Derma Sciences Reports Results for Second Quarter and Six Months.Business Editors
PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 15, 2002
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 6th consecutive profitable quarter since the Company began its turnaround in July 2000.
Adjusted net income continues to grow and cash flow remains positive.
Net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
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 quarter were $2.1 million verses $2.4 million in 2001. The decrease of $305,084, or 12.8%, was primarily the result of the discontinuation dis·con·tin·u·a·tion
A cessation; a discontinuance.
Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent)
discontinuance in May 2001of low margin product sales associated with a nursing home supply agreement. Gross profit for the quarter increased by $17,109 despite the sales decrease and gross profit percentage increased to 56.6% from 48.7% due to a favorable shift in sales mix sales mix
See product mix. to higher margin products.
Net income for the second quarter 2002 was $8,387 compared with $21,004 in 2001. Second quarter 2002 included a $94,928 charge relating to relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc a cancelled acquisition initiative. Non cash imputed interest Imputed Interest
A term used to describe interest considered to be paid, even through no interest payment has been made.
Imputed interest is calculated based upon actual payments that are to be paid, but have not yet been paid. costs of $7,500 and $40,000 were included in 2002 and 2001 net income, respectively. Second quarter 2001 also included $26,500 of goodwill amortization expense. Adjusting for these items, net income would have been $110,815 and $87,504 in the second quarter 2002 and 2001, respectively.
For the first six months of 2002 net sales decreased $561,651, or 11.8%, to $4.2 million from $4.8 million in 2001. Gross profit increased $92,367, or 4%, and gross profit percentage increased to 55.8% from 47.3% 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. continued to be in line with revenues. Net income for the first six months of 2002 was $72,602 compared to $30,193 in 2001. Six months 2002 net income included the $94,928 acquisition charge discussed above. Non cash imputed interest costs of $135,200 and $80,000 were included in 2002 and 2001 net income, respectively. Additionally, 2001 net income included $53,000 of goodwill amortization expense. Adjusting for these items, net income would have been $302,730 and $163,193 in the first half of 2002 and 2001, respectively.
For the first half of 2002 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 was $369,463. During this period $595,200 of 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. was converted to equity. The company also put in place a $2.5 million revolving line of credit Revolving line of credit
A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. and completed a private placement sale of common stock with proceeds of $650,000.
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, noted, "All of these results and actions have strengthened the Company's financial health which will better position Derma to achieve its goals of increasing profit and enhancing shareholder value. Later this month we expect to complete the acquisition of Dumex Medical, a Canadian based manufacturer and distributor of wound care products and medical devices. This addition will double our sales and strengthen our product offering."
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) Three months ended Six months ended June 30, June 30, 2002 2001 2002 2001 Net Sales $2,076,724 $2,381,808 $4,191,215 $4,752,866 Cost of Sales 900,678 1,222,871 1,850,632 2,504,650 Gross Profit 1,176,046 1,158,937 2,340,583 2,248,216 Operating Expenses 1,071,692 1,115,501 2,057,213 2,147,480 Interest Expenses 6,723 44,828 131,098 93,850 Other (income) expense, net 89,244 (22,396) 79,670 (23,307) Total Expenses 1,167,659 1,137,933 2,267,981 2,218,023 Income before provision for income taxes 8,387 21,004 72,602 30,193 Provision for income taxes - - - - Net Income $ 8,387 $ 21,004 $ 72,602 $ 30,193 Income per common share - basic $ 0.00 $ 0.01 $ 0.02 $ 0.01 Income per common share - diluted $ 0.00 $ 0.00 $ 0.01 $ 0.01 Shares used in computing income per common share - basic 3,854,609 2,407,109 3,438,970 2,343,490 Shares used in computing income per common share - diluted 7,154,322 4,370,451 6,814,264 4,361,185