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8-K - FORM 8-K - MISONIX INCc92771e8vk.htm
Exhibit 99.1
(MISONIX LOGO)
     
Misonix Contact:
  Investor Relations Contact:
Richard Zaremba
  Kevin McGrath / Cameron Associates, Inc.
631-694-9555
  212-245-4577
invest@misonix.com
  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 Company’s 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 Company’s 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 Company’s 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 Misonix’s 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 Company’s first quarter fiscal 2010 financial results.
The conference call will be broadcast live via the Investor Relations section of the Company’s 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 Company’s website for at least 90 days.
About Misonix:
Misonix, Inc. (NASDAQ: MSON) designs, develops, manufactures and markets therapeutic ultrasonic medical devices and laboratory equipment. Misonix’s therapeutic ultrasonic platform is the basis for several innovative medical technologies. Addressing a combined market estimated to be in excess of $3 billion annually; Misonix’s 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 Company’s 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 management’s 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 Company’s business lines, and other factors discussed in the Company’s 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
                 
            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
                 
    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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