Exhibit 99.1
Sharps Compliance Corp. Announces Results for the Third Quarter Ended March 31,
2005
HOUSTON--(BUSINESS WIRE)--May 2, 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
third quarter of fiscal year 2005.
For the three-months ended March 31, 2005, 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%. For the
nine-months ended March 31, 2005, the Company generated revenues of
$6.9 million versus revenues for the prior year corresponding quarter
of $6.1 million, a 12% increase.
The Company generated gross margins of 37% and 40% for the three
and nine months ended March 31, 2005, respectively. The Company's S, G
& A expenses increased by 5% for the nine months ended March 31, 2005
when compared to the corresponding period of the prior year.
The Company reported a net loss of $0.1 million, or $0.01 per
share, for each of the quarters ended March 31, 2005 and 2004. For the
nine months ended March 31, 2005, the company generated break-even
results versus a net loss of $0.2 million, or $0.02 per share, for the
prior year corresponding nine-month period.
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.
Commenting on the third quarter, Dr. Burton J. Kunik, Chairman,
Chief Executive Officer and President of Sharps Compliance Corp.
stated, "The opportunities for growth have been significantly enhanced
as a result of the recent change in the EPA guidelines regarding
proper disposal of medical sharps and the increased public awareness
of the issue. In addition to our traditional healthcare, hospitality
and professional markets, we are seeing additional opportunities in
the pharmaceutical, commercial and residential markets. We are focused
on closing sales in these additional markets."
The Company recently launched a new website. You are invited 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 costs 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 Nine Months Ended
March 31, March 31,
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
REVENUES $2,232,645 $2,079,946 $6,881,074 $6,151,378
COSTS AND EXPENSES:
Cost of revenues 1,398,140 1,234,515 4,116,631 3,703,825
Selling, general and
administrative 892,496 864,047 2,621,418 2,498,772
Depreciation and
amortization 37,798 40,253 121,054 118,501
----------- ----------- ----------- -----------
Operating income (loss) (95,789) (58,869) 21,971 (169,720)
INTEREST EXPENSE (5,123) (10,296) (18,411) (38,383)
----------- ----------- ----------- -----------
Net Income (loss)
before Income Taxes ($100,912) ($69,165) ($9,465) ($208,103)
----------- ----------- ----------- -----------
Income Taxes 4,693 - - -
----------- ----------- ----------- -----------
Net Income (Loss) ($96,219) ($69,165) 3,560 ($208,103)
=========== =========== =========== ===========
NET LOSS PER SHARE
Basic ($0.01) ($0.01) - ($0.02)
=========== =========== =========== ===========
Diluted ($0.01) ($0.01) - ($0.02)
=========== =========== =========== ===========
SHARES USED IN
COMPUTING NET INCOME
(LOSS) PER SHARE
Basic 10,538,144 10,538,256 10,538,144 10,345,074
Diluted 10,538,144 10,538,256 10,980,340 10,345,074
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, June 30,
2005 2004
----------- -----------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $255,302 $242,803
Restricted cash 10,010 14,678
Accounts receivable, net 776,915 981,408
Inventory 426,388 393,238
Prepaid and other assets 87,669 138,798
----------- -----------
Total current assets 1,556,284 1,770,925
Property and equipment, net 447,972 539,800
Intangible assets, net 9,592 10,051
----------- -----------
Total assets $2,013,848 $2,320,776
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $480,200 $592,943
Accrued liabilities 245,456 338,153
Deferred revenue - pump return 59,980 110,702
Current portion of deferred revenue -
incineration 96,247 108,299
Current portion of deferred revenue -
transportation 696,870 553,938
Notes payable and current portion of long-
term debt - 185,932
Current maturities of capital lease
obligations 46,324 37,513
----------- -----------
Total current liabilities 1,625,077 1,927,480
Long-term deferred revenue - incineration, net
of current portion 22,180 30,408
Long-term deferred revenue - transportation,
net of current portion 203,630 179,506
Long-term debt, net of current portion - 10,826
Obligations under capital leases, net of
current maturities 55,043 84,446
Other 61,750 45,500
----------- -----------
Total liabilities 1,967,680 2,278,166
Stockholders' equity:
Total stockholders' equity 46,168 42,610
----------- -----------
Total liabilities and
stockholders' equity $2,013,848 $2,320,776
=========== ===========
CONTACT: Sharps Compliance Corp., Houston
David P. Tusa, 713-660-3514
dtusa@sharpsinc.com
www.sharpsinc.com