Exhibit 99.1
Sharps Compliance Corp. Announces Results for the Quarter Ended December 31,
2004
HOUSTON--(BUSINESS WIRE)--Jan. 31, 2005--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 second quarter of fiscal year
2005.
For the three-months ended December 31, 2004, the Company reported revenues
of $2.2 million versus revenues for the corresponding quarter of the prior
fiscal year of $2.1 million, an increase of 7.5%. For the six-months ended
December 31, 2004, the Company generated revenues of $4.6 million versus
revenues for the corresponding quarter of the prior year of $4.1 million, a 14%
increase.
The Company generated gross margins of 40% and 42% for the three and six
months ended December 31, 2004, respectively. The Company's S, G & A expenses
increased by 6% for the six months ended December 31, 2004 when compared to the
corresponding period of the prior year.
The Company reported essentially break-even operating results for the
quarter ended December 31, 2004 and net income of $0.1 million, or $0.01 per
share, for the six months ended December 31, 2004. These amounts compare to
break-even operating results for the quarter ended December 31, 2003 and a net
loss of $0.1 million, or $0.01 per share, for the six months ended December 31,
2003.
Regarding the second quarter results, Dr. Burton J. Kunik, Chairman, Chief
Executive Officer and President of Sharps Compliance Corp., stated, "Although
the revenue growth rate of 14% for the six months ended December 31, 2004 is
impressive, our internal plans envisioned higher growth levels consistent with
the opportunities we see in the market place. We have focused our sales efforts
on the healthcare, agriculture, hospitality, professional, commercial and
residential markets and believe such efforts will support the continued growth
plans of the Company."
In December 2004, the U. S. Environmental Protection Agency ("EPA") issued
its new guidelines for the proper disposal of medical sharps (see
www.epa.gov/epaoswer/other/medical/sharps.htm). Among the recommended methods of
disposal are mail-back programs such as the Company's.
Kunik added, "The EPA's guidance is a major event in the movement of the
country towards proper disposal of medical sharps generated by self injectors.
Our products and services are well suited to meet the requirements of the new
guidelines."
The Company recently launched a new Web site. We invite you to visit the
Company at www.sharpsinc.com.
Headquartered in Houston, Texas, 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 manufacturers 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 Six Months Ended
December 31, December 31,
------------------------- -------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------ ------------
REVENUES $2,229,045 $2,074,220 $4,648,431 $4,071,432
COSTS AND
EXPENSES:
Cost of revenues 1,330,947 1,251,600 2,718,491 2,469,310
Selling, general
and
administrative 861,021 798,339 1,728,926 1,634,725
Depreciation and
amortization 40,355 39,590 83,256 78,248
------------ ------------ ------------ ------------
Operating income
(loss) (3,278) (15,309) 117,758 (110,851)
INTEREST EXPENSE (5,364) (7,052) (13,288) (28,087)
------------ ------------ ------------ ------------
Net Income
(loss) before
Income Taxes ($8,642) ($22,361) $104,470 ($138,938))
------------ ------------ ------------ ------------
Income Taxes (493) - (4,693) -
------------ ------------ ------------ ------------
Net Income (Loss) ($9,135) ($22,361) $99,777 ($138,938)
============ ============ ============ ============
NET LOSS PER SHARE
Basic ($0.00) ($0.00) $0.01 ($0.01)
============ ============ ============ ============
Diluted ($0.00) ($0.00) $0.01 ($0.01)
============ ============ ============ ============
SHARES USED IN
COMPUTING NET
INCOME (LOSS) PER
SHARE
Basic 10,538,144 10,538,256 10,538,144 10,247,955
Diluted 10,538,144 10,538,256 10,869,494 10,247,955
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, June 30,
2004 2004
------------- ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $200,795 $242,803
Restricted cash 66,993 14,678
Accounts receivable, net 796,009 981,408
Inventory 415,735 393,238
Prepaid and other assets 106,032 138,798
------------- ------------
Total current assets 1,585,564 1,770,925
Property and equipment, net 467,417 539,800
Intangible assets, net 9,745 10,051
------------- ------------
Total assets $2,062,726 $2,320,776
============= ============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $397,226 $592,943
Accrued liabilities 296,557 338,153
Deferred revenue - pump return 70,807 110,702
Current portion of deferred revenue -
incineration 121,816 108,299
Current portion of deferred revenue -
transportation 646,852 553,938
Notes payable and current portion of
long-term debt - 185,932
Current maturities of capital lease
obligations 44,181 37,513
------------- ------------
Total current liabilities 1,577,439 1,927,480
Long-term deferred revenue - incineration,
net of current portion 27,442 30,408
Long-term deferred revenue -
transportation, net of current portion 189,998 179,506
Long-term debt, net of current portion - 10,826
Obligations under capital leases, net of
current maturities 67,460 84,446
Other 58,000 45,500
------------- ------------
Total liabilities 1,920,339 2,278,166
Stockholders' equity:
Total stockholders' equity 142,387 42,610
------------- ------------
Total liabilities and
stockholders' equity $2,062,726 $2,320,776
============= ============
CONTACT: Sharps Compliance Corp., Houston
David P. Tusa, 713-660-3514
dtusa@sharpsinc.com
www.sharpsinc.com