Sharps Compliance Corp. (NASDAQ:SMED) (“Sharps” or the “Company”),
a leading full-service national provider of comprehensive waste
management solutions including medical, pharmaceutical and
hazardous, today reported financial results for the fourth quarter
of fiscal 2016, which ended June 30, 2016.
Revenue in the fourth quarter of fiscal 2016 was $8.9 million,
essentially flat as compared to revenue of $9.0 million in the same
prior year quarter. The Company reported operating income of $0.2
million in the fourth quarter of 2016, compared to operating income
of $1.4 million in the fourth quarter of fiscal 2015. Sharps
recorded net income of $0.2 million, or $0.01 per basic and diluted
share in the fourth quarter of fiscal 2016, compared to net income
of $1.3 million or $0.08 per basic and diluted share, in the fourth
quarter of fiscal 2015.
Customer billings of $9.2 million for the quarter ended June 30,
2016 declined slightly compared to billings of $9.5 million in the
prior year period. The Company reported significant growth in the
Professional market as well as growth in the Retail, Assisted
Living and Home Healthcare markets. This growth was offset by a
decline in quarterly customer billings for the Pharmaceutical
Manufacturer and Government markets. Government market billings of
$0.4 million for the quarter included $0.1 million of orders under
the VA’s Blanket Purchase Agreement and $0.2 million of revenue
from the MedSafe program. (See Reconciliation of Customer Billings
to Revenue in the supplemental table included at the end of this
release).
David P. Tusa, President and Chief Executive Officer of Sharps,
stated, “As we close out fiscal year 2016, we’ve made significant
progress repositioning the Company as a comprehensive service
provider to drive organic growth, increase our critical mass
through acquisitions and develop new products and solutions that
will help our customers comply with waste disposal regulations in a
cost effective manner. Our fourth quarter revenues were down
slightly from the same quarter last year, which included several
inventory builds for Pharmaceutical Manufacturer patient support
programs, $0.5 million of VA envelope orders and the launch of the
TakeAway Medication Recovery envelopes by one of our Retail
customers.”
“Despite a tough comparison with the prior year quarter for the
Pharmaceutical Manufacturer and Government markets, we demonstrated
significant growth in our Professional and Assisted Living markets
as a direct result of sales and marketing activities, new products
and solutions and cross-selling efforts. We are focused on
adding new products and solutions that will assist our customers
and generate revenues for our Company. We’ve seen growing
market interest in our MedSafe offering for the disposal of
controlled substances and we’re optimistic about opportunities
around our TakeAway Recycle System for the collection and recycling
of single-use medical devices. We are still experiencing
slower than expected demand for our TakeAway Envelopes from the VA
related to our Blanket Purchase order, as the VA continues its
communications and launch activities around the
program.”
Acquisition of Citiwaste, LLC and Permitting for
Treatment Facility
Following the close of the quarter, Sharps announced the
acquisition of Brooklyn, N.Y.-based Citiwaste, LLC, a full service,
route-based provider of medical, pharmaceutical and hazardous waste
solutions to over 5,500 customer locations in New York, New Jersey,
Connecticut and Massachusetts for a total purchase price of $9
million. Prior to the acquisition date, Citiwaste had annual
revenue of approximately $3 million, serving small to medium size
waste generators primarily in the healthcare, professional, and
assisted living/long-term care markets.
Additionally, Sharps recently announced that it has received the
Commonwealth of Pennsylvania Department of Environmental Protection
Bureau of Waste Management permit for the processing of medical
waste at its treatment facility located in northeastern
Pennsylvania. The 40,000 square foot facility has been
permitted as both a medical waste treatment facility, using an
autoclave, and as a transfer station for medical, pharmaceutical
and trace chemotherapy waste of up to 82 tons per day. The facility
is designed to cost-effectively and efficiently process medical
waste generated by the Company’s route-based and mailback customers
and also doubles as a distribution center of mailback solutions.
“The Citiwaste acquisition is a significant step as we
strategically build critical mass through our targeted acquisition
program. With Citiwaste, Sharps becomes a leading provider of
route-based services in the Northeast serving an eleven contiguous
state region and increasing our Northeast customer locations to
more than 7,800, in attractive and densely populated areas. With
the establishment of our Northeast-based treatment facility, we
believe Sharps has strengthened its market position in the
route-based business to service areas which encompass about 100
million people or 31% of the U.S. population,” Mr. Tusa
commented.
The Company will record acquisition related expenses of about
$0.5 million during the September 2016 quarter related to the
completion of the Citiwaste acquisition.
Fourth Quarter Review
Professional market billings increased 33% to $2.0 million in
the fourth quarter of fiscal 2016 as the Company continued its
focus on securing customers from the small quantity generator
sector, which consists largely of physicians, clinics, dentists,
surgery centers, veterinarians and other healthcare professionals,
who are well suited for the favorable economics and convenience of
the Sharps Recovery System™ and the Company’s route-based pick-up
services. The Company’s inside and online sales channel,
which primarily addresses the Professional market, realized a 34%
increase in billings to $1.6 million in the fiscal 2016 fourth
quarter from $1.2 million in the same prior year period.
Retail market billings increased 8% to $3.3 million compared
with $3.1 million in the prior year period, primarily reflecting an
increase in flu shot related orders in advance of the flu shot
season this quarter compared to last year, offset by a decrease in
billings for the TakeAway Medication Recovery System envelopes
which were launched by a Retail customer in the fiscal 2015 fourth
quarter.
Pharmaceutical Manufacturer billings decreased 34% to $0.9
million in the fourth quarter of fiscal 2016 compared to $1.4
million in the fourth quarter of fiscal 2015. During the fourth
quarter, the Company filled an order for a new inventory build for
one patient support program. The customer billings for this market
increased by 18% for the full fiscal year 2016 over fiscal year
2015. Sharps expects to launch two additional patient support
programs for new drug therapies over the next three
quarters.
Government billings decreased by 48% to $0.4 million compared to
$0.8 million in the fourth quarter of 2015. Government market
billings included $0.1 million of orders under the VA’s Blanket
Purchase Agreement compared with VA orders of $0.5 million in the
fourth quarter of fiscal 2015.
Assisted Living market billings grew 14% to $0.6 million for the
fourth quarter of fiscal 2016 as compared to $0.5 million in the
fourth quarter of fiscal 2015. Fourth quarter 2016 Home
Health Care billings were flat at $1.7 million compared to the
fourth quarter of fiscal 2015.
Operating performance
Gross margin was 36% in the fourth quarter of fiscal 2016
compared to gross margin of 42% in the fourth quarter of fiscal
2015. Gross margin for the fourth quarter of fiscal 2016 was
negatively impacted by increased infrastructure costs including
rent on the new Pennsylvania treatment facility and higher return
transportation costs associated with a USPS rate increase effective
February 1, 2016. The Company recently negotiated a concession to
this rate increase that is expected to be effective in September of
2016.
Selling, general and administrative (SG&A) expense increased
25% to $2.9 million in the fourth quarter of 2016. SG&A
for the fourth quarter of fiscal 2016 included $0.1 million of
additional cost related to our required audit of internal controls
for the fiscal year 2016 which was not required in fiscal year
2015, acquisition related costs and higher sales and marketing
costs focused on our inside sales initiatives.
The Company reported operating income of $0.2 million in the
fourth quarter of fiscal 2016, compared to operating income of $1.4
million in the fourth quarter of fiscal 2015.
Fiscal 2016 Year End Review
Sharps recorded revenue of $33.4 million in fiscal 2016, an
increase of 8% compared to revenue of $30.9 million in fiscal
2015. Customer billings increased 9% to $34.3 million in
fiscal 2016. Professional billings increased 22% to $7.6
million in fiscal 2016 as compared to $6.2 million in fiscal 2015.
Pharmaceutical Manufacturer billings increased 18% to $5.7 million
in fiscal 2016 as compared to $4.9 million in fiscal
2015. Home Health Care billings increased 9% to $7.4 million
in fiscal 2016 as compared to $6.8 million in the previous fiscal
year. Assisted Living billings increased 17% to $2.2 million
in fiscal 2016 as compared to $1.9 million in fiscal 2015.
Government billings decreased 12% to $1.5 million in fiscal 2016 as
compared to $1.8 million in fiscal 2015. Retail billings increased
slightly to $8.8 million from $8.7 million in fiscal 2015.
Retail sales for the 2016 fiscal year were negatively impacted by a
mild flu season, but positively impacted by the launch of the
TakeAway Medication Recovery System envelopes by certain Retail
customers when compared with the prior year. Over the flu
seasons from 2011 to 2014, the growth in the Retail flu business
for Sharps was between 24% and 36%. Despite the decrease in Retail
flu business for fiscal 2016 (the 2015 flu season) of 13% due to a
mild flu season, Sharps believes the Retail market should continue
to drive long-term growth for the Company as consumers increasingly
use alternative sites, such as retail pharmacies, to obtain flu and
other
immunizations.
Fiscal 2016 gross margin was 33% as compared to gross margin of
36% in fiscal 2015. Gross margin for fiscal 2016 was negatively
impacted by increased infrastructure costs including rent on the
new Pennsylvania treatment facility and higher return
transportation costs associated with a USPS rate increase effective
February 1, 2016. SG&A expense increased 14% to $10.8
million in fiscal 2016, including $0.2 million of acquisition
related costs associated with the Company’s acquisition program.
Without these acquisition related costs, SG&A increased 12%
compared to fiscal 2015 due to $0.2 million of additional cost
related to our required audit of internal controls for the fiscal
year 2016 which was not required in fiscal year 2015 and the
Company’s ongoing investment in sales and marketing initiatives.
The Company recorded minimal operating income in fiscal 2016 as
compared to operating income of $1.2 million in fiscal 2015.
Sharps achieved EBITDA of $0.8 million in fiscal 2016 as
compared to EBITDA of $2.1 million in fiscal 2015. Net income
for fiscal 2016 was $13,000 or $0.00 per basic and diluted share,
compared to net income of $1.2 million or $0.08 per basic and $0.07
per diluted share in fiscal 2015.
Financial flexibility and a strong balance
sheet
Cash and cash equivalents were $12.4 million at
June 30, 2016 compared to $15.2 million at June 30, 2015. The
Company’s current cash position is approximately $7.8 million with
the decrease primarily due to the $4 million cash payment in July
of 2016 in conjunction with the Citiwaste acquisition. Also in
conjunction with the Citiwaste acquisition, the Company issued
456,760 shares of common stock of the Company and borrowed $3
million under the acquisition portion of the Company’s Credit
Agreement. The Company’s availability under its credit facilities
is currently approximately $6 million.
Expanding Capabilities: A Comprehensive Provider
of Medical Waste Service Solutions
Mr. Tusa concluded, “While the 8% increase in FY 2016 revenue
was below our internal expectations, primarily due to the extremely
weak 2015 flu season and the slower than expected roll-out of the
VA TakeAway Envelope program, we do believe the strategic
accomplishments of FY 2016 well position the Company for future
growth. We remain focused on addressing the small to medium
quantity waste generator market, which we believe is underserved
and represents a significant opportunity for the growth of our
business. Fiscal 2016 was an important year for us, one in
which we strengthened our operational infrastructure by broadening
the scope of our products and solutions and significantly expanded
our geographic footprint. As a comprehensive provider of
medical waste service solutions, we believe we are well positioned
to capture an increasing portion of the small to medium sized
generators in the country which we estimate to be a market of about
$1 billion.”
Fourth quarter fiscal year 2016 webcast and conference
call
The Company will host a teleconference today beginning at 11:00
a.m. Eastern Time, during which management will review the
financial and operating results for the period and discuss Sharps’
corporate strategy and outlook. A question-and-answer session
will follow.
The Sharps conference call can be accessed by domestic callers
by dialing (877) 407-0782. International callers may access
the call by dialing (201) 689-8567. The webcast can be
monitored at www.sharpsinc.com. Webcast listeners will have
the opportunity to submit questions to the speakers. Select
questions will be summarized and addressed during the
question-and-answer portion of the call.
A telephonic replay will be available through September 10,
2016. To listen to the replay, domestic callers should dial
(877) 660-6853 and international callers should dial (201) 612-7415
and enter conference ID number 13642424. A transcript will
also be posted to the Sharps website, once available.
About Sharps Compliance Corp.
Headquartered in Houston, Texas, Sharps Compliance is a leading
full-service national provider of comprehensive waste management
services including medical, pharmaceutical and hazardous. Its key
markets include healthcare facilities, pharmaceutical
manufacturers, home healthcare providers, assisted living /
long-term care, surgery centers, retail pharmacies and clinics, and
the professional market which is comprised of physicians, dentists
and veterinary practices. The Company's flagship product, the
Sharps Recovery System, is a comprehensive solution for the
containment, transportation, treatment and tracking of medical
waste and other used healthcare materials. The Company also offers
its route-based pick-up service in an eleven (11) state region of
the Northeast portion of the United States as well as Texas and
Louisiana.
More information on the Company and its products can be found on
its website at: www.sharpsinc.com
Safe harbor statement
The information made available in this news 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, customer preferences, the Company’s
ability to scale the business and manage its growth, the degree of
success the Company has at gaining more large customer contracts,
managing regulatory compliance and/or other factors that may be
described in the Company’s annual report on Form 10-K, quarterly
reports on Form 10-Q and/or other filings with the Securities and
Exchange Commission. Future economic and industry trends that
could potentially impact revenue 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.
Non-GAAP measures
This release contains certain financial information not derived
in accordance with generally accepted accounting principles
(“GAAP”), including customer billings information, EBITDA and
non-GAAP net income per share. The Company believes this
information is useful to investors and other interested parties.
Such information should not be considered as a substitute for any
measure derived in accordance with GAAP, and may not be comparable
to other similarly titled measures of other companies.
Reconciliation of this information to the most comparable GAAP
measures is included as an attachment to this release.
FINANCIAL TABLES FOLLOW
Sharps
Compliance Corp. and Subsidiaries |
Condensed
Consolidated Statements of Income |
(in thousands,
except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
Three-Months Ended |
|
Year Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
2015 |
|
%
Change |
|
2016 |
|
2015 |
|
%
Change |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
8,870 |
|
|
$ |
8,991 |
|
|
(1.3 |
%) |
|
$ |
33,383 |
|
|
$ |
30,902 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
5,650 |
|
|
|
5,218 |
|
|
8.3 |
% |
|
|
22,272 |
|
|
|
19,907 |
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
3,220 |
|
|
|
3,773 |
|
|
(14.7 |
%) |
|
|
11,111 |
|
|
|
10,995 |
|
|
1.1 |
% |
Gross margin |
|
|
36.3 |
% |
|
|
42.0 |
% |
|
|
33.3 |
% |
|
|
35.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A expense |
|
|
2,922 |
|
|
|
2,347 |
|
|
24.5 |
% |
|
|
10,812 |
|
|
|
9,496 |
|
|
13.9 |
% |
Depreciation and amortization |
|
|
84 |
|
|
|
52 |
|
|
|
294 |
|
|
|
263 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
214 |
|
|
|
1,374 |
|
|
|
5 |
|
|
|
1,236 |
|
|
Operating margin |
|
|
2.4 |
% |
|
|
15.3 |
% |
|
|
0.0 |
% |
|
|
4.0 |
% |
|
Interest income |
|
|
6 |
|
|
|
9 |
|
|
|
32 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
220 |
|
|
|
1,383 |
|
|
|
37 |
|
|
|
1,272 |
|
|
Income tax expense |
|
|
- |
|
|
|
86 |
|
|
|
24 |
|
|
|
112 |
|
|
Net
income |
|
$ |
220 |
|
|
$ |
1,297 |
|
|
$ |
13 |
|
|
$ |
1,160 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
0.08 |
|
|
$ |
0.00 |
|
|
$ |
0.08 |
|
|
Diluted |
|
$ |
0.01 |
|
|
$ |
0.08 |
|
|
$ |
0.00 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
15,445 |
|
|
|
15,380 |
|
|
|
15,448 |
|
|
|
15,327 |
|
|
Diluted |
|
|
15,575 |
|
|
|
15,804 |
|
|
|
15,838 |
|
|
|
15,564 |
|
|
|
|
|
|
|
|
|
|
|
|
Sharps Compliance
Corp. and Subsidiaries |
Condensed
Consolidated Balance Sheets |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
June 30,
2016 |
|
June 30,
2015 |
ASSETS: |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
12,435 |
|
|
$ |
15,157 |
|
Accounts receivable, net |
|
|
5,814 |
|
|
|
6,647 |
|
Inventory |
|
|
3,919 |
|
|
|
2,738 |
|
Prepaid and other current
assets |
|
|
695 |
|
|
|
680 |
|
Total current assets |
|
|
22,863 |
|
|
|
25,222 |
|
Property, plant and
equipment, net |
|
|
5,032 |
|
|
|
3,810 |
|
Other assets |
|
|
84 |
|
|
|
53 |
|
Goodwill |
|
|
1,039 |
|
|
|
- |
|
Intangible assets,
net |
|
|
1,129 |
|
|
|
666 |
|
Total assets |
|
$ |
30,147 |
|
|
$ |
29,751 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY: |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,620 |
|
|
$ |
1,770 |
|
Accrued liabilities |
|
|
1,534 |
|
|
|
1,952 |
|
Deferred revenue |
|
|
2,477 |
|
|
|
1,877 |
|
Total current liabilities |
|
|
5,631 |
|
|
|
5,599 |
|
Long-term deferred
revenue |
|
|
483 |
|
|
|
483 |
|
Other long-term
liabilities |
|
|
190 |
|
|
|
83 |
|
Total liabilities |
|
|
6,304 |
|
|
|
6,165 |
|
Stockholders’ equity: |
|
|
|
|
Total stockholders' equity |
|
|
23,843 |
|
|
|
23,586 |
|
Total liabilities and stockholders'
equity |
|
$ |
30,147 |
|
|
$ |
29,751 |
|
|
|
|
|
|
Sharps
Compliance Corp. and Subsidiaries |
Supplemental
Customer Billing and Revenue Information |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
Three-Months Ended June 30, |
|
|
|
2016 |
|
%
Total |
|
2015 |
|
$
Change |
|
% |
BILLINGS BY
MARKET: |
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
3,286 |
|
|
|
35.8 |
% |
|
$ |
3,056 |
|
|
$ |
230 |
|
|
|
7.5 |
% |
Professional |
|
|
1,998 |
|
|
|
21.8 |
% |
|
|
1,499 |
|
|
|
499 |
|
|
|
33.3 |
% |
Home Health Care |
|
|
1,741 |
|
|
|
19.0 |
% |
|
|
1,698 |
|
|
|
43 |
|
|
|
2.5 |
% |
Pharmaceutical Manufacturer |
|
|
931 |
|
|
|
10.2 |
% |
|
|
1,413 |
|
|
|
(482 |
) |
|
|
(34.1 |
%) |
Assisted Living |
|
|
571 |
|
|
|
6.2 |
% |
|
|
502 |
|
|
|
69 |
|
|
|
13.7 |
% |
Government |
|
|
412 |
|
|
|
4.5 |
% |
|
|
795 |
|
|
|
(383 |
) |
|
|
(48.2 |
%) |
Environmental |
|
|
35 |
|
|
|
0.4 |
% |
|
|
209 |
|
|
|
(174 |
) |
|
|
(83.3 |
%) |
Other |
|
|
194 |
|
|
|
2.1 |
% |
|
|
277 |
|
|
|
(83 |
) |
|
|
(30.0 |
%) |
Subtotal |
|
$ |
9,168 |
|
|
|
100.0 |
% |
|
$ |
9,449 |
|
|
$ |
(281 |
) |
|
|
(3.0 |
%) |
GAAP Adjustment * |
|
|
(298 |
) |
|
|
|
|
(458 |
) |
|
|
160 |
|
|
|
Revenue Reported |
|
$ |
8,870 |
|
|
|
|
$ |
8,991 |
|
|
$ |
(121 |
) |
|
|
(1.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended June 30, |
|
|
|
2016 |
|
%
Total |
|
2015 |
|
$
Change |
|
% |
BILLINGS BY
MARKET: |
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
8,798 |
|
|
|
25.7 |
% |
|
$ |
8,726 |
|
|
$ |
72 |
|
|
|
0.8 |
% |
Professional |
|
|
7,571 |
|
|
|
22.1 |
% |
|
|
6,225 |
|
|
|
1,346 |
|
|
|
21.6 |
% |
Home Health Care |
|
|
7,378 |
|
|
|
21.5 |
% |
|
|
6,802 |
|
|
|
576 |
|
|
|
8.5 |
% |
Pharmaceutical Manufacturer |
|
|
5,708 |
|
|
|
16.6 |
% |
|
|
4,855 |
|
|
|
853 |
|
|
|
17.6 |
% |
Assisted Living |
|
|
2,194 |
|
|
|
6.4 |
% |
|
|
1,879 |
|
|
|
315 |
|
|
|
16.8 |
% |
Government |
|
|
1,541 |
|
|
|
4.5 |
% |
|
|
1,756 |
|
|
|
(215 |
) |
|
|
(12.2 |
%) |
Environmental |
|
|
259 |
|
|
|
0.7 |
% |
|
|
368 |
|
|
|
(109 |
) |
|
|
(29.6 |
%) |
Other |
|
|
845 |
|
|
|
2.5 |
% |
|
|
891 |
|
|
|
(46 |
) |
|
|
(5.2 |
%) |
Subtotal |
|
$ |
34,294 |
|
|
|
100.0 |
% |
|
$ |
31,502 |
|
|
$ |
2,792 |
|
|
|
8.9 |
% |
GAAP Adjustment * |
|
|
(911 |
) |
|
|
|
|
(600 |
) |
|
|
(311 |
) |
|
|
Revenue Reported |
|
$ |
33,383 |
|
|
|
|
$ |
30,902 |
|
|
$ |
2,481 |
|
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
* Represents
the net impact of the revenue recognition adjustments to arrive at
reported GAAP revenue. Customer billings include all invoiced
amounts for products shipped during the period reported. GAAP
revenue includes customer billings as well as numerous adjustments
necessary to reflect, (i) the deferral of a portion of current
period sales and (ii) recognition of certain revenue associated
with product returned for treatment and destruction. The difference
between customer billings and GAAP revenue is reflected in the
Company’s balance sheet as deferred revenue. |
|
Sharps
Compliance Corp. and Subsidiaries |
Supplemental
Customer Billing by Channel Information |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended June 30, |
|
|
2016 |
|
%
Total |
|
2015 |
|
$
Change |
|
%
Change |
BILLINGS BY
CHANNEL: |
|
|
|
|
|
|
|
|
|
|
Direct Sales |
|
$ |
4,535 |
|
|
|
49.5 |
% |
|
$ |
5,535 |
|
|
$ |
(1,000 |
) |
|
|
(18.1 |
%) |
Distributors |
|
|
2,995 |
|
|
|
32.7 |
% |
|
|
2,694 |
|
|
|
301 |
|
|
|
11.2 |
% |
Inside and Online Sales |
|
|
1,638 |
|
|
|
17.8 |
% |
|
|
1,220 |
|
|
|
418 |
|
|
|
34.3 |
% |
Total Billings By Channel |
|
$ |
9,168 |
|
|
|
100.0 |
% |
|
$ |
9,449 |
|
|
$ |
(281 |
) |
|
|
(3.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
June 30, |
|
|
2016 |
|
%
Total |
|
2015 |
|
$
Change |
|
%
Change |
BILLINGS BY
CHANNEL: |
|
|
|
|
|
|
|
|
|
|
Direct Sales |
|
$ |
17,397 |
|
|
|
52.3 |
% |
|
$ |
16,170 |
|
|
$ |
1,767 |
|
|
|
10.9 |
% |
Distributors |
|
|
10,222 |
|
|
|
29.8 |
% |
|
|
10,384 |
|
|
|
(162 |
) |
|
|
(1.6 |
%) |
Inside and Online Sales |
|
|
6,135 |
|
|
|
17.9 |
% |
|
|
4,948 |
|
|
|
1,187 |
|
|
|
24.0 |
% |
Total Billings By Channel |
|
$ |
34,294 |
|
|
|
100.0 |
% |
|
$ |
31,502 |
|
|
$ |
2,792 |
|
|
|
8.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Sharps
Compliance Corp. and Subsidiaries |
Supplemental
Table to Reconcile Net Income to EBITDA |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
Three-Months
Ended |
|
Year
Ended |
|
June
30, |
|
June
30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
Net
Income |
$ |
220 |
|
|
$ |
1,297 |
|
|
$ |
13 |
|
|
$ |
1,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
- |
|
|
|
86 |
|
|
|
24 |
|
|
|
112 |
|
Interest income |
|
(6 |
) |
|
|
(9 |
) |
|
|
(32 |
) |
|
|
(36 |
) |
Depreciation and amortization |
|
215 |
|
|
|
177 |
|
|
|
816 |
|
|
|
830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
429 |
|
|
$ |
1,551 |
|
|
$ |
821 |
|
|
$ |
2,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Company defines earnings before interest, taxes, depreciation and
amortization (“EBITDA”) as net income, plus income tax expense,
interest income, and depreciation and amortization. Other
companies may define EBITDA differently. EBITDA is presented
because it is a financial measure that is frequently requested by
third parties. However, EBITDA is not considered under
generally accepted accounting principles as a primary measure of an
entity’s financial results, and accordingly, EBITDA should not be
considered an alternative to operating income, net income, or cash
flows as determined under generally accepted accounting principles
and as reported by the Company. |
|
Sharps
Compliance Corp. and Subsidiaries |
Supplemental
Reconciliation of GAAP to Non-GAAP Net Income Per
Share* |
(in thousands,
except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months
Ended |
|
Year
Ended |
|
June
30, |
|
June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
Net
Income |
$ |
220 |
|
$ |
1,297 |
|
$ |
13 |
|
$ |
1,160 |
|
|
|
|
|
|
|
|
Diluted net income per
share |
$ |
0.01 |
|
$ |
0.08 |
|
$ |
0.00 |
|
$ |
0.07 |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Acquisition costs |
|
39 |
|
|
- |
|
|
190 |
|
|
- |
Adjustments |
|
39 |
|
|
- |
|
|
190 |
|
|
- |
Adjusted Net
Income |
$ |
259 |
|
$ |
1,297 |
|
$ |
203 |
|
$ |
1,160 |
|
|
|
|
|
|
|
|
Adjusted diluted net income
per share |
$ |
0.02 |
|
$ |
0.08 |
|
$ |
0.01 |
|
$ |
0.07 |
|
|
|
|
|
|
|
|
* In
accordance with U.S. generally accepted accounting principles
(GAAP), the Company’s net deferred tax assets have been fully
reserved by a tax valuation allowance and any tax expense (benefit)
has been offset by the utilization of net operating loss
carryforwards or additional deferred tax valuation allowance.
Therefore, the amounts shown in this schedule have not been
adjusted to reflect any tax impact. The Company believes this
information is useful to investors and other interested
parties. Such information would not be considered as a
substitute for any measure derived in accordance with GAAP, and may
not be comparable to other similarly titled measures of other
companies. |
|
For more information contact:
Diana P. Diaz
Sharps Compliance Corp.
Vice President and Chief Financial Officer
Phone: (713) 660-3547
Email: ddiaz@sharpsinc.com
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: (203) 972-9200
Email: jnesbett@institutionalms.com
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