REMEDENT, INC. - FORM 8-K - EX-99.1 - July 15, 2011

Attached files

file filename
8-K - REMEDENT, INC.v228801_8k.htm
Exhibit 99.1

Remedent Reports Fourth Quarter and Year End Results and to
Host a Conference Call at 10 AM EST, Tuesday, July 19, 2011
 
Gent, Belgium—(marketwire-07/15/2011)-Remedent, Inc. (OTC.BB:REMI-News), an international company specializing in research, development, and manufacturing of oral care and cosmetic dentistry products, reported results for the fourth quarter and for the year ended March 31, 2011 (in US Dollars).

Net sales for the fourth quarter increased 17% to $2.8 million from $2.4 million in the same year ago quarter. The increase in sales is attributable to increased sales in Asia.

Loss from operations in the fourth quarter was a loss of $933,000 compared to a loss of $462,330 in the same year ago quarter.

Net sales for the year increased by $4.25 million 52% to $12.5 million in the year ended March 31, 2011 as compared to $8.25 million of sales in the year ended March 31, 2010. Net loss for the year ended March 31, 2011 was $1.5 million or $ (.08) per share, as compared with a loss of $2.4 million, or $ (0.12) per share for the year ended March 31, 2010.

Cash and Cash equivalents totaled $1.6 million at March 31, 2011 as opposed to $614,000 at March 31, 2010.

Management Commentary:

“Our investment in our Chinese operations continues to exceed our expectations. For the year ended March 31, 2011, Glamsmile Asia generated approximately $850 thousand dollars in net income prior to tax. We anticipate further growth in China as a new fourth studio is expected to open in Wenzhou, China  in September, 2011.

Our net loss for the year was negatively impacted by an impairment loss of $750,000 for Soca Networks Singapore, an investment made in a production facility to produce our Glamsmile veneers. The investment was made in two installments of $375,000 each, with the last payment being made in March 2008. Since management believes that the time-frame for recovery cannot be predicted with any certainty and as a result we took a 100% impairment allowance at year-end. In addition to this, our results were also impacted by the write off of approximately $100,000 for certain patents which are unrelated to our veneer market and current strategic plan.  In addition, our results also reflect a deferred revenue of $475,250 for an advance payment we received for veneers. Upon delivery of the veneers, the cost of goods sold will be recorded and the revenue recognized.

For the remainder of the fiscal year, management intends to focus its efforts and resources on expanding and developing its Chinese operations, where it sees growth and potential. This focus may include changing the name of our entity from Remedent Inc., to Glamsmile Inc., and seeking additional board members who have relevant experience with our business, particularly in the dental market in Asia.  In addition, management intends to focus on reducing current and future corporate overhead expenses, by consolidating some of its operations and repositioning the strategy of its USA and European operations on establishing revenue streams through royalty agreements for its products.
 
We certainly are looking forward to getting Glamsmile Asia positioned as one of the leading dental brands luxury brands in China as well as the neighboring  nearby other emerging Asian markets” said Guy De Vreese the CEO of Remedent.
 
 
 
 

Conference Call Information:

Remedent will host a conference call on Tuesday, July 19, 2011 at 10:00 a.m. Eastern Standard Time (7:00 a.m. Pacific Standard Time) to discuss these results and its strategic plans for the future. A question and answer session will follow management’s presentation.

To participate in this call, dial the appropriate number 5-10 minutes prior to the start time.
Date: Tuesday, July 19, 2011
Time: 10:00 a.m. Eastern Standard Time. (7:00 a.m. Pacific Standard Time)
Dial in Number: 1-866-226-1792

A telephone replay of the call will be available until August 15, 2011
Toll Free Replay Number: 1-800-408-3053
Replay Password: 6787766
 
About Remedent
 
Remedent, Inc. specializes in the research, development, manufacturing and marketing of oral care and cosmetic dentistry products. The company serves professional dental industry with breakthrough technology for dental veneers. These products are supported by a line of professional veneer whitening and teeth sensitivity solutions. Headquartered in Belgium, Remedent distributes its products to more than 35 countries worldwide. For more information, go to www.remedent.com.
 
Forward-Looking Statements
 
Statements in this press release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause Remedent's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," "projects," "project," to be uncertain and forward-looking. Actual results could differ materially because of factors such as Remedent's ability to achieve the synergies and value creation contemplated by the proposed transaction. For further information regarding risks and uncertainties associated with Remedent's business, please refer to the risk factors described in Remedent's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. We undertake no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
 
 
 
 

REMEDENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

   
For the years ended
March 31,
  
   
2011
    
2010
  
Net sales
  
$
12,581,708
    
$
8,247,940
  
Cost of sales
    
3,947,699
      
4,322,680
  
Gross profit
    
8,634,009
      
3,925,260
  
Operating Expenses
                
Research and development
    
429,244
      
271,195
  
Sales and marketing
    
2,220,686
      
1,352,260
  
General and administrative
    
4,972,982
      
4,524,324
  
Depreciation and amortization
    
779,883
      
726,499
  
TOTAL OPERATING EXPENSES
    
8,402,795
      
6,874,278
  
OPERATING INCOME (LOSS)
    
231,214
      
(2,949,018
)
NON-OPERATING (EXPENSE) INCOME
                
Impairment of long-term investments and advances
    
(750,000
)
    
—
  
Warrants issued pursuant to Distribution Agreements
    
—
      
(168,238
)
Interest expense
    
(260,235
)
    
(171,364
)
Interest income
    
159,289
      
170,244
  
TOTAL OTHER INCOME (EXPENSES)
    
(850,946
)
    
(169,358
)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
    
(619,732)
      
(3,118,376
)
Income tax expense
    
(220,297
)
    
(14,242
)
NET INCOME (LOSS)
    
(840,029)
      
(3,132,618
)
NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
    
(707,146)
      
(782,703
) 
NET LOSS ATTRIBUTABLE TO REMEDENT INC. Common Stockholders
  
$
(1,547,175
)
  
$
(2,349,915
)
LOSS PER SHARE
                
Basic and fully diluted
  
$
(0.08
)
  
$
(0.12
)
WEIGHTED AVERAGE SHARES OUTSTANDING
                
Basic and fully diluted
    
19,995,969
      
19,995,969
  
       
Net Loss attributable to Remedent, Inc. common shareholders
  
$
(1,547,175
)
  
$
(2,349,915
)
OTHER COMPREHENSIVE INCOME (LOSS):
                
Foreign currency translation adjustment
    
(184,890
)
    
(9,464
)
Total Other Comprehensive loss
    
(1,732,065
)
    
(2,359,379
)
                 
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST
    
21,996
      
7,130
  
                 
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO REMEDENT, INC. common shareholders
  
$
(1,710,069
)
  
$
(2,366,509
)
 
 
 
 

REMEDENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
   
March 31, 2011
    
March 31, 2010
  
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
1,662,520
    
$
613,466
  
Accounts receivable, net of allowance for doubtful accounts of $28,975 at March 31, 2011 and $65,845 at March 31, 2010
    
2,764,651
      
806,931
  
Inventories, net
    
2,164,046
      
2,161,692
  
Prepaid expense
    
762,953
      
920,487
  
Total current assets
    
7,354,170
      
4,502,576
  
PROPERTY AND EQUIPMENT, NET
    
1,401,735
      
1,735,719
  
OTHER ASSETS
                
Long term investments and advances
    
—
      
750,000
  
Patents, net
    
166,746
      
246,992
  
Goodwill
    
699,635
      
699,635
  
Total assets
  
$
9,622,286
    
$
7,934,922
  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
                
CURRENT LIABILITIES:
                
Current portion, long term debt
  
$
184,679
    
$
215,489
  
Line of Credit
    
2,160,674
      
674,600
  
Short term loan
    
400,000
      
—
  
Accounts payable
    
1,744,253
      
1,932,684
  
Accrued liabilities
    
1,256,148
      
491,536
  
Deferred revenue
    
475,250
      
—
  
Due to related parties
    
95,354
      
268,484
  
Total current liabilities
    
6,316,358
      
3,582,793
  
Long term debt less current portion
    
273,557
      
425,882
  
Total liabilities
    
6,589,915
      
4,008,675
  
                 
EQUITY:
                
Preferred Stock $0.001 par value (10,000,000 shares authorized, none issued and outstanding)
    
—
      
—
  
Common stock, $0.001 par value; (50,000,000 shares authorized, 19,995,969 shares issued and outstanding at March 31, 2011 and March 31, 2010 respectively)
    
19,996
      
19,996
  
Treasury stock, at cost; 723,000 shares outstanding at March 31, 2011 and March 31, 2010 respectively
    
(831,450
)
    
(831,450
)
Additional paid-in capital
    
24,855,883
      
24,742,201
  
Accumulated deficit
    
(21,113,118
)
    
(19,565,943
)
Accumulated other comprehensive income (loss) (foreign currency translation adjustment)
    
(834,949
)
    
(650,059
)
Obligation to issue shares
    
97,500
      
97,500
  
Total Remedent, Inc. stockholders’ equity
    
2,193,862
      
3,812,245
  
Non-controlling interest
    
838,509
      
114,002
  
Total stockholders’ equity
    
3,032,371
      
3,926,247
  
Total liabilities and equity
  
$
9,622,286
    
$
7,934,922
  
 
 
 

Stock widget

Investing forum

REMEDENT, INC. Reports