Mts Medications (AMEX:MPP)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Mts Medications Charts. Click Here for more Mts Medications Charts.](/p.php?pid=staticchart&s=A%5EMPP&p=8&t=15)
MTS Medication Technologies (AMEX:MPP) (www.mts-mt.com)
today announced results for the third quarter and nine months ended
December 31, 2007.
Third Quarter Results
Net sales for the third quarter increased 18.4% to $14.7 million from
$12.4 million in the same period the prior year. Net sales in the U.S.
from consumable products and prepackaging equipment in the third quarter
increased 11.9% compared with the same period the prior year. Third
quarter net sales from OnDemand® and MedLocker™
systems and service contracts increased 37.8%, and net sales in Europe
were up 51.5% in the third quarter compared with the prior year.
Net income before preferred stock dividends declined to $611,000 or $.09
per diluted common share from $711,000 or $0.10 per diluted common share
in the same period the prior year. In addition, in the prior year’s
third quarter, the Company redeemed all its outstanding shares of
convertible preferred stock and recorded a one-time constructive
dividend of $4.5 million or $0.73 per diluted common share.
Gross margin for the third quarter was 38.3% compared with 38.1% in the
same period in the prior year. Although overhead costs related to our
automation products and service initiatives increased in the third
quarter of this year compared with the same period the prior year,
additional product margin contributed by increased sales resulted in a
similar gross profit margin in each period.
SG&A expenses for the third quarter were $3.7 million compared with $2.9
million for the same period of the prior year. SG&A expenses increased
primarily due to sales and administration costs related to German
operations, added personnel costs in the UK, shared-based compensation
expenses and additional personnel and personnel related costs in the
U.S. In addition, the Company incurred increased costs for consulting
services related to our intellectual property and evaluation of new
markets.
Operating profit for the third quarter was $1.2 million or 8.1% compared
with $1.2 million or 9.9% in the same period the prior year. Operating
profit margin declined due to higher SG&A expenses as well as increased
depreciation and amortization costs associated with capital expenditures
that were made during the current fiscal year.
Nine-Month Results
Net sales for the nine months ended December 31, 2007 increased 18.6% to
$43.7 million from $36.8 million in the same period the prior year. Net
income before preferred stock dividends increased to $1.9 million, or
$.28 per diluted common share, from $1.8 million, or $0.25 per diluted
common share, in the prior year. In addition, in the prior year
nine-month period, the Company redeemed all its outstanding shares of
convertible preferred stock and recorded a one-time constructive
dividend of $4.5 million or $0.73 per diluted common share.
Net sales in the U.S. from consumable products and prepackaging
equipment, for the nine months ended December 31, 2007, increased 11.8%
compared with the same period the prior year. Net sales from OnDemand
and MedLocker systems and service contracts increased 49.2%, and net
sales in Europe increased 46.9% in the nine months ended December 31,
2007 compared with the same period the prior year.
Gross margin for the nine-month period ended December 31, 2007 was 38.9%
compared with 37.9% in the same period the prior year. The increased
gross margin resulted primarily from increased product margin resulting
from increased net sales. That additional product margin was partially
offset by increased overhead expenses primarily related to automation
products and service costs.
SG&A expenses for the nine-month period increased to $11.4 million from
$9.1 million in the same period the prior year. The increase in SG&A
expenses resulted primarily from sales and administration costs related
to German operations, added personnel costs in the UK and additional
personnel and personnel related costs in the U.S. primarily associated
with our automation products and service initiatives.
Operating profit for the nine-month period was $3.7 million or 8.4%
compared with $3.1 million or 8.3% in the same period the prior year.
Although revenue and gross profit increased during the nine-month period
this year compared with the same period the prior year, increased SG&A
expenses and depreciation and amortization costs resulted in similar
operating margins in each period.
Todd E. Siegel, President and Chief Executive Officer, said, “Our
financial results for the third quarter were positively impacted by the
continued success we enjoy in Europe. Our U.K. operations are performing
up to our expectations and our German operations are exceeding our
Fiscal Year 2008 plan, both in terms of revenue and profitability. We
believe these strong results in Europe coupled with continued growth in
our core long-term care market in the U.S. and the progress of our
OnDemand machine initiative with our largest customer, all contribute to
a very optimistic outlook for our long term success.”
“We were also pleased to announce earlier this
year that we completed a refinancing of our long-term debt and have put
in place a revolving line of credit with Wachovia Bank that we believe
will provide us with an appropriate amount of borrowing capability to
meet our working capital needs as we continue to grow.”
Siegel continued, “In May 2007, we entered
into an agreement with our largest customer to provide sixteen OnDemand
Express II™ and eight AccuFlex™
machines over an eighteen-month period. To date, we have delivered three
Express IIs and three AccuFlex machines to various pharmacy sites
throughout the country. Since these machines were delivered, we have
worked with our customer to install, train and generally acquaint the
pharmacy personnel with the capabilities of the machines, as well as the
requirements of the pharmacy to properly operate the machines. In
December, we mutually decided to suspend delivery of additional machines
and concentrate our efforts on completion of training and development of
the acceptance criteria needed to evaluate the six machines that had
already been delivered.”
“We are developing a revised delivery
schedule for the remaining machines and anticipate completion of
deliveries within the eighteen-month period originally announced. In
addition, we have developed an appropriate methodology to evaluate the
performance of the machines in order for acceptance to be met.
Acceptance of the machines by our customer is required in order for us
to record the revenue and gross profit associated with each machine.”
Siegel concluded, “We are optimistic that the
machines that have been delivered will be accepted in our fourth
quarter, which will allow us to record approximately $3 million in
revenue and the associated gross profit.”
Fourth Quarter Outlook
The Company’s ability to achieve the
financial results for the full fiscal year ending on March 31, 2008 that
we previously forecasted will be dependent on the number of OnDemand
machines accepted by our largest customer, our ability to sell and
install other OnDemand machines and the ongoing costs associated with
our automation sales and services.
Notice of Conference Call
Management of the Company will host a conference call Thursday, February
7, 2008 at 8:30 A.M. EST. To access the conference call, please
telephone 888-459-5609 and enter 32568259 for the conference ID number.
A digital replay will be available and may be accessed by visiting the
Company’s web site at www.mts-mt.com.
About the Company
Founded in 1984, MTS Medication Technologies (www.mts-mt.com)
is an international provider of medication compliance packaging systems
designed to improve medication dispensing and administration. MTS
manufactures automated packaging machines and related consumables for
prescription medications and nutritional supplements. The Company serves
more than 8,000 pharmacies worldwide.
This press release contains forward-looking statements within the
meaning of that term in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Additional
written or oral forward-looking statements may be made by the Company
from time to time, in filings with the Securities and Exchange
Commission or otherwise. Statements contained herein that are not
historical facts are forward-looking statements made pursuant to the
safe harbor provisions described above. Forward-looking
statements may include, but are not limited to, projections of revenue,
income or losses, the value of contracts, capital expenditures, plans
for future operations, the elimination of losses under certain programs,
financing needs or plans, compliance with financial covenants in loan
agreements, plans for sale of assets or businesses, plans relating to
products or services of the Company, assessments of materiality,
predictions of future events and the effects of pending and possible
litigation, as well as assumptions relating to the foregoing. In
addition, when used in this discussion, the words “anticipates”,
“estimates”, “expects”,
“intends”, “believes”,
“plans” and
variations thereof and similar expressions are intended to identify
forward-looking statements. In particular, all statements
regarding the continuing of any trend or expected sales are
forward-looking statements, as is any statement regarding the potential
growth of our core business and incremental revenue from our OnDemand
and MedLocker products. In particular, there is uncertainty regarding
whether the Company's largest customer will accept a number of OnDemand
machines that have been delivered.
Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified based on
current expectations. Consequently, future events and actual
results could differ materially from those set forth in, contemplated
by, or underlying the forward-looking statements contained herein. Statements
in the Press Release describe factors, among others, that could
contribute to or cause such differences. Other factors that could
contribute to or cause such differences include, but are not limited to,
unanticipated increases in operating costs, changes in the United
Kingdom healthcare regulatory system, labor disputes, customer rejection
of any installed OnDemand machine, market acceptance of MedLocker,
developments relating to customer initiatives, capital requirements,
increases in borrowing costs, product demand, pricing, market
acceptance, hurricanes, intellectual property rights and litigation,
risks in product and technology development and other risk factors
detailed in the Company’s Securities and
Exchange Commission filings.
Readers are cautioned not to place undue reliance on any
forward-looking statements contained herein, which speak only as of the
date hereof. The Company undertakes no obligation to publicly
release the result of any revisions of these forward-looking statements
that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unexpected events.
MTS MEDICATION TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
ASSETS
December 31, 2007
March 31, 2007
(Unaudited)
Current Assets:
Cash
$
2,499
$
292
Restricted Cash
751
-
Accounts Receivable, Net
7,806
9,194
Inventories, Net
11,827
5,767
Prepaids and Other, Net
2,005
926
Deferred Tax Asset
350
271
Total Current Assets
25,238
16,450
Property and Equipment
7,910
5,344
Goodwill
770
740
Other Intangible Assets
850
808
Other Assets
2,279
2,507
Total Assets
$
37,047
$
25,849
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable and Accrued Liabilities
$
7,605
$
7,024
Customer Deposits
3,461
-
Current Maturities of Long-Term Debt
84
2,447
Current Maturities of Related Party Note Payable
190
328
Total Current Liabilities
11,340
9,799
Long-Term Debt, Less Current Maturities
11,961
5,395
Related Party Note Payable, Less Current Maturities
-
106
Other Liabilities
1,011
283
Deferred Tax Liability
576
553
Total Liabilities
24,888
16,136
Stockholders' Equity:
Common Stock
64
62
Capital In Excess of Par Value
9,886
8,736
Accumulated Other Comprehensive Income
329
254
Retained Earnings
2,208
989
Treasury Stock
(328
)
(328
)
Total Stockholders' Equity
12,159
9,713
Total Liabilities and Stockholders' Equity
$
37,047
$
25,849
MTS MEDICATION TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands; Except Earnings Per Share Amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
December 31,
December 31,
2007
2006
2007
2006
Net Sales
$
14,720
$
12,435
$
43,658
$
36,807
Costs and Expenses:
Cost of Sales
9,075
7,695
26,691
22,857
Selling, General and Administrative
3,738
2,920
11,361
9,123
Depreciation and Amortization
719
594
1,919
1,755
Total Costs and Expenses
13,532
11,209
39,971
33,735
Operating Profit
1,188
1,226
3,687
3,072
Interest Expense
184
67
501
183
Income Before Taxes
1,004
1,159
3,186
2,889
Income Tax Expense
393
448
1,267
1,121
Net Income Before Preferred Stock Dividends
611
711
1,919
1,768
Convertible Preferred Stock Dividends
-
39
-
151
Constructive Dividend on Convertible Preferred Stock
-
4,504
-
4,504
Net Income (Loss) Available to Common Stockholders
$
611
$
(3,832
)
$
1,919
$
(2,887
)
Net Income (Loss) Per Basic Common Share
$
0.10
$
(0.63
)
$
0.30
$
(0.48
)
Net Income (Loss) Per Diluted Common Share
$
0.09
$
(0.63
)
$
0.28
$
(0.48
)
Weighted Average Shares Outstanding - Basic
6,393
6,082
6,324
6,042
Weighted Average Shares Outstanding - Diluted
6,809
6,082
6,763
6,042