Sharps Compliance Settles Government Contract Termination Lawsuit
July 02 2014 - 8:30AM
Sharps Compliance Corp. (Nasdaq:SMED) ("Sharps" or the "Company"),
a leading full-service provider of solutions for the cost-effective
management of medical waste, used healthcare materials and unused
dispensed medications, today announced that the Company has entered
into an agreement settling all claims against the United States
government and various agencies related to the January 2012
termination of the Company's February 2009 contract with the
Centers for Disease Control and Prevention (CDC).
The settlement agreement calls for a cash payment to Sharps
Compliance of $1,537,500, which is inclusive of interest. Each
party will bear its own costs, attorney fees, and expenses.The
settlement amount is expected to be received over the next 30 to 60
days and will be recorded as a recovery of previously incurred
post-contract termination expenses. The settlement will have a
positive net income impact of $0.10 per share.
On January 29, 2009, the Company entered into a five year
contract with the United States Department of Veterans Affairs,
National Acquisition Center (VA NAC), to provide its Sharps® MWMS™,
a rapid-deployment solution designed to provide medical waste
collection, storage and treatment in the event of natural
disasters, pandemics, man-made disasters, or other national
emergencies in support of the Centers for Disease Control, Division
of Strategic National Stockpile. Sharps® MWMS™ also incorporated
warehousing, inventory management, training, data and other
services necessary to provide a comprehensive solution. Sharps
performed under the contract through January 31, 2012.
About Sharps Compliance Corp.
Headquartered in Houston, Texas, Sharps Compliance is a leading
full-service provider of comprehensive medical waste management
services throughout North America. Its strategy is to capture a
large part of the estimated $3.8 billion untapped market for its
solutions by targeting the major agencies that are interrelated
with this medical waste stream, including pharmaceutical
manufacturers, home healthcare providers, retail pharmacies and
clinics, the U.S. government and the professional market which is
comprised of physicians, dentists and veterinary
practices. The Company's flagship product, the Sharps®
Recovery System is a comprehensive solution for the containment,
transportation, treatment and tracking of medical waste and used
healthcare materials. The Company has partnered with Daniels
Sharpsmart in a joint marketing alliance to serve the entire U.S.
medical waste market, addressing small and large quantity medical
waste generators with highly cost-effective and compliant
solutions. Its innovative offerings serve the needs of
healthcare and physician's facilities, dental groups and
veterinarians that have multi-site and multi-size
locations.
More information on the Company and its products can be found on
its website at: www.sharpsinc.com
Safe harbor statement
The information made available in this news release contains
certain forward-looking statements which reflect Sharps Compliance
Corp.'s current view of future events and financial
performance. Wherever used, the words "estimate," "expect,"
"plan," "anticipate," "believe," "may" and similar expressions
identify forward-looking statements. Any such forward-looking
statements are subject to risks and uncertainties and the company's
future results of operations could differ materially from
historical results or current expectations. Some of these
risks include, without limitation, the company's ability to educate
its customers, development of public awareness programs to educate
the identified consumer, customer preferences, the Company's
ability to scale the business and manage its growth, the degree of
success the Company has at gaining more large customer contracts,
managing regulatory compliance and/or other factors that may be
described in the company's annual report on Form 10-K, quarterly
reports on Form 10-Q and/or other filings with the Securities and
Exchange Commission. Future economic and industry trends that
could potentially impact revenue and profitability are difficult to
predict. The Company assumes no obligation to publicly update
or revise its forward-looking statements even if experience or
future changes make it clear that any projected results, express or
implied therein, will not be realized.
Non-GAAP measures
This release contains certain financial information not derived
in accordance with generally accepted accounting principles
("GAAP"), including customer billings information, EBITDA and
non-GAAP net income (loss) per share. The Company believes this
information is useful to investors and other interested parties.
Such information should not be considered as a substitute for any
measure derived in accordance with GAAP, and may not be comparable
to other similarly titled measures of other companies.
Reconciliation of this information to the most comparable GAAP
measures is included as an attachment to this release.
CONTACT: Diana P. Diaz
Sharps Compliance Corp.
Vice President and Chief Financial Officer
Phone: (713) 660-3547
Email: ddiaz@sharpsinc.com
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: (203) 972-9200
Email: jnesbett@institutionalms.com
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