Nice earnings for SBTK
If anyone missed it-
Sabratek Reports Record Second Quarter 1998 Results - Pre-Tax Income up 108%; Sales Increase 66% -
PR Newswire - August 06, 1998 07:45
NILES, Ill., Aug. 6 /PRNewswire/ -- Sabratek Corporation (Nasdaq: SBTK) today announced its financial results for the three months ended June 30, 1998. Net sales for the quarter increased 66% to $16.3 million as compared to $9.8 million for the same period last year. Net income before taxes for the quarter increased 108% to $3,454,000, compared to $1,660,000 for the second quarter 1997. Net income for the quarter was $2,276,000 or $0.20 per share, compared to $1,627,000, or $0.15 per share for the same period last year. Earnings per share data were calculated on a diluted basis. The Company expects to utilize all of its available net operating loss carry forwards in 1998. On a fully taxed basis, second quarter EPS would have been $0.18 per share compared to a fully taxed $0.09 last year. For the three month period, there were 11,639,000 shares outstanding on a weighted average basis.
Sales for the six months ended June 30, 1998 increased 82% to $31.5 million, compared to $17.3 million in the same period last year. Net income for the six month period rose to $4.2 million or $0.36 per share compared to $2.7 million or $0.26 per share in the first six months of last year. On a fully taxed basis, EPS grew to $0.34 per share for the sixth month period compared to $0.16 per share in 1997.
The Company recently announced two significant contracts for its Rocap flush product line. Sabratek was awarded a three-year prime vendor contract for prepared I.V. flushes to Omnicare, Inc., the nation's largest provider of pharmacy services to long-term care, assisted living and institutional health care providers. Separately, Sabratek announced a two-year agreement to supply the full complement of the Rocap product line to Premier Inc., the nation's largest group purchasing organization. Additionally, the Company recently acquired CMS Healthcare, a Tampa based provider of utilization review, quality services and disease management programs.
"This was a very positive quarter for Sabratek. The Company posted another record financial quarter while both expanding the markets we serve and continue to build upon our existing customer base," said K. Shan Padda, Chairman and Chief Executive Officer. "We are delighted to establish and strengthen relationships with prominent organizations, such as Premier and Omnicare. They mark the accelerated acceptance of the Rocap product line within the acute and subacute markets and we are very pleased with the revenue potential each contract represents. With the addition of CMS to Sabratek, we are able to expand our managed care, data analysis and capitation capabilities." Padda concluded, "We are pleased to report record financial results in the second quarter. We are also pleased that we continue to establish new significant customer relationships and that we have added new strength to our management team as we pursue our vision of the Virtual Hospital Room."
Sabratek Corporation develops, produces and markets technologically advanced, user friendly, interactive therapeutic and diagnostic medical systems designed specifically to meet the needs of the healthcare market. The Company's multi-therapy infusion and other systems reduce operating costs while improving the delivery and quality of care, allowing high-acuity patients to be treated in various healthcare settings. Sabratek's proprietary MediVIEW(R) healthcare information system provides remote programming as well as real-time diagnostic and therapeutic data capture capabilities, allowing caregivers to monitor patient compliance more effectively and allowing providers to develop outcome analyses and optimal clinical protocols. Sabratek's PumpMaster(TM) facilitates mandatory equipment diagnostics without the costly retrieval of pumps for testing in centralized laboratories. The Company has designed its integrated hardware and software to permit providers to achieve cost-effective movement of patients along the continuum of healthcare settings.
This press release contains forward-looking statements. The actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward looking statements as contained in the Company's periodic reports filed under the Securities Exchange Act of 1934, as amended (copies of which are available upon request from the Company's Investor Relations Department).
Sabratek Corporation
Condensed Balance Sheet
(in thousands)
Assets June 30, December 31,
1998 1997
(unaudited)
Current assets:
Cash & cash equivalents $74,074 $19,598
Investments in marketable
securities 2,003 5,004
Trade receivables, net 21,226 15,293
Inventories 20,882 13,719
Other current assets 1,962 1,029
Total current assets 120,147 54,643
Property plant &
equipment, net 4,070 3,546
Notes receivable 924 233
Intangible assets, net 18,507 12,644
Investments in marketable
securities 19,629 --
Other 2,810 101
$166,087 $71,167
Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt $4 $25
Accounts payable and
accrued liabilities 5,519 6,061
Other 1,562 402
Total current liabilities 7,085 6,488
Long term debt 85,000 --
Other long term obligations 857 264
Total liabilities 92,942 6,752
Stockholders' equity 73,145 64,415
$166,087 $71,167
Sabratek Corporation
Statement of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
(unaudited) (unaudited)
1998 1997 1998 1997
Net sales $16,301 $9,848 $31,457 $17,314
Cost of sales 6,989 4,159 13,716 7,185
Gross margin 9,312 5,689 17,741 10,129
Selling, general,
and administrative
expenses 5,923 4,427 11,590 7,937
Operating income 3,389 1,262 6,151 2,192
Other income (expense):
Interest income 1,128 414 1,343 557
Interest expense (1,063) (16) (1,068) (22)
Net income before taxes 3,454 1,660 6,426 2,727
Provision for
income taxes 1,178 33 2,190 55
Net income $2,276 $1,627 $4,236 $2,672
Basic earnings
per share $ 0.22 $ 0.17 $0.40 $ 0.30
Basic weighted
average shares 10,570 9,823 10,484 9,055
Diluted earnings
per share $ 0.20 $0.15 $0.36 $ 0.26
Diluted weighted
average shares 11,639 10,890 11,681 10,195
SOURCE Sabratek Corporation
/CONTACT: Paul Jurewicz, Chief Financial Officer of Sabratek Corporation,
847-647-2760; or Rhonda Chiger, investors, or Elissa Grabowski, media, of Dewe
Rogerson, Inc., 212-688-6840, for Sabratek Corporation/
(SBTK) |
