Exhibit 99.1
Sharps Compliance Corp. Announces First Quarter of Fiscal
Year 2005 Results;
Company Reports Strong Revenue Growth and Operating Income
HOUSTON--(BUSINESS WIRE)--Nov. 1, 2004--Sharps Compliance Corp.
and subsidiaries (OTCBB:SCOM) ("Sharps" or the "Company"), leading
providers of cost-effective medical waste disposal solutions for
industry and consumers, today announced its operating results for the
three-months ended Sept. 30, 2004.
Financial Results
For the three-months ended Sept. 30, 2004, the Company generated
revenues of $2.4 million versus $2.0 million for the three months
ended Sept. 30, 2003, an increase of 21%. The increase in the first
quarter revenues is a result of increased billings in the healthcare,
retail and agricultural markets.
The Company realized an improved gross margin of 43% for the
three-months ended Sept. 30, 2004 versus a gross margin of 39% for the
corresponding quarter of the prior fiscal year. The improvement in the
gross margin is attributable to increased revenues and operational
efficiencies.
The Company reported operating income of $0.1 million for the
quarter ended Sept. 30, 2004, a significant improvement over the
operating loss for the quarter ended Sept. 30, 2003 of $0.1 million.
The significant improvement in the Company's operating performance
for the first fiscal quarter of 2005 is a result of the 21% increase
in revenues coupled with a 10% increase in gross margin percentage.
The above was accomplished with an approximate 4% increase in overhead
expenses.
Comments
Regarding the results, Dr. Burton J. Kunik, chairman, chief
executive officer and president of Sharps Compliance Corp. stated,
"The first quarter 2005 results represented our second straight
quarter of strong revenue growth and operating results. We achieved
the first quarter 2005 revenue growth through strong sales not only in
our core home healthcare market but also through sales in the Retail
and Agricultural markets. The success in these markets is a direct
result of our efforts and initiatives to continue to expand the
Company's reach into additional markets.
Kunik added, "The strong operating results have allowed us to
significantly improve our working capital and further strengthen our
balance sheet. This financial strength, coupled with our line of
credit, should allow us to continue to grow the business with internal
resources."
"We continue to see positive impacts of the very active regulatory
environment not only at the federal but also the state level. We
believe that awareness of the proper disposal of medical sharps is at
an all-time high. Our business model focuses on providing
cost-effective solutions designed for the disposal issues addressed in
the current regulatory environment."
Headquartered in Houston, Sharps is a leading developer of
superior solutions for improving safety, efficiency and cost related
to the proper disposal of medical waste by industry and consumers.
Sharps primary markets include healthcare, agriculture, hospitality,
professional, industrial, commercial and retail. The Company's
products and services represent cutting edge solutions for a variety
of industries dealing with the complexity of managing regulatory
compliance, environmental sensitivity, employee and customer safety,
corporate risk and operating costs related to medical waste disposal.
Sharps is a leading proponent and participant in the development of
public awareness and solutions for the safe disposal of needles,
syringes and other sharps in the community setting.
Sharps Compliance Corp. is the exclusive supplier of Sharps
Disposal by Mail systems to the Consumer Health Care division of
Becton, Dickinson and Company. The Company also maintains an exclusive
sales and marketing arrangement with Waste Management Inc. whereby
Sharps provides safe disposal systems and related services for Waste
Management's residential and commercial customers.
The Company also has a mutually exclusive joint marketing
agreement with McKesson Health Solutions ("McKesson"), a subsidiary of
McKesson Corporation, to co-market and sell the Sharps Disposal by
Mail System(TM) products and services to pharmaceutical manufacturers
and biotechnology companies. McKesson is a leader in the design,
implementation and management of marketing programs, specialty
pharmaceutical services and patient support centers that help
pharmaceutical and biotechnology manufactures successfully
commercialize their products.
Sharps Compliance Corp.'s common stock trades on the OTC Bulletin
Board under the symbol SCOM.
The information made available in this press release contains
certain forward-looking statements which reflect Sharps Compliance
Corp.'s current view of future events and financial performance.
Wherever used, the words "estimate," "expect," "plan," "anticipate,"
"believe," "may" and similar expressions identify forward-looking
statements. Any such forward-looking statements are subject to risks
and uncertainties and the company's future results of operations could
differ materially from historical results or current expectations.
Some of these risks include, without limitation, the company's ability
to educate its customers, development of public awareness programs to
educate the identified consumer, managing regulatory compliance and/or
other factors that may be described in the company's annual report on
Form 10-K and/or other filings with the Securities and Exchange
Commission. Future economic and industry trends that could potentially
impact revenues and profitability are difficult to predict. The
company assumes no obligation to publicly update or revise its
forward-looking statements even if experience or future changes make
it clear that any projected results express or implied therein will
not be realized.
(Financial Highlights Follow)
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
September 30,
------------------------
2004 2003
------------ -----------
(Unaudited) (Unaudited)
------------ -----------
REVENUES $2,419,386 $1,997,212
COSTS AND EXPENSES:
Cost of revenues 1,387,544 1,217,710
Selling, general and administrative 867,905 836,386
Depreciation and amortization 42,901 38,658
------------ -----------
Operating income (loss) 121,036 (95,542)
INTEREST (EXPENSE) INCOME, net (7,924) (21,035)
----------- -----------
Net Income (loss) before income taxes 113,112 (116,577)
Income taxes (4,200) -
------------ -----------
Net income (loss) $108,912 ($116,577)
============ ===========
BASIC AND DILUTED NET INCOME (LOSS) PER
SHARE $0.01 ($0.01)
============ ===========
SHARES USED IN NET INCOME (LOSS) PER SHARE
BASIC 10,538,144 9,822,023
============ ===========
DILUTED 10,877,750 9,822,023
============ ===========
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, June 30,
2004 2004
----------- -----------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $147,552 $242,803
Restricted cash 12,649 14,678
Accounts receivable, net 923,123 981,408
Inventory 456,691 393,238
Prepaid and other assets 115,478 138,798
----------- -----------
Total current assets 1,665,493 1,770,925
Property and equipment, net 506,980 539,800
Intangible assets, net 9,898 10,051
----------- -----------
Total assets $2,172,371 $2,320,776
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $495,605 $592,943
Accrued liabilities 289,490 338,153
Deferred revenue - pump return 80,008 110,702
Current portion of deferred revenue -
incineration 132,806 108,299
Current portion of deferred revenue -
transportation 625,838 553,938
Notes payable and current portion of long-
term debt - 185,932
Current maturities of capital lease
obligations 42,139 37,513
----------- -----------
Total current liabilities 1,655,886 1,927,480
Long-term deferred revenue - incineration, net
of current portion 32,531 30,408
Long-term deferred revenue - transportation,
net of current portion 187,381 179,506
Long-term debt, net of current portion - 10,826
Obligations under capital leases, net of
current maturities 79,301 84,446
Other liabilities 55,750 45,500
----------- -----------
Total liabilities 2,020,849 2,278,166
Stockholders' equity:
Total stockholders' equity 151,522 42,610
----------- -----------
Total liabilities and
stockholders' equity $2,172,371 $2,320,776
=========== ===========
CONTACT: Sharps Compliance Corp., Houston
David P. Tusa, 713-660-3514
dtusa@sharpsinc.com
www.sharpsinc.com