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MEDICAL TECHNOLOGY SYSTEMS ANNOUNCES 121 PERCENT INCREASE IN EARNINGS PER SHARE AND 33RD CONSECUTIVE QUARTER OF NET SALES AND EARNINGS GROWTH

 CLEARWATER, Fla., Aug. 19 /PRNewswire/ -- Medical Technology Systems, Inc. (NASDAQ-NMS: MSYS) reported that for the first fiscal quarter ended June 30, 1993, net income from operations after taxes increased 26 percent to $647,966 compared to $514,689 in the year-ago quarter. Total net income after taxes and the one time gain of the cumulative effect of the accounting change for adoption of FASB 109 (a gain of $543,683) increased 132 percent to $1,191,649 compared to $514,689. On a per share basis, net income from operations after taxes was up 21 percent to $0.17 on 3,863,937 average common shares outstanding compared to $0.14 on 3,664,109 average common shares outstanding. Total net income per share after taxes and the cumulative effect of the accounting change (a gain of $0.14) increased 121 percent to $0.31 compared to $0.14. Net sales and services increased 37% to $4.2 million compared to $3.1 million.
 Harold B. Siegel, president and CEO, said first quarter growth reflected continued industry acceptance of the company's cost-saving products and services for institutional healthcare pharmacists and their customers. Net sales were highlighted by a 19 percent increase in unfilled medication cards to $1.9 million and the addition of $1.5 million from the MTS Vangard operation. Vangard, acquired June 1, 1992, packages generic pharmaceuticals in oral unit dose blister packs. Revenues and profits of the Clinical Laboratory Division reflect accrual provisions made in anticipation of changes in federal health care spending. As a result, laboratory revenues declined 16 percent to $765,000 from $907,000 with corresponding profits decreasing 42 percent to $245,000 from $423,000. This trend, affecting only the Laboratory Division, is already showing corrections by increased sales and testing, and full recovery is expected by the third fiscal quarter.
 Mr. Siegel said growth trends are continuing in the second quarter ending in September and should continue for the balance of the fiscal year: "Med-Tech and Sandoz's discussions towards a definitive agreement to form a company which will produce and sell pre-filled medication cards continue at a brisk pace. The company expects that the agreement could be finalized by the end of September. In addition, Med-Tech anticipates good results in its program aimed at marketing its clinical laboratory services to the nursing homes serviced by pharmacists using Med-Tech's medication cards."
 Medical Technology Systems, Inc. of Clearwater, Fla. is the nation's largest supplier of cost-saving medication card supplies, systems and equipment to institutional healthcare pharmacists. Medication cards are a more efficient and economical way for pharmacists to package, and nursing staffs to dispense and monitor, patient medication. The company also packages generic pharmaceuticals in oral unit dose blister packs, manufactures pharmaceutical labels and provides clinical laboratory services for physicians.
 NOTE: Financial Accounting Standards Board (FASB) rule 109 changes the method of accounting for income taxes, which, in the case of Medical Technology Systems, resulted in the determination that the company had overstated its past income tax liability by $543,683.
 MEDICAL TECHNOLOGY SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited)
 Periods ended June 30 Three Months
 1993 1992
 Net Sales and Services $4,179,014 $3,051,884
 Cost of Sales and Services 2,149,654 1,640,949
 Gross Profit 2,029,360 1,410,935
 Operating Expenses:
 SG&A 568,845 318,647
 Depreciation & Amortization 295,242 178,252
 Interest, Net 120,167 83,893
 Total Operating Expenses 984,254 580,792
 Income from Operations
 Before Income Taxes 1,045,106 830,143
 Income Taxes 397,140 315,454
 Income from Operations 647,966 514,689
 Cumulative Effect of Accounting
 Change for Adoption of SFAS No. 109
 on Income Taxes 543,683 0
 Net Income $1,191,649 $514,689
 Primary Earnings per Common Share:
 Income from Operations $0.17 $0.14
 Cumulative Effect of SFAS No. 109
 Accounting Change 0.14 0
 $0.31 $0.14
 Weighted Average Common Shares
 Outstanding, Primary 3,863,937 3,664,109
 -0- 8/19/93
 /CONTACT: Harold B. Siegel, president & CEO of Medical Technology Systems, 800-334-6663 or 813-576-6311, or Gary Fishman of The Hudson Stone Group, 212-983-8550/
 (MSYS)


CO: Medical Technology Systems, Inc. ST: Florida IN: MTC SU: ERN

TM -- NY006 -- 4184 08/19/93 08:38 EDT
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Publication:PR Newswire
Date:Aug 19, 1993
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