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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) (212) 838-3777
(631) 694-9555 Bruce Voss (bvoss@lhai.com)
www.misonix.com (310) 691-7100
- --------------- www.lhai.com
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MISONIX REPORTS INCREASED REVENUES AND EARNINGS FOR
ITS SECOND FISCAL QUARTER 2004
FARMINGDALE, N.Y., JANUARY 29, 2004 MISONIX, INC. (NASDAQ NM: MSON) today
reported financial results for the three and six months ended December 31, 2003.
Highlights for the second quarter and first six months of fiscal 2004 include:
- Revenues for the quarter ended December 31, 2003 increased 14% from
the prior year driven by a 27% increase in medical device product
revenues
- Revenues for the six months ended December 31, 2003 increased 18% from
the prior year with medical device product revenues increasing by 35%
- Net income increased 244% and 377% for the three and six months ended
December 31, 2003, respectively, from the same periods in fiscal 2003
- Operating earnings increased 99% to $447,000 and 95% to $612,000 for
the three and six months, respectively, ending December 31, 2003 as
compared to $225,000 and $314,000 for the same periods in the previous
fiscal year
- Backlog of unfilled orders was $8.5 million, a 53% increase from that
of June 30, 2003
Revenues for the three months ended December 31, 2003 were $9.3 million, a 14%
increase when compared with $8.2 million for the same period in fiscal 2003.
The Company recorded net income for the quarter of $389,000 or $.06 per fully
diluted share, compared to net income of $113,000 or $.02 per fully diluted
share for the same period in fiscal 2003. Medical device product revenues
increased 27% to $5.1 million and laboratory and scientific revenues increased
1% to $4.2 million. The increase in medical device product revenues was
attributable to a 37% increase in therapeutic medical device product revenues to
$2.9 million and a 16% increase in diagnostic medical device product revenues to
$2.2 million. The increase in laboratory and scientific product revenues were
mainly attributable to a 43% increase in sales of ultrasonic laboratory products
and a 4% increase in sales of Labcaire's endoscopic cleaning and disinfecting
units partially offset by a 12% decrease in fume enclosure sales and a 46%
reduction in wet scrubbers sales.
Gross profit, as a percentage of sales, increased to 42.8% for the second fiscal
quarter of 2004 from 41.7% for the same period in the prior fiscal year. The
increase was a result of a combination of volume efficiencies from the increased
revenues and cost reductions implemented during the prior fiscal year.
Royalty income for the three months ended December 31, 2003 increased as
compared to the same period in the prior year due to increased product sales by
US Surgical Corporation.
Revenues for the six months ended December 31, 2003 were $17.9 million, an 18%
increase when compared with $15.2 million for the same period in fiscal 2003.
The Company recorded net income for the first six months of fiscal 2004 of
$783,000 or $.12 per fully diluted share, compared to net income of $164,000 or
$.03 per fully diluted share for the same period in fiscal 2003. Medical device
product revenues increased 35% to $9.7 million and laboratory and scientific
product revenues increased 3% to $8.2 million. The increase in medical device
product revenues was attributable to a 43% increase in diagnostic medical
devices revenues to $5.3 million and a 27% increase in diagnostic medical
product revenues to $4.4 million. The increase in laboratory and scientific
product revenues was mainly attributable to a 22% increase in ultrasonic
laboratory product sales and a 10% increase in sales of Labcaire's endoscopic
cleaning and disinfecting units partially offset by a 12% decrease in ductless
fume enclosure sales and a 44% reduction in wet scrubber sales.
At December 31, 2003, the backlog of unfilled orders was $8.5 million compared
with $5.6 million as of June 30, 2003. Medical device product backlog was $5.8
million a 98% increase and laboratory and scientific product backlog was $2.7
million, a 1% increase, respectively, from the prior year.
Michael A. McManus, Jr., President and Chief Executive Office commented, "We
continue to be pleased with our growth in both revenues and earnings. Our
medical device business continues to perform above expectation and we expect our
laboratory and scientific business to grow especially as the economic
environment improves."
Mr. McManus further added, "The use of ultrasound technology is becoming widely
recognized for its application to medical devices. We continue to work with
Mentor Corporation, Tyco United States Surgical Corporation, Aesculap, and
Circon among other companies, to expand their product offerings using ultrasound
technology. It has been reported that research is being done on the application
of therapeutic ultrasound to heart, uterus and breast on a worldwide basis. We
believe that more companies will be coming to Misonix for their ultrasonic
medical devices as our expertise continues to be recognized. This is due to the
fact that we have demonstrated our capabilities to deliver ultrasound technology
to state of the art medical devices. These devices will continue to be
developed internally as a result of our own research and development efforts, or
in some cases we will develop products requested by others."
Regarding guidance, the Company said it continues to expect an increase of 8-10%
in revenues for fiscal year 2004 and an increase in diluted earnings per share
from $0.20 to $0.22. The increase does not include the incremental benefit from
any development projects or products.
Misonix has scheduled an investor conference call regarding this announcement to
be held on Thursday, January 29 beginning at 4:30 p.m. Eastern Time. To
participate in the call, please dial (888) 803-7638. For international callers,
the number is (706) 634-1218. Those unable to participate are invited to listen
to a recording of the call and Q&A from 7:30 p.m. Eastern Time, Thursday,
January 29 through 11:59 p.m. Eastern Time, Saturday, January 31 by dialing
(800) 642-1687 or (706) 645-9291, access code 5218781. Alternatively,
individual investors are invited to listen to the conference call over the
Internet. Please log on to www.misonix.com at least 15 minutes prior to the
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start of the call to register, download and install any necessary audio
software. A webcast replay will begin shortly after the call has ended and will
be available for 14 days.
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 Six Months Ended
December 31, December 31,
2003 2002 2003 2002
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Net sales $9,296,109 $8,174,513 $17,916,007 $15,184,835
Cost of goods sold 5,317,891 4,769,355 10,272,094 8,822,459
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Gross profit 3,978,218 3,405,158 7,643,913 6,362,376
Selling expenses 1,121,959 1,096,960 2,078,492 2,032,563
General and administrative expenses 1,834,278 1,632,258 3,890,046 3,152,131
Research and development expenses 575,166 476,562 1,063,646 1,015,888
Litigation (recovery) settlement expenses - (25,326) - (152,628)
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Total operating expenses 3,531,403 3,180,454 7,032,184 6,047,954
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Income from operations 446,815 224,704 611,729 314,422
Total other income 246,066 5,221 758,015 20,332
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Income before minority interest and
income taxes 692,881 229,925 1,369,744 334,754
Minority interest in the net income (loss) of
consolidated subsidiaries 14,125 (40,553) 28,151 (33,836)
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Income before income taxes 678,756 270,478 1,341,593 368,590
Income tax expense 289,470 157,437 558,565 204,392
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Net income $ 389,286 $ 113,041 $ 783,028 $ 164,198
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Net income per share-basic $ 0.06 $ 0.02 $ 0.12 $ 0.03
======================= =========================
Net income per share-diluted $ 0.06 $ 0.02 $ 0.12 $ 0.03
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Weighted average common shares-basic 6,655,865 6,511,188 6,655,865 6,308,526
======================= =========================
Weighted average common shares-diluted 6,732,540 6,598,096 6,729,060 6,554,421
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MISONIX, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2003 JUNE 30, 2003
Unaudited Audited
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ASSETS
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Current Assets:
Cash and cash equivalents $ 4,915,875 $ 2,279,869
Accounts receivable, net of allowance
for doubtful accounts of $747,199 and
$644,157, respectively 6,383,146 7,844,399
Inventories 9,499,832 8,979,472
Deferred income taxes 605,313 477,580
Prepaid expenses and other current assets 654,560 983,523
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Total current assets 22,058,726 20,564,843
Property, plant and equipment, net 3,769,931 3,574,207
Deferred income taxes 459,677 862,690
Goodwill 4,473,713 4,473,713
Other assets 328,960 319,136
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Total assets $ 31,091,007 $ 29,794,589
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Revolving credit facilities 1,258,477 704,669
Accounts payable 3,091,945 3,563,208
Accrued expenses and other current liabilities 1,664,524 2,002,154
Income tax payable 416,651 47,453
Current maturities of long-term debt and capital lease
obligations 297,652 279,554
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Total current liabilities 6,729,249 6,597,038
Long-term debt and capital lease obligations 1,304,031 1,235,362
Deferred income 394,875 356,076
Minority interest 291,602 263,450
Stockholders' equity:
Capital stock, $0.01 par - shares authorized 10,000,000;
6,733,665 issued and 6,655,865 outstanding 67,337 67,337
Additional paid-in capital 22,712,511 22,712,511
Retained deficit (270,456) (1,053,484)
Treasury stock, 77,800 shares (412,424) (412,424)
Accumulated other comprehensive income 274,282 28,723
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Total stockholders' equity 22,371,250 21,342,663
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Total liabilities and stockholders' equity $ 31,091,007 $ 29,794,589
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