Exhibit 99.1
Sharps Compliance Corp. Announces Results for the Third Quarter Ended March 31,
2006; 14% Increase In Year-To-Date Revenues Coupled With Solid Earnings Growth
HOUSTON--(BUSINESS WIRE)--April 25, 2006--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 2006.
Financial Results
For the three-months ended March 31, 2006, the Company reported
revenues of $2.5 million versus revenues for the corresponding quarter
of the prior fiscal year of $2.2 million, an increase of 13%.
For the nine-months ended March 31, 2006, the Company generated
revenues of $7.9 million versus revenues for the prior year
corresponding quarter of $6.9 million, a 14% increase.
The Company generated a gross margin of 42% for the three and nine
months ended March 31, 2006. The Company's S, G & A expenses increased
by 10% for the nine months ended March 31, 2006 when compared to the
corresponding period of the prior year. The increase in the S, G & A
is attributable to additional sales-related expenses and professional
fees.
The Company reported essentially break-even results for the
quarter ended March 31, 2006 versus a $0.1 million, or $0.01 per
share, net loss for the quarter ended March 31, 2005.
For the nine months ended March 31, 2006, the company reported net
income of $0.3 million, or $0.03 per share, versus essentially
break-even results for the prior year corresponding nine-month period.
The increase in net income is a result of the 14% increase in the
revenues for the corresponding period, partially offset by an increase
in S, G & A, both of which are discussed above.
Corporate and Business Developments
New Bank Line of Credit and Relationship
In March 2006, the Company announced the execution of a $1.5
million Credit Agreement and new banking relationship with JPMorgan
Chase Bank, N.A. The Credit Agreement provides for a revolving line of
credit (the "Line of Credit") in the principal amount of $1.5 million.
The proceeds of the Line of Credit may be used for working capital,
letters of credit, acquisitions and general corporate purposes.
The Company considers its new banking relationship as a
significant milestone in its history as well as recognition by the
financial community of the significant growth opportunities available
to Sharps. The Line of Credit is structured to provide the Company
with additional financial support for its planned organic growth as
well as capital to support potential future acquisitions.
Three-year Exclusive Agreement with InterFit Health
In April 2006, the Company announced, the execution of a
three-year exclusive agreement with InterFit Health to provide the
Sharps Disposal By Mail System(R) to its health screening and
RediClinic operations. Since 1989, InterFit Health has provided
individuals with easy access to convenient, accurate and affordable
health screening and other personal health management services. Today,
InterFit is the largest provider of retail health screening services
in the United States while its RediClinics are a leader in convenient
care.
Comments
Commenting on the third quarter, Dr. Burton J. Kunik, Chairman,
Chief Executive Officer and President of Sharps Compliance Corp.
stated, "Our solid year-to-date financial performance is a direct
result of our success in expanding our sales efforts in additional and
new markets. Our internal plans contemplate additional sales strength
in all markets served as well as new markets including pharmaceutical
manufacturing. We enter our fourth fiscal year quarter with backlog
(orders received but not shipped as of March 31, 2006) of over
$220,000."
Regarding corporate and business developments, Kunik added, "We
are very pleased to have established our new banking relationship with
a leading financial institution such as JPMorgan Chase. JPMorgan Chase
shares our vision in the future of the industry and the significant
opportunities available to the Company."
"InterFit Health is a first-class operation providing much needed
health screening, treatment and preventive care services across the
country. We welcome the opportunity to further secure our long-term
relationship and continue to provide our value-added disposal
solutions to InterFit Health."
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.
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-KSB, quarterly reports on Form 10-QSB 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,
-----------------------------------------------
2006 2005 2006 2005
-----------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
REVENUES $2,531,210 $2,232,644 $7,854,699 $6,881,075
COSTS AND EXPENSES:
Cost of revenues 1,466,906 1,398,141 4,524,517 4,116,632
Selling, general and
administrative 1,024,505 894,205 2,879,355 2,624,776
Depreciation and
amortization 42,629 37,798 110,732 121,054
----------- ----------- ----------- -----------
Operating income
(loss) (2,830) (97,500) 340,095 18,613
Interest Income
(Expense), net 317 (3,412) (2,288) (15,055)
----------- ----------- ----------- -----------
Net Income (loss)
before Income Taxes ($2,513) ($100,912) $337,807 $3,558
----------- ----------- ----------- -----------
Income Taxes - 4,693 (8,815) -
----------- ----------- ----------- -----------
Net Income (Loss) ($2,513) ($96,219) $328,992 $3,558
=========== =========== =========== ===========
NET LOSS PER SHARE
Basic - ($0.01) $0.03 -
=========== =========== =========== ===========
Diluted - ($0.01) $0.03 -
=========== =========== =========== ===========
SHARES USED IN
COMPUTING NET INCOME
(LOSS) PER SHARE
Basic 10,547,827 10,538,144 10,547,481 10,538,144
Diluted 10,547,827 10,538,144 10,814,019 10,980,340
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, June 30,
2006 2005
--------------- ---------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $341,703 $258,427
Restricted cash 10,010 10,010
Accounts receivable, net 867,884 964,148
Inventory 367,315 368,495
Prepaid and other assets 79,694 79,320
--------------- ---------------
Total current assets 1,666,606 1,680,400
Property and equipment, net 481,004 438,064
Intangible assets, net 63,036 11,779
--------------- ---------------
Total assets $2,210,646 $2,130,243
=============== ===============
Liabilities and stockholders' equity
(deficit)
Current liabilities:
Accounts payable $525,322 $567,398
Accrued liabilities 139,196 283,953
Current portion of deferred revenue 986,105 996,597
Current maturities of capital lease
obligations 50,677 48,558
--------------- ---------------
Total current liabilities 1,701,300 1,896,506
Long-term deferred revenue 251,707 272,781
Obligations under capital leases, net
of current maturities 4,412 42,112
Other liabilities 66,750 62,500
--------------- ---------------
Total liabilities 2,024,169 2,273,899
Total stockholders' equity (deficit) 186,477 (143,656)
--------------- ---------------
Total liabilities and
stockholders' equity
(deficit) $2,210,646 $2,130,243
=============== ===============
CONTACT: Sharps Compliance Corp., Houston
David P. Tusa, 713-660-3514
dtusa@sharpsinc.com
www.sharpsinc.com