Milestone Scientific Announces 2009 Year End Results
Year-Over-Year Revenues Climb 29% to $8.55 Million from $6.60 Million; Growth Fueled by 97% Increase in Instrument Sales and 7% Increase in Disposable Handpiece Sales
Net Cash Provided by Operations Rises to $403,000 Compared to Net Cash Used by Operations of $442,000 in Fiscal 2008
Management to Host Teleconference Today Beginning at 4:15 PM ET
PISCATAWAY, N.J., March 11 /PRNewswire-FirstCall/ -- Milestone Scientific Inc. (OTC Bulletin Board: MLSS), the recognized leader in advanced injection technologies, today announced its full year results for the fiscal year ended December 31, 2009.
Financial Highlights When Comparing 12-Months Ended December 31, 2009 with 12-Months Ended December 31, 2008:
- Total revenues were $8.55 million, rising 29% from $6.60 million.
- Sales in the U.S. rose 24% to $5.38 million from $4.34 million.
- International sales increased 41% to $3.17 million from $2.25 million.
- Instrument sales totaled $3.18 million, a 97% increase from $1.61 million.
- Disposable handpiece sales climbed 7% to $5.28 million from $4.92 million.
- Gross profit margin remained unchanged at 60%.
- Due primarily to $1.44 million in non-cash charges related to stock issued for compensation, consulting and vendor services in 2009, which compared to $350,000 in similar non-cash charges in 2008; offset by other income of $778,000 and $676,000, representing the sale of tax credits under the New Jersey Technology Business Tax Certificate Program in 2009 and 2008, respectively; net loss totaled $1.53 million, or $0.11 loss per basic and diluted share, up from a net loss of $1.19 million, or $0.09 loss per basic and diluted share.
In 2009, Milestone generated net cash of $403,000 from its operating activities, compared to using $442,000 in its operations during 2008. As of December 31, 2009, Milestone had $2.09 million in cash and accounts receivables, working capital of $1.63 million, and total shareholders' equity of $2.64 million. Aided by the previously announced conversion of $1.3 million in debt to equity, the Company's long term liabilities were materially reduced, declining 68% to $531,000 as of the end of 2009, compared to $1.69 million as of December 31, 2008.
According to Leonard Osser, Chief Executive Officer of Milestone Scientific, "2009 was a tremendous year for our Company – a true turning point in our corporate evolution and a period in which we have put into motion a number of exciting new initiatives expected to have lasting impact on our standing as the world leader in computer-controlled injection technologies. Through thoughtful execution of our global branding and market penetration strategies, Milestone achieved double digit growth across all key sales metrics and enabled us to win alliances with a number of notable new distribution partners around the globe, including leading suppliers in China, Canada and Europe."
Leslie Bernhard, Chairman of Milestone, added, "There is no question that China, in particular, will play an important and measurable role in Milestone's quest to achieve sustainable profitability – a goal we do believe we will attain in 2010 through contracted sales of the STA System. However, in order to optimize Milestone's true long term growth potential, we must continue to pursue opportunities to develop and commercialize disruptive, new medical injection products that effectively leverage our intellectual property to address a wide range of prevailing healthcare delivery challenges. Our anticipated JV and new product development collaboration with China National Medicines Corp. and Yichang Humanwell Pharmaceutical Co. represents a critical step forward in this regard and is one that should help propel our Company to an even higher level of financial performance in the years to come. We are very pleased and proud of how far Milestone has come in the past year and are now looking to the future with a sense of great optimism and positive expectations."
Milestone's executive management team will host a teleconference this afternoon, Thursday, March 11, 2010, beginning at 4:15 PM Eastern Time, and invites all interested parties to join them in a discussion regarding the Company's financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-877-941-2068. For those unable to participate at that time, a replay of the teleconference can be accessed domestically by dialing 1-800-406-7325 and entering the passcode 4224376. The replay will be available for 90 days.
MILESTONE SCIENTIFIC INC. CONDENSED BALANCE SHEET
For the Years Ended December 31, 2009 & 2008 (Audited)
December 31, December 31,
2009 2008
----------- -----------
ASSETS
------
Current Assets:
Cash and cash equivalents $1,029,129 $743,665
Accounts receivable, net of allowance for
doubtful accounts of $5,000 in 2009 and 2008 1,063,742 925,742
Inventories 804,736 719,902
Advances to contract manufacturer 151,995 250,110
Prepaid expenses and other current assets 254,501 218,296
------- -------
Total current assets 3,304,103 2,857,715
Advances to contract manufacturer 311,230 415,780
Investment in distributor, at cost 76,319 76,319
Furniture, Fixtures & Equipment net of
accumulated depreciation of $395,630 as
of December 31, 2009 and $345,377 as of
December 31, 2008 77,353 152,574
Patents, net of accumulated amortization
of $211,539 as of December 31, 2009 and
$135,406 as of December 31, 2008 947,315 901,045
Other assets 133,674 7,317
------- -----
Total assets $4,849,994 $4,410,750
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable $1,154,013 $829,130
Accrued expenses and other payable 524,017 495,897
------- -------
Total current liabilities 1,678,030 1,325,027
--------- ---------
Long-term Liabilities:
Accrued Interest - 6% note 92,000 -
Line of credit-net of discount of $52,530
in 2008 - 1,247,470
Notes Payable-net of discount of $11,157
and $11,927, respectively 438,843 438,073
------- -------
Total long-term liabilities 530,843 1,685,543
------- ---------
Commitments and Contingencies
Stockholders' Equity
Common stock, par value $.001; authorized
50,000,000 shares; 14,781,295 shares
issued 692,498 shares to be issued and
14,747,962 shares outstanding as of
December 31, 2009; 12,695,685 shares
issued, 504,639 shares to be issued, and
12,662,352 shares outstanding as of
December 31, 2008 15,472 13,200
Additional paid-in capital 62,300,619 59,531,865
Accumulated deficit (58,763,454) (57,233,369)
Treasury stock, at cost, 33,333 shares (911,516) (911,516)
-------- --------
Total stockholders' equity 2,641,121 1,400,180
--------- ---------
Total liabilities and stockholders' equity $4,849,994 $4,410,750
========== ==========
MILESTONE SCIENTIFIC INC. RESULTS OF OPERATIONS
(Audited)
Twelve Months Ended
December 31, December 31,
2009 2008
------------- -------------
Product sales, net $8,549,060 $6,595,525
Royalty income - 28,282
--- ------
Total revenue 8,549,060 6,623,807
--------- ---------
Cost of products sold 3,458,279 2,681,116
--------- ---------
Gross profit 5,090,781 3,942,691
--------- ---------
Selling, general and administrative expenses 6,952,976 5,502,762
Research and development expenses 241,318 168,516
------- -------
7,194,294 5,671,278
--------- ---------
Loss from operations (2,103,513) (1,728,587)
Other income (expense)
Other income 777,609 675,930
Interest income 3,146 9,023
Interest expense (154,027) (116,374)
Amortized debt issuance (53,300) (27,446)
------- -------
Total other income 573,428 541,133
------- -------
Net profit (loss) $(1,530,085) $(1,187,454)
=========== ===========
Net profit (loss) applicable to common
stockholders $(1,530,085) $(1,187,454)
=========== ===========
Profit (loss) per share applicable to
common stockholders -basic and diluted $(0.11) $(0.09)
====== ======
Weighted average shares outstanding and to
be issued -basic and diluted 13,389,872 12,666,979
---------- ----------
About Milestone Scientific Inc.
Headquartered in Piscataway, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled injection technologies for the medical and dental markets; and currently sells its award-winning products through a global distribution network serving North America, Asia, Africa and Europe. For more information on the STA System and other innovative Milestone products, please visit the Company's web sites found at www.milestonescientific.com and www.STAis4U.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, 2009. 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.
FOR MORE INFORMATION, PLEASE CONTACT: |
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Elite Financial Communications Group |
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Dodi Handy, President and CEO (Twitter: @dodihandy) |
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For Media Inquiries: Kathy Addison, Director, Elite Media Group (Twitter: @kathyaddison) |
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407-585-1080 or via email at [email protected] |
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SOURCE Milestone Scientific Inc.
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