Vasomedical Reports Fiscal 2001 Third Quarter Results; Record Net Earnings On 122% Increase in Revenues
Business Wire - March 27, 2001 09:57
WESTBURY, N.Y.--(BW HealthWire)--March 27, 2001--Vasomedical, Inc. (Nasdaq: VASO) today announced that its net earnings for the fiscal 2001 third quarter ended February 28, 2001 rose 614% to $1.8 million, or $0.03 per share, versus net earnings of $250,000, or nil per share, for the same period one year ago.
Total revenues for the fiscal 2001 third quarter rose 122% to $7.1 million from $3.2 million in the third quarter of fiscal 2000. These increases are due to an accelerating acceptance of the Company's EECP(R) enhanced external counterpulsation systems. Net earnings for the fiscal 2001 third quarter included an income tax benefit of $452,000.
Net earnings for the first three quarters of fiscal 2001, which ended February 28, 2001, rose 751% to $4.9 million, or $0.09 per basic share and $.08 per diluted share, versus net earnings of $574,000, or $.01 per share, for the same period one year ago. Total revenues for the first three quarters of fiscal 2001 rose 105% to $18.8 million from $9.2 million in the first three quarters of fiscal 2000. Net earnings for the first three quarters of fiscal 2001 included an income tax benefit of $1,238,000.
D. Michael Deignan, President & CEO of Vasomedical, commented, "The fiscal 2001 third quarter is Vasomedical's eighth consecutive profitable quarter, with net earnings increasing for the last five successive quarters. Also of importance is the Company's strong quarter-to-quarter revenue growth, with fiscal 2001 third quarter revenues exceeding the second quarter by 10%. Total units placed grew at 33% in the third quarter versus the second quarter as a result of rental and fee-per-use programs. These commercial arrangements should enable us to grow our market at a faster pace as well as establish a base of business that will provide a recurring revenue and earnings stream. The Company recently executed a long-term agreement, subject to certain terms and conditions, utilizing a `fee-per-use' arrangement with an established EECP(R) provider, HeartGen Centers, Inc., based in Arizona. HeartGen's business model consists of establishing dedicated EECP(R) centers in specified cities as well as developing turn-key programs to physicians to facilitate the acquisition of EECP(R) systems."
"We continue to effectively leverage our developing infrastructure. Selling, general and administrative expenses declined as a percentage of revenue to 40% during the fiscal 2001 third quarter from 50% in the fiscal 2000 third quarter. We will continue to invest in marketing programs to physicians and patients and will continue to increase our direct sales coverage, which are important elements of our expansion strategy. Research & development expenses incurred (8% of revenues) were principally related to the completion of our Model TS3 development, as well as funding an FDA-approved pivotal trial on the use of EECP(R) in patients with congestive heart failure. These represent further investments in our future growth, particularly as positive results from the heart failure trial and other planned trials, some to be carried out in non-domestic markets, would expand the therapeutic options for EECP(R) and broaden our patient base."
He continued, "As a result of our success, the Company's balance sheet as of February 28, 2001 remains strong, highlighted by cash and cash equivalents of $4.7 million, working capital of $12.7 million and no long-term debt. Stockholders' equity improved nearly 81% to $14.4 million from May 31, 2000. In addition, we recently negotiated a $5 million revolving credit line with a bank to provide additional working capital to fund our growth initiatives."
Mr. Deignan concluded, "We are optimistic about our future, especially after the strong response we received from cardiologists at our ACC exhibition earlier this month. Medicare rates for EECP(R) increased approximately 11% on January 1st, our congestive heart failure multicenter trial began treating patients, and our new Model TS3 is expected to begin commercial shipments this quarter."
Vasomedical, Inc. is primarily engaged in designing, manufacturing, marketing and supporting external counterpulsation systems based on the Company's proprietary technology currently indicated for use in cases of angina, cardiogenic shock and acute myocardial infarction. EECP(R) is a registered trademark for Vasomedical's enhanced external counterpulsation system. This system is now in use at major medical centers, including the Beth Israel Medical Center - New York City, Christ Hospital and Medical Center, the Cleveland Clinic, Texas Heart Institute, Johns Hopkins, JFK Medical Center-Atlantis, FL, University Hospital at UMDNJ/New Jersey Medical School, the Mayo Clinic, the Miami Heart Institute and the Ochsner Foundation Hospital, as well as medical centers affiliated with Columbia University, the University of Pittsburgh, the University of California at San Diego, the University of California at San Francisco, University of Florida at Gainesville, State University of New York at Stony Brook and the University of Virginia. The Company provides hospitals, clinics and private practices with EECP(R) equipment, treatment guidance and a staff training and maintenance program designed to provide optimal patient outcomes. Additional information is available on the Company's website at www.vasomedical.com.
Except for historical information contained in this release, the matters discussed are forward looking statements that involve risks and uncertainties. When used in this release, words such as "anticipate," "believe," "estimate," "expect" and "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the impact of competitive products and pricing; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; the regulatory and trade environment; and the risk factors reported from time to time in the Company's SEC reports. The Company undertakes no obligation to revise any forward-looking statements as a result of future events or developments.
VASOMEDICAL, INC.
STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
(unaudited)
Nine months ended Three months ended
February 28, February 29, February 28, February 29,
2001 2000 2001 2000
Revenues $18,767 $9,154 $7,068 $3,178
Costs and expenses
Cost of sales
and services 5,104 2,158 2,143 788
Selling, general
and
administrative 8,117 4,953 2,855 1,604
Research and
development 1,644 1,063 592 416
Depreciation and
amortization 391 367 164 117
Interest and other
income - net (131) (55) (19) (17)
15,125 8,486 5,735 2,908
NET EARNINGS BEFORE
INCOME TAXES 3,642 668 1,333 270
Deferred income
tax benefit 1,238 - 452 -
NET EARNINGS 4,880 668 1,785 270
Preferred stock
dividend
requirement - (94) - (20)
EARNINGS APPLICABLE
TO COMMON STOCK $4,880 $574 $1,785 $250
Earnings per
common share
Basic $.09 $.01 $.03 $.00
Diluted $.08 $.01 $.03 $.00
Weighted average
common shares
outstanding
Basic 56,406 51,544 56,711 52,687
Diluted 59,810 55,719 59,891 55,271
BALANCE SHEET
SUMMARY (in thousands)
February 28, 2001 May 31, 2000
Cash and cash equivalents $4,655 $3,058
Total current assets $17,422 $9,677
Total assets $19,766 $10,589
Total current liabilities $4,773 $2,297
Other liabilities $635 $348
Stockholders' equity $14,358 $7,944
CONTACT: Vasomedical, Inc., Westbury
D. Michael Deignan, 516/997-4600 Ext. 155
Joseph A. Giacalone, 516/997-4600 Ext. 121
www.vasomedical.com
or
INVESTOR RELATIONS CONTACT:
516/997-4600 Ext.790
investorrelations@vasomedical.com
AI
