Attached files
| file | filename |
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| 8-K - FORM 8-K - MISONIX INC | c12149e8vk.htm |
Exhibit 99.1
Misonix Contact:
|
Investor Relations Contact: | |
Richard Zaremba
|
Kevin McGrath, Cameron Associates, Inc. | |
631-694-9555
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212-245-4577 | |
invest@misonix.com
|
Kevin@cameronassoc.com |
Misonix Reports Second Quarter and Six Months Fiscal 2011 Financial Results
FARMINGDALE, NY — February 9, 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 second fiscal quarter and six months ending
December 31, 2010. Michael A. McManus Jr., President and Chief Executive Officer, and Richard
Zaremba, Senior Vice President and Chief Financial Officer, will host a conference call Wednesday,
February 9, 2011 at 4:30 pm to discuss the Company’s second quarter and six month results.
The Company also reported the following financial and operational achievements:
| • | A 9% and 16% increase in revenue for the three and six months ending December 31, 2010,
respectively, compared with the same period ending December 31, 2009. |
| • | Medical device products revenue increased 11% and 21% for the three and six months
ending December 31, 2010, respectively, compared with the same period ending December 31,
2009. |
| • | Gross profit as a percentage of revenue increased to 55.1% and 52.7% for the three and
six months ending December 31, 2010, respectively. |
Revenue for the three months ended December 31, 2010 was $3.4 million, a 9% increase when compared
with $3.1 million for the same period in fiscal 2010. Medical device product sales increased
$268,000 or 11% to $2.8 million and laboratory and scientific product sales increased $7,000 to
$661,000 for the three months ended December 31, 2010. The increase in medical device product
sales was primarily attributable to sales of the Company’s Neuroaspirator products.
Gross profit as a percentage of sales (gross profit percentage) increased to 55.1% for the three
months ended December 31, 2010 from 47.8% for the three months ended December 31, 2009. Gross
profit percentage for medical device product sales increased to 62.4% for the three months ended
December 31, 2010 from 52.0% for the three months ended December 31, 2009. Gross profit percentage
for medical device product sales was favorably impacted in the three months ended December 31, 2010
predominately by a favorable mix of higher margin Neuroaspirator products. Gross profit for
laboratory and scientific product sales decreased to 24.7% for the three months ended December 31,
2010 from 31.8% for the three months ended December 31, 2009.
The Company reported a pre-tax loss from continuing operations of $561,000 for the three months
ended December 31, 2010 compared with a pre-tax loss of $1.5 million for the same period in fiscal
2010. The Company reported a net loss attributable to Misonix, Inc. shareholders for the three
months ended December 31, 2010 of $536,000 or $.08 per share including income of $29,000 from
discontinued operations compared to a net loss of $224,000 or $.03 per share including income of
$342,000 from discontinued operations for the three months ended December 31, 2009.
Revenue for the six months ended December 31, 2010 was $6.7 million, a 16% increase when compared
with $5.8 million for the same period in fiscal 2010. Medical device products sales increased
$957,000 or 21% to $5.5 million and laboratory and scientific product sales decreased $55,000 to
$1.2 million.
Gross profit percentage increased to 52.7% for the six month ended December 31, 2010 from 43.5% for
the same period in fiscal 2010.
The Company reported a pre tax loss from continuing operations of $1.4 million for the six months
ended December 31, 2010 compared to a loss of $3.0 million for the same period in fiscal 2010. The
Company reported a net loss attributable to Misonix, Inc. shareholders for the six months ended
December 31, 2010 of $1.6 million or $.22 per share which included a loss from discontinued
operations of $146,000 compared to a net loss of $1.1 million or $.16 per share attributable to
Misonix, Inc. shareholders which included income from discontinued operations of $694,000 for the
six months ended December 31, 2009.
Commenting on Misonix’s financial and operating results, Michael A. McManus Jr. President and Chief
Executive Officer, said, “We are pleased at the growth of our revenues and gross margins
particularly with respect to our medical device products. We have started to see the benefit of
the direct sales of our Neuroaspirator business both in increased revenue and margins. Our cost
reduction efforts have lowered our total operating expenses by approximately $500,000 from the
prior year six months results. We were able to achieve these cost reductions while increasing
brand awareness of our medical devices through direct sales.
“Over the next couple of months we will be introducing the BoneScalpel™ into the Maxiofacial
surgery market and the SonicOne® into the operating room for surgical debridement. Both products
will be sold throughout the world exclusively by our own sales organization.
“We remain committed to our strategic vision and belief that increased medical device sales through
our proprietary sales channels, a broader geographic reach, and development of new surgical
applications and technology, will strengthen and grow the company over time.”
2
Conference Call:
Misonix management will host a conference call and webcast on Wednesday, February 9, 2011 at 4:30
pm to discuss second quarter results.
Shareholders and other interested parties may participate in the conference call by dialing
(866)383-7989 (domestic) or (617) 597-5328 (international) and entering access code 69318379, a few
minutes
before the start of the call. A simultaneous webcast will be available via Misonix’s website at
www.misonix.com. The call will be archived on the company’s website for at least 90 days.
A recording of the live-call will be available approximately 2 hours after the event through
February 16, 2011. The dial-in number to listen to the recording is (888) 286-8010 or (617)
801-6888. The replay access code is 80510077.
About Misonix:
Misonix, Inc. designs, manufactures and markets therapeutic ultrasonic medical devices and
laboratory and scientific 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.
# # #
3
MISONIX, INC. And Subsidiaries
Consolidated Balance Sheets
Consolidated Balance Sheets
| December 31, 2010 | June 30, 2010 | |||||||
Assets |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 8,237,125 | $ | 9,900,605 | ||||
Accounts receivable, less allowance
for doubtful accounts of $116,178 and
$123,346, respectively |
2,290,466 | 2,335,653 | ||||||
Inventories, net |
3,745,148 | 2,699,717 | ||||||
Prepaid expenses and other current assets |
253,032 | 515,427 | ||||||
Note receivable |
210,000 | 1,075,105 | ||||||
Total current assets |
14,735,771 | 16,526,507 | ||||||
Property, plant and equipment, net |
769,147 | 500,215 | ||||||
Goodwill |
1,701,094 | 1,701,094 | ||||||
Other assets |
2,244,076 | 1,730,339 | ||||||
Total assets |
$ | 19,450,088 | $ | 20,458,155 | ||||
Liabilities and stockholders’ equity |
||||||||
Current liabilities: |
||||||||
Notes payable |
$ | 10,701 | $ | 177,679 | ||||
Accounts payable |
1,570,001 | 888,654 | ||||||
Accrued expenses and other current liabilities |
950,525 | 1,000,523 | ||||||
Total current liabilities |
2,531,227 | 2,066,856 | ||||||
Capital lease obligations |
6,605 | 14,274 | ||||||
Deferred income |
203,367 | 250,739 | ||||||
Deferred lease liability |
5,617 | — | ||||||
Total liabilities |
2,746,816 | 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 |
25,633,715 | 25,502,717 | ||||||
Accumulated deficit |
(8,588,811 | ) | (7,034,799 | ) | ||||
Treasury stock, 77,800 shares |
(412,424 | ) | (412,424 | ) | ||||
Stockholders’ equity |
16,703,272 | 18,126,286 | ||||||
Total liabilities and stockholders’ equity |
$ | 19,450,088 | $ | 20,458,155 | ||||
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MISONIX, INC. And Subsidiaries
Consolidated Statements of Operations
Unaudited
Consolidated Statements of Operations
Unaudited
| Three Months Ended | Six Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 3,423,689 | $ | 3,148,174 | $ | 6,681,677 | $ | 5,779,191 | ||||||||
Cost of goods sold |
1,537,107 | 1,642,382 | 3,157,810 | 3,264,275 | ||||||||||||
Gross profit |
1,886,582 | 1,505,792 | 3,523,867 | 2,514,916 | ||||||||||||
Selling expenses |
1,054,693 | 1,058,879 | 2,019,700 | 1,978,486 | ||||||||||||
General and administrative expenses |
1,109,482 | 1,490,484 | 2,327,287 | 2,803,164 | ||||||||||||
Research and development expenses |
428,285 | 523,571 | 888,779 | 946,040 | ||||||||||||
Total operating expenses |
2,592,460 | 3,072,934 | 5,235,766 | 5,727,690 | ||||||||||||
Operating loss from continuing operations |
(705,878 | ) | (1,567,142 | ) | (1,711,899 | ) | (3,212,774 | ) | ||||||||
Total other income |
144,682 | 64,810 | 346,272 | 217,534 | ||||||||||||
Loss from continuing operations before income taxes |
(561,196 | ) | (1,502,332 | ) | (1,365,627 | ) | (2,995,240 | ) | ||||||||
Income tax (benefit) |
4,000 | (936,913 | ) | 42,100 | (1,182,677 | ) | ||||||||||
Net loss from continuing operations |
(565,196 | ) | (565,419 | ) | (1,407,727 | ) | (1,812,563 | ) | ||||||||
Discontinued operations: |
||||||||||||||||
Net income (loss) from discontinued operations, net of income tax expense of $0,$0, $0 and $470,397 |
29,030 | 237,724 | (146,285 | ) | 765,217 | |||||||||||
Net loss from sale of discontinued operations, net of income tax expense of $0, $0, $0 and $957,937 |
— | 82,897 | — | (112,819 | ) | |||||||||||
Noncontrolling interest in discontinued operations net of income taxes |
— | 21,085 | — | 41,340 | ||||||||||||
Net income (loss) from discontinued operations |
29,030 | 341,706 | (146,285 | ) | 693,738 | |||||||||||
Net loss attributable to Misonix, Inc. shareholders |
$ | (536,166 | ) | $ | (223,713 | ) | $ | (1,554,012 | ) | $ | (1,118,825 | ) | ||||
Net loss per share from continuing operations attributable to Misonix, Inc. shareholders-Basic |
$ | (0.08 | ) | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.26 | ) | ||||
Net income (loss) per share from discontinued operations-Basic |
0.00 | 0.05 | (0.02 | ) | 0.10 | |||||||||||
Net loss per share attributable to Misonix, Inc. shareholders-Basic |
$ | (0.08 | ) | $ | (0.03 | ) | $ | (0.22 | ) | $ | (0.16 | ) | ||||
Net loss per share from continuing operations attributable to Misonix, Inc. shareholders-Diluted |
$ | (0.08 | ) | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.26 | ) | ||||
Net income (loss) per share from discontinued operations-Diluted |
0.00 | 0.05 | (0.02 | ) | 0.10 | |||||||||||
Net loss per share attributable to Misonix, Inc. shareholders-Diluted |
$ | (0.08 | ) | $ | (0.03 | ) | $ | (0.22 | ) | $ | (0.16 | ) | ||||
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 | 7,001,369 | 7,001,369 | 7,001,369 | ||||||||||||
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