MEDM ($13-$16*New Yearly High) P/E 99 69% Sales Growth..Sales Volume in Units increased 70%...
Wednesday July 18, 11:15 am Eastern Time
Press Release
SOURCE: MedAmicus, Inc.
MedAmicus Reports Second Quarter Results; 69 Percent Growth in Sales Fuels Record Earnings
MINNEAPOLIS, July 18 /PRNewswire/ -- MedAmicus, Inc. (Nasdaq: MEDM - news) reported income from continuing operations before income taxes for the second quarter ended June 30, 2001, of $725,063, compared to income from continuing operations before income taxes of $386,721 for the same 2000 quarter, an 87 percent increase. MedAmicus also reported a 69 percent increase in revenues from continuing operations to $2,966,103 for the second quarter, compared to $1,752,290 for the same period last year. The Company stated that all revenue and expenses, both current and historical, have been adjusted to reflect only continuing operations.
The Company reported a one-time benefit from recognition of its previously unrecorded net deferred tax assets of $923,000 or $.20 per diluted share. In addition, the Company recorded a gain on the sale of its Gynecology Division that occurred during the quarter of $2,896,610, or $.64 per diluted share, as well as income from operations of the discontinued Gynecology Division of $93,085 or $.02 per diluted share.
For the six months ended June 30, 2001, MedAmicus reported revenues from continuing operations of $5,370,972, compared to $3,582,660 for the first six months of 2000, a 50 percent increase. The Company reported income from its continuing operations before income taxes for the first six months of 2001 totaling $1,204,506, a 58 percent increase when compared to income from continuing operations of $760,007 in the same period last year.
The Company also stated that, as a result of recognizing the previously unrecorded net deferred tax assets, it will become an after-tax reporting entity starting in the third quarter. The Company said its income from continuing operations after tax, on a pro forma basis, would have been $450,000 or $.10 per diluted share for the second quarter, and $747,000 or $.17 per diluted share for the six months ended June 30, 2001, assuming a 38 percent tax rate.
``Our revenue gains came from our entire product offering,'' said James D. Hartman, president and CEO. ``We continued shipping ramp-up quantities of introducer products to several new customers this quarter. Our sales volume in units increased 70 percent compared to the same quarter last year. As previously stated, we have secured a number of new introducer customers over the past year. If shipments meet our anticipated schedule, our annual run rate of venous introducer sales as of December 31, 2001 should increase to approximately 1,000,000 units, making MedAmicus one of the largest, if not the largest, venous introducer manufacturer in the world,'' Hartman added.
``A Food and Drug Administration (FDA) panel last week recommended approval of Medtronic's InSync® cardiac resynchronization therapy for the treatment of congestive heart failure, which published reports have indicated should lead to formal approval later this year,'' Hartman continued. ``Our shipments of Left Ventricle Lead Delivery Systems to Medtronic in support of their clinical trials and European sales release of the InSync device, increased 250 percent compared to a year ago which also favorably impacted our second quarter numbers. The FDA panel recommendation is very positive news with exciting implications for MedAmicus. We have worked closely with Medtronic to develop this delivery system that allows physicians to traverse the path to the left side of the heart, and we are optimistic that Medtronic's success in marketing this new therapy will translate into growing revenue for MedAmicus,'' Hartman stated.
``As reported last week, we received clearance from the FDA to begin marketing our guidewire introducer safety needle, which included technology licensed from Med-Design Corporation. This keeps our schedule intact to begin producing and shipping needles yet this quarter,'' Hartman said.
``On April 25, 2001, we concluded the sale of our Gynecology business to CooperSurgical, Inc. recognizing a gain of approximately $2,897,000. As part of the agreement, MedAmicus will continue to manufacture catheters and monitors for CooperSurgical until the end of 2001, at which time the manufacturing responsibilities will be transferred to Cooper. Consequently, we will continue to report results from discontinued operations for the remainder of 2001,'' Hartman added.
``As of the start of the year 2001, we had a total of approximately $5.9 million of net operating loss carry-forwards and research and development tax credits,'' said Hartman. ``Because of the uncertainty of future profits, the benefit of these carry-forwards, as well as other deferred tax assets, had not been previously recognized as an asset on the Company's books. During the first half of 2001, our income from continuing and from discontinued operations utilized approximately $1.3 million of the carry-forward while the gain on the sale of the Gynecology Division absorbed another $2.9 million of the NOL carry-forward. Because of the high level of confidence that the remaining carry-forward and other deferred tax assets can be offset against future profits, the Company is recording a gain of $923,000, or $.20 per diluted share, which is the tax benefit of the remaining unutilized NOL and tax credits available to the Company in the future,'' Hartman stated.
The Company also announced that Richard L. Little, founder and former CEO, has retired from the Board of Directors. ``Mr. Little's entrepreneurial spirit, the inventions he pioneered, and the business philosophies he held, will be missed by all of us at MedAmicus, but we are grateful for his work in building the foundation upon which we are now growing the business,'' Hartman concluded.
MedAmicus, Inc., based in Plymouth, Minn., is a medical products company engaged in the design, development, manufacture and marketing of percutaneous delivery systems. Its products include venous vessel introducers, safety needles and other disposable delivery products for use in the implantation of pacemakers, defibrillators, catheters and infusion ports sold through OEM relationships with other medical device companies.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by some statements made herein. All forward-looking statements involve risks and uncertainties. Among the factors that could cause results to differ materially are the following: attracting and retaining key personnel; lack of market acceptance of the Company's products, especially the safety needle; introduction of competitive products; patent and government regulatory matters; successful implementation of the Company's safety needle production ramp-up schedule; economic conditions; the ability to raise capital; and the Risk Factors included in Form S-8 filed with the Securities and Exchange Commission on June 8, 2001. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
Condensed Balance Sheets
Unaudited Audited
Assets 06/30/01 12/31/00
Cash and cash equivalents $3,345,795 $1,007,149
Inventory, receivables and prepaids 2,841,180 3,150,246
Property, plant and equipment, net 1,667,430 1,334,594
Other assets 1,601,949 69,043
Total Assets $9,456,354 $5,561,032
Liabilities & Shareholders' Equity
Current liabilities $1,339,343 $2,713,980
Long-term liabilities 266,589 214,849
Shareholders' equity 7,850,422 2,632,203
Total Liabilities & Shareholders' Equity $9,456,354 $5,561,032
Statements of Operations (Unaudited)
Three Months Ended Six Months Ended
06/30/01 06/30/00 06/30/01 06/30/00
Sales $2,966,103 $1,752,290 $5,370,972 $3,582,660
Cost of sales 1,495,675 819,083 2,660,867 1,749,450
Gross Profit 1,470,428 933,207 2,710,105 1,833,210
Expenses
Research and
development 306,263 127,869 559,750 253,203
Selling, general
and administrative 445,304 386,275 914,373 760,186
Other (income)
expense, net (6,202) 32,342 31,476 59,814
Total Expenses 745,365 546,486 1,505,599 1,073,203
Income from continuing
operations before
income tax benefit 725,063 386,721 1,204,506 760,007
Income tax benefit 923,000 0 921,631 0
Income from continuing
operations 1,648,063 386,721 2,126,137 760,007
Discontinued operations
Income (loss) from
operations of
discontinued
segment 93,085 (225,256) 64,506 (673,766)
Gain from disposal
of discontinued
segment 2,896,610 0 2,896,610 0
Income (loss) from
discontinued
operations 2,989,695 (225,256) 2,961,116 (673,766)
Net income $4,637,758 $161,465 $5,087,253 $86,241
Earnings per share
Basic
Income from
continuing
operations
before income
tax benefit $0.17 $0.09 $0.29 $0.18
Income tax benefit 0.22 0.00 0.22 0.00
Income (loss) from
operations of
discontinued
segment 0.02 (0.05) 0.02 (0.16)
Gain from disposal of
discontinued segment 0.69 0.00 0.69 0.00
Total basic earnings
per share $1.11 $0.04 $1.22 $0.02
Diluted
Income from continuing
operations before
income tax benefit $0.16 $0.09 $0.27 $0.18
Income tax benefit 0.20 0.00 0.21 0.00
Income (loss) from
operations of
discontinued segment 0.02 (0.05) 0.01 (0.16)
Gain from disposal of
discontinued segment 0.64 0.00 0.65 0.00
Total diluted earnings
per share $1.02 $0.04 $1.14 $0.02
Wtd Avg Common & Common
Equivalent Shares
Outstanding
Basic 4,188,442 4,129,273 4,177,385 4,122,781
Diluted 4,557,154 4,274,441 4,444,100 4,279,537
SOURCE: MedAmicus, Inc. |
