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8-K - FORM 8-K - MISONIX INC | c16914e8vk.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 Third Quarter and Nine Months Fiscal 2011 Financial Results
FARMINGDALE, NY May 10 , 2011 Misonix, Inc. (NASDAQ: MSON), a medical device company
that designs, manufactures and markets innovative therapeutic ultrasonic products worldwide for
wound debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and
medical applications, today reported financial results for the third fiscal quarter and nine months
ending March 31, 2011. Michael A. McManus Jr., President and Chief Executive Officer, and Richard
Zaremba, Senior Vice President and Chief Financial Officer, will host a conference call Tuesday,
May 10, 2011 at 11:30 am to discuss the Companys third quarter and nine month results.
The Company also reported the following financial and operational achievements:
| 8.5% and 13% increase in revenue for the three and nine months ending March 31, 2011,
respectively, compared with the same period ending March 31, 2010. |
||
| Medical device products revenue increased 20% and 21% for the three and nine months
ending March 31, 2011, respectively, compared with the same period ending March 31, 2010. |
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| Gross profit as a percentage of revenue was 52.1% and 52.6% for the three and nine
months ending March 31, 2011, respectively. |
Revenue for the three months ended March 31, 2011 was $3.6 million, an 8.5% increase when compared
with $3.3 million for the same period in fiscal 2010. Medical device products sales increased
$518,000 or 19.7% to $3.2 million and laboratory and scientific product sales decreased $238,000 to
$440,000 for the three months ended March 31, 2011. The increase in medical device products sales
was primarily attributable to sales of the Companys AutoSonix, Wound Debrider and Neuroaspirator
products.
Gross profit as a percentage of sales (gross profit percentage) was 52.1% for the three months
ended March 31, 2011 compared to 51.8% for the three months ended March 31, 2010. Gross profit
percentage for medical device products sales was 55.7% for the three months ended March 31, 2011
compared to 57.7% for the three months ended March 31, 2010. Gross profit percentage for medical
device products sales was unfavorably impacted in the three months ended March 31, 2011 by the sale
of the higher cost Neuroaspirator products purchased from Aesculap, Inc. in October 2010. Gross
profit for laboratory and scientific product sales decreased to 26.5% for the three months ended
March 31, 2011 from 29.1% for the three months ended March 31, 2010 primarily due to reduced sales
volume.
1
The Company reported a pre-tax loss from continuing operations of $396,000 for the three months
ended March 31, 2011 compared with a pre-tax income of $416,000 for the same period in fiscal 2010
which included a one-time gain from the recovery of the companys Focus Surgery, Inc. investment of
$693,000. The Company reported a net loss for the three months ended March 31, 2011 of $531,000 or
$0.08 per share including a loss of $131,000 from discontinued operations inclusive of $172,000 of
legal expenses incurred to defend Misonix in the Puricore matter compared to a net loss of $281,000
or $0.04 per share including a loss of $491,000 from discontinued operations for the three months
ended March 31, 2010.
Revenue for the nine months ended March 31, 2011 was $10.3 million, a 13% increase when compared
with $9.1 million for the same period in fiscal 2010. Medical device products sales increased $1.5
million or 21% to $8.6 million and laboratory and scientific product sales decreased $293,000 to
$1.7 million.
Gross profit percentage increased to 52.6% for the nine months ended March 31, 2011 from 46.6% for
the same period in fiscal 2010.
The Company reported a pre-tax loss from continuing operations of $1.8 million for the nine months
ended March 31, 2011 compared to a loss of $1.6 million for the same period in fiscal 2010. The
Company reported a net loss for the nine months ended March 31, 2011 of $2.1 million or $0.30 per
share which included a loss from discontinued operations of $278,000 inclusive of legal expenses of
$172,000 incurred to defend Misonix in the Puricore matter compared to a net loss of $1.4 million
or $0.20 per share which included income from discontinued operations of $203,000 for the nine
months ended March 31, 2010.
Commenting on Misonixs financial and operating results, Michael A. McManus Jr., President and
Chief Executive Officer, said, During the third quarter and nine months of fiscal year 2011, we
stayed on course with strong revenue growth and a continued improvement in gross profit margin. Our
solid growth in revenues highlights the success of our distribution channel strategy implemented in
fiscal 2010 and 2011 to establish our 75 person direct sales force in the U.S., substantially
expand our relationships with international distributors, and transition certain marketing partner
relationships to non-exclusive distribution. We have started to see the benefit of the direct sales
of our Neuroaspirator business both in terms of increased revenue and margin. Our BoneScalpel was
introduced recently into the Maxiofacial surgery market and we expect to announce shortly the
launch of the SonicOne® into the operating room for surgical debridement. We are very enthusiastic
about these new markets and both products will be sold throughout the world exclusively by our own
sales organization.
On the operational front, two of our key initiatives have been to drive a relentless focus on cost
management while continuing to provide best-in-class quality products. Our cost reduction efforts
have lowered our general and administrative expenses by approximately $500,000 from the prior year
nine month results. We were able to achieve these cost reductions while increasing brand awareness
for our medical devices through direct sales efforts. Although these efforts had some impact on our
bottom line in the third quarter, we believe these investments in our future will contribute to
sales growth and bolster our bottom line in fiscal year 2012 as we continue build on our solid base
of business.
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Our financial position remains strong, and we are encouraged to see continuing top-line momentum.
With the financial flexibility enabled by our realignment and divestiture of non-core assets, we
have the resources to grow as a leading provider of ultrasound surgical devices, as well as make
strategic growth investments in complementary medical device products or technology. We are
optimistic about the prospects for our business as we gain traction in the international markets
and our direct distribution channel in the U.S. continues to strengthen. As our markets continue to
recover and our distribution channel strategy takes hold, we believe Misonix is well-positioned
with a strong brand and broad suite of innovative ultrasound medical device products that deliver
excellent outcomes for patients and surgeons.
Conference Call:
Misonix management will host a conference call and webcast on Tuesday, May 10, 2011 at 11:30 am to
discuss third quarter results.
Shareholders and other interested parties may participate in the conference call by dialing (800)
561-2601 (domestic) or (617) 614-3518 (international) and entering access 51509337, a few minutes
before the start of the call. A simultaneous webcast will be available via Misonixs website at
www.misonix.com. The call will be archived on the companys website for at least 90 days.
A recording of the live-call will be available approximately 2 hours after the event through May
17, 2011. The dial-in number to listen to the recording is (888) 286-8010 (domestic) or (617)
801-6888 (international). The replay access code is 66431203.
About Misonix:
Misonix, Inc. designs, manufactures and markets therapeutic ultrasonic medical devices. 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.
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
March 31, | June 30, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 7,584,475 | $ | 9,900,605 | ||||
Accounts receivable, less allowance
for doubtful accounts of $109,070 and
$123,346, respectively |
1,859,026 | 2,335,653 | ||||||
Inventories, net |
3,909,943 | 2,699,717 | ||||||
Prepaid expenses and other current assets |
501,622 | 515,427 | ||||||
Note receivable |
210,000 | 1,075,105 | ||||||
Total current assets |
14,065,066 | 16,526,507 | ||||||
Property, plant and equipment, net |
922,285 | 500,215 | ||||||
Goodwill |
1,701,094 | 1,701,094 | ||||||
Other assets |
2,189,232 | 1,730,339 | ||||||
Total assets |
$ | 18,877,677 | $ | 20,458,155 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Notes payable |
$ | | $ | 177,679 | ||||
Accounts payable |
1,293,455 | 888,654 | ||||||
Accrued expenses and other current liabilities |
1,132,039 | 1,000,523 | ||||||
Total current liabilities |
2,425,494 | 2,066,856 | ||||||
Capital lease obligations |
2,666 | 14,274 | ||||||
Deferred income |
192,314 | 250,739 | ||||||
Deferred lease liability |
9,830 | | ||||||
Total liabilities |
2,630,304 | 2,331,869 | ||||||
Commitments and contingencies |
||||||||
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 |
25,709,294 | 25,502,717 | ||||||
Accumulated deficit |
(9,120,289 | ) | (7,034,799 | ) | ||||
Treasury stock, 77,800 shares |
(412,424 | ) | (412,424 | ) | ||||
Stockholders equity |
16,247,373 | 18,126,286 | ||||||
Total liabilities and stockholders equity |
$ | 18,877,677 | $ | 20,458,155 | ||||
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MISONIX, INC. And Subsidiaries
Consolidated Statements of Operations
Unaudited
Consolidated Statements of Operations
Unaudited
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 3,593,154 | $ | 3,313,131 | $ | 10,274,831 | $ | 9,092,322 | ||||||||
Cost of goods sold |
1,720,037 | 1,596,264 | 4,877,847 | 4,860,539 | ||||||||||||
Gross profit |
1,873,117 | 1,716,867 | 5,396,984 | 4,231,783 | ||||||||||||
Selling expenses |
1,079,267 | 671,213 | 3,098,967 | 2,649,699 | ||||||||||||
General and administrative expenses |
1,007,051 | 1,021,476 | 3,334,338 | 3,824,640 | ||||||||||||
Research and development expenses |
414,342 | 441,093 | 1,303,121 | 1,387,133 | ||||||||||||
Total operating expenses |
2,500,660 | 2,133,782 | 7,736,426 | 7,861,472 | ||||||||||||
Operating loss from continuing operations |
(627543.00 | ) | (416915.00 | ) | (2339442.00 | ) | (3629689.00 | ) | ||||||||
Total other income |
231,421 | 832,683 | 577,693 | 1,050,217 | ||||||||||||
(Loss) income from continuing operations before income taxes |
(396,122 | ) | 415,768 | (1,761,749 | ) | (2,579,472 | ) | |||||||||
Income tax (benefit) |
4,000 | 206,242 | 46,100 | (976,435 | ) | |||||||||||
Net (loss) income from continuing operations |
(400,122 | ) | 209,526 | (1,807,849 | ) | (1,603,037 | ) | |||||||||
Discontinued operations: |
||||||||||||||||
Net (loss) income from discontinued operations, net of income tax
expense of $0,($111,763), $0 and $358,634 |
(131,356 | ) | (258,850 | ) | (277,641 | ) | 506,367 | |||||||||
Net loss from sale of discontinued operations, net of income tax
expense of $0, $0, $0 and $957,937 |
| (257,029 | ) | | (369,848 | ) | ||||||||||
Noncontrolling interest in discontinued operations net of income taxes |
| 24,861 | | 66,201 | ||||||||||||
Net (loss) income from discontinued operations |
(131,356 | ) | (491,018 | ) | (277,641 | ) | 202,720 | |||||||||
Net loss attributable to Misonix, Inc. shareholders |
$ | (531,478 | ) | $ | (281,492 | ) | $ | (2,085,490 | ) | $ | (1,400,317 | ) | ||||
Net (loss) income per share from continuing operations attributable
to Misonix, Inc. shareholders-Basic |
$ | (0.06 | ) | $ | 0.03 | $ | (0.26 | ) | $ | (0.23 | ) | |||||
Net (loss) income per share from discontinued operations-Basic |
(0.02 | ) | (0.07 | ) | (0.04 | ) | 0.03 | |||||||||
Net loss per share attributable to Misonix, Inc. shareholders-Basic |
$ | (0.08 | ) | $ | (0.04 | ) | $ | (0.30 | ) | $ | (0.20 | ) | ||||
Net (loss) income per share from continuing operations attributable
to Misonix, Inc. shareholders-Diluted |
$ | (0.06 | ) | $ | 0.03 | $ | (0.26 | ) | $ | (0.23 | ) | |||||
Net (loss) income per share from discontinued operations-Diluted |
(0.02 | ) | (0.07 | ) | (0.04 | ) | 0.03 | |||||||||
Net loss per share attributable to Misonix, Inc. shareholders-Diluted |
$ | (0.08 | ) | $ | (0.04 | ) | $ | (0.30 | ) | $ | (0.20 | ) | ||||
Weighted average common shares-basic |
7,001,369 | 7,001,369 | 7,001,369 | 7,001,369 | ||||||||||||
Weighted average common shares-diluted |
7,001,369 | 7,038,385 | 7,001,369 | 7,001,369 | ||||||||||||
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