Government Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Dana Gardner, Gopala Krishna Behara

Related Topics: Government Cloud

News Feed Item

Sharps Compliance Corp. Reports Net Income More Than Doubles on 26% Increase in Revenue in the First Quarter of Fiscal 2009

- Record customer billings up 30% year-over-year to $4.7 million in the first quarter of fiscal 2009

HOUSTON, Oct. 27 /PRNewswire-FirstCall/ -- Sharps Compliance Corp. (OTC Bulletin Board: SCOM) ("Sharps" or the "Company"), a leading provider of cost-effective disposal solutions for small quantity generators of medical waste, today reported record revenue of $4.3 million in the first quarter of fiscal 2009, which ended September 30, 2008, a 26% increase compared with revenue of $3.4 million in the first quarter of fiscal 2008. The Company also reported record customer billings of $4.7 million in the first quarter of fiscal 2009, a 30% increase compared with $3.6 million in the same period the prior fiscal year, primarily driven by strong growth in the pharmaceutical, retail, professional, commercial and agriculture markets. The Company believes customer billings are an appropriate measure of performance and progress of the business.

Sales and Billings Growth

Customer billings from contracts with pharmaceutical manufacturers increased to $874 thousand in the first quarter of fiscal 2009 compared with $7 thousand in the same period the prior year. The recently announced renewal of the Company's first Patient Support Program with a top ten pharmaceutical manufacturer contributed approximately $700 thousand in billings in the first quarter of fiscal 2009 and is expected to generate an additional $900 thousand in billings during the second half of fiscal 2009 ending June 30, 2009. As previously announced, two additional Patient Support Programs with pharmaceutical manufacturers are scheduled to launch in the second quarter of fiscal 2009, ending December 31, 2008, and are expected to generate billings of up to $400 thousand in the second and third quarters of fiscal 2009.

Sharps' unique Patient Support Programs include the direct fulfillment of the Sharps Disposal By Mail System(R) to the pharmaceutical manufacturers' self-injecting patients, who use the product as a convenient means of disposing of used syringes. Sharp's proprietary SharpsTracer(TM) system tracks the return of the Sharps Disposal By Mail System(R) by the patient to the treatment facility, where the package is scanned and weighed prior to destruction. This data is electronically transmitted to the pharmaceutical manufacturer which assists them in monitoring drug usage and provides them with a touch point for individual patient follow-up.

Customer billings to retail market customers increased 23% to $0.8 million in the first quarter of fiscal 2009 as a result of strong seasonal demand for the Sharps Disposal By Mail Systems(R) as pharmacies and medical clinics in retail settings prepare for the upcoming flu shot season. Higher customer billings to the professional, commercial and agricultural markets were offset by slight year-over-year decreases in billings to healthcare and hospitality customers.

Dr. Burton J. Kunik, Chairman, Chief Executive Officer and President of Sharps Compliance, commented, "Throughout fiscal 2008, we wisely invested to build the breadth and depth of our sales and marketing team by bringing on experienced talent who have been diligently working to fill our pipeline with prospects and convert those opportunities into sales. Our success is now being evidenced by our record revenue and customer billings in this quarter."

First Quarter Fiscal 2009 Operating Performance

Gross profit was $1.8 million, up 29% over the prior year period. Gross margin was 43.3% in the first quarter of fiscal 2009, a 100 basis point increase compared with 42.3% in the same period the prior fiscal year. Gross margin was negatively impacted by approximately $200 thousand due to excess air freight shipping costs that were incurred to address supply and manufacturing issues associated with the Company's Pitch-It IV Poles. These issues were consequently resolved in August of 2008. Excluding the $200 thousand in excess air freight shipping costs, the gross margin for the quarter ended September 30, 2008 was 48%.

Selling, general and administrative (SG&A) expenses were $1.2 million in first quarters of both fiscal 2008 and 2009, but as a percentage of sales, decreased from 34% in the first quarter of fiscal 2008 to 27% in the first quarter of fiscal 2009.

Dr. Kunik continued, "The investment in the expansion and enhancement of our operational infrastructure over the past year in anticipation of this rapid growth in demand has allowed us to quickly and easily ramp-up our production and fulfillment capabilities. As our level of sales accelerates, we are now beginning to realize operational leverage and greater earnings power."

Operating income for the first quarter of fiscal 2009 was $610 thousand, or 14.3% of sales, an increase of $390 thousand, or 177%, compared with operating income of $220 thousand, or 6.5% of sales, in the same period the prior fiscal year.

Net income was $605 thousand, or $0.04 per diluted share, for the first quarter of fiscal 2009 compared with net income of $242 thousand, or $0.02 per diluted share, in the first quarter of fiscal 2008.

Liquidity and Balance Sheet Strength

Cash and cash equivalents were $2.5 million at September 30, 2008, up from $2.0 million at June 30, 2008. At September 30, 2008, stockholders' equity and total assets were $3.7 million and $7.0 million, respectively, up from $2.9 million and $5.7 million at June 30, 2008, respectively. Although Sharps maintains a $2.5 million line of credit with JPMorgan Chase, no amounts were outstanding at June 30, 2008. The line of credit is available to finance working capital, expansion and/or potential acquisition opportunities.

Dr. Kunik concluded, "There is a convergence of factors driving interest and demand for our products. Greater public awareness of the dangers of medical waste entering the environment is growing and resulting in greater awareness nationwide. We are increasing our customer base in a wider variety of industries through continuous sales, marketing and educational efforts. And we are regularly introducing new and innovative products for the safe and cost-effective disposal of medical waste, such as our recent launch of a product to dispose of unused medications and the Medical Professional version of our Sharps Disposal By Mail Systems(R). We believe our fiscal 2009 results will reflect the magnitude of these unprecedented opportunities and our ability to successfully meet our customers' expectations."

About Sharps Compliance Corp.

Headquartered in Houston, Texas, Sharps Compliance is a leading provider of cost-effective disposal solutions for small quantity generators of medical waste and unused pharmaceuticals. The Company's flagship product, the Sharps Disposal by Mail System(R), is a cost-effective and easy-to-use solution to dispose of medical waste such as hypodermic needles, lancets and any other medical device or objects used to puncture or lacerate the skin (referred to as "sharps"). The Company also offers a number of products specifically designed for the home healthcare market and products for the safe disposal of unused pharmaceuticals, RxTakeAway(TM). Sharps Compliance focuses on targeted growth markets such as the pharmaceutical, retail, commercial, and hospitality markets, as well as serving a variety of additional markets. 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.

As a fully integrated manufacturer providing customer solutions and services, Sharps Compliance's solid business model, with strong margins and significant operating leverage, and early penetration into emerging markets, uniquely positions the company for strong future growth.

More information on Sharps Compliance can be found on its website at: http://www.sharpsinc.com

Safe Harbor Statement

The information made available in this press release contains certain forward-looking statements which reflect Sharps Compliance Corp.'s current view of future events and financial performance. Wherever used, the words "estimate", "expect", "plan", "anticipate", "believe", "may" and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company's future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, the company's ability to educate its customers, development of public awareness programs to educate the identified consumer, customer preferences, the Company's ability to scale the business and manage its growth, the degree of success the Company has at gaining more large customer contracts, managing regulatory compliance and/or other factors that may be described in the company's annual report on Form 10-K, quarterly reports on Form 10-Q and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results express or implied therein will not be realized.

     For more information contact:

     David P. Tusa
     Executive Vice President, Chief Financial Officer & Business Development
     Phone: (713) 660-3514
     [email protected]

     - OR -

     Tammy Poblete
     Kei Advisors LLC
     Investor Relations
     Phone: (716) 843-3853
     Email: [email protected]


                      Consolidated Statements of Income

                                               Three-Months Ended
                                                  September 30,
                                                2008        2007     % Change

    Revenue                                  $4,269,536   $3,391,112    25.9%

      Cost of revenue                         2,420,360    1,957,735    23.6%
      Gross profit                            1,849,176    1,433,377    29.0%
          Gross margin                            43.3%        42.3%
      SG&A expense                            1,162,954    1,155,381     0.7%
      Depreciation and amortization              76,380       57,697    32.4%

    Operating income (loss)                     609,842      220,299   176.8%
        Operating margin                          14.3%         6.5%
      Other income                               14,871       26,302   (43.5%)

    Net income before income taxes              624,713     $246,601   153.3%
    Income taxes                                (19,372)      (4,997)
    Net income                                 $605,341     $241,604   150.6%

      Net income per share
        Basic                                     $0.05        $0.02
        Diluted                                   $0.04        $0.02

      Weighted Average Shares Outstanding
        Basic                                12,662,408   12,061,734
        Diluted                              13,703,683   13,535,520

                         Consolidated Balance Sheets

                                                     9/30/2008      6/30/2008
    Current assets:
      Cash and cash equivalents                     $2,547,276     $2,035,219
      Restricted cash                                        -         10,010
      Accounts receivable, net                       1,870,881      1,183,975
      Inventory                                        569,754        580,861
      Prepaid and other assets                         282,504        359,894
        Total current assets                         5,270,415      4,169,959
    Property and equipment, net                      1,547,498      1,375,657
    Intangible assets, net                             141,121        130,702
        Total assets                                $6,959,034     $5,676,318

    Current liabilities:
      Accounts payable                              $1,004,492       $778,423
      Accrued liabilities                              360,743        432,971
      Current portion of deferred revenue            1,219,736      1,063,016
        Total current liabilities                    2,584,971      2,274,410
    Long-term deferred revenue                         676,626        516,372
        Total liabilities                            3,261,597      2,790,782
    Stockholders' equity:
      Total stockholders' equity                     3,697,437      2,885,536
        Total liabilities and stockholders' equity  $6,959,034     $5,676,318

            Supplemental Customer Billing and Revenue Information

                                   Three-Months Ended September 30,
                                       2008    % Total     2007       % Change
      Health Care                  $1,906,697   40.9%  $1,919,264       (0.7%)
      Pharmaceutical                  874,614   18.8%       7,185    12072.8%
      Retail                          840,762   18.0%     685,436       22.7%
      Professional                    248,441    5.3%     171,184       45.1%
      Hospitality                     209,453    4.5%     363,235      (42.3%)
      Commercial                      184,499    4.0%     116,108       58.9%
      Agriculture                     174,011    3.7%      93,304       86.5%
      ProTec                          130,353    2.8%     125,270        4.1%
      Government                       55,150    1.2%      56,060       (1.6%)
      Other                            38,154    0.8%      49,204      (22.5%)
        Subtotal                    4,662,134  100.0%   3,586,250       30.0%
      GAAP Adjustment *              (392,598)           (195,138)    (101.2%)
        Revenue Reported            4,269,536           3,391,112       25.9%

    * Represents the net impact of the revenue recognition adjustments to
      arrive at reported GAAP revenue.  Customer billings include all invoiced
      amounts for products shipped during the period reported.  GAAP revenue
      includes customer billings as well as numerous adjustments necessary to
      reflect, (i) the deferral of a portion of current period sales and (ii)
      recognition of certain revenue associated with product returned for
      treatment and destruction. The difference between customer billings and
      GAAP revenue is reflected in the Company's balance sheet as deferred

SOURCE Sharps Compliance Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
Moroccanoil®, the global leader in oil-infused beauty, is thrilled to announce the NEW Moroccanoil Color Depositing Masks, a collection of dual-benefit hair masks that deposit pure pigments while providing the treatment benefits of a deep conditioning mask. The collection consists of seven curated shades for commitment-free, beautifully-colored hair that looks and feels healthy.
The textured-hair category is inarguably the hottest in the haircare space today. This has been driven by the proliferation of founder brands started by curly and coily consumers and savvy consumers who increasingly want products specifically for their texture type. This trend is underscored by the latest insights from NaturallyCurly's 2018 TextureTrends report, released today. According to the 2018 TextureTrends Report, more than 80 percent of women with curly and coily hair say they purcha...
The textured-hair category is inarguably the hottest in the haircare space today. This has been driven by the proliferation of founder brands started by curly and coily consumers and savvy consumers who increasingly want products specifically for their texture type. This trend is underscored by the latest insights from NaturallyCurly's 2018 TextureTrends report, released today. According to the 2018 TextureTrends Report, more than 80 percent of women with curly and coily hair say they purcha...
We all love the many benefits of natural plant oils, used as a deap treatment before shampooing, at home or at the beach, but is there an all-in-one solution for everyday intensive nutrition and modern styling?I am passionate about the benefits of natural extracts with tried-and-tested results, which I have used to develop my own brand (lemon for its acid ph, wheat germ for its fortifying action…). I wanted a product which combined caring and styling effects, and which could be used after shampo...
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected pat...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.