-----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, CWYepUlADi2UcFYSzoMjwtWdwU+Tcmw5XyCCHZ4+GlcQOkIaQG9NqGFGs/1aVkYb 3+lWq9YDeCtZPgHfT4TYsw== 0001157523-05-000818.txt : 20050131 0001157523-05-000818.hdr.sgml : 20050131 20050131100036 ACCESSION NUMBER: 0001157523-05-000818 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050131 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050131 DATE AS OF CHANGE: 20050131 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: 05560106 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 a4808611.txt SHARPS COMPLIANCE CORP. 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): January 31, 2005 (January 31, 2005) Sharps Compliance Corp. (Exact Name of Registrant as Specified in Charter) Delaware 000-22390 74-2657168 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer 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 January 31, 2005, the Company announced its results of operations for the three months and six months ended December 31, 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 January 31, 2005 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 January 31, 2005 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: JANUARY 31, 2005 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 January 31, 2005 4 EX-99.1 2 a4808611ex991.txt EXHIBIT 99.1 Exhibit 99.1 Sharps Compliance Corp. Announces Results for the Quarter Ended December 31, 2004 HOUSTON--(BUSINESS WIRE)--Jan. 31, 2005--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 second quarter of fiscal year 2005. For the three-months ended December 31, 2004, the Company reported revenues of $2.2 million versus revenues for the corresponding quarter of the prior fiscal year of $2.1 million, an increase of 7.5%. For the six-months ended December 31, 2004, the Company generated revenues of $4.6 million versus revenues for the corresponding quarter of the prior year of $4.1 million, a 14% increase. The Company generated gross margins of 40% and 42% for the three and six months ended December 31, 2004, respectively. The Company's S, G & A expenses increased by 6% for the six months ended December 31, 2004 when compared to the corresponding period of the prior year. The Company reported essentially break-even operating results for the quarter ended December 31, 2004 and net income of $0.1 million, or $0.01 per share, for the six months ended December 31, 2004. These amounts compare to break-even operating results for the quarter ended December 31, 2003 and a net loss of $0.1 million, or $0.01 per share, for the six months ended December 31, 2003. Regarding the second quarter results, Dr. Burton J. Kunik, Chairman, Chief Executive Officer and President of Sharps Compliance Corp., stated, "Although the revenue growth rate of 14% for the six months ended December 31, 2004 is impressive, our internal plans envisioned higher growth levels consistent with the opportunities we see in the market place. We have focused our sales efforts on the healthcare, agriculture, hospitality, professional, commercial and residential markets and believe such efforts will support the continued growth plans of the Company." In December 2004, the U. S. Environmental Protection Agency ("EPA") issued its new guidelines for the proper disposal of medical sharps (see www.epa.gov/epaoswer/other/medical/sharps.htm). Among the recommended methods of disposal are mail-back programs such as the Company's. Kunik added, "The EPA's guidance is a major event in the movement of the country towards proper disposal of medical sharps generated by self injectors. Our products and services are well suited to meet the requirements of the new guidelines." The Company recently launched a new Web site. We invite you to visit the Company at www.sharpsinc.com. Headquartered in Houston, Texas, 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 manufacturers 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 Six Months Ended December 31, December 31, ------------------------- ------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) ------------ ------------ ------------ ------------ REVENUES $2,229,045 $2,074,220 $4,648,431 $4,071,432 COSTS AND EXPENSES: Cost of revenues 1,330,947 1,251,600 2,718,491 2,469,310 Selling, general and administrative 861,021 798,339 1,728,926 1,634,725 Depreciation and amortization 40,355 39,590 83,256 78,248 ------------ ------------ ------------ ------------ Operating income (loss) (3,278) (15,309) 117,758 (110,851) INTEREST EXPENSE (5,364) (7,052) (13,288) (28,087) ------------ ------------ ------------ ------------ Net Income (loss) before Income Taxes ($8,642) ($22,361) $104,470 ($138,938)) ------------ ------------ ------------ ------------ Income Taxes (493) - (4,693) - ------------ ------------ ------------ ------------ Net Income (Loss) ($9,135) ($22,361) $99,777 ($138,938) ============ ============ ============ ============ NET LOSS PER SHARE Basic ($0.00) ($0.00) $0.01 ($0.01) ============ ============ ============ ============ Diluted ($0.00) ($0.00) $0.01 ($0.01) ============ ============ ============ ============ SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE Basic 10,538,144 10,538,256 10,538,144 10,247,955 Diluted 10,538,144 10,538,256 10,869,494 10,247,955 SHARPS COMPLIANCE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS December 31, June 30, 2004 2004 ------------- ------------ (Unaudited) Assets Current assets: Cash and cash equivalents $200,795 $242,803 Restricted cash 66,993 14,678 Accounts receivable, net 796,009 981,408 Inventory 415,735 393,238 Prepaid and other assets 106,032 138,798 ------------- ------------ Total current assets 1,585,564 1,770,925 Property and equipment, net 467,417 539,800 Intangible assets, net 9,745 10,051 ------------- ------------ Total assets $2,062,726 $2,320,776 ============= ============ Liabilities and stockholders' equity Current liabilities: Accounts payable $397,226 $592,943 Accrued liabilities 296,557 338,153 Deferred revenue - pump return 70,807 110,702 Current portion of deferred revenue - incineration 121,816 108,299 Current portion of deferred revenue - transportation 646,852 553,938 Notes payable and current portion of long-term debt - 185,932 Current maturities of capital lease obligations 44,181 37,513 ------------- ------------ Total current liabilities 1,577,439 1,927,480 Long-term deferred revenue - incineration, net of current portion 27,442 30,408 Long-term deferred revenue - transportation, net of current portion 189,998 179,506 Long-term debt, net of current portion - 10,826 Obligations under capital leases, net of current maturities 67,460 84,446 Other 58,000 45,500 ------------- ------------ Total liabilities 1,920,339 2,278,166 Stockholders' equity: Total stockholders' equity 142,387 42,610 ------------- ------------ Total liabilities and stockholders' equity $2,062,726 $2,320,776 ============= ============ CONTACT: Sharps Compliance Corp., Houston David P. Tusa, 713-660-3514 dtusa@sharpsinc.com www.sharpsinc.com -----END PRIVACY-ENHANCED MESSAGE-----