PLMD on this earnings report:
PolyMedica Announces Record
Results FY1999 Revenues Up 42% to
$105 Million, Recurring EPS Up 36%
to $0.68
Accelerating Shipments Drive Record Fourth Quarter Performance
WOBURN, Mass.--(BUSINESS WIRE)--May 12, 1999-- PolyMedica Corporation (Nasdaq:
PLMD - news) solidified its position as the No. 1 provider of direct-to-consumer diabetes supplies
with record shipments in both the fourth quarter and in fiscal year 1999. Accelerating customer
demand created business momentum accompanied by record revenue and earnings for the fiscal
fourth quarter and year ended March 31, 1999.
For fiscal 1999, net revenues rose 42% to $104.8 million from $73.8 million generated in the prior
fiscal year. Pre-tax income from ongoing operations increased 48% to $10.9 million in fiscal 1999.
This solid performance reflects the decision by management to launch a marketing program to attract
the 2 million Type II diabetics who first became Medicare-eligible for testing supplies on July 1,
1998.
Net income from recurring operations increased 36% to $6.7 million, or $0.68 per diluted share, for
fiscal 1999, from $4.9 million, or $0.50 per diluted share, for fiscal 1998. The Company generated
positive operating cash flow of $539,000 in fiscal 1999, a sharp turnaround from a $9.9 million
operating cash outflow in fiscal 1998. Revenue and net income growth, accompanied by positive
cash flow, exceeded management's publicly stated targets.
The Company shipped to a record number of customers in the fiscal fourth quarter, continuing its
pattern of nine consecutive quarters of profitable growth. For the fiscal 1999 fourth quarter, net
revenues rose 42% to $30.6 million from $21.6 million in the year earlier. Net income was $2.1
million, or $0.22 per diluted share, compared to $1.5 million, or $0.15 per diluted share, in the same
period of the prior fiscal year.
''Clearly we are pleased with our year end and fourth quarter results,'' commented Chairman and
CEO Steven J. Lee. ''We are particularly gratified with our across-the-board progress and our
strategy of providing consumers with the benefits of home delivery of specialty medical products.
Our proprietary database of diabetic seniors in the U.S., specialized customer service systems and a
highly trained service force accustomed to assisting seniors with chronic medical conditions are
helping to gain growing acceptance in the marketplace. We expect to continue our expansion in
diabetes and other related direct-to-consumer categories.
''The Company is enhancing its Web site, developing an interactive disease management system,
and increasing its visibility on search engines as part of an effort to explore the potentials of
E-commerce. In addition, to support the accelerating growth of our direct-to-consumer business, the
Company has purchased a 66,000 square foot facility in St. Lucie county, FL. This facility will be
state-of-the-art both in terms of design and technology to further serve the needs of our diabetic
customers.''
The company continues to lead its OTC market segment with its popular, high gross margin AZO
brand line of female urinary tract discomfort products. In April 1999, PolyMedica began shipments
of two new AZO brand products. AZO Menopause(TM) relieves both direct and associated
symptoms from hot flashes. There are approximately 30 million women in the menopausal age range
of 40-59. AZO Confidence(TM) provides temporary relief of incontinence, which affects
approximately 25% of women between the ages of 21 and 64.
PolyMedica is best known through its subsidiaries and product lines. The Company's Liberty
Medical Supply, Inc. subsidiary is the leading direct mail provider of diabetes testing supplies to
seniors who have Medicare coverage. Liberty offers approximately 200 brand-name products from
a full range of manufacturers. The Company's AZO line of products has risen to a 47% share of the
over-the-counter female urinary tract discomfort market. PolyMedica also is the leading
manufacturer and distributor of private-label digital thermometers and has the number two overall
market position in thermometers.
For more information on PolyMedica, please contact our web site at polymedica.com.
This press release contains forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and ...... |
