize their products.
Sharps Compliance Corp.’s common stock trades on the OTC Bulletin Board under the symbol SCOM.
Any forward-looking statements in this release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, new products and technological changes, dependence upon third-party vendors, customer relations, government supervision and regulation, changes in industry practices, changes in third-party expense reimbursement procedures, and other risks detailed in the Company’s periodic filings with the Securities and Exchange Commission.
(Financial Highlights Follow)
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SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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| Three Months Ended September 30, |
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| 2003 |
| 2002 |
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| (Unaudited) |
| (Unaudited) |
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REVENUES |
| $ | 1,997,212 |
| $ | 2,048,868 |
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COSTS AND EXPENSES: |
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Cost of revenues |
| 1,217,710 |
| 1,381,390 |
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Selling, general and administrative |
| 836,386 |
| 841,811 |
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Depreciation and amortization |
| 38,658 |
| 21,151 |
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Operating loss |
| (95,542 | ) | (195,484 | ) | ||
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INTEREST (EXPENSE) INCOME, net |
| (21,035 | ) | 7,282 |
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Net loss |
| $ | (116,577 | ) | $ | (188,202 | ) |
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BASIC AND DILUTED NET LOSS PER SHARE |
| $ | (0.01 | ) | $ | (0.02 | ) |
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SHARES USED IN COMPUTING BASIC AND DILUTED NET LOSS PER SHARE |
| 9,960,811 |
| 9,822,023 |
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SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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| September 30, |
| June 30, |
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| (Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 281,507 |
| $ | 135,884 |
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Restricted cash |
| 43,614 |
| 152,851 |
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Accounts receivable, net |
| 763,142 |
| 740,760 |
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Inventory |
| 403,786 |
| 299,136 |
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Prepaid and other assets |
| 100,253 |
| 125,808 |
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Total current assets |
| 1,592,302 |
| 1,454,439 |
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Property and equipment, net |
| 577,358 |
| 597,691 |
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Intangible assets, net |
| 1,950 |
| — |
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Other assets |
| 11,695 |
| 11,695 |
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Total assets |
| $ | 2,183,305 |
| $ | 2,063,825 |
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Liabilities and stockholders’ (deficit) equity |
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Current liabilities: |
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Accounts payable |
| $ | 462,575 |
| $ | 567,918 |
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Accrued liabilities |
| 279,073 |
| 226,427 |
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Deferred revenue — pump return |
| 186,461 |
| 205,125 |
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Current portion of deferred revenue — incineration |
| 102,799 |
| 108,547 |
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Current portion of deferred revenue — transportation |
| 460,644 |
| 476,630 |
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Notes payable and current portion of long-term debt |
| 261,932 |
| 407,374 |
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Current maturities of capital lease obligations |
| 31,835 |
| 36,501 |
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Total current liabilities |
| 1,785,319 |
| 2,028,522 |
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Long-term deferred revenue — incineration, net of current portion |
| 33,977 |
| 35,794 |
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Long-term deferred revenue — transportation, net of current portion |
| 159,094 |
| 164,142 |
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Long-term debt, net of current portion |
| 16,096 |
| 45,563 |
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Obligations under capital lease, net of current maturities |
| 110,156 |
| 102,314 |
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Other |
| 34,750 |
| 27,000 |
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Total liabilities |
| 2,139,392 |
| 2,403,335 |
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Stockholders’ (deficit) equity: |
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Total stockholders’ (deficit) equity |
| 43,913 |
| (339,510 | ) | ||
Total liabilities and stockholders’ (deficit) equity |
| $ | 2,183,305 |
| $ | 2,063,825 |
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