LIVINGSTON, NJ--(Marketwired - August 08, 2013) - Milestone Scientific Inc. (MLSS), the recognized leader in advanced, computer-controlled injection technologies, today announced financial results and provided a business update for the three and six months ended June 30, 2013.
Leonard Osser, Chief Executive Officer of Milestone Scientific stated, "We are pleased to report improved STA instrument sales, increased gross margins, and our second consecutive quarter of profitability. Domestic STA instrument sales increased 53.0%, reflecting the success of our new sales efforts. We have also seen an increase in international instrument sales of 19.3% for the second quarter of 2013. Offsetting this growth, we saw a decline in disposable handpiece sales as customers pre-purchased handpieces last quarter in advance of a price increase we implemented earlier this year. We view the growth in instrument sales as a positive indicator."
"During the second quarter, we announced a significant strategic partnership with Tri-anim Health Services, Inc., a division of Sarnova Inc., one of the nation's largest specialty distributors of healthcare products. We look forward to working closely with Tri-anim as they have well established sales channels and are the largest distributor to birthing hospitals across the U.S. This partnership is yet another validation of our technology. The epidural market in the U.S. alone is a multi-billion dollar industry, with high rates of complications and morbidity. Our goal is to bring this product to market as quickly and efficiently as possible, and we believe Tri-anim is an ideal partner."
Revenue for the three months ended June 30, 2013 and June 30, 2012 was approximately $2.3 million. Domestic instrument sales increased by $132,848 or 53.0% in the second quarter of 2013 versus the same period in 2012. Domestic handpiece sales decreased by $101,692, or 13% in 2013 over 2012 due to customers pre-purchasing handpieces during the first quarter of 2013 in advance of a planned price increase implemented earlier this year. On the international front, instrument sales increased by $59,436 or 19.3% in the second quarter of 2013 versus the same period in 2012. International handpiece sales declined $151,914 due to the aforementioned pre-purchasing of handpieces in the first quarter of 2013. Gross profit for the second quarter of 2013 was $1.5 million or 67.3% of revenue versus $1.5 million or 63.3% of revenue for the second quarter of 2012. Operating income for the second quarter of 2013 was $151,113 versus a loss of $53,607 for the second quarter of 2012. Net income for the second quarter of 2013 was $74,009, or $0.00 per share, versus a loss of $164,541, or $(0.01) per share for the comparable period in 2012. Net income for the second quarter of 2013 reflects the increase in sales and gross profit, as well as a 9.9% decrease in selling, general and administrative expenses.
Revenue for the six months ended June 30, 2013 was $4.8 million versus $4.2 million for the six months ended June 30, 2012. In the domestic market, total revenue was $2.4 million, a 24.4% increase versus the same period in 2012. On the international front, total revenue increased by $52,627 to $2.4 million versus $2.3 million for the same period in 2012. Gross profit for the six months ended June 30, 2013 was $3.2 million or 67.4% of revenue versus $2.7 million or 64.3% of revenue for the six months ended June 30, 2012. Operating income for the six months ended June 30, 2013 was $318,873 versus a loss of $286,757 for the six months ended June 30, 2012. Net income for the six months ended June 30, 2013 was $224,754, or $0.01 per share, versus a loss of $519,722, or $(0.03) per share, for the comparable period in 2012. Net income for the six months ended June 30, 2013 reflects the increase in sales and gross profit, as well as decreased selling, general and administrative expenses.
Milestone's executive management team will host a teleconference on Thursday, August 8, 2013 at 4:30 P.M. Eastern Time to discuss the company's financial results. The conference call can be accessed via telephone by dialing toll free 888-561-1721. For those unable to participate at that time, a replay of the call can be accessed by dialing 800-406-7325 and entering the pass code 4634513. The replay will be available for 90 days.
About Milestone Scientific Inc.
Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled drug delivery technologies for the medical and dental markets and currently sells its award-winning products through a global distribution network serving North and South America, Asia, Africa, Europe and the Middle East. For more information on the STA Single Tooth Anesthesia System® instrument and other innovative Milestone products, please visit the Company's web site found at www.milestonescientific.com.
This press release contains forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report for the year ended December 31, 2012. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
|MILESTONE SCIENTIFIC INC.|
|CONDENSED STATEMENTS OF OPERATIONS|
|Three Months Ended June 30,||Six Months Ended June 30,|
|Cost of products sold||744,108||854,005||1,556,152||1,516,951|
|Selling, general and administrative expenses||1,340,129||1,487,076||2,728,031||2,939,326|
|Research and development expenses||42,885||39,502||164,722||78,814|
|Total operating expenses||1,383,014||1,526,578||2,892,753||3,018,140|
|Income (loss) from operations||151,113||(53,607||)||318,873||(286,757||)|
|Other income (expenses)|
|Interest-Amortization of debt issuance||-||(1,532||)||-||(3,065||)|
|Loss on Earnings from Medical Joint Venture||(47,093||)||(46,084||)||(47,093||)||(124,179||)|
|Total other expenses||(77,104||)||(110,934||)||$||(94,119||)||$||(232,965||)|
|Net income (loss) applicable to common stockholders||$||74,009||$||(164,541||)||$||224,754||$||(519,722||)|
|Net income (loss) per share applicable to common stockholders -|
|Weighted average shares outstanding and to be issued -|
MILESTONE SCIENTIFIC INC.
CONDENSED BALANCE SHEETS
|June 30, 2013||December 31, 2012|
|Cash and cash equivalents||$||171,640||$||165,249|
|Accounts receivable, net of allowance for doubtful accounts of $73,849 as of June 30, 2013||1,061,135||978,982|
|and $179,259 as of December 31, 2012|
|Advances on contracts||508,469||476,969|
|Prepaid expenses and other current assets||161,155||239,061|
|Total current assets||2,759,519||2,498,822|
|Accounts receivable-long term, net of allowance for doubtful accounts of $167,971 as of December 31, 2012||-||119,201|
|Advances on contracts||2,163,907||2,350,477|
|Investment in Milestone Education LLC||50,000||-|
|Furniture, Fixtures & Equipment net of accumulated depreciation of $467,483 as of June 30, 2013 and $458,708 as of December 31, 2012||30,640||36,624|
|Patents, net of accumulated amortization of $459,380 as of June 30, 2013 and $420,556 as of December 31, 2012||626,402||648,662|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued interest on Notes Payable||405,202||356,563|
|Accrued expenses and other payables||614,681||581,407|
|Total current liabilities||2,525,672||3,274,564|
|Total long-term liabilities||450,000||450,000|
|Commitments and Contingencies|
|Common stock, par value $.001; authorized 50,000,000 shares; 16,929,578 shares issued|
|1,655,317 shares to be issued and 16,896,245 shares outstanding as of June 30, 2013;|
|16,563,306 shares issued, 1,635,709 shares to be issued, and 16,529,973 shares outstanding as of December 31, 2012||18,585||18,199|
|Additional paid-in capital||65,060,658||64,560,224|
|Treasury stock, at cost, 33,333 shares||(911,516||)||(911,516||)|
|Total stockholders' equity||2,662,113||1,936,539|
|Total liabilities and stockholders' equity||$||5,637,785||$||5,661,103|