CORRECTING and REPLACING Compex Technologies Reports Record Fiscal 2003 Fourth Quarter Results; Record Gross Margins, Net Income and EPS Achieved, Issued Sept. 16, 2003.Business Editors CORRECTION CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. ...by Compex Technologies, Inc. NEW BRIGHTON New Brighton, village (1990 pop. 22,207), Ramsey co., SE Minn., a suburb of Minneapolis–Saint Paul; inc. 1891. Its manufactures include metal products, machinery, and leather. A theological seminary is there. , Minn.--(BUSINESS WIRE)--Sept. 17, 2003 In BW6073 issued Sept. 16, 2003: The Statements of Operations (Unaudited) table was omitted. The corrected release reads: COMPEX TECHNOLOGIES REPORTS RECORD FISCAL 2003 FOURTH QUARTER RESULTS; RECORD GROSS MARGINS, NET INCOME AND EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ACHIEVED Compex Technologies, Inc. (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 NM: CMPX CMPX Complex ) today reported results of operations for the fiscal fourth quarter ended June June: see month. 30, 2003. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. revenue for the fourth quarter was $19.8 million, a decrease of 1% versus the prior year's fourth quarter revenue of $20.1 million. U.S. revenue was $12.8 million, up 3% from $12.5 million in the same period last year. International revenue was $7.1 million compared with $7.6 million in the prior year's fourth quarter. The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the quarter was 71.5%, compared with 68.6% last year. Selling, general and administrative expenses were $10.8 million, or 54.4% of revenue, compared with $10.9 million and 54.0%, respectively, in the fiscal 2002 quarter. Net income for the quarter was $1.7 million, or $0.15 per 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. share, compared with $1.3 million, or $0.12 per diluted share in the same period last year. For the full year ended June 30, 2003, net revenue was $75.5 million, an increase of 4% compared with total revenue of $72.5 million for the full year ended June 30, 2002. Net income for the full year of fiscal 2003 was $5.0 million, or $0.45 per diluted share, compared with $4.9 million, or $0.44 per diluted share in the prior fiscal year. "We are extremely pleased with our performance during the quarter," commented Dan W. Gladney, 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. . "Although fourth quarter revenues were essentially flat as compared to a year ago, they were up for the fourth consecutive quarter. Our margins and EPS improved for the third consecutive quarter, reaching record levels. Most significantly, for the fiscal fourth quarter and full year, we achieved record net income." "Since the end of the quarter," continued Mr. Gladney, "we have acquired Filsport Assistance S.r.l., our Italian distributor for Compex, and signed football great Jerry Rice Jerry Lee Rice (born October 13, 1962 in Crawford, Mississippi) is a former football wide receiver in the NFL. Rice is widely regarded as one of the greatest players in NFL history, consistently showing exceptional performance and strong work ethic on and off of the field. as Spokesperson for Compex Sport. We've we've Contraction of we have. we've have received corporate recognition on Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes .com, and have had three analysts initiate coverage Initiate coverage (1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position). on us over the past two months. Our business continues to track on plan and we are excited about the year to come." Consistent with the initiatives started in fiscal 2003, Gladney indicated that "we expect to invest heavily in marketing during our year ending June 2004 as we ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale the advertising and promotional campaigns for our consumer and new medical products. As a result of the increased spending and assuming gradual The Gradual (Latin: graduale, sometimes called the Grail) is a chant in the extraordinary form of the Roman Catholic Mass, sung after the reading or singing of the Epistle and before the Alleluia, or, during penitential seasons, before the Tract. consumer acceptance, we expect earnings for the first half of fiscal 2004 to be down year-over-year. Our challenge throughout the year is to not just manage expenditures, but more importantly to turn that spending into solid revenue growth and meet our earnings objectives for the full fiscal year. More specifically, our objective is to grow revenue to between $90 to $93 million with earnings between $0.46 to $0.50 a share for the full fiscal year." Compex Technologies has scheduled an investor conference call at 1:00 p.m. Eastern Time on Wednesday Wednesday: see week. , September September: see month. 17th, at which it will discuss: -- Results of operations for the year ended June 30, 2003 -- Recent developments in new product initiatives, endorsements, acquisitions and personnel changes -- Goals and objectives for the year ending June 30, 2004. To participate in the live call, please dial (800) 227-9428 and reference Conference ID: Compex. International callers please dial (785) 832-2422 and use the same Conference ID. A telephone replay will be available until 11:00 p.m. Eastern Time on September 30th by dialing (888) 274-8335 domestically and (402) 220-2327 internationally. Investors may also find investor information, including information about how to access replays of the conference call, at the Compex Technologies website at www.compextechnologies.com under the caption "About Us - Investor Relations Investor relations The process by which the corporation communicates with its investors. ." Compex Technologies, Inc. is engaged in the manufacture and sale of healthcare products based upon electrical stimulation stimulation /stim·u·la·tion/ (stim?u-la´shun) the act or process of stimulating; the condition of being stimulated. deep brain stimulation technologies designed to improve health, wellness, athletic athletic (athlet´ik), adj pertaining to a bodily constitution characterized by a strong, muscular, robust appearance. athletic injuries, n. performance and physical fitness. Cautionary Statement: All statements other than historical facts included in this release regarding future operations, and particularly on the outlook for 2003, are subject to the risks inherent in predictions and "forward looking statements." These statements are based on the beliefs and assumptions of management of Compex Technologies and on information currently available to management. Nevertheless, these 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. should not be construed as guarantees of future performance. They involve risks, uncertainties, and assumptions identified in Compex Technologies filings with the SEC, including: -- The effect of acquisitions on our results of operations; -- The difficulties in predicting the amount and timing of consumer acceptance of new products; -- The increasing reliance on results of our international operations; -- The effect of fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. exchange rates on our international results; -- Our substantial balances of third-party billing business and resulting accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and the sensitivity of our results to the accuracy of its reserve for uncollectible Adj. 1. uncollectible - not capable of being collected; "a bad (or uncollectible) debt" bad invalid - having no cogency or legal force; "invalid reasoning"; "an invalid driver's license" receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed ; -- Changes in, and our compliance with, regulation and industry practice that affects the rates at which its products are reimbursed, the way it manufactures its products, and the documentation which it submits for reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. ; Other factors that affect the industry in which Compex Technologies functions include negative publicity about electrical stimulation products for medical and fitness applications and world events that affect the economies of the countries in which its products are sold.
COMPEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30
2002 2003
------------ ------------
ASSETS
------
Current Assets:
Cash and cash equivalents $2,086,650 $5,056,007
Receivables, less reserves of $12,891,864
and $14,869,318 23,629,117 24,955,130
Inventories -
Raw materials 2,368,203 1,393,470
Work in process 80,265 33,670
Finished goods 6,522,790 10,301,198
Deferred tax assets 4,655,631 4,655,631
Prepaid expenses 1,641,378 2,378,044
------------ ------------
Total current assets 40,984,034 48,773,150
Property, plant and equipment, net 4,679,778 4,536,804
Goodwill, net 9,833,090 10,583,287
Other intangible assets, net 1,150,652 883,634
Deferred tax assets 702,567 917,541
Other assets 127,615 104,743
------------ ------------
$57,477,736 $65,799,159
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Current maturities of long-term debt $2,520,775 $5,363,850
Note payable ---- 4,500,000
Accounts payable 3,312,767 4,028,608
Accrued liabilities -
Payroll 607,409 692,710
Commissions 437,530 427,326
Income taxes 2,670,766 2,872,193
Other 5,656,988 4,476,675
------------ ------------
Total current liabilities 15,206,235 22,361,362
Long-Term Liabilities:
Long term-debt 6,455,209 1,217,268
Deferred tax liabilities 535,102 675,885
------------ ------------
Total liabilities 22,196,546 24,254,515
Stockholders' Equity:
Common stock, $.10 par value: 30,000,000
shares authorized; issued and outstanding
10,922,618 and 10,948,469 shares,
respectively 1,092,262 1,094,847
Preferred stock, no par value: 5,000,000
shares authorized; none issued and
outstanding ---- ----
Additional paid-in capital 21,564,096 21,650,978
Unearned compensation on restricted stock (77,813) ----
Accumulated other non-owner changes in
equity 735,564 1,870,183
Retained earnings 11,967,081 16,928,636
------------ ------------
Total stockholders' equity 35,281,190 41,544,644
------------ ------------
$57,477,736 $65,799,159
============ ============
COMPEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30
2001 2002 2003
------------- ------------- ------------
Net sales and rental revenue $62,957,415 $72,506,677 $75,459,916
Cost of sales and rentals 19,712,330 23,533,761 22,578,263
------------- ------------- -------------
Gross profit 43,245,085 48,972,916 52,881,653
Operating expenses:
Selling, general and
administrative 34,337,362 37,694,707 42,170,026
Research and development 1,885,711 2,090,110 2,122,659
Total operating 36,223,073 39,784,817 44,292,685
expenses ------------- ------------- -------------
Income from operations 7,022,012 9,188,099 8,588,968
Other income (expense):
Interest expense (1,276,623) (674,737) (428,467)
Other 78,600 6,648 109,054
------------- ------------- -------------
Income before income
taxes 5,823,989 8,520,010 8,269,555
Income tax provision 2,504,000 3,578,000 3,308,000
------------- ------------- -------------
Net income $3,319,989 $4,942,010 $4,961,555
============= ============= =============
Net income per common and
common equivalent share
Basic $.31 $.45 $.45
============= ============= =============
Diluted $.31 $.44 $.45
============= ============= =============
Weighted average number of
shares outstanding
Basic 10,638,422 10,867,744 10,951,808
============= ============= =============
Diluted 10,692,866 11,115,322 11,068,860
============= ============= =============
COMPEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Twelve Months Ended
June 30 June 30
------------------------- -------------------------
2002 2003 2002 2003
------------ ------------ ------------ ------------
Net sales and
rental revenue $20,102,140 $19,843,748 $72,506,677 $75,459,916
Cost of sales and
rentals 6,309,084 5,647,921 23,533,761 22,578,263
------------ ------------ ------------ ------------
Gross profit 13,793,056 14,195,827 48,972,916 52,881,653
Operating expenses:
Selling, general
and
administrative 10,863,552 10,811,686 37,694,707 42,170,026
Research and
development 514,466 508,687 2,090,110 2,122,659
Total operating
expenses 11,378,018 11,320,373 39,784,817 44,292,685
------------ ------------ ------------ ------------
Income from
operations 2,415,038 2,875,454 9,188,099 8,588,968
Other income
(expense):
Interest expense (115,157) (111,977) (674,737) (428,467)
Other (7,589) 31,377 6,648 109,054
------------ ------------ ------------ ------------
Income before
income taxes 2,292,292 2,794,854 8,520,010 8,269,555
Income tax
provision 962,000 1,118,000 3,578,000 3,308,000
------------ ------------ ------------ ------------
Net income $1,330,292 $1,676,854 $4,942,010 $4,961,555
============ ============ ============ ============
Net income per
common and common
equivalent share
Basic $.12 $.15 $.45 $.45
============ ============ ============ ============
Diluted $.12 $.15 $.44 $.45
============ ============ ============ ============
Weighted average
number of shares
outstanding
Basic 10,922,700 10,945,667 10,867,744 10,951,808
============ ============ ============ ============
Diluted 11,238,079 11,276,031 11,115,322 11,068,860
============ ============ ============ ============
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