AMBI Reports Fiscal 1999 Results.PURCHASE, N.Y.--(BW HealthWire)--August 31, 1999-- AMBI AMBI Associação Médica Brasileira Iridologia Inc. (Nasdaq: AMBI) reported financial results for the fiscal year that ended June June: see month. 30, 1999. Revenues for the fiscal year 1999 were $28.3 million as compared to $20.8 million for the corresponding period a year ago, an increase of 36%. Net income was $5.9 million ($.19 per share, diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) compared to net income of $1.1 million in the previous year, (a loss of ($.04) per share, diluted ) an increase of 458%. Revenues for the fourth quarter of fiscal 1999 were $8.2 million as compared to $6.5 million for the corresponding period a year ago. Net income for the fourth quarter of fiscal 1999 was $0.9 million ($.03 per share, diluted) as compared to net income of $0.8 million ($.02 per share, diluted), for the corresponding period a year ago. Fredric D. Price, AMBI's President and Chief Executive Officer, said, "This past year has been one of dramatic change, highlighted by the following accomplishments: (1) Our net income increased substantially to $5.9 million from $1.1 million; (2) We tripled our earnings before interest, taxes, depreciation, and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ), which is frequently used as a measure of operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , to $9.3 million from $3.0 million; (3) Our net working capital increased by $4.2 million; (4) Our stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. improved to $20.7 million, from $10.3 million; (5) We entered into a strategic alliance with American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Home Products; and (6) We acquired the profitable Lite Bites(R) brand of dietary supplement Noun 1. dietary supplement - something added to complete a diet or to make up for a dietary deficiency diet - a prescribed selection of foods vitamin pill - a pill containing one or more vitamins; taken as a dietary supplement nutrition nutrition, study of the materials that nourish an organism and of the manner in which the separate components are used for maintenance, repair, growth, and reproduction. Nutrition is achieved in various ways by different forms of life. products. By acquiring new products and establishing new distribution relationships with outstanding partners, we have positioned ourselves to be stronger both operationally and strategically." The Company indicated that the loss per share for fiscal 1998 resulted from deductions for accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) and the recognition of a conversion discount on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. previously issued by the Company. As a result, AMBI reported a loss per share for fiscal 1998 despite reporting positive net income for that period. The conversion discount feature was eliminated during fiscal 1999 with the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the Series C and D Preferred Stock and the resulting issuance of New Series E and F Preferred Stock. AMBI develops and markets proprietary nutrition products. The statements in this press release that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based upon current expectations. Such forward-looking statements involve risks and uncertainties, including risks and uncertainties set forth in "Risk Factors" and elsewhere in AMBI's Registration Statement on Form S-3 and the Prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. dated June 10, 1999 and AMBI's Form 10-K/A for the year ended June 30, 1998. Actual results and timing of certain events could differ materially from those indicated in the forward-looking statements as a result of these and other factors. -0-
AMBI INC. & SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
June 30, June 30,
ASSETS 1999 1998
---- ----
(unaudited)
Current assets:
Cash and cash equivalents $ 4,458 $ 2,109
Accounts receivable, net 4,431 3,408
Inventories, net 1,447 695
Other current assets 749 413
------- -------
Total current assets 11,085 6,625
Property and equipment,
net 1,066 914
Patents, trademarks, licensed
technology and goodwill, net 22,059 12,665
Other assets 368 531
------- -------
Total assets $34,578 $20,735
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short term debt, current portion
of long-term debt and lease
obligations $ 1,563 $ 3,052
Accounts payable and
accrued expenses 4,248 2,458
Contingent payments payable 3,294 2,747
Preferred dividends payable 25 637
------- -------
Total current liabilities 9,130 8,894
Long-term debt and other long
term obligations,
less current portion 3,833 1,543
------- -------
Total liabilities 12,963 10,437
Redeemable preferred stock 921 --
Stockholders' equity 20,694 10,298
------- -------
Total liabilities and
stockholders' equity $34,578 $20,735
======= =======
AMBI INC. & SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data)
Year Ended June 30,
1999 1998
---- ----
(unaudited)
Net sales $ 26,911 $ 20,082
Other revenues 1,390 676
Revenue $ 28,301 $ 20,758
Cost of goods sold 4,782 2,956
Gross profit 23,519 17,802
Expenses:
Marketing and Sales 5,979 5,248
General and Administrative 6,477 6,494
Research and Development 1,787 3,018
Depreciation and
Amortization 2,807 1,575
Operating income 6,469 1,467
Interest income 189 71
Interest expense 397 370
Other income, net 86 --
Income before income taxes 6,347 1,168
Income taxes 482 116
Net income $ 5,865 $ 1,052
Basic earnings/(loss)
per share $ 0.20 ($ 0.04)
Weighted average number
of common
Shares outstanding - basic 26,481 20,163
Diluted earnings/(loss)
per share $ 0.19 ($ 0.04)
Weighted average number
of common
shares & equivalents
- diluted 27,696 20,163
======= =======
Note: Includes the results of operations for the Lite Bites business
from January 1, 1999 and the results of operations for Nutrition 21
from August 11, 1997.
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