Milestone Scientific Announces 2011 First Quarter Results
LIVINGSTON, N.J., May 9, 2011 /PRNewswire/ -- Milestone Scientific Inc. (OTCQB: MLSS), the recognized leader in advanced drug delivery technologies, today announced its results for the first quarter ended March 31, 2011.
Financial Highlights When Comparing 3-Months Ended March 31, 2011 with 3-Months Ended March 31, 2010:
- Total revenues were $2.43 million, a decrease of 5% from $2.56 million.
- Sales in the U.S. increased 9% to $1.31 million from $1.20 million.
- International sales decreased 18% to $1.11 million from $1.36 million.
- Instrument sales increased 35% to $811,000 from $600,000.
- Disposable handpiece sales decreased 18% to $1.58 million from $1.94 million.
- Gross profit margin was 64% in 2011 as compared to 65% in 2010.
- Net loss for the first quarter ended March 31, 2011, was $141,644 as compared to a net profit of $83,922 for the same period in 2010. The $225,566 decrease in net profit was primarily attributable to a reduction in international handpiece sales in the first quarter of 2011 due to the delay in obtaining registration of the WAND/STA instrument and handpieces for the sale of these products in China and an increase of $82,553 of selling general and administrative expenses in the areas of sales and marketing expenses, as the company continues its field hygienist program.
- Total revenues in the first quarter ended March 31, 2010 included $494,208 of handpiece revenue to a Chinese distributor.. Comparatively, exclusion of handpiece revenues to a Chinese distributor in 2010 would have resulted in an increase in revenues in 2011 over 2010 of $357,618. The expectation is that the Chinese distributor will receive regulatory approval to distribute the WAND/STA instrument and handpieces in 2011.
As of March 31, 2011, Milestone had $155,263 in cash and negative working capital of $177,786, and a total shareholders' equity of approximately $2.29 million. The negative working capital is 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 receiving regulatory approval in China also resulted in the delay of the Chinese distributor paying in total for the shipment of instruments from June 2010. The original purchase order for the instruments did not include a condition for delayed payments.
According to Leonard Osser, Chief Executive Officer of Milestone Scientific, "The first quarter of 2011 is showing the continued expansion of our instrument sales into the domestic market. Our continued focus on Group Dental Practices is beginning to demonstrate positive growth. With the addition of Towncare Partners as our first significant group practice to incorporate the WAND/STA instrument and handpieces into their practice as a new standard of care, replacing the 160 year-old syringe, our opportunity for growth in this market is significant. With the field support of our independent hygienists, providing education and training, we believe that significant growth of handpiece sales in the near future can be achieved. Internationally, instrument sales also increased by over $100,000 as the Company continue to enter new markets and expand growth in the existing international arena. We remain optimistic that the delay in obtaining regulatory approval to sell our instruments and handpieces in China will be resolved in 2011. Therein allowing, the solid foundations created in the prior year to provide a platform for growth into 2011."
Adding to Leonard Osser's sentiments, Joseph D'Agostino, Chief Financial Officer of Milestone Scientific added, "The comparison of the first quarter 2011 to the same period in 2010, identifies substantial instrument revenue growth in both the domestic and international businesses. However, instrument growth alone is not our mission. Acceptance of the WAND/STA instrument is only the first step in the growth of our dental business. The exclusive use of the WAND/STA instrument, as the standard of care for all injections and the expansion of our handpiece usage is paramount. Milestone is focused and committed to the hygienist/educator program in the domestic market. We believe that the investment in this program education, training and support of the dentists will reap significant benefits for the Company in the future years."
Milestone's executive management team will host a teleconference on Tuesday, May 10, 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 1-888-549-7704. 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 4438435. The replay will be available for 90 days.
FINANCIAL CHARTS TO FOLLOW
MILESTONE SCIENTIFIC INC.
CONDENSED BALANCE SHEETS
March 31, 2011
December 31, 2010
Cash and cash equivalents
Accounts receivable, net of allowance for doubtful accounts of $202,160 in 2011 and 2010
Advances to contract manufacturer, current
Prepaid expenses and other current assets
Total current assets
Accounts receivable-long term, net of allowance for doubtful accounts of $426,840 as of March 31, 2011
and $438,840 as of December 31, 2010
Advances to contract manufacturer, non current
Investment in distributor, at cost
Furniture, Fixtures & Equipment net of accumulated depreciation of $431,769 as of March 31, 2011
and $426,482 as of December 31, 2010
Patents, net of accumulated amortization of $316,239 as of March 31, 2011
and $294,934 as of December 31, 2010
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - short term
Accrued expenses and other payable
Total current liabilities
Accounts payable - long term
Notes Payable-net of discount of $7,662 and $8,361, respectively
Total long-term liabilities
Commitments and Contingencies
Common stock, par value $.001; authorized 50,000,000 shares; 15,030,459 shares issued
642,847 shares to be issued and 14,997,126 shares outstanding as of March 31, 2011;
14,915,959 shares issued, 637,013 shares to be issued, and 14,882,626 shares outstanding
as of December 31, 2010
Additional paid-in capital
Treasury stock, at cost, 33,333 shares
Total stockholders' equity
Total liabilities and stockholders' equity
MILESTONE SCIENTIFIC INC.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
Product sales, net
Cost of products sold