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STERIS REPORTS RECORD FINANCIAL RESULTS IN FISCAL 1994 SECOND QUARTER AND FIRST SIX MONTHS

 MENTOR, Ohio, Oct. 27 /PRNewswire/ -- STERIS Corporation (NASDAQ: STRL) today announced record second quarter and first half net sales, net income and net income per share.
 Net sales in the three months ended Sept. 30, 1993, increased 69 percent to $10,471,000 from $6,180,000 in the fiscal second quarter a year ago. Net income in the fiscal 1994 second quarter was $1,107,000, an increase of 178 percent from the net income of $398,000 in the fiscal 1993 second quarter. Net income per share for the quarter was $0.12 compared to $0.05 in the same period last year, an increase of 140 percent. This year's second quarter results are calculated at the fully taxed statutory rates. Income tax expense was minimal in fiscal 1993 because of the company's net operating loss carryforward.
 Net sales for the first six months of fiscal 1994 were $19,528,000, an increase of $8,394,000, or 75 percent, over the fiscal 1993 first half net sales of $11,134,000. Income for the 1994 fiscal first half before the cumulative effect of an accounting change was $2,071,000, or $0.22 per share, a 239 percent increase over net income of $611,000, or $0.08 per share, recorded in the first half of fiscal 1993.
 In the first quarter of fiscal 1994, the company was required to adopt FASB Statement No. 109, "Accounting for Income Taxes." The cumulative effect of the change in the method of accounting increased net income by $1,220,000, or $0.13 per share. The resulting net income for the first six months of fiscal 1994 was $3,291,000 compared to $611,000 in the fiscal 1993 first half, a 439 percent increase. First half net income per share increased to $0.35 in fiscal 1994 from $0.08 in last year's first six months.
 Bill R. Sanford, STERIS' chairman, president and chief executive officer, stated, "The Company's overall performance in the fiscal 1994 second quarter was excellent. Sales of new systems and consumables were strong as a result of continuing customer acceptance and the effectiveness of our direct U.S. sales force. Record STERIS 20(TM) Sterilant sales for the quarter more than doubled last year's second quarter sterilant volume. The gross profit percentage was also at a record high because of selling price firmness, volume efficiencies and product mix."
 Mr. Sanford continued, "Our substantial investments in customer training, U.S. sales force expansion and internal customer support systems are producing favorable results. Over 2,000 customer representatives, primarily nurses, have participated in the 2-day Operator Training Program in the STERIS Training and Education Center in Mentor, Ohio. The record sales of new systems and sterilant during the quarter were because of increasing order volume from both new and present customers, representing expanding market penetration and a high level of customer satisfaction. Our key business indicators remain positive, and we have seen no evidence of a business slowdown despite widespread news accounts of overall healthcare market uncertainties."
 STERIS Corporation develops, manufactures and markets sterile processing and infection prevention systems and related consumables and accessories for the healthcare market. Current products include sterile processing systems for the rapid, safe and cost-effective sterile processing of immersible surgical and diagnostic devices between patient procedures in less than 30 minutes at the site of patient care. New products under development and pre-market regulatory review include a smaller sterile processing system for the physician, dental and microsurgery markets, and a complete system for on-site destruction and decontamination of biohazardous waste.
 STERIS CORPORATION
 STATEMENTS OF INCOME (Unaudited)
 (In Thousands, Except Share and Per Share Amounts)
 Three Months Ended
 Sept. 30,
 1993 1992
 NET REVENUE $10,471 $6,180
 Cost of products sold 4,176 2,672
 GROSS PROFIT 6,295 3,508
 Costs and expenses
 Selling, general and administrative 3,601 2,534
 Research and development 997 674
 Total 4,598 3,208
 INCOME FROM OPERATIONS 1,697 300
 Interest income, net 148 98
 INCOME BEFORE INCOME TAXES AND
 CUMULATIVE EFFECT OF ACCOUNTING
 CHANGE 1,845 398
 Income taxes (Note A) 738 0
 INCOME BEFORE CUMULATIVE EFFECT OF
 ACCOUNTING CHANGE 1,107 398
 Cumulative effect as of March 31, 1993,
 of change in method of accounting
 for income taxes (Note B) 0 0
 NET INCOME $1,107 $ 398
 Earnings per share:
 Income before cumulative effect
 of accounting change $.12 $.05
 Cumulative effect of accounting change $.00 $.00
 Net income per common share $.12 $.05
 Weighted average number of shares
 outstanding 9,315,880 8,622,604
 Six Months Ended
 Sept. 30,
 1993 1992
 NET REVENUE $19,528 $11,134
 Cost of products sold 7,867 4,748
 GROSS PROFIT 11,661 6,386
 Costs and expenses
 Selling, general and administrative 6,622 4,618
 Research and development 1,878 1,276
 Total 8,500 5,894
 INCOME FROM OPERATIONS 3,161 492
 Interest income, net 290 127
 INCOME BEFORE INCOME TAXES AND
 CUMULATIVE EFFECT OF ACCOUNTING
 CHANGE 3,451 619
 Income taxes (Note A) 1,380 8
 INCOME BEFORE CUMULATIVE EFFECT OF
 ACCOUNTING CHANGE 2,071 611
 Cumulative effect as of March 31, 1993,
 of change in method of accounting
 for income taxes (Note B) 1,220 0
 NET INCOME $3,291 $ 611
 Earnings per share:
 Income before cumulative effect
 of accounting change $.22 $.08
 Cumulative effect of accounting change $.13 $.00
 Net income per common share $.35 $.08
 Weighted average number of shares
 outstanding 9,310,076 7,527,042
 BALANCE SHEETS
 Sept. 30, March 31,
 1993 1993
 (Unaudited) (Audited)
 ASSETS
 Current assets $31,082 $28,827
 Property, plant and equipment, net 2,448 1,559
 Other assets 1,349 476
 TOTAL ASSETS $34,879 $30,862
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities $ 4,107 $ 3,972
 Long-term liabilities 0 0
 Shareholders' equity 30,772 26,890
 TOTAL $34,879 $30,862
 Note A: Income tax expense for the second quarter and first six months of fiscal 1993 was minimal because of the company's net operating loss carryforwards.
 Note B: Effective April 1, 1993, the company was required to adopt FASB Statement No. 109, "Accounting For Income Taxes." This adjustment relates primarily to the recording of available tax net operating loss carryforwards which expire beginning in 2004. Financial statements for prior years have not been restated.
 -0- 10/27/93 R
 /CONTACT: Bill R. Sanford, chairman, president and CEO, of STERIS Corporation, 216-354-2600/
 (STRL)


CO: STERIS Corporation ST: Ohio IN: MTC SU: ERN

AR-BM -- CL001 -- 7330 10/27/93 13:10 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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