Exhibit 99.1
Schick Technologies Reports Fiscal 2005 First Quarter Results
o Net Revenues Increase 25%
o Income from Operations Increases 48%
LONG ISLAND CITY, N.Y., August 12 -- Schick Technologies, Inc. (OTC BB: SCHK)
today reported its financial results for the quarter ended June 30, 2004.
Net revenues for the quarter were $10.9 million, an increase of $2.2 million, or
25%, compared to $8.7 million in the same period last year.
Income from operations for the first quarter was $3.1 million, an increase of
48%, compared to $2.1 million for the same period last year.
"We are pleased with our solid first quarter results. Our margins and balance
sheet are strong, and we continued to see significant growth in our CDR(R)
dental product lines," said Jeffrey Slovin, President and Chief Executive
Officer. "Domestic dental product sales for the quarter were up 17%, with sales
to Patterson increasing 23%. International dental product sales grew 62%. We
believe that these healthy results reflect the growing and vibrant market for
our products, our ongoing focus on our core domestic business and the successful
efforts of our international distribution network."
Net income for the first quarter of fiscal 2005 was $1.8 million, or $.10 per
diluted share, a decrease of $0.2 million, or 9%, compared to net income of $2.0
million, or $.12 per diluted share, for the same period last year.
For the first quarter of fiscal 2005, the Company's earnings were reduced by
$1.4 million, consisting of a non-cash charge for deferred income taxes of $1.2
million, as well as a cash charge of $0.2 million for current taxes. Income
taxes for the same period in the prior year were $0.1 million, consisting of
current taxes. In the first quarter of the prior year, deferred tax charges were
offset by a partial reversal of deferred-tax-asset reserves, and the Company's
tax expense reported for the first quarter of fiscal 2004 reflected this offset.
Based on Management's conclusion, as of the end of fiscal 2004, that it was more
likely than not that the Company would fully utilize its net operating loss and
other tax carryforwards in the future, all such reserves were fully reversed and
no longer offset deferred tax charges.
The Company's reported net income of $1.8 million for the quarter ended June 30,
2004 represents an increase of $0.6 million, or 50%, when compared with proforma
net income of $1.2 million in the same period last year. On a per-share basis,
the Company's reported net income of $0.10 per diluted share for the quarter
ended June 30, 2004 represents an increase of $0.03, or 43%, when compared with
proforma net income of $0.07 per diluted
share in the same period last year. The calculation of proforma net income and
proforma diluted earnings per share for the quarter ended June 30, 2003 is set
forth in the table below.
The following is a pro forma presentation for the three months ended June 30,
2003, as if the deferred tax assets were recorded at their gross valuation at
June 30, 2003:
Three months
Ended
June 30, 2003
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Income before income taxes - as reported $ 2,067
Less: Provision for income taxes - as
reported 88
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Net income - as reported 1,979
Less: Proforma adjustment to record
effective income tax rate of 42% 780
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Proforma net income $ 1,199
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Earnings per share:
As previously reported
Basic $ 0.19
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Diluted $ 0.12
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Proforma
Basic $ 0.12
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Diluted $ 0.07
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Weighted average common shares (basic) 10,229,697
===========
Weighted average common shares (diluted) 16,536,892
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At June 30, 2004, the Company had $24.5 million in cash and cash equivalents and
$30.9 million in working capital, as compared to $9.6 million in cash and cash
equivalents and $11.6 million in working capital at June 30, 2003.
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.
This news release contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995, including beliefs as to the growing
and vibrant market for the Company's products, the likelihood that the Company
will fully utilize its NOL and other tax carryforwards in the future, and any
other statements which are not historical. Actual future events, results and
trends could differ materially from those set forth in such statements due to
various factors. Such factors include the SEC action and U.S. Attorney
investigation relating to the Company and certain individuals; the Company's
dependence on its products, its exclusive North American distributor, its
foreign distributors, its key personnel and key suppliers; the possibility of
changing economic and competitive conditions; technological developments;
competition; market uncertainties; fluctuation in results and seasonality;
litigation; control of the Company by certain stockholders; and other risks and
uncertainties, including those detailed in the Company's filings with the
Securities and Exchange Commission.
CONTACT: Cameron Associates
Kevin McGrath, 212-245-4577
Kevin@cameronassoc.com
Schick Technologies, Inc. and Subsidiary
Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share amounts)
Three months ended
June 30,
2004 2003
----------- ------------
Revenue, net ............................................ $ 10,881 $ 8,676
Cost of sales ........................................... 3,209 2,629
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Gross profit ................................... 7,672 6,047
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Operating expenses:
Selling and marketing .............................. 1,456 1,435
General and administrative ......................... 1,985 1,580
Research and development ........................... 1,112 842
Bad debt expense ................................... -- 75
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Total operating costs .......................... 4,553 3,932
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Income from operations ......................... 3,119 2,115
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Other income (expense)
Other income ....................................... -- 101
Interest income .................................... 93 20
Interest expense ................................... -- (169)
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Total other income (expense) ................... 93 (48)
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Income before income taxes ..................... 3,212 2,067
Provision for income taxes ..................... 1,413 88
----------- ------------
Net income ..................................... $ 1,799 $ 1,979
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Basic earnings per share ....................... $ 0.12 $ 0.19
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Diluted earnings per share ..................... $ 0.10 $ 0.12
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Weighted average common shares (basic) ......... 15,027,703 10,229,697
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Weighted average common shares (diluted) ....... 17,209,736 16,536,892
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Schick Technologies, Inc. and Subsidiary
Consolidated Balance Sheets
(In thousands, except share amounts)
June 30, March 31,
----------- ---------
2004
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(unaudited)
Assets
Current assets
Cash and cash equivalents .................................................... $ 24,518 $ 20,734
Accounts receivable, net of allowance for doubtful accounts of $138 .......... 2,722 3,982
Inventories .................................................................. 3,165 3,057
Prepayments and other current assets ......................................... 552 861
Deferred income taxes ........................................................ 6,594 6,481
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Total current assets ................................................ 37,551 35,115
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Equipment, net .................................................................... 1,339 1,405
Goodwill, net ..................................................................... 266 266
Deferred income taxes ............................................................. 4,393 5,679
Other assets ...................................................................... 279 278
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Total assets ........................................................ $ 43,828 $ 42,743
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Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses ........................................ $ 1,627 $ 1,456
Accrued salaries and commissions ............................................. 701 1,390
Income taxes payable ......................................................... 166 142
Deposits from customers ...................................................... 24 13
Warranty obligations ......................................................... 270 210
Deferred revenue ............................................................. 3,843 4,504
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Total current liabilities ........................................... 6,631 7,715
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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:
15,046,394 and 15,026,470 shares issued and outstanding,
respectively) ............................................................ 150 150
Additional paid-in capital ................................................... 44,996 44,626
Accumulated deficit .......................................................... (7,949) (9,748)
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Total stockholders' equity .......................................... 37,197 35,028
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Total liabilities and stockholders' equity .......................... $ 43,828 $ 42,743
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