American Medical Technologies Reports First Quarter Results.Business & Health/Medical Editors 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)--May 15, 2002 American Medical Technologies, Inc. (Nasdaq:ADLI) reported that for the first quarter of 2002 the Company recorded a net loss of ($788,746) or ($.11) per share compared to net income of $104,833 or $.01 per share for the same period of 2001. Revenues decreased 32% to $3,054,971 compared to $4,495,770 in the first quarter of 2001. Gross profit decreased to $1,272,964, or 42% of revenues in 2002 compared to $2,512,819 or 56% of revenues in 2001. The Company's 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 15% to $2,020,529 in 2002 compared to $2,370,104 in 2001. "The decrease in sales reflects the loss of our Japanese distributor in 2001," said John Vickers
Sir John Stuart Vickers is Drummond Professor of Political Economy at the University of Oxford and a Fellow of All Souls College, Oxford. , Chairman and Interim 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. . "The reduction in operating expenses is only the beginning as we strive to reduce our costs. We are also working to address our Company's cash flow and liquidity needs by attempting to secure additional capital through issuances of debt or equity." As previously announced on April 24, 2002, Ben Gallant resigned his position as Chief Executive Officer and resigned from the Company's Board of Directors. John Vickers, who serves as the Company's Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , was appointed Chairman of the Board and Interim Chief Executive Officer. The Board of Directors has formed a search committee to locate and secure the services of a successor to Mr. Gallant. The Company intends to hire someone with proven 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. experience and credibility in the equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. markets and be able to implement a recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. plan. "The search committee is now in the final stages of its candidate search," said Mr. Vickers. "We expect to be able to announce our decision and introduce our selection in the coming weeks. We are excited about the opportunities that lie ahead and we are eager to continue working to make the Company's operations profitable." The Company also reported that it has recently entered into a consulting agreement with a public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most expert with the goal of raising the Company's visibility within the investment community. Upon execution of the consulting agreement, the Company issued the consultant a warrant to purchase up to 500,000 shares of its common stock at an exercise price equal to 90% of the closing bid price on the day prior to exercise. The warrant expires two months from the date of issuance. The Company makes 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 press release. The Company's forward-looking statements are subject to risks and uncertainties and include information about its expectations and possible or assumed future results of operations. When the Company uses any of the words "believes", "expects", "anticipates", "estimates" or similar expressions, it is making forward-looking statements. The Company claims the protection of 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. for forward-looking statements contained in 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 for all of its forward-looking statements. While the Company believes that its forward-looking statements are reasonable, you should not place undue reliance on any such forward-looking statements, which speak only as of the date made. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the Company's control or are subject to change, actual results could be materially different. Factors that might cause such a difference include, without limitation, the following: the possible failure to maintain the Company's ability to borrow under its line of credit, the potential inability of the Company to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. the line of credit indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. currently in default prior to the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the bank's forbearance Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. agreement in September 2002 and the other line of credit due in October 2002, the lack of availability of a suitable candidate with the requisite experience to fill the vacant Chief Executive Officer position, the Company's inability to secure the employment of such a candidate, 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 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 (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 or strategic alliances and the other risks and uncertainties set forth in this press release and in the Company's reports filed with the Securities and Exchange Commission. Other factors not currently anticipated by management may also materially and adversely affect the Company's results of operations. Except as required by applicable law, the Company does not undertake any obligation to publicly release any revisions which may be made to any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date of this press release. 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
2002 2001
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Revenues $3,054,971 $4,495,770
Cost of sales 1,782,007 1,982,951
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Gross profit 1,272,964 2,512,819
Operating expenses 2,020,529 2,370,104
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Income (loss) from operations (747,565) 142,715
Other income/(expense) (net of
interest expense) (41,181) (25,882)
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Net income (loss) before taxes (788,746) 116,833
Income tax (benefit) --- 12,000
------------ ------------
Net income (loss) ($ 788,746) $ 104,833
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Net income(loss) per diluted share ($0.11) $0.01
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Weighted average number of common and
common equivalent shares 6,862,348 7,037,696
American Medical Technologies, Inc.
Condensed Consolidated Balance Sheets
March 31 December 31
2002 2001
------------ ------------
(Unaudited)
Assets
Current assets:
Cash $ 182,867 $ 579,667
Accounts receivable 745,813 1,272,703
Inventories 6,959,253 7,182,780
Other current assets 483,746 310,669
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Total current assets 8,371,679 9,345,819
Property and equipment, net 2,020,785 2,090,970
Intangible assets, net 2,733,007 2,759,641
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Total assets $13,125,471 $14,196,430
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Liabilities and Stockholders Equity
Current liabilities:
Accounts payable 2,172,065 2,751,270
Accrued liabilities 774,799 781,619
Current debt 2,294,075 1,959,075
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Total current liabilities 5,240,939 5,491,964
Other non-current liabilities 59,803 78,048
Stockholders equity 7,824,729 8,626,418
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Total liabilities and stockholders equity $13,125,471 $14,196,430
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