Exhibit 99.1
Schick Technologies Reports Fourth Quarter and Fiscal
Year-End 2004 Results
LONG ISLAND CITY, N.Y., June 15, 2004 -- Schick Technologies, Inc. (OTC BB:
SCHK) today reported its financial results for the fiscal fourth quarter and
year ended March 31, 2004.
Financial Highlights include:
o Net income increased 35% for the quarter and 53% for the year
o Revenue increased 37% for the quarter and 32% for the year
o Cash increased to $20.7 million at March 31, 2004
Revenues for the quarter were $10.1 million, an increase of $2.8 million, or
37%, compared to $7.3 million for the fourth quarter of 2003. Net income for the
quarter was $9.0 million, an increase of 35% as compared to net income of $6.7
million in the same period last year. Income from operations (which does not
include interest income, other income, interest expense and income tax benefits)
for the fourth quarter was $3.0 million, an increase of 133%, compared to $1.3
million for the same period in fiscal 2003.
The Company's results for the fourth quarter and the full year were positively
impacted by a non-cash item, a net income tax benefit of $5.9 million in the
fourth quarter of fiscal 2004, as compared to a net income tax benefit of $5.4
million in the fourth quarter of fiscal 2003. The positive net income tax
benefit to the Company during the periods ended March 31, 2004 and March 31,
2003 resulted from a reduction in its deferred tax asset valuation allowance in
anticipation of full utilization of its net operating loss carryforwards. Basic
Earnings Per Share for the fourth quarter was $0.76 compared to $0.66 in the
same period last year, and diluted EPS was $0.53 compared to $0.42 in the same
period last year. Upon Greystone's exercise of its outstanding warrants in March
2004, the Company issued 4,527,716 unregistered shares to Greystone; these
shares are reflected in the diluted share calculation.
Revenues for the twelve months ended March 31, 2004 were $39.4 million, an
increase of $9.6 million, or 32%, compared to $29.8 million for the previous
year. Net income for the twelve months was $18.1 million, an increase of 53% as
compared with the Company's net income of $11.8 million for the previous year.
Income from operations (which does not include interest income, other income,
interest expense and income tax benefits) for fiscal 2004 was $12.1 million, an
increase of 82%, compared to $6.6 million in fiscal 2003.
The Company's fiscal 2004 results were positively impacted by the aforementioned
net income tax benefit. Basic EPS for the year was $1.69 compared to $1.17 last
year and diluted EPS was $1.07 compared to $0.78 last year.
At March 31, 2004, the Company had $20.7 million in cash, cash equivalents and
short-term investments and $27.4 million in working capital, as compared to $7.8
million in cash, cash equivalents and short-term investments and $9.2 million in
working capital at March 31, 2003.
Jeffrey T. Slovin, President and Chief Executive Officer, commented, "Our 2004
financial results were solid across the board. Domestic dental product sales for
the year were up 30% compared to last year, while international dental product
sales were up 64% during the year. This reflected our continued focus on our
core domestic business and improving our international distribution network. We
continued to generate strong margins, with gross margins reaching 71% and
operating income reaching 31% for the year. We believe the company's financial
performance in the quarter and for the entire fiscal year demonstrates the
strength of our strategy to deliver sustainable technologies and innovative
products that improve practitioner productivity and benefit the patient."
Schick Technologies, Inc. Conference Call Information:
Schick Technologies, Inc. will hold its quarterly conference call on Monday,
June 14, 2004 at 5:00 p.m. EDT. To access the call, please dial 800-299-7635
(domestic) or 617-786-2901 (international), and enter passcode # 33262598. This
conference call will be broadcast live on the Internet at www.fulldisclosure.com
or www.streetevents.com. An audio digital replay of the call will be available
from June 15, 2004, at approximately 7:00 p.m. EDT until Midnight EDT on June
22, 2004 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and
using confirmation code # 33391355. A web archive will be available for 30 days
at www.fulldisclosure.com and www.streetevents.com. This earnings release, and
any other financial and statistical information disclosed by the Company during
the conference call will be available in the "Investors" section of the
Company's web site at www.schicktech.com.
About Schick Technologies, Inc.
Schick Technologies, Inc., an ISO 9001 certified company, designs, develops, and
manufactures innovative digital radiographic imaging systems and devices for the
dental and medical markets. The Company's products, which are based on
proprietary digital imaging technologies, create instant high- resolution
radiographs and offer significant advantages over conventional x- ray devices.
The Company's beliefs as to its anticipation of the full utilization of its net
operating loss carryforwards, and other information in this announcement which
is not historical, constitute forward- looking statements as defined in the
Private Securities Litigation Reform Act of 1995. The matters discussed in this
news release are subject to various factors which could cause actual events and
results to differ materially from such statements. Such factors include
uncertainties as to the future sales volume of Schick Technologies' products,
the pending SEC civil action and U.S. Attorney investigation, the possibility of
changing economic, market and competitive conditions, dependence on products,
technological developments, competition, market uncertainties, dependence on
distributors, ability to manage growth, fluctuation in results, seasonality and
other risks and uncertainties including those detailed in the Company's filings
with the Securities and Exchange Commission.
Schick Technologies, Inc. and Subsidiary
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
Three months ended Year ended
March 31,
---------
2004 2003 2004 2003
---- ---- ---- ----
Revenue, net $ 10,092 $ 7,347 $ 39,393 $ 29,817
------------ ------------ ------------ ------------
Cost of sales 2,994 2,209 11,310 9,369
Excess and obsolete inventory 185 -- 185 259
------------ ------------ ------------ ------------
Total cost of sales 3,179 2,209 11,495 9,628
------------ ------------ ------------ ------------
Gross profit 6,913 5,138 27,898 20,189
------------ ------------ ------------ ------------
Operating expenses:
Selling and marketing 1,613 1,654 6,118 5,911
General and administrative 1,475 1,492 6,291 5,041
Research and development 793 689 3,301 2,598
Bad debt expense -- -- 105 --
------------ ------------ ------------ ------------
Total operating expenses 3,881 3,835 15,815 13,550
------------ ------------ ------------ ------------
Income from operations 3,032 1,303 12,083 6,639
------------ ------------ ------------ ------------
Other income (expense)
Other income (3) (4) 138 51
Gain on sale of investment -- -- -- 45
Interest income 65 13 153 52
Interest expense (2) (81) (182) (322)
------------ ------------ ------------ ------------
Total interest and other income (expense) 60 (72) 109 (174)
------------ ------------ ------------ ------------
Income before income taxes 3,092 1,231 12,192 6,465
Income tax benefit 5,917 5,445 5,917 5,360
------------ ------------ ------------ ------------
Net income $ 9,009 $ 6,676 $ 18,109 $ 11,825
============ ============ ============ ============
Basic earnings per share $ 0.76 $ 0.66 $ 1.69 $ 1.17
============ ============ ============ ============
Diluted earnings per share $ 0.53 $ 0.42 $ 1.07 $ 0.78
============ ============ ============ ============
Weighted average common shares (basic) 11,836,330 10,170,782 10,710,742 10,148,991
============ ============ ============ ============
Weighted average common shares (diluted) 17,129,496 15,868,163 16,864,488 15,143,999
============ ============ ============ ============
Schick Technologies, Inc. and Subsidiary
Consolidated Balance Sheets
(In thousands, except share amounts)
March 31,
---------
2004 2003
---- ----
Assets
Current assets
Cash and cash equivalents $ 20,734 $ 7,100
Short-term investments -- 712
Accounts receivable, net of allowance for doubtful accounts of $138
and $42, respectively 3,982 3,032
Inventories 3,057 3,039
Income taxes receivable 5 10
Prepayments and other current assets 856 421
Deferred income taxes 6,481 2,590
-------- --------
Total current assets 35,115 16,904
-------- --------
Equipment, net 1,405 2,151
Goodwill, net 266 266
Deferred income taxes 5,679 2,940
Other assets 278 349
-------- --------
Total assets $ 42,743 $ 22,610
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Liabilities and Stockholders' Equity
Current liabilities
Current maturity of long-term debt $ -- $ 1,503
Accounts payable and accrued expenses 1,456 1,468
Accrued salaries and commissions 1,390 1,080
Income taxes payable 142 4
Deposits from customers 13 31
Warranty obligations 210 56
Deferred revenue 4,504 3,605
-------- --------
Total current liabilities 7,715 7,747
-------- --------
Commitments and contingencies -- --
Stockholders' equity
Preferred stock ($0.01 par value; 2,500,000
shares authorized; none issued and outstanding) -- --
Common stock ($0.01 par value; 50,000,000 shares authorized:
15,026,470 and 10,206,425 shares issued and outstanding,
at March 31, 2004 and 2003, respectively) 150 102
Additional paid-in capital 44,626 42,618
(Accumulated deficit) (9,748) (27,857)
-------- --------
Total stockholders' equity 35,028 14,863
-------- --------
Total liabilities and stockholders' equity $ 42,743 $ 22,610
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