Milestone Scientific Announces 2010 Year End Results
Year-Over-Year Revenues Climbed 14% to $9.75 Million from $8.55 Million; Net Loss Decreases 60% over the same period in 2009
Management to Host Teleconference Today Beginning at 4:15 PM, EDT
LIVINGSTON, N.J., April 4, 2011 /PRNewswire/ -- Milestone Scientific Inc. (OTCQB: MLSS), the recognized leader in advanced drug delivery technologies, today announced its results for the year ended December 31, 2010.
Financial Highlights When Comparing 12-Months Ended December 31, 2010 with 12-Month Ended December 31, 2009:
-- Total revenues were $9.75 million, rising 14% from $8.55 million. -- Sales in the U.S. decreased 16% to $4.53 million from $5.28 million. -- International sales increased 65% to $5.22 million from $3.17 million. -- Instrument sales totaled $3.69 million, a 16% increase from $3.18 million. -- Disposable handpiece sales climbed 13% to $5.96 million from $3.18 million. -- Gross profit margin was 64% in 2010 as compared to 60% in 2009. -- Net loss for the year ended December 31, 2010 decreased to $615,000 as compared to $1,530,000 for the same period in 2009. The decrease in the loss was primarily due to increased gross margin dollars as well as a reduction in selling, general and administrative expenses of $304,000. The combination of these results decreased our loss from operations to $700,857 in 2010 as compared to $2,103,513 in 2009.
As of December 31, 2010, Milestone had $627,000 in cash, negative working capital of $7,000, and total shareholders' equity of $2.33 million. The negative working capital was 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 shipping also resulted in the delay in full payment for the shipment of instruments in June 2010. The original purchase order for the instruments did not provide for delayed payments.
According to Leonard Osser, Chief Executive Officer of Milestone Scientific, "2010 can be classified as a defining year of change for the Company. Not only did we reduce the yearly loss significantly, but we have established a building block for growth. Domestically, with the direction of Marvin Terrell, Director of Domestic Sales, and the use of independent clinical consultants,(generally hygienists), the Company is strategically positioned to sell, implement and train all forms of dental practices, from individual to group dental practices. Internationally, with the addition of Dale Johnson, Director of International Sales, our business is growing steadily. At the recent International Dental Show in Cologne, Germany, the Company established significant in-roads into territories previously unavailable to Milestone. The only low spot for 2010 was the delay in obtaining regulatory approval to sell our instruments and handpieces in China. However, it is expected that such approval will be received in 2011. Therefore, the solid foundations created in 2010 should provide a platform for growth in 2011."
Adding to Leonard Osser's sentiments, Joseph D'Agostino, Chief Financial Officer of Milestone Scientific, added," 2010 has provided a substantial improvement in operating results. The basic building blocks for market penetration into 2011 have been established. Milestone's addition of the sales directors for the domestic and international markets have already begun to show significant signs of success. On the domestic scene, Milestone established the STA Instrument as a premier anesthesia delivery system for Towncare Dental, a regional group practice in South Florida in January, 2011. This customer will provide a substantial motivation for other group dental practices to include our STA instruments in their practices. Internationally, our business continues to grow under the direction of our Director of International Sales. The number of first time distributors in Russia, the Middle East, Central America and South America has increased significantly in the last half of the year."
Milestone's executive management team will host a teleconference this afternoon, Monday, April 4, 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 1-877-941-8418. 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 4430692. The replay will be available for 90 days.
MILESTONE SCIENTIFIC INC. CONDENSED BALANCE SHEET For the Years Ended December 31, 2010 and 2009 (AUDITED) December 31, 2010 December 31, 2009 ASSETS Current Assets: Cash and cash equivalents $ 627,082 $ 1,029,129 Accounts receivable, net of allowance for doubtful accounts of $202,160 in 2010 and $5,000 in 2009 796,221 1,063,742 Inventories 986,947 804,736 Advances to contract manufacturer 730,491 151,995 Prepaid expenses and other current assets 247,465 254,501 Total current assets 3,388,206 3,304,103 Accounts receivable-long term, net of allowance for doubtful accounts of $438,840 in 2010 361,160 - Advances to contract manufacturer 1,713,794 311,230 Investment in distributor, at cost 76,319 76,319 Furniture, Fixtures & Equipment net of accumulated depreciation of $426,482 as of December 31, 2010 and $395,630 as of December 31, 2009 66,936 77,353 Patents, net of accumulated amortization of $294,934 as of December 31, 2010 and $211,539 as of December 31, 2009 944,858 947,315 Other assets 57,750 133,674 Total assets $ 6,609,023 $ 4,849,994 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable - short term $ 2,883,587 $ 1,154,013 Accrued expenses and other payable 511,304 524,017 Total current liabilities 3,394,891 1,678,030 Long-term Liabilities: Accounts payable - long term 440,376 - Accrued Interest - 6% note - 92,000 Notes Payable-net of discount of $8,361 and $11,157, respectively 441,639 438,843 Total long-term liabilities 882,015 530,843 Commitments and Contingencies Stockholders' Equity Common stock, par value $.001; authorized 50,000,000 shares; 14,915,959 shares issued 637,013 shares to be issued and 14,882,626 shares outstanding as of December 31, 2010; 14,781,295 shares issued, 692,498 shares to be issued, and 14,747,962 shares outstanding as of December 31, 2009 15,552 15,472 Additional paid-in capital 62,606,043 62,300,619 Accumulated deficit (59,377,962) (58,763,454) Treasury stock, at cost, 33,333 shares (911,516) (911,516) Total stockholders' equity 2,332,117 2,641,121 Total liabilities and stockholders' equity $ 6,609,023 $ 4,849,994
MILESTONE SCIENTIFIC INC. RESULTS OF OPERATIONS (Audited) 2010 2009 Product sales, net $ 9,749,968 $ 8,549,060 Cost of products sold 3,531,452 3,458,279 Gross profit 6,218,516 5,090,781 Selling, general and administrative expenses 6,648,859 6,952,976 Research and development expenses 270,494 241,318 6,919,353 7,194,294 Loss from operations (700,837) (2,103,513) Other income (expense) Other income 183,673 777,609 Interest income 587 3,146 Interest expense (95,135) (154,027) Amortized debt issuance (2,796) (53,300) Total other income 86,329 573,428 Net loss $ (614,508) $ (1,530,085) Net loss applicable to common stockholders $ (614,508) $ (1,530,085) Loss per share applicable to common stockholders - basic and diluted $ (0.04) $ (0.11) Weighted average shares outstanding and to be issued - basic and diluted 14,824,802 13,389,872
About Milestone Scientific Inc.
Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled drug delivery technologies for the medical and dental markets; and currently sells its award-winning products through a global distribution network serving North and South America, Asia, Africa and Europe. For more information on the STA System and other innovative Milestone products, please visit the Company's websites found at www.milestonescientific.com and www.STAis4u.com.
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report for the year ended December 31, 2009. The forward-looking statements in this press release are based upon management's reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
FOR MORE INFORMATION, PLEASE CONTACT: Milestone Scientific Inc. Joseph D'Agostino, Chief Financial Officer For Media Inquiries: Laura Kaunitz, Office Manager 973-535-2717 or via e-mail email@example.com
SOURCE Milestone Scientific Inc.
Released April 4, 2011