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8-K - FORM 8-K - MISONIX INC | c92771e8vk.htm |
Exhibit 99.1
Misonix Contact:
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Investor Relations Contact: | |
Richard Zaremba
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Kevin McGrath / Cameron Associates, Inc. | |
631-694-9555
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212-245-4577 | |
invest@misonix.com
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Kevin@cameronassoc.com |
MISONIX REPORTS FIRST QUARTER FISCAL 2010 FINANCIAL RESULTS
FARMINGDALE, NY November 16, 2009 Misonix, Inc. (NASDAQ: MSON), a developer of minimally
invasive ultrasonic medical device technology, which in Europe is used for the ablation of tumors
and worldwide for other acute health conditions, today reported the financial results for the first
fiscal quarter 2010 ending September 30, 2009. Michael A. McManus, Jr., President and Chief
Executive Officer, and Richard Zaremba, Senior VP and Chief Financial Officer, will host a
conference call Monday, November 16, 2009 at 4:30pm to discuss the Companys first fiscal quarter
financial results.
The Company also reported the following financial and operational achievements:
| On August 5, 2009, we closed the transaction for the sale of our Labcaire Systems Ltd.
subsidiary (Labcaire) to PuriCore International, Limited for up to $5.6 million. |
||
| On October 2, 2009, we closed a transaction for the sale of substantially all of the
assets of Sonora to Medical Imaging Holdings, Inc. for a cash payment of $8 million which
is reported as assets held for sale on the Companys Consolidated Balance Sheets as of
September 30, 2009. |
First Quarter Fiscal 2010 vs. First Quarter Fiscal 2009 Financial Results
Revenue was $2.7 million, a decrease of $.4 million compared to $3.1 million for the first quarter
of 2009. The decrease in revenue for the first quarter of 2010 was due to a decrease of $.4
million in medical device products sales to $2.1 million. Reduced sales of the Companys Lysonix
Ultrasonic Assisted Liposuction, SonaStar® Ultrasonic Surgical Aspirator and Autosonix® Cutting and
Coagulating System were partially offset by an increase in sales of the SonicOne® Wound Debridement
System and Bone Scalpel.
Net loss from continuing operations for the first quarter of 2010 was $1.2 million, or $.17 per
share, compared to income from continuing operations of $108,000, or $.02 per share, for the first
quarter of 2009. During the first fiscal quarter 2010, the Company sold all of its issued and
outstanding share capital of Labcaire for an aggregate consideration consisting of (i) a cash
payment of $3.6 million, (ii) a promissory note in the amount of $1 million payable over 4 years
and (iii) commissions on certain Labcaire sales and licenses made through December 13, 2013 not to
exceed $1 million in the aggregate. The Company reported a net loss for the first quarter of 2010,
including the income from discontinued operations of $448,000, or $.06 per share of $776,000, or
$.11 per share compared to net income of $320,000, or $.05 per share, for the first quarter of
2009.
At September 30, 2009, the Company had approximately $5.7 million in cash as compared to $3.4
million in cash as of June 30, 2009.
Commenting on Misonixs financial and operating results, Michael A. McManus, Jr., President and
Chief Executive Officer, said, Our first quarter results showed the continuing effect of the
difficult global economic conditions as both Misonix and its partners experienced slower sales. We
believe our new product launches and new direct and indirect sales force organization will be
successful in growing sales going forward. Our sales force enables us to better control both our
sales and margin while also building the Misonix brand as a world leader in Ultrasonic surgical
devices.
Both the Bone Scalpel for spinal surgery and the SonicOne for wound cleansing and debridement are
developing good traction in the market place. We believe the initiatives being implemented with
our distribution partners will result in stronger growth for our products in both the cosmetic
surgery and neuro surgery markets.
The transactions we successfully completed over the past few months have created a more focused
surgical company, with a stronger balance sheet. These steps, combined with the establishment of a
new direct sales force and broad based international distribution, will be key contributors to our
future growth.
Conference Call/Webcast Information
Misonix management will host a conference call and webcast on Monday, November 16, 2009 at 4:30 pm
ET to discuss the Companys first quarter fiscal 2010 financial results.
The conference call will be broadcast live via the Investor Relations section of the Companys Web
site at www.misonix.com. Alternatively, participants may join the conference call by dialing (866)
711-8198 (domestic) or (617) 597-5327 (international) and entering access code 95855392, a few
minutes before the start of the call.
For those unable to attend the live results broadcasts, a recording of the live-call will be
available approximately 2 hours after the event through November 23, 2009. The dial-in number to
listen to the recording is (888) 286-8010 or (617) 801-6888. The replay access code is 44023008.
The call will also be archived on the Companys website for at least 90 days.
About Misonix:
Misonix, Inc. (NASDAQ: MSON) designs, develops, manufactures and markets therapeutic ultrasonic
medical devices and laboratory equipment. Misonixs therapeutic ultrasonic platform is the basis
for several innovative medical technologies. Addressing a combined market estimated to be in
excess of $3 billion annually; Misonixs proprietary ultrasonic medical devices are used for wound
debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical
applications. Additional information is available on the Companys Web site at
www.misonix.com.
# # #
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With the exception of historical information contained in this press release, content herein may
contain forward looking statements that are made pursuant to the Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995. These statements are based on managements
current expectations and are subject to uncertainty and changes in circumstances. Investors are
cautioned that forward-looking statements involve risks and uncertainties that could cause actual
results to differ materially from the statements made. These factors include general economic
conditions, delays and risks associated with the performance of contracts, risks associated with
international sales and currency fluctuations,
uncertainties as a result of research and development, acceptable results from clinical studies,
including publication of results and patient/procedure data with varying levels of statistical
relevancy, risks involved in introducing and marketing new products, potential acquisitions,
consumer and industry acceptance, litigation and/or court proceedings, including the timing and
monetary requirements of such activities, the timing of finding strategic partners and implementing
such relationships, regulatory risks including approval of pending and/or contemplated 510(k)
filings, the ability to achieve and maintain profitability in the Companys business lines, and
other factors discussed in the Companys Annual Report on Form 10-K, subsequent Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. The Company disclaims any obligation to update its
forward-looking relationships.
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MISONIX, INC. And Subsidiaries
Consolidated Balance Sheets
Consolidated Balance Sheets
Derived from | ||||||||
Audited Financial | ||||||||
Unaudited | Statements | |||||||
September 30, 2009 | June 30, 2009 | |||||||
Assets |
||||||||
Current Assets: |
||||||||
Cash |
$ | 5,680,200 | $ | 3,415,813 | ||||
Accounts receivable, less allowance
for doubtful accounts of $378,543 and
$334,399, respectively |
2,291,613 | 3,301,551 | ||||||
Inventories, net |
3,799,061 | 3,678,743 | ||||||
Deferred income taxes |
1,014,262 | 762,429 | ||||||
Prepaid expenses and other current assets |
740,012 | 715,589 | ||||||
Current assets of discontinued operations Labcaire |
0 | 5,460,052 | ||||||
Current assets held for sale Sonora |
3,526,543 | 3,659,383 | ||||||
Total current assets |
17,051,691 | 20,993,560 | ||||||
Property, plant and equipment, net |
546,489 | 588,191 | ||||||
Deferred income taxes |
221,344 | 128,183 | ||||||
Goodwill |
2,020,838 | 2,016,941 | ||||||
Other assets |
1,558,571 | 757,551 | ||||||
Assets of discontinued operations Labcaire |
0 | 6,937,810 | ||||||
Assets held for sale Sonora |
3,717,198 | 3,741,170 | ||||||
Total assets |
$ | 25,116,131 | $ | 35,163,406 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Revolving credit facilities |
$ | 1,609,122 | $ | 2,633,059 | ||||
Notes payable |
132,031 | 261,485 | ||||||
Accounts payable |
936,682 | 690,004 | ||||||
Accrued expenses and other current liabilities |
655,254 | 807,691 | ||||||
Current maturities of capital lease obligations |
13,769 | 13,523 | ||||||
Foreign income taxes payable |
37,459 | 10,363 | ||||||
Current liabilities of discontinued operations Labcaire |
0 | 8,097,279 | ||||||
Current liabilities related to assets held for sale Sonora |
674,751 | 712,256 | ||||||
Total current liabilities |
4,059,068 | 13,225,660 | ||||||
Capital lease obligations |
24,161 | 27,716 | ||||||
Deferred income taxes |
405,776 | 405,776 | ||||||
Deferred income |
195,129 | 201,207 | ||||||
Deferred lease liability |
28,956 | 38,607 | ||||||
Liabilities related to assets held for sale Sonora |
253,930 | 280,652 | ||||||
Total liabilities |
4,967,020 | 14,179,618 | ||||||
Commitments and contingencies |
||||||||
Stockholders equity: |
||||||||
Misonix, Inc. stockholders equity: |
||||||||
Capital stock, $0.01 par value shares
authorized 20,000,000; 7,079,169
issued, and 7,001,369 outstanding, respectively |
70,792 | 70,792 | ||||||
Additional paid-in capital |
25,284,215 | 25,251,412 | ||||||
Accumulated deficit |
(4,600,393 | ) | (3,824,003 | ) | ||||
Accumulated other comprehensive loss |
(467,658 | ) | (348,936 | ) | ||||
Treasury stock, 77,800 shares |
(412,424 | ) | (412,424 | ) | ||||
Total Misonix, Inc. stockholders equity |
19,874,532 | 20,736,841 | ||||||
Noncontrolling interests |
274,579 | 246,947 | ||||||
Total stockholders equity |
20,149,111 | 20,983,788 | ||||||
Total liabilities and stockholders equity |
$ | 25,116,131 | $ | 35,163,406 | ||||
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MISONIX, INC. And Subsidiaries
Consolidated Statements of Operations
Consolidated Statements of Operations
Unaudited | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2009 | 2008 | |||||||
Net sales |
$ | 2,746,684 | $ | 3,143,199 | ||||
Cost of goods sold |
1,624,543 | 1,913,674 | ||||||
Gross profit |
1,122,141 | 1,229,525 | ||||||
Selling expenses |
949,413 | 798,326 | ||||||
General and administrative expenses |
1,345,256 | 1,503,601 | ||||||
Research and development expenses |
422,469 | 320,632 | ||||||
Total operating expenses |
2,717,138 | 2,622,559 | ||||||
Operating loss from continuing operations |
(1,594,997 | ) | (1,393,034 | ) | ||||
Total other income |
152,727 | 1,650,056 | ||||||
(Loss) income from continuing operations before income taxes |
(1,442,270 | ) | 257,022 | |||||
Income tax (benefit) provision |
(245,764 | ) | 149,436 | |||||
Net (loss) income from continuing operations |
(1,196,506 | ) | 107,586 | |||||
Discontinued operations: |
||||||||
Net income from discontinued operations, net of tax of $0
and $85,901 Ultrasonics |
0 | 118,624 | ||||||
Net income from discontinued operations, net of tax of
$32,429 and $33,329 Sonora |
128,987 | 46,026 | ||||||
Net income from discontinued operations, net of tax of
$437,968 and $25,850 Labcaire |
514,477 | 60,316 | ||||||
Net loss on sale of Labcaire, inclusive of a tax benefit
of $100,163 |
(195,716 | ) | 0 | |||||
Net income from discontinued operations |
447,748 | 224,966 | ||||||
Net (loss) income |
($748,758 | ) | $ | 332,552 | ||||
Net income attributable to noncontrolling interests |
$ | 27,632 | $ | 12,550 | ||||
Net (loss) income attributable to Misonix, Inc. shareholders |
($776,390 | ) | $ | 320,002 | ||||
(Loss) income per share-basic from continuing operations |
($0.17 | ) | $ | 0.02 | ||||
Income per share-basic from discontinued operations |
0.06 | 0.03 | ||||||
Net (loss) income per share-basic |
($0.11 | ) | $ | 0.05 | ||||
Loss per share-diluted from continuing operations |
($0.17 | ) | $ | 0.02 | ||||
Income per share-diluted from discontinued operations |
0.06 | 0.03 | ||||||
Net (loss) income per share-diluted |
($0.11 | ) | $ | 0.05 | ||||
Weighted average common shares-basic |
7,001,369 | 7,001,369 | ||||||
Weighted average common shares-diluted |
7,001,369 | 7,031,953 | ||||||
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