Derma Sciences Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2002.Business EditorsPRINCETON Princeton, borough (1990 pop. 12,016) and surrounding township (1990 pop. 13,198), Mercer co., W central N.J.; settled late 1600s, borough inc. 1813, township est. 1838. A leading education center, it is the seat of Princeton Univ. , N.J.--(BUSINESS WIRE)--April 2, 2003 Derma der·ma n. See dermis. derma the corium, or true skin. Sciences, Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : DSCI DSCI Decision Science DSCI Digital Serial Communications Interface DSCI Doctor of the Science of Creative Intelligence (Maharishi European Research University) DSCI Days Since Co-Op Incident .OB) today reported its results for the fourth quarter and year ended December 31, 2002. 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 were $11,749,472 million for the twelve months of 2002 compared to $9,062,075 million in the comparable period of 2001, an increase of 29.7%. The increase in net sales of approximately $2.7 million included four months of sales from the Dumex acquisition, higher Percu Stay fastener sales, and increased sales of Suture suture /su·ture/ (soo´cher) 1. sutura. 2. a stitch or series of stitches made to secure apposition of the edges of a surgical or traumatic wound. 3. to apply such stitches. 4. Strips. Net income was $61,368, or $0.01 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 for the twelve months of 2002 compared to $192,398 or $0.04 per diluted share for the twelve month period in 2001. Adjusting for one-time charges related to conversion of bonds, acquisition related costs, goodwill amortization and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , the Company's net income would have been $740,496 and $458,398 in 2002 and 2001, respectively. For the fourth quarter ended December 31, 2002, the Company reported net sales of $4,421,716 and a net loss of $198,682 or $0.05 per diluted share compared to net sales of $2,218,723 and net income of $92,914 or $0.02 per diluted share for the fourth quarter of 2001. The significant increase in sales is attributable to the inclusion of Dumex sales. The net loss is due to one-time charges related to the Dumex acquisition and the resignation of a Company officer in the fourth quarter. Excluding these charges, the Company would have reported net income of $190,918 in the fourth quarter of 2002. Cash on hand increased $971,514 to $1,496,357 from $524,783 at December 31, 2002 and 2001, respectively, due principally to improved cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . Working capital increased $1,492,929 to $3,355,001 at December 31, 2002 from $1,862,072 at December 31, 2001 due principally to conversion of the Company's convertible bonds and related accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. to equity, proceeds from the Company's private offering of common stock and the positive cash flow from operations. Edward J. Quilty, 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. of Derma Sciences, commented, "Derma had an excellent year in 2002. The acquisition of Dumex in August broadened our product offering allowing us to become a fully integrated supplier of wound and skin care products. The recent additions of Robert Cole Robert Cole, as a person, may refer to:
About Derma Sciences, Inc: Derma Sciences, Inc. provides a full range of skin care, wound management and specialty securement devices that are used primarily in the professional markets, specifically hospitals, nursing homes and home care settings. For more information about Derma Sciences, Inc., visit its home page on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.dermasciences.com. Statements contained in this release that are not statements of historical fact may be deemed to be 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. . Without limiting the generality gen·er·al·i·ty n. pl. gen·er·al·i·ties 1. The state or quality of being general. 2. An observation or principle having general application; a generalization. 3. of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements which may be made in this release or which are otherwise made by or on behalf of the Company. Factors which may affect the Company's results include, but are not limited to, product demand, market acceptance, impact of competitive products and prices, product development, completion of an acquisition, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements Include, but are not limited to, those discussed in the Company's filings with the Securities and Exchange Commission. TABLE FOLLOWS
DERMA SCIENCES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Twelve months ended
December 31, December 30,
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2002 2001 2002 2001
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Net Sales $4,421,716 $2,218,723 $11,749,472 $9,062,075
Cost of Sales 2,916,423 1,095,089 6,489,270 4,604,355
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Gross Profit 1,505,293 1,123,634 5,260,202 4,457,720
Operating Expenses 1,664,875 1,014,898 4,891,019 4,144,923
Interest Expenses 72,494 46,464 239,079 187,476
Other (income) expense,
net (25,854) (27,142) 66,586 (75,577)
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Total Expenses 1,711,515 1,034,220 5,196,684 4,256,822
Income (loss) before
provision for income
taxes (206,222) 89,414 63,518 200,898
Provision (benefit) for
income taxes (7,540) (3,500) 2,150 8,500
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Net Income (loss) $(198,682) $92,914 $61,368 $192,398
Income (loss) per common
share - basic $(0.05) $0.04 $0.02 $0.08
Income (loss) per common
share - diluted $(0.05) $0.02 $0.01 $0.04
Shares used in computing
income per common share
- basic 4,368,233 2,407,109 3,740,307 2,375,299
Shares used in computing
income per common share
- diluted 4,368,233 4,503,036 6,886,113 4,398,341
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