Friday February 27, 9:05 pm Eastern Time
Company Press Release
National Healthcare Manufacturing Corp. announces second-quarter fiscal 1998 results, settlement of debenture
WINNIPEG, Manitoba--(BUSINESS WIRE)--Feb. 27, 1998--National Healthcare Manufacturing Corp. (NHMC) (Nasdaq:NHMCF - news; VSE:NHM - news) announced results for the quarter ended Dec. 31, 1997.
Revenues for the six-month period increased 160%, to $4,316,442, from $1,661,585, reported for the comparable period last year. Revenues for the last three months were $2,470,739, an increase of 34% over the previous quarter.
Highlighting the quarter was the completion and implementation of the company's state-of-the-art third-generation robotic technology used to produce various kits and trays for medical and surgical procedures.
Gross profit for the six-month period increased to $2,104,135, an increase of 254% over same period last year. The company's gross profit rate also increased to 49% over the comparable period last year of 36%. This increase is attributed in large part to the introduction of automation, one which identifies with health-care providers' on-going concerns for cost-effective supply alternatives.
NHMC's unprecedented ability to package these medical devices more quickly, more efficiently, accurately and cost effectively is providing the company with a definitive edge in the industry. The company anticipates reducing the manual labor component attributed to this production process by 80%-90%.
NHMC's President and CEO Mac Shahsavar, very encouraged with these results, stated: ''We have made significant investments over the past two years, particularly in sales and marketing, which are reflected in the short-term losses. However, we believe the pay-offs of these investments should begin to be realized within the next few quarters.''
Also further to the Feb. 4, 1998, news release, NHMC has reached a tentative settlement relating to the conversion of the convertible debenture. Under the terms of the proposed agreement with one of the underwriters, the balance outstanding for this fund has been converted at the present market price and will be held in escrow and released at a maximum 20% per month.
The company has also reached a tentative agreement with the second fund whereby the fund will only convert up to a maximum 10% per month until the position has been depleted. Both agreements do carry a stringent shorting provision to ensure proper selling. This tentative settlement will resolve all outstanding issues between all the parties.
National Healthcare is rapidly emerging as a market leader capable of providing the health-care industry with a comprehensive array of products and services that incorporate custom packaging, sterile re-packing and laundry services, along with the state-of- the-art supply management distribution technology. In the past two years NHMC has broadened its multi-faceted mandate to include:
1. Logistics and distribution centers (Hub & Spoke) where NHMC, in partnership with hospitals and/or its joint venture partner, implements centralized logistic services for regional authorities. NHMC Hub & Spoke centers will also be enhanced by construction of facilities where reusable products such as Mertex and other protective wear will be packed, sterilized and delivered daily to hospitals.
2. Packaging services where NHMC (utilizing its state-of-the-art robotic technology) will provide procedure-based disposable kits and trays to meet most procedural supply needs in hospitals.
By centralizing these services within the Hub & Spoke centers, NHMC expects to deliver significant cost savings to health-care systems while providing high levels of customer-focused service. The company will continue its pursuit of innovative products and services to further minimize health-care costs to end users.
For a complete copy of these financials, visit NHMC's Web site at www.nationalhealthcare.com or phone 800/883-8841.
On Behalf of the Board,
Seyed M. Torabian, P.Eng. Executive Vice President
Note to Editors: Neither Nasdaq nor the VSE have reviewed or accept responsibility for the accuracy of this release.
National Healthcare Manufacturing Corp.
Consolidated Statement of Operations
Three Months Six Months
Ended Dec. 31, Ended Dec. 31,
1997 1996 1997 1996
Revenues $2,470,739 $ 985,026 $4,316,442 $1,661,585
Cost of Sales $1,251,849 $ 666,008 $2,212,307 $1,068,580
Gross Profit $1,218,890 $ 319,018 $2,104,135 $ 593,005
% Gross Profit 49.3% 32.4% 48.75% 35.69%
Operating Expenses $2,336,039 $1,558,380 $4,225,027 $2,662,789
Loss From Investee $ 94,801 -- $ 320,806 --
Loss For Period $1,211,950 $1,239,362 $2,441,699 $2,069,784
Per Share $ (0.10) $ (0.11) $ (0.20) $ (0.19)
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Contact:
National Healthcare Manufacturing Corp.
Alex P. Tsakumis, 800/883-8841 or 604/689-8581
Internet: www.nationalhealthcare.com
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Related News Categories: biotech, computers, medical/pharmaceutical
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