We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Sharps Compliance Corp | NASDAQ:SMED | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.75 | 5.00 | 8.74 | 0 | 01:00:00 |
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2019 |
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to . |
Delaware
|
74-2657168
|
(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
|
9220 Kirby Drive, Suite 500, Houston, Texas
|
77054
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of Each Class
|
Trading Symbol
|
Name of Each Exchange on Which Registered
|
Common Shares, $0.01 Par Value
|
SMED
|
The NASDAQ Capital Market
|
|
|
|
|
|
|
|
|
|
Large Accelerated Filer o
|
|
Accelerated Filer o
|
|
Non-accelerated Filer o
(Do not check if a smaller reporting company)
|
|
Emerging growth company o
|
|
Smaller reporting company ý
|
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
|
||
|
||
|
|
|
PAGE
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended
December 31, |
||||||
|
|
2019
|
|
2018
|
||||
REVENUES
|
|
$
|
14,565
|
|
|
$
|
12,394
|
|
Cost of revenues
|
|
9,693
|
|
|
8,403
|
|
||
GROSS PROFIT
|
|
4,872
|
|
|
3,991
|
|
||
Selling, general and administrative
|
|
3,606
|
|
|
2,959
|
|
||
Depreciation and amortization
|
|
197
|
|
|
205
|
|
||
OPERATING INCOME
|
|
1,069
|
|
|
827
|
|
||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
||
Interest income
|
|
4
|
|
|
8
|
|
||
Interest expense
|
|
(26
|
)
|
|
(23
|
)
|
||
TOTAL OTHER EXPENSE
|
|
(22
|
)
|
|
(15
|
)
|
||
INCOME BEFORE INCOME TAXES
|
|
1,047
|
|
|
812
|
|
||
INCOME TAX EXPENSE (BENEFIT)
|
|
|
|
|
||||
Current
|
|
33
|
|
|
(113
|
)
|
||
Deferred
|
|
44
|
|
|
146
|
|
||
TOTAL INCOME TAX EXPENSE
|
|
77
|
|
|
33
|
|
||
NET INCOME
|
|
$
|
970
|
|
|
$
|
779
|
|
NET INCOME PER COMMON SHARE - Basic and Diluted
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING
NET INCOME PER COMMON SHARE:
|
|
|
|
|
||||
Basic
|
|
16,225
|
|
|
16,100
|
|
||
Diluted
|
|
16,303
|
|
|
16,106
|
|
|
|
Six-Months Ended
December 31, |
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
REVENUES
|
|
$
|
28,164
|
|
|
$
|
22,687
|
|
Cost of revenues
|
|
18,808
|
|
|
15,344
|
|
||
GROSS PROFIT
|
|
9,356
|
|
|
7,343
|
|
||
Selling, general and administrative
|
|
7,118
|
|
|
5,985
|
|
||
Depreciation and amortization
|
|
401
|
|
|
406
|
|
||
OPERATING INCOME
|
|
1,837
|
|
|
952
|
|
||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
||
Interest income
|
|
9
|
|
|
13
|
|
||
Interest expense
|
|
(45
|
)
|
|
(46
|
)
|
||
TOTAL OTHER EXPENSE
|
|
(36
|
)
|
|
(33
|
)
|
||
INCOME BEFORE INCOME TAXES
|
|
1,801
|
|
|
919
|
|
||
INCOME TAX EXPENSE (BENEFIT)
|
|
|
|
|
||||
Current
|
|
56
|
|
|
(109
|
)
|
||
Deferred
|
|
89
|
|
|
179
|
|
||
TOTAL INCOME TAX EXPENSE
|
|
145
|
|
|
70
|
|
||
NET INCOME
|
|
$
|
1,656
|
|
|
$
|
849
|
|
NET INCOME PER COMMON SHARE - Basic and Diluted
|
|
$
|
0.10
|
|
|
$
|
0.05
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING
NET LOSS PER COMMON SHARE: |
|
|
|
|
||||
Basic
|
|
16,185
|
|
|
16,091
|
|
||
Diluted
|
|
16,236
|
|
|
16,098
|
|
|
Common Stock
|
|
Treasury Stock
|
|
Additional
Paid-in Capital |
|
Retained Earnings (Accumulated Deficit)
|
|
Total
Stockholders' Equity |
|||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
Amount
|
|
||||||||||||||||||||
Balances, September 30, 2019
|
|
16,442,328
|
|
|
$
|
165
|
|
|
(295,615
|
)
|
|
$
|
(1,554
|
)
|
|
$
|
29,152
|
|
|
$
|
(819
|
)
|
|
$
|
26,944
|
|
Exercise of stock options
|
|
10,150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
|||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
121
|
|
|||||
Issuance of restricted stock
|
|
72,000
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
970
|
|
|
970
|
|
|||||
Balances, December 31, 2019
|
|
16,524,478
|
|
|
$
|
166
|
|
|
(295,615
|
)
|
|
$
|
(1,554
|
)
|
|
$
|
29,302
|
|
|
$
|
151
|
|
|
$
|
28,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock
|
|
Treasury Stock
|
|
Additional
Paid-in Capital |
|
Accumulated
Deficit |
|
Total
Stockholders' Equity |
|||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
Amount
|
|
||||||||||||||||||||
Balances, September 30, 2018
|
|
16,377,636
|
|
|
$
|
164
|
|
|
(295,615
|
)
|
|
$
|
(1,554
|
)
|
|
$
|
28,722
|
|
|
$
|
(1,649
|
)
|
|
$
|
25,683
|
|
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
90
|
|
|||||
Issuance of restricted stock
|
|
52,992
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
779
|
|
|
779
|
|
|||||
Balances, December 31, 2018
|
|
16,430,628
|
|
|
$
|
165
|
|
|
(295,615
|
)
|
|
$
|
(1,554
|
)
|
|
$
|
28,811
|
|
|
$
|
(870
|
)
|
|
$
|
26,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock
|
|
Treasury Stock
|
|
Additional
Paid-in Capital |
|
Retained Earnings (Accumulated Deficit)
|
|
Total
Stockholders' Equity |
|||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
Amount
|
|
||||||||||||||||||||
Balances, June 30, 2019
|
|
16,433,128
|
|
|
$
|
165
|
|
|
(295,615
|
)
|
|
$
|
(1,554
|
)
|
|
$
|
29,020
|
|
|
$
|
(1,505
|
)
|
|
$
|
26,126
|
|
Exercise of stock options
|
|
19,350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
58
|
|
|||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
225
|
|
|
—
|
|
|
225
|
|
|||||
Issuance of restricted stock
|
|
72,000
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,656
|
|
|
1,656
|
|
|||||
Balances, December 31, 2019
|
|
16,524,478
|
|
|
$
|
166
|
|
|
(295,615
|
)
|
|
$
|
(1,554
|
)
|
|
$
|
29,302
|
|
|
$
|
151
|
|
|
$
|
28,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock
|
|
Treasury Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Deficit
|
|
Total
Stockholders'
Equity
|
|||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
Amount
|
|
||||||||||||||||||||
Balances, June 30, 2018
|
|
16,377,636
|
|
|
$
|
164
|
|
|
(295,615
|
)
|
|
$
|
(1,554
|
)
|
|
$
|
28,621
|
|
|
$
|
(2,057
|
)
|
|
$
|
25,174
|
|
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
191
|
|
|
—
|
|
|
191
|
|
|||||
Issuance of restricted stock
|
|
52,992
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Cumulative effect of new accounting standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
338
|
|
|
338
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
849
|
|
|
849
|
|
|||||
Balances, December 31, 2018
|
|
16,430,628
|
|
|
$
|
165
|
|
|
(295,615
|
)
|
|
$
|
(1,554
|
)
|
|
$
|
28,811
|
|
|
$
|
(870
|
)
|
|
$
|
26,552
|
|
|
|
Six-Months Ended
December 31, |
||||||
|
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
Net income
|
|
$
|
1,656
|
|
|
$
|
849
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
803
|
|
|
807
|
|
||
Bad debt expense
|
|
49
|
|
|
36
|
|
||
Non-cash lease expense
|
|
—
|
|
|
24
|
|
||
Inventory write-off
|
|
13
|
|
|
—
|
|
||
Loss on disposal of property, plant and equipment
|
|
—
|
|
|
18
|
|
||
Stock-based compensation expense
|
|
225
|
|
|
191
|
|
||
Deferred tax expense
|
|
89
|
|
|
179
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||
Accounts receivable
|
|
(3,067
|
)
|
|
(960
|
)
|
||
Inventory
|
|
640
|
|
|
(230
|
)
|
||
Prepaid and other assets
|
|
(213
|
)
|
|
(5
|
)
|
||
Accounts payable and accrued liabilities
|
|
614
|
|
|
956
|
|
||
Contract asset and contract liability
|
|
960
|
|
|
156
|
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
1,769
|
|
|
2,021
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Purchase of property, plant and equipment
|
|
(1,236
|
)
|
|
(281
|
)
|
||
Additions to intangible assets
|
|
(65
|
)
|
|
(203
|
)
|
||
NET CASH USED IN INVESTING ACTIVITIES
|
|
(1,301
|
)
|
|
(484
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Proceeds from exercise of stock options
|
|
58
|
|
|
—
|
|
||
Proceeds from long-term debt
|
|
598
|
|
|
—
|
|
||
Repayments of long-term debt
|
|
(258
|
)
|
|
(278
|
)
|
||
Payments of debt issuance costs
|
|
(50
|
)
|
|
—
|
|
||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
348
|
|
|
(278
|
)
|
||
NET INCREASE IN CASH
|
|
816
|
|
|
1,259
|
|
||
CASH, beginning of period
|
|
4,512
|
|
|
5,155
|
|
||
CASH, end of period
|
|
$
|
5,328
|
|
|
$
|
6,414
|
|
SUPPLEMENTAL CASH FLOW DISCLOSURES:
|
|
|
|
|
|
|
||
Income taxes paid
|
|
$
|
62
|
|
|
$
|
14
|
|
Interest paid on long-term debt
|
|
$
|
42
|
|
|
$
|
46
|
|
NON-CASH INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||
Transfer of equipment to inventory
|
|
$
|
—
|
|
|
$
|
205
|
|
Property, plant and equipment financed through accounts payable
|
|
$
|
(18
|
)
|
|
$
|
57
|
|
|
|
Three-Months Ended December 31,
|
||||||||||||
|
|
2019
|
|
% Total
|
|
2018
|
|
% Total
|
||||||
REVENUES BY SOLUTION:
|
|
|
|
|
|
|
|
|
||||||
Mailbacks
|
|
$
|
8,564
|
|
|
58.8
|
%
|
|
$
|
8,039
|
|
|
64.8
|
%
|
Route-based pickup services
|
|
2,480
|
|
|
17.0
|
%
|
|
2,078
|
|
|
16.8
|
%
|
||
Unused medications
|
|
2,321
|
|
|
15.9
|
%
|
|
1,350
|
|
|
10.9
|
%
|
||
Third party treatment services
|
|
66
|
|
|
0.5
|
%
|
|
78
|
|
|
0.6
|
%
|
||
Other (1)
|
|
1,134
|
|
|
7.8
|
%
|
|
849
|
|
|
6.9
|
%
|
||
Total revenues
|
|
$
|
14,565
|
|
|
100.0
|
%
|
|
$
|
12,394
|
|
|
100.0
|
%
|
|
|
Six-Months Ended December 31,
|
||||||||||||
|
|
2019
|
|
% Total
|
|
2018
|
|
% Total
|
||||||
REVENUES BY SOLUTION:
|
|
|
|
|
|
|
|
|
||||||
Mailbacks
|
|
$
|
15,681
|
|
|
55.7
|
%
|
|
$
|
13,646
|
|
|
60.2
|
%
|
Route-based pickup services
|
|
5,137
|
|
|
18.2
|
%
|
|
4,206
|
|
|
18.5
|
%
|
||
Unused medications
|
|
4,704
|
|
|
16.7
|
%
|
|
2,989
|
|
|
13.2
|
%
|
||
Third party treatment services
|
|
85
|
|
|
0.3
|
%
|
|
180
|
|
|
0.8
|
%
|
||
Other (1)
|
|
2,557
|
|
|
9.1
|
%
|
|
1,666
|
|
|
7.3
|
%
|
||
Total revenues
|
|
$
|
28,164
|
|
|
100.0
|
%
|
|
$
|
22,687
|
|
|
100.0
|
%
|
(1)
|
The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations.
|
•
|
Approximately 50 leases have been identified, substantially all of which are classified as operating leases. For these real estate, field equipment, office equipment and vehicle operating leases, we recognized a new ROU asset and lease liability on our balance sheet.
|
•
|
The Company applied the package of practical expedients to not reassess prior conclusions related to (i) contracts containing leases, (ii) lease classification and (iii) initial direct costs. The Company did not adopt the practical expediency surrounding the use of hindsight to determine lease term, termination and purchase options, or in assessing impairment of ROU assets.
|
•
|
The Company made the accounting policy election to exclude the ROU asset and liability for short-term leases, or leases with terms of twelve months or less, therefore the lease payments will be recorded as an expense on a straight-line basis over the lease term with no ROU asset or lease liability recorded.
|
•
|
The Company has elected to exclude non-lease components of a lease arrangement from the ROU asset and lease liability for certain asset classes such as real estate and field equipment leases but includes non-lease components of a lease arrangement in the ROU asset and lease liability for office equipment and automobiles. Non-lease components for field equipment, which include vehicle maintenance costs which the Company estimates based on third party evidence, are excluded from the ROU asset and lease liability and are expensed each month.
|
|
Three-Months Ended
December 31, 2019 |
|
Six-Months Ended
December 31, 2019 |
||||
Lease cost (1) - operating lease cost - fixed rent expense included in:
|
|
|
|
||||
Cost of revenues
|
$
|
451
|
|
|
$
|
885
|
|
Selling, general and administrative
|
79
|
|
|
182
|
|
||
Total
|
$
|
530
|
|
|
$
|
1,067
|
|
|
Six-Months Ended
December 31, 2019 |
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
1,067
|
|
Non-cash changes to the Operating ROU Asset and Operating Lease Liability
|
|
||
Additions and modifications to ROU asset obtained from new operating lease liabilities
|
$
|
5,126
|
|
Additions to ROU asset obtained from operating lease liabilities upon adoption of new guidance
|
$
|
4,591
|
|
Acquisition loan, monthly payments of $43; maturing March 2022.
|
$
|
1,207
|
|
Equipment loan, monthly principal payments begin August 2020; maturing August 2024, net of debt issuance costs of $50 thousand.
|
327
|
|
|
Real estate loan, monthly principal payments begin August 2020; maturing August 2024.
|
221
|
|
|
Total long-term debt
|
1,755
|
|
|
Less: current portion
|
550
|
|
|
Long-term debt, net of current portion
|
$
|
1,205
|
|
Twelve Months Ending December 31,
|
|
||
2020
|
$
|
550
|
|
2021
|
583
|
|
|
2022
|
238
|
|
|
2023
|
66
|
|
|
2024
|
318
|
|
|
|
$
|
1,755
|
|
|
|
Three-Months Ended
December 31, |
|
Six-Months Ended
December 31, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Stock-based compensation expense included in:
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenues
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
2
|
|
Selling, general and administrative
|
|
120
|
|
|
87
|
|
|
222
|
|
|
189
|
|
||||
Total
|
|
$
|
121
|
|
|
$
|
90
|
|
|
$
|
225
|
|
|
$
|
191
|
|
|
|
Three-Months Ended
December 31, |
|
Six-Months Ended
December 31, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income, as reported
|
|
$
|
970
|
|
|
$
|
779
|
|
|
$
|
1,656
|
|
|
$
|
849
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
|
16,225
|
|
|
16,100
|
|
|
16,185
|
|
|
16,091
|
|
||||
Effect of dilutive stock options
|
|
78
|
|
|
6
|
|
|
51
|
|
|
7
|
|
||||
Weighted average diluted common shares outstanding
|
|
16,303
|
|
|
16,106
|
|
|
16,236
|
|
|
16,098
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
$
|
0.10
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
||||||||
Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive
|
|
616
|
|
|
684
|
|
|
645
|
|
|
684
|
|
|
|
Three-Months Ended
December 31, |
|
Six-Months Ended
December 31, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Options Exercised
|
|
10,150
|
|
|
—
|
|
|
19,350
|
|
|
—
|
|
||||
Proceeds (in thousands)
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
—
|
|
Average exercise price per share
|
|
$
|
2.96
|
|
|
$
|
—
|
|
|
$
|
3.00
|
|
|
$
|
—
|
|
|
|
|
|
December 31, 2019
|
|
June 30, 2019
|
||||||||||||||||||||
|
|
Estimated
Useful Lives |
|
Original
Amount
|
|
Accumulated
Amortization
|
|
Net
Amount
|
|
Original
Amount
|
|
Accumulated
Amortization
|
|
Net
Amount
|
||||||||||||
Customer relationships
|
|
7 years
|
|
$
|
3,007
|
|
|
$
|
(1,565
|
)
|
|
$
|
1,442
|
|
|
$
|
3,007
|
|
|
$
|
(1,348
|
)
|
|
$
|
1,659
|
|
Permits
|
|
6 - 15 years
|
|
1,769
|
|
|
(542
|
)
|
|
1,227
|
|
|
1,704
|
|
|
(492
|
)
|
|
1,212
|
|
||||||
Patents
|
|
5 - 17 years
|
|
420
|
|
|
(304
|
)
|
|
116
|
|
|
420
|
|
|
(296
|
)
|
|
124
|
|
||||||
Trade name
|
|
7 years
|
|
270
|
|
|
(135
|
)
|
|
135
|
|
|
270
|
|
|
(116
|
)
|
|
154
|
|
||||||
Non-compete
|
|
5 years
|
|
117
|
|
|
(82
|
)
|
|
35
|
|
|
117
|
|
|
(70
|
)
|
|
47
|
|
||||||
Total intangible assets, net
|
|
|
|
$
|
5,583
|
|
|
$
|
(2,628
|
)
|
|
$
|
2,955
|
|
|
$
|
5,518
|
|
|
$
|
(2,322
|
)
|
|
$
|
3,196
|
|
|
|
December 31, 2019
|
|
June 30, 2019
|
||||
Raw materials
|
|
$
|
1,243
|
|
|
$
|
1,273
|
|
Finished goods
|
|
2,920
|
|
|
3,543
|
|
||
Total inventory
|
|
4,163
|
|
|
4,816
|
|
||
Less: current portion
|
|
3,202
|
|
|
3,770
|
|
||
Inventory, net of current portion
|
|
$
|
961
|
|
|
$
|
1,046
|
|
|
|
Three-Months Ended December 31,
|
|
Six-Months Ended December 31,
|
||||||||||||||||||||||||
|
|
2019
|
|
%
|
|
2018
|
|
%
|
|
2019
|
|
%
|
|
2018
|
|
%
|
||||||||||||
Revenues
|
|
$
|
14,565
|
|
|
100.0
|
%
|
|
$
|
12,394
|
|
|
100.0
|
%
|
|
$
|
28,164
|
|
|
100.0
|
%
|
|
$
|
22,687
|
|
|
100.0
|
%
|
Cost of revenues
|
|
9,693
|
|
|
66.5
|
%
|
|
8,403
|
|
|
67.8
|
%
|
|
18,808
|
|
|
66.8
|
%
|
|
15,344
|
|
|
67.6
|
%
|
||||
Gross profit
|
|
4,872
|
|
|
33.5
|
%
|
|
3,991
|
|
|
32.2
|
%
|
|
9,356
|
|
|
33.2
|
%
|
|
7,343
|
|
|
32.4
|
%
|
||||
SG&A expense
|
|
3,606
|
|
|
24.8
|
%
|
|
2,959
|
|
|
23.9
|
%
|
|
7,118
|
|
|
25.3
|
%
|
|
5,985
|
|
|
26.4
|
%
|
||||
Depreciation and amortization
|
|
197
|
|
|
1.4
|
%
|
|
205
|
|
|
1.7
|
%
|
|
401
|
|
|
1.4
|
%
|
|
406
|
|
|
1.8
|
%
|
||||
Operating Income
|
|
1,069
|
|
|
7.3
|
%
|
|
827
|
|
|
6.7
|
%
|
|
1,837
|
|
|
6.5
|
%
|
|
952
|
|
|
4.2
|
%
|
||||
Total other expense
|
|
(22
|
)
|
|
(0.2
|
)%
|
|
(15
|
)
|
|
(0.1
|
)%
|
|
(36
|
)
|
|
(0.1
|
)%
|
|
(33
|
)
|
|
(0.1
|
)%
|
||||
Income before income taxes
|
|
1,047
|
|
|
7.2
|
%
|
|
812
|
|
|
6.6
|
%
|
|
1,801
|
|
|
6.4
|
%
|
|
919
|
|
|
4.1
|
%
|
||||
Income tax expense
|
|
77
|
|
|
0.5
|
%
|
|
33
|
|
|
0.3
|
%
|
|
145
|
|
|
0.5
|
%
|
|
70
|
|
|
0.3
|
%
|
||||
Net Income
|
|
$
|
970
|
|
|
6.7
|
%
|
|
$
|
779
|
|
|
6.3
|
%
|
|
$
|
1,656
|
|
|
5.9
|
%
|
|
$
|
849
|
|
|
3.7
|
%
|
|
|
Three-Months Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
Variance
|
||||||
BILLINGS BY MARKET:
|
|
|
|
|
|
|
||||||
Professional
|
|
$
|
4,365
|
|
|
$
|
3,828
|
|
|
$
|
537
|
|
Retail
|
|
4,218
|
|
|
4,152
|
|
|
66
|
|
|||
Home Health Care
|
|
2,606
|
|
|
2,161
|
|
|
445
|
|
|||
Pharmaceutical Manufacturer
|
|
2,274
|
|
|
842
|
|
|
1,432
|
|
|||
Assisted Living
|
|
681
|
|
|
620
|
|
|
61
|
|
|||
Government
|
|
489
|
|
|
543
|
|
|
(54
|
)
|
|||
Environmental
|
|
66
|
|
|
78
|
|
|
(12
|
)
|
|||
Other
|
|
231
|
|
|
249
|
|
|
(18
|
)
|
|||
Subtotal
|
|
14,930
|
|
|
12,473
|
|
|
2,457
|
|
|||
GAAP Adjustment *
|
|
(365
|
)
|
|
(79
|
)
|
|
(286
|
)
|
|||
Revenue Reported
|
|
$
|
14,565
|
|
|
$
|
12,394
|
|
|
$
|
2,171
|
|
|
|
Three-Months Ended December 31,
|
||||||||||||
|
|
2019
|
|
% Total
|
|
2018
|
|
% Total
|
||||||
BILLINGS BY SOLUTION:
|
|
|
|
|
|
|
|
|
||||||
Mailbacks
|
|
$
|
8,929
|
|
|
59.9
|
%
|
|
8,118
|
|
|
65.1
|
%
|
|
Route-based pickup services
|
|
2,480
|
|
|
16.6
|
%
|
|
2,078
|
|
|
16.7
|
%
|
||
Unused medications
|
|
2,321
|
|
|
15.5
|
%
|
|
1,350
|
|
|
10.8
|
%
|
||
Third party treatment services
|
|
66
|
|
|
0.4
|
%
|
|
78
|
|
|
0.6
|
%
|
||
Other (1)
|
|
1,134
|
|
|
7.6
|
%
|
|
849
|
|
|
6.8
|
%
|
||
Total billings
|
|
14,930
|
|
|
100.0
|
%
|
|
12,473
|
|
|
100.0
|
%
|
||
GAAP adjustment (2)
|
|
(365
|
)
|
|
|
|
|
(79
|
)
|
|
|
|
||
Revenue reported
|
|
$
|
14,565
|
|
|
|
|
|
$
|
12,394
|
|
|
|
|
(1)
|
The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items.
|
(2)
|
Represents the net impact of the revenue recognition adjustments required to arrive at reported GAAP revenue. Customer billings include all invoiced amounts associated with products shipped or services rendered 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, (ii) recognition of certain revenue associated with products returned for treatment and destruction and (iii) provisions for certain rebates, product returns and discounts to customers which are accounted for as reductions in sales in the same period to related sales are recorded. Most of the difference between customer billings and GAAP revenue is reflected in the Company’s balance sheet as Contract Liability.
|
|
|
Six-Months Ended December 31,
|
||||||||||
|
|
(Unaudited)
|
||||||||||
|
|
2019
|
|
2018
|
|
Variance
|
||||||
BILLINGS BY MARKET:
|
|
|
|
|
|
|
||||||
Professional
|
|
$
|
8,500
|
|
|
$
|
7,502
|
|
|
$
|
998
|
|
Retail
|
|
8,360
|
|
|
6,412
|
|
|
1,948
|
|
|||
Home Health Care
|
|
5,923
|
|
|
4,088
|
|
|
1,835
|
|
|||
Pharmaceutical Manufacturer
|
|
3,211
|
|
|
1,650
|
|
|
1,561
|
|
|||
Assisted Living
|
|
1,305
|
|
|
1,265
|
|
|
40
|
|
|||
Government
|
|
1,253
|
|
|
1,140
|
|
|
113
|
|
|||
Environmental
|
|
85
|
|
|
181
|
|
|
(96
|
)
|
|||
Other
|
|
512
|
|
|
539
|
|
|
(27
|
)
|
|||
Subtotal
|
|
29,149
|
|
|
22,777
|
|
|
6,372
|
|
|||
GAAP Adjustment *
|
|
(985
|
)
|
|
(90
|
)
|
|
(895
|
)
|
|||
Revenue Reported
|
|
$
|
28,164
|
|
|
$
|
22,687
|
|
|
$
|
5,477
|
|
|
|
Six-Months Ended December 31,
|
||||||||||||
|
|
2019
|
|
% Total
|
|
2018
|
|
% Total
|
||||||
BILLINGS BY SOLUTION:
|
|
|
|
|
|
|
|
|
||||||
Mailbacks
|
|
$
|
16,666
|
|
|
57.2
|
%
|
|
$
|
13,736
|
|
|
60.3
|
%
|
Route-based pickup services
|
|
5,137
|
|
|
17.6
|
%
|
|
4,206
|
|
|
18.5
|
%
|
||
Unused medications
|
|
4,704
|
|
|
16.1
|
%
|
|
2,989
|
|
|
13.1
|
%
|
||
Third party treatment services
|
|
85
|
|
|
0.3
|
%
|
|
180
|
|
|
0.8
|
%
|
||
Other (1)
|
|
2,557
|
|
|
8.8
|
%
|
|
1,666
|
|
|
7.3
|
%
|
||
Total billings
|
|
$
|
29,149
|
|
|
100.0
|
%
|
|
$
|
22,777
|
|
|
100.0
|
%
|
GAAP adjustment (2)
|
|
(985
|
)
|
|
|
|
|
(90
|
)
|
|
|
|
||
Revenue reported
|
|
$
|
28,164
|
|
|
|
|
|
$
|
22,687
|
|
|
|
|
(1)
|
The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items.
|
(2)
|
Represents the net impact of the revenue recognition adjustment required to arrive at reported GAAP revenue. Customer billings include all invoiced amounts associated with products shipped or services rendered 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, (ii) recognition of certain revenue associated with products returned for treatment and destruction and (iii) provisions for certain product returns and discounts to customers which are accounted for as reductions in sales in the same period to related sales are recorded. The difference between customer billings and GAAP revenue is reflected in the Company’s balance sheet as Contract Liability.
|
•
|
A large professional market that consists of dentists, veterinarians, clinics, private practice physicians, urgent care facilities, ambulatory surgical centers and other healthcare facilities. This regulated market consists of small to medium quantity generators of medical, pharmaceutical and hazardous waste where we can offer a lower cost to service with solutions to match individual facility needs. The Company addresses this market from two directions: (i) field sales which focus on larger-dollar and nationwide opportunities where we can integrate the route-based pickup service along with our mailback solutions to create a comprehensive medical waste management offering and (ii) inside and online sales which focus on the individual or small group professional offices, government agencies, smaller retail pharmacies and clinics and assisted living/long-term care facilities. The Company is able to compete more aggressively in the medium quantity generator market with the addition of route-based services where the mailback may not be as cost effective. The Company’s route-based business provides direct service to areas encompassing over 70% of the U.S. population.
|
•
|
In July 2015 and July 2016, the Company acquired three route-based pickup service companies, which strengthened the Company's position in the Northeast. Through a combination of acquisition and organic growth, the Company now offers route-based pickup services in a twenty-four (24) state region of the South, Southeast and Northeast portions of the United States. To facilitate operational efficiencies, the Company has opened transfer stations and offices in strategic locations. The Company directly serves more than 13,100 customer locations with route-based pickup services. With the addition of these route-based pickup regions and the network of medical and hazardous waste service providers servicing the entire U.S., the Company offers customers a blended product portfolio to effectively manage multi-site and multi-sized locations, including those that generate larger quantities of waste. The network has had a significant positive impact on our pipeline of sales opportunities - over 60% of this pipeline is attributable to opportunities providing comprehensive waste management service offerings where both the mailback and pickup service are integrated into the offering.
|
•
|
The changing demographics of the U.S. population – according to the U.S. Census Bureau, 2012 Population Estimates and National Projections, one out of five Americans will be 65 years or older by 2030, which will increase the need for cost-effective medical waste management solutions, especially in the long-term care and home healthcare markets. With multiple solutions for managing regulated healthcare-related waste, the Company delivers value as a single-source provider with blended mailback and route-based pickup services matched to the waste volumes of each facility.
|
•
|
The shift of healthcare from traditional settings to the retail pharmacy and clinic markets, where the Company focuses on driving increased promotion of the Sharps Recovery System. According to the Centers for Disease Control ("CDC"), 44.9% of adults received a flu shot and 32.2% of flu shots for adults were administered in a retail clinic in 2018. Over the flu seasons from 2011 to 2019, the Company saw growth in six years of 10% to 36%, including a 30% increase in 2019, and declines in three years of 13% to 17%. Despite the volatility, Sharps believes the Retail market should continue to contribute to long-term growth for the Company as consumers increasingly use alternative sites, such as retail pharmacies, to obtain flu and other immunizations.
|
•
|
The passage of regulations for ultimate user medication disposal allows the Company to offer new solutions (MedSafe and TakeAway Medication Recovery System envelopes) that meet the regulations for ultimate user controlled substances disposal (Schedules II-V) to retail pharmacies. Additionally, with the new regulations, the Company is able to provide the MedSafe and TakeAway Medication Recovery Systems to assisted living and hospice to address a long standing issue within long-term care.
|
•
|
Local, state and federal agencies have growing needs for solutions to manage medical and pharmaceutical waste — the Company's Sharps Recovery System is ideal for as-needed disposal of sharps and other small quantities of medical waste generated within government buildings, schools and communities. The Company also provides TakeAway Medication Recovery System envelopes and MedSafe solutions to government agencies in need of proper and regulatory compliant medication disposal. The federal government, state agencies and non-profits are recognizing the need to fund programs that address prevention as it pertains to the opioid crisis. MedSafe and mailback envelopes for proper medication disposal are being funded for prevention programs.
|
•
|
With an increased number of self-injectable medication treatments and local regulations, the Company believes its flagship product, the Sharps Recovery System, continues to offer the best option for proper sharps disposal at an affordable price. The Company delivers comprehensive services to pharmaceutical manufacturers that sell high-dollar, self-injectable medications, which include data management, compliance reporting, fulfillment, proper containment with disposal, branding and conformity with applicable regulations. In addition, the Company provides self-injectors with online and retail purchase options of sharps mailback systems, such as the Sharp Recovery System and Complete Needle Collection & Disposal System, respectively.
|
•
|
A heightened interest by many commercial companies who are looking to improve workplace safety with proper sharps disposal and unused medication disposal solutions — the Company offers a variety of services to meet these needs, including the Sharps Secure Needle Disposal System, Sharps Recovery System, Spill Kits and TakeAway Medication Recovery System envelopes.
|
•
|
The Company continually develops new solution offerings such as ultimate user medication disposal (MedSafe and TakeAway Medication Recovery System), mailback services for DEA registrant expired inventory of controlled substances (TakeAway Medication Recovery System DEA Reverse Distribution for Registrants) and shipback services for collection and recycling of single-use medical devices from surgical centers and other healthcare facilities (TakeAway Recycle System).
|
•
|
The Company’s strong financial position with a cash balance of $5.3 million, debt of $1.8 million and additional availability under the Credit and Loan Agreements.
|
|
REGISTRANT:
|
|
SHARPS COMPLIANCE CORP.
|
|
|
Dated: February 4, 2020
|
By: /s/ DAVID P. TUSA
|
|
David P. Tusa
|
|
Chief Executive Officer and President
|
|
(Principal Executive Officer)
|
Dated: February 4, 2020
|
By: /s/ DIANA P. DIAZ
|
|
Diana P. Diaz
|
|
Vice President and Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
1 Year Sharps Compliance Chart |
1 Month Sharps Compliance Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions