Here it is:
Thursday March 19, 6:31 am Eastern Time
Company Press Release
Biopool International Reports Sales and Earnings for 1997
VENTURA, Calif.--(BUSINESS WIRE)--March 19, 1998--Biopool International Inc. (Nasdaq:BIPL - news)Thursday reported results for the fourth quarter and year ended Dec. 31, 1997.
Sales for the year advanced 106 percent to a record high of $16,505,000 from $8,020,000 in 1996. This increase is primarily due to the acquisition of BCA on Jan. 1, 1997. Income from ongoing operations (before taxes, interest and restructuring charges) increased 18 percent to $1,477,000 in 1997 from $1,248,000 in 1996. Net income was
$843,000, or $.09 per share in 1997, vs. net income of $1,295,000, or $.16 per share, for the previous year.
Primary factors contributing to the decrease in earnings were a restructuring charge of $342,000 taken by the company in connection with the consolidation of the company's Canadian facilities in the fourth quarter of 1997,an increase of interest expense equal to $236,000, all of which is related to the debt service for the BCA
acquisition, and a reduction in tax benefits to $200,000 in 1997 compared with $400,000 in 1996.
The tax benefits represent reductions of the allowance against the deferred tax asset. No such allowance is available for future periods.
For the fourth quarter, sales increased 79 percent to $3,844,000 from $2,147,000 in 1996. However, Biopool reported a net loss of $310,000, or $.04 per share, for the quarter, compared with net income of $282,000, or $.03 per share, for the same period a year ago. Decreased earnings for the current fourth quarter were primarily the result of the restructuring charge, the increased interest charges and the reduced tax benefits noted above, as well as weaker than normal sales.
Michael D. Bick, Ph.D., chairman and chief executive officer of Biopool International, commented: ''Overall, 1997 has been a successful year for the company. Our staff has worked very hard to assimilate the operations and product line of the new BCA Division into Biopool, and we are pleased with the results. Reflecting that success, the company had strong quarters in line with expectations through the third quarter of 1997.
''The fourth quarter, however, demonstrated a weakening of sales in nearly all areas of our business. As our market undergoes rapid change, Biopool's management team continues to work vigorously to identify the nature and impact of those changes and implement new strategies. The closure of our Canadian facilities to save
duplicative overhead costs is one such solution that will benefit the bottom line for years to come.''
Bick continued, ''Management remains committed to the development of new products, acquisition of new technologies, and pursuit of strategic joint ventures to continue to aggressively grow the company, and we certainly expect to achieve significant progress in these strategic activities in 1998.''
Founded in 1987, Biopool International develops, manufactures and markets a full range of test kits to assess and diagnose disorders of blood coagulation, thrombotic risk factors, fibrinolysis, platelet function and the vascular system; specialty chemistry controls used to monitor and measure the presence of drugs of abuse; and blood
group serology products used to screen for antibodies and to group and type whole blood.
The company's products are sold to hospitals, blood bank facilities, and clinical and reference laboratories on a worldwide basis directly and through an extensive network of distributors.
This news release contains forward-looking statements regarding the changing market for Biopool's products and future sales growth which are based upon current expectations and involve a number of risks and uncertainties,including, but not limited to, technological innovations of competitors, changes in health-care regulations,litigation claims, foreign currency fluctuation, product acceptance or changes in government regulation of the company's products, as well as other factors discussed in the company's last Report on Form 10-KSB under
''Risk Factors.''
BIOPOOL INTERNATIONAL INC.
1997 Financial Highlights
(In thousands, except share data)
OPERATIONS DATA
(Unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31,
1997 1996 1997 1996
Sales $ 3,844 $ 2,147 $16,505 $ 8,020
Operating income (loss) (200) 209 1,477 1,248
Net income (310) 282 843 1,295
EPS
Net income $ (0.04) $ 0.03 $ 0.09 $ 0.16
Average common and
equivalent shares
outstanding -- -- 9,112 8,342
BALANCE SHEET DATA
(Unaudited)
Dec. 31,
1997 1996
Working capital $ 5,471 $ 3,935
Total assets 13,678 13,216
Long-term debt 1,873 2,811
Total shareholders' equity 9,045 8,352
Contact:
Biopool International Inc., Ventura
Michael D. Bick or Carol Hill, 805/654-0643 |
