-----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, NWUalGWdxIQZ4CPYMmvPtAvEA5xa0AR5s1KjTq/6CgEYRoBecjEL2lQb7vlANgW2 PuZbR1pVfy9DAJrvZxjE8w== 0001157523-06-000552.txt : 20060124 0001157523-06-000552.hdr.sgml : 20060124 20060124100022 ACCESSION NUMBER: 0001157523-06-000552 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060124 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060124 DATE AS OF CHANGE: 20060124 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: 06545182 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 a5062487.txt SHARPS COMPLIANCE CORP. 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 24, 2006 ---------------- Sharps Compliance Corp. - ------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 000-22390 74-2657168 - ------------------------------ ----------------------- ------------------- (State or Other (Commission File Number) (IRS Employer Jurisdiction 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 - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Disclosure of Results of Operations and Financial Condition On January 24, 2006, the Company announced its results of operations for the three and six months ended December 31, 2005. 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 24, 2006 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 24, 2006 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 24, 2006 By: /s/ DAVID P. TUSA ------------------------------------- Name: David P. Tusa Title: Executive Vice President, Chief Financial Officer and Business Development INDEX TO EXHIBITS Exhibit Number Description - -------------------------------------------------------------------------------- 99.1 Press Release, dated January 24, 2006 EX-99.1 2 a5062487ex991.txt EXHIBIT 99.1 Exhibit 99.1 Sharps Compliance Corp. Announces Results for the Quarter Ended December 31, 2005; Company Reports Second Consecutive Quarter of Strong Revenue Growth and Operating Earnings HOUSTON--(BUSINESS WIRE)--Jan. 24, 2006--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 2006. Financial Results For the three-months ended December 31, 2005, the Company reported revenues of $2.7 million versus revenues for the corresponding quarter of the prior fiscal year of $2.2 million, an increase of 19%. For the six-months ended December 31, 2005, the Company generated revenues of $5.3 million versus revenues for the corresponding quarter of the prior year of $4.6 million, a 15% increase. The increase in revenues is attributable to growth in the Retail, Hospitality, Agriculture and Pharmaceutical markets. The Company generated gross margins of 44% and 43% for the three and six months ended December 31, 2005, respectively. The Company's S, G & A expenses increased by 7% for the six months ended December 31, 2005 when compared to the corresponding period of the prior year. The increase in the S, G & A is attributable to higher professional fees and sales-related expenses. The Company reported net income of $0.2 and $0.3 million for the quarter and six months ended December 31, 2005, respectively. These results compare to essentially breakeven results for the quarter ended December 31, 2004 and net income of $0.1 million for the six months ended December 31, 2004. Business Developments Retail Market The Company generated billings of approximately $450,000 in the Retail market during the six-months ended December 31, 2005. These billings were driven by sales of the Company's Sharps Disposal By Mail System(R) products to retail pharmacies and grocery stores to support the proper disposal of syringes used to administer flu shots and other inoculations. The billings for the six-months ended December 31, 2005 in the Retail market represent an increase of over 110% over the corresponding prior period billings in this market. Hospitality Market The Company generated billings of over $300,000 in the Hospitality market during the six-months ended December 31, 2005. This level of billings represents an increase of over 100% as compared to the prior year six-month period. This growth was driven by an approximate $100,000 order from one of the nation's largest contract food service providers for the Company's biohazard spill clean-up kit. This newly-launched product has an innovative mail-back feature and contains everything required to safely and properly dispose of medical waste spills within U.S. Postal Service regulations. The Company is actively marketing the product to multiple industries and, to date, has been met with a very positive reception. Agriculture Market The Company generated billings of over $350,000 in its Agriculture market during the six-months ended December 31, 2005. The current fiscal year billings in this market represent a 50% increase over the corresponding prior period billings. Pharmaceutical Market The Company generated approximately $100,000 in billings in the Pharmaceutical market during the quarter ended December 31, 2005. These billings were driven by sales of the Company's Sharps Disposal By Mail System(R) products utilized to support the proper disposal of syringes in the pharmaceutical clinical trial setting. Residential Market The Company's Sharps Disposal By Mail System(R) has been, or is in the process of, being implemented as an integral part of the municipal waste programs of five (5) California cities to date. We are in discussions with twelve (12) additional municipalities (five (5) in California and four (4) in Texas) that have expressed interest in similar programs. Municipal programs are designed to eliminate needles, syringes and lancets from the public waste stream and assist self-injecting residents with proper disposal. There are an estimated 3 billion syringes disposed outside of the healthcare setting each year. Comments Regarding the second quarter results, Dr. Burton J. Kunik, Chairman, Chief Executive Officer and President of Sharps Compliance Corp. stated, "Consistent with our internal goals, the results represent the Company's second consecutive quarter of strong growth in revenue and earnings. The success of our financial performance is a direct result of our continued push to expand the Company's sales efforts to new market opportunities. In fact, we have recently re-aligned our sales force whereby each regional sales director markets all Company products across multiple market segments within his or her geographic territory. We believe this approach will facilitate a more efficient and effective method of successfully closing the many sales opportunities in the markets served by the Company. Kunik added, "We are also pleased to announce the endorsement of the Company's Sharps Disposal By Mail System(R) by Texas Dental Association Financial Services, the for-profit affiliate of the Texas Dental Association ("TDA"). The TDA, chartered in 1871, is the third largest state dental association in the United States. Currently, the TDA has more than 7,700 members and is comprised of 26 component dental societies grouped into four divisions across the state of Texas. The TDA is affiliated with the American Dental Association, as its national representative, and its component societies at the local level". 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. 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-KSB, quarterly reports on Form 10-QSB 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, ------------------------- ------------------------ 2005 2004 2005 2004 ------------ ------------ ------------ ----------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) ------------ ------------ ------------ ----------- REVENUES $2,663,376 $2,229,045 $5,323,488 $4,648,431 COSTS AND EXPENSES: Cost of revenues 1,496,692 1,330,947 3,057,611 2,718,491 Selling, general and administrative 957,484 861,021 1,849,860 1,728,926 Depreciation and amortization 35,240 40,355 68,104 83,256 ------------ ------------ ------------ ----------- Operating income (loss) 173,960 (3,278) 347,913 117,758 Interest Expense (3,678) (5,364) (7,594) (13,288) ------------ ------------ ------------ ----------- Net Income (loss) before Income Taxes $170,282 ($8,642) $340,319 $104,470 ------------ ------------ ------------ ----------- Income Taxes (3,310) (493) (8,815) (4,693) ------------ ------------ ------------ ----------- Net Income (Loss) $166,972 ($9,135) $331,504 $99,777 ============ ============ ============ =========== NET INCOME (LOSS) PER SHARE Basic $0.02 ($0.00) $0.03 $0.01 ============ ============ ============ =========== Diluted $0.02 ($0.00) $0.03 $0.01 ============ ============ ============ =========== SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE Basic 10,547,311 10,538,144 10,547,311 10,538,144 Diluted 10,698,545 10,538,144 10,709,344 10,869,494 SHARPS COMPLIANCE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS December 30, June 30, 2005 2005 ------------ ----------- (Unaudited) Assets Current assets: Cash and cash equivalents $407,640 $258,427 Restricted cash 10,010 10,010 Accounts receivable, net 1,063,875 964,148 Inventory 423,305 368,495 Prepaid and other assets 134,447 79,320 ------------ ----------- Total current assets 2,039,277 1,680,400 Property and equipment, net 450,425 438,064 Intangible assets, net 61,771 11,779 ------------ ----------- Total assets $2,551,473 $2,130,243 ============ =========== Liabilities and stockholders' equity (deficit) Current liabilities: Accounts payable $485,802 $567,398 Accrued liabilities 386,738 283,953 Current portion of deferred revenue 1,065,495 996,597 Current maturities of capital lease obligations 52,599 48,558 ------------ ----------- Total current liabilities 1,990,634 1,896,506 Long-term deferred revenue 293,585 272,781 Obligations under capital leases, net of current maturities 14,906 42,112 Other liabilities 64,500 62,500 ------------ ----------- Total liabilities 2,363,625 2,273,899 Total stockholders' equity (deficit) 187,848 (143,656) ------------ ----------- Total liabilities and stockholders' equity (deficit) $2,551,473 $2,130,243 ============ =========== CONTACT: Sharps Compliance Corp. David P. Tusa, 713-660-3514 dtusa@sharpsinc.com www.sharpsinc.com -----END PRIVACY-ENHANCED MESSAGE-----