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Milestone Scientific Reports 30% Increase in Sales for the Fourth Quarter of 2012 and Provides Business Update
March 13, 2013 16:42 ET
Milestone Scientific Reports 30% Increase in Sales for the Fourth Quarter of 2012 and Provides Business Update
LIVINGSTON, NJ--(Marketwire - March 13, 2013) - [ Milestone Scientific Inc. ](
Highlights of 2012:
- Received State Food and Drug Administration (SFDA) of the People's Republic of China approval for Milestone's STA instrument; SFDA is expected to approve The Wand handpiece in the coming months
- Signed on two Florida-based dental groups, Dental American Group and Christie Dental Group, for the use of Milestone's STA Single Tooth Anesthesia System
- Entered an educational partnership with the University of Florida College of Dentistry
- Formed a strategic alliance with Aseptico, a worldwide distributor, leading designer and manufacturer of surgical, endodontic, and portable dental equipment
Leonard Osser, Chief Executive Officer of Milestone Scientific, stated, "In 2012 we achieved a number of key objectives. To begin with, our strategic partnership with Aseptico, as exclusive domestic distributor of our instruments, is exceeding our expectations. With Aseptico's established and experienced sales force now trained, we expect a substantial increase in sales of our STA instrument in 2013. We are very satisfied with this synergistic partnership as it will not only help drive both sales and cash flow, but has also decreased our expenses.
"In October we announced that the State Food and Drug Administration (SFDA) of the People's Republic of China approved Milestone's STA instrument. We are working closely with our consultants to get final SFDA approval of The Wand handpiece, which we expect in the coming months. Once we receive approval of the handpiece, we can commence sales activities with our partner in China."
Mr. Osser continued, "We continue to progress in our penetration of the domestic group practice market. In 2012, we signed on two Florida-based dental groups. One of the dental groups that we signed on is Dental American Group, which has 5 offices in the region, consisting of 20 dentists and 7 hygienists. We are also rolling out our STA Single Tooth Anesthesia System with Christie Dental Group. This group has 17 locations and 35 dentists throughout central Florida. In the meantime, we are far along with other dental groups where we are in the training phase of our implementation. When dealing with large organizations such as these, the sales cycle is longer, albeit far more scalable.
"We are pleased to report our growing presence within dental universities. We entered into an educational partnership with the University of Florida College of Dentistry, whereby Milestone will supply its STA System for use by the university faculty to train students. At this time we are working closely with three other leading dental universities that offer hygienist anesthesia certification programs. We are currently involved in 'dinner and learn' programs, where student and faculty members learn how to use our STA System. We continue to receive positive feedback from these programs, which is driving inbound inquiries from other universities that would like to use our STA System for their training programs. We believe the success of these programs offers further evidence that our technology is widely recognized as the standard of care within the dental market."
Revenue for the three months ended December 31, 2012 was $2.3 million versus $1.7 million for the fourth quarter of 2011.The increase in product sales of $528,556 or 30% was primarily the result of an increase in international sales.Domestic instrument sales increased by 32% to $67,766 in 2012 versus 2011 due to the increased demand at the distributor and group dental practice levels.In the domestic market, handpiece sales decreased by $107,600 or 12%.On the international front, total revenue was $1,183,794, a 94% increase versus the same period in 2011. International handpiece sales increased by $426,078 or 110% in the fourth quarter of 2012 versus 2011 principally due to a catch-up of handpiece deliveries and the anticipated price increase in 2013. Gross profit for the fourth quarter of 2012 was $1.4 million or 60% of revenue versus $1.1 million or 61% of revenue in the fourth quarter of 2011.Net loss for the fourth quarter of 2012 was $365,734 versus net loss of $405,051 for the comparable period in 2011.
Revenue for the twelve months ended December 31, 2012 was $8.6 million compared to $8.4 million the prior year. Domestic instrument sales decreased by $478,130 or 36% in 2012 versus 2011 due to a marketing shift in the U.S. toward large dental groups which have a longer selling cycle.Gross profit for 2012 was $5.6 million or 65% of revenue versus $5.4 million or 64% of revenue in 2011.Operating loss for the twelve months ended December 31, 2012 was $520,353 versus a loss of $1.2 million for the twelve months ended December 31, 2011.The decrease in operating loss was substantially attributable to a reduction in selling, general and administrative expenses.Net loss for 2012 was $870,306 versus net loss of $1.5 million for the comparable period in 2011.The $611,794 or 41% decrease in net loss is attributable to an increase in gross profit complemented by a significant decrease in selling, general and administrative expenses.
Milestone will host a teleconference on Thursday, March 14, 2013 at 8:30 A.M. Eastern Time to discuss the company's financial results.The conference call can be accessed via telephone by dialing toll free 1-800-762-8779.For those unable to participate at that time, a replay of the call can be accessed by dialing 1-800-406-7325 and entering the pass code 4606643.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 ].
Safe Harbor Statement
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.
(tables follow)
| MILESTONESCIENTIFIC INC. | |||||||||
| CONDENSEDSTATEMENTS OFOPERATIONS | |||||||||
| YEARS ENDEDDECEMBER 31, 2012 AND 2011 | |||||||||
| 2012 | 2011 | ||||||||
| Product sales, net | $ | 8,648,242 | $ | 8,378,094 | |||||
| Cost of products sold | 3,055,991 | 3,016,642 | |||||||
| Gross profit | 5,592,251 | 5,361,452 | |||||||
| Selling, general and administrative expenses | 5,930,625 | 6,445,001 | |||||||
| Research and development expenses | 181,979 | 140,053 | |||||||
| 6,112,604 | 6,585,054 | ||||||||
| Loss from operations | (520,353 | ) | (1,223,602 | ) | |||||
| Other income (expense) | |||||||||
| Interest income | 34 | 35 | |||||||
| Interest expense | (175,905 | ) | (131,838 | ) | |||||
| Amortized debt issuance | (3,065 | ) | (5,296 | ) | |||||
| Loss on Earnings from MedicalJoint Venture | (171,016 | ) | (121,399 | ) | |||||
| Total other expense | (349,952 | ) | (258,498 | ) | |||||
| Net loss | $ | (870,306 | ) | $ | (1,482,100 | ) | |||
| Net loss applicable to common stockholders | $ | (870,306 | ) | $ | (1,482,100 | ) | |||
| Loss per share applicable tocommon stockholders -basicand diluted | $ | (0.05 | ) | $ | (0.10 | ) | |||
| Weighted average sharesoutstanding and to be issued -basicand diluted | 16,080,474 | 15,174,893 | |||||||
| MILESTONE SCIENTIFIC INC. | |||||||||||
| CONDENSED BALANCE SHEETS | |||||||||||
| December 31, 2012 | December 31, 2011 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 165,249 | $ | 96,324 | |||||||
| Accounts receivable, net of allowancefor doubtful accounts of $179,259 in 2012 and $182,880 in 2011 | 978,982 | 1,154,459 | |||||||||
| Inventories | 638,561 | 790,494 | |||||||||
| Advances to contractmanufacturer | 476,969 | 952,558 | |||||||||
| Prepaid expenses and othercurrent assets | 239,061 | 304,180 | |||||||||
| Total current assets | 2,498,822 | 3,298,015 | |||||||||
| Accounts receivable-long term, net of allowance fordoubtful accounts of $167,971 in 2012and $372,000 in 2011 | 119,201 | 261,256 | |||||||||
| Advances to contract manufacturer | 2,350,477 | 2,453,948 | |||||||||
| Investment in distributor, at cost | - | 76,319 | |||||||||
| Investment in Medical Joint Venture | - | 124,179 | |||||||||
| Furniture, Fixtures & Equipment net of accumulateddepreciation of $458,708as of December 31, 2012 and $446,484 as of December 31, 2011 | 36,624 | 52,309 | |||||||||
| Patents, net of accumulated amortization of $420,556 as ofDecember 31, 2012and $344,238 as of December 31, 2011 | 648,662 | 698,357 | |||||||||
| Other assets | 7,317 | 27,819 | |||||||||
| Total assets | $ | 5,661,103 | $ | 6,992,202 | |||||||
| LIABILITIES ANDSTOCKHOLDERS' EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 2,336,594 | $ | 3,931,531 | |||||||
| Accrued expenses and otherpayable | 581,407 | 407,872 | |||||||||
| Accrued interest on NotesPayable | 356,563 | 269,547 | |||||||||
| Total current liabilities | 3,274,564 | 4,608,950 | |||||||||
| Long-term Liabilities: | |||||||||||
| Notes payable-net of discountof $0 and $3,065, respectively | 450,000 | 446,935 | |||||||||
| Total long-term liabilities | 450,000 | 446,935 | |||||||||
| Commitments and Contingencies | |||||||||||
| Stockholders' Equity | |||||||||||
| Common stock, par value $.001; authorized 50,000,000 shares; 16,563,306 shares issued1,635,709 shares to be issued and16,529,973 shares outstanding as of December 31, 2012;15,556,878shares issued, 1,501,457 shares to be issued, and 15,523,545 sharesoutstandingas ofDecember 31, 2011 | 18,199 | 17,058 | |||||||||
| Additional paid-in capital | 64,560,224 | 63,690,837 | |||||||||
| Accumulated deficit | (61,730,368 | ) | (60,860,062 | ) | |||||||
| Treasury stock, at cost, 33,333shares | (911,516 | ) | (911,516 | ) | |||||||
| Total stockholders' equity | 1,936,539 | 1,936,317 | |||||||||
| Total liabilities andstockholders' equity | $ | 5,661,103 | $ | 6,992,202 | |||||||
