Date: April 25, 2006
Source: Business Wire
Sharps Compliance Corp. and subsidiaries (OTCBB: SCOM) ("Sharps" or the "Company"), leading providers of cost-effective medical waste disposal solutions for industry and consumers, today announced its operating results for the third quarter of fiscal year 2006.
For the three-months ended March 31, 2006, the Company reported revenues of $2.5 million versus revenues for the corresponding quarter of the prior fiscal year of $2.2 million, an increase of 13%.
For the nine-months ended March 31, 2006, the Company generated revenues of $7.9 million versus revenues for the prior year corresponding quarter of $6.9 million, a 14% increase.
The Company generated a gross margin of 42% for the three and nine months ended March 31, 2006. The Company's S, G & A expenses increased by 10% for the nine months ended March 31, 2006 when compared to the corresponding period of the prior year. The increase in the S, G & A is attributable to additional sales-related expenses and professional fees.
The Company reported essentially break-even results for the quarter ended March 31, 2006 versus a $0.1 million, or $0.01 per share, net loss for the quarter ended March 31, 2005.
For the nine months ended March 31, 2006, the company reported net income of $0.3 million, or $0.03 per share, versus essentially break-even results for the prior year corresponding nine-month period. The increase in net income is a result of the 14% increase in the revenues for the corresponding period, partially offset by an increase in S, G & A, both of which are discussed above.
Corporate and Business Developments
New Bank Line of Credit and Relationship
In March 2006, the Company announced the execution of a $1.5 million Credit Agreement and new banking relationship with JPMorgan Chase Bank, N.A. The Credit Agreement provides for a revolving line of credit (the "Line of Credit") in the principal amount of $1.5 million. The proceeds of the Line of Credit may be used for working capital, letters of credit, acquisitions and general corporate purposes.
The Company considers its new banking relationship as a significant milestone in its history as well as recognition by the financial community of the significant growth opportunities available to Sharps. The Line of Credit is structured to provide the Company with additional financial support for its planned organic growth as well as capital to support potential future acquisitions.
Three-year Exclusive Agreement with InterFit Health
In April 2006, the Company announced, the execution of a three-year exclusive agreement with InterFit Health to provide the Sharps Disposal By Mail System(R) to its health screening and RediClinic operations. Since 1989, InterFit Health has provided individuals with easy access to convenient, accurate and affordable health screening and other personal health management services. Today, InterFit is the largest provider of retail health screening services in the United States while its RediClinics are a leader in convenient care.
Commenting on the third quarter, Dr. Burton J. Kunik, Chairman, Chief Executive Officer and President of Sharps Compliance Corp. stated, "Our solid year-to-date financial performance is a direct result of our success in expanding our sales efforts in additional and new markets. Our internal plans contemplate additional sales strength in all markets served as well as new markets including pharmaceutical manufacturing. We enter our fourth fiscal year quarter with backlog (orders received but not shipped as of March 31, 2006) of over $220,000."
Regarding corporate and business developments, Kunik added, "We are very pleased to have established our new banking relationship with a leading financial institution such as JPMorgan Chase. JPMorgan Chase shares our vision in the future of the industry and the significant opportunities available to the Company."
"InterFit Health is a first-class operation providing much needed health screening, treatment and preventive care services across the country. We welcome the opportunity to further secure our long-term relationship and continue to provide our value-added disposal solutions to InterFit Health."
More information: www.sharpsinc.com.