What do you think, Jim?
I don't think IFLO disappointed us at all....
I-Flow Corporation Revenue Rises 18% to a New Second Quarter Record
<<<LAKE FOREST, Calif.--(BUSINESS WIRE)--July 17, 2000--I-Flow Corporation (Nasdaq:IFLO) announced today that revenue for the second quarter ended June 30, 2000 rose to a second quarter record of $7,740,000 from $7,338,000 a year ago.
Revenue for last year's second quarter included licensing fees of $800,000. Pretax income for the quarter was $438,000, or $0.03 per diluted share, compared to $929,000, or $0.06 per diluted share for the same period a year ago. Net income for the quarter was $252,000, or $0.02 per diluted share, compared to $893,000, or $0.06 per diluted share for last year's second quarter. Without the licensing fees, net pretax income for last year's second quarter would have been $0.01 per diluted share and net income for last year's second quarter would have been $0.01 per diluted share.
President and Chief Executive Officer Donald M. Earhart explained that the 18% increase in net product sales for the quarter was the result of additional revenue from Spinal Specialties, Inc., the designer and manufacturer of custom spinal, epidural and nerve block infusion kits which I-Flow acquired last January, strong international and domestic sales of the HomePump Eclipse(R) Elastomeric pump, and growing sales of the ON-Q(TM) and PainBuster(TM) wound site pain management systems. Total expenses were up due to costs associated with Spinal Specialties and increases in direct sales and marketing costs. Earnings for the second quarter and first half reflect a higher income tax rate, which was required as the Company changed its accounting for deferred tax assets in the fourth quarter of fiscal 1999. Had this higher tax rate been applied to earnings for the same period a year ago, the net income per diluted share, without licensing fees, for the quarter ended June 30, 1999 would have been $0.00 per diluted share.
Earhart also explained, "During the second quarter we further strengthened I-Flow's presence in the pain management and regional anesthesia markets with the introduction of the Paragon(R) Epidural Delivery System for management of labor and delivery pain. This pump administration set, which is packaged in the epidural tray, is a unique solution to the delivery of a continuous epidural, giving anesthesiologists complete control over when and how the medication is delivered. We will continue to explore aggressively other innovative pain management applications for our infusion technology."
Noting that I-Flow's InfuSystem subsidiary, a nationwide contract supplier of infusion pump management services for the oncology market, continued to perform impressively, Earhart said, "During the quarter InfuSystem experienced an increasing number of requests for services associated with our established and recently signed managed care contracts to provide infusion pump management services to the patient members in these healthcare networks. Our business with US Oncology, Inc.'s (Nasdaq:USON) network of over 800 oncologists in 26 states is progressing on schedule as we convert patient accounts to the InfuSystem program."
For the six months ended June 30, 2000, revenue rose to $15,206,000 from $13,555,000 for the same period a year earlier. Last year's six months revenue included licensing fees of $800,000. Pretax income for this year's first half was $1,159,000, or $0.07 per diluted share, compared to $1,507,000, or $0.10 per diluted share for the same period a year ago. Net income for the six months was $685,000, or $0.04 per diluted share, compared to $1,450,000, or $0.10 per diluted share for the same period in the prior year. Without the licensing fees, pretax income would have been $0.05 per diluted share and net income for last year's first half would have been $0.04 per diluted share. Had the Company's current effective income tax rate been applied to earnings for the same period a year ago, the net income per diluted share, without licensing fees, for the six months ended June 30, 1999 would have been $0.02 per diluted share.
At June 30, 2000, I-Flow reported working capital of $13.0 million, long-term debt of $1.0 million, and shareholders' equity of $26.5 million.
About I-Flow
I-Flow Corporation (www.i-flowcorp.com) designs, develops and markets technically advanced, low cost ambulatory infusion systems that are redefining the standard of care by providing life enhancing, cost effective solutions for pain management and infusion therapy.
The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve significant risks and uncertainties, including, without limitation, future demand for the Company's services, competition within the industry, and other risks or uncertainties detailed in the Company's Securities and Exchange Commission filings.
I-FLOW CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
($ in thousands, except for per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
(Unaudited) (Unaudited)
Net sales $ 7,740 $ 6,538 $ 15,206 $ 12,755
Licensing fees - 800 - 800
-------- -------- -------- --------
Total revenue 7,740 7,338 15,206 13,555
Cost of sales 3,426 2,887 6,415 5,523
-------- -------- -------- --------
Gross profit 4,314 4,451 8,791 8,032
Costs and expenses:
Selling, general
& administrative 3,523 3,109 6,896 5,750
Research & development 298 286 619 526
-------- -------- -------- --------
Total costs & expenses 3,821 3,395 7,515 6,276
-------- -------- -------- --------
Operating income 493 1,056 1,276 1,756
Interest expense, net 55 127 117 249
-------- -------- -------- --------
Income before taxes 438 929 1,159 1,507
Income taxes 186 36 474 57
-------- -------- -------- --------
Net income $ 252 $ 893 $ 685 $ 1,450
======== ======== ======== ========
Net income per share before taxes
Basic $ 0.03 $ 0.06 $ 0.08 $ 0.11
Diluted $ 0.03 $ 0.06 $ 0.07 $ 0.10
======== ======== ======== ========
Net income per share
Basic $ 0.02 $ 0.06 $ 0.05 $ 0.10
Diluted $ 0.02 $ 0.06 $ 0.04 $ 0.10
======== ======== ======== ========
Weighted average shares
Basic 15,000 14,349 14,500 14,224
Diluted 15,785 15,510 15,500 15,023
======== ======== ======== ========
CONDENSED CONSOLIDATED BALANCE SHEET
($ in thousands)
June 30, Dec. 31,
ASSETS 2000 1999
(unaudited)(audited)
--------------------------------------
Current assets $18,754 $19,115
Property, plant equipment, net 3,876 2,985
Other assets 10,841 9,668
------- -------
Total $33,471 $31,768
======= =======
June 30, Dec. 31,
LIABILITIES AND 2000 1999
EQUITY (unaudited)(audited)
----------------------------------------
Current liabilities $5,898 $ 5,550
Long-term liabilities 1,066 1,548
Shareholders' equity 26,507 24,670
------- -------
Total $33,471 $31,768
======= =======
CONTACT:
I-Flow Corp., Lake Forest
Donald M. Earhart, 949/206-2700
www.i-flowcorp.com
or
Neil Berkman Associates
John Hicks, 310/277-5162
info@BerkmanAssociates.com
KEYWORD: CALIFORNIA
BW2136 JUL 17,2000
5:00 PACIFIC
8:00 EASTERN>>> |
