Sharps Compliance Fiscal 2016 First Quarter Revenue Increases 12% to $7.9 Million
- Gross margin of 37%
- Professional market billings increase 18%
- Assisted Living and Home Health Care billings increase 17% and 11%, respectively
-
Billings in Retail and Government shifting from
September 2015 quarter toDecember 2015 quarter -
Record
December 2015 quarter expected
Revenue in the first quarter of fiscal 2016 was
Customer billings grew 6.5% to
Comprehensive Provider of Waste Services
The addition of the route-based pick-up service and the new unused medication solutions including the TakeAway Medication Recovery System™ Envelopes and MedSafe®, are further positioning the Company as a comprehensive provider of services to its core small quantity generator customer base. The Company is beginning to see success from the new offerings in the Professional, Government and Assisted Living markets as well as in the Inside and Online Sales channel which grew by 27% during the
Regarding acquisitions and infrastructure expansion,
Tusa added, "We have begun the process to expand our infrastructure in the Northeast to include an additional treatment facility and distribution warehouse. We expect that this facility could be operational in twelve months or less. There is a high concentration of our customer base and prospects in the Northeast that utilize our full line of services. We believe the expansion will benefit sales of our service offerings and promote operational efficiencies."
Focused sales and marketing initiatives continue to drive revenue
Professional market billings grew 18% to
Retail market billings decreased 12% to
Government billings grew by 246% to
Pharmaceutical Manufacturer billings decreased 11% to
Home Health Care market billings grew 11% to
Operating performance
Gross margin was 36.6% in the first quarter of fiscal 2016 compared to gross margin of 33.1% in the first quarter of fiscal 2015. Gross margin improvement was driven by the leverage gained from higher revenue.
Selling, general and administrative (SG&A) expense increased 12% to
The Company reported operating income of
Sharps achieved EBITDA of
Financial flexibility and a strong balance sheet
Cash and cash equivalents increased to
Outlook
First quarter fiscal year 2016 webcast and conference call
The Company will host a teleconference today beginning at
The Sharps conference call can be accessed by domestic callers by dialing (877) 407-0782. International callers may access the call by dialing (201) 689-8567. The webcast can be monitored at www.sharpsinc.com. Webcast listeners will have the opportunity to submit questions to the speakers. Select questions will be summarized and addressed during the question-and-answer portion of the call.
A telephonic replay will be available through
About
Headquartered in
More information on the Company and its products can be found on its website at: www.sharpsinc.com
Safe harbor statement
The information made available in this news release contains certain forward-looking statements which reflect
Non-GAAP measures
This release contains certain financial information not derived in accordance with generally accepted accounting principles ("GAAP"), including customer billings information, EBITDA and non-GAAP net income per share. The Company believes this information is useful to investors and other interested parties. Such information should not be considered as a substitute for any measure derived in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. Reconciliation of this information to the most comparable GAAP measures is included as an attachment to this release.
FINANCIAL TABLES FOLLOW
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| Condensed Consolidated Statements of Operations | |||
| (in thousands, except per share data) | |||
| (Unaudited) | |||
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Three-Months Ended |
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| 2015 | 2014 | % Change | |
| Revenue | $ 7,869 | $ 7,047 | 11.7% |
| Cost of revenue | 4,990 | 4,713 | 5.9% |
| Gross profit | 2,879 | 2,334 | 23.4% |
| Gross margin | 36.6% | 33.1% | |
| SG&A expense | 2,596 | 2,323 | 11.8% |
| Depreciation and amortization | 52 | 85 | |
| Operating income (loss) | 231 | (74) | |
| Operating margin | 2.9% | (1.1%) | |
| Interest income | 9 | 8 | |
| Income (loss) before income taxes | 240 | (66) | |
| Income tax expense | 20 | 8 | |
| Net income (loss) | $ 220 | $ (74) | |
| Net income (loss) per share | |||
| Basic | $ 0.01 | $ (0.00) | |
| Diluted | $ 0.01 | $ (0.00) | |
| Weighted Average Shares Outstanding | |||
| Basic | 15,419 | 15,288 | |
| Diluted | 15,926 | 15,288 | |
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| Condensed Consolidated Balance Sheets | ||
| (in thousands) | ||
| (Unaudited) | ||
|
2015 |
2015 |
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| ASSETS: | ||
| Current assets: | ||
| Cash and cash equivalents | $ 15,956 | $ 15,157 |
| Accounts receivable, net | 4,892 | 6,647 |
| Inventory | 3,419 | 2,738 |
| Prepaid and other current assets | 553 | 733 |
| Total current assets | 24,820 | 25,275 |
| Property, plant and equipment, net | 4,175 | 3,810 |
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413 | -- |
| Intangible assets, net | 912 | 666 |
| Total assets | $ 30,320 | $ 29,751 |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
| Current liabilities: | ||
| Accounts payable | $ 1,439 | $ 1,770 |
| Accrued liabilities | 2,034 | 1,917 |
| Deferred revenue | 1,910 | 1,877 |
| Total current liabilities | 5,383 | 5,564 |
| Long-term deferred revenue | 501 | 483 |
| Other long-term liabilities | 221 | 118 |
| Total liabilities | 6,105 | 6,165 |
| Stockholders' equity: | ||
| Total stockholders' equity | 24,215 | 23,586 |
| Total liabilities and stockholders' equity | $ 30,320 | $ 29,751 |
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| Supplemental Customer Billing and Revenue Information | ||||||
| (in thousands) | ||||||
| (unaudited) | ||||||
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Three-Months Ended |
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| 2015 | % Total | 2014 | $ Change | % | ||
| BILLINGS BY MARKET: | ||||||
| Home Health Care | $ 1,951 | 24.5% | $ 1,753 | $ 198 | 11.3% | |
| Retail | 1,749 | 21.9% | 1,995 | (246) | (12.3%) | |
| Professional | 1,711 | 21.4% | 1,451 | 260 | 17.9% | |
| Pharmaceutical Manufacturer | 1,239 | 15.5% | 1,385 | (146) | (10.5%) | |
| Assisted Living | 526 | 6.6% | 450 | 76 | 16.9% | |
| Government | 464 | 5.8% | 134 | 330 | 246.3% | |
| Environmental | 79 | 1.0% | 94 | (15) | (16.0%) | |
| Other | 262 | 3.3% | 233 | 29 | 12.4% | |
| Subtotal | $ 7,981 | 100.0% | $ 7,495 | $ 486 | 6.5% | |
| GAAP Adjustment * | (112) | (448) | 336 | |||
| Revenue Reported | $ 7,869 | $ 7,047 | $ 822 | 11.7% | ||
| * 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 revenue. | ||||||
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| Supplemental Customer Billing by Channel Information | |||||
| (in thousands) | |||||
| (unaudited) | |||||
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Three-Months Ended |
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| 2015 | % Total | 2014 | $ Change | % Change | |
| BILLINGS BY CHANNEL: | |||||
| Direct Sales | $ 4,089 | 51.2% | $ 3,612 | $ 477 | 13.2% |
| Distributors | 2,485 | 31.1% | 2,779 | (294) | (10.6%) |
| Inside and Online Sales | 1,407 | 17.7% | 1,104 | 303 | 27.4% |
| Total Billings By Channel | $ 7,981 | 100.0% | $ 7,495 | $ 486 | 6.5% |
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| Supplemental Table to Reconcile Net Income (Loss) to EBITDA | ||
| (in thousands) | ||
| (unaudited) | ||
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Three-Months Ended |
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| 2015 | 2014 | |
| Net Income (Loss) | $ 220 | $ (74) |
| Income tax expense | 20 | 8 |
| Interest income | (9) | (8) |
| Depreciation and amortization | 188 | 242 |
| EBITDA | $ 419 | $ 168 |
| The Company defines earnings before interest, taxes, depreciation and amortization ("EBITDA") as net income, plus income tax expense, interest income, and depreciation and amortization. Other companies may define EBITDA differently. EBITDA is presented because it is a financial measure that is frequently requested by third parties. However, EBITDA is not considered under generally accepted accounting principles as a primary measure of an entity's financial results, and accordingly, EBITDA should not be considered an alternative to operating income, net income, or cash flows as determined under generally accepted accounting principles and as reported by the Company. | ||
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| Supplemental Reconciliation of GAAP to Non-GAAP Net Income (Loss) Per Share* | ||||
| (in thousands, except per share data) | ||||
| (unaudited) | ||||
|
Three-Months Ended |
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| 2015 | 2014 | |||
| Net income (loss) | $ 220 | $ (74) | ||
| Diluted net income per share | $ 0.01 | $ (0.00) | ||
| Adjustments: | ||||
| Acquisition costs | 77 | -- | ||
| Adjustments | 77 | -- | ||
| Adjusted Net Income | $ 297 | $ (74) | ||
| Adjusted diluted net income per share | $ 0.02 | $ (0.00) | ||
| * In accordance with U.S. generally accepted accounting principles (GAAP), the Company's net deferred tax assets have been fully reserved by a tax valuation allowance and any tax expense (benefit) has been offset by the utilization of net operating loss carryforwards or additional deferred tax valuation allowance. Therefore, the amounts shown in this schedule have not been adjusted to reflect any tax impact. The Company defines adjusted net income as net income plus or minus certain nonrecurring transactions such as acquisition costs, executive severance costs, significant legal settlements and other interested parties. Such information would not be considered as a substitute for any measure derived in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. | ||||
CONTACT: For more information contact:
Diana P. Diaz Sharps Compliance Corp.
Vice President and Chief Financial Officer
Phone: (713) 660-3547
Email: ddiaz@sharpsinc.com
John Nesbett /Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: (203) 972-9200
Email: jnesbett@institutionalms.com
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