AMBI Reports Second Quarter Fiscal 1999 Results.PURCHASE, N.Y.--(BUSINESS WIRE)--February 9, 1999--AMBI Inc. (Nasdaq: AMBI AMBI Associação Médica Brasileira Iridologia ) announced results for the second quarter of fiscal 1999 that ended December December: see month. 31, 1998. Revenues increased 20% to $7.0 million compared to $5.8 million for the second quarter of the previous fiscal year. Net income increased 457% to $2.4 million ($0.08 per share, basic and 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. ) for the second quarter of the fiscal year compared to $0.4 million for the same period in fiscal 1998 ($0.00 per share, basic and diluted). For the six month period ended December 31, 1998 revenues increased by 41% to $12.8 million compared to $9.0 million for the first six months of the previous fiscal year. Net income was $3.8 million ($0.14 per share, basic and diluted) for the six months ended December 31, 1998 compared to a net loss of $0.3 million for the same period of the previous year (a loss of $0.07 per share, basic and diluted). Fredric D. Price, AMBI's President and Chief Executive Officer said, "We are pleased to note that during the second fiscal quarter, the Company: (1) generated $3.1 million in Earnings Before Interest, Taxes, Depreciation, and Amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (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 ); (2) entered into a strategic alliance with American Home For the American mortgage lender, see . The American Home is a center of intercultural exchange located in Vladimir, Russia. The home is designed to model a typical American suburban home and its main focus is the ESL school that provides lessons for Russian students. Products Corporation (NYSE NYSE See: New York Stock Exchange : AHP AHP Assistant House Physician. ); (3) established a distribution agreement with Cultor Food Science (HEX Helsinki Exchanges Helsinki Exchanges (HEX) The Helsinki Exchanges (HEX Ltd., Helsinki Securities and Derivatives Exchange and Clearing House) was formed at the beginning of 1998 following the merger of the Helsinki Stock Exchange Ltd. and SOM Ltd. CUL1S, CUL2V); and (4) revised the terms of our convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". to eliminate the "floating" conversion feature and to reduce the face amount of the 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. ." Mr. Price continued, "Shortly after the close of the quarter, we acquired the Lite Bites(R) brand of premium 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. bars. The integration of this business into AMBI is proceeding smoothly and we will report the financial results from this acquisition beginning with the quarter ending March 31, 1999. The Lite Bites(R) business had unaudited sales of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.5 million and EBITDA of about $1.3 million in the year ended December 31, 1998. The Lite Bites(R) acquisition is expected to be accretive to the current fiscal year's earnings." The Company noted that the financial results for the second quarter of fiscal 1999 reflect the receipt from American Home Products Corporation of $1.0 million of license revenue and $4.0 million for the purchase of newly issued AMBI common 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 January January: see month. 13, 1999 and AMBI's Form 10-K/A for the year ended June June: see month. 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.
AMBI INC. & SUBSIDIARY
Consolidated Balance Sheets
(in thousands)
December 31, June 30,
1998 1998
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 5,610 $ 2,109
Accounts receivable, net 3,778 3,408
Inventories, net 565 695
Prepaid and other
current assets 555 413
------- -------
Total Current Assets 10,508 6,625
Property and equipment, net 993 914
Patents, trademarks, goodwill
and other intangibles, net 13,629 12,665
Other assets 601 531
------- -------
Total Assets $25,731 $20,735
======= =======
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities
Current portion of long
term debt
and lease obligation $ 3,059 $ 3,052
Accounts payable and
accrued expenses 2,554 2,458
Nutrition 21 acquisition payable 1,142 2,747
Preferred dividends payable 85 637
------- -------
Total Current Liabilities 6,840 8,894
Long term debt and lease
obligation, less 1,012 1,543
current portion
Other long term obligations 470 --
------- -------
Total Liabilities 8,322 10,437
Stockholders' Equity 17,409 10,298
------- -------
Total Liabilities and
Stockholders' Equity $25,731 $20,735
======= =======
AMBI INC. & SUBSIDIARY
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
1998 1997 1998 1997
Net Sales $ 5,964 $ 5,789 $ 11,779 $ 9,032
License
Revenues 1,000 -- 1,000 --
-------- -------- -------- --------
Revenues 6,964 5,789 12,779 9,032
Costs and
Expenses:
Cost of
Sales 617 695 1,295 1,350
Selling,
Gen'l and
Admin
Expense 2,861 2,916 5,474 5,606
Research and
Development
Expenses 378 1,067 865 1,562
Depreciation
and
Amortization 570 485 1,129 625
-------- -------- -------- --------
Operating
Income/(Loss) 2,538 626 4,016 (111)
Interest
Income 66 15 101 59
Interest
Expense 43 161 132 185
Other Income,
net -- -- 79 --
-------- -------- -------- --------
Income/(Loss)
Before
Income Taxes 2,561 480 4,064 (237)
Income Taxes 166 50 257 57
-------- -------- -------- --------
Net
Income/(Loss) $ 2,395 $ 430 $ 3,807 $ (294)
======== ======== ======== ========
Basic
Earnings/
(Loss)
Per Share $ 0.08 $ (0.00) $ 0.14 $ (0.07)
======== ======== ======== ========
Weighted
Average
Number of
Common Shares 26,475 19,821 23,843 19,464
Diluted
Earnings/
(Loss) Per
Share $ 0.08 $ (0.00) $ 0.14 $ (0.07)
======== ======== ======== ========
Weighted
Average
Number of
Common Shares
and Equivalents 31,981 19,821 27,643 19,464
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