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) (310) 691-7100
www.misonix.com www.lhai.com
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Misonix, Inc. Reports Record Revenues and Increased
Earnings for Fiscal Year Ended June 30, 2004
FARMINGDALE, N.Y., August 25, 2004 Misonix, Inc. (NASDAQ NM: MSON) today
reported financial results for the three and twelve months ended June 30, 2004.
Highlights for the fiscal year 2004 include:
o Revenues for the twelve months ended June 30, 2004 increased 12%
from the prior year driven by a 22% increase in medical device
product revenues.
o Net income increased 78% to $1.7 million for the twelve months ended
June 30, 2004 as compared to $968,000 from the same period in fiscal
2003.
o The backlog of unfilled orders was $8.7 million, a 56% increase from
that of June 30, 2003.
o Sales of the Sonablate 500 (SB 500) have started in Europe.
o The submission of a 510k application to the FDA for laparoscopic
ablation.
Revenues for the three months ended June 30, 2004 were $10.8 million compared
with $10.9 million for the same period in fiscal 2003. The Company recorded net
income for the quarter of $548,000 or $.08 per fully diluted share, compared to
net income of $559,000 or $.08 per fully diluted share for the same period in
fiscal 2003. Medical device product revenues decreased 3% to $5.6 million and
laboratory and scientific product revenues increased 1% to $5.2 million. The
decrease in medical device product revenues was attributed to an 18% decrease in
diagnostic medical device revenues to $2.3 million partially offset by a 12%
increase in therapeutic medical device revenues to $3.3 million. The increase in
laboratory and scientific product revenues was mainly attributable to a 6%
increase in sales of endoscopic cleaning and disinfecting units, and a 2%
increase in sales of ductless fume enclosures, partially offset by a 20%
reduction in sales of wet scrubber products and an 8% reduction in ultrasonic
laboratory product sales.
Revenues for the twelve months ended June 30, 2004 were $39.1 million, a 12%
increase when compared with $34.9 million for the same period in fiscal 2003.
The Company recorded net income for the twelve months ended June 30, 2004 of
$1.7 million or $.25 per fully diluted share, a 78% increase when compared to
net income of $968,000 or $.15 per fully diluted share for the same period in
fiscal 2003. Medical device product revenues increased 22% to $21.4 million and
laboratory and scientific product revenues increased 2% to $17.7 million. The
increase in medical device product revenues was attributed to a 38% increase in
therapeutic medical device revenues to $12.3 million and a 6% increase in
diagnostic medical device revenues to $9.1 million. The increase in laboratory
and scientific product revenues was mainly attributable to a 10% increase in
ultrasonic laboratory product sales and a 6% increase in sales of Labcaire's
endoscopic cleaning and disinfecting units partially offset by a 5% decrease in
ductless fume enclosure sales and a 23% reduction in wet scrubber sales.
As of June 30, 2004, the backlog of unfilled orders was $8.7 million, a 56%
increase when compared with $5.6 million as of June 30, 2003. Medical device
product backlog was $5.8 million, a 91% increase, and laboratory and scientific
product backlog was $2.9 million, a 15% increase, respectively, from June 30,
2003.
Mr. Michael McManus, Jr., President and Chief Executive Officer, commented, "I
am very pleased to report our record revenues and the 78% increase in earnings.
After resolving our past legal issues, we have not only shown steady growth, but
also continued to increase revenues in our medical device businesses. Medical
devices have shown growth at a rate in excess of 20%. We also continue to see
the kind of increase in backlog to provide the basis for our future growth.
"We expect medical device sales to grow as a result of sales of a newly designed
neuroaspirator, continued sales of the SB500 and the market's overall
recognition of the importance of High Intensity Focused Ultrasound technology.
"We have completed our animal studies with the prototype of our product for
kidney and liver cancer treatment. As previously reported, we have a submission
before the FDA for the approval of laparoscopic ablation of tissue.
"We anticipate our Sonora business will continue to expand as a result of new R
& D efforts in probes, MRI and probe testing. Recognition of that unique work
has resulted in the growing network of international distributors.
"We expect to see a pick up in the sales of our laboratory and scientific
products as a result of a recovery in some of our markets and from the
identification of new market niches."
Mr. McManus continued, "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 for medical devices."
Regarding guidance, the Company said that it is expecting to increase revenues
by 10%-15% and earnings by 30% for fiscal year 2005 over fiscal year 2004.
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 Balance Sheets
Audited
June 30, 2004 June 30, 2003
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Assets
Current Assets:
Cash and cash equivalents $ 4,839,866 $ 2,279,869
Accounts receivable, net of allowance
for doubtful accounts of $457,016 and
$644,157, respectively 7,601,693 7,844,399
Inventories 10,944,572 8,979,472
Deferred income taxes 645,381 477,580
Prepaid expenses and other current assets 1,114,546 983,523
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Total current assets 25,146,058 20,564,843
Property, plant and equipment, net 3,892,920 3,574,207
Deferred income taxes 412,201 862,690
Goodwill 4,473,713 4,473,713
Other assets 316,220 319,136
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Total assets $ 34,241,112 $ 29,794,589
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Liabilities and stockholders' equity
Current liabilities:
Revolving credit facilities 1,373,681 704,669
Accounts payable 4,507,476 3,563,208
Accrued expenses and other current liabilities 1,857,097 2,002,154
Income tax payable 107,282 47,453
Current maturities of long-term debt and capital
lease obligations 302,932 279,554
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Total current liabilities 8,148,468 6,597,038
Long-term debt and capital lease obligations 1,264,480 1,235,362
Deferred income 769,033 356,076
Minority interest 315,955 263,450
Stockholders' equity:
Capital stock, $0.01 par - shares authorized 10,000,000; 6,816,253 and
6,733,665 issued and 6,738,453 and 6,655,865 outstanding, respectively 68,163 67,337
Additional paid-in capital 23,116,602 22,712,511
Retained earnings (deficit) 665,461 (1,053,484)
Treasury stock, 77,800 shares (412,424) (412,424)
Accumulated other comprehensive income 305,374 28,723
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Total stockholders' equity 23,743,176 21,342,663
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Total liabilities and stockholders' equity $ 34,241,112 $ 29,794,589
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MISONIX, INC.
Consolidated Statements of Operations
Audited
Three Months Ended Twelve Months Ended
June 30, June 30,
2004 2003 2004 2003
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Net sales $ 10,796,810 $ 10,926,239 $ 39,059,066 $ 34,858,751
Cost of goods sold 6,378,309 6,623,440 22,542,463 20,354,558
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Gross profit 4,418,501 4,302,799 16,516,603 14,504,193
Selling expenses 1,379,694 1,008,852 4,662,006 4,132,077
General and administrative expenses 1,930,290 2,056,388 7,633,930 7,023,088
Research and development expenses 719,874 509,546 2,437,752 2,109,312
Litigation (recovery) settlement expenses -- (143,329) -- (344,435)
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Total operating expenses 4,029,858 3,431,457 14,733,688 12,920,042
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Income from operations 388,643 871,342 1,782,915 1,584,151
Total other income 296,947 218,927 1,057,191 292,701
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Income before minority interest and
income taxes 685,590 1,090,269 2,840,106 1,876,852
Minority interest in net income of
consolidated subsidiaries 16,564 27,693 52,505 23,485
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Income before income taxes 669,026 1,062,576 2,787,601 1,853,367
Income tax expense 121,158 503,634 1,068,656 885,792
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Net income $ 547,868 $ 558,942 $ 1,718,945 $ 967,575
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Net income per share-basic $ 0.08 $ 0.08 $ 0.26 $ 0.15
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Net income per share-diluted $ 0.08 $ 0.08 $ 0.25 $ 0.15
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Weighted average common shares-basic 6,702,864 6,652,198 6,667,615 6,478,138
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Weighted average common shares-diluted 7,166,757 6,699,147 6,849,845 6,623,743
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