PolyMedica Industries announces record fiscal 1997 revenues of $30.5 million and net income of $2.3 million.WOBURN Woburn, village, England Woburn (w  `bərn), village, Bedfordshire, S central England. , Mass.--(BW HealthWire)--May 12, 1997--PolyMedica
Industries Inc. (AMEX AMEXSee: American Stock Exchange : PM) today reported the highest annual revenues and net income in the company's history. Record revenues of $30.5 million generated for its fiscal year ended March 31, 1997 represent an increase of 23 percent compared to revenues of $24.8 million generated in fiscal 1996. Record net income of $2.3 million in fiscal 1997, or $0.27 per common share, compares to $274,000, or $0.04 per common share, earned in fiscal 1996. Fueled largely by the Sept. 1996 strategic acquisition of Liberty Medical Supply, a rapidly growing direct-mail provider of diabetic diabetic /di·a·bet·ic/ (-bet´ik) 1. pertaining to or affected with diabetes. 2. a person with diabetes. di·a·bet·ic adj. 1. supplies to Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. patients, the company generated record quarterly revenues of $9.3 million in the fourth quarter ended March 31, 1997. This performance is a 68 percent increase over the $5.6 million in revenues generated in the fourth quarter of fiscal 1996 and is the company's second successive quarter of record revenues. The company's spin-out last year of CardioTech International Inc. (AMEX: CTE (Coefficient of Thermal Expansion) The difference between the way two materials expand when heat is applied. This is very critical when chips are mounted to printed circuit boards, because the silicon chip expands at a different rate than the plastic board. ) in a tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. distribution to PolyMedica stockholders resulted in a $2.8 million loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in fiscal 1996. Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. J. Lee, chairman and chief executive officer, stated: "Fiscal 1997 was a year of growth and transition for PolyMedica. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales of Liberty Medical products have increased from $12 million at the time of the acquisition, to more than $20 million, an annualized growth rate of more than 65 percent after only six months of ownership. Ongoing television advertising, as well as other promotional programs, continue to provide significant visibility and growth opportunities for PolyMedica." The company's products and services represent three businesses and generated the following revenues during fiscal 1997. Diabetes Supplies sold by Liberty Medical contributed $8.7 million in product sales during its ownership by PolyMedica. Consumer Healthcare, which includes over-the-counter medical devices and urinary urinary /uri·nary/ (u´ri-nar?e) pertaining to, containing, or secreting urine. u·ri·nar·y adj. 1. Relating to urine and its production, function, or excretion. 2. discomfort Discomfort may refer to pain, an unpleasant sensation, or to suffering, an unpleasant feeling or emotion. products, contributed $10.3 million, and represents a 17 percent increase in product sales when compared to fiscal 1996. This growth was led by sales of AZO-STANDARD, the largest volume OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). product in the rapidly growing urinary discomfort category. The third business, Professional Products, includes prescription urologicals and dressings, and generated $10.9 million in products sales, a decrease of 29 percent when compared to fiscal 1996. This decrease is primarily a result of an anticipated decline in sales of wound dressings due to a combination of regulatory and market factors. The company has responded by actively pursuing private label supply relationships and directly marketing its branded dressings. The company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. to total capital ratio is 34 percent. The company maintains a strong working capital position following the acquisition of Liberty Medical and after incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. costs associated with the spin-out of CardioTech. Lee further stated, "PolyMedica today is focusing on achieving two strategic objectives: to expand its leadership in delivery of diabetic supplies to senior citizens through Liberty Medical Supply and significantly grow its consumer healthcare business. The company sells its products through a combination of telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. , national distributors, wholesalers, mail-order mail order n. An order for goods to be shipped through the mail.  -or catalogs and retail chains,
including approximately 36,000 drug stores. Our recent hire of an
experienced vice president of marketing introduces in-house In-houseIn the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. expertise for brand management, market research and consumer affairs." PolyMedica a is leading provider of targeted medical products and services. Its products and services are in diabetes supplies, consumer healthcare and professional products. The company is headquartered in Woburn, Mass., with other facilities in Palm City, Fla. and Golden, Colo. -0- This press release contains 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. as that term is defined 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. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, fluctuations in customer demand, intensity of competition from other healthcare product vendors, timing and acceptance of new product introductions, general economic conditions and regulatory changes, as well as other especially relevant risks detailed in the company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended March 31, 1996 and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the periods ended June 30, 1996, Sept. 30, 1996 and Dec. 31, 1996, and the information set forth herein should be read in light of such risks. The company assumes no obligation to update the information contained in this press release. -0-
PolyMedica Industries, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share amounts)
Three months ended Year ended
March 31, March 31, March 31, March 31,
1997 1996 1997 1996
Product sales $ 9,330 $ 5,488 $ 29,880 $ 24,328
Royalty,
exclusivity,
development and
license fees 16 91 573 435
Net revenues 9,346 5,579 30,453 24,763
Cost of
goods sold 4,757 2,777 13,603 10,210
Net revenues
less cost of
goods sold 4,589 2,802 16,850 14,553
Operating expenses:
Selling, general
and
administrative 3,517 2,102 12,315 8,988
Research and
development 146 84 670 649
3,663 2,186 12,985 9,637
Operating income 926 616 3,865 4,916
Other income/expense:
Interest income 174 272 864 892
Interest expense (701) (681) (2,774) (2,678)
(527) (409) (1,910) (1,786)
Income from continuing
operations before
income taxes 399 207 1,955 3,130
Income tax
provision
(benefit) (413) (367) 55
Income from continuing
operations 812 207 2,322 3,075
Discontinued operations:
Loss from operations
of CardioTech
International, Inc. (180) (923)
Loss on disposal of
CardioTech
International, Inc. (1,878) (1,878)
Loss from discontinued
operations (2,058) (2,801)
Net income (loss) $ 812 ($1,851) $ 2,322 $ 274
Average common
shares outstanding 8,782 7,954 8,618 7,492
EPS:
Income from continuing
operations $ 0.09 $ 0.03 $ 0.27 $ 0.41
Loss from discontinued
operations ($0.26) ($0.37)
Net income (loss) $ 0.09 ($0.23) $ 0.27 $ 0.04
-0-
PolyMedica Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)
March March
31, 1997 31, 1996
Assets
Current assets:
Cash and cash equivalents $ 11,028 $ 23,302
Accounts receivable - trade, net 6,202 2,558
Accounts receivable - other 362 74
Inventories 5,481 4,163
Prepaid expenses and
other current assets 1,116 342
Total current assets 24,189 30,439
Property, plant and equipment, net 6,271 6,273
Intangible assets, net 42,024 35,500
Deferred tax asset 1,133 -
Other assets, net 1,616 361
Total assets $ 75,233 $ 72,573
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable - trade 2,982 1,288
Accrued expenses 3,403 3,605
Senior debt and
notes payable 2,658 -
Total current liabilities 9,043 4,893
Senior debt and notes payable, net of
amortization 22,818 24,400
Total liabilities 31,861 29,293
Stockholders' equity:
Preferred stock $.01 par value - -
Common stock $.01 par value 86 81
Treasury stock, at cost (1,115) (1,036)
Additional paid-in capital 53,338 54,917
Accumulated deficit (7,784) (10,105)
Notes receivable from officers (929) (415)
Currency translation adjustment (224) (162)
Total stockholders' equity 43,372 43,280
Total liabilities and
stockholders' equity $ 75,233 $ 72,573
CONTACT: PolyMedica Industries Eric G Eric G was a Miami Bass/Hip-Hop rapper, DJ, and producer, acting as the primary creative force behind Triple M DJ Crew, the Bass Station parties and night club, the rap group Worse 'em Crew, the Bass Station record label, and Never Stop Productions . Walters 617/933-2020 |
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