American Bio Medica Reports First Quarter Results.Business Editors KINDERHOOK, N.Y.--(BUSINESS WIRE)--Sept. 17, 2001 American Bio Medica medica (māˑ·dē·k Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ABMC ABMC American Battle Monuments Commission ABMC Alexian Brothers Medical Center (Illinois) ABMC Aviation Battle Management Concept ABMC Arrowbear Music Camp (California) ), today announced its unaudited results for the three months ended July 31, 2001. Sales for the first quarter fiscal 2002 were $1,550,000 representing a decrease of $605,000, or 28.1%, from $2,155,000 in the same period last year. The decrease in sales was attributed to the company's transition from a distributor-based sales organization to a more direct sales oriented company. The Company has terminated relationships with several distributors in both clinical and workplace markets in order to achieve higher gross margins through alliances with key distributors and direct sales. The Company expects sales to begin to grow steadily in the second quarter as a result of the same internal sales restructuring. Operating results improved from a loss of $(308,000) in the first quarter fiscal 2001 to a loss of $(214,000), an improvement of $94,000. Excluding non-cash compensation charges, depreciation and non-recurring expenses, the Company would have reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $13,000 in the first quarter of fiscal 2002. Gross profit, as a percentage of sales, improved to $70.1% from 65.6% as a result of greater operating efficiencies. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased $420,000, or 24.4%, from 1,721,000 in the first quarter fiscal 2001 to 1,301,000 in the first quarter fiscal 2002. The decrease in operating expenses was due to a decrease in selling, general and adminstrative (SG&A). SG&A expenses including depreciation and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. decreased $401,000 or 25% from $1,602,00 in the first quarter fiscal 2001 to $1,201,000 in the 2002 first quarter. The decrease in SG&A was due in part to a decrease in legal fees of $279,000, as a result of the settlement of the patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. filed by the Company against numerous parties and a decrease in marketing & promotion and consulting fees of $179,000 as a result of the internal restructuring of its marketing department. "We are encouraged that the company has improved operating results and cash flow, despite a loss in gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. ," said Robert L. Aromando Jr., ABMC chariman and chief executive officer. "As expected, we have experienced some growing pains grow·ing pains pl.n. Pains in the limbs and joints of children or adolescents, frequently occurring at night and often attributed to rapid growth but arising from various unrelated causes. during the restructuring of our organization and implementation of our new sales strategy. Although our first quarter sales were affected by some lost distribution support, we do not anticipate this to continue into the second quarter. Our strategy includes focusing on cost of goods, and optimizing margins for profitability, while simultaneously growing sales. We simply make more profit by working with a limited network of high-level, committed distributors, and our internal sales force. These results underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the legitimacy of our strategy." "We have secured additional financing to support this strategy, and are already realizing significant new business through new products and target selling. I am confident that the new business will eclipse the revenue we lost through some distributor sales. And the company, as well as our strategic distribution partners, will be better positioned for sustained profitability in the long run."
Consolidated Balance Sheet
July 31, 2001 April 30, 2001
Unaudited(1)
------------- --------------
Total current assets $3,083,000 $3,030,000
Total assets $3,693,000 $3,640,000
Total current liabilities $2,562,000 $2,406,000
Total stockholders' equity $1,111,000 $1,213,000
(1) Excludes net proceeds of $2.3 million received in our August
2001 financing.
Consolidated Statement of Operations (Unaudited)
For the Three For the Three
Months Ended Months Ended
July 31, 2001 July 31, 2000
-------------- --------------
Net sales $1,550,000 $2,155,000
Cost of goods sold $463,000 $742,000
Gross profit $1,087,000 $1,413,000
Net income (loss) $(212,000) $(273,000)
Basic and diluted net income
(loss) per common share $(0.01) $(0.02)
Weighted average shares
outstanding - basic and
diluted 17,995,548 18,045,548
About American Bio Medica Corporation American Bio Medica Corporation develops, manufactures and markets inexpensive, accurate on-site drugs-of-abuse diagnostic kits, sprays and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services worldwide. The company's global distributors target the workplace, physicians, corrections, clinical and educational markets. ABMC's Drug Detector(TM) identifies minute traces of illegal drugs on surfaces, while the company's Rapid Drug Screen(TM) tests individuals and is proven to correlate greater than 99% with the standard laboratory screening test. 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. in this release are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, intellectual property rights and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. |
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