-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AZY69UHIeGX3SdkvDyIvp9V+YPlXF4wWiB57AajRhEEOq5tBs5w7xWFgXyfZIIB+ pSgqWUkUdyQ21xCEcX4agA== 0001157523-04-010145.txt : 20041101 0001157523-04-010145.hdr.sgml : 20041101 20041101100040 ACCESSION NUMBER: 0001157523-04-010145 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041101 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041101 DATE AS OF CHANGE: 20041101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHARPS COMPLIANCE CORP CENTRAL INDEX KEY: 0000898770 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 742657168 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22390 FILM NUMBER: 041108430 BUSINESS ADDRESS: STREET 1: 9350 KIRBY DRIVE STREET 2: STE 300 CITY: HOUSTON STATE: TX ZIP: 77054 BUSINESS PHONE: 713-432-0300 MAIL ADDRESS: STREET 1: 9350 KIRBY DRIVE STREET 2: STE 300 CITY: HOUSTON STATE: TX ZIP: 77054 FORMER COMPANY: FORMER CONFORMED NAME: US MEDICAL SYSTEMS INC DATE OF NAME CHANGE: 19970128 FORMER COMPANY: FORMER CONFORMED NAME: MEDICAL POLYMERS TECHNOLOGIES INC DATE OF NAME CHANGE: 19930916 8-K 1 a4754303.txt SHARPS COMPLIANCE 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): November 1, 2004 (November 1, 2004) Sharps Compliance Corp. (Exact Name of Registrant as Specified in Charter) Delaware 000-22390 74-2657168 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 9350 Kirby Drive, Suite 300, Houston, Texas 77054 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (713) 432-0300 TABLE OF CONTENTS Item 2.02. Disclosure of Results of Operations and Financial Condition Item 9.01. Financial Statements and Exhibits SIGNATURE INDEX TO EXHIBITS Press Release Item 2.02. Disclosure of Results of Operations and Financial Condition On November 1, 2004, the Company announced its results of operations for the three months ended September 30, 2004. A copy of the earnings release is attached as Exhibit 99.1. The information in this Current Report is being furnished pursuant to Item 12 of Form 8-K and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Act of 1934, as amended, and Section 11 of the Securities Act of 1933, as amended, or otherwise subject to the liabilities of those sections. This Current Report will not be deemed an admission by the Company as to the materiality of any information in this report that is not required to be disclosed solely by Item 12. The Company does not undertake a duty to update the information in this Current Report and cautions that the information included in this Current Report is current only as of November 1, 2004 and may change thereafter. Item 9.01. Financial Information, Pro Forma Financial Information and Exhibits (a) Financial Information Not applicable. (b) Pro Forma Financial Information Not applicable. (c) Exhibits Exhibit Description 99.1 Press Release, dated November 1, 2004 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this current report to be signed on its behalf by the undersigned hereunto duly authorized. SHARPS COMPLIANCE CORP. DATE: NOVEMBER 1, 2004 By: /s/ DAVID P. TUSA ------------------- Name: David P. Tusa Title: Senior Vice President and Chief Financial Officer 3 INDEX TO EXHIBITS Exhibit Description Number 99.1 Press Release, dated November 1, 2004 4 EX-99.1 2 a4754303ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Sharps Compliance Corp. Announces First Quarter of Fiscal Year 2005 Results; Company Reports Strong Revenue Growth and Operating Income HOUSTON--(BUSINESS WIRE)--Nov. 1, 2004--Sharps Compliance Corp. and subsidiaries (OTCBB:SCOM) ("Sharps" or the "Company"), leading providers of cost-effective medical waste disposal solutions for industry and consumers, today announced its operating results for the three-months ended Sept. 30, 2004. Financial Results For the three-months ended Sept. 30, 2004, the Company generated revenues of $2.4 million versus $2.0 million for the three months ended Sept. 30, 2003, an increase of 21%. The increase in the first quarter revenues is a result of increased billings in the healthcare, retail and agricultural markets. The Company realized an improved gross margin of 43% for the three-months ended Sept. 30, 2004 versus a gross margin of 39% for the corresponding quarter of the prior fiscal year. The improvement in the gross margin is attributable to increased revenues and operational efficiencies. The Company reported operating income of $0.1 million for the quarter ended Sept. 30, 2004, a significant improvement over the operating loss for the quarter ended Sept. 30, 2003 of $0.1 million. The significant improvement in the Company's operating performance for the first fiscal quarter of 2005 is a result of the 21% increase in revenues coupled with a 10% increase in gross margin percentage. The above was accomplished with an approximate 4% increase in overhead expenses. Comments Regarding the results, Dr. Burton J. Kunik, chairman, chief executive officer and president of Sharps Compliance Corp. stated, "The first quarter 2005 results represented our second straight quarter of strong revenue growth and operating results. We achieved the first quarter 2005 revenue growth through strong sales not only in our core home healthcare market but also through sales in the Retail and Agricultural markets. The success in these markets is a direct result of our efforts and initiatives to continue to expand the Company's reach into additional markets. Kunik added, "The strong operating results have allowed us to significantly improve our working capital and further strengthen our balance sheet. This financial strength, coupled with our line of credit, should allow us to continue to grow the business with internal resources." "We continue to see positive impacts of the very active regulatory environment not only at the federal but also the state level. We believe that awareness of the proper disposal of medical sharps is at an all-time high. Our business model focuses on providing cost-effective solutions designed for the disposal issues addressed in the current regulatory environment." Headquartered in Houston, Sharps is a leading developer of superior solutions for improving safety, efficiency and cost related to the proper disposal of medical waste by industry and consumers. Sharps primary markets include healthcare, agriculture, hospitality, professional, industrial, commercial and retail. The Company's products and services represent cutting edge solutions for a variety of industries dealing with the complexity of managing regulatory compliance, environmental sensitivity, employee and customer safety, corporate risk and operating costs related to medical waste disposal. Sharps is a leading proponent and participant in the development of public awareness and solutions for the safe disposal of needles, syringes and other sharps in the community setting. Sharps Compliance Corp. is the exclusive supplier of Sharps Disposal by Mail systems to the Consumer Health Care division of Becton, Dickinson and Company. The Company also maintains an exclusive sales and marketing arrangement with Waste Management Inc. whereby Sharps provides safe disposal systems and related services for Waste Management's residential and commercial customers. The Company also has a mutually exclusive joint marketing agreement with McKesson Health Solutions ("McKesson"), a subsidiary of McKesson Corporation, to co-market and sell the Sharps Disposal by Mail System(TM) products and services to pharmaceutical manufacturers and biotechnology companies. McKesson is a leader in the design, implementation and management of marketing programs, specialty pharmaceutical services and patient support centers that help pharmaceutical and biotechnology manufactures successfully commercialize their products. Sharps Compliance Corp.'s common stock trades on the OTC Bulletin Board under the symbol SCOM. The information made available in this press release contains certain forward-looking statements which reflect Sharps Compliance Corp.'s current view of future events and financial performance. Wherever used, the words "estimate," "expect," "plan," "anticipate," "believe," "may" and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company's future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, the company's ability to educate its customers, development of public awareness programs to educate the identified consumer, managing regulatory compliance and/or other factors that may be described in the company's annual report on Form 10-K and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results express or implied therein will not be realized. (Financial Highlights Follow) SHARPS COMPLIANCE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended September 30, ------------------------ 2004 2003 ------------ ----------- (Unaudited) (Unaudited) ------------ ----------- REVENUES $2,419,386 $1,997,212 COSTS AND EXPENSES: Cost of revenues 1,387,544 1,217,710 Selling, general and administrative 867,905 836,386 Depreciation and amortization 42,901 38,658 ------------ ----------- Operating income (loss) 121,036 (95,542) INTEREST (EXPENSE) INCOME, net (7,924) (21,035) ----------- ----------- Net Income (loss) before income taxes 113,112 (116,577) Income taxes (4,200) - ------------ ----------- Net income (loss) $108,912 ($116,577) ============ =========== BASIC AND DILUTED NET INCOME (LOSS) PER SHARE $0.01 ($0.01) ============ =========== SHARES USED IN NET INCOME (LOSS) PER SHARE BASIC 10,538,144 9,822,023 ============ =========== DILUTED 10,877,750 9,822,023 ============ =========== SHARPS COMPLIANCE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS Sept. 30, June 30, 2004 2004 ----------- ----------- (Unaudited) Assets Current assets: Cash and cash equivalents $147,552 $242,803 Restricted cash 12,649 14,678 Accounts receivable, net 923,123 981,408 Inventory 456,691 393,238 Prepaid and other assets 115,478 138,798 ----------- ----------- Total current assets 1,665,493 1,770,925 Property and equipment, net 506,980 539,800 Intangible assets, net 9,898 10,051 ----------- ----------- Total assets $2,172,371 $2,320,776 =========== =========== Liabilities and stockholders' equity Current liabilities: Accounts payable $495,605 $592,943 Accrued liabilities 289,490 338,153 Deferred revenue - pump return 80,008 110,702 Current portion of deferred revenue - incineration 132,806 108,299 Current portion of deferred revenue - transportation 625,838 553,938 Notes payable and current portion of long- term debt - 185,932 Current maturities of capital lease obligations 42,139 37,513 ----------- ----------- Total current liabilities 1,655,886 1,927,480 Long-term deferred revenue - incineration, net of current portion 32,531 30,408 Long-term deferred revenue - transportation, net of current portion 187,381 179,506 Long-term debt, net of current portion - 10,826 Obligations under capital leases, net of current maturities 79,301 84,446 Other liabilities 55,750 45,500 ----------- ----------- Total liabilities 2,020,849 2,278,166 Stockholders' equity: Total stockholders' equity 151,522 42,610 ----------- ----------- Total liabilities and stockholders' equity $2,172,371 $2,320,776 =========== =========== CONTACT: Sharps Compliance Corp., Houston David P. Tusa, 713-660-3514 dtusa@sharpsinc.com www.sharpsinc.com -----END PRIVACY-ENHANCED MESSAGE-----