EXHIBIT 99.1
Company Contact Investor Relations Contacts
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Michael A. McManus, Jr. Lippert/Heilshorn & Associates, Inc.
President and CEO Kim Sutton Golodetz
Misonix, Inc. (kgolodetz@lhai.com)
(631) 694-9555 (212) 838-3777
www.misonix.com Bruce Voss (bvoss@lhai.com)
- --------------- (310) 691-7100
www.lhai.com
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MISONIX REPORTS FISCAL THIRD QUARTER EPS OF $0.04
ON 19% INCREASE IN REVENUES
FARMINGDALE, N.Y., (APRIL 29, 2003) MISONIX, INC. (NASDAQ NM: MSON) today
reported financial results for the three and nine months ended March 31, 2003.
Highlights include:
- Revenue increased 19% and 10% over the three and nine-month periods
ended March 31, 2002, respectively.
- Diluted earnings per share increased to $0.04 and $0.06, from $(0.03)
and $0.00 in the comparable prior-year periods, respectively.
- Medical device revenues increased 95% and 45% compared with prior-year
periods, respectively.
- Backlog of unfilled orders increased 57% from June 30, 2002.
- Misonix and Hearing Innovations continue to expand marketing of the
HiSonic and HiSonic Tinnitus Relief Device (TRD).
Revenues for the fiscal 2003 third quarter ended March 31, 2003 were $8.7
million, a 19% increase from $7.4 million for the comparable period in the prior
fiscal year. The Company recorded net income of $244,000, or $0.04 diluted
earnings per share, compared with a net loss of ($211,000), or ($0.03) per
share, for the same period in fiscal 2002. Revenues included a 95%, or $2.2
million, increase in medical device sales partially offset by a reduction in
industrial product sales of 17%, or $846,000. Diagnostic medical devices sales
increased 59% to $2.3 million from $1.4 million in the year-ago quarter and
therapeutic medical devices sales increased 154% to $2.3 million from $895,000
last year.
The reduction in industrial products sales was mainly attributed to a 15%
reduction in revenue from Labcaire's endoscopic disinfectant units, a 45%
reduction in scrubber net sales, and a 14% decrease in ductless fume enclosure
sales, partially offset by a 6% increase sales for industrial ultrasonic
laboratory products. The reduction in Labcaire's endoscopic disinfectant units
was due to an engineering redesign of some parts, which temporarily slowed the
rate at which such products were shipped. As of the end of 2003 fiscal third
quarter, the engineering redesign has been completed and shipments have
recommenced. The reduction in both wet scrubber and ductless fume enclosure
sales was predominately due to poor economic conditions in markets that use
these products.
Gross margins as a percentage of sales improved to 43.9% from 41.3%,
predominately due to higher margins associated with increased sales of
therapeutic and diagnostic medical devices.
The Company continued to invest in Hearing Innovations through secured notes in
the aggregate amount of $49,000 during the fiscal third quarter. These notes
have been fully reserved for, and the accounting treatment is consistent with
that of similar expenditures that occurred during fiscal 2002 and 2001. The
current ability of companies such as Hearing Innovations to access capital
markets or incur third party debt is very limited and is likely to remain so for
the foreseeable future. In light of this fact, the Company continues to review
strategic options available to it and Hearing Innovations due to Hearing
Innovations' continuing need for financial support.
Revenues for the nine months ended March 31, 2003 were $23.9 million, a 10.3%
increase from $21.7 million reported for the same period in the prior year. The
Company recorded net income of $409,000, or $0.06 per diluted share, for the
nine months ended March 31, 2003, compared with net income of $7,000 or $0.00
per share, for the same period in the prior fiscal year. Year-to-date revenues
increased in medical device products by 45%, or $3.6 million, to $11.8 million,
and revenues decreased in industrial products by 10%, or $1.4 million, to $12.2
million. The Company's nine-month investment in Hearing Innovations through
secured notes totaled $246,000. These notes have been fully reserved for, and
the accounting treatment is consistent with that of similar expenditures that
occurred during fiscal 2002 and 2001.
The backlog of unfilled orders at March 31, 2003 was $8.0 million, a 57%
increase, compared with $5.1 million as of June 30, 2002. The increase in
backlog was primarily due to the accumulation of orders for Labcaire's Guardian
product. This partially occurred as a result of a reduction in shipments taking
place while the engineering redesign was completed, and also from the increase
in therapeutic medical device orders. The Company temporarily increased
inventories to support the replacement probe and refurbished systems businesses
at Sonora and the backlog of orders for the Guardian product at Labcaire.
Michael A. McManus, Jr., President and CEO of Misonix, stated, "We are pleased
with the growth in revenues and earnings for the three and nine months of fiscal
2003. We are encouraged by the increase in sales of our therapeutic medical
devices and at Sonora with respect to its First Call 2000 product.
The Hearing Innovations TRD has been launched in the Northeast U.S. While the
results to date have been slower than expected, we continue to be optimistic
about its potential. We have been making ongoing modifications to these
products as we obtain customer feedback. The headset is now more comfortable
and the importance of proper placement is better overall. We are continuing to
educate audiologists on the fitting and follow up necessary for patient success
with the HiSonic TRD. The increased profile of the product has enabled our
Company to continue discussions with potential distributors. Clinical success
also has resulted in contacts coming to us from other potential distributors.
We began an analysis of the HiSonic's potential benefits for the profoundly deaf
at clinics associated with New York Hearing Centers."
"Focus Surgery continues to successfully treat patients in Asia and Europe," Mr.
McManus added. "The clinical trials for treatment of men with prostate cancer
continue to be successful. The prototype product for the treatment of kidney
cancer has completed its animal testing and will now begin a review of results
and design suggestions from prominent urologists."
Mr. McManus continued, "One of the great satisfactions in these financial
results comes from the fact that we are meeting the high expectations we set for
this year. We continue to remain comfortable with annual revenues increasing by
approximately 10% over the prior fiscal year results and with annual earnings of
approximately $0.15 per diluted share. "
Misonix develops, manufactures, and/or markets medical, scientific and
industrial ultrasonic and air pollution systems and maintains minority equity
positions in both Focus Surgery and Hearing Innovations as its exclusive
manufacturer of the Sonoblate 500, HiSonic and HiSonic TRD devices.
Forward Looking Statements: Statements in this news release looking forward in
time are made pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that forward-looking
statements involve risks and uncertainties, including general economic
conditions, delays and risks associated with the performance of contracts,
uncertainties as a result of research and development, potential acquisitions,
consumer and industry acceptance, litigation and/or court proceedings, and
regulatory risks including approval of pending and/or contemplated 510K filings.
(Tables to follow)
MISONIX, INC.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2003 2002 2003 2002
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Net sales $8,747,677 $7,371,220 $23,932,512 $21,697,278
Cost of goods sold 4,908,659 4,323,252 13,731,118 12,138,803
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Gross profit 3,839,018 3,047,968 10,201,394 9,558,475
Selling expenses 1,090,662 1,164,287 3,123,225 3,221,775
General and administrative expenses 1,814,569 1,551,239 4,966,700 4,556,949
Research and development expenses 583,878 647,108 1,599,766 1,611,305
Litigation (recovery) settlement expenses (48,478) 0 (201,106) 0
----------- ----------- ------------ -----------
Total operating expenses 3,440,631 3,362,634 9,488,585 9,390,029
----------- ----------- ------------ -----------
Income (loss) from operations 398,387 (314,666) 712,809 168,446
Total other income (expense) 53,442 (73,840) 73,774 10,915
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Income (loss) before minority interest and
income taxes 451,829 (388,506) 786,583 179,361
Minority interest in the net (income) loss of
consolidated subsidiaries (29,628) (5,099) 4,208 25,631
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Income (loss) before income taxes 422,201 (393,605) 790,791 204,992
Income tax expense (benefit) 177,766 (182,833) 382,158 198,199
----------- ----------- ------------ -----------
Net income (loss) $ 244,435 ($210,772) $ 408,633 $ 6,793
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Net income (loss) per share-basic $ 0.04 (0.03) $ 0.06 $ -
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Net income (loss) per share-diluted $ 0.04 (0.03) $ 0.06 $ -
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Weighted average common shares-basic 6,643,300 6,096,887 6,420,118 6,068,272
=========== =========== ============ ===========
Weighted average common shares-diluted 6,686,981 6,096,887 6,598,608 6,247,761
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MISONIX, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2003 JUNE 30, 2002
Unaudited Audited
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ASSETS
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Current Assets:
Cash and cash equivalents $ 2,160,903 $ 1,065,465
Accounts receivable, net of allowance
for doubtful accounts of $344,792 and
$223,413, respectively 6,428,598 6,656,932
Inventories 9,452,396 7,170,844
Prepaid income taxes 306,900 1,391,978
Deferred income taxes 467,275 388,027
Prepaid expenses and other current assets 1,060,201 715,367
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Total current assets 19,876,273 17,388,613
Property, plant and equipment, net 3,369,137 3,151,909
Deferred income taxes 571,029 1,757,937
Goodwill 4,473,713 4,241,319
Other assets 304,115 424,674
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Total assets $ 28,594,267 $ 26,964,452
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Revolving credit facilities 706,083 730,092
Accounts payable 3,564,666 3,072,234
Accrued expenses and other current liabilities 1,369,478 1,304,824
Litigation settlement liabilities 170,000 174,332
Current maturities of long-term debt and capital
lease obligations 258,965 252,850
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Total current liabilities 6,069,192 5,534,332
Long-term debt and capital lease obligations 1,161,527 1,050,254
Deferred income 455,335 451,073
Minority interest 235,757 239,965
Stockholders' equity:
Capital stock, $0.01 par - shares authorized 10,000,000; 6,718,665 and
6,180,165 issued and 6,640,865 and 6,105,865 outstanding, respectively 67,186 61,802
Additional paid-in capital 22,701,711 22,313,991
Retained deficit (1,612,426) (2,021,059)
Treasury stock, 77,800 and 74,300 shares, respectively (412,424) (401,974)
Accumulated other comprehensive loss (71,591) (263,932)
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Total stockholders' equity 20,672,456 19,688,828
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Total liabilities and stockholders' equity $ 28,594,267 $ 26,964,452
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