American Medical Technologies Reports First Quarter Profit vs. Prior Year Loss.Business Editors, Health/Medical Writers CORPUS CHRISTI Corpus Christi, in Christianity Corpus Christi [Lat.,=body of Christ], feast of the Western Church, observed on the Thursday after Trinity Sunday (or on the following Sunday). , Texas--(BW HealthWire)--April 23, 2001 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 Medical Technologies, Inc. (Nasdaq:ADLI) reported that for the first quarter of 2001 the Company recorded a net income of $104,833 or $.01 per share compared to a net loss of ($745,980) or ($.10) per share for the same period of 2000. Revenues decreased 4% to $4,495,770 compared to $4,700,106 in the first quarter of 2000. Gross margins improved from 42% in 2000 to 56% in 2001 and gross profit increased 28% from $1,955,616 in the first quarter of 2000 to $2,512,819 for the same period in 2001. 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 20% to $2,370,104 in 2001 compared to $2,949,322 in 2000. Income from operations for the first quarter of 2001 was $142,715, compared to a loss from operations of ($993,706) for the first quarter of 2000. "This turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. from the prior year's loss proves that our new business model is working," said Ben Gallant, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Under our new direct sale business model, even with a slight decrease in sales, our healthier gross margins and lower administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. improved our income from operations by more than $1 million compared to last year when we operated under the old distributor-based business model." Mr. Gallant continued, "We are making progress in other areas of our new business strategy as well. During the first quarter, we added several new items to our product line through OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and agreements and in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. development. In addition, the development of our new Erbium erbium (ûr`bēəm) [from Ytterby, a town in Sweden], metallic chemical element; symbol Er; at. no. 68; at. wt. 167.26; m.p. 1,529°C;; b.p. 2,863°C;; sp. gr. 9.05 at 25°C;; valence +3. laser for hard tissue applications is continuing and we expect to launch sales of that new product in the third quarter of this year. The Company continues to maintain a sound balance sheet, with a current ratio of 6:1." The Company also announced that it has repurchased $107,463 of its common stock through the first quarter under the previously announced $1,000,000 repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by the Board of Directors in February February: see month. of 2001. The Company intends to continue to buy back stock as appropriate. Certain statements made in this release may constitute "forward looking statements" within the meaning of the federal securities laws. While we believe any 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. we have made are reasonable, actual results could differ materially since the statements are based on our current expectations and are subject to risks and uncertainties. These risks and uncertainties include, without limitation, the possible failure to maintain the Company's ability to borrow under its line of credit, the Company's potential inability to hire and retain qualified sales and service personnel, the potential for an extended decline in sales, the possible failure of revenues to offset additional costs associated with its new business model, the potential lack of product acceptance, the Company's potential inability to introduce new products to the market, the potential failure of customers to meet purchase commitments, the potential loss of customer relationships, the potential failure to receive or maintain necessary regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals, the extent to which competition may negatively affect prices and sales volumes or necessitate ne·ces·si·tate tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates 1. To make necessary or unavoidable. 2. To require or compel. increased sales expenses, the failure of negotiations to conclude OEM agreements or strategic alliances and any other uncertainties listed or discussed in the Company's reports filed with the Securities and Exchange Commission. The Company does not undertake, and expressly disclaims any obligation, to update or alter its forward looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. American Medical Technologies, Inc. headquartered in Corpus Christi, Texas Corpus Christi is a coastal city and the county seat of Nueces CountyGR6 in the U.S. state of Texas. It is part of the region known as South Texas. , develops and manufactures advanced technologies for dentistry dentistry, treatment and care of the teeth and associated oral structures. Dentistry is mainly concerned with tooth decay, disease of the supporting structures, such as the gums, and faulty positioning of the teeth. and markets them worldwide. It is listed on the NASDAQ National Market under the symbol "ADLI". The Company's website is found at: www.americandentaltech.com Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of operations and balance sheets are attached.
American Medical Technologies, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended March 31
2001 2000
----------- -----------
Net sales $ 4,495,770 $ 4,700,106
Cost of sales 1,982,951 2,744,490
----------- -----------
Gross profit 2,512,819 1,955,616
Operating expenses 2,370,104 2,949,322
----------- -----------
Income (loss) from operations 142,715 (993,706)
Other income/(expense) (net
of interest expense) (25,882) (62,274)
----------- -----------
Net income (loss) before taxes 116,833 (1,055,980)
Income tax (benefit) 12,000 (310,000)
----------- -----------
Net income (loss) $ 104,833 $ (745,980)
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Net income(loss) per diluted share $ 0.01 ($ 0.10)
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Weighted average number of
common and common equivalent
shares 7,037,696 7,257,334
American Medical Technologies, Inc.
Condensed Consolidated Balance Sheets
March 31 December 31
2001 2000
----------- -----------
(Unaudited)
Assets
Current assets:
Cash $ 1,600,955 $ 1,549,747
Accounts receivable 2,473,139 3,371,341
Inventories 6,816,154 6,897,157
Other current assets 579,570 683,670
----------- -----------
Total current assets 11,469,818 12,501,915
Property and equipment, net 2,313,914 2,389,951
Intangible assets, net 3,331,456 3,399,131
----------- -----------
Total assets $17,115,188 $18,290,997
=========== ===========
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable 1,103,487 1,627,496
Accrued liabilities 935,354 988,670
----------- -----------
Total current liabilities 2,038,841 2,616,166
Notes payable 2,000,000 2,500,000
Other non-current liabilities 147,001 172,964
Stockholders equity 12,929,346 13,001,867
----------- -----------
Total liabilities and stockholders
equity $17,115,188 $18,290,997
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