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Exhibit 99.1
[BIO-PLEXUS]
CONTACT: -OR- INVESTOR RELATIONS COUNSEL:
Bio-Plexus, Inc. The Equity Group Inc.
Jill Phillips (860) 870-6112 Tom Ennis (212) 836-9607
pressrelease@bio-plexus.com Devin Sullivan (212) 836-9608
www.theequitygroup.com
FOR IMMEDIATE RELEASE
BIO-PLEXUS ANNOUNCES YEAR-END RESULTS
Vernon, CT - April 2, 2001 - BIO-PLEXUS, INC. (OTCBB: BPLX), a
leader in the design, manufacture and marketing of safety medical needles and
other products, today announced its financial results for the year ended
December 31, 2000.
Total revenues for the year ended December 31, 2000 were
$4,995,000, compared to $7,024,000 for the comparable period a year ago. The
Company incurred a net loss for the year of $10,937,000, or $0.74 per share,
compared to a net loss of $5,233,000, or $0.39 per share for the same period in
1999. The results for the latest year ended December 31, 2000 and the comparable
year ended December 31, 1999, were based on weighted average shares outstanding
of 14,695,505 and 13,540,922, respectively.
As reported on March 19, 2001, Bio-Plexus has reached an
agreement in principle with its principal lender, Appaloosa Management LP to
recapitalize the Company with the goal of raising up to $10 million in new
equity and debt financing. In order to quickly complete the recapitalization and
financing, the Company plans to file a voluntary petition under Chapter 11 of
the United States Bankruptcy Code.
John S. Metz, President and Chief Executive Officer of
Bio-Plexus, commented, "The year 2000 was difficult for Bio-Plexus. However, we
believe our recently announced restructuring will position the Company for
future growth in the medical safety needle industry. A successful reorganization
will ultimately provide Bio-Plexus with the capital needed to penetrate an
industry which is supported by federal legislation and that is in need of
better safety devices. The other positive effects of the restructuring are:
(a) long-term debt of approximately $19 million will be retired, (b) annual
interest expense of $2.5 million will be eliminated, (c) shareholder equity
will increase from about negative $3 million to about $19 million positive and,
(d) current restrictive operating covenants will be eliminated.
"Bio-Plexus has already established itself as a world-class
provider of safety medical needles and related products," added Mr. Metz. "But
our efforts to increase sales have been hindered by the Company's lack of
financing and untenable financial position. A successful implementation of this
recapitalization, coupled with the added infusion of capital by Appaloosa, will
help us attain a more significant market position and a commensurate increase in
sales. We remain committed to bringing our PUNCTUR-GUARD(R) technology to the
marketplace."
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Bio-Plexus, Inc., designs, develops, manufactures and holds
U.S. and international patents on safety medical needles and other products
under the PUNCTUR-GUARD(R), DROP-IT(R), and PUNCTUR-GUARD REVOLUTION(TM) brand
names. For independent evaluations of the PUNCTUR-GUARD(R) blood collection
needle, refer to the Centers for Disease Control (MMWR, January 1997) and ECRI
(Health Devices, June 1998 and October 1999) studies. Accidental needlesticks
number about one million per year in the United States and can result in the
transmission of deadly diseases including HIV and Hepatitis B and C.
NOTE: THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING
STATEMENTS ARE IDENTIFIED BY THE USE OF SUCH TERMINOLOGY AS "BELIEVES,"
EXPECTS," "MAY," "WILL," "SHOULD," "ANTICIPATES," "PLANS," "ESTIMATES," AND
"INTENDS" OR DERIVATIONS OR NEGATIVES THEREOF OR COMPARABLE TERMINOLOGY.
ACCORDINGLY, SUCH STATEMENTS INVOLVE RISKS (KNOWN AND UNKNOWN) AND
UNCERTAINTIES. THESE RISKS AND UNCERTAINTIES INCLUDE THE COMPANY'S ABILITY TO
TIMELY AND FULLY COMPLETE ITS PLAN OF REORGANIZATION, WHICH IN TURN WILL DEPEND
ON A MULTITUDE OF FACTORS, INCLUDING THE TIMELY APPROVAL OF THE PLAN BY THE
BANKRUPTCY COURT AND AFFECTED PARTIES, THE AVAILABILITY OF SUFFICIENT CAPITAL TO
FUND THE COMPANY'S OPERATIONS DURING THE BANKRUPTCY PROCEEDINGS AND THE
CONTINUED WILLINGNESS OF THE COMPANY'S CUSTOMERS, VENDORS AND EMPLOYEES TO
MAINTAIN THEIR RELATIONSHIPS WITH THE COMPANY DURING THIS PERIOD. THE COMPANY
UNDERTAKES NO OBLIGATION TO UPDATE OR ADVISE UPON ANY SUCH FORWARD-LOOKING
STATEMENT.
- Tables Follow -
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BIO-PLEXUS, INC.
BALANCE SHEETS
DECEMBER 31, DECEMBER 31,
2000 1999
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ASSETS
Current assets:
Cash and cash equivalents $ 4,003,000 $ 867,000
Accounts receivable 516,000 908,000
Inventories:
Raw materials 1,379,000 621,000
Work-in-process 36,000 474,000
Finished goods 1,634,000 1,167,000
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3,049,000 2,262,000
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Other current assets 124,000 173,000
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Total current assets 7,692,000 4,210,000
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Fixed assets, net 7,634,000 4,384,000
Deferred debt financing expenses 1,017,000 465,000
Patents, net of amortization 415,000 335,000
Other assets 3,000 253,000
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$ 16,761,000 $ 9,647,000
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LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of long-term debt $ 52,000 $ 899,000
Note payable -- 1,340,000
Accounts payable and accrued expenses 1,105,000 786,000
Accrued interest payable 24,000 55,000
Accrued vacation 122,000 202,000
Other accrued employee costs 282,000 226,000
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Total current liabilities 1,585,000 3,508,000
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Other long-term debt, net 17,806,000 2,262,000
Redeemable common stock warrants -- 149,000
Commitments and contingencies -- --
Shareholders' equity (deficit):
Convertible preferred stock, no par value, 3,000,000
authorized, no shares issued and outstanding -- --
Common stock, no par value, 40,000,000 authorized,
14,887,230 and 14,083,807 shares issued and outstanding 76,412,000 71,833,000
Accumulated deficit (79,042,000) (68,105,000)
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Total shareholders' equity (deficit) (2,630,000) 3,728,000
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$ 16,761,000 $ 9,647,000
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BIO-PLEXUS, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31,
2000 1999 1998
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Revenue:
Product $ 4,693,000 $ 5,498,000 $ 5,086,000
Services 102,000 1,426,000 4,171,000
Licensing fees 200,000 100,000 50,000
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Total revenue 4,995,000 7,024,000 9,307,000
Costs and expenses:
Product 2,450,000 3,754,000 6,355,000
Services 35,000 87,000 267,000
Research and development 1,180,000 1,112,000 463,000
Selling, general and administrative 7,677,000 4,937,000 4,593,000
------------ ------------ ------------
Total operating costs and expenses 11,342,000 9,890,000 11,678,000
Operating Loss (6,347,000) (2,866,000) (2,371,000)
------------ ------------ ------------
Financing expenses:
Amortization of deferred debt financing 333,000 266,000 63,000
Other financing expenses 4,558,000 2,158,000 633,000
Other income (301,000) (57,000) (107,000)
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Total financing expenses 4,590,000 2,367,000 589,000
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Net loss $(10,937,000) $ (5,233,000) $ (2,960,000)
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Net loss (basic and diluted) per common share $ (0.74) $ (0.39) $ (0.24)
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Weighted average common shares outstanding 14,695,505 13,540,922 12,263,870
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BIO-PLEXUS, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31,
2000 1999 1998
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(10,937,000) $(5,233,000) $(2,960,000)
Adjustments to reconcile net loss to cash used
by operating activities:
Depreciation and amortization 546,000 552,000 923,000
Writedown of equipment to net realizable value -- 280,000 1,359,000
Amortization of deferred debt financing expenses 333,000 266,000 63,000
333,000
Amortization of debt discount 2,364,000 1,747,000 59,000
(Increase) decrease in assets:
Accounts receivable 392,000 (344,000) (169,000)
Inventories (787,000) (238,000) (117,000)
Other current assets 49,000 -- --
Notes receivable -- -- 152,000
Increase (decrease) in liabilities:
Accounts payable and accrued expenses 319,000 248,000 (91,000)
Accrued interest payable (31,000) 27,000 2,000
Accrued vacation and other accrued employee costs (24,000) 19,000 (43,000)
Accrued product replacement costs -- (222,000) 222,000
(Decrease) increase in deferred revenue -- (875,000) 34,000
Other 290,000 (188,000) 155,000
------------ ----------- -----------
Net cash used in operating activities (7,486,000) (3,961,000) (411,000)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases and construction of fixed assets (3,769,000) (536,000) (82,000)
Long-term investments -- 627,000 (600,000)
Cost of patents (107,000) (103,000) (115,000)
------------ ----------- -----------
Net cash used in investing activities (3,876,000) (12,000) (797,000)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock 750,000 1,100,000 1,250,000
Proceeds from exercise of common stock options 115,000 91,000 29,000
Accretion of interest payable 1,721,000 -- --
Redemption of common stock -- -- (20,000)
Proceeds from long-term debt 9,900,000 2,060,000 300,000
Payments of Deferred Financing Costs (885,000) -- --
Increase in notes payable 3,850,000 2,750,000 250,000
Proceeds from sale and leaseback -- 137,000 --
Repayments of long-term debt (953,000) (1,833,000) (1,568,000)
------------ ----------- -----------
Net cash provided by financing activities 14,498,000 4,305,000 241,000
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Net (decrease) increase in cash and cash equivalents 3,136,000 332,000
(967,000)
Cash and cash equivalents, beginning of period 867,000 535,000 1,502,000
------------ ----------- -----------
Cash and cash equivalents, end of period $ 4,003,000 $ 867,000 $ 535,000
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