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 third quarter
and first nine months of fiscal year 2016, which ended March 31,
2016.
Revenue in the third quarter of fiscal 2016 was $6.7 million, an
8% increase as compared to revenue of $6.2 million in the same
prior year quarter. The Company reported an operating loss of $1.1
million in the third quarter of 2016, compared to an operating loss
of $0.8 million in the third quarter of fiscal 2015. Sharps
recorded a net loss of $1.0 million, or ($0.07) per basic and
diluted share in the third quarter of fiscal 2016, compared with a
net loss of $0.8 million or ($0.05) per basic and diluted share, in
the third quarter of fiscal 2015.
Customer billings grew 13% to $6.6 million for the quarter ended
March 31, 2016 compared to the prior year period. The Company
reported significant growth in the Pharmaceutical market as well as
growth in the Professional, Retail and Assisted Living markets.
Government market billings of $0.4 million for the quarter included
$0.1 million of orders under the VA’s Blanket Purchase Agreement
and $0.2 million of revenue from the MedSafe program. (See
Reconciliation of Customer Billings to Revenue in the supplemental
table included at the end of this release).
David P. Tusa, President and Chief Executive Officer of Sharps,
stated, “Although the March quarter is historically the weakest
quarter of the fiscal year, we were disappointed in the overall
results which were below our internal expectations. Despite the
delay in the flu business that we experienced in the December 2015
quarter, we did not see any significant Retail market orders in the
March 2016 quarter. Additionally, the level of TakeAway
Envelope orders from the VA related to our Blanket Purchase order
was only about $100,000 in the March 2016 quarter, as the launch of
this program has been slow. On the positive side, we did see
revenue growth in the Pharmaceutical Manufacturer, Professional,
Retail and Assisted Living markets and we are encouraged by the flu
season related orders received for the June 2016 quarter.
“We have several strategic initiatives underway to get revenue
back on track. First, we are refocusing our efforts around our
inside sales initiative which impacts the Professional and Assisted
Living markets. We grew these two markets 28% and 23%,
respectively, in the March 2016 quarter and believe with more
focus, promotional activities, additional solution offerings and
cross-selling initiatives, we have the opportunity to grow at a
much higher rate. Second, we need more critical mass to help lessen
the impact of unexpected revenue shortfalls such as the $2 million
reduction in flu related business that we experienced with the weak
2015 flu season. To that end, we plan to continue our acquisition
program which is focused primarily on the route-based business. We
started with about 600 route-based customers with our first
acquisition in July of 2015 and now we directly serve almost 2,100
customers via our Northeast and South operations. We also have
contracts representing another 68 customers that we will begin to
service over the next thirty to sixty days. Third, we need to
increase the development of new products and solutions in our
pipeline with the goal of helping our impressive customer base
solve problems in a cost-effective manner while also generating
more revenue for our Company. The launch of MedSafe has been
successful with incremental revenue of about $1.0 million generated
since the new program began. We are optimistic that our new
TakeAway Recycle System could generate additional revenue with
surgery and outpatient facilities as well as hospitals as the
industry is looking for alternatives to the traditional
reprocessing of single-use medical devices. Finally, we are
encouraged with the levels of flu-related orders for the June 2016
quarter. We are optimistic that our Retail market billings will
recover in the calendar year 2016 as this has always been a
significant growth market for us.”
Comprehensive Provider of Waste Service
Solutions
To date in fiscal 2016, Sharps has moved forward on several
initiatives to broaden the scope of its service offerings and
expansion of its geographic footprint. This effort includes the
acquisition of two route-based pick up services and the
establishment of a planned treatment facility in the Northeast to
complement our existing operations in that region, as well as the
launch of a route-based pick-up service covering markets in Texas
and Louisiana. Sharps is seeing continued success from these
new offerings in many of its markets served and expects its new
Northeast treatment facility and distribution warehouse to be
operational by as early as July or August of 2016. With the
addition of the new facility, the Company should see not only an
increase in infrastructure footprint, but also reduced cost and
incremental revenue from the processing of third party waste.
Most recently, following the close of the third quarter, Sharps
announced a new solution offering, its TakeAway Recycle System
(“the System”) designed for the safe collection, return
transportation and recycling of single use medical devices
(“SUDs”). Sharps developed the system in response to demand from
healthcare facilities seeking alternatives to the traditional
practice of reprocessing SUDs, which has been shown to potentially
increase the risk of patient infection and malfunctioning
devices. The TakeAway Recycle System is compliant with DOT,
OSHA and Joint Commission and enables SUDs that were previously
destined for reprocessing, the landfill, or the medical waste bin
to be shipped via common carrier to Sharps’ permitted facility for
recycling back to its basic component.
Mr. Tusa continued, “As with all of our solutions, the TakeAway
Recycle System is designed to solve a problem for the customer or
improve operational efficiencies in a cost-effective manner.
We believe our TakeAway Recycle System provides a cost-efficient
and environmentally friendly alternative to traditional SUD
reprocessing while eliminating the risk of infection to the patient
and potential liability to the healthcare facility. This new
offering expands our portfolio of solutions for markets including
surgery centers, outpatient surgery facilities and hospitals, and
provides an excellent cross-selling opportunity for our route-based
medical waste management services and other solution
offerings. We are continuously exploring opportunities to
bring new or improved solutions to our customer base.”
Focused sales and marketing initiatives continue to
drive revenue
Pharmaceutical Manufacturer billings increased 36% to $1.0
million in the third quarter of fiscal 2016 compared to $0.8
million in the third quarter of fiscal 2015. On a trailing
twelve month basis, billings in the Pharmaceutical Manufacturer
segment grew 35% to $6.2 million. During the third quarter,
the Company filled an order for a new inventory build for one
patient support program. Sharps expects to launch two
additional patient support programs for new drug therapies over the
next two to four quarters.
Professional market billings grew 28% to $2.0 million in the
third 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™ and the Company’s route-based services.
The Company’s inside and online sales channel, which
primarily addresses the Professional market, realized a 25%
increase in billings to $1.5 million in the fiscal 2016 third
quarter from $1.2 million in the same prior year
period.
Retail market billings increased 19% to $0.7 million compared
with $0.6 million in the prior year period reflecting an increase
in flu shot related orders. For the trailing twelve month
period, Retail market billings increased 12% to $8.6 million
reflecting a $1.1 million increase due to sales of TakeAway
Medication Recovery System envelopes, partially offset by lower flu
shot related orders in the trailing twelve months.
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 decreased by 38% to $0.4 million compared to
$0.7 million in the third quarter of 2015. Government market
billings included $0.1 million of orders under the VA’s Blanket
Purchase Agreement compared with VA orders of $0.5 million in the
third quarter of fiscal 2015.
Assisted Living market billings grew 23% to $0.6 million for the
third quarter of fiscal 2016 as compared to $0.5 million in the
third quarter of fiscal 2015. Third quarter 2016 Home Health
Care billings were flat at $1.6 million compared to the third
quarter of fiscal 2015.
Operating performance
Gross margin was 26% in the third quarter of fiscal 2016
compared to gross margin of 27% in the third quarter of fiscal
2015.
Selling, general and administrative (SG&A) expense increased
12% to $2.7 million in the third quarter of 2016. SG&A
for the third quarter of fiscal 2016 includes $0.1 million of
additional cost related to our required audit of internal controls
for the fiscal year 2016 which was not required in fiscal year
2015.
The Company reported an operating loss of $1.1 million in the
third quarter of fiscal 2016, compared to an operating loss of $0.8
million in the third quarter of fiscal 2015.
Fiscal 2016 First Nine Months Review
Sharps recorded revenue of $24.5 million in the first nine
months of fiscal 2016, an increase of 12% compared to revenue of
$21.9 million in the first nine months of fiscal
2015. Customer billings increased 14% to $25.1 million in the
first nine months of fiscal 2016. Pharmaceutical Manufacturer
billings increased 39% to $4.8 million in the first nine months of
fiscal 2016 as compared to $3.4 million in the same period of
2015. Professional billings increased 18% to $5.6 million in
the first nine months of fiscal 2016 as compared to $4.7 million in
the same prior year period. Home Health Care billings increased 10%
to $5.6 million in the first nine months of fiscal 2016 as compared
to $5.1 million in the same previous year period. Assisted
Living billings increased 18% to $1.6 million in the first nine
months of fiscal 2016 as compared to $1.4 million in the same prior
year period. Government billings increased 18% to $1.1 million
in the first nine months of fiscal 2016 as compared to $1.0 million
in the same prior year period. In the first nine months of fiscal
2016, Retail billings declined 3% to $5.5 million as compared to
$5.7 million in the first nine months of fiscal 2015, primarily due
to a mild 2015 flu season. Despite the flu season being mild,
sales to this market are trending upward as demonstrated by a 12%
increase in trailing twelve months sales when compared with the
prior year's trailing twelve month period. The Retail market
traditionally experiences fluctuations on a quarter-by-quarter
basis, due to variability in demand for flu shot solutions,
however, there is a growing trend for retail pharmacies to expand
the healthcare services they provide, which helps drive growth for
the Company.
Fiscal 2016 year-to-date gross margin was 32% as compared to
gross margin of 33% in the first nine months of fiscal
2015. SG&A expense increased 10% to $7.9 million in the
first nine months of fiscal 2016. SG&A for the first nine
months 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 8% compared to the
first nine months of fiscal 2015 as a result of the Company's
ongoing investment in sales and marketing initiatives. The
Company recorded an operating loss of $0.2 million in the first
nine months of fiscal 2016 as compared to an operating loss of $0.1
million in the first nine months of fiscal 2015.
Sharps achieved EBITDA of $0.4 million in the first nine months
of fiscal 2016 as compared to EBITDA of $0.5 million in the first
nine months of fiscal 2015. Net loss in the first nine months
of fiscal 2016 was $0.2 million or ($0.01) per basic and diluted
share, compared to a net loss of $0.1 million or ($0.01) per basic
and diluted share in the first nine months of fiscal 2015.
Financial flexibility and a strong balance
sheet
Cash and cash equivalents were $13.4 million at
March 31, 2016 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 March
31, 2016, the Company repurchased 295,615 shares under the program
at a cost of $1.6 million, leaving a remaining amount of $1.4
million for potential purchases under the program. For the quarter
ended March 31, 2016, the Company repurchased 36,343 shares at a
cost of $0.2 million. For the fiscal year to date ended March 31,
2016, the Company repurchased 104,365 shares at a cost of $0.7
million.
Outlook
Mr. Tusa concluded, “We have a great team of committed and
dedicated employees and a unique opportunity to capture more of the
medical, pharmaceutical and hazardous management market in the
country. We are very excited about the launch of the new TakeAway
Recycle System and the planned continuation of our acquisition
initiative focused on route-based businesses. Finally, we are
encouraged by the level of flu-business related orders for the June
2016 quarter.”
Third 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 May 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 13635061. 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 Statements of
Operations |
(in thousands, except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
Nine-Months Ended |
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
% Change |
|
2016 |
|
|
|
2015 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
6,652 |
|
|
$ |
6,171 |
|
|
7.8 |
% |
$ |
24,513 |
|
|
$ |
21,911 |
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
4,959 |
|
|
|
4,511 |
|
|
9.9 |
% |
|
16,622 |
|
|
|
14,689 |
|
|
13.2 |
% |
|
Gross profit |
|
|
1,693 |
|
|
|
1,660 |
|
|
2.0 |
% |
|
7,891 |
|
|
|
7,222 |
|
|
9.3 |
% |
|
Gross margin |
|
|
25.5 |
% |
|
|
26.9 |
% |
|
|
32.2 |
% |
|
|
33.0 |
% |
|
|
SG&A expense |
|
|
2,709 |
|
|
|
2,411 |
|
|
12.4 |
% |
|
7,890 |
|
|
|
7,149 |
|
|
10.4 |
% |
|
Depreciation and amortization |
|
|
88 |
|
|
|
57 |
|
|
54.4 |
% |
|
210 |
|
|
|
211 |
|
|
(0.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
(1,104 |
) |
|
|
(808 |
) |
|
|
(209 |
) |
|
|
(138 |
) |
|
|
Operating margin |
|
|
(16.6 |
%) |
|
|
(13.1 |
%) |
|
|
(0.9 |
%) |
|
|
(0.6 |
%) |
|
|
Interest income |
|
|
8 |
|
|
|
9 |
|
|
|
26 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes |
|
|
(1,096 |
) |
|
|
(799 |
) |
|
|
(183 |
) |
|
|
(111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense |
|
|
(54 |
) |
|
|
13 |
|
|
|
24 |
|
|
|
26 |
|
|
|
Net
loss |
|
$ |
(1,042 |
) |
|
$ |
(812 |
) |
|
$ |
(207 |
) |
|
$ |
(137 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
Diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
15,462 |
|
|
|
15,360 |
|
|
|
15,449 |
|
|
|
15,309 |
|
|
|
Diluted |
|
|
15,462 |
|
|
|
15,360 |
|
|
|
15,449 |
|
|
|
15,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sharps Compliance Corp. and Subsidiaries |
Condensed Consolidated Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
|
March 31,2016 |
|
June 30,2015 |
ASSETS: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
13,446 |
|
|
$ |
15,157 |
|
Accounts receivable, net |
|
3,976 |
|
|
|
6,647 |
|
Inventory |
|
4,137 |
|
|
|
2,738 |
|
Prepaid and other current
assets |
|
812 |
|
|
|
733 |
|
Total current assets |
|
22,371 |
|
|
|
25,275 |
|
Property, plant and
equipment, net |
|
4,532 |
|
|
|
3,810 |
|
Goodwill |
|
1,039 |
|
|
|
- |
|
Intangible assets,
net |
|
1,164 |
|
|
|
666 |
|
Total assets |
$ |
29,106 |
|
|
$ |
29,751 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,508 |
|
|
$ |
1,770 |
|
Accrued liabilities |
|
1,238 |
|
|
|
1,917 |
|
Deferred revenue |
|
2,173 |
|
|
|
1,877 |
|
Total current liabilities |
|
4,919 |
|
|
|
5,564 |
|
Long-term deferred
revenue |
|
495 |
|
|
|
483 |
|
Other long-term
liabilities |
|
235 |
|
|
|
118 |
|
Total liabilities |
|
5,649 |
|
|
|
6,165 |
|
Stockholders’ equity: |
|
|
|
Total stockholders' equity |
|
23,457 |
|
|
|
23,586 |
|
Total liabilities and stockholders'
equity |
$ |
29,106 |
|
|
$ |
29,751 |
|
|
|
|
|
Sharps Compliance Corp. and
Subsidiaries |
Supplemental Customer Billing and Revenue
Information |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
Three-Months Ended March
31, |
|
|
|
|
2016 |
|
|
% Total |
|
|
2015 |
|
|
$ Change |
|
% |
BILLINGS BY
MARKET: |
|
|
|
|
|
|
|
|
|
|
Home Health Care |
|
$ |
1,595 |
|
|
|
24.1 |
% |
|
$ |
1,599 |
|
|
$ |
(4 |
) |
|
|
(0.3 |
%) |
Professional |
|
|
2,001 |
|
|
|
30.2 |
% |
|
|
1,568 |
|
|
|
433 |
|
|
|
27.6 |
% |
Retail |
|
|
726 |
|
|
|
11.0 |
% |
|
|
610 |
|
|
|
116 |
|
|
|
19.0 |
% |
Pharmaceutical Manufacturer |
|
|
1,023 |
|
|
|
15.5 |
% |
|
|
754 |
|
|
|
269 |
|
|
|
35.7 |
% |
Assisted Living |
|
|
579 |
|
|
|
8.7 |
% |
|
|
472 |
|
|
|
107 |
|
|
|
22.7 |
% |
Government |
|
|
423 |
|
|
|
6.4 |
% |
|
|
677 |
|
|
|
(254 |
) |
|
|
(37.5 |
%) |
Environmental |
|
|
70 |
|
|
|
1.1 |
% |
|
|
18 |
|
|
|
52 |
|
|
|
288.9 |
% |
Other |
|
|
201 |
|
|
|
3.0 |
% |
|
|
187 |
|
|
|
14 |
|
|
|
7.5 |
% |
Subtotal |
|
$ |
6,618 |
|
|
|
100.0 |
% |
|
$ |
5,885 |
|
|
$ |
733 |
|
|
|
12.5 |
% |
GAAP Adjustment * |
|
|
34 |
|
|
|
|
|
286 |
|
|
|
(252 |
) |
|
|
Revenue Reported |
|
$ |
6,652 |
|
|
|
|
$ |
6,171 |
|
|
$ |
481 |
|
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-Months Ended March 31, |
|
|
|
|
2016 |
|
|
% Total |
|
|
2015 |
|
|
$ Change |
|
% |
BILLINGS BY
MARKET: |
|
|
|
|
|
|
|
|
|
|
Home Health Care |
|
$ |
5,637 |
|
|
|
22.4 |
% |
|
$ |
5,104 |
|
|
$ |
533 |
|
|
|
10.4 |
% |
Professional |
|
|
5,573 |
|
|
|
22.2 |
% |
|
|
4,726 |
|
|
|
847 |
|
|
|
17.9 |
% |
Retail |
|
|
5,512 |
|
|
|
21.9 |
% |
|
|
5,670 |
|
|
|
(158 |
) |
|
|
(2.8 |
%) |
Pharmaceutical Manufacturer |
|
|
4,777 |
|
|
|
19.0 |
% |
|
|
3,442 |
|
|
|
1,335 |
|
|
|
38.8 |
% |
Assisted Living |
|
|
1,623 |
|
|
|
6.5 |
% |
|
|
1,377 |
|
|
|
246 |
|
|
|
17.9 |
% |
Government |
|
|
1,129 |
|
|
|
4.5 |
% |
|
|
961 |
|
|
|
168 |
|
|
|
17.5 |
% |
Environmental |
|
|
224 |
|
|
|
0.9 |
% |
|
|
158 |
|
|
|
66 |
|
|
|
41.8 |
% |
Other |
|
|
651 |
|
|
|
2.6 |
% |
|
|
615 |
|
|
|
36 |
|
|
|
5.9 |
% |
Subtotal |
|
$ |
25,126 |
|
|
|
100.0 |
% |
|
$ |
22,053 |
|
|
$ |
3,073 |
|
|
|
13.9 |
% |
GAAP Adjustment * |
|
|
(613 |
) |
|
|
|
|
(142 |
) |
|
|
(471 |
) |
|
|
Revenue Reported |
|
$ |
24,513 |
|
|
|
|
$ |
21,911 |
|
|
$ |
2,602 |
|
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
* Represents
the net impact of the revenue recognition adjustments to arrive at
reported GAAP revenue. Customerbillings include all invoiced
amounts for products shipped during the period reported. GAAP
revenue includescustomer billings as well as numerous adjustments
necessary to reflect, (i) the deferral of a portion of current
periodsales and (ii) recognition of certain revenue associated with
product returned for treatment and destruction. Thedifference
between customer billings and GAAP revenue is reflected in the
Company’s balance sheet as deferredrevenue. |
Sharps Compliance Corp. and
Subsidiaries |
Supplemental Customer Billing by Channel
Information |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended March
31, |
|
|
|
2016 |
|
|
% Total |
|
|
2015 |
|
|
$ Change |
|
% Change |
BILLINGS BY
CHANNEL: |
|
|
|
|
|
|
|
|
|
|
Direct Sales |
|
$ |
3,336 |
|
|
|
50.4 |
% |
|
$ |
2,805 |
|
|
$ |
531 |
|
|
|
18.9 |
% |
Distributors |
|
|
1,754 |
|
|
|
26.5 |
% |
|
|
1,855 |
|
|
|
(101 |
) |
|
|
(5.4 |
%) |
Inside and Online Sales |
|
|
1,528 |
|
|
|
23.1 |
% |
|
|
1,225 |
|
|
|
303 |
|
|
|
24.7 |
% |
Total Billings By Channel |
|
$ |
6,618 |
|
|
|
100.0 |
% |
|
$ |
5,885 |
|
|
$ |
733 |
|
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-Months Ended March 31, |
|
|
|
2016 |
|
|
% Total |
|
|
2015 |
|
|
$ Change |
|
% Change |
BILLINGS BY
CHANNEL: |
|
|
|
|
|
|
|
|
|
|
Direct Sales |
|
$ |
13,402 |
|
|
|
53.3 |
% |
|
$ |
10,635 |
|
|
$ |
2,767 |
|
|
|
26.0 |
% |
Distributors |
|
|
7,227 |
|
|
|
28.8 |
% |
|
|
7,690 |
|
|
|
(463 |
) |
|
|
(6.0 |
%) |
Inside and Online Sales |
|
|
4,497 |
|
|
|
17.9 |
% |
|
|
3,728 |
|
|
|
769 |
|
|
|
20.6 |
% |
Total Billings By Channel |
|
$ |
25,126 |
|
|
|
100.0 |
% |
|
$ |
22,053 |
|
|
$ |
3,073 |
|
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Sharps Compliance Corp. and
Subsidiaries |
Supplemental Table to Reconcile Net Loss to
EBITDA |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
Three-Months Ended |
|
Nine-Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
$ |
(1,042 |
) |
|
$ |
(812 |
) |
|
$ |
(207 |
) |
|
$ |
(137 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
(54 |
) |
|
|
13 |
|
|
|
24 |
|
|
|
26 |
|
|
|
Interest income |
|
(8 |
) |
|
|
(9 |
) |
|
|
(26 |
) |
|
|
(27 |
) |
|
|
Depreciation and amortization |
|
223 |
|
|
|
193 |
|
|
|
601 |
|
|
|
653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
(881 |
) |
|
$ |
(615 |
) |
|
$ |
392 |
|
|
$ |
515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Company defines earnings before interest, taxes, depreciation and
amortization (“EBITDA”) as netincome (loss), plus income tax
expense, interest income, and depreciation and
amortization. Othercompanies may define EBITDA differently.
EBITDA is presented because it is a financial measure that
isfrequently requested by third parties. However, EBITDA is
not considered under generally acceptedaccounting principles as a
primary measure of an entity’s financial results, and
accordingly, EBITDA shouldnot be considered an alternative to
operating income, net income, or cash flows as determined
undergenerally accepted accounting principles and as reported by
the Company. |
Sharps Compliance Corp. and
Subsidiaries |
Supplemental Reconciliation of GAAP to
Non-GAAP Net Loss Per Share* |
(in thousands, except per share
data) |
(unaudited) |
|
|
|
|
|
|
|
Three-Months Ended |
|
Nine-Months Ended |
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
|
$ |
(1,042 |
) |
|
$ |
(812 |
) |
|
$ |
(207 |
) |
|
$ |
(137 |
) |
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per
share |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
- |
|
|
|
- |
|
|
|
151 |
|
|
|
- |
|
|
Adjustments |
|
|
- |
|
|
|
- |
|
|
|
151 |
|
|
|
- |
|
|
Adjusted Net
Loss |
|
$ |
(1,042 |
) |
|
$ |
(812 |
) |
|
$ |
(56 |
) |
|
$ |
(137 |
) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net loss
per share |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* In
accordance with U.S. generally accepted accounting principles
(GAAP), the Company’s net deferred taxassets have been fully
reserved by a tax valuation allowance and any tax expense (benefit)
has been offset bythe utilization of net operating loss
carryforwards or additional deferred tax valuation allowance.
Therefore, theamounts shown in this schedule have not been adjusted
to reflect any tax impact. The Company believes thisinformation is
useful to investors and other interested parties. Such
information would not be considered as asubstitute for any measure
derived in accordance with GAAP, and may not be comparable to other
similarlytitled 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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