Derma Sciences Announces First Quarter 2004 Results.Business Editors/Health/Medical WritersPRINCETON, N.J.--(BUSINESS WIRE)--May 14, 2004 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), a manufacturer and full line supplier of wound and skin care products, today reported financial results for its first quarter ended March 31, 2004. 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 for the first quarter of 2004 increased $813,183, or 19%, to $5,029,422 compared to $4,216,239 in the first quarter 2003. The increase in sales is primarily attributable to the inclusion in the first quarter, 2004 of incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales stemming from the acquisition of the Kimberly-Clark wound care business, commencement of private label sales to distributors and strong growth of the recently introduced Silverlon line of products. The Company incurred a net loss of $976,466 or ($0.11) per share (basic and 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. ) in the first quarter 2004 compared to a net income of $8,070 in the first quarter 2003. The Company had cash of $184,918 and working capital of $4,099,746 on hand at March 31, 2004. 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, "I am pleased with our record sales performance and expect increased sales in future quarters as our growth initiatives begin to come on line. In the first quarter, we terminated the employment of the president of our Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations. The Company recorded an estimated charge of $450,000 relative to 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 and other costs associated with this termination. However, the Company is actively investigating possible defenses to the payment of such severance and related costs. Other items affecting first quarter profitability included a sales shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. of $237,000 in our most profitable Dermagran Dermagran® Wound care A hydrophilic dressing for removing dead and damaged tissue from wounds used for surgical incisions, skin ulcers, pressure sores, lacerations, cuts, abrasions, diabetic ulcers, partial-thickness and hypothermia burns wound care product line and $263,000 of other charges associated with bad debts, inventory obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. , fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → write-offs and charges related to the closure of one of our distribution centers. Dermagran sales are expected to rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the second quarter." Mr. Quilty concluded, "On a positive note, the Company continued to make investments during the quarter in support of planned growth and improved profitability. Our new U.S. distribution center came on line in early March. A new marketing director was added in February to support planned sales growth. Derma Sciences is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of major renovations to its manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Toronto that will improve productivity and lower product costs. The Company hired a new materials manager in March and we have been successful in negotiating lower material costs from a number of our major suppliers. Significantly lower cost of goods in the second half of 2004 are expected. We are confident that the steps being taken will improve the value of the business and achieve profits consistent with our own expectations and those of our shareholders." You are invited to listen to the first quarter ended March 31, 2004 conference call on Friday, May 14 at 4:15 p.m., EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT (Eastern Daylight Time), with CEO & President, Edward Quilty. 2004 first quarter earnings will be released on Friday, May 14, 2004 after 4 p.m. EDT. Webcast address: www.fulldisclosure.com, www.streetevents.com. Dial-in numbers: 1-800-599-9795, (domestic), and l-617-786-2905, (international) passcode #85395835. If you are unable to participate, an audio digital replay of the call will be available from Friday, May 14 at 7:00 p.m., EDT until Midnight EDT on May 21 by dialing 1-888-286-8010 (domestic) or 617-801-6888 (international) using confirmation code #53307148. A web archive will be available for 30 days at www.companyboardroom.com, www.streetevents.com. 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 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.
DERMA SCIENCES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
DERMA SCIENCES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
----------------------------------------------------------------------
March 31,
----------------------------------------------------------------------
2004 2003
----------------------------------------------------------------------
Net Sales $5,029,422 $4,216,239
----------------------------------------------------------------------
----------------------------------------------------------------------
Cost of Sales 3,579,613 2,689,229
----------------------------------------------------------------------
Gross Profit 1,449,809 1,527,010
----------------------------------------------------------------------
Operating Expenses 2,261,958 1,455,097
----------------------------------------------------------------------
Interest Expense, net 46,667 113,439
----------------------------------------------------------------------
Other expense (income), net 117,650 (49,596)
----------------------------------------------------------------------
Total Expenses 2,426,275 1,518,940
----------------------------------------------------------------------
(Loss) income before provision for income taxes (976,466) 8,070
----------------------------------------------------------------------
Provision for income taxes - -
----------------------------------------------------------------------
Net (loss) income $(976,466) $8,070
----------------------------------------------------------------------
(Loss) Income per common share - basic ($0.11) $0.00
----------------------------------------------------------------------
(Loss) Income per common share - diluted ($0.11) $0.00
----------------------------------------------------------------------
Shares used in computing (loss) income per
common share - basic 8,809,151 4,631,276
----------------------------------------------------------------------
Shares used in computing (loss) income per
common share - diluted 8,809,151 7,174,116
----------------------------------------------------------------------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion