Sharps Compliance Corp. Announces First Quarter of Fiscal Year 2004
Results HOUSTON, Nov. 3 /PRNewswire-FirstCall/ -- Sharps Compliance
Corp. (BULLETIN BOARD: SCOM) and subsidiaries ("Sharps" or the
"Company"), leading providers of cost-effective medical waste
disposal solutions for industry and consumers, announced its
operating results for the quarter ended September 30, 2003. For the
three months ended September 30, 2003, the Company generated
revenues of $2.0 million which was virtually flat when compared to
the prior year first quarter revenue. The Company realized an
improved gross margin of 39% for the quarter ended September 30,
2003 versus a gross margin of 33% for the corresponding quarter of
the prior year. The Company reported an operating loss of $0.1
million for the quarter ended September 30, 2003, an improvement
over the operating loss for the quarter ended September 30, 2002 of
$0.2 million. Regarding the results, Dr. Burt Kunik, Chairman,
Chief Executive Officer and President of Sharps Compliance Corp.
stated, "Although, the revenues for the quarter were slightly below
our expectations, we are very pleased with the significant
improvement in our gross margins to the near 40% level as well as
the narrowing of our quarterly operating loss. This improved
performance is a direct result of our refocus on pricing,
operational efficiencies and an aggressive cost reduction program."
Kunik added, "We are extremely focused on closing a number of sales
opportunities in the industrial, commercial and other markets
during the fiscal year 2004. Revenue from these opportunities is a
critical component to our fiscal year 2004 Plan expectations.
Additionally, our Plan reflects the continuing improvement in our
gross margins as well as stability in our quarterly overhead.
Achievement of the above should result not only in revenue growth
but also significantly improved bottom-line performance." In
September 2003, the Company announced the completion of a $500,000
private placement of 625,000 of the Company's common stock. In
closing, Kunik stated, "We are very pleased with the recent
completion of the $500,000 common stock equity raise. These funds
along with our current credit arrangement are expected to be
utilized not only to fund working capital but also the planned
growth of the business." 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. 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 manufactures successfully commercialize their
products. Sharps Compliance Corp.'s common stock trades on the OTC
Bulletin Board under the symbol SCOM. Any forward-looking
statements in this release are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Act of 1995.
Investors are cautioned that actual results may differ
substantially from such forward-looking statements. Forward-looking
statements involve risks and uncertainties including, but not
limited to, continued acceptance of the Company's products and
services in the marketplace, competitive factors, new products and
technological changes, dependence upon third-party vendors,
customer relations, government supervision and regulation, changes
in industry practices, changes in third-party expense reimbursement
procedures, and other risks detailed in the Company's periodic
filings with the Securities and Exchange Commission. (Financial
Highlights Follow) SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended
September 30, 2003 2002 (Unaudited) (Unaudited) REVENUES $1,997,212
$2,048,868 COSTS AND EXPENSES: Cost of revenues 1,217,710 1,381,390
Selling, general and administrative 836,386 841,811 Depreciation
and amortization 38,658 21,151 Operating loss (95,542) (195,484)
INTEREST (EXPENSE) INCOME, net (21,035) 7,282 Net loss ($116,577)
($188,202) BASIC AND DILUTED NET LOSS PER SHARE ($0.01) ($0.02)
SHARES USED IN COMPUTING BASIC AND DILUTED NET LOSS PER SHARE
9,960,811 9,822,023 SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS September 30, June 30, 2003
2003 (Unaudited) Assets Current assets: Cash and cash equivalents
$281,507 $135,884 Restricted cash 43,614 152,851 Accounts
receivable, net 763,142 740,760 Inventory 403,786 299,136 Prepaid
and other assets 100,253 125,808 Total current assets 1,592,302
1,454,439 Property and equipment, net 577,358 597,691 Intangible
assets, net 1,950 --- Other assets 11,695 11,695 Total assets
$2,183,305 $2,063,825 Liabilities and stockholders' (deficit)
equity Current liabilities: Accounts payable $462,575 $567,918
Accrued liabilities 279,073 226,427 Deferred revenue - pump return
186,461 205,125 Current portion of deferred revenue - incineration
102,799 108,547 Current portion of deferred revenue -
transportation 460,644 476,630 Notes payable and current portion of
long-term debt 261,932 407,374 Current maturities of capital lease
obligations 31,835 36,501 Total current liabilities 1,785,319
2,028,522 Long-term deferred revenue - incineration, net of current
portion 33,977 35,794 Long-term deferred revenue - transportation,
net of current portion 159,094 164,142 Long-term debt, net of
current portion 16,096 45,563 Obligations under capital lease, net
of current maturities 110,156 102,314 Other 34,750 27,000 Total
liabilities 2,139,392 2,403,335 Stockholders' (deficit) equity:
Total stockholders' (deficit) equity 43,913 (339,510) Total
liabilities and stockholders' (deficit) equity $2,183,305
$2,063,825 DATASOURCE: Sharps Compliance Corp. CONTACT: David P.
Tusa, Senior Vice President & Chief Financial Officer of Sharps
Compliance Corp., +1-713-432-0300, or Web site:
http://www.sharpsinc.com/
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