Full Press Release Details
Leonard Osser, Chairman and
Stuart J. Wildhorn President
Milestone Scientific Inc.
(973) 535-2717; (973)
Web site: www.milesci.com
MILESTONE SCIENTIFIC, INC. ANNOUNCES YEAR END RESULTS, INCLUDING 20% REVENUE INCREASE AND IMPROVED FINANCIAL POSITION
LIVINGSTON, New Jersey, April 1,
2005 Milestone Scientific Inc. (AMEX: MS), a developer, manufacturer and
marketer of computer controlled local anesthetic delivery systems for medical and dental
markets, today announced that 2004 net sales increased 20% to $4,751,186, compared with
This increase was primarily driven by
a 25% expansion in domestic sales of CompuDent systems
and a 21% increase in worldwide sales of The Wand handpieces. Gross
profit remained strong at approximately 49% of sales despite some bundled pricing
initiatives that were offered to customers towards the end of the year at lower margins.
Net loss for the year ended December 31, 2004 increased to ($2,996,864), or $(0.33) per
share, compared with a 2003 net loss of ($2,412,908), or $(0.52) per share. Working
capital increased to $3,866,838 as of December 31, 2004, from $(2,921,737) at the end of
2003, as a result of a public offering of common stock and the issuance of equity
securities in satisfaction of short-term debt, trade payables and accrued compensation in
the first quarter of 2004.
Our revenue growth in 2004,
fueled by a fourth quarter sales increase of 56% over the comparable period in 2003,
reflects the initial success of our expanded domestic sales force and heightened marketing
activities, commented Leonard Osser, Chairman and Chief Executive Officer of
Milestone Scientific Inc. These increased sales generated a gross margin of more
than 60% in the fourth quarter. However, our net loss increased in 2004 as we incurred
greater sales and marketing expenses in order to lay the groundwork for higher levels of
future sales activity. It is our belief that 2005 and future years will benefit from the
expenses incurred during 2004.
Since the end of the year, we
have announced the very successful initial launch of our Ionic White enhanced
technology consumer tooth whitening system through an infomercial program that our
marketing partner aired regionally in 23 television markets throughout the U.S. We
received an initial order for 500,000 Ionic White starter kits in March, and the
infomercial program is scheduled to roll out nationwide in the second quarter.
When the Ionic White
launch is combined with an improving sales outlook for our computer controlled dental
injection products and our ongoing efforts to commercialize new products, including our
CompuFlo technology for safely administering injections of local anesthetics
and other medications, the outlook for 2005 is exciting to us, continued Osser.
In order to assure adequate capital to pursue these various strategic initiatives in
the most effective manner, we recently announced a $3 million private placement of common
stock units (including warrants). Once all funds from this capital raise have been
received, Milestone s cash position should exceed $4.7 million.
Milestone also announced that filing
of its Annual Report on form 10-KSB for the year ended December 31, 2004 would be delayed
a few days to allow subsequent event disclosure to be made of its previously announced
$3.0 million private placement to institutional investors.
About Milestone Scientific, Inc.
Milestone Scientific is the
developer, manufacturer and marketer of CompuMed and CompuDent
computer controlled local anesthetic delivery systems for medical and dental applications.
These systems are comprised of a microprocessor controlled drive unit and single patient
use disposable handpieces. The Company recently announced its entry into the tooth
whitening market through a third party mass-marketing organization. The consumer product
is being marketed under the distributor s trademark Ionic White and
Stay White . Milestone has also developed and patented its CompuFlo
technology, which advances the delivery and removal of a wide array of fluids from the
human body by providing real time displays of pressures, fluid densities and flow rates.
In 2002, Milestone Scientific received United States patent protection on a safety
engineered sharps technology that allows for fully automated true single-handed activation
with needle anti-deflection and force-reduction capability. In 2003, Milestone received
FDA Clearance to market SafetyWand , which incorporates engineered sharps
injury protection features to aid in the prevention of accidental needlesticks.
The Company is headquartered in
Livingston, New Jersey, and its common stock trades on the American Stock Exchange under
the symbol MS . For additional information, please visit the Company s
website at www.milesci.com.
This press release contains
forward-looking statements regarding the timing and financial impact of the 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 the 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 on Form 10-KSB for the year ended December 31,
2003. 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.
SCIENTIFIC INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
| ASSETS | |||
| Current Assets: | |||
| Cash and cash equivalents | $ | 3,041,306 | |
| Accounts receivable , net of allowance for doubtful accounts of $24,903 | 421,339 | ||
| Inventories | 936,221 | ||
| Advances to contract manufacturer | 62,034 | ||
| Prepaid expenses | 104,562 | ||
| Total current assets | 4,565,462 | ||
| Investment in distributor, at cost | 69,956 | ||
| Equipment, net | 612,263 | ||
| Patents, net | 101,242 | ||
| Other assets | 20,408 | ||
| Total assets | $ | 5,369,331 | |
| LIABILITIES AND STOCKHOLDERS EQUITY | |||
| Current Liabilities: | |||
| Accounts payable | $ | 474,075 | |
| Accrued expenses | 224,549 | ||
| Total current liabilities | 698,624 | ||
| Deferred compensation payable to officer | 150,000 | ||
| Total liabilities | 848,624 | ||
| Commitments and contingencies | |||
| Stockholders Equity | |||
| Preferred stock, par value $.001; authorized 5,000,000 shares | |||
| 8% Cumulative convertible preferred stock, par value $.001; authorized, | |||
| issued and outstanding, 25,365 shares | 25 | ||
| Common stock, par value $.001; authorized 50,000,000 shares; 9,824,287 shares | |||
| issued and 9,790,954 shares outstanding | 9,824 | ||
| Additional paid-in capital | 52,618,913 | ||
| Accumulated deficit | (47,196,539 | ) | |
| Treasury stock, at cost, 33,333 shares | (911,516 | ) | |
| Total stockholders equity | 4,520,707 | ||
| Total liabilities and stockholders equity | $ | 5,369,331 |
See Notes to Consolidated Financial
SCIENTIFIC INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2004 AND 2003
| 2004 | 2003 | |||||
| Net sales | $ | 4,751,186 | $ | 3,971,707 | ||
| Cost of sales | 2,415,826 | 2,003,139 | ||||
| Gross profit | 2,335,360 | 1,968,568 | ||||
| Selling, general and administrative expenses | 5,155,569 | 3,483,439 | ||||
| Closing of Deerfield, IL facility | 86,165 | |||||
| Research and development expenses | 187,992 | 131,015 | ||||
| 5,343,561 | 3,700,619 | |||||
| Loss from operations | (3,008,201 | ) | (1,732,051 | ) | ||
| Other income (expense) | ||||||
| Interest income | 80,867 | |||||
| Interest expense | (69,530 | ) | (680,857 | ) | ||
| Other income (expense), net | 11,337 | (680,857 | ) | |||
| Net loss | (2,996,864 | ) | (2,412,908 | ) | ||
| Dividends applicable to preferred stock | (2,029 | ) | ||||
| Net loss applicable to common stockholders | $ | (2,998,893 | ) | $ | (2,412,908 | ) |
| Loss per share applicable to common stockholders - basic and diluted | $ | (0.33 | ) | $ | (0.52 | ) |
| Weighted average shares outstanding - basic | ||||||
| and diluted | 9,147,634 | 4,672,266 |
See Notes to Consolidated Financial
MILESTONE SCIENTIFIC
INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2004