Remedent, Inc. Reports Profits in Third Quarter
DEURLE, BELGIUM--(Marketwire - February 14, 2011) - Remedent, Inc. (OTCBB: REMI), an international company specializing in research, development, and manufacturing of oral care and cosmetic dentistry products, reported results for the third quarter ended December 31, 2010 (in US Dollars).
Net sales for the three months ended December 31, 2010 increased 77% to $3.25 million compared to $1.83 million for the same year ago quarter. Net sales for the nine months ended December 31, 2010 increased 69% to $9.78 million compared to $5.78 million in the same year ago period. The increase in sales was mainly due to increased sales in Asian Glamsmile facilities in Beijing and Hong Kong. Our sales also increased as a result of the continued launch of new, higher margin, OTC products.
Profit for the three months ended December 31, 2010, prior to outside participation and tax, totaled $169 thousand compared with losses of $1 million for the same year ago quarter. Profit for the nine months ended December 31, 2010, prior to outside participation and taxes, totaled $1.15 million compared with losses of $2.66 million for the same year ago period.
Profit attributed to Remedent common stockholders for the three months ended December 31, 2010, was $17 thousand compared with losses of $836 thousand for the same year ago quarter. Profits attributable to Remedent common shareholders for the nine months ended December 31, 2010, were $530 thousand compared with losses of $2.22 million for the same year ago period.
Cash and cash equivalents totaled $1.74 million at December 31, 2010 compared to $613 thousand at March 31, 2010.
Management Commentary
"The shifting of our business model from wholesale (B2B) model via a distributor to a direct retail model is bearing fruit as we discussed in prior conference calls. During the current and prior quarters we have been including our retail Asian operations of approximately $2 million gross revenues as we are continuing to open Spa locations in both Europe and Asia during our final quarter as well as in the next fiscal year. Sales in our Spa locations continue to exceed our expectations as sales continue to climb," said Guy De Vreese, CEO of Remedent.
Conference Call Information
Remedent will host a conference call on Friday, February 18, 2011 at 9 AM EST (6 AM PST) to discuss these results and its strategic plan for the future. A question and answer session will follow management's presentation. To participate in this call, dial the appropriate number 5-10 minutes prior to start time.
Date: Friday, February 18th 2011. Time: 9 AM EST. (6 AM PST). Dial in number: 877-741-4253 Passcode: 5796529
The replay of the call will be available through March 15, 2011. The dial in number for the replay is 888-203-1112. The replay passcode is 5796529.
About Remedent
Remedent, Inc. specializes in the research, development, manufacturing and marketing of oral care and cosmetic dentistry products. The company serves professional dental industry with breakthrough technology for dental veneers. These products are supported by a line of professional veneer whitening and teeth sensitivity solutions. Headquartered in Belgium, Remedent distributes its products to more than 35 countries worldwide. For more information, go to www.remedent.com.
Forward-Looking Statements
Statements in this press release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause Remedent's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," "projects," "project," to be uncertain and forward-looking. Actual results could differ materially because of factors such as Remedent's ability to achieve the synergies and value creation contemplated by the proposed transaction. For further information regarding risks and uncertainties associated with Remedent's business, please refer to the risk factors described in Remedent's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. We undertake no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
REMEDENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the three months For the nine months
ended December 31, ended December 31,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Net sales $ 3,248,396 $ 1,834,021 $ 9,786,708 $ 5,775,125
Cost of sales 911,197 972,247 2,619,476 3,370,491
----------- ----------- ----------- -----------
Gross profit 2,337,199 861,774 7,167,232 2,404,634
----------- ----------- ----------- -----------
Operating Expenses
Research and
development 141,687 150,225 319,226 231,345
Sales and
marketing 629,654 403,171 1,536,644 891,182
General and
administrative 1,176,078 1,065,114 3,584,387 3,210,512
Depreciation and
amortization 178,288 206,923 562,515 558,281
----------- ----------- ----------- -----------
TOTAL OPERATING
EXPENSES 2,125,707 1,825,433 6,002,772 4,891,320
----------- ----------- ----------- -----------
INCOME (LOSS) FROM
OPERATIONS 211,492 (963,659) 1,164,460 (2,486,686)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSES)
Warrants issued -- (8,350) -- (168,238)
Interest expense (52,768) (56,915) (142,105) (120,768)
Interest income 11,218 24,179 123,065 115,337
----------- ----------- ----------- -----------
TOTAL OTHER INCOME
(EXPENSES) (41,550) (41,086) (19,040) (173,669)
----------- ----------- ----------- -----------
NET INCOME (LOSS)
BEFORE INCOME TAXES
AND NON-CONTROLLING
INTEREST 169,942 (1,004,745) 1,145,420 (2,660,355)
PROVISION FOR INCOME
TAXES 91,393 -- 140,568 --
----------- ----------- ----------- -----------
INCOME (LOSS) FROM
CONTINUING OPERATIONS
BEFORE NON-CONTROLLING
INTEREST, NET OF TAX 78,549 (1,004,745) 1,004,852 (2,660,355)
LESS: NET INCOME (LOSS)
ATTRIBUTABLE TO
NON-CONTROLLING
INTEREST 61,808 (168,624) 474,696 (436,020)
----------- ----------- ----------- -----------
NET INCOME (LOSS)
ATTRIBUTABLE TO
REMEDENT, INC. Common
Stockholders $ 16,741 $ (836,121) $ 530,156 $(2,224,335)
=========== =========== =========== ===========
INCOME (LOSS) PER SHARE
Basic $ 0.00 $ (0.04) $ 0.03 $ (0.11)
=========== =========== =========== ===========
Fully diluted $ 0.00 $ (0.04) $ 0.02 $ (0.11)
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic 19,995,969 19,995,969 19,995,969 19,995,969
=========== =========== =========== ===========
Fully diluted 30,108,762 33,789,738 33,989,738 33,789,738
=========== =========== =========== ===========
REMEDENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
For the three months For the nine months
ended December 31, ended December 31,
------------------------ ------------------------
2010 2009 2010 2009
----------- ----------- ----------- -----------
Net Income (Loss)
Attributable to
Remedent Common
Stockholders $ 16,741 $ (836,l21) $ 530,156 $(2,224,335)
OTHER COMPREHENSIVE
INCOME (LOSS):
Foreign currency
translation adjustment (59,479) (24,844) (81,239) 93,485
----------- ----------- ----------- -----------
Total Other Comprehensive
income (loss) (42,738) (860,965) 448,917 (2,130,850)
LESS: COMPREHENSIVE
INCOME (LOSS)
ATTRIBUTABLE TO
NON-CONTROLLING
INTEREST (21,759) (6,331) (24,902) 49,753
----------- ----------- ----------- -----------
COMPREHENSIVE INCOME
(LOSS) ATTRIBUTABLE TO
REMEDENT Common
Stockholders $ (64,497) $ (867,296) $ 424,015 $(2,081,097)
=========== =========== =========== ===========
REMEDENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, March 31,
2010 2010
------------ ------------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,737,310 $ 613,466
Accounts receivable, net of allowance for
doubtful accounts of $33,150 at
December 31, 2010 and $65,845 at March 31,
2010 2,092,097 806,931
Inventories, net 2,041,096 2,161,692
Prepaid expenses 1,071,423 920,487
------------ ------------
Total current assets 6,941,926 4,502,576
------------ ------------
PROPERTY AND EQUIPMENT, NET 1,385,763 1,735,719
OTHER ASSETS
Long term investments and advances 750,000 750,000
Patents, net 214,500 246,992
Goodwill 699,635 699,635
------------ ------------
Total assets $ 9,991,824 $ 7,934,922
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion, long term debt $ 54,619 $ 215,489
Line of Credit 2,136,960 674,600
Accounts payable 1,767,618 1,932,684
Accrued liabilities 739,628 491,536
Due to related parties 95,354 268,484
------------ ------------
Total current liabilities 4,794,179 3,582,793
Long term debt less current portion 458,236 425,882
------------ ------------
Total liabilities 5,252,415 4,008,675
------------ ------------
EQUITY:
REMEDENT, INC. STOCKHOLDERS' EQUITY
Preferred Stock $0.001 par value;
(10,000,000 shares authorized, none issued
and outstanding) -- --
Common stock, $0.001 par value; (50,000,000
shares authorized, 19,995,969 shares
issued and outstanding at December 31, 2010
and March 31, 2010) 19,996 19,996
Treasury stock, at cost; 723,000 shares at
December 31, 2010 and March 31, 2010 (831,450) (831,450)
Additional paid-in capital 24,842,858 24,742,201
Accumulated deficit (19,035,786) (19,565,943)
Accumulated other comprehensive (loss) (foreign
currency translation adjustment) (731,298) (650,059)
Obligation to issue shares 97,500 97,500
------------ ------------
Total Remedent, Inc. stockholders' equity 4,361,820 3,812,245
Non-controlling interest 377,589 114,002
------------ ------------
Total stockholders' equity 4,739,409 3,926,247
------------ ------------
Total liabilities and equity $ 9,991,824 $ 7,934,922
============ ============