Sharps Compliance Corp. (NASDAQ:SMED) (“Sharps” or the “Company”),
a leading full-service national provider of comprehensive waste
management solutions including medical, pharmaceutical and
hazardous, today reported financial results for the second quarter
and first six months of fiscal year 2016, which ended December 31,
2015.
Revenue in the second quarter of fiscal 2016 was $10.0 million,
a 15% increase as compared to revenue of $8.7 million in the same
prior year quarter. The Company reported operating income of $0.7
million in the second quarter of 2016, consistent with operating
income of $0.7 million in the second quarter of fiscal 2015.
Sharps recorded net income of $0.6 million, or $0.04 per basic and
diluted share in the second quarter of fiscal 2016, compared with
net income of $0.7 million or $0.05 per basic and diluted share, in
the second quarter of fiscal 2015.
Customer billings grew 21% to $10.5 million for the quarter
ended December 31, 2015 compared to the prior year period. Customer
billings and revenue for the quarter ended December 31, 2015 were
at record levels for the Company, excluding customer billings
recorded in fiscal year 2010 which included Centers for Disease
Control and Prevention (“CDC”) contract related billings. The
Company reported significant growth in the Pharmaceutical market
and solid growth in the Home Health Care, Professional, Government
and Assisted Living markets. Customer billings in the Retail market
were down as a result of a delay in the peak of flu season, which
the Company believes adversely impacted revenue by approximately
$2.0 million based on its internal budgets. (See Reconciliation of
Customer Billings to Revenue in the supplemental table included at
the end of this release).
Comprehensive Provider of Waste Services
During the second quarter, Sharps expanded its route-based
pick-up service with its acquisition of Bio-Team Mobile, a leading
waste management provider serving Pennsylvania and Maryland.
The expansion complements the Company’s existing Northeast pick-up
service operations as well as the Company’s mail-back offerings.
Sharps is seeing continued success from these new offerings in many
of its markets served.
David P. Tusa, President and Chief Executive Officer of Sharps,
commented, “We achieved record revenue in the December 2015
quarter, driven by very strong growth in our Pharmaceutical
Manufacturer, Home Health Care and Professional markets. Our
record revenue growth was notable, particularly given slower than
expected Retail market billings resulting from a delay in the peak
of flu shot activity. Our internal budgets reflected approximately
$2.0 million in additional customer billings related to the flu
shot season, but as many of you have seen in news reports, the peak
flu season did not occur in December as it has historically, due to
milder temperatures across the country. Many reports predict the
peak of the flu season could occur in February 2016.”
In November of 2015, the Company announced that it had been
awarded a Blanket Purchase Agreement (“BPA”) for the supply of its
TakeAway Medication Recovery System™ envelopes to U.S. Department
of Veterans Affairs ("VA") healthcare facilities nationwide as part
of the VA's Consolidated Mail Outpatient Program. The awarded BPA
allows, but does not obligate, the VA to purchase up to $7.0
million, per year, of TakeAway envelopes over a five year agreement
period. The BPA is structured as a base year, plus four option
years, agreement. There is no guarantee of volume and the BPA may
be cancelled by either party upon a 30-day written advance notice
to the other party.
The VA operates the nation's largest integrated healthcare
system and this national program makes the TakeAway envelopes
available to any of the 24 million Veterans who might require this
service. The TakeAway envelopes meet all of the requirements of the
DEA's October 2014 Secure and Responsible Drug Disposal Act for the
proper and cost effective collection, transportation and treatment
of consumer dispensed unused medication including controlled
substances.
Mr. Tusa added, “Although we did not see significant Government
orders in the December 2015 quarter, we do believe we could see an
increase in the Government sector billings as early as the March
2016 quarter as a direct result of the VA BPA. Additionally, we
made very good progress on our new Northeast treatment facility and
distribution warehouse and we believe we are on track to be
operational by as early as the summer of 2016.”
Focused sales and marketing initiatives continue to
drive revenue
Pharmaceutical Manufacturer billings increased 93% to $2.5
million in the second quarter of fiscal 2016 compared to $1.3
million in the second quarter of fiscal 2015. On a trailing
twelve month basis, billings in the Pharmaceutical Manufacturer
segment grew 36% to $5.9 million. During the second quarter,
the Company filled orders for new inventory builds for four patient
support programs. Sharps expects to launch two additional
patient support programs for new drug therapies over the next three
to four quarters.
Professional market billings grew 9% to $1.9 million in the
second quarter of fiscal 2016 as the Company continued its focus on
educating the small quantity generator sector, which consists
largely of physicians, dentists, veterinarians and other healthcare
professionals, on the favorable economics and convenience of the
Sharps Recovery System™. The Company’s inside and online
sales channel, which focuses primarily on the Professional market,
realized a 12% increase in billings to $1.6 million in the fiscal
2016 second quarter from $1.4 million in the same prior year
period.
Retail market billings decreased 1% to $3.0 million compared
with $3.1 million in the prior year period reflecting a $0.7
million decrease in flu shot related orders, partially offset by a
$0.6 million increase in sales of TakeAway Medication Recovery
System envelopes which were launched by certain retail pharmacies
during the quarter. For the trailing twelve month period, Retail
market billings increased 9% to $8.5 million reflecting a $1.2
million increase due to sales of TakeAway Medication Recovery
System envelopes, partially offset by lower flu shot related orders
in the trailing twelve months. Despite the delay in the peak
flu season, Sharps expects the retail market to continue to drive
long-term growth for the Company as consumers increasingly use
alternative sites, such as retail pharmacies, to obtain flu and
other immunizations.
Government billings grew by 61% to $0.2 million compared to
$0.15 million in the second quarter of 2015, primarily related to
sales of the Company’s MedSafe® solutions to multiple Government
agencies.
Home Health Care market billings grew 19% to $2.1 million for
the second quarter of fiscal 2016 as compared to $1.8 million in
the second quarter of fiscal 2015 due to the timing of distributor
orders. Second quarter Assisted Living billings grew 14% to
$0.5 million.
Mr. Tusa continued, “Many of our markets are beginning to see
the positive impact from offering both the mailback and route
based-pick up service to our small and medium quantity generators.
Our inside sales team members are well trained and qualified to
offer the service that best meets the needs of the customer.”
Operating performance
Gross margin was 33.2% in the second quarter of fiscal 2016
compared to gross margin of 37.1% in the second quarter of fiscal
2015. Gross margin in the quarter was adversely impacted by
about $0.6 million in revenue from a legacy Pharmaceutical
Manufacturer patient support program with little or no upfront
margin (split revenue model) and by operating costs related to the
Company’s existing treatment facility, the majority of which are
not expected to reoccur for fifteen to thirty-six months. The
normalized and expected gross margin for the quarter was 39%.
Selling, general and administrative (SG&A) expense increased
7% to $2.6 million in the second quarter of 2016 but declined as a
percentage of sales to 26% as compared to 28% of sales in the
second quarter of fiscal 2015. SG&A for the second quarter of
fiscal 2016 includes $0.1 million of acquisition related costs
associated with the Company’s acquisition of Bio-Team Mobile in
December 2015. Without these acquisition related costs, SG&A
increased 4% compared to the second quarter of fiscal 2015.
The Company reported operating income of $0.7 million in the
second quarter of fiscal 2016, consistent with operating income of
$0.7 million in the second quarter of fiscal 2015.
Sharps achieved EBITDA of $0.9 million in the second quarter of
fiscal 2016, as compared to EBITDA of $1.0 million in the second
quarter of fiscal 2015.
First Half Fiscal 2016 Review
Sharps recorded revenue of $17.9 million in the first six months
of fiscal 2016, an increase of 14% compared to revenue of $15.7
million in the first six months of fiscal 2015. Customer
billings increased 15% to $18.5 million in the first half of fiscal
2016. Pharmaceutical Manufacturer billings increased 40% to
$3.8 million in the first half of fiscal 2016 as compared to $2.7
million in the first half of 2015. Home Health Care billings
increased 15% to $4.0 million in the first six months of fiscal
2016 as compared to $3.5 million in the same prior year period.
Government billings increased 149% to $0.7 million in the first six
months of fiscal 2016 as compared to $0.3 million in the same prior
year period. Professional billings increased 13% to $3.6 million in
the first six months of fiscal 2016 as compared to $3.2 million in
the same prior year period. Assisted Living billings increased 15%
to $1.0 million in the first six months of fiscal 2016 as compared
to $0.9 million in the same prior year period. In the first
six months of fiscal 2016, Retail billings declined 5% to $4.8
million as compared to $5.1 million in the first six months of
fiscal 2015, primarily due to the timing of flu shot related
business. Despite the delay in the peak flu season, sales to
this market are trending upward as demonstrated by a 9% increase in
trailing twelve months sales when compared with the prior year's
trailing twelve month period. While this market traditionally
experiences volatility on a quarter-by-quarter basis, due to
variability in demand for flu shot solutions, the growing trend of
retail pharmacies expanding the healthcare services they provide
helps drive growth for the
Company.
Fiscal 2016 year-to-date gross margin was 34.7% as compared to
gross margin of 35.3% in the first six months of fiscal
2015. SG&A expense increased 9% to $5.2 million in the
first half of fiscal 2016. SG&A for the first half of fiscal
2016 includes $0.2 million of acquisition related costs associated
with the Company’s acquisition of Alpha Bio/Med in July 2015 and
Bio-Team Mobile in December 2015. Without these acquisition related
costs, SG&A increased 6% compared to the first half of fiscal
2015 as a result of the Company's ongoing investment in sales and
marketing initiatives. The Company recorded operating income
of $0.9 million in the first half of fiscal 2016 as compared to
operating income of $0.7 million in the first half of fiscal
2015.
Sharps achieved EBITDA of $1.3 million in the first six months
of fiscal 2016 as compared to EBITDA of $1.1 million in the first
six months of fiscal 2015. Net income in the first half of
fiscal 2016 was $0.8 million or $0.05 per basic and diluted share,
compared to a net income of $0.7 million or $0.04 per basic and
diluted share in the first six months of fiscal
2015.
Financial flexibility and a strong balance
sheet
Cash and cash equivalents were $14.5 million at
December 31, 2015 compared to $15.2 million at June 30, 2015.
In January 2013, the Company’s Board of Directors authorized a
stock repurchase program for up to $3.0 million over a two-year
period. The program has been extended through January
2017. Since the inception of the program and through December
31, 2015, the Company repurchased 259,272 shares under the program
at a cost of $1.3 million, leaving a remaining amount of $1.7
million for potential purchases under the program. For the quarter
and fiscal year to date ended December 31, 2015, the Company
repurchased 68,022 shares at a cost of $0.5 million.
Outlook
Mr. Tusa concluded, “We continue to focus on the four major
components of our growth strategy, which include driving strong
organic growth in all of our key markets, introducing new and
value-added products and services, capitalizing on large
Government-related opportunities and closing acquisitions that
complement our existing service offerings and enable us to focus on
core, recurring revenue, from the small to medium quantity
generator market.”
Second quarter fiscal year 2016 webcast and conference
call
The Company will host a teleconference today beginning at 11:00
a.m. Eastern Time, during which management will review the
financial and operating results for the period and discuss Sharps’
corporate strategy and outlook. A question-and-answer session
will follow.
The Sharps conference call can be accessed by domestic callers
by dialing (877) 407-0782. International callers may access
the call by dialing (201) 689-8567. The webcast can be
monitored at www.sharpsinc.com. Webcast listeners will have
the opportunity to submit questions to the speakers. Select
questions will be summarized and addressed during the
question-and-answer portion of the call.
A telephonic replay will be available through February 27,
2016. To listen to the replay, domestic callers should dial
(877) 660-6853 and international callers should dial (201) 612-7415
and enter conference ID number 13628309. A transcript will
also be posted to the Sharps website, once
available.
About Sharps Compliance Corp.
Headquartered in Houston, Texas, Sharps Compliance is a leading
full-service national provider of comprehensive waste management
services including medical, pharmaceutical and hazardous. Its key
markets include pharmaceutical manufacturers, home healthcare
providers, assisted living / long-term care, retail pharmacies and
clinics, 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 also offers its route-based pick-up service in
Pennsylvania, Maryland, Ohio, Texas, Louisiana and Virginia.
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 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.
FINANCIAL TABLES FOLLOW
Sharps Compliance Corp. and
Subsidiaries |
Condensed Consolidated Income
Statements |
(in thousands, except per share
data) |
(Unaudited) |
|
|
Three-Months Ended |
|
Six-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
% Change |
|
2015 |
|
|
|
2014 |
|
% Change |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
9,992 |
|
$ |
8,693 |
|
|
14.9 |
% |
$ |
17,861 |
|
|
$ |
15,740 |
|
|
13.5 |
% |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
6,673 |
|
|
|
5,465 |
|
|
22.1 |
% |
|
11,663 |
|
|
|
10,178 |
|
|
14.6 |
% |
Gross profit |
|
3,319 |
|
|
|
3,228 |
|
|
2.8 |
% |
|
6,198 |
|
|
|
5,562 |
|
|
11.4 |
% |
Gross margin |
|
33.2 |
% |
|
|
37.1 |
% |
|
|
34.7 |
% |
|
|
35.3 |
% |
|
SG&A expense |
|
2,585 |
|
|
|
2,415 |
|
|
7.0 |
% |
|
5,181 |
|
|
|
4,738 |
|
|
9.3 |
% |
Depreciation and amortization |
|
70 |
|
|
|
69 |
|
|
1.4 |
% |
|
122 |
|
|
|
154 |
|
|
(20.8 |
%) |
|
|
|
|
|
|
|
|
|
Operating
income |
|
664 |
|
|
|
744 |
|
|
|
895 |
|
|
|
670 |
|
|
Operating margin |
|
6.6 |
% |
|
|
8.6 |
% |
|
|
5.0 |
% |
|
|
4.3 |
% |
|
Interest income |
|
9 |
|
|
|
10 |
|
|
|
18 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
673 |
|
|
|
754 |
|
|
|
913 |
|
|
|
688 |
|
|
Income tax expense |
|
58 |
|
|
|
5 |
|
|
|
78 |
|
|
|
13 |
|
|
Net
income |
$ |
615 |
|
|
$ |
749 |
|
|
$ |
835 |
|
|
$ |
675 |
|
|
|
|
|
|
|
|
|
|
|
Net income per
share |
|
|
|
|
|
|
|
|
Basic |
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
Diluted |
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
15,467 |
|
|
|
15,281 |
|
|
|
15,443 |
|
|
|
15,285 |
|
|
Diluted |
|
16,062 |
|
|
|
15,423 |
|
|
|
15,994 |
|
|
|
15,428 |
|
|
Sharps Compliance Corp. and Subsidiaries |
Condensed Consolidated Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
December 31, 2015 |
|
June 30, 2015 |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
14,459 |
|
|
$ |
15,157 |
|
Accounts receivable, net |
|
6,306 |
|
|
|
6,647 |
|
Inventory |
|
3,787 |
|
|
|
2,738 |
|
Prepaid and other current
assets |
|
612 |
|
|
|
733 |
|
Total current assets |
|
25,164 |
|
|
|
25,275 |
|
Property, plant and
equipment, net |
|
4,266 |
|
|
|
3,810 |
|
Goodwill |
|
1,039 |
|
|
|
- |
|
Intangible assets,
net |
|
1,204 |
|
|
|
666 |
|
Total assets |
$ |
31,673 |
|
|
$ |
29,751 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,723 |
|
|
$ |
1,770 |
|
Accrued liabilities |
|
2,407 |
|
|
|
1,917 |
|
Deferred revenue |
|
2,264 |
|
|
|
1,877 |
|
Total current liabilities |
|
6,394 |
|
|
|
5,564 |
|
Long-term deferred
revenue |
|
511 |
|
|
|
483 |
|
Other long-term
liabilities |
|
216 |
|
|
|
118 |
|
Total liabilities |
|
7,121 |
|
|
|
6,165 |
|
Stockholders’ equity: |
|
|
|
Total stockholders' equity |
|
24,552 |
|
|
|
23,586 |
|
Total liabilities and stockholders'
equity |
$ |
31,673 |
|
|
$ |
29,751 |
|
|
|
|
|
Sharps
Compliance Corp. and Subsidiaries |
Supplemental Customer Billing and Revenue
Information |
(in
thousands) |
(unaudited) |
|
|
|
Three-Months Ended December
31, |
|
|
|
|
|
2015 |
|
|
% Total |
|
|
2014 |
|
|
$ Change |
|
% |
|
BILLINGS BY
MARKET: |
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
3,037 |
|
|
|
28.8 |
% |
|
$ |
3,065 |
|
|
$ |
(28 |
) |
|
|
(0.9 |
%) |
|
Home Health Care |
|
|
2,091 |
|
|
|
19.9 |
% |
|
|
1,752 |
|
|
|
339 |
|
|
|
19.3 |
% |
|
Professional |
|
|
1,861 |
|
|
|
17.7 |
% |
|
|
1,707 |
|
|
|
154 |
|
|
|
9.0 |
% |
|
Pharmaceutical Manufacturer |
|
|
2,515 |
|
|
|
23.9 |
% |
|
|
1,303 |
|
|
|
1,212 |
|
|
|
93.0 |
% |
|
Assisted Living |
|
|
518 |
|
|
|
4.9 |
% |
|
|
455 |
|
|
|
63 |
|
|
|
13.8 |
% |
|
Government |
|
|
242 |
|
|
|
2.3 |
% |
|
|
150 |
|
|
|
92 |
|
|
|
61.3 |
% |
|
Environmental |
|
|
75 |
|
|
|
0.7 |
% |
|
|
46 |
|
|
|
29 |
|
|
|
63.0 |
% |
|
Other |
|
|
188 |
|
|
|
1.8 |
% |
|
|
195 |
|
|
|
(7 |
) |
|
|
(3.6 |
%) |
|
Subtotal |
|
$ |
10,527 |
|
|
|
100.0 |
% |
|
$ |
8,673 |
|
|
$ |
1,854 |
|
|
|
21.4 |
% |
|
GAAP Adjustment * |
|
|
(535 |
) |
|
|
|
|
20 |
|
|
|
(555 |
) |
|
|
|
Revenue Reported |
|
$ |
9,992 |
|
|
|
|
$ |
8,693 |
|
|
$ |
1,299 |
|
|
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-Months Ended December 31, |
|
|
|
|
|
2015 |
|
|
% Total |
|
|
2014 |
|
|
$ Change |
|
% |
|
BILLINGS BY
MARKET: |
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
4,786 |
|
|
|
25.9 |
% |
|
$ |
5,060 |
|
|
$ |
(274 |
) |
|
|
(5.4 |
%) |
|
Home Health Care |
|
|
4,042 |
|
|
|
21.8 |
% |
|
|
3,505 |
|
|
|
537 |
|
|
|
15.3 |
% |
|
Professional |
|
|
3,572 |
|
|
|
19.3 |
% |
|
|
3,158 |
|
|
|
414 |
|
|
|
13.1 |
% |
|
Pharmaceutical Manufacturer |
|
|
3,754 |
|
|
|
20.3 |
% |
|
|
2,688 |
|
|
|
1,066 |
|
|
|
|
39.7 |
% |
|
|
Assisted Living |
|
|
1,044 |
|
|
|
5.6 |
% |
|
|
905 |
|
|
|
139 |
|
|
|
15.4 |
% |
|
Government |
|
|
706 |
|
|
|
3.8 |
% |
|
|
284 |
|
|
|
422 |
|
|
|
148.6 |
% |
|
Environmental |
|
|
154 |
|
|
|
0.9 |
% |
|
|
140 |
|
|
|
14 |
|
|
|
10.0 |
% |
|
Other |
|
|
450 |
|
|
|
2.4 |
% |
|
|
428 |
|
|
|
22 |
|
|
|
5.1 |
% |
|
Subtotal |
|
$ |
18,508 |
|
|
|
100.0 |
% |
|
$ |
16,168 |
|
|
$ |
2,340 |
|
|
|
14.5 |
% |
|
GAAP Adjustment * |
|
|
(647 |
) |
|
|
|
|
(428 |
) |
|
|
(219 |
) |
|
|
|
Revenue Reported |
|
$ |
17,861 |
|
|
|
|
$ |
15,740 |
|
|
$ |
2,121 |
|
|
|
13.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents
the net impact of the revenue recognition adjustments to arrive at
reported GAAP revenue. Customer billings include all invoiced
amounts for products shipped during the period reported. GAAP
revenue includes customer billings as well as numerous adjustments
necessary to reflect, (i) the deferral of a portion of current
period sales and (ii) recognition of certain revenue associated
with product returned for treatment and destruction. The difference
between customer billings and GAAP revenue is reflected in the
Company’s balance sheet as deferred revenue. |
|
Sharps Compliance Corp. and
Subsidiaries |
Supplemental Customer Billing by Channel
Information |
(in thousands) |
(unaudited) |
|
|
|
Three-Months Ended December
31, |
|
|
|
2015 |
|
|
%
Total |
|
2014 |
|
|
$ Change |
|
% Change |
|
BILLINGS BY
CHANNEL: |
|
|
|
|
|
|
|
|
|
|
|
Direct Sales |
|
$ |
5,977 |
|
|
|
56.8 |
% |
|
$ |
4,218 |
|
|
$ |
1,759 |
|
|
|
41.7 |
% |
|
Distributors |
|
|
2,988 |
|
|
|
28.4 |
% |
|
|
3,056 |
|
|
|
(68 |
) |
|
|
(2.2 |
%) |
|
Inside and Online Sales |
|
|
1,562 |
|
|
|
14.8 |
% |
|
|
1,399 |
|
|
|
163 |
|
|
|
11.7 |
% |
|
Total Billings By Channel |
|
$ |
10,527 |
|
|
|
100.0 |
% |
|
$ |
8,673 |
|
|
$ |
1,854 |
|
|
|
21.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-Months Ended December 31, |
|
|
|
2015 |
|
|
% Total |
|
2014 |
|
|
$ Change |
|
% Change |
|
BILLINGS BY
CHANNEL: |
|
|
|
|
|
|
|
|
|
|
|
Direct Sales |
|
$ |
10,066 |
|
|
|
54.4 |
% |
|
$ |
7,830 |
|
|
$ |
2,236 |
|
|
|
28.6 |
% |
|
Distributors |
|
|
5,473 |
|
|
|
29.6 |
% |
|
|
5,835 |
|
|
|
(362 |
) |
|
|
(6.2 |
%) |
|
Inside and Online Sales |
|
|
2,969 |
|
|
|
16.0 |
% |
|
|
2,503 |
|
|
|
466 |
|
|
|
18.6 |
% |
|
Total Billings By Channel |
|
$ |
18,508 |
|
|
|
100.0 |
% |
|
$ |
16,168 |
|
|
$ |
2,340 |
|
|
|
14.5 |
% |
|
Sharps Compliance Corp. and
Subsidiaries |
Supplemental Table to Reconcile Net Income to
EBITDA |
(in thousands) |
(unaudited) |
|
|
Three-Months Ended |
|
Six-Months Ended |
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
615 |
|
|
$ |
749 |
|
|
$ |
835 |
|
|
$ |
675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
58 |
|
|
|
5 |
|
|
|
78 |
|
|
|
13 |
|
|
|
|
Interest income |
|
(9 |
) |
|
|
(10 |
) |
|
|
(18 |
) |
|
|
(18 |
) |
|
|
|
Depreciation and amortization |
|
|
191 |
|
|
|
218 |
|
|
|
379 |
|
|
|
460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
855 |
|
|
$ |
962 |
|
|
$ |
1,274 |
|
|
$ |
1,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Company defines earnings before interest, taxes, depreciation and
amortization (“EBITDA”) as net income, plus income tax expense,
interest income, and depreciation and amortization. Other
companies may define EBITDA differently. EBITDA is presented
because it is a financial measure that is frequently requested by
third parties. However, EBITDA is not considered under
generally accepted accounting principles as a primary measure of an
entity’s financial results, and accordingly, EBITDA should
not be considered an alternative to operating income, net income,
or cash flows as determined under generally accepted accounting
principles and as reported by the Company. |
|
|
|
|
|
|
|
|
|
|
|
|
Sharps Compliance Corp. and
Subsidiaries |
Supplemental Reconciliation of GAAP to
Non-GAAP Net Income Per Share* |
(in thousands, except per share
data) |
(unaudited) |
|
|
|
Three-Months Ended |
|
Six-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
Net
Income |
|
$ |
615 |
|
|
$ |
749 |
|
|
$ |
835 |
|
|
$ |
675 |
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
74 |
|
|
|
- |
|
|
|
151 |
|
|
|
- |
|
Adjustments |
|
|
74 |
|
|
|
- |
|
|
|
151 |
|
|
|
- |
|
Adjusted Net
Income |
|
$ |
689 |
|
|
$ |
749 |
|
|
$ |
986 |
|
|
$ |
675 |
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net income
per share |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
0.06 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* In
accordance with U.S. generally accepted accounting principles
(GAAP), the Company’s net deferred tax assets have been fully
reserved by a tax valuation allowance and any tax expense (benefit)
has been offset by the utilization of net operating loss
carryforwards or additional deferred tax valuation allowance.
Therefore, the amounts shown in this schedule have not been
adjusted to reflect any tax impact. The Company believes this
information is useful to investors and other interested
parties. Such information would 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. |
|
|
|
|
|
|
|
|
|
For more information 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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