[GRAPHIC OMITED]
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
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MISONIX, INC. REPORTS INCREASED REVENUES AND EARNINGS
FOR ITS THIRD FISCAL QUARTER 2004
FARMINGDALE, N.Y., APRIL 28, 2004 MISONIX, INC. (NASDAQ NM: MSON) today reported
financial results for the three and nine months ended March 31, 2004. Highlights
for the third quarter and nine months of fiscal 2004 include:
- The start of the distribution of the Sonablate 500 for Prostate Cancer
in Europe
- The release of a report at the European Association of Urology by Dr.
John Rewcastle indicating that 88% of patients treated with the
Sonablate 500 for prostate cancer had PSA levels below 1.0 at one year
follow up
- Expansion of the ultrasound refurbishing business into three Latin
American countries
- Revenues for the quarter ended March 31, 2004 increased 18% from the
prior year driven by a 33% increase in medical device product revenues
- Revenues for the nine months ended March 31, 2004 increased 18% from
the prior year with medical device product revenues increasing by 34%
- Net income increased 59% and 187% for the three and nine months ended
March 31, 2004, respectively, from the same periods in fiscal 2003
- Operating income increased 96% to $783,000 and 96% to $1.4 million for
the three and nine months, respectively, ended March 31, 2004 as
compared to $398,000 and $713,000 for the same periods in the previous
fiscal year
- The backlog of unfilled orders was $10.2 million, an 82% increase from
that of June 30, 2003 and a 19% increase from that of December 31,
2003
Revenues for the three months ended March 31, 2004 were $10.3 million, an 18%
increase when compared with $8.7 million for the same period in fiscal 2003.
The Company recorded net income for the quarter of $388,000 or $.06 per fully
diluted share, compared to net income of $244,000 or $.04 per fully diluted
share for the same period in fiscal 2003. Medical device product revenues
increased 33% to $6.0 million and laboratory and scientific product revenues
increased 3% to $4.3 million. The increase in medical device product revenues
was attributed to a 62% increase in therapeutic medical device revenues to $3.6
million and a 4% increase in diagnostic medical device product revenues to $2.4
million. The increase in laboratory and scientific product revenues were mainly
attributable to a 10% increase in sales of ultrasonic laboratory products, a 14%
increase in sales of wet scrubber products and a 5% increase in sales of
ductless fume enclosures, partially offset by a 2% reduction in endoscopic
cleaning and disinfecting unit sales.
Revenues for the nine months ended March 31, 2004 were $28.3 million, an 18%
increase when compared with $23.9 million for the same period in fiscal 2003.
The Company recorded net income for the nine months ended March 31, 2004 of $1.2
million or $.17 per fully diluted share, a 187% increase when compared to net
income of $409,000 or $.06 per fully diluted share for the same period in fiscal
2003. Medical device product revenues increased 34% to $15.8 million and
laboratory and scientific product revenues increased 3% to $12.5 million. The
increase in medical device product revenues was attributed to a 50% increase in
therapeutic medical device revenues to $8.9 million and an 18% increase in
diagnostic medical device revenues to $6.9 million. The increase in laboratory
and scientific product revenues was mainly attributable to a 18% increase in
ultrasonic laboratory product sales and a 6% increase in sales of Labcaire's
endoscopic cleaning and disinfecting units partially offset by a 7% decrease in
ductless fume enclosure sales and a 23% reduction in wet scrubber sales.
As of March 31, 2004, the backlog of unfilled orders was $10.2 million, an 82%
increase when compared with $5.6 million, as of June 30, 2003. Medical device
product backlog was $6.0 million, a 99% increase, and laboratory and scientific
product backlog was $4.2 million, a 63% increase, respectively, from June 30,
2003.
Michael A. McManus, Jr., President and Chief Executive Officer commented, "We
continue to be pleased with our growth in both revenues and earnings. Our
medical device business continues to perform above expectation and our
laboratory and scientific business is starting to show evidence of improvement
with increased revenues and backlog."
Mr. McManus further added, "We are very excited about distributing the Sonablate
500 for the treatment of prostate cancer and other prostate afflictions in
Europe and Russia. We believe the market opportunity is substantial. This new
sales effort will be integrated into our present sales of the neuroaspirator in
Europe. Our distribution network in Italy, Germany and Greece will be important
in this growth and will be expanded to other countries.
We are continuing our development work on the use of HIFU in the ablation of
kidney and liver cancer. We believe this will be a unique product providing
substantial benefit to cancer patients."
Mr. McManus continued, "Work on our product utilizing ultrasound for wound
debridement is being completed with clinical studies in Italy and in New York.
We are also pleased with the Latin America relationships Sonora has established
for the repair and replacement of ultrasonic probes. These two initiatives
reinforce the recognition of ultrasound technology and the market for
replacement and repair as well as the fact that Misonix has the capability to
deliver ultrasound technology to state of the art medical devices.
We believe that the significant growth we are showing in revenues and earnings
together with our new product pipelines establishes Misonix as a leader in the
application of ultrasound to medical devices."
Regarding guidance, the Company said it still is expecting to increase revenues
by 10% for fiscal year 2004 and based upon strong results to date, an increase
in diluted earnings per share to $.24 from $.22.
As previously announced, the Company has scheduled a conference call to discuss
this announcement beginning at 4:30 p.m. Eastern Time today. To participate in
the call, a few minutes prior to the start time, please dial (888) 803-7638 in
the U.S. or (706) 634-1218 for international callers. Those unable to
participate are invited to listen to a recording of the call and Question and
Answer session that will be available from 5:30 p.m. Eastern Time, Wednesday,
April 28 through 11:59 p.m. Eastern Time, Friday, April 30 by dialing (800)
642-1687 in the U.S. or (706) 645-9291 for international callers, and entering
reservation code 7075436. Alternatively, individuals may listen to the call by
visiting the investor relations section of the Company's website at
www.misonix.com. To listen to the live call, please go to the website 15
minutes prior to its start to register, download, and install the necessary
audio software. A replay will begin shortly after the call has ended and will
be available for 14 days.
Misonix develops, manufactures, and/or markets medical, scientific and
industrial ultrasonic and air pollution systems and maintains a minority equity
position in Focus Surgery as its exclusive manufacturer of the Sonablate 500.
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,
2004 2003 2004 2003
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Net sales $10,346,249 $8,747,677 $28,262,256 $23,932,512
Cost of goods sold 5,892,060 4,908,659 16,164,154 13,731,118
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Gross profit 4,454,189 3,839,018 12,098,102 10,201,394
Selling expenses 1,203,820 1,090,662 3,282,312 3,123,225
General and administrative expenses 1,813,594 1,814,569 5,703,640 4,966,700
Research and development expenses 654,232 583,878 1,717,878 1,599,766
Litigation (recovery) settlement expenses - (48,478) - (201,106)
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Total operating expenses 3,671,646 3,440,631 10,703,830 9,488,585
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Income from operations 782,543 398,387 1,394,272 712,809
Total other income 2,229 53,442 760,244 73,774
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Income before minority interest and
income taxes 784,772 451,829 2,154,516 786,583
Minority interest in the net income (loss) of
consolidated subsidiaries 7,790 29,628 35,941 (4,208)
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Income before income taxes 776,982 422,201 2,118,575 790,791
Income tax expense 388,933 177,766 947,498 382,158
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Net income $ 388,049 $ 244,435 $ 1,171,077 $ 408,633
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Net income per share-basic $ 0.06 $ 0.04 $ 0.18 $ 0.06
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Net income per share-diluted $ 0.06 $ 0.04 $ 0.17 $ 0.06
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Weighted average common shares-basic 6,655,865 6,643,300 6,655,865 6,420,118
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Weighted average common shares-diluted 6,774,501 6,686,981 6,744,207 6,598,608
======================== =========================
MISONIX, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2004 JUNE 30, 2003
Unaudited Audited
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ASSETS
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Current Assets:
Cash and cash equivalents $ 4,140,253 $ 2,279,869
Accounts receivable, net of allowance
for doubtful accounts of $530,204 and
$644,157, respectively 6,513,591 7,844,399
Inventories 10,975,988 8,979,472
Deferred income taxes 599,130 477,580
Prepaid expenses and other current assets 1,238,261 983,523
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Total current assets 23,467,223 20,564,843
Property, plant and equipment, net 3,930,592 3,574,207
Deferred income taxes 450,778 862,690
Goodwill 4,473,713 4,473,713
Other assets 348,725 319,136
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Total assets $ 32,671,031 $ 29,794,589
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Revolving credit facilities 641,636 704,669
Accounts payable 4,366,485 3,563,208
Accrued expenses and other current liabilities 2,070,873 2,002,154
Income tax payable 399,245 47,453
Current maturities of long-term debt and capital
lease obligations 308,007 279,554
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Total current liabilities 7,786,246 6,597,038
Long-term debt and capital lease obligations 1,320,613 1,235,362
Deferred income 387,479 356,076
Minority interest 299,392 263,450
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 earnings (deficit) 117,593 (1,053,484)
Treasury stock, 77,800 shares (412,424) (412,424)
Accumulated other comprehensive income 392,284 28,723
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Total stockholders' equity 22,877,301 21,342,663
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Total liabilities and stockholders' equity $ 32,671,031 $ 29,794,589
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