Health & Fitness
Health and Fitness
Health and Fitness
Tue, May 7, 2013
Milestone Scientific Achieves Profitability for the First Quarter of 2013
May 07, 2013 07:30 ET
Milestone Scientific Achieves Profitability for the First Quarter of 2013
Revenue Increases 29.6% to $2.5 Million; Domestic Sales Increase by 49.4% to $1.3 Million; Gross Margin Increases 189 Basis Points
LIVINGSTON, NJ--(Marketwired - May 07, 2013) - [ Milestone Scientific Inc ]. (
Leonard Osser, Chief Executive Officer of Milestone Scientific, stated, "We are pleased with our financial performance this quarter, as we achieved a 29.6% increase in revenue to $2.5 million in the first quarter of 2013 compared to $1.9 million in the same period last year. Domestic sales increased by 49.4% to $1.3 million in the first quarter of 2013, substantially higher than the same period last year. We have also seen an increase in international sales, driven by sales of handpieces. Our margins also expanded and we achieved modest profitability for the first quarter of 2013.As we grow our revenue and leverage our fixed expenses, we expect our cash flow and profitability will continue to improve."
Revenue for the three months ended March 31, 2013 was $2.5 million versus $1.9 million for the first quarter of 2012. The increase in product sales of $568,184 or 29.6% was primarily the result of increased domestic revenue. Domestic instrument sales increased by 32.8% to $208,139 in 2013 versus 2012 due to the increased demand at the distributor and group dental practice levels.In the domestic market, handpiece sales increased by $372,971 or 54.6%.On the international front, total revenue was $1.2 million, a 13.2% increase versus the same period in 2012. International handpiece sales increased by $242,712 or 38.7% in the first quarter of 2013 versus 2012. Gross profit for the first quarter of 2013 was $1.7 million or 67.4% of revenue versus $1.3 million or 65.5% of revenue in the first quarter of 2012.Net income for the first quarter of 2013 was $150,746 versus net loss of $355,181 for the comparable period in 2012.The return to profitability is attributable to an increase in sales and gross margin dollars, as well as a decrease in selling, general and administrative expenses.
Milestone's executive management team will host a teleconference on Tuesday, May 7, 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 877-941-2333.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 4618486.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 ].
SafeHarbor 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)
| MILESTONE SCIENTIFIC INC. | |||||||||
| CONDENSEDSTATEMENTS OF OPERATIONS | |||||||||
| (Unaudited) | |||||||||
| Three Months EndedMarch 31, | |||||||||
| 2013 | 2012 | ||||||||
| Product sales | $ | 2,489,542 | $ | 1,921,358 | |||||
| Cost of products sold | 812,043 | 662,946 | |||||||
| Gross profit | 1,677,499 | 1,258,412 | |||||||
| Selling, general and administrative expenses | 1,387,901 | 1,452,252 | |||||||
| Research and development expenses | 121,837 | 39,311 | |||||||
| Total operating expenses | 1,509,738 | 1,491,563 | |||||||
| Income (loss) from operations | 167,761 | (233,151 | ) | ||||||
| Other income (expenses) | |||||||||
| Other income | 17,543 | - | |||||||
| Interest expense | (34,558 | ) | (42,403 | ) | |||||
| Interest-Amortization of debtissuance | - | (1,532 | ) | ||||||
| Loss on Earnings from MedicalJoint Venture | - | (78,095 | ) | ||||||
| Total other income (expenses) | (17,015 | ) | (122,030 | ) | |||||
| Net income (loss) applicable to common stockholders | $ | 150,746 | $ | (355,181 | ) | ||||
| Net income (loss) per share applicable to commonstockholders - | |||||||||
| Basic | $ | 0.01 | $ | (0.02 | ) | ||||
| Diluted | $ | 0.01 | $ | (0.02 | ) | ||||
| Weighted average shares outstanding and to be issued - | |||||||||
| Basic | 16,351,894 | 15,338,367 | |||||||
| Diluted | 16,752,580 | 15,338,367 | |||||||
| MILESTONE SCIENTIFIC INC. | |||||||||||
| CONDENSEDBALANCE SHEETS | |||||||||||
| March 31, 2013 | December 31, 2012 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 121,604 | $ | 165,249 | |||||||
| Accounts receivable, net ofallowance for doubtful accounts of $178,481 as of March 31, 2013 and $179,259 as of December 31, 2012 | 1,319,666 | 978,982 | |||||||||
| Inventories, net | 625,549 | 638,561 | |||||||||
| Advances on contracts | 429,583 | 476,969 | |||||||||
| Prepaid expenses and othercurrent assets | 165,942 | 239,061 | |||||||||
| Total current assets | 2,662,344 | 2,498,822 | |||||||||
| Accounts receivable-long term, net of allowance fordoubtful accounts of $112,762 as of March 31, 2013 and $167,971 as of December 31, 2012 | 81,098 | 119,201 | |||||||||
| Advances on contracts | 2,358,107 | 2,350,477 | |||||||||
| Investment in Milestone Education LLC | 50,000 | - | |||||||||
| Furniture, Fixtures & Equipment net of accumulateddepreciation of $463,109 as of March 31, 2013 and $458,708 as of December 31, 2012 | 33,080 | 36,624 | |||||||||
| Patents, net of accumulated amortization of $439,931 as ofMarch 31, 2013 and $420,556 as of December 31, 2012 | 638,409 | 648,662 | |||||||||
| Other assets | 7,317 | 7,317 | |||||||||
| Total assets | $ | 5,830,355 | $ | 5,661,103 | |||||||
| LIABILITIES ANDSTOCKHOLDERS' EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 2,030,272 | $ | 2,336,594 | |||||||
| Accrued interest on NotesPayable | 380,982 | 356,563 | |||||||||
| Accrued expenses and otherpayables | 551,206 | 581,407 | |||||||||
| Total current liabilities | 2,962,460 | 3,274,564 | |||||||||
| Long-term Liabilities: | |||||||||||
| Notes Payable | 450,000 | 450,000 | |||||||||
| Total long-term liabilities | 450,000 | 450,000 | |||||||||
| Total liabilities | 3,412,460 | 3,724,564 | |||||||||
| Commitments and Contingencies | |||||||||||
| Stockholders' Equity | |||||||||||
| Common stock, par value $.001; authorized 50,000,000 shares; 16,781,726 shares issued, 1,655,317 shares to be issuedand 16,748,393 shares outstanding as of March 31, 2013; 16,563,306 shares issued, 1,635,709 shares to be issued, and 16,529,973 shares outstanding as of December 31, 2012 | 18,437 | 18,199 | |||||||||
| Additional paid-in capital | 64,890,596 | 64,560,224 | |||||||||
| Accumulated deficit | (61,579,622 | ) | (61,730,368 | ) | |||||||
| Treasury stock, at cost, 33,333shares | (911,516 | ) | (911,516 | ) | |||||||
| Total stockholders' equity | 2,417,895 | 1,936,539 | |||||||||
| Total liabilities andstockholders' equity | $ | 5,830,355 | $ | 5,661,103 | |||||||
