DrugMax, Inc. Announces Second Quarter Financial Results; EPS of $0.11 and Record-setting Six-Month Period
LARGO, Fla., Nov. 12 /PRNewswire/ -- DrugMax, Inc. (Nasdaq: DMAX), a full-line wholesale distributor of pharmaceuticals, over-the-counter products, health and beauty aids and nutritional supplements, announced financial results for the second quarter ended September 30, 2001.
Revenues were approximately $66.2 million for the second quarter ended September 30, 2001, compared to $38.8 million for the same quarter last year, a 70.5 percent increase. Net income was $735,466 or $0.11 per basic share and $0.10 per diluted share for the second quarter ended September 30, 2001, compared to a net loss of ($627,610) or ($0.10) per basic and diluted share for the same quarter last year.
For the six months ended September 30, 2001, total revenues were $137.1 million, a 102 percent increase over total revenues of $67.9 million for the same six-month period last year. For the six months ended September 30, 2001, total net income was $1.6 million or $0.23 per basic and diluted share compared to a net loss of $2.1 million or ($0.34) per basic and diluted share for the same six-month period last year.
On April 1, 2001, DrugMax adopted the Financial Accounting Standards Board (FASB) Statement No. 142 and no longer amortizes goodwill associated with acquisitions. This had an effect of adding approximately $.06 per basic and diluted share to the quarter and $0.12 per basic and diluted share for the six-month period ended September 30, 2001. The Company's deferred tax asset added approximately $0.09 per basic and diluted share to its second quarter results and $0.16 per basic and diluted share for the six-month period ended September 30, 2001.
"DrugMax has continued to produce positive financial results," Bill LaGamba, President and Chief Operating Officer, said. "Our solid second quarter and year-to-date performance illustrates the effectiveness of our long-term strategic planning and business model. We are committed to promoting our growth, solidifying our position in the industry and adhering to strict financial management."
"We are confident that the pharmaceutical industry will maintain its annual double-digit growth rate for now and throughout the long-term," Ron Patrick, Chief Financial Officer, said. "We are also pleased by the confidence that LaSalle Business Credit (Standard Federal Bank National Association) has shown DrugMax and our industry by increasing our asset-based line of credit from $15 million to $23 million."
"This is our second consecutive profitable quarter and a record-setting six-month period for DrugMax," LaGamba said. "We feel that our financial results give us the credibility and confidence to earn financing from institutions like LaSalle Business Credit (Standard Federal Bank National Association), as well as, from joint ventures with international pharmaceutical companies like Morepen Laboratories. Both companies have excellent reputations and presence in their respective industries and we are excited to do business with such formidable organizations."
"We are equally enthusiastic about the asset purchase of Penner & Welsch, Inc and the creation of Valley Drug Company South," LaGamba said. "The new company increases our presence throughout the Southeastern region. With less than six months left in our fiscal year, we believe that our strategic growth efforts, as well as, customer demands for our products and services should give us enough momentum to propel us through our first profitable year, despite global uncertainty." |
