Milestone Scientific Announces 2010 Year End Results
LIVINGSTON, N.J., April 4, 2011 /PRNewswire/ -- Milestone Scientific Inc. (OTCQB: MLSS), the recognized leader in advanced drug delivery technologies, today announced its results for the year ended December 31, 2010.
Financial Highlights When Comparing 12-Months Ended December 31, 2010 with 12-Month Ended December 31, 2009:
- Total revenues were $9.75 million, rising 14% from $8.55 million.
- Sales in the U.S. decreased 16% to $4.53 million from $5.28 million.
- International sales increased 65% to $5.22 million from $3.17 million.
- Instrument sales totaled $3.69 million, a 16% increase from $3.18 million.
- Disposable handpiece sales climbed 13% to $5.96 million from $3.18 million.
- Gross profit margin was 64% in 2010 as compared to 60% in 2009.
- Net loss for the year ended December 31, 2010 decreased to $615,000 as compared to $1,530,000 for the same period in 2009. The decrease in the loss was primarily due to increased gross margin dollars as well as a reduction in selling, general and administrative expenses of $304,000. The combination of these results decreased our loss from operations to $700,857 in 2010 as compared to $2,103,513 in 2009.
As of December 31, 2010, Milestone had $627,000 in cash, negative working capital of $7,000, and total shareholders' equity of $2.33 million. The negative working capital was due to an increase in advances to, and payable to, a contract manufacturer due to a delay in shipping the STA instruments to a Chinese distributor. The delay was caused by the distributor not yet receiving regulatory approval to sell the instruments in China. The delay in shipping also resulted in the delay in full payment for the shipment of instruments in June 2010. The original purchase order for the instruments did not provide for delayed payments.
According to Leonard Osser, Chief Executive Officer of Milestone Scientific, "2010 can be classified as a defining year of change for the Company. Not only did we reduce the yearly loss significantly, but we have established a building block for growth. Domestically, with the direction of Marvin Terrell, Director of Domestic Sales, and the use of independent clinical consultants,(generally hygienists), the Company is strategically positioned to sell, implement and train all forms of dental practices, from individual to group dental practices. Internationally, with the addition of Dale Johnson, Director of International Sales, our business is growing steadily. At the recent International Dental Show in Cologne, Germany, the Company established significant in-roads into territories previously unavailable to Milestone. The only low spot for 2010 was the delay in obtaining regulatory approval to sell our instruments and handpieces in China. However, it is expected that such approval will be received in 2011. Therefore, the solid foundations created in 2010 should provide a platform for growth in 2011."
Adding to Leonard Osser's sentiments, Joseph D'Agostino, Chief Financial Officer of Milestone Scientific, added," 2010 has provided a substantial improvement in operating results. The basic building blocks for market penetration into 2011 have been established. Milestone's addition of the sales directors for the domestic and international markets have already begun to show significant signs of success. On the domestic scene, Milestone established the STA Instrument as a premier anesthesia delivery system for Towncare Dental, a regional group practice in South Florida in January, 2011. This customer will provide a substantial motivation for other group dental practices to include our STA instruments in their practices. Internationally, our business continues to grow under the direction of our Director of International Sales. The number of first time distributors in Russia, the Middle East, Central America and South America has increased significantly in the last half of the year."
Milestone's executive management team will host a teleconference this afternoon, Monday, April 4, 2011, beginning at 4:15 PM, EDT, and invites all interested parties to join them in a discussion regarding the Company's financial results, corporate progress and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-877-941-8418. For those unable to participate at that time, a replay of the teleconference can be accessed domestically by dialing 1-800-406-7325 and entering the pass code 4430692. The replay will be available for 90 days.
MILESTONE SCIENTIFIC INC. CONDENSED BALANCE SHEET
For the Years Ended December 31, 2010 and 2009 (AUDITED)
December 31, 2010
December 31, 2009
Cash and cash equivalents
Accounts receivable, net of allowance for doubtful accounts of $202,160 in 2010 and $5,000 in 2009
Advances to contract manufacturer
Prepaid expenses and other current assets
Total current assets
Accounts receivable-long term, net of allowance for doubtful accounts of $438,840 in 2010
Advances to contract manufacturer
Investment in distributor, at cost
Furniture, Fixtures & Equipment net of accumulated depreciation of $426,482
as of December 31, 2010 and $395,630 as of December 31, 2009
Patents, net of accumulated amortization of $294,934 as of December 31, 2010
and $211,539 as of December 31, 2009
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - short term
Accrued expenses and other payable
Total current liabilities
Accounts payable - long term
Accrued Interest - 6% note
Notes Payable-net of discount of $8,361 and $11,157, respectively
Total long-term liabilities
Commitments and Contingencies
Common stock, par value $.001; authorized 50,000,000 shares; 14,915,959 shares issued
637,013 shares to be issued and 14,882,626 shares outstanding as of December 31, 2010;
14,781,295 shares issued, 692,498 shares to be issued, and 14,747,962 shares outstanding
as of December 31, 2009
Additional paid-in capital
Treasury stock, at cost, 33,333 shares
Total stockholders' equity
Total liabilities and stockholders' equity
MILESTONE SCIENTIFIC INC. RESULTS OF OPERATIONS
Product sales, net
Cost of products sold